Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 06, 2015 | Jun. 30, 2014 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | fbp | ||
Entity Registrant Name | FIRST BANCORP /PR/ | ||
Entity Central Index Key | 1057706 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 213,089,880 | ||
Entity current reporting status | Yes | ||
Entity well known seasoned issuer | No | ||
Entity public float | $579,253,969 | ||
Entity voluntary filers | No |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Condition (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Cash and due from banks | $779,147 | $454,302 | ||
Money Market Investments [Abstract] | ||||
Time deposits with other financial institutions | 300 | 300 | ||
Other short-term investments | 16,661 | 201,069 | ||
Total money market investments | 16,961 | 201,369 | ||
Investment securities available for sale, at fair value: | ||||
Securities pledged that can be repledged | 1,025,966 | 1,042,482 | ||
Other investment securities | 939,700 | 935,800 | ||
Total investment securities available for sale | 1,965,666 | 1,978,282 | ||
Other equity securities | 25,752 | 28,691 | ||
Investment in unconsolidated entities | 0 | 7,279 | ||
Loans, net of allowance for loan and lease losses of $285,858 (2012-$435,414) | 9,040,041 | 9,350,312 | ||
Loans held for sale, at lower of cost or market | 76,956 | 75,969 | ||
Total loans, net | 9,116,997 | 9,426,281 | ||
Premises and equipment, net | 166,926 | 166,946 | ||
Other real estate owned | 124,003 | 160,193 | ||
Accrued interest receivable on loans and investments | 50,796 | 54,012 | ||
Other assets | 481,587 | 179,570 | ||
Total assets | 12,727,835 | 12,656,925 | ||
LIABILITIES | ||||
Non-interest-bearing deposits | 900,616 | 851,212 | ||
Interest-bearing deposits | 8,583,329 | 9,028,712 | ||
Total deposits | 9,483,945 | 9,879,924 | ||
Securities Sold Under Agreements To Repurchase | 900,000 | [1] | 900,000 | [1] |
Advances from the Federal Home Loan Bank (FHLB) | 325,000 | 300,000 | ||
Other borrowings | 231,959 | 231,959 | ||
Accounts payable and other liabilities | 115,188 | 129,184 | ||
Total liabilities | 11,056,092 | 11,441,067 | ||
Preferred stock, authorized 50,000,000 shares: | ||||
Non-cumulative Perpetual Monthly Income Preferred Stock: issued-22,004,000 shares, outstanding-2,521,872 shares, aggregate liquidation value of $63,047 | 36,104 | 63,047 | ||
Common stock, $0.10 par value, authorized, 2,000,000,000 shares; issued, 207,635,157 shares (2012 - 206,730,318 shares issued) | 21,372 | 20,764 | ||
Less: Treasury stock (at par value) | -74 | -57 | ||
Common stock outstanding, 207,068,978 shares outstanding (2012 - 206,235,465 shares outstanding) | 21,298 | 20,707 | ||
Additional paid-in capital | 916,067 | 888,161 | ||
Retained earnings | 716,625 | 322,679 | ||
Accumulated other comprehensive income, net of tax expense of $7,755 (2012 - $7,749) | -18,351 | -78,736 | ||
Total stockholders' equity | 1,671,743 | 1,215,858 | ||
Total liabilities and stockholders' equity | $12,727,835 | $12,656,925 | ||
[1] | As of December 31, 2014, includes $800 million with an average rate of 3.30%, and that lenders have the right to call before their contractual maturitiesat various dates beginning on January 9, 2015. Subsequent to December 31, 2014, no lender has exercised its call option on repurchase agreements.In addition, $500 million of the $900 million is tied to variable rates. |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Condition (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for loan and lease losses | $222,395 | $285,858 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 22,004,000 | 22,004,000 |
Preferred stock, shares outstanding | 1,444,146 | 2,521,872 |
Preferred stock, liquidation value | 36,104 | 63,047 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 213,724,749 | 207,635,157 |
Common stock, shares outstanding | 212,984,700 | 207,068,978 |
Income tax expense | -300,649 | 5,164 |
Accumulated Other Comprehensive Income [Member] | ||
Income tax expense | $7,752 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest incomeand divided income: | |||
Loans | $579,176 | $590,334 | $590,656 |
Investment securities | 52,881 | 53,527 | 45,294 |
Money market investments | 1,892 | 1,927 | 1,827 |
Total interest income | 633,949 | 645,788 | 637,777 |
Interest expense: | |||
Deposits | 78,127 | 91,787 | 128,259 |
Securities sold under agreements to repurchase | 26,989 | 25,933 | 28,432 |
Advances from FHLB | 3,561 | 6,031 | 12,142 |
Notes payable and other borrowings | 7,199 | 7,092 | 7,239 |
Total interest expense | 115,876 | 130,843 | 176,072 |
Net interest income | 518,073 | 514,945 | 461,705 |
Provision for loan and lease losses | 109,530 | 243,751 | 120,499 |
Net interest income after provision for loan and lease losses | 408,543 | 271,194 | 341,206 |
Non-interest income: | |||
Service charges on deposit accounts | 16,709 | 16,974 | 18,373 |
Mortgage banking activities | 14,685 | 16,830 | 19,960 |
Net gain on sale of investments | 262 | -42 | 36 |
Other-than-temporary impairment losses on investment securities: | |||
Total other-than-temporary impairment losses | 0 | 0 | 0 |
Portion of loss previously recognized in other comprehensive income | -388 | -117 | -2,002 |
Net impairment losses on investment securities | -388 | -117 | -2,002 |
Loss on early extinguishment of borrowings | 0 | 0 | 0 |
Equity in losses of unconsolidated entities | -7,279 | -16,691 | -19,256 |
Insurance income | 6,868 | 5,955 | 5,549 |
Impairment of collateral pledged to Lehman | 0 | -66,574 | 0 |
Other non-interest income | 30,491 | 28,176 | 26,731 |
Total non-interest income | 61,348 | -15,489 | 49,391 |
Non-interest expenses: | |||
Employees' compensation and benefits | 135,422 | 130,815 | 125,329 |
Occupancy and equipment | 58,290 | 60,746 | 60,927 |
Business promotion | 16,531 | 15,977 | 14,093 |
Professional fees | 47,940 | 49,444 | 28,337 |
Taxes, other than income taxes | 18,089 | 18,109 | 13,473 |
Insurance and supervisory fees | 39,131 | 48,470 | 52,596 |
Net loss on real estate owned (REO) and REO operations | 20,596 | 42,512 | 25,116 |
Credit And Debit Processing Fees | 15,449 | 12,909 | 6,005 |
Communications | 7,766 | 7,401 | 7,085 |
Other non-interest expenses | 19,039 | 28,645 | 21,922 |
Total non-interest expenses | 378,253 | 415,028 | 354,883 |
Income (loss) before income taxes | 91,638 | -159,323 | 35,714 |
Income tax expense | 300,649 | -5,164 | -5,932 |
Net income (loss) | 392,287 | -164,487 | 29,782 |
Net income (loss) attributable to common stockholders - basic | 393,946 | -164,487 | 29,782 |
Net income (loss) attributable to common stockholders - diluted | $393,946 | ($164,487) | $29,782 |
Net income (loss) per common share: | |||
Basic | $1.89 | ($0.80) | $0.15 |
Diluted | $1.87 | ($0.80) | $0.14 |
Dividends declared per common share | $0 | $0 | $0 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income (loss) | $392,287 | ($164,487) | $29,782 |
Available-for-sale debt securities on which an other-than-temporary impairment has been recognized: | |||
Subsequent unrealized gain on debt securities on which an other-than-temporary impairment has been recognized | 1,781 | 4,060 | 3,754 |
Reclassification Adjustement For Other Than Temporary Impairment On Debt Securrities Included In Net Income | 388 | 117 | 2,002 |
All other unrealized gains and losses on available-for-sale securities: | |||
All other unrealized holding gains arising during the period | 58,478 | -111,381 | 3,476 |
Reclassification adjustments for net gain included in net income | -262 | 0 | 0 |
Reclassification adjustment for other-than-temporary impairment on equity securities | 0 | 42 | 0 |
Income tax benefit (expense) related to items of other comprehensive income | 0 | -6 | 2 |
Other comprehensive income (loss) for the period, net of tax | 60,385 | -107,168 | 9,234 |
Total comprehensive income (loss) | $452,672 | ($271,655) | $39,016 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income (loss) | $392,287 | ($164,487) | $29,782 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 20,983 | 23,980 | 24,217 |
Amortization and impairement of intangible assets | 4,943 | 6,078 | 3,306 |
Provision for loan and lease losses | 109,530 | 243,751 | 120,499 |
Deferred income tax expense | -306,010 | -2,783 | 575 |
Stock-based compensation | 4,221 | 2,930 | 826 |
Gain on sales of investments, net | -262 | 0 | 0 |
Loss on early extinguishment of borrowings | 0 | 0 | 0 |
Net impairment losses recognized in earnings | 388 | 117 | 2,002 |
Other-than-temporary impairments on equity securities | 0 | 42 | 0 |
Equity in losses of unconsolidated entities | 7,279 | 16,691 | 19,256 |
Impairment of collateral pledged to Lehman | 0 | 66,574 | 0 |
Derivative instruments and financial liabilities measured at fair value (gain) loss | -936 | -1,871 | -1,557 |
Loss (gain) on sale of premises and equipment and other assets | -21 | -4 | 283 |
Net gain on sale of loans | -7,715 | -7,317 | -10,953 |
Net amortization of premiums, discounts and deferred loan fees and costs | -2,431 | -4,203 | -2,930 |
Originations and purchases of loans held for sale | -311,305 | -467,365 | -451,124 |
Proceeds From Sale And Collection Of Loans Held for sale | 328,822 | 547,404 | 441,474 |
Increase Decrease In Loans Held For Sale | 0 | 1,503 | 0 |
Amortization of broker placement fees | 6,662 | 7,900 | 9,869 |
Net amortization of premium and discounts on investment securities | 5,417 | 6,840 | 12,222 |
(Decrease) increase in accrued income tax payable | 3,397 | 657 | 497 |
(Increase) decrease in accrued interest receivable | 3,216 | -2,341 | 636 |
Decrease in accrued interest payable | 6,812 | 3,631 | 696 |
Decrease (increase) in other assets | 16,327 | 43,023 | 29,355 |
Increase (decrease) in other liabilities | -17,251 | 20,935 | -79 |
Net cash provided by operating activities | 264,353 | 341,685 | 228,852 |
Cash flows from investing activities: | |||
Principal collected on loans | 3,487,748 | 2,800,471 | 3,048,549 |
Loans originated and purchased | -3,423,241 | -3,263,973 | -3,037,480 |
Proceeds from sale of loans held for investment | 74,058 | 314,282 | 38,608 |
Proceeds from sale of repossessed assets | 66,683 | 80,032 | 74,680 |
Proceeds from sale of available-for-sale securities | 4,861 | 0 | 1,878 |
Purchases of securities available for sale | -170,419 | -690,377 | -1,012,527 |
Proceeds from principal repayments and maturities of securities available for sale | 233,046 | 330,336 | 1,203,101 |
Additions to premises and equipment | -22,262 | -11,789 | -11,937 |
Proceeds from sale of premises and equipment and other assets | 1,320 | 4 | 1,016 |
Proceeds from securities litigation settlement and other proceeds | 0 | 0 | 0 |
(Increase) decrease in other equity securities | 2,939 | 9,566 | -806 |
Net cash provided by investing activities | 254,733 | -431,448 | 305,082 |
Cash flows from financing activities: | |||
Net decrease in deposits | -402,641 | 7,478 | -53,729 |
Net repayments and cancellation costs of securities sold under agreements to repurchase | 0 | 0 | -100,000 |
Net FHLB advances proceeds (paid) and cancellation costs | 25,000 | -208,440 | 141,000 |
Repayments of medium-term notes | 0 | 0 | -21,957 |
Proceeds from common stock sold, net of costs | 0 | 0 | 1,037 |
Issuance costs of common stock issued in exchange for preferred stock Series A through E | -62 | 0 | 0 |
Repurchase of outstanding common stock | -946 | -455 | 0 |
Net cash provided (used in) financing activities | -378,649 | -201,417 | -33,649 |
Net increase (decrease) in cash and cash equivalents | 140,437 | -291,180 | 500,285 |
Cash and cash equivalents at beginning of period | 655,671 | 946,851 | 446,566 |
Cash and cash equivalents at end of period | 796,108 | 655,671 | 946,851 |
Cash and cash equivalents include: | |||
Cash and due from banks | 779,147 | 454,302 | 730,016 |
Money market instruments | 16,961 | 201,369 | 216,835 |
Cash and Cash Equivalents, at Carrying Value, Total | $796,108 | $655,671 | $946,851 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | |
In Thousands | |||||||
Balance at beginning of period at Dec. 31, 2011 | $63,047 | $20,513 | $884,002 | $457,384 | $19,198 | ||
Total stockholders' equity | 1,485,023 | 63,047 | 20,624 | 885,754 | 487,166 | 28,432 | |
Exchange of preferred stock-Series A through E | 0 | 0 | |||||
Common stock sold | 29 | 1,008 | |||||
Common stock issued in exchange of preferred stock-Series A through E | 0 | 0 | |||||
Restricted Stock Forfeited | 0 | 0 | |||||
Restricted stock grants | 82 | -82 | |||||
Common stock issued for compensation | 0 | 0 | |||||
Repurchase of common stock | 0 | 0 | |||||
Stock-based compensation | 826 | ||||||
Preferred Stock Redemption Discount | 0 | [1] | 0 | ||||
Reversal of Issuance cost of Series A through E of preferred stock exchanged | 0 | ||||||
Issuance cost of common stock | 0 | ||||||
Net income (loss) | 29,782 | 29,782 | |||||
Other comprehensive income (loss), net of tax | 9,234 | 9,234 | |||||
Balance at end of period at Dec. 31, 2012 | 1,485,023 | 63,047 | 20,624 | 885,754 | 487,166 | 28,432 | |
Total stockholders' equity | 1,215,858 | 63,047 | 20,707 | 888,161 | 322,679 | -78,736 | |
Exchange of preferred stock-Series A through E | 0 | 0 | |||||
Common stock sold | 0 | 0 | |||||
Common stock issued in exchange of preferred stock-Series A through E | 0 | 0 | |||||
Restricted Stock Forfeited | -6 | 6 | |||||
Restricted stock grants | 74 | -74 | |||||
Common stock issued for compensation | 22 | -22 | |||||
Repurchase of common stock | -7 | -433 | |||||
Stock-based compensation | 2,930 | ||||||
Preferred Stock Redemption Discount | 0 | [1] | 0 | ||||
Reversal of Issuance cost of Series A through E of preferred stock exchanged | 0 | ||||||
Issuance cost of common stock | 0 | ||||||
Net income (loss) | -164,487 | -164,487 | |||||
Other comprehensive income (loss), net of tax | -107,168 | -107,168 | |||||
Balance at end of period at Dec. 31, 2013 | 1,215,858 | 63,047 | 20,707 | 888,161 | 322,679 | -78,736 | |
Total stockholders' equity | 1,671,743 | 36,104 | 21,298 | 916,067 | 716,625 | -18,351 | |
Exchange of preferred stock-Series A through E | -26,022 | -26,943 | |||||
Common stock sold | 0 | 0 | |||||
Common stock issued in exchange of preferred stock-Series A through E | 459 | 23,904 | |||||
Restricted Stock Forfeited | -4 | 4 | |||||
Restricted stock grants | 122 | -122 | |||||
Common stock issued for compensation | 32 | -32 | |||||
Repurchase of common stock | -18 | -928 | |||||
Stock-based compensation | 4,221 | ||||||
Preferred Stock Redemption Discount | 1,659 | [1] | 1,659 | ||||
Reversal of Issuance cost of Series A through E of preferred stock exchanged | 921 | ||||||
Issuance cost of common stock | -62 | ||||||
Net income (loss) | 392,287 | 392,287 | |||||
Other comprehensive income (loss), net of tax | 60,385 | 60,385 | |||||
Balance at end of period at Dec. 31, 2014 | $1,671,743 | $36,104 | $21,298 | $916,067 | $716,625 | ($18,351) | |
[1] | Excess of carrying amount of the Series A through E preferred stock exchanged over the fair value of new common shares issued in 2014. |
BASIS_OF_PRESENTATION_AND_SIGN
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2014 | |||
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Text Block] | NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The following is a description of First BanCorp.'s (“First BanCorp.” or “the Corporation”) most significant policies: | |||
Nature of business | |||
First BanCorp. is a publicly owned, Puerto Rico-chartered financial holding company that is subject to regulation, supervision, and examination by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). The Corporation is a full service provider of financial services and products with operations in Puerto Rico, the United States, the U.S. Virgin Islands (USVI), and the British Virgin Islands (BVI). | |||
The Corporation provides a wide range of financial services for retail, commercial, and institutional clients. As of December 31, 2014, the Corporation controlled two wholly owned subsidiaries: FirstBank Puerto Rico (“FirstBank” or the “Bank”), and FirstBank Insurance Agency, Inc. (“FirstBank Insurance Agency”). FirstBank is a Puerto Rico-chartered commercial bank, and FirstBank Insurance Agency is a Puerto Rico-chartered insurance agency. FirstBank is subject to the supervision, examination, and regulation of both the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico (“OCIF”) and the Federal Deposit Insurance Corporation (the “FDIC”). Deposits are insured through the FDIC Deposit Insurance Fund. FirstBank also operates in the state of Florida (USA), subject to regulation and examination by the Florida Office of Financial Regulation and the FDIC, in the USVI, subject to regulation and examination by the United States Virgin Islands Banking Board, and in the BVI, subject to regulation by the British Virgin Islands Financial Services Commission. | |||
FirstBank Insurance Agency is subject to the supervision, examination, and regulation of the Office of the Insurance Commissioner of the Commonwealth of Puerto Rico. | |||
FirstBank conducts its business through its main office located in San Juan, Puerto Rico, 44 banking branches in Puerto Rico as of December 31, 2014, 12 branches in the USVI and BVI, and 10 branches in the state of Florida (USA). FirstBank has 6 wholly owned subsidiaries with operations in Puerto Rico: First Federal Finance Corp. (d/b/a Money Express La Financiera), a finance company specializing in the origination of small loans with 27 offices in Puerto Rico; First Management of Puerto Rico, a domestic corporation, which holds tax-exempt assets; FirstBank Puerto Rico Securities Corp., a broker-dealer subsidiary engaged in municipal bond underwriting and financial advisory services on structured financings principally provided to government entities in the Commonwealth of Puerto Rico; FirstBank Overseas Corporation, an international banking entity organized under the International Banking Entity Act of Puerto Rico; and two other companies that hold and operate certain particular other real estate owned properties. FirstBank had one active subsidiary with operations outside of Puerto Rico: First Express, a finance company specializing in the origination of small loans with 2 offices in the USVI. | |||
Effective as of 11:59 p.m. on December 31, 2014, the operations conducted by First Mortgage as a separate subsidiary were merged with and into FirstBank. | |||
Effective as of the close of business on Friday, February 27, 2015, FirstBank acquired 10 Puerto Rico branches of Doral Bank, assumed approximately $625 million in deposits related to such branches and purchased approximately $325 million performing residential mortgage loans through an alliance with Banco Popular of Puerto Rico who was the successful lead bidder with the FDIC on the failed Doral Bank. These numbers, which are as of December 31, 2014, are subject to post-closing adjustments based on closing totals and purchase accounting adjustments. Refer to Note 33 for additional information. | |||
Principles of consolidation | |||
The consolidated financial statements include the accounts of the Corporation and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Statutory business trusts that are wholly owned by the Corporation and are issuers of trust-preferred securities, and entities in which the Corporation has a non controlling interest, are not consolidated in the Corporation's consolidated financial statements in accordance with authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) for consolidation of variable interest entities. See “Variable Interest Entities” below for further details regarding the Corporation's accounting policy for these entities. | |||
Reclassifications | |||
For purposes of comparability, certain prior period amounts have been reclassified to conform to the 2014 presentation. These reclassifications include, but are not limited to, the presentation of expenses on collection agencies' fees that were previously presented as part of other non-interest expenses and were reclassified to the professional fees expenses caption, expenses of stock-based compensation for non-employee directors previously presented as employees' compensation and benefits were reclassified to the professional fees expenses caption and cash management-related fees previously presented as part of other non-interest income that were reclassified as part of service charges and fees on deposit accounts. These reclassifications had no impact on the previously reported results of operations, financial condition, or cash flows. | |||
Use of estimates in the preparation of financial statements | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management has made significant estimates in several areas, including the allowance for loan and lease losses, valuations of investment securities, the fair value of assets acquired including purchased credit-impaired (PCI) loans, valuations of residential mortgage servicing rights, valuations of OREO properties, and income taxes, including deferred taxes. | |||
Cash and cash equivalents | |||
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from the Federal Reserve Bank of New York (the “New York FED” or “Federal Reserve”) and other depository institutions, and short-term investments with original maturities of three months or less. | |||
Investment securities | |||
The Corporation classifies its investments in debt and equity securities into one of four categories: | |||
Held-to-maturity — Securities that the entity has the intent and ability to hold to maturity. These securities are carried at amortized cost. The Corporation may not sell or transfer held-to-maturity securities without calling into question its intent to hold other debt securities to maturity, unless a nonrecurring or unusual event that could not have been reasonably anticipated has occurred. As of December 31, 2014 and 2013, the Corporation did not hold held-to-maturity investment securities. | |||
Trading — Securities that are bought and held principally for the purpose of selling them in the near term. These securities are carried at fair value, with unrealized gains and losses reported in earnings. As of December 31, 2014 and 2013, the Corporation did not hold investment securities for trading purposes. | |||
Available-for-sale — Securities not classified as held-to-maturity or trading. These securities are carried at fair value, with unrealized holding gains and losses, net of deferred taxes, reported in other comprehensive income (“OCI”) as a separate component of stockholders' equity, and do not affect earnings until they are realized or are deemed to be other-than-temporarily impaired. | |||
Other equity securities — Equity securities that do not have readily available fair values are classified as other equity securities in the consolidated statements of financial condition. These securities are stated at the lower of cost or realizable value. This category is principally composed of stock that is owned by the Corporation to comply with Federal Home Loan Bank (FHLB) regulatory requirements. Their realizable value equals their cost. | |||
Premiums and discounts on investment securities are amortized as an adjustment to interest income on investments over the life of the related securities under the interest method. Net realized gains and losses and valuation adjustments considered other-than-temporary, if any, related to investment securities are determined using the specific identification method and are reported in noninterest income as net gain (loss) on sale of investments and net impairment losses on debt securities, respectively. Purchases and sales of securities are recognized on a trade-date basis. | |||
Evaluation of other-than-temporary impairment (“OTTI”) on held-to-maturity and available-for-sale securities | |||
On a quarterly basis, the Corporation performs an assessment to determine whether there have been any events or economic circumstances indicating that a security with an unrealized loss has suffered OTTI. A security is considered impaired if the fair value is less than its amortized cost basis. | |||
The Corporation evaluates whether the impairment is other-than-temporary depending upon whether the portfolio consists of debt securities or equity securities, as further described below. The Corporation employs a systematic methodology that considers all available evidence in evaluating a potential impairment of its investments. | |||
The impairment analysis of debt securities places special emphasis on the analysis of the cash position of the issuer and its cash and capital generation capacity, which could increase or diminish the issuer's ability to repay its bond obligations, the length of time and the extent to which the fair value has been less than the amortized cost basis, and changes in the near-term prospects of the underlying collateral, if applicable, such as changes in default rates, loss severity given default, and significant changes in prepayment assumptions. The Corporation also takes into consideration the latest information available about the overall financial condition of an issuer, credit ratings, recent legislation, government actions affecting the issuer's industry, and actions taken by the issuer to deal with the economic climate. OTTI must be recognized in earnings if the Corporation has the intent to sell the debt security or it is more likely than not that it will be required to sell the debt security before recovery of its amortized cost basis. However, even if the Corporation does not expect to sell a debt security, it must evaluate expected cash flows to be received and determine if a credit loss has occurred. An unrealized loss is generally deemed to be other-than-temporary and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of an OTTI, if any, is recorded as net impairment losses on debt securities in the statements of income (loss), while the remaining portion of the impairment loss is recognized in OCI, net of taxes, provided the Corporation does not intend to sell the underlying debt security and it is more likely than not that the Corporation will not have to sell the debt security prior to recovery. The previous amortized cost basis less the OTTI recognized in earnings is the new amortized cost basis of the investment. The new amortized cost basis is not adjusted for subsequent recoveries in fair value. However, for debt securities for which OTTI was recognized in earnings, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted as interest income. For further disclosures, refer to Note 4 to the consolidated financial statements. | |||
The impairment analysis of equity securities is performed and reviewed on an ongoing basis based on the latest financial information and any supporting research report made by a major brokerage firm. This analysis is very subjective and based, among other things, on relevant financial data such as capitalization, cash flow, liquidity, systematic risk, and debt outstanding of the issuer. Management also considers the issuer's industry trends, the historical performance of the stock, credit ratings, as well as the Corporation's intent to hold the security for an extended period. If management believes there is a low probability of recovering book value in a reasonable time frame, it records an impairment by writing the security down to market value. As previously mentioned, equity securities are monitored on an ongoing basis but special attention is given to those securities that have experienced a decline in fair value for six months or more. An impairment charge is generally recognized when the fair value of an equity security has remained significantly below cost for a period of 12 consecutive months or more. | |||
Variable interest entities (“VIE”) | |||
A VIE is an entity in which the Corporation holds an equity interest. An institution that has a controlling financial interest in a VIE is referred to as the primary beneficiary and consolidates the VIE. The Corporation is deemed to have a controlling financial interest and is the primary beneficiary of a VIE if it has both the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. | |||
In connection with a sale of loans with a book value of $269.3 million to CPG/GS PR NPL, LLC (“CPG/GS”) completed on February 16, 2011, the Bank received a 35% subordinated interest in CPG/GS, as further discussed in Note 13. The Corporation's investment in this unconsolidated entity was considered significant under Rule 3-09 of Regulation S-X for the year ended December 31, 2012. This rule looks to Rule 1-02(w) of Regulation S-X to determine the significance of the investee. The significance threshold for Rule 3-09 is 20% of assets or income. The Corporation must provide full financial information for unconsolidated subsidiaries and 50%-or-less owned entities accounted for by the equity method if the entities are significant, for any fiscal year presented, under the Rule 1-02(w) tests (investment or income tests) in Regulation S-X. | |||
The Corporation accounts for its investment in CPG/GS under the equity method and includes the investment as part of investment in unconsolidated entity in the consolidated statements of financial condition. When applying the equity method, the Corporation follows the hypothetical liquidation book value (“HLBV”) method to determine its share of earnings or losses of the unconsolidated entity. Under the HLBV method, the Corporation determines its share of earnings or losses by determining the difference between its “claim on the entity's book value” at the end of the period as compared to the beginning of the period. This claim is calculated as the amount the Corporation would receive if the entity were to liquidate all of its assets at recorded amounts determined in accordance with GAAP and distribute the resulting cash to the investors, according to their respective priorities as provided in the contractual agreements. The Bank reports its share of CPG/GS's operating results on a one-quarter lag basis. In addition, as a result of using HLBV, the difference between the Bank's investment in CPG/GS and its claim on the book value of CPG/GS at the date of the investment, known as the basis difference, is amortized over the estimated life of the investment. The loss recorded in 2014 reduced the carrying amount of the Bank's investment in CPG/GS to zero. No negative investment needs to be reported as the Bank has no legal obligation or commitment to provide further financial support to this entity; thus, no further losses will be recorded on this investment. Any potential increase in the carrying value of the investment in CPG/GS, under the HLBV method, would depend upon how better off the Bank is at the end of the period than it was at the beginning of the period after the waterfall calculation performed to determine the amount of gain allocated to the investors. | |||
Loans held for investment | |||
Loans that the Corporation has the ability and intent to hold for the foreseeable future are classified as held for investment. The substantial majority of the Corporation's loans are classified as held for investment. Loans are stated at the principal outstanding balance, net of unearned interest, cumulative charge-offs, unamortized deferred origination fees and costs, and unamortized premiums and discounts. Fees collected and costs incurred in the origination of new loans are deferred and amortized using the interest method or a method that approximates the interest method over the term of the loan as an adjustment to interest yield. Unearned interest on certain personal loans, auto loans and finance leases and discounts and premiums are recognized as income under a method that approximates the interest method. When a loan is paid-off or sold, any unamortized net deferred fee (cost) is credited (charged) to income. Credit card loans are reported at their outstanding unpaid principal balance plus uncollected billed interest and fees net of amounts deemed uncollectible. PCI loans are reported net of any remaining purchase accounting adjustments. See “Loans acquired” below for the accounting policy for PCI loans. | |||
Non-Performing and Past-Due Loans - Loans on which the recognition of interest income has been discontinued are designated as non-performing. Loans are classified as non-performing when they are 90 days past due for interest and principal, with the exception of residential mortgage loans guaranteed by the Federal Housing Administration (the “FHA”) or the Veterans Administration (the “VA”) and credit cards. It is the Corporation's policy to report delinquent mortgage loans insured by the FHA or guaranteed by the VA as loans past due 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. However, the Corporation discontinues the recognition of income for FHA/VA loans when such loans are over 18 months delinquent. As permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”), credit card loans are generally charged off in the period in which the account becomes 180 days past due. Credit card loans continue to accrue finance charges and fees until charged off at 180 days. Loans generally may be placed on non-performing status prior to when required by the policies described above when the full and timely collection of interest or principal becomes uncertain (generally based on an assessment of the borrower's financial condition and the adequacy of collateral, if any). When a loan is placed on non-performing status, any accrued but uncollected interest income is reversed and charged against interest income and amortization of any net deferred fees is suspended. Interest income on non-performing loans is recognized only to the extent it is received in cash. However, when there is doubt regarding the ultimate collectability of loan principal, all cash thereafter received is applied to reduce the carrying value of such loans (i.e., the cost recovery method). Generally, the Corporation returns a loan to accrual status when all delinquent interest and principal becomes current under the terms of the loan agreement or when the loan is well secured and in the process of collection, and collectability of the remaining interest and principal is no longer doubtful. Loans that are past due 30 days or more as to principal or interest are considered delinquent, with the exception of residential mortgage, commercial mortgage, and construction loans, which are considered past due when the borrower is in arrears on two or more monthly payments. | |||
Impaired Loans - A loan is considered impaired when, based upon current information and events, it is probable that the Corporation will be unable to collect all amounts due (including principal and interest) according to the contractual terms of the loan agreement. Loans with insignificant delays or insignificant shortfalls in the amounts of payments expected to be collected are not considered to be impaired. The Corporation measures impairment individually for those loans in the construction, commercial mortgage, and commercial and industrial portfolios with a principal balance of $1 million or more and any loans that have been modified in a troubled debt restructuring (“TDRs”). The Corporation also evaluates for impairment purposes certain residential mortgage loans and home equity lines of credit with high delinquency and loan-to-value levels. Generally, consumer loans are not individually evaluated for impairment on a regular basis except for impaired marine financing loans in amounts that exceed $1 million, home equity lines with high delinquency and loan-to-value levels and TDRs. Held-for-sale loans are not reported as impaired, as these loans are recorded at the lower of cost or fair value. | |||
The Corporation generally measures impairment and the related specific allowance for individually impaired loans based on the difference between the recorded investment of the loan and the present value of the loans' expected future cash flows, discounted at the effective original interest rate of the loan at the time of modification, or the loan's observable market price. If the loan is collateral dependent, the Corporation measures impairment based upon the fair value of the underlying collateral, instead of discounted cash flows, regardless of whether foreclosure is probable. Loans are identified as collateral dependent if the repayment is expected to be provided solely by the underlying collateral, through liquidation or operation of the collateral. When the fair value of the collateral is used to measure impairment on an impaired collateral-dependent loan and repayment or satisfaction of the loan is dependent on the sale of the collateral, the fair value of the collateral is adjusted to consider estimated costs to sell. If repayment is dependent only on the operation of the collateral, the fair value of the collateral is not adjusted for estimated costs to sell. If the fair value of the loan is less than the recorded investment, the Corporation recognizes impairment by either a direct write-down or establishing an allowance for the loan or by adjusting an allowance for the impaired loan. For an impaired loan that is collateral dependent, charge-offs are taken in the period in which the loan, or portion of the loan, is deemed uncollectible, and any portion of the loan not charged off is adversely credit risk rated at a level no worse than substandard. | |||
A restructuring of a loan constitutes a TDR if the creditor, for economic or legal reasons related to the debtor's financial difficulties, grants a concession to the debtor that it would not otherwise consider. TDRs typically result from the Corporation's loss mitigation activities and residential mortgage loans modified in accordance with guidelines similar to those of the U.S. government's Home Affordable Modification Program, and could include rate reductions, principal forgiveness, term extensions, payment forbearance, refinancing of any past-due amounts, including interest, escrow, and late charges and fees, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. | |||
TDRs are classified as either accrual or nonaccrual loans. A loan on nonaccrual status and restructured as a TDR will remain on nonaccrual status until the borrower demonstrates a sustained period of performance (generally six consecutive months of payments, inclusive of consecutive payments made prior to the modification), and there is evidence that such payments can and are likely to continue as agreed. Performance prior to the restructuring, or significant events that coincide with the restructuring, are evaluated in assessing whether the borrower can meet the new terms and may result in the loans being returned to accrual status at the time of the restructuring or after a shorter performance period. If the borrower's ability to meet the revised payment schedule is uncertain, the loan remains classified as a nonaccrual loan. Refer to Note 7 for additional qualitative and quantitative information about TDRs. | |||
In connection with commercial restructurings, the decision to maintain a loan that has been restructured on accrual status is based on a current, well-documented credit evaluation of the borrower's financial condition and prospects for repayment under the modified terms. The credit evaluation reflects consideration of the borrower's future capacity and willingness to pay, which may include evaluation of cash flow projections, consideration of the adequacy of collateral to cover all principal and interest, and trends indicating improving profitability and collectibility of receivables. This evaluation also includes an evaluation of the borrower's current willingness to pay, which may include a review of past payment history, an evaluation of the borrower's willingness to provide information on a timely basis, and consideration of offers from the borrower to provide additional collateral or guarantor support. | |||
The evaluation of mortgage and consumer loans for restructurings includes an evaluation of the client's disposable income and credit report, the value of the property, the loan to value relationship, and certain other client-specific factors that have impacted the borrower's ability to make timely principal and interest payments on the loan. In connection with retail restructurings, a nonperforming loan will be returned to accrual status when current as to principal and interest, under revised terms, and upon sustained historical repayment performance. | |||
The Corporation removes loans from TDR classification, consistent with authoritative guidance that allows for a TDR to be removed from this classification in years following the modification, only when the following two circumstances are met: | |||
The loan is in compliance with the terms of the restructuring agreement and, therefore, is not considered impaired under the revised terms; and | |||
The loan yields a market interest rate at the time of the restructuring. In other words, the loan was restructured with an interest rate equal to or greater than what the Corporation would have been willing to accept at the time of the restructuring for a new loan with comparable risk. | |||
If both of the conditions are met, the loan can be removed from the TDR classification in calendar years after the year in which the restructuring took place. However, the loan continues to be individually evaluated for impairment. Loans classified as TDRs, including loans in trial payment periods (trial modifications), are considered impaired loans. | |||
With respect to loan splits, generally, Note A of a loan split is restructured under market terms, and Note B is fully charged off. If Note A is in compliance with the restructured terms in years following the restructuring, Note A will be removed from the TDR classification. | |||
Interest income on impaired loans is recognized based on the Corporation's policy for recognizing interest on accrual and non-accrual loans. | |||
Loans Acquired - All purchased loans are recorded at fair value at the date of acquisition. Loans acquired with evidence of credit deterioration since their origination and where it is probable at the date of acquisition that the Corporation will not collect all contractually required principal and interest payments are considered PCI loans. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due and non-accrual status, and revised loan terms. Residential and consumer PCI loans have been aggregated into pools based on common risk characteristics. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. In accounting for PCI loans, the difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. The nonaccretable difference, which is neither accreted into income nor recorded on the consolidated statement of financial condition, reflects estimated future credit losses expected to be incurred over the life of the pool of loans. The excess of cash flows expected to be collected over the estimated fair value of PCI loans is referred to as the accretable yield. This amount is not recorded on the statement of financial condition, but is accreted into interest income over the remaining life of the pool of loans, using the effective-yield method. | |||
Subsequent to acquisition, the Corporation completes quarterly evaluations of expected cash flows. Decreases in expected cash flows attributable to credit will generally result in an impairment charge to the provision for loan and lease losses and the establishment of an allowance for loan and lease losses. Increases in expected cash flows will generally result in a reduction in any allowance for loan and lease losses established subsequent to acquisition and an increase in the accretable yield. The adjusted accretable yield is recognized in interest income over the remaining life of the pool of loans. | |||
Resolutions of loans may include sales of loans to third parties, receipt of payments in settlement with the borrower, or foreclosure of the collateral. The Corporation's policy is to remove an individual loan from a pool based on comparing the amount received from its resolution with its contractual amount. Any difference between these amounts is absorbed by the nonaccretable difference for the entire pool. This removal method assumes that the amount received from resolution approximates pool performance expectations. The remaining accretable yield balance is unaffected and any material change in remaining effective yield caused by this removal method is addressed by the Corporation's quarterly cash flow evaluation process for each pool. For loans that are resolved by payment in full, there is no release of the nonaccretable difference for the pool because there is no difference between the amount received at resolution and the contractual amount of the loan. Modified PCI loans are not removed from a pool even if those loans would otherwise be deemed TDRs. | |||
Because the initial fair value of PCI loans recorded at acquisition includes an estimate of credit losses expected to be realized over the remaining lives of the loans, the Corporation separately tracks and reports PCI loans and excludes these loans from its delinquency and non-performing loan statistics. | |||
For acquired loans that are not deemed impaired at acquisition, subsequent to acquisition the Corporation recognizes the difference between the initial fair value at acquisition and the undiscounted expected cash flows in interest income over the period in which substantially all of the inherent losses associated with the non-PCI loans at the acquisition date are estimated to occur. Thus, such loans are accounted for consistently with other originated loans, potentially being classified as nonaccrual or impaired, as well as being classified under the Corporation's standard practice and procedures. In addition, these loans are considered in the determination of the allowance for loan losses. | |||
Charge-off of Uncollectible Loans - Net charge-offs consist of the unpaid principal balances of loans held for investment that the Corporation determines are uncollectible, net of recovered amounts. Charge-offs are recorded as a reduction to the allowance for loan and lease losses and subsequent recoveries of previously charged off amounts are credited to the allowance for loan and lease losses. Collateral dependent loans in the construction, commercial mortgage, and commercial and industrial loan portfolios are charged off to their net realizable value (fair value of collateral, less estimated costs to sell) when loans are considered to be uncollectible. Within the consumer loan portfolio, auto loans and finance leases are reserved once they are 120 days delinquent and are charged off to their estimated net realizable value when collateral deficiency is deemed uncollectible (i.e., when foreclosure/repossession is probable) or when the loan is 365 days past due. Within the other consumer loans class, closed-end loans are charged off when payments are 120 days in arrears, except small personal loans. Open-end (revolving credit) consumer loans, including credit card loans, and small personal loans are charged off when payments are 180 days in arrears. On a quarterly basis, residential mortgage loans that are 180 days delinquent and have an original loan-to-value ratio that is higher than 60% are reviewed and charged-off, as needed, to the fair value of the underlying collateral. Generally, all loans may be charged off or written down to the fair value of the collateral prior to the policies described above if a loss-confirming event occurred. Loss confirming events include, but are not limited to, bankruptcy (unsecured), continued delinquency, or receipt of an asset valuation indicating a collateral deficiency when the asset is the sole source of repayment. The Corporation does not record charge-offs on PCI loans that are performing in accordance with or better than expectations as of the date of acquisition, as the fair value of these loans already reflects a credit component. The Corporation records charge-offs on PCI loans only if actual losses exceed estimated losses incorporated into the fair value recorded at acquisition and the amount is deemed uncollectible. | |||
Loans held for sale | |||
Loans that the Corporation intends to sell or that the Corporation does not have the ability and intent to hold for the foreseeable future are classified as held-for-sale loans. Loans held for sale are stated at the lower-of-cost-or-market. Generally, the loans held-for-sale portfolio consists of conforming residential mortgage loans that the Corporation intends to sell to the Government National Mortgage Association (GNMA) and government sponsored entities (GSEs) such as the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC). Generally, residential mortgage loans held for sale are valued on an aggregate portfolio basis and the value is primarily derived from quotations based on the mortgage-backed securities market. The amount by which cost exceeds market value in the aggregate portfolio of loans held for sale, if any, is accounted for as a valuation allowance with changes therein included in the determination of net income and reported as part of mortgage banking activities in the consolidated statement of income (loss). Loan costs and fees are deferred at origination and are recognized in income at the time of sale. The fair value of commercial mortgage and construction loans held for sale is primarily derived from external appraisals with changes in the valuation allowance reported as part of other non-interest income in the consolidated statement of income (loss). | |||
In certain circumstances, the Corporation transfers loans to/from held for sale or held for investment based on a change in strategy. In particular, although no decision to sell any portion of its non-performing loan portfolio has been made, the Corporation continues to evaluate options to further reduce non-performing loan levels. These options could include bulk loan sales. If such a change in holding strategy is made, significant adjustments to the loans' carrying values may be necessary. These loans are transferred to held for sale at the lower of cost or fair value on the date of transfer and establish a new cost basis upon transfer. Write-downs of loans transferred from held for investment to held for sale are recorded as charge-offs at the time of transfer. | |||
Allowance for loan and lease losses | |||
The Corporation maintains the allowance for loan and lease losses at a level considered adequate to absorb losses currently inherent in the loan and lease portfolio. The Corporation does not maintain an allowance for held-for-sale loans or PCI loans that are performing in accordance with or better than expectations as of the date of acquisition, as the fair values of these loans already reflects a credit component. The allowance for loan and lease losses provides for probable losses that have been identified with specific valuation allowances for individually evaluated impaired loans and for probable losses believed to be inherent in the loan portfolio that have not been specifically identified. The determination of the allowance for loan and lease losses requires significant estimates, including the timing and amounts of expected future cash flows on impaired loans, consideration of current economic conditions, and historical loss experience pertaining to the portfolios and pools of homogeneous loans, all of which may be susceptible to change. | |||
The Corporation evaluates the need for changes to the allowance by portfolio loan segments and classes of loans within certain of those portfolio segments. The Corporation combines loans with similar credit risk characteristics into the following portfolio segments: commercial mortgage, construction, commercial and industrial, residential mortgage, and consumer loans. Classes are usually disaggregations of the portfolio segments. The classes within the residential mortgage segment are residential mortgages guaranteed by the U.S. government and other loans. The classes within the consumer portfolio are auto, finance leases, and other consumer loans. Other consumer loans mainly include unsecured personal loans, credit cards, home equity lines, lines of credits, and marine financing. The classes within the construction loan portfolio are land loans, construction of commercial projects, and construction of residential projects. The commercial mortgage and commercial and industrial segments are not further segmented into classes. The adequacy of the allowance for loan and lease losses is based on judgments related to the credit quality of each portfolio segment. These judgments consider ongoing evaluations of each portfolio segment, including such factors as the economic risks associated with each loan class, the financial condition of specific borrowers, the level of delinquent loans, historical loss experience, the value of any collateral and, where applicable, the existence of any guarantees or other documented support. In addition to the general economic conditions and other factors described above, additional factors considered include the internal risk ratings assigned to loans. An internal risk rating is assigned to each commercial loan at the time of approval and is subject to subsequent periodic review by the Corporation's senior management. The allowance for loan and lease losses is reviewed on a quarterly basis as part of the Corporation's continued evaluation of its asset quality. | |||
The allowance for loan and lease losses is increased through a provision for credit losses that is charged to earnings, based on the quarterly evaluation of the factors previously mentioned, and is reduced by charge-offs, net of recoveries. | |||
The allowance for loan and lease losses consists of specific reserves based upon valuations of loans considered to be impaired and general reserves. A specific valuation allowance is established for individual impaired loans in the commercial mortgage, construction, commercial and industrial, and residential mortgage loan portfolios, primarily when the collateral value of the loan (if the impaired loan is determined to be collateral dependent) or the present value of the expected future cash flows discounted at the loan's effective rate is lower than the carrying amount of that loan. The specific valuation allowance is computed for impaired commercial mortgage, construction, commercial and industrial, and real estate loans with individual principal balances of $1 million or more, TDRs, as well as smaller residential mortgage loans and home equity lines of credit considered impaired based on their delinquency and loan-to-value levels. When foreclosure is probable and for collateral dependent loans, the impairment measure is based on the fair value of the collateral. The fair value of the collateral is generally obtained from appraisals. Updated appraisals are obtained when the Corporation determines that loans are impaired and are generally updated annually thereafter. In addition, appraisals and/or broker price opinions are also obtained for residential mortgage loans based on specific characteristics such as delinquency levels, age of the appraisal, and loan-to-value ratios. The excess of the recorded investment in a collateral dependent loan over the resulting fair value of the collateral is charged-off when deemed uncollectible. | |||
For all other loans, which include small, homogeneous loans, such as auto loans, all classes in the consumer loan portfolio, residential mortgages in amounts under $1 million and commercial and construction loans not considered impaired, the Corporation maintains a general valuation allowance established through a process that begins with estimates of incurred losses based upon various statistical analyses. The general reserve is primarily determined by applying loss factors according to the loan type and assigned risk category (pass, special mention, and substandard not considered to be impaired; all doubtful loans are considered impaired). | |||
The Corporation uses a roll-rate methodology to estimate losses on its consumer loan portfolio based on delinquencies and considering credit bureau score bands. The Corporation tracks the historical portfolio performance to arrive at a weighted average distribution in each subgroup of each delinquency bucket. Roll-to-loss rates (loss factors) are calculated by multiplying the roll rates from each subgroup within the delinquency buckets forward through loss. Once roll rates are calculated, the resulting loss factor is applied to the existing receivables in the applicable subgroups within the delinquency buckets and the end results are aggregated to arrive at the required allowance level. The Corporation's assessment also involves evaluating key qualitative and environmental factors, which include credit and macroeconomic indicators such as unemployment, bankruptcy trends, recent market transactions, and collateral values to account for current market conditions that are likely to cause estimated credit losses to differ from historical loss experience. The Corporation analyzes the expected delinquency migration to determine the future volume of delinquencies. | |||
The non-PCI portion of a credit card portfolio acquired in 2012 was recorded at the fair value on the acquisition date of $353.2 million, net of a discount of $18.2 million. The discount at acquisition was attributable to uncertainties in the cash flows of this portfolio based on an estimation of inherent credit losses. As previously discussed, the discount recorded at acquisition was accreted and recognized in interest income over the period in which substantially all of the inherent losses associated with the non-PCI loans at the acquisition date were estimated to occur. Subsequent to acquisition, the Corporation evaluated its estimate of embedded losses on a quarterly basis. The allowance for non-PCI loans acquired was determined considering the outstanding balance of the portfolio net of any unaccreted discount. To the extent the required allowance exceeded the unaccreted discount, a provision was required. The remaining discount on the credit card portfolio acquired in 2012 was fully accreted into income during the first half of 2014. The provision recorded during 2013 and 2014 relates to new purchases on these non-PCI credit card loans and to the allowance methodology described above. The provision in 2013 and 2014 was not related to changes in expected loan losses assumed in the accounting for the acquisition of the portfolio. | |||
The cash flow analysis for each residential mortgage pool is performed at the individual loan level and then aggregated to the pool level in determining the overall expected loss ratio. The model applies risk-adjusted prepayment curves, default curves, and severity curves to each loan in the pool. For loan restructuring pools, the present value of expected future cash flows under new terms, at the loan's effective interest rate, is taken into consideration. Additionally, the default risk and prepayments related to loan restructurings are based on, among other things, the historical experience of these loans. Loss severity is affected by the expected house price scenario, which is based in part on recent house price trends. Default curves are used in the model to determine expected delinquency levels. The risk-adjusted timing of liquidations and associated costs are used in the model, and are risk-adjusted for the geographic area in which each property is located (Puerto Rico, Florida, or the Virgin Islands). For residential mortgage loans, the determination of reserves includes the incorporation of updated loss factors applicable to loans expected to liquidate over the next twelve months, considering the expected realization of similarly valued assets at disposition. | |||
During the second quarter of 2014, the Corporation made certain enhancements to the general allowance estimation process for commercial loans, which mainly consisted of the following: | |||
Utilization of longer historical loss periods to better reflect the level of incurred losses in portfolio. Historical charge-off rates are calculated by the Corporation on a quarterly basis by tracking cumulative charge-offs experienced over a two-year loss period on loans according to their internal risk rating (referred to as “base rate” for the quarter). Prior to the second quarter enhancements, the Corporation would use the base rate of the current quarter or the average of the last 4 quarters, if greater. During the second quarter of 2014, the Corporation eliminated the use of the “greater of” approach and adopted the utilization of the base rate average of the last 8 quarters. This change captures a longer historical period that helps mitigate period to period volatility in the loss rates. | |||
Enhancements of the environmental factors adjustment. Prior to the second quarter of 2014 enhancements, these adjustments were applied in the form of basis point additions to the loss ratio based on changes in credit and economic indicators observed in the most recent periods. Beginning in the second quarter of 2014, the resulting factor derived from a set of risk-based ratings and weights assigned to credit and economic indicators over a reasonable period is applied to a developed expected range of historical losses, in order to adjust the base rates. These enhancements result in a framework that can be applied more consistently, by having a more granular analysis that better captures trends in economic conditions and the impact on the Corporation's portfolio. | |||
In addition, the calculation of loss rates for asset classifications with limited or zero loss history was improved to consider these loans' migration experience. | |||
At the date of implementation, the Corporation performed a parallel computation of the general reserve for commercial loans. The enhancements to the general allowance estimation process resulted in a net decrease to the allowance for loan losses of $4.8 million as of the implementation date of May 31, 2014. | |||
In the third quarter of 2014, similar enhancements to the environmental factors adjustment framework were applied to the consumer loans portfolio. The framework was defined for secured and unsecured loans to consider the specific behaviors separately. With respect to the historical charge-off rates, during the third quarter of 2014, the Corporation adopted the utilization of the base rate calculated as the average of the net charge-off ratio for the 12-month period preceding the most recent four quarters. Previously, the base rate was calculated as the average of the last two years' annual net charge-off ratio. The effect of these enhancements on the allowance for consumer loans was immaterial as of the implementation date of August 31, 2014. | |||
Transfers and servicing of financial assets and extinguishment of liabilities | |||
After a transfer of financial assets in a transaction that qualifies for sale accounting, the Corporation derecognizes the financial assets when control has been surrendered, and derecognizes liabilities when extinguished. | |||
The transfer of financial assets in which the Corporation surrenders control over the assets is accounted for as a sale to the extent that consideration other than beneficial interests is received in exchange. The criteria that must be met to determine that the control over transferred assets has been surrendered include: (1) the assets must be isolated from creditors of the transferor, (2) the transferee must obtain the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the transferor cannot maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. When the Corporation transfers financial assets and the transfer fails any one of the above criteria, the Corporation is prevented from derecognizing the transferred financial assets and the transaction is accounted for as a secured borrowing. | |||
Servicing Assets | |||
The Corporation recognizes as separate assets the rights to service loans for others, whether those servicing assets are originated or purchased. The Corporation is actively involved in the securitization of pools of FHA-insured and VA-guaranteed mortgages for the issuance of GNMA mortgage-backed securities. Also, certain conventional conforming loans are sold to FNMA or FHLMC with servicing retained. When the Corporation securitizes or sells mortgage loans, it recognizes any retained interest, based on its fair value. | |||
Servicing assets (“MSRs”) retained in a sale or securitization arise from contractual agreements between the Corporation and investors in mortgage securities and mortgage loans. The value of MSRs is derived from the net positive cash flows associated with the servicing contracts. Under these contracts, the Corporation performs loan-servicing functions in exchange for fees and other remuneration. The servicing functions typically include: collecting and remitting loan payments, responding to borrower inquiries, accounting for principal and interest, holding custodial funds for payment of property taxes and insurance premiums, supervising foreclosures and property dispositions, and generally administering the loans. The servicing rights, included as part of other assets in the statements of financial condition, entitle the Corporation to annual servicing fees based on the outstanding principal balance of the mortgage loans and the contractual servicing rate. The servicing fees are credited to income on a monthly basis when collected and recorded as part of mortgage banking activities in the consolidated statements of income (loss). In addition, the Corporation generally receives other remuneration consisting of mortgagor-contracted fees such as late charges and prepayment penalties, which are credited to income when collected. | |||
Considerable judgment is required to determine the fair value of the Corporation's servicing assets. Unlike highly liquid investments, the market value of servicing assets cannot be readily determined because these assets are not actively traded in securities markets. The initial carrying value of the servicing assets is generally determined based on its fair value. The fair value of the MSRs is determined based on a combination of market information on trading activity (MSR trades and broker valuations), benchmarking of servicing assets (valuation surveys), and cash flow modeling. The valuation of the Corporation's MSRs incorporates two sets of assumptions: (1) market derived assumptions for discount rates, servicing costs, escrow earnings rates, floating earnings rates, and the cost of funds and (2) market assumptions calibrated to the Corporation's loan characteristics and portfolio behavior for escrow balances, delinquencies and foreclosures, late fees, prepayments, and prepayment penalties. | |||
Once recorded, MSRs are periodically evaluated for impairment. Impairment occurs when the current fair value of the MSRs is less than its carrying value. If MSRs are impaired, the impairment is recognized in current-period earnings and the carrying value of the MSRs is adjusted through a valuation allowance. If the value of the MSRs subsequently increases, the recovery in value is recognized in current period earnings and the carrying value of the MSRs is adjusted through a reduction in the valuation allowance. For purposes of performing the MSR impairment evaluation, the servicing portfolio is stratified on the basis of certain risk characteristics such as region, terms, and coupons. An other-than-temporary impairment analysis is prepared to evaluate whether a loss in the value of the MSRs, if any, is other than temporary or not. When the recovery of the value is unlikely in the foreseeable future, a write-down of the MSRs in the stratum to its estimated recoverable value is charged to the valuation allowance. | |||
The servicing assets are amortized over the estimated life of the underlying loans based on an income forecast method as a reduction of servicing income. The income forecast method of amortization is based on projected cash flows. A particular periodic amortization is calculated by applying to the carrying amount of the MSRs the ratio of the cash flows projected for the current period to total remaining net MSR forecasted cash flow. | |||
Premises and equipment | |||
Premises and equipment are carried at cost, net of accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful life of each type of asset. Amortization of leasehold improvements is computed over the terms of the leases (contractual term plus lease renewals that are “reasonably assured”) or the estimated useful lives of the improvements, whichever is shorter. Costs of maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. Costs of renewals and betterments are capitalized. When assets are sold or disposed of, their cost and related accumulated depreciation are removed from the accounts and any gain or loss is reflected in earnings as part of other non-interest income in the statement of income (loss). When the asset is no longer used in operations, and the Corporation intends to sell it, the asset is reclassified to other assets held-for-sale and is reported at the lower of carrying amount or fair value less cost to sell. | |||
The Corporation has operating lease agreements primarily associated with the rental of premises to support the branch network or for general office space. Certain of these arrangements are noncancelable and provide for rent escalation and renewal options. Rent expense on noncancelable operating leases with scheduled rent increases is recognized on a straight-line basis over the lease term. | |||
Other real estate owned (OREO) | |||
OREO, which consists of real estate acquired in settlement of loans, is recorded at the lower of cost (carrying value of the loan) or fair value minus estimated cost to sell the real estate acquired. Generally, loans have been written down to their net realizable value prior to foreclosure. Any further reduction to their net realizable value is recorded with a charge to the allowance for loan losses at foreclosure or a short-time after foreclosure. Thereafter, gains or losses resulting from the sale of these properties and losses recognized on the periodic reevaluations of these properties are credited or charged to earnings and are included as part of net loss on OREO operations in the statements of income (loss). The cost of maintaining and operating these properties is expensed as incurred. The Corporation estimates fair values primarily based on appraisals, when available, and the net realizable value is reviewed and updated periodically depending of the type of property. | |||
Goodwill and other intangible assets | |||
Business combinations are accounted for using the purchase method of accounting. Assets acquired and liabilities assumed are recorded at estimated fair value as of the date of acquisition. After initial recognition, any resulting intangible assets are accounted for as follows: | |||
Goodwill | |||
The Corporation evaluates goodwill for impairment on an annual basis, generally during the fourth quarter, or more often if events or circumstances indicate there may be impairment. The Corporation evaluated goodwill for impairment as of October 1, 2014. Goodwill impairment testing is performed at the segment (or “reporting unit”) level. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill has been assigned to a reporting unit, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or internally generated, are available to support the value of the goodwill. The Corporation's goodwill is related to the acquisition of FirstBank Florida in 2005. | |||
The Corporation bypassed the qualitative assessment in 2014 and proceeded directly to perform the first step of the two-step goodwill impairment test. The first step (the “Step 1”) involves a comparison of the estimated fair value of the reporting unit to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is not considered impaired. If the carrying value exceeds the estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of the impairment. | |||
The second step (the “Step 2”), if necessary, involves calculating an implied fair value of the goodwill for each reporting unit for which the Step 1 indicated a potential impairment. The implied fair value of goodwill is determined in a manner similar to the calculation of the amount of goodwill in a business combination, by measuring the excess of the estimated fair value of the reporting unit, as determined in the Step 1, over the aggregate estimated fair values of the individual assets, liabilities, and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. | |||
In determining the fair value of a reporting unit, which is based on the nature of the business and the reporting unit's current and expected financial performance, the Corporation uses a combination of methods, including market price multiples of comparable companies, as well as a discounted cash flow analysis (“DCF”). The Corporation evaluates the results obtained under each valuation methodology to identify and understand the key value drivers in order to ascertain that the results obtained are reasonable and appropriate under the circumstances. | |||
The computations require management to make estimates and assumptions. Critical assumptions that are used as part of these evaluations include: | |||
a selection of comparable publicly traded companies, based on size, performance, and asset quality; | |||
the discount rate applied to future earnings, based on an estimate of the cost of equity; | |||
the potential future earnings of the reporting unit; and | |||
the market growth and new business assumptions. | |||
For purposes of the market comparable approach, valuation was determined based on market multiples for comparable companies and market participant assumptions applied to the reporting unit to derive an implied value of equity. | |||
For purposes of the DCF analysis approach, the valuation is based on estimated future cash flows. The financial projections used in the DCF analysis for the reporting unit are based on the most recent available data. The growth assumptions included in these projections are based on management's expectations of the reporting unit's financial prospects as well as particular plans for the entity (i.e., restructuring plans). The cost of equity was estimated using the capital asset pricing model using comparable companies, an equity risk premium, the rate of return of a “riskless” asset, a size premium based on the size of the reporting unit, and a company specific premium. The resulting discount rate was analyzed in terms of reasonability given current market conditions. | |||
The Step 1 evaluation of goodwill allocated to the Florida reporting unit, which is one level below the United States business segment, under both valuation approaches (market and DCF) indicated that the fair value of the unit was above the carrying amount of its equity book value as of the valuation date (October 1), which meant that Step 2 was not undertaken. Based on the analysis under both the income and market approaches, the estimated fair value of the reporting units exceeds the carrying amount of the unit, including goodwill, at the evaluation date. | |||
The Corporation engaged a third-party valuator to assist management in the annual evaluation of the Florida unit's goodwill as of the October 1 valuation date. In reaching its conclusion on impairment, management discussed with the valuator the methodologies, assumptions, and results supporting the relevant values for the goodwill and determined that they were reasonable. | |||
The goodwill impairment evaluation process requires the Corporation to make estimates and assumptions with regards to the fair value of reporting units. Actual values may differ significantly from these estimates. Such differences could result in future impairment of goodwill that would, in turn, negatively impact the Corporation's results of operations and the profitability of the reporting unit where goodwill is recorded. | |||
Goodwill was not impaired as of December 31, 2014 or 2013, nor was any goodwill written off due to impairment during 2014, 2013, and 2012. | |||
Other Intangibles | |||
Core deposit intangibles are amortized over their estimated lives, generally on a straight-line basis, and are reviewed periodically for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. | |||
The Corporation performed impairment tests for the years ended December 31, 2014, 2013, and 2012 and determined that no impairment was needed to be recognized for other intangible assets. | |||
In connection with the acquisition of a FirstBank-branded credit card loan portfolio in 2012, the Corporation recognized at acquisition a purchased credit card relationship intangible of $24.5 million ($16.4 million and $19.8 million as of December 31, 2014 and 2013, respectively) which is being amortized on an accelerated basis based on the estimated attrition rate of the purchased credit card accounts, which reflects the pattern in which the economic benefits of the intangible asset are consumed. These benefits are consumed as the revenue stream generated by the cardholder relationship is realized. For further disclosures, refer to Note 12 to the consolidated financial statements. | |||
Securities sold under agreements to repurchase | |||
The Corporation sells securities under agreements to repurchase the same or similar securities. Generally, similar securities are securities from the same issuer, with identical form and type, similar maturity, identical contractual interest rates, similar assets as collateral, and the same aggregate unpaid principal amount. The Corporation retains control over the securities sold under these agreements. Accordingly, these agreements are considered financing transactions and the securities underlying the agreements remain in the asset accounts. The counterparty to certain agreements may have the right to repledge the collateral by contract or custom. Such assets are presented separately in the statements of financial condition as securities pledged to creditors that can be repledged. | |||
From time to time, the Corporation modifies repurchase agreements to take advantage of prevailing interest rates. Following applicable GAAP guidance, if the Corporation determines that the debt under the modified terms is substantially different from the original terms, the modification must be accounted for as an extinguishment of debt. Modified terms are considered substantially different if the present value of the cash flows under the terms of the new debt instrument is at least 10% different from the present value of the remaining cash flows under the terms of the original instrument. The new debt instrument will be initially recorded at fair value, and that amount will be used to determine the debt extinguishment gain or loss to be recognized through the statement of income (loss) and the effective rate of the new instrument. If the Corporation determines that the debt under the modified terms is not substantially different, then the new effective interest rate shall be determined based on the carrying amount of the original debt instrument. None of the repurchase agreements modified in the past were considered to be substantially different from the original terms, and therefore, these modifications were not accounted for as extinguishments of debt. | |||
Rewards Liability | |||
The Corporation offers products, primarily credit cards, that offer reward program members with various rewards, such as airline tickets, cash, or merchandise, based on account activity. The Corporation generally recognizes the cost of rewards as part of business promotion expenses when the rewards are earned by the customer and, at that time, records the corresponding rewards liability. The reward liability is computed based on points earned to date that are expected to be redeemed and the average cost per point redemption. The reward liability is reduced as points are redeemed. In estimating the reward liability, the Corporation considers historical reward redemption behavior, the terms of the current reward program, and the card purchase activity. The reward liability is sensitive to changes in the reward redemption type and redemption rate, which is based on the expectation that the vast majority of all points earned will eventually be redeemed. The reward liability, which is included in other liabilities in the consolidated statement of financial condition, totaled $9.0 million and $8.1 million as of December 31, 2014 and 2013, respectively. | |||
Income taxes | |||
The Corporation uses the asset and liability method for the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Corporation's financial statements or tax returns. Deferred income tax assets and liabilities are determined for differences between financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. The computation is based on enacted tax laws and rates applicable to periods in which the temporary differences are expected to be recovered or settled. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. In making such assessment, significant weight is given to evidence that can be objectively verified, including both positive and negative evidence. The authoritative guidance for accounting for income taxes requires the consideration of all sources of taxable income available to realize the deferred tax asset, including the future reversal of existing temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in carryback years, and tax planning strategies. In estimating taxes, management assesses the relative merits and risks of the appropriate tax treatment of transactions taking into account statutory, judicial, and regulatory guidance. Refer to Note 24 to the consolidated financial statements for additional information. | |||
Under the authoritative accounting guidance, income tax benefits are recognized and measured based on a two-step analysis: 1) a tax position must be more likely than not to be sustained based solely on its technical merits in order to be recognized, and 2) the benefit is measured at the largest dollar amount of that position that is more likely than not to be sustained upon settlement. The difference between the benefit recognized in accordance with this analysis and the tax benefit claimed on a tax return is referred to as an Unrecognized Tax Benefit (“UTB”). The Corporation classifies interest and penalties, if any, related to UTBs as components of income tax expense. Refer to Note 24 for required disclosures and further information. | |||
Treasury stock | |||
The Corporation accounts for treasury stock at par value. Under this method, the treasury stock account is increased by the par value of each share of common stock reacquired. Any excess paid per share over the par value is debited to additional paid-in capital for the amount per share that was originally credited. Any remaining excess is charged to retained earnings. | |||
Stock-based compensation | |||
Compensation cost is recognized in the financial statements for all share-based payment grants. Between 1997 and 2007, the Corporation had a stock option plan (the “1997 stock option plan”) covering eligible employees. On January 21, 2007, the 1997 stock option plan expired; all outstanding awards under this plan continue to be in full force and effect, subject to their original terms. No awards for shares could be granted under the 1997 stock option plan as of its expiration. | |||
On April 29, 2008, the Corporation's stockholders approved the First BanCorp 2008 Omnibus Incentive Plan, as amended (the “Omnibus Plan”). The Omnibus Plan provides for equity-based compensation incentives (the “awards”) through the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, and other stock-based awards. The compensation cost for an award, determined based on the estimate of the fair value at the grant date (considering forfeitures and any postvesting restrictions), is recognized over the period during which an employee or director is required to provide services in exchange for an award, which is the vesting period. | |||
Stock-based compensation accounting guidance requires the Corporation to develop an estimate of the number of share-based awards that will be forfeited due to employee or director turnover. Quarterly changes in the estimated forfeiture rate may have a significant effect on share-based compensation, as the effect of adjusting the rate for all expense amortization is recognized in the period in which the forfeiture estimate is changed. If the actual forfeiture rate is higher than the estimated forfeiture rate, then an adjustment is made to increase the estimated forfeiture rate, which will result in a decrease in the expense recognized in the financial statements. If the actual forfeiture rate is lower than the estimated forfeiture rate, an adjustment is made to decrease the estimated forfeiture rate, which will result in an increase in the expense recognized in the financial statements. When unvested options or shares of restricted stock are forfeited, any compensation expense previously recognized on the forfeited awards is reversed in the period of the forfeiture. For additional information regarding the Corporation's equity-based compensation and awards granted, refer to Note 19. | |||
Comprehensive income | |||
Comprehensive income for First BanCorp. includes net income and the unrealized gain (loss) on available-for-sale securities, net of estimated tax effects. | |||
Segment Information | |||
The Corporation reports financial and descriptive information about its reportable segments (see Note 31). Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by management in deciding how to allocate resources and in assessing performance. The Corporation's management determined that the segregation that best fulfills the segment definition described above is by lines of business for its operations in Puerto Rico, the Corporation's principal market, and by geographic areas for its operations outside of Puerto Rico. As of December 31, 2014, the Corporation had six operating segments that are all reportable segments: Commercial and Corporate Banking; Mortgage Banking; Consumer (Retail) Banking; Treasury and Investments; United States Operations; and Virgin Islands Operations. Refer to Note 31 for additional information. | |||
Valuation of financial instruments | |||
The measurement of fair value is fundamental to the Corporation's presentation of its financial condition and results of operations. The Corporation holds fixed income and equity securities, derivatives, investments, and other financial instruments at fair value. The Corporation holds its investments and liabilities mainly to manage liquidity needs and interest rate risks. A significant part of the Corporation's total assets is reflected at fair value on the Corporation's financial statements. | |||
The FASB authoritative guidance for fair value measurement defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This guidance also establishes a fair value hierarchy for classifying financial instruments. The hierarchy is based on whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. Three levels of inputs may be used to measure fair value: | |||
Level 1 | Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | ||
Level 2 | Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||
Level 3 | Valuations are observed from unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||
Under the fair value accounting guidance, an entity has the irrevocable option to elect, on a contract-by-contract basis, to measure certain financial assets and liabilities at fair value at the inception of the contract and, thereafter, to reflect any changes in fair value in current earnings. The Corporation did not make any fair value option election as of December 31, 2014 or 2013. See Note 26 for additional information. | |||
Income recognition— Insurance agency | |||
Commission revenue is recognized as of the effective date of the insurance policy. Additional premiums and rate adjustments are recorded as they occur. The Corporation also receives contingent commissions from insurance companies as additional incentive for achieving specified premium volume goals and/or the loss experience of the insurance placed by the Corporation. Contingent commissions from insurance companies are recognized when determinable, which is generally when such commissions are received or when the amount to be received is reported to the Corporation by the insurance company. An allowance is created for expected adjustments to commissions earned relating to policy cancellations. | |||
Advertising costs | |||
Advertising costs for all reporting periods are expensed as incurred. | |||
Earnings per common share | |||
Earnings (loss) per share-basic is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of outstanding common shares. Net income (loss) attributable to common stockholders represents net income (loss) adjusted for any preferred stock dividends, including dividends declared, cumulative dividends related to the current dividend period that have not been declared as of the end of the period, if any, and the accretion of discounts on preferred stock issuances, if any. Basic weighted average common shares outstanding excludes unvested shares of restricted stock. For 2014, the net income attributable to common stockholders also includes the one-time effect of the issuance of common stock in the conversion of the Series A through E preferred stock. These transactions are further discussed in Note 20. The computation of earnings per share-diluted is similar to the computation of earnings per share-basic except that the number of weighted average common shares is increased to include the number of additional common shares that would have been outstanding if the dilutive common shares had been issued, referred to as potential common shares. | |||
Potential common shares consist of common stock issuable upon the assumed exercise of stock options, unvested shares of restricted stock, and outstanding warrants using the treasury stock method. This method assumes that the potential common shares are issued and the proceeds from the exercise, in addition to the amount of compensation cost attributable to future services, are used to purchase common stock at the exercise date. The difference between the numbers of potential shares issued and potential shares purchased is added as incremental shares to the actual number of shares outstanding to compute diluted earnings per share. Stock options, unvested shares of restricted stock, and outstanding warrants that result in lower potential shares issued than potential shares purchased under the treasury stock method are not included in the computation of dilutive earnings per share since their inclusion would have an antidilutive effect on earnings per share. | |||
Recently issued accounting standards and Recently adopted accounting pronouncement | |||
The FASB has issued the following accounting pronouncements and guidance relevant to the Corporation's operations: | |||
In July 2013, the FASB updated the Codification to provide explicit guidelines on how to present an unrecognized tax benefit in financial statements when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments were effective for public entities with fiscal periods beginning after December 15, 2013. The adoption to this guidance in 2014 did not have an effect on the Corporation's financial statements. Refer to Note 24 for additional information about the Corporation's unrecognized tax benefits, including the settlement reached with the United States Internal Revenue Service (“IRS”) in the third quarter of 2014. | |||
In January 2014, the FASB updated the Codification to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan so that the loan should be derecognized and the real estate property recognized in the financial statements. The Update clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either: (i) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (ii) the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. In addition, creditors are required to disclose on an annual and interim basis both (i) the amount of the foreclosed residential real estate property held and (ii) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments are effective for public business entities for annual periods beginning after December 15, 2014, and interim periods within those fiscal years. Early adoption is permitted. The guidance can be implemented using either a modified retrospective transition method or a prospective transition method. The Corporation adopted the provisions of this guidance on a prospective basis during the first quarter of 2015 without any material impact on the Corporation's financial statements. Required disclosures will be provided in the first interim period of 2015 and prospectively. | |||
In April 2014, the FASB issued an update to current accounting standards which will change the criteria for reporting discontinued operations. The amendments will also require new disclosures about discontinued operations and disposals of components of an entity that do not qualify for discontinued operations reporting. The amendments are effective for the Corporation for new disposals (or classifications as held for sale) of components of the Corporation, should they occur, beginning in the first quarter of fiscal year 2016. Early adoption is permitted for disposals (or classifications as held for sale) that have not been previously reported. | |||
In May 2014, the FASB updated the Codification to create a new, principle-based revenue recognition framework. The Update is the culmination of efforts by the FASB and the International Accounting Standards Board to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance describes a 5-step process entities can apply to achieve the core principle of revenue recognition and requires disclosures sufficient to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers and the significant judgments used in determining that information. The amendments are effective for public business entities for annual periods beginning after December 15, 2016, including interim periods within those reporting periods. Early adoption is not permitted. The Corporation is currently evaluating the impact that the adoption of this guidance will have on the presentation and disclosures in its financial statements. | |||
In June 2014, the FASB updated the Codification to respond to stakeholders' concerns about current accounting and disclosures for repurchase agreements and similar transactions. This Update requires two accounting changes. First, the Update changes the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the Update requires separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. Additionally, the Update introduces new disclosures to (i) increase transparency about the types of collateral pledged in secured borrowing transactions and (ii) enable users to better understand transactions in which the transferor retains substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. For public business entities, the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. All other accounting and disclosure amendments in the Update are effective for public business entities for the first interim or annual period beginning after December 15, 2014. The Corporation does not anticipate that the adoption of this guidance will have a material effect on its financial statements. | |||
In June 2014, the FASB updated the Codification to provide guidance for determining compensation cost under specific circumstances when an employee's compensation award is eligible to vest regardless of whether the employee is rendering service on the date the performance target is achieved. This Update becomes effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted. The Corporation is currently evaluating the impact that the adoption of this guidance will have on the presentation and disclosures in its financial statements, if any. | |||
In August 2014, the FASB updated the Codification to reduce the diversity found in the classification of certain foreclosed mortgage loans held by creditors that are either fully or partially guaranteed under government programs. Consistency in classification upon foreclosure is expected in order to provide more decision-useful information. The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if: (i) the loan has a government guarantee that is not separable from the loan before foreclosure; (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under the claim, and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The Update is effective for public business entities for annual periods, and interim periods within those annual periods beginning after December 15, 2014. The guidance can be implemented using either a prospective transition method or a modified retrospective transition method. The Corporation adopted the provisions of this guidance on a prospective basis during the first quarter of 2015 without any material impact on the Corporation's financial statements. | |||
In August 2014, the FASB updated the Codification to provide guidance in GAAP about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. Management's evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. If conditions or events raise substantial doubt about an entity's ability to continue as a going concern, but the substantial doubt is alleviated as a result of consideration of management's plans, the entity should disclose information that enables users of the financial statements to understand. The Update is effective for all business entities for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Corporation expects the adoption of this guidance will have no impact on the Corporation's financial position, results of operations, comprehensive income, cash flows and disclosures. | |||
In November 2014, the FASB updated the Codification to clarify how current GAAP should be interpreted in evaluating the economic characteristics and risk of a host contract in a hybrid financial instrument that is issued in the form of a share. In addition, the Update was issued to clarify that, in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features (that is, the relative strength of the debt-like or equity-like terms and features given the facts and circumstances) when considering how to weight those terms and features. The effects of initially adopting this Update should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendments are effective. Retrospective application is permitted to all relevant prior periods. This Update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption in an interim period is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements, if any. | |||
In January 2015, the FASB updated the Codification as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative), to eliminate from GAAP the concept of extraordinary items. Under current GAAP, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. In order to be classified as an extraordinary item the event or transaction must be: (i) unusual in nature, and (ii) infrequent in occurrence. Before the update was issued, an entity was required to segregate these items from the results of ordinary operations and show the items separately in the income statement, net of tax, after income from continuing operations. This Update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption in an interim period is permitted. The Corporation expects the adoption of this guidance will have no impact on the Corporation's consolidated financial statements. |
RESTRICTIONS_ON_CASH_AND_DUE_F
RESTRICTIONS ON CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2014 | |
Restrictions on Cash and Due from Banks [Abstract] | |
Restrictions on Cash and Due from Banks [Text Block] | NOTE 2 – RESTRICTIONS ON CASH DUE AND DUE FROM BANKS |
The Corporation's bank subsidiary, FirstBank, is required by law to maintain minimum average weekly reserve balances to cover demand deposits. The amount of those minimum average weekly reserve balances for the period that covered December 31, 2014 was $124.8 million (2013 — $101.1 million). As of December 31, 2014 and 2013, the Bank complied with the requirement. Cash and due from banks as well as other short-term, highly liquid securities are used to cover the required average reserve balances. | |
As of December 31, 2014, and as required by the Puerto Rico International Banking Law, the Corporation maintained $300,000 in time deposits, which were considered restricted assets related to FirstBank Overseas Corporation, an international banking entity that is a subsidiary of FirstBank. | |
MONEY_MARKET_INVESTMENTS
MONEY MARKET INVESTMENTS | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Money Market Investments [Abstract] | ||||||
Money Market Investments [Text Block] | NOTE 3 – MONEY MARKET INVESTMENTS | |||||
Money market investments are composed of time deposits with other financial institutions and short-term investments with original maturities of three months or less. | ||||||
Money market investments as of December 31, 2014 and 2013 were as follows: | ||||||
2014 | 2013 | |||||
Balance | ||||||
(Dollars in thousands) | ||||||
Time deposits with other financial institutions, weighted average interest rate 0.18% | ||||||
(2013- 0.20%) | $ | 300 | $ | 300 | ||
Other short-term investments, weighted average interest rate of 0.15% | ||||||
(2013 - weighted average interest rate of 0.34%) | 16,661 | 201,069 | ||||
$ | 16,961 | $ | 201,369 | |||
As of December 31, 2014 and 2013, the Corporation's money market investments that were pledged as collateral for interest rate swaps amounted to $0.20 million. | ||||||
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
INVESTMENT SECURITIES [Text Block] | NOTE 4 – INVESTMENT SECURITIES | ||||||||||||||||||||
Investment Securities Available for Sale | |||||||||||||||||||||
The amortized cost, non-credit loss component of OTTI recorded in OCI, gross unrealized gains and losses recorded in OCI, approximate fair value, weighted average yield and contractual maturities of investment securities available for sale as of December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Amortized cost | Noncredit Loss Component of OTTI Recorded in OCI | Gross | Fair value | Weighted average yield% | |||||||||||||||||
Unrealized | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
U.S. Treasury securities: | |||||||||||||||||||||
Due within one year | $ | 7,498 | $ | - | $ | 1 | $ | - | $ | 7,499 | 0.11 | ||||||||||
Obligations of U.S. | |||||||||||||||||||||
government-sponsored | |||||||||||||||||||||
agencies: | |||||||||||||||||||||
After 1 to 5 years | 260,889 | - | 42 | 4,219 | 256,712 | 1.22 | |||||||||||||||
After 5 to 10 years | 78,234 | - | 246 | 2,077 | 76,403 | 1.72 | |||||||||||||||
Puerto Rico government | |||||||||||||||||||||
obligations: | |||||||||||||||||||||
After 1 to 5 years | 39,827 | - | - | 12,419 | 27,408 | 4.49 | |||||||||||||||
After 5 to 10 years | 886 | - | 1 | - | 887 | 5.2 | |||||||||||||||
After 10 years | 20,498 | - | - | 5,571 | 14,927 | 5.83 | |||||||||||||||
United States and Puerto | |||||||||||||||||||||
Rico government | |||||||||||||||||||||
obligations | 407,832 | - | 290 | 24,286 | 383,836 | 1.86 | |||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
FHLMC certificates: | |||||||||||||||||||||
After 10 years | 315,311 | - | 1,743 | 1,260 | 315,794 | 2.17 | |||||||||||||||
GNMA certificates: | |||||||||||||||||||||
After 1 to 5 years | 39 | - | 1 | - | 40 | 3.26 | |||||||||||||||
After 5 to 10 years | 17,108 | - | 501 | - | 17,609 | 3.65 | |||||||||||||||
After 10 years | 338,842 | - | 20,957 | - | 359,799 | 3.83 | |||||||||||||||
355,989 | - | 21,459 | - | 377,448 | 3.83 | ||||||||||||||||
FNMA certificates: | |||||||||||||||||||||
After 1 to 5 years | 4,160 | - | 181 | - | 4,341 | 3.4 | |||||||||||||||
After 5 to 10 years | 9,584 | - | 521 | 5 | 10,100 | 3.49 | |||||||||||||||
After 10 years | 837,597 | - | 7,756 | 4,854 | 840,499 | 2.36 | |||||||||||||||
851,341 | - | 8,458 | 4,859 | 854,940 | 2.37 | ||||||||||||||||
Other mortgage pass-through | |||||||||||||||||||||
trust certificates: | |||||||||||||||||||||
After 5 to 10 years | 111 | - | 1 | - | 112 | 7.27 | |||||||||||||||
After 10 years | 45,677 | 12,141 | - | - | 33,536 | 2.17 | |||||||||||||||
45,788 | 12,141 | 1 | - | 33,648 | 2.17 | ||||||||||||||||
Total mortgage-backed | |||||||||||||||||||||
securities | 1,568,429 | 12,141 | 31,661 | 6,119 | 1,581,830 | 2.66 | |||||||||||||||
Equity securities (without | |||||||||||||||||||||
Total investment securities | |||||||||||||||||||||
available for sale | $ | 1,976,261 | $ | 12,141 | $ | 31,951 | $ | 30,405 | $ | 1,965,666 | 2.49 | ||||||||||
31-Dec-13 | |||||||||||||||||||||
Amortized cost | Noncredit Loss Component of OTTI Recorded in OCI | Gross | Fair value | Weighted average yield% | |||||||||||||||||
Unrealized | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
U.S. Treasury securities: | |||||||||||||||||||||
Due within one year | $ | 7,498 | $ | - | $ | 1 | $ | - | $ | 7,499 | 0.12 | ||||||||||
Obligations of U.S. | |||||||||||||||||||||
government-sponsored | |||||||||||||||||||||
agencies: | |||||||||||||||||||||
After 1 to 5 years | 50,000 | - | - | 1,408 | 48,592 | 1.05 | |||||||||||||||
After 5 to 10 years | 214,271 | - | - | 13,368 | 200,903 | 1.31 | |||||||||||||||
Puerto Rico government | |||||||||||||||||||||
obligations: | |||||||||||||||||||||
Due within one year | 10,000 | - | - | 210 | 9,790 | 3.5 | |||||||||||||||
After 5 to 10 years | 40,699 | - | - | 12,962 | 27,737 | 4.51 | |||||||||||||||
After 10 years | 20,309 | - | - | 6,506 | 13,803 | 5.82 | |||||||||||||||
United States and Puerto | |||||||||||||||||||||
Rico government | |||||||||||||||||||||
obligations | 342,777 | - | 1 | 34,454 | 308,324 | 1.96 | |||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
FHLMC certificates: | |||||||||||||||||||||
After 10 years | 332,766 | - | 133 | 10,712 | 322,187 | 2.16 | |||||||||||||||
GNMA certificates: | |||||||||||||||||||||
After 1 to 5 years | 86 | - | 4 | - | 90 | 3.48 | |||||||||||||||
After 5 to 10 years | 800 | - | 37 | - | 837 | 2.47 | |||||||||||||||
After 10 years | 425,589 | - | 18,492 | - | 444,081 | 3.82 | |||||||||||||||
426,475 | - | 18,533 | - | 445,008 | 3.82 | ||||||||||||||||
FNMA certificates: | |||||||||||||||||||||
After 1 to 5 years | 1,389 | - | 84 | - | 1,473 | 4.82 | |||||||||||||||
After 5 to 10 years | 7,765 | - | 389 | - | 8,154 | 4.09 | |||||||||||||||
After 10 years | 882,798 | - | 2,984 | 33,626 | 852,156 | 2.36 | |||||||||||||||
891,952 | - | 3,457 | 33,626 | 861,783 | 2.38 | ||||||||||||||||
Collateralized mortgage | |||||||||||||||||||||
obligations issued or | |||||||||||||||||||||
guaranteed by the FHLMC: | |||||||||||||||||||||
After 1 to 5 years | 82 | - | - | 1 | 81 | 3.01 | |||||||||||||||
Other mortgage pass-through | |||||||||||||||||||||
trust certificates: | |||||||||||||||||||||
Over 5 to 10 years | 127 | - | 1 | - | 128 | 7.27 | |||||||||||||||
After 10 years | 55,048 | 14,310 | - | - | 40,738 | 2.24 | |||||||||||||||
55,175 | 14,310 | 1 | - | 40,866 | 2.24 | ||||||||||||||||
Total mortgage-backed | |||||||||||||||||||||
securities | 1,706,450 | 14,310 | 22,124 | 44,339 | 1,669,925 | 2.69 | |||||||||||||||
Equity securities (without | |||||||||||||||||||||
contractual maturity)(1) | 35 | - | - | 2 | 33 | - | |||||||||||||||
Total investment securities | |||||||||||||||||||||
available for sale | $ | 2,049,262 | $ | 14,310 | $ | 22,125 | $ | 78,795 | $ | 1,978,282 | 2.57 | ||||||||||
-1 | Represents common shares of another financial institution in Puerto Rico. | ||||||||||||||||||||
Maturities of mortgage-backed securities are based on contractual terms assuming no prepayments. Expected maturities of investments might differ from contractual maturities because they may be subject to prepayments and/or call options. The weighted average yield on investment securities available for sale is based on amortized cost and, therefore, does not give effect to changes in fair value. The net unrealized gain or loss on securities available for sale and the noncredit loss component of OTTI are presented as part of OCI. | |||||||||||||||||||||
The aggregate amortized cost and approximate market value of investment securities available for sale as of December 31, 2014 by contractual maturity, are shown below: | |||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Within 1 year | $ | 7,498 | $ | 7,499 | |||||||||||||||||
After 1 to 5 years | 304,915 | 288,501 | |||||||||||||||||||
After 5 to 10 years | 105,923 | 105,111 | |||||||||||||||||||
After 10 years | 1,557,925 | 1,564,555 | |||||||||||||||||||
Total investment securities available for sale | $ | 1,976,261 | $ | 1,965,666 | |||||||||||||||||
The following tables show the Corporation's available-for-sale investments' fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31, 2014 and 2013. The tables also include debt securities for which an OTTI was recognized and only the amount related to a credit loss was recognized in earnings. Unrealized losses for which OTTI had been recognized have been reduced by any subsequent recoveries in fair value. | |||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||||||
Debt securities: | |||||||||||||||||||||
Puerto Rico government | |||||||||||||||||||||
obligations | $ | - | $ | - | $ | 42,335 | $ | 17,990 | $ | 42,335 | $ | 17,990 | |||||||||
U.S. government agencies | |||||||||||||||||||||
obligations | 46,436 | 74 | 257,996 | 6,222 | 304,432 | 6,296 | |||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
FNMA | 2,038 | 5 | 541,642 | 4,854 | 543,680 | 4,859 | |||||||||||||||
FHLMC | - | - | 135,277 | 1,260 | 135,277 | 1,260 | |||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||
Other mortgage pass-through trust | |||||||||||||||||||||
certificates | - | - | 33,536 | 12,141 | 33,536 | 12,141 | |||||||||||||||
$ | 48,474 | $ | 79 | $ | 1,010,786 | $ | 42,467 | $ | 1,059,260 | $ | 42,546 | ||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||||||
Debt securities: | |||||||||||||||||||||
Puerto Rico government | |||||||||||||||||||||
obligations | $ | 23,156 | $ | 5,977 | $ | 28,174 | $ | 13,701 | $ | 51,330 | $ | 19,678 | |||||||||
U.S. government agencies | |||||||||||||||||||||
obligations | 175,369 | 8,913 | 74,126 | 5,863 | 249,495 | 14,776 | |||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
FNMA | 748,215 | 33,626 | - | - | 748,215 | 33,626 | |||||||||||||||
FHLMC | 286,208 | 10,712 | - | - | 286,208 | 10,712 | |||||||||||||||
Collateralized mortgage | |||||||||||||||||||||
obligations issued or | |||||||||||||||||||||
guaranteed by FHLMC | - | - | 81 | 1 | 81 | 1 | |||||||||||||||
Other mortgage pass-through trust | |||||||||||||||||||||
certificates | - | - | 40,738 | 14,310 | 40,738 | 14,310 | |||||||||||||||
Equity securities | 33 | 2 | - | - | 33 | 2 | |||||||||||||||
$ | 1,232,981 | $ | 59,230 | $ | 143,119 | $ | 33,875 | $ | 1,376,100 | $ | 93,105 | ||||||||||
Assessment for OTTI | |||||||||||||||||||||
Debt securities issued by U.S. government agencies, government-sponsored entities, and the U.S. Department of the Treasury (the “U.S. Treasury”) accounted for approximately 96% of the total available-for-sale portfolio as of December 31, 2014 and no credit losses are expected, given the explicit and implicit guarantees provided by the U.S. federal government. The Corporation's OTTI assessment was concentrated mainly on private label mortgage-backed securities (“MBS”) with an amortized cost of $45.7 million for which credit losses are evaluated on a quarterly basis. The Corporation considered the following factors in determining whether a credit loss exists and the period over which the debt security is expected to recover: | |||||||||||||||||||||
The length of time and the extent to which the fair value has been less than the amortized cost basis; | |||||||||||||||||||||
Changes in the near term prospects of the underlying collateral of a security such as changes in default rates, loss severity given default, and significant changes in prepayment assumptions; | |||||||||||||||||||||
The level of cash flows generated from the underlying collateral supporting the principal and interest payments on the debt securities; and | |||||||||||||||||||||
Any adverse change to the credit conditions and liquidity of the issuer, taking into consideration the latest information available about the overall financial condition of the issuer, credit ratings, recent legislation and government actions affecting the issuer's industry, and actions taken by the issuer to deal with the present economic climate. | |||||||||||||||||||||
The Corporation recorded OTTI losses on available-for-sale debt securities as follows: | |||||||||||||||||||||
Private label MBS | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Total other-than-temporary impairment losses | $ | - | $ | - | |||||||||||||||||
Portion of other-than-temporary impairment losses previously recognized in OCI | -388 | -117 | |||||||||||||||||||
Net impairment losses recognized in earnings | $ | -388 | $ | -117 | |||||||||||||||||
The following table summarizes the roll-forward of credit losses on debt securities held by the Corporation for which a portion of an OTTI is recognized in OCI: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Credit losses at the beginning of the year | $ | 5,389 | $ | 5,272 | |||||||||||||||||
Additions: | |||||||||||||||||||||
Credit losses on debt securities for which an OTTI was | |||||||||||||||||||||
previously recognized | 388 | 117 | |||||||||||||||||||
Ending balance of credit losses on debt securities held | |||||||||||||||||||||
for which a portion of an OTTI was recognized in OCI | $ | 5,777 | $ | 5,389 | |||||||||||||||||
During 2014 and 2013, the $388 thousand and $117 thousand credit-related impairment loss, respectively, is related to private label MBS, which are collateralized by fixed-rate mortgages on single-family residential properties in the United States. The interest rate on these private-label MBS is variable, tied to 3-month LIBOR and limited to the weighted-average coupon of the underlying collateral. The underlying mortgages are fixed-rate, single-family loans with original high FICO scores (over 700) and moderate original loan-to-value ratios (under 80%), as well as moderate delinquency levels. | |||||||||||||||||||||
Based on the expected cash flows derived from the model, and since the Corporation does not have the intention to sell the securities and has sufficient capital and liquidity to hold these securities until a recovery of the fair value occurs, only the credit loss component was reflected in earnings. Significant assumptions in the valuation of the private label MBS were as follows: | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Average | Range | Average | Range | ||||||||||||||||||
Discount rate | 14.50% | 14.50% | 14.50% | 14.50% | |||||||||||||||||
Prepayment rate | 32% | 19.89% - 100.00% | 29% | 15.86% - 100.00% | |||||||||||||||||
Projected Cumulative Loss Rate | 7.90% | 0.64% - 80.00% | 6.80% | 0.58% - 38.16% | |||||||||||||||||
No OTTI losses on equity securities held in the available-for-sale investment portfolio were recognized in 2014. The Corporation recorded OTTI losses of $42 thousand on equity securities held in the available-for-sale investment portfolio for the year ended December 31, 2013. | |||||||||||||||||||||
Total proceeds from the sale of securities available for sale during 2014 and 2012 amounted to approximately $4.9 million, and $1.9 million, respectively. No sales of securities available for sale were completed in 2013. For the year ended December 31, 2014, a $0.3 million gain was recorded on the sale of a Puerto Rico government agency bond and a $29 thousand loss was recorded on the sale of equity securities. No gains or losses were realized in 2013 and 2012. | |||||||||||||||||||||
The following table states the names of issuers, and the aggregate amortized cost and market value of the securities of such issuers, when the aggregate amortized cost of such securities exceeds 10% of stockholders' equity. This information excludes securities of the U.S. and Puerto Rico government. Investments in obligations issued by a state of the U.S. and its political subdivisions and agencies that are payable and secured by the same source of revenue or taxing authority, other than the U.S. government, are considered securities of a single issuer and include debt and mortgage-backed securities. | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Amortized | Amortized | ||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
FHLMC | $ | 340,227 | $ | 340,723 | $ | 332,848 | $ | 322,268 | |||||||||||||
GNMA | 355,989 | 377,448 | 426,475 | 445,008 | |||||||||||||||||
FNMA | 922,883 | 926,189 | 891,952 | 861,783 | |||||||||||||||||
FHLB | 232,733 | 227,003 | 264,271 | 249,495 | |||||||||||||||||
As of December 31, 2014, the Corporation held approximately $61.2 million of Puerto Rico government and agencies bond obligations, mainly bonds of the Government Development Bank (“GDB”) and the Puerto Rico Building Authority, as part of its available-for-sale investment securities portfolio, which were reflected at their aggregate fair value of $43.2 million. During 2014, the fair value of these obligations increased by $1.7 million. In February 2014, Standard & Poor's (“S&P”), Moody's Investor Service (“Moodys”) and Fitch Ratings (“Fitch”) downgraded the Commonwealth of Puerto Rico general obligation bonds and other obligations of Puerto Rico instrumentalities to a non-investment grade category. In July 2014, the Puerto Rico debt was downgraded further into speculative grade by these credit agencies after the enactment of The Puerto Rico Public Corporations Debt Enforcement and Recovery Act (the “Recovery Act”) that provides a legislative framework for certain public corporations that are experiencing severe financial stress to address their financial obstacles through an orderly statutory process that allows them to handle their debts. In February 2015, a federal judge ruled that the Recovery Act is pre-empted by the Federal Bankruptcy Code and is therefore void. After this decision, S&P downgraded Puerto Rico's general obligation debt deeper into non-investment grade category. | |||||||||||||||||||||
The issuers of Puerto Rico government and agencies bonds held by the Corporation have not defaulted, and the contractual payments on these securities have been made as scheduled. The Corporation has the ability and intent to hold these securities until a recovery of the fair value occurs, and it is not more likely than not that the Corporation will be required to sell the securities prior to such recovery. It is uncertain how the financial markets may react to any potential further rating downgrade of Puerto Rico's debt. However, further deterioration in the fiscal situation could adversely affect the value of Puerto Rico's government obligations. The Corporation will continue to closely monitor Puerto Rico's political and economic status and evaluate the portfolio for any declines in value that could be considered other-than temporary. | |||||||||||||||||||||
Investments Held to Maturity | |||||||||||||||||||||
From time to time, the Corporation has securities held to maturity with an original maturity of three months or less that are considered cash and cash equivalents and classified as money market investments in the consolidated statements of financial condition. As of December 31, 2014 and 2013, the Corporation had no outstanding securities held to maturity that were classified as cash and cash equivalents. |
OTHER_EQUITY_SECURITIES
OTHER EQUITY SECURITIES | 12 Months Ended |
Dec. 31, 2014 | |
OTHER EQUITY SECURITIES [Text Block] | NOTE 5 – OTHER EQUITY SECURITIES |
Institutions that are members of the FHLB system are required to maintain a minimum investment in FHLB stock. Such minimum is calculated as a percentage of aggregate outstanding mortgages, and an additional investment is required that is calculated as a percentage of total FHLB advances, letters of credit, and the collateralized portion of interest-rate swaps outstanding. The stock is capital stock issued at $100 par value. Both stock and cash dividends may be received on FHLB stock. | |
As of December 31, 2014 and 2013, the Corporation had investments in FHLB stock with a book value of $25.5 million and $28.4 million, respectively. The net realizable value is a reasonable proxy for the fair value of these instruments. Dividend income from FHLB stock for 2014, 2013, and 2012 amounted to $1.2 million, $1.4 million, and $1.4 million, respectively. | |
The shares of FHLB stock owned by the Corporation were issued by the FHLB of New York. The FHLB of New York is part of the Federal Home Loan Bank System, a national wholesale banking network of 12 regional, stockholder-owned congressionally chartered banks. The Federal Home Loan Banks are all privately capitalized and operated by their member stockholders. The system is supervised by the Federal Housing Finance Agency, which ensures that the Federal Home Loan Banks operate in a financially safe and sound manner, remain adequately capitalized and able to raise funds in the capital markets, and carry out their housing finance mission. | |
The Corporation has other equity securities that do not have a readily available fair value. The carrying value of such securities as of December 31, 2014 and 2013 was $0.3 million. | |
INTEREST_AND_DIVIDEND_ON_INVES
INTEREST AND DIVIDEND ON INVESTMENTS | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Interest and Dividend on Investments [Abstract] | ||||||||||
Interest and Dividend on Investments [Text Block] | NOTE 6 – INTEREST AND DIVIDEND ON INVESTMENTS AND MONEY MARKET INSTRUMENTS | |||||||||
The following provides information about interest on investments and FHLB dividend income: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Mortgage-backed securities: | ||||||||||
Taxable | $ | 16,303 | $ | 19,566 | $ | 23,989 | ||||
Exempt | 28,606 | 25,955 | 11,543 | |||||||
44,909 | 45,521 | 35,532 | ||||||||
PR government obligations, U.S. Treasury securities, and U.S. | ||||||||||
government agencies: | ||||||||||
Taxable | 1,357 | 1,218 | 1,468 | |||||||
Exempt | 5,446 | 5,429 | 6,785 | |||||||
6,803 | 6,647 | 8,253 | ||||||||
Equity securities: | ||||||||||
Taxable | - | - | 6 | |||||||
Other investment securities (including FHLB dividends) | ||||||||||
Taxable | 1,169 | 1,359 | 1,503 | |||||||
Total interest income on investment securities | 52,881 | 53,527 | 45,294 | |||||||
Interest on money market instruments: | ||||||||||
Taxable | 1,734 | 1,231 | 1,137 | |||||||
Exempt | 158 | 696 | 690 | |||||||
Total interest income on money market instruments | 1,892 | 1,927 | 1,827 | |||||||
Total interest and dividend income on investments and money | ||||||||||
market instruments | $ | 54,773 | $ | 55,454 | $ | 47,121 | ||||
The following table summarizes the components of interest and dividend income on investments: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Interest income on investment securities and money | ||||||||||
market investments | $ | 53,604 | $ | 54,095 | $ | 45,694 | ||||
Dividends on FHLB stock | 1,169 | 1,359 | 1,427 | |||||||
Total interest income and dividends on investments | $ | 54,773 | $ | 55,454 | $ | 47,121 |
LOANS_PORTFOLIO
LOANS PORTFOLIO | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
LOAN PORTFOLIO [Text Block] | NOTE 7 – LOANS HELD FOR INVESTMENT | ||||||||||||||||||||||||||||||||
The following provides information about the loan portfolio held for investment: | |||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Residential mortgage loans, mainly secured by first mortgages (1)(2) | $ | 3,011,187 | $ | 2,549,008 | |||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||||
Construction loans | 123,480 | 168,713 | |||||||||||||||||||||||||||||||
Commercial mortgage loans | 1,665,787 | 1,823,608 | |||||||||||||||||||||||||||||||
Commercial and Industrial loans (3) | 2,479,437 | 2,788,250 | |||||||||||||||||||||||||||||||
Loans to a local financial institution collateralized by | |||||||||||||||||||||||||||||||||
real estate mortgages (1) | - | 240,072 | |||||||||||||||||||||||||||||||
Commercial loans | 4,268,704 | 5,020,643 | |||||||||||||||||||||||||||||||
Finance leases | 232,126 | 245,323 | |||||||||||||||||||||||||||||||
Consumer loans | 1,750,419 | 1,821,196 | |||||||||||||||||||||||||||||||
Loans held for investment | 9,262,436 | 9,636,170 | |||||||||||||||||||||||||||||||
Allowance for loan and lease losses | -222,395 | -285,858 | |||||||||||||||||||||||||||||||
Loans held for investment, net | $ | 9,040,041 | $ | 9,350,312 | |||||||||||||||||||||||||||||
-1 | On May 30, 2014, FirstBank acquired from Doral Financial Corporation ("Doral") mortgage loans, mainly residential mortgage loans, having an unpaid principal balance of $241.7 million (estimated fair value at acquisition of $226.0 million) in full satisfaction of secured borrowings with a book value of $232.9 million owed by Doral to FirstBank. Refer to "Acquired Loans including PCI Loans" below for additional information. | ||||||||||||||||||||||||||||||||
-2 | On October 3, 2014, Firstbank purchased from Doral certain performing residential mortgage loans with approximately $192.6 million in outstanding unpaid principal balance. Refer to "Purchases and Sales of Loans" below for additional information. | ||||||||||||||||||||||||||||||||
-3 | As of December 31, 2014 and 2013, includes $1.1 billion and $1.2 billion, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. | ||||||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, the Corporation had net deferred origination costs on its loan portfolio amounting to $9.3 million and $7.6 million, respectively. The total loan portfolio is net of unearned income of $35.1 million and $40.4 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
As of December 31, 2014, the Corporation was servicing residential mortgage loans owned by others aggregating $2.3 billion (2013 — $2.1 billion), construction and commercial loans owned by others aggregating $2.7 million (2013 — $2.8 million), and commercial loan participations owned by others aggregating $351.4 million (2013 — $446.0 million). | |||||||||||||||||||||||||||||||||
Various loans, mainly secured by first mortgages, were assigned as collateral for CDs, individual retirement accounts, and advances from the FHLB. Total loans pledged as collateral amounted to $1.6 billion as of December 31, 2014 (2013 — $1.7 billion). | |||||||||||||||||||||||||||||||||
Loans held for investment on which accrual of interest income had been discontinued were as follows: | |||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Non-performing loans: | |||||||||||||||||||||||||||||||||
Residential mortgage | $ | 180,707 | $ | 161,441 | |||||||||||||||||||||||||||||
Commercial mortgage | 148,473 | 120,107 | |||||||||||||||||||||||||||||||
Commercial and Industrial | 122,547 | 114,833 | |||||||||||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||
Land | 15,030 | 27,834 | |||||||||||||||||||||||||||||||
Construction-commercial | - | 3,924 | |||||||||||||||||||||||||||||||
Construction-residential | 14,324 | 27,108 | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | 22,276 | 21,316 | |||||||||||||||||||||||||||||||
Finance leases | 5,245 | 3,082 | |||||||||||||||||||||||||||||||
Other consumer loans | 15,294 | 15,904 | |||||||||||||||||||||||||||||||
Total non-performing loans held for investment (1) (2)(3) | $ | 523,896 | $ | 495,549 | |||||||||||||||||||||||||||||
________________ | |||||||||||||||||||||||||||||||||
-1 | As of December 31, 2014 and 2013, excludes $54.6 million and $54.8 million, respectively, of non-performing loans | ||||||||||||||||||||||||||||||||
held for sale. | |||||||||||||||||||||||||||||||||
-2 | Amount excludes PCI loans with a carrying value of approximately $102.6 million and $4.8 million as of December 31, | ||||||||||||||||||||||||||||||||
2014 and 2013, respectively, primarily mortgage loans acquired from Doral in the second quarter of 2014, as further | |||||||||||||||||||||||||||||||||
discussed below. These loans are not considered non-performing due to the application of the accretion method, | |||||||||||||||||||||||||||||||||
under which these loans will accrete interest income over the remaining life of the loans using an estimated cash | |||||||||||||||||||||||||||||||||
flow analysis. | |||||||||||||||||||||||||||||||||
-3 | Non-performing loans exclude $494.6 million and $425.4 million of TDR loans that are in compliance with the modified | ||||||||||||||||||||||||||||||||
terms and in accrual status as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
If these loans were accruing interest, the additional interest income realized would have been $48.9 million (2013— $40.3 million; 2012 — $75.1 million). | |||||||||||||||||||||||||||||||||
The Corporation’s aging of the loans held for investment portfolio is as follows: | |||||||||||||||||||||||||||||||||
As of December 31, 2014 | 30-59 Days Past Due | 60-89 Days Past Due | 90 days or more Past Due (1) | Total Past Due | Purchased Credit-Impaired Loans | Current | Total loans held for investment | 90 days past due and still accruing (2) | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||
FHA/VA and other government-guaranteed | |||||||||||||||||||||||||||||||||
loans (2) (3) (4) | $ | - | $ | 9,733 | $ | 81,055 | $ | 90,788 | $ | - | $ | 62,782 | $ | 153,570 | $ | 81,055 | |||||||||||||||||
Other residential mortgage loans (4) | - | 78,336 | 199,078 | 277,414 | 98,494 | 2,481,709 | 2,857,617 | 18,371 | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and Industrial loans | 22,217 | 7,445 | 143,928 | 173,590 | - | 2,305,847 | 2,479,437 | 21,381 | |||||||||||||||||||||||||
Commercial mortgage loans (4) | - | 15,482 | 171,281 | 186,763 | 3,393 | 1,475,631 | 1,665,787 | 22,808 | |||||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||
Land (4) | - | 210 | 15,264 | 15,474 | - | 40,447 | 55,921 | 234 | |||||||||||||||||||||||||
Construction-commercial | - | - | - | - | - | 24,562 | 24,562 | - | |||||||||||||||||||||||||
Construction-residential (4) | - | - | 14,324 | 14,324 | - | 28,673 | 42,997 | - | |||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | 77,385 | 19,665 | 22,276 | 119,326 | - | 941,456 | 1,060,782 | - | |||||||||||||||||||||||||
Finance leases | 8,751 | 2,734 | 5,245 | 16,730 | - | 215,396 | 232,126 | - | |||||||||||||||||||||||||
Other consumer loans | 9,801 | 6,054 | 18,671 | 34,526 | 717 | 654,394 | 689,637 | 3,377 | |||||||||||||||||||||||||
Total loans held for investment | $ | 118,154 | $ | 139,659 | $ | 671,122 | $ | 928,935 | $ | 102,604 | $ | 8,230,897 | $ | 9,262,436 | $ | 147,226 | |||||||||||||||||
-1 | Includes non-performing loans and accruing loans that are contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue | ||||||||||||||||||||||||||||||||
to accrue finance charges and fees until charged-off at 180 days. | |||||||||||||||||||||||||||||||||
-2 | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as past-due loans 90 days and still accruing as opposed | ||||||||||||||||||||||||||||||||
to non-performing loans since the principal repayment is insured. These balances include $40.4 million of residential mortgage loans insured by the FHA or guaranteed by the VA | |||||||||||||||||||||||||||||||||
that are over 18 months delinquent, and are no longer accruing interest as of December 31, 2014. | |||||||||||||||||||||||||||||||||
-3 | As of December 31, 2014, includes $9.3 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) | ||||||||||||||||||||||||||||||||
to repurchase the defaulted loans. | |||||||||||||||||||||||||||||||||
-4 | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies | ||||||||||||||||||||||||||||||||
(FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two | |||||||||||||||||||||||||||||||||
or more monthly payments. FHA/VA government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, land loans, and construction-residential loans past | |||||||||||||||||||||||||||||||||
due 30-59 days as of December 31, 2014 amounted to $14.0 million, $189.1 million, $20.8 million, $0.8 million, and $1.0 million, respectively. | |||||||||||||||||||||||||||||||||
As of December 31, 2013 | 30-59 Days Past Due | 60-89 Days Past Due | 90 days or more Past Due (1) | Total Past Due | Purchased Credit-Impaired Loans | Current | Total loans held for investment | 90 days past due and still accruing (2) | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||
FHA/VA and other government-guaranteed | |||||||||||||||||||||||||||||||||
loans (2) (3) (4) | $ | - | $ | 12,180 | $ | 78,645 | $ | 90,825 | $ | - | $ | 104,401 | $ | 195,226 | $ | 78,645 | |||||||||||||||||
Other residential mortgage loans (4) | - | 88,898 | 172,286 | 261,184 | - | 2,092,598 | 2,353,782 | 10,845 | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and Industrial loans | 21,029 | 5,454 | 134,233 | 160,716 | - | 2,867,606 | 3,028,322 | 19,400 | |||||||||||||||||||||||||
Commercial mortgage loans (4) | - | 5,428 | 126,674 | 132,102 | - | 1,691,506 | 1,823,608 | 6,567 | |||||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||
Land (4) | - | 358 | 27,871 | 28,229 | - | 52,145 | 80,374 | 37 | |||||||||||||||||||||||||
Construction-commercial | - | - | 3,924 | 3,924 | - | 12,907 | 16,831 | - | |||||||||||||||||||||||||
Construction-residential (4) | - | - | 27,108 | 27,108 | - | 44,400 | 71,508 | - | |||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | 79,279 | 17,944 | 21,316 | 118,539 | - | 993,781 | 1,112,320 | - | |||||||||||||||||||||||||
Finance leases | 10,275 | 3,536 | 3,082 | 16,893 | - | 228,430 | 245,323 | - | |||||||||||||||||||||||||
Other consumer loans | 11,710 | 8,691 | 20,492 | 40,893 | 4,791 | 663,192 | 708,876 | 4,588 | |||||||||||||||||||||||||
Total loans held for investment | $ | 122,293 | $ | 142,489 | $ | 615,631 | $ | 880,413 | $ | 4,791 | $ | 8,750,966 | $ | 9,636,170 | $ | 120,082 | |||||||||||||||||
-1 | Includes non-performing loans and accruing loans that are contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue | ||||||||||||||||||||||||||||||||
to accrue finance charges and fees until charged-off at 180 days. | |||||||||||||||||||||||||||||||||
-2 | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as past-due loans 90 days and still accruing as opposed | ||||||||||||||||||||||||||||||||
to non-performing loans since the principal repayment is insured. These balances include $37.0 million of residential mortgage loans insured by the FHA or guaranteed by the VA | |||||||||||||||||||||||||||||||||
that are over 18 months delinquent, and are no longer accruing interest as of December 31, 2013. | |||||||||||||||||||||||||||||||||
-3 | As of December 31, 2013, includes $11.5 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) | ||||||||||||||||||||||||||||||||
to repurchase the defaulted loans. | |||||||||||||||||||||||||||||||||
-4 | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies | ||||||||||||||||||||||||||||||||
(FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two | |||||||||||||||||||||||||||||||||
or more monthly payments. FHA/VA government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, land loans, and construction-residential loans | |||||||||||||||||||||||||||||||||
past-due 30-59 days amounted to $23.9 million, $166.7 million, $18.4 million, $0.9 million, and $2.5 million, respectively. | |||||||||||||||||||||||||||||||||
The Corporation’s credit quality indicators by loan type as of December 31, 2014 and 2013 are summarized below: | |||||||||||||||||||||||||||||||||
Commercial Credit Exposure-Credit Risk Profile based on Creditworthiness Category: | |||||||||||||||||||||||||||||||||
Substandard | Doubtful | Loss | Total Adversely Classified (1) | Total Portfolio | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Commercial Mortgage | $ | 273,027 | $ | 897 | $ | - | $ | 273,924 | $ | 1,665,787 | |||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||
Land | 16,915 | - | - | 16,915 | 55,921 | ||||||||||||||||||||||||||||
Construction-commercial | 11,790 | - | - | 11,790 | 24,562 | ||||||||||||||||||||||||||||
Construction-residential | 13,548 | 776 | - | 14,324 | 42,997 | ||||||||||||||||||||||||||||
Commercial and Industrial | 234,926 | 4,884 | 801 | 240,611 | 2,479,437 | ||||||||||||||||||||||||||||
Commercial Credit Exposure-Credit Risk Profile based on Creditworthiness Category: | |||||||||||||||||||||||||||||||||
Substandard | Doubtful | Loss | Total Adversely Classified (1) | Total Portfolio | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Commercial Mortgage | $ | 317,365 | $ | 9,160 | $ | 234 | $ | 326,759 | $ | 1,823,608 | |||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||
Land | 31,777 | 3,308 | 52 | 35,137 | 80,373 | ||||||||||||||||||||||||||||
Construction-commercial | 16,022 | - | - | 16,022 | 16,831 | ||||||||||||||||||||||||||||
Construction-residential | 27,829 | 2,209 | 241 | 30,279 | 71,509 | ||||||||||||||||||||||||||||
Commercial and Industrial | 205,807 | 7,998 | 973 | 214,778 | 3,028,322 | ||||||||||||||||||||||||||||
-1 | Excludes $54.6 million ($7.8 million land, $39.1 million construction-commercial, $0.9 million construction-residential, | ||||||||||||||||||||||||||||||||
and $6.8 million commercial mortgage) and $54.8 million ($7.8 million land, $39.1 million construction-commercial, $0.9 | |||||||||||||||||||||||||||||||||
construction-residential and $7.0 million commercial mortgage) as of December 31, 2014 and 2013, respectively, of | |||||||||||||||||||||||||||||||||
non-performing loans held for sale. | |||||||||||||||||||||||||||||||||
The Corporation considers a loan as adversely classified if its risk rating is Substandard, Doubtful, or Loss. These categories are defined as follows: | |||||||||||||||||||||||||||||||||
Substandard- A Substandard asset is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||||||||||||
Doubtful- Doubtful classifications have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. A Doubtful classification may be appropriate in cases where significant risk exposures are perceived, but Loss cannot be determined because of specific reasonable pending factors, which may strengthen the credit in the near term. | |||||||||||||||||||||||||||||||||
Loss- Assets classified Loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. There is little or no prospect for near term improvement and no realistic strengthening action of significance pending. | |||||||||||||||||||||||||||||||||
31-Dec-14 | Consumer Credit Exposure-Credit Risk Profile Based on Payment Activity | ||||||||||||||||||||||||||||||||
Residential Real-Estate | Consumer | ||||||||||||||||||||||||||||||||
FHA/VA/ Guaranteed (1) | Other residential loans | Auto | Finance Leases | Other Consumer | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Performing | $ | 153,570 | $ | 2,578,416 | $ | 1,038,506 | $ | 226,881 | $ | 673,626 | |||||||||||||||||||||||
Purchased Credit-Impaired (2) | - | 98,494 | - | - | 717 | ||||||||||||||||||||||||||||
Non-performing | - | 180,707 | 22,276 | 5,245 | 15,294 | ||||||||||||||||||||||||||||
Total | $ | 153,570 | $ | 2,857,617 | $ | 1,060,782 | $ | 232,126 | $ | 689,637 | |||||||||||||||||||||||
-1 | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA | ||||||||||||||||||||||||||||||||
as past due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. | |||||||||||||||||||||||||||||||||
These balances include $40.4 million of residential mortgage loans insured by the FHA or guaranteed by the VA that are | |||||||||||||||||||||||||||||||||
over 18 months delinquent, and are no longer accruing interest as of December 31, 2014. | |||||||||||||||||||||||||||||||||
-2 | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loans | ||||||||||||||||||||||||||||||||
will accrete interest income over the remaining life of the loans using estimated cash flow analysis. | |||||||||||||||||||||||||||||||||
31-Dec-13 | Consumer Credit Exposure-Credit Risk Profile Based on Payment Activity | ||||||||||||||||||||||||||||||||
Residential Real-Estate | Consumer | ||||||||||||||||||||||||||||||||
FHA/VA/ Guaranteed (1) | Other residential loans | Auto | Finance Leases | Other Consumer | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Performing | $ | 195,226 | $ | 2,192,341 | $ | 1,091,004 | $ | 242,241 | $ | 688,181 | |||||||||||||||||||||||
Purchased Credit-Impaired (2) | - | - | - | - | 4,791 | ||||||||||||||||||||||||||||
Non-performing | - | 161,441 | 21,316 | 3,082 | 15,904 | ||||||||||||||||||||||||||||
Total | $ | 195,226 | $ | 2,353,782 | $ | 1,112,320 | $ | 245,323 | $ | 708,876 | |||||||||||||||||||||||
-1 | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA | ||||||||||||||||||||||||||||||||
as past due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. | |||||||||||||||||||||||||||||||||
These balances include $37.0 million of residential mortgage loans insured by the FHA or guaranteed by the VA that are | |||||||||||||||||||||||||||||||||
over 18 months delinquent, and are no longer accruing interest as of December 31, 2013. | |||||||||||||||||||||||||||||||||
-2 | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these | ||||||||||||||||||||||||||||||||
loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis. | |||||||||||||||||||||||||||||||||
The following tables present information about impaired loans excluding PCI loans, which are reported separately, as discussed below: | |||||||||||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Specific Allowance | Average Recorded Investment | Interest Income Recognized Accrual Basis | Interest Income Recognized Cash Basis | ||||||||||||||||||||||||||||
As of December 31, 2014 | (In thousands) | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Other residential mortgage loans | 74,177 | 80,522 | - | 75,711 | 1,118 | 461 | |||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial mortgage loans | 109,271 | 132,170 | - | 113,674 | 846 | 2,670 | |||||||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||||||||
loans | 41,131 | 47,647 | - | 42,011 | - | 751 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 2,994 | 6,357 | - | 3,030 | 38 | 1 | |||||||||||||||||||||||||||
Construction-commercial | - | - | - | - | - | - | |||||||||||||||||||||||||||
Construction-residential | 7,461 | 10,100 | - | 8,123 | 167 | 8 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | - | - | - | - | - | - | |||||||||||||||||||||||||||
Finance leases | - | - | - | - | - | - | |||||||||||||||||||||||||||
Other consumer loans | 3,778 | 5,072 | - | 3,924 | 75 | 79 | |||||||||||||||||||||||||||
$ | 238,812 | $ | 281,868 | $ | - | $ | 246,473 | $ | 2,244 | $ | 3,970 | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Other residential mortgage loans | 350,067 | 396,203 | 10,854 | 357,129 | 15,852 | 1,853 | |||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial mortgage loans | 101,467 | 116,329 | 14,289 | 104,191 | 1,891 | 638 | |||||||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||||||||
loans | 195,240 | 226,431 | 21,314 | 198,930 | 5,097 | 564 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 9,120 | 12,821 | 794 | 10,734 | 64 | 25 | |||||||||||||||||||||||||||
Construction-commercial | 11,790 | 11,790 | 790 | 11,867 | - | 515 | |||||||||||||||||||||||||||
Construction-residential | 8,102 | 8,834 | 993 | 8,130 | - | - | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | 16,991 | 16,991 | 2,787 | 18,504 | 1,173 | - | |||||||||||||||||||||||||||
Finance leases | 2,181 | 2,181 | 253 | 2,367 | 198 | - | |||||||||||||||||||||||||||
Other consumer loans | 11,637 | 12,136 | 3,131 | 12,291 | 1,634 | 40 | |||||||||||||||||||||||||||
$ | 706,595 | $ | 803,716 | $ | 55,205 | $ | 724,143 | $ | 25,909 | $ | 3,635 | ||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Other residential mortgage loans | 424,244 | 476,725 | 10,854 | 432,840 | 16,970 | 2,314 | |||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial mortgage loans | 210,738 | 248,499 | 14,289 | 217,865 | 2,737 | 3,308 | |||||||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||||||||
loans | 236,371 | 274,078 | 21,314 | 240,941 | 5,097 | 1,315 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 12,114 | 19,178 | 794 | 13,764 | 102 | 26 | |||||||||||||||||||||||||||
Construction-commercial | 11,790 | 11,790 | 790 | 11,867 | - | 515 | |||||||||||||||||||||||||||
Construction-residential | 15,563 | 18,934 | 993 | 16,253 | 167 | 8 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | 16,991 | 16,991 | 2,787 | 18,504 | 1,173 | - | |||||||||||||||||||||||||||
Finance leases | 2,181 | 2,181 | 253 | 2,367 | 198 | - | |||||||||||||||||||||||||||
Other consumer loans | 15,415 | 17,208 | 3,131 | 16,215 | 1,709 | 119 | |||||||||||||||||||||||||||
$ | 945,407 | $ | 1,085,584 | $ | 55,205 | $ | 970,616 | $ | 28,153 | $ | 7,605 | ||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Specific Allowance | Average Recorded Investment | Interest Income Recognized Accrual Basis | Interest Income Recognized Cash Basis | ||||||||||||||||||||||||||||
As of December 31, 2013 | (In thousands) | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Other residential mortgage loans | 220,428 | 237,709 | - | 222,617 | 9,513 | 1,041 | |||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial mortgage loans | 69,484 | 73,723 | - | 71,367 | 1,494 | 148 | |||||||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||||||||
loans | 32,418 | 56,831 | - | 37,946 | 31 | 52 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 359 | 366 | - | 360 | 8 | 2 | |||||||||||||||||||||||||||
Construction-commercial | - | - | - | - | - | - | |||||||||||||||||||||||||||
Construction-residential | 14,761 | 19,313 | - | 17,334 | 52 | - | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | - | - | - | - | - | - | |||||||||||||||||||||||||||
Finance leases | - | - | - | - | - | - | |||||||||||||||||||||||||||
Other consumer loans | 4,035 | 4,450 | - | 3,325 | 139 | 30 | |||||||||||||||||||||||||||
$ | 341,485 | $ | 392,392 | $ | - | $ | 352,949 | $ | 11,237 | $ | 1,273 | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Other residential mortgage loans | 190,566 | 212,028 | 18,125 | 193,372 | 5,623 | 647 | |||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial mortgage loans | 149,888 | 163,656 | 32,189 | 153,992 | 2,114 | 1,293 | |||||||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||||||||
loans | 154,686 | 170,191 | 26,686 | 162,786 | 4,005 | 139 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 27,711 | 40,348 | 10,455 | 28,906 | 350 | 44 | |||||||||||||||||||||||||||
Construction-commercial | 16,022 | 16,238 | 8,873 | 16,157 | 527 | - | |||||||||||||||||||||||||||
Construction-residential | 13,864 | 13,973 | 2,816 | 13,640 | - | 50 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | 14,121 | 14,122 | 1,829 | 12,937 | 1,017 | - | |||||||||||||||||||||||||||
Finance leases | 2,359 | 2,359 | 73 | 2,219 | 281 | - | |||||||||||||||||||||||||||
Other consumer loans | 8,410 | 8,919 | 1,555 | 8,919 | 1,239 | 1 | |||||||||||||||||||||||||||
$ | 577,627 | $ | 641,834 | $ | 102,601 | $ | 592,928 | $ | 15,156 | $ | 2,174 | ||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Other residential mortgage loans | 410,994 | 449,737 | 18,125 | 415,989 | 15,136 | 1,688 | |||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial mortgage loans | 219,372 | 237,379 | 32,189 | 225,359 | 3,608 | 1,441 | |||||||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||||||||
loans | 187,104 | 227,022 | 26,686 | 200,732 | 4,036 | 191 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 28,070 | 40,714 | 10,455 | 29,266 | 358 | 46 | |||||||||||||||||||||||||||
Construction-commercial | 16,022 | 16,238 | 8,873 | 16,157 | 527 | - | |||||||||||||||||||||||||||
Construction-residential | 28,625 | 33,286 | 2,816 | 30,974 | 52 | 50 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | 14,121 | 14,122 | 1,829 | 12,937 | 1,017 | - | |||||||||||||||||||||||||||
Finance leases | 2,359 | 2,359 | 73 | 2,219 | 281 | - | |||||||||||||||||||||||||||
Other consumer loans | 12,445 | 13,369 | 1,555 | 12,244 | 1,378 | 31 | |||||||||||||||||||||||||||
$ | 919,112 | $ | 1,034,226 | $ | 102,601 | $ | 945,877 | $ | 26,393 | $ | 3,447 | ||||||||||||||||||||||
The following tables show the activity for impaired loans and the related specific reserve during 2014 and 2013: | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Impaired Loans: | (In thousands) | ||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 919,112 | $ | 1,465,294 | |||||||||||||||||||||||||||||
Loans determined impaired during the year | 306,390 | 280,860 | |||||||||||||||||||||||||||||||
Charge-offs | -106,154 | -307,428 | |||||||||||||||||||||||||||||||
Loans sold, net of charge-offs | -4,500 | -201,409 | |||||||||||||||||||||||||||||||
Loans transferred to held for sale | - | -145,415 | |||||||||||||||||||||||||||||||
Increases to impaired loans - additional disbursements | 5,028 | 6,624 | |||||||||||||||||||||||||||||||
Foreclosures | -40,582 | -45,094 | |||||||||||||||||||||||||||||||
Loans no longer considered impaired | -22,333 | -49,299 | |||||||||||||||||||||||||||||||
Paid in full or partial payments | -111,554 | -85,021 | |||||||||||||||||||||||||||||||
Balance at end of year | $ | 945,407 | $ | 919,112 | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Specific Reserve: | (In thousands) | ||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 102,601 | $ | 221,749 | |||||||||||||||||||||||||||||
Provision for loan losses | 58,758 | 188,280 | |||||||||||||||||||||||||||||||
Charge-offs | -106,154 | -307,428 | |||||||||||||||||||||||||||||||
Balance at end of year | $ | 55,205 | $ | 102,601 | |||||||||||||||||||||||||||||
Acquired loans including PCI Loans | |||||||||||||||||||||||||||||||||
On May 30, 2014, FirstBank purchased from Doral all of its rights, title and interests in first and second mortgage loans having an unpaid principal balance of approximately $241.7 million for an aggregate purchase price of approximately $232.9 million. Doral had pledged the mortgage loans to FirstBank as collateral for secured borrowings pursuant to a series of credit agreements between the parties entered into in 2006. As consideration for the purchase of the mortgage loans, FirstBank credited approximately $232.9 million as full satisfaction of the outstanding balance of the Doral secured borrowings plus interest owed to FirstBank. The estimated fair value of the mortgage loans at acquisition was $226.0 million. This transaction resulted in a loss of $6.9 million derived from the difference between the fair value of the mortgage loans acquired, $226.0 million, and the book value of the secured borrowings of $232.9 million. Approximately $5.5 million of the loss was part of the general allowance for loan losses established for commercial loans in prior periods; thus, an additional charge of $1.4 million to the provision was recorded in the second quarter of 2014. In addition, the Corporation recorded $0.6 million of professional service fees in the second quarter of 2014 specifically related to this transaction. | |||||||||||||||||||||||||||||||||
Acquired loans are recorded at fair value at the date of acquisition. The Corporation concluded that loans with a contractual unpaid principal balance of $119.2 million and an estimated fair value at acquisition of $102.8 million were acquired with evidence of credit quality deterioration and, as purchased credit impaired loans, have been accounted for under ASC 310-30, while loans with a contractual unpaid principal balance of $122.5 million and an estimated fair value at acquisition of $123.2 million are non-credit impaired purchased loans that have been accounted for under ASC 310-20. | |||||||||||||||||||||||||||||||||
Subsequent to the day-one fair value, acquired loans accounted for under ASC 310-20 are accounted for consistently with other originated loans, potentially becoming non-accrual or impaired, as well as being classified under the Corporation's standard practices and procedures. In addition, these loans are considered in the determination of the allowance for loan losses. | |||||||||||||||||||||||||||||||||
Under ASC 310-30, the acquired PCI loans were aggregated into pools based on similar characteristics (i.e. delinquency status, loan terms). Each loan pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. The loans which are accounted for under ASC 310-30 by the Corporation are not considered non-performing and will continue to have an accretable yield as long as there is a reasonable expectation about the timing and amount of cash flows expected to be collected. The Corporation measures additional losses for this portfolio when it is probable the Corporation will be unable to collect all cash flows expected at acquisition plus additional cash flows expected to be collected arising from changes in estimates after acquisition. | |||||||||||||||||||||||||||||||||
On May 30, 2012, the Corporation reentered the credit card business with the acquisition of an approximate $406 million portfolio of FirstBank-branded credit card loans from FIA Card Services (“FIA”). These loans were recorded on the consolidated statement of financial condition at estimated fair value on the acquisition date of $368.9 million. The Corporation concluded that loans with a contractual outstanding unpaid principal and interest balance at acquisition of $34.6 million and an estimated fair value of $15.7 million were PCI loans. | |||||||||||||||||||||||||||||||||
The carrying amount of PCI loans follows: | |||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Residential mortgage loans | $ | 98,494 | $ | - | |||||||||||||||||||||||||||||
Commercial mortgage loans | 3,393 | - | |||||||||||||||||||||||||||||||
Credit Cards | 717 | 4,791 | |||||||||||||||||||||||||||||||
$ | 102,604 | $ | 4,791 | ||||||||||||||||||||||||||||||
The following tables present PCI loans by past due status as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||
As of December 31, 2014 | 30-59 Days | 60-89 Days | 90 days or more | Total Past Due | Total PCI loans | ||||||||||||||||||||||||||||
Current | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||
loans (1) | $ | - | $ | 12,571 | $ | 15,176 | $ | 27,747 | $ | 70,747 | $ | 98,494 | |||||||||||||||||||||
Commercial mortgage | |||||||||||||||||||||||||||||||||
loans (1) | - | 356 | 443 | 799 | 2,594 | 3,393 | |||||||||||||||||||||||||||
Credit Cards | 47 | 25 | 42 | 114 | 603 | 717 | |||||||||||||||||||||||||||
$ | 47 | $ | 12,952 | $ | 15,661 | $ | 28,660 | $ | 73,944 | $ | 102,604 | ||||||||||||||||||||||
_____________ | |||||||||||||||||||||||||||||||||
-1 | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage and commercial mortgage loans are considered past due when the borrower is in arrears two or more monthly payments. PCI residential mortgage loans and commercial mortgage loans past due 30-59 days as of December 31, 2014 amounted to $16.6 million and $0.8 million, respectively. | ||||||||||||||||||||||||||||||||
As of December 31, 2013 | 30-59 Days | 60-89 Days | 90 days or more | Total Past Due | Total PCI loans | ||||||||||||||||||||||||||||
Current | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Credit Cards | $ | 377 | $ | 354 | $ | 573 | $ | 1,304 | $ | 3,487 | $ | 4,791 | |||||||||||||||||||||
Initial Fair Value and Accretable Yield of PCI Loans | |||||||||||||||||||||||||||||||||
At acquisition, the Corporation estimated the cash flows the Corporation expected to collect on PCI loans. Under the accounting guidance for PCI loans, the difference between the contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. This difference is neither accreted into income nor recorded on the Corporation's consolidated statement of financial condition. The excess of cash flows expected to be collected over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loans, using the effective-yield method. | |||||||||||||||||||||||||||||||||
The following table presents acquired loans from Doral accounted for pursuant to ASC 310-30 as of the May 30, 2014 acquisition date: | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Contractually- required principal and interest | $ | 275,842 | |||||||||||||||||||||||||||||||
Less: Nonaccretable difference | -86,252 | ||||||||||||||||||||||||||||||||
Cash flows expected to be collected | 189,590 | ||||||||||||||||||||||||||||||||
Less: Accretable yield | -86,759 | ||||||||||||||||||||||||||||||||
Fair value of loans acquired in 2014 | $ | 102,831 | |||||||||||||||||||||||||||||||
The cash flows expected to be collected consider the estimated remaining life of the underlying loans and include the effects of estimated prepayments. | |||||||||||||||||||||||||||||||||
Changes in accretable yield of acquired loans | |||||||||||||||||||||||||||||||||
Subsequent to acquisition, the Corporation is required to periodically evaluate its estimate of cash flows expected to be collected. These evaluations, performed quarterly, require the continued use of key assumptions and estimates, similar to the initial estimate of fair value. Subsequent changes in the estimated cash flows expected to be collected may result in changes in the accretable yield and nonaccretable difference or reclassifications from nonaccretable yield to accretable. Increases in the cash flows expected to be collected will generally result in an increase in interest income over the remaining life of the loan or pool of loans. Decreases in expected cash flows due to further credit deterioration will generally result in an impairment charge recognized in the Corporation's provision for loan and lease losses, resulting in an increase to the allowance for loan losses. During 2014 and 2013, the Corporation did not record charges to the provision for loan losses related to PCI loans, most of which were acquired on May 30, 2014. | |||||||||||||||||||||||||||||||||
Changes in the accretable yield of PCI loans for the years ended December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | - | $ | 2,171 | |||||||||||||||||||||||||||||
Additions (accretable yield at acquisition | |||||||||||||||||||||||||||||||||
of loans from Doral) | 86,759 | - | |||||||||||||||||||||||||||||||
Accretion recognized in earnings | -4,299 | -819 | |||||||||||||||||||||||||||||||
Reclassification to non accretable | - | -1,352 | |||||||||||||||||||||||||||||||
Balance at end of period | $ | 82,460 | $ | - | |||||||||||||||||||||||||||||
Changes in the carrying amount of loans accounted for pursuant to ASC 310-30 follows: | |||||||||||||||||||||||||||||||||
Year ended | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Balance at beginning of period (1) | $ | 4,791 | |||||||||||||||||||||||||||||||
Additions (2) | 102,831 | ||||||||||||||||||||||||||||||||
Accretion | 4,299 | ||||||||||||||||||||||||||||||||
Collections | -9,317 | ||||||||||||||||||||||||||||||||
Ending balance | $ | 102,604 | |||||||||||||||||||||||||||||||
-1 | For the year ended December 31, 2014, the beginning balance relates to PCI loans acquired as part of the credit card portfolio purchased in the second quarter of 2012. | ||||||||||||||||||||||||||||||||
-2 | Represents the estimated fair value of the PCI loans acquired from Doral at the date of acquisition. | ||||||||||||||||||||||||||||||||
The outstanding principal balance of PCI loans, including amounts charged off by the Corporation, amounted to $135.5 million as of December 31, 2014 (December 31, 2013- $22.7 million). | |||||||||||||||||||||||||||||||||
Purchases and Sales of Loans | |||||||||||||||||||||||||||||||||
On October 3, 2014, the Corporation purchased from Doral all of its rights, title and interests in certain performing residential mortgage loans (the “Mortgage Loans”) with approximately $192.6 million in outstanding unpaid principal balance. | |||||||||||||||||||||||||||||||||
As consideration for the purchase of the Mortgage Loans, FirstBank paid approximately $192.7 million in cash (the “Purchase Price”), less a holdback of $1.3 million which was deposited into escrow to cover certain representations and warranties made by Doral Bank with respect to the Mortgage Loans. The Corporation incurred $0.7 million in professional service fees during the third quarter of 2014 specifically related to this transaction. The Mortgage Loans were acquired by FirstBank on a servicing-released basis. | |||||||||||||||||||||||||||||||||
In addition to loans acquired from Doral, during 2014, the Corporation purchased $146.5 million of residential mortgage loans consistent with a strategic program established by the Corporation in 2005 to purchase ongoing residential mortgage loan production from mortgage bankers in Puerto Rico. Generally, the loans purchased from mortgage bankers were conforming residential mortgage loans. Purchases of conforming residential mortgage loans provide the Corporation the flexibility to retain or sell the loans, including through securitization transactions depending upon the Corporation's interest rate risk management strategies. When the Corporation sells such loans, it generally keeps the servicing of the loans. | |||||||||||||||||||||||||||||||||
In the ordinary course of business, the Corporation sells residential mortgage loans (originated or purchased) to GNMA and GSEs. GNMA and GSEs, such as FNMA and FHLMC, generally securitize the transferred loans into mortgage-backed securities for sale into the secondary market. The Corporation sold approximately $138.5 million of performing residential mortgage loans to FNMA and FHLMC during 2014. Also, the Corporation securitized approximately $198.7 million of FHA/VA mortgage loans into GNMA mortgage-backed securities during 2014. The Corporation's continuing involvement in these loan sales consists primarily of servicing the loans. In addition, the Corporation agreed to repurchase loans when it breaches any of the representations and warranties included in the sale agreement. These representations and warranties are consistent with the GSEs' selling and servicing guidelines (i.e., ensuring that the mortgage was properly underwritten according to established guidelines). | |||||||||||||||||||||||||||||||||
For loans sold to GNMA, the Corporation holds an option to repurchase individual delinquent loans issued on or after January 1, 2003 when the borrower fails to make any payment for three consecutive months. This option gives the Corporation the ability, but not the obligation, to repurchase the delinquent loans at par without prior authorization from GNMA. | |||||||||||||||||||||||||||||||||
Under ASC Topic 860, Transfers and Servicing, once the Corporation has the unilateral ability to repurchase a delinquent loan, it is considered to have regained effective control over the loan and is required to recognize the loan and a corresponding repurchase liability on the balance sheet regardless of the Corporation's intent to repurchase the loan. | |||||||||||||||||||||||||||||||||
During 2014, 2013, and 2012, the Corporation repurchased pursuant to its repurchase option with GNMA $37.8 million, $28.3 million, and $53.9 million, respectively, of loans previously sold to GNMA. The principal balance of these loans is fully guaranteed and the risk of loss related to repurchases is generally limited to the difference between the delinquent interest payment advanced to GNMA computed at the loan's interest rate and the interest payments reimbursed by FHA, which are computed at a pre-determined debenture rate. Repurchases of GNMA loans allow the Corporation, among other things, to maintain acceptable delinquency rates on outstanding GNMA pools and remain as a seller and servicer in good standing with GNMA. The Corporation generally remediates any breach of representations and warranties related to the underwriting of such loans according to established GNMA guidelines without incurring losses. The Corporation does not maintain a liability for estimated losses as a result of breaches in representations and warranties. | |||||||||||||||||||||||||||||||||
Loan sales to FNMA and FHLMC are without recourse in relation to the future performance of the loans. The Corporation repurchased at par loans previously sold to FNMA and FHLMC in the amounts of $2.3 million, $6.1 million, and $3.0 million during 2014, 2013, and 2012, respectively. The Corporation's risk of loss with respect to these loans is also minimal as these repurchased loans are generally performing loans with documentation deficiencies. A $0.7 million loss was recorded in 2014 related to breaches in representations and warranties and a $0.5 million charge was recorded for compensatory fees imposed by GSEs on the Bank as a servicer. Historically, losses experienced related to breaches in representations and warranties have been immaterial. As a consequence, as of December 31, 2014, the Corporation does not maintain a liability for estimated losses on loans expected to be repurchased as a result of breaches in loan and servicer representations and warranties. | |||||||||||||||||||||||||||||||||
The Corporation sold $53.0 million of commercial mortgage loan participations during 2014, none in 2013. | |||||||||||||||||||||||||||||||||
Bulks Sales of Assets and Transfers of Loans to Held For Sale | |||||||||||||||||||||||||||||||||
On March 28, 2013, the Corporation completed the sale of adversely classified loans with a book value of $211.4 million ($100.1 million of commercial and industrial loans, $68.8 million of commercial mortgage loans, $41.3 million of construction loans, and $1.2 million of residential mortgage loans), and $6.3 million of OREO properties in a cash transaction. Included in the bulk sale was $185.0 million of non-performing assets. The sales price of this bulk sale was $120.2 million. Approximately $39.9 million of reserves had already been allocated to the loans. This transaction resulted in total charge-offs of $98.5 million and an incremental loss of $58.9 million, reflected in the provision for loan and lease losses for the year 2013. In addition, the Corporation recorded $3.9 million of professional fees specifically related to this bulk sale of assets. This transaction resulted in a total pretax loss of $62.8 million. | |||||||||||||||||||||||||||||||||
In addition, during the first quarter of 2013, the Corporation transferred to held for sale non-performing loans with an aggregate book value of $181.6 million. These transfers resulted in charge-offs of $36.0 million and an incremental loss of $5.2 million reflected in the provision for loan and lease losses for the year 2013. | |||||||||||||||||||||||||||||||||
During the second quarter of 2013, the Corporation completed the sale of a $40.8 million non-performing commercial mortgage loan that was among the loans transferred to held for sale in the first quarter of 2013 without incurring additional losses. | |||||||||||||||||||||||||||||||||
In a separate transaction during 2013, the Corporation foreclosed on the collateral underlying $39.2 million related to one of the loans written-off and transferred to held for sale in the first quarter of 2013. The Corporation recorded losses of $4.9 million in 2013 related to this loan after the transfer to held for sale ($1.7 million of lower of cost or market adjustment and $3.2 million of write-downs to the value of foreclosed properties, recorded as part of net loss on OREO and OREO operations in the statement of income (loss)). During 2014, the Corporation recorded losses of $4.1 million related to this relationship ($3.8 million of market value adjustments and $0.3 million on the sale of one of the foreclosed properties). | |||||||||||||||||||||||||||||||||
Furthermore, in the third quarter of 2013, approximately $6.4 million of construction loans held for sale participations were paid off, resulting in a gain of $0.3 million included as part of “Other income” in the statement of income (loss). | |||||||||||||||||||||||||||||||||
On June 21, 2013, the Corporation announced that it had completed a sale of non-performing residential mortgage loans with a book value of $203.8 million and OREO properties with a book value of $19.2 million in a cash transaction. The sales price of this bulk sale was $128.3 million. Approximately $30.1 million of reserves had already been allocated to the loans. This transaction resulted in total charge-offs of $98.0 million and an incremental loss of $69.8 million, reflected in the provision for loan and lease losses for the 2013 year. In addition, the Corporation recorded $3.1 million of professional service fees specifically related to this bulk sale of non-performing residential assets. This transaction resulted in a total pretax loss of $72.9 million. | |||||||||||||||||||||||||||||||||
The Corporation's primary goal with respect to these sales was to accelerate the disposition of non-performing assets, which is the main priority of the Corporation's Strategic Plan. The opportunistic sale of distressed assets is a pivotal and tactical step in the Corporation's efforts to reduce balance sheet risk, improve earnings in the future through reductions of credit-related-costs, and enhance credit quality consistent with regulators' expectations of adequate levels of adversely classified assets for financial institutions. | |||||||||||||||||||||||||||||||||
Loan Portfolio Concentration | |||||||||||||||||||||||||||||||||
The Corporation's primary lending area is Puerto Rico. The Corporation's banking subsidiary, FirstBank, also lends in the USVI and BVI markets and in the United States (principally in the state of Florida). Of the total gross loans held for investment of $9.3 billion as of December 31, 2014, approximately 83% have credit risk concentration in Puerto Rico, 11% in the United States, and 6% in the USVI and BVI. | |||||||||||||||||||||||||||||||||
As of December 31, 2014, the Corporation had $339.0 million of credit facilities granted to the Puerto Rico government, its municipalities and public corporations, of which $308.0 million was outstanding, compared to $397.8 million outstanding as of December 31, 2013. In addition, the outstanding balance of facilities granted to the government of the Virgin Islands amounted to $57.7 million as of December 31, 2014, compared to $60.6 million as of December 31, 2013. Approximately $201.4 million of the outstanding credit facilities consists of loans to municipalities in Puerto Rico. Municipal debt exposure is secured by ad valorem taxation without limitation as to rate or amount on all taxable property within the boundaries of each municipality. The good faith, credit, and unlimited taxing power of the applicable municipality have been pledged to the repayment of all outstanding bonds and notes. Approximately $13.2 million consists of loans to units of the central government, and approximately $93.4 million consists of loans to public corporations that generally receive revenues from the rates they charge for services or products, such as electric power services, including a $75.0 million credit extended to the Puerto Rico Electric Power Authority (“PREPA”) for fuel purchases that have priority over senior bonds and other debt. In August 2014, PREPA entered into a forbearance agreement with a group of banks, including FirstBank, to extend its maturing credit lines to March 31, 2015. As a result of the forbearance, this credit facility was classified as a TDR during the third quarter of 2014. The loan has been maintained in accrual status based on the estimated cash flow analyses performed on this noncollateral dependent loan, repayment prospects and compliance with contractual terms. Major public corporations have varying degrees of independence from the central government and many receive appropriations or other payments from the Puerto Rico's government general fund. Debt issued by the central government can either carry the full faith, credit and taxing power of the Commonwealth of Puerto Rico or represent an obligation that is subject to annual budget appropriations. | |||||||||||||||||||||||||||||||||
Furthermore, the Corporation had $133.3 million outstanding as of December 31, 2014 in financing to the hotel industry in Puerto Rico guaranteed by the Puerto Rico Tourism Development Fund (“TDF”), compared to $200.4 million as of December 31, 2013. The TDF is a subsidiary of the GDB that works with private-sector financial institutions to structure financings for new hospitality projects. | |||||||||||||||||||||||||||||||||
As disclosed in Note 4, S&P, Moody's and Fitch downgraded the credit rating of the Commonwealth of Puerto Rico's debt to non-investment grade categories. The Corporation cannot predict at this time the impact that the current fiscal situation of the Commonwealth of Puerto Rico and the various legislative and other measures adopted and to be adopted by the Puerto Rico government in response to such fiscal situation will have on the Puerto Rico economy and on the Corporation's financial condition and results of operations. | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||
The Corporation provides homeownership preservation assistance to its customers through a loss mitigation program in Puerto Rico that is similar to the U.S. government's Home Affordable Modification Program guidelines. Depending upon the nature of borrowers' financial condition, restructurings or loan modifications through this program as well as other restructurings of individual commercial, commercial mortgage, construction, and residential mortgage loans in the U.S. mainland fit the definition of a TDR. A restructuring of a debt constitutes a TDR if the creditor for economic or legal reasons related to the debtor's financial difficulties grants a concession to the debtor that it would not otherwise consider. Modifications involve changes in one or more of the loan terms that bring a defaulted loan current and provide sustainable affordability. Changes may include the refinancing of any past-due amounts, including interest and escrow, the extension of the maturity of the loan and modifications of the loan rate. As of December 31, 2014, the Corporation's total TDR loans held for investment of $694.5 million consisted of $349.8 million of residential mortgage loans, $171.9 million of commercial and industrial loans, $127.8 million of commercial mortgage loans, $12.5 million of construction loans, and $32.5 million of consumer loans. Outstanding unfunded commitments on TDR loans amounted to $0.1 million as of December 31, 2014. | |||||||||||||||||||||||||||||||||
The Corporation's loss mitigation programs for residential mortgage and consumer loans can provide for one or a combination of the following: movement of interest past due to the end of the loan, extension of the loan term, deferral of principal payments, and reduction of interest rates either permanently or for a period of up to four years increasing back in step-up rates. Additionally, in certain cases, the restructuring may provide for the forgiveness of contractually due principal or interest. Uncollected interest is added to the end of the loan term at the time of the restructuring and not recognized as income until collected or when the loan is paid off. These programs are available only to those borrowers who have defaulted, or are likely to default, permanently on their loan and would lose their homes in the foreclosure action absent some lender concession. Nevertheless, if the Corporation is not reasonably assured that the borrower will comply with its contractual commitment, properties are foreclosed. | |||||||||||||||||||||||||||||||||
Prior to permanently modifying a loan, the Corporation may enter into trial modifications with certain borrowers. Trial modifications generally represent a six-month period during which the borrower makes monthly payments under the anticipated modified payment terms prior to a formal modification. Upon successful completion of a trial modification, the Corporation and the borrower enter into a permanent modification. TDR loans that are participating in or that have been offered a binding trial modification are classified as TDRs when the trial offer is made and continue to be classified as TDRs regardless of whether the borrower enters into a permanent modification. As of December 31, 2014, the Corporation classified an additional $9.7 million of residential mortgage loans as TDRs that were participating in or had been offered a trial modification. | |||||||||||||||||||||||||||||||||
For the commercial real estate, commercial and industrial, and construction loan portfolios, at the time of a restructuring, the Corporation determines, on a loan-by-loan basis, whether a concession was granted for economic or legal reasons related to the borrower's financial difficulty. Concessions granted for commercial loans could include: reductions in interest rates to rates that are considered below market; extension of repayment schedules and maturity dates beyond original contractual terms; waivers of borrower covenants; forgiveness of principal or interest; or other contract changes that would be considered a concession. The Corporation mitigates loan defaults for its commercial loan portfolios through its collection function. The function's objective is to minimize both early stage delinquencies and losses upon default of commercial loans. In the case of the commercial and industrial, commercial mortgage, and construction loan portfolios, the Corporation's Special Asset Group (“SAG”) focuses on strategies for the accelerated reduction of non-performing assets through note sales, short sales, loss mitigation programs, and sales of OREO. In addition to the management of the resolution process for problem loans, the SAG oversees collection efforts for all loans to prevent migration to the non-performing and/or adversely classified status. The SAG utilizes relationship officers, collection specialists, and attorneys. In the case of residential construction projects, the workout function monitors project specifics, such as project management and marketing, as deemed necessary. The SAG utilizes its collections infrastructure of workout collection officers, credit work-out specialists, in-house legal counsel, and third-party consultants. In the case of residential construction projects and large commercial loans, the function also utilizes third-party specialized consultants to monitor the residential and commercial construction projects in terms of construction, marketing and sales, and assists with the restructuring of large commercial loans. | |||||||||||||||||||||||||||||||||
In addition, the Corporation extends, renews, and restructures loans with satisfactory credit profiles. Many commercial loan facilities are structured as lines of credit, which are mainly one year in term and therefore are required to be renewed annually. Other facilities may be restructured or extended from time to time based upon changes in the borrower's business needs, use of funds, the timing of the completion of projects, and other factors. If the borrower is not deemed to have financial difficulties, extensions, renewals, and restructurings are done in the normal course of business and not considered concessions, and the loans continue to be recorded as performing. | |||||||||||||||||||||||||||||||||
Selected information on TDRs that includes the recorded investment by loan class and modification type is | |||||||||||||||||||||||||||||||||
summarized in the following tables. This information reflects all TDRs: | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Interest rate below market | Maturity or term extension | Combination of reduction in interest rate and extension of maturity | Forgiveness of principal and/or interest | Other (1) | Total | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | $ | 24,850 | $ | 5,859 | $ | 283,317 | $ | - | $ | 35,749 | $ | 349,775 | |||||||||||||||||||||
Commercial Mortgage loans | 29,881 | 12,737 | 72,493 | - | 12,655 | 127,766 | |||||||||||||||||||||||||||
Commercial and Industrial loans | 7,533 | 80,642 | 31,553 | 3,074 | 49,124 | 171,926 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | - | 202 | 1,732 | - | 536 | 2,470 | |||||||||||||||||||||||||||
Construction-residential | 6,154 | 337 | 3,112 | - | 434 | 10,037 | |||||||||||||||||||||||||||
Consumer loans - Auto | - | 380 | 10,363 | - | 6,248 | 16,991 | |||||||||||||||||||||||||||
Finance Leases | - | 376 | 1,805 | - | - | 2,181 | |||||||||||||||||||||||||||
Consumer loans - Other | 37 | 129 | 10,812 | 443 | 1,886 | 13,307 | |||||||||||||||||||||||||||
Total Troubled Debt Restructurings (2) | $ | 68,455 | $ | 100,662 | $ | 415,187 | $ | 3,517 | $ | 106,632 | $ | 694,453 | |||||||||||||||||||||
-1 | Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would | ||||||||||||||||||||||||||||||||
be considered insignificant, payment plans under judicial stipulation, or a combination of the concessions listed in the table. | |||||||||||||||||||||||||||||||||
-2 | Excludes TDR held for sale amounting to $45.7 million as of December 31, 2014. | ||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Interest rate below market | Maturity or term extension | Combination of reduction in interest rate and extension of maturity | Forgiveness of principal and/or interest | Other (1) | Total | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | $ | 23,428 | $ | 6,059 | $ | 274,562 | $ | - | $ | 33,195 | $ | 337,244 | |||||||||||||||||||||
Commercial Mortgage loans | 36,543 | 12,985 | 83,993 | 7 | 20,048 | 153,576 | |||||||||||||||||||||||||||
Commercial and Industrial loans | 12,099 | 11,341 | 12,835 | 3,122 | 52,554 | 91,951 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 878 | 2,012 | 1,760 | - | 675 | 5,325 | |||||||||||||||||||||||||||
Construction-commercial | - | - | 3,924 | - | - | 3,924 | |||||||||||||||||||||||||||
Construction-residential | 6,054 | 160 | 3,173 | 994 | 513 | 10,894 | |||||||||||||||||||||||||||
Consumer loans - Auto | - | 706 | 8,350 | - | 5,066 | 14,122 | |||||||||||||||||||||||||||
Finance Leases | - | 1,286 | 1,072 | - | - | 2,358 | |||||||||||||||||||||||||||
Consumer loans - Other | 227 | 256 | 8,638 | - | 1,743 | 10,864 | |||||||||||||||||||||||||||
Total Troubled Debt Restructurings (2) | $ | 79,229 | $ | 34,805 | $ | 398,307 | $ | 4,123 | $ | 113,794 | $ | 630,258 | |||||||||||||||||||||
-1 | Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be | ||||||||||||||||||||||||||||||||
considered insignificant, payment plans under judicial stipulation, or a combination of the concessions listed in the table above. | |||||||||||||||||||||||||||||||||
-2 | Excludes TDRs held for sale amounting to $45.9 million as of December 31, 2013. | ||||||||||||||||||||||||||||||||
The following table presents the Corporation's TDR activity: | |||||||||||||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Beginning balance of TDRs | $ | 630,258 | $ | 941,730 | |||||||||||||||||||||||||||||
New TDRs | 164,108 | 124,424 | |||||||||||||||||||||||||||||||
Increases to existing TDRs - additional disbursements | 1,903 | 2,864 | |||||||||||||||||||||||||||||||
Charge-offs post-modification | -43,916 | -132,595 | |||||||||||||||||||||||||||||||
Sales, net of charge-offs | -4,500 | -104,915 | |||||||||||||||||||||||||||||||
Foreclosures | -4,948 | -11,886 | |||||||||||||||||||||||||||||||
Removed from TDR classification | - | -6,764 | |||||||||||||||||||||||||||||||
TDRs transferred to held for sale | - | -129,964 | |||||||||||||||||||||||||||||||
Paid-off and partial payments | -48,452 | -52,636 | |||||||||||||||||||||||||||||||
Ending balance of TDRs | $ | 694,453 | $ | 630,258 | |||||||||||||||||||||||||||||
TDRs are classified as either accrual or nonaccrual loans. A loan on nonaccrual status and restructured as a TDR will remain on nonaccrual status until the borrower has proven the ability to perform under the modified structure, generally for a minimum of six months, and there is evidence that such payments can and are likely to continue as agreed. Performance prior to the restructuring, or significant events that coincide with the restructuring, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual at the time of the restructuring or after a shorter performance period. If the borrower's ability to meet the revised payment schedule is uncertain, the loan remains classified as a nonaccrual loan. Loan modifications increase the Corporation's interest income by returning a non-performing loan to performing status, if applicable, increase cash flows by providing for payments to be made by the borrower, and avoid increases in foreclosure and OREO costs. The Corporation continues to consider a modified loan as an impaired loan for purposes of estimating the allowance for loan and lease losses. A TDR loan that specifies an interest rate that at the time of the restructuring is greater than or equal to the rate the Corporation is willing to accept for a new loan with comparable risk may not be reported as a TDR, or an impaired loan in the calendar years subsequent to the restructuring, if it is in compliance with its modified terms. The Corporation did not remove loans from the TDR classification during 2014. | |||||||||||||||||||||||||||||||||
The following table provides a breakdown between accrual and nonaccrual of TDRs: | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Accrual | Nonaccrual (1) (2) | Total TDRs | |||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | $ | 266,810 | $ | 82,965 | $ | 349,775 | |||||||||||||||||||||||||||
Commercial Mortgage loans | 69,374 | 58,392 | 127,766 | ||||||||||||||||||||||||||||||
Commercial and Industrial loans | 131,544 | 40,382 | 171,926 | ||||||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 834 | 1,636 | 2,470 | ||||||||||||||||||||||||||||||
Construction-residential | 3,448 | 6,589 | 10,037 | ||||||||||||||||||||||||||||||
Consumer loans - Auto | 10,558 | 6,433 | 16,991 | ||||||||||||||||||||||||||||||
Finance Leases | 1,926 | 255 | 2,181 | ||||||||||||||||||||||||||||||
Consumer loans - Other | 10,146 | 3,161 | 13,307 | ||||||||||||||||||||||||||||||
Total Troubled Debt Restructurings | $ | 494,640 | $ | 199,813 | $ | 694,453 | |||||||||||||||||||||||||||
-1 | Included in nonaccrual loans are $52.8 million in loans that are performing under the terms of the restructuring agreement | ||||||||||||||||||||||||||||||||
but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance | |||||||||||||||||||||||||||||||||
under the revised terms for reinstatement to accrual status and there is no doubt about full collectability. | |||||||||||||||||||||||||||||||||
-2 | Excludes nonaccrual TDRs held for sale with a carrying value of $45.7 million as of December 31, 2014. | ||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Accrual | Nonaccrual (1)(2) | Total TDRs | |||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | $ | 263,919 | $ | 73,324 | $ | 337,243 | |||||||||||||||||||||||||||
Commercial Mortgage loans | 53,509 | 38,441 | 91,950 | ||||||||||||||||||||||||||||||
Commercial and Industrial loans | 84,419 | 69,156 | 153,575 | ||||||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 1,000 | 4,325 | 5,325 | ||||||||||||||||||||||||||||||
Construction-commercial | - | 3,924 | 3,924 | ||||||||||||||||||||||||||||||
Construction-residential | 3,332 | 7,562 | 10,894 | ||||||||||||||||||||||||||||||
Consumer loans - Auto | 8,512 | 5,610 | 14,122 | ||||||||||||||||||||||||||||||
Finance Leases | 2,275 | 85 | 2,360 | ||||||||||||||||||||||||||||||
Consumer loans - Other | 8,417 | 2,448 | 10,865 | ||||||||||||||||||||||||||||||
Total Troubled Debt Restructurings | $ | 425,383 | $ | 204,875 | $ | 630,258 | |||||||||||||||||||||||||||
-1 | Included in nonaccrual loans are $95.7 million in loans that are performing under the terms of the restructuring agreement | ||||||||||||||||||||||||||||||||
but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance | |||||||||||||||||||||||||||||||||
under the revised terms for reinstatement to accrual status and there is no doubt about full collectability. | |||||||||||||||||||||||||||||||||
-2 | Excludes nonaccrual TDRs held for sale with a carrying value of $45.9 million as of December 31, 2013. | ||||||||||||||||||||||||||||||||
TDRs exclude restructured residential mortgage loans that are guaranteed by the U.S. federal government (i.e., FHA/VA loans) totaling $71.5 million. The Corporation excludes FHA/VA guaranteed loans from TDRs given that, in the event that the borrower defaults on the loan, the principal and interest (debenture rate) are guaranteed by the U.S. government; therefore, the risk of loss on these types of loans is very low. The Corporation does not consider loans with U.S. federal government guarantees to be impaired loans for the purpose of calculating the allowance for loan and lease losses. | |||||||||||||||||||||||||||||||||
Loan modifications that are considered TDRs completed during 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||||||||||||
Number of contracts | Pre-modification Outstanding Recorded Investment | Post-modification Outstanding Recorded Investment | |||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | 291 | $ | 40,166 | $ | 39,194 | ||||||||||||||||||||||||||||
Commercial Mortgage loans | 9 | 2,853 | 2,855 | ||||||||||||||||||||||||||||||
Commercial and Industrial loans | 17 | 105,372 | 105,110 | ||||||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 6 | 257 | 219 | ||||||||||||||||||||||||||||||
Construction-residential | - | - | - | ||||||||||||||||||||||||||||||
Consumer loans - Auto | 602 | 8,903 | 8,748 | ||||||||||||||||||||||||||||||
Finance Leases | 45 | 953 | 800 | ||||||||||||||||||||||||||||||
Consumer loans - Other | 1,492 | 7,240 | 7,182 | ||||||||||||||||||||||||||||||
Total Troubled Debt Restructurings | 2,462 | $ | 165,744 | $ | 164,108 | ||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||
Number of contracts | Pre-modification Outstanding Recorded Investment | Post-modification Outstanding Recorded Investment | |||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | 17 | $ | 6,000 | $ | 6,161 | ||||||||||||||||||||||||||||
Commercial Mortgage loans | 27 | 79,531 | 53,525 | ||||||||||||||||||||||||||||||
Commercial and Industrial loans | - | - | - | ||||||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | - | - | - | ||||||||||||||||||||||||||||||
Construction-commercial | 1 | 195 | 195 | ||||||||||||||||||||||||||||||
Construction-residential | 557 | 7,582 | 7,582 | ||||||||||||||||||||||||||||||
Consumer loans - Auto | 75 | 1,435 | 1,435 | ||||||||||||||||||||||||||||||
Finance Leases | 1,452 | 6,518 | 6,518 | ||||||||||||||||||||||||||||||
Consumer loans - Other | 2,428 | 149,783 | 124,424 | ||||||||||||||||||||||||||||||
Total Troubled Debt Restructurings | 4,557 | $ | 251,044 | $ | 199,840 | ||||||||||||||||||||||||||||
Recidivism, or the borrower defaulting on its obligation pursuant to a modified loan, results in the loan once again becoming a non-performing loan. Recidivism occurs at a notably higher rate than do defaults on new origination loans, so modified loans present a higher risk of loss than do new origination loans. The Corporation considers a loan to have defaulted if the borrower has failed to make payments of either principal, interest, or both for a period of 90 days or more. | |||||||||||||||||||||||||||||||||
Loan modifications considered TDRs that defaulted during the years ended December 31, 2014 and 2013, and had become TDRs during the 12 months preceding the default date were as follows: | |||||||||||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Number of contracts | Recorded Investment | Number of contracts | Recorded Investment | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | 55 | $ | 8,087 | 81 | $ | 13,415 | |||||||||||||||||||||||||||
Commercial Mortgage loans | 2 | 4,604 | 1 | 46,102 | |||||||||||||||||||||||||||||
Commercial and Industrial loans | 2 | 1,537 | 2 | 3,829 | |||||||||||||||||||||||||||||
Construction loans | |||||||||||||||||||||||||||||||||
Land | 1 | 46 | 2 | 66 | |||||||||||||||||||||||||||||
Construction-commercial | |||||||||||||||||||||||||||||||||
Construction-residential | - | - | 1 | 186 | |||||||||||||||||||||||||||||
Consumer loans - Auto | 45 | 697 | 9 | 86 | |||||||||||||||||||||||||||||
Finance Leases | 241 | 989 | 40 | 219 | |||||||||||||||||||||||||||||
Consumer loans - Other | 6 | 115 | 3 | 38 | |||||||||||||||||||||||||||||
Total | 352 | $ | 16,075 | 139 | $ | 63,941 | |||||||||||||||||||||||||||
For certain TDRs, the Corporation splits the loans into two new notes, A and B notes. The A note is restructured to comply with the Corporation's lending standards at current market rates, and is tailored to suit the customer's ability to make timely interest and principal payments. The B note includes the granting of the concession to the borrower and varies by situation. The B note is charged off but the borrower's obligation is not forgiven, and any payments collected are accounted for as recoveries. At the time of the restructuring, the A note is identified and classified as a TDR. If the loan performs for at least six months according to the modified terms, the A note may be returned to accrual status. The borrower's payment performance prior to the restructuring is included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of the restructuring. In the periods following the calendar year in which a loan is restructured, the A note may no longer be reported as a TDR if it is on accrual status, is in compliance with its modified terms, and yields a market rate (as determined and documented at the time of the restructuring). | |||||||||||||||||||||||||||||||||
The recorded investment in loans held for investment restructured using the A/B note restructure workout strategy was approximately $46.0 million and $78.3 million at December 31, 2014 and 2013, respectively. The following table provides additional information about the volume of this type of loan restructuring and the effect on the allowance for loan and lease losses in 2014 and 2013: | |||||||||||||||||||||||||||||||||
(In thousands) | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Principal balance deemed collectible at end of year | $ | 46,032 | $ | 78,342 | |||||||||||||||||||||||||||||
Amount (recovered) charged off | $ | -7,501 | $ | 20,889 | |||||||||||||||||||||||||||||
(Reductions) to the provision for loan losses | $ | -8,341 | $ | -4,084 | |||||||||||||||||||||||||||||
Allowance for loan losses at end of year | $ | 731 | $ | 1,436 | |||||||||||||||||||||||||||||
Of the loans comprising the $46.0 million that has been deemed to be collectible as of December 31, 2014, approximately $44.3 million was placed in accrual status as the borrowers have exhibited a period of sustained performance. These loans continue to be individually evaluated for impairment purposes. | |||||||||||||||||||||||||||||||||
ALLOWANCE_FOR_LOAN_AND_LEASE_L
ALLOWANCE FOR LOAN AND LEASE LOSSES | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSSES [Text Block] | The changes in the allowance for loan and lease losses were as follows: | ||||||||||||||||||
Residential | Commercial | Commercial and | Construction | Consumer | |||||||||||||||
Year Ended December 31, 2014 | Mortgage Loans | Mortgage Loans | Industrial Loans | Loans | Loans | Total | |||||||||||||
(In thousands) | |||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||
Beginning balance | $ | 33,110 | $ | 73,138 | $ | 85,295 | $ | 35,814 | $ | 58,501 | $ | 285,858 | |||||||
Charge-offs | -24,345 | -25,807 | -61,935 | -11,533 | -76,696 | -200,316 | |||||||||||||
Recoveries | 1,049 | 10,639 | 3,680 | 6,049 | 5,906 | 27,323 | |||||||||||||
Provision (release) | 17,487 | -7,076 | 36,681 | -17,508 | 79,946 | 109,530 | |||||||||||||
Ending balance | $ | 27,301 | $ | 50,894 | $ | 63,721 | $ | 12,822 | $ | 67,657 | $ | 222,395 | |||||||
Ending balance: specific reserve for impaired loans | $ | 10,854 | $ | 14,289 | $ | 21,314 | $ | 2,577 | $ | 6,171 | $ | 55,205 | |||||||
Ending balance: purchased credit-impaired loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
Ending balance: general allowance | $ | 16,447 | $ | 36,605 | $ | 42,407 | $ | 10,245 | $ | 61,486 | $ | 167,190 | |||||||
Loans held for investment: | |||||||||||||||||||
Ending balance | $ | 3,011,187 | $ | 1,665,787 | $ | 2,479,437 | $ | 123,480 | $ | 1,982,545 | $ | 9,262,436 | |||||||
Ending balance: impaired loans | $ | 424,244 | $ | 210,738 | $ | 236,371 | $ | 39,467 | $ | 34,587 | $ | 945,407 | |||||||
Ending balance: purchased credit-impaired | |||||||||||||||||||
loans | $ | 98,494 | $ | 3,393 | $ | - | $ | - | $ | 717 | $ | 102,604 | |||||||
Ending balance: loans with general | |||||||||||||||||||
allowance | $ | 2,488,449 | $ | 1,451,656 | $ | 2,243,066 | $ | 84,013 | $ | 1,947,241 | $ | 8,214,425 | |||||||
Residential | Commercial | Commercial and | Construction | Consumer | |||||||||||||||
Year Ended December 31, 2013 | Mortgage Loans | Mortgage Loans | Industrial Loans | Loans | Loans | Total | |||||||||||||
(In thousands) | |||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||
Beginning balance | $ | 68,354 | $ | 97,692 | $ | 146,900 | $ | 61,600 | $ | 60,868 | $ | 435,414 | |||||||
Charge-offs | -30,192 | -27,400 | -65,171 | -30,539 | -63,108 | -216,410 | |||||||||||||
Charge-offs related to bulk sales | -98,972 | -40,057 | -44,678 | -12,784 | - | -196,491 | |||||||||||||
Recoveries | 1,165 | 4,855 | 4,636 | 2,076 | 6,862 | 19,594 | |||||||||||||
Provision | 92,755 | 27,357 | 53,048 | 16,712 | 53,879 | 243,751 | |||||||||||||
Reclassification (1) | - | 10,691 | -9,440 | -1,251 | - | - | |||||||||||||
Ending balance | $ | 33,110 | $ | 73,138 | $ | 85,295 | $ | 35,814 | $ | 58,501 | $ | 285,858 | |||||||
Ending balance: specific reserve for impaired loans | $ | 18,125 | $ | 32,189 | $ | 26,686 | $ | 22,144 | $ | 3,457 | $ | 102,601 | |||||||
Ending balance: purchased credit-impaired loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
Ending balance: general allowance | $ | 14,985 | $ | 40,949 | $ | 58,609 | $ | 13,670 | $ | 55,044 | $ | 183,257 | |||||||
Loans held for investment: | |||||||||||||||||||
Ending balance | $ | 2,549,008 | $ | 1,823,608 | $ | 3,028,322 | $ | 168,713 | $ | 2,066,519 | $ | 9,636,170 | |||||||
Ending balance: impaired loans | $ | 410,994 | $ | 219,372 | $ | 187,104 | $ | 72,717 | $ | 28,925 | $ | 919,112 | |||||||
Ending balance: purchased credit-impaired | |||||||||||||||||||
loans | $ | - | $ | - | $ | - | $ | - | $ | 4,791 | $ | 4,791 | |||||||
Ending balance: loans with general allowance | $ | 2,138,014 | $ | 1,604,236 | $ | 2,841,218 | $ | 95,996 | $ | 2,032,803 | $ | 8,712,267 | |||||||
-1 | During the second quarter of 2013, after a comprehensive review of substantially all of the loans in our commercial portfolios, the classification of certain loans was revised to more accurately depict the nature of the underlying loans. This reclassification resulted in a net increase of $269.0 million in commercial mortgage loans, since the principal source of repayment for such loans is derived primarily from the operation of the underlying real estate, with a corresponding decrease of $246.8 million in commercial and industrial loans and a $22.2 million decrease in construction loans. The Corporation evaluated the impact of this reclassification on the provision for loan losses and determined that the effect of this adjustment was not material to any previously reported results. | ||||||||||||||||||
Refer to Note 1, Nature of Business and Summary of Significant Accounting Policies – Allowance for loans and lease losses, for additional information about certain enhancements to the general allowance estimation process for commercial and consumer loans made in 2014. | |||||||||||||||||||
The bulk sale of approximately $217.7 million of adversely classified assets, mainly commercial loans, completed in the first quarter of 2013 resulted in charge-offs of approximately $98.5 million. In determining the historical loss rate for the computation of the general reserve for commercial loans, the Corporation includes the portion of these charge-offs that was related to the acceleration of previously reserved credit losses amounting to approximately $39.9 million. The Corporation considered that the portion not deemed to be credit-related was not indicative of the ultimate losses that may have occurred had the assets been resolved on an individual basis, over time and not in a steeply discounted bulk sale. A transaction, such as this one, entered into to expedite the reduction of non-performing and adversely classified assets, can result in charge-offs that are not reflective of true credit-related charge-off-history since there is a component related to the discounted value realized on a bulk sale basis. Accordingly, the Corporation concluded that it is reasonable to exclude the component related to the discounted value from its historical charge-off analysis used in estimating its allowance for loan losses. | |||||||||||||||||||
As of December 31, 2014, the Corporation maintained a $0.2 million reserve for unfunded loan commitments mainly related to outstanding construction and commercial and industrial loan commitments. The reserve for unfunded loan commitments is an estimate of the losses inherent in off-balance sheet loan commitments to borrowers that are experiencing financial difficulties at the balance sheet date. It is calculated by multiplying an estimated loss factor by an estimated probability of funding, and then by the period-end amounts for unfunded commitments. The reserve for unfunded loan commitments is included as part of accounts payable and other liabilities in the consolidated statements of financial condition. |
LOANS_HELD_FOR_SALE
LOANS HELD FOR SALE | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
LOANS HELD FOR SALE [Text Block] | NOTE 9 – LOANS HELD FOR SALE | ||||||
The Corporation's loans held-for-sale portfolio was composed of: | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
(In thousands) | |||||||
Residential mortgage loans | $ | 22,315 | $ | 21,168 | |||
Construction loans | 47,802 | 47,802 | |||||
Commercial mortgage loans | 6,839 | 6,999 | |||||
Total | $ | 76,956 | $ | 75,969 | |||
Non-performing loans held for sale totaled $54.6 million ($6.8 million commercial mortgage and $47.8 million construction loans) as of December 31, 2014 and $54.8 million ($7.0 million commercial mortgage and $47.8 million construction loans) as of December 31, 2013. The Corporation continues to seek to resolve and dispose of its non-performing commercial and construction loans held for sale. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||
Dec. 31, 2014 | |||
Related Party Transactions [Abstract] | |||
Related Party Transactions [Text Block] | NOTE 10 – RELATED-PARTY TRANSACTIONS | ||
The Corporation granted loans to its directors, executive officers, and certain related individuals or entities in the ordinary course of business. The movement and balance of these loans were as follows: | |||
Amount | |||
(In thousands) | |||
Balance at December 31, 2012 | $ | 4,093 | |
New loans | 51 | ||
Payments | -750 | ||
Other changes | -1,999 | ||
Balance at December 31, 2013 | 1,395 | ||
New loans | 61 | ||
Payments | -133 | ||
Other changes | 10 | ||
Balance at December 31, 2014 | $ | 1,333 | |
These loans do not involve more than normal risk of collectability and management considers that they present terms that are no more favorable than those that would have been obtained if the transactions had been with unrelated parties. The amounts reported as other changes include changes in the status of those who are considered related parties, which, for 2014, was mainly related to an addition of one new director and the resignation of one executive officer, and for 2013, was mainly due to the resignation of one independent director of the Corporation. | |||
From time to time, the Corporation, in the ordinary course of its business, obtains services from related parties or makes contributions to non-profit organizations that have some association with the Corporation. Management believes the terms of such arrangements are consistent with arrangements entered into with independent third parties. | |||
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY PLANT AND EQUIPMENT | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property Plant And Equipment [Abstract] | ||||||||||
Property Plant And Equipment Disclosure [Text Block] | NOTE 11 – PREMISES AND EQUIPMENT | |||||||||
Premises and equipment comprise: | ||||||||||
Useful Life In Years | As of December 31, | |||||||||
2014 | 2013 | |||||||||
(Dollars in thousands) | ||||||||||
Buildings and improvements | Oct-35 | $ | 140,592 | $ | 141,836 | |||||
Leasehold improvements | 10-Jan | 63,065 | 57,833 | |||||||
Furniture and equipment | 10-Feb | 161,865 | 147,640 | |||||||
365,522 | 347,309 | |||||||||
Accumulated depreciation | -232,272 | -216,170 | ||||||||
133,250 | 131,139 | |||||||||
Land | 25,655 | 25,655 | ||||||||
Projects in progress | 8,021 | 10,152 | ||||||||
Total premises and equipment, net | $ | 166,926 | $ | 166,946 | ||||||
Depreciation and amortization expense amounted to $21.0 million, $24.0 million, and $24.2 million for the years ended December 31, 2014, 2013, and 2012, respectively. During 2013, the Corporation reclassified at fair value approximately $2.2 million to other assets held for sale certain fixed assets no longer being used for operations after the consolidation of certain bank branches. This resulted in a charge of $0.5 million recorded as part of “other non-interest income” on the statement of income (loss). | ||||||||||
GOODWILL_AND_OTHER_INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
GOODWILL AND OTHER INTANGIBLES [Text Block] | NOTE 12 – GOODWILL AND OTHER INTANGIBLES | |||||
Goodwill as of December 31, 2014 and 2013 amounted to $28.1 million, recognized as part of “Other Assets” in the consolidated statement of financial condition. The Corporation conducted its annual evaluation of goodwill and other intangibles during the fourth quarter of 2014. The Corporation's goodwill is related to the acquisition of FirstBank Florida in 2005. | ||||||
The Corporation bypassed the qualitative assessment in 2014 and proceeded directly to perform the first step of the two-step goodwill impairment test. The Step 1 evaluation of goodwill allocated to the Florida reporting unit under both valuation approaches (market and discounted cash flow analysis) indicated that the fair value of the unit was above the carrying amount of its equity book value as of the valuation date (October 1); therefore, the completion of the Step 2 was not required. Based on the analysis under both the market and discounted cash flow analysis, the estimated fair value of equity of the reporting unit exceeded the carrying amount of the entity, including goodwill at the evaluation date. Goodwill was not impaired as of December 31, 2014 or 2013, nor was any goodwill written off due to impairment during 2014, 2013, and 2012. | ||||||
In connection with the acquisition of the FirstBank-branded credit card loan portfolio, in the second quarter of 2012, the Corporation recognized a purchased credit card relationship intangible of $24.5 million, which is being amortized over the next seven years on an accelerated basis based on the estimated attrition rate of the purchased credit card accounts, which reflects the pattern in which the economic benefits of the intangible asset are consumed. These benefits are consumed as the revenue stream generated by the cardholder relationship is realized. | ||||||
The following table shows the gross amount and accumulated amortization of the Corporation’s intangible assets recognized as part of Other Assets in the consolidated statement of financial condition: | ||||||
As of | As of | |||||
December 31, | December 31, | |||||
2014 | 2013 | |||||
(Dollars in thousands) | ||||||
Core deposit intangible: | ||||||
Gross amount | $ | 45,844 | $ | 45,844 | ||
Accumulated amortization | -40,424 | -38,863 | ||||
Net carrying amount | $ | 5,420 | $ | 6,981 | ||
Remaining amortization period | 8.4 years | 9.8 years | ||||
Purchased credit card relationship intangible: | ||||||
Gross amount | $ | 24,465 | $ | 24,465 | ||
Accumulated amortization | -8,076 | -4,678 | ||||
Net carrying amount | $ | 16,389 | $ | 19,787 | ||
Remaining amortization period | 6.9 years | 8.0 years | ||||
The following table presents the estimated aggregate annual amortization expense for intangible assets: | ||||||
Amount | ||||||
(In thousands) | ||||||
2015 | $ | 4,439 | ||||
2016 | 4,157 | |||||
2017 | 3,595 | |||||
2018 | 2,711 | |||||
2019 and after | 6,907 | |||||
NONCONSOLIDATED_VARIABLE_INTER
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS [Text Block] | NOTE 13 – NON CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS | |||||||||
The Corporation transfers residential mortgage loans in sale or securitization transactions in which it has continuing involvement, including servicing responsibilities and guarantee arrangements. All such transfers have been accounted for as sales as required by applicable accounting guidance. | ||||||||||
When evaluating transfers and other transactions with Variable Interest Entities (“VIEs”) for consolidation, the Corporation first determines if the counterparty is an entity for which a variable interest exists. If no scope exception is applicable and a variable interest exists, the Corporation then evaluates if it is the primary beneficiary of the VIE and whether the entity should be consolidated or not. | ||||||||||
Below is a summary of transfers of financial assets to VIEs for which the Corporation has retained some level of continuing involvement: | ||||||||||
GNMA | ||||||||||
The Corporation typically transfers first lien residential mortgage loans in conjunction with GNMA securitization transactions in which the loans are exchanged for cash or securities that are readily redeemed for cash proceeds and servicing rights. The securities issued through these transactions are guaranteed by the issuer and, as such, under seller/servicer agreements, the Corporation is required to service the loans in accordance with the issuers' servicing guidelines and standards. As of December 31, 2014, the Corporation serviced loans securitized through GNMA with a principal balance of $1.1 billion. | ||||||||||
Trust Preferred Securities | ||||||||||
In 2004, FBP Statutory Trust I, a financing subsidiary of the Corporation, sold to institutional investors $100 million of its variable rate trust-preferred securities. The proceeds of the issuance, together with the proceeds of the purchase by the Corporation of $3.1 million of FBP Statutory Trust I variable rate common securities, were used by FBP Statutory Trust I to purchase $103.1 million aggregate principal amount of the Corporation's Junior Subordinated Deferrable Debentures. Also in 2004, FBP Statutory Trust II, a statutory trust that is wholly owned by the Corporation, sold to institutional investors $125 million of its variable rate trust-preferred securities. The proceeds of the issuance, together with the proceeds of the purchase by the Corporation of $3.9 million of FBP Statutory Trust II variable rate common securities, were used by FBP Statutory Trust II to purchase $128.9 million aggregate principal amount of the Corporation's Junior Subordinated Deferrable Debentures. The debentures are presented in the Corporation's consolidated statement of financial condition as Other Borrowings, net of related issuance costs. The variable rate trust-preferred securities are fully and unconditionally guaranteed by the Corporation. The $100 million Junior Subordinated Deferrable Debentures issued by the Corporation in April 2004 and the $125 million issued in September 2004 mature on June 17, 2034 and September 20, 2034, respectively; however, under certain circumstances, the maturity of Junior Subordinated Deferrable Debentures may be shortened (such shortening would result in a mandatory redemption of the variable rate trust-preferred securities). The trust-preferred securities, subject to certain limitations, qualify as Tier I regulatory capital under current applicable rules and regulations. The Collins Amendment of the Dodd-Frank Wall Street Reform and Consumer Protection Act eliminates certain trust-preferred securities from Tier 1 Capital. Bank Holding Companies, such as the Corporation, must fully phase out these instruments from Tier 1 capital by January 1, 2016 (25% allowed in 2015 and 0% in 2016); however, these instruments may remain in Tier 2 capital until the instruments are redeemed or mature. The Corporation has elected to defer the interest payments that were due on quarterly periods since March 2012. The aggregate amount of payments deferred and accrued approximates $21.9 million as of December 31, 2014. Under the indentures, the Corporation has the right, from time to time, and without causing an event of default, to defer payments of interest on the subordinated debentures by extending the interest payment period at any time and from time to time during the term of the subordinated debentures for up to twenty consecutive quarterly periods. Future interest payments are subject to the Federal Reserve approval. | ||||||||||
Grantor Trusts | ||||||||||
During 2004 and 2005, a third party to the Corporation, from now on identified as the seller, established a series of statutory trusts to effect the securitization of mortgage loans and the sale of trust certificates. The seller initially provided the servicing for a fee, which is senior to the obligations to pay trust certificate holders. The seller then entered into a sales agreement through which it sold and issued the trust certificates in favor of the Corporation's banking subsidiary. Currently, the Bank is the sole owner of the trust certificates; the servicing of the underlying residential mortgages that generate the principal and interest cash flows is performed by another third party, which receives a servicing fee. The securities are variable rate securities indexed to 90-day LIBOR plus a spread. The principal payments from the underlying loans are remitted to a paying agent (servicer) who then remits interest to the Bank; interest income is shared to a certain extent with the FDIC, which has an interest only strip (“IO”) tied to the cash flows of the underlying loans and is entitled to receive the excess of the interest income less a servicing fee over the variable rate income that the Bank earns on the securities. This IO is limited to the weighted average coupon of the securities. The FDIC became the owner of the IO upon the intervention of the seller, a failed financial institution. No recourse agreement exists and the risks from losses on non accruing loans and repossessed collateral are absorbed by the Bank as the sole holder of the certificates. As of December 31, 2014, the amortized balance and carrying value of the Grantor Trusts amounted to $45.7 million and $33.5 million, respectively, with a weighted average yield of 2.17%. | ||||||||||
Investment in unconsolidated entity | ||||||||||
On February 16, 2011, FirstBank sold an asset portfolio consisting of performing and non-performing construction, commercial mortgage and commercial and industrial loans with an aggregate book value of $269.3 million to CPG/GS, an entity organized under the laws of the Commonwealth of Puerto Rico and majority owned by PRLP Ventures LLC ("PRLP"), a company created by Goldman, Sachs & Co. and Caribbean Property Group. In connection with the sale, the Corporation received $88.5 million in cash and a 35% interest in CPG/GS, and made a loan in the amount of $136.1 million representing seller financing provided by FirstBank. The loan has a seven-year maturity and bears variable interest at 30-day LIBOR plus 300 basis points and is secured by a pledge of all of the acquiring entity's assets as well as the PRLP's 65% ownership interest in CPG/GS. As of December 31, 2014, the carrying amount of the loan was $25.2 million, which was included in the Corporation's Commercial and Industrial loans held for investment portfolio. FirstBank's equity interest in CPG/GS is accounted for under the equity method and included as part of Investment in unconsolidated entity in the Consolidated Statements of Financial Condition. When applying the equity method, the Bank follows the HLBV method to determine its share in CPG/GS's earnings or loss. Under HLBV, the Bank determines its share in CPG/GS's earnings or loss by determining the difference between its “claim on CPG/GS's book value” at the end of the period as compared to the beginning of the period. This claim is calculated as the amount the Bank would receive if CPG/GS were to liquidate all of its assets at recorded amounts determined in accordance with GAAP and distribute the resulting cash to the investors, PRLP and FirstBank, according to their respective priorities as provided in the contractual agreement. The Bank reports its share of CPG/GS's operating results on a one-quarter lag basis. In addition, as a result of using HLBV, the difference between the Bank's investment in CPG/GS and its claim on the book value of CPG/GS at the date of the investment, known as the basis difference, is amortized over the estimated life of the investment, or five years. CPG/GS records its loans receivable under the fair value option. Equity in loss of unconsolidated entity for the year ended December 31, 2014 of $7.3 million includes $1.8 million related to the amortization of the basis differential, compared to equity in loss of unconsolidated entity of $16.7 million for 2013. The loss recorded in 2014 reduced to zero the carrying amount of the Bank's investment in CPG/GS. No negative investment needs to be reported as the Bank has no legal obligation or commitment to provide further financial support to this entity; thus, no further losses will be recorded on this investment. Any potential increase in the carrying value of the investment in CPG/GS, under the HLBV method, would depend upon how better off the Bank is at the end of the period than it was at the beginning of the period after the waterfall calculation performed to determine the amount of gain allocated to the investors. | ||||||||||
FirstBank also provided an $80 million advance facility to CPG/GS to fund unfunded commitments and costs to complete projects under construction, which was fully disbursed in 2011, and a $20 million working capital line of credit to fund certain expenses of CPG/GS. During 2013, the working capital line of credit was renewed and reduced to $7 million for a period of two years expiring September 2015. During 2012, CPG/GS repaid the outstanding balance of the advance facility to fund unfunded commitments, and the funds became available for redrawal under a one-time revolver agreement. These loans bear variable interest at 30-day LIBOR plus 300 basis points. As of December 31, 2014, the carrying value of the revolver agreement and working capital line were $30.4 million and $0, respectively, which was included in the Corporation's commercial and industrial loans held for investment portfolio. | ||||||||||
Cash proceeds received by CPG/GS are first used to cover operating expenses and debt service payments, including the note receivable, the advanced facility, and the working capital line, described above, which must be substantially repaid before proceeds can be used for other purposes, including the return of capital to both PRLP and FirstBank. FirstBank will not receive any return on its equity interest until PRLP receives an aggregate amount equivalent to its initial investment and a priority return of at least 12%, resulting in FirstBank's interest in CPG/GS being subordinate to PRLP's interest. CPG/GS will then begin to make payments pro rata to PRLP and FirstBank, 35% and 65%, respectively, until FirstBank has achieved a 12% return on its invested capital and the aggregate amount of distributions is equal to FirstBank's capital contributions to CPG/GS. | ||||||||||
The Bank has determined that CPG/GS is a VIE in which the Bank is not the primary beneficiary. In determining the primary beneficiary of CPG/GS, the Bank considered applicable guidance that requires the Bank to qualitatively assess the determination of the primary beneficiary (or consolidator) of CPG/GS based on whether it has both the power to direct the activities of CPG/GS that most significantly impact the entity's economic performance and the obligation to absorb losses of CPG/GS that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. | ||||||||||
The Bank determined that it does not have the power to direct the activities that most significantly impact the economic performance of CPG/GS as it does not have the right to manage the loan portfolio, impact foreclosure proceedings, or manage the construction and sale of the property; therefore, the Bank concluded that it is not the primary beneficiary of CPG/GS. As a creditor to CPG/GS, the Bank has certain rights related to CPG/GS; however, these are intended to be protective in nature and do not provide the Bank with the ability to manage the operations of CPG/GS. Since CPG/GS is not a consolidated subsidiary of the Bank and the transaction met the criteria for sale accounting under authoritative guidance, the Bank accounted for this transaction as a true sale, recognizing the cash received, the notes receivable, and the interest in CPG/GS, and derecognizing the loan portfolio sold. | ||||||||||
The initial fair value of the investment in CPG/GS was determined using techniques with significant unobservable (Level 3) inputs. The valuation inputs included an estimate of future cash flows, expectations about possible variations in the amount and timing of cash flows, and a discount factor based on a rate of return. The Corporation researched available market data and internal information (i.e., proposals received for the servicing of distressed assets and public disclosures and other information about similar structures and/or of distressed asset sales) and determined reasonable ranges of expected returns for FirstBank's equity interest. | ||||||||||
The rate of return of 17.57% was used as the discount factor to estimate the value of FirstBank's equity interest and represents the Bank's estimate of the yield a market participant would require. A reasonable range of equity returns was assessed based on consideration of a range of company-specific risk premiums. The valuation of this type of equity interest is highly subjective and somewhat dependent on nonobservable market assumptions, which may result in variations from market participant to market participant. | ||||||||||
Servicing Assets | ||||||||||
The Corporation is actively involved in the securitization of pools of FHA-insured and VA-guaranteed mortgages for issuance of GNMA mortgage-backed securities. Also, certain conventional conforming loans are sold to FNMA or FHLMC with servicing retained. The Corporation recognizes as separate assets the rights to service loans for others, whether those servicing assets are originated or purchased. | ||||||||||
The changes in servicing assets are shown below: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Balance at beginning of year | $ | 21,987 | $ | 17,524 | $ | 15,226 | ||||
Capitalization of servicing assets | 4,321 | 7,649 | 6,348 | |||||||
Amortization | -3,156 | -3,289 | -3,014 | |||||||
Adjustment to fair value | -228 | 460 | -394 | |||||||
Other (1) | -86 | -357 | -642 | |||||||
Balance at end of year | $ | 22,838 | $ | 21,987 | $ | 17,524 | ||||
-1 | Amount represents the adjustment to fair value related to the repurchase of loans serviced for others. | |||||||||
Impairment charges are recognized through a valuation allowance for each individual stratum of servicing assets. The valuation allowance is adjusted to reflect the amount, if any, by which the cost basis of the servicing asset for a given stratum of loans being serviced exceeds its fair value. Any fair value in excess of the cost basis of the servicing asset for a given stratum is not recognized. | ||||||||||
Changes in the impairment allowance related to servicing assets were as follows: | ||||||||||
Year ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Balance at beginning of year | $ | 212 | $ | 672 | $ | 2,725 | ||||
Temporary impairment charges | 343 | 277 | 763 | |||||||
OTTI of servicing assets | -385 | - | -2,447 | |||||||
Recoveries | -115 | -737 | -369 | |||||||
Balance at end of year | $ | 55 | $ | 212 | $ | 672 | ||||
The components of net servicing income are shown below: | ||||||||||
Year ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Servicing fees | $ | 6,999 | $ | 7,164 | $ | 5,650 | ||||
Late charges and prepayment penalties | 695 | 701 | 642 | |||||||
Adjustment for loans repurchased | -86 | -357 | -642 | |||||||
Other (1) | -1,253 | -407 | - | |||||||
Servicing income, gross | 6,355 | 7,101 | 5,650 | |||||||
Amortization and impairment of servicing assets | -3,384 | -2,829 | -3,408 | |||||||
Servicing income, net | $ | 2,971 | $ | 4,272 | $ | 2,242 | ||||
(1) Mainly consisted of compensatory fees imposed by GSEs and losses related to representations and warranties. | ||||||||||
The Corporation’s servicing assets are subject to prepayment and interest rate risks. Key economic assumptions used in determining the fair value at the time of sale ranged as follows: | ||||||||||
Maximum | Minimum | |||||||||
2014:00:00 | ||||||||||
Constant prepayment rate: | ||||||||||
Government-guaranteed mortgage loans | 9.6 | % | 9.1 | % | ||||||
Conventional conforming mortgage loans | 9.4 | % | 8.9 | % | ||||||
Conventional non-conforming mortgage loans | 14 | % | 12.7 | % | ||||||
Discount rate: | ||||||||||
Government-guaranteed mortgage loans | 11.5 | % | 11.5 | % | ||||||
Conventional conforming mortgage loans | 9.5 | % | 9.5 | % | ||||||
Conventional non-conforming mortgage loans | 13.9 | % | 13.8 | % | ||||||
2013:00:00 | ||||||||||
Constant prepayment rate: | ||||||||||
Government-guaranteed mortgage loans | 10.5 | % | 8.9 | % | ||||||
Conventional conforming mortgage loans | 10.9 | % | 8.7 | % | ||||||
Conventional non-conforming mortgage loans | 14.3 | % | 12.3 | % | ||||||
Discount rate: | ||||||||||
Government-guaranteed mortgage loans | 12 | % | 11.5 | % | ||||||
Conventional conforming mortgage loans | 10 | % | 9.5 | % | ||||||
Conventional non-conforming mortgage loans | 14.3 | % | 13.8 | % | ||||||
2012:00:00 | ||||||||||
Constant prepayment rate: | ||||||||||
Government-guaranteed mortgage loans | 12.4 | % | 11.6 | % | ||||||
Conventional conforming mortgage loans | 12.8 | % | 12.3 | % | ||||||
Conventional non-conforming mortgage loans | 13.8 | % | 13.3 | % | ||||||
Discount rate: | ||||||||||
Government-guaranteed mortgage loans | 12 | % | 12 | % | ||||||
Conventional conforming mortgage loans | 10 | % | 10 | % | ||||||
Conventional non-conforming mortgage loans | 14.3 | % | 14.3 | % | ||||||
At December 31, 2014, fair values of the Corporation's servicing assets were based on a valuation model that incorporates market driven assumptions regarding discount rates and mortgage prepayment rates, adjusted by the particular characteristics of the Corporation's servicing portfolio. The weighted-averages of the key economic assumptions used by the Corporation in its valuation model and the sensitivity of the current fair value to immediate 10% and 20% adverse changes in those assumptions for mortgage loans as of December 31, 2014 were as follows: | ||||||||||
(Dollars in thousands) | ||||||||||
Carrying amount of servicing assets | $ | 22,838 | ||||||||
Fair value | $ | 24,932 | ||||||||
Weighted average expected life (in years) | 8.85 | |||||||||
Constant prepayment rate (weighted average annual rate) | 9.74 | % | ||||||||
Decrease in fair value due to 10% adverse change | $ | 936 | ||||||||
Decrease in fair value due to 20% adverse change | $ | 1,813 | ||||||||
Discount rate (weighted average annual rate) | 10.6 | % | ||||||||
Decrease in fair value due to 10% adverse change | $ | 1,037 | ||||||||
Decrease in fair value due to 20% adverse change | $ | 1,996 | ||||||||
These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on a 10% variation in assumptions generally cannot be extrapolated because the relationship between the change in assumption and the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the servicing asset is calculated without changing any other assumption; in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the sensitivities. | ||||||||||
DEPOSITS
DEPOSITS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
DEPOSITS [Text Block] | NOTE 14 – DEPOSITS AND RELATED INTEREST | ||||||||
The following table summarizes deposit balances: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Type of account and interest rate: | |||||||||
Non-interest-bearing checking accounts | $ | 900,616 | $ | 851,212 | |||||
Savings accounts - 0.05% to 0.85% (2013- 0.20% to 1.00%) | 2,450,484 | 2,334,831 | |||||||
Interest-bearing checking accounts - 0.10% to 1.06% | |||||||||
(2013- 0.25% to 1.06%) | 1,054,136 | 1,167,480 | |||||||
Certificates of deposit- 0.10% to 5.05% (2013- 0.10% to 5.05%) | 2,191,663 | 2,384,378 | |||||||
Brokered certificates of deposit- 0.20% to 4.70% (2013- 0.45% to 4.94%) | 2,887,046 | 3,142,023 | |||||||
$ | 9,483,945 | $ | 9,879,924 | ||||||
The weighted average interest rate on total interest-bearing deposits as of December 31, 2014 and 2013 was 0.82% and 0.93%, respectively. | |||||||||
As of December 31, 2014, the aggregate amount of overdrafts in demand deposits that were reclassified as loans amounted to $0.8 million (2013 — $2.6 million). | |||||||||
The following table presents a summary of CDs, including brokered CDs, with a remaining term of more than one year as of December 31, 2014: | |||||||||
Total | |||||||||
(In thousands) | |||||||||
Over one year to two years | $ | 1,304,563 | |||||||
Over two years to three years | 326,771 | ||||||||
Over three years to four years | 133,303 | ||||||||
Over four years to five years | 45,670 | ||||||||
Over five years | 36,256 | ||||||||
Total | $ | 1,846,563 | |||||||
As of December 31, 2014, CDs in denominations of $100,000 or higher amounted to $4.3 billion (2013 — $4.7 billion) including brokered CDs of $2.9 billion (2013 — $3.1 billion) at a weighted average cost of 0.77% (2013 — 0.97%) issued to deposit brokers in the form of large ($100,000 or more) certificates of deposit that are generally participated out by brokers in shares of less than $100,000. As of December 31, 2014, unamortized broker placement fees amounted to $6.1 million (2013— $9.1 million), which are amortized over the contractual maturity of the brokered CDs under the interest method. | |||||||||
Brokered CD's mature as follows: | |||||||||
December 31, | |||||||||
2014 | |||||||||
(In thousands) | |||||||||
One to ninety days | $ | 361,594 | |||||||
Over ninety days to one year | 1,473,840 | ||||||||
One to three years | 956,783 | ||||||||
Three to five years | 58,795 | ||||||||
Over five years | 36,034 | ||||||||
Total | $ | 2,887,046 | |||||||
As of December 31, 2014, deposit accounts issued to government agencies with a carrying value of $400.7 million (2013 — $705.8 million) were collateralized by securities and loans with an amortized cost of $634.0 million (2013 — $784.0 million) and an estimated market value of $624.8 million (2013 — $761.9 million). As of December 31, 2014, the Corporation had $227.4 million of government deposits in Puerto Rico (2013- $546.5 million) and $173.3 million in the Virgin Islands (2013- $159.3 million). | |||||||||
In 2014, Act 24-2014 was approved by the Puerto Rico Legislature, seeking to further strengthen the liquidity of the GDB and the GDB's oversight of public funds. As anticipated, certain public corporations and agencies withdrew from First Bank approximately $341.6 million during the second quarter of 2014. | |||||||||
A table showing interest expense on deposits follows: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
(In thousands) | |||||||||
Interest-bearing checking accounts | $ | 6,446 | $ | 8,419 | $ | 9,421 | |||
Savings | 15,416 | 15,852 | 17,382 | ||||||
Certificates of deposit | 26,371 | 29,264 | 34,602 | ||||||
Brokered certificates of deposit | 29,894 | 38,252 | 66,854 | ||||||
Total | $ | 78,127 | $ | 91,787 | $ | 128,259 | |||
The interest expense on deposits includes the amortization of broker placement fees related to brokered CDs amounting to $6.7 million, $7.9 million, and $9.9 million for 2014, 2013, and 2012, respectively. | |||||||||
SECURITIES_SOLD_UNDER_AGREEMEN
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE [Text Block] | NOTE 15 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | ||||||||||||
Securities sold under agreements to repurchase (repurchase agreements) consist of the following: | |||||||||||||
December, 31 | |||||||||||||
2014 | 2013 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Repurchase agreements, interest ranging from 2.45% to 4.50% | |||||||||||||
(December 31, 2013: 2.45% to 3.32%) (1) | $ | 900,000 | $ | 900,000 | |||||||||
-1 | As of December 31, 2014, includes $800 million with an average rate of 3.30%, and that lenders have the right to call before their contractual maturities | ||||||||||||
at various dates beginning on January 9, 2015. Subsequent to December 31, 2014, no lender has exercised its call option on repurchase agreements. | |||||||||||||
In addition, $500 million of the $900 million is tied to variable rates. | |||||||||||||
The weighted average interest rates on repurchase agreements as of December 31, 2014 and 2013 were 3.24% and 2.83%, respectively. Accrued interest payable on repurchase agreements amounted to $5.2 million and $4.5 million as of December 31, 2014 and 2013, respectively. | |||||||||||||
Repurchase agreements mature as follows: | |||||||||||||
31-Dec-14 | |||||||||||||
(In thousands) | |||||||||||||
Over one year to three years | $ | 700,000 | |||||||||||
Three to five years | 200,000 | ||||||||||||
Total | $ | 900,000 | |||||||||||
The following securities were sold under agreements to repurchase: | |||||||||||||
31-Dec-14 | |||||||||||||
Amortized | Approximate | Weighted | |||||||||||
Cost of | Fair Value | Average | |||||||||||
Underlying | Balance of | of Underlying | Interest Rate | ||||||||||
Underlying Securities | Securities | Borrowing | Securities | of Security | |||||||||
(In thousands) | |||||||||||||
U.S. government-sponsored agencies | $ | 170,495 | $ | 150,051 | $ | 166,320 | 1.27 | % | |||||
Mortgage-backed securities | 852,132 | 749,949 | 859,646 | 2.53 | % | ||||||||
Total | $ | 1,022,627 | $ | 900,000 | $ | 1,025,966 | |||||||
Accrued interest receivable | $ | 2,846 | |||||||||||
31-Dec-13 | |||||||||||||
Amortized | Approximate | Weighted | |||||||||||
Cost of | Fair Value | Average | |||||||||||
Underlying | Balance of | of Underlying | Interest Rate | ||||||||||
Underlying Securities | Securities | Borrowing | Securities | of Security | |||||||||
(In thousands) | |||||||||||||
U.S. government-sponsored agencies | $ | 212,218 | $ | 178,360 | $ | 198,968 | 1.31 | % | |||||
Mortgage-backed securities | 858,626 | 721,640 | 843,514 | 2.59 | % | ||||||||
Total | $ | 1,070,844 | $ | 900,000 | $ | 1,042,482 | |||||||
Accrued interest receivable | $ | 2,925 | |||||||||||
The maximum aggregate balance outstanding at any month-end during 2014 was $900 million (2013 — $900 million). The average balance during 2014 was $900 million (2013 — $900 million). The weighted-average interest rate during 2014 and 2013 was 3.00% and 2.88%, respectively. | |||||||||||||
As of December 31, 2014 and 2013, the securities underlying such agreements were delivered to the dealers with which the repurchase agreements were transacted. | |||||||||||||
Repurchase agreements as of December 31, 2014, grouped by counterparty, were as follows: | |||||||||||||
(Dollars in thousands) | Weighted Average | ||||||||||||
Counterparty | Amount | Maturity (In Months) | |||||||||||
Citigroup Global Markets | $ | 300,000 | 22 | ||||||||||
JP Morgan Chase | 200,000 | 26 | |||||||||||
Dean Witter / Morgan Stanley | 100,000 | 34 | |||||||||||
Credit Suisse First Boston | 300,000 | 36 | |||||||||||
$ | 900,000 | ||||||||||||
ADVANCES_FROM_THE_FEDERAL_HOME
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) [Text Block] | NOTE 16 – ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) | ||||||
The following is a summary of the advances from the FHLB: | |||||||
December 31, | December 31, | ||||||
2014 | 2013 | ||||||
(In thousands) | |||||||
Fixed-rate advances from FHLB, with a weighted average | |||||||
interest rate of 1.17% (December 31, 2013 - 1.11%) | $ | 325,000 | $ | 300,000 | |||
Advances from FHLB mature as follows: | |||||||
December 31, | |||||||
2014 | |||||||
(In thousands) | |||||||
Over one to three years | $ | 300,000 | |||||
Three to four years | 25,000 | ||||||
Total | $ | 325,000 | |||||
Advances are received from the FHLB under an Advances, Collateral Pledge, and Security Agreement (the “Collateral Agreement”). Under the Collateral Agreement, the Corporation is required to maintain a minimum amount of qualifying mortgage collateral with a market value of generally 125% or higher than the outstanding advances. As of December 31, 2014, the estimated value of specific mortgage loans pledged as collateral amounted to $812.6 million (2013 — $764.6 million), as computed by the FHLB for collateral purposes. The carrying value of such loans as of December 31, 2014 amounted to $1.1 billion (2013 — $988.0 million). As of December 31, 2014, the Corporation had additional capacity of approximately $487.6 million on this credit facility based on collateral pledged at the FHLB, including a haircut reflecting the perceived risk associated with the collateral. Haircut refers to the percentage by which an asset's market value is reduced for the purpose of collateral levels. Advances may be repaid prior to maturity, in whole or in part, at the option of the borrower upon payment of any applicable fee specified in the contract governing such advance. In calculating the fee, due consideration is given to (i) all relevant factors, including but not limited to, any and all applicable costs of repurchasing and/or prepaying any associated liabilities and/or hedges entered into with respect to the applicable advance; (ii) the financial characteristics, in their entirety, of the advance being prepaid; and (iii), in the case of adjustable-rate advances, the expected future earnings of the replacement borrowing as long as the replacement borrowing is at least equal to the original advance's par amount and the replacement borrowing's tenor is at least equal to the remaining maturity of the prepaid advance. | |||||||
OTHER_BORROWINGS
OTHER BORROWINGS | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
OTHER BORROWINGS [Text Block] | NOTE 17 – OTHER BORROWINGS | |||||
Other borrowings consist of: | ||||||
December 31, | December 31, | |||||
2014 | 2013 | |||||
(In thousands) | ||||||
Junior subordinated debentures due in 2034, | ||||||
interest-bearing at a floating rate of 2.75% | ||||||
over 3-month LIBOR (2.99% as of December 31, 2014 | ||||||
and December 31, 2013) | $ | 103,093 | $ | 103,093 | ||
Junior subordinated debentures due in 2034, | ||||||
interest-bearing at a floating rate of 2.50% | ||||||
over 3-month LIBOR (2.75% as of December 31, 2014 | ||||||
and December 31, 2013) | 128,866 | 128,866 | ||||
$ | 231,959 | $ | 231,959 |
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
EARNINGS PER COMMON SHARE [Text Block] | NOTE 18 – EARNINGS PER COMMON SHARE | ||||||||||
The calculation of earnings (losses) per common share for the years ended December 31, 2014, 2013, and 2012 are as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands, except per share information) | |||||||||||
Net income (loss) | $ | 392,287 | $ | -164,487 | $ | 29,782 | |||||
Favorable impact from issuing common stock in exchange for Series G | |||||||||||
Favorable impact from issuing common stock in exchange for | |||||||||||
Series A through E preferred stock (1) | 1,659 | - | - | ||||||||
Net income (loss) attributable to common stockholders | 393,946 | -164,487 | 29,782 | ||||||||
Net income (loss) attributable to common stockholders- diluted | $ | 393,946 | $ | -164,487 | $ | 29,782 | |||||
Weighted Average Shares: | |||||||||||
Average common shares outstanding | 208,752 | 205,542 | 205,366 | ||||||||
Average potential dilutive common shares | 1,788 | - | 462 | ||||||||
Average common shares outstanding - assuming dilution | 210,540 | 205,542 | 205,828 | ||||||||
Basic earnings (loss) per common share | $ | 1.89 | $ | -0.8 | $ | 0.15 | |||||
Diluted earnings (loss) per common share | $ | 1.87 | $ | -0.8 | $ | 0.14 | |||||
____________ | |||||||||||
-1 | Excess of carrying amount of the Series A through E preferred stock exchanged over the fair value of new common | ||||||||||
shares issued in 2014. | |||||||||||
Earnings (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares issued and outstanding. Net income (loss) attributable to common stockholders represents net income (loss) adjusted for any preferred stock dividends, including any dividends declared, and any cumulative dividends related to the current dividend period that have not been declared as of the end of the period. For 2014, net income attributable to common stockholders also includes the one-time effect to retained earnings of the issuance of common stock in exchange for Series A through E preferred stock. These transactions are discussed in Note 20 to the consolidated financial statements. Basic weighted average common shares outstanding exclude unvested shares of restricted stock. | |||||||||||
Potential common shares consist of common stock issuable under the assumed exercise of stock options, unvested shares of restricted stock, and outstanding warrants using the treasury stock method. This method assumes that the potential common shares are issued and the proceeds from the exercise, in addition to the amount of compensation cost attributable to future services, are used to purchase common stock at the exercise date. The difference between the numbers of potential shares issued and potential shares purchased is added as incremental shares to the actual number of shares outstanding to compute diluted earnings per share. Stock options, unvested shares of restricted stock, and outstanding warrants that result in lower potential shares issued than potential shares purchased under the treasury stock method are not included in the computation of dilutive earnings per share since their inclusion would have an antidilutive effect on earnings per share. Stock options not included in the computation of outstanding shares because they were antidilutive amounted to 82,575; 101,435, and 113,158 for the years ended December 31, 2014, 2013, and 2012, respectively. Warrants outstanding to purchase 1,285,899 shares of common stock and 1,411,185 unvested shares of restricted stock were excluded from the computation of diluted earnings per share for the year 2013 because the Corporation reported a net loss attributable to common stockholders for the period and their inclusion would have an antidilutive effect. | |||||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
STOCK-BASED COMPENSATION [Text Block] | NOTE 19 – STOCK-BASED COMPENSATION | |||||||||
Between 1997 and January 2007, the Corporation had the 1997 stock option plan that authorized the granting of up to 579,740 options on shares of the Corporation's common stock to eligible employees. The options granted under the plan could not exceed 20% of the number of common shares outstanding. Each option provides for the purchase of one share of common stock at a price not less than the fair market value of the stock on the date the option was granted. Stock options were fully vested upon grant. The maximum term to exercise these options is 10 years. The 1997 stock option plan provides for a proportionate adjustment in the exercise price and the number of shares that can be purchased in the event of a stock dividend, stock split, reclassification of stock, merger or reorganization, and certain other issuances and distributions such as stock appreciation rights. | ||||||||||
On January 21, 2007, the 1997 stock option plan expired; all outstanding awards granted under this plan continue in full force and effect, subject to their original terms. No awards of shares could be granted under the 1997 stock option plan as of its expiration. | ||||||||||
The activity of stock options granted under the 1997 stock option plan for the year ended December 31, 2014 is set forth below: | ||||||||||
Weighted Average | Aggregate | |||||||||
Remaining | Intrinsic | |||||||||
Number of | Weighted Average | Contractual Term | Value | |||||||
Options | Exercise Price | (Years) | (In thousands) | |||||||
Beginning of year | 101,435 | $ | 206.95 | |||||||
Options expired | -12,795 | 321.75 | ||||||||
Options cancelled | -6,065 | 226.15 | ||||||||
End of year outstanding and exercisable | 82,575 | $ | 187.75 | 1.4 | $ | - | ||||
On April 29, 2008, the Corporation's stockholders approved the First Bancorp 2008 Omnibus Incentive Plan, (the “Omnibus Plan”). The Omnibus Plan provides for equity-based compensation incentives (the “awards”) through the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, and other stock-based awards. The Omnibus Plan authorizes the issuance of up to 8,169,807 shares of common stock, subject to adjustments for stock splits, reorganizations and other similar events. The Corporation's Board of Directors, upon receiving the relevant recommendation of the Compensation Committee, has the power and authority to determine those eligible to receive awards and to establish the terms and conditions of any awards, subject to various limits and vesting restrictions that apply to individual and aggregate awards. | ||||||||||
Under the Omnibus Plan, during 2014, 379,573 shares of restricted stock were awarded to the Corporation's independent directors subject to vesting periods that range from 1 to 5 years. In addition, during 2014, the Corporation issued 840,138 shares of restricted stock that will vest based on the employees' continued service with the Corporation. Fifty percent (50%) of those shares vest in two years from the grant date and the remaining 50% vest in three years from the grant date. Included in those 840,138 shares of restricted stock are 653,138 shares granted to certain senior officers consistent with the requirements of the Troubled Asset Relief Program (“TARP”) Interim Final Rule, which permit TARP recipients to grant “long-term restricted stock” without violating the prohibition on paying or accruing a bonus payment if it satisfies the following requirements: (i) the value of the grant may not exceed one-third of the amount of the employee's annual compensation, (ii) no portion of the grant may vest before two years after the grant date, and (iii) the grant must be subject to a further restriction on transfer or payment as described below. Specifically, the stock that has otherwise vested may not become transferable at any time earlier than as permitted under the schedule set forth by TARP, which is based on the repayment in 25% increments of the aggregate financial assistance received from the U.S. Treasury. Hence, notwithstanding the vesting period mentioned above, the employees covered by TARP are restricted from transferring the shares. The U.S. Treasury confirmed that, effective March 2014, it has recovered more than a 25% of its investment on First Bancorp. Therefore, the restriction on transfer relating to 25% of the shares granted under TARP requirements was released. | ||||||||||
The fair value of the shares of restricted stock granted in 2014 was based on the market price of the Corporation's outstanding common stock on the date of the grant. For the 653,138 shares of restricted stock granted under the TARP requirements, the market price was discounted due to the postvesting transfer restrictions. For purposes of computing the discount, the Corporation estimated an appreciation of 16% in the value of the common stock using the Capital Asset Pricing Model as a basis of what would be a market participant's expected return on the Corporation's stock and assumed that the U.S. Treasury would hold its outstanding common stock of the Corporation for two years, resulting in a fair value of $2.63 for restricted shares granted under the TARP requirements. Also, the Corporation used empirical data to estimate employee termination; separate groups of employees that have similar historical exercise behavior were considered separately for valuation purposes. | ||||||||||
The following table summarizes the restricted stock activity in 2014 under the Omnibus Plan for both executive | ||||||||||
officers covered by the TARP requirements and other employees as well as for the independent directors: | ||||||||||
2014 | ||||||||||
Number of | Weighted | |||||||||
shares of | Average | |||||||||
restricted | Grant Date | |||||||||
stock | Fair Value | |||||||||
Non-vested shares at beginning of year | 1,411,185 | $ | 3.04 | |||||||
Granted | 1,219,711 | 3.75 | ||||||||
Forfeited | -40,090 | 3.53 | ||||||||
Vested | -263,650 | 3.31 | ||||||||
Non-vested shares at end of year | 2,327,156 | $ | 3.39 | |||||||
For the years ended December 31, 2014, 2013 and 2012, the Corporation recognized $2.6 million, $1.6 million and $0.9 million, respectively, of stock-based compensation expense related to restricted stock awards. As of December 31, 2014, there was $3.9 million of total unrecognized compensation cost related to nonvested shares of restricted stock. The weighted average period over which the Corporation expects to recognize such cost is 2.1 years. | ||||||||||
In 2013, the Corporation granted 26,780 shares of restricted stock to the independent directors subject to a one-year vesting period. In addition, during 2013, the Corporation granted 716,405 shares of restricted stock that will vest based on the employees' continued service with the Corporation. 50% of those shares vest in two years from the grant date and the remaining 50% vest in three years from the grant date. Included in those 716,405 shares of restricted stock are 582,905 shares granted to certain senior officers consistent with the requirements of TARP. The employees covered by TARP are restricted from transferring the shares, subject to certain conditions as explained above. | ||||||||||
The fair value of the shares of restricted stock granted in 2013 was based on the market price of the Corporation's outstanding common stock on the date of the grant. However, for the 582,905 shares of restricted stock granted under the TARP requirements, the market price was discounted due to the postvesting restrictions. For purposes of computing the discount, the Corporation assumed appreciation of 13% in the value of the common stock and a holding period by the U.S. Treasury of its outstanding common stock of the Corporation of two years, resulting in a fair value of $3.02 for restricted shares granted under the TARP requirements. | ||||||||||
Stock-based compensation accounting guidance requires the Corporation to develop an estimate of the number of share-based awards that will be forfeited due to employee or director turnover. Quarterly changes in the estimated forfeiture rate may have a significant effect on share-based compensation, as the effect of adjusting the rate for all expense amortization is recognized in the period in which the forfeiture estimate is changed. If the actual forfeiture rate is higher than the estimated forfeiture rate, then an adjustment is made to increase the estimated forfeiture rate, which will result in a decrease in the expense recognized in the financial statements. If the actual forfeiture rate is lower than the estimated forfeiture rate, an adjustment is made to decrease the estimated forfeiture rate, which will result in an increase in the expense recognized in the financial statements. When unvested options or shares of restricted stock are forfeited, any compensation expense previously recognized on the forfeited awards is reversed in the period of the forfeiture. Approximately, $0.1 million of compensation expense was reversed in each of years 2014 and 2013 related to forfeited awards; no compensation expense was reversed in 2012. | ||||||||||
Also, under the Omnibus Plan, effective April 1, 2013, the Corporation's Board of Directors determined to increase the salary amounts paid to certain executive officers primarily by paying the increased salary amounts in the form of shares of the Corporation's common stock, instead of cash. During 2014, the Corporation issued 312,850 shares of common stock (2013 – 220,639 shares) with a weighted average market value of $5.20 (2013 - $6.23 market value) as salary stock compensation. This resulted in a compensation expense of $1.7 million recorded in 2014 (2013 – $1.4 million). | ||||||||||
During 2014, the Corporation withheld 105,000 shares (2013 – 71,326 shares) from the common stock paid to certain senior officers as additional compensation and 68,870 shares of restricted stock that vested during 2014 to cover employees' payroll and income tax withholding liabilities; these shares are held as treasury shares. The Corporation paid any fractional share of salary stock that the officer was entitled to in cash. In the consolidated financial statements, the Corporation treats shares withheld for tax purposes as common stock repurchases. | ||||||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
STOCKHOLDERS' EQUITY [Text Block] | NOTE 20 – STOCKHOLDERS' EQUITY | |||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
As of December 31, 2014 and 2013, the Corporation had 2,000,000,000 authorized shares of common stock with a par value of $0.10 per share. As of December 31, 2014 and 2013, there were 213,724,749 and 207,635,157 shares issued, respectively, and 212,984,700 and 207,068,978, shares outstanding, respectively. On July 30, 2009, the Corporation announced the suspension of common and preferred stock dividends effective with the preferred dividend for the month of August 2009. | ||||||||||||||||||||||||
In 2014 and 2013, the Corporation granted 379,573 shares and 26,780 shares, respectively, of restricted stock under the Omnibus Plan, to the independent directors subject to vesting periods ranging from one to five years. Also in 2014 and 2013, the Corporation granted 840,138 shares and 716,405 shares, respectively, of restricted stock, to certain senior officers and certain other employees. The restrictions on such restricted stock will lapse with respect to 50% over a two-year period and 50% over a three-year period. Included in the shares of restricted stock granted in 2014 and 2013 are 653,138 shares and 582,905 shares, respectively, granted to certain senior officers consistent with the requirements of TARP. Refer to Note 19 for additional details. The shares of restricted stock may vest more quickly in the event of death, disability, retirement, or a change in control. Based on particular circumstances evaluated by the Compensation Committee upon the termination of a holder of restricted stock, the Corporation's Board of Directors may, with the recommendation of the Compensation Committee, accelerate the vesting of the restricted stock held by such holder upon termination of employment. Holders of restricted stock have the right to dividends or dividend equivalents, as applicable, during the restriction period. Such dividends or dividend equivalents will accrue during the restriction period, but will not be paid until restrictions lapse. The holder of restricted stock has the right to vote the shares. | ||||||||||||||||||||||||
In addition, in 2014, the Corporation issued 312,850 shares of common stock as increased compensation to certain executive officers (2013 – 220,639 shares). Refer to Note 19 for additional details. As of December 31, 2014 and December 31, 2013, there were 2,327,156 and 1,411,185 shares of unvested restricted stock outstanding. During 2014, 40,090 shares of restricted stock were forfeited (2013 – 58,985 shares) and the restrictions on 263,650 shares of restricted stock lapsed (2013 – 43,522 shares). | ||||||||||||||||||||||||
On August 16, 2013, certain of the Corporation's existing stockholders completed a secondary offering of the Corporation's common stock. The U.S. Treasury sold 12 million shares of common stock, funds affiliated with Thomas H. Lee Partners, L.P. (“THL”) sold 8 million shares of common stock, and funds managed by Oaktree Capital Management, L.P. (“Oaktree”) sold 8 million shares of common stock. Subsequently, on September 11, 2013, the underwriters in the secondary offering exercised their option to purchase an additional 2.9 million shares of common stock from the selling stockholders (1,261,356 shares from the U.S. Treasury, 840,903 shares from THL and 840,904 shares from Oaktree). The Corporation did not receive any proceeds from the offering. Non-interest expenses for 2013 included approximately $1.7 million in costs associated with the secondary offering, including $1.1 million paid by the Corporation for underwriting discounts and commissions. | ||||||||||||||||||||||||
During the fourth quarter of 2014, the U.S. Treasury sold 4.4 million shares of First BanCorp.'s common stock through its first pre-defined written trending plan. On March 9, 2015, the U.S. Treasury announced the sale of an additional 5 million shares of First Bancorp.'s common stock through its second pre-defined written trading plan. As of the announcement date, the U.S. Treasury held 10,291,553 shares, or 4.8%, of First Bancorp.'s common stock, excluding the common shares underlying the warrant owned by the U.S. Treasury, and each of THL and Oaktree owned 19.7% of the Corporation's outstanding common stock. | ||||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||||
The Corporation has 50,000,000 authorized shares of preferred stock with a par value of $1, redeemable at the Corporation's option subject to certain terms. This stock may be issued in series and the shares of each series will have such rights and preferences as are fixed by the Board of Directors when authorizing the issuance of that particular series. As of December 31, 2014, the Corporation has five outstanding series of non-convertible, non-cumulative preferred stock: 7.125% non-cumulative perpetual monthly income preferred stock, Series A; 8.35% non-cumulative perpetual monthly income preferred stock, Series B; 7.40% non-cumulative perpetual monthly income preferred stock, Series C; 7.25% non-cumulative perpetual monthly income preferred stock, Series D; and 7.00% non-cumulative perpetual monthly income preferred stock, Series E. The liquidation value per share is $25. | ||||||||||||||||||||||||
Effective January 17, 2012, the Corporation delisted all of its outstanding series of non-convertible, non-cumulative preferred stock from the New York Stock Exchange. The Corporation has not arranged for listing and/or registration on another national securities exchange or for quotation of the Series A through E Preferred Stock in a quotation medium. During the first quarter of 2013, the Corporation commenced an offer to issue shares of its common stock in exchange for any and all of the remaining issued and outstanding shares of Series A through E non-cumulative perpetual monthly income preferred stock. The offer was terminated on April 9, 2013 given that the Corporation did not receive the consent required from holders of shares of the Series A through E preferred stock to amend the certificate of designation of each series of the Series A through E Preferred Stock (the Preferred Stock Amendment). The Preferred Stock Amendment was a condition to the completion of the exchange offer. In addition, the consent solicitation was terminated, and no consent fee became payable with respect to consents granted in favor of the Preferred Stock Amendment. All shares of the Series A through E Preferred Stock that were tendered were returned promptly to the tendering holders. | ||||||||||||||||||||||||
In 2014, the Corporation issued an aggregate of 4,597,121 shares of its common stock in exchange for an aggregate of 1,077,726 shares of the Corporation's Series A through E Preferred Stock, having an aggregate liquidation value of $26.9 million. The shares of common stock were issued to holders of the Series A through E Preferred Stock in separate and unrelated transactions in reliance upon the exemption set forth in Section 3(a)(9) of the Securities Act of 1933, as amended, for securities exchanged by an issuer with existing security holders where no commission or other remuneration is paid or given directly or indirectly by the issuer for soliciting such exchange. The exchange resulted in a decrease in the carrying (liquidation) value of the Series A through E preferred stock of $26.9 million, and common stock and additional paid-in capital was increased in the amount of the fair value of the common stock issued. The Corporation recorded the par value of the shares issued as common stock ($0.10 per common share) or $0.5 million. The excess of the common stock fair value over the par value, or $23.9 million, was recorded in additional paid-in capital. The excess of the carrying amount of the shares of preferred stock over the fair value of the shares of common stock, or $1.7 million, was recorded as an increase to retained earnings and an increase in earnings per common share computation. | ||||||||||||||||||||||||
The results of the exchange with respect to Series A through E preferred stock were as follows: | ||||||||||||||||||||||||
Liquidation preference per share | Shares of Preferred stock outstanding prior to exchange | Shares of preferred stock exchanged | Shares of preferred stock outstanding after exchange | Aggregate liquidation preference after exchange (In thousands) | Shares of common stock issued | |||||||||||||||||||
Title of Securities | ||||||||||||||||||||||||
7.125% Noncumulative Perpetual | ||||||||||||||||||||||||
Monthly Income Preferred | ||||||||||||||||||||||||
Stock, Series A | $25 | 450,195 | 252,809 | 197,386 | $ | 4,935 | 1,081,652 | |||||||||||||||||
8.35% Noncumulative Perpetual | ||||||||||||||||||||||||
Monthly Income Preferred | ||||||||||||||||||||||||
Stock, Series B | $25 | 475,987 | 179,841 | 296,146 | 7,404 | 769,379 | ||||||||||||||||||
7.40% Noncumulative Perpetual | ||||||||||||||||||||||||
Monthly Income Preferred | ||||||||||||||||||||||||
Stock, Series C | $25 | 460,611 | 210,759 | 249,852 | 6,246 | 890,830 | ||||||||||||||||||
7.25% Noncumulative Perpetual | ||||||||||||||||||||||||
Monthly Income Preferred | ||||||||||||||||||||||||
Stock, Series D | $25 | 510,592 | 225,070 | 285,522 | 7,138 | 961,724 | ||||||||||||||||||
7.00% Noncumulative Perpetual | ||||||||||||||||||||||||
Monthly Income Preferred | ||||||||||||||||||||||||
Stock, Series E | $25 | 624,487 | 209,247 | 415,240 | 10,381 | 893,536 | ||||||||||||||||||
2,521,872 | 1,077,726 | 1,444,146 | $ | 36,104 | 4,597,121 | |||||||||||||||||||
EMPLOYEES_BENEFIT_PLAN
EMPLOYEES' BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2014 | |
Employees' Benefit Plan [Abstract] | |
Employees' Benefit Plan [Text Block] | NOTE 21 – EMPLOYEES' BENEFIT PLAN |
FirstBank provides contributory retirement plans pursuant to Section 1081.01 of the Puerto Rico Internal Revenue Code of 2011 for Puerto Rico employees and Section 401(k) of the U.S. Internal Revenue Code for USVI and U.S. employees (the “Plans”). All employees are eligible to participate in the Plans after three months of service for purposes of making elective deferral contributions and one year of service for purposes of sharing in the Bank's matching, qualified matching, and qualified nonelective contributions. Under the provisions of the Plans, the Bank contributes 25% of the first 4% of the participant's compensation contributed to the Plans on a pretax basis. Participants were permitted to contribute up to $13,000 for 2012, and $15,000 for each of 2013 and 2014 ($17,000 for 2012, and $17,500 for each of 2013 and 2014 for USVI and U.S. employees). Additional contributions to the Plans are voluntarily made by the Bank as determined by its Board of Directors. No additional discretionary contributions were made for the years ended December 31, 2014, 2013 and 2012. The Bank had a total plan expense of $2.2 million for the year ended December 31, 2014, $0.8 million for 2013, and $0.7 million for 2012. | |
OTHER_NON_INTEREST_INCOME
OTHER NON- INTEREST INCOME | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Other Non-interest Income [Abstract] | |||||||||||
Other Noninterest Income [Text Block] | NOTE 22 –OTHER NON-INTEREST INCOME | ||||||||||
A detail of other non-interest income is as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Non-deferrable loan fees | $ | 2,238 | $ | 2,248 | $ | 5,090 | |||||
Commissions and fees-broker-dealer-related | 459 | 97 | 2,630 | ||||||||
Lower of cost or market adjustment-commercial and construction | |||||||||||
loans held for sale | - | -1,503 | - | ||||||||
Credit card loans interchange and other fees | 6,204 | 6,694 | 7,239 | ||||||||
Other | 21,590 | 20,640 | 11,772 | ||||||||
Total | $ | 30,491 | $ | 28,176 | $ | 26,731 | |||||
OTHER_NON_INTEREST_EXPENSES
OTHER NON- INTEREST EXPENSES | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Other Non Interest Expenses [Abstract] | ||||||||||
Other Noninterest Expenses [Text Block] | NOTE 23 –OTHER NON-INTEREST EXPENSE | |||||||||
A detail of non-interest expenses is as follows: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Supplies and printing | $ | 2,140 | $ | 3,014 | $ | 2,811 | ||||
Contingency adjustment-tax credits | - | - | 2,489 | |||||||
Reserve release for off-balance sheet exposures | -653 | -443 | -1,914 | |||||||
Contingency for attorney's fees-Lehman | - | 2,500 | - | |||||||
Amortization of intangible assets | 4,943 | 6,078 | 3,306 | |||||||
Data processing fees | 1,619 | 1,601 | 1,568 | |||||||
Write-down and losses on sale of non-real estate | ||||||||||
repossessed properties | 737 | 263 | 338 | |||||||
Other | 10,253 | 15,632 | 13,324 | |||||||
Total | $ | 19,039 | $ | 28,645 | $ | 21,922 | ||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
INCOME TAXES [Text Block] | NOTE 24 – INCOME TAXES | ||||||||||||||||
Income tax expense includes Puerto Rico and USVI income taxes as well as applicable United States (“U.S.”) federal and state taxes. The Corporation is subject to Puerto Rico income tax on its income from all sources. As a Puerto Rico corporation, First BanCorp. is treated as a foreign corporation for U.S. and USVI income tax purposes and is generally subject to U.S. and USVI income tax only on its income from sources within the U.S. and USVI or income effectively connected with the conduct of a trade or business in those regions. Any such tax paid is also creditable against the Corporation's Puerto Rico tax liability, subject to certain conditions and limitations. | |||||||||||||||||
Under the Puerto Rico Internal Revenue Code of 2011 as amended (the “2011 PR Code”), the Corporation and its subsidiaries are treated as separate taxable entities and are not entitled to file a consolidated tax return and, thus, the Corporation is not able to utilize losses from one subsidiary to offset gains in another subsidiary. Accordingly, in order to obtain a tax benefit from an NOL, a particular subsidiary must be able to demonstrate sufficient taxable income within the applicable NOL carryforward period. The 2011 PR Code provides a dividend received deduction of 100% on dividends received from “controlled” subsidiaries subject to taxation in Puerto Rico and 85% on dividends received from other taxable domestic corporations. | |||||||||||||||||
The Corporation has maintained an effective tax rate lower than the maximum statutory rate mainly by investing in government obligations and mortgage-backed securities exempt from U.S. and Puerto Rico income taxes and by doing business through an International Banking Entity (“IBE”) unit of the Bank and through the Bank's subsidiary, FirstBank Overseas Corporation, whose interest income and gain on sales is exempt from Puerto Rico and U.S. income taxation. The IBE and FirstBank Overseas Corporation were created under the International Banking Entity Act of Puerto Rico, which provides for total Puerto Rico tax exemption on net income derived by IBEs operating in Puerto Rico on the specific activities identified in the IBE Act. An IBE that operates as a unit of a bank pays income taxes at normal rates to the extent that the IBE's net income exceeds 20% of the bank's total net taxable income. | |||||||||||||||||
The components of income tax expense are summarized below: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Current income tax expense | $ | -5,361 | $ | -7,947 | $ | -5,357 | |||||||||||
Deferred income tax benefit (expense) | 306,010 | 2,783 | -575 | ||||||||||||||
Total income tax benefit (expense) | $ | 300,649 | $ | -5,164 | $ | -5,932 | |||||||||||
The differences between the income tax expense applicable to income before the provision for income taxes and the | |||||||||||||||||
amount computed by applying the statutory tax rate in Puerto Rico were as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Amount | % of Pretax Income | Amount | % of Pretax Income | Amount | % of Pretax Income | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Computed income tax at | |||||||||||||||||
statutory rate | $ | -35,738 | -39.00% | $ | 62,136 | 39.00% | $ | -10,714 | -30.00% | ||||||||
Federal and state taxes | -117 | -0.10% | -136 | 0.00% | - | - | |||||||||||
Adjustment in deferred tax due | |||||||||||||||||
to change in tax rate | -346 | -0.40% | 106,717 | 67.00% | - | - | |||||||||||
Benefit of net exempt income | 15,202 | 17.00% | -13,320 | -8.40% | -3,627 | -10.10% | |||||||||||
National receipts tax, net | 628 | 0.70% | 552 | 0.30% | - | - | |||||||||||
Nontax deductible expenses | -193 | -0.20% | -146 | -0.10% | -2,417 | -6.80% | |||||||||||
(Decrease) increase in | |||||||||||||||||
unrecognized tax benefits, | |||||||||||||||||
including interest | 1,763 | 2.00% | -3,218 | -2.00% | -238 | -0.70% | |||||||||||
Recognition of unrecognized tax | |||||||||||||||||
Deferred tax valuation allowance | 318,380 | 347.00% | -157,449 | -98.80% | 9,602 | 26.90% | |||||||||||
Other-net | 1,070 | 1.20% | -300 | -0.20% | 1,462 | 4.10% | |||||||||||
Total income tax | |||||||||||||||||
benefit (expense) | $ | 300,649 | 328.20% | $ | -5,164 | -3.20% | $ | -5,932 | -16.60% | ||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Significant components of the Corporation's deferred tax assets and liabilities as of December 31, 2014 and 2013 were as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Deferred tax asset: | |||||||||||||||||
Net operating loss and charitable contribution carryforward available | $ | 387,388 | $ | 373,253 | |||||||||||||
Allowance for loan and lease losses | 85,048 | 108,811 | |||||||||||||||
Tax credits available for carryforward | 11,659 | 7,616 | |||||||||||||||
Unrealized loss on OREO valuation | 11,517 | 13,104 | |||||||||||||||
Unrealized net loss on equity investment | 7,752 | 12,273 | |||||||||||||||
Settlement payment-closing agreement | 7,313 | 7,313 | |||||||||||||||
Legal reserve | 3,239 | 3,285 | |||||||||||||||
Impairment on investment | 3,212 | 2,409 | |||||||||||||||
Reserve for insurance premium cancellations | 560 | 687 | |||||||||||||||
Unrealized losses on derivatives activities | 58 | 1,415 | |||||||||||||||
Unrealized loss on available-for-sale securities, net | - | 337 | |||||||||||||||
Other | 9,848 | 8,736 | |||||||||||||||
Gross deferred tax assets | 527,594 | 539,239 | |||||||||||||||
Less: Valuation allowance | -204,587 | -522,708 | |||||||||||||||
Total deferred tax assets, net of valuation allowance | 323,007 | 16,531 | |||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Unrealized gain on available-for-sale securities, net | 1,091 | - | |||||||||||||||
Differences between the assigned values and tax bases of asset | |||||||||||||||||
and liabilities recognized in purchase business combinations | 811 | 1,034 | |||||||||||||||
Unrealized gain on other investments | 468 | 625 | |||||||||||||||
Other | 7,593 | 7,228 | |||||||||||||||
Gross deferred tax liabilities | 9,963 | 8,887 | |||||||||||||||
Net deferred tax assets | $ | 313,044 | $ | 7,644 | |||||||||||||
For 2014, the Corporation recorded an income tax benefit of $300.6 million compared to an income tax expense of $5.2 million for 2013. The income tax benefit for 2014 primarily reflects a $302.9 million reversal of the valuation allowance of FirstBank's deferred tax assets. In addition, the variance includes a net change of $3.7 million related to adjustments to the reserve for uncertain tax positions, partially offset by the impact in 2013 of a net benefit of approximately $1.3 million related to the increase in the deferred tax asset of profitable subsidiaries due to changes in statutory tax rates. | |||||||||||||||||
As a result of the partial reversal, the Corporation's net deferred tax assets amounted to $313.0 million as of December 31, 2014, net of a valuation allowance of $204.6 million. | |||||||||||||||||
Accounting for income taxes requires that companies assess whether a valuation allowance should be recorded against their deferred tax asset based on an assessment of the amount of the deferred tax asset that is “more likely than not” to be realized. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. | |||||||||||||||||
Management assesses the valuation allowance recorded against deferred tax assets at each reporting date. The determination of whether a valuation allowance for deferred tax assets is appropriate is subject to considerable judgment and requires the evaluation of positive and negative evidence that can be objectively verified. Consideration must be given to all sources of taxable income available to realize the deferred tax asset, including, as applicable, the future reversal of existing temporary differences, future taxable income forecasts exclusive of the reversal of temporary differences and carryforwards, taxable income in carryback years and tax planning strategies. In estimating taxes, management assesses the relative merits and risks of the appropriate tax treatment of transactions taking into account statutory, judicial, and regulatory guidance. | |||||||||||||||||
In 2010, the Corporation established a valuation allowance for substantially all of the deferred tax assets of its banking subsidiary, FirstBank, primarily due to the realization of significant losses driven by charges to the provision for loan losses, a three-year cumulative loss position as of the end of year 2010, and uncertainty regarding the amount of future taxable income that the Bank could forecast. Prior to the fourth quarter of 2014, based on the assessment of all positive and negative evidence, management concluded that there was no sufficient evidence to conclude that it was more likely than not that FirstBank would realize the benefits associated with deferred tax assets; accordingly the Corporation maintained a valuation allowance for substantially all of FirstBank's deferred tax assets. | |||||||||||||||||
After completion of the deferred tax asset valuation allowance analysis for the fourth quarter 2014, management concluded that, as of December 31, 2014, it is more likely than not that FirstBank will generate sufficient taxable income within the applicable NOL carry-forward periods to realize $313.0 million of its deferred tax assets and, therefore, reversed $302.9 million of the valuation allowance. This conclusion was reached after weighting all of the evidence and determining that the positive evidence outweighted the negative evidence. The positive evidence considered by management in arriving at its conclusion to partially reverse the valuation allowance includes factors such as the completion of a sixth consecutive quarter of profitability, forecasts of future profitability under several potential scenarios that support the partial utilization of NOLs prior to their expiration between 2021 through 2024, sustained pre-tax, pre-provision income, which demonstrate demand for FirstBank's products and services, and improvements in credit quality measures and credit policy enhancements that have resulted in reduced credit exposures and improve both the sustainability of profitability and management's ability to forecast future credit losses, among others. The negative evidence considered by management includes the fact that the Bank remains in a three-year cumulative pre-tax loss position of $51.8 million due to significant charges to the provision for loan losses as a result of the bulk sales of adversely classified and non-performing assets in 2013, however, this loss position is significantly down from the three-year cumulative pre-tax loss position of $860.3 million as of December 31, 2010. Additional negative evidence considered was the still elevated levels of non-performing assets, Puerto Rico's current economic conditions, and the FDIC Consent Order. | |||||||||||||||||
In determining whether management's projections of future taxable income used to determine the valuation allowance reversal are reliable, management considered objective evidence supporting the forecast's assumptions as well as recent experience to conclude as to Bank's ability to reasonably project future results of operations. The analysis included the evaluation of multiple financial scenarios, including scenarios where credit losses remain elevated. Further, while Puerto Rico's economy is expected to remain challenging due to inherent uncertainties, the Corporation believes that it can reasonably forecast future taxable income at sufficient levels over the future period of time that FirstBank has available to realize part of the December 31, 2014 net deferred tax asset as further described below. | |||||||||||||||||
The Corporation expects to realize approximately $188.4 million of deferred tax assets associated with FirstBank's NOLs prior to their expiration periods. In addition, as of December 31, 2014, approximately $124.6 million of the net deferred tax assets are attributable to temporary differences or tax credit carry-forwards that have no expiration date. Approximately $10.7 million of other non-NOL related deferred tax assets are fully reserved with a valuation allowance given limitations and uncertainties as to their future utilization. As a result of the partial reversal, the Corporation's deferred tax assets amounted to $313.0 million as of December 31, 2014, net of a valuation allowance of $204.6 million. The ability to recognize the remaining deferred tax assets that continue to be subject to a valuation allowance will be evaluated on a quarterly basis to determine if there are any significant events that would affect the ability to utilize these deferred tax assets. | |||||||||||||||||
Management's conclusion that it more likely than not that $313.0 million of net deferred tax assets will be realized is based, among other things, on management's estimate of future taxable income. Management's estimate of future taxable income is based on internal projections which consider historical performance, multiple internal scenarios and assumptions, as well as external data that management believes is reasonable. If events are identified that affect the Corporation's ability to utilize its deferred tax assets, the analysis will be updated to determine if any adjustments to the valuation allowance are required. If actual results differ significantly from the current estimates of future taxable income, even if caused by adverse macro-economic conditions, the remaining valuation allowance may need to be increased. Such an increase could have a material adverse effect on the Corporation's financial condition and results of operations. Conversely, better than expected results and continued positive results and trends could result in further releases to the deferred tax valuation allowance, any such decreases could have a material positive effect on the Corporation's financial condition and results of operations. | |||||||||||||||||
In February 2015, the Governor of Puerto Rico announced a proposal for a new tax code that would, among other things, replace the current 7% sales and use tax with a 16% value-added tax, while lowering income taxes. While legislation for the new tax code has been introduced, it is too early to determine what changes will be made during the legislative process. Legislative changes in tax laws, could adversely impact the results of operations. | |||||||||||||||||
The authoritative accounting guidance prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of income tax uncertainties with respect to positions taken or expected to be taken on income tax returns. Under this guidance, income tax benefits are recognized and measured based upon a two-step analysis: 1) a tax position must be more likely than not to be sustained based solely on its technical merits in order to be recognized, and 2) the benefit is measured as the largest dollar amount of that position that is more likely than not to be sustained upon settlement. The difference between the benefit recognized under this analysis and the tax benefit claimed on a tax return is referred to as an UTB. | |||||||||||||||||
The following table reconciles the balance of UTBs: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Balance at January 1, | $ | 4,310 | $ | 2,374 | $ | 2,374 | |||||||||||
(Decrease) increase related to positions taken during | |||||||||||||||||
prior years | -1,763 | 1,936 | - | ||||||||||||||
Decrease related to settlement with taxing authorities | -2,547 | - | - | ||||||||||||||
Balance at December 31, | $ | - | $ | 4,310 | $ | 2,374 | |||||||||||
As of December 31, 2014, the Corporation did not have UTBs recorded on its books. The years 2007 through 2009 were examined by the IRS and disputed issues, primarily related to the disallowance of certain expenses, were taken to administrative appeals during 2011. As a result of a final settlement with the IRS Appeals office during 2014, the Corporation released a portion of its reserve for uncertain tax positions resulting in a tax benefit of $1.8 million and paid $2.5 million to settle the tax liability resulting from the audit. Such settlement did not have an impact on the effective tax rate. | |||||||||||||||||
The Corporation's liability for income taxes includes the estimate of interest not yet paid related to the settlement reached with the IRS to close the tax years 2007 through 2009. The Corporation classifies all interest and penalties, if any, related to tax uncertainties as income tax expense. As of December 31, 2014, the Corporation's accrued interest that relates to the IRS examination amounted to $1.4 million and there was no need to accrue for the payment of penalties. Audit periods remain open for review until the statute of limitations has passed. The statute of limitations under the 2011 PR Code is 4 years; the statutes of limitations for Virgin Islands and U.S. income tax purposes are each three years after a tax return is due or filed, whichever is later. The completion of an audit by the taxing authorities or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Corporation's liability for income taxes. Any such adjustment could be material to results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. For Virgin Islands and U.S. income tax purposes, all tax years subsequent to 2010 remain open to examination. The 2012 tax year is currently under examination by the IRS. For Puerto Rico purposes, all tax years subsequent to 2010 remain open to examination as the Puerto Rico Department of Treasury concluded its examination of the 2010 tax year. | |||||||||||||||||
In 2013, the Puerto Rico Government approved Act No. 40, (“Act 40”), known as the “Tax Burden Adjustment and Redistribution Act,” which amended the 2011 PR Code. One of the main provisions of Act 40 that impacted financial institutions was the national gross receipts tax. The national gross receipts tax for financial institutions is computed on the basis of 1% of gross income, net of allowable exclusions. Subject to certain limitations, a financial institution is able to claim a credit of 0.5% of its gross income against its regular income tax or the alternative minimum tax (“AMT”). The Corporation's national gross receipts tax expense for the year ended December 31, 2014 amounted to $5.7 million compared to $5.9 million recorded for 2013. This expense is included as part of “Taxes, other than income taxes” in the consolidated statement of income (loss). In 2014, the Corporation recorded a $2.9 million benefit related to this credit as a reduction to the provision for income taxes compared to a benefit of $3.0 million recorded in 2013. On December 22, 2014, the Governor of Puerto Rico signed Act No. 238, which amended the 2011 PR Code. Act No. 238 clarifies that the national gross receipts tax will not be applicable to taxable years starting after December 31, 2014. | |||||||||||||||||
LEASE_COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended | ||
Dec. 31, 2014 | |||
Lease Commitments [Abstract] | |||
Lease Commitments [Text Block] | NOTE 25 – LEASE COMMITMENTS | ||
As of December 31, 2014, certain premises are leased with terms expiring through the year 2036. The Corporation has the option to renew or extend certain leases beyond the original term. Some of these leases require the payment of insurance, increases in property taxes, and other incidental costs. As of December 31, 2014, the obligation under various leases is as follows: | |||
Amount | |||
(In thousands) | |||
2015 | $ | 8,683 | |
2016 | 8,097 | ||
2017 | 7,261 | ||
2018 | 6,744 | ||
2019 | 5,936 | ||
2020 and later years | 31,238 | ||
Total | $ | 67,959 | |
Rental expense included in occupancy and equipment expense was $10.6 million in 2014 (2013 - $10.2 million; 2012- $9.7 million). |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
FAIR VALUE [Text Block] | NOTE 26 – FAIR VALUE | |||||||||||||||||||||||
Fair Value Measurement | ||||||||||||||||||||||||
The FASB authoritative guidance for fair value measurement defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This guidance also establishes a fair value hierarchy for classifying financial instruments. The hierarchy is based on whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. Three levels of inputs may be used to measure fair value: | ||||||||||||||||||||||||
Level 1 Valuations of Level 1 assets and liabilities are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 1 assets and liabilities include equity securities that trade in an active exchange market, as well as certain U.S. Treasury and other U.S. government and agency securities and corporate debt securities that are traded by dealers or brokers in active markets. | ||||||||||||||||||||||||
Level 2 Valuations of Level 2 assets and liabilities are based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include (i) mortgage-backed securities for which the fair value is estimated based on the value of identical or comparable assets, (ii) debt securities with quoted prices that are traded less frequently than exchange-traded instruments, and (iii) derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. | ||||||||||||||||||||||||
Level 3 Valuations of Level 3 assets and liabilities are based on unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models for which the determination of fair value requires significant management judgment or estimation. | ||||||||||||||||||||||||
For 2014, there have been no transfers into or out of Level 1, Level 2, or Level 3 of the fair value hierarchy. | ||||||||||||||||||||||||
Financial Instruments Recorded at Fair Value on a Recurring Basis | ||||||||||||||||||||||||
Investment securities available for sale | ||||||||||||||||||||||||
The fair value of investment securities was the market value based on quoted market prices (as is the case with equity securities, Treasury notes, and non-callable U.S. Agency debt securities), when available (Level 1), or market prices for identical or comparable assets (as is the case with MBS and callable U.S. agency debt) that are based on observable market parameters, including benchmark yields, reported trades, quotes from brokers or dealers, issuer spreads, bids, offers and reference data including market research operations (Level 2). Observable prices in the market already consider the risk of nonperformance. If listed prices or quotes are not available, fair value is based upon models that use unobservable inputs due to the limited market activity of the instrument, as is the case with certain private label mortgage-backed securities held by the Corporation (Level 3). | ||||||||||||||||||||||||
Private label MBS are collateralized by fixed-rate mortgages on single-family residential properties in the United States; the interest rate on the securities is variable, tied to 3-month LIBOR and limited to the weighted average coupon of the underlying collateral. The market valuation represents the estimated net cash flows over the projected life of the pool of underlying assets applying a discount rate that reflects market observed floating spreads over LIBOR, with a widening spread based on a nonrated security. The market valuation is derived from a model that utilizes relevant assumptions such as the prepayment rate, default rate, and loss severity on a loan level basis. The Corporation modeled the cash flow from the fixed-rate mortgage collateral using a static cash flow analysis according to collateral attributes of the underlying mortgage pool (i.e., loan term, current balance, note rate, rate adjustment type, rate adjustment frequency, rate caps, and others) in combination with prepayment forecasts obtained from a commercially available prepayment model (ADCO). The variable cash flow of the security is modeled using the 3-month LIBOR forward curve. Loss assumptions were driven by the combination of default and loss severity estimates, taking into account loan credit characteristics (loan-to-value, state, origination date, property type, occupancy, loan purpose, documentation type, debt-to-income ratio, and other) to provide an estimate of default and loss severity. | ||||||||||||||||||||||||
Refer to the table below for further information regarding qualitative information for all assets and liabilities measured at fair value using significant unobservable inputs (Level 3). | ||||||||||||||||||||||||
Derivative instruments | ||||||||||||||||||||||||
The fair value of most of the Corporation's derivative instruments is based on observable market parameters and takes into consideration the credit risk component of paying counterparties when appropriate, except when collateral is pledged. That is, on interest rate swaps, the credit risk of both counterparties is included in the valuation; and, on options and caps, only the seller's credit risk is considered. The derivative instruments, namely swaps and caps, were valued using a discounted cash flow approach using the related LIBOR and swap rate for each cash flow. Derivatives include interest rate swaps used for protection against rising interest rates. For these interest rate swaps, a credit component was not considered in the valuation since the Corporation has fully collateralized with investment securities any mark-to-market loss with the counterparty and, if there were market gains, the counterparty had to deliver collateral to the Corporation. | ||||||||||||||||||||||||
Although most of the derivative instruments are fully collateralized, a credit spread is considered for those that are not secured in full. The cumulative mark-to-market effect of credit risk in the valuation of derivative instruments in 2014, 2013 and 2012 was immaterial. | ||||||||||||||||||||||||
Assets and liabilities measures at fair value on a recurring basis are summarized below: | ||||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
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 : | ||||||||||||||||||||||||
Equity securities | $ | - | $ | - | $ | - | $ | - | $ | 33 | $ | - | $ | - | $ | 33 | ||||||||
U.S. Treasury Securities | 7,499 | - | - | 7,499 | 7,499 | - | - | 7,499 | ||||||||||||||||
Noncallable U.S. agency debt | - | 228,157 | - | 228,157 | - | 200,903 | - | 200,903 | ||||||||||||||||
Callable U.S. agency debt and MBS | - | 1,653,140 | - | 1,653,140 | - | 1,677,651 | - | 1,677,651 | ||||||||||||||||
Puerto Rico government obligations | - | 40,658 | 2,564 | 43,222 | - | 48,904 | 2,426 | 51,330 | ||||||||||||||||
Private label MBS | - | - | 33,648 | 33,648 | - | - | 40,866 | 40,866 | ||||||||||||||||
Derivatives, included in assets: | ||||||||||||||||||||||||
Interest rate swap agreements | - | 33 | - | 33 | - | 162 | - | 162 | ||||||||||||||||
Purchased interest rate cap agreements | - | 6 | - | 6 | - | 58 | - | 58 | ||||||||||||||||
Forward contracts | - | - | - | - | - | 174 | - | 174 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Derivatives, included in liabilities: | ||||||||||||||||||||||||
Interest rate swap agreements | - | 33 | - | 33 | - | 3,965 | - | 3,965 | ||||||||||||||||
Written interest rate cap agreement | - | 6 | - | 6 | - | 58 | - | 58 | ||||||||||||||||
Forward contracts | - | 148 | - | 148 | - | - | - | - | ||||||||||||||||
The table below presents a reconciliation 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, 2014, 2013, and 2012: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Level 3 Instruments Only (In thousands) | Securities Available for Sale (1) | Securities Available for Sale (1) | Securities Available for Sale (1) | |||||||||||||||||||||
Beginning balance | $ | 43,292 | $ | 54,617 | $ | 65,463 | ||||||||||||||||||
Total gain (losses) (realized/unrealized): | ||||||||||||||||||||||||
Included in earnings | -388 | -117 | -2,002 | |||||||||||||||||||||
Included in other comprehensive income | 2,404 | 2,795 | 6,036 | |||||||||||||||||||||
Held-to-maturity investment securities | ||||||||||||||||||||||||
Purchases | 5,123 | - | - | |||||||||||||||||||||
Sales | -4,855 | - | -1,450 | |||||||||||||||||||||
Principal repayments and amortization | -9,364 | -14,003 | -13,430 | |||||||||||||||||||||
Ending balance | $ | 36,212 | $ | 43,292 | $ | 54,617 | ||||||||||||||||||
___________________ | ||||||||||||||||||||||||
-1 | Amounts mostly related to private label mortgage-backed securities. | |||||||||||||||||||||||
The table below presents qualitative information for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of December 31, 2014: | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
(In thousands) | Fair Value | Valuation Technique | Unobservable Input | Range | ||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||
Private label MBS | $ | 33,648 | Discounted cash flows | Discount rate | 14.50% | |||||||||||||||||||
Prepayment rate | 19.89% -100% (Weighted Average 32%) | |||||||||||||||||||||||
Projected Cumulative Loss Rate | 0.64% - 80.0% (Weighted Average 7.9%) | |||||||||||||||||||||||
Puerto Rico Government Obligations | 2,564 | Discounted cash flows | Prepayment rate | 5.61% | ||||||||||||||||||||
Information about Sensitivity to Changes in Significant Unobservable Inputs | ||||||||||||||||||||||||
Private label MBS: The significant unobservable inputs in the valuation include probability of default, the loss severity assumption and prepayment rates. Shifts in those inputs would result in different fair value measurements. Increases in the probability of default, loss severity assumptions, and prepayment rates in isolation would generally result in an adverse effect on the fair value of the instruments. Meaningful and possible shifts of each input were modeled to assess the effect on the fair value estimation. | ||||||||||||||||||||||||
Puerto Rico Government Obligations: The significant unobservable input used in the fair value measurement is the assumed prepayment rate. A significant increase (decrease) in the assumed rate would lead to a higher (lower) fair value estimate. Loss severity and probability of default are not included as significant unobservable variables because the note is guaranteed by the Puerto Rico Housing Finance Authority (“PRHFA”). The PRHFA credit risk is modeled by discounting the cash flows using a curve appropriate to the PRHFA credit rating. | ||||||||||||||||||||||||
The table below summarizes changes in unrealized gains and losses recorded in earnings for the years ended December 31, 2014, 2013, and 2012 for Level 3 assets and liabilities that are still held at the end of each year: | ||||||||||||||||||||||||
Changes in Unrealized Losses (Year Ended December 31, 2014) | Changes in Unrealized Losses (Year Ended December 31, 2013) | Changes in Unrealized Losses (Year Ended December 31, 2012) | ||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Net impairment losses on available-for-sale investment | ||||||||||||||||||||||||
securities (credit component) | $ | -388 | $ | -117 | $ | -2,002 | ||||||||||||||||||
Additionally, fair value is used on a nonrecurring basis to evaluate certain assets in accordance with GAAP. Adjustments to fair value usually result from the application of lower-of-cost or market accounting (e.g., loans held for sale carried at the lower-of-cost or fair value and repossessed assets) or write-downs of individual assets (e.g., goodwill, loans). | ||||||||||||||||||||||||
As of December 31, 2014, impairment or valuation adjustments were recorded for assets recognized at fair value on a non-recurring basis as shown in the following table: | ||||||||||||||||||||||||
Carrying value as of December 31, 2014 | (Losses) Gain recorded for the Year Ended December 31, 2014 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Loans receivable (1) | $ | - | $ | - | $ | 446,816 | $ | -43,318 | ||||||||||||||||
OREO (2) | - | - | 124,003 | -9,656 | ||||||||||||||||||||
Mortgage servicing rights (3) | - | - | 22,838 | -228 | ||||||||||||||||||||
Loans Held for Sale (4) | - | - | 54,641 | - | ||||||||||||||||||||
-1 | Mainly impaired commercial and construction loans. The impairment was generally measured based on the fair value of the | |||||||||||||||||||||||
collateral. The fair values were derived from external appraisals that take 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 fair value was derived from appraisals that take 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. | ||||||||||||||||||||||||
-3 | Fair value adjustments to mortgage servicing rights were mainly due to assumptions associated with mortgage | |||||||||||||||||||||||
prepayment rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at | ||||||||||||||||||||||||
fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate | ||||||||||||||||||||||||
9.74%, Discount rate 10.60%. | ||||||||||||||||||||||||
-4 | The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans, and for | |||||||||||||||||||||||
loans with signed sale agreements, the value was determined based on the sales price on such agreements. | ||||||||||||||||||||||||
As of December 31, 2013, impairment or valuation adjustments were recorded for assets recognized at fair value on a nonrecurring basis as shown in the following table: | ||||||||||||||||||||||||
Carrying value as of December 31, 2013 | (Losses) Gain recorded for the Year Ended December 31, 2013 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Loans receivable (1) | $ | - | $ | - | $ | 465,191 | $ | -13,928 | ||||||||||||||||
OREO (2) | - | - | 160,193 | -25,698 | ||||||||||||||||||||
Mortgage servicing rights (3) | - | - | 21,987 | 460 | ||||||||||||||||||||
Loans Held For Sale (4) | - | - | 54,801 | -338 | ||||||||||||||||||||
-1 | Mainly impaired commercial and construction loans. The impairment was generally measured based on the fair value of the | |||||||||||||||||||||||
collateral. The fair values were derived from external appraisals that take 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 fair value was derived from appraisals that take 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. | ||||||||||||||||||||||||
-3 | Fair value adjustments to the mortgage servicing rights were mainly due to assumptions associated with mortgage prepayments | |||||||||||||||||||||||
rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non- | ||||||||||||||||||||||||
recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate 8.90%, Discount rate 10.60%. | ||||||||||||||||||||||||
-4 | The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans, and for loans | |||||||||||||||||||||||
with signed sale agreements, the value was determined based on the sales price on such agreements. | ||||||||||||||||||||||||
As of December 31, 2012, impairment or valuation adjustments were recorded for assets recognized at fair value on a nonrecurring basis as shown in the following table: | ||||||||||||||||||||||||
Carrying value as of December 31, 2012 | (Losses) Gain recorded for the Year Ended December 31, 2012 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Loans receivable (1) | $ | - | $ | - | $ | 757,152 | $ | -110,457 | ||||||||||||||||
OREO (2) | - | - | 185,764 | -8,851 | ||||||||||||||||||||
Mortgage servicing rights (3) | - | - | 17,524 | -394 | ||||||||||||||||||||
Loans Held For Sale (4) | - | - | 2,641 | -2,168 | ||||||||||||||||||||
-1 | Mainly impaired commercial and construction loans. The impairment was generally measured based on the fair value of the | |||||||||||||||||||||||
collateral. The fair values were derived from external appraisals that take 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 fair value was derived from appraisals that take 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. | ||||||||||||||||||||||||
-3 | Fair value adjustments to the mortgage servicing rights were mainly due to assumptions associated with mortgage prepayments | |||||||||||||||||||||||
rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring | ||||||||||||||||||||||||
basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate 11.15%, Discount rate 12.08%. | ||||||||||||||||||||||||
-4 | Relates to $5.2 million Commercial and Industrial and Commercial Mortgage Loans transferred to held for sale during the fourth | |||||||||||||||||||||||
quarter of 2012, which were recorded at a value of $2.6 million. | ||||||||||||||||||||||||
Qualitative information regarding the fair value measurements for Level 3 financial instruments are as follows: | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||
Mortgage servicing rights | Discounted Cash Flows | Weighted average prepayment rate of 9.74%; weighted average discount rate of 10.60% | ||||||||||||||||||||||
The following is a description of the valuation methodologies used for instruments that are not measured or reported at fair value on a recurring basis or reported at fair value on a non-recurring basis. The estimated fair value was calculated using certain facts and assumptions, which vary depending on the specific financial instrument. | ||||||||||||||||||||||||
Cash and due from banks and money market investments | ||||||||||||||||||||||||
The carrying amounts of cash and due from banks and money market investments are reasonable estimates of their fair value. Money market investments include held-to-maturity securities, which have a contractual maturity of three months or less. The fair value of these securities is based on quoted market prices in active markets that incorporate the risk of nonperformance. | ||||||||||||||||||||||||
Other equity securities | ||||||||||||||||||||||||
Equity or other securities that do not have a readily available fair value are stated at their net realizable value, which management believes is a reasonable proxy for their fair value. This category is principally composed of stock that is owned by the Corporation to comply with FHLB regulatory requirements. The realizable value of the FHLB stock equals its cost as this stock can be freely redeemed at par. | ||||||||||||||||||||||||
Loans receivable, including loans held for sale | ||||||||||||||||||||||||
The fair value of loans held for investment and of mortgage loans held for sale was estimated using discounted cash flow analyses, based on interest rates currently being offered for loans with similar terms and credit quality and with adjustments that the Corporation's management believes a market participant would consider in determining fair value. Loans were classified by type, such as commercial, residential mortgage, and automobile. These asset categories were further segmented into fixed-and adjustable-rate categories. Valuations are carried out based on categories and not on a loan-by-loan basis. The fair values of performing fixed-rate and adjustable-rate loans were calculated by discounting expected cash flows through the estimated maturity date. This fair value is not currently an indication of an exit price as that type of assumption could result in a different fair value estimate. The fair value of credit card loans was estimated using a discounted cash flow method and excludes any value related to a customer account relationship. Other loans with no stated maturity, like credit lines, were valued at book value. Prepayment assumptions were considered for non-residential loans. For residential mortgage loans, prepayment estimates were based on a prepayments model that combined both a historical calibration and current market prepayment expectations. Discount rates were based on the U.S. Treasury and LIBOR/Swap Yield Curves at the date of the analysis, and included appropriate adjustments for expected credit losses and liquidity. For impaired collateral dependent loans, the impairment was primarily measured based on the fair value of the collateral, which is derived from appraisals that take into consideration prices in observable transactions involving similar assets in similar locations. The market valuation of the loans acquired from Doral in the second quarter of 2014 was derived from a model that utilizes relevant assumptions such as prepayment rate, default rate, and loss severity on a loan level basis. The cash flows were modeled using a static cash flow analysis discounted by yields observed in the secondary market and in combination with prepayment forecasts. Loss assumptions were driven by a combination of default and loss severity estimates, taking into account loan credit characteristics (loan-to-value, Puerto Rico market, loan type, delinquency status, loan terms, and other), with higher default rates applied to loans acquired with evidence of credit deterioration. | ||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||
The estimated fair value of demand deposits and savings accounts, which are deposits with no defined maturities, equals the amount payable on demand at the reporting date. The fair values of retail fixed-rate time deposits, with stated maturities, are based on the present value of the future cash flows expected to be paid on the deposits. The cash flows were based on contractual maturities; no early repayments were assumed. Discount rates were based on the LIBOR yield curve. | ||||||||||||||||||||||||
The estimated fair value of total deposits excludes the fair value of core deposit intangibles, which represent the value of the customer relationship measured by the value of demand deposits and savings deposits that bear a low or zero rate of interest and do not fluctuate in response to changes in interest rates. The fair value of brokered CDs, which are included within deposits, is determined using discounted cash flow analyses over the full term of the CDs. | ||||||||||||||||||||||||
The fair value of the CDs is computed using the outstanding principal amount. The discount rates used were based on brokered CD market rates as of the end of the year. The fair value does not incorporate the risk of nonperformance, since interests in brokered CDs are generally sold by brokers in amounts of less than $250,000 and, therefore, insured by the FDIC. | ||||||||||||||||||||||||
Securities sold under agreements to repurchase | ||||||||||||||||||||||||
Some repurchase agreements reprice at least quarterly, and their outstanding balances are estimated to be their fair value. Where longer commitments are involved, fair value is estimated using exit price indications of the cost of unwinding the transactions as of the end of the reporting period. The brokers who are the counterparties provide these indications. Securities sold under agreements to repurchase are fully collateralized by investment securities. | ||||||||||||||||||||||||
Advances from FHLB | ||||||||||||||||||||||||
The fair value of advances from the FHLB with fixed maturities is determined using discounted cash flow analyses over the full term of the borrowings, using indications of the fair value of similar transactions. The cash flows assume no early repayment of the borrowings. Discount rates are based on the LIBOR yield curve. Advances from the FHLB are fully collateralized by mortgage loans and, to a lesser extent, investment securities. | ||||||||||||||||||||||||
Other borrowings | ||||||||||||||||||||||||
Other borrowings consist of junior subordinated debentures. Projected cash flows from the debentures were discounted using the Bloomberg BB Finance curve plus a credit spread. This credit spread was estimated using the difference in yield curves between swap rates and a yield curve that considers the industry and credit rating of the Corporation as issuer of the note at a tenor comparable to the time to maturity of the debentures. | ||||||||||||||||||||||||
The following table presents the estimated fair value and carrying value of financial instruments as of December 31, 2014 and 2013: | ||||||||||||||||||||||||
Total Carrying Amount in Statement of Financial Condition December 31, 2014 | Fair Value Estimate December 31, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and due from banks and money | ||||||||||||||||||||||||
market investments | $ | 796,108 | $ | 796,108 | $ | 796,108 | $ | - | $ | - | ||||||||||||||
Investment securities available | ||||||||||||||||||||||||
for sale | 1,965,666 | 1,965,666 | 7,499 | 1,921,955 | 36,212 | |||||||||||||||||||
Other equity securities | 25,752 | 25,752 | - | 25,752 | - | |||||||||||||||||||
Loans held for sale | 76,956 | 77,888 | - | 23,247 | 54,641 | |||||||||||||||||||
Loans, held for investment | 9,262,436 | |||||||||||||||||||||||
Less: allowance for loan and lease losses | -222,395 | |||||||||||||||||||||||
Loans held for investment, net of | ||||||||||||||||||||||||
allowance | $ | 9,040,041 | 8,844,659 | - | - | 8,844,659 | ||||||||||||||||||
Derivatives included in assets | 39 | 39 | - | 39 | - | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Deposits | 9,483,945 | 9,486,325 | - | 9,486,325 | - | |||||||||||||||||||
Securities sold under agreements to | ||||||||||||||||||||||||
repurchase | 900,000 | 958,715 | - | 958,715 | - | |||||||||||||||||||
Advances from FHLB | 325,000 | 324,376 | - | 324,376 | - | |||||||||||||||||||
Other borrowings | 231,959 | 162,344 | - | - | 162,344 | |||||||||||||||||||
Derivatives included in liabilities | 187 | 187 | - | 187 | - | |||||||||||||||||||
Total Carrying Amount in Statement of Financial Condition December 31, 2013 | Fair Value Estimate December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and due from banks and money | ||||||||||||||||||||||||
market investments | $ | 655,671 | $ | 655,671 | $ | 655,671 | $ | - | $ | - | ||||||||||||||
Investment securities available | ||||||||||||||||||||||||
for sale | 1,978,282 | 1,978,282 | 7,532 | 1,927,458 | 43,292 | |||||||||||||||||||
Other equity securities | 28,691 | 28,691 | - | 28,691 | - | |||||||||||||||||||
Loans held for sale | 75,969 | 76,684 | - | 21,883 | 54,801 | |||||||||||||||||||
Loans, held for investment | 9,636,170 | |||||||||||||||||||||||
Less: allowance for loan and lease | ||||||||||||||||||||||||
losses | -285,858 | |||||||||||||||||||||||
Loans held for investment, net of | ||||||||||||||||||||||||
allowance | $ | 9,350,312 | 9,127,234 | - | - | 9,127,234 | ||||||||||||||||||
Derivatives included in assets | 394 | 394 | - | 394 | - | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Deposits | 9,879,924 | 9,898,615 | - | 9,898,615 | - | |||||||||||||||||||
Securities sold under agreements to | ||||||||||||||||||||||||
repurchase | 900,000 | 976,151 | - | 976,151 | - | |||||||||||||||||||
Advances from FHLB | 300,000 | 297,523 | - | 297,523 | - | |||||||||||||||||||
Other borrowings | 231,959 | 106,772 | - | - | 106,772 | |||||||||||||||||||
Derivatives included in liabilities | 4,023 | 4,023 | - | 4,023 | - |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION [Text Block] | NOTE 27 – SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||
Supplemental cash flow information is as follows: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Cash paid for: | ||||||||||
Interest on borrowings | $ | 102,402 | $ | 119,312 | $ | 164,364 | ||||
Income tax | 7,751 | 4,447 | 8,603 | |||||||
Non-cash investing and financing activities: | ||||||||||
Additions to other real estate owned | 48,601 | 104,144 | 169,432 | |||||||
Additions to auto and other repossessed assets | 92,266 | 69,069 | 48,910 | |||||||
Capitalization of servicing assets | 4,321 | 7,649 | 6,348 | |||||||
Loan securitizations | 198,712 | 355,506 | 239,766 | |||||||
Loans held for investment transferred to held for sale | - | 181,620 | 2,641 | |||||||
Property plant and equipment transferred to other assets | - | 2,225 | - | |||||||
Preferred stock exchanged for new common stock issued: | ||||||||||
Preferred stock exchanged (Series A through E) | 26,022 | - | - | |||||||
New common stock issued | 24,363 | - | - | |||||||
Loans sold to CPG/GS in exchange for an acquisition loan and an | ||||||||||
Reclassification of held-to-maturity investment securities to | ||||||||||
REGULATORY_MATTERS_COMMITMENTS
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES [Text Block] | NOTE 28 – REGULATORY MATTERS, COMMITMENTS, AND CONTINGENCIES | ||||||||||||||||||||||||||||||||
The Corporation is subject to various regulatory capital requirements imposed by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation must meet specific capital guidelines that involve quantitative measures of the Corporation's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Corporation's capital amounts and classifications are also subject to qualitative judgment and adjustment by the regulators with respect to minimum capital requirements, components, risk weightings, and other factors. | |||||||||||||||||||||||||||||||||
Capital standards established by regulations require the Corporation to maintain minimum amounts and ratios for Leverage (Tier 1 capital to average total assets) and ratios of Tier 1 Capital to Risk-Weighted Assets and Total Capital to Risk-Weighted Assets as defined in the regulations. The total amount of risk-weighted assets is computed by applying risk-weighting factors to the Corporation's assets and certain off-balance sheet items, which generally vary from 0% to 100% depending on the nature of the asset. As discussed below in this note, the regulatory capital requirements changed on January 1, 2015. | |||||||||||||||||||||||||||||||||
Effective June 2, 2010, FirstBank, by and through its Board of Directors, entered into a Consent Order (the “FDIC Order”) with the FDIC and OCIF. The FDIC Order provides for various things, including (among other things) the following: (1) having and retaining qualified management; (2) increased participation in the affairs of FirstBank by its Board of Directors; (3) development and implementation by FirstBank of a capital plan to attain a leverage ratio of at least 8%, a Tier 1 risk-based capital ratio of at least 10% and a total risk-based capital ratio of at least 12%; (4) adoption and implementation of strategic, liquidity, and fund management and profit and budget plans and related projects within certain timetables set forth in the FDIC Order and on an ongoing basis; (5) adoption and implementation of plans for reducing FirstBank's positions in certain classified assets and delinquent and non-accrual loans within timeframes set forth in the FDIC Order; (6) refraining from lending to delinquent or classified borrowers already obligated to FirstBank on any extensions of credit so long as such credit remains uncollected, except where FirstBank's failure to extend further credit to a particular borrower would be detrimental to the best interests of FirstBank, and any such additional credit is approved by FirstBank's Board of Directors; (7) refraining from accepting, increasing, renewing, or rolling over brokered CDs without the prior written approval of the FDIC; (8) establishment of a comprehensive policy and methodology for determining the allowance for loan and lease losses and the review and revision of FirstBank's loan policies, including the non-accrual policy; and (9) adoption and implementation of adequate and effective programs of independent loan review, appraisal compliance, and an effective policy for managing FirstBank's sensitivity to interest rate risk. The foregoing summary is not complete and is qualified in all respects by reference to the actual language of the FDIC Order. Although all of FirstBank's regulatory capital ratios exceeded the minimum capital ratios for “well-capitalized” levels, as well as the minimum capital ratios required by the FDIC Order, as of December 31, 2014, FirstBank cannot be treated as a “well-capitalized” institution under regulatory guidance while operating under the FDIC Order. | |||||||||||||||||||||||||||||||||
Effective June 3, 2010, First BanCorp. entered into the Written Agreement with the New York FED. The Written Agreement provides, among other things, that the holding company must serve as a source of strength to FirstBank, and that, except with the consent generally of the New York FED and the Federal Reserve Board, (1) the holding company may not pay dividends to stockholders or receive dividends from FirstBank, (2) the holding company and its nonbank subsidiaries may not make payments on trust-preferred securities or subordinated debt, and (3) the holding company cannot incur, increase, or guarantee debt or repurchase any capital securities. The Written Agreement also requires that the holding company submit a capital plan that reflects sufficient capital at First BanCorp. on a consolidated basis, which must be acceptable to the New York FED, and follow certain guidelines with respect to the appointment or change in responsibilities of senior officers. The foregoing summary is not complete and is qualified in all respects by reference to the actual language of the Written Agreement. | |||||||||||||||||||||||||||||||||
The Corporation submitted its Capital Plan setting forth how it plans to improve capital positions to comply with the FDIC Order and the Written Agreement over time. | |||||||||||||||||||||||||||||||||
In addition to the Capital Plan, the Corporation submitted to its regulators a liquidity and brokered CD plan, including a contingency funding plan, a non-performing asset reduction plan, a budget and profit plan, a strategic plan, and a plan for the reduction of classified and special mention assets. As of December 31, 2014, the Corporation had completed all of the items included in the Capital Plan and is continuing to work on reducing non-performing loans. The Regulatory Agreements also require the submission to the regulators of quarterly progress reports. | |||||||||||||||||||||||||||||||||
The FDIC Order imposes no other restrictions on FirstBank's products or services offered to customers, nor does it or the Written Agreement impose any type of penalties or fines upon FirstBank or the Corporation. Concurrent with the FDIC Order, the FDIC has granted FirstBank temporary waivers to enable it to continue accessing the brokered CD market through March 31, 2015. FirstBank will request approvals for future periods, although no assurance can be given that future approvals will be given. | |||||||||||||||||||||||||||||||||
In July 2013, U.S. banking regulators approved a revised regulatory capital framework for U.S. banking organizations (the “Basel III rules”) that is based on international regulatory capital requirements adopted by the Basel Committee on Banking Supervision over the past several years. The Basel III rules introduce new minimum capital ratios and capital conservation buffer requirements, change the composition of regulatory capital, require a number of new adjustments to and deductions from regulatory capital, and introduce a new “Standardized Approach” for the calculation of risk-weighted assets that will replace the risk-weighting requirements under the current U.S. regulatory capital rules. The new minimum regulatory capital requirements and the Standardized Approach for the calculation of risk-weighted assets became effective for the Corporation and FirstBank on January 1, 2015. The capital conservation buffer requirements, and the regulatory capital adjustments and deductions under the Basel III rules will be phased-in over several years ending on December 31, 2018. | |||||||||||||||||||||||||||||||||
Basel III rules introduce a new and separate ratio of Common Equity Tier 1 capital (“CET1”) to risk-weighted assets. CET1, a narrower subcomponent of total Tier 1 capital, generally consists of common stock and related surplus, retained earnings, accumulated other comprehensive income, and qualifying minority interests. Certain banking organizations, however, including the Corporation and FirstBank, will be allowed to make a one-time permanent election in early 2015 to exclude AOCI items. The Corporation and FirstBank expect to make this election in order to avoid significant variations in the level of capital depending upon the impact of interest rate fluctuations on the fair value of the securities portfolio. In addition, the Basel III rules also will require the Corporation to maintain an additional CET1 capital conservation buffer of 2.5%. Under the rules, the Corporation will be required to maintain: (i) a minimum CET1 to risk-weighted assets ratio of at least 4.5%, plus the 2.5% “capital conservation buffer,” resulting in a required minimum CET1 ratio of at least 7% upon full implementation, (ii) a minimum ratio of total Tier 1 capital to risk-weighted assets of at least 6.0%, plus the 2.5% capital conservation buffer, resulting in a required minimum Tier 1 capital ratio of 8.5% upon full implementation, (iii) a minimum ratio of total Tier 1 plus Tier 2 capital to risk-weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer, resulting in a required minimum total capital ratio of 10.5% upon full implementation, and (iv) a required minimum leverage ratio of 4% (as contrasted to the legacy 3% requirement), calculated as the ratio of Tier 1 capital to average on-balance sheet (non-risk adjusted) assets. The new basis minimum risk-based and leverage capital requirements were effective for the Corporation on January 1, 2015. The phase-in of the capital conservation buffer will begin on January 1, 2016 with a first year requirement of 0.625% of additional CET1, which will be progressively increased over a four-year period, increasing by that same percentage amount on each subsequent January 1 until it reaches the fully-phased in 2.5% CET1 requirement on January 1, 2019. | |||||||||||||||||||||||||||||||||
In addition, the Basel III rules require a number of new deductions from and adjustments to CET1, including deductions from CET1 for mortgage servicing rights, and deferred tax assets dependent upon future taxable income; these adjustments generally will be phased in over a four-year period beginning on January 1, 2015. In the case of mortgage servicing assets and deferred tax assets attributable to temporary differences, among others, these items would be required to be deducted to the extent that any one such category exceeds 10% of CET1 or all such categories in the aggregate exceed 15% of CET1. | |||||||||||||||||||||||||||||||||
In addition, the Federal Reserve Board's Basel III rules require that certain non-qualifying capital instruments, including cumulative preferred stock and Trust preferred securities (“TRuPs”), be excluded from Tier 1 capital. In general, banking organizations such as the Corporation and the Bank, that are not advanced approaches banks, must begin to phase out TRuPs from Tier 1 capital on January 1, 2015. The Corporation will be allowed to include 25% of the $225 million outstanding qualifying TRuPs as Tier 1 capital in 2015 and the TRuPs must be fully phased out from Tier 1 capital by January 1, 2016. However, the Corporation's TRuPs may continue to be included in Tier 2 capital until the instruments are redeemed or mature. | |||||||||||||||||||||||||||||||||
The Basel III rules also revise the “prompt corrective action” (“PCA”) regulations that apply to depository institutions, including FirstBank, pursuant to Section 38 of the Federal Deposit Insurance Act by (i) introducing a separate CET1 ratio requirement for each PCA capital category (other than critically undercapitalized) with the required CET1 ratio being 6.5% for well-capitalized status; (ii) increasing the minimum Tier 1 capital ratio requirement for each PCA capital category with the minimum Tier 1 capital ratio for well-capitalized status being 8% (as compared to the current 6%); and (iii) eliminating the current provision that allows a bank with a composite supervisory rating of 1 to have a 3% leverage ratio and still be adequately capitalized and maintaining the minimum leverage ratio for well-capitalized status at 5%. The Basel III rules do not change the total risk-based capital requirement (10% for well-capitalized status) for any PCA capital category. The new PCA requirements became effective on January 1, 2015. | |||||||||||||||||||||||||||||||||
Under the legacy Federal Reserve Board risk based capital requirements, a bank holding company's assets are adjusted to take into account different risk characteristics, with the categories generally ranging from 0% (requiring no additional capital) for assets such as cash to 100% assets, including commercial mortgage loans, commercial and industrial loans, and consumer loans. Off-balance sheet items also are adjusted to take into account certain risk characteristics. The Basel III rules supersede this framework and establish a “standardized approach” for risk-weightings that expands the risk-weighting categories from the four major risk-weighting categories under the current regulatory capital rules (0%, 20%, 50%, and 100%) to a much larger and more risk-sensitive number of categories, depending on the nature of the assets. In a number of cases, the Standardized Approach will result in higher risk weights for a variety of asset categories. Specific changes to the risk-weightings of assets under the current regulatory capital rules include, among other things: (i) applying a 150% risk weight instead of a 100% risk weight for certain high volatility commercial real estate acquisition, development and construction loans, (ii) assigning a 150% risk weight to exposures that are 90 days past due (other than qualifying residential mortgage exposures, which remain at an assigned risk-weighting of 100%), and (iii) establishing a 20% credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable, in contrast to the 0% risk-weighting under the prior rules. | |||||||||||||||||||||||||||||||||
The Corporation's and its banking subsidiary's regulatory capital positions as of December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||||
Regulatory Requirements | |||||||||||||||||||||||||||||||||
Actual | For Capital Adequacy Purposes | To be Well-Capitalized-Regular Thresholds | Consent Order Capital requirements | ||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
At December 31, 2014 | |||||||||||||||||||||||||||||||||
Total Capital (to | |||||||||||||||||||||||||||||||||
Risk-Weighted Assets) | |||||||||||||||||||||||||||||||||
First BanCorp. | $ | 1,748,120 | 19.70% | $ | 709,723 | 8% | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
FirstBank | $ | 1,717,432 | 19.37% | $ | 709,395 | 8% | $ | 886,744 | 10% | $ | 1,064,093 | 12% | |||||||||||||||||||||
Tier I Capital (to | |||||||||||||||||||||||||||||||||
Risk-Weighted Assets) | |||||||||||||||||||||||||||||||||
First BanCorp. | $ | 1,636,004 | 18.44% | $ | 354,861 | 4% | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
FirstBank | $ | 1,605,367 | 18.10% | $ | 354,698 | 4% | $ | 532,046 | 6% | $ | 886,744 | 10% | |||||||||||||||||||||
Leverage ratio | |||||||||||||||||||||||||||||||||
First BanCorp. | $ | 1,636,004 | 13.27% | $ | 493,159 | 4% | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
FirstBank | $ | 1,605,367 | 13.04% | $ | 492,468 | 4% | $ | 615,585 | 5% | $ | 984,937 | 8% | |||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||||||
Total Capital (to | |||||||||||||||||||||||||||||||||
Risk-Weighted Assets) | |||||||||||||||||||||||||||||||||
First BanCorp. | $ | 1,604,548 | 17.06% | $ | 752,464 | 8% | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
FirstBank | $ | 1,567,232 | 16.67% | $ | 751,978 | 8% | $ | 939,972 | 10% | $ | 1,127,966 | 12% | |||||||||||||||||||||
Tier I Capital (to | |||||||||||||||||||||||||||||||||
Risk-Weighted Assets) | |||||||||||||||||||||||||||||||||
First BanCorp. | $ | 1,484,490 | 15.78% | $ | 376,232 | 4% | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
FirstBank | $ | 1,447,262 | 15.40% | $ | 375,989 | 4% | $ | 563,983 | 6% | $ | 939,972 | 10% | |||||||||||||||||||||
Leverage ratio | |||||||||||||||||||||||||||||||||
First BanCorp. | $ | 1,484,490 | 11.71% | $ | 506,878 | 4% | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
FirstBank | $ | 1,447,262 | 11.44% | $ | 506,210 | 4% | $ | 632,763 | 5% | $ | 1,012,420 | 8% | |||||||||||||||||||||
The following table presents a detail of commitments to extend credit and standby letters of credit, and commitments to sell loans: | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Financial instruments whose contract amounts represent credit risk: | |||||||||||||||||||||||||||||||||
Commitments to extend credit: | |||||||||||||||||||||||||||||||||
Construction undisbursed funds | $ | 76,235 | $ | 65,184 | |||||||||||||||||||||||||||||
Unused personal lines of credit | 682,994 | 735,331 | |||||||||||||||||||||||||||||||
Commercial lines of credit | 383,015 | 386,941 | |||||||||||||||||||||||||||||||
Commercial letters of credit | 38,555 | 41,081 | |||||||||||||||||||||||||||||||
Standby letters of credit | 3,791 | 10,527 | |||||||||||||||||||||||||||||||
Commitments to sell loans | 129,369 | 123,925 | |||||||||||||||||||||||||||||||
The Corporation's exposure to credit loss in the event of nonperformance by the other party to the financial instrument on commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. Management uses the same credit policies and approval process in entering into commitments and conditional obligations as it does for on-balance sheet instruments. | |||||||||||||||||||||||||||||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses. Since certain commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. For most of the commercial lines of credit, the Corporation has the option to reevaluate the agreement prior to additional disbursements. In the case of credit cards and personal lines of credit, the Corporation can cancel the unused credit facility at any time and without cause. Generally, the Corporation's mortgage banking activities do not enter into interest rate lock agreements with prospective borrowers. The amount of any collateral obtained if deemed necessary by the Corporation upon an extension of credit is based on management's credit evaluation of the borrower. Rates charged on loans that are finally disbursed are the rates being offered at the time the loans are closed; therefore, no fee is charged on these commitments. | |||||||||||||||||||||||||||||||||
In general, commercial and standby letters of credit are issued to facilitate foreign and domestic trade transactions. Normally, commercial and standby letters of credit are short-term commitments used to finance commercial contracts for the shipment of goods. The collateral for these letters of credit includes cash or available commercial lines of credit. The fair value of commercial and standby letters of credit is based on the fees currently charged for such agreements, which, as of December 31, 2014 and 2013, was not significant. | |||||||||||||||||||||||||||||||||
The Corporation obtained from GNMA commitment authority to issue GNMA mortgage-backed securities. Under this program, for 2014, the Corporation securitized approximately $198.7 million of FHA/VA mortgage loan production into GNMA mortgage-backed securities. | |||||||||||||||||||||||||||||||||
As of December 31, 2014, First BanCorp. and its subsidiaries were defendants in various legal proceedings arising in the ordinary course of business. Management believes that the final disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, individually or in the aggregate, on the Corporation's financial position, results of operations or cash flows. | |||||||||||||||||||||||||||||||||
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Text Block] | NOTE 29 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||||||
One of the market risks facing the Corporation is interest rate risk, which includes the risk that changes in interest rates will result in changes in the value of the Corporation's assets or liabilities and the risk that net interest income from its loan and investment portfolios will be adversely affected by changes in interest rates. The overall objective of the Corporation's interest rate risk management activities is to reduce the variability of earnings caused by changes in interest rates. | |||||||||||||||||
The Corporation designates a derivative as a fair value hedge, a cash flow hedge or an economic undesignated hedge when it enters into the derivative contract. As of December 31, 2014 and 2013, all derivatives held by the Corporation were considered economic undesignated hedges. These undesignated hedges are recorded at fair value with the resulting gain or loss recognized in current earnings. | |||||||||||||||||
The following summarizes the principal derivative activities used by the Corporation in managing interest rate risk: | |||||||||||||||||
Interest rate cap agreements - Interest rate cap agreements provide the right to receive cash if a reference interest rate rises above a contractual rate. The value increases as the reference interest rate rises. The Corporation enters into interest rate cap agreements for protection from rising interest rates. | |||||||||||||||||
Interest rate swaps - Interest rate swap agreements generally involve the exchange of fixed and floating-rate interest payment obligations without the exchange of the underlying notional principal amount. As of December 31, 2014 and 2013, most of the interest rate swaps outstanding are used for protection against rising interest rates. Similar to unrealized gains and losses arising from changes in fair value, net interest settlements on interest rate swaps are recorded as an adjustment to interest income or interest expense depending on whether an asset or liability is being economically hedged. | |||||||||||||||||
Forward Contracts - Forward contracts are sales of to-be-announced (“TBA”) mortgage-backed securities that will settle over the standard delivery date and do not qualify as “regular way” security trades. Regular-way security trades are contracts that have no net settlement provision and no market mechanism to facilitate net settlement and that provide for delivery of a security within the time generally established by regulations or conventions in the market place or exchange in which the transaction is being executed. The forward sales are considered derivative instruments that need to be marked to market. These securities are used to economically hedge the FHA/VA residential mortgage loan securitizations of the mortgage-banking operations. Unrealized gains (losses) are recognized as part of mortgage banking activities in the consolidated statement of income (loss). | |||||||||||||||||
To satisfy the needs of its customers, the Corporation may enter into nonhedging transactions. On these transactions, generally, the Corporation participates as a buyer in one of the agreements and as a seller in the other agreement under the same terms and conditions. | |||||||||||||||||
In addition, the Corporation enters into certain contracts with embedded derivatives that do not require separate accounting as these are clearly and closely related to the economic characteristics of the host contract. When the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, it is bifurcated, carried at fair value, and designated as a trading or nonhedging derivative instrument. | |||||||||||||||||
The following table summarizes the notional amounts of all derivative instruments: | |||||||||||||||||
Notional Amounts | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Undesignated economic hedges: | (In thousands) | ||||||||||||||||
Interest rate contracts: | |||||||||||||||||
Interest rate swap agreements | $ | 5,440 | $ | 31,080 | |||||||||||||
Written interest rate cap agreements | 37,132 | 38,391 | |||||||||||||||
Purchased interest rate cap agreements | 37,132 | 38,391 | |||||||||||||||
Forward Contracts: | |||||||||||||||||
Sale of TBA GNMA MBS pools | 19,000 | 25,000 | |||||||||||||||
$ | 98,704 | $ | 132,862 | ||||||||||||||
Notional amounts are presented on a gross basis with no netting of offsetting exposure positions. | |||||||||||||||||
The following table summarizes the fair value of derivative instruments and the location of the derivative instruments in the statement of financial condition: | |||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||
Statement of | December 31, | December 31, | Statement of Financial Condition Location | December 31, | December 31, | ||||||||||||
Financial | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Condition Location | Fair Value | Fair Value | Fair Value | Fair Value | |||||||||||||
(In thousands) | |||||||||||||||||
Undesignated economic hedges: | |||||||||||||||||
Interest rate contracts: | |||||||||||||||||
Interest rate swap agreements | Other assets | $ | 33 | $ | 162 | Accounts payable and other liabilities | $ | 33 | $ | 3,965 | |||||||
Written interest rate cap agreements | Other assets | - | - | Accounts payable and other liabilities | 6 | 58 | |||||||||||
Purchased interest rate cap agreements | Other assets | 6 | 58 | Accounts payable and other liabilities | - | - | |||||||||||
Forward Contracts: | |||||||||||||||||
Sales of TBA GNMA MBS pools | Other assets | - | 174 | Accounts payable and other liabilities | 148 | - | |||||||||||
$ | 39 | $ | 394 | $ | 187 | $ | 4,023 | ||||||||||
The following table summarizes the effect of derivative instruments on the statement of income (loss): | |||||||||||||||||
Location of Gain (or loss) | Gain (or Loss) Year ended | ||||||||||||||||
Recognized in Income on | December 31, | ||||||||||||||||
Derivatives | 2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Undesignated economic hedges: | |||||||||||||||||
Interest rate contracts: | |||||||||||||||||
Interest rate swap agreements | Interest income - Loans | $ | 1,258 | $ | 1,685 | $ | 901 | ||||||||||
Written and purchased interest rate cap agreements | Interest income - Loans | - | 10 | - | |||||||||||||
Embedded written and purchased options on stock | Interest expense - Notes payable and other | ||||||||||||||||
Forward contracts: | |||||||||||||||||
Sales of TBA GNMA MBS pools | Mortgage Banking Activities | -322 | 176 | 166 | |||||||||||||
Total gain on derivatives | $ | 936 | $ | 1,871 | $ | 1,067 | |||||||||||
Derivative instruments, such as interest rate swaps, are subject to market risk. As is the case with investment securities, the market value of derivative instruments is largely a function of the financial market's expectations regarding the future direction of interest rates. Accordingly, current market values are not necessarily indicative of the future impact of derivative instruments on earnings. This will depend, for the most part, on the shape of the yield curve, the level of interest rates, as well as the expectations for rates in the future. | |||||||||||||||||
In the fourth quarter of 2014, the Corporation collected a $2.5 million contractual prepayment penalty on a commercial mortgage loan paid by the borrower to compensate for the economic loss sustained by the Corporation in the early termination of an interest rate swap agreement that provided an economic hedge of the cash flows associated with this loan. Such loss equals the mark-to-market unrealized losses recorded by the Corporation in prior periods for the terminated interest rate swap. | |||||||||||||||||
A summary of interest rate swaps is as follows: | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Pay fixed/receive floating: | |||||||||||||||||
Notional amount | $ | 5,440 | $ | 31,080 | |||||||||||||
Weighted average receive rate at period-end | 2.03% | 1.85% | |||||||||||||||
Weighted average pay rate at period-end | 3.45% | 6.77% | |||||||||||||||
As of December 31, 2014, the Corporation has not entered into any derivative instrument containing credit-risk-related contingent features. | |||||||||||||||||
Credit and Market Risk of Derivatives | |||||||||||||||||
The Corporation uses derivative instruments to manage interest rate risk. By using derivative instruments, the Corporation is exposed to credit and market risk. If the counterparty fails to perform, credit risk is equal to the extent of the Corporation's fair value gain in the derivative. When the fair value of a derivative instrument contract is positive, this generally indicates that the counterparty owes the Corporation and, therefore, creates a credit risk for the Corporation. When the fair value of a derivative instrument contract is negative, the Corporation owes the counterparty and, therefore, it has no credit risk. The Corporation minimizes the credit risk in derivative instruments by entering into transactions with reputable broker dealers (financial institutions) that are reviewed periodically by the Corporation's Management's Investment and Asset Liability Committee and by the Board of Directors. The Corporation also maintains a policy of requiring that all derivative instrument contracts be governed by an International Swaps and Derivatives Association Master Agreement, which includes a provision for netting; most of the Corporation's agreements with derivative counterparties include bilateral collateral arrangements. The bilateral collateral arrangement permits the counterparties to perform margin calls in the form of cash or securities in the event that the fair market value of the derivative favors either counterparty. The book value and aggregate market value of securities pledged as collateral for interest rate swaps as of December 31, 2014 was $2.6 million and $2.9 million, respectively (2013 — $4.0 million and $4.3 million, respectively). The Corporation has a policy of diversifying derivatives counterparties to reduce the consequences of counterparty default. | |||||||||||||||||
The Corporation has credit risk of $39 thousand as of December 31, 2014 (2013 — $0.4 million) related to derivative instruments with positive fair values. The credit risk does not consider the value of any collateral and the effects of legally enforceable master netting agreements. There were no credit losses associated with derivative instruments recognized in 2014, 2013, or 2012. As of December 31, 2014, the Corporation had a total net interest settlement payable of $11 thousand (2013 — net interest settlement payable of $0.1 million) related to the swap transactions. The net settlements receivable and net settlements payable on interest rate swaps are included as part of “Other Assets” and “Accounts payable and other liabilities,” respectively, on the consolidated statements of financial condition. | |||||||||||||||||
Market risk is the adverse effect that a change in interest rates or implied volatility rates has on the value of a financial instrument. The Corporation manages the market risk associated with interest rate contracts by establishing and monitoring limits as to the types and degree of risk that may be undertaken. | |||||||||||||||||
The Corporation's derivative activities are monitored by the MIALCO as part of its risk-management oversight of the Corporation's treasury functions. | |||||||||||||||||
OFFSETTING_OF_ASSETS_AND_LIABI
OFFSETTING OF ASSETS AND LIABILITIES | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Text Block [Abstract] | ||||||||||||||||||||||||
OFFSETTING OF ASSETS AND LIABILITIES | NOTE 30 – OFFSETTING OF ASSETS AND LIABILITIES | |||||||||||||||||||||||
The Corporation enters into master agreements with counterparties that may allow for netting of exposures in the event of default, primarily related to derivatives and repurchase agreements. In an event of default each party has a right of set-off against the other party for amounts owed in the related agreement and any other amount or obligation owed in respect of any other agreement or transaction between them. The following table presents information about the offsetting of financial assets and liabilities as well as derivative assets and liabilities: | ||||||||||||||||||||||||
Offsetting of Financial Assets and Derivative Assets | ||||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
Net Amounts of Assets Presented in the Statement of Financial Position | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||
Financial Instruments | Cash Collateral | |||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Description | ||||||||||||||||||||||||
Derivatives | $ | 6 | $ | - | $ | 6 | $ | -6 | $ | - | $ | - | ||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Net Amounts of Assets Presented in the Statement of Financial Position | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||
Financial Instruments | Cash Collateral | |||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Description | ||||||||||||||||||||||||
Derivatives | $ | 58 | $ | - | $ | 58 | $ | -58 | $ | - | $ | - | ||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | ||||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
Net Amounts of Liabilities Presented in the Statement of Financial Position | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||
Financial Instruments | Cash Collateral | |||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Description | ||||||||||||||||||||||||
Derivatives | $ | 33 | $ | - | $ | 33 | $ | -33 | $ | - | $ | - | ||||||||||||
Repurchase agreements | 600,000 | - | 600,000 | -600,000 | - | - | ||||||||||||||||||
Total | $ | 600,033 | $ | - | $ | 600,033 | $ | -600,033 | $ | - | $ | - | ||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Net Amounts of Liabilities Presented in the Statement of Financial Position | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||
Financial Instruments | Cash Collateral | |||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Description | ||||||||||||||||||||||||
Derivatives | $ | 3,965 | $ | - | $ | 3,965 | $ | -3,965 | $ | - | $ | - | ||||||||||||
Repurchase agreements | 600,000 | - | 600,000 | -600,000 | - | - | ||||||||||||||||||
Total | $ | 603,965 | $ | - | $ | 603,965 | $ | -603,965 | $ | - | $ | - | ||||||||||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SEGMENT INFORMATION [Text Block] | NOTE 31 – SEGMENT INFORMATION | ||||||||||||||||||||
Based upon the Corporation's organizational structure and the information provided to the Chief Executive Officer of the Corporation and, to a lesser extent, the Board of Directors, the operating segments are driven primarily by the Corporation's lines of business for its operations in Puerto Rico, the Corporation's principal market, and by geographic areas for its operations outside of Puerto Rico. As of December 31, 2014, the Corporation had six reportable segments: Commercial and Corporate Banking; Mortgage Banking; Consumer (Retail) Banking; Treasury and Investments; United States Operations; and Virgin Islands Operations. Management determined the reportable segments based on the internal reporting used to evaluate performance and to assess where to allocate resources. Others factors such as the Corporation's organizational chart, nature of the products, distribution channels, and the economic characteristics of the product were also considered in the determination of the reportable segments. | |||||||||||||||||||||
The Commercial and Corporate Banking segment consists of the Corporation's lending and other services for large customers represented by specialized and middle-market clients and the public sector. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans, and floor plan financings, as well as other products, such as cash management and business management services. The Mortgage Banking segment consists of the origination, sale, and servicing of a variety of residential mortgage loans. The Mortgage Banking segment also acquires and sells mortgages in the secondary markets. In addition, the Mortgage Banking segment includes mortgage loans purchased from other local banks and mortgage bankers. The Consumer (Retail) Banking segment consists of the Corporation's consumer lending and deposit-taking activities conducted mainly through its branch network and loan centers. The Treasury and Investments segment is responsible for the Corporation's investment portfolio and treasury functions executed to manage and enhance liquidity. This segment lends funds to the Commercial and Corporate Banking, Mortgage Banking and Consumer (Retail) Banking segments to finance their lending activities and borrows from those segments and from the United States Operations segment. The Consumer (Retail) Banking and the United States Operations segments also lend funds to other segments. The interest rates charged or credited by Treasury and Investments, the Consumer (Retail) Banking, and the United States Operations segments are allocated based on market rates. The difference between the allocated interest income or expense and the Corporation's actual net interest income from centralized management of funding costs is reported in the Treasury and Investments segment. The United States Operations segment consists of all banking activities conducted by FirstBank in the United States mainland, including commercial and retail banking services. The Virgin Islands Operations segment consists of all banking activities conducted by the Corporation in the USVI and BVI, including commercial and retail banking services. | |||||||||||||||||||||
The accounting policies of the segments are the same as those referred to in Note 1- “Nature of Business and Summary of Significant Accounting Policies.” | |||||||||||||||||||||
The Corporation evaluates the performance of the segments based on net interest income, the estimated provision for loan and lease losses, non-interest income, and direct non-interest expenses. The segments are also evaluated based on the average volume of their interest-earning assets less the allowance for loan and lease losses. | |||||||||||||||||||||
The following table presents information about the reportable segments: | |||||||||||||||||||||
Mortgage Banking | Consumer (Retail) Banking | Commercial and Corporate Banking | Treasury and Investments | United States Operations | Virgin Islands Operations | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||||
For the year ended December 31, 2014: | |||||||||||||||||||||
Interest income | $ | 115,997 | $ | 215,170 | $ | 163,242 | $ | 54,223 | $ | 44,882 | $ | 40,435 | $ | 633,949 | |||||||
Net (charge) credit for transfer of funds | -37,375 | 17,629 | -12,364 | 20,463 | 11,647 | - | - | ||||||||||||||
Interest expense | - | -24,445 | - | -68,517 | -19,273 | -3,641 | -115,876 | ||||||||||||||
Net interest income | 78,622 | 208,354 | 150,878 | 6,169 | 37,256 | 36,794 | 518,073 | ||||||||||||||
(Provision) release for loan and lease losses | -17,605 | -79,932 | -40,084 | - | 27,650 | 441 | -109,530 | ||||||||||||||
Non-interest income (loss) | 13,515 | 40,018 | 5,241 | 264 | 2,450 | 7,139 | 68,627 | ||||||||||||||
Direct non-interest expenses | -39,444 | -126,290 | -46,963 | -5,368 | -26,596 | -39,319 | -283,980 | ||||||||||||||
Segment income | $ | 35,088 | $ | 42,150 | $ | 69,072 | $ | 1,065 | $ | 40,760 | $ | 5,055 | $ | 193,190 | |||||||
Average earnings assets | $ | 2,142,122 | $ | 1,967,202 | $ | 3,613,354 | $ | 2,691,906 | $ | 976,151 | $ | 656,197 | $ | 12,046,932 | |||||||
Mortgage Banking | Consumer (Retail) Banking | Commercial and Corporate Banking | Treasury and Investments | United States Operations | Virgin Islands Operations | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||||
For the year ended December 31, 2013: | |||||||||||||||||||||
Interest income | $ | 109,074 | $ | 231,077 | $ | 171,972 | $ | 55,075 | $ | 36,999 | $ | 41,591 | $ | 645,788 | |||||||
Net (charge) credit for transfer of funds | -37,611 | 1,549 | -14,280 | 41,074 | 9,268 | - | - | ||||||||||||||
Interest expense | - | -27,834 | - | -77,366 | -21,748 | -3,895 | -130,843 | ||||||||||||||
Net interest income | 71,463 | 204,792 | 157,692 | 18,783 | 24,519 | 37,696 | 514,945 | ||||||||||||||
(Provision) release for loan and lease losses | -89,439 | -54,240 | -101,971 | - | 10,709 | -8,810 | -243,751 | ||||||||||||||
Non-interest income (loss) | 15,826 | 38,968 | 3,904 | -66,635 | 1,284 | 7,855 | 1,202 | ||||||||||||||
Direct non-interest expenses | -48,941 | -122,560 | -64,611 | -10,629 | -28,554 | -45,680 | -320,975 | ||||||||||||||
Segment (loss) income | $ | -51,091 | $ | 66,960 | $ | -4,986 | $ | -58,481 | $ | 7,958 | $ | -8,939 | $ | -48,579 | |||||||
Average earnings assets | $ | 2,030,120 | $ | 1,954,307 | $ | 4,068,942 | $ | 2,698,559 | $ | 748,209 | $ | 664,051 | $ | 12,164,188 | |||||||
Mortgage Banking | Consumer (Retail) Banking | Commercial and Corporate Banking | Treasury and Investments | United States Operations | Virgin Islands Operations | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||||
For the year ended December 31, 2012: | |||||||||||||||||||||
Interest income | $ | 110,164 | $ | 207,001 | $ | 187,860 | $ | 46,313 | $ | 37,376 | $ | 49,063 | $ | 637,777 | |||||||
Net (charge) credit for transfer of funds | -48,830 | 474 | -23,706 | 59,970 | 12,092 | - | - | ||||||||||||||
Interest expense | - | -30,904 | - | -111,209 | -29,340 | -4,619 | -176,072 | ||||||||||||||
Net interest income (loss) | 61,334 | 176,571 | 164,154 | -4,926 | 20,128 | 44,444 | 461,705 | ||||||||||||||
(Provision) release for loan and lease losses | -36,553 | -32,924 | -42,940 | - | 9,061 | -17,143 | -120,499 | ||||||||||||||
Non-interest income (loss) | 18,080 | 33,362 | 10,140 | -1,623 | 1,803 | 6,885 | 68,647 | ||||||||||||||
Direct non-interest expenses | -43,058 | -102,364 | -50,364 | -6,296 | -27,734 | -37,751 | -267,567 | ||||||||||||||
Segment (loss) income | $ | -197 | $ | 74,645 | $ | 80,990 | $ | -12,845 | $ | 3,258 | $ | -3,565 | $ | 142,286 | |||||||
Average earnings assets | $ | 2,067,304 | $ | 1,637,729 | $ | 4,571,779 | $ | 2,426,091 | $ | 727,556 | $ | 805,720 | $ | 12,236,179 | |||||||
The following table presents a reconciliation of the reportable segment financial information to the consolidated totals: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Net income (loss) : | |||||||||||||||||||||
Total income (loss) for segments and other | $ | 193,190 | $ | -48,579 | $ | 142,286 | |||||||||||||||
Other non-interest loss (1) | -7,279 | -16,691 | -19,256 | ||||||||||||||||||
Other operating expenses (2) | -94,273 | -94,053 | -87,316 | ||||||||||||||||||
Income (loss) before income taxes | 91,638 | -159,323 | 35,714 | ||||||||||||||||||
Income tax benefit (expense) | 300,649 | -5,164 | -5,932 | ||||||||||||||||||
Total consolidated net income (loss) | $ | 392,287 | $ | -164,487 | $ | 29,782 | |||||||||||||||
Average assets: | |||||||||||||||||||||
Total average earning assets for segments | $ | 12,046,932 | $ | 12,164,188 | $ | 12,236,179 | |||||||||||||||
Other average earning assets (1) | 1,943 | 18,089 | 36,706 | ||||||||||||||||||
Average non-earning assets | 598,570 | 630,184 | 693,489 | ||||||||||||||||||
Total consolidated average assets | $ | 12,647,445 | $ | 12,812,461 | $ | 12,966,374 | |||||||||||||||
-1 | The activities related to the Bank's equity interest in CPG/GS are presented as an Other non-interest loss and as Other | ||||||||||||||||||||
average earning assets in the table above. | |||||||||||||||||||||
-2 | Expenses pertaining to corporate administrative functions that support the operating segments but are not specifically | ||||||||||||||||||||
attributable to or managed by any segment are not included in the reported financial results of the operating segments. | |||||||||||||||||||||
The unallocated corporate expenses include certain general and administrative expenses and related depreciation and | |||||||||||||||||||||
amortization expenses. | |||||||||||||||||||||
The following table presents revenues (interest income plus non-interest income) and selected balance sheet data by geography based on the location in which the transaction is originated: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Revenues: | |||||||||||||||||||||
Puerto Rico | $ | 588,744 | $ | 533,302 | $ | 579,949 | |||||||||||||||
United States | 58,979 | 47,551 | 51,271 | ||||||||||||||||||
Virgin Islands | 47,574 | 49,446 | 55,948 | ||||||||||||||||||
Total consolidated revenues | $ | 695,297 | $ | 630,299 | $ | 687,168 | |||||||||||||||
Selected Balance Sheet Information: | |||||||||||||||||||||
Total assets: | |||||||||||||||||||||
Puerto Rico | $ | 10,969,305 | $ | 10,993,743 | $ | 11,421,073 | |||||||||||||||
United States | 1,072,962 | 940,590 | 913,831 | ||||||||||||||||||
Virgin Islands | 685,568 | 722,592 | 764,837 | ||||||||||||||||||
Loans: | |||||||||||||||||||||
Puerto Rico | $ | 7,706,866 | $ | 8,173,873 | $ | 8,706,428 | |||||||||||||||
United States | 982,713 | 865,414 | 714,234 | ||||||||||||||||||
Virgin Islands | 649,813 | 672,852 | 718,846 | ||||||||||||||||||
Deposits: | |||||||||||||||||||||
Puerto Rico (1) | $ | 6,687,844 | $ | 7,053,053 | $ | 7,004,301 | |||||||||||||||
United States | 1,836,430 | 1,895,394 | 1,921,066 | ||||||||||||||||||
Virgin Islands | 959,671 | 931,477 | 939,179 | ||||||||||||||||||
-1 | For 2014, 2013, and 2012, includes $2.9 billion, $3.1 billion, and $3.4 billion, respectively, of brokered CDs allocated to Puerto Rico operations. |
FIRST_BANCORP_Holding_Company_
FIRST BANCORP. (Holding Company Only) Financial Information | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
FIRST BANCORP. (Holding Company Only) Financial Information [Text Block] | NOTE 32- FIRST BANCORP. (HOLDING COMPANY ONLY) FINANCIAL INFORMATION | ||||||||
The following condensed financial information presents the financial position of the Holding Company only as of December 31, 2014 and 2013, and the results of its operations and cash flows for the years ended on December 31, 2014, 2013, and 2012: | |||||||||
Statements of Financial Condition | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Assets | |||||||||
Cash and due from banks | $ | 30,380 | $ | 31,957 | |||||
Money market investments | 6,111 | 6,111 | |||||||
Investment securities available for sale, at market: | |||||||||
Equity investments | - | 33 | |||||||
Other investment securities | 285 | 285 | |||||||
Loans held for investment, net | 322 | 356 | |||||||
Investment in First Bank Puerto Rico, at equity | 1,866,090 | 1,403,612 | |||||||
Investment in First Bank Insurance Agency, at equity | 11,890 | 9,834 | |||||||
Investment in FBP Statutory Trust I | 3,093 | 3,093 | |||||||
Investment in FBP Statutory Trust II | 3,866 | 3,866 | |||||||
Other assets | 4,357 | 4,101 | |||||||
Total assets | $ | 1,926,394 | $ | 1,463,248 | |||||
Liabilities and Stockholders' Equity | |||||||||
Liabilities: | |||||||||
Other borrowings | $ | 231,959 | $ | 231,959 | |||||
Accounts payable and other liabilities | 22,692 | 15,431 | |||||||
Total liabilities | 254,651 | 247,390 | |||||||
Stockholders' equity | 1,671,743 | 1,215,858 | |||||||
Total liabilities and stockholders' equity | $ | 1,926,394 | $ | 1,463,248 | |||||
Statements of Income (Loss) | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
(In thousands) | |||||||||
Income | |||||||||
Interest income on money market investments | $ | 20 | $ | 22 | $ | 17 | |||
Interest income on other investments | - | - | 6 | ||||||
Other income | 220 | 88 | 220 | ||||||
240 | 110 | 243 | |||||||
Expense | |||||||||
Notes payable and other borrowings | 7,199 | 7,092 | 7,342 | ||||||
Other operating expenses | 2,614 | 5,813 | 3,398 | ||||||
9,813 | 12,905 | 10,740 | |||||||
Loss on sale and impairment on equity securities | -29 | -42 | - | ||||||
Loss before income taxes and equity in undistributed earnings | |||||||||
(losses) of subsidiaries | -9,602 | -12,837 | -10,497 | ||||||
Equity in undistributed earnings (losses) of subsidiaries | 401,889 | -151,650 | 40,279 | ||||||
Net Income (loss) | 392,287 | -164,487 | 29,782 | ||||||
Other comprehensive income (loss) , net of tax | 60,385 | -107,168 | 9,234 | ||||||
Comprehensive income (loss) | $ | 452,672 | $ | -271,655 | $ | 39,016 | |||
Statements of Cash Flows | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
(In thousands) | |||||||||
Cash flows from operating activities: | |||||||||
Net income (loss) | $ | 392,287 | $ | -164,487 | $ | 29,782 | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||
Stock-based compensation | 1,962 | 1,471 | 155 | ||||||
Equity in undistributed (earnings) losses of subsidiaries | -401,889 | 151,650 | -40,279 | ||||||
Loss on sales/impairment of investment securities | 29 | 186 | - | ||||||
Accretion of discount on loans | -3 | - | - | ||||||
Net (increase) decrease in other assets | -260 | 774 | -1,403 | ||||||
Net increase in other liabilities | 7,261 | 7,146 | 7,166 | ||||||
Net cash used in operating activities | -613 | -3,260 | -4,579 | ||||||
Cash flows from investing activities: | |||||||||
Principal collected on loans | 38 | - | - | ||||||
Proceeds from sales of available-for-sale securities | 6 | - | - | ||||||
Proceeds from sale/redemption of other investment securities | - | 533 | - | ||||||
Net cash provided by investing activities | 44 | 533 | - | ||||||
Cash flows from financing activities: | |||||||||
Proceeds from common stock issued, net of costs | - | - | 1,037 | ||||||
Repurchase of common stock | -946 | -455 | - | ||||||
Issuance costs of common stock issued in exchange for preferred | |||||||||
stock Series A through E | -62 | - | - | ||||||
Net cash (used in) provided by financing activities | -1,008 | -455 | 1,037 | ||||||
Net decrease in cash and cash equivalents | -1,577 | -3,182 | -3,542 | ||||||
Cash and cash equivalents at beginning of the year | 38,068 | 41,250 | 44,792 | ||||||
Cash and cash equivalents at end of year | $ | 36,491 | $ | 38,068 | $ | 41,250 | |||
Cash and cash equivalents include: | |||||||||
Cash and due from banks | $ | 30,380 | $ | 31,957 | $ | 35,139 | |||
Money market instruments | 6,111 | 6,111 | 6,111 | ||||||
$ | 36,491 | $ | 38,068 | $ | 41,250 | ||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
SUBSEQUENT EVENTS [Text Block] | NOTE 33 – SUBSEQUENT EVENTS |
Effective at the close of business on Friday, February 27, 2015, FirstBank acquired 10 Puerto Rico branches of Doral Bank's, assumed approximately $625 million in deposits related to such branches and purchased approximately $325 million in performing residential mortgage loans through an alliance with Banco Popular of Puerto Rico (“Popular”) who was the successful lead bidder with the FDIC on the failed Doral Bank. | |
Under the FDIC's bidding format, Popular was the lead bidder and party to the purchase and assumption agreement with the FDIC covering all assets and deposits to be acquired by Popular and its alliance co-bidders. Popular entered into back to back purchase and assumption agreements with the alliance co-bidders, including FirstBank, for the transferred assets and deposits. Pursuant to the terms of the purchase and assumption agreement, FirstBank purchased the loans at an aggregate discount of 9.0%, or approximately $29 million, and assumed the deposits at a premium of 1.6%, or approximately $10 million. These numbers, which are as of December 31, 2014, are subject to post-closing adjustments based on closing date totals and purchase accounting adjustments. There is no loss-share with the FDIC related to the acquired assets. | |
FirstBank entered into a transition services agreement with Popular that enables FirstBank to receive services reasonably necessary to operate the acquired branches during the transition period in a manner consistent with market practice, including the servicing of residential mortgage loans until the acquired assets are converted to FirstBank's operating system, which is anticipated to occur within the next 6 months. Upon completion of the acquisition, the Corporation and FirstBank remained well in excess of “well capitalized” under the applicable regulatory standards, with no additional capital required to support this transaction. The transaction is expected to be accretive to earnings. | |
The Corporation has performed an evaluation of all other events occurring subsequent to December 31, 2014; management has determined there are no additional events occurring in this period that required disclosure in or adjustment to the accompanying financial statements. | |
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Nature of Business [Policy Text Block] | Nature of business | ||
First BanCorp. is a publicly owned, Puerto Rico-chartered financial holding company that is subject to regulation, supervision, and examination by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). The Corporation is a full service provider of financial services and products with operations in Puerto Rico, the United States, the U.S. Virgin Islands (USVI), and the British Virgin Islands (BVI). | |||
The Corporation provides a wide range of financial services for retail, commercial, and institutional clients. As of December 31, 2014, the Corporation controlled two wholly owned subsidiaries: FirstBank Puerto Rico (“FirstBank” or the “Bank”), and FirstBank Insurance Agency, Inc. (“FirstBank Insurance Agency”). FirstBank is a Puerto Rico-chartered commercial bank, and FirstBank Insurance Agency is a Puerto Rico-chartered insurance agency. FirstBank is subject to the supervision, examination, and regulation of both the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico (“OCIF”) and the Federal Deposit Insurance Corporation (the “FDIC”). Deposits are insured through the FDIC Deposit Insurance Fund. FirstBank also operates in the state of Florida (USA), subject to regulation and examination by the Florida Office of Financial Regulation and the FDIC, in the USVI, subject to regulation and examination by the United States Virgin Islands Banking Board, and in the BVI, subject to regulation by the British Virgin Islands Financial Services Commission. | |||
FirstBank Insurance Agency is subject to the supervision, examination, and regulation of the Office of the Insurance Commissioner of the Commonwealth of Puerto Rico. | |||
FirstBank conducts its business through its main office located in San Juan, Puerto Rico, 44 banking branches in Puerto Rico as of December 31, 2014, 12 branches in the USVI and BVI, and 10 branches in the state of Florida (USA). FirstBank has 6 wholly owned subsidiaries with operations in Puerto Rico: First Federal Finance Corp. (d/b/a Money Express La Financiera), a finance company specializing in the origination of small loans with 27 offices in Puerto Rico; First Management of Puerto Rico, a domestic corporation, which holds tax-exempt assets; FirstBank Puerto Rico Securities Corp., a broker-dealer subsidiary engaged in municipal bond underwriting and financial advisory services on structured financings principally provided to government entities in the Commonwealth of Puerto Rico; FirstBank Overseas Corporation, an international banking entity organized under the International Banking Entity Act of Puerto Rico; and two other companies that hold and operate certain particular other real estate owned properties. FirstBank had one active subsidiary with operations outside of Puerto Rico: First Express, a finance company specializing in the origination of small loans with 2 offices in the USVI. | |||
Effective as of 11:59 p.m. on December 31, 2014, the operations conducted by First Mortgage as a separate subsidiary were merged with and into FirstBank. | |||
Effective as of the close of business on Friday, February 27, 2015, FirstBank acquired 10 Puerto Rico branches of Doral Bank, assumed approximately $625 million in deposits related to such branches and purchased approximately $325 million performing residential mortgage loans through an alliance with Banco Popular of Puerto Rico who was the successful lead bidder with the FDIC on the failed Doral Bank. These numbers, which are as of December 31, 2014, are subject to post-closing adjustments based on closing totals and purchase accounting adjustments. Refer to Note 33 for additional information. | |||
Principles of consolidation [Policy Text Block] | Principles of consolidation | ||
The consolidated financial statements include the accounts of the Corporation and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Statutory business trusts that are wholly owned by the Corporation and are issuers of trust-preferred securities, and entities in which the Corporation has a non controlling interest, are not consolidated in the Corporation's consolidated financial statements in accordance with authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) for consolidation of variable interest entities. See “Variable Interest Entities” below for further details regarding the Corporation's accounting policy for these entities. | |||
Reclassifications [Policy Text Block] | Reclassifications | ||
For purposes of comparability, certain prior period amounts have been reclassified to conform to the 2014 presentation. These reclassifications include, but are not limited to, the presentation of expenses on collection agencies' fees that were previously presented as part of other non-interest expenses and were reclassified to the professional fees expenses caption, expenses of stock-based compensation for non-employee directors previously presented as employees' compensation and benefits were reclassified to the professional fees expenses caption and cash management-related fees previously presented as part of other non-interest income that were reclassified as part of service charges and fees on deposit accounts. These reclassifications had no impact on the previously reported results of operations, financial condition, or cash flows. | |||
Use of estimates in the preparation of financial statements [Policy Text Block] | Use of estimates in the preparation of financial statements | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management has made significant estimates in several areas, including the allowance for loan and lease losses, valuations of investment securities, the fair value of assets acquired including purchased credit-impaired (PCI) loans, valuations of residential mortgage servicing rights, valuations of OREO properties, and income taxes, including deferred taxes. | |||
Cash and cash equivalents [Policy Text Block] | Cash and cash equivalents | ||
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from the Federal Reserve Bank of New York (the “New York FED” or “Federal Reserve”) and other depository institutions, and short-term investments with original maturities of three months or less. | |||
Investment securities [Policy Text Block] | Investment securities | ||
The Corporation classifies its investments in debt and equity securities into one of four categories: | |||
Held-to-maturity — Securities that the entity has the intent and ability to hold to maturity. These securities are carried at amortized cost. The Corporation may not sell or transfer held-to-maturity securities without calling into question its intent to hold other debt securities to maturity, unless a nonrecurring or unusual event that could not have been reasonably anticipated has occurred. As of December 31, 2014 and 2013, the Corporation did not hold held-to-maturity investment securities. | |||
Trading — Securities that are bought and held principally for the purpose of selling them in the near term. These securities are carried at fair value, with unrealized gains and losses reported in earnings. As of December 31, 2014 and 2013, the Corporation did not hold investment securities for trading purposes. | |||
Available-for-sale — Securities not classified as held-to-maturity or trading. These securities are carried at fair value, with unrealized holding gains and losses, net of deferred taxes, reported in other comprehensive income (“OCI”) as a separate component of stockholders' equity, and do not affect earnings until they are realized or are deemed to be other-than-temporarily impaired. | |||
Other equity securities — Equity securities that do not have readily available fair values are classified as other equity securities in the consolidated statements of financial condition. These securities are stated at the lower of cost or realizable value. This category is principally composed of stock that is owned by the Corporation to comply with Federal Home Loan Bank (FHLB) regulatory requirements. Their realizable value equals their cost. | |||
Premiums and discounts on investment securities are amortized as an adjustment to interest income on investments over the life of the related securities under the interest method. Net realized gains and losses and valuation adjustments considered other-than-temporary, if any, related to investment securities are determined using the specific identification method and are reported in noninterest income as net gain (loss) on sale of investments and net impairment losses on debt securities, respectively. Purchases and sales of securities are recognized on a trade-date basis. | |||
Evaluation of other-than-temporary impairment (OTTI) on held-to-maturity and available-for-sale securities [Policy Text Block] | Evaluation of other-than-temporary impairment (“OTTI”) on held-to-maturity and available-for-sale securities | ||
On a quarterly basis, the Corporation performs an assessment to determine whether there have been any events or economic circumstances indicating that a security with an unrealized loss has suffered OTTI. A security is considered impaired if the fair value is less than its amortized cost basis. | |||
The Corporation evaluates whether the impairment is other-than-temporary depending upon whether the portfolio consists of debt securities or equity securities, as further described below. The Corporation employs a systematic methodology that considers all available evidence in evaluating a potential impairment of its investments. | |||
The impairment analysis of debt securities places special emphasis on the analysis of the cash position of the issuer and its cash and capital generation capacity, which could increase or diminish the issuer's ability to repay its bond obligations, the length of time and the extent to which the fair value has been less than the amortized cost basis, and changes in the near-term prospects of the underlying collateral, if applicable, such as changes in default rates, loss severity given default, and significant changes in prepayment assumptions. The Corporation also takes into consideration the latest information available about the overall financial condition of an issuer, credit ratings, recent legislation, government actions affecting the issuer's industry, and actions taken by the issuer to deal with the economic climate. OTTI must be recognized in earnings if the Corporation has the intent to sell the debt security or it is more likely than not that it will be required to sell the debt security before recovery of its amortized cost basis. However, even if the Corporation does not expect to sell a debt security, it must evaluate expected cash flows to be received and determine if a credit loss has occurred. An unrealized loss is generally deemed to be other-than-temporary and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of an OTTI, if any, is recorded as net impairment losses on debt securities in the statements of income (loss), while the remaining portion of the impairment loss is recognized in OCI, net of taxes, provided the Corporation does not intend to sell the underlying debt security and it is more likely than not that the Corporation will not have to sell the debt security prior to recovery. The previous amortized cost basis less the OTTI recognized in earnings is the new amortized cost basis of the investment. The new amortized cost basis is not adjusted for subsequent recoveries in fair value. However, for debt securities for which OTTI was recognized in earnings, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted as interest income. For further disclosures, refer to Note 4 to the consolidated financial statements. | |||
The impairment analysis of equity securities is performed and reviewed on an ongoing basis based on the latest financial information and any supporting research report made by a major brokerage firm. This analysis is very subjective and based, among other things, on relevant financial data such as capitalization, cash flow, liquidity, systematic risk, and debt outstanding of the issuer. Management also considers the issuer's industry trends, the historical performance of the stock, credit ratings, as well as the Corporation's intent to hold the security for an extended period. If management believes there is a low probability of recovering book value in a reasonable time frame, it records an impairment by writing the security down to market value. As previously mentioned, equity securities are monitored on an ongoing basis but special attention is given to those securities that have experienced a decline in fair value for six months or more. An impairment charge is generally recognized when the fair value of an equity security has remained significantly below cost for a period of 12 consecutive months or more. | |||
Variable interest entities (VIE) [Policy Text Block] | Variable interest entities (“VIE”) | ||
A VIE is an entity in which the Corporation holds an equity interest. An institution that has a controlling financial interest in a VIE is referred to as the primary beneficiary and consolidates the VIE. The Corporation is deemed to have a controlling financial interest and is the primary beneficiary of a VIE if it has both the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. | |||
In connection with a sale of loans with a book value of $269.3 million to CPG/GS PR NPL, LLC (“CPG/GS”) completed on February 16, 2011, the Bank received a 35% subordinated interest in CPG/GS, as further discussed in Note 13. The Corporation's investment in this unconsolidated entity was considered significant under Rule 3-09 of Regulation S-X for the year ended December 31, 2012. This rule looks to Rule 1-02(w) of Regulation S-X to determine the significance of the investee. The significance threshold for Rule 3-09 is 20% of assets or income. The Corporation must provide full financial information for unconsolidated subsidiaries and 50%-or-less owned entities accounted for by the equity method if the entities are significant, for any fiscal year presented, under the Rule 1-02(w) tests (investment or income tests) in Regulation S-X. | |||
The Corporation accounts for its investment in CPG/GS under the equity method and includes the investment as part of investment in unconsolidated entity in the consolidated statements of financial condition. When applying the equity method, the Corporation follows the hypothetical liquidation book value (“HLBV”) method to determine its share of earnings or losses of the unconsolidated entity. Under the HLBV method, the Corporation determines its share of earnings or losses by determining the difference between its “claim on the entity's book value” at the end of the period as compared to the beginning of the period. This claim is calculated as the amount the Corporation would receive if the entity were to liquidate all of its assets at recorded amounts determined in accordance with GAAP and distribute the resulting cash to the investors, according to their respective priorities as provided in the contractual agreements. The Bank reports its share of CPG/GS's operating results on a one-quarter lag basis. In addition, as a result of using HLBV, the difference between the Bank's investment in CPG/GS and its claim on the book value of CPG/GS at the date of the investment, known as the basis difference, is amortized over the estimated life of the investment. The loss recorded in 2014 reduced the carrying amount of the Bank's investment in CPG/GS to zero. No negative investment needs to be reported as the Bank has no legal obligation or commitment to provide further financial support to this entity; thus, no further losses will be recorded on this investment. Any potential increase in the carrying value of the investment in CPG/GS, under the HLBV method, would depend upon how better off the Bank is at the end of the period than it was at the beginning of the period after the waterfall calculation performed to determine the amount of gain allocated to the investors. | |||
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | Loans held for investment | ||
Loans that the Corporation has the ability and intent to hold for the foreseeable future are classified as held for investment. The substantial majority of the Corporation's loans are classified as held for investment. Loans are stated at the principal outstanding balance, net of unearned interest, cumulative charge-offs, unamortized deferred origination fees and costs, and unamortized premiums and discounts. Fees collected and costs incurred in the origination of new loans are deferred and amortized using the interest method or a method that approximates the interest method over the term of the loan as an adjustment to interest yield. Unearned interest on certain personal loans, auto loans and finance leases and discounts and premiums are recognized as income under a method that approximates the interest method. When a loan is paid-off or sold, any unamortized net deferred fee (cost) is credited (charged) to income. Credit card loans are reported at their outstanding unpaid principal balance plus uncollected billed interest and fees net of amounts deemed uncollectible. PCI loans are reported net of any remaining purchase accounting adjustments. See “Loans acquired” below for the accounting policy for PCI loans. | |||
Non-Performing and Past-Due Loans - Loans on which the recognition of interest income has been discontinued are designated as non-performing. Loans are classified as non-performing when they are 90 days past due for interest and principal, with the exception of residential mortgage loans guaranteed by the Federal Housing Administration (the “FHA”) or the Veterans Administration (the “VA”) and credit cards. It is the Corporation's policy to report delinquent mortgage loans insured by the FHA or guaranteed by the VA as loans past due 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. However, the Corporation discontinues the recognition of income for FHA/VA loans when such loans are over 18 months delinquent. As permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”), credit card loans are generally charged off in the period in which the account becomes 180 days past due. Credit card loans continue to accrue finance charges and fees until charged off at 180 days. Loans generally may be placed on non-performing status prior to when required by the policies described above when the full and timely collection of interest or principal becomes uncertain (generally based on an assessment of the borrower's financial condition and the adequacy of collateral, if any). When a loan is placed on non-performing status, any accrued but uncollected interest income is reversed and charged against interest income and amortization of any net deferred fees is suspended. Interest income on non-performing loans is recognized only to the extent it is received in cash. However, when there is doubt regarding the ultimate collectability of loan principal, all cash thereafter received is applied to reduce the carrying value of such loans (i.e., the cost recovery method). Generally, the Corporation returns a loan to accrual status when all delinquent interest and principal becomes current under the terms of the loan agreement or when the loan is well secured and in the process of collection, and collectability of the remaining interest and principal is no longer doubtful. Loans that are past due 30 days or more as to principal or interest are considered delinquent, with the exception of residential mortgage, commercial mortgage, and construction loans, which are considered past due when the borrower is in arrears on two or more monthly payments. | |||
Impaired Loans - A loan is considered impaired when, based upon current information and events, it is probable that the Corporation will be unable to collect all amounts due (including principal and interest) according to the contractual terms of the loan agreement. Loans with insignificant delays or insignificant shortfalls in the amounts of payments expected to be collected are not considered to be impaired. The Corporation measures impairment individually for those loans in the construction, commercial mortgage, and commercial and industrial portfolios with a principal balance of $1 million or more and any loans that have been modified in a troubled debt restructuring (“TDRs”). The Corporation also evaluates for impairment purposes certain residential mortgage loans and home equity lines of credit with high delinquency and loan-to-value levels. Generally, consumer loans are not individually evaluated for impairment on a regular basis except for impaired marine financing loans in amounts that exceed $1 million, home equity lines with high delinquency and loan-to-value levels and TDRs. Held-for-sale loans are not reported as impaired, as these loans are recorded at the lower of cost or fair value. | |||
The Corporation generally measures impairment and the related specific allowance for individually impaired loans based on the difference between the recorded investment of the loan and the present value of the loans' expected future cash flows, discounted at the effective original interest rate of the loan at the time of modification, or the loan's observable market price. If the loan is collateral dependent, the Corporation measures impairment based upon the fair value of the underlying collateral, instead of discounted cash flows, regardless of whether foreclosure is probable. Loans are identified as collateral dependent if the repayment is expected to be provided solely by the underlying collateral, through liquidation or operation of the collateral. When the fair value of the collateral is used to measure impairment on an impaired collateral-dependent loan and repayment or satisfaction of the loan is dependent on the sale of the collateral, the fair value of the collateral is adjusted to consider estimated costs to sell. If repayment is dependent only on the operation of the collateral, the fair value of the collateral is not adjusted for estimated costs to sell. If the fair value of the loan is less than the recorded investment, the Corporation recognizes impairment by either a direct write-down or establishing an allowance for the loan or by adjusting an allowance for the impaired loan. For an impaired loan that is collateral dependent, charge-offs are taken in the period in which the loan, or portion of the loan, is deemed uncollectible, and any portion of the loan not charged off is adversely credit risk rated at a level no worse than substandard. | |||
A restructuring of a loan constitutes a TDR if the creditor, for economic or legal reasons related to the debtor's financial difficulties, grants a concession to the debtor that it would not otherwise consider. TDRs typically result from the Corporation's loss mitigation activities and residential mortgage loans modified in accordance with guidelines similar to those of the U.S. government's Home Affordable Modification Program, and could include rate reductions, principal forgiveness, term extensions, payment forbearance, refinancing of any past-due amounts, including interest, escrow, and late charges and fees, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. | |||
TDRs are classified as either accrual or nonaccrual loans. A loan on nonaccrual status and restructured as a TDR will remain on nonaccrual status until the borrower demonstrates a sustained period of performance (generally six consecutive months of payments, inclusive of consecutive payments made prior to the modification), and there is evidence that such payments can and are likely to continue as agreed. Performance prior to the restructuring, or significant events that coincide with the restructuring, are evaluated in assessing whether the borrower can meet the new terms and may result in the loans being returned to accrual status at the time of the restructuring or after a shorter performance period. If the borrower's ability to meet the revised payment schedule is uncertain, the loan remains classified as a nonaccrual loan. Refer to Note 7 for additional qualitative and quantitative information about TDRs. | |||
In connection with commercial restructurings, the decision to maintain a loan that has been restructured on accrual status is based on a current, well-documented credit evaluation of the borrower's financial condition and prospects for repayment under the modified terms. The credit evaluation reflects consideration of the borrower's future capacity and willingness to pay, which may include evaluation of cash flow projections, consideration of the adequacy of collateral to cover all principal and interest, and trends indicating improving profitability and collectibility of receivables. This evaluation also includes an evaluation of the borrower's current willingness to pay, which may include a review of past payment history, an evaluation of the borrower's willingness to provide information on a timely basis, and consideration of offers from the borrower to provide additional collateral or guarantor support. | |||
The evaluation of mortgage and consumer loans for restructurings includes an evaluation of the client's disposable income and credit report, the value of the property, the loan to value relationship, and certain other client-specific factors that have impacted the borrower's ability to make timely principal and interest payments on the loan. In connection with retail restructurings, a nonperforming loan will be returned to accrual status when current as to principal and interest, under revised terms, and upon sustained historical repayment performance. | |||
The Corporation removes loans from TDR classification, consistent with authoritative guidance that allows for a TDR to be removed from this classification in years following the modification, only when the following two circumstances are met: | |||
The loan is in compliance with the terms of the restructuring agreement and, therefore, is not considered impaired under the revised terms; and | |||
The loan yields a market interest rate at the time of the restructuring. In other words, the loan was restructured with an interest rate equal to or greater than what the Corporation would have been willing to accept at the time of the restructuring for a new loan with comparable risk. | |||
If both of the conditions are met, the loan can be removed from the TDR classification in calendar years after the year in which the restructuring took place. However, the loan continues to be individually evaluated for impairment. Loans classified as TDRs, including loans in trial payment periods (trial modifications), are considered impaired loans. | |||
With respect to loan splits, generally, Note A of a loan split is restructured under market terms, and Note B is fully charged off. If Note A is in compliance with the restructured terms in years following the restructuring, Note A will be removed from the TDR classification. | |||
Interest income on impaired loans is recognized based on the Corporation's policy for recognizing interest on accrual and non-accrual loans. | |||
Loans Acquired - All purchased loans are recorded at fair value at the date of acquisition. Loans acquired with evidence of credit deterioration since their origination and where it is probable at the date of acquisition that the Corporation will not collect all contractually required principal and interest payments are considered PCI loans. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due and non-accrual status, and revised loan terms. Residential and consumer PCI loans have been aggregated into pools based on common risk characteristics. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. In accounting for PCI loans, the difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. The nonaccretable difference, which is neither accreted into income nor recorded on the consolidated statement of financial condition, reflects estimated future credit losses expected to be incurred over the life of the pool of loans. The excess of cash flows expected to be collected over the estimated fair value of PCI loans is referred to as the accretable yield. This amount is not recorded on the statement of financial condition, but is accreted into interest income over the remaining life of the pool of loans, using the effective-yield method. | |||
Subsequent to acquisition, the Corporation completes quarterly evaluations of expected cash flows. Decreases in expected cash flows attributable to credit will generally result in an impairment charge to the provision for loan and lease losses and the establishment of an allowance for loan and lease losses. Increases in expected cash flows will generally result in a reduction in any allowance for loan and lease losses established subsequent to acquisition and an increase in the accretable yield. The adjusted accretable yield is recognized in interest income over the remaining life of the pool of loans. | |||
Resolutions of loans may include sales of loans to third parties, receipt of payments in settlement with the borrower, or foreclosure of the collateral. The Corporation's policy is to remove an individual loan from a pool based on comparing the amount received from its resolution with its contractual amount. Any difference between these amounts is absorbed by the nonaccretable difference for the entire pool. This removal method assumes that the amount received from resolution approximates pool performance expectations. The remaining accretable yield balance is unaffected and any material change in remaining effective yield caused by this removal method is addressed by the Corporation's quarterly cash flow evaluation process for each pool. For loans that are resolved by payment in full, there is no release of the nonaccretable difference for the pool because there is no difference between the amount received at resolution and the contractual amount of the loan. Modified PCI loans are not removed from a pool even if those loans would otherwise be deemed TDRs. | |||
Because the initial fair value of PCI loans recorded at acquisition includes an estimate of credit losses expected to be realized over the remaining lives of the loans, the Corporation separately tracks and reports PCI loans and excludes these loans from its delinquency and non-performing loan statistics. | |||
For acquired loans that are not deemed impaired at acquisition, subsequent to acquisition the Corporation recognizes the difference between the initial fair value at acquisition and the undiscounted expected cash flows in interest income over the period in which substantially all of the inherent losses associated with the non-PCI loans at the acquisition date are estimated to occur. Thus, such loans are accounted for consistently with other originated loans, potentially being classified as nonaccrual or impaired, as well as being classified under the Corporation's standard practice and procedures. In addition, these loans are considered in the determination of the allowance for loan losses. | |||
Charge-off of Uncollectible Loans - Net charge-offs consist of the unpaid principal balances of loans held for investment that the Corporation determines are uncollectible, net of recovered amounts. Charge-offs are recorded as a reduction to the allowance for loan and lease losses and subsequent recoveries of previously charged off amounts are credited to the allowance for loan and lease losses. Collateral dependent loans in the construction, commercial mortgage, and commercial and industrial loan portfolios are charged off to their net realizable value (fair value of collateral, less estimated costs to sell) when loans are considered to be uncollectible. Within the consumer loan portfolio, auto loans and finance leases are reserved once they are 120 days delinquent and are charged off to their estimated net realizable value when collateral deficiency is deemed uncollectible (i.e., when foreclosure/repossession is probable) or when the loan is 365 days past due. Within the other consumer loans class, closed-end loans are charged off when payments are 120 days in arrears, except small personal loans. Open-end (revolving credit) consumer loans, including credit card loans, and small personal loans are charged off when payments are 180 days in arrears. On a quarterly basis, residential mortgage loans that are 180 days delinquent and have an original loan-to-value ratio that is higher than 60% are reviewed and charged-off, as needed, to the fair value of the underlying collateral. Generally, all loans may be charged off or written down to the fair value of the collateral prior to the policies described above if a loss-confirming event occurred. Loss confirming events include, but are not limited to, bankruptcy (unsecured), continued delinquency, or receipt of an asset valuation indicating a collateral deficiency when the asset is the sole source of repayment. The Corporation does not record charge-offs on PCI loans that are performing in accordance with or better than expectations as of the date of acquisition, as the fair value of these loans already reflects a credit component. The Corporation records charge-offs on PCI loans only if actual losses exceed estimated losses incorporated into the fair value recorded at acquisition and the amount is deemed uncollectible. | |||
Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block] | Loans held for sale | ||
Loans that the Corporation intends to sell or that the Corporation does not have the ability and intent to hold for the foreseeable future are classified as held-for-sale loans. Loans held for sale are stated at the lower-of-cost-or-market. Generally, the loans held-for-sale portfolio consists of conforming residential mortgage loans that the Corporation intends to sell to the Government National Mortgage Association (GNMA) and government sponsored entities (GSEs) such as the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC). Generally, residential mortgage loans held for sale are valued on an aggregate portfolio basis and the value is primarily derived from quotations based on the mortgage-backed securities market. The amount by which cost exceeds market value in the aggregate portfolio of loans held for sale, if any, is accounted for as a valuation allowance with changes therein included in the determination of net income and reported as part of mortgage banking activities in the consolidated statement of income (loss). Loan costs and fees are deferred at origination and are recognized in income at the time of sale. The fair value of commercial mortgage and construction loans held for sale is primarily derived from external appraisals with changes in the valuation allowance reported as part of other non-interest income in the consolidated statement of income (loss). | |||
In certain circumstances, the Corporation transfers loans to/from held for sale or held for investment based on a change in strategy. In particular, although no decision to sell any portion of its non-performing loan portfolio has been made, the Corporation continues to evaluate options to further reduce non-performing loan levels. These options could include bulk loan sales. If such a change in holding strategy is made, significant adjustments to the loans' carrying values may be necessary. These loans are transferred to held for sale at the lower of cost or fair value on the date of transfer and establish a new cost basis upon transfer. Write-downs of loans transferred from held for investment to held for sale are recorded as charge-offs at the time of transfer. | |||
Allowance for loan and lease losses [Policy Text Block] | Allowance for loan and lease losses | ||
The Corporation maintains the allowance for loan and lease losses at a level considered adequate to absorb losses currently inherent in the loan and lease portfolio. The Corporation does not maintain an allowance for held-for-sale loans or PCI loans that are performing in accordance with or better than expectations as of the date of acquisition, as the fair values of these loans already reflects a credit component. The allowance for loan and lease losses provides for probable losses that have been identified with specific valuation allowances for individually evaluated impaired loans and for probable losses believed to be inherent in the loan portfolio that have not been specifically identified. The determination of the allowance for loan and lease losses requires significant estimates, including the timing and amounts of expected future cash flows on impaired loans, consideration of current economic conditions, and historical loss experience pertaining to the portfolios and pools of homogeneous loans, all of which may be susceptible to change. | |||
The Corporation evaluates the need for changes to the allowance by portfolio loan segments and classes of loans within certain of those portfolio segments. The Corporation combines loans with similar credit risk characteristics into the following portfolio segments: commercial mortgage, construction, commercial and industrial, residential mortgage, and consumer loans. Classes are usually disaggregations of the portfolio segments. The classes within the residential mortgage segment are residential mortgages guaranteed by the U.S. government and other loans. The classes within the consumer portfolio are auto, finance leases, and other consumer loans. Other consumer loans mainly include unsecured personal loans, credit cards, home equity lines, lines of credits, and marine financing. The classes within the construction loan portfolio are land loans, construction of commercial projects, and construction of residential projects. The commercial mortgage and commercial and industrial segments are not further segmented into classes. The adequacy of the allowance for loan and lease losses is based on judgments related to the credit quality of each portfolio segment. These judgments consider ongoing evaluations of each portfolio segment, including such factors as the economic risks associated with each loan class, the financial condition of specific borrowers, the level of delinquent loans, historical loss experience, the value of any collateral and, where applicable, the existence of any guarantees or other documented support. In addition to the general economic conditions and other factors described above, additional factors considered include the internal risk ratings assigned to loans. An internal risk rating is assigned to each commercial loan at the time of approval and is subject to subsequent periodic review by the Corporation's senior management. The allowance for loan and lease losses is reviewed on a quarterly basis as part of the Corporation's continued evaluation of its asset quality. | |||
The allowance for loan and lease losses is increased through a provision for credit losses that is charged to earnings, based on the quarterly evaluation of the factors previously mentioned, and is reduced by charge-offs, net of recoveries. | |||
The allowance for loan and lease losses consists of specific reserves based upon valuations of loans considered to be impaired and general reserves. A specific valuation allowance is established for individual impaired loans in the commercial mortgage, construction, commercial and industrial, and residential mortgage loan portfolios, primarily when the collateral value of the loan (if the impaired loan is determined to be collateral dependent) or the present value of the expected future cash flows discounted at the loan's effective rate is lower than the carrying amount of that loan. The specific valuation allowance is computed for impaired commercial mortgage, construction, commercial and industrial, and real estate loans with individual principal balances of $1 million or more, TDRs, as well as smaller residential mortgage loans and home equity lines of credit considered impaired based on their delinquency and loan-to-value levels. When foreclosure is probable and for collateral dependent loans, the impairment measure is based on the fair value of the collateral. The fair value of the collateral is generally obtained from appraisals. Updated appraisals are obtained when the Corporation determines that loans are impaired and are generally updated annually thereafter. In addition, appraisals and/or broker price opinions are also obtained for residential mortgage loans based on specific characteristics such as delinquency levels, age of the appraisal, and loan-to-value ratios. The excess of the recorded investment in a collateral dependent loan over the resulting fair value of the collateral is charged-off when deemed uncollectible. | |||
For all other loans, which include small, homogeneous loans, such as auto loans, all classes in the consumer loan portfolio, residential mortgages in amounts under $1 million and commercial and construction loans not considered impaired, the Corporation maintains a general valuation allowance established through a process that begins with estimates of incurred losses based upon various statistical analyses. The general reserve is primarily determined by applying loss factors according to the loan type and assigned risk category (pass, special mention, and substandard not considered to be impaired; all doubtful loans are considered impaired). | |||
The Corporation uses a roll-rate methodology to estimate losses on its consumer loan portfolio based on delinquencies and considering credit bureau score bands. The Corporation tracks the historical portfolio performance to arrive at a weighted average distribution in each subgroup of each delinquency bucket. Roll-to-loss rates (loss factors) are calculated by multiplying the roll rates from each subgroup within the delinquency buckets forward through loss. Once roll rates are calculated, the resulting loss factor is applied to the existing receivables in the applicable subgroups within the delinquency buckets and the end results are aggregated to arrive at the required allowance level. The Corporation's assessment also involves evaluating key qualitative and environmental factors, which include credit and macroeconomic indicators such as unemployment, bankruptcy trends, recent market transactions, and collateral values to account for current market conditions that are likely to cause estimated credit losses to differ from historical loss experience. The Corporation analyzes the expected delinquency migration to determine the future volume of delinquencies. | |||
The non-PCI portion of a credit card portfolio acquired in 2012 was recorded at the fair value on the acquisition date of $353.2 million, net of a discount of $18.2 million. The discount at acquisition was attributable to uncertainties in the cash flows of this portfolio based on an estimation of inherent credit losses. As previously discussed, the discount recorded at acquisition was accreted and recognized in interest income over the period in which substantially all of the inherent losses associated with the non-PCI loans at the acquisition date were estimated to occur. Subsequent to acquisition, the Corporation evaluated its estimate of embedded losses on a quarterly basis. The allowance for non-PCI loans acquired was determined considering the outstanding balance of the portfolio net of any unaccreted discount. To the extent the required allowance exceeded the unaccreted discount, a provision was required. The remaining discount on the credit card portfolio acquired in 2012 was fully accreted into income during the first half of 2014. The provision recorded during 2013 and 2014 relates to new purchases on these non-PCI credit card loans and to the allowance methodology described above. The provision in 2013 and 2014 was not related to changes in expected loan losses assumed in the accounting for the acquisition of the portfolio. | |||
The cash flow analysis for each residential mortgage pool is performed at the individual loan level and then aggregated to the pool level in determining the overall expected loss ratio. The model applies risk-adjusted prepayment curves, default curves, and severity curves to each loan in the pool. For loan restructuring pools, the present value of expected future cash flows under new terms, at the loan's effective interest rate, is taken into consideration. Additionally, the default risk and prepayments related to loan restructurings are based on, among other things, the historical experience of these loans. Loss severity is affected by the expected house price scenario, which is based in part on recent house price trends. Default curves are used in the model to determine expected delinquency levels. The risk-adjusted timing of liquidations and associated costs are used in the model, and are risk-adjusted for the geographic area in which each property is located (Puerto Rico, Florida, or the Virgin Islands). For residential mortgage loans, the determination of reserves includes the incorporation of updated loss factors applicable to loans expected to liquidate over the next twelve months, considering the expected realization of similarly valued assets at disposition. | |||
During the second quarter of 2014, the Corporation made certain enhancements to the general allowance estimation process for commercial loans, which mainly consisted of the following: | |||
Utilization of longer historical loss periods to better reflect the level of incurred losses in portfolio. Historical charge-off rates are calculated by the Corporation on a quarterly basis by tracking cumulative charge-offs experienced over a two-year loss period on loans according to their internal risk rating (referred to as “base rate” for the quarter). Prior to the second quarter enhancements, the Corporation would use the base rate of the current quarter or the average of the last 4 quarters, if greater. During the second quarter of 2014, the Corporation eliminated the use of the “greater of” approach and adopted the utilization of the base rate average of the last 8 quarters. This change captures a longer historical period that helps mitigate period to period volatility in the loss rates. | |||
Enhancements of the environmental factors adjustment. Prior to the second quarter of 2014 enhancements, these adjustments were applied in the form of basis point additions to the loss ratio based on changes in credit and economic indicators observed in the most recent periods. Beginning in the second quarter of 2014, the resulting factor derived from a set of risk-based ratings and weights assigned to credit and economic indicators over a reasonable period is applied to a developed expected range of historical losses, in order to adjust the base rates. These enhancements result in a framework that can be applied more consistently, by having a more granular analysis that better captures trends in economic conditions and the impact on the Corporation's portfolio. | |||
In addition, the calculation of loss rates for asset classifications with limited or zero loss history was improved to consider these loans' migration experience. | |||
At the date of implementation, the Corporation performed a parallel computation of the general reserve for commercial loans. The enhancements to the general allowance estimation process resulted in a net decrease to the allowance for loan losses of $4.8 million as of the implementation date of May 31, 2014. | |||
In the third quarter of 2014, similar enhancements to the environmental factors adjustment framework were applied to the consumer loans portfolio. The framework was defined for secured and unsecured loans to consider the specific behaviors separately. With respect to the historical charge-off rates, during the third quarter of 2014, the Corporation adopted the utilization of the base rate calculated as the average of the net charge-off ratio for the 12-month period preceding the most recent four quarters. Previously, the base rate was calculated as the average of the last two years' annual net charge-off ratio. The effect of these enhancements on the allowance for consumer loans was immaterial as of the implementation date of August 31, 2014. | |||
Transfers and Servicing of Financial Assets, Policy [Policy Text Block] | Transfers and servicing of financial assets and extinguishment of liabilities | ||
After a transfer of financial assets in a transaction that qualifies for sale accounting, the Corporation derecognizes the financial assets when control has been surrendered, and derecognizes liabilities when extinguished. | |||
The transfer of financial assets in which the Corporation surrenders control over the assets is accounted for as a sale to the extent that consideration other than beneficial interests is received in exchange. The criteria that must be met to determine that the control over transferred assets has been surrendered include: (1) the assets must be isolated from creditors of the transferor, (2) the transferee must obtain the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the transferor cannot maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. When the Corporation transfers financial assets and the transfer fails any one of the above criteria, the Corporation is prevented from derecognizing the transferred financial assets and the transaction is accounted for as a secured borrowing. | |||
Servicing Assets [Policy Text Block] | Servicing Assets | ||
The Corporation recognizes as separate assets the rights to service loans for others, whether those servicing assets are originated or purchased. The Corporation is actively involved in the securitization of pools of FHA-insured and VA-guaranteed mortgages for the issuance of GNMA mortgage-backed securities. Also, certain conventional conforming loans are sold to FNMA or FHLMC with servicing retained. When the Corporation securitizes or sells mortgage loans, it recognizes any retained interest, based on its fair value. | |||
Servicing assets (“MSRs”) retained in a sale or securitization arise from contractual agreements between the Corporation and investors in mortgage securities and mortgage loans. The value of MSRs is derived from the net positive cash flows associated with the servicing contracts. Under these contracts, the Corporation performs loan-servicing functions in exchange for fees and other remuneration. The servicing functions typically include: collecting and remitting loan payments, responding to borrower inquiries, accounting for principal and interest, holding custodial funds for payment of property taxes and insurance premiums, supervising foreclosures and property dispositions, and generally administering the loans. The servicing rights, included as part of other assets in the statements of financial condition, entitle the Corporation to annual servicing fees based on the outstanding principal balance of the mortgage loans and the contractual servicing rate. The servicing fees are credited to income on a monthly basis when collected and recorded as part of mortgage banking activities in the consolidated statements of income (loss). In addition, the Corporation generally receives other remuneration consisting of mortgagor-contracted fees such as late charges and prepayment penalties, which are credited to income when collected. | |||
Considerable judgment is required to determine the fair value of the Corporation's servicing assets. Unlike highly liquid investments, the market value of servicing assets cannot be readily determined because these assets are not actively traded in securities markets. The initial carrying value of the servicing assets is generally determined based on its fair value. The fair value of the MSRs is determined based on a combination of market information on trading activity (MSR trades and broker valuations), benchmarking of servicing assets (valuation surveys), and cash flow modeling. The valuation of the Corporation's MSRs incorporates two sets of assumptions: (1) market derived assumptions for discount rates, servicing costs, escrow earnings rates, floating earnings rates, and the cost of funds and (2) market assumptions calibrated to the Corporation's loan characteristics and portfolio behavior for escrow balances, delinquencies and foreclosures, late fees, prepayments, and prepayment penalties. | |||
Once recorded, MSRs are periodically evaluated for impairment. Impairment occurs when the current fair value of the MSRs is less than its carrying value. If MSRs are impaired, the impairment is recognized in current-period earnings and the carrying value of the MSRs is adjusted through a valuation allowance. If the value of the MSRs subsequently increases, the recovery in value is recognized in current period earnings and the carrying value of the MSRs is adjusted through a reduction in the valuation allowance. For purposes of performing the MSR impairment evaluation, the servicing portfolio is stratified on the basis of certain risk characteristics such as region, terms, and coupons. An other-than-temporary impairment analysis is prepared to evaluate whether a loss in the value of the MSRs, if any, is other than temporary or not. When the recovery of the value is unlikely in the foreseeable future, a write-down of the MSRs in the stratum to its estimated recoverable value is charged to the valuation allowance. | |||
The servicing assets are amortized over the estimated life of the underlying loans based on an income forecast method as a reduction of servicing income. The income forecast method of amortization is based on projected cash flows. A particular periodic amortization is calculated by applying to the carrying amount of the MSRs the ratio of the cash flows projected for the current period to total remaining net MSR forecasted cash flow. | |||
Premises and equipment [Policy Text Block] | Premises and equipment | ||
Premises and equipment are carried at cost, net of accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful life of each type of asset. Amortization of leasehold improvements is computed over the terms of the leases (contractual term plus lease renewals that are “reasonably assured”) or the estimated useful lives of the improvements, whichever is shorter. Costs of maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. Costs of renewals and betterments are capitalized. When assets are sold or disposed of, their cost and related accumulated depreciation are removed from the accounts and any gain or loss is reflected in earnings as part of other non-interest income in the statement of income (loss). When the asset is no longer used in operations, and the Corporation intends to sell it, the asset is reclassified to other assets held-for-sale and is reported at the lower of carrying amount or fair value less cost to sell. | |||
The Corporation has operating lease agreements primarily associated with the rental of premises to support the branch network or for general office space. Certain of these arrangements are noncancelable and provide for rent escalation and renewal options. Rent expense on noncancelable operating leases with scheduled rent increases is recognized on a straight-line basis over the lease term. | |||
Other real estate owned (OREO) [Policy Text Block] | Other real estate owned (OREO) | ||
OREO, which consists of real estate acquired in settlement of loans, is recorded at the lower of cost (carrying value of the loan) or fair value minus estimated cost to sell the real estate acquired. Generally, loans have been written down to their net realizable value prior to foreclosure. Any further reduction to their net realizable value is recorded with a charge to the allowance for loan losses at foreclosure or a short-time after foreclosure. Thereafter, gains or losses resulting from the sale of these properties and losses recognized on the periodic reevaluations of these properties are credited or charged to earnings and are included as part of net loss on OREO operations in the statements of income (loss). The cost of maintaining and operating these properties is expensed as incurred. The Corporation estimates fair values primarily based on appraisals, when available, and the net realizable value is reviewed and updated periodically depending of the type of property. | |||
Goodwill and other intangible assets [Policy Text Block] | Goodwill and other intangible assets | ||
Business combinations are accounted for using the purchase method of accounting. Assets acquired and liabilities assumed are recorded at estimated fair value as of the date of acquisition. After initial recognition, any resulting intangible assets are accounted for as follows: | |||
Goodwill | |||
The Corporation evaluates goodwill for impairment on an annual basis, generally during the fourth quarter, or more often if events or circumstances indicate there may be impairment. The Corporation evaluated goodwill for impairment as of October 1, 2014. Goodwill impairment testing is performed at the segment (or “reporting unit”) level. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill has been assigned to a reporting unit, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or internally generated, are available to support the value of the goodwill. The Corporation's goodwill is related to the acquisition of FirstBank Florida in 2005. | |||
The Corporation bypassed the qualitative assessment in 2014 and proceeded directly to perform the first step of the two-step goodwill impairment test. The first step (the “Step 1”) involves a comparison of the estimated fair value of the reporting unit to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is not considered impaired. If the carrying value exceeds the estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of the impairment. | |||
The second step (the “Step 2”), if necessary, involves calculating an implied fair value of the goodwill for each reporting unit for which the Step 1 indicated a potential impairment. The implied fair value of goodwill is determined in a manner similar to the calculation of the amount of goodwill in a business combination, by measuring the excess of the estimated fair value of the reporting unit, as determined in the Step 1, over the aggregate estimated fair values of the individual assets, liabilities, and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. | |||
In determining the fair value of a reporting unit, which is based on the nature of the business and the reporting unit's current and expected financial performance, the Corporation uses a combination of methods, including market price multiples of comparable companies, as well as a discounted cash flow analysis (“DCF”). The Corporation evaluates the results obtained under each valuation methodology to identify and understand the key value drivers in order to ascertain that the results obtained are reasonable and appropriate under the circumstances. | |||
The computations require management to make estimates and assumptions. Critical assumptions that are used as part of these evaluations include: | |||
a selection of comparable publicly traded companies, based on size, performance, and asset quality; | |||
the discount rate applied to future earnings, based on an estimate of the cost of equity; | |||
the potential future earnings of the reporting unit; and | |||
the market growth and new business assumptions. | |||
For purposes of the market comparable approach, valuation was determined based on market multiples for comparable companies and market participant assumptions applied to the reporting unit to derive an implied value of equity. | |||
For purposes of the DCF analysis approach, the valuation is based on estimated future cash flows. The financial projections used in the DCF analysis for the reporting unit are based on the most recent available data. The growth assumptions included in these projections are based on management's expectations of the reporting unit's financial prospects as well as particular plans for the entity (i.e., restructuring plans). The cost of equity was estimated using the capital asset pricing model using comparable companies, an equity risk premium, the rate of return of a “riskless” asset, a size premium based on the size of the reporting unit, and a company specific premium. The resulting discount rate was analyzed in terms of reasonability given current market conditions. | |||
The Step 1 evaluation of goodwill allocated to the Florida reporting unit, which is one level below the United States business segment, under both valuation approaches (market and DCF) indicated that the fair value of the unit was above the carrying amount of its equity book value as of the valuation date (October 1), which meant that Step 2 was not undertaken. Based on the analysis under both the income and market approaches, the estimated fair value of the reporting units exceeds the carrying amount of the unit, including goodwill, at the evaluation date. | |||
The Corporation engaged a third-party valuator to assist management in the annual evaluation of the Florida unit's goodwill as of the October 1 valuation date. In reaching its conclusion on impairment, management discussed with the valuator the methodologies, assumptions, and results supporting the relevant values for the goodwill and determined that they were reasonable. | |||
The goodwill impairment evaluation process requires the Corporation to make estimates and assumptions with regards to the fair value of reporting units. Actual values may differ significantly from these estimates. Such differences could result in future impairment of goodwill that would, in turn, negatively impact the Corporation's results of operations and the profitability of the reporting unit where goodwill is recorded. | |||
Goodwill was not impaired as of December 31, 2014 or 2013, nor was any goodwill written off due to impairment during 2014, 2013, and 2012. | |||
Other Intangibles | |||
Core deposit intangibles are amortized over their estimated lives, generally on a straight-line basis, and are reviewed periodically for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. | |||
The Corporation performed impairment tests for the years ended December 31, 2014, 2013, and 2012 and determined that no impairment was needed to be recognized for other intangible assets. | |||
In connection with the acquisition of a FirstBank-branded credit card loan portfolio in 2012, the Corporation recognized at acquisition a purchased credit card relationship intangible of $24.5 million ($16.4 million and $19.8 million as of December 31, 2014 and 2013, respectively) which is being amortized on an accelerated basis based on the estimated attrition rate of the purchased credit card accounts, which reflects the pattern in which the economic benefits of the intangible asset are consumed. These benefits are consumed as the revenue stream generated by the cardholder relationship is realized. For further disclosures, refer to Note 12 to the consolidated financial statements. | |||
Repurchase Agreements, Valuation, Policy [Policy Text Block] | Securities sold under agreements to repurchase | ||
The Corporation sells securities under agreements to repurchase the same or similar securities. Generally, similar securities are securities from the same issuer, with identical form and type, similar maturity, identical contractual interest rates, similar assets as collateral, and the same aggregate unpaid principal amount. The Corporation retains control over the securities sold under these agreements. Accordingly, these agreements are considered financing transactions and the securities underlying the agreements remain in the asset accounts. The counterparty to certain agreements may have the right to repledge the collateral by contract or custom. Such assets are presented separately in the statements of financial condition as securities pledged to creditors that can be repledged. | |||
From time to time, the Corporation modifies repurchase agreements to take advantage of prevailing interest rates. Following applicable GAAP guidance, if the Corporation determines that the debt under the modified terms is substantially different from the original terms, the modification must be accounted for as an extinguishment of debt. Modified terms are considered substantially different if the present value of the cash flows under the terms of the new debt instrument is at least 10% different from the present value of the remaining cash flows under the terms of the original instrument. The new debt instrument will be initially recorded at fair value, and that amount will be used to determine the debt extinguishment gain or loss to be recognized through the statement of income (loss) and the effective rate of the new instrument. If the Corporation determines that the debt under the modified terms is not substantially different, then the new effective interest rate shall be determined based on the carrying amount of the original debt instrument. None of the repurchase agreements modified in the past were considered to be substantially different from the original terms, and therefore, these modifications were not accounted for as extinguishments of debt. | |||
Rewards Liability [Policy Text Block] | Rewards Liability | ||
The Corporation offers products, primarily credit cards, that offer reward program members with various rewards, such as airline tickets, cash, or merchandise, based on account activity. The Corporation generally recognizes the cost of rewards as part of business promotion expenses when the rewards are earned by the customer and, at that time, records the corresponding rewards liability. The reward liability is computed based on points earned to date that are expected to be redeemed and the average cost per point redemption. The reward liability is reduced as points are redeemed. In estimating the reward liability, the Corporation considers historical reward redemption behavior, the terms of the current reward program, and the card purchase activity. The reward liability is sensitive to changes in the reward redemption type and redemption rate, which is based on the expectation that the vast majority of all points earned will eventually be redeemed. The reward liability, which is included in other liabilities in the consolidated statement of financial condition, totaled $9.0 million and $8.1 million as of December 31, 2014 and 2013, respectively. | |||
Income Tax [PolicyText Block] | Income taxes | ||
The Corporation uses the asset and liability method for the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Corporation's financial statements or tax returns. Deferred income tax assets and liabilities are determined for differences between financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. The computation is based on enacted tax laws and rates applicable to periods in which the temporary differences are expected to be recovered or settled. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. In making such assessment, significant weight is given to evidence that can be objectively verified, including both positive and negative evidence. The authoritative guidance for accounting for income taxes requires the consideration of all sources of taxable income available to realize the deferred tax asset, including the future reversal of existing temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in carryback years, and tax planning strategies. In estimating taxes, management assesses the relative merits and risks of the appropriate tax treatment of transactions taking into account statutory, judicial, and regulatory guidance. Refer to Note 24 to the consolidated financial statements for additional information. | |||
Under the authoritative accounting guidance, income tax benefits are recognized and measured based on a two-step analysis: 1) a tax position must be more likely than not to be sustained based solely on its technical merits in order to be recognized, and 2) the benefit is measured at the largest dollar amount of that position that is more likely than not to be sustained upon settlement. The difference between the benefit recognized in accordance with this analysis and the tax benefit claimed on a tax return is referred to as an Unrecognized Tax Benefit (“UTB”). The Corporation classifies interest and penalties, if any, related to UTBs as components of income tax expense. Refer to Note 24 for required disclosures and further information. | |||
Treasury stock [Policy Text Block] | Treasury stock | ||
The Corporation accounts for treasury stock at par value. Under this method, the treasury stock account is increased by the par value of each share of common stock reacquired. Any excess paid per share over the par value is debited to additional paid-in capital for the amount per share that was originally credited. Any remaining excess is charged to retained earnings. | |||
Stock-based compensation [Policy Text Block] | Stock-based compensation | ||
Compensation cost is recognized in the financial statements for all share-based payment grants. Between 1997 and 2007, the Corporation had a stock option plan (the “1997 stock option plan”) covering eligible employees. On January 21, 2007, the 1997 stock option plan expired; all outstanding awards under this plan continue to be in full force and effect, subject to their original terms. No awards for shares could be granted under the 1997 stock option plan as of its expiration. | |||
On April 29, 2008, the Corporation's stockholders approved the First BanCorp 2008 Omnibus Incentive Plan, as amended (the “Omnibus Plan”). The Omnibus Plan provides for equity-based compensation incentives (the “awards”) through the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, and other stock-based awards. The compensation cost for an award, determined based on the estimate of the fair value at the grant date (considering forfeitures and any postvesting restrictions), is recognized over the period during which an employee or director is required to provide services in exchange for an award, which is the vesting period. | |||
Stock-based compensation accounting guidance requires the Corporation to develop an estimate of the number of share-based awards that will be forfeited due to employee or director turnover. Quarterly changes in the estimated forfeiture rate may have a significant effect on share-based compensation, as the effect of adjusting the rate for all expense amortization is recognized in the period in which the forfeiture estimate is changed. If the actual forfeiture rate is higher than the estimated forfeiture rate, then an adjustment is made to increase the estimated forfeiture rate, which will result in a decrease in the expense recognized in the financial statements. If the actual forfeiture rate is lower than the estimated forfeiture rate, an adjustment is made to decrease the estimated forfeiture rate, which will result in an increase in the expense recognized in the financial statements. When unvested options or shares of restricted stock are forfeited, any compensation expense previously recognized on the forfeited awards is reversed in the period of the forfeiture. For additional information regarding the Corporation's equity-based compensation and awards granted, refer to Note 19. | |||
Comprehensive income [Policy Text Block] | Comprehensive income | ||
Comprehensive income for First BanCorp. includes net income and the unrealized gain (loss) on available-for-sale securities, net of estimated tax effects. | |||
Segment Information [Policy Text Block] | Segment Information | ||
The Corporation reports financial and descriptive information about its reportable segments (see Note 31). Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by management in deciding how to allocate resources and in assessing performance. The Corporation's management determined that the segregation that best fulfills the segment definition described above is by lines of business for its operations in Puerto Rico, the Corporation's principal market, and by geographic areas for its operations outside of Puerto Rico. As of December 31, 2014, the Corporation had six operating segments that are all reportable segments: Commercial and Corporate Banking; Mortgage Banking; Consumer (Retail) Banking; Treasury and Investments; United States Operations; and Virgin Islands Operations. Refer to Note 31 for additional information. | |||
Valuation of financial instruments [Policy Text Block] | Valuation of financial instruments | ||
The measurement of fair value is fundamental to the Corporation's presentation of its financial condition and results of operations. The Corporation holds fixed income and equity securities, derivatives, investments, and other financial instruments at fair value. The Corporation holds its investments and liabilities mainly to manage liquidity needs and interest rate risks. A significant part of the Corporation's total assets is reflected at fair value on the Corporation's financial statements. | |||
The FASB authoritative guidance for fair value measurement defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This guidance also establishes a fair value hierarchy for classifying financial instruments. The hierarchy is based on whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. Three levels of inputs may be used to measure fair value: | |||
Level 1 | Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | ||
Level 2 | Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||
Level 3 | Valuations are observed from unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||
Under the fair value accounting guidance, an entity has the irrevocable option to elect, on a contract-by-contract basis, to measure certain financial assets and liabilities at fair value at the inception of the contract and, thereafter, to reflect any changes in fair value in current earnings. The Corporation did not make any fair value option election as of December 31, 2014 or 2013. See Note 26 for additional information. | |||
Income recognition- Insurance agencies business [Policy Text Block] | Income recognition— Insurance agency | ||
Commission revenue is recognized as of the effective date of the insurance policy. Additional premiums and rate adjustments are recorded as they occur. The Corporation also receives contingent commissions from insurance companies as additional incentive for achieving specified premium volume goals and/or the loss experience of the insurance placed by the Corporation. Contingent commissions from insurance companies are recognized when determinable, which is generally when such commissions are received or when the amount to be received is reported to the Corporation by the insurance company. An allowance is created for expected adjustments to commissions earned relating to policy cancellations. | |||
Advertising costs [Policy Text Block] | Advertising costs | ||
Advertising costs for all reporting periods are expensed as incurred. | |||
Earnings per common share [Policy Text Block] | Earnings per common share | ||
Earnings (loss) per share-basic is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of outstanding common shares. Net income (loss) attributable to common stockholders represents net income (loss) adjusted for any preferred stock dividends, including dividends declared, cumulative dividends related to the current dividend period that have not been declared as of the end of the period, if any, and the accretion of discounts on preferred stock issuances, if any. Basic weighted average common shares outstanding excludes unvested shares of restricted stock. For 2014, the net income attributable to common stockholders also includes the one-time effect of the issuance of common stock in the conversion of the Series A through E preferred stock. These transactions are further discussed in Note 20. The computation of earnings per share-diluted is similar to the computation of earnings per share-basic except that the number of weighted average common shares is increased to include the number of additional common shares that would have been outstanding if the dilutive common shares had been issued, referred to as potential common shares. | |||
Potential common shares consist of common stock issuable upon the assumed exercise of stock options, unvested shares of restricted stock, and outstanding warrants using the treasury stock method. This method assumes that the potential common shares are issued and the proceeds from the exercise, in addition to the amount of compensation cost attributable to future services, are used to purchase common stock at the exercise date. The difference between the numbers of potential shares issued and potential shares purchased is added as incremental shares to the actual number of shares outstanding to compute diluted earnings per share. Stock options, unvested shares of restricted stock, and outstanding warrants that result in lower potential shares issued than potential shares purchased under the treasury stock method are not included in the computation of dilutive earnings per share since their inclusion would have an antidilutive effect on earnings per share. | |||
MONEY_MARKET_INVESTMENTS_Table
MONEY MARKET INVESTMENTS (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Money Market Investments [Abstract] | ||||||
Schedule Of Money Market Investments [Table Text Block] | Money market investments as of December 31, 2014 and 2013 were as follows: | |||||
2014 | 2013 | |||||
Balance | ||||||
(Dollars in thousands) | ||||||
Time deposits with other financial institutions, weighted average interest rate 0.18% | ||||||
(2013- 0.20%) | $ | 300 | $ | 300 | ||
Other short-term investments, weighted average interest rate of 0.15% | ||||||
(2013 - weighted average interest rate of 0.34%) | 16,661 | 201,069 | ||||
$ | 16,961 | $ | 201,369 |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Investment Securities Available for Sale [Table Text Block] | 31-Dec-14 | ||||||||||||||||||||
Amortized cost | Noncredit Loss Component of OTTI Recorded in OCI | Gross | Fair value | Weighted average yield% | |||||||||||||||||
Unrealized | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
U.S. Treasury securities: | |||||||||||||||||||||
Due within one year | $ | 7,498 | $ | - | $ | 1 | $ | - | $ | 7,499 | 0.11 | ||||||||||
Obligations of U.S. | |||||||||||||||||||||
government-sponsored | |||||||||||||||||||||
agencies: | |||||||||||||||||||||
After 1 to 5 years | 260,889 | - | 42 | 4,219 | 256,712 | 1.22 | |||||||||||||||
After 5 to 10 years | 78,234 | - | 246 | 2,077 | 76,403 | 1.72 | |||||||||||||||
Puerto Rico government | |||||||||||||||||||||
obligations: | |||||||||||||||||||||
After 1 to 5 years | 39,827 | - | - | 12,419 | 27,408 | 4.49 | |||||||||||||||
After 5 to 10 years | 886 | - | 1 | - | 887 | 5.2 | |||||||||||||||
After 10 years | 20,498 | - | - | 5,571 | 14,927 | 5.83 | |||||||||||||||
United States and Puerto | |||||||||||||||||||||
Rico government | |||||||||||||||||||||
obligations | 407,832 | - | 290 | 24,286 | 383,836 | 1.86 | |||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
FHLMC certificates: | |||||||||||||||||||||
After 10 years | 315,311 | - | 1,743 | 1,260 | 315,794 | 2.17 | |||||||||||||||
GNMA certificates: | |||||||||||||||||||||
After 1 to 5 years | 39 | - | 1 | - | 40 | 3.26 | |||||||||||||||
After 5 to 10 years | 17,108 | - | 501 | - | 17,609 | 3.65 | |||||||||||||||
After 10 years | 338,842 | - | 20,957 | - | 359,799 | 3.83 | |||||||||||||||
355,989 | - | 21,459 | - | 377,448 | 3.83 | ||||||||||||||||
FNMA certificates: | |||||||||||||||||||||
After 1 to 5 years | 4,160 | - | 181 | - | 4,341 | 3.4 | |||||||||||||||
After 5 to 10 years | 9,584 | - | 521 | 5 | 10,100 | 3.49 | |||||||||||||||
After 10 years | 837,597 | - | 7,756 | 4,854 | 840,499 | 2.36 | |||||||||||||||
851,341 | - | 8,458 | 4,859 | 854,940 | 2.37 | ||||||||||||||||
Other mortgage pass-through | |||||||||||||||||||||
trust certificates: | |||||||||||||||||||||
After 5 to 10 years | 111 | - | 1 | - | 112 | 7.27 | |||||||||||||||
After 10 years | 45,677 | 12,141 | - | - | 33,536 | 2.17 | |||||||||||||||
45,788 | 12,141 | 1 | - | 33,648 | 2.17 | ||||||||||||||||
Total mortgage-backed | |||||||||||||||||||||
securities | 1,568,429 | 12,141 | 31,661 | 6,119 | 1,581,830 | 2.66 | |||||||||||||||
Equity securities (without | |||||||||||||||||||||
Total investment securities | |||||||||||||||||||||
available for sale | $ | 1,976,261 | $ | 12,141 | $ | 31,951 | $ | 30,405 | $ | 1,965,666 | 2.49 | ||||||||||
31-Dec-13 | |||||||||||||||||||||
Amortized cost | Noncredit Loss Component of OTTI Recorded in OCI | Gross | Fair value | Weighted average yield% | |||||||||||||||||
Unrealized | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
U.S. Treasury securities: | |||||||||||||||||||||
Due within one year | $ | 7,498 | $ | - | $ | 1 | $ | - | $ | 7,499 | 0.12 | ||||||||||
Obligations of U.S. | |||||||||||||||||||||
government-sponsored | |||||||||||||||||||||
agencies: | |||||||||||||||||||||
After 1 to 5 years | 50,000 | - | - | 1,408 | 48,592 | 1.05 | |||||||||||||||
After 5 to 10 years | 214,271 | - | - | 13,368 | 200,903 | 1.31 | |||||||||||||||
Puerto Rico government | |||||||||||||||||||||
obligations: | |||||||||||||||||||||
Due within one year | 10,000 | - | - | 210 | 9,790 | 3.5 | |||||||||||||||
After 5 to 10 years | 40,699 | - | - | 12,962 | 27,737 | 4.51 | |||||||||||||||
After 10 years | 20,309 | - | - | 6,506 | 13,803 | 5.82 | |||||||||||||||
United States and Puerto | |||||||||||||||||||||
Rico government | |||||||||||||||||||||
obligations | 342,777 | - | 1 | 34,454 | 308,324 | 1.96 | |||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
FHLMC certificates: | |||||||||||||||||||||
After 10 years | 332,766 | - | 133 | 10,712 | 322,187 | 2.16 | |||||||||||||||
GNMA certificates: | |||||||||||||||||||||
After 1 to 5 years | 86 | - | 4 | - | 90 | 3.48 | |||||||||||||||
After 5 to 10 years | 800 | - | 37 | - | 837 | 2.47 | |||||||||||||||
After 10 years | 425,589 | - | 18,492 | - | 444,081 | 3.82 | |||||||||||||||
426,475 | - | 18,533 | - | 445,008 | 3.82 | ||||||||||||||||
FNMA certificates: | |||||||||||||||||||||
After 1 to 5 years | 1,389 | - | 84 | - | 1,473 | 4.82 | |||||||||||||||
After 5 to 10 years | 7,765 | - | 389 | - | 8,154 | 4.09 | |||||||||||||||
After 10 years | 882,798 | - | 2,984 | 33,626 | 852,156 | 2.36 | |||||||||||||||
891,952 | - | 3,457 | 33,626 | 861,783 | 2.38 | ||||||||||||||||
Collateralized mortgage | |||||||||||||||||||||
obligations issued or | |||||||||||||||||||||
guaranteed by the FHLMC: | |||||||||||||||||||||
After 1 to 5 years | 82 | - | - | 1 | 81 | 3.01 | |||||||||||||||
Other mortgage pass-through | |||||||||||||||||||||
trust certificates: | |||||||||||||||||||||
Over 5 to 10 years | 127 | - | 1 | - | 128 | 7.27 | |||||||||||||||
After 10 years | 55,048 | 14,310 | - | - | 40,738 | 2.24 | |||||||||||||||
55,175 | 14,310 | 1 | - | 40,866 | 2.24 | ||||||||||||||||
Total mortgage-backed | |||||||||||||||||||||
securities | 1,706,450 | 14,310 | 22,124 | 44,339 | 1,669,925 | 2.69 | |||||||||||||||
Equity securities (without | |||||||||||||||||||||
contractual maturity)(1) | 35 | - | - | 2 | 33 | - | |||||||||||||||
Total investment securities | |||||||||||||||||||||
available for sale | $ | 2,049,262 | $ | 14,310 | $ | 22,125 | $ | 78,795 | $ | 1,978,282 | 2.57 | ||||||||||
-1 | Represents common shares of another financial institution in Puerto Rico. | ||||||||||||||||||||
Available-for-Sale Investments' Fair Value and Gross Unrealized Losses [Table Text Block] | As of December 31, 2014 | ||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||||||
Debt securities: | |||||||||||||||||||||
Puerto Rico government | |||||||||||||||||||||
obligations | $ | - | $ | - | $ | 42,335 | $ | 17,990 | $ | 42,335 | $ | 17,990 | |||||||||
U.S. government agencies | |||||||||||||||||||||
obligations | 46,436 | 74 | 257,996 | 6,222 | 304,432 | 6,296 | |||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
FNMA | 2,038 | 5 | 541,642 | 4,854 | 543,680 | 4,859 | |||||||||||||||
FHLMC | - | - | 135,277 | 1,260 | 135,277 | 1,260 | |||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||
Other mortgage pass-through trust | |||||||||||||||||||||
certificates | - | - | 33,536 | 12,141 | 33,536 | 12,141 | |||||||||||||||
$ | 48,474 | $ | 79 | $ | 1,010,786 | $ | 42,467 | $ | 1,059,260 | $ | 42,546 | ||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||||||
Debt securities: | |||||||||||||||||||||
Puerto Rico government | |||||||||||||||||||||
obligations | $ | 23,156 | $ | 5,977 | $ | 28,174 | $ | 13,701 | $ | 51,330 | $ | 19,678 | |||||||||
U.S. government agencies | |||||||||||||||||||||
obligations | 175,369 | 8,913 | 74,126 | 5,863 | 249,495 | 14,776 | |||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
FNMA | 748,215 | 33,626 | - | - | 748,215 | 33,626 | |||||||||||||||
FHLMC | 286,208 | 10,712 | - | - | 286,208 | 10,712 | |||||||||||||||
Collateralized mortgage | |||||||||||||||||||||
obligations issued or | |||||||||||||||||||||
guaranteed by FHLMC | - | - | 81 | 1 | 81 | 1 | |||||||||||||||
Other mortgage pass-through trust | |||||||||||||||||||||
certificates | - | - | 40,738 | 14,310 | 40,738 | 14,310 | |||||||||||||||
Equity securities | 33 | 2 | - | - | 33 | 2 | |||||||||||||||
$ | 1,232,981 | $ | 59,230 | $ | 143,119 | $ | 33,875 | $ | 1,376,100 | $ | 93,105 | ||||||||||
OTTI Losses on Available-for-Sale Debt Securities [Table Text Block] | Private label MBS | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Total other-than-temporary impairment losses | $ | - | $ | - | |||||||||||||||||
Portion of other-than-temporary impairment losses previously recognized in OCI | -388 | -117 | |||||||||||||||||||
Net impairment losses recognized in earnings | $ | -388 | $ | -117 | |||||||||||||||||
Roll-Forward of Credit Losses on Debt Securities Held by Corporation [Table Text Block] | The following table summarizes the roll-forward of credit losses on debt securities held by the Corporation for which a portion of an OTTI is recognized in OCI: | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Credit losses at the beginning of the year | $ | 5,389 | $ | 5,272 | |||||||||||||||||
Additions: | |||||||||||||||||||||
Credit losses on debt securities for which an OTTI was | |||||||||||||||||||||
previously recognized | 388 | 117 | |||||||||||||||||||
Ending balance of credit losses on debt securities held | |||||||||||||||||||||
for which a portion of an OTTI was recognized in OCI | $ | 5,777 | $ | 5,389 | |||||||||||||||||
Significant Assumptions in Valuation of Private Label MBS [Table Text Block] | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Average | Range | Average | Range | ||||||||||||||||||
Discount rate | 14.50% | 14.50% | 14.50% | 14.50% | |||||||||||||||||
Prepayment rate | 32% | 19.89% - 100.00% | 29% | 15.86% - 100.00% | |||||||||||||||||
Projected Cumulative Loss Rate | 7.90% | 0.64% - 80.00% | 6.80% | 0.58% - 38.16% | |||||||||||||||||
No OTTI losses on equity securities held in the available-for-sale investment portfolio were recognized in 2014. The Corporation recorded OTTI losses of $42 thousand on equity securities held in the available-for-sale investment portfolio for the year ended December 31, 2013. | |||||||||||||||||||||
Schedule of aggregate amortized cost and approximate market value of investment securities available for sale [Table Text Block] | The aggregate amortized cost and approximate market value of investment securities available for sale as of December 31, 2014 by contractual maturity, are shown below: | ||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Within 1 year | $ | 7,498 | $ | 7,499 | |||||||||||||||||
After 1 to 5 years | 304,915 | 288,501 | |||||||||||||||||||
After 5 to 10 years | 105,923 | 105,111 | |||||||||||||||||||
After 10 years | 1,557,925 | 1,564,555 | |||||||||||||||||||
Total investment securities available for sale | $ | 1,976,261 | $ | 1,965,666 | |||||||||||||||||
Schedule of Available-for-sale Securities by issuer type [Table Text Block] | 2014 | 2013 | |||||||||||||||||||
Amortized | Amortized | ||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
FHLMC | $ | 340,227 | $ | 340,723 | $ | 332,848 | $ | 322,268 | |||||||||||||
GNMA | 355,989 | 377,448 | 426,475 | 445,008 | |||||||||||||||||
FNMA | 922,883 | 926,189 | 891,952 | 861,783 | |||||||||||||||||
FHLB | 232,733 | 227,003 | 264,271 | 249,495 | |||||||||||||||||
INTEREST_AND_DIVIDEND_ON_INVES1
INTEREST AND DIVIDEND ON INVESTMENTS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Interest and Dividend on Investments [Abstract] | ||||||||||
Schedule of of interest on investments and FHLB dividend income [Table Text Block] | Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Mortgage-backed securities: | ||||||||||
Taxable | $ | 16,303 | $ | 19,566 | $ | 23,989 | ||||
Exempt | 28,606 | 25,955 | 11,543 | |||||||
44,909 | 45,521 | 35,532 | ||||||||
PR government obligations, U.S. Treasury securities, and U.S. | ||||||||||
government agencies: | ||||||||||
Taxable | 1,357 | 1,218 | 1,468 | |||||||
Exempt | 5,446 | 5,429 | 6,785 | |||||||
6,803 | 6,647 | 8,253 | ||||||||
Equity securities: | ||||||||||
Taxable | - | - | 6 | |||||||
Other investment securities (including FHLB dividends) | ||||||||||
Taxable | 1,169 | 1,359 | 1,503 | |||||||
Total interest income on investment securities | 52,881 | 53,527 | 45,294 | |||||||
Interest on money market instruments: | ||||||||||
Taxable | 1,734 | 1,231 | 1,137 | |||||||
Exempt | 158 | 696 | 690 | |||||||
Total interest income on money market instruments | 1,892 | 1,927 | 1,827 | |||||||
Total interest and dividend income on investments and money | ||||||||||
market instruments | $ | 54,773 | $ | 55,454 | $ | 47,121 | ||||
Schedule of components of interest and dividend income on investments [Table Text Block] | The following table summarizes the components of interest and dividend income on investments: | |||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Interest income on investment securities and money | ||||||||||
market investments | $ | 53,604 | $ | 54,095 | $ | 45,694 | ||||
Dividends on FHLB stock | 1,169 | 1,359 | 1,427 | |||||||
Total interest income and dividends on investments | $ | 54,773 | $ | 55,454 | $ | 47,121 |
LOAN_PORTFOLIO_Tables
LOAN PORTFOLIO (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Loan Portfolio Held for Investment [Table Text Block] | December 31, | December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Residential mortgage loans, mainly secured by first mortgages (1)(2) | $ | 3,011,187 | $ | 2,549,008 | |||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||||
Construction loans | 123,480 | 168,713 | |||||||||||||||||||||||||||||||
Commercial mortgage loans | 1,665,787 | 1,823,608 | |||||||||||||||||||||||||||||||
Commercial and Industrial loans (3) | 2,479,437 | 2,788,250 | |||||||||||||||||||||||||||||||
Loans to a local financial institution collateralized by | |||||||||||||||||||||||||||||||||
real estate mortgages (1) | - | 240,072 | |||||||||||||||||||||||||||||||
Commercial loans | 4,268,704 | 5,020,643 | |||||||||||||||||||||||||||||||
Finance leases | 232,126 | 245,323 | |||||||||||||||||||||||||||||||
Consumer loans | 1,750,419 | 1,821,196 | |||||||||||||||||||||||||||||||
Loans held for investment | 9,262,436 | 9,636,170 | |||||||||||||||||||||||||||||||
Allowance for loan and lease losses | -222,395 | -285,858 | |||||||||||||||||||||||||||||||
Loans held for investment, net | $ | 9,040,041 | $ | 9,350,312 | |||||||||||||||||||||||||||||
-1 | On May 30, 2014, FirstBank acquired from Doral Financial Corporation ("Doral") mortgage loans, mainly residential mortgage loans, having an unpaid principal balance of $241.7 million (estimated fair value at acquisition of $226.0 million) in full satisfaction of secured borrowings with a book value of $232.9 million owed by Doral to FirstBank. Refer to "Acquired Loans including PCI Loans" below for additional information. | ||||||||||||||||||||||||||||||||
-2 | On October 3, 2014, Firstbank purchased from Doral certain performing residential mortgage loans with approximately $192.6 million in outstanding unpaid principal balance. Refer to "Purchases and Sales of Loans" below for additional information. | ||||||||||||||||||||||||||||||||
-3 | As of December 31, 2014 and 2013, includes $1.1 billion and $1.2 billion, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. | ||||||||||||||||||||||||||||||||
Loans Held for Investment on Which Accrual of Interest Income had been Discontinued [Table Text Block] | Loans held for investment on which accrual of interest income had been discontinued were as follows: | ||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Non-performing loans: | |||||||||||||||||||||||||||||||||
Residential mortgage | $ | 180,707 | $ | 161,441 | |||||||||||||||||||||||||||||
Commercial mortgage | 148,473 | 120,107 | |||||||||||||||||||||||||||||||
Commercial and Industrial | 122,547 | 114,833 | |||||||||||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||
Land | 15,030 | 27,834 | |||||||||||||||||||||||||||||||
Construction-commercial | - | 3,924 | |||||||||||||||||||||||||||||||
Construction-residential | 14,324 | 27,108 | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | 22,276 | 21,316 | |||||||||||||||||||||||||||||||
Finance leases | 5,245 | 3,082 | |||||||||||||||||||||||||||||||
Other consumer loans | 15,294 | 15,904 | |||||||||||||||||||||||||||||||
Total non-performing loans held for investment (1) (2)(3) | $ | 523,896 | $ | 495,549 | |||||||||||||||||||||||||||||
________________ | |||||||||||||||||||||||||||||||||
-1 | As of December 31, 2014 and 2013, excludes $54.6 million and $54.8 million, respectively, of non-performing loans | ||||||||||||||||||||||||||||||||
held for sale. | |||||||||||||||||||||||||||||||||
-2 | Amount excludes PCI loans with a carrying value of approximately $102.6 million and $4.8 million as of December 31, | ||||||||||||||||||||||||||||||||
2014 and 2013, respectively, primarily mortgage loans acquired from Doral in the second quarter of 2014, as further | |||||||||||||||||||||||||||||||||
discussed below. These loans are not considered non-performing due to the application of the accretion method, | |||||||||||||||||||||||||||||||||
under which these loans will accrete interest income over the remaining life of the loans using an estimated cash | |||||||||||||||||||||||||||||||||
flow analysis. | |||||||||||||||||||||||||||||||||
-3 | Non-performing loans exclude $494.6 million and $425.4 million of TDR loans that are in compliance with the modified | ||||||||||||||||||||||||||||||||
terms and in accrual status as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
Corporation's Aging of Loans Held for Investment Portfolio [Table Text Block] | The Corporation’s aging of the loans held for investment portfolio is as follows: | ||||||||||||||||||||||||||||||||
As of December 31, 2014 | 30-59 Days Past Due | 60-89 Days Past Due | 90 days or more Past Due (1) | Total Past Due | Purchased Credit-Impaired Loans | Current | Total loans held for investment | 90 days past due and still accruing (2) | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||
FHA/VA and other government-guaranteed | |||||||||||||||||||||||||||||||||
loans (2) (3) (4) | $ | - | $ | 9,733 | $ | 81,055 | $ | 90,788 | $ | - | $ | 62,782 | $ | 153,570 | $ | 81,055 | |||||||||||||||||
Other residential mortgage loans (4) | - | 78,336 | 199,078 | 277,414 | 98,494 | 2,481,709 | 2,857,617 | 18,371 | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and Industrial loans | 22,217 | 7,445 | 143,928 | 173,590 | - | 2,305,847 | 2,479,437 | 21,381 | |||||||||||||||||||||||||
Commercial mortgage loans (4) | - | 15,482 | 171,281 | 186,763 | 3,393 | 1,475,631 | 1,665,787 | 22,808 | |||||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||
Land (4) | - | 210 | 15,264 | 15,474 | - | 40,447 | 55,921 | 234 | |||||||||||||||||||||||||
Construction-commercial | - | - | - | - | - | 24,562 | 24,562 | - | |||||||||||||||||||||||||
Construction-residential (4) | - | - | 14,324 | 14,324 | - | 28,673 | 42,997 | - | |||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | 77,385 | 19,665 | 22,276 | 119,326 | - | 941,456 | 1,060,782 | - | |||||||||||||||||||||||||
Finance leases | 8,751 | 2,734 | 5,245 | 16,730 | - | 215,396 | 232,126 | - | |||||||||||||||||||||||||
Other consumer loans | 9,801 | 6,054 | 18,671 | 34,526 | 717 | 654,394 | 689,637 | 3,377 | |||||||||||||||||||||||||
Total loans held for investment | $ | 118,154 | $ | 139,659 | $ | 671,122 | $ | 928,935 | $ | 102,604 | $ | 8,230,897 | $ | 9,262,436 | $ | 147,226 | |||||||||||||||||
-1 | Includes non-performing loans and accruing loans that are contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue | ||||||||||||||||||||||||||||||||
to accrue finance charges and fees until charged-off at 180 days. | |||||||||||||||||||||||||||||||||
-2 | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as past-due loans 90 days and still accruing as opposed | ||||||||||||||||||||||||||||||||
to non-performing loans since the principal repayment is insured. These balances include $40.4 million of residential mortgage loans insured by the FHA or guaranteed by the VA | |||||||||||||||||||||||||||||||||
that are over 18 months delinquent, and are no longer accruing interest as of December 31, 2014. | |||||||||||||||||||||||||||||||||
-3 | As of December 31, 2014, includes $9.3 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) | ||||||||||||||||||||||||||||||||
to repurchase the defaulted loans. | |||||||||||||||||||||||||||||||||
-4 | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies | ||||||||||||||||||||||||||||||||
(FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two | |||||||||||||||||||||||||||||||||
or more monthly payments. FHA/VA government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, land loans, and construction-residential loans past | |||||||||||||||||||||||||||||||||
due 30-59 days as of December 31, 2014 amounted to $14.0 million, $189.1 million, $20.8 million, $0.8 million, and $1.0 million, respectively. | |||||||||||||||||||||||||||||||||
As of December 31, 2013 | 30-59 Days Past Due | 60-89 Days Past Due | 90 days or more Past Due (1) | Total Past Due | Purchased Credit-Impaired Loans | Current | Total loans held for investment | 90 days past due and still accruing (2) | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||
FHA/VA and other government-guaranteed | |||||||||||||||||||||||||||||||||
loans (2) (3) (4) | $ | - | $ | 12,180 | $ | 78,645 | $ | 90,825 | $ | - | $ | 104,401 | $ | 195,226 | $ | 78,645 | |||||||||||||||||
Other residential mortgage loans (4) | - | 88,898 | 172,286 | 261,184 | - | 2,092,598 | 2,353,782 | 10,845 | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial and Industrial loans | 21,029 | 5,454 | 134,233 | 160,716 | - | 2,867,606 | 3,028,322 | 19,400 | |||||||||||||||||||||||||
Commercial mortgage loans (4) | - | 5,428 | 126,674 | 132,102 | - | 1,691,506 | 1,823,608 | 6,567 | |||||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||
Land (4) | - | 358 | 27,871 | 28,229 | - | 52,145 | 80,374 | 37 | |||||||||||||||||||||||||
Construction-commercial | - | - | 3,924 | 3,924 | - | 12,907 | 16,831 | - | |||||||||||||||||||||||||
Construction-residential (4) | - | - | 27,108 | 27,108 | - | 44,400 | 71,508 | - | |||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | 79,279 | 17,944 | 21,316 | 118,539 | - | 993,781 | 1,112,320 | - | |||||||||||||||||||||||||
Finance leases | 10,275 | 3,536 | 3,082 | 16,893 | - | 228,430 | 245,323 | - | |||||||||||||||||||||||||
Other consumer loans | 11,710 | 8,691 | 20,492 | 40,893 | 4,791 | 663,192 | 708,876 | 4,588 | |||||||||||||||||||||||||
Total loans held for investment | $ | 122,293 | $ | 142,489 | $ | 615,631 | $ | 880,413 | $ | 4,791 | $ | 8,750,966 | $ | 9,636,170 | $ | 120,082 | |||||||||||||||||
-1 | Includes non-performing loans and accruing loans that are contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue | ||||||||||||||||||||||||||||||||
to accrue finance charges and fees until charged-off at 180 days. | |||||||||||||||||||||||||||||||||
-2 | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as past-due loans 90 days and still accruing as opposed | ||||||||||||||||||||||||||||||||
to non-performing loans since the principal repayment is insured. These balances include $37.0 million of residential mortgage loans insured by the FHA or guaranteed by the VA | |||||||||||||||||||||||||||||||||
that are over 18 months delinquent, and are no longer accruing interest as of December 31, 2013. | |||||||||||||||||||||||||||||||||
-3 | As of December 31, 2013, includes $11.5 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) | ||||||||||||||||||||||||||||||||
to repurchase the defaulted loans. | |||||||||||||||||||||||||||||||||
-4 | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies | ||||||||||||||||||||||||||||||||
(FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two | |||||||||||||||||||||||||||||||||
or more monthly payments. FHA/VA government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, land loans, and construction-residential loans | |||||||||||||||||||||||||||||||||
past-due 30-59 days amounted to $23.9 million, $166.7 million, $18.4 million, $0.9 million, and $2.5 million, respectively. | |||||||||||||||||||||||||||||||||
Corporation's Credit Quality Indicators by Loan [Table Text Block] | The Corporation’s credit quality indicators by loan type as of December 31, 2014 and 2013 are summarized below: | ||||||||||||||||||||||||||||||||
Commercial Credit Exposure-Credit Risk Profile based on Creditworthiness Category: | |||||||||||||||||||||||||||||||||
Substandard | Doubtful | Loss | Total Adversely Classified (1) | Total Portfolio | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Commercial Mortgage | $ | 273,027 | $ | 897 | $ | - | $ | 273,924 | $ | 1,665,787 | |||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||
Land | 16,915 | - | - | 16,915 | 55,921 | ||||||||||||||||||||||||||||
Construction-commercial | 11,790 | - | - | 11,790 | 24,562 | ||||||||||||||||||||||||||||
Construction-residential | 13,548 | 776 | - | 14,324 | 42,997 | ||||||||||||||||||||||||||||
Commercial and Industrial | 234,926 | 4,884 | 801 | 240,611 | 2,479,437 | ||||||||||||||||||||||||||||
Commercial Credit Exposure-Credit Risk Profile based on Creditworthiness Category: | |||||||||||||||||||||||||||||||||
Substandard | Doubtful | Loss | Total Adversely Classified (1) | Total Portfolio | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Commercial Mortgage | $ | 317,365 | $ | 9,160 | $ | 234 | $ | 326,759 | $ | 1,823,608 | |||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||
Land | 31,777 | 3,308 | 52 | 35,137 | 80,373 | ||||||||||||||||||||||||||||
Construction-commercial | 16,022 | - | - | 16,022 | 16,831 | ||||||||||||||||||||||||||||
Construction-residential | 27,829 | 2,209 | 241 | 30,279 | 71,509 | ||||||||||||||||||||||||||||
Commercial and Industrial | 205,807 | 7,998 | 973 | 214,778 | 3,028,322 | ||||||||||||||||||||||||||||
-1 | Excludes $54.6 million ($7.8 million land, $39.1 million construction-commercial, $0.9 million construction-residential, | ||||||||||||||||||||||||||||||||
and $6.8 million commercial mortgage) and $54.8 million ($7.8 million land, $39.1 million construction-commercial, $0.9 | |||||||||||||||||||||||||||||||||
construction-residential and $7.0 million commercial mortgage) as of December 31, 2014 and 2013, respectively, of | |||||||||||||||||||||||||||||||||
non-performing loans held for sale. | |||||||||||||||||||||||||||||||||
31-Dec-14 | Consumer Credit Exposure-Credit Risk Profile Based on Payment Activity | ||||||||||||||||||||||||||||||||
Residential Real-Estate | Consumer | ||||||||||||||||||||||||||||||||
FHA/VA/ Guaranteed (1) | Other residential loans | Auto | Finance Leases | Other Consumer | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Performing | $ | 153,570 | $ | 2,578,416 | $ | 1,038,506 | $ | 226,881 | $ | 673,626 | |||||||||||||||||||||||
Purchased Credit-Impaired (2) | - | 98,494 | - | - | 717 | ||||||||||||||||||||||||||||
Non-performing | - | 180,707 | 22,276 | 5,245 | 15,294 | ||||||||||||||||||||||||||||
Total | $ | 153,570 | $ | 2,857,617 | $ | 1,060,782 | $ | 232,126 | $ | 689,637 | |||||||||||||||||||||||
-1 | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA | ||||||||||||||||||||||||||||||||
as past due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. | |||||||||||||||||||||||||||||||||
These balances include $40.4 million of residential mortgage loans insured by the FHA or guaranteed by the VA that are | |||||||||||||||||||||||||||||||||
over 18 months delinquent, and are no longer accruing interest as of December 31, 2014. | |||||||||||||||||||||||||||||||||
-2 | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loans | ||||||||||||||||||||||||||||||||
will accrete interest income over the remaining life of the loans using estimated cash flow analysis. | |||||||||||||||||||||||||||||||||
31-Dec-13 | Consumer Credit Exposure-Credit Risk Profile Based on Payment Activity | ||||||||||||||||||||||||||||||||
Residential Real-Estate | Consumer | ||||||||||||||||||||||||||||||||
FHA/VA/ Guaranteed (1) | Other residential loans | Auto | Finance Leases | Other Consumer | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Performing | $ | 195,226 | $ | 2,192,341 | $ | 1,091,004 | $ | 242,241 | $ | 688,181 | |||||||||||||||||||||||
Purchased Credit-Impaired (2) | - | - | - | - | 4,791 | ||||||||||||||||||||||||||||
Non-performing | - | 161,441 | 21,316 | 3,082 | 15,904 | ||||||||||||||||||||||||||||
Total | $ | 195,226 | $ | 2,353,782 | $ | 1,112,320 | $ | 245,323 | $ | 708,876 | |||||||||||||||||||||||
-1 | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA | ||||||||||||||||||||||||||||||||
as past due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. | |||||||||||||||||||||||||||||||||
These balances include $37.0 million of residential mortgage loans insured by the FHA or guaranteed by the VA that are | |||||||||||||||||||||||||||||||||
over 18 months delinquent, and are no longer accruing interest as of December 31, 2013. | |||||||||||||||||||||||||||||||||
-2 | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these | ||||||||||||||||||||||||||||||||
loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis. | |||||||||||||||||||||||||||||||||
Impaired Loans [Table Text Block] | Impaired Loans | ||||||||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Specific Allowance | Average Recorded Investment | Interest Income Recognized Accrual Basis | Interest Income Recognized Cash Basis | ||||||||||||||||||||||||||||
As of December 31, 2014 | (In thousands) | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Other residential mortgage loans | 74,177 | 80,522 | - | 75,711 | 1,118 | 461 | |||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial mortgage loans | 109,271 | 132,170 | - | 113,674 | 846 | 2,670 | |||||||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||||||||
loans | 41,131 | 47,647 | - | 42,011 | - | 751 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 2,994 | 6,357 | - | 3,030 | 38 | 1 | |||||||||||||||||||||||||||
Construction-commercial | - | - | - | - | - | - | |||||||||||||||||||||||||||
Construction-residential | 7,461 | 10,100 | - | 8,123 | 167 | 8 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | - | - | - | - | - | - | |||||||||||||||||||||||||||
Finance leases | - | - | - | - | - | - | |||||||||||||||||||||||||||
Other consumer loans | 3,778 | 5,072 | - | 3,924 | 75 | 79 | |||||||||||||||||||||||||||
$ | 238,812 | $ | 281,868 | $ | - | $ | 246,473 | $ | 2,244 | $ | 3,970 | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Other residential mortgage loans | 350,067 | 396,203 | 10,854 | 357,129 | 15,852 | 1,853 | |||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial mortgage loans | 101,467 | 116,329 | 14,289 | 104,191 | 1,891 | 638 | |||||||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||||||||
loans | 195,240 | 226,431 | 21,314 | 198,930 | 5,097 | 564 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 9,120 | 12,821 | 794 | 10,734 | 64 | 25 | |||||||||||||||||||||||||||
Construction-commercial | 11,790 | 11,790 | 790 | 11,867 | - | 515 | |||||||||||||||||||||||||||
Construction-residential | 8,102 | 8,834 | 993 | 8,130 | - | - | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | 16,991 | 16,991 | 2,787 | 18,504 | 1,173 | - | |||||||||||||||||||||||||||
Finance leases | 2,181 | 2,181 | 253 | 2,367 | 198 | - | |||||||||||||||||||||||||||
Other consumer loans | 11,637 | 12,136 | 3,131 | 12,291 | 1,634 | 40 | |||||||||||||||||||||||||||
$ | 706,595 | $ | 803,716 | $ | 55,205 | $ | 724,143 | $ | 25,909 | $ | 3,635 | ||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Other residential mortgage loans | 424,244 | 476,725 | 10,854 | 432,840 | 16,970 | 2,314 | |||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial mortgage loans | 210,738 | 248,499 | 14,289 | 217,865 | 2,737 | 3,308 | |||||||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||||||||
loans | 236,371 | 274,078 | 21,314 | 240,941 | 5,097 | 1,315 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 12,114 | 19,178 | 794 | 13,764 | 102 | 26 | |||||||||||||||||||||||||||
Construction-commercial | 11,790 | 11,790 | 790 | 11,867 | - | 515 | |||||||||||||||||||||||||||
Construction-residential | 15,563 | 18,934 | 993 | 16,253 | 167 | 8 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | 16,991 | 16,991 | 2,787 | 18,504 | 1,173 | - | |||||||||||||||||||||||||||
Finance leases | 2,181 | 2,181 | 253 | 2,367 | 198 | - | |||||||||||||||||||||||||||
Other consumer loans | 15,415 | 17,208 | 3,131 | 16,215 | 1,709 | 119 | |||||||||||||||||||||||||||
$ | 945,407 | $ | 1,085,584 | $ | 55,205 | $ | 970,616 | $ | 28,153 | $ | 7,605 | ||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Specific Allowance | Average Recorded Investment | Interest Income Recognized Accrual Basis | Interest Income Recognized Cash Basis | ||||||||||||||||||||||||||||
As of December 31, 2013 | (In thousands) | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Other residential mortgage loans | 220,428 | 237,709 | - | 222,617 | 9,513 | 1,041 | |||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial mortgage loans | 69,484 | 73,723 | - | 71,367 | 1,494 | 148 | |||||||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||||||||
loans | 32,418 | 56,831 | - | 37,946 | 31 | 52 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 359 | 366 | - | 360 | 8 | 2 | |||||||||||||||||||||||||||
Construction-commercial | - | - | - | - | - | - | |||||||||||||||||||||||||||
Construction-residential | 14,761 | 19,313 | - | 17,334 | 52 | - | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | - | - | - | - | - | - | |||||||||||||||||||||||||||
Finance leases | - | - | - | - | - | - | |||||||||||||||||||||||||||
Other consumer loans | 4,035 | 4,450 | - | 3,325 | 139 | 30 | |||||||||||||||||||||||||||
$ | 341,485 | $ | 392,392 | $ | - | $ | 352,949 | $ | 11,237 | $ | 1,273 | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Other residential mortgage loans | 190,566 | 212,028 | 18,125 | 193,372 | 5,623 | 647 | |||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial mortgage loans | 149,888 | 163,656 | 32,189 | 153,992 | 2,114 | 1,293 | |||||||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||||||||
loans | 154,686 | 170,191 | 26,686 | 162,786 | 4,005 | 139 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 27,711 | 40,348 | 10,455 | 28,906 | 350 | 44 | |||||||||||||||||||||||||||
Construction-commercial | 16,022 | 16,238 | 8,873 | 16,157 | 527 | - | |||||||||||||||||||||||||||
Construction-residential | 13,864 | 13,973 | 2,816 | 13,640 | - | 50 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | 14,121 | 14,122 | 1,829 | 12,937 | 1,017 | - | |||||||||||||||||||||||||||
Finance leases | 2,359 | 2,359 | 73 | 2,219 | 281 | - | |||||||||||||||||||||||||||
Other consumer loans | 8,410 | 8,919 | 1,555 | 8,919 | 1,239 | 1 | |||||||||||||||||||||||||||
$ | 577,627 | $ | 641,834 | $ | 102,601 | $ | 592,928 | $ | 15,156 | $ | 2,174 | ||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Other residential mortgage loans | 410,994 | 449,737 | 18,125 | 415,989 | 15,136 | 1,688 | |||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial mortgage loans | 219,372 | 237,379 | 32,189 | 225,359 | 3,608 | 1,441 | |||||||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||||||||
loans | 187,104 | 227,022 | 26,686 | 200,732 | 4,036 | 191 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 28,070 | 40,714 | 10,455 | 29,266 | 358 | 46 | |||||||||||||||||||||||||||
Construction-commercial | 16,022 | 16,238 | 8,873 | 16,157 | 527 | - | |||||||||||||||||||||||||||
Construction-residential | 28,625 | 33,286 | 2,816 | 30,974 | 52 | 50 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Auto loans | 14,121 | 14,122 | 1,829 | 12,937 | 1,017 | - | |||||||||||||||||||||||||||
Finance leases | 2,359 | 2,359 | 73 | 2,219 | 281 | - | |||||||||||||||||||||||||||
Other consumer loans | 12,445 | 13,369 | 1,555 | 12,244 | 1,378 | 31 | |||||||||||||||||||||||||||
$ | 919,112 | $ | 1,034,226 | $ | 102,601 | $ | 945,877 | $ | 26,393 | $ | 3,447 | ||||||||||||||||||||||
Activity for Impaired loans [Table Text Block] | The following tables show the activity for impaired loans and the related specific reserve during 2014 and 2013: | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Impaired Loans: | (In thousands) | ||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 919,112 | $ | 1,465,294 | |||||||||||||||||||||||||||||
Loans determined impaired during the year | 306,390 | 280,860 | |||||||||||||||||||||||||||||||
Charge-offs | -106,154 | -307,428 | |||||||||||||||||||||||||||||||
Loans sold, net of charge-offs | -4,500 | -201,409 | |||||||||||||||||||||||||||||||
Loans transferred to held for sale | - | -145,415 | |||||||||||||||||||||||||||||||
Increases to impaired loans - additional disbursements | 5,028 | 6,624 | |||||||||||||||||||||||||||||||
Foreclosures | -40,582 | -45,094 | |||||||||||||||||||||||||||||||
Loans no longer considered impaired | -22,333 | -49,299 | |||||||||||||||||||||||||||||||
Paid in full or partial payments | -111,554 | -85,021 | |||||||||||||||||||||||||||||||
Balance at end of year | $ | 945,407 | $ | 919,112 | |||||||||||||||||||||||||||||
Activity for Specific Reserve [Table Text Block] | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Specific Reserve: | (In thousands) | ||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 102,601 | $ | 221,749 | |||||||||||||||||||||||||||||
Provision for loan losses | 58,758 | 188,280 | |||||||||||||||||||||||||||||||
Charge-offs | -106,154 | -307,428 | |||||||||||||||||||||||||||||||
Balance at end of year | $ | 55,205 | $ | 102,601 | |||||||||||||||||||||||||||||
Contractually Required Principal and Interest Cash Flows Expected to be Collected and Fair Value at Acquisition Related to Loans Acquired [Table Text Block] | The following table presents acquired loans from Doral accounted for pursuant to ASC 310-30 as of the May 30, 2014 acquisition date: | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Contractually- required principal and interest | $ | 275,842 | |||||||||||||||||||||||||||||||
Less: Nonaccretable difference | -86,252 | ||||||||||||||||||||||||||||||||
Cash flows expected to be collected | 189,590 | ||||||||||||||||||||||||||||||||
Less: Accretable yield | -86,759 | ||||||||||||||||||||||||||||||||
Fair value of loans acquired in 2014 | $ | 102,831 | |||||||||||||||||||||||||||||||
Carrying Value Of Purchased Credit Impaired Loans | The carrying amount of PCI loans follows: | ||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Residential mortgage loans | $ | 98,494 | $ | - | |||||||||||||||||||||||||||||
Commercial mortgage loans | 3,393 | - | |||||||||||||||||||||||||||||||
Credit Cards | 717 | 4,791 | |||||||||||||||||||||||||||||||
$ | 102,604 | $ | 4,791 | ||||||||||||||||||||||||||||||
Accretable Yield [Table Text Block] | Changes in the accretable yield of PCI loans for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | - | $ | 2,171 | |||||||||||||||||||||||||||||
Additions (accretable yield at acquisition | |||||||||||||||||||||||||||||||||
of loans from Doral) | 86,759 | - | |||||||||||||||||||||||||||||||
Accretion recognized in earnings | -4,299 | -819 | |||||||||||||||||||||||||||||||
Reclassification to non accretable | - | -1,352 | |||||||||||||||||||||||||||||||
Balance at end of period | $ | 82,460 | $ | - | |||||||||||||||||||||||||||||
Selected Information on TDRs Includes Recorded Investment by Loan Class and Modification Type [Table Text Block] | Selected information on TDRs that includes the recorded investment by loan class and modification type is | ||||||||||||||||||||||||||||||||
summarized in the following tables. This information reflects all TDRs: | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Interest rate below market | Maturity or term extension | Combination of reduction in interest rate and extension of maturity | Forgiveness of principal and/or interest | Other (1) | Total | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | $ | 24,850 | $ | 5,859 | $ | 283,317 | $ | - | $ | 35,749 | $ | 349,775 | |||||||||||||||||||||
Commercial Mortgage loans | 29,881 | 12,737 | 72,493 | - | 12,655 | 127,766 | |||||||||||||||||||||||||||
Commercial and Industrial loans | 7,533 | 80,642 | 31,553 | 3,074 | 49,124 | 171,926 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | - | 202 | 1,732 | - | 536 | 2,470 | |||||||||||||||||||||||||||
Construction-residential | 6,154 | 337 | 3,112 | - | 434 | 10,037 | |||||||||||||||||||||||||||
Consumer loans - Auto | - | 380 | 10,363 | - | 6,248 | 16,991 | |||||||||||||||||||||||||||
Finance Leases | - | 376 | 1,805 | - | - | 2,181 | |||||||||||||||||||||||||||
Consumer loans - Other | 37 | 129 | 10,812 | 443 | 1,886 | 13,307 | |||||||||||||||||||||||||||
Total Troubled Debt Restructurings (2) | $ | 68,455 | $ | 100,662 | $ | 415,187 | $ | 3,517 | $ | 106,632 | $ | 694,453 | |||||||||||||||||||||
-1 | Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would | ||||||||||||||||||||||||||||||||
be considered insignificant, payment plans under judicial stipulation, or a combination of the concessions listed in the table. | |||||||||||||||||||||||||||||||||
-2 | Excludes TDR held for sale amounting to $45.7 million as of December 31, 2014. | ||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Interest rate below market | Maturity or term extension | Combination of reduction in interest rate and extension of maturity | Forgiveness of principal and/or interest | Other (1) | Total | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | $ | 23,428 | $ | 6,059 | $ | 274,562 | $ | - | $ | 33,195 | $ | 337,244 | |||||||||||||||||||||
Commercial Mortgage loans | 36,543 | 12,985 | 83,993 | 7 | 20,048 | 153,576 | |||||||||||||||||||||||||||
Commercial and Industrial loans | 12,099 | 11,341 | 12,835 | 3,122 | 52,554 | 91,951 | |||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 878 | 2,012 | 1,760 | - | 675 | 5,325 | |||||||||||||||||||||||||||
Construction-commercial | - | - | 3,924 | - | - | 3,924 | |||||||||||||||||||||||||||
Construction-residential | 6,054 | 160 | 3,173 | 994 | 513 | 10,894 | |||||||||||||||||||||||||||
Consumer loans - Auto | - | 706 | 8,350 | - | 5,066 | 14,122 | |||||||||||||||||||||||||||
Finance Leases | - | 1,286 | 1,072 | - | - | 2,358 | |||||||||||||||||||||||||||
Consumer loans - Other | 227 | 256 | 8,638 | - | 1,743 | 10,864 | |||||||||||||||||||||||||||
Total Troubled Debt Restructurings (2) | $ | 79,229 | $ | 34,805 | $ | 398,307 | $ | 4,123 | $ | 113,794 | $ | 630,258 | |||||||||||||||||||||
-1 | Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be | ||||||||||||||||||||||||||||||||
considered insignificant, payment plans under judicial stipulation, or a combination of the concessions listed in the table above. | |||||||||||||||||||||||||||||||||
-2 | Excludes TDRs held for sale amounting to $45.9 million as of December 31, 2013. | ||||||||||||||||||||||||||||||||
Corporation's TDR Activity [Table Text Block] | The following table presents the Corporation's TDR activity: | ||||||||||||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Beginning balance of TDRs | $ | 630,258 | $ | 941,730 | |||||||||||||||||||||||||||||
New TDRs | 164,108 | 124,424 | |||||||||||||||||||||||||||||||
Increases to existing TDRs - additional disbursements | 1,903 | 2,864 | |||||||||||||||||||||||||||||||
Charge-offs post-modification | -43,916 | -132,595 | |||||||||||||||||||||||||||||||
Sales, net of charge-offs | -4,500 | -104,915 | |||||||||||||||||||||||||||||||
Foreclosures | -4,948 | -11,886 | |||||||||||||||||||||||||||||||
Removed from TDR classification | - | -6,764 | |||||||||||||||||||||||||||||||
TDRs transferred to held for sale | - | -129,964 | |||||||||||||||||||||||||||||||
Paid-off and partial payments | -48,452 | -52,636 | |||||||||||||||||||||||||||||||
Ending balance of TDRs | $ | 694,453 | $ | 630,258 | |||||||||||||||||||||||||||||
Breakdown Between Accrual and Nonaccrual Status of TDRs [Table Text Block] | The following table provides a breakdown between accrual and nonaccrual of TDRs: | ||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Accrual | Nonaccrual (1) (2) | Total TDRs | |||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | $ | 266,810 | $ | 82,965 | $ | 349,775 | |||||||||||||||||||||||||||
Commercial Mortgage loans | 69,374 | 58,392 | 127,766 | ||||||||||||||||||||||||||||||
Commercial and Industrial loans | 131,544 | 40,382 | 171,926 | ||||||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 834 | 1,636 | 2,470 | ||||||||||||||||||||||||||||||
Construction-residential | 3,448 | 6,589 | 10,037 | ||||||||||||||||||||||||||||||
Consumer loans - Auto | 10,558 | 6,433 | 16,991 | ||||||||||||||||||||||||||||||
Finance Leases | 1,926 | 255 | 2,181 | ||||||||||||||||||||||||||||||
Consumer loans - Other | 10,146 | 3,161 | 13,307 | ||||||||||||||||||||||||||||||
Total Troubled Debt Restructurings | $ | 494,640 | $ | 199,813 | $ | 694,453 | |||||||||||||||||||||||||||
-1 | Included in nonaccrual loans are $52.8 million in loans that are performing under the terms of the restructuring agreement | ||||||||||||||||||||||||||||||||
but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance | |||||||||||||||||||||||||||||||||
under the revised terms for reinstatement to accrual status and there is no doubt about full collectability. | |||||||||||||||||||||||||||||||||
-2 | Excludes nonaccrual TDRs held for sale with a carrying value of $45.7 million as of December 31, 2014. | ||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Accrual | Nonaccrual (1)(2) | Total TDRs | |||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | $ | 263,919 | $ | 73,324 | $ | 337,243 | |||||||||||||||||||||||||||
Commercial Mortgage loans | 53,509 | 38,441 | 91,950 | ||||||||||||||||||||||||||||||
Commercial and Industrial loans | 84,419 | 69,156 | 153,575 | ||||||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 1,000 | 4,325 | 5,325 | ||||||||||||||||||||||||||||||
Construction-commercial | - | 3,924 | 3,924 | ||||||||||||||||||||||||||||||
Construction-residential | 3,332 | 7,562 | 10,894 | ||||||||||||||||||||||||||||||
Consumer loans - Auto | 8,512 | 5,610 | 14,122 | ||||||||||||||||||||||||||||||
Finance Leases | 2,275 | 85 | 2,360 | ||||||||||||||||||||||||||||||
Consumer loans - Other | 8,417 | 2,448 | 10,865 | ||||||||||||||||||||||||||||||
Total Troubled Debt Restructurings | $ | 425,383 | $ | 204,875 | $ | 630,258 | |||||||||||||||||||||||||||
-1 | Included in nonaccrual loans are $95.7 million in loans that are performing under the terms of the restructuring agreement | ||||||||||||||||||||||||||||||||
but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance | |||||||||||||||||||||||||||||||||
under the revised terms for reinstatement to accrual status and there is no doubt about full collectability. | |||||||||||||||||||||||||||||||||
-2 | Excludes nonaccrual TDRs held for sale with a carrying value of $45.9 million as of December 31, 2013. | ||||||||||||||||||||||||||||||||
Schedule Of Troubled Debt Restructurings [Table Text Block] | Year ended December 31, 2014 | ||||||||||||||||||||||||||||||||
Number of contracts | Pre-modification Outstanding Recorded Investment | Post-modification Outstanding Recorded Investment | |||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | 291 | $ | 40,166 | $ | 39,194 | ||||||||||||||||||||||||||||
Commercial Mortgage loans | 9 | 2,853 | 2,855 | ||||||||||||||||||||||||||||||
Commercial and Industrial loans | 17 | 105,372 | 105,110 | ||||||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | 6 | 257 | 219 | ||||||||||||||||||||||||||||||
Construction-residential | - | - | - | ||||||||||||||||||||||||||||||
Consumer loans - Auto | 602 | 8,903 | 8,748 | ||||||||||||||||||||||||||||||
Finance Leases | 45 | 953 | 800 | ||||||||||||||||||||||||||||||
Consumer loans - Other | 1,492 | 7,240 | 7,182 | ||||||||||||||||||||||||||||||
Total Troubled Debt Restructurings | 2,462 | $ | 165,744 | $ | 164,108 | ||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||
Number of contracts | Pre-modification Outstanding Recorded Investment | Post-modification Outstanding Recorded Investment | |||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | 17 | $ | 6,000 | $ | 6,161 | ||||||||||||||||||||||||||||
Commercial Mortgage loans | 27 | 79,531 | 53,525 | ||||||||||||||||||||||||||||||
Commercial and Industrial loans | - | - | - | ||||||||||||||||||||||||||||||
Construction loans: | |||||||||||||||||||||||||||||||||
Land | - | - | - | ||||||||||||||||||||||||||||||
Construction-commercial | 1 | 195 | 195 | ||||||||||||||||||||||||||||||
Construction-residential | 557 | 7,582 | 7,582 | ||||||||||||||||||||||||||||||
Consumer loans - Auto | 75 | 1,435 | 1,435 | ||||||||||||||||||||||||||||||
Finance Leases | 1,452 | 6,518 | 6,518 | ||||||||||||||||||||||||||||||
Consumer loans - Other | 2,428 | 149,783 | 124,424 | ||||||||||||||||||||||||||||||
Total Troubled Debt Restructurings | 4,557 | $ | 251,044 | $ | 199,840 | ||||||||||||||||||||||||||||
Loan Modifications Considered Troubled Debt Restructurings Defaulted [Table Text Block] | Year ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Number of contracts | Recorded Investment | Number of contracts | Recorded Investment | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | 55 | $ | 8,087 | 81 | $ | 13,415 | |||||||||||||||||||||||||||
Commercial Mortgage loans | 2 | 4,604 | 1 | 46,102 | |||||||||||||||||||||||||||||
Commercial and Industrial loans | 2 | 1,537 | 2 | 3,829 | |||||||||||||||||||||||||||||
Construction loans | |||||||||||||||||||||||||||||||||
Land | 1 | 46 | 2 | 66 | |||||||||||||||||||||||||||||
Construction-commercial | |||||||||||||||||||||||||||||||||
Construction-residential | - | - | 1 | 186 | |||||||||||||||||||||||||||||
Consumer loans - Auto | 45 | 697 | 9 | 86 | |||||||||||||||||||||||||||||
Finance Leases | 241 | 989 | 40 | 219 | |||||||||||||||||||||||||||||
Consumer loans - Other | 6 | 115 | 3 | 38 | |||||||||||||||||||||||||||||
Total | 352 | $ | 16,075 | 139 | $ | 63,941 | |||||||||||||||||||||||||||
Loan Restructuring and Effect on Allowance for Loan and Lease Losses [Table Text Block] | |||||||||||||||||||||||||||||||||
(In thousands) | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Principal balance deemed collectible at end of year | $ | 46,032 | $ | 78,342 | |||||||||||||||||||||||||||||
Amount (recovered) charged off | $ | -7,501 | $ | 20,889 | |||||||||||||||||||||||||||||
(Reductions) to the provision for loan losses | $ | -8,341 | $ | -4,084 | |||||||||||||||||||||||||||||
Allowance for loan losses at end of year | $ | 731 | $ | 1,436 | |||||||||||||||||||||||||||||
Past Due Purchased Credit Impaired Table [Text Block] | The following tables present PCI loans by past due status as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
As of December 31, 2014 | 30-59 Days | 60-89 Days | 90 days or more | Total Past Due | Total PCI loans | ||||||||||||||||||||||||||||
Current | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||
loans (1) | $ | - | $ | 12,571 | $ | 15,176 | $ | 27,747 | $ | 70,747 | $ | 98,494 | |||||||||||||||||||||
Commercial mortgage | |||||||||||||||||||||||||||||||||
loans (1) | - | 356 | 443 | 799 | 2,594 | 3,393 | |||||||||||||||||||||||||||
Credit Cards | 47 | 25 | 42 | 114 | 603 | 717 | |||||||||||||||||||||||||||
$ | 47 | $ | 12,952 | $ | 15,661 | $ | 28,660 | $ | 73,944 | $ | 102,604 | ||||||||||||||||||||||
_____________ | |||||||||||||||||||||||||||||||||
-1 | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage and commercial mortgage loans are considered past due when the borrower is in arrears two or more monthly payments. PCI residential mortgage loans and commercial mortgage loans past due 30-59 days as of December 31, 2014 amounted to $16.6 million and $0.8 million, respectively. | ||||||||||||||||||||||||||||||||
As of December 31, 2013 | 30-59 Days | 60-89 Days | 90 days or more | Total Past Due | Total PCI loans | ||||||||||||||||||||||||||||
Current | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Credit Cards | $ | 377 | $ | 354 | $ | 573 | $ | 1,304 | $ | 3,487 | $ | 4,791 | |||||||||||||||||||||
Changes In Carrying Amount Of Purchased Credit Impaired Loans Table [Text Block] | Changes in the carrying amount of loans accounted for pursuant to ASC 310-30 follows: | ||||||||||||||||||||||||||||||||
Year ended | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Balance at beginning of period (1) | $ | 4,791 | |||||||||||||||||||||||||||||||
Additions (2) | 102,831 | ||||||||||||||||||||||||||||||||
Accretion | 4,299 | ||||||||||||||||||||||||||||||||
Collections | -9,317 | ||||||||||||||||||||||||||||||||
Ending balance | $ | 102,604 | |||||||||||||||||||||||||||||||
-1 | For the year ended December 31, 2014, the beginning balance relates to PCI loans acquired as part of the credit card portfolio purchased in the second quarter of 2012. | ||||||||||||||||||||||||||||||||
-2 | Represents the estimated fair value of the PCI loans acquired from Doral at the date of acquisition. |
ALLOWANCE_FOR_LOAN_AND_LEASE_L1
ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Changes in Allowance for Loan and Lease Losses [Table Text Block] | The changes in the allowance for loan and lease losses were as follows: | ||||||||||||||||||
Residential | Commercial | Commercial and | Construction | Consumer | |||||||||||||||
Year Ended December 31, 2014 | Mortgage Loans | Mortgage Loans | Industrial Loans | Loans | Loans | Total | |||||||||||||
(In thousands) | |||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||
Beginning balance | $ | 33,110 | $ | 73,138 | $ | 85,295 | $ | 35,814 | $ | 58,501 | $ | 285,858 | |||||||
Charge-offs | -24,345 | -25,807 | -61,935 | -11,533 | -76,696 | -200,316 | |||||||||||||
Recoveries | 1,049 | 10,639 | 3,680 | 6,049 | 5,906 | 27,323 | |||||||||||||
Provision (release) | 17,487 | -7,076 | 36,681 | -17,508 | 79,946 | 109,530 | |||||||||||||
Ending balance | $ | 27,301 | $ | 50,894 | $ | 63,721 | $ | 12,822 | $ | 67,657 | $ | 222,395 | |||||||
Ending balance: specific reserve for impaired loans | $ | 10,854 | $ | 14,289 | $ | 21,314 | $ | 2,577 | $ | 6,171 | $ | 55,205 | |||||||
Ending balance: purchased credit-impaired loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
Ending balance: general allowance | $ | 16,447 | $ | 36,605 | $ | 42,407 | $ | 10,245 | $ | 61,486 | $ | 167,190 | |||||||
Loans held for investment: | |||||||||||||||||||
Ending balance | $ | 3,011,187 | $ | 1,665,787 | $ | 2,479,437 | $ | 123,480 | $ | 1,982,545 | $ | 9,262,436 | |||||||
Ending balance: impaired loans | $ | 424,244 | $ | 210,738 | $ | 236,371 | $ | 39,467 | $ | 34,587 | $ | 945,407 | |||||||
Ending balance: purchased credit-impaired | |||||||||||||||||||
loans | $ | 98,494 | $ | 3,393 | $ | - | $ | - | $ | 717 | $ | 102,604 | |||||||
Ending balance: loans with general | |||||||||||||||||||
allowance | $ | 2,488,449 | $ | 1,451,656 | $ | 2,243,066 | $ | 84,013 | $ | 1,947,241 | $ | 8,214,425 | |||||||
Residential | Commercial | Commercial and | Construction | Consumer | |||||||||||||||
Year Ended December 31, 2013 | Mortgage Loans | Mortgage Loans | Industrial Loans | Loans | Loans | Total | |||||||||||||
(In thousands) | |||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||
Beginning balance | $ | 68,354 | $ | 97,692 | $ | 146,900 | $ | 61,600 | $ | 60,868 | $ | 435,414 | |||||||
Charge-offs | -30,192 | -27,400 | -65,171 | -30,539 | -63,108 | -216,410 | |||||||||||||
Charge-offs related to bulk sales | -98,972 | -40,057 | -44,678 | -12,784 | - | -196,491 | |||||||||||||
Recoveries | 1,165 | 4,855 | 4,636 | 2,076 | 6,862 | 19,594 | |||||||||||||
Provision | 92,755 | 27,357 | 53,048 | 16,712 | 53,879 | 243,751 | |||||||||||||
Reclassification (1) | - | 10,691 | -9,440 | -1,251 | - | - | |||||||||||||
Ending balance | $ | 33,110 | $ | 73,138 | $ | 85,295 | $ | 35,814 | $ | 58,501 | $ | 285,858 | |||||||
Ending balance: specific reserve for impaired loans | $ | 18,125 | $ | 32,189 | $ | 26,686 | $ | 22,144 | $ | 3,457 | $ | 102,601 | |||||||
Ending balance: purchased credit-impaired loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
Ending balance: general allowance | $ | 14,985 | $ | 40,949 | $ | 58,609 | $ | 13,670 | $ | 55,044 | $ | 183,257 | |||||||
Loans held for investment: | |||||||||||||||||||
Ending balance | $ | 2,549,008 | $ | 1,823,608 | $ | 3,028,322 | $ | 168,713 | $ | 2,066,519 | $ | 9,636,170 | |||||||
Ending balance: impaired loans | $ | 410,994 | $ | 219,372 | $ | 187,104 | $ | 72,717 | $ | 28,925 | $ | 919,112 | |||||||
Ending balance: purchased credit-impaired | |||||||||||||||||||
loans | $ | - | $ | - | $ | - | $ | - | $ | 4,791 | $ | 4,791 | |||||||
Ending balance: loans with general allowance | $ | 2,138,014 | $ | 1,604,236 | $ | 2,841,218 | $ | 95,996 | $ | 2,032,803 | $ | 8,712,267 | |||||||
-1 | During the second quarter of 2013, after a comprehensive review of substantially all of the loans in our commercial portfolios, the classification of certain loans was revised to more accurately depict the nature of the underlying loans. This reclassification resulted in a net increase of $269.0 million in commercial mortgage loans, since the principal source of repayment for such loans is derived primarily from the operation of the underlying real estate, with a corresponding decrease of $246.8 million in commercial and industrial loans and a $22.2 million decrease in construction loans. The Corporation evaluated the impact of this reclassification on the provision for loan losses and determined that the effect of this adjustment was not material to any previously reported results. | ||||||||||||||||||
LOANS_HELD_FOR_SALE_Tables
LOANS HELD FOR SALE (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Portfolio of Loans Held for Sale [Table Text Block] | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
(In thousands) | |||||||
Residential mortgage loans | $ | 22,315 | $ | 21,168 | |||
Construction loans | 47,802 | 47,802 | |||||
Commercial mortgage loans | 6,839 | 6,999 | |||||
Total | $ | 76,956 | $ | 75,969 |
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Related Party Transactions [Abstract] | |||
Schedule of Related Party Transactions [Table Text Block] | |||
Amount | |||
(In thousands) | |||
Balance at December 31, 2012 | $ | 4,093 | |
New loans | 51 | ||
Payments | -750 | ||
Other changes | -1,999 | ||
Balance at December 31, 2013 | 1,395 | ||
New loans | 61 | ||
Payments | -133 | ||
Other changes | 10 | ||
Balance at December 31, 2014 | $ | 1,333 |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY PLANT AND EQUIPMENT (TABLES) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property Plant And Equipment [Abstract] | ||||||||||
Property Plant And Equipment [Text Block] | Useful Life In Years | As of December 31, | ||||||||
2014 | 2013 | |||||||||
(Dollars in thousands) | ||||||||||
Buildings and improvements | Oct-35 | $ | 140,592 | $ | 141,836 | |||||
Leasehold improvements | 10-Jan | 63,065 | 57,833 | |||||||
Furniture and equipment | 10-Feb | 161,865 | 147,640 | |||||||
365,522 | 347,309 | |||||||||
Accumulated depreciation | -232,272 | -216,170 | ||||||||
133,250 | 131,139 | |||||||||
Land | 25,655 | 25,655 | ||||||||
Projects in progress | 8,021 | 10,152 | ||||||||
Total premises and equipment, net | $ | 166,926 | $ | 166,946 |
GOODWILL_AND_OTHER_INTANGIBLES1
GOODWILL AND OTHER INTANGIBLES (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Gross Amount and Accumulated Amortization of Other Intangible Assets [Table Text Block] | The following table shows the gross amount and accumulated amortization of the Corporation’s intangible assets recognized as part of Other Assets in the consolidated statement of financial condition: | |||||
As of | As of | |||||
December 31, | December 31, | |||||
2014 | 2013 | |||||
(Dollars in thousands) | ||||||
Core deposit intangible: | ||||||
Gross amount | $ | 45,844 | $ | 45,844 | ||
Accumulated amortization | -40,424 | -38,863 | ||||
Net carrying amount | $ | 5,420 | $ | 6,981 | ||
Remaining amortization period | 8.4 years | 9.8 years | ||||
Purchased credit card relationship intangible: | ||||||
Gross amount | $ | 24,465 | $ | 24,465 | ||
Accumulated amortization | -8,076 | -4,678 | ||||
Net carrying amount | $ | 16,389 | $ | 19,787 | ||
Remaining amortization period | 6.9 years | 8.0 years | ||||
Schedule of Expected Amortization Expense [Table Text Block] | The following table presents the estimated aggregate annual amortization expense for intangible assets: | |||||
Amount | ||||||
(In thousands) | ||||||
2015 | $ | 4,439 | ||||
2016 | 4,157 | |||||
2017 | 3,595 | |||||
2018 | 2,711 | |||||
2019 and after | 6,907 | |||||
NONCONSOLIDATED_VARIABLE_INTER1
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Changes in Servicing Assets [Table Text Block] | The changes in servicing assets are shown below: | |||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Balance at beginning of year | $ | 21,987 | $ | 17,524 | $ | 15,226 | ||||
Capitalization of servicing assets | 4,321 | 7,649 | 6,348 | |||||||
Amortization | -3,156 | -3,289 | -3,014 | |||||||
Adjustment to fair value | -228 | 460 | -394 | |||||||
Other (1) | -86 | -357 | -642 | |||||||
Balance at end of year | $ | 22,838 | $ | 21,987 | $ | 17,524 | ||||
-1 | Amount represents the adjustment to fair value related to the repurchase of loans serviced for others. | |||||||||
Changes in Impairment Allowance [Table Text Block] | Changes in the impairment allowance related to servicing assets were as follows: | |||||||||
Year ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Balance at beginning of year | $ | 212 | $ | 672 | $ | 2,725 | ||||
Temporary impairment charges | 343 | 277 | 763 | |||||||
OTTI of servicing assets | -385 | - | -2,447 | |||||||
Recoveries | -115 | -737 | -369 | |||||||
Balance at end of year | $ | 55 | $ | 212 | $ | 672 | ||||
Components of Net Servicing Income [Table Text Block] | The components of net servicing income are shown below: | |||||||||
Year ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Servicing fees | $ | 6,999 | $ | 7,164 | $ | 5,650 | ||||
Late charges and prepayment penalties | 695 | 701 | 642 | |||||||
Adjustment for loans repurchased | -86 | -357 | -642 | |||||||
Other (1) | -1,253 | -407 | - | |||||||
Servicing income, gross | 6,355 | 7,101 | 5,650 | |||||||
Amortization and impairment of servicing assets | -3,384 | -2,829 | -3,408 | |||||||
Servicing income, net | $ | 2,971 | $ | 4,272 | $ | 2,242 | ||||
(1) Mainly consisted of compensatory fees imposed by GSEs and losses related to representations and warranties. | ||||||||||
Key Economic Assumptions Used in Determining Fair Value at Time of Sale of Loans [Table Text Block] | The Corporation’s servicing assets are subject to prepayment and interest rate risks. Key economic assumptions used in determining the fair value at the time of sale ranged as follows: | |||||||||
Maximum | Minimum | |||||||||
2014:00:00 | ||||||||||
Constant prepayment rate: | ||||||||||
Government-guaranteed mortgage loans | 9.6 | % | 9.1 | % | ||||||
Conventional conforming mortgage loans | 9.4 | % | 8.9 | % | ||||||
Conventional non-conforming mortgage loans | 14 | % | 12.7 | % | ||||||
Discount rate: | ||||||||||
Government-guaranteed mortgage loans | 11.5 | % | 11.5 | % | ||||||
Conventional conforming mortgage loans | 9.5 | % | 9.5 | % | ||||||
Conventional non-conforming mortgage loans | 13.9 | % | 13.8 | % | ||||||
2013:00:00 | ||||||||||
Constant prepayment rate: | ||||||||||
Government-guaranteed mortgage loans | 10.5 | % | 8.9 | % | ||||||
Conventional conforming mortgage loans | 10.9 | % | 8.7 | % | ||||||
Conventional non-conforming mortgage loans | 14.3 | % | 12.3 | % | ||||||
Discount rate: | ||||||||||
Government-guaranteed mortgage loans | 12 | % | 11.5 | % | ||||||
Conventional conforming mortgage loans | 10 | % | 9.5 | % | ||||||
Conventional non-conforming mortgage loans | 14.3 | % | 13.8 | % | ||||||
2012:00:00 | ||||||||||
Constant prepayment rate: | ||||||||||
Government-guaranteed mortgage loans | 12.4 | % | 11.6 | % | ||||||
Conventional conforming mortgage loans | 12.8 | % | 12.3 | % | ||||||
Conventional non-conforming mortgage loans | 13.8 | % | 13.3 | % | ||||||
Discount rate: | ||||||||||
Government-guaranteed mortgage loans | 12 | % | 12 | % | ||||||
Conventional conforming mortgage loans | 10 | % | 10 | % | ||||||
Conventional non-conforming mortgage loans | 14.3 | % | 14.3 | % | ||||||
Weighted-Averages of Key Economic Assumptions in Valuation Model [Table Text Block] | (Dollars in thousands) | |||||||||
Carrying amount of servicing assets | $ | 22,838 | ||||||||
Fair value | $ | 24,932 | ||||||||
Weighted average expected life (in years) | 8.85 | |||||||||
Constant prepayment rate (weighted average annual rate) | 9.74 | % | ||||||||
Decrease in fair value due to 10% adverse change | $ | 936 | ||||||||
Decrease in fair value due to 20% adverse change | $ | 1,813 | ||||||||
Discount rate (weighted average annual rate) | 10.6 | % | ||||||||
Decrease in fair value due to 10% adverse change | $ | 1,037 | ||||||||
Decrease in fair value due to 20% adverse change | $ | 1,996 |
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summary of Deposit Balances [Table Text Block] | The following table summarizes deposit balances: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Type of account and interest rate: | |||||||||
Non-interest-bearing checking accounts | $ | 900,616 | $ | 851,212 | |||||
Savings accounts - 0.05% to 0.85% (2013- 0.20% to 1.00%) | 2,450,484 | 2,334,831 | |||||||
Interest-bearing checking accounts - 0.10% to 1.06% | |||||||||
(2013- 0.25% to 1.06%) | 1,054,136 | 1,167,480 | |||||||
Certificates of deposit- 0.10% to 5.05% (2013- 0.10% to 5.05%) | 2,191,663 | 2,384,378 | |||||||
Brokered certificates of deposit- 0.20% to 4.70% (2013- 0.45% to 4.94%) | 2,887,046 | 3,142,023 | |||||||
$ | 9,483,945 | $ | 9,879,924 | ||||||
Brokered Certificates Of Deposit Mature [Table Text Block] | Brokered CD's mature as follows: | ||||||||
December 31, | |||||||||
2014 | |||||||||
(In thousands) | |||||||||
One to ninety days | $ | 361,594 | |||||||
Over ninety days to one year | 1,473,840 | ||||||||
One to three years | 956,783 | ||||||||
Three to five years | 58,795 | ||||||||
Over five years | 36,034 | ||||||||
Total | $ | 2,887,046 | |||||||
Schedule of cash deposits maturity [Table Text Block] | The following table presents a summary of CDs, including brokered CDs, with a remaining term of more than one year as of December 31, 2014: | ||||||||
Total | |||||||||
(In thousands) | |||||||||
Over one year to two years | $ | 1,304,563 | |||||||
Over two years to three years | 326,771 | ||||||||
Over three years to four years | 133,303 | ||||||||
Over four years to five years | 45,670 | ||||||||
Over five years | 36,256 | ||||||||
Total | $ | 1,846,563 | |||||||
Schedule of Interest Expenses on Deposits [Table Text Block] | A table showing interest expense on deposits follows: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
(In thousands) | |||||||||
Interest-bearing checking accounts | $ | 6,446 | $ | 8,419 | $ | 9,421 | |||
Savings | 15,416 | 15,852 | 17,382 | ||||||
Certificates of deposit | 26,371 | 29,264 | 34,602 | ||||||
Brokered certificates of deposit | 29,894 | 38,252 | 66,854 | ||||||
Total | $ | 78,127 | $ | 91,787 | $ | 128,259 |
SECURITIES_SOLD_UNDER_AGREEMEN1
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule Of Repurchase Agreements [Table Text Block] | |||||||||||||
December, 31 | |||||||||||||
2014 | 2013 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Repurchase agreements, interest ranging from 2.45% to 4.50% | |||||||||||||
(December 31, 2013: 2.45% to 3.32%) (1) | $ | 900,000 | $ | 900,000 | |||||||||
-1 | As of December 31, 2014, includes $800 million with an average rate of 3.30%, and that lenders have the right to call before their contractual maturities | ||||||||||||
at various dates beginning on January 9, 2015. Subsequent to December 31, 2014, no lender has exercised its call option on repurchase agreements. | |||||||||||||
In addition, $500 million of the $900 million is tied to variable rates. | |||||||||||||
Schedule of Repurchase Agreement Maturity [Table Text Block] | Repurchase agreements mature as follows: | ||||||||||||
31-Dec-14 | |||||||||||||
(In thousands) | |||||||||||||
Over one year to three years | $ | 700,000 | |||||||||||
Three to five years | 200,000 | ||||||||||||
Total | $ | 900,000 | |||||||||||
Schedule of Securities Sold Under Repurchase Agreements [Table Text Block] | The following securities were sold under agreements to repurchase: | ||||||||||||
31-Dec-14 | |||||||||||||
Amortized | Approximate | Weighted | |||||||||||
Cost of | Fair Value | Average | |||||||||||
Underlying | Balance of | of Underlying | Interest Rate | ||||||||||
Underlying Securities | Securities | Borrowing | Securities | of Security | |||||||||
(In thousands) | |||||||||||||
U.S. government-sponsored agencies | $ | 170,495 | $ | 150,051 | $ | 166,320 | 1.27 | % | |||||
Mortgage-backed securities | 852,132 | 749,949 | 859,646 | 2.53 | % | ||||||||
Total | $ | 1,022,627 | $ | 900,000 | $ | 1,025,966 | |||||||
Accrued interest receivable | $ | 2,846 | |||||||||||
31-Dec-13 | |||||||||||||
Amortized | Approximate | Weighted | |||||||||||
Cost of | Fair Value | Average | |||||||||||
Underlying | Balance of | of Underlying | Interest Rate | ||||||||||
Underlying Securities | Securities | Borrowing | Securities | of Security | |||||||||
(In thousands) | |||||||||||||
U.S. government-sponsored agencies | $ | 212,218 | $ | 178,360 | $ | 198,968 | 1.31 | % | |||||
Mortgage-backed securities | 858,626 | 721,640 | 843,514 | 2.59 | % | ||||||||
Total | $ | 1,070,844 | $ | 900,000 | $ | 1,042,482 | |||||||
Accrued interest receivable | $ | 2,925 | |||||||||||
Repurchase Agreements Grouped by Counterparty [Table Text Block] | Repurchase agreements as of December 31, 2014, grouped by counterparty, were as follows: | ||||||||||||
(Dollars in thousands) | Weighted Average | ||||||||||||
Counterparty | Amount | Maturity (In Months) | |||||||||||
Citigroup Global Markets | $ | 300,000 | 22 | ||||||||||
JP Morgan Chase | 200,000 | 26 | |||||||||||
Dean Witter / Morgan Stanley | 100,000 | 34 | |||||||||||
Credit Suisse First Boston | 300,000 | 36 | |||||||||||
$ | 900,000 | ||||||||||||
ADVANCES_FROM_THE_FEDERAL_HOME1
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Summary of Advances from FHLB [Table Text Block] | The following is a summary of the advances from the FHLB: | ||||||
December 31, | December 31, | ||||||
2014 | 2013 | ||||||
(In thousands) | |||||||
Fixed-rate advances from FHLB, with a weighted average | |||||||
interest rate of 1.17% (December 31, 2013 - 1.11%) | $ | 325,000 | $ | 300,000 | |||
Advances from FHLB Mature [Table Text Block] | Advances from FHLB mature as follows: | ||||||
December 31, | |||||||
2014 | |||||||
(In thousands) | |||||||
Over one to three years | $ | 300,000 | |||||
Three to four years | 25,000 | ||||||
Total | $ | 325,000 | |||||
OTHER_BORROWINGS_Tables
OTHER BORROWINGS (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Components of Other Borrowings [Table Text Block] | December 31, | December 31, | ||||
2014 | 2013 | |||||
(In thousands) | ||||||
Junior subordinated debentures due in 2034, | ||||||
interest-bearing at a floating rate of 2.75% | ||||||
over 3-month LIBOR (2.99% as of December 31, 2014 | ||||||
and December 31, 2013) | $ | 103,093 | $ | 103,093 | ||
Junior subordinated debentures due in 2034, | ||||||
interest-bearing at a floating rate of 2.50% | ||||||
over 3-month LIBOR (2.75% as of December 31, 2014 | ||||||
and December 31, 2013) | 128,866 | 128,866 | ||||
$ | 231,959 | $ | 231,959 |
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Calculations of Earnings Per Common Share [Table Text Block] | The calculation of earnings (losses) per common share for the years ended December 31, 2014, 2013, and 2012 are as follows: | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands, except per share information) | |||||||||||
Net income (loss) | $ | 392,287 | $ | -164,487 | $ | 29,782 | |||||
Favorable impact from issuing common stock in exchange for Series G | |||||||||||
Favorable impact from issuing common stock in exchange for | |||||||||||
Series A through E preferred stock (1) | 1,659 | - | - | ||||||||
Net income (loss) attributable to common stockholders | 393,946 | -164,487 | 29,782 | ||||||||
Net income (loss) attributable to common stockholders- diluted | $ | 393,946 | $ | -164,487 | $ | 29,782 | |||||
Weighted Average Shares: | |||||||||||
Average common shares outstanding | 208,752 | 205,542 | 205,366 | ||||||||
Average potential dilutive common shares | 1,788 | - | 462 | ||||||||
Average common shares outstanding - assuming dilution | 210,540 | 205,542 | 205,828 | ||||||||
Basic earnings (loss) per common share | $ | 1.89 | $ | -0.8 | $ | 0.15 | |||||
Diluted earnings (loss) per common share | $ | 1.87 | $ | -0.8 | $ | 0.14 | |||||
____________ | |||||||||||
-1 | Excess of carrying amount of the Series A through E preferred stock exchanged over the fair value of new common | ||||||||||
shares issued in 2014. |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Activity of Stock Options [Table Text Block] | The activity of stock options granted under the 1997 stock option plan for the year ended December 31, 2014 is set forth below: | |||||||||
Weighted Average | Aggregate | |||||||||
Remaining | Intrinsic | |||||||||
Number of | Weighted Average | Contractual Term | Value | |||||||
Options | Exercise Price | (Years) | (In thousands) | |||||||
Beginning of year | 101,435 | $ | 206.95 | |||||||
Options expired | -12,795 | 321.75 | ||||||||
Options cancelled | -6,065 | 226.15 | ||||||||
End of year outstanding and exercisable | 82,575 | $ | 187.75 | 1.4 | $ | - | ||||
Restricted Stock Activity Under Omnibus Plan [Table Text Block] | The following table summarizes the restricted stock activity in 2014 under the Omnibus Plan for both executive | |||||||||
officers covered by the TARP requirements and other employees as well as for the independent directors: | ||||||||||
2014 | ||||||||||
Number of | Weighted | |||||||||
shares of | Average | |||||||||
restricted | Grant Date | |||||||||
stock | Fair Value | |||||||||
Non-vested shares at beginning of year | 1,411,185 | $ | 3.04 | |||||||
Granted | 1,219,711 | 3.75 | ||||||||
Forfeited | -40,090 | 3.53 | ||||||||
Vested | -263,650 | 3.31 | ||||||||
Non-vested shares at end of year | 2,327,156 | $ | 3.39 | |||||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||
Schedule of results of the exchange offer with respect to Series A through E preferred stock [Table Text Block] | The results of the exchange with respect to Series A through E preferred stock were as follows: | |||||||||||||||||||||||
Liquidation preference per share | Shares of Preferred stock outstanding prior to exchange | Shares of preferred stock exchanged | Shares of preferred stock outstanding after exchange | Aggregate liquidation preference after exchange (In thousands) | Shares of common stock issued | |||||||||||||||||||
Title of Securities | ||||||||||||||||||||||||
7.125% Noncumulative Perpetual | ||||||||||||||||||||||||
Monthly Income Preferred | ||||||||||||||||||||||||
Stock, Series A | $25 | 450,195 | 252,809 | 197,386 | $ | 4,935 | 1,081,652 | |||||||||||||||||
8.35% Noncumulative Perpetual | ||||||||||||||||||||||||
Monthly Income Preferred | ||||||||||||||||||||||||
Stock, Series B | $25 | 475,987 | 179,841 | 296,146 | 7,404 | 769,379 | ||||||||||||||||||
7.40% Noncumulative Perpetual | ||||||||||||||||||||||||
Monthly Income Preferred | ||||||||||||||||||||||||
Stock, Series C | $25 | 460,611 | 210,759 | 249,852 | 6,246 | 890,830 | ||||||||||||||||||
7.25% Noncumulative Perpetual | ||||||||||||||||||||||||
Monthly Income Preferred | ||||||||||||||||||||||||
Stock, Series D | $25 | 510,592 | 225,070 | 285,522 | 7,138 | 961,724 | ||||||||||||||||||
7.00% Noncumulative Perpetual | ||||||||||||||||||||||||
Monthly Income Preferred | ||||||||||||||||||||||||
Stock, Series E | $25 | 624,487 | 209,247 | 415,240 | 10,381 | 893,536 | ||||||||||||||||||
2,521,872 | 1,077,726 | 1,444,146 | $ | 36,104 | 4,597,121 | |||||||||||||||||||
OTHER_NON_INTEREST_INCOME_Tabl
OTHER NON- INTEREST INCOME (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Other Non-interest Income [Abstract] | |||||||||||
Schedule of other non interest income [Table Text Block] | A detail of other non-interest income is as follows: | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Non-deferrable loan fees | $ | 2,238 | $ | 2,248 | $ | 5,090 | |||||
Commissions and fees-broker-dealer-related | 459 | 97 | 2,630 | ||||||||
Lower of cost or market adjustment-commercial and construction | |||||||||||
loans held for sale | - | -1,503 | - | ||||||||
Credit card loans interchange and other fees | 6,204 | 6,694 | 7,239 | ||||||||
Other | 21,590 | 20,640 | 11,772 | ||||||||
Total | $ | 30,491 | $ | 28,176 | $ | 26,731 | |||||
OTHER_NON_INTEREST_EXPENSES_Ta
OTHER NON- INTEREST EXPENSES (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Other Non Interest Expenses [Abstract] | ||||||||||
Schedule of other non interest expenses [Table Text Block] | A detail of non-interest expenses is as follows: | |||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Supplies and printing | $ | 2,140 | $ | 3,014 | $ | 2,811 | ||||
Contingency adjustment-tax credits | - | - | 2,489 | |||||||
Reserve release for off-balance sheet exposures | -653 | -443 | -1,914 | |||||||
Contingency for attorney's fees-Lehman | - | 2,500 | - | |||||||
Amortization of intangible assets | 4,943 | 6,078 | 3,306 | |||||||
Data processing fees | 1,619 | 1,601 | 1,568 | |||||||
Write-down and losses on sale of non-real estate | ||||||||||
repossessed properties | 737 | 263 | 338 | |||||||
Other | 10,253 | 15,632 | 13,324 | |||||||
Total | $ | 19,039 | $ | 28,645 | $ | 21,922 | ||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Taxes [Abstract] | |||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Current income tax expense | $ | -5,361 | $ | -7,947 | $ | -5,357 | |||||||||||
Deferred income tax benefit (expense) | 306,010 | 2,783 | -575 | ||||||||||||||
Total income tax benefit (expense) | $ | 300,649 | $ | -5,164 | $ | -5,932 | |||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The differences between the income tax expense applicable to income before the provision for income taxes and the | ||||||||||||||||
amount computed by applying the statutory tax rate in Puerto Rico were as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Amount | % of Pretax Income | Amount | % of Pretax Income | Amount | % of Pretax Income | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Computed income tax at | |||||||||||||||||
statutory rate | $ | -35,738 | -39.00% | $ | 62,136 | 39.00% | $ | -10,714 | -30.00% | ||||||||
Federal and state taxes | -117 | -0.10% | -136 | 0.00% | - | - | |||||||||||
Adjustment in deferred tax due | |||||||||||||||||
to change in tax rate | -346 | -0.40% | 106,717 | 67.00% | - | - | |||||||||||
Benefit of net exempt income | 15,202 | 17.00% | -13,320 | -8.40% | -3,627 | -10.10% | |||||||||||
National receipts tax, net | 628 | 0.70% | 552 | 0.30% | - | - | |||||||||||
Nontax deductible expenses | -193 | -0.20% | -146 | -0.10% | -2,417 | -6.80% | |||||||||||
(Decrease) increase in | |||||||||||||||||
unrecognized tax benefits, | |||||||||||||||||
including interest | 1,763 | 2.00% | -3,218 | -2.00% | -238 | -0.70% | |||||||||||
Recognition of unrecognized tax | |||||||||||||||||
Deferred tax valuation allowance | 318,380 | 347.00% | -157,449 | -98.80% | 9,602 | 26.90% | |||||||||||
Other-net | 1,070 | 1.20% | -300 | -0.20% | 1,462 | 4.10% | |||||||||||
Total income tax | |||||||||||||||||
benefit (expense) | $ | 300,649 | 328.20% | $ | -5,164 | -3.20% | $ | -5,932 | -16.60% | ||||||||
Schedule of significant components Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Significant components of the Corporation's deferred tax assets and liabilities as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Deferred tax asset: | |||||||||||||||||
Net operating loss and charitable contribution carryforward available | $ | 387,388 | $ | 373,253 | |||||||||||||
Allowance for loan and lease losses | 85,048 | 108,811 | |||||||||||||||
Tax credits available for carryforward | 11,659 | 7,616 | |||||||||||||||
Unrealized loss on OREO valuation | 11,517 | 13,104 | |||||||||||||||
Unrealized net loss on equity investment | 7,752 | 12,273 | |||||||||||||||
Settlement payment-closing agreement | 7,313 | 7,313 | |||||||||||||||
Legal reserve | 3,239 | 3,285 | |||||||||||||||
Impairment on investment | 3,212 | 2,409 | |||||||||||||||
Reserve for insurance premium cancellations | 560 | 687 | |||||||||||||||
Unrealized losses on derivatives activities | 58 | 1,415 | |||||||||||||||
Unrealized loss on available-for-sale securities, net | - | 337 | |||||||||||||||
Other | 9,848 | 8,736 | |||||||||||||||
Gross deferred tax assets | 527,594 | 539,239 | |||||||||||||||
Less: Valuation allowance | -204,587 | -522,708 | |||||||||||||||
Total deferred tax assets, net of valuation allowance | 323,007 | 16,531 | |||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Unrealized gain on available-for-sale securities, net | 1,091 | - | |||||||||||||||
Differences between the assigned values and tax bases of asset | |||||||||||||||||
and liabilities recognized in purchase business combinations | 811 | 1,034 | |||||||||||||||
Unrealized gain on other investments | 468 | 625 | |||||||||||||||
Other | 7,593 | 7,228 | |||||||||||||||
Gross deferred tax liabilities | 9,963 | 8,887 | |||||||||||||||
Net deferred tax assets | $ | 313,044 | $ | 7,644 | |||||||||||||
Schedule of reconciliation of change in Unrecognized Tax Benefits [Table Text Block] | The following table reconciles the balance of UTBs: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Balance at January 1, | $ | 4,310 | $ | 2,374 | $ | 2,374 | |||||||||||
(Decrease) increase related to positions taken during | |||||||||||||||||
prior years | -1,763 | 1,936 | - | ||||||||||||||
Decrease related to settlement with taxing authorities | -2,547 | - | - | ||||||||||||||
Balance at December 31, | $ | - | $ | 4,310 | $ | 2,374 |
LEASE_COMMITMENTS_Tables
LEASE COMMITMENTS (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Lease Commitments [Abstract] | |||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | |||
Amount | |||
(In thousands) | |||
2015 | $ | 8,683 | |
2016 | 8,097 | ||
2017 | 7,261 | ||
2018 | 6,744 | ||
2019 | 5,936 | ||
2020 and later years | 31,238 | ||
Total | $ | 67,959 | |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis [Table Text Block] | Assets and liabilities measures at fair value on a recurring basis are summarized below: | |||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
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 : | ||||||||||||||||||||||||
Equity securities | $ | - | $ | - | $ | - | $ | - | $ | 33 | $ | - | $ | - | $ | 33 | ||||||||
U.S. Treasury Securities | 7,499 | - | - | 7,499 | 7,499 | - | - | 7,499 | ||||||||||||||||
Noncallable U.S. agency debt | - | 228,157 | - | 228,157 | - | 200,903 | - | 200,903 | ||||||||||||||||
Callable U.S. agency debt and MBS | - | 1,653,140 | - | 1,653,140 | - | 1,677,651 | - | 1,677,651 | ||||||||||||||||
Puerto Rico government obligations | - | 40,658 | 2,564 | 43,222 | - | 48,904 | 2,426 | 51,330 | ||||||||||||||||
Private label MBS | - | - | 33,648 | 33,648 | - | - | 40,866 | 40,866 | ||||||||||||||||
Derivatives, included in assets: | ||||||||||||||||||||||||
Interest rate swap agreements | - | 33 | - | 33 | - | 162 | - | 162 | ||||||||||||||||
Purchased interest rate cap agreements | - | 6 | - | 6 | - | 58 | - | 58 | ||||||||||||||||
Forward contracts | - | - | - | - | - | 174 | - | 174 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Derivatives, included in liabilities: | ||||||||||||||||||||||||
Interest rate swap agreements | - | 33 | - | 33 | - | 3,965 | - | 3,965 | ||||||||||||||||
Written interest rate cap agreement | - | 6 | - | 6 | - | 58 | - | 58 | ||||||||||||||||
Forward contracts | - | 148 | - | 148 | - | - | - | - | ||||||||||||||||
Schedule of Changes in Fair Value [Table Text Block] | ||||||||||||||||||||||||
The table below presents a reconciliation 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, 2014, 2013, and 2012: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Level 3 Instruments Only (In thousands) | Securities Available for Sale (1) | Securities Available for Sale (1) | Securities Available for Sale (1) | |||||||||||||||||||||
Beginning balance | $ | 43,292 | $ | 54,617 | $ | 65,463 | ||||||||||||||||||
Total gain (losses) (realized/unrealized): | ||||||||||||||||||||||||
Included in earnings | -388 | -117 | -2,002 | |||||||||||||||||||||
Included in other comprehensive income | 2,404 | 2,795 | 6,036 | |||||||||||||||||||||
Held-to-maturity investment securities | ||||||||||||||||||||||||
Purchases | 5,123 | - | - | |||||||||||||||||||||
Sales | -4,855 | - | -1,450 | |||||||||||||||||||||
Principal repayments and amortization | -9,364 | -14,003 | -13,430 | |||||||||||||||||||||
Ending balance | $ | 36,212 | $ | 43,292 | $ | 54,617 | ||||||||||||||||||
___________________ | ||||||||||||||||||||||||
-1 | Amounts mostly related to private label mortgage-backed securities. | |||||||||||||||||||||||
Impairment or Valuation Adjustments were Recorded for Assets Recognized at Fair Value [Table Text Block] | As of December 31, 2014, impairment or valuation adjustments were recorded for assets recognized at fair value on a non-recurring basis as shown in the following table: | |||||||||||||||||||||||
Carrying value as of December 31, 2014 | (Losses) Gain recorded for the Year Ended December 31, 2014 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Loans receivable (1) | $ | - | $ | - | $ | 446,816 | $ | -43,318 | ||||||||||||||||
OREO (2) | - | - | 124,003 | -9,656 | ||||||||||||||||||||
Mortgage servicing rights (3) | - | - | 22,838 | -228 | ||||||||||||||||||||
Loans Held for Sale (4) | - | - | 54,641 | - | ||||||||||||||||||||
-1 | Mainly impaired commercial and construction loans. The impairment was generally measured based on the fair value of the | |||||||||||||||||||||||
collateral. The fair values were derived from external appraisals that take 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 fair value was derived from appraisals that take 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. | ||||||||||||||||||||||||
-3 | Fair value adjustments to mortgage servicing rights were mainly due to assumptions associated with mortgage | |||||||||||||||||||||||
prepayment rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at | ||||||||||||||||||||||||
fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate | ||||||||||||||||||||||||
9.74%, Discount rate 10.60%. | ||||||||||||||||||||||||
-4 | The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans, and for | |||||||||||||||||||||||
loans with signed sale agreements, the value was determined based on the sales price on such agreements. | ||||||||||||||||||||||||
As of December 31, 2013, impairment or valuation adjustments were recorded for assets recognized at fair value on a nonrecurring basis as shown in the following table: | ||||||||||||||||||||||||
Carrying value as of December 31, 2013 | (Losses) Gain recorded for the Year Ended December 31, 2013 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Loans receivable (1) | $ | - | $ | - | $ | 465,191 | $ | -13,928 | ||||||||||||||||
OREO (2) | - | - | 160,193 | -25,698 | ||||||||||||||||||||
Mortgage servicing rights (3) | - | - | 21,987 | 460 | ||||||||||||||||||||
Loans Held For Sale (4) | - | - | 54,801 | -338 | ||||||||||||||||||||
-1 | Mainly impaired commercial and construction loans. The impairment was generally measured based on the fair value of the | |||||||||||||||||||||||
collateral. The fair values were derived from external appraisals that take 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 fair value was derived from appraisals that take 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. | ||||||||||||||||||||||||
-3 | Fair value adjustments to the mortgage servicing rights were mainly due to assumptions associated with mortgage prepayments | |||||||||||||||||||||||
rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non- | ||||||||||||||||||||||||
recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate 8.90%, Discount rate 10.60%. | ||||||||||||||||||||||||
-4 | The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans, and for loans | |||||||||||||||||||||||
with signed sale agreements, the value was determined based on the sales price on such agreements. | ||||||||||||||||||||||||
As of December 31, 2012, impairment or valuation adjustments were recorded for assets recognized at fair value on a nonrecurring basis as shown in the following table: | ||||||||||||||||||||||||
Carrying value as of December 31, 2012 | (Losses) Gain recorded for the Year Ended December 31, 2012 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Loans receivable (1) | $ | - | $ | - | $ | 757,152 | $ | -110,457 | ||||||||||||||||
OREO (2) | - | - | 185,764 | -8,851 | ||||||||||||||||||||
Mortgage servicing rights (3) | - | - | 17,524 | -394 | ||||||||||||||||||||
Loans Held For Sale (4) | - | - | 2,641 | -2,168 | ||||||||||||||||||||
-1 | Mainly impaired commercial and construction loans. The impairment was generally measured based on the fair value of the | |||||||||||||||||||||||
collateral. The fair values were derived from external appraisals that take 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 fair value was derived from appraisals that take 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. | ||||||||||||||||||||||||
-3 | Fair value adjustments to the mortgage servicing rights were mainly due to assumptions associated with mortgage prepayments | |||||||||||||||||||||||
rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring | ||||||||||||||||||||||||
basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate 11.15%, Discount rate 12.08%. | ||||||||||||||||||||||||
-4 | Relates to $5.2 million Commercial and Industrial and Commercial Mortgage Loans transferred to held for sale during the fourth | |||||||||||||||||||||||
quarter of 2012, which were recorded at a value of $2.6 million. | ||||||||||||||||||||||||
Estimated Fair Value and Carrying Value of Financial Instruments [Table Text Block] | The following table presents the estimated fair value and carrying value of financial instruments as of December 31, 2014 and 2013: | |||||||||||||||||||||||
Total Carrying Amount in Statement of Financial Condition December 31, 2014 | Fair Value Estimate December 31, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and due from banks and money | ||||||||||||||||||||||||
market investments | $ | 796,108 | $ | 796,108 | $ | 796,108 | $ | - | $ | - | ||||||||||||||
Investment securities available | ||||||||||||||||||||||||
for sale | 1,965,666 | 1,965,666 | 7,499 | 1,921,955 | 36,212 | |||||||||||||||||||
Other equity securities | 25,752 | 25,752 | - | 25,752 | - | |||||||||||||||||||
Loans held for sale | 76,956 | 77,888 | - | 23,247 | 54,641 | |||||||||||||||||||
Loans, held for investment | 9,262,436 | |||||||||||||||||||||||
Less: allowance for loan and lease losses | -222,395 | |||||||||||||||||||||||
Loans held for investment, net of | ||||||||||||||||||||||||
allowance | $ | 9,040,041 | 8,844,659 | - | - | 8,844,659 | ||||||||||||||||||
Derivatives included in assets | 39 | 39 | - | 39 | - | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Deposits | 9,483,945 | 9,486,325 | - | 9,486,325 | - | |||||||||||||||||||
Securities sold under agreements to | ||||||||||||||||||||||||
repurchase | 900,000 | 958,715 | - | 958,715 | - | |||||||||||||||||||
Advances from FHLB | 325,000 | 324,376 | - | 324,376 | - | |||||||||||||||||||
Other borrowings | 231,959 | 162,344 | - | - | 162,344 | |||||||||||||||||||
Derivatives included in liabilities | 187 | 187 | - | 187 | - | |||||||||||||||||||
Total Carrying Amount in Statement of Financial Condition December 31, 2013 | Fair Value Estimate December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and due from banks and money | ||||||||||||||||||||||||
market investments | $ | 655,671 | $ | 655,671 | $ | 655,671 | $ | - | $ | - | ||||||||||||||
Investment securities available | ||||||||||||||||||||||||
for sale | 1,978,282 | 1,978,282 | 7,532 | 1,927,458 | 43,292 | |||||||||||||||||||
Other equity securities | 28,691 | 28,691 | - | 28,691 | - | |||||||||||||||||||
Loans held for sale | 75,969 | 76,684 | - | 21,883 | 54,801 | |||||||||||||||||||
Loans, held for investment | 9,636,170 | |||||||||||||||||||||||
Less: allowance for loan and lease | ||||||||||||||||||||||||
losses | -285,858 | |||||||||||||||||||||||
Loans held for investment, net of | ||||||||||||||||||||||||
allowance | $ | 9,350,312 | 9,127,234 | - | - | 9,127,234 | ||||||||||||||||||
Derivatives included in assets | 394 | 394 | - | 394 | - | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Deposits | 9,879,924 | 9,898,615 | - | 9,898,615 | - | |||||||||||||||||||
Securities sold under agreements to | ||||||||||||||||||||||||
repurchase | 900,000 | 976,151 | - | 976,151 | - | |||||||||||||||||||
Advances from FHLB | 300,000 | 297,523 | - | 297,523 | - | |||||||||||||||||||
Other borrowings | 231,959 | 106,772 | - | - | 106,772 | |||||||||||||||||||
Derivatives included in liabilities | 4,023 | 4,023 | - | 4,023 | - | |||||||||||||||||||
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 are as follows: | |||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||
Mortgage servicing rights | Discounted Cash Flows | Weighted average prepayment rate of 9.74%; weighted average discount rate of 10.60% | ||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | The table below presents qualitative information for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of December 31, 2014: | |||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
(In thousands) | Fair Value | Valuation Technique | Unobservable Input | Range | ||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||
Private label MBS | $ | 33,648 | Discounted cash flows | Discount rate | 14.50% | |||||||||||||||||||
Prepayment rate | 19.89% -100% (Weighted Average 32%) | |||||||||||||||||||||||
Projected Cumulative Loss Rate | 0.64% - 80.0% (Weighted Average 7.9%) | |||||||||||||||||||||||
Puerto Rico Government Obligations | 2,564 | Discounted cash flows | Prepayment rate | 5.61% | ||||||||||||||||||||
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, 2014, 2013, and 2012 for Level 3 assets and liabilities that are still held at the end of each year: | |||||||||||||||||||||||
Changes in Unrealized Losses (Year Ended December 31, 2014) | Changes in Unrealized Losses (Year Ended December 31, 2013) | Changes in Unrealized Losses (Year Ended December 31, 2012) | ||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Net impairment losses on available-for-sale investment | ||||||||||||||||||||||||
securities (credit component) | $ | -388 | $ | -117 | $ | -2,002 | ||||||||||||||||||
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Supplemental Cash Flow Information [Table Text Block] | Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Cash paid for: | ||||||||||
Interest on borrowings | $ | 102,402 | $ | 119,312 | $ | 164,364 | ||||
Income tax | 7,751 | 4,447 | 8,603 | |||||||
Non-cash investing and financing activities: | ||||||||||
Additions to other real estate owned | 48,601 | 104,144 | 169,432 | |||||||
Additions to auto and other repossessed assets | 92,266 | 69,069 | 48,910 | |||||||
Capitalization of servicing assets | 4,321 | 7,649 | 6,348 | |||||||
Loan securitizations | 198,712 | 355,506 | 239,766 | |||||||
Loans held for investment transferred to held for sale | - | 181,620 | 2,641 | |||||||
Property plant and equipment transferred to other assets | - | 2,225 | - | |||||||
Preferred stock exchanged for new common stock issued: | ||||||||||
Preferred stock exchanged (Series A through E) | 26,022 | - | - | |||||||
New common stock issued | 24,363 | - | - | |||||||
Loans sold to CPG/GS in exchange for an acquisition loan and an | ||||||||||
Reclassification of held-to-maturity investment securities to | ||||||||||
REGULATORY_MATTERS_COMMITMENTS1
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Regulatory Matters, Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||
Corporations and its banking subsidiarys regulatory capital positions [Table Text Block] | The Corporation's and its banking subsidiary's regulatory capital positions as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||||
Regulatory Requirements | |||||||||||||||||||||||||||||||||
Actual | For Capital Adequacy Purposes | To be Well-Capitalized-Regular Thresholds | Consent Order Capital requirements | ||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
At December 31, 2014 | |||||||||||||||||||||||||||||||||
Total Capital (to | |||||||||||||||||||||||||||||||||
Risk-Weighted Assets) | |||||||||||||||||||||||||||||||||
First BanCorp. | $ | 1,748,120 | 19.70% | $ | 709,723 | 8% | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
FirstBank | $ | 1,717,432 | 19.37% | $ | 709,395 | 8% | $ | 886,744 | 10% | $ | 1,064,093 | 12% | |||||||||||||||||||||
Tier I Capital (to | |||||||||||||||||||||||||||||||||
Risk-Weighted Assets) | |||||||||||||||||||||||||||||||||
First BanCorp. | $ | 1,636,004 | 18.44% | $ | 354,861 | 4% | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
FirstBank | $ | 1,605,367 | 18.10% | $ | 354,698 | 4% | $ | 532,046 | 6% | $ | 886,744 | 10% | |||||||||||||||||||||
Leverage ratio | |||||||||||||||||||||||||||||||||
First BanCorp. | $ | 1,636,004 | 13.27% | $ | 493,159 | 4% | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
FirstBank | $ | 1,605,367 | 13.04% | $ | 492,468 | 4% | $ | 615,585 | 5% | $ | 984,937 | 8% | |||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||||||
Total Capital (to | |||||||||||||||||||||||||||||||||
Risk-Weighted Assets) | |||||||||||||||||||||||||||||||||
First BanCorp. | $ | 1,604,548 | 17.06% | $ | 752,464 | 8% | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
FirstBank | $ | 1,567,232 | 16.67% | $ | 751,978 | 8% | $ | 939,972 | 10% | $ | 1,127,966 | 12% | |||||||||||||||||||||
Tier I Capital (to | |||||||||||||||||||||||||||||||||
Risk-Weighted Assets) | |||||||||||||||||||||||||||||||||
First BanCorp. | $ | 1,484,490 | 15.78% | $ | 376,232 | 4% | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
FirstBank | $ | 1,447,262 | 15.40% | $ | 375,989 | 4% | $ | 563,983 | 6% | $ | 939,972 | 10% | |||||||||||||||||||||
Leverage ratio | |||||||||||||||||||||||||||||||||
First BanCorp. | $ | 1,484,490 | 11.71% | $ | 506,878 | 4% | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
FirstBank | $ | 1,447,262 | 11.44% | $ | 506,210 | 4% | $ | 632,763 | 5% | $ | 1,012,420 | 8% | |||||||||||||||||||||
Schedule of detail of commitments to extend credit, standby letters of credit and commitments to sell loans [Table Text Block] | The following table presents a detail of commitments to extend credit and standby letters of credit, and commitments to sell loans: | ||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Financial instruments whose contract amounts represent credit risk: | |||||||||||||||||||||||||||||||||
Commitments to extend credit: | |||||||||||||||||||||||||||||||||
Construction undisbursed funds | $ | 76,235 | $ | 65,184 | |||||||||||||||||||||||||||||
Unused personal lines of credit | 682,994 | 735,331 | |||||||||||||||||||||||||||||||
Commercial lines of credit | 383,015 | 386,941 | |||||||||||||||||||||||||||||||
Commercial letters of credit | 38,555 | 41,081 | |||||||||||||||||||||||||||||||
Standby letters of credit | 3,791 | 10,527 | |||||||||||||||||||||||||||||||
Commitments to sell loans | 129,369 | 123,925 | |||||||||||||||||||||||||||||||
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Notional Amounts of All Derivative Instruments [Table Text Block] | The following table summarizes the notional amounts of all derivative instruments: | ||||||||||||||||
Notional Amounts | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Undesignated economic hedges: | (In thousands) | ||||||||||||||||
Interest rate contracts: | |||||||||||||||||
Interest rate swap agreements | $ | 5,440 | $ | 31,080 | |||||||||||||
Written interest rate cap agreements | 37,132 | 38,391 | |||||||||||||||
Purchased interest rate cap agreements | 37,132 | 38,391 | |||||||||||||||
Forward Contracts: | |||||||||||||||||
Sale of TBA GNMA MBS pools | 19,000 | 25,000 | |||||||||||||||
$ | 98,704 | $ | 132,862 | ||||||||||||||
Notional amounts are presented on a gross basis with no netting of offsetting exposure positions. | |||||||||||||||||
Summary of Fair Value of Derivative Instruments and Location in Statement of Financial Condition [Table Text Block] | The following table summarizes the fair value of derivative instruments and the location of the derivative instruments in the statement of financial condition: | ||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||
Statement of | December 31, | December 31, | Statement of Financial Condition Location | December 31, | December 31, | ||||||||||||
Financial | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Condition Location | Fair Value | Fair Value | Fair Value | Fair Value | |||||||||||||
(In thousands) | |||||||||||||||||
Undesignated economic hedges: | |||||||||||||||||
Interest rate contracts: | |||||||||||||||||
Interest rate swap agreements | Other assets | $ | 33 | $ | 162 | Accounts payable and other liabilities | $ | 33 | $ | 3,965 | |||||||
Written interest rate cap agreements | Other assets | - | - | Accounts payable and other liabilities | 6 | 58 | |||||||||||
Purchased interest rate cap agreements | Other assets | 6 | 58 | Accounts payable and other liabilities | - | - | |||||||||||
Forward Contracts: | |||||||||||||||||
Sales of TBA GNMA MBS pools | Other assets | - | 174 | Accounts payable and other liabilities | 148 | - | |||||||||||
$ | 39 | $ | 394 | $ | 187 | $ | 4,023 | ||||||||||
Effect of Derivative Instruments on Statement of Income (Loss) [Table Text Block] | The following table summarizes the effect of derivative instruments on the statement of income (loss): | ||||||||||||||||
Location of Gain (or loss) | Gain (or Loss) Year ended | ||||||||||||||||
Recognized in Income on | December 31, | ||||||||||||||||
Derivatives | 2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Undesignated economic hedges: | |||||||||||||||||
Interest rate contracts: | |||||||||||||||||
Interest rate swap agreements | Interest income - Loans | $ | 1,258 | $ | 1,685 | $ | 901 | ||||||||||
Written and purchased interest rate cap agreements | Interest income - Loans | - | 10 | - | |||||||||||||
Embedded written and purchased options on stock | Interest expense - Notes payable and other | ||||||||||||||||
Forward contracts: | |||||||||||||||||
Sales of TBA GNMA MBS pools | Mortgage Banking Activities | -322 | 176 | 166 | |||||||||||||
Total gain on derivatives | $ | 936 | $ | 1,871 | $ | 1,067 | |||||||||||
Summary of Interest Rate Swaps [Table Text Block] | December 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Pay fixed/receive floating: | |||||||||||||||||
Notional amount | $ | 5,440 | $ | 31,080 | |||||||||||||
Weighted average receive rate at period-end | 2.03% | 1.85% | |||||||||||||||
Weighted average pay rate at period-end | 3.45% | 6.77% | |||||||||||||||
OFFSETTING_OF_ASSETS_AND_LIABI1
OFFSETTING OF ASSETS AND LIABILITIES (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Text Block [Abstract] | ||||||||||||||||||||||||
Offsetting of assets and liabilties | Offsetting of Financial Assets and Derivative Assets | |||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
Net Amounts of Assets Presented in the Statement of Financial Position | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||
Financial Instruments | Cash Collateral | |||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Description | ||||||||||||||||||||||||
Derivatives | $ | 6 | $ | - | $ | 6 | $ | -6 | $ | - | $ | - | ||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Net Amounts of Assets Presented in the Statement of Financial Position | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||
Financial Instruments | Cash Collateral | |||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Description | ||||||||||||||||||||||||
Derivatives | $ | 58 | $ | - | $ | 58 | $ | -58 | $ | - | $ | - | ||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | ||||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
Net Amounts of Liabilities Presented in the Statement of Financial Position | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||
Financial Instruments | Cash Collateral | |||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Description | ||||||||||||||||||||||||
Derivatives | $ | 33 | $ | - | $ | 33 | $ | -33 | $ | - | $ | - | ||||||||||||
Repurchase agreements | 600,000 | - | 600,000 | -600,000 | - | - | ||||||||||||||||||
Total | $ | 600,033 | $ | - | $ | 600,033 | $ | -600,033 | $ | - | $ | - | ||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Net Amounts of Liabilities Presented in the Statement of Financial Position | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||
Financial Instruments | Cash Collateral | |||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Description | ||||||||||||||||||||||||
Derivatives | $ | 3,965 | $ | - | $ | 3,965 | $ | -3,965 | $ | - | $ | - | ||||||||||||
Repurchase agreements | 600,000 | - | 600,000 | -600,000 | - | - | ||||||||||||||||||
Total | $ | 603,965 | $ | - | $ | 603,965 | $ | -603,965 | $ | - | $ | - | ||||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Schedule Of Segment Reporting Information By Segment [Text Block] | The following table presents information about the reportable segments: | ||||||||||||||||||||
Mortgage Banking | Consumer (Retail) Banking | Commercial and Corporate Banking | Treasury and Investments | United States Operations | Virgin Islands Operations | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||||
For the year ended December 31, 2014: | |||||||||||||||||||||
Interest income | $ | 115,997 | $ | 215,170 | $ | 163,242 | $ | 54,223 | $ | 44,882 | $ | 40,435 | $ | 633,949 | |||||||
Net (charge) credit for transfer of funds | -37,375 | 17,629 | -12,364 | 20,463 | 11,647 | - | - | ||||||||||||||
Interest expense | - | -24,445 | - | -68,517 | -19,273 | -3,641 | -115,876 | ||||||||||||||
Net interest income | 78,622 | 208,354 | 150,878 | 6,169 | 37,256 | 36,794 | 518,073 | ||||||||||||||
(Provision) release for loan and lease losses | -17,605 | -79,932 | -40,084 | - | 27,650 | 441 | -109,530 | ||||||||||||||
Non-interest income (loss) | 13,515 | 40,018 | 5,241 | 264 | 2,450 | 7,139 | 68,627 | ||||||||||||||
Direct non-interest expenses | -39,444 | -126,290 | -46,963 | -5,368 | -26,596 | -39,319 | -283,980 | ||||||||||||||
Segment income | $ | 35,088 | $ | 42,150 | $ | 69,072 | $ | 1,065 | $ | 40,760 | $ | 5,055 | $ | 193,190 | |||||||
Average earnings assets | $ | 2,142,122 | $ | 1,967,202 | $ | 3,613,354 | $ | 2,691,906 | $ | 976,151 | $ | 656,197 | $ | 12,046,932 | |||||||
Mortgage Banking | Consumer (Retail) Banking | Commercial and Corporate Banking | Treasury and Investments | United States Operations | Virgin Islands Operations | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||||
For the year ended December 31, 2013: | |||||||||||||||||||||
Interest income | $ | 109,074 | $ | 231,077 | $ | 171,972 | $ | 55,075 | $ | 36,999 | $ | 41,591 | $ | 645,788 | |||||||
Net (charge) credit for transfer of funds | -37,611 | 1,549 | -14,280 | 41,074 | 9,268 | - | - | ||||||||||||||
Interest expense | - | -27,834 | - | -77,366 | -21,748 | -3,895 | -130,843 | ||||||||||||||
Net interest income | 71,463 | 204,792 | 157,692 | 18,783 | 24,519 | 37,696 | 514,945 | ||||||||||||||
(Provision) release for loan and lease losses | -89,439 | -54,240 | -101,971 | - | 10,709 | -8,810 | -243,751 | ||||||||||||||
Non-interest income (loss) | 15,826 | 38,968 | 3,904 | -66,635 | 1,284 | 7,855 | 1,202 | ||||||||||||||
Direct non-interest expenses | -48,941 | -122,560 | -64,611 | -10,629 | -28,554 | -45,680 | -320,975 | ||||||||||||||
Segment (loss) income | $ | -51,091 | $ | 66,960 | $ | -4,986 | $ | -58,481 | $ | 7,958 | $ | -8,939 | $ | -48,579 | |||||||
Average earnings assets | $ | 2,030,120 | $ | 1,954,307 | $ | 4,068,942 | $ | 2,698,559 | $ | 748,209 | $ | 664,051 | $ | 12,164,188 | |||||||
Mortgage Banking | Consumer (Retail) Banking | Commercial and Corporate Banking | Treasury and Investments | United States Operations | Virgin Islands Operations | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||||
For the year ended December 31, 2012: | |||||||||||||||||||||
Interest income | $ | 110,164 | $ | 207,001 | $ | 187,860 | $ | 46,313 | $ | 37,376 | $ | 49,063 | $ | 637,777 | |||||||
Net (charge) credit for transfer of funds | -48,830 | 474 | -23,706 | 59,970 | 12,092 | - | - | ||||||||||||||
Interest expense | - | -30,904 | - | -111,209 | -29,340 | -4,619 | -176,072 | ||||||||||||||
Net interest income (loss) | 61,334 | 176,571 | 164,154 | -4,926 | 20,128 | 44,444 | 461,705 | ||||||||||||||
(Provision) release for loan and lease losses | -36,553 | -32,924 | -42,940 | - | 9,061 | -17,143 | -120,499 | ||||||||||||||
Non-interest income (loss) | 18,080 | 33,362 | 10,140 | -1,623 | 1,803 | 6,885 | 68,647 | ||||||||||||||
Direct non-interest expenses | -43,058 | -102,364 | -50,364 | -6,296 | -27,734 | -37,751 | -267,567 | ||||||||||||||
Segment (loss) income | $ | -197 | $ | 74,645 | $ | 80,990 | $ | -12,845 | $ | 3,258 | $ | -3,565 | $ | 142,286 | |||||||
Average earnings assets | $ | 2,067,304 | $ | 1,637,729 | $ | 4,571,779 | $ | 2,426,091 | $ | 727,556 | $ | 805,720 | $ | 12,236,179 | |||||||
Reconciliation of the Reportable Segment Financial Information [Table Text Block] | The following table presents a reconciliation of the reportable segment financial information to the consolidated totals: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Net income (loss) : | |||||||||||||||||||||
Total income (loss) for segments and other | $ | 193,190 | $ | -48,579 | $ | 142,286 | |||||||||||||||
Other non-interest loss (1) | -7,279 | -16,691 | -19,256 | ||||||||||||||||||
Other operating expenses (2) | -94,273 | -94,053 | -87,316 | ||||||||||||||||||
Income (loss) before income taxes | 91,638 | -159,323 | 35,714 | ||||||||||||||||||
Income tax benefit (expense) | 300,649 | -5,164 | -5,932 | ||||||||||||||||||
Total consolidated net income (loss) | $ | 392,287 | $ | -164,487 | $ | 29,782 | |||||||||||||||
Average assets: | |||||||||||||||||||||
Total average earning assets for segments | $ | 12,046,932 | $ | 12,164,188 | $ | 12,236,179 | |||||||||||||||
Other average earning assets (1) | 1,943 | 18,089 | 36,706 | ||||||||||||||||||
Average non-earning assets | 598,570 | 630,184 | 693,489 | ||||||||||||||||||
Total consolidated average assets | $ | 12,647,445 | $ | 12,812,461 | $ | 12,966,374 | |||||||||||||||
-1 | The activities related to the Bank's equity interest in CPG/GS are presented as an Other non-interest loss and as Other | ||||||||||||||||||||
average earning assets in the table above. | |||||||||||||||||||||
-2 | Expenses pertaining to corporate administrative functions that support the operating segments but are not specifically | ||||||||||||||||||||
attributable to or managed by any segment are not included in the reported financial results of the operating segments. | |||||||||||||||||||||
The unallocated corporate expenses include certain general and administrative expenses and related depreciation and | |||||||||||||||||||||
amortization expenses. | |||||||||||||||||||||
Schedule of revenues and selected balance sheet data by geography [Table Text Block] | The following table presents revenues (interest income plus non-interest income) and selected balance sheet data by geography based on the location in which the transaction is originated: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Revenues: | |||||||||||||||||||||
Puerto Rico | $ | 588,744 | $ | 533,302 | $ | 579,949 | |||||||||||||||
United States | 58,979 | 47,551 | 51,271 | ||||||||||||||||||
Virgin Islands | 47,574 | 49,446 | 55,948 | ||||||||||||||||||
Total consolidated revenues | $ | 695,297 | $ | 630,299 | $ | 687,168 | |||||||||||||||
Selected Balance Sheet Information: | |||||||||||||||||||||
Total assets: | |||||||||||||||||||||
Puerto Rico | $ | 10,969,305 | $ | 10,993,743 | $ | 11,421,073 | |||||||||||||||
United States | 1,072,962 | 940,590 | 913,831 | ||||||||||||||||||
Virgin Islands | 685,568 | 722,592 | 764,837 | ||||||||||||||||||
Loans: | |||||||||||||||||||||
Puerto Rico | $ | 7,706,866 | $ | 8,173,873 | $ | 8,706,428 | |||||||||||||||
United States | 982,713 | 865,414 | 714,234 | ||||||||||||||||||
Virgin Islands | 649,813 | 672,852 | 718,846 | ||||||||||||||||||
Deposits: | |||||||||||||||||||||
Puerto Rico (1) | $ | 6,687,844 | $ | 7,053,053 | $ | 7,004,301 | |||||||||||||||
United States | 1,836,430 | 1,895,394 | 1,921,066 | ||||||||||||||||||
Virgin Islands | 959,671 | 931,477 | 939,179 | ||||||||||||||||||
-1 | For 2014, 2013, and 2012, includes $2.9 billion, $3.1 billion, and $3.4 billion, respectively, of brokered CDs allocated to Puerto Rico operations. |
FIRST_BANCORP_Holding_Company_1
FIRST BANCORP. (Holding Company Only) Financial Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Statements of Financial Condition [Table Text Block] | Statements of Financial Condition | ||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Assets | |||||||||
Cash and due from banks | $ | 30,380 | $ | 31,957 | |||||
Money market investments | 6,111 | 6,111 | |||||||
Investment securities available for sale, at market: | |||||||||
Equity investments | - | 33 | |||||||
Other investment securities | 285 | 285 | |||||||
Loans held for investment, net | 322 | 356 | |||||||
Investment in First Bank Puerto Rico, at equity | 1,866,090 | 1,403,612 | |||||||
Investment in First Bank Insurance Agency, at equity | 11,890 | 9,834 | |||||||
Investment in FBP Statutory Trust I | 3,093 | 3,093 | |||||||
Investment in FBP Statutory Trust II | 3,866 | 3,866 | |||||||
Other assets | 4,357 | 4,101 | |||||||
Total assets | $ | 1,926,394 | $ | 1,463,248 | |||||
Liabilities and Stockholders' Equity | |||||||||
Liabilities: | |||||||||
Other borrowings | $ | 231,959 | $ | 231,959 | |||||
Accounts payable and other liabilities | 22,692 | 15,431 | |||||||
Total liabilities | 254,651 | 247,390 | |||||||
Stockholders' equity | 1,671,743 | 1,215,858 | |||||||
Total liabilities and stockholders' equity | $ | 1,926,394 | $ | 1,463,248 | |||||
Statements of Loss [Table Text Block] | Statements of Income (Loss) | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
(In thousands) | |||||||||
Income | |||||||||
Interest income on money market investments | $ | 20 | $ | 22 | $ | 17 | |||
Interest income on other investments | - | - | 6 | ||||||
Other income | 220 | 88 | 220 | ||||||
240 | 110 | 243 | |||||||
Expense | |||||||||
Notes payable and other borrowings | 7,199 | 7,092 | 7,342 | ||||||
Other operating expenses | 2,614 | 5,813 | 3,398 | ||||||
9,813 | 12,905 | 10,740 | |||||||
Loss on sale and impairment on equity securities | -29 | -42 | - | ||||||
Loss before income taxes and equity in undistributed earnings | |||||||||
(losses) of subsidiaries | -9,602 | -12,837 | -10,497 | ||||||
Equity in undistributed earnings (losses) of subsidiaries | 401,889 | -151,650 | 40,279 | ||||||
Net Income (loss) | 392,287 | -164,487 | 29,782 | ||||||
Other comprehensive income (loss) , net of tax | 60,385 | -107,168 | 9,234 | ||||||
Comprehensive income (loss) | $ | 452,672 | $ | -271,655 | $ | 39,016 | |||
Statements of Cash Flow of holding company [Table Text Block] | Statements of Cash Flows | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
(In thousands) | |||||||||
Cash flows from operating activities: | |||||||||
Net income (loss) | $ | 392,287 | $ | -164,487 | $ | 29,782 | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||
Stock-based compensation | 1,962 | 1,471 | 155 | ||||||
Equity in undistributed (earnings) losses of subsidiaries | -401,889 | 151,650 | -40,279 | ||||||
Loss on sales/impairment of investment securities | 29 | 186 | - | ||||||
Accretion of discount on loans | -3 | - | - | ||||||
Net (increase) decrease in other assets | -260 | 774 | -1,403 | ||||||
Net increase in other liabilities | 7,261 | 7,146 | 7,166 | ||||||
Net cash used in operating activities | -613 | -3,260 | -4,579 | ||||||
Cash flows from investing activities: | |||||||||
Principal collected on loans | 38 | - | - | ||||||
Proceeds from sales of available-for-sale securities | 6 | - | - | ||||||
Proceeds from sale/redemption of other investment securities | - | 533 | - | ||||||
Net cash provided by investing activities | 44 | 533 | - | ||||||
Cash flows from financing activities: | |||||||||
Proceeds from common stock issued, net of costs | - | - | 1,037 | ||||||
Repurchase of common stock | -946 | -455 | - | ||||||
Issuance costs of common stock issued in exchange for preferred | |||||||||
stock Series A through E | -62 | - | - | ||||||
Net cash (used in) provided by financing activities | -1,008 | -455 | 1,037 | ||||||
Net decrease in cash and cash equivalents | -1,577 | -3,182 | -3,542 | ||||||
Cash and cash equivalents at beginning of the year | 38,068 | 41,250 | 44,792 | ||||||
Cash and cash equivalents at end of year | $ | 36,491 | $ | 38,068 | $ | 41,250 | |||
Cash and cash equivalents include: | |||||||||
Cash and due from banks | $ | 30,380 | $ | 31,957 | $ | 35,139 | |||
Money market instruments | 6,111 | 6,111 | 6,111 | ||||||
$ | 36,491 | $ | 38,068 | $ | 41,250 | ||||
BASIS_OF_PRESENTATION_AND_SIGN1
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | 30-May-12 | 31-May-14 | Feb. 16, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
subsidiaries | ||||||
Disclosure Basisof Presentationand Significant Accounting Policies Additional Information [Abstract] | ||||||
Purchased credit cards portfolio | $406 | |||||
Statement [Line Items] | ||||||
Subordinated interest in CPS/GS by Bank | 35.00% | |||||
Materiality threshold for Rule 3-09 | 20.00% | |||||
Financing receivable, individually evaluated for impairment | 1 | |||||
Loan Value Deliquency Threshold To Be Valued At Fair Value Percent | 60.00% | |||||
Fair value of loans purchased | 353.2 | |||||
Discount onf loans purchased | 18.2 | |||||
Discount rate used for calculation of mortgage servicing rights value | 14.50% | 14.50% | ||||
Impairment of Intangible Assets (Excluding Goodwill) | 24.5 | |||||
Rewards liability | 9 | 8.1 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Forefeited | 58,985 | |||||
Nature Of Business [Line Items] | ||||||
Period For Other Than Temporary Impairment | 1 year 0 months 0 days | |||||
Guaranteed Loans Past Due | 0 years 2 months 29 days | |||||
Period Of Residential Mortgage Loan That Are No Longer Accruing Interest | 1 year 6 months 0 days | 1 year 6 months 0 days | ||||
Loans Considered To Be Defaulted If Borrower Has Failed To Make Payment For Period Or More Than Period | 0 years 2 months 29 days | 0 years 2 months 29 days | ||||
Loans Past Due | 0 years 0 months 30 days | |||||
Resdiential Mortgage Loans Charge Off | 0 years 5 months 27 days | |||||
Rule 1-02(w) | 50.00% | |||||
Changes In Allowance For Loan Losses | -4.8 | |||||
Modified Repurchase Agreements Threshold | 10.00% | |||||
Investment In Subsidiaries Other Real Estate Owned | 2 | |||||
Wholy Owned Investments Subsidiaries | 2 | |||||
Base Rate Historical Charge Offs Period | 1 year 0 months 0 days | |||||
Cummulative Charge Offs Period | 2 years 0 months 0 days | |||||
Troubled Debt Restructurings Sustained Performance Period | 0 years 6 months 0 days | |||||
Open End Loans [Member] | ||||||
Nature Of Business [Line Items] | ||||||
Consumer Loans Charge Off | 0 years 5 months 27 days | |||||
Consumer Auto Loans And Finance Leases [Member] | ||||||
Nature Of Business [Line Items] | ||||||
Consumer Loans Reserved | 0 years 3 months 28 days | |||||
Consumer Loans Charge Off | 1 year 0 months 0 days | |||||
Puerto Rico [Member] | ||||||
Nature Of Business [Line Items] | ||||||
Offices | 44 | |||||
Virgin Islands [Member] | ||||||
Nature Of Business [Line Items] | ||||||
Offices | 12 | |||||
United States [Member] | ||||||
Nature Of Business [Line Items] | ||||||
Offices | 10 | |||||
Subsidiaries [Member] | ||||||
Nature Of Business [Line Items] | ||||||
Offices | 6 | |||||
First Express Subsidiary [Member] | ||||||
Nature Of Business [Line Items] | ||||||
Offices | 2 | |||||
Money Express Subsidiary [Member] | ||||||
Nature Of Business [Line Items] | ||||||
Offices | 27 | |||||
Cpg Gs [Member] | ||||||
Statement [Line Items] | ||||||
Sale of loans to CPG/GS | 269.3 |
RESTRICTIONS_ON_CASH_AND_DUE_F1
RESTRICTIONS ON CASH AND DUE FROM BANKS (Narratives) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Average Weekly Demand Deposit Reserve | $124,800,000 | $101,100,000 |
Time deposits, which were considered restricted assets | $300,000 |
MONEY_MARKET_INVESTMENTS_Detai
MONEY MARKET INVESTMENTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Money Market Investments [Abstract] | |||
Time deposits with other financial institutions | $300 | $300 | |
Other short-term investments | 16,661 | 201,069 | |
Money Market Funds At Carrying Value | $16,961 | $201,369 | $216,835 |
Weighted average interest rate, time deposits | 0.18% | 0.20% | |
Weighted average interest rate, other short term investments | 0.15% | 0.34% |
MONEY_MARKET_INVESTMENTS_Addit
MONEY MARKET INVESTMENTS - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Money Market Investments [Abstract] | ||
Cash pledged as collateral | $200 | $200 |
INVESTMENT_SECURITIES_Investme
INVESTMENT SECURITIES - Investment Securities (Narratives) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Available For Sale Securities [Line Items] | |||
Proceeds From Sale Of Available For Sale Securities | $4,861 | $0 | $1,878 |
Gain Loss On Sale Of Securities Net | -262 | 42 | -36 |
Equity Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Gain Loss On Sale Of Securities Net | $29 |
INVESTMENT_SECURITIES_Investme1
INVESTMENT SECURITIES - Investment Securities Available for Sale (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $1,976,261 | $2,049,262 | |
Non credit loss component of OTTI recorded in OCI | 12,141 | 14,310 | |
Unrealized gain on available-for-sale securities, net | 31,951 | 22,125 | |
Gross unrealized gains losses | 30,405 | 78,795 | |
Total investment securities available for sale | 1,965,666 | 1,978,282 | |
Weighted average yield | 2.49% | 2.57% | |
United States And Puerto Rico Government Obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 407,832 | 342,777 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 290 | 1 | |
Gross unrealized gains losses | 24,286 | 34,454 | |
Total investment securities available for sale | 383,836 | 308,324 | |
Weighted average yield | 1.86% | 1.96% | |
Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 1,568,429 | 1,706,450 | |
Non credit loss component of OTTI recorded in OCI | 12,141 | 14,310 | |
Unrealized gain on available-for-sale securities, net | 31,661 | 22,124 | |
Gross unrealized gains losses | 6,119 | 44,339 | |
Total investment securities available for sale | 1,581,830 | 1,669,925 | |
Weighted average yield | 2.66% | 2.69% | |
Government National Mortgage Association Certificates And Obligations G N M A [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 355,989 | 426,475 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 21,459 | 18,533 | |
Gross unrealized gains losses | 0 | 0 | |
Total investment securities available for sale | 377,448 | 445,008 | |
Weighted average yield | 3.83% | 3.82% | |
Federal National Mortgage Association Certificates And Obligations F N M A [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 851,341 | 891,952 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 8,458 | 3,457 | |
Gross unrealized gains losses | 4,859 | 33,626 | |
Total investment securities available for sale | 854,940 | 861,783 | |
Weighted average yield | 2.37% | 2.38% | |
Mortgage Backed Securities Issued By Private Enterprises [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 45,788 | 55,175 | |
Non credit loss component of OTTI recorded in OCI | 12,141 | 14,310 | |
Unrealized gain on available-for-sale securities, net | 1 | 1 | |
Gross unrealized gains losses | 0 | 0 | |
Total investment securities available for sale | 33,648 | 40,866 | |
Weighted average yield | 2.17% | 2.24% | |
Due Within One Year [Member] | U S Treasury Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 7,498 | 7,498 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 1 | 1 | |
Gross unrealized gains losses | 0 | 0 | |
Total investment securities available for sale | 7,499 | 7,499 | |
Weighted average yield | 0.11% | 0.12% | |
Due Within One Year [Member] | Puerto Rico Government Obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 10,000 | ||
Non credit loss component of OTTI recorded in OCI | 0 | ||
Unrealized gain on available-for-sale securities, net | 0 | ||
Gross unrealized gains losses | 210 | ||
Total investment securities available for sale | 9,790 | ||
Weighted average yield | 3.50% | ||
After One To Five Years [Member] | US Government Sponsored Enterprises Debt Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 260,889 | 50,000 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 42 | 0 | |
Gross unrealized gains losses | 4,219 | 1,408 | |
Total investment securities available for sale | 256,712 | 48,592 | |
Weighted average yield | 1.22% | 1.05% | |
After One To Five Years [Member] | Puerto Rico Government Obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 39,827 | ||
Non credit loss component of OTTI recorded in OCI | 0 | ||
Unrealized gain on available-for-sale securities, net | 0 | 0 | |
Gross unrealized gains losses | 12,419 | ||
Total investment securities available for sale | 27,408 | ||
Weighted average yield | 4.49% | ||
After One To Five Years [Member] | Government National Mortgage Association Certificates And Obligations G N M A [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 39 | 86 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 1 | 4 | |
Gross unrealized gains losses | 0 | 0 | |
Total investment securities available for sale | 40 | 90 | |
Weighted average yield | 3.26% | 3.48% | |
After One To Five Years [Member] | Federal National Mortgage Association Certificates And Obligations F N M A [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 4,160 | 1,389 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 181 | 84 | |
Gross unrealized gains losses | 0 | 0 | |
Total investment securities available for sale | 4,341 | 1,473 | |
Weighted average yield | 3.40% | 4.82% | |
After One To Five Years [Member] | Collateralized Mortgage Obligations [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 82 | ||
Non credit loss component of OTTI recorded in OCI | 0 | ||
Unrealized gain on available-for-sale securities, net | 0 | ||
Gross unrealized gains losses | 1 | ||
Total investment securities available for sale | 81 | ||
Weighted average yield | 3.01% | ||
After Five To Ten Years [Member] | US Government Sponsored Enterprises Debt Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 78,234 | 214,271 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 246 | 0 | |
Gross unrealized gains losses | 2,077 | 13,368 | |
Total investment securities available for sale | 76,403 | 200,903 | |
Weighted average yield | 1.72% | 1.31% | |
After Five To Ten Years [Member] | Puerto Rico Government Obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 886 | 40,699 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 1 | ||
Gross unrealized gains losses | 0 | 12,962 | |
Total investment securities available for sale | 887 | 27,737 | |
Weighted average yield | 5.20% | 4.51% | |
After Five To Ten Years [Member] | Government National Mortgage Association Certificates And Obligations G N M A [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 17,108 | 800 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 501 | 37 | |
Gross unrealized gains losses | 0 | 0 | |
Total investment securities available for sale | 17,609 | 837 | |
Weighted average yield | 3.65% | 2.47% | |
After Five To Ten Years [Member] | Federal National Mortgage Association Certificates And Obligations F N M A [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 9,584 | 7,765 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 521 | 389 | |
Gross unrealized gains losses | 5 | 0 | |
Total investment securities available for sale | 10,100 | 8,154 | |
Weighted average yield | 3.49% | 4.09% | |
After Five To Ten Years [Member] | Mortgage Backed Securities Issued By Private Enterprises [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 111 | 127 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 1 | 1 | |
Gross unrealized gains losses | 0 | 0 | |
Total investment securities available for sale | 112 | 128 | |
Weighted average yield | 7.27% | 7.27% | |
After Ten Years [Member] | Puerto Rico Government Obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 20,498 | 20,309 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 0 | 0 | |
Gross unrealized gains losses | 5,571 | 6,506 | |
Total investment securities available for sale | 14,927 | 13,803 | |
Weighted average yield | 5.83% | 5.82% | |
After Ten Years [Member] | Federal Home Loan Mortgage Corporation Certificates And Obligations F H L M C [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 315,311 | 332,766 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 1,743 | 133 | |
Gross unrealized gains losses | 1,260 | 10,712 | |
Total investment securities available for sale | 315,794 | 322,187 | |
Weighted average yield | 2.17% | 2.16% | |
After Ten Years [Member] | Government National Mortgage Association Certificates And Obligations G N M A [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 338,842 | 425,589 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 20,957 | 18,492 | |
Gross unrealized gains losses | 0 | 0 | |
Total investment securities available for sale | 359,799 | 444,081 | |
Weighted average yield | 3.83% | 3.82% | |
After Ten Years [Member] | Federal National Mortgage Association Certificates And Obligations F N M A [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 837,597 | 882,798 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities, net | 7,756 | 2,984 | |
Gross unrealized gains losses | 4,854 | 33,626 | |
Total investment securities available for sale | 840,499 | 852,156 | |
Weighted average yield | 2.36% | 2.36% | |
After Ten Years [Member] | Mortgage Backed Securities Issued By Private Enterprises [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 45,677 | 55,048 | |
Non credit loss component of OTTI recorded in OCI | 12,141 | 14,310 | |
Unrealized gain on available-for-sale securities, net | 0 | 0 | |
Gross unrealized gains losses | 0 | 0 | |
Total investment securities available for sale | 33,536 | 40,738 | |
Weighted average yield | 2.17% | 2.24% | |
Equity Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 35 | [1] | |
Non credit loss component of OTTI recorded in OCI | 0 | [1] | |
Unrealized gain on available-for-sale securities, net | 0 | [1] | |
Gross unrealized gains losses | 2 | [1] | |
Total investment securities available for sale | $33 | [1] | |
Equity Securities [Member] | Corporate Bond Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Weighted average yield | 0.00% | [1] | |
[1] | B Represents common shares of another financial institution in Puerto Rico. |
INVESTMENT_SECURITIES_Aggregat
INVESTMENT SECURITIES - Aggregate amortized cost and approximate market value of investment securities available for sale (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Within 1 year, Amortized cost | $7,498 | |
After 1 to 5 years, Amortized cost | 304,915 | |
After 5 to 10 years, Amortized cost | 105,923 | |
After 10 years, Amortized cost | 1,557,925 | |
Total investment securities available for sale, Amortized cost | 1,976,261 | |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Within 1 year, Fair Value | 7,499 | |
After 1 to 5 years, Fair Value | 288,501 | |
After 5 to 10 years, Fair Value | 105,111 | |
After 10 years, Fair Value | 1,564,555 | |
Total investment securities available for sale | $1,965,666 | $1,978,282 |
INVESTMENT_SECURITIES_Addition
INVESTMENT SECURITIES - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
minimumcreditscore | |||
Schedule Of Investments [Line Items] | |||
Proceeds from sale of available-for-sale securities | $4,861,000 | $0 | $1,878,000 |
Gain Loss On Sale Of Investments | 262,000 | 0 | 0 |
Percentage Of Debt Securities Government And Government Sponsored Agencies | 10.00% | ||
Minimum Credit Score | 700 | ||
Maximum loan to value ratio | 80.00% | ||
Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities | 233,046,000 | 330,336,000 | 1,203,101,000 |
Fair Value | 1,965,666,000 | 1,978,282,000 | |
Amortized cost | 1,976,261,000 | ||
Unrealized losses | 30,405,000 | 78,795,000 | |
Weighted average yield | 2.49% | 2.57% | |
Net gain on sale of investments | 262,000 | -42,000 | 36,000 |
U S Treasury Securities [Member] | |||
Schedule Of Investments [Line Items] | |||
Percentage Of Debt Securities Government And Government Sponsored Agencies | 96.00% | ||
Mortgage Backed Securities Issued By Private Enterprises [Member] | |||
Schedule Of Investments [Line Items] | |||
Amortized cost of private label of mortgage backed security | 45,700,000 | ||
Puerto Rico Government obligations [Member] | |||
Schedule Of Investments [Line Items] | |||
Fair Value | 43,200,000 | ||
Amortized cost | 61,200,000 | ||
Increase in Fair Value | 1,700,000 | ||
Net gain on sale of investments | 300,000 | ||
Equity Securities [Member] | |||
Schedule Of Investments [Line Items] | |||
Net gain on sale of investments | ($29,000) |
INVESTMENT_SECURITIES_Availabl
INVESTMENT SECURITIES - Available-For-Sale Investments' Fair Value And Gross Unrealized Losses (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | $48,474 | $1,232,981 |
Unrealized Losses Less than 12 months | 79 | 59,230 |
Fair Value 12 months or more | 1,010,786 | 143,119 |
Unrealized Losses 12 months or more | 42,467 | 33,875 |
Total Fair Value | 1,059,260 | 1,376,100 |
Total Unrealized Losses | 42,546 | 93,105 |
Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 33 | |
Unrealized Losses Less than 12 months | 2 | |
Fair Value 12 months or more | 0 | |
Unrealized Losses 12 months or more | 0 | |
Total Fair Value | 33 | |
Total Unrealized Losses | 2 | |
Debt Securities [Member] | Puerto Rico Government Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 0 | 23,156 |
Unrealized Losses Less than 12 months | 0 | 5,977 |
Fair Value 12 months or more | 42,335 | 28,174 |
Unrealized Losses 12 months or more | 17,990 | 13,701 |
Total Fair Value | 42,335 | 51,330 |
Total Unrealized Losses | 17,990 | 19,678 |
Debt Securities [Member] | US States And Political Subdivisions [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 46,436 | 175,369 |
Unrealized Losses Less than 12 months | 74 | 8,913 |
Fair Value 12 months or more | 257,996 | 74,126 |
Unrealized Losses 12 months or more | 6,222 | 5,863 |
Total Fair Value | 304,432 | 249,495 |
Total Unrealized Losses | 6,296 | 14,776 |
Mortgage Backed Securities [Member] | Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 0 | |
Unrealized Losses Less than 12 months | 0 | |
Fair Value 12 months or more | 81 | |
Unrealized Losses 12 months or more | 1 | |
Total Fair Value | 81 | |
Total Unrealized Losses | 1 | |
Mortgage Backed Securities [Member] | Mortgage Backed Securities Issued By Private Enterprises [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 0 | 0 |
Unrealized Losses Less than 12 months | 0 | 0 |
Fair Value 12 months or more | 33,536 | 40,738 |
Unrealized Losses 12 months or more | 12,141 | 14,310 |
Total Fair Value | 33,536 | 40,738 |
Total Unrealized Losses | 12,141 | 14,310 |
Mortgage Backed Securities [Member] | Federal National Mortgage Association Certificates And Obligations F N M A [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 2,038 | 748,215 |
Unrealized Losses Less than 12 months | 5 | 33,626 |
Fair Value 12 months or more | 541,642 | 0 |
Unrealized Losses 12 months or more | 4,854 | 0 |
Total Fair Value | 543,680 | 748,215 |
Total Unrealized Losses | 4,859 | 33,626 |
Mortgage Backed Securities [Member] | Federal Home Loan Mortgage Corporation Certificates And Obligations F H L M C [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 0 | 286,208 |
Unrealized Losses Less than 12 months | 0 | 10,712 |
Fair Value 12 months or more | 135,277 | 0 |
Unrealized Losses 12 months or more | 1,260 | 0 |
Total Fair Value | 135,277 | 286,208 |
Total Unrealized Losses | $1,260 | $10,712 |
INVESTMENT_SECURITIES_OTTI_Los
INVESTMENT SECURITIES - OTTI Losses on Available-for-Sale Debt Securities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Available For Sale Securities [Line Items] | |||
Total other-than-temporary impairment losses | $0 | $0 | $0 |
Net impairment losses recognized in earnings | 388 | 117 | 2,002 |
Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Portion of loss previously recognized in other comprehensive income | -388 | -117 | |
Net impairment losses recognized in earnings | $388 | $117 |
INVESTMENT_SECURITIES_RollForw
INVESTMENT SECURITIES - Roll-Forward of Credit Losses on Debt Securities Held by Corporation (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items] | ||
Credit losses at beginning of the period | $5,389 | $5,272 |
Additions: | ||
Credit losses on debt securities for which an OTTI was previously recognized | 388 | 117 |
Ending balance of credit losses | $5,777 | $5,389 |
INVESTMENT_SECURITIES_Signific
INVESTMENT SECURITIES - Significant Assumptions in Valuation of Private Label MBS (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Investments [Line Items] | ||
Fair Value Inputs Discount Rate | 14.50% | 14.50% |
Fair Value Inputs Prepayment Rate | 32.00% | 28.89% |
Weighted Average, Projected Cumulative Loss Rate | 7.90% | 6.80% |
Minimum [Member] | ||
Schedule Of Investments [Line Items] | ||
Fair Value Inputs Prepayment Rate | 19.89% | 15.86% |
Weighted Average, Projected Cumulative Loss Rate | 0.64% | 0.58% |
Maximum [Member] | ||
Schedule Of Investments [Line Items] | ||
Fair Value Inputs Prepayment Rate | 100.00% | 100.00% |
Weighted Average, Projected Cumulative Loss Rate | 80.00% | 38.16% |
INVESTMENT_SECURITIES_Aggregat1
INVESTMENT SECURITIES - Aggregate amortized cost and market value of the securities by issuers (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Federal Home Loan Mortgage Corporation Certificates And Obligations F H L M C [Member] | ||
Schedule Of Available-For-Sale And Held-To-Maturity Securities [Line Items] | ||
Amortized Cost | $340,227 | $332,848 |
Fair Value | 340,723 | 322,268 |
Government National Mortgage Association Certificates And Obligations G N M A [Member] | ||
Schedule Of Available-For-Sale And Held-To-Maturity Securities [Line Items] | ||
Amortized Cost | 355,989 | 426,475 |
Fair Value | 377,448 | 445,008 |
Federal National Mortgage Association Certificates And Obligations F N M A [Member] | ||
Schedule Of Available-For-Sale And Held-To-Maturity Securities [Line Items] | ||
Amortized Cost | 922,883 | 891,952 |
Fair Value | 926,189 | 861,783 |
FHLB [Member] | ||
Schedule Of Available-For-Sale And Held-To-Maturity Securities [Line Items] | ||
Amortized Cost | 232,733 | 264,271 |
Fair Value | $227,003 | $249,495 |
OTHER_EQUITY_SECURITIES_Additi
OTHER EQUITY SECURITIES - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Other Assets [Line Items] | |||
Capital stock par value | $100 | ||
Book value of investment in FHLB stock | $25,500,000 | $28,400,000 | |
Dividend income from FHLB stock | 1,200,000 | 1,400,000 | 1,400,000 |
Carrying value of other equity security | 300,000 | 300,000 | |
Gain Loss On Sale Of Securities Net | $262,000 | ($42,000) | $36,000 |
INTEREST_AND_DIVIDEND_ON_INVES2
INTEREST AND DIVIDEND ON INVESTMENTS- Interest on investments and FHLB dividend income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income And Expenses [Line Items] | |||
Mortgage-backed securities | $44,909 | $45,521 | $35,532 |
PR Government obligations, U.S. Treasury securities and U.S. Government agencies | 6,803 | 6,647 | 8,253 |
Total Intesrest income investment securities | 52,881 | 53,527 | 45,294 |
Interest on money market investments | 1,892 | 1,927 | 1,827 |
Total interest and dividends on investments | 54,773 | 55,454 | 47,121 |
Taxable [Member] | |||
Other Income And Expenses [Line Items] | |||
Mortgage-backed securities | 16,303 | 19,566 | 23,989 |
PR Government obligations, U.S. Treasury securities and U.S. Government agencies | 1,357 | 1,218 | 1,468 |
Other investment securities (including FHLB dividends) | 1,169 | 1,359 | 1,503 |
Interest on money market investments | 1,734 | 1,231 | 1,137 |
Taxable [Member] | Equity Securities [Member] | |||
Other Income And Expenses [Line Items] | |||
Equity Securities | 0 | 0 | 6 |
Exempt [Member] | |||
Other Income And Expenses [Line Items] | |||
Mortgage-backed securities | 28,606 | 25,955 | 11,543 |
PR Government obligations, U.S. Treasury securities and U.S. Government agencies | 5,446 | 5,429 | 6,785 |
Interest on money market investments | $158 | $696 | $690 |
INTEREST_AND_DIVIDEND_ON_INVES3
INTEREST AND DIVIDEND ON INVESTMENTS- Components of interest and dividend income on investments (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of interest and dividend income on investments [Abstract] | |||
Interest income on investment securities and money market investments | $53,604 | $54,095 | $45,694 |
Dividends on FHLB stock | 1,169 | 1,359 | 1,427 |
Total interest and dividends on investments | $54,773 | $55,454 | $47,121 |
LOAN_PORTFOLIO_Narratives_Deta
LOAN PORTFOLIO - Narratives (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts Notes And Loans Receivable [Line Items] | |||
Additional interest income that would have realized | $48.90 | $40.30 | $75.10 |
Mortgages pledged as collateral | 1,600 | 1,700 | |
Origination Fees [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans And Leases Receivable Deferred Income | 9.3 | 7.6 | |
Unearned Income [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans And Leases Receivable Deferred Income | 35.1 | 40.4 | |
Residential Mortgage [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Servicing of loans | 2,300 | 2,100 | |
Construction And Commercial Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Servicing of loans | 2.7 | 2.8 | |
Commercial loan [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Servicing of loans | $351.40 | $446 |
LOAN_PORTFOLIO_Loan_Portfolio_
LOAN PORTFOLIO - Loan Portfolio Held for Investment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Financial Information [Line Items] | ||||
Residential mortgage loans, mainly secured by first mortgages | $3,011,187 | [1],[2] | $2,549,008 | [1],[2] |
Commercial loans: | ||||
Construction loans | 123,480 | 168,713 | ||
Commercial mortgage loans | 1,665,787 | 1,823,608 | ||
Commercial and Industrial loans | 2,479,437 | [3] | 2,788,250 | [3] |
Loans to local financial institutions collateralized by real estate mortgages | 0 | [1] | 240,072 | [1] |
Commercial loans | 4,268,704 | 5,020,643 | ||
Finance leases | 232,126 | 245,323 | ||
Consumer loans | 1,750,419 | 1,821,196 | ||
Loans held for investment | 9,262,436 | 9,636,170 | ||
Less: allowance for loan and lease losses | -222,395 | -285,858 | ||
Loans held for investment, net | $9,040,041 | $9,350,312 | ||
[1] | On May 30, 2014, FirstBank acquired from Doral Financial Corporation ("Doral") mortgage loans, mainly residential mortgage loans, having an unpaid principal balance of $241.7 million (estimated fair value at acquisition of $226.0 million) in full satisfaction of secured borrowings with a book value of $232.9 million owed by Doral to FirstBank. Refer to "Acquired Loans including PCI Loans" below for additional information. | |||
[2] | On October 3, 2014, Firstbank purchased from Doral certain performing residential mortgage loans with approximately $192.6 million in outstanding unpaid principal balance. Refer to "Purchases and Sales of Loans" below for additional information. | |||
[3] | As of December 31, 2014 and 2013, includes $1.1 billion and $1.2 billion, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. |
LOAN_PORTFOLIO_Loan_Portfolio_1
LOAN PORTFOLIO - Loan Portfolio Held for Investment (Parenthetical) (Detail) (USD $) | 1 Months Ended | 3 Months Ended | |||
Jun. 21, 2013 | Mar. 28, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financial Information [Line Items] | |||||
Loans Transferred To Held For Sale | $181,600,000 | ||||
Classified And Non Performing Loans Sold | 203,800,000 | 211,400,000 | |||
CommercianLoansCollaterizedByRealEstate | $1,100,000,000 | $1,200,000,000 |
LOAN_PORTFOLIO_Loans_Held_for_
LOAN PORTFOLIO - Loans Held for Investment on Which Accrual of Interest Income had been Discontinued (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | $523,896 | [1],[2],[3] | $495,549 | [1],[2],[3] |
Residential Mortgage [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 180,707 | 161,441 | ||
Commercial Mortgage [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 148,473 | 120,107 | ||
Commercial And Industrial [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 122,547 | 114,833 | ||
Consumer Auto Loans [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 22,276 | 21,316 | ||
Finance Leases [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 5,245 | 3,082 | ||
Consumer Loan [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 15,294 | 15,904 | ||
Commercial Construction [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 0 | 3,924 | ||
Residential Construction [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 14,324 | 27,108 | ||
Land Construction [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | $15,030 | $27,834 | ||
[1] | B As of December 31, 2014 and 2013, excludes $54.6 million and $54.8 million, respectively, of non-performing loans B held for sale. | |||
[2] | B Amount excludes PCI loans with a carrying value of approximately $102.6 million and $4.8 million as of December 31, B 2014 and 2013, respectively, primarily mortgage loans acquired from Doral in the second quarter of 2014, as further B discussed below. These loans are not considered non-performing due to the application of the accretion method, B under which these loans will accrete interest income over the remaining life of the loans using an estimated cash B flow analysis. | |||
[3] | B Non-performing loans exclude $494.6 million and $425.4 million of TDR loans that are in compliance with the modified B terms and in accrual status as of December 31, 2014 and 2013, respectively. |
LOAN_PORTFOLIO_Loans_Held_for_1
LOAN PORTFOLIO - Loans Held for Investment on Which Accrual of Interest Income had been Discontinued (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | 30-May-12 |
Accounts Notes And Loans Receivable [Line Items] | |||
Purchased credit impaired loans, fair value | $15,700,000 | ||
Loans held for sale | 76,956,000 | 75,969,000 | |
Nonperforming Financing Receivable [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans held for sale | $54,600,000 | $54,800,000 |
LOAN_PORTFOLIO_Corporations_Ag
LOAN PORTFOLIO - Corporation's Aging of Loans Held for Investment Portfolio (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
30-59 Days Past Due | $118,154 | $122,293 | ||
60-89 Days, Past Due | 139,659 | 142,489 | ||
90 days or more, Past Due | 671,122 | [1] | 615,631 | [2] |
Total Past Due | 928,935 | 880,413 | ||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 102,604 | 4,791 | ||
Financing Receivable, Current | 8,230,897 | 8,750,966 | ||
Loans held for investment | 9,262,436 | 9,636,170 | ||
90 days past due and still accruing | 147,226 | [3] | 120,082 | [4] |
Fha Va And Other Government Guaranteed Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
30-59 Days Past Due | 0 | [3],[5],[6] | 0 | [4],[7] |
60-89 Days, Past Due | 9,733 | [3],[5],[6] | 12,180 | [4],[7] |
90 days or more, Past Due | 81,055 | [1],[3],[5],[6] | 78,645 | [2],[4],[7] |
Total Past Due | 90,788 | [3],[5],[6] | 90,825 | [4],[7] |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 0 | [3],[5],[6] | 0 | [4],[7] |
Financing Receivable, Current | 62,782 | [3],[5],[6] | 104,401 | [4],[7] |
Loans held for investment | 153,570 | [3],[5],[6] | 195,226 | [4],[7] |
90 days past due and still accruing | 81,055 | [3],[5],[6] | 78,645 | [4],[7] |
Residential Mortgage [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
30-59 Days Past Due | 0 | [5] | 0 | [7],[8] |
60-89 Days, Past Due | 78,336 | [5] | 88,898 | [7],[8] |
90 days or more, Past Due | 199,078 | [1],[5] | 172,286 | [2],[7],[8] |
Total Past Due | 277,414 | [5] | 261,184 | [7],[8] |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 98,494 | [5] | 0 | [7],[8] |
Financing Receivable, Current | 2,481,709 | [5] | 2,092,598 | [7],[8] |
Loans held for investment | 2,857,617 | [5] | 2,353,782 | [7],[8] |
90 days past due and still accruing | 18,371 | [3],[5] | 10,845 | [4],[7],[8] |
Commercial And Industrial [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
30-59 Days Past Due | 22,217 | 21,029 | ||
60-89 Days, Past Due | 7,445 | 5,454 | ||
90 days or more, Past Due | 143,928 | [1] | 134,233 | [2] |
Total Past Due | 173,590 | 160,716 | ||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 0 | 0 | ||
Financing Receivable, Current | 2,305,847 | 2,867,606 | ||
Loans held for investment | 2,479,437 | 3,028,322 | ||
90 days past due and still accruing | 21,381 | [3] | 19,400 | [4] |
Commercial Mortgage Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
30-59 Days Past Due | 0 | [5] | 0 | [7] |
60-89 Days, Past Due | 15,482 | [5] | 5,428 | [7] |
90 days or more, Past Due | 171,281 | [1],[5] | 126,674 | [2],[7] |
Total Past Due | 186,763 | [5] | 132,102 | [7] |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 3,393 | [5] | 0 | [7] |
Financing Receivable, Current | 1,475,631 | [5] | 1,691,506 | [7] |
Loans held for investment | 1,665,787 | [5] | 1,823,608 | [7] |
90 days past due and still accruing | 22,808 | [3],[5] | 6,567 | [4],[7] |
Consumer Auto Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
30-59 Days Past Due | 77,385 | 79,279 | ||
60-89 Days, Past Due | 19,665 | 17,944 | ||
90 days or more, Past Due | 22,276 | [1] | 21,316 | [2] |
Total Past Due | 119,326 | 118,539 | ||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 0 | 0 | ||
Financing Receivable, Current | 941,456 | 993,781 | ||
Loans held for investment | 1,060,782 | 1,112,320 | ||
90 days past due and still accruing | 0 | [3] | 0 | [4] |
Finance Leases [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
30-59 Days Past Due | 8,751 | 10,275 | ||
60-89 Days, Past Due | 2,734 | 3,536 | ||
90 days or more, Past Due | 5,245 | [1] | 3,082 | [2] |
Total Past Due | 16,730 | 16,893 | ||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 0 | 0 | ||
Financing Receivable, Current | 215,396 | 228,430 | ||
Loans held for investment | 232,126 | 245,323 | ||
90 days past due and still accruing | 0 | [3] | 0 | [4] |
Consumer Loan [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
30-59 Days Past Due | 9,801 | 11,710 | ||
60-89 Days, Past Due | 6,054 | 8,691 | ||
90 days or more, Past Due | 18,671 | [1] | 20,492 | [2] |
Total Past Due | 34,526 | 40,893 | ||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 717 | 4,791 | ||
Financing Receivable, Current | 654,394 | 663,192 | ||
Loans held for investment | 689,637 | 708,876 | ||
90 days past due and still accruing | 3,377 | [3] | 4,588 | [4] |
Commercial Construction [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
30-59 Days Past Due | 0 | 0 | ||
60-89 Days, Past Due | 0 | 0 | ||
90 days or more, Past Due | 0 | [1] | 3,924 | [2] |
Total Past Due | 0 | 3,924 | ||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 0 | 0 | ||
Financing Receivable, Current | 24,562 | 12,907 | ||
Loans held for investment | 24,562 | 16,831 | ||
90 days past due and still accruing | 0 | [3] | 0 | [4] |
Residential Construction [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
30-59 Days Past Due | 0 | [5] | 0 | [7] |
60-89 Days, Past Due | 0 | [5] | 0 | [7] |
90 days or more, Past Due | 14,324 | [1],[5] | 27,108 | [2],[7] |
Total Past Due | 14,324 | [5] | 27,108 | [7] |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 0 | [5] | 0 | [7] |
Financing Receivable, Current | 28,673 | [5] | 44,400 | [7] |
Loans held for investment | 42,997 | [5] | 71,508 | [7] |
90 days past due and still accruing | 0 | [3],[5] | 0 | [4],[7] |
Land Construction [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
30-59 Days Past Due | 0 | [5] | 0 | [7] |
60-89 Days, Past Due | 210 | [5] | 358 | [7] |
90 days or more, Past Due | 15,264 | [1],[5] | 27,871 | [2],[7] |
Total Past Due | 15,474 | [5] | 28,229 | [7] |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 0 | [5] | 0 | [7] |
Financing Receivable, Current | 40,447 | [5] | 52,145 | [7] |
Loans held for investment | 55,921 | [5] | 80,374 | [7] |
90 days past due and still accruing | $234 | [3],[5] | $37 | [4],[7] |
[1] | Includes non-performing loans and accruing loans that are contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue B to accrue finance charges and fees until charged-off at 180 days. | |||
[2] | Includes non-performing loans and accruing loans that are contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days. | |||
[3] | B It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as past-due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. These balances include $40.4 million of residential mortgage loans insured by the FHA or guaranteed by the VA B that are over 18 months delinquent, and are no longer accruing interest as of December 31, 2014. | |||
[4] | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as past-due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. These balances include $37.0 million of residential mortgage loans insured by the FHA or guaranteed by the VAB that are over 18 months delinquent, and are no longer accruing interest as of December 31, 2013. | |||
[5] | B According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies B (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two B or more monthly payments. FHA/VA government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, land loans, and construction-residential loans pastB due 30-59 days as of December 31, 2014 amounted to $14.0 million, $189.1 million, $20.8 million, $0.8 million, and $1.0 million, respectively. | |||
[6] | B As of December 31, 2014, includes $9.3 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) B to repurchase the defaulted loans. | |||
[7] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies B (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two B or more monthly payments. FHA/VA government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, land loans, and construction-residential loans B past-due 30-59 days amounted to $23.9 million, $166.7 million, $18.4 million, $0.9 million, and $2.5 million, respectively. | |||
[8] | B As of December 31, 2013, includes $11.5 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) B to repurchase the defaulted loans. |
LOAN_PORTFOLIO_Corporations_Ag1
LOAN PORTFOLIO - Corporation's Aging of Loans Held for Investment Portfolio (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
numberofpayments | numberofpayments | |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans considered to be defaulted if borrower has failed to make payment for a period or more than the period | 0 years 2 months 29 days | 0 years 2 months 29 days |
Period during which credit card loans continue to accrue finance charges and fees | 0 years 5 months 27 days | 0 years 5 months 27 days |
Defaulted loans collateralizing Ginnie Mae (GNMA) securities | $9.30 | $11.50 |
Minimum Number of Payments in Arrears to Consider Commercial Mortgage and Construction Loan as Past Due | 2 | 2 |
Residential mortgage loans insured by FHA or guaranteed by the VA | 40.4 | 37 |
Period of residential mortgage loan that are no longer accruing interest | 1 year 6 months 0 days | 1 year 6 months 0 days |
Fha Va And Other Government Guaranteed Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | 14 | 23.9 |
Residential Mortgage [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | 189.1 | 166.7 |
Commercial Mortgage [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | 20.8 | 18.4 |
Residential Construction [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | 1 | 2.5 |
Land Construction [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | $0.80 | $0.90 |
LOAN_PORTFOLIO_Corporations_Cr
LOAN PORTFOLIO - Corporation's Credit Quality Indicators by Loan (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Financing Receivable Recorded Investment [Line Items] | |||
Commercial mortgage loans | $1,665,787 | $1,823,608 | |
Construction loans | 123,480 | 168,713 | |
Commercial and Industrial loans | 2,479,437 | 3,028,322 | |
Land | 55,921 | 80,373 | |
Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 42,997 | 71,509 | |
Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 24,562 | 16,831 | |
Substandard [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Commercial mortgage loans | 273,027 | 317,365 | |
Commercial and Industrial loans | 234,926 | 205,807 | |
Land | 16,915 | 31,777 | |
Substandard [Member] | Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 13,548 | 27,829 | |
Substandard [Member] | Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 11,790 | 16,022 | |
Doubtful [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Commercial mortgage loans | 897 | 9,160 | |
Commercial and Industrial loans | 4,884 | 7,998 | |
Land | 0 | 3,308 | |
Doubtful [Member] | Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 776 | 2,209 | |
Doubtful [Member] | Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 0 | 0 | |
Unlikely To Be Collected Financing Receivable [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Commercial mortgage loans | 0 | 234 | |
Commercial and Industrial loans | 801 | 973 | |
Land | 0 | 52 | |
Unlikely To Be Collected Financing Receivable [Member] | Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 0 | 241 | |
Unlikely To Be Collected Financing Receivable [Member] | Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 0 | 0 | |
Total Adversely Classified [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Commercial mortgage loans | 273,924 | 326,759 | [1] |
Commercial and Industrial loans | 240,611 | 214,778 | [1] |
Land | 16,915 | 35,137 | [1] |
Total Adversely Classified [Member] | Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 14,324 | 30,279 | [1] |
Total Adversely Classified [Member] | Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | $11,790 | $16,022 | [1] |
[1] | Excludes $54.6 million ($7.8 million land, $39.1 million construction-commercial, $0.9 million construction-residential, and $6.8 million commercial mortgage) and $54.8 million ($7.8 million land, $39.1 million construction-commercial, $0.9 construction-residential and $7.0 million commercial mortgage) as of December 31, 2014 and 2013, respectively, of non-performing loans held for sale. |
LOAN_PORTFOLIO_Credit_Risk_Pay
LOAN PORTFOLIO - Credit Risk Payment Activity (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | $9,262,436 | $9,636,170 | ||
Consumer Auto Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 1,060,782 | 1,112,320 | ||
Finance Leases [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 232,126 | 245,323 | ||
Residential Real Estate [Member] | Fhava Guaranteed Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 153,570 | [1] | 195,226 | [2] |
Residential Real Estate [Member] | Other Residential Mortgage Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 2,857,617 | 2,353,782 | ||
Residential Real Estate [Member] | Performing Financing Receivable [Member] | Fhava Guaranteed Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 153,570 | [1] | 195,226 | [2] |
Residential Real Estate [Member] | Performing Financing Receivable [Member] | Other Residential Mortgage Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 2,578,416 | 2,192,341 | ||
Residential Real Estate [Member] | Purchased Credit Impaired [Member] | Fhava Guaranteed Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 0 | [1],[3] | 0 | [2],[4] |
Residential Real Estate [Member] | Purchased Credit Impaired [Member] | Other Residential Mortgage Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 98,494 | [3] | 0 | [4] |
Residential Real Estate [Member] | Nonperforming Financing Receivable [Member] | Fhava Guaranteed Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 0 | [1] | 0 | [2] |
Residential Real Estate [Member] | Nonperforming Financing Receivable [Member] | Other Residential Mortgage Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 180,707 | 161,441 | ||
Consumer [Member] | Consumer Auto Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 1,060,782 | 1,112,320 | ||
Consumer [Member] | Finance Leases [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 232,126 | 245,323 | ||
Consumer [Member] | Other Consumer Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 689,637 | 708,876 | ||
Consumer [Member] | Performing Financing Receivable [Member] | Consumer Auto Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 1,038,506 | 1,091,004 | ||
Consumer [Member] | Performing Financing Receivable [Member] | Finance Leases [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 226,881 | 242,241 | ||
Consumer [Member] | Performing Financing Receivable [Member] | Other Consumer Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 673,626 | 688,181 | ||
Consumer [Member] | Purchased Credit Impaired [Member] | Consumer Auto Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 0 | [3] | 0 | [4] |
Consumer [Member] | Purchased Credit Impaired [Member] | Finance Leases [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 0 | [3] | 0 | [4] |
Consumer [Member] | Purchased Credit Impaired [Member] | Other Consumer Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 717 | [3] | 4,791 | [4] |
Consumer [Member] | Nonperforming Financing Receivable [Member] | Consumer Auto Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 22,276 | 21,316 | ||
Consumer [Member] | Nonperforming Financing Receivable [Member] | Finance Leases [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 5,245 | 3,082 | ||
Consumer [Member] | Nonperforming Financing Receivable [Member] | Other Consumer Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | $15,294 | $15,904 | ||
[1] | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VAB as past due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. These balances include $40.4 million of residential mortgage loans insured by the FHA or guaranteed by the VA that are over 18 months delinquent, and are no longer accruing interest as of December 31, 2014. | |||
[2] | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VAB as past due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. B These balances include $37.0 million of residential mortgage loans insured by the FHA or guaranteed by the VA that areB B over 18 months delinquent, and are no longer accruing interest as of December 31, 2013. | |||
[3] | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loansB will accrete interest income over the remaining life of the loans using estimated cash flow analysis. | |||
[4] | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis. |
LOAN_PORTFOLIO_Credit_Risk_Pay1
LOAN PORTFOLIO - Credit Risk Payment Activity (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable Recorded Investment [Line Items] | ||
Residential mortgage loans insured by FHA or guaranteed by the VA | $40,400,000 | $37,000,000 |
Period of residential mortgage loan that are no longer accruing interest | 1 year 6 months 0 days | 1 year 6 months 0 days |
Loans considered to be defaulted if borrower has failed to make payment for a period or more than the period | 0 years 2 months 29 days | 0 years 2 months 29 days |
Loans Receivable Held For Sale Net | 76,956,000 | 75,969,000 |
Total Adversely Classified [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans Held For Sale Commercial Real Estate | 6,800,000 | 7,000,000 |
Commercial Mortgage Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans Held For Sale Commercial Real Estate | 6,839,000 | 6,999,000 |
Commercial Construction [Member] | Total Adversely Classified [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans Receivable Held For Sale Net | 39,100,000 | 39,100,000 |
Residential Construction [Member] | Total Adversely Classified [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans Receivable Held For Sale Net | 900,000 | 900,000 |
Land Construction [Member] | Total Adversely Classified [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans Receivable Held For Sale Net | $7,800,000 | $7,800,000 |
LOAN_PORTFOLIO_Impaired_loans_
LOAN PORTFOLIO - Impaired loans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable Impaired [Line Items] | |||
Recorded Investment with no Related Allowance | $238,812 | $341,485 | |
Unpaid Principal Balance with no Related Allowance | 281,868 | 392,392 | |
Average Recorded Investment No Related Allowance | 246,473 | 352,949 | |
Interest Income with no Related Allowance Accrual Basis | 2,244 | 11,237 | |
Interest Income with No Related Allowance Cash Basis | 3,970 | 1,273 | |
Recorded Investment with Related Allowance | 706,595 | 577,627 | |
Unpaid Principal Balance with Related Allowance | 803,716 | 641,834 | |
Related Allowance | 55,205 | 102,601 | 221,749 |
Average Recorded Investment With Related Allowance | 724,143 | 592,928 | |
Interest Income with Related Allowance Accrual Basis | 25,909 | 15,156 | |
Interest Income with Realted Allowance Cash Basis | 3,635 | 2,174 | |
Recorded Investment | 945,407 | 919,112 | 1,465,294 |
Unpaid Principal Balance | 1,085,584 | 1,034,226 | |
Average Recorded Investments | 970,616 | 945,877 | |
Interest Income on Impaired Loans Accrual Basis | 28,153 | 26,393 | |
Interest Income on Impaired Loans Cash Basis | 7,605 | 3,447 | |
Fhava Guaranteed Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment with no Related Allowance | 0 | 0 | |
Unpaid Principal Balance with no Related Allowance | 0 | 0 | |
Average Recorded Investment No Related Allowance | 0 | 0 | |
Interest Income with no Related Allowance Accrual Basis | 0 | 0 | |
Interest Income with No Related Allowance Cash Basis | 0 | 0 | |
Recorded Investment with Related Allowance | 0 | 0 | |
Unpaid Principal Balance with Related Allowance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment With Related Allowance | 0 | 0 | |
Interest Income with Related Allowance Accrual Basis | 0 | 0 | |
Interest Income with Realted Allowance Cash Basis | 0 | 0 | |
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Average Recorded Investments | 0 | 0 | |
Interest Income on Impaired Loans Accrual Basis | 0 | 0 | |
Interest Income on Impaired Loans Cash Basis | 0 | 0 | |
Other Residential Mortgage Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment with no Related Allowance | 74,177 | 220,428 | |
Unpaid Principal Balance with no Related Allowance | 80,522 | 237,709 | |
Average Recorded Investment No Related Allowance | 75,711 | 222,617 | |
Interest Income with no Related Allowance Accrual Basis | 1,118 | 9,513 | |
Interest Income with No Related Allowance Cash Basis | 461 | 1,041 | |
Recorded Investment with Related Allowance | 350,067 | 190,566 | |
Unpaid Principal Balance with Related Allowance | 396,203 | 212,028 | |
Related Allowance | 10,854 | 18,125 | |
Average Recorded Investment With Related Allowance | 357,129 | 193,372 | |
Interest Income with Related Allowance Accrual Basis | 15,852 | 5,623 | |
Interest Income with Realted Allowance Cash Basis | 1,853 | 647 | |
Recorded Investment | 424,244 | 410,994 | |
Unpaid Principal Balance | 476,725 | 449,737 | |
Average Recorded Investments | 432,840 | 415,989 | |
Interest Income on Impaired Loans Accrual Basis | 16,970 | 15,136 | |
Interest Income on Impaired Loans Cash Basis | 2,314 | 1,688 | |
Commercial Mortgage Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment with no Related Allowance | 109,271 | 69,484 | |
Unpaid Principal Balance with no Related Allowance | 132,170 | 73,723 | |
Average Recorded Investment No Related Allowance | 113,674 | 71,367 | |
Interest Income with no Related Allowance Accrual Basis | 846 | 1,494 | |
Interest Income with No Related Allowance Cash Basis | 2,670 | 148 | |
Recorded Investment with Related Allowance | 101,467 | 149,888 | |
Unpaid Principal Balance with Related Allowance | 116,329 | 163,656 | |
Related Allowance | 14,289 | 32,189 | |
Average Recorded Investment With Related Allowance | 104,191 | 153,992 | |
Interest Income with Related Allowance Accrual Basis | 1,891 | 2,114 | |
Interest Income with Realted Allowance Cash Basis | 638 | 1,293 | |
Recorded Investment | 210,738 | 219,372 | |
Unpaid Principal Balance | 248,499 | 237,379 | |
Average Recorded Investments | 217,865 | 225,359 | |
Interest Income on Impaired Loans Accrual Basis | 2,737 | 3,608 | |
Interest Income on Impaired Loans Cash Basis | 3,308 | 1,441 | |
Commercial And Industrial Loan [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment with no Related Allowance | 41,131 | 32,418 | |
Unpaid Principal Balance with no Related Allowance | 47,647 | 56,831 | |
Average Recorded Investment No Related Allowance | 42,011 | 37,946 | |
Interest Income with no Related Allowance Accrual Basis | 0 | 31 | |
Interest Income with No Related Allowance Cash Basis | 751 | 52 | |
Recorded Investment with Related Allowance | 195,240 | 154,686 | |
Unpaid Principal Balance with Related Allowance | 226,431 | 170,191 | |
Related Allowance | 21,314 | 26,686 | |
Average Recorded Investment With Related Allowance | 198,930 | 162,786 | |
Interest Income with Related Allowance Accrual Basis | 5,097 | 4,005 | |
Interest Income with Realted Allowance Cash Basis | 564 | 139 | |
Recorded Investment | 236,371 | 187,104 | |
Unpaid Principal Balance | 274,078 | 227,022 | |
Average Recorded Investments | 240,941 | 200,732 | |
Interest Income on Impaired Loans Accrual Basis | 5,097 | 4,036 | |
Interest Income on Impaired Loans Cash Basis | 1,315 | 191 | |
Construction Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Related Allowance | 2,577 | 22,144 | |
Recorded Investment | 72,717 | ||
Consumer Auto Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment with no Related Allowance | 0 | 0 | |
Unpaid Principal Balance with no Related Allowance | 0 | 0 | |
Average Recorded Investment No Related Allowance | 0 | 0 | |
Interest Income with no Related Allowance Accrual Basis | 0 | 0 | |
Interest Income with No Related Allowance Cash Basis | 0 | 0 | |
Recorded Investment with Related Allowance | 16,991 | 14,121 | |
Unpaid Principal Balance with Related Allowance | 16,991 | 14,122 | |
Related Allowance | 2,787 | 1,829 | |
Average Recorded Investment With Related Allowance | 18,504 | 12,937 | |
Interest Income with Related Allowance Accrual Basis | 1,173 | 1,017 | |
Interest Income with Realted Allowance Cash Basis | 0 | 0 | |
Recorded Investment | 16,991 | 14,121 | |
Unpaid Principal Balance | 16,991 | 14,122 | |
Average Recorded Investments | 18,504 | 12,937 | |
Interest Income on Impaired Loans Accrual Basis | 1,173 | 1,017 | |
Interest Income on Impaired Loans Cash Basis | 0 | 0 | |
Finance Leases [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment with no Related Allowance | 0 | 0 | |
Unpaid Principal Balance with no Related Allowance | 0 | 0 | |
Average Recorded Investment No Related Allowance | 0 | 0 | |
Interest Income with no Related Allowance Accrual Basis | 0 | 0 | |
Interest Income with No Related Allowance Cash Basis | 0 | 0 | |
Recorded Investment with Related Allowance | 2,181 | 2,359 | |
Unpaid Principal Balance with Related Allowance | 2,181 | 2,359 | |
Related Allowance | 253 | 73 | |
Average Recorded Investment With Related Allowance | 2,367 | 2,219 | |
Interest Income with Related Allowance Accrual Basis | 198 | 281 | |
Interest Income with Realted Allowance Cash Basis | 0 | 0 | |
Recorded Investment | 2,181 | 2,359 | |
Unpaid Principal Balance | 2,181 | 2,359 | |
Average Recorded Investments | 2,367 | 2,219 | |
Interest Income on Impaired Loans Accrual Basis | 198 | 281 | |
Interest Income on Impaired Loans Cash Basis | 0 | 0 | |
Other Consumer Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment with no Related Allowance | 3,778 | 4,035 | |
Unpaid Principal Balance with no Related Allowance | 5,072 | 4,450 | |
Average Recorded Investment No Related Allowance | 3,924 | 3,325 | |
Interest Income with no Related Allowance Accrual Basis | 75 | 139 | |
Interest Income with No Related Allowance Cash Basis | 79 | 30 | |
Recorded Investment with Related Allowance | 11,637 | 8,410 | |
Unpaid Principal Balance with Related Allowance | 12,136 | 8,919 | |
Related Allowance | 3,131 | 1,555 | |
Average Recorded Investment With Related Allowance | 12,291 | 8,919 | |
Interest Income with Related Allowance Accrual Basis | 1,634 | 1,239 | |
Interest Income with Realted Allowance Cash Basis | 40 | 1 | |
Recorded Investment | 15,415 | 12,445 | |
Unpaid Principal Balance | 17,208 | 13,369 | |
Average Recorded Investments | 16,215 | 12,244 | |
Interest Income on Impaired Loans Accrual Basis | 1,709 | 1,378 | |
Interest Income on Impaired Loans Cash Basis | 119 | 31 | |
Land Construction [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment with no Related Allowance | 2,994 | 359 | |
Unpaid Principal Balance with no Related Allowance | 6,357 | 366 | |
Average Recorded Investment No Related Allowance | 3,030 | 360 | |
Interest Income with no Related Allowance Accrual Basis | 38 | 8 | |
Interest Income with No Related Allowance Cash Basis | 1 | 2 | |
Recorded Investment with Related Allowance | 9,120 | 27,711 | |
Unpaid Principal Balance with Related Allowance | 12,821 | 40,348 | |
Related Allowance | 794 | 10,455 | |
Average Recorded Investment With Related Allowance | 10,734 | 28,906 | |
Interest Income with Related Allowance Accrual Basis | 64 | 350 | |
Interest Income with Realted Allowance Cash Basis | 25 | 44 | |
Recorded Investment | 12,114 | 28,070 | |
Unpaid Principal Balance | 19,178 | 40,714 | |
Average Recorded Investments | 13,764 | 29,266 | |
Interest Income on Impaired Loans Accrual Basis | 102 | 358 | |
Interest Income on Impaired Loans Cash Basis | 26 | 46 | |
Residential Construction [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment with no Related Allowance | 7,461 | 14,761 | |
Unpaid Principal Balance with no Related Allowance | 10,100 | 19,313 | |
Average Recorded Investment No Related Allowance | 8,123 | 17,334 | |
Interest Income with no Related Allowance Accrual Basis | 167 | 52 | |
Interest Income with No Related Allowance Cash Basis | 8 | 0 | |
Recorded Investment with Related Allowance | 8,102 | 13,864 | |
Unpaid Principal Balance with Related Allowance | 8,834 | 13,973 | |
Related Allowance | 993 | 2,816 | |
Average Recorded Investment With Related Allowance | 8,130 | 13,640 | |
Interest Income with Related Allowance Accrual Basis | 0 | 0 | |
Interest Income with Realted Allowance Cash Basis | 0 | 50 | |
Recorded Investment | 15,563 | 28,625 | |
Unpaid Principal Balance | 18,934 | 33,286 | |
Average Recorded Investments | 16,253 | 30,974 | |
Interest Income on Impaired Loans Accrual Basis | 167 | 52 | |
Interest Income on Impaired Loans Cash Basis | 8 | 50 | |
Commercial Construction [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment with no Related Allowance | 0 | 0 | |
Unpaid Principal Balance with no Related Allowance | 0 | 0 | |
Average Recorded Investment No Related Allowance | 0 | 0 | |
Interest Income with no Related Allowance Accrual Basis | 0 | 0 | |
Interest Income with No Related Allowance Cash Basis | 0 | 0 | |
Recorded Investment with Related Allowance | 11,790 | 16,022 | |
Unpaid Principal Balance with Related Allowance | 11,790 | 16,238 | |
Related Allowance | 790 | 8,873 | |
Average Recorded Investment With Related Allowance | 11,867 | 16,157 | |
Interest Income with Related Allowance Accrual Basis | 0 | 527 | |
Interest Income with Realted Allowance Cash Basis | 515 | 0 | |
Recorded Investment | 11,790 | 16,022 | |
Unpaid Principal Balance | 11,790 | 16,238 | |
Average Recorded Investments | 11,867 | 16,157 | |
Interest Income on Impaired Loans Accrual Basis | 0 | 527 | |
Interest Income on Impaired Loans Cash Basis | $515 | $0 |
LOAN_PORTFOLIO_Additional_Info
LOAN PORTFOLIO - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||
Oct. 03, 2014 | 30-May-12 | 30-May-14 | Jun. 21, 2013 | Mar. 28, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Sep. 30, 2013 | |||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Interest Income on Impaired Loans Accrual Basis | $28,153,000 | $26,393,000 | ||||||||||||||
Purchased credit impaired loans, fair value | 15,700,000 | |||||||||||||||
Contractually outstanding principal and interest at acquisition | 34,600,000 | 135,500,000 | 22,700,000 | |||||||||||||
Securitization of mortgage loans into mortgage backed securities | 198,700,000 | |||||||||||||||
Loans | 9,262,436,000 | 9,636,170,000 | ||||||||||||||
Loans to local financial institutions collateralized by real estate mortgages | 0 | [1] | 240,072,000 | [1] | ||||||||||||
Total TDR loans | 694,453,000 | [2] | 630,258,000 | [3] | 941,730,000 | |||||||||||
Financing Receivable, Modifications, Recorded Investment | 694,453,000 | [2] | 630,258,000 | [3] | 941,730,000 | |||||||||||
Classified And Non Performing Loans Sold | 203,800,000 | 211,400,000 | ||||||||||||||
Loans Transferred To Held For Sale | 181,600,000 | |||||||||||||||
Other Real Estate Owned Sold | 19,200,000 | 6,300,000 | ||||||||||||||
Sales Price Of Bulk Sale | 128,300,000 | 120,200,000 | ||||||||||||||
Reserves Allocated To Bulk Sale | 30,100,000 | 39,900,000 | ||||||||||||||
Bulk Sale Charge Offs | 98,000,000 | 98,500,000 | ||||||||||||||
Provision Bulk Sale | 69,800,000 | 58,900,000 | ||||||||||||||
Professional Fees Bulk Sale | 3,100,000 | 3,900,000 | ||||||||||||||
Charge Off Loans Transferred To Held For Sale | 36,000,000 | |||||||||||||||
Provision Loans Transferred To Held For Sale | 5,200,000 | |||||||||||||||
Subsequent Losses Repurchase Of Loans | 700,000 | |||||||||||||||
PreTax Loss Bulk Sale | 72,900,000 | 62,800,000 | ||||||||||||||
Recoveries | 27,323,000 | 19,594,000 | ||||||||||||||
Line Of Credit Facility Provided To Fund Unfunded Commitments | 80,000,000 | |||||||||||||||
Loans Receivable Held For Sale Net | 76,956,000 | 75,969,000 | ||||||||||||||
Servicing Assets Compesatory Fees | 500,000 | |||||||||||||||
Doral Purchase Unpaid Principal Balance | 241,700,000 | |||||||||||||||
Doral Purchase Price | 192,700,000 | 232,900,000 | ||||||||||||||
Doral Purchase Fair Value | 226,000,000 | |||||||||||||||
Loss On Acquired Portfolio | 6,900,000 | |||||||||||||||
Doral Purchase Loss On Allowance | 5,500,000 | |||||||||||||||
Provision Charge On Doral Purchase | 1,400,000 | |||||||||||||||
Professional Service Fee On Doral Purchase | 700,000 | 600,000 | ||||||||||||||
Sop Unpaid Principal Balance | 119,200,000 | |||||||||||||||
Non Sop Fair Value | 123,200,000 | |||||||||||||||
Payment To Acquire Credit Card Portfolio | 406,000,000 | |||||||||||||||
Fair Value Of Credit Card Portfolio Acquired | 368,900,000 | |||||||||||||||
Proceeds From Sale Of Loans Held For Investment | 74,058,000 | 314,282,000 | 38,608,000 | |||||||||||||
Doral Purchase Holdback | 1,300,000 | |||||||||||||||
Postclosing Analysis Period | 0 years 2 months 29 days | |||||||||||||||
Non Sop Unpaid Principal Balance | 192,600,000 | 122,500,000 | ||||||||||||||
Trouble Debt Restructurings Trial Period | 0 years 5 months 27 days | |||||||||||||||
GNMA certificates [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Loans Repurchased | 37,800,000 | 28,300,000 | 53,900,000 | |||||||||||||
Fnma And Fhlmc [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Mortgage Repurchase Of Loans | 2,300,000 | 6,100,000 | 3,000,000 | |||||||||||||
Puerto Rico Government And Political Subdivisions [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Outstanding of credit facilities granted | 201,400,000 | |||||||||||||||
Public Corporations [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Outstanding of credit facilities granted | 93,400,000 | |||||||||||||||
Government [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Outstanding of credit facilities granted | 13,200,000 | |||||||||||||||
Puerto Rico Tourism Development Fund [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Outstanding of credit facilities granted | 133,300,000 | 200,400,000 | ||||||||||||||
Puerto Rico Electric PowerAuthority [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Outstanding of credit facilities granted | 75,000,000 | |||||||||||||||
Residential Mortgage [Member] | Fnma And Fhlmc [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Financing Receivable Significant Sales | 138,500,000 | |||||||||||||||
Loans in trial [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Total TDR loans | 9,700,000 | |||||||||||||||
Financing Receivable, Modifications, Recorded Investment | 9,700,000 | |||||||||||||||
Non Accrual [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Total TDR loans | 199,813,000 | [4],[5] | 204,875,000 | [6],[7] | ||||||||||||
Financing Receivable, Modifications, Recorded Investment | 199,813,000 | [4],[5] | 204,875,000 | [6],[7] | ||||||||||||
Loans Split [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Total TDR loans | 46,032,000 | 78,342,000 | ||||||||||||||
Financing Receivable, Modifications, Recorded Investment | 46,032,000 | 78,342,000 | ||||||||||||||
Non Fha Va Residential Mortgage Loans [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Total TDR loans | 349,775,000 | 337,244,000 | ||||||||||||||
Financing Receivable, Modifications, Recorded Investment | 349,775,000 | 337,244,000 | ||||||||||||||
Commercial And Industrial Loan [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Total TDR loans | 171,926,000 | 91,951,000 | ||||||||||||||
Financing Receivable, Modifications, Recorded Investment | 171,926,000 | 91,951,000 | ||||||||||||||
Commercial Mortgage Loans [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Total TDR loans | 127,766,000 | 153,576,000 | ||||||||||||||
Financing Receivable, Modifications, Recorded Investment | 127,766,000 | 153,576,000 | ||||||||||||||
Loans Held For Sale [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Lower Of Cost Market Loss | 3,800,000 | |||||||||||||||
Residential Mortgage [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Loans | 3,011,187,000 | 2,549,008,000 | ||||||||||||||
Classified And Non Performing Loans Sold | 1,200,000 | |||||||||||||||
Recoveries | 1,049,000 | 1,165,000 | ||||||||||||||
Government Guaranteed Loans [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Total TDR loans | 71,500,000 | |||||||||||||||
Financing Receivable, Modifications, Recorded Investment | 71,500,000 | |||||||||||||||
Non Accrual [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Classified And Non Performing Loans Sold | 185,000,000 | |||||||||||||||
Troubled Debt Restructurings [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Outstanding unfunded commitments on TDR loans | 100,000 | |||||||||||||||
Troubled Debt Restructurings [Member] | Non Accrual [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Loans Receivable Held For Sale Net | 45,700,000 | 45,900,000 | ||||||||||||||
Loans Split [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Financing receivable loans restructured recorded investment accruals | 44,300,000 | |||||||||||||||
Non Fha Va Residential Mortgage Loans [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Financing Receivable Significant Purchases | 146,500,000 | |||||||||||||||
Total TDR loans | 349,775,000 | 337,243,000 | ||||||||||||||
Financing Receivable, Modifications, Recorded Investment | 349,775,000 | 337,243,000 | ||||||||||||||
Non Fha Va Residential Mortgage Loans [Member] | Non Accrual [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Total TDR loans | 82,965,000 | [4],[5] | 73,324,000 | [6],[7] | ||||||||||||
Financing Receivable, Modifications, Recorded Investment | 82,965,000 | [4],[5] | 73,324,000 | [6],[7] | ||||||||||||
Commercial And Industrial Loan [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Interest Income on Impaired Loans Accrual Basis | 5,097,000 | 4,036,000 | ||||||||||||||
Total TDR loans | 171,926,000 | 153,575,000 | ||||||||||||||
Financing Receivable, Modifications, Recorded Investment | 171,926,000 | 153,575,000 | ||||||||||||||
Classified And Non Performing Loans Sold | 100,100,000 | |||||||||||||||
Commercial And Industrial Loan [Member] | Non Accrual [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Total TDR loans | 40,382,000 | [4],[5] | 69,156,000 | [6],[7] | ||||||||||||
Financing Receivable, Modifications, Recorded Investment | 40,382,000 | [4],[5] | 69,156,000 | [6],[7] | ||||||||||||
Commercial Mortgage Loans [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Interest Income on Impaired Loans Accrual Basis | 2,737,000 | 3,608,000 | ||||||||||||||
Loans | 1,665,787,000 | 1,823,608,000 | ||||||||||||||
Total TDR loans | 127,766,000 | 91,950,000 | ||||||||||||||
Financing Receivable, Modifications, Recorded Investment | 127,766,000 | 91,950,000 | ||||||||||||||
Classified And Non Performing Loans Sold | 68,800,000 | 40,800,000 | ||||||||||||||
Recoveries | 10,639,000 | 4,855,000 | ||||||||||||||
Proceeds From Sale Of Loans Held For Investment | 53,000,000 | |||||||||||||||
Commercial Mortgage Loans [Member] | Non Accrual [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Total TDR loans | 58,392,000 | [4],[5] | 38,441,000 | [6],[7] | ||||||||||||
Financing Receivable, Modifications, Recorded Investment | 58,392,000 | [4],[5] | 38,441,000 | [6],[7] | ||||||||||||
Construction Loans [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Loans | 123,480,000 | 168,713,000 | ||||||||||||||
Total TDR loans | 12,500,000 | |||||||||||||||
Financing Receivable, Modifications, Recorded Investment | 12,500,000 | |||||||||||||||
Classified And Non Performing Loans Sold | 41,300,000 | |||||||||||||||
Proceeds From Collection Of Other Loans Held For Sale | 6,400,000 | |||||||||||||||
Gain On Repayment Of Loans Held For Sale | 300,000 | |||||||||||||||
Recoveries | 6,049,000 | 2,076,000 | ||||||||||||||
Consumer Loan [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Loans | 1,982,545,000 | 2,066,519,000 | ||||||||||||||
Total TDR loans | 32,500,000 | |||||||||||||||
Financing Receivable, Modifications, Recorded Investment | 32,500,000 | |||||||||||||||
Recoveries | 5,906,000 | 6,862,000 | ||||||||||||||
Loans Held For Sale [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Lower Of Cost Market Loss | 1,700,000 | |||||||||||||||
Aggregate Gains Losses Of Other Real Estate Owned | 4,100,000 | 4,900,000 | ||||||||||||||
Real Estate Acquired Through Foreclosure | 39,200,000 | |||||||||||||||
Other Real Estate Owned Write Downs | 3,200,000 | |||||||||||||||
Gains Losses On Sales Of Investment Real Estate | 300,000 | |||||||||||||||
Puerto Rico [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Credit risk concentration | 83.00% | |||||||||||||||
Outstanding of credit facilities granted | 308,000,000 | 397,800,000 | ||||||||||||||
Line Of Credit Facility Provided To Fund Unfunded Commitments | 339,000,000 | |||||||||||||||
Virgin Islands [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Credit risk concentration | 6.00% | |||||||||||||||
Outstanding of credit facilities granted | $57,700,000 | $60,600,000 | ||||||||||||||
United States [Member] | ||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||
Credit risk concentration | 11.00% | |||||||||||||||
[1] | On May 30, 2014, FirstBank acquired from Doral Financial Corporation ("Doral") mortgage loans, mainly residential mortgage loans, having an unpaid principal balance of $241.7 million (estimated fair value at acquisition of $226.0 million) in full satisfaction of secured borrowings with a book value of $232.9 million owed by Doral to FirstBank. Refer to "Acquired Loans including PCI Loans" below for additional information. | |||||||||||||||
[2] | Excludes TDR held for sale amounting to $45.7 million as of December 31, 2014. | |||||||||||||||
[3] | Excludes TDRs held for sale amounting to $45.9 million as of December 31, 2013. | |||||||||||||||
[4] | B Included in nonaccrual loans are $52.8 million in loans that are performing under the terms of the restructuring agreement B but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance B under the revised terms for reinstatement to accrual status and there is no doubt about full collectability. | |||||||||||||||
[5] | B Excludes nonaccrual TDRs held for sale with a carrying value of $45.7 million as of December 31, 2014. | |||||||||||||||
[6] | Included in nonaccrual loans are $95.7 million in loans that are performing under the terms of the restructuring agreementB but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance B under the revised terms for reinstatement to accrual status and there is no doubt about full collectability. | |||||||||||||||
[7] | Excludes nonaccrual TDRs held for sale with a carrying value of $45.9 million as of December 31, 2013. |
LOAN_PORTFOLIO_Activity_for_Im
LOAN PORTFOLIO - Activity for Impaired Loans (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Impaired Loans: | ||
Balance at beginning of period | $919,112 | $1,465,294 |
Loans determined impaired during the period | 306,390 | 280,860 |
Charge-offs | -106,154 | -307,428 |
Impaired Loans Sold | -4,500 | -201,409 |
Impaired Loans Transferred to Held For Sale | 0 | -145,415 |
Increases to impaired loans (disbursements) | 5,028 | 6,624 |
Foreclosures | -40,582 | -45,094 |
Loans no longer considered impaired | -22,333 | -49,299 |
Paid in full or partial payments | -111,554 | -85,021 |
Balance at end of period | $945,407 | $919,112 |
LOAN_PORTFOLIO_Activity_for_Sp
LOAN PORTFOLIO - Activity for Specific Reserve (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Specific Reserve: | ||
Balance at beginning of period | $102,601 | $221,749 |
Provision for loan losses | 58,758 | 188,280 |
Charge-offs | -106,154 | -307,428 |
Balance at end of period | $55,205 | $102,601 |
LOAN_PORTFOLIO_Contractually_R
LOAN PORTFOLIO - Contractually Required Principal and Interest Cash Flows Expected to be Collected and Fair Value at Acquisition Related to Loans Acquired (Detail) (USD $) | 0 Months Ended | |
30-May-12 | 30-May-14 | |
Financing Receivable Impaired [Line Items] | ||
Contractually outstanding principal and interest at acquisition | $275,842,000 | |
Less: Nonaccretable difference | -86,252,000 | |
Cash flows expected to be collected at acquisition | 189,590,000 | |
Less: Accretable yield | -86,759,000 | |
Fair value of loans acquired | 102,831,000 | |
Payment To Acquire Credit Card Portfolio | $406,000,000 |
LOAN_PORTFOLIO_Carrying_Value_
LOAN PORTFOLIO- Carrying Value of Purchased Credit Impaired Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable Impaired [Line Items] | ||||
Purchased Credit Impaired Loans | $102,604 | $4,791 | ||
Residential Mortgage Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Purchased Credit Impaired Loans | 98,494 | [1] | 0 | [2],[3] |
Commercial Mortgage Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Purchased Credit Impaired Loans | 3,393 | [1] | 0 | [2] |
Consumer Credit Card Financing Receivable [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Purchased Credit Impaired Loans | $717 | $4,791 | ||
[1] | B According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies B (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two B or more monthly payments. FHA/VA government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, land loans, and construction-residential loans pastB due 30-59 days as of December 31, 2014 amounted to $14.0 million, $189.1 million, $20.8 million, $0.8 million, and $1.0 million, respectively. | |||
[2] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies B (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two B or more monthly payments. FHA/VA government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, land loans, and construction-residential loans B past-due 30-59 days amounted to $23.9 million, $166.7 million, $18.4 million, $0.9 million, and $2.5 million, respectively. | |||
[3] | B As of December 31, 2013, includes $11.5 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) B to repurchase the defaulted loans. |
LOAN_PORTFOLIO_Accretable_Yiel
LOAN PORTFOLIO - Accretable Yield Related to Purchased Credit Impaired Loans (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accretable Yield [Line Items] | ||
Accretable yield at acquisition | $0 | $2,171 |
Additions | 86,759 | 0 |
Reclassification to nonaccretable | 0 | -1,352 |
Accretion recognized in earnings | -4,299 | -819 |
Accretable yield as of December 31, 2014 | 82,460 | 0 |
Purchased Credit Impaired Loans [Member] | ||
Accretable Yield [Line Items] | ||
Accretion recognized in earnings | ($4,299) |
LOAN_PORTFOLIO_Corporations_Ag2
LOAN PORTFOLIO- Corporation's Aging of Purchased Credit Impaired Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
PCI 30-59 Days Past Due | $47 | |||
PCI 60-89 Days, Past Due | 12,952 | |||
PCI 90 days or more, Past Due | 15,661 | |||
Total PCI Past Due | 28,660 | |||
PCI Financing Receivable, Current | 73,944 | |||
Purchased Credit Impaired Loans | 102,604 | 4,791 | ||
Residential Mortgage Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
PCI 60-89 Days, Past Due | 12,571 | |||
PCI 90 days or more, Past Due | 15,176 | |||
Total PCI Past Due | 27,747 | |||
PCI Financing Receivable, Current | 70,747 | |||
Purchased Credit Impaired Loans | 98,494 | [1] | 0 | [2],[3] |
Commercial Mortgage Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
PCI 60-89 Days, Past Due | 356 | |||
PCI 90 days or more, Past Due | 443 | |||
Total PCI Past Due | 799 | |||
PCI Financing Receivable, Current | 2,594 | |||
Purchased Credit Impaired Loans | 3,393 | [1] | 0 | [2] |
Consumer Credit Card Financing Receivable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
PCI 30-59 Days Past Due | 47 | 377 | ||
PCI 60-89 Days, Past Due | 25 | 354 | ||
PCI 90 days or more, Past Due | 42 | 573 | ||
Total PCI Past Due | 114 | 1,304 | ||
PCI Financing Receivable, Current | 603 | 3,487 | ||
Purchased Credit Impaired Loans | $717 | $4,791 | ||
[1] | B According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies B (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two B or more monthly payments. FHA/VA government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, land loans, and construction-residential loans pastB due 30-59 days as of December 31, 2014 amounted to $14.0 million, $189.1 million, $20.8 million, $0.8 million, and $1.0 million, respectively. | |||
[2] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies B (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two B or more monthly payments. FHA/VA government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, land loans, and construction-residential loans B past-due 30-59 days amounted to $23.9 million, $166.7 million, $18.4 million, $0.9 million, and $2.5 million, respectively. | |||
[3] | B As of December 31, 2013, includes $11.5 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) B to repurchase the defaulted loans. |
LOAN_PORTFOLIOCorporations_Agi
LOAN PORTFOLIO-Corporation's Aging of Purchased Credit Impaired Loans (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Residential Mortgage [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due Mortgage | $189.10 | $166.70 |
Residential Mortgage [Member] | Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due Mortgage | 16.6 | |
Commercial Mortgage [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due Mortgage | 20.8 | 18.4 |
Commercial Mortgage [Member] | Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due Mortgage | $0.80 |
LOAN_PORTFOLIO_Changes_in_Carr
LOAN PORTFOLIO -Changes in Carrying Amount Of Purchased Credit Impaired Loans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable Impaired [Line Items] | |||
Beggining balance: purchased credit-impaired loans | $4,791 | ||
Purchased Credit Impaired Loans Aquired | 102,831 | [1] | |
Accretion recognized in earnings | 4,299 | 819 | |
Ending balance: purchased credit-impaired loans | 102,604 | 4,791 | |
Purchased Credit Impaired Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Beggining balance: purchased credit-impaired loans | 4,791 | [2] | |
Accretion recognized in earnings | 4,299 | ||
Purchased Credit Impaired Loans Principal Collections | -9,317 | ||
Ending balance: purchased credit-impaired loans | $102,604 | ||
[1] | Represents the estimated fair value of the PCI loans acquired from Doral at the date of acquisition. | ||
[2] | For the year ended December 31, 2014, the beginning balance relates to PCI loans acquired as part of the credit card portfolio purchased in the second quarter of 2012. |
LOAN_PORTFOLIO_Selected_Inform
LOAN PORTFOLIO- Selected Information on TDRs includes Recorded Investment by Loan Class and Modification Type (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $694,453 | [1] | $630,258 | [2] | $941,730 |
Troubled Debt Restructurings Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 68,455 | [1] | 79,229 | [2] | |
Troubled Debt Restructurings Maturity Or Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 100,662 | [1] | 34,805 | [2] | |
Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 415,187 | [1] | 398,307 | [2] | |
Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 3,517 | [1] | 4,123 | [2] | |
Troubled Debt Restructurings Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 106,632 | [1],[3] | 113,794 | [2],[4] | |
Non Fha Va Residential Mortgage Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 349,775 | 337,244 | |||
Non Fha Va Residential Mortgage Loans [Member] | Troubled Debt Restructurings Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 24,850 | 23,428 | |||
Non Fha Va Residential Mortgage Loans [Member] | Troubled Debt Restructurings Maturity Or Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 5,859 | 6,059 | |||
Non Fha Va Residential Mortgage Loans [Member] | Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 283,317 | 274,562 | |||
Non Fha Va Residential Mortgage Loans [Member] | Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Non Fha Va Residential Mortgage Loans [Member] | Troubled Debt Restructurings Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 35,749 | [3] | 33,195 | [4] | |
Commercial Mortgage Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 127,766 | 153,576 | |||
Commercial Mortgage Loans [Member] | Troubled Debt Restructurings Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 29,881 | 36,543 | |||
Commercial Mortgage Loans [Member] | Troubled Debt Restructurings Maturity Or Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 12,737 | 12,985 | |||
Commercial Mortgage Loans [Member] | Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 72,493 | 83,993 | |||
Commercial Mortgage Loans [Member] | Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 7 | |||
Commercial Mortgage Loans [Member] | Troubled Debt Restructurings Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 12,655 | [3] | 20,048 | [4] | |
Commercial And Industrial Loan [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 171,926 | 91,951 | |||
Commercial And Industrial Loan [Member] | Troubled Debt Restructurings Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 7,533 | 12,099 | |||
Commercial And Industrial Loan [Member] | Troubled Debt Restructurings Maturity Or Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 80,642 | 11,341 | |||
Commercial And Industrial Loan [Member] | Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 31,553 | 12,835 | |||
Commercial And Industrial Loan [Member] | Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 3,074 | 3,122 | |||
Commercial And Industrial Loan [Member] | Troubled Debt Restructurings Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 49,124 | [3] | 52,554 | [4] | |
Consumer Auto Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 16,991 | 14,122 | |||
Consumer Auto Loans [Member] | Troubled Debt Restructurings Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Consumer Auto Loans [Member] | Troubled Debt Restructurings Maturity Or Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 380 | 706 | |||
Consumer Auto Loans [Member] | Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 10,363 | 8,350 | |||
Consumer Auto Loans [Member] | Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Consumer Auto Loans [Member] | Troubled Debt Restructurings Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 6,248 | [3] | 5,066 | [4] | |
Finance Leases [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 2,181 | 2,358 | |||
Finance Leases [Member] | Troubled Debt Restructurings Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Finance Leases [Member] | Troubled Debt Restructurings Maturity Or Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 376 | 1,286 | |||
Finance Leases [Member] | Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 1,805 | 1,072 | |||
Finance Leases [Member] | Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Finance Leases [Member] | Troubled Debt Restructurings Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | [3] | 0 | [4] | |
Other Consumer Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 13,307 | 10,864 | |||
Other Consumer Loans [Member] | Troubled Debt Restructurings Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 37 | 227 | |||
Other Consumer Loans [Member] | Troubled Debt Restructurings Maturity Or Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 129 | 256 | |||
Other Consumer Loans [Member] | Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 10,812 | 8,638 | |||
Other Consumer Loans [Member] | Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 443 | 0 | |||
Other Consumer Loans [Member] | Troubled Debt Restructurings Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 1,886 | [3] | 1,743 | [4] | |
Commercial Construction [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 3,924 | ||||
Commercial Construction [Member] | Troubled Debt Restructurings Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | ||||
Commercial Construction [Member] | Troubled Debt Restructurings Maturity Or Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | ||||
Commercial Construction [Member] | Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 3,924 | ||||
Commercial Construction [Member] | Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | ||||
Commercial Construction [Member] | Troubled Debt Restructurings Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | [4] | |||
Residential Construction [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 10,037 | 10,894 | |||
Residential Construction [Member] | Troubled Debt Restructurings Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 6,154 | 6,054 | |||
Residential Construction [Member] | Troubled Debt Restructurings Maturity Or Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 337 | 160 | |||
Residential Construction [Member] | Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 3,112 | 3,173 | |||
Residential Construction [Member] | Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 994 | |||
Residential Construction [Member] | Troubled Debt Restructurings Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 434 | [3] | 513 | [4] | |
Land Construction [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 2,470 | 5,325 | |||
Land Construction [Member] | Troubled Debt Restructurings Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 878 | |||
Land Construction [Member] | Troubled Debt Restructurings Maturity Or Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 202 | 2,012 | |||
Land Construction [Member] | Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 1,732 | 1,760 | |||
Land Construction [Member] | Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Land Construction [Member] | Troubled Debt Restructurings Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $536 | [3] | $675 | [4] | |
[1] | Excludes TDR held for sale amounting to $45.7 million as of December 31, 2014. | ||||
[2] | Excludes TDRs held for sale amounting to $45.9 million as of December 31, 2013. | ||||
[3] | Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of the concessions listed in the table. | ||||
[4] | Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of the concessions listed in the table above. |
LOAN_PORTFOLIO_Corporations_TD
LOAN PORTFOLIO - Corporation's TDR Activity (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Schedule Of Financing Receivables [Line Items] | ||||
Beginning Balance of TDRs | $630,258 | [1] | $941,730 | |
New TDRs | 164,108 | 124,424 | ||
Increases to existing TDRs (disbursements) | 1,903 | 2,864 | ||
Charge-offs post modification | -43,916 | -132,595 | ||
Financing Receivable Modifications Sold | -4,500 | -104,915 | ||
Foreclosures | -4,948 | -11,886 | ||
Removed from TDR classification | 0 | -6,764 | ||
TDRs transferred to loans held for sale | 0 | -129,964 | ||
Paid-off and partial payments | -48,452 | -52,636 | ||
Ending balance of TDRs | $694,453 | [2] | $630,258 | [1] |
[1] | Excludes TDRs held for sale amounting to $45.9 million as of December 31, 2013. | |||
[2] | Excludes TDR held for sale amounting to $45.7 million as of December 31, 2014. |
LOAN_PORTFOLIO_Breakdown_Betwe
LOAN PORTFOLIO - Breakdown Between Accrual and Nonaccrual Status of TDRs (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $694,453 | [1] | $630,258 | [2] | $941,730 |
Non Fha Va Residential Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 349,775 | 337,243 | |||
Commercial Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 127,766 | 91,950 | |||
Commercial And Industrial Loan [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 171,926 | 153,575 | |||
Construction Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 12,500 | ||||
Consumer Auto Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 16,991 | 14,122 | |||
Finance Leases [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 2,181 | 2,360 | |||
Other Consumer Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 13,307 | 10,865 | |||
Land Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 2,470 | 5,325 | |||
Residential Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 10,037 | 10,894 | |||
Commercial Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 3,924 | |||
Non Accrual [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 199,813 | [3],[4] | 204,875 | [5],[6] | |
Non Accrual [Member] | Non Fha Va Residential Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 82,965 | [3],[4] | 73,324 | [5],[6] | |
Non Accrual [Member] | Commercial Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 58,392 | [3],[4] | 38,441 | [5],[6] | |
Non Accrual [Member] | Commercial And Industrial Loan [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 40,382 | [3],[4] | 69,156 | [5],[6] | |
Non Accrual [Member] | Consumer Auto Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 6,433 | [3],[4] | 5,610 | [5],[6] | |
Non Accrual [Member] | Finance Leases [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 255 | [3],[4] | 85 | [5],[6] | |
Non Accrual [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 3,161 | [3],[4] | 2,448 | [5],[6] | |
Non Accrual [Member] | Land Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 1,636 | [3],[4] | 4,325 | [5],[6] | |
Non Accrual [Member] | Residential Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 6,589 | [3],[4] | 7,562 | [5],[6] | |
Non Accrual [Member] | Commercial Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | [3],[4] | 3,924 | [5],[6] | |
Accrual [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 494,640 | 425,383 | |||
Accrual [Member] | Non Fha Va Residential Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 266,810 | 263,919 | |||
Accrual [Member] | Commercial Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 69,374 | 53,509 | |||
Accrual [Member] | Commercial And Industrial Loan [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 131,544 | 84,419 | |||
Accrual [Member] | Consumer Auto Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 10,558 | 8,512 | |||
Accrual [Member] | Finance Leases [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 1,926 | 2,275 | |||
Accrual [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 10,146 | 8,417 | |||
Accrual [Member] | Land Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 834 | 1,000 | |||
Accrual [Member] | Residential Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 3,448 | 3,332 | |||
Accrual [Member] | Commercial Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Non Fha Va Residential Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 349,775 | 337,244 | |||
Commercial Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 127,766 | 153,576 | |||
Commercial And Industrial Loan [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 171,926 | 91,951 | |||
Consumer Auto Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 16,991 | 14,122 | |||
Finance Leases [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 2,181 | 2,358 | |||
Other Consumer Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 13,307 | 10,864 | |||
Land Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 2,470 | 5,325 | |||
Residential Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 10,037 | 10,894 | |||
Commercial Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $3,924 | ||||
[1] | Excludes TDR held for sale amounting to $45.7 million as of December 31, 2014. | ||||
[2] | Excludes TDRs held for sale amounting to $45.9 million as of December 31, 2013. | ||||
[3] | B Included in nonaccrual loans are $52.8 million in loans that are performing under the terms of the restructuring agreement B but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance B under the revised terms for reinstatement to accrual status and there is no doubt about full collectability. | ||||
[4] | B Excludes nonaccrual TDRs held for sale with a carrying value of $45.7 million as of December 31, 2014. | ||||
[5] | Included in nonaccrual loans are $95.7 million in loans that are performing under the terms of the restructuring agreementB but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance B under the revised terms for reinstatement to accrual status and there is no doubt about full collectability. | ||||
[6] | Excludes nonaccrual TDRs held for sale with a carrying value of $45.9 million as of December 31, 2013. |
LOAN_PORTFOLIO_Breakdown_Betwe1
LOAN PORTFOLIO - Breakdown Between Accrual and Nonaccrual Status of TDRs (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | |||||
Financing Receivable Modifications [Line Items] | |||||
Total TDR loans | $694,453 | [1] | $630,258 | [2] | $941,730 |
Performing Financing Receivable [Member] | Non Accrual [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Total TDR loans | $52,800 | $95,700 | |||
[1] | Excludes TDR held for sale amounting to $45.7 million as of December 31, 2014. | ||||
[2] | Excludes TDRs held for sale amounting to $45.9 million as of December 31, 2013. |
LOAN_PORTFOLIO_Loan_Modificati
LOAN PORTFOLIO - Loan Modifications are Considered TDRs (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
numberofcontracts | numberofcontracts | |
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 2,462 | 4,557 |
Pre-modification Outstanding Recorded Investment | $165,744 | $251,044 |
Post-Modification Outstanding Recorded Investment | 164,108 | 199,840 |
Non Fha Va Residential Mortgage Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 291 | 17 |
Pre-modification Outstanding Recorded Investment | 40,166 | 6,000 |
Post-Modification Outstanding Recorded Investment | 39,194 | 6,161 |
Commercial Mortgage Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 9 | 27 |
Pre-modification Outstanding Recorded Investment | 2,853 | 79,531 |
Post-Modification Outstanding Recorded Investment | 2,855 | 53,525 |
Commercial And Industrial Loan [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 17 | 0 |
Pre-modification Outstanding Recorded Investment | 105,372 | 0 |
Post-Modification Outstanding Recorded Investment | 105,110 | 0 |
Consumer Auto Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 602 | 75 |
Pre-modification Outstanding Recorded Investment | 8,903 | 1,435 |
Post-Modification Outstanding Recorded Investment | 8,748 | 1,435 |
Finance Leases [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 45 | 1,452 |
Pre-modification Outstanding Recorded Investment | 953 | 6,518 |
Post-Modification Outstanding Recorded Investment | 800 | 6,518 |
Other Consumer Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 1,492 | 2,428 |
Pre-modification Outstanding Recorded Investment | 7,240 | 149,783 |
Post-Modification Outstanding Recorded Investment | 7,182 | 124,424 |
Commercial Construction [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 1 | |
Pre-modification Outstanding Recorded Investment | 195 | |
Post-Modification Outstanding Recorded Investment | 195 | |
Residential Construction [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 0 | 557 |
Pre-modification Outstanding Recorded Investment | 0 | 7,582 |
Post-Modification Outstanding Recorded Investment | 0 | 7,582 |
Land Construction [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 6 | 0 |
Pre-modification Outstanding Recorded Investment | 257 | 0 |
Post-Modification Outstanding Recorded Investment | $219 | $0 |
LOAN_PORTFOLIO_Loan_Modificati1
LOAN PORTFOLIO - Loan Modifications Considered Troubled Debt Restructurings Defaulted (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
numberofcontracts | numberofcontracts | |
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 352 | 139 |
Recorded investment | $16,075 | $63,941 |
Non Fha Va Residential Mortgage Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 55 | 81 |
Recorded investment | 8,087 | 13,415 |
Commercial Mortgage Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 2 | 1 |
Recorded investment | 4,604 | 46,102 |
Commercial And Industrial Loan [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 2 | 2 |
Recorded investment | 1,537 | 3,829 |
Consumer Auto Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 45 | 9 |
Recorded investment | 697 | 86 |
Other Consumer Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 6 | 3 |
Recorded investment | 115 | 38 |
Finance Leases [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 241 | 40 |
Recorded investment | 989 | 219 |
Residential Construction [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 0 | 1 |
Recorded investment | 0 | 186 |
Land Construction [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 1 | 2 |
Recorded investment | $46 | $66 |
LOAN_PORTFOLIO_Loan_Restructur
LOAN PORTFOLIO - Loan Restructuring and Effect on Allowance for Loan and Lease Losses (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $694,453 | [1] | $630,258 | [2] | $941,730 |
Provision for loan and lease losses | 109,530 | 243,751 | 120,499 | ||
Allowance for loan losses as of December 31, 2013 | 222,395 | 285,858 | |||
Loans Split [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 46,032 | 78,342 | |||
Amount charged-off | -7,501 | 20,889 | |||
Provision for loan and lease losses | -8,341 | -4,084 | |||
Allowance for loan losses as of December 31, 2013 | 731 | 1,436 | |||
Accrual [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $494,640 | $425,383 | |||
[1] | Excludes TDR held for sale amounting to $45.7 million as of December 31, 2014. | ||||
[2] | Excludes TDRs held for sale amounting to $45.9 million as of December 31, 2013. |
ALLOWANCE_FOR_LOAN_AND_LEASE_L2
ALLOWANCE FOR LOAN AND LEASE LOSSES - Changes in Allowance for Loan and Lease Losses (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | $285,858 | $435,414 | ||
Charge-offs | -200,316 | -216,410 | ||
Charge-off related to bulk sale | -196,491 | |||
Recoveries | 27,323 | 19,594 | ||
Provision (release) | 109,530 | 243,751 | ||
Reclassification | 0 | [1] | ||
Ending balance | 222,395 | 285,858 | ||
Balance at end of period | 55,205 | 102,601 | 221,749 | |
Ending balance: general allowance | 167,190 | 183,257 | ||
Ending balance | 9,262,436 | 9,636,170 | ||
Ending balance: impaired loans | 945,407 | 919,112 | 1,465,294 | |
Ending balance: purchased credit-impaired loans | 102,604 | 4,791 | ||
Ending balance: loans with general allowance | 8,214,425 | 8,712,267 | ||
Purchased Credit Impaired [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Ending balance: purchased credit-impaired loans | 0 | 0 | ||
Ending balance: impaired loans | 945,407 | |||
Ending balance: purchased credit-impaired loans | 102,604 | 4,791 | ||
Residential Mortgage [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 33,110 | 68,354 | ||
Charge-offs | -24,345 | -30,192 | ||
Charge-off related to bulk sale | -98,972 | |||
Recoveries | 1,049 | 1,165 | ||
Provision (release) | 17,487 | 92,755 | ||
Reclassification | 0 | [1] | ||
Ending balance | 27,301 | 33,110 | ||
Balance at end of period | 10,854 | 18,125 | ||
Ending balance: general allowance | 16,447 | 14,985 | ||
Ending balance | 3,011,187 | 2,549,008 | ||
Ending balance: impaired loans | 424,244 | 410,994 | ||
Ending balance: loans with general allowance | 2,488,449 | 2,138,014 | ||
Residential Mortgage [Member] | Purchased Credit Impaired [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Ending balance: purchased credit-impaired loans | 0 | 0 | ||
Ending balance: purchased credit-impaired loans | 98,494 | 0 | ||
Commercial Mortgage Loans [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 73,138 | 97,692 | ||
Charge-offs | -25,807 | -27,400 | ||
Charge-off related to bulk sale | -40,057 | |||
Recoveries | 10,639 | 4,855 | ||
Provision (release) | -7,076 | 27,357 | ||
Reclassification | 10,691 | [1] | ||
Ending balance | 50,894 | 73,138 | ||
Balance at end of period | 14,289 | 32,189 | ||
Ending balance: general allowance | 36,605 | 40,949 | ||
Ending balance | 1,665,787 | 1,823,608 | ||
Ending balance: impaired loans | 210,738 | 219,372 | ||
Ending balance: loans with general allowance | 1,451,656 | 1,604,236 | ||
Commercial Mortgage Loans [Member] | Purchased Credit Impaired [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Ending balance: purchased credit-impaired loans | 0 | 0 | ||
Ending balance: purchased credit-impaired loans | 3,393 | 0 | ||
Commercial And Industrial Loans [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 85,295 | 146,900 | ||
Charge-offs | -61,935 | -65,171 | ||
Charge-off related to bulk sale | -44,678 | |||
Recoveries | 3,680 | 4,636 | ||
Provision (release) | 36,681 | 53,048 | ||
Reclassification | -9,440 | [1] | ||
Ending balance | 63,721 | 85,295 | ||
Balance at end of period | 21,314 | 26,686 | ||
Ending balance: general allowance | 42,407 | 58,609 | ||
Ending balance | 2,479,437 | 3,028,322 | ||
Ending balance: impaired loans | 236,371 | 187,104 | ||
Ending balance: loans with general allowance | 2,243,066 | 2,841,218 | ||
Commercial And Industrial Loans [Member] | Purchased Credit Impaired [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Ending balance: purchased credit-impaired loans | 0 | 0 | ||
Ending balance: purchased credit-impaired loans | 0 | 0 | ||
Construction Loans [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 35,814 | 61,600 | ||
Charge-offs | -11,533 | -30,539 | ||
Charge-off related to bulk sale | -12,784 | |||
Recoveries | 6,049 | 2,076 | ||
Provision (release) | -17,508 | 16,712 | ||
Reclassification | -1,251 | [1] | ||
Ending balance | 12,822 | 35,814 | ||
Balance at end of period | 2,577 | 22,144 | ||
Ending balance: general allowance | 10,245 | 13,670 | ||
Ending balance | 123,480 | 168,713 | ||
Ending balance: impaired loans | 72,717 | |||
Ending balance: loans with general allowance | 84,013 | 95,996 | ||
Construction Loans [Member] | Purchased Credit Impaired [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Ending balance: purchased credit-impaired loans | 0 | 0 | ||
Ending balance: impaired loans | 39,467 | |||
Ending balance: purchased credit-impaired loans | 0 | 0 | ||
Consumer Loan [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 58,501 | 60,868 | ||
Charge-offs | -76,696 | -63,108 | ||
Charge-off related to bulk sale | 0 | |||
Recoveries | 5,906 | 6,862 | ||
Provision (release) | 79,946 | 53,879 | ||
Reclassification | 0 | [1] | ||
Ending balance | 67,657 | 58,501 | ||
Balance at end of period | 6,171 | 3,457 | ||
Ending balance: general allowance | 61,486 | 55,044 | ||
Ending balance | 1,982,545 | 2,066,519 | ||
Ending balance: impaired loans | 28,925 | |||
Ending balance: loans with general allowance | 1,947,241 | 2,032,803 | ||
Consumer Loan [Member] | Purchased Credit Impaired [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Ending balance: purchased credit-impaired loans | 0 | 0 | ||
Ending balance: impaired loans | 34,587 | |||
Ending balance: purchased credit-impaired loans | $717 | $4,791 | ||
[1] | During the second quarter of 2013, after a comprehensive review of substantially all of the loans in our commercial portfolios, the classification of certain loans was revised to more accurately depict the nature of the underlying loans. This reclassification resulted in a net increase of $269.0 million in commercial mortgage loans, since the principal source of repayment for such loans is derived primarily from the operation of the underlying real estate, with a corresponding decrease of $246.8 million in commercial and industrial loans and a $22.2 million decrease in construction loans. The Corporation evaluated the impact of this reclassification on the provision for loan losses and determined that the effect of this adjustment was not material to any previously reported results. |
ALLOWANCE_FOR_LOAN_AND_LEASE_L3
ALLOWANCE FOR LOAN AND LEASE LOSSES - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Mar. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2014 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Reserve for unfunded loan commitments | $0.20 | |||
Classified And Nonperforming Assets Sold | 217.7 | |||
Changes In Allowance For Loan Losses | -4.8 | |||
Commercial Mortgage [Member] | Net Increase [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Reclassification Of Loans | 269 | |||
Commercial And Industrial [Member] | Net Decrease [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Reclassification Of Loans | 246.8 | |||
Construction Loans [Member] | Net Decrease [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Reclassification Of Loans | $22.20 |
LOANS_HELD_FOR_SALE_Portfolio_
LOANS HELD FOR SALE - Portfolio of Loans Held for Sale (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $76,956 | $75,969 |
Residential Mortgage [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Residential mortgage loans | 22,315 | 21,168 |
Construction Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Construction | 47,802 | 47,802 |
Commercial Mortgage Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Commercial Mortgage | $6,839 | $6,999 |
LOANS_HELD_FOR_SALE_Portfolio_1
LOANS HELD FOR SALE - Portfolio of Loans Held For Sale Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | ||||||
Jun. 21, 2013 | Mar. 28, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Carrying Value of Loans Transferred to Loans Held For Sale | $5,200,000 | |||||||
Loans held for sale | 76,956,000 | 75,969,000 | ||||||
Loans Transferred To Held For Sale | 181,600,000 | |||||||
Non-performing loan sold previously reclassified to Loans Held For Sale | 203,800,000 | 211,400,000 | ||||||
Non Accrual [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Loans held for sale | 54,600,000 | 54,800,000 | ||||||
Construction Loans [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Non-performing loan sold previously reclassified to Loans Held For Sale | 41,300,000 | |||||||
Repayment of construction loans held for sale | 6,400,000 | |||||||
Gain related to the repayment of loans classified as held for sale | 300,000 | |||||||
Construction Loans [Member] | Non Accrual [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Loans held for sale | 47,800,000 | 47,800,000 | ||||||
Commercial Mortgage Loans [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Commercial Mortgage | 6,839,000 | 6,999,000 | ||||||
Non-performing loan sold previously reclassified to Loans Held For Sale | 68,800,000 | 40,800,000 | ||||||
Commercial Mortgage Loans [Member] | Non Accrual [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Commercial Mortgage | $6,800,000 | $7,000,000 |
RELATED_PARTY_TRANSACTIONS_Mov
RELATED PARTY TRANSACTIONS- Movement and balance of these loans (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transactions [Abstract] | ||
Opening Balance | $1,395 | $4,093 |
New loans | 61 | 51 |
Payments | 133 | 750 |
Other changes | 10 | -1,999 |
Closing Balance | $1,333 | $1,395 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY PLANT AND EQUIPMENT (DETAILS) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property Plant And Equipment [Line Items] | |||
Buildings and Improvements | $140,592,000 | $141,836,000 | |
Leasehold Improvements | 63,065,000 | 57,833,000 | |
Furniture and equipment | 161,865,000 | 147,640,000 | |
Property, Plant and Equipment, Gross | 365,522,000 | 347,309,000 | |
Accumulated Depreciation | -232,272,000 | -216,170,000 | |
Subtotal | 133,250,000 | 131,139,000 | |
Land | 25,655,000 | 25,655,000 | |
Projects in progress | 8,021,000 | 10,152,000 | |
Premises and equipment, net | 166,926,000 | 166,946,000 | |
Depreciation and amortization expense | 21,000,000 | 24,000,000 | 24,200,000 |
Other Assets Held For Sale | 0 | 2,225,000 | 0 |
Charge Related To Reclassification Of Certain Fixed Assets To Other Assets Held For Sale | $500,000 | ||
Maximum [Member] | FurnitureAndFixturesMember | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years 0 months 0 days | ||
Maximum [Member] | BuildingImprovementsMember | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 35 years 0 months 0 days | ||
Maximum [Member] | LeaseholdImprovementsMember | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years 0 months 0 days | ||
Minimum [Member] | FurnitureAndFixturesMember | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 2 years 0 months 0 days | ||
Minimum [Member] | BuildingImprovementsMember | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years 0 months 0 days | ||
Minimum [Member] | LeaseholdImprovementsMember | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 1 year 0 months 0 days |
GOODWILL_AND_OTHER_INTANGIBLES2
GOODWILL AND OTHER INTANGIBLES - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | |
Finite Lived Intangible Assets [Line Items] | ||||
Goodwill | $28,100,000 | $28,100,000 | ||
Purchase credit card relationship intangible amount | 24,500,000 | |||
Amortization expense | 4,943,000 | 6,078,000 | 3,306,000 | |
Purchased Credit Card Relationship Intangible [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Purchase credit card relationship intangible amount | 24,465,000 | 24,465,000 | ||
Amortization period of purchased credit card relationship intangible | 6 years 10 months 24 days | 8 years 0 months 0 days | ||
Core Deposits [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Purchase credit card relationship intangible amount | $45,844,000 | $45,844,000 | ||
Amortization period of purchased credit card relationship intangible | 8 years 4 months 24 days | 9 years 9 months 18 days |
GOODWILL_AND_OTHER_INTANGIBLES3
GOODWILL AND OTHER INTANGIBLES - Gross Amount and Accumulated Amortization of Other Intangible Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2012 |
Finite Lived Intangible Assets [Line Items] | |||
Gross amount | $24,500 | ||
Goodwill and other Intangible Assets [Abstract] | |||
2014 | 4,439 | ||
2015 | 4,157 | ||
2016 | 3,595 | ||
2017 | 2,711 | ||
2018 and after | 6,907 | ||
Core Deposits [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross amount | 45,844 | 45,844 | |
Accumulated amortization | -40,424 | -38,863 | |
Net carrying amount | 5,420 | 6,981 | |
Remaining amortization period | 8 years 4 months 24 days | 9 years 9 months 18 days | |
Purchased Credit Card Relationship Intangible [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross amount | 24,465 | 24,465 | |
Accumulated amortization | -8,076 | -4,678 | |
Net carrying amount | $16,389 | $19,787 | |
Remaining amortization period | 6 years 10 months 24 days | 8 years 0 months 0 days |
NONCONSOLIDATED_VARIABLE_INTER2
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | |||||
Feb. 16, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Apr. 30, 2004 | Sep. 30, 2004 | |
Servicing Liabilities At Fair Value [Line Items] | ||||||||
Principal amount of corporation serviced loans securitized through GNMA | $1,100,000,000 | |||||||
Balance of amortization with third party | 45,700,000 | |||||||
Carrying value with third party | 33,500,000 | |||||||
Percentage of weighted average yield with third party | 2.17% | |||||||
Acquired Equity interest on disposal of loans held for sale | 35.00% | |||||||
Loans acquired on exchange of loan held for sale | 136,100,000 | |||||||
Maturity period of loan acquired | 7 years 0 months 0 days | |||||||
Description of loan | 30-day LIBOR plus 300 basis points | |||||||
Estimated life of investment | 5 years 0 months 0 days | |||||||
Equity in losses of unconsolidated entities related to the amortization | 1,800,000 | |||||||
Line of credit facility provided to fund unfunded commitments | 80,000,000 | |||||||
Working capital line of credit to fund certain expenses | 7,000,000 | 20,000,000 | ||||||
Interest rate on loan provided | 30-day LIBOR plus 300 basis points | |||||||
Revolver agreement of credit facility provided amount outstanding | 30,400,000 | |||||||
Working capital line of credit facility provided amount outstanding | 0 | |||||||
Percentage of priority interest to be received on invested capital | 12.00% | |||||||
Discount rate use for calculation of fair value investment | 17.57% | |||||||
Percentage of variation in assumptions | 10.00% | |||||||
Debt Instrument Description Of Variable Rate Basis | 90-day LIBOR | |||||||
Percentage Of Trust Preferred Securities That Qualify As Tier1 Capital | 0.00% | 25.00% | ||||||
Interest Expense Accrued Trust Preferred Securities | 21,900,000 | |||||||
Working Capital Line Expiration Period | 2 years 0 months 0 days | |||||||
Minimum [Member] | ||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||
Discount rate use for calculation of fair value investment | 10.00% | |||||||
Maximum [Member] | ||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||
Percentage of variation in assumptions | 20.00% | |||||||
Junior Subordinated Deferrable Debentures [Member] | ||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||
Junior subordinated deferrable debentures issued | 100,000,000 | 125,000,000 | ||||||
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Seventy Five [Member] | ||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||
Subordinated Borrowing Due Date | 17-Jun-34 | |||||||
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Fifty Percent [Member] | ||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||
Subordinated Borrowing Due Date | 20-Sep-34 | |||||||
Fbp Statutory Trust One [Member] | ||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||
Variable rate trust preferred securities | 100,000,000 | |||||||
Proceeds of the issuance, together with proceeds of the purchase | 3,100,000 | |||||||
Principal amount of corporation's junior subordinated deferrable debentures | 103,100,000 | |||||||
Subordinated Borrowing Due Date | 17-Jun-34 | |||||||
Fbp Statutory Trust Two [Member] | ||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||
Variable rate trust preferred securities | 125,000,000 | |||||||
Proceeds of the issuance, together with proceeds of the purchase | 3,900,000 | |||||||
Principal amount of corporation's junior subordinated deferrable debentures | 128,900,000 | |||||||
Subordinated Borrowing Due Date | 20-Sep-34 | |||||||
Cpg Gs [Member] | ||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||
Loans Sold to CPG | 269,300,000 | |||||||
Cash realized on sale of loan | 88,500,000 | |||||||
Carrying amount of loan provided | $25,200,000 | |||||||
Prlp [Member] | ||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||
Percentage of ownership investment in unconsolidated entity | 65.00% | |||||||
Payment to be made on pro rata basis | 35.00% | |||||||
FirstBank [Member] | ||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||
Payment to be made on pro rata basis | 65.00% |
NONCONSOLIDATED_VARIABLE_INTER3
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Income Statement Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Variable Interest Entity [Line Items] | |||
Revenues | $695,297 | $630,299 | $687,168 |
Net income (loss) | $392,287 | ($164,487) | $29,782 |
NONCONSOLIDATED_VARIABLE_INTER4
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Changes in Servicing Assets (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Servicing Assets At Amortized Value [Line Items] | ||||||
Balance at beginning of period | $21,987 | $17,524 | $15,226 | |||
Capitalization of servicing assets | 4,321 | 7,649 | 6,348 | |||
Amortization | -3,156 | -3,289 | -3,014 | |||
Adjustment to servicing assets for loans repurchased | -86 | [1] | -357 | [1] | -642 | [1] |
Adjustment to fair value | -228 | 460 | -394 | |||
Balance at end of period | $22,838 | $21,987 | $17,524 | |||
[1] | B Amount represents the adjustment to fair value related to the repurchase of loans serviced for others. |
NONCONSOLIDATED_VARIABLE_INTER5
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Changes in Impairment Allowance (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation Allowance For Impairment Of Recognized Servicing Assets [Line Items] | |||
Balance at beginning of period | $212 | $672 | $2,725 |
Temporary impairment charges | 343 | 277 | 763 |
OTTI of servicing assets | -385 | 0 | -2,447 |
Recoveries | -115 | -737 | -369 |
Balance at end of period | $55 | $212 | $672 |
NONCONSOLIDATED_VARIABLE_INTER6
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Components of Net Servicing Income (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Servicing fees | $6,999 | $7,164 | $5,650 | |||
Late charges and prepayment penalties | 695 | 701 | 642 | |||
Other | -1,253 | [1] | -407 | [1] | 0 | [1] |
Adjustment to servicing assets for loans repurchased | -86 | [2] | -357 | [2] | -642 | [2] |
Servicing income, gross | 6,355 | 7,101 | 5,650 | |||
Amortization and impairment of servicing assets | -3,384 | -2,829 | -3,408 | |||
Servicing income, net | $2,971 | $4,272 | $2,242 | |||
[1] | (1) Mainly consisted of compensatory fees imposed by GSEs and losses related to representations and warranties. | |||||
[2] | B Amount represents the adjustment to fair value related to the repurchase of loans serviced for others. |
NONCONSOLIDATED_VARIABLE_INTER7
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Key Economic Assumptions Used in Determining Fair Value at Time of Sale of Loans (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Government Guaranteed Mortgage Loans [Member] | Maximum [Member] | |||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | |||
Constant prepayment rate | 9.60% | 10.50% | 12.40% |
Discount rate | 11.50% | 12.00% | 12.00% |
Government Guaranteed Mortgage Loans [Member] | Minimum [Member] | |||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | |||
Constant prepayment rate | 9.10% | 8.90% | 11.60% |
Discount rate | 11.50% | 11.50% | 12.00% |
Conventional Loan [Member] | Maximum [Member] | |||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | |||
Constant prepayment rate | 9.40% | 10.90% | 12.80% |
Discount rate | 9.50% | 10.00% | 10.00% |
Conventional Loan [Member] | Minimum [Member] | |||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | |||
Constant prepayment rate | 8.90% | 8.70% | 12.30% |
Discount rate | 9.50% | 9.50% | 10.00% |
Conventional Non Conforming Mortgage Loans [Member] | Maximum [Member] | |||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | |||
Constant prepayment rate | 14.00% | 14.30% | 13.80% |
Discount rate | 13.90% | 14.30% | 14.30% |
Conventional Non Conforming Mortgage Loans [Member] | Minimum [Member] | |||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | |||
Constant prepayment rate | 12.70% | 12.30% | 13.30% |
Discount rate | 13.80% | 13.80% | 14.30% |
NONCONSOLIDATED_VARIABLE_INTER8
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Weighted-Averages of Key Economic Assumptions in Valuation Model (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Carrying amount of servicing assets | $22,838 | $21,987 | $17,524 | $15,226 |
Fair value | 24,932 | |||
Weighted-average expected life | 8 years 10 months 6 days | |||
Decrease in fair value due to 10% adverse change | 936 | |||
Decrease in fair value due to 20% adverse change | 1,813 | |||
Decrease in fair value due to 10% adverse change | 1,037 | |||
Decrease in fair value due to 20% adverse change | $1,996 | |||
Weighted Average [Member] | ||||
Constant prepayment rate | 9.74% | |||
Discount rate | 10.60% |
DEPOSITS_Narratives_Detail
DEPOSITS - Narratives (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deposits [Line Items] | |||
weighted average interest rate on total interest-bearing deposits | 0.82% | 0.93% | |
Overdrafts in demand deposits that were reclassified as loans | $800,000 | $2,600,000 | |
CDs in denominations of $100,000 or higher | 4,300,000,000 | 4,700,000,000 | |
Brokered certificates of deposit | 2,887,046,000 | 3,142,023,000 | |
Unamortized broker placement fees | 6,100,000 | 9,100,000 | |
Deposit accounts issued to government agencies with a carrying value | 9,483,945,000 | 9,879,924,000 | |
Amortization Of Broker Placement Fees | 6,662,000 | 7,900,000 | 9,869,000 |
Certificate Of Deposits Denominations | 100,000 | ||
Public Funds Withdrawn Amount | 341,600,000 | ||
Amortized Cost [Member] | |||
Deposits [Line Items] | |||
Deposit Liabilities Collateral Issued Financial Instruments | 634,000,000 | 784,000,000 | |
Market Value [Member] | |||
Deposits [Line Items] | |||
Deposit Liabilities Collateral Issued Financial Instruments | 624,800,000 | 761,900,000 | |
Brokered Certificate of Deposits [Member] | |||
Deposits [Line Items] | |||
Weighted Average Interest Rate of Time Deposits, $100,000 or More | 0.77% | 0.97% | |
Government [Member] | |||
Deposits [Line Items] | |||
Deposit accounts issued to government agencies with a carrying value | 400,700,000 | 705,800,000 | |
Government [Member] | Puerto Rico [Member] | |||
Deposits [Line Items] | |||
Deposit accounts issued to government agencies with a carrying value | 227,400,000 | 546,500,000 | |
Government [Member] | Virgin Islands [Member] | |||
Deposits [Line Items] | |||
Deposit accounts issued to government agencies with a carrying value | $173,300,000 | $159,300,000 |
DEPOSITS_Summary_of_Deposit_Ba
DEPOSITS - Summary of Deposit Balances (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits [Line Items] | ||
Non-interest bearing checking accounts | $900,616 | $851,212 |
Savings accounts | 2,450,484 | 2,334,831 |
Interest-bearing checking accounts | 1,054,136 | 1,167,480 |
Certificates of deposit | 2,191,663 | 2,384,378 |
Brokered certificates of deposit | 2,887,046 | 3,142,023 |
Total deposits | 9,483,945 | 9,879,924 |
Remaining term of Maturiy, Brokdered Deposits [Abstract] | ||
Over one year to two years | 1,304,563 | |
Over two years to three years | 326,771 | |
Over three years to four years | 133,303 | |
Over four years to five years | 45,670 | |
Over five years | 36,256 | |
Total | $1,846,563 |
DEPOSITS_Summary_of_Deposits_B
DEPOSITS - Summary of Deposits Balance (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Bearing Deposit [Member] | Minimum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 0.10% | 0.25% |
Interest Bearing Deposit [Member] | Maximum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 1.06% | 1.06% |
Savings Deposits [Member] | Minimum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 0.05% | 0.20% |
Savings Deposits [Member] | Maximum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 0.85% | 1.00% |
Certificate Of Deposits [Member] | Minimum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 0.10% | 0.10% |
Certificate Of Deposits [Member] | Maximum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 5.00% | 5.00% |
Brokered Certificate of Deposits [Member] | Minimum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 0.20% | 0.45% |
Brokered Certificate of Deposits [Member] | Maximum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 4.70% | 4.94% |
DEPOSITS_Brokered_Certificates
DEPOSITS - Brokered Certificates Of Deposit Mature (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | $2,887,046 | $3,142,023 |
Brokered Certificates Of Deposit Mature In One To Ninety Days [Member] | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 361,594 | |
Brokered Certificates Of Deposit Mature In Over Ninety Days To One Year [Member] | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 1,473,840 | |
Brokered Certificates Of Deposit Mature In One To Three Years [Member] | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 956,783 | |
BrokeredCertificatesOfDepositMatureInThreeToFiveYears [Member] | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 58,795 | |
BrokeredCertificatesOfDepositMatureInOverFiveYears [Member] | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | $36,034 |
DEPOSITS_Interest_Expenses_on_
DEPOSITS - Interest Expenses on deposits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Expense, Deposits [Abstract] | |||
Interest-bearing checking accounts | $6,446 | $8,419 | $9,421 |
Savings | 15,416 | 15,852 | 17,382 |
Certificates of deposit | 26,371 | 29,264 | 34,602 |
Brokered certificates of deposit | 29,894 | 38,252 | 66,854 |
Interest expense on deposits | $78,127 | $91,787 | $128,259 |
SECURITIES_SOLD_UNDER_AGREEMEN2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Narratives (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||||
Weighted-average interest rates on repurchase agreements | 3.24% | 2.83% | |||
Maximum aggregate balance outstanding | $900,000,000 | [1] | $900,000,000 | [1] | |
Gain Loss On Sale Of Securities Net | 262,000 | -42,000 | 36,000 | ||
Repurchase Agreements [Member] | |||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||||
Accrued interest payable on repurchase agreements | 5,200,000 | 4,500,000 | |||
Weighted average interest rate | 3.00% | 2.88% | |||
Callable Repurchase Agreements [Member] | |||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||||
Weighted-average interest rates on repurchase agreements | 3.30% | ||||
Maximum [Member] | |||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||||
Maximum aggregate balance outstanding | 900,000,000 | 900,000,000 | |||
Average[Member] | |||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||||
Average balance outstanding | $900,000,000 | $900,000,000 | |||
[1] | As of December 31, 2014, includes $800 million with an average rate of 3.30%, and that lenders have the right to call before their contractual maturitiesat various dates beginning on January 9, 2015. Subsequent to December 31, 2014, no lender has exercised its call option on repurchase agreements.In addition, $500 million of the $900 million is tied to variable rates. |
SECURITIES_SOLD_UNDER_AGREEMEN3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities Sold Under Agreements to Repurchase (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Repurchase agreements, interest ranging from 2.45% to 3.52% (December 31, 2011 - 2.50% to 4.40%) | $900,000 | [1] | $900,000 | [1] |
[1] | As of December 31, 2014, includes $800 million with an average rate of 3.30%, and that lenders have the right to call before their contractual maturitiesat various dates beginning on January 9, 2015. Subsequent to December 31, 2014, no lender has exercised its call option on repurchase agreements.In addition, $500 million of the $900 million is tied to variable rates. |
SECURITIES_SOLD_UNDER_AGREEMEN4
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities Sold Under Agreements to Repurchase (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Assets sold under agreements to repurchase interest rate | 3.24% | 2.83% | ||
Securities Sold Under Agreements To Repurchase | $900,000 | [1] | $900,000 | [1] |
Maximum [Member] | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Assets sold under agreements to repurchase interest rate | 4.50% | 3.32% | ||
Minimum [Member] | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Assets sold under agreements to repurchase interest rate | 2.45% | 2.45% | ||
[1] | As of December 31, 2014, includes $800 million with an average rate of 3.30%, and that lenders have the right to call before their contractual maturitiesat various dates beginning on January 9, 2015. Subsequent to December 31, 2014, no lender has exercised its call option on repurchase agreements.In addition, $500 million of the $900 million is tied to variable rates. |
SECURITIES_SOLD_UNDER_AGREEMEN5
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Schedule of Repurchase Agreement Maturity (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Repurchase Agreement [Line Items] | ||||
Securities Sold Under Agreements To Repurchase | $900,000 | [1] | $900,000 | [1] |
Securities Sold Under Agreements To Repurchase Mature Three Year To Five Years [Member] | ||||
Repurchase Agreement [Line Items] | ||||
Securities Sold Under Agreements To Repurchase | 200,000 | |||
Securities Sold Under Agreements To Repurchase Mature Less Than Three Years [Member] | ||||
Repurchase Agreement [Line Items] | ||||
Securities Sold Under Agreements To Repurchase | $700,000 | |||
[1] | As of December 31, 2014, includes $800 million with an average rate of 3.30%, and that lenders have the right to call before their contractual maturitiesat various dates beginning on January 9, 2015. Subsequent to December 31, 2014, no lender has exercised its call option on repurchase agreements.In addition, $500 million of the $900 million is tied to variable rates. |
SECURITIES_SOLD_UNDER_AGREEMEN6
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Schedule of Repurchase Agreement Maturity (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Repurchase Agreement [Line Items] | ||||
Securities Sold Under Agreements To Repurchase | $900,000 | [1] | $900,000 | [1] |
Callable Repurchase Agreements [Member] | ||||
Repurchase Agreement [Line Items] | ||||
Securities Sold Under Agreements To Repurchase | 800,000 | |||
Variable Rate [Member] | ||||
Repurchase Agreement [Line Items] | ||||
Securities Sold Under Agreements To Repurchase | $500,000 | |||
[1] | As of December 31, 2014, includes $800 million with an average rate of 3.30%, and that lenders have the right to call before their contractual maturitiesat various dates beginning on January 9, 2015. Subsequent to December 31, 2014, no lender has exercised its call option on repurchase agreements.In addition, $500 million of the $900 million is tied to variable rates. |
SECURITIES_SOLD_UNDER_AGREEMEN7
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities sold under agreements to repurchase, Underlying Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amortized Cost of Underlying Securities | $1,022,627 | $1,070,844 |
Balance of Borrowings | 900,000 | 900,000 |
Approximate Fair Value of Underlying Securities | 1,025,966 | 1,042,482 |
Weighted-average interest rates on repurchase agreements | 3.24% | 2.83% |
Interest Receivable | 50,796 | 54,012 |
Repurchase Agreements [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest Receivable | 2,846 | 2,925 |
US Treasury Securities And Obligations Of Other US Government Sponsored Agencies [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amortized Cost of Underlying Securities | 170,495 | 212,218 |
Balance of Borrowings | 150,051 | 178,360 |
Approximate Fair Value of Underlying Securities | 166,320 | 198,968 |
US Treasury Securities And Obligations Of Other US Government Sponsored Agencies [Member] | Repurchase Agreements [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Weighted-average interest rates on repurchase agreements | 1.27% | 1.31% |
Mortgage Backed Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amortized Cost of Underlying Securities | 852,132 | 858,626 |
Balance of Borrowings | 749,949 | 721,640 |
Approximate Fair Value of Underlying Securities | $859,646 | $843,514 |
Mortgage Backed Securities [Member] | Repurchase Agreements [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Weighted-average interest rates on repurchase agreements | 2.53% | 2.59% |
SECURITIES_SOLD_UNDER_AGREEMEN8
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Repurchase Agreements Grouped by Counterparty (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Repurchase Agreement Counterparty [Line Items] | ||||
Maximum aggregate balance outstanding | $900,000 | [1] | $900,000 | [1] |
Citigroup Global Markets [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Maximum aggregate balance outstanding | 300,000 | |||
Weighted-Average Maturity | 1 year 9 months 29 days | |||
Jp Morgan Chase [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Maximum aggregate balance outstanding | 200,000 | |||
Weighted-Average Maturity | 2 years 2 months 1 day | |||
Dean Witter Morgan Stanley [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Maximum aggregate balance outstanding | 100,000 | |||
Weighted-Average Maturity | 2 years 9 months 29 days | |||
Credit Suisse First Boston [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Maximum aggregate balance outstanding | $300,000 | |||
Weighted-Average Maturity | 3 years 0 months 0 days | |||
[1] | As of December 31, 2014, includes $800 million with an average rate of 3.30%, and that lenders have the right to call before their contractual maturitiesat various dates beginning on January 9, 2015. Subsequent to December 31, 2014, no lender has exercised its call option on repurchase agreements.In addition, $500 million of the $900 million is tied to variable rates. |
ADVANCES_FROM_THE_FEDERAL_HOME2
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Narratives (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Minimum amount of qualifying mortgage collateral with a market value, percent | 125.00% | |
Loans Pledged As Collateral Fair Value | $812.60 | $764.60 |
Carrying value of mortgage loans | 1,600 | 1,700 |
Additional capacity on credit facility based on collateral pledged at the FHLB | 487.6 | |
Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Carrying value of mortgage loans | $1,100 | $988 |
ADVANCES_FROM_THE_FEDERAL_HOME3
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Summary of Advances from FHLB (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Short Term Debt [Line Items] | ||
Fixed-rate advances from FHLB, with a weighted-average interest rate of 2.31% (December 31, 2011 - 3.59%) | $325,000 | $300,000 |
ADVANCES_FROM_THE_FEDERAL_HOME4
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Summary of Advances from FHLB (Parenthetical) (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Short Term Debt [Line Items] | ||
Weighted-average interest rate | 1.17% | 1.11% |
ADVANCES_FROM_THE_FEDERAL_HOME5
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Advances from FHLB Mature (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Federal Home Loan Bank Advances | $325,000 | $300,000 |
Federal Home Loan Bank Advances Maturities Due From One To Three Years [Member] | ||
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Federal Home Loan Bank Advances | 300,000 | |
FederalHomeLoanBankAdvancesMaturitiesDueFromThreeToFiveYears [Member] | ||
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Federal Home Loan Bank Advances | $25,000 |
OTHER_BORROWINGS_Components_of
OTHER BORROWINGS - Components of Other Borrowings (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures due in 2034 | $231,959 | $231,959 |
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Seventy Five [Member] | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures due in 2034 | 103,093 | 103,093 |
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Fifty Percent [Member] | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures due in 2034 | $128,866 | $128,866 |
OTHER_BORROWINGS_Components_of1
OTHER BORROWINGS - Components of Other Borrowings (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Seventy Five [Member] | ||
Debt Instrument [Line Items] | ||
Floating Interest rate on junior subordinated debentures | 2.99% | 2.99% |
Subordinated Borrowing Due Date | 17-Jun-34 | |
Callable step-rate notes rate | 2.75% | |
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Fifty Percent [Member] | ||
Debt Instrument [Line Items] | ||
Floating Interest rate on junior subordinated debentures | 2.75% | 2.75% |
Subordinated Borrowing Due Date | 20-Sep-34 | |
Callable step-rate notes rate | 2.50% |
EARNINGS_PER_COMMON_SHARE_Calc
EARNINGS PER COMMON SHARE - Calculations of Earnings Per Common Share (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Net Income (Loss): | ||||||
Net income (loss) | $392,287 | ($164,487) | $29,782 | |||
Preferred Stock Redemption Discount | 1,659 | [1] | 0 | [1] | 0 | [1] |
Net income (loss) attributable to common stockholders | 393,946 | -164,487 | 29,782 | |||
Net income (loss) attributable to common stockholder, diluted | 393,946 | -164,487 | 29,782 | |||
Weighted-Average Shares: | ||||||
Basic weighted-average common shares outstanding | 208,752 | 205,542 | 205,366 | |||
Average potential common shares | 1,788 | 0 | 462 | |||
Diluted weighted-average number of common shares outstanding | 210,540 | 205,542 | 205,828 | |||
Income (loss) per common share: | ||||||
Basic | $1.89 | ($0.80) | $0.15 | |||
Diluted | $1.87 | ($0.80) | $0.14 | |||
Retained Earnings [Member] | ||||||
Net Income (Loss): | ||||||
Net income (loss) | 392,287 | -164,487 | 29,782 | |||
Preferred Stock Redemption Discount | $1,659 | $0 | $0 | |||
[1] | Excess of carrying amount of the Series A through E preferred stock exchanged over the fair value of new common shares issued in 2014. |
EARNINGS_PER_COMMON_SHARE_Addi
EARNINGS PER COMMON SHARE - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Earnings Per Share Diluted [Line Items] | |||
Common stock, shares issued | 207,635,157 | 213,724,749 | |
Liquidation value per share | $25 | ||
Restricted Stock [Member] | |||
Earnings Per Share Diluted [Line Items] | |||
Unvested shares of restricted stock | 1,411,185 | 2,327,156 | |
Stock Options [Member] | |||
Earnings Per Share Diluted [Line Items] | |||
Antidilutive effect on earnings per share | 101,435 | 113,158 | |
Warrant [Member] | |||
Earnings Per Share Diluted [Line Items] | |||
Antidilutive effect on earnings per share | 1,285,899 |
STOCKBASED_COMPENSATION_Additi
STOCK-BASED COMPENSATION - Additional Information (Detail) (USD $) | 12 Months Ended | 121 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 21, 2007 | Dec. 31, 2012 | Apr. 29, 2008 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Authorized granting up shares | 579,740 | ||||
Percentage of common shares outstanding above which option granted cannot exceed | 20.00% | ||||
Maximum term to exercise options | 10 years 0 months 0 days | ||||
Restricted stock issued on the employees | 1,219,711 | ||||
Number of vested shares | 43,522 | ||||
Stock Issued During Period Value Restricted Stock Award Forfeitures | $0.10 | ||||
Treasury Stock Shares Acquired | 173,870 | 71,326 | |||
Board Of Directors [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock issued on the employees | 379,573 | ||||
Restricted stock vesting period | 1 year 0 months 0 days | ||||
Senior Management [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock issued on the employees | 840,138 | 716,405 | |||
First Fifty Percent Vesting Period | 2 years 0 months 0 days | 2 years 0 months 0 days | |||
Remaining Fifty Percent Vesting Period | 3 years 0 months 0 days | 3 years 0 months 0 days | |||
Maximum [Member] | Board Of Directors [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock vesting period | 5 years 0 months 0 days | ||||
Minimum [Member] | Board Of Directors [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock vesting period | 1 year 0 months 0 days | ||||
Senior Executives [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted shares | 312,850 | 220,639 | |||
Share based compensation cost | 1.7 | 1.4 | |||
Weighted-Average Grant Date Fair Value, Granted restricted stock | $5.20 | 6.23 | |||
Treasury Stock Shares Acquired | 105,000 | 71,326 | |||
Omnibus Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Authorized granting up shares | 8,169,807 | ||||
Troubled Asset Relief Program [Member] | Senior Management [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted Stock Vested Subject To Tarp Percentage | 25.00% | ||||
Troubled Asset Relief Program [Member] | U S Treasury And Government [Member] | Senior Management [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock issued on the employees | 653,138 | 582,905 | |||
Percentage increments repayment under TARP | 25.00% | ||||
Holding Period By The Us Treasury Of Outstanding Common Stock | 2 years 0 months 0 days | ||||
Percentage Of Appreciation | 16.00% | 13.00% | |||
Fair Value Of Restricted Stock Granted | $2.63 | 3.02 | |||
Restricted Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share based compensation cost | 2.6 | 1.6 | 0.9 | ||
Number of vested shares | -263,650 | ||||
Stock based compensation expense unrecognized related to nonvested shares of restricted stock | $3.90 | ||||
Period for cost recognition not yet recognized | 2 years 1 month 6 days | ||||
Treasury Stock Shares Acquired | 68,870 | ||||
Restricted Stock [Member] | Omnibus Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted-Average Grant Date Fair Value, Granted restricted stock | $3.75 | ||||
Restricted Stock [Member] | Omnibus Plan [Member] | Board Of Directors [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock issued on the employees | 26,780 | ||||
First Fifty Three Percentage Restricted Stock Nonvest Awards [Member] | Senior Management [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of Share vest during period | 50.00% | 50.00% | |||
Other Fifty Percentage Restricted Stock Nonvest Awards [Member] | Senior Management [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of Share vest during period | 50.00% | 50.00% |
STOCKBASED_COMPENSATION_Activi
STOCK-BASED COMPENSATION - Activity of Stock Options (Detail) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of options, Beginning of year | 101,435 |
Number of Options, expired | -12,795 |
Number of Options, cancelled | -6,065 |
Number of options, End of period outstanding and exercisable | 82,575 |
Weighted-Average Exercise Price, beginning of year | $206.95 |
Weighted-Average Exercise Price, Options expired | $321.75 |
Weighted-Average Exercise Price, Options cancelled | $226.15 |
Weighted-Average Exercise Price, End of period outstanding and exercisable | $187.75 |
Weighted- Average Remaining Contractual Term (Years),End of period outstanding and exercisable | 1 year 4 months 24 days |
Aggregate Intrinsic Value, End of period outstanding and exercisable | $0 |
STOCKBASED_COMPENSATION_Restri
STOCK-BASED COMPENSATION - Restricted Stock Activity Under Omnibus Plan (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted shares of restricted stock | 1,219,711 | |
Forefeited | 58,985 | |
Number of vested shares | 43,522 | |
Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Forefeited | -40,090 | |
Number of vested shares | -263,650 | |
Weighted-Average Grant Date Fair Value, beginning of period | 3.04 | |
Weighted-Averages Grant Date Dair Value, Forefeitures | 3.53 | |
Weighted-Average Grant Date Fair Value, Vested restricted stock | 3.31 | |
Weighted-Average Grant Date Fair Value, end of period | 3.39 | |
Omnibus Plan [Member] | Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted-Average Grant Date Fair Value, Granted restricted stock | 3.75 |
STOCKHOLDERS_EQUITY_Narratives
STOCKHOLDERS' EQUITY - Narratives (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Class Of Stock [Line Items] | ||
Preferred Stock Liquidation Preference | $25 | |
Par amount of the shares issued as common stock, Aggregate value | $21,372,000 | $20,764,000 |
Preferred Stock Value | 36,104,000 | 63,047,000 |
Common Stock Shares Authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 213,724,749 | 207,635,157 |
Preferred Stock Shares Issued | 22,004,000 | 22,004,000 |
Shares of common stock repurchased | 173,870 | 71,326 |
Replenishment of the reserve fund required of at least of the original capital contributed, percent | 20.00% | |
Legal Reserve Surplus | $40,000,000 | $0 |
Restricted Stock [Member] | ||
Class Of Stock [Line Items] | ||
Shares of common stock repurchased | 68,870 | |
Senior Executives [Member] | ||
Class Of Stock [Line Items] | ||
Shares of common stock repurchased | 105,000 | 71,326 |
STOCKHOLDERS_EQUITY_Additional
STOCKHOLDERS' EQUITY - Additional Information (Detail) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 11, 2013 | Mar. 09, 2015 | Aug. 16, 2013 | |
Class Of Stock [Line Items] | ||||||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | ||||
Common stock, shares issued | 213,724,749 | 207,635,157 | ||||
Common stock, shares outstanding | 212,984,700 | 207,068,978 | ||||
Granted shares of restricted stock | 1,219,711 | |||||
Corporation has authorized shares of preferred stock | 50,000,000 | 50,000,000 | ||||
Preferred stock, par value | $1 | |||||
Liquidation value per share | $25 | |||||
Repurchased of common stock | 173,870 | 71,326 | ||||
Stock repurchase plan treasury stock | 740,049 | 566,179 | ||||
Proceeds From Issuance Of Common Stock | $0 | $0 | $1,037,000 | |||
Purchase Of Common Stock Secondary Offering | 2,900,000 | |||||
Secondaring Offering Expenses | 1,700,000 | |||||
Forefeited | 58,985 | |||||
Number of vested shares | 43,522 | |||||
Underwriting Discounts And Commisions [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Secondaring Offering Expenses | 1,100,000 | |||||
Common Stock [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Common stock sold | $0 | $0 | $29,000 | |||
Minimum [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Legal surplus reserve rate | 10.00% | |||||
Restricted Stock [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Repurchased of common stock | 68,870 | |||||
Forefeited | -40,090 | |||||
Number of vested shares | -263,650 | |||||
Thomas H Lee Partners [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Percentage Of Stock Ownership | 19.70% | |||||
Secondary Offering Of Common Stock | 8,000,000 | |||||
Purchase Of Common Stock Secondary Offering | 840,903 | |||||
Oaktree Capital Management [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Percentage Of Stock Ownership | 19.70% | |||||
Secondary Offering Of Common Stock | 8,000,000 | |||||
Purchase Of Common Stock Secondary Offering | 840,904 | |||||
Department Of Treasury [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Percentage Of Stock Ownership | 4.80% | |||||
Secondary Offering Of Common Stock | 12,000,000 | |||||
Purchase Of Common Stock Secondary Offering | 1,261,356 | |||||
Common Stock Held | 10,291,553 | |||||
7.125% Noncumulative Perpetual Monthly Income Preferred Stock, Series A [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock dividend rate percentage | 7.13% | |||||
8.35% Noncumulative Perpetual Monthly Income Preferred Stock, Series B [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock dividend rate percentage | 8.35% | |||||
7.40% Noncumulative Perpetual Monthly Income Preferred Stock, Series C [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock dividend rate percentage | 7.40% | |||||
7.25% Noncumulative Perpetual Monthly Income Preferred Stock, Series D [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock dividend rate percentage | 7.25% | |||||
7.00% Noncumulative Perpetual Monthly Income Preferred Stock, Series E [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock dividend rate percentage | 7.00% |
STOCKHOLDERS_EQUITY_Exchange_o
STOCKHOLDERS' EQUITY - Exchange offer with respect to Series A through E preferred stock (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Class Of Stock [Line Items] | ||
Liquidation value per share | $25 | |
Preferred stock, shares outstanding | 1,444,146 | 2,521,872 |
Preferred Stock Value | $36,104 | $63,047 |
Exchange Of Preferred Stock Series For Common Stock [Member] | ||
Class Of Stock [Line Items] | ||
Preferred stock, shares outstanding | 2,521,872 | |
Shares of preferred stock exchanged | 1,077,726 | |
Preferred Stock Shares Outstanding After Exchange | 1,444,146 | |
Preferred Stock Value | 36,104 | |
Shares of common stock issued | 4,597,121 | |
7.125% Noncumulative Perpetual Monthly Income Preferred Stock, Series A [Member] | ||
Class Of Stock [Line Items] | ||
Preferred stock dividend rate percentage | 7.13% | |
7.125% Noncumulative Perpetual Monthly Income Preferred Stock, Series A [Member] | Exchange Of Preferred Stock Series For Common Stock [Member] | ||
Class Of Stock [Line Items] | ||
Liquidation value per share | $25 | |
Preferred stock, shares outstanding | 450,195 | |
Shares of preferred stock exchanged | 252,809 | |
Preferred Stock Shares Outstanding After Exchange | 197,386 | |
Preferred Stock Value | 4,935 | |
Shares of common stock issued | 1,081,652 | |
Preferred stock dividend rate percentage | 7.13% | |
8.35% Noncumulative Perpetual Monthly Income Preferred Stock, Series B [Member] | ||
Class Of Stock [Line Items] | ||
Preferred stock dividend rate percentage | 8.35% | |
8.35% Noncumulative Perpetual Monthly Income Preferred Stock, Series B [Member] | Exchange Of Preferred Stock Series For Common Stock [Member] | ||
Class Of Stock [Line Items] | ||
Liquidation value per share | $25 | |
Preferred stock, shares outstanding | 475,987 | |
Shares of preferred stock exchanged | 179,841 | |
Preferred Stock Shares Outstanding After Exchange | 296,146 | |
Preferred Stock Value | 7,404 | |
Shares of common stock issued | 769,379 | |
Preferred stock dividend rate percentage | 8.35% | |
7.40% Noncumulative Perpetual Monthly Income Preferred Stock, Series C [Member] | ||
Class Of Stock [Line Items] | ||
Preferred stock dividend rate percentage | 7.40% | |
7.40% Noncumulative Perpetual Monthly Income Preferred Stock, Series C [Member] | Exchange Of Preferred Stock Series For Common Stock [Member] | ||
Class Of Stock [Line Items] | ||
Liquidation value per share | $25 | |
Preferred stock, shares outstanding | 460,611 | |
Shares of preferred stock exchanged | 210,759 | |
Preferred Stock Shares Outstanding After Exchange | 249,852 | |
Preferred Stock Value | 6,246 | |
Shares of common stock issued | 890,830 | |
Preferred stock dividend rate percentage | 7.40% | |
7.25% Noncumulative Perpetual Monthly Income Preferred Stock, Series D [Member] | ||
Class Of Stock [Line Items] | ||
Preferred stock dividend rate percentage | 7.25% | |
7.25% Noncumulative Perpetual Monthly Income Preferred Stock, Series D [Member] | Exchange Of Preferred Stock Series For Common Stock [Member] | ||
Class Of Stock [Line Items] | ||
Liquidation value per share | $25 | |
Preferred stock, shares outstanding | 510,592 | |
Shares of preferred stock exchanged | 225,070 | |
Preferred Stock Shares Outstanding After Exchange | 285,522 | |
Preferred Stock Value | 7,138 | |
Shares of common stock issued | 961,724 | |
Preferred stock dividend rate percentage | 7.25% | |
7.00% Noncumulative Perpetual Monthly Income Preferred Stock, Series E [Member] | ||
Class Of Stock [Line Items] | ||
Preferred stock dividend rate percentage | 7.00% | |
7.00% Noncumulative Perpetual Monthly Income Preferred Stock, Series E [Member] | Exchange Of Preferred Stock Series For Common Stock [Member] | ||
Class Of Stock [Line Items] | ||
Liquidation value per share | $25 | |
Preferred stock, shares outstanding | 624,487 | |
Shares of preferred stock exchanged | 209,247 | |
Preferred Stock Shares Outstanding After Exchange | 415,240 | |
Preferred Stock Value | $10,381 | |
Shares of common stock issued | 893,536 | |
Preferred stock dividend rate percentage | 7.00% |
EMPLOYEES_BENEFIT_PLAN_Narrati
EMPLOYEES' BENEFIT PLAN- Narratives (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent | 25.00% | ||
Employee contribution percent maximum to get employer matching contribution | 4.00% | ||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Amount | $15,000 | $15,000 | $13,000 |
Total plan expense | 2,200,000 | 800,000 | 700,000 |
United States And Virign Islands Operations [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Amount | $17,500 | $17,500 | $17,000 |
OTHER_NON_INTEREST_INCOME_Deta
OTHER NON- INTEREST INCOME- Detail of other non-interest income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Non-interest Income [Abstract] | |||
Commissions and fees- broker-dealer related | $459 | $97 | $2,630 |
Noninterest Income, Other | 21,590 | 20,640 | 11,772 |
Non Deferrable Loan Fees | 2,238 | 2,248 | 5,090 |
Other Fees And Commissions Credit Cards | 6,204 | 6,694 | 7,239 |
Lower Of Cost Or Market Adjustment | 0 | -1,503 | 0 |
Total | $30,491 | $28,176 | $26,731 |
OTHER_NON_INTEREST_EXPENSES_De
OTHER NON- INTEREST EXPENSES- Detail of other non-interest expenses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Non Interest Expenses [Abstract] | |||
Supplies and printing | $2,140 | $3,014 | $2,811 |
Contigency Adjustment | 0 | 0 | 2,489 |
Reserve (release) for off-balance sheet exposures | -653 | -443 | -1,914 |
Other | 10,253 | 15,632 | 13,324 |
Amortization Of Intangible Assets | 4,943 | 6,078 | 3,306 |
Information Technology And Data Processing | 1,619 | 1,601 | 1,568 |
Losses On Sales Of Non Real Estate | 737 | 263 | 338 |
Contingency for attorney's fees | 0 | 2,500 | 0 |
Total | $19,039 | $28,645 | $21,922 |
INCOME_TAXES_Additional_Inform
INCOME TAXES - Additional Information (Detail) (USD $) | 12 Months Ended | 36 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2014 | Dec. 31, 2010 | |
subsidiaries | |||||||
Income Tax Contingency [Line Items] | |||||||
Number of subsidiaries from which corporation is not able to utilize losses | 1 | ||||||
Percentage of dividend received deduction from controlled subsidiaries | 100.00% | ||||||
Percentage of dividend received from other taxable domestic corporations | 85.00% | ||||||
Statutory rate | -39.00% | 39.00% | -30.00% | ||||
Minimum percentage of bank net taxable income for paying Income tax at normal rate | 20.00% | ||||||
Income tax expense | ($300,649,000) | $5,164,000 | $5,932,000 | ||||
New unrecognized Tax Benefits (UTBs) | 0 | 4,310,000 | 2,374,000 | 2,374,000 | 0 | 2,374,000 | |
Accrued interest related to UTB | 1,400,000 | 1,400,000 | |||||
Percentage of national gross tax receipt | 1.00% | ||||||
National gross receipt expense | 5,700,000 | 5,900,000 | |||||
Percentage of gross receipt tax credit | 0.50% | ||||||
Gross income credit amount | 2,900,000 | 3,000,000 | |||||
Net Deferred Tax Assets Deferred Income | 124,600,000 | 124,600,000 | |||||
Cumulative Loss Position Period | 3 years 0 months 0 days | 3 years 0 months 0 days | |||||
Changes In Statutory Tax Rate Net Benefit | 1,300,000 | ||||||
Cumulative Effect On Retained Earnings Before Tax 1 | -51,800,000 | -860,300,000 | |||||
Valuation Allowance Deferred Tax Asset Change In Amount | -302,900,000 | ||||||
Siginificant Changes In Reserve For Uncertain Tax Positions | 3,700,000 | ||||||
Deferred Tax Assets Current | 188,400,000 | 188,400,000 | |||||
Defferred Tax Assets Other Net Operating Losses | $10,700,000 | $10,700,000 | |||||
Statutory Sales And Use Tax Rate | 7.00% | ||||||
Value Added Tax Rate | 16.00% | ||||||
P R | |||||||
Income Tax Contingency [Line Items] | |||||||
Statute of limitations under income tax act | 4 years 0 months 0 days | ||||||
U S | |||||||
Income Tax Contingency [Line Items] | |||||||
Statute of limitations under income tax act | 3 years 0 months 0 days | ||||||
V I | |||||||
Income Tax Contingency [Line Items] | |||||||
Statute of limitations under income tax act | 3 years 0 months 0 days |
INCOME_TAXES_Components_of_inc
INCOME TAXES- Components of income tax expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current income tax (expense) benefit | ($5,361) | ($7,947) | ($5,357) |
Deferred income tax provision | 306,010 | 2,783 | -575 |
Total income tax provision | $300,649 | ($5,164) | ($5,932) |
INCOME_TAXES_Reconciliations_o
INCOME TAXES- Reconciliations of Income tax expenses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Computed income tax at statutory rate | ($35,738) | $62,136 | ($10,714) |
Federal and state taxes | -117 | -136 | 0 |
Adjustment in deferred tax due to change in tax rate | -346 | 106,717 | 0 |
Benefit of net exempt income | 15,202 | -13,320 | -3,627 |
Deferred tax valuation allowance | 318,380 | -157,449 | 9,602 |
(Recognition)/reversal of Unrecognized Tax Benefits | 1,763 | -3,218 | -238 |
National Receipt Tax Net | 628 | 552 | 0 |
Non-tax deductible expenses | -193 | -146 | -2,417 |
Other-net | 1,070 | -300 | 1,462 |
Total income tax provision | $300,649 | ($5,164) | ($5,932) |
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate | -39.00% | 39.00% | -30.00% |
Federal and state taxes % | -0.10% | 0.00% | 0.00% |
Adjustment in deferred tax due to change in tax rate % | -0.40% | 67.00% | 0.00% |
Benefit of net exempt income % | 17.00% | -8.40% | -10.10% |
Deferred tax valuation allowance % | 347.00% | -98.80% | 26.90% |
(Recognition)/reversal of Unrecognized Tax Benefits % | 2.00% | -2.00% | -0.70% |
Percentage Of National Gross Receipt Tax Net | 0.70% | 0.30% | 0.00% |
Non-tax deductible expenses % | -0.20% | -0.10% | -6.80% |
Other-net % | 1.20% | -0.20% | 4.10% |
Total income tax provision % | 328.20% | -3.20% | -16.60% |
INCOME_TAXES_Significant_compo
INCOME TAXES- Significant components of deferred tax assets and liabilities (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Deferred Tax Assets [Abstract] | ||||
Allowance for loan and lease losses | $85,048 | $108,811 | ||
Unrealized losses on derivative activities | 58 | 1,415 | ||
Legal reserve | 3,239 | 3,285 | ||
Reserve for insurance premium cancellations | 560 | 687 | ||
Net operating loss and donation carryforward available | 387,388 | 373,253 | ||
Impairment on investments | 3,212 | 2,409 | ||
Tax credits available for carryforward | 11,659 | 7,616 | ||
Unrealized net loss on equity investments | 7,752 | 12,273 | ||
Unrealized net loss on available for sale securities | 0 | 337 | ||
Settlement payment - closing agreement | 7,313 | 7,313 | ||
Unrealized net loss on REO valuation | 11,517 | 13,104 | ||
Other | 9,848 | 8,736 | ||
Deferred tax asset | 527,594 | 539,239 | ||
Valuation allowance | -204,587 | -522,708 | ||
Total deferred tax assets, net of valuation allowance | 323,007 | 16,531 | ||
Deferred Tax Liabilities [Abstract] | ||||
Unrealized gain on available-for-sale securities, net | 1,091 | 0 | ||
Differences between the assigned values and tax bases of assets and liabilities recognized in purchase business combinations | 811 | 1,034 | ||
Unrealized gain on other investments | 468 | 625 | ||
Other | 7,593 | 7,228 | ||
Deferred tax liability | 9,963 | 8,887 | ||
Deferred income taxes, net | 313,044 | 7,644 | ||
Reconciliation of the Change in Unrecognized Tax Benefits [Abstracts] | ||||
Balance at beginning of year | 4,310 | 2,374 | 2,374 | |
Increases related to positions taken during prior years | -1,763 | 1,936 | 0 | |
Audit settlement | 2,547 | 0 | 0 | |
Balance at end of year | $0 | $4,310 | $2,374 | $2,374 |
INCOME_TAXES_Net_Operating_Los
INCOME TAXES- Net Operating Losses And Tax Credit Carryforwards (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Tax Credit Carry forward [Line Items] | ||
Deferred tax asset | $527,594 | $539,239 |
Deferred tax asset, net of valuation allowance | 204,587 | 522,708 |
Deferred Tax Assets Net | $323,007 | $16,531 |
INCOME_TAXES_Net_Operating_Los1
INCOME TAXES- Net Operating Losses Carryforwards (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss and donation carryforward available | $387,388 | $373,253 |
LEASE_COMMITMENTS_Future_oblig
LEASE COMMITMENTS- Future obligations (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2014 | $8,683,000 | ||
2015 | 8,097,000 | ||
2016 | 7,261,000 | ||
2017 | 6,744,000 | ||
2018 | 5,936,000 | ||
2019 and later years | 31,238,000 | ||
Total | 67,959,000 | ||
Operating Leases Rent Expense Net | $10,600,000 | $10,200,000 | $9,700,000 |
Leases expiring up to | 30-Aug-36 |
FAIR_VALUE_Assets_and_Liabilit
FAIR VALUE - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | $1,965,666 | $1,978,282 |
Derivatives, included in assets: | ||
Derivatives, included in assets | 39 | 394 |
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 187 | 4,023 |
Forward Contracts [Member] | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 148 | 0 |
Equity Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 33 |
U S Treasury Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 7,499 | 7,499 |
Us Government Agencies Debt Securities Noncallable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 228,157 | 200,903 |
Us Government Agencies Debt Securities Callable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 1,653,140 | 1,677,651 |
Puerto Rico Government Obligations [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 43,222 | 51,330 |
Private Label Mbs [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 33,648 | 40,866 |
Interest Rate Cap [Member] | Purchase | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 6 | 58 |
Interest Rate Cap [Member] | Written | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 6 | 58 |
Forward And Future Contracts [Member] | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 0 | 174 |
Interest Rate Swap [Member] | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 33 | 162 |
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 33 | 3,965 |
Fair Value Inputs Level 1 [Member] | Forward Contracts [Member] | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Equity Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 33 |
Fair Value Inputs Level 1 [Member] | U S Treasury Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 7,499 | 7,499 |
Fair Value Inputs Level 1 [Member] | Us Government Agencies Debt Securities Noncallable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Us Government Agencies Debt Securities Callable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Puerto Rico Government Obligations [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Private Label Mbs [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Interest Rate Cap [Member] | Purchase | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Interest Rate Cap [Member] | Written | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Forward And Future Contracts [Member] | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Interest Rate Swap [Member] | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 0 | 0 |
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Forward Contracts [Member] | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 148 | 0 |
Fair Value Inputs Level 2 [Member] | Equity Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 2 [Member] | U S Treasury Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Us Government Agencies Debt Securities Noncallable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 228,157 | 200,903 |
Fair Value Inputs Level 2 [Member] | Us Government Agencies Debt Securities Callable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 1,653,140 | 1,677,651 |
Fair Value Inputs Level 2 [Member] | Puerto Rico Government Obligations [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 40,658 | 48,904 |
Fair Value Inputs Level 2 [Member] | Private Label Mbs [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Interest Rate Cap [Member] | Purchase | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 6 | 58 |
Fair Value Inputs Level 2 [Member] | Interest Rate Cap [Member] | Written | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 6 | 58 |
Fair Value Inputs Level 2 [Member] | Forward And Future Contracts [Member] | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 0 | 174 |
Fair Value Inputs Level 2 [Member] | Interest Rate Swap [Member] | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 33 | 162 |
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 33 | 3,965 |
Fair Value Inputs Level 3 [Member] | Forward Contracts [Member] | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Equity Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 3 [Member] | U S Treasury Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Us Government Agencies Debt Securities Noncallable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Us Government Agencies Debt Securities Callable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Puerto Rico Government Obligations [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 2,564 | 2,426 |
Fair Value Inputs Level 3 [Member] | Private Label Mbs [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 33,648 | 40,866 |
Fair Value Inputs Level 3 [Member] | Interest Rate Cap [Member] | Purchase | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Interest Rate Cap [Member] | Written | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Forward And Future Contracts [Member] | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Interest Rate Swap [Member] | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 0 | 0 |
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | $0 | $0 |
FAIR_VALUE_Fair_Value_of_Asset
FAIR VALUE - Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) (Categories Of Investments Marketable Securities Available For Sale Securities [Member], USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Categories Of Investments Marketable Securities Available For Sale Securities [Member] | ||||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Beginning balance | $43,292 | [1] | $54,617 | [1] | $65,463 | [1] |
Total gains or (losses) (realized/unrealized): | ||||||
Included in earnings | -388 | [1] | -117 | [1] | -2,002 | [1] |
Included in other comprehensive income | 2,404 | [1] | 2,795 | [1] | 6,036 | [1] |
Sales | -4,855 | [1] | 0 | [1] | -1,450 | [1] |
Principal Repayments And Amortization | -9,364 | [1] | -14,003 | [1] | -13,430 | [1] |
Purchases | 5,123 | [1] | 0 | [1] | 0 | [1] |
Ending balance | $36,212 | [1] | $43,292 | [1] | $54,617 | [1] |
[1] | B Amounts mostly related to private label mortgage-backed securities. |
FAIR_VALUE_Assets_and_Liabilit1
FAIR VALUE - Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Investment securities available-for-sale: | ||
Discount rate used for calculation of mortgage servicing rights value | 14.50% | 14.50% |
Fair value input prepayment rate | 32.00% | 28.89% |
Unobservable input projected cumulative loss rate | 7.90% | |
Securities available for sale | ||
Discount rate used for calculation of mortgage servicing rights value | 14.50% | 14.50% |
Fair value input prepayment rate | 32.00% | 28.89% |
Unobservable input projected cumulative loss rate | 7.90% | |
Private Label Mbs [Member] | ||
Investment securities available-for-sale: | ||
Fair Value | 33,648 | |
Discount rate used for calculation of mortgage servicing rights value | 14.50% | |
Securities available for sale | ||
Fair Value | 33,648 | |
Discount rate used for calculation of mortgage servicing rights value | 14.50% | |
Puerto Rico Government Obligations [Member] | ||
Investment securities available-for-sale: | ||
Fair Value | 2,564 | |
Unobservable input prepayment rate | 5.61% | |
Securities available for sale | ||
Fair Value | 2,564 | |
Unobservable input prepayment rate | 5.61% | |
Discounted Cash Flow [Member] | Private Label Mbs [Member] | ||
Investment securities available-for-sale: | ||
Valuation technique | Discounted cash flows | |
Securities available for sale | ||
Valuation technique | Discounted cash flows | |
Discounted Cash Flow [Member] | Puerto Rico Government Obligations [Member] | ||
Investment securities available-for-sale: | ||
Valuation technique | Discounted cash flows | |
Securities available for sale | ||
Valuation technique | Discounted cash flows | |
Minimum [Member] | ||
Investment securities available-for-sale: | ||
Fair value input prepayment rate | 19.89% | 15.86% |
Securities available for sale | ||
Fair value input prepayment rate | 19.89% | 15.86% |
Minimum [Member] | Private Label Mbs [Member] | ||
Investment securities available-for-sale: | ||
Fair value input prepayment rate | 19.89% | |
Fair value projected Cumulative Loss Rate | 0.64% | |
Securities available for sale | ||
Fair value input prepayment rate | 19.89% | |
Fair value projected Cumulative Loss Rate | 0.64% | |
Maximum [Member] | ||
Investment securities available-for-sale: | ||
Fair value input prepayment rate | 100.00% | 100.00% |
Securities available for sale | ||
Fair value input prepayment rate | 100.00% | 100.00% |
Maximum [Member] | Private Label Mbs [Member] | ||
Investment securities available-for-sale: | ||
Fair value input prepayment rate | 100.00% | |
Fair value projected Cumulative Loss Rate | 80.00% | |
Securities available for sale | ||
Fair value input prepayment rate | 100.00% | |
Fair value projected Cumulative Loss Rate | 80.00% |
FAIR_VALUE_Change_in_unrealize
FAIR VALUE - Change in unrealized losses included in earnings (Detail) (Categories Of Investments Marketable Securities Available For Sale Securities [Member], USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Categories Of Investments Marketable Securities Available For Sale Securities [Member] | ||||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Net Impairment losses on investment securities | ($388) | [1] | ($117) | [1] | ($2,002) | [1] |
[1] | B Amounts mostly related to private label mortgage-backed securities. |
FAIR_VALUE_Impairment_of_Valua
FAIR VALUE - Impairment of Valuation Adjustments were Recorded for Assets Recognized at Fair Value (Detail) (USD $) | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Mortgage servicing rights | $22,838 | $21,987 | $17,524 | $15,226 | |||
Fair Value Inputs Level 1 [Member] | Fair Value Measurements Nonrecurring [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Loans receivable | 0 | [1] | 0 | [2] | 0 | [3] | |
Other Real Estate Owned | 0 | [4] | 0 | [5] | 0 | [6] | |
Mortgage servicing rights | 0 | [7] | 0 | [8] | 0 | [9] | |
Loans held for sale | 0 | [10] | 0 | [11] | 0 | [12] | |
Fair Value Inputs Level 2 [Member] | Fair Value Measurements Nonrecurring [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Loans receivable | 0 | [1] | 0 | [2] | 0 | [3] | |
Other Real Estate Owned | 0 | [4] | 0 | [5] | 0 | [6] | |
Mortgage servicing rights | 0 | [7] | 0 | [8] | 0 | [9] | |
Loans held for sale | 0 | [10] | 0 | [11] | 0 | [12] | |
Fair Value Inputs Level 3 [Member] | Fair Value Measurements Nonrecurring [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Loans receivable | 446,816 | [1] | 465,191 | [2] | 757,152 | [3] | |
Other Real Estate Owned | 124,003 | [4] | 160,193 | [5] | 185,764 | [6] | |
Mortgage servicing rights | 22,838 | [7] | 21,987 | [8] | 17,524 | [9] | |
Loans held for sale | 54,641 | [10] | 54,801 | [11] | 2,641 | [12] | |
Fair Value Inputs Level 3 [Member] | Fair Value Measurements Nonrecurring [Member] | Loans Receivable [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Assets Fair Value Adjustment | -43,318 | [1] | -13,928 | [2] | -110,457 | [3] | |
Fair Value Inputs Level 3 [Member] | Fair Value Measurements Nonrecurring [Member] | Other Real Estate Owned [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Assets Fair Value Adjustment | -9,656 | [4] | -25,698 | [5] | -8,851 | [6] | |
Fair Value Inputs Level 3 [Member] | Fair Value Measurements Nonrecurring [Member] | Mortgage Servicing Rights [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Assets Fair Value Adjustment | -228 | [7] | 460 | [8] | -394 | [9] | |
Fair Value Inputs Level 3 [Member] | Fair Value Measurements Nonrecurring [Member] | Loans Held For Sale [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Assets Fair Value Adjustment | $0 | [10] | ($338) | [11] | ($2,168) | [12] | |
[1] | B B Mainly impaired commercial and construction loans. The impairment was generally measured based on the fair value of the B B collateral. The fair values were derived from external appraisals that take into consideration prices in observed transactions B B involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral B B (e.g., absorption rates), which are not market observable. | ||||||
[2] | B Mainly impaired commercial and construction loans. The impairment was generally measured based on the fair value of theB B collateral. The fair values were derived from external appraisals that take into consideration prices in observed transactionsB B involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g., B B absorption rates), which are not market observable. | ||||||
[3] | B Mainly impaired commercial and construction loans. The impairment was generally measured based on the fair value of the B collateral. The fair values were derived from external appraisals that take into consideration prices in observed transactionsB involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g., B absorption rates), which are not market observable. | ||||||
[4] | B B The fair value was derived from appraisals that take into consideration prices in observed transactions involving similar B B assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g., absorption B B rates and net operating income of income producing properties), which are not market observable. Losses B B were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. | ||||||
[5] | B The fair value was derived from appraisals that take into consideration prices in observed transactions involving similar assets in B similar locations but adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operatingB B income of income producing properties), which are not market observable. Losses were related to market valuation adjustments B B after the transfer of the loans to the OREO portfolio. | ||||||
[6] | B The fair value was derived from appraisals that take into consideration prices in observed transactions involving similar assets inB similar locations but adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operatingB income of income producing properties), which are not market observable. Losses were related to market valuation adjustments B after the transfer of the loans to the OREO portfolio. | ||||||
[7] | B B Fair value adjustments to mortgage servicing rights were mainly due to assumptions associated with mortgage B B prepayment rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at B B fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate B B 9.74%, Discount rate 10.60%. | ||||||
[8] | B Fair value adjustments to the mortgage servicing rights were mainly due to assumptions associated with mortgage prepaymentsB B rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-B recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate 8.90%, Discount rate 10.60%. | ||||||
[9] | B Fair value adjustments to the mortgage servicing rights were mainly due to assumptions associated with mortgage prepaymentsB rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurringB basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate 11.15%, Discount rate 12.08%. | ||||||
[10] | B B The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans, and for B B B loans with signed sale agreements, the value was determined based on the sales price on such agreements. | ||||||
[11] | B The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans, and for loans B with signed sale agreements, the value was determined based on the sales price on such agreements. | ||||||
[12] | B Relates to $5.2 million Commercial and Industrial and Commercial Mortgage Loans transferred to held for sale during the fourthB quarter of 2012, which were recorded at a value of $2.6 million. |
FAIR_VALUE_Impairment_of_Valua1
FAIR VALUE - Impairment of Valuation Adjustments were Recorded for Assets Recognized at Fair Value (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Repayment rate used for the calculation of mortgage servicing rights value | 32.00% | 28.89% | |
Discount rate used for calculation of mortgage servicing rights value | 14.50% | 14.50% | |
Carrying Value of Loans Transferred to Loans Held For Sale | 5.2 | ||
Mortgage Servicing Rights [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Repayment rate used for the calculation of mortgage servicing rights value | 9.74% | 8.90% | 11.15% |
Discount rate used for calculation of mortgage servicing rights value | 10.60% | 10.60% | 12.08% |
FAIR_VALUE_Qualitative_Informa
FAIR VALUE - Qualitative Information Regarding Fair Value Measurements for Level 3 Financial Instruments (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Loans [Member] | |
Fair Value Option Quantitative Disclosures [Line Items] | |
Method | Income, Market, Comparable Sales, Discounted Cash Flows |
Valuation technique | External appraised values; probability weighting of broker price opinions; management assumptions regarding market trends or other relevant factors |
Other Real Estate Owned [Member] | |
Fair Value Option Quantitative Disclosures [Line Items] | |
Method | Income, Market, Comparable Sales, Discounted Cash Flows |
Valuation technique | External appraised values; probability weighting of broker price opinions; management assumptions regarding market trends or other relevant factors |
Mortgage Servicing Rights [Member] | |
Fair Value Option Quantitative Disclosures [Line Items] | |
Method | Discounted Cash Flows |
Valuation technique | Weighted average prepayment rate of 9.74%; weighted average discount rate of 10.60% |
FAIR_VALUE_Fair_Value_Detail
FAIR VALUE - Fair Value (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Investment securities available for sale | $1,965,666 | $1,978,282 |
Less: allowance for loan and lease losses | -222,395 | -285,858 |
Derivatives, included in assets | 39 | 394 |
Liabilities: | ||
Other borrowings | 231,959 | 231,959 |
Derivatives, included in liabilities | 187 | 4,023 |
Carrying Reported Amount Fair Value Disclosure [Member] | ||
Assets: | ||
Cash and due from banks and money market investments | 796,108 | 655,671 |
Investment securities available for sale | 1,965,666 | 1,978,282 |
Other equity securities | 25,752 | 28,691 |
Loans held for sale | 76,956 | 75,969 |
Loans, held for investment | 9,262,436 | 9,636,170 |
Less: allowance for loan and lease losses | -222,395 | -285,858 |
Loans held for investment, net of allowance | 9,040,041 | 9,350,312 |
Derivatives, included in assets | 39 | 394 |
Liabilities: | ||
Deposits | 9,483,945 | 9,879,924 |
Securities sold under agreements to repurchase | 900,000 | 900,000 |
Advances from FHLB | 325,000 | 300,000 |
Notes Payable | 0 | |
Other borrowings | 231,959 | 231,959 |
Derivatives, included in liabilities | 187 | 4,023 |
Estimate Of Fair Value Fair Value Disclosure [Member] | ||
Assets: | ||
Cash and due from banks and money market investments | 796,108 | 655,671 |
Investment securities available for sale | 1,965,666 | 1,978,282 |
Other equity securities | 25,752 | 28,691 |
Loans held for sale | 77,888 | 76,684 |
Loans held for investment, net of allowance | 8,844,659 | 9,127,234 |
Derivatives, included in assets | 39 | 394 |
Liabilities: | ||
Deposits | 9,486,325 | 9,898,615 |
Securities sold under agreements to repurchase | 958,715 | 976,151 |
Advances from FHLB | 324,376 | 297,523 |
Notes Payable | 0 | |
Other borrowings | 162,344 | 106,772 |
Derivatives, included in liabilities | 187 | 4,023 |
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 1 [Member] | ||
Assets: | ||
Cash and due from banks and money market investments | 796,108 | 655,671 |
Investment securities available for sale | 7,499 | 7,532 |
Other equity securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans held for investment, net of allowance | 0 | 0 |
Derivatives, included in assets | 0 | 0 |
Liabilities: | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Advances from FHLB | 0 | 0 |
Other borrowings | 0 | 0 |
Derivatives, included in liabilities | 0 | 0 |
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 2 [Member] | ||
Assets: | ||
Cash and due from banks and money market investments | 0 | 0 |
Investment securities available for sale | 1,921,955 | 1,927,458 |
Other equity securities | 25,752 | 28,691 |
Loans held for sale | 23,247 | 21,883 |
Loans held for investment, net of allowance | 0 | 0 |
Derivatives, included in assets | 39 | 394 |
Liabilities: | ||
Deposits | 9,486,325 | 9,898,615 |
Securities sold under agreements to repurchase | 958,715 | 976,151 |
Advances from FHLB | 324,376 | 297,523 |
Other borrowings | 0 | 0 |
Derivatives, included in liabilities | 187 | 4,023 |
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 3 [Member] | ||
Assets: | ||
Cash and due from banks and money market investments | 0 | 0 |
Investment securities available for sale | 36,212 | 43,292 |
Other equity securities | 0 | 0 |
Loans held for sale | 54,641 | 54,801 |
Loans held for investment, net of allowance | 8,844,659 | 9,127,234 |
Derivatives, included in assets | 0 | 0 |
Liabilities: | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Advances from FHLB | 0 | 0 |
Other borrowings | 162,344 | 106,772 |
Derivatives, included in liabilities | $0 | $0 |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION - Supplemental Cash Flow Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash paid for: | |||
Interest on borrowings | $102,402 | $119,312 | $164,364 |
Income tax | 7,751 | 4,447 | 8,603 |
Non-cash investing and financing activities: | |||
Additions to other real estate owned | 48,601 | 104,144 | 169,432 |
Additions to repossed properties | 92,266 | 69,069 | 48,910 |
Loan securitizations | 198,712 | 355,506 | 239,766 |
Loans held for investment transferred to held for sale | 0 | 181,620 | 2,641 |
Capitalization of servicing assets | 4,321 | 7,649 | 6,348 |
Other Assets Held For Sale | 0 | 2,225 | 0 |
Exchange of preferred stock-Series A through E | 26,022 | 0 | 0 |
Preferred Stock [Member] | |||
Non-cash investing and financing activities: | |||
Exchange of preferred stock-Series A through E | 26,943 | 0 | 0 |
Common Stock [Member] | Series G Preferred Stock [Member] | |||
Non-cash investing and financing activities: | |||
New stock issued | $24,363 | $0 | $0 |
REGULATORY_MATTERS_COMMITMENTS2
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||||
Feb. 16, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 02, 2010 | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||
Proceeds from sale of available-for-sale securities | $4,861,000 | $0 | $1,878,000 | ||||
Loans acquired on exchange of loan held for sale | 136,100,000 | ||||||
Subordinated interest in CPS/GS by Bank | 35.00% | ||||||
Common Equity Tier 1 Capital To Risk Weight Assets Ratio | 6.00% | ||||||
Trust Preferred Securities | 225,000,000 | ||||||
Leverage Ratio Composite Rating | 1.00% | ||||||
Four Major Risk Weightings Categories | (0%, 20%, 50%, and 100%) | ||||||
Leverage Ratio Composite Supervisory Rating | 3.00% | ||||||
Percentage Of Trust Preferred Securities That Qualify As Tier1 Capital | 0.00% | 25.00% | |||||
Minimum [Member] | |||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||
Percentage of risk weighted assets | 0.00% | ||||||
Risk Weightings | 0.00% | ||||||
Maximum [Member] | |||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||
Risk Weightings | 100.00% | ||||||
Consent Order [Member] | |||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||
Total Risk Based Capital Ratio | 12.00% | ||||||
Basel III [Member] | |||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||
Common Equity Tier 1 Capital Conservation Buffer | 2.50% | ||||||
Common Equity Tier 1 Capital Conservation Buffer First Year | 0.63% | ||||||
Common Equity Tier 1 Capital Conservation Buffer Increments Period | 4 years 0 months 0 days | ||||||
Threshold For Deductions Of Certain Items From Common Equity Tier1 Capital | 10.00% | ||||||
Threshold For Total Deductions From Common Equity Tier 1 Capital | 15.00% | ||||||
Common Equity Tier1 Capital To Risk Weight Assets Ratio Well Capitalized | 6.50% | ||||||
Total Tier 1 Capital To Risk Weight Assets Ratio Well Capitalized | 8.00% | ||||||
Credit Conversion Factor | 20.00% | ||||||
Adjustments And Deductions From Common Equity Tier 1 Capital Period | 4 years 0 months 0 days | ||||||
Unused Portion Of Commitment Maturity Period | 1 year 0 months 0 days | ||||||
Percentage Of Trust Preferred Securities That Qualify As Tier1 Capital | 25.00% | ||||||
Basel III [Member] | Minimum [Member] | |||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||
Common Equity Tier 1 Capital To Risk Weight Assets Ratio | 4.50% | ||||||
Common equity tier 1 capital to risk weight assets ratio plus common equity tier1 capital conservation buffer | 7.00% | ||||||
Total Tier 1 Capital To Risk Weight Assets Ratio | 6.00% | ||||||
Total Tier 1 Capital To Risk Weight Assets Ratio Plus Common Equity Tier 1 Capital Conservation Buffer | 8.50% | ||||||
Total Tier 1 Capital And Tier 2 Capital To Risk Weight Assets Ratio Plus Common Equity Tier 1 Capital Conservation Buffer | 10.50% | ||||||
Leverage Ratio | 4.00% | ||||||
Total Tier1 Capital And Tier 2 Capital To Risk Weight Assets Ratio | 8.00% | ||||||
Leverage Ratio Well Capitalized | 5.00% | ||||||
Basel III [Member] | Maximum [Member] | |||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||
Risk Weightings | 150.00% | ||||||
Cpg Gs [Member] | |||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||
Sale of loans to CPG/GS | 269,300,000 | ||||||
Cash realized on sale of loan | $88,500,000 |
REGULATORY_MATTERS_COMMITMENTS3
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES - Regulatory capital positions (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Securitization of FHA/VA mortgage loan production into GNMA mortgage-backed securities | $198,700,000 | |
First Ban Corp [Member] | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total Capital | 1,748,120,000 | 1,604,548,000 |
Tier 1 Capital | 1,636,004,000 | 1,484,490,000 |
Tier 1 Leverage Capital | 1,636,004,000 | 1,484,490,000 |
Total Capital Required For Capital Adequacy | 709,723,000 | 752,464,000 |
Tier 1 Risk Based Capital Required for Capital Adequacy | 354,861,000 | 376,232,000 |
Tier 1 Leverage Capital Required for Capital Adequacy | 493,159,000 | 506,878,000 |
Total Risk Based Capital Ratio | 19.70% | 17.06% |
Tier 1 Risk Based Capital Ratio | 18.44% | 15.78% |
Tier 1 Leverage Ratio | 13.27% | 11.71% |
Total Risk Based Capital Ratio Adequately Capitalized | 8.00% | 8.00% |
Tier 1 Risk Based Capital Ratio Adequately Capitalized | 4.00% | 4.00% |
Tier 1 Leverage Ratio Adequately Capitalized | 4.00% | 4.00% |
FirstBank [Member] | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total Capital | 1,717,432,000 | 1,567,232,000 |
Tier 1 Capital | 1,605,367,000 | 1,447,262,000 |
Tier 1 Leverage Capital | 1,605,367,000 | 1,447,262,000 |
Total Capital Required For Capital Adequacy | 709,395,000 | 751,978,000 |
Tier 1 Risk Based Capital Required for Capital Adequacy | 354,698,000 | 375,989,000 |
Tier 1 Leverage Capital Required for Capital Adequacy | 492,468,000 | 506,210,000 |
Total Capital Required to be Well Capitalized | 886,744,000 | 939,972,000 |
Tier 1 Risk Based Capital Required to be Well Capitalized | 532,046,000 | 563,983,000 |
Tier 1 Leverage Capital Required to be Well Capitalized | 615,585,000 | 632,763,000 |
Total Capital Consent Order Requirement | 1,064,093,000 | 1,127,966,000 |
Tier 1 Capital Consent Order | 886,744,000 | 939,972,000 |
Tier 1 Leverage Capital Consent Order | 984,937,000 | 1,012,420,000 |
Total Risk Based Capital Ratio | 19.37% | 16.67% |
Tier 1 Risk Based Capital Ratio | 18.10% | 15.40% |
Tier 1 Leverage Ratio | 13.04% | 11.44% |
Total Risk Based Capital Ratio Adequately Capitalized | 8.00% | 8.00% |
Tier 1 Risk Based Capital Ratio Adequately Capitalized | 4.00% | 4.00% |
Tier 1 Leverage Ratio Adequately Capitalized | 4.00% | 4.00% |
Total Risk Based Capital Ratio Well Capitalized | 10.00% | 10.00% |
Tier 1 Risk Based Capital to Risk Weighted Well Capitalized | 6.00% | 6.00% |
Tier 1 Leverage Ratio Well Capitalized | 5.00% | 5.00% |
Total Risk Based Capital Ratio Consent Order | 12.00% | 12.00% |
Tier 1 Risk Based Capital Ratio Consent Order | 10.00% | 10.00% |
Leverage Ratio Consent Order | 8.00% | 8.00% |
To originate loans [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | 76,235,000 | 65,184,000 |
Unused personal lines of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | 682,994,000 | 735,331,000 |
Commercial lines of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | 383,015,000 | 386,941,000 |
Commercial Letters Of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | 38,555,000 | 41,081,000 |
Standby letters of credit [Member] [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | 3,791,000 | 10,527,000 |
Commitments To Sell Loans [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | $129,369,000 | $123,925,000 |
DERIVATIVE_INSTRUMENTS_AND_HED2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narratives (Detail) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Credit risk of related to derivative instruments with positive fair values | $39,000 | $400,000 |
Contractual Prepayment Penalties Collected On Loans | 2,500,000 | |
Interest Rate Swap [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Book value of securities pledged as collateral | 2,600,000 | 4,000,000 |
Aggregate market value of securities pledged as collateral | 2,900,000 | 4,300,000 |
Total net interest settlement payable | $11,000 | $100,000 |
DERIVATIVE_INSTRUMENTS_AND_HED3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Interest Rate Swaps (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Pay fixed/receive floating : | ||
Notional amount | $98,704 | $132,862 |
Weighted-average receive rate at period end | 2.03% | 1.85% |
Weighted-average pay rate at period end | 3.45% | 6.77% |
Interest Rate Swap [Member] | ||
Pay fixed/receive floating : | ||
Notional amount | $5,440 | $31,080 |
DERIVATIVE_INSTRUMENTS_AND_HED4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Detail) | Dec. 31, 2014 |
Derivative Instruments Gain Loss [Line Items] | |
Floating rate range | 1.87% |
DERIVATIVE_INSTRUMENTS_AND_HED5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amounts of All Derivative Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Notional Amount of Derivatives | $98,704 | $132,862 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional Amount of Derivatives | 5,440 | 31,080 |
Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Notional Amount of Derivatives | 19,000 | 25,000 |
Nondesignated [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional Amount of Derivatives | 5,440 | 31,080 |
Nondesignated [Member] | Interest Rate Cap [Member] | Purchase | ||
Derivative [Line Items] | ||
Notional Amount of Derivatives | 37,132 | 38,391 |
Nondesignated [Member] | Interest Rate Cap [Member] | Written | ||
Derivative [Line Items] | ||
Notional Amount of Derivatives | $37,132 | $38,391 |
DERIVATIVE_INSTRUMENTS_AND_HED6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Fair Value of Derivative Instruments and Location in Statement of Financial Condition (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in assets | $39 | $394 |
Derivatives, included in liabilities | 187 | 4,023 |
Other Assets [Member] | Interest Rate Swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in assets | 33 | 162 |
Other Assets [Member] | Interest Rate Cap [Member] | Purchase | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in assets | 6 | 58 |
Other Assets [Member] | Interest Rate Cap [Member] | Written | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in assets | 0 | 0 |
Other Assets [Member] | Forward Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in assets | 0 | 174 |
Other Liabilities [Member] | Interest Rate Swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in liabilities | 33 | 3,965 |
Other Liabilities [Member] | Interest Rate Cap [Member] | Purchase | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in liabilities | 0 | 0 |
Other Liabilities [Member] | Interest Rate Cap [Member] | Written | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in liabilities | 6 | 58 |
Other Liabilities [Member] | Forward Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in liabilities | $148 | $0 |
DERIVATIVE_INSTRUMENTS_AND_HED7
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Derivative Instruments on Statement of Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Economic undesignated hedges: | |||
Total gain (loss) on derivatives | $936 | $1,871 | $1,067 |
Interest Income Loans [Member] | Interest Rate Swap [Member] | |||
Economic undesignated hedges: | |||
Total gain (loss) on derivatives | 1,258 | 1,685 | 901 |
Interest Income Loans [Member] | Interest Rate Cap [Member] | |||
Economic undesignated hedges: | |||
Total gain (loss) on derivatives | 0 | 10 | 0 |
Mortgage Banking Activities [Member] | Forward Contracts [Member] | |||
Economic undesignated hedges: | |||
Total gain (loss) on derivatives | ($322) | $176 | $166 |
OFFESTTING_OF_ASSETS_AND_LIABI
OFFESTTING OF ASSETS AND LIABILITIES - Offsetting of financial assets and liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Offsetting [Abstract] | ||
Gross amount recognized of derivative asset | $6 | $58 |
Gross amount of derivatives assets offset | 0 | 0 |
Net asset amount of assets presented in the Statement of Financial Condition | 6 | 58 |
Obligation to return Financial instrument, derivatives assets | 6 | 58 |
Obligation to return Cash Collateral, derivative assets | 0 | 0 |
Net derivative asset amount not offset | 0 | 0 |
Gross amount recognized of derivative liabilities | 33 | 3,965 |
Gross amount of derivative liabilities offset | 0 | 0 |
Net derivative liability amount offset presented | 33 | 3,965 |
Right to claim Financial instrument, derivatives liabilities | 33 | 3,965 |
Right to claim Cash Collateral, derivatives liabilities | 0 | 0 |
Net derivatives liability amount not offset | 0 | 0 |
Gross amount recognized of repurchase agreements | 600,000 | 600,000 |
Gross amount of repurchase agreements offset | 0 | 0 |
Net repurchase agreements amount offset presented | 600,000 | 600,000 |
Right to claim Financial instrument, repurchase agreements | 600,000 | 600,000 |
Right to claim Cash Collateral, repurchase agreements | 0 | 0 |
Net repurchase agreements amount not offset | 0 | 0 |
Gross amount recognized of liabilities | 600,033 | 603,965 |
Gross amount of liabilties offset | 0 | 0 |
Net liabilities amount offset presented | 600,033 | 603,965 |
Right to claim Financial instrument, liabilities | 600,033 | 603,965 |
Right to claim Cash Collateral, liabilties | 0 | 0 |
Net liability amount not offset | $0 | $0 |
SEGMENT_INFORMATION_Additional
SEGMENT INFORMATION - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
numberofreportableunits | |
Number of reportable segments | 6 |
SEGMENT_INFORMATION_Informatio
SEGMENT INFORMATION - Information about Reportable Segments (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Interest income | $633,949 | $645,788 | $637,777 |
Net (charge) credit for transfer of funds | 0 | 0 | 0 |
Interest expense | -115,876 | -130,843 | -176,072 |
Net interest income | 518,073 | 514,945 | 461,705 |
Provision for loan and lease losses | -109,530 | -243,751 | -120,499 |
Non-interest income | 68,627 | 1,202 | 68,647 |
Direct non-interest expenses | -283,980 | -320,975 | -267,567 |
Segment (loss) income | 193,190 | -48,579 | 142,286 |
Average earnings assets | 12,046,932 | 12,164,188 | 12,236,179 |
Mortgage Banking [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 115,997 | 109,074 | 110,164 |
Net (charge) credit for transfer of funds | -37,375 | -37,611 | -48,830 |
Interest expense | 0 | 0 | 0 |
Net interest income | 78,622 | 71,463 | 61,334 |
Provision for loan and lease losses | -17,605 | -89,439 | -36,553 |
Non-interest income | 13,515 | 15,826 | 18,080 |
Direct non-interest expenses | -39,444 | -48,941 | -43,058 |
Segment (loss) income | 35,088 | -51,091 | -197 |
Average earnings assets | 2,142,122 | 2,030,120 | 2,067,304 |
Consumer Loan [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 215,170 | 231,077 | 207,001 |
Net (charge) credit for transfer of funds | 17,629 | 1,549 | 474 |
Interest expense | -24,445 | -27,834 | -30,904 |
Net interest income | 208,354 | 204,792 | 176,571 |
Provision for loan and lease losses | -79,932 | -54,240 | -32,924 |
Non-interest income | 40,018 | 38,968 | 33,362 |
Direct non-interest expenses | -126,290 | -122,560 | -102,364 |
Segment (loss) income | 42,150 | 66,960 | 74,645 |
Average earnings assets | 1,967,202 | 1,954,307 | 1,637,729 |
Commercial And Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 163,242 | 171,972 | 187,860 |
Net (charge) credit for transfer of funds | -12,364 | -14,280 | -23,706 |
Interest expense | 0 | 0 | 0 |
Net interest income | 150,878 | 157,692 | 164,154 |
Provision for loan and lease losses | -40,084 | -101,971 | -42,940 |
Non-interest income | 5,241 | 3,904 | 10,140 |
Direct non-interest expenses | -46,963 | -64,611 | -50,364 |
Segment (loss) income | 69,072 | -4,986 | 80,990 |
Average earnings assets | 3,613,354 | 4,068,942 | 4,571,779 |
Treasury And Investments [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 54,223 | 55,075 | 46,313 |
Net (charge) credit for transfer of funds | 20,463 | 41,074 | 59,970 |
Interest expense | -68,517 | -77,366 | -111,209 |
Net interest income | 6,169 | 18,783 | -4,926 |
Provision for loan and lease losses | 0 | 0 | 0 |
Non-interest income | 264 | -66,635 | -1,623 |
Direct non-interest expenses | -5,368 | -10,629 | -6,296 |
Segment (loss) income | 1,065 | -58,481 | -12,845 |
Average earnings assets | 2,691,906 | 2,698,559 | 2,426,091 |
United States Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 44,882 | 36,999 | 37,376 |
Net (charge) credit for transfer of funds | 11,647 | 9,268 | 12,092 |
Interest expense | -19,273 | -21,748 | -29,340 |
Net interest income | 37,256 | 24,519 | 20,128 |
Provision for loan and lease losses | 27,650 | 10,709 | 9,061 |
Non-interest income | 2,450 | 1,284 | 1,803 |
Direct non-interest expenses | -26,596 | -28,554 | -27,734 |
Segment (loss) income | 40,760 | 7,958 | 3,258 |
Average earnings assets | 976,151 | 748,209 | 727,556 |
Virgin Islands Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 40,435 | 41,591 | 49,063 |
Net (charge) credit for transfer of funds | 0 | 0 | 0 |
Interest expense | -3,641 | -3,895 | -4,619 |
Net interest income | 36,794 | 37,696 | 44,444 |
Provision for loan and lease losses | 441 | -8,810 | -17,143 |
Non-interest income | 7,139 | 7,855 | 6,885 |
Direct non-interest expenses | -39,319 | -45,680 | -37,751 |
Segment (loss) income | 5,055 | -8,939 | -3,565 |
Average earnings assets | $656,197 | $664,051 | $805,720 |
SEGMENT_INFORMATION_Reconcilia
SEGMENT INFORMATION - Reconciliation of Reportable Segment Financial Information (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Net Income (Loss): | ||||||
Total income for segments and other | $193,190 | ($48,579) | $142,286 | |||
Other non-interest income (loss) | -7,279 | [1] | -16,691 | [1] | -19,256 | [1] |
Other operating expenses | -94,273 | [2] | -94,053 | [2] | -87,316 | [2] |
Income (loss) before income taxes | 91,638 | -159,323 | 35,714 | |||
Income tax expense | 300,649 | -5,164 | -5,932 | |||
Total consolidated net income (loss) | 392,287 | -164,487 | 29,782 | |||
Average assets: | ||||||
Total average earning assets for segments | 12,046,932 | 12,164,188 | 12,236,179 | |||
Other average earning assets | 1,943 | [1] | 18,089 | [1] | 36,706 | [1] |
Average non-earning assets | 598,570 | 630,184 | 693,489 | |||
Total consolidated average assets | $12,647,445 | $12,812,461 | $12,966,374 | |||
[1] | The activities related to the Bank's equity interest in CPG/GS are presented as an Other non-interest loss and as Otheraverage earning assets in the table above. | |||||
[2] | Expenses pertaining to corporate administrative functions that support the operating segments but are not specificallyattributable to or managed by any segment are not included in the reported financial results of the operating segments. The unallocated corporate expenses include certain general and administrative expenses and related depreciation and amortization expenses. |
SEGMENT_INFORMATION_revenues_a
SEGMENT INFORMATION - revenues and selected balance sheet data by geography based on the location (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||
Revenues | $695,297 | $630,299 | $687,168 | |||
Total assets | 12,727,835 | 12,656,925 | ||||
Loans | 9,262,436 | 9,636,170 | ||||
Deposits | 9,483,945 | 9,879,924 | ||||
Brokered CDs allocated to Puerto Rico operations | 2,887,046 | 3,142,023 | ||||
P R | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 588,744 | 533,302 | 579,949 | |||
Total assets | 10,969,305 | 10,993,743 | 11,421,073 | |||
Loans | 7,706,866 | 8,173,873 | 8,706,428 | |||
Deposits | 6,687,844 | [1] | 7,053,053 | [1] | 7,004,301 | [1] |
Brokered CDs allocated to Puerto Rico operations | 2,900,000 | 3,100,000 | 3,400,000 | |||
U S | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 58,979 | 47,551 | 51,271 | |||
Total assets | 1,072,962 | 940,590 | 913,831 | |||
Loans | 982,713 | 865,414 | 714,234 | |||
Deposits | 1,836,430 | 1,895,394 | 1,921,066 | |||
V I | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 47,574 | 49,446 | 55,948 | |||
Total assets | 685,568 | 722,592 | 764,837 | |||
Loans | 649,813 | 672,852 | 718,846 | |||
Deposits | $959,671 | $931,477 | $939,179 | |||
[1] | For 2014, 2013, and 2012, includes $2.9 billion, $3.1 billion, and $3.4 billion, respectively, of brokered CDs allocated to Puerto Rico operations. |
FIRST_BANCORP_Holding_Company_2
FIRST BANCORP. (Holding Company Only) Financial Information - Statements of Financial Condition (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
ASSETS | |||
Cash and due from banks | $779,147 | $454,302 | |
Money market investments | 16,961 | 201,369 | 216,835 |
Investment securities available for sale, at market: | |||
Other investment securities | 939,700 | 935,800 | |
Loans Receivable Net | 9,116,997 | 9,426,281 | |
Other assets | 481,587 | 179,570 | |
Total assets | 12,727,835 | 12,656,925 | |
Liabilities: | |||
Other borrowings | 231,959 | 231,959 | |
Accounts payable and other liabilities | 115,188 | 129,184 | |
Total liabilities | 11,056,092 | 11,441,067 | |
Stockholders Equity | 1,671,743 | 1,215,858 | 1,485,023 |
Total liabilities and stockholders' equity | 12,727,835 | 12,656,925 | |
Holding Company [Member] | |||
ASSETS | |||
Cash and due from banks | 30,380 | 31,957 | |
Money market investments | 6,111 | 6,111 | |
Investment securities available for sale, at market: | |||
Equity Investments | 0 | 33 | |
Other investment securities | 285 | 285 | |
Loans Receivable Net | 322 | 356 | |
Other assets | 4,357 | 4,101 | |
Total assets | 1,926,394 | 1,463,248 | |
Liabilities: | |||
Other borrowings | 231,959 | 231,959 | |
Accounts payable and other liabilities | 22,692 | 15,431 | |
Total liabilities | 254,651 | 247,390 | |
Stockholders Equity | 1,671,743 | 1,215,858 | |
Total liabilities and stockholders' equity | 1,926,394 | 1,463,248 | |
Holding Company [Member] | Investment In Banking Subsidiary [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | 1,866,090 | 1,403,612 | |
Holding Company [Member] | Non Banking Subsidiary [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | 11,890 | 9,834 | |
Holding Company [Member] | Statutory Trust One [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | 3,093 | 3,093 | |
Holding Company [Member] | Statutory Trust Two [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | $3,866 | $3,866 |
FIRST_BANCORP_Holding_Company_3
FIRST BANCORP. (Holding Company Only) Financial Information - Statements of Loss (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income: | |||
Money market investments | $1,892 | $1,927 | $1,827 |
Interest income on investment securities | 52,881 | 53,527 | 45,294 |
Total interest and dividends on investments | 54,773 | 55,454 | 47,121 |
Expense: | |||
Loss before income taxes and equity in undistributed earnings (losses) of subsidiaries | 91,638 | -159,323 | 35,714 |
Income tax expense | 300,649 | -5,164 | -5,932 |
Net income (loss) | 392,287 | -164,487 | 29,782 |
Other comprehensive income (loss), net of tax | 60,385 | -107,168 | 9,234 |
Comprehensive (loss) income | 452,672 | -271,655 | 39,016 |
Holding Company [Member] | |||
Income: | |||
Money market investments | 20 | 22 | 17 |
Interest income on investment securities | 0 | 0 | 6 |
Other income | 220 | 88 | 220 |
Total interest and dividends on investments | 240 | 110 | 243 |
Expense: | |||
Notes payable and other borrowings | 7,199 | 7,092 | 7,342 |
Other operating expenses | 2,614 | 5,813 | 3,398 |
Total operating expenses | 9,813 | 12,905 | 10,740 |
Investment related proceeds and impairments on equity securities | -29 | -42 | 0 |
Loss before income taxes and equity in undistributed earnings (losses) of subsidiaries | -9,602 | -12,837 | -10,497 |
Equity in undistributed earnings (losses) of subsidiaries | 401,889 | -151,650 | 40,279 |
Net income (loss) | 392,287 | -164,487 | 29,782 |
Other comprehensive income (loss), net of tax | 60,385 | -107,168 | 9,234 |
Comprehensive (loss) income | $452,672 | ($271,655) | $39,016 |
FIRST_BANCORP_Holding_Company_4
FIRST BANCORP. (Holding Company Only) Financial Information - Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Cash Provided By Used In Operating Activities [Abstract] | |||
Net income (loss) | $392,287 | ($164,487) | $29,782 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Deferred income tax provision | -306,010 | -2,783 | 575 |
Share Based Compensation | 4,221 | 2,930 | 826 |
Equity in losses of unconsolidated entities | 7,279 | 16,691 | 19,256 |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net | 388 | 117 | 2,002 |
Decrease (increase) in other assets | 16,327 | 43,023 | 29,355 |
Increase Decrease In Other Operating Liabilities | -17,251 | 20,935 | -79 |
Net Cash Provided By Used In Operating Activities | 264,353 | 341,685 | 228,852 |
Net Cash Provided By Used In Investing Activities [Abstract] | |||
Principal collected on loans | 3,487,748 | 2,800,471 | 3,048,549 |
Proceeds from sale of available-for-sale securities | 4,861 | 0 | 1,878 |
Net Cash Provided By Used In Investing Activities | 254,733 | -431,448 | 305,082 |
Net Cash Provided By Used In Financing Activities [Abstract] | |||
Proceeds From Issuance Of Common Stock | 0 | 0 | 1,037 |
Issuance costs of common stock issued in exchange for preferred stock Series A through E | -62 | 0 | 0 |
Repurchase of outstanding common stock | -946 | -455 | 0 |
Net Cash Provided By Used In Financing Activities | -378,649 | -201,417 | -33,649 |
Cash And Cash Equivalents Period Increase Decrease | 140,437 | -291,180 | 500,285 |
Cash and cash equivalents at beginning of period | 655,671 | 946,851 | 446,566 |
Cash and cash equivalents at end of period | 796,108 | 655,671 | 946,851 |
Cash and cash equivalents include: | |||
Due From Banks | 779,147 | 454,302 | 730,016 |
Money market instruments | 16,961 | 201,369 | 216,835 |
Parent Company [Member] | |||
Net Cash Provided By Used In Operating Activities [Abstract] | |||
Net income (loss) | 392,287 | -164,487 | 29,782 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Share Based Compensation | 1,962 | 1,471 | 155 |
Equity in losses of unconsolidated entities | -401,889 | 151,650 | -40,279 |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net | 29 | 186 | 0 |
Accretion Amortization Of Discounts And Premiums Loans | -3 | 0 | 0 |
Decrease (increase) in other assets | -260 | 774 | -1,403 |
Increase Decrease In Other Operating Liabilities | 7,261 | 7,146 | 7,166 |
Net Cash Provided By Used In Operating Activities | -613 | -3,260 | -4,579 |
Net Cash Provided By Used In Investing Activities [Abstract] | |||
Principal collected on loans | 38 | 0 | 0 |
Proceeds from sale of available-for-sale securities | 6 | 0 | 0 |
Proceeds from sale/redemption of other investment securities | 0 | 533 | 0 |
Net Cash Provided By Used In Investing Activities | 44 | 533 | 0 |
Net Cash Provided By Used In Financing Activities [Abstract] | |||
Proceeds From Issuance Of Common Stock | 0 | 0 | 1,037 |
Issuance costs of common stock issued in exchange for preferred stock Series A through E | -62 | 0 | 0 |
Repurchase of outstanding common stock | -946 | -455 | 0 |
Net Cash Provided By Used In Financing Activities | -1,008 | -455 | 1,037 |
Cash And Cash Equivalents Period Increase Decrease | -1,577 | -3,182 | -3,542 |
Cash and cash equivalents at beginning of period | 38,068 | 41,250 | 44,792 |
Cash and cash equivalents at end of period | 36,491 | 38,068 | 41,250 |
Cash and cash equivalents include: | |||
Due From Banks | 30,380 | 31,957 | 35,139 |
Money market instruments | $6,111 | $6,111 | $6,111 |
SUBSEQUENT_EVENTS_Additional_I
SUBSEQUENT EVENTS - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Feb. 27, 2015 | Jun. 21, 2013 | Mar. 28, 2013 | Mar. 31, 2013 |
Subsequent Event [Line Items] | ||||
Classified and non-performing loans sold | $203.80 | $211.40 | ||
OREO Sold | 19.2 | 6.3 | ||
Loans and OREO sold | 217.7 | |||
Business Acquisition Date Of Acquisition Agreement 1 | 27-Feb-15 | |||
Aggregate Premium On Acquisition | 10 | |||
Aggregate Premium On Acquisition Percentage | 1.60% | |||
Time Until Acquired Assets Are Converted | 0 years 6 months 0 days | |||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financial Assets | 325 | |||
AggregateDiscountOnAcquisition | 29 | |||
Aggregate Discount On Acquisition Percentage | 9.00% | |||
Branches Doral | 10 | |||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financial Liabilities | $625 | |||
BusinessAcquisitionNameOfAcquiredEntity | Doral Bank |