Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2014 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
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 | 213,810,782 |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Condition (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Cash and due from banks | $767,471 | $779,147 | ||
Money market investments: | ||||
Time deposits with other financial institutions | 300 | 300 | ||
Other short-term investments | 216,665 | 16,661 | ||
Total money market investments | 216,965 | 16,961 | ||
Investment securities available for sale, at fair value: | ||||
Securities pledged that can be repledged | 1,001,725 | 1,025,966 | ||
Other investment securities | 972,501 | 939,700 | ||
Total investment securities available for sale | 1,974,226 | 1,965,666 | ||
Other equity securities | 26,185 | 25,752 | ||
Investment in unconsolidated entities | 0 | 0 | ||
Loans, net of allowance for loan and lease losses of $301,047 (2012 - $435,414) | 9,259,308 | 9,040,041 | ||
Loans held for sale, at lower of cost or market | 81,723 | 76,956 | ||
Total loans, net | 9,341,031 | 9,116,997 | ||
Premises and equipment, net | 166,799 | 166,926 | ||
Other real estate owned | 122,628 | 124,003 | ||
Accrued interest receivable on loans and investments | 49,302 | 50,796 | ||
Other assets | 483,312 | 481,587 | ||
Total assets | 13,147,919 | 12,727,835 | ||
LIABILITIES | ||||
Non-interest-bearing deposits | 1,175,943 | 900,616 | ||
Interest-bearing deposits | 8,665,095 | 8,583,329 | ||
Total deposits | 9,841,038 | 9,483,945 | ||
Securities sold under agreements to repurchase | 900,000 | [1] | 900,000 | [1] |
Advances from the Federal Home Loan Bank (FHLB) | 325,000 | 325,000 | ||
Other borrowings | 231,959 | 231,959 | ||
Accounts payable and other liabilities | 144,172 | 115,188 | ||
Total liabilities | 11,442,169 | 11,056,092 | ||
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 | 36,104 | ||
Common stock, $0.10 par value, authorized, 2,000,000,000 shares; issued, 207,514,167 shares (2012 - 206,730,318 shares issued) | 21,462 | 21,372 | ||
Less: Treasury stock (at par value) | -79 | -74 | ||
Common stock outstanding, 206,982,105 shares outstanding (2012 - 206,235,465 shares | 21,383 | 21,298 | ||
Additional paid-in capital | 917,203 | 916,067 | ||
Retained earnings | 742,271 | 716,625 | ||
Accumulated other comprehensive (loss) income, net of tax expense of $8,171 (2012 - $7,749) | -11,211 | -18,351 | ||
Total stockholders' equity | 1,705,750 | 1,671,743 | ||
Total liabilities and stockholders' equity | $13,147,919 | $12,727,835 | ||
[1] | As of March 31, 2015, includes $800 million with an average rate of 2.71% that lenders have the right to call before their contractual maturities at various dates beginning on April 9, 2015. Subsequent to April 9, 2015, no lender has exercised its call option on repurchase agreements. In addition, $700 million is tied to variable rates. |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Condition (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Allowance for loan and lease losses | $226,064 | $222,395 |
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 | 1,444,146 |
Preferred stock, liquidation value | 36,104 | 36,104 |
Common stock, par value | $0.10 | $0.10 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 214,618,015 | 213,724,749 |
Common stock, shares outstanding | 213,827,258 | 212,984,700 |
Income tax expense | 8,032 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Income tax expense | $7,752 | $7,752 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest income: | ||
Loans | $139,344 | $144,843 |
Investment securities | 12,604 | 15,228 |
Money market investments | 537 | 500 |
Total interest income | 152,485 | 160,571 |
Interest expense: | ||
Deposits | 17,694 | 20,299 |
Securities sold under agreements to repurchase | 6,393 | 6,368 |
Advances from FHLB | 934 | 824 |
Notes payable and other borrowings | 1,817 | 1,760 |
Total interest expense | 26,838 | 29,251 |
Net interest income (loss) | 125,647 | 131,320 |
Provision for loan and lease losses | 32,970 | 31,915 |
Net interest income after provision for loan and lease losses | 92,677 | 99,405 |
Non-interest income: | ||
Service charges on deposit accounts | 4,555 | 4,127 |
Mortgage banking activities | 3,618 | 3,368 |
Other-than-temporary impairment losses on investment securities: | ||
Total other-than-temporary impairment losses | 0 | 0 |
Portion of loss previously recognized in other comprehensive income | -156 | 0 |
Net impairment losses on investment securities | -156 | 0 |
Equity in losses of unconsolidated entities | 0 | -6,610 |
Business Combination Bargain Purchase Gain Recognized Amount | 13,443 | 0 |
Insurance income | 3,022 | 2,571 |
Other non-interest income | 8,247 | 7,894 |
Total non-interest income | 32,729 | 11,350 |
Non-interest expenses: | ||
Employees' compensation and benefits | 35,654 | 32,898 |
Occupancy and equipment | 14,349 | 14,318 |
Business promotion | 2,868 | 3,973 |
Professional fees | 15,218 | 10,493 |
Taxes, other than income taxes | 3,001 | 4,575 |
Insurance and supervisory fees | 6,860 | 10,990 |
Net loss on real estate owned (REO) and REO operations | 2,628 | 5,837 |
Credit and debit processing fees | 3,957 | 3,824 |
Communications | 1,608 | 1,879 |
Other non-interest expenses | 5,585 | 3,998 |
Total non-interest expenses | 91,728 | 92,785 |
Income (loss) before income taxes | 33,678 | 17,970 |
Income tax expense | -8,032 | -887 |
Net income (loss) | 25,646 | 17,083 |
Net income (loss) attributable to common stockholders - basic | $25,646 | $17,462 |
Net income (loss) per common share: | ||
Basic | $0.12 | $0.08 |
Diluted | $0.12 | $0.08 |
Dividends declared per common share | $0 | $0 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income (loss) | $25,646 | $17,083 |
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 | 689 | 913 |
Reclassification adjustment for other-than-temporary impairment on debt securities included in net income | 156 | 0 |
All other unrealized gains and losses on available-for-sale securities: | ||
All other unrealized holding gains arising during the period | 6,295 | 21,626 |
Income tax expense related to items of other comprehensive income | 0 | 0 |
Other comprehensive income (loss) for the period, net of tax | 7,140 | 22,539 |
Total comprehensive income (loss) | $32,786 | $39,622 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income (loss) | $25,646 | $17,083 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 5,306 | 5,453 |
Amortization and impairment of intangible assets | 1,093 | 1,235 |
Provision for loan and lease losses | 32,970 | 31,915 |
Deferred income tax (benefit) expense | 2,060 | -700 |
Stock-based compensation | 1,457 | 717 |
Other-than-temporary impairments on debt securities | 156 | 0 |
Equity in losses of unconsolidated entities | 0 | 6,610 |
Derivative instruments and financial liabilities measured at fair value, gain | 72 | -148 |
Loss (gain) on sale of premises and equipment and other assets | 194 | 25 |
Net gain on sale of loans held for investment | -1,689 | -2,017 |
Net amortization of premiums, discounts and deferred loan fees and costs | -673 | -477 |
Originations and purchases of loans held for sale | -89,425 | -72,748 |
Sales and repayments of loans held for sale | 87,051 | 72,865 |
Amortization of broker placement fees | 1,335 | 1,785 |
Net amortization of premium and discounts on investment securities | 1,269 | -284 |
(Decrease) increase in accrued income tax payable | 5,481 | 1,476 |
(Increase) decrease in accrued interest receivable | 1,953 | 4,992 |
Decrease in accrued interest payable | 1,000 | 2,106 |
Decrease (increase) in other assets | 3,081 | 8,657 |
Increase (decrease) in other liabilities | 11,007 | -4,987 |
Business Combination Bargain Purchase Gain Recognized Amount | 13,443 | 0 |
Net cash provided by operating activities | 75,513 | 73,508 |
Cash flows from investing activities: | ||
Principal collected on loans | 751,062 | 776,086 |
Loans originated and purchased | -705,621 | -774,764 |
Proceeds from sale of loans held for investment | 2,230 | 16,558 |
Proceeds from sale of repossessed assets | 18,446 | 12,262 |
Purchases of securities available for sale | -56,429 | -76,253 |
Proceeds from principal repayments and maturities of securities available for sale | 53,596 | 45,422 |
Additions to premises and equipment | -3,027 | -7,696 |
Proceeds from sale of premises and equipment and other assets | 2,492 | 25 |
Cash Acquired From Acquisition | 217,659 | 0 |
(Increase) decrease in other equity securities | -433 | 0 |
Net cash provided by investing activities | 279,975 | -8,360 |
Cash flows from financing activities: | ||
Net decrease in deposits | -166,924 | 120,977 |
Net FHLB advances paid | 0 | 0 |
Repayments of medium-term notes | 0 | 0 |
Payments Of Stock Issuance Costs | 0 | 53 |
Repurchase of outstanding common stock | -236 | -246 |
Net cash provided (used in) financing activities | -167,160 | 120,678 |
Net increase in cash and cash equivalents | 188,328 | 185,826 |
Cash and cash equivalents at beginning of period | 796,108 | 655,671 |
Cash and cash equivalents at end of period | 984,436 | 841,497 |
Cash and cash equivalents include: | ||
Cash and due from banks | 767,471 | 824,547 |
Money market instruments | 216,965 | 16,950 |
Cash and Cash Equivalents, at Carrying Value, Total | $984,436 | $841,497 |
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, 2013 | $63,047 | $20,707 | $888,161 | $322,679 | ($78,736) | |
Total stockholders' equity | 1,255,898 | 56,810 | 20,897 | 894,247 | 340,141 | -56,197 |
Common stock issued for compensation | 6 | -6 | ||||
Repurchase of common stock | -4 | -242 | ||||
Common stock sold | ||||||
Restricted stock grants | 81 | -81 | ||||
Restricted stock forefeited | 0 | 0 | ||||
Stock-based compensation | 717 | |||||
Net income (loss) | 17,083 | 17,083 | ||||
Excess of carrying amount of preferred stock exchanged over fair value of new common stock | 379 | 379 | ||||
Other comprehensive income (loss), net of tax | 22,539 | 22,539 | ||||
Common stock issued in exchange of preferred stock-Series A through E | 107 | 5,538 | ||||
Exchange Of Preferred Stock Series For Common Stock | -6,237 | |||||
Reversal of Issuance cost of Series A through E of preferred stock exchanged | 213 | |||||
Issuance Cost Of Common Stock | -53 | |||||
Balance at end of period at Mar. 31, 2014 | 1,255,898 | 56,810 | 20,897 | 894,247 | 340,141 | -56,197 |
Balance at beginning of period at Dec. 31, 2014 | 1,671,743 | 36,104 | 21,298 | 916,067 | 716,625 | -18,351 |
Total stockholders' equity | 1,705,750 | 36,104 | 21,383 | 917,203 | 742,271 | -11,211 |
Common stock issued for compensation | 8 | -8 | ||||
Repurchase of common stock | -5 | -231 | ||||
Common stock sold | ||||||
Restricted stock grants | 83 | -83 | ||||
Restricted stock forefeited | -1 | 1 | ||||
Stock-based compensation | 1,457 | |||||
Net income (loss) | 25,646 | 25,646 | ||||
Excess of carrying amount of preferred stock exchanged over fair value of new common stock | 0 | 0 | ||||
Other comprehensive income (loss), net of tax | 7,140 | 7,140 | ||||
Common stock issued in exchange of preferred stock-Series A through E | 0 | 0 | ||||
Exchange Of Preferred Stock Series For Common Stock | 0 | |||||
Reversal of Issuance cost of Series A through E of preferred stock exchanged | 0 | |||||
Issuance Cost Of Common Stock | 0 | |||||
Balance at end of period at Mar. 31, 2015 | $1,705,750 | $36,104 | $21,383 | $917,203 | $742,271 | ($11,211) |
BASIS_OF_PRESENTATION_AND_SIGN
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2015 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
The Consolidated Financial Statements (unaudited) of First BanCorp. (“the Corporation”) have been prepared in conformity with the accounting policies stated in the Corporation's Audited Consolidated Financial Statements included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2014. Certain information and note disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted from these statements pursuant to the rules and regulations of the SEC and, accordingly, these financial statements should be read in conjunction with the Audited Consolidated Financial Statements of the Corporation for the year ended December 31, 2014, which are included in the Corporation's 2014 Annual Report on Form 10-K. All adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the statement of financial position, results of operations and cash flows for the interim periods have been reflected. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
The results of operations for the quarter ended March 31, 2015 are not necessarily indicative of the results to be expected for the entire year. | |
Adoption of new accounting requirements and recently issued but not yet effective accounting requirements | |
The Financial Accounting Standards Board (“FASB”) has issued the following accounting pronouncements and guidance relevant to the Corporation's operations: | |
In January 2014, the FASB updated the Accounting Standards Codification (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. Refer to Notes 7 and 10 for required disclosures. | |
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 expect to become effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those reporting periods, as a result of the FASB's recent issuance of a proposal to defer the effective date of the standard by one year. 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 adoption of this guidance did not have a material effect on the Corporation's 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 such determination. 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 Corporation 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 to eliminate from GAAP the concept of extraordinary items as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). 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. | |
In February 2015, the FASB updated the Codification to eliminate the deferral of FAS 167, which has allowed reporting entities with interests in certain investment funds to follow the previous consolidation guidance in FIN 46(R), and to make other changes to both the variable interest model and the voting model. While the Update is aimed at asset managers, it will affect all reporting entities involved with limited partnerships or similar entities. In some cases, consolidation conclusions will change. In other cases, reporting entities will need to provide additional disclosure about entities that currently are not considered VIEs but will be considered VIEs under the new guidance when they have a variable interest in those VIEs. Regardless of whether conclusions change or additional disclosure requirements are triggered, reporting entities will need to re-evaluate limited partnerships or similar entities for consolidation and revise their documentation. For public business entities, the Update is effective for annual and interim periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. A reporting entity must apply the amendments retrospectively. The Corporation is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements, if any. | |
In April 2015, the FASB updated the Codification to clarify that customers should determine whether a cloud computing arrangement includes the license of software by applying the same guidance cloud service providers use to make this determination. Examples of cloud computing arrangements include software as a service, platform as a service, infrastructure as a service and other hosting arrangements. If a hosting arrangement includes a software license for internal use software, the software license should be accounted for by the customer under ASC 350-40. A license of software other than internal use software would be accounted for by the customer under other U.S. GAAP (e.g., a research and development cost and software to be sold, leased or otherwise marketed). If a hosting arrangement includes a software licenses, then that would be in addition to any service contract in the arrangement. Hosting arrangements that do not include software licenses should be accounted for as service contracts. The Update also eliminates the existing requirement for customers to account for software licenses they acquire by analogizing to the guidance on leases. Instead, customers will account for software licenses that are in the scope of ASC 350-40 in the same manner as licenses of other intangible assets. Entities have the option of applying the guidance (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. Entities that elect prospective application are required to disclose the reason for the change in accounting principle, the transition method, and a description of the financial statement line items affected by the change. Entities that elect retrospective application must disclose the information required by ASC 250. For public business entities, the guidance is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Corporation is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements, if any. | |
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
EARNINGS PER COMMON SHARE | NOTE 3 – EARNINGS PER COMMON SHARE | |||||||
The calculations of earnings per common share for the quarters ended on March 31, 2015 and 2014 are as follows: | ||||||||
Quarter Ended | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
(In thousands, except per share information) | ||||||||
Net income | $ | 25,646 | $ | 17,083 | ||||
Cumulative convertible preferred stock dividends (Series G) | ||||||||
Favorable impact from issuing common stock in exchange for | ||||||||
Series A through E preferred stock (1) | - | 379 | ||||||
Net income attributable to common stockholders | $ | 25,646 | $ | 17,462 | ||||
Weighted-Average Shares: | ||||||||
Average common shares outstanding | 210,686 | 205,732 | ||||||
Average potential dilutive common shares | 2,060 | 1,144 | ||||||
Average common shares outstanding-assuming dilution | 212,746 | 206,876 | ||||||
Income per common share: | ||||||||
Basic | $ | 0.12 | $ | 0.08 | ||||
Diluted | $ | 0.12 | $ | 0.08 | ||||
-1 | Excess of carrying amount of the Series A through E preferred stock exchanged over the fair value of new common shares issued in the first quarter of 2014. | |||||||
Earnings per common share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares issued and outstanding. Net income attributable to common stockholders represents net income 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 the first quarter of 2014, net income attributable to common stockholders includes the one-time effect to retained earnings of the issuance of common stock in exchange for Series A through E preferred stock. This transaction is discussed in Note 19 to the unaudited 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 69,848 and 88,640 for the quarters ended March 31, 2015 and 2014, respectively. |
BUSINESS_COMBINATION
BUSINESS COMBINATION | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combination Description [Abstract] | ||||
Business Combination Disclosure [Text Block] | NOTE 2 – BUSINESS COMBINATION | |||
On February 27, 2015, FirstBank acquired 10 Puerto Rico branches of Doral Bank, assumed $522.7 million in deposits related to such branches, acquired approximately $324.8 million in principal balance of loans, primarily residential mortgage loans, acquired $5.5 million of property, plant and equipment and received $217.7 million of cash, through an alliance with Banco Popular of Puerto Rico (“Popular”), who was the successful lead bidder with the FDIC on the failed Doral Bank, as well as other co-bidders (the “Doral Bank Transaction”). This transaction solidified FirstBank as the second largest bank in Puerto Rico, enhanced FirstBank's presence in geographical areas in Puerto Rico with growth potential for deposits and mortgage originations, two of the main business strategies of the institution, and provides a stable source of low-cost deposits that are expected to support and enhance future growth activities. | ||||
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 assumption agreements with the alliance co-bidders, including FirstBank, for the transferred assets and deposits. There is no loss-share arrangement with the FDIC related to the acquired assets. | ||||
The Corporation accounted for this transaction as a business combination. The following table identifies the fair value of assets acquired and liabilities assumed from Doral Bank on February 27, 2015: | ||||
Asset/Liabilities | ||||
(at Fair Value) | ||||
(In thousands) | ||||
ASSETS | ||||
Cash | $ | 217,659 | ||
Loans | 311,410 | |||
Premises and equipment, net | 5,450 | |||
Core Deposit Intangible | 5,820 | |||
Other assets | ||||
Total assets acquired | 540,339 | |||
LIABILITIES | ||||
Deposits | 523,517 | |||
Other liabilities | 3,379 | |||
Net assets - Bargain purchase gain | $ | 13,443 | ||
The application of the acquisition-method of accounting resulted in a bargain purchase gain of $13.4 million, which is included in non-interest income in the Corporation's consolidated statement of income for the quarter ended March 31, 2015, and a core deposit intangible of $5.8 million. The net after-tax gain of $8.2 million represents the excess of the estimated fair value of the assets acquired (including cash payments received from the FDIC) over the estimated fair value of the liabilities assumed and is influenced significantly by the FDIC-assisted transaction process. | ||||
The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above: | ||||
Cash and due from banks – The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets. This balance primarily represents the cash settlement received from Popular for the net equity received, assets discount bid and other customary closing adjustments. | ||||
Loans – Fair values for loans were based on a discounted cash flow methodology that uses market-driven assumptions such as prepayment rate, default rate, and loss severity on a loan level basis. The forecasted cash flows are then discounted by yields observed in sales of similar portfolios in Puerto Rico and the continental U.S. | ||||
The Corporation evaluated the residential mortgage loans acquired and determined that $227.9 million are non-credit impaired purchased loans and have been accounted in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Costs, and were recorded with a premium of $1.3 million. The remaining approximately $93.3 million of residential mortgage loans excluded were considered purchased credit impaired loans within the provisions of FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and were recorded with a $13.4 million discount. These purchased credit impaired loans will recognize interest income through accretion of the difference between the fair value of the loans and the expected cash flows. | ||||
Core deposit intangible – This intangible asset represents the value of the relationships that Doral Bank had with its deposit customers. The fair value of this intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of the deposit base, and the net maintenance cost attributable to customer deposits. The Corporation recorded $5.8 million of core deposit intangible. | ||||
Deposits – The fair values used for the demand and savings deposits that comprise the transaction accounts acquired, by definition, equal the amount payable on demand at the acquisition date. The fair value adjustment of $0.8 million was applied for time deposits because the estimated weighted average interest rate of the assumed certificates of deposits were estimated to be above the current market rates. | ||||
ASC Topic 805 requires the measurement of all recognized assets acquired and liabilities assumed in a business combination at their acquisition-date fair values. Accordingly, the Corporation initially recorded amounts for the fair values of the assets acquired and liabilities assumed based on the best information available at the acquisition date. The Corporation may retrospectively adjust these amounts to reflect new information obtained during the measurement period (not to exceed 12 months) about facts and circumstances that existed as of the acquisition date that, if known, would have affected the acquisition-date fair value measurements. Any retrospective adjustments to acquisition date fair values will affect the bargain purchase gain recognized. During the first quarter of 2015, the Corporation incurred $3.9 million of expenses related to this transaction, primarily included in professional fees expenses in the consolidated statement of income, of which $2.1 million represents acquisition and conversion costs that are considered non-recurring in nature. | ||||
The Corporation's operating results for the quarter ended March 31, 2015, include the operating results of the acquired assets and assumed liabilities subsequent to the acquisition date. The Corporation also considered the pro forma requirements of ASC 805 and deemed it not necessary to provide pro forma financial statements as required under the standard for the Doral Bank transaction as is was not material to the Corporation. | ||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
STOCK-BASED COMPENSATION | NOTE 4 – STOCK-BASED COMPENSATION | |||||||||
As of January 21, 2007, the Corporation's 1997 stock option plan expired and no additional awards could be granted under that plan. All outstanding awards granted under this plan have continue in full force and effect since then, subject to their original terms. | ||||||||||
The activity of stock options granted under the 1997 stock option plan for the quarter ended March 31, 2015 is set forth below: | ||||||||||
Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (In thousands) | |||||||
Beginning of period outstanding | ||||||||||
and exercisable | 82,575 | $ | 187.75 | |||||||
Options expired | -11,395 | 358.8 | ||||||||
Options cancelled | -1,332 | 164.1 | ||||||||
End of period outstanding and | ||||||||||
exercisable | 69,848 | $ | 160.3 | 1.3 | $ | - | ||||
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 the first quarter of 2015, 30,068 shares of restricted stock were awarded to one of the Corporation's independent directors of which 4,295 shares vest in one year and the remaining 25,773 shares vest in five years. In addition, in the first quarter of 2015, the Corporation issued 791,464 shares of restricted stock that will vest based on the employees' continued service with the Corporation. For 40,000 of the 791,464 shares awarded to employees, the requisite service period is approximately three months. For the remaining 751,464 shares granted to employees, fifty percent (50%) of those shares vest in two years from the grant date and the remaining 50% percent vest in three years from the grant date. Included in those 751,464 shares of restricted stock are 615,464 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 provided that: (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 in 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 the first quarter of 2015 was based on the market price of the Corporation's outstanding common stock on the date of the grant. For the 615,464 shares of restricted stock granted under the TARP requirements, the market price was discounted due to account for TARP transferability restrictions. For purposes of determining the awards fair value, the Corporation estimated an appreciation of 14% 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 Treasury would hold the common stock of the Corporation that it currently owns for a period not to exceed one year, resulting in a fair value of $3.18 for restricted shares granted under the TARP requirements. Also, the Corporation used empirical data to estimate employee terminations; 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 2015 under the Omnibus Plan for both executive officers covered by the TARP requirements and other employees as well as for the independent directors: | ||||||||||
Quarter Ended | ||||||||||
31-Mar-15 | ||||||||||
Number of | ||||||||||
shares of | Weighted-Average | |||||||||
restricted | Grant Date | |||||||||
stock | Fair Value | |||||||||
Non-vested shares at beginning of period | 2,327,156 | $ | 3.39 | |||||||
Granted | 821,532 | 3.92 | ||||||||
Forfeited | -8,500 | 5.07 | ||||||||
Vested | -63,750 | 4 | ||||||||
Non-vested shares at March 31, 2015 | 3,076,438 | $ | 3.51 | |||||||
For the quarters ended March 31, 2015 and 2014, the Corporation recognized $1.0 million and $0.4 million, respectively, of stock-based compensation expense related to restricted stock awards. As of March 31, 2015, there was $6.0 million of total unrecognized compensation cost related to non-vested shares of restricted stock. The weighted average period over which the Corporation expects to recognize such cost is 2.3 years. | ||||||||||
During the first quarter of 2014, the Corporation issued 810,138 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% percent vest in three years from the grant date. Included in those 810,138 shares of restricted stock are 653,138 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 the first quarter of 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 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 Treasury would hold the common stock of the Corporation that it owned as of the date of the grants for an additional two years, resulting in a fair value of $2.63 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, then 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 $26 thousand and $5 thousand of compensation expense was reversed during the first quarter of 2015 and 2014, respectively, related to forfeited awards. | ||||||||||
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 the first quarter of 2015, the Corporation issued 80,234 shares of common stock with a weighted average market value of $6.02 as salary stock compensation. This resulted in a compensation expense of $0.4 million recorded in the first quarter of 2015. | ||||||||||
For the quarter ended March 31, 2015, the Corporation withheld 28,183 shares from the common stock paid to certain senior officers as additional compensation and 22,525 shares of the restricted stock that vested during the first quarter of 2015 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. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
INVESTMENT SECURITIES | NOTE 5 – INVESTMENT SECURITIES | |||||||||||||||||||
Investment Securities Available for Sale | ||||||||||||||||||||
The amortized cost, non-credit loss component of other-than-temporary impairment (“OTTI”) recorded in other comprehensive income (“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 March 31, 2015 and December 31, 2014 were as follows: | ||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||
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 | $ | 7,500 | $ | - | $ | - | $ | - | $ | 7,500 | 0.11 | |||||||||
Obligations of U.S. | ||||||||||||||||||||
government-sponsored | ||||||||||||||||||||
agencies: | ||||||||||||||||||||
After 1 to 5 years | 278,054 | - | 318 | 1,918 | 276,454 | 1.25 | ||||||||||||||
After 5 to 10 years | 102,745 | - | 850 | 1,037 | 102,558 | 1.93 | ||||||||||||||
Puerto Rico government | ||||||||||||||||||||
obligations: | ||||||||||||||||||||
After 1 to 5 years | 39,836 | - | - | 16,922 | 22,914 | 4.49 | ||||||||||||||
After 5 to 10 years | 875 | - | - | - | 875 | 5.2 | ||||||||||||||
After 10 years | 24,821 | - | 1 | 7,148 | 17,674 | 5.37 | ||||||||||||||
United States and Puerto | ||||||||||||||||||||
Rico government | ||||||||||||||||||||
obligations: | 453,831 | - | 1,169 | 27,025 | 427,975 | 1.9 | ||||||||||||||
Other (1) | ||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
FHLMC certificates: | ||||||||||||||||||||
After 1 to 5 years | 432 | - | 46 | - | 478 | 4.95 | ||||||||||||||
After 10 years | 304,628 | - | 2,733 | 560 | 306,801 | 2.17 | ||||||||||||||
305,060 | - | 2,779 | 560 | 307,279 | 2.17 | |||||||||||||||
GNMA certificates: | ||||||||||||||||||||
Due within one year | 17 | - | - | - | 17 | 3.52 | ||||||||||||||
After 1 to 5 years | 55 | - | 2 | - | 57 | 3.93 | ||||||||||||||
After 5 to 10 years | 24,189 | - | 956 | - | 25,145 | 3.62 | ||||||||||||||
After 10 years | 316,122 | - | 21,942 | - | 338,064 | 3.85 | ||||||||||||||
340,383 | - | 22,900 | - | 363,283 | 3.83 | |||||||||||||||
FNMA certificates: | ||||||||||||||||||||
After 1 to 5 years | 3,743 | - | 155 | - | 3,898 | 3.37 | ||||||||||||||
After 5 to 10 years | 16,924 | - | 646 | 31 | 17,539 | 2.9 | ||||||||||||||
After 10 years | 814,520 | - | 10,059 | 2,251 | 822,328 | 2.35 | ||||||||||||||
835,187 | - | 10,860 | 2,282 | 843,765 | 2.37 | |||||||||||||||
Collateralized mortgage | ||||||||||||||||||||
obligations issued or | ||||||||||||||||||||
guaranteed by the FHLMC: | ||||||||||||||||||||
Other mortgage pass-through | ||||||||||||||||||||
trust certificates: | ||||||||||||||||||||
Over 5 to 10 years | 108 | - | - | - | 108 | 7.26 | ||||||||||||||
After 10 years | 43,012 | 11,296 | - | - | 31,716 | 2.15 | ||||||||||||||
43,120 | 11,296 | - | - | 31,824 | 2.15 | |||||||||||||||
Total mortgage-backed | ||||||||||||||||||||
securities | 1,523,750 | 11,296 | 36,539 | 2,842 | 1,546,151 | 2.65 | ||||||||||||||
Other (1) | ||||||||||||||||||||
After 1 to 5 years | 100 | - | - | - | 100 | 1.5 | ||||||||||||||
Total investment securities | ||||||||||||||||||||
available for sale | $ | 1,977,681 | $ | 11,296 | $ | 37,708 | $ | 29,867 | $ | 1,974,226 | 2.48 | |||||||||
-1 | Represents investment in a Community Investment Fund. | |||||||||||||||||||
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 | |||||||||||||||
Collateralized mortgage | ||||||||||||||||||||
obligations issued or | ||||||||||||||||||||
guaranteed by the FHLMC: | ||||||||||||||||||||
Other mortgage pass-through | ||||||||||||||||||||
trust certificates: | ||||||||||||||||||||
Over 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 | |||||||||
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 non credit loss component of OTTI are presented as part of OCI. | ||||||||||||||||||||
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 March 31, 2015 and December 31, 2014. 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 March 31, 2015 | ||||||||||||||||||||
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 | $ | - | $ | - | $ | 36,314 | $ | 24,070 | $ | 36,314 | $ | 24,070 | ||||||||
U.S. government agencies obligations | 4,999 | - | 261,252 | 2,955 | 266,251 | 2,955 | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
FNMA | 311,339 | 1,195 | 99,932 | 1,087 | 411,271 | 2,282 | ||||||||||||||
FHLMC | 110,475 | 352 | 21,419 | 208 | 131,894 | 560 | ||||||||||||||
Collateralized mortgage | ||||||||||||||||||||
obligations issued or | ||||||||||||||||||||
Other mortgage pass-through | ||||||||||||||||||||
trust certificates | - | - | 31,716 | 11,296 | 31,716 | 11,296 | ||||||||||||||
Corporate bonds | ||||||||||||||||||||
$ | 426,813 | $ | 1,547 | $ | 450,633 | $ | 39,616 | $ | 877,446 | $ | 41,163 | |||||||||
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 issued or | ||||||||||||||||||||
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 | |||||||||
Assessment for OTTI | ||||||||||||||||||||
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 an OTTI. A debt security is considered impaired if the fair value is less than its amortized cost basis at the reporting date. The accounting literature requires the Corporation to assess whether the unrealized loss is other than temporary. | ||||||||||||||||||||
OTTI losses must be recognized in earnings if an investor 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 an investor 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 a component of net impairment losses on investment securities in the accompanying consolidated statements of income, while the remaining portion of the impairment loss is recognized in OCI, 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. | ||||||||||||||||||||
Debt securities issued by U.S. government agencies, government-sponsored entities and the Treasury accounted for approximately 96% of the total available-for-sale portfolio as of March 31, 2015 and no credit losses are expected, given the explicit and implicit guarantees provided by the U.S. federal government. The Corporation's assessment for OTTI was concentrated mainly on private label mortgage-backed securities (“MBS”) with an amortized cost of $43.0 million for which credit losses are evaluated on a quarterly basis and on Puerto Rico Government obligations held as part of the available-for-sale securities portfolio. 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 | ||||||||||||||||||||
Quarter ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Total other-than-temporary impairment losses | $ | - | $ | - | ||||||||||||||||
Credit loss on debt securities for which an OTTI was not previously recognized | ||||||||||||||||||||
Portion of other-than-temporary impairment losses | ||||||||||||||||||||
previously recognized in OCI | -156 | - | ||||||||||||||||||
Net impairment losses recognized in earnings | $ | -156 | $ | - | ||||||||||||||||
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: | ||||||||||||||||||||
Quarter ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Credit losses at the beginning of the period | $ | 5,777 | $ | 5,389 | ||||||||||||||||
Additions: | ||||||||||||||||||||
Credit losses on debt securities for which an | ||||||||||||||||||||
OTTI was previously recognized | 156 | - | ||||||||||||||||||
Ending balance of credit losses on debt securities held for | ||||||||||||||||||||
which a portion of an OTTI was recognized in OCI | $ | 5,933 | $ | 5,389 | ||||||||||||||||
For the first quarter of 2015, the $156 thousand credit related impairment loss is related to private label MBS, which are collateralized by fixed-rate mortgages on single-family residential properties in the United States. The interest rates on these private-label MBS are 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-Mar-15 | 31-Dec-14 | |||||||||||||||||||
Weighted | Weighted | |||||||||||||||||||
Average | Range | Average | Range | |||||||||||||||||
Discount rate | 14.50% | 14.50% | 14.50% | 14.50% | ||||||||||||||||
Prepayment rate | 32% | 18.04%-100.00% | 32% | 19.89%-100.00% | ||||||||||||||||
Projected Cumulative Loss Rate | 7.30% | 0.00%-80.00% | 7.90% | 0.64%-80.00% | ||||||||||||||||
As of March 31, 2015, the Corporation held approximately $65.5 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 $41.5 million. During the first quarter of 2015, the fair value of these obligation decreased by $6.1 million. In February and March 2014, Standard & Poor's (“S&P”), Moody's Investor Service (“Moody's”) and Fitch Ratings (“Fitch”) downgraded the Commonwealth of Puerto Rico general obligations bonds and other obligations of Puerto Rico instrumentalities to non-investment grade categories. In February and April 2015, Moody's and S&P downgraded the Puerto Rico's general obligation debt further and right now is rated seven notches below investment grade. | ||||||||||||||||||||
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 further 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. | ||||||||||||||||||||
OTHER_EQUITY_SECURITIES
OTHER EQUITY SECURITIES | 3 Months Ended |
Mar. 31, 2015 | |
OTHER EQUITY SECURITIES | NOTE 6 – OTHER EQUITY SECURITIES |
Institutions that are members of the FHLB system are required to maintain a minimum investment in FHLB stock. Such minimum investment 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 March 31, 2015 and December 31, 2014, the Corporation had investments in FHLB stock with a book value of $25.5 million. The net realizable value is a reasonable proxy for the fair value of these instruments. Dividend income from FHLB stock for each of the quarters ended March 31, 2015 and 2014 was $0.3 million. | |
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 March 31, 2015 and December 31, 2014 was $0.7 million and $0.3 million, respectively. | |
LOAN_PORTFOLIO
LOAN PORTFOLIO | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
LOAN PORTFOLIO | NOTE 7 – LOANS HELD FOR INVESTMENT | ||||||||||||||||||||||||
The following provides information about the loan portfolio held for investment: | |||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Residential mortgage loans, mainly secured by first mortgages | $ | 3,331,620 | $ | 3,011,187 | |||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||
Construction loans | 124,440 | 123,480 | |||||||||||||||||||||||
Commercial mortgage loans | 1,649,263 | 1,665,787 | |||||||||||||||||||||||
Commercial and Industrial loans (1) | 2,442,867 | 2,479,437 | |||||||||||||||||||||||
Loans to local financial institution collateralized by | |||||||||||||||||||||||||
Total Commercial loans | 4,216,570 | 4,268,704 | |||||||||||||||||||||||
Finance leases | 230,183 | 232,126 | |||||||||||||||||||||||
Consumer loans | 1,706,999 | 1,750,419 | |||||||||||||||||||||||
Loans held for investment | 9,485,372 | 9,262,436 | |||||||||||||||||||||||
Allowance for loan and lease losses | -226,064 | -222,395 | |||||||||||||||||||||||
Loans held for investment, net | $ | 9,259,308 | $ | 9,040,041 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||
-1 | As of March 31, 2015 and December 31, 2014, includes $1.1 billion 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 as of the indicated dates were as follows: | |||||||||||||||||||||||||
(In thousands) | March 31, | December 31, | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Non-performing loans: | |||||||||||||||||||||||||
Residential mortgage | $ | 172,583 | $ | 180,707 | |||||||||||||||||||||
Commercial mortgage | 142,385 | 148,473 | |||||||||||||||||||||||
Commercial and Industrial | 186,500 | 122,547 | |||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||
Land | 14,091 | 15,030 | |||||||||||||||||||||||
Construction-residential | 13,072 | 14,324 | |||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||
Auto loans | 19,043 | 22,276 | |||||||||||||||||||||||
Finance leases | 2,979 | 5,245 | |||||||||||||||||||||||
Other consumer loans | 12,891 | 15,294 | |||||||||||||||||||||||
Total non-performing loans held for investment (1)(2)(3) | $ | 563,544 | $ | 523,896 | |||||||||||||||||||||
_______________ | |||||||||||||||||||||||||
-1 | As of March 31, 2015 and December 31, 2014, excludes $54.6 million of non-performing loans held for sale. | ||||||||||||||||||||||||
-2 | Amount excludes purchased-credit impaired ("PCI") loans with a carrying value of approximately $181.1 million and $102.6 million as of March 31, 2015 and December 31, 2014, respectively, primarily mortgage loans acquired from Doral Bank in the first quarter of 2015 and 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 $434.2 million and $494.6 million of Troubled Debt Restructuring ("TDR") loans that are in compliance with the modified terms and in accrual status as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||
Loans in Process of Foreclosure | |||||||||||||||||||||||||
As of March 31, 2015, the recorded investment of residential mortgage loans collateralized by residential real estate property that are in the process of foreclosure amounted to $161.1 million. The Corporation commences the foreclosure process on residential real estate loans when a borrower becomes 120 days delinquent in accordance with Consumer Finance Protection Bureau Guidelines (CFPB). Foreclosure procedures and timelines vary depending on whether the property address resides on a judicial or non-judicial state. Judicial states (Puerto Rico) require the foreclosure to be processed through the state's court while non-judicial states are processed without court intervention. Foreclosure timelines vary according to state law and Investor Guidelines. Occasionally foreclosures may be delayed due to mandatory mediations, bankruptcy, court delays and title issues, among other reasons. | |||||||||||||||||||||||||
The Corporation’s aging of the loans held for investment portfolio is as follows: | |||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||
(In thousands) | 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) | |||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||
FHA/VA and other government-guaranteed | |||||||||||||||||||||||||
loans (2)(3)(4) | $ | - | $ | 8,200 | $ | 96,086 | $ | 104,286 | $ | - | $ | 51,376 | $ | 155,662 | $ | 96,086 | |||||||||
Other residential mortgage loans (4) | - | 88,209 | 191,014 | 279,223 | 177,601 | 2,719,134 | 3,175,958 | 18,431 | |||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and Industrial loans | 22,933 | 3,193 | 207,063 | 233,189 | - | 2,209,678 | 2,442,867 | 20,563 | |||||||||||||||||
Commercial mortgage loans (4) | - | 1,564 | 165,778 | 167,342 | 3,279 | 1,478,642 | 1,649,263 | 23,393 | |||||||||||||||||
Construction: | |||||||||||||||||||||||||
Land (4) | - | 383 | 14,291 | 14,674 | - | 39,516 | 54,190 | 200 | |||||||||||||||||
Construction-commercial | - | - | - | - | - | 27,456 | 27,456 | - | |||||||||||||||||
Construction-residential (4) | - | - | 13,072 | 13,072 | - | 29,722 | 42,794 | - | |||||||||||||||||
Consumer: | |||||||||||||||||||||||||
Auto loans | 76,721 | 18,548 | 19,043 | 114,312 | - | 914,058 | 1,028,370 | - | |||||||||||||||||
Finance leases | 10,975 | 2,893 | 2,979 | 16,847 | - | 213,336 | 230,183 | - | |||||||||||||||||
Other consumer loans | 10,355 | 5,464 | 16,339 | 32,158 | 234 | 646,237 | 678,629 | 3,448 | |||||||||||||||||
Total loans held for investment | $ | 120,984 | $ | 128,454 | $ | 725,665 | $ | 975,103 | $ | 181,114 | $ | 8,329,155 | $ | 9,485,372 | $ | 162,121 | |||||||||
_____________ | |||||||||||||||||||||||||
-1 | Includes non-performing loans and accruing loans which are contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges 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 $30.1 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 18 months delinquent, and are no longer accruing interest as of March 31, 2015. | ||||||||||||||||||||||||
-3 | As of March 31, 2015, includes $26.2 million of defaulted loans collateralizing Government National Mortgage Association ("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 March 31, 2015 amounted to $12.2 million, $177.4 million, $38.4 million, $6.1 million, and $1.6 million, respectively. | ||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
(In thousands) | 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) | |||||||||||||||||
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 (4) | - | - | - | - | - | 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 which 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, which 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. | ||||||||||||||||||||||||
The Corporation’s credit quality indicators by loan type as of March 31, 2015 and December 31, 2014 are summarized below: | |||||||||||||||||||||||||
Commercial Credit Exposure-Credit Risk Profile Based on Creditworthiness Category: | |||||||||||||||||||||||||
Substandard | Doubtful | Loss | Total Adversely Classified (1) | Total Portfolio | |||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Commercial mortgage | $ | 227,195 | $ | - | $ | - | $ | 227,195 | $ | 1,649,263 | |||||||||||||||
Construction: | |||||||||||||||||||||||||
Land | 15,930 | - | - | 15,930 | 54,190 | ||||||||||||||||||||
Construction-commercial | 11,790 | - | - | 11,790 | 27,456 | ||||||||||||||||||||
Construction-residential | 12,265 | 808 | - | 13,073 | 42,794 | ||||||||||||||||||||
Commercial and Industrial | 229,112 | 6,293 | 789 | 236,194 | 2,442,867 | ||||||||||||||||||||
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 | ||||||||||||||||||||
_________ | |||||||||||||||||||||||||
-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) as of March 31, 2015 and December 31, 2014, 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 that 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-Mar-15 | 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 | $ | 155,662 | $ | 2,825,774 | $ | 1,009,327 | $ | 227,204 | $ | 665,504 | |||||||||||||||
Purchased Credit-Impaired (2) | - | 177,601 | - | - | 234 | ||||||||||||||||||||
Non-performing | - | 172,583 | 19,043 | 2,979 | 12,891 | ||||||||||||||||||||
Total | $ | 155,662 | $ | 3,175,958 | $ | 1,028,370 | $ | 230,183 | $ | 678,629 | |||||||||||||||
-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 $30.1 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 18 months delinquent, and are no longer accruing interest as of March 31, 2015. | ||||||||||||||||||||||||
-2 | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loan will accrete interest income over the remaining life of the loans using estimated cash flow analysis. | ||||||||||||||||||||||||
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, which 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 loan 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 purchased credit-impaired loans, which are reported separately as discussed below: | |||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Specific Allowance | Average Recorded Investment | Interest Income Recognized On Accrual Basis | Interest Income Recognized On Cash Basis | ||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Other residential mortgage loans | 62,337 | 68,263 | - | 63,040 | 199 | 79 | |||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial mortgage loans | 100,797 | 120,956 | - | 101,196 | 406 | 425 | |||||||||||||||||||
Commercial and Industrial Loans | 32,080 | 36,975 | - | 33,802 | 18 | 200 | |||||||||||||||||||
Construction: | |||||||||||||||||||||||||
Land | 1,473 | 4,726 | - | 1,473 | - | - | |||||||||||||||||||
Construction-commercial | - | - | - | - | - | - | |||||||||||||||||||
Construction-residential | 6,762 | 9,346 | - | 6,943 | 41 | - | |||||||||||||||||||
Consumer: | |||||||||||||||||||||||||
Auto loans | 562 | 562 | - | 562 | 10 | - | |||||||||||||||||||
Finance leases | - | - | - | - | - | - | |||||||||||||||||||
Other consumer loans | 3,229 | 4,634 | - | 3,268 | 10 | 26 | |||||||||||||||||||
$ | 207,240 | $ | 245,462 | $ | - | $ | 210,284 | $ | 684 | $ | 730 | ||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Other residential mortgage loans | 367,189 | 416,579 | 14,862 | 368,999 | 4,224 | 414 | |||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial mortgage loans | 123,568 | 143,090 | 13,238 | 124,701 | 475 | 279 | |||||||||||||||||||
Commercial and Industrial Loans | 194,576 | 227,417 | 24,871 | 196,896 | 1,950 | 43 | |||||||||||||||||||
Construction: | |||||||||||||||||||||||||
Land | 9,355 | 13,181 | 1,220 | 9,413 | 15 | 9 | |||||||||||||||||||
Construction-commercial | 11,790 | 11,790 | 1,145 | 11,790 | 128 | - | |||||||||||||||||||
Construction-residential | 8,213 | 8,917 | 1,016 | 8,202 | 3 | - | |||||||||||||||||||
Consumer: | |||||||||||||||||||||||||
Auto loans | 16,986 | 16,986 | 3,058 | 17,472 | 328 | - | |||||||||||||||||||
Finance leases | 2,053 | 2,053 | 186 | 2,137 | 48 | - | |||||||||||||||||||
Other consumer loans | 14,011 | 14,259 | 2,544 | 14,266 | 382 | 3 | |||||||||||||||||||
$ | 747,741 | $ | 854,272 | $ | 62,140 | $ | 753,876 | $ | 7,553 | $ | 748 | ||||||||||||||
Total: | |||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Other residential mortgage loans | 429,526 | 484,842 | 14,862 | 432,039 | 4,423 | 493 | |||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial mortgage loans | 224,365 | 264,046 | 13,238 | 225,897 | 881 | 704 | |||||||||||||||||||
Commercial and Industrial Loans | 226,656 | 264,392 | 24,871 | 230,698 | 1,968 | 243 | |||||||||||||||||||
Construction: | |||||||||||||||||||||||||
Land | 10,828 | 17,907 | 1,220 | 10,886 | 15 | 9 | |||||||||||||||||||
Construction-commercial | 11,790 | 11,790 | 1,145 | 11,790 | 128 | - | |||||||||||||||||||
Construction-residential | 14,975 | 18,263 | 1,016 | 15,145 | 44 | - | |||||||||||||||||||
Consumer: | |||||||||||||||||||||||||
Auto loans | 17,548 | 17,548 | 3,058 | 18,034 | 338 | - | |||||||||||||||||||
Finance leases | 2,053 | 2,053 | 186 | 2,137 | 48 | - | |||||||||||||||||||
Other consumer loans | 17,240 | 18,893 | 2,544 | 17,534 | 392 | 29 | |||||||||||||||||||
$ | 954,981 | $ | 1,099,734 | $ | 62,140 | $ | 964,160 | $ | 8,237 | $ | 1,478 | ||||||||||||||
Impaired Loans | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Specific Allowance | Average Recorded Investment | ||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
Other residential mortgage loans | 74,177 | 80,522 | - | 75,711 | |||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial mortgage loans | 109,271 | 132,170 | - | 113,674 | |||||||||||||||||||||
Commercial and Industrial Loans | 41,131 | 47,647 | - | 42,011 | |||||||||||||||||||||
Construction: | |||||||||||||||||||||||||
Land | 2,994 | 6,357 | - | 3,030 | |||||||||||||||||||||
Construction-commercial | - | - | - | - | |||||||||||||||||||||
Construction-residential | 7,461 | 10,100 | - | 8,123 | |||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||
Auto loans | - | - | - | - | |||||||||||||||||||||
Finance leases | - | - | - | - | |||||||||||||||||||||
Other consumer loans | 3,778 | 5,072 | - | 3,924 | |||||||||||||||||||||
$ | 238,812 | $ | 281,868 | $ | - | $ | 246,473 | ||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
Other residential mortgage loans | 350,067 | 396,203 | 10,854 | 357,129 | |||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial mortgage loans | 101,467 | 116,329 | 14,289 | 104,191 | |||||||||||||||||||||
Commercial and Industrial Loans | 195,240 | 226,431 | 21,314 | 198,930 | |||||||||||||||||||||
Construction: | |||||||||||||||||||||||||
Land | 9,120 | 12,821 | 794 | 10,734 | |||||||||||||||||||||
Construction-commercial | 11,790 | 11,790 | 790 | 11,867 | |||||||||||||||||||||
Construction-residential | 8,102 | 8,834 | 993 | 8,130 | |||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||
Auto loans | 16,991 | 16,991 | 2,787 | 18,504 | |||||||||||||||||||||
Finance leases | 2,181 | 2,181 | 253 | 2,367 | |||||||||||||||||||||
Other consumer loans | 11,637 | 12,136 | 3,131 | 12,291 | |||||||||||||||||||||
$ | 706,595 | $ | 803,716 | $ | 55,205 | $ | 724,143 | ||||||||||||||||||
Total: | |||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
Other residential mortgage loans | 424,244 | 476,725 | 10,854 | 432,840 | |||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial mortgage loans | 210,738 | 248,499 | 14,289 | 217,865 | |||||||||||||||||||||
Commercial and Industrial Loans | 236,371 | 274,078 | 21,314 | 240,941 | |||||||||||||||||||||
Construction: | |||||||||||||||||||||||||
Land | 12,114 | 19,178 | 794 | 13,764 | |||||||||||||||||||||
Construction-commercial | 11,790 | 11,790 | 790 | 11,867 | |||||||||||||||||||||
Construction-residential | 15,563 | 18,934 | 993 | 16,253 | |||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||
Auto loans | 16,991 | 16,991 | 2,787 | 18,504 | |||||||||||||||||||||
Finance leases | 2,181 | 2,181 | 253 | 2,367 | |||||||||||||||||||||
Other consumer loans | 15,415 | 17,208 | 3,131 | 16,215 | |||||||||||||||||||||
$ | 945,407 | $ | 1,085,584 | $ | 55,205 | $ | 970,616 | ||||||||||||||||||
Interest income of approximately $7.6 million ($5.9 million accrual basis and $1.7 million cash basis) was recognized on impaired loans for the first quarter of 2014. | |||||||||||||||||||||||||
The following table shows the activity for impaired loans and the related specific reserve during the first quarter of 2015 and 2014: | |||||||||||||||||||||||||
Quarter ended | |||||||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | ||||||||||||||||||||||||
Impaired Loans: | (In thousands) | ||||||||||||||||||||||||
Balance at beginning of period | $ | 945,407 | $ | 919,112 | |||||||||||||||||||||
Loans determined impaired during the period | 62,933 | 54,277 | |||||||||||||||||||||||
Charge-offs | -11,715 | -32,039 | |||||||||||||||||||||||
Loans sold, net of charge-offs | -1,137 | - | |||||||||||||||||||||||
Increases to impaired loans- additional disbursements | 519 | 625 | |||||||||||||||||||||||
Foreclosures | -9,952 | -4,006 | |||||||||||||||||||||||
Loans no longer considered impaired | -9,898 | -3,728 | |||||||||||||||||||||||
Paid in full or partial payments | -21,176 | -54,853 | |||||||||||||||||||||||
Balance at end of period | $ | 954,981 | $ | 879,388 | |||||||||||||||||||||
Quarter ended | |||||||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | ||||||||||||||||||||||||
Specific Reserve: | (In thousands) | ||||||||||||||||||||||||
Balance at beginning of period | $ | 55,205 | $ | 102,601 | |||||||||||||||||||||
Provision for loan losses | 18,650 | 14,454 | |||||||||||||||||||||||
Charge-offs | -11,715 | -32,039 | |||||||||||||||||||||||
Balance at end of period | $ | 62,140 | $ | 85,016 | |||||||||||||||||||||
Purchased Credit Impaired (“PCI”) Loans | |||||||||||||||||||||||||
As described in Note 2, Business Combination, the Corporation acquired PCI loans as part of the Doral Bank transaction and in previously completed asset acquisitions which are accounted under ASC 310-30. These previous transactions include the acquisition from Doral Financial in the second quarter of 2014 of all its rights, title and interest in first and second residential mortgages loans in full satisfaction of secured borrowings owed by such entity to FirstBank, and the acquisition in 2012 of a FirstBank-branded credit card loans portfolio from FIA Card Services (“FIA”). | |||||||||||||||||||||||||
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. Since the loans are accounted for by the Corporation under ASC 310-30, they 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 recognizes additional losses for this portfolio when it is probable that the Corporation will be unable to collect all cash flows expected as of the acquisition date plus additional cash flows expected to be collected arising from changes in estimates after the acquisition date. | |||||||||||||||||||||||||
The carrying amount of PCI loans follows: | |||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Residential mortgage loans | $ | 177,601 | $ | 98,494 | |||||||||||||||||||||
Commercial mortgage loans | 3,279 | 3,393 | |||||||||||||||||||||||
Credit Cards | 234 | 717 | |||||||||||||||||||||||
$ | 181,114 | $ | 102,604 | ||||||||||||||||||||||
The following tables present PCI loans by past due status as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||
As of March 31, 2015 | 30-59 Days | 60-89 Days | 90 days or more | Total Past Due | Total PCI loans | ||||||||||||||||||||
Current | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Residential mortgage loans (1) | $ | - | $ | 13,572 | $ | 15,775 | $ | 29,347 | $ | 148,254 | $ | 177,601 | |||||||||||||
Commercial mortgage loans (1) | - | 130 | 653 | 783 | 2,496 | 3,279 | |||||||||||||||||||
Credit Cards | 22 | - | 22 | 44 | 190 | 234 | |||||||||||||||||||
$ | 22 | $ | 13,702 | $ | 16,450 | $ | 30,174 | $ | 150,940 | $ | 181,114 | ||||||||||||||
_____________ | |||||||||||||||||||||||||
-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 March 31, 2015 amounted to $32.0 million and $0.3 million, respectively. | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
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 Bank in the first quarter of 2015 accounted for pursuant to ASC 310-30 as of the acquisition date: | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Contractually- required principal and interest | $ | 166,947 | |||||||||||||||||||||||
Less: Nonaccretable difference | -48,739 | ||||||||||||||||||||||||
Cash flows expected to be collected | 118,208 | ||||||||||||||||||||||||
Less: Accretable yield | -38,319 | ||||||||||||||||||||||||
Fair value of loans acquired in 2015 (1) | $ | 79,889 | |||||||||||||||||||||||
-1 | Amounts are preliminary estimates based on the best information available at the acquisition date and adjustments in future quarters may occur up to one year from the date of acquisition. | ||||||||||||||||||||||||
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 the first quarter of 2015 and 2014, the Corporation did not record charges to the provision for loan losses related to PCI loans. | |||||||||||||||||||||||||
Changes in the accretable yield of PCI loans for the quarters ended March 31, 2015 and 2014 were as follows: | |||||||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Balance at beginning of period | $ | 82,460 | $ | - | |||||||||||||||||||||
Additions (accretable yield at acquisition | |||||||||||||||||||||||||
of loans from Doral Bank) | 38,319 | - | |||||||||||||||||||||||
Accretion recognized in earnings | -2,277 | - | |||||||||||||||||||||||
Balance at end of period | $ | 118,502 | $ | - | |||||||||||||||||||||
Changes in the carrying amount of loans accounted for pursuant to ASC 310-30 follows: | |||||||||||||||||||||||||
Quarter ended | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Balance at beginning of period | $ | 102,604 | |||||||||||||||||||||||
Additions | 79,889 | ||||||||||||||||||||||||
Accretion | 2,277 | ||||||||||||||||||||||||
Collections | -3,656 | ||||||||||||||||||||||||
Ending balance | $ | 181,114 | |||||||||||||||||||||||
The outstanding principal balance of PCI loans, including amounts charged off by the Corporation, amounted to $226.7 million as of March 31, 2015 (December 31, 2014- $135.5 million). | |||||||||||||||||||||||||
Purchases and Sales of Loans | |||||||||||||||||||||||||
As described in Note 2, Business Combination, on February 27, 2015, FirstBank acquired $324.8 million in principal of loans, primarily residential mortgage loans through an alliance with other co-bidders on the failed Doral Bank, a portion of which was accounted as PCI loans as described above. 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 through an FDIC facilitated transaction. The transaction was accounted under ASC Topic 820, which requires all recognized assets acquired and liabilities assumed in a business combination to be measured at their acquisition-date fair values. The fair value of the loans acquired in this transaction was $311.4 million at acquisition date. | |||||||||||||||||||||||||
In addition, during the first quarter of 2015, the Corporation purchased $23.8 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 and purchased a $21.1 million participation on a commercial loan. 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 government-sponsored entities (“GSEs”) such as Fannie Mae (“FNMA”) and Freddie Mac (“FHLMC”), generally securitize the transferred loans into mortgage-backed securities for sale into the secondary market. The Corporation sold approximately $38.4 million of performing residential mortgage loans in the secondary market to FNMA and FHLMC during the first quarter of 2015. Also, the Corporation securitized $46.9 million of FHA/VA mortgage loans into GNMA mortgage-backed securities during the first quarter of 2015. 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, Transfer and Servicing, once the Corporation has the unilateral ability to repurchase the 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 the first quarter of 2015, the Corporation repurchased pursuant to its repurchase option with GNMA $3.0 million 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 amount of $0.2 million during the first quarter of 2015. 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. No losses related to breaches of representations and warranties were incurred in the first quarter of 2015. Historically, losses experienced on these loans have been immaterial. As a consequence, as of March 31, 2015, 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. | |||||||||||||||||||||||||
In addition, the Corporation sold $3.5 million of non-performing commercial and industrial loans in the first quarter of 2015. | |||||||||||||||||||||||||
Loan Portfolio Concentration | |||||||||||||||||||||||||
The Corporation's primary lending area is Puerto Rico. The Corporation's banking subsidiary, First Bank, 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 $9.5 billion as of March 31, 2015, approximately 83% have credit risk concentration in Puerto Rico, 11% in the United States, and 6% in the USVI and BVI. | |||||||||||||||||||||||||
As of March 31, 2015, the Corporation had $335.7 million of credit facilities granted to the Puerto Rico government, its municipalities and public corporations, of which $321.7 million was outstanding, compared to $308.0 million outstanding as of December 31, 2014. In addition, the outstanding balance of facilities granted to the government of the Virgin Islands amounted to $61.0 million as of March 31, 2015, compared to $57.7 million as of December 31, 2014. Approximately $201.3 million of the granted credit facilities outstanding 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 $24.5 million consists of loans to units of the central government, and approximately $95.9 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 facility extended to the Puerto Rico Electric Power Authority (“PREPA”) for fuel purchases that have priority over senior bonds and other debt. The $75 million outstanding under this credit facility was placed in non-accrual status in the first quarter of 2015 since the government agency has not yet completed its restructuring plan. 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 $132.5 million outstanding as of March 31, 2015 in loans to the hotel industry in Puerto Rico guaranteed by the Puerto Rico Tourism Development Fund (“TDF”), compared to $133.3 million as of December 31, 2014. 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 5, 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 March 31, 2015, the Corporation's total TDR loans of $705.1 million consisted of $354.1 million of residential mortgage loans, $166.7 million of commercial and industrial loans, $136.8 million of commercial mortgage loans, $12.5 million of construction loans, and $35.0 million of consumer loans. Outstanding unfunded commitments on TDR loans amounted to $47 thousand as of March 31, 2015. | |||||||||||||||||||||||||
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 TDR regardless of whether the borrower enters into a permanent modification. As of March 31, 2015, we classified an additional $11.5 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 assist 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, timing of 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-Mar-15 | |||||||||||||||||||||||||
(In thousands) | 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 | |||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||
Non- FHA/VA Residential Mortgage loans | $ | 26,039 | $ | 5,206 | $ | 281,824 | $ | - | $ | 41,025 | $ | 354,094 | |||||||||||||
Commercial Mortgage Loans | 26,952 | 12,685 | 73,956 | - | 23,187 | 136,780 | |||||||||||||||||||
Commercial and Industrial Loans | 4,431 | 78,171 | 30,830 | 3,057 | 50,247 | 166,736 | |||||||||||||||||||
Construction Loans: | |||||||||||||||||||||||||
Land | - | 201 | 1,680 | - | 596 | 2,477 | |||||||||||||||||||
Construction-residential | 6,154 | 378 | 3,095 | - | 433 | 10,060 | |||||||||||||||||||
Consumer Loans - Auto | - | 324 | 10,736 | - | 6,487 | 17,547 | |||||||||||||||||||
Finance Leases | - | 285 | 1,768 | - | - | 2,053 | |||||||||||||||||||
Consumer Loans - Other | 37 | 317 | 12,774 | 379 | 1,869 | 15,376 | |||||||||||||||||||
Total Troubled Debt Restructurings (2) | $ | 63,613 | $ | 97,567 | $ | 416,663 | $ | 3,436 | $ | 123,844 | $ | 705,123 | |||||||||||||
-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 TDRs held for sale amounting to $45.7 million as of March 31, 2015. | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
(In thousands) | 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 | |||||||||||||||||||
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 TDRs held for sale amounting to $45.7 million as of December 31, 2014. | ||||||||||||||||||||||||
The following table presents the Corporation's TDR activity | |||||||||||||||||||||||||
(In thousands) | Quarter Ended | ||||||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | ||||||||||||||||||||||||
Beginning Balance of TDRs | $ | 694,453 | $ | 630,258 | |||||||||||||||||||||
New TDRs | 31,601 | 19,935 | |||||||||||||||||||||||
Increases to existing TDRs - additional disbursements | 335 | 27 | |||||||||||||||||||||||
Charge-offs post modification | -3,781 | -7,982 | |||||||||||||||||||||||
Foreclosures | -7,156 | -1,074 | |||||||||||||||||||||||
Paid-off, partial payments, and other | -10,329 | -18,844 | |||||||||||||||||||||||
Ending balance of TDRs | $ | 705,123 | $ | 622,320 | |||||||||||||||||||||
TDRs are classified as either accrual or nonaccrual loans. A loan on nonaccrual 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 loans 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 as 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 the first quarter of 2015. | |||||||||||||||||||||||||
The following table provides a breakdown between the accrual and nonaccrual status of TDRs: | |||||||||||||||||||||||||
(In thousands) | 31-Mar-15 | ||||||||||||||||||||||||
Accrual | Nonaccrual (1)(2) | Total TDRs | |||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | $ | 273,890 | $ | 80,204 | $ | 354,094 | |||||||||||||||||||
Commercial Mortgage Loans | 75,541 | 61,239 | 136,780 | ||||||||||||||||||||||
Commercial and Industrial Loans | 55,394 | 111,342 | 166,736 | ||||||||||||||||||||||
Construction Loans: | |||||||||||||||||||||||||
Land | 779 | 1,698 | 2,477 | ||||||||||||||||||||||
Construction-residential | 3,472 | 6,588 | 10,060 | ||||||||||||||||||||||
Consumer Loans - Auto | 11,011 | 6,536 | 17,547 | ||||||||||||||||||||||
Finance Leases | 1,875 | 178 | 2,053 | ||||||||||||||||||||||
Consumer Loans - Other | 12,237 | 3,139 | 15,376 | ||||||||||||||||||||||
Total Troubled Debt Restructurings | $ | 434,199 | $ | 270,924 | $ | 705,123 | |||||||||||||||||||
-1 | Included in non-accrual loans are $121.9 million in loans that are performing under the terms of a restructuring agreement but are reported in non-accrual 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 non-accrual TDRs held for sale with a carrying value of $45.7 million as of March 31, 2015. | ||||||||||||||||||||||||
(In thousands) | 31-Dec-14 | ||||||||||||||||||||||||
Accrual | Nonaccrual (1)(2) | Total TDRs | |||||||||||||||||||||||
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 non-accrual loans are $52.8 million in loans that are performing under the terms of a restructuring agreement but are reported in non-accrual 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 non-accrual TDRs held for sale with a carrying value of $45.7 million as of December 31, 2014. | ||||||||||||||||||||||||
TDRs exclude restructured residential mortgage loans that are guaranteed by the U.S. federal government (i.e., FHA/VA loans) totaling $65.7 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. | |||||||||||||||||||||||||
Loans modifications that are considered TDRs and were completed during the first quarter of 2015 and 2014 were as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | Quarter ended March 31, 2015 | ||||||||||||||||||||||||
Number of contracts | Pre-modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | 81 | $ | 11,495 | $ | 11,265 | ||||||||||||||||||||
Commercial Mortgage Loans | 8 | 12,821 | 12,931 | ||||||||||||||||||||||
Commercial and Industrial Loans | 1 | 1,681 | 1,681 | ||||||||||||||||||||||
Construction Loans: | |||||||||||||||||||||||||
Land | 1 | 64 | 64 | ||||||||||||||||||||||
Consumer Loans - Auto | 146 | 2,173 | 2,130 | ||||||||||||||||||||||
Finance Leases | 8 | 233 | 184 | ||||||||||||||||||||||
Consumer Loans - Other | 377 | 3,391 | 3,346 | ||||||||||||||||||||||
Total Troubled Debt Restructurings | 622 | $ | 31,858 | $ | 31,601 | ||||||||||||||||||||
(Dollars in thousands) | Quarter ended March 31, 2014 | ||||||||||||||||||||||||
Number of contracts | Pre-modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | 47 | $ | 7,709 | $ | 7,711 | ||||||||||||||||||||
Commercial Mortgage Loans | 3 | 834 | 837 | ||||||||||||||||||||||
Commercial and Industrial Loans | 5 | 7,964 | 7,630 | ||||||||||||||||||||||
Construction Loans: | |||||||||||||||||||||||||
Consumer Loans - Auto | 117 | 1,605 | 1,605 | ||||||||||||||||||||||
Finance Leases | 10 | 193 | 193 | ||||||||||||||||||||||
Consumer Loans - Other | 429 | 1,959 | 1,959 | ||||||||||||||||||||||
Total Troubled Debt Restructurings | 611 | $ | 20,264 | $ | 19,935 | ||||||||||||||||||||
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 quarters ended March 31, 2015 and March 31, 2014 and had become TDRs during the 12-month period preceding the default date, were as follows: | |||||||||||||||||||||||||
Quarter ended March 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | |||||||||||||||||||||||
Number of contracts | Recorded Investment | Number of contracts | Recorded Investment | ||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | 12 | $ | 1,773 | 14 | $ | 2,552 | |||||||||||||||||||
Commercial and Industrial Loans | 4 | 5,745 | - | - | |||||||||||||||||||||
Construction Loans: | |||||||||||||||||||||||||
Consumer Loans - Auto | 2 | 8 | 4 | 39 | |||||||||||||||||||||
Consumer Loans - Other | 53 | 229 | 45 | 176 | |||||||||||||||||||||
Finance Leases | 1 | 15 | - | - | |||||||||||||||||||||
Total | 72 | $ | 7,770 | 63 | $ | 2,767 | |||||||||||||||||||
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 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 was 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 $42.9 million at March 31, 2015. 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 the first quarter of 2015 and 2014: | |||||||||||||||||||||||||
(In thousands) | 31-Mar-15 | 31-Mar-14 | |||||||||||||||||||||||
Principal balance deemed collectible at end of period | $ | 42,907 | $ | 78,833 | |||||||||||||||||||||
Amount charged off | $ | - | $ | - | |||||||||||||||||||||
(Reductions) charges to the provision for loan losses | $ | -24 | $ | -15 | |||||||||||||||||||||
Allowance for loan losses at end of period | $ | 707 | $ | 1,547 | |||||||||||||||||||||
Of the loans comprising the $42.9 million that have been deemed collectible, approximately $41.2 million were placed in accruing 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 | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSSES | NOTE 8 – ALLOWANCE FOR LOAN AND LEASE LOSSES | |||||||||||||||||||||||
The changes in the allowance for loan and lease losses were as follows: | ||||||||||||||||||||||||
(In thousands) | Residential Mortgage Loans | Commercial Mortgage Loans | Commercial & Industrial Loans | Construction Loans | Consumer Loans | Total | ||||||||||||||||||
Quarter ended March 31, 2015 | ||||||||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||
Beginning balance | $ | 27,301 | $ | 50,894 | $ | 63,721 | $ | 12,822 | $ | 67,657 | $ | 222,395 | ||||||||||||
Charge-offs | -5,192 | -4,006 | -4,453 | -605 | -17,757 | -32,013 | ||||||||||||||||||
Recoveries | 98 | 276 | 558 | 207 | 1,573 | 2,712 | ||||||||||||||||||
Provision | 6,475 | -2,137 | 10,353 | 1,215 | 17,064 | 32,970 | ||||||||||||||||||
Ending balance | $ | 28,682 | $ | 45,027 | $ | 70,179 | $ | 13,639 | $ | 68,537 | $ | 226,064 | ||||||||||||
Ending balance: specific reserve for | ||||||||||||||||||||||||
impaired loans | $ | 14,862 | $ | 13,238 | $ | 24,871 | $ | 3,381 | $ | 5,788 | $ | 62,140 | ||||||||||||
Ending balance: purchased credit-impaired loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Ending balance: general allowance | $ | 13,820 | $ | 31,789 | $ | 45,308 | $ | 10,258 | $ | 62,749 | $ | 163,924 | ||||||||||||
Loans held for investment: | ||||||||||||||||||||||||
Ending balance | $ | 3,331,620 | $ | 1,649,263 | $ | 2,442,867 | $ | 124,440 | $ | 1,937,182 | $ | 9,485,372 | ||||||||||||
Ending balance: impaired loans | $ | 429,526 | $ | 224,365 | $ | 226,656 | $ | 37,593 | $ | 36,841 | $ | 954,981 | ||||||||||||
Ending balance: purchased credit- | ||||||||||||||||||||||||
impaired loans | $ | 177,601 | $ | 3,279 | $ | - | $ | - | $ | 234 | $ | 181,114 | ||||||||||||
Ending balance: loans with general allowance | $ | 2,724,493 | $ | 1,421,619 | $ | 2,216,211 | $ | 86,847 | $ | 1,900,107 | $ | 8,349,277 | ||||||||||||
(In thousands) | Residential Mortgage Loans | Commercial Mortgage Loans | Commercial & Industrial Loans | Construction Loans | Consumer Loans | Total | ||||||||||||||||||
Quarter ended March 31, 2014 | ||||||||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||
Beginning balance | $ | 33,110 | $ | 73,138 | $ | 85,295 | $ | 35,814 | $ | 58,501 | $ | 285,858 | ||||||||||||
Charge-offs | -6,422 | -5,810 | -22,459 | -970 | -18,046 | -53,707 | ||||||||||||||||||
Recoveries | 69 | 35 | 663 | 617 | 1,328 | 2,712 | ||||||||||||||||||
Provision | 3,751 | -851 | 16,091 | -8,050 | 20,974 | 31,915 | ||||||||||||||||||
Ending balance | $ | 30,508 | $ | 66,512 | $ | 79,590 | $ | 27,411 | $ | 62,757 | $ | 266,778 | ||||||||||||
Ending balance: specific reserve for | ||||||||||||||||||||||||
impaired loans | $ | 17,273 | $ | 29,833 | $ | 19,098 | $ | 15,154 | $ | 3,658 | $ | 85,016 | ||||||||||||
Ending balance: purchased credit-impaired loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Ending balance: general allowance | $ | 13,235 | $ | 36,679 | $ | 60,492 | $ | 12,257 | $ | 59,099 | $ | 181,762 | ||||||||||||
Loans held for investment: | ||||||||||||||||||||||||
Ending balance | $ | 2,548,101 | $ | 1,846,016 | $ | 2,947,837 | $ | 152,579 | $ | 2,072,252 | $ | 9,566,785 | ||||||||||||
Ending balance: impaired loans | $ | 419,308 | $ | 219,860 | $ | 151,653 | $ | 58,636 | $ | 29,931 | $ | 879,388 | ||||||||||||
Ending balance: purchased credit- | ||||||||||||||||||||||||
impaired loans | $ | - | $ | - | $ | - | $ | - | $ | 3,383 | $ | 3,383 | ||||||||||||
Ending balance: loans with general allowance | $ | 2,128,793 | $ | 1,626,156 | $ | 2,796,184 | $ | 93,943 | $ | 2,038,938 | $ | 8,684,014 | ||||||||||||
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 the 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 2014 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 began to use 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. | ||||||||||||||||||||||||
During 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. | ||||||||||||||||||||||||
As of March 31, 2015, the Corporation maintained a $0.5 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 statement of financial condition. | ||||||||||||||||||||||||
LOANS_HELD_FOR_SALE
LOANS HELD FOR SALE | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
LOANS HELD FOR SALE | NOTE 9 – LOANS HELD FOR SALE | ||||||
The Corporation's loans held-for-sale portfolio was composed of: | |||||||
As of | As of | ||||||
31-Mar-15 | 31-Dec-14 | ||||||
(In thousands) | |||||||
Residential mortgage loans | $ | 27,135 | $ | 22,315 | |||
Construction loans | 47,802 | 47,802 | |||||
Commercial mortgage loans | 6,786 | 6,839 | |||||
Total | $ | 81,723 | $ | 76,956 | |||
Non-performing loans held for sale totaled $54.6 million ($6.8 million commercial mortgage loans and $47.8 million construction loans) as of March 31, 2015 and December 31, 2014. |
OTHER_REAL_ESTATE_OWNED
OTHER REAL ESTATE OWNED | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Text Block [Abstract] | ||||||||
Other Real Estate Owned Disclosure [Text Block] | NOTE 10 – OTHER REAL ESTATE OWNED | |||||||
The following table presents OREO inventory as of the dates indicated: | ||||||||
Quarter Ended | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(Dollars in thousands) | ||||||||
OREO | ||||||||
OREO balances, carrying value: | ||||||||
FHA/VA-Guaranteed (1) | $ | 6,867 | $ | 7,059 | ||||
Other residential | 26,031 | 22,520 | ||||||
Commercial | 72,473 | 75,654 | ||||||
Construction | 17,257 | 18,770 | ||||||
Total | $ | 122,628 | $ | 124,003 | ||||
-1 | As of March 31, 2015, exclude $0.2 million of foreclosures completed in 2015 that meet the conditions of ASC 310-40 and are presented as a receivable (other assets) in the statement of financial condition. | |||||||
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 11 – 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, cash flow hedge or economic undesignated hedge when it enters into the derivative contract. As of March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, 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. | |||||||||||||||||
To satisfy the needs of its customers, the Corporation may enter into nonhedging transactions. In 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 | |||||||||||||||||
As of | As of | ||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Undesignated economic hedges: | (In thousands) | ||||||||||||||||
Interest rate contracts: | |||||||||||||||||
Interest rate swap agreements | $ | 5,440 | $ | 5,440 | |||||||||||||
Written interest rate cap agreements | 36,809 | 37,132 | |||||||||||||||
Purchased interest rate cap agreements | 36,809 | 37,132 | |||||||||||||||
Forward Contracts: | |||||||||||||||||
Sale of TBA GNMA MBS pools | 32,000 | 19,000 | |||||||||||||||
$ | 111,058 | $ | 98,704 | ||||||||||||||
Notional amounts are presented on a gross basis with no netting of offseting exposure positions. | |||||||||||||||||
The following table summarizes the fair value of derivative instruments as of the indicated dates and the location in the statement of financial condition: | |||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||
Statement of | March 31, | December 31, | March 31, | December 31, | |||||||||||||
Financial | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Condition Location | Fair Value | Fair Value | Statement of Financial Condition Location | Fair Value | Fair Value | ||||||||||||
(In thousands) | |||||||||||||||||
Undesignated economic hedges: | |||||||||||||||||
Interest rate contracts: | |||||||||||||||||
Interest rate swap agreements | Other assets | $ | - | $ | 33 | Accounts payable and other liabilities | $ | - | $ | 33 | |||||||
Written interest rate cap agreements | Other assets | - | - | Accounts payable and other liabilities | 1 | 6 | |||||||||||
Purchased interest rate cap agreements | Other assets | 1 | 6 | Accounts payable and other liabilities | - | - | |||||||||||
Forward Contracts: | |||||||||||||||||
Sales of TBA GNMA MBS pools | Other assets | - | - | Accounts payable and other liabilities | 220 | 148 | |||||||||||
$ | 1 | $ | 39 | $ | 221 | $ | 187 | ||||||||||
The following table summarizes the effect of derivative instruments on the statement of income : | |||||||||||||||||
Gain (or Loss) | |||||||||||||||||
Location of Gain or (Loss) | Quarter Ended | ||||||||||||||||
Recognized in Income on | March 31, | ||||||||||||||||
(In thousands) | Derivatives | 2015 | 2014 | ||||||||||||||
(In thousands) | |||||||||||||||||
UNDESIGNATED ECONOMIC HEDGES: | |||||||||||||||||
Interest rate contracts: | |||||||||||||||||
Interest rate swap agreements | Interest income - Loans | $ | - | $ | 313 | ||||||||||||
Forward contracts: | |||||||||||||||||
Sales of TBA GNMA MBS pools | Mortgage Banking Activities | -72 | -165 | ||||||||||||||
Total (loss) gain on derivatives | $ | -72 | $ | 148 | |||||||||||||
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 and the level of interest rates, as well as the expectations for rates in the future. | |||||||||||||||||
A summary of interest rate swaps is as follows: | |||||||||||||||||
As of | As of | ||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Pay fixed/receive floating : | |||||||||||||||||
Notional amount | $ | 5,440 | $ | 5,440 | |||||||||||||
Weighted-average receive rate at period end | 2.04% | 2.03% | |||||||||||||||
Weighted-average pay rate at period end | 3.45% | 3.45% | |||||||||||||||
As of March 31, 2015, the Corporation has not entered into any derivative instrument containing credit-risk-related | |||||||||||||||||
contingent features. | |||||||||||||||||
OFFSETTING_OF_ASSETS_AND_LIABI
OFFSETTING OF ASSETS AND LIABILITIES | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||
OFFSETTING OF ASSETS AND LIABILITIES | NOTE 12 – 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 | |||||||||||||||||||||||
In thousands | |||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||
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 | ||||||||||||||||||||||
Financial Instruments | Cash Collateral Received | ||||||||||||||||||||||
Net Amount | |||||||||||||||||||||||
Description | |||||||||||||||||||||||
Derivatives | $ | 1 | $ | - | $ | 1 | $ | -1 | $ | - | $ | - | |||||||||||
As of December 31, 2014 | |||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||
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 | ||||||||||||||||||||||
Financial Instruments | Cash Collateral | ||||||||||||||||||||||
Net Amount | |||||||||||||||||||||||
Description | |||||||||||||||||||||||
Derivatives | $ | 6 | $ | - | $ | 6 | $ | -6 | $ | - | $ | - | |||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||||||||||||||||
In thousands | |||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||
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 | ||||||||||||||||||||||
Financial Instruments | Cash Collateral Received | ||||||||||||||||||||||
Net Amount | |||||||||||||||||||||||
Description | |||||||||||||||||||||||
Repurchase agreements | 600,000 | - | 600,000 | -600,000 | - | - | |||||||||||||||||
Total | $ | 600,000 | $ | - | $ | 600,000 | $ | -600,000 | $ | - | $ | - | |||||||||||
As of December 31, 2014 | |||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||
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 | ||||||||||||||||||||||
Financial Instruments | Cash Collateral | ||||||||||||||||||||||
Net Amount | |||||||||||||||||||||||
Description | |||||||||||||||||||||||
Derivatives | $ | 33 | $ | - | $ | 33 | $ | -33 | $ | - | $ | - | |||||||||||
Repurchase agreements | 600,000 | - | 600,000 | -600,000 | - | - | |||||||||||||||||
Total | $ | 600,033 | $ | - | $ | 600,033 | $ | -600,033 | $ | - | $ | - |
GOODWILL_AND_OTHER_INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
GOODWILL AND OTHER INTANGIBLES | NOTE 13 – GOODWILL AND OTHER INTANGIBLES | |||||
Goodwill as of March 31, 2015 and December 31, 2014 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 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 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. There have been no events related to the Florida reporting unit that could indicate potential goodwill impairment since the date of the last evaluation; therefore, no goodwill impairment evaluation was performed during the first quarter of 2015. Goodwill and other indefinite life intangibles are reviewed at least annually for impairment. | ||||||
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 6.7 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 core deposit intangible acquired in the February 2015 Doral Bank transaction amounted to $5.8 million. | ||||||
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 | |||||
March 31, | December 31, | |||||
2015 | 2014 | |||||
(Dollars in thousands) | ||||||
Core deposit intangible: | ||||||
Gross amount, beginning of period | $ | 45,844 | $ | 45,844 | ||
Addition as a result of acquisition | 5,820 | - | ||||
Accumulated amortization | -40,750 | -40,424 | ||||
Net carrying amount | $ | 10,914 | $ | 5,420 | ||
Remaining amortization period | 9.9 years | 8.4 years | ||||
Purchased credit card relationship intangible: | ||||||
Gross amount | $ | 24,465 | $ | 24,465 | ||
Accumulated amortization | -8,843 | -8,076 | ||||
Net carrying amount | $ | 15,622 | $ | 16,389 | ||
Remaining amortization period | 6.7 years | 6.9 years | ||||
For the quarters ended March 31, 2015 and 2014, the amortization expense of core deposit intangibles amounted to $0.3 million and $0.4 million, respectively. For each of the quarters ended March 31, 2015 and 2014, the amortization expense of the purchased credit card relationship intangible amounted to $0.8 million. | ||||||
The estimated aggregate amortization expense related to these intangible assets for future periods is as follows: | ||||||
Amount | ||||||
(In thousands) | ||||||
2015 | $ | 3,813 | ||||
2016 | 4,737 | |||||
2017 | 4,197 | |||||
2018 | 3,293 |
NONCONSOLIDATED_VARIABLE_INTER
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS | NOTE 14 – 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 issuer's servicing guidelines and standards. As of March 31, 2015, the Corporation serviced loans securitized through GNMA with a principal balance of $1.2 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 Collins Amendment to 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 $23.7 million as of March 31, 2015. 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 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 risk from losses on non accruing loans and repossessed collateral is absorbed by the Bank as the sole holder of the certificates. As of March 31, 2015, the amortized balance and carrying value of the Grantor Trusts amounted to $43.0 million and $31.7 million, respectively, with a weighted average yield of 2.15%. | ||||||||
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 had 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 March 31, 2015, 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. The loss recorded in the first half of 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 on September 2015. During 2012, CPG/GS repaid the outstanding balance of the advance facility to fund unfunded commitments, and the funds became available to redraw under a one-time revolver agreement. These loans bear variable interest at 30-day LIBOR plus 300 basis points. As of March 31, 2015, the carrying values of the revolver agreement and the working capital line were $38.4 million and $0, respectively, and are 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 advance 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. | ||||||||
The following table shows summarized unaudited income statement information of CPG/GS for the quarters ended March 31, 2015 and 2014: | ||||||||
Quarter Ended | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Revenues, including net realized gains on sale of | ||||||||
investments in loans and OREO | $ | 588 | $ | 751 | ||||
Gross profit (loss) | $ | -8,240 | $ | -1,508 | ||||
Net loss | $ | -7,751 | $ | -2,447 | ||||
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: | ||||||||
Quarter ended | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Balance at beginning of period | $ | 22,838 | $ | 21,987 | ||||
Capitalization of servicing assets | 1,073 | 1,052 | ||||||
Amortization | -856 | -783 | ||||||
Adjustment to fair value | -38 | -219 | ||||||
Other (1) | -44 | -11 | ||||||
Balance at end of period | $ | 22,973 | $ | 22,026 | ||||
-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 were as follows: | ||||||||
Quarter ended | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Balance at beginning of period | $ | 55 | $ | 212 | ||||
Temporary impairment charges | 58 | 219 | ||||||
Recoveries | -20 | - | ||||||
Balance at end of period | $ | 93 | $ | 431 | ||||
The components of net servicing income are shown below: | ||||||||
Quarter ended | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Servicing fees | $ | 1,764 | $ | 1,671 | ||||
Late charges and prepayment penalties | 190 | 164 | ||||||
Adjustment for loans repurchased | -44 | -11 | ||||||
Other (1) | -89 | -358 | ||||||
Servicing income, gross | 1,821 | 1,466 | ||||||
Amortization and impairment of servicing assets | -894 | -1,002 | ||||||
Servicing income, net | $ | 927 | $ | 464 | ||||
-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 rates risks. Constant prepayment rate assumptions for the Corporation's servicing assets for the government guaranteed mortgage loans were 9.2% and 9.1% for the quarters ended March 31, 2015 and 2014, respectively. For conventional conforming mortgage loans, the Corporation used 9.0% and 8.9%, and for the conventional non-conforming mortgage loans 14.0% and 13.4%, for the quarters ended March 31, 2015 and 2014, respectively. Discount rate assumptions used were 11.5% for government guaranteed mortgage loans for each of the quarters ended March 31, 2015 and 2014; 9.5% for conventional conforming mortgage loans for each of the quarters ended March 31, 2015 and 2014; and 13.8% and 13.9% for conventional non-conforming mortgage loans for the quarters ended March 31, 2015 and 2014, respectively. | ||||||||
As of March 31, 2015, 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 March 31, 2015 were as follows: | ||||||||
(Dollars in thousands) | ||||||||
Carrying amount of servicing assets | $ | 22,973 | ||||||
Fair value | $ | 25,195 | ||||||
Weighted-average expected life (in years) | 8.47 | |||||||
Constant prepayment rate (weighted-average annual rate) | 10.25% | |||||||
Decrease in fair value due to 10% adverse change | $ | 948 | ||||||
Decrease in fair value due to 20% adverse change | $ | 1,838 | ||||||
Discount rate (weighted-average annual rate) | 10.62% | |||||||
Decrease in fair value due to 10% adverse change | $ | 1,050 | ||||||
Decrease in fair value due to 20% adverse change | $ | 2,020 | ||||||
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 of 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 | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
DEPOSITS | NOTE 15 – DEPOSITS | ||||||
The following table summarizes deposit balances: | |||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Type of account: | |||||||
Non-interest bearing checking accounts | $ | 1,175,943 | $ | 900,616 | |||
Savings accounts | 2,641,793 | 2,450,484 | |||||
Interest-bearing checking accounts | 1,127,560 | 1,054,136 | |||||
Certificates of deposit | 2,323,259 | 2,191,663 | |||||
Brokered CDs | 2,572,483 | 2,887,046 | |||||
$ | 9,841,038 | $ | 9,483,945 | ||||
Brokered CDs mature as follows: | |||||||
31-Mar-15 | |||||||
(In thousands) | |||||||
Three months or less | $ | 362,501 | |||||
Over three months to six months | 577,737 | ||||||
Over six months to one year | 832,235 | ||||||
One to three years | 745,922 | ||||||
Three to five years | 18,037 | ||||||
Over five years | 36,051 | ||||||
Total | $ | 2,572,483 | |||||
The following are the components of interest expense on deposits: | |||||||
Quarter Ended | |||||||
March 31, | March 31, | ||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Interest expense on deposits | $ | 16,359 | $ | 18,514 | |||
Amortization of broker placement fees | 1,335 | 1,785 | |||||
Interest expense on deposits | $ | 17,694 | $ | 20,299 |
SECURITIES_SOLD_UNDER_AGREEMEN
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | NOTE 16 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | ||||||
Securities sold under agreements to repurchase (repurchase agreements) consist of the following: | |||||||
March, 31 | December 31, | ||||||
2015 | 2014 | ||||||
(Dollars in thousands) | |||||||
Repurchase agreements, interest ranging from 1.96% to 3.33% | |||||||
(December 31, 2014: 2.45% to 4.50%) (1) | $ | 900,000 | $ | 900,000 | |||
-1 | As of March 31, 2015, includes $800 million with an average rate of 2.71% that lenders have the right to call before their contractual maturities at various dates beginning on April 9, 2015. Subsequent to April 9, 2015, no lender has exercised its call option on repurchase agreements. In addition, $700 million is tied to variable rates. | ||||||
In the first quarter of 2015, the Corporation restructured $400 million of its repurchase agreements, $200 million of which were restructured by extending the contractual maturity and changing from a fixed interest rate to a variable rate, and entered into $200 million of reverse repurchase agreements with the same counterparty (effective April, 2015) under a master netting arrangement that provides for a right to setoff that meets the conditions of ASC 210-20-45-11. These repurchase agreements and reverse repurchase agreements will be presented net on the consolidated statement of financial condition beginning in the second quarter of 2015. In addition, in the first quarter of 2015, the Corporation restructured an additional $200 million of its repurchase agreements with a different counterparty by extending the contractual maturity and reducing the interest rate in these agreements. | |||||||
Repurchase agreements mature as follows: | |||||||
31-Mar-15 | |||||||
(In thousands) | |||||||
One year to three years | $ | 500,000 | |||||
Over five years | 400,000 | ||||||
Total | $ | 900,000 | |||||
As of March 31, 2015 and December 31, 2014, the securities underlying such agreements were delivered to the dealers with which the repurchase agreements were transacted. | |||||||
Repurchase agreements as of March 31, 2015, grouped by counterparty, were as follows: | |||||||
(Dollars in thousands) | Weighted-Average | ||||||
Counterparty | Amount | Maturity (In Months) | |||||
Citigroup Global Markets | $ | 300,000 | 19 | ||||
JP Morgan Chase | 200,000 | 82 | |||||
Dean Witter / Morgan Stanley | 100,000 | 31 | |||||
Credit Suisse First Boston | 300,000 | 60 | |||||
$ | 900,000 | ||||||
ADVANCES_FROM_THE_FEDERAL_HOME
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) | NOTE 17 – ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) | ||||||
The following is a summary of the advances from the FHLB: | |||||||
As of | As of | ||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
(Dollars in thousands) | |||||||
Fixed-rate advances from FHLB, with a weighted- | |||||||
average interest rate of 1.17% | $ | 325,000 | $ | 325,000 | |||
Advances from FHLB mature as follows: | |||||||
March 31, | |||||||
2015 | |||||||
(In thousands) | |||||||
Over one year to three years | $ | 300,000 | |||||
Over three to four years | 25,000 | ||||||
Total | $ | 325,000 | |||||
As of March 31, 2015, the Corporation had additional capacity of approximately $615.4 million on this credit facility based on collateral pledged at the FHLB, including a haircut reflecting the perceived risk associated with the collateral. |
OTHER_BORROWINGS
OTHER BORROWINGS | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
OTHER BORROWINGS | NOTE 18 – OTHER BORROWINGS | |||||
Other borrowings, as of the indicated dates, consist of: | ||||||
March 31, | December 31, | |||||
2015 | 2014 | |||||
(In thousands) | ||||||
Junior subordinated debentures due in 2034, | ||||||
interest-bearing at a floating rate of 2.75% | ||||||
over 3-month LIBOR (3.02% as of March 31, 2015 | ||||||
and 2.99% as of December 31, 2014) | $ | 103,093 | $ | 103,093 | ||
Junior subordinated debentures due in 2034, | ||||||
interest-bearing at a floating rate of 2.50% | ||||||
over 3-month LIBOR (2.77% as of March 31, 2015 | ||||||
and 2.75% as of December 31, 2014) | 128,866 | 128,866 | ||||
$ | 231,959 | $ | 231,959 |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2015 | |
STOCKHOLDERS' EQUITY | NOTE 19 – STOCKHOLDERS' EQUITY |
Common Stock | |
As of March 31, 2015 and December 31, 2014, the Corporation had 2,000,000,000 authorized shares of common stock with a par value of $0.10 per share. As of March 31, 2015 and December 31, 2014, there were 214,618,015 and 213,724,749 shares issued, respectively, and 213,827,258 and 212,984,700 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. | |
During the first quarter of 2015, the Corporation awarded 30,068 shares of restricted stock under the Omnibus Plan to one of the Corporation's independent directors, of which 4,295 shares vest in one year and the remaining 25,773 shares vest in five years. Also in the first quarter of 2015, the Corporation granted 791,464 shares of restricted stock to certain senior officers and certain other employees. For 40,000 of the 791,464 shares awarded to employees, the requisite service period is approximately three months. For the remaining 751,464 shares, 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 the first quarter of 2015 are 615,464 shares granted to certain senior officers consistent with the requirements of TARP. In addition, in the first quarter of 2015, the Corporation issued 80,234 shares of common stock as increased compensation to certain executive officers. As of March 31, 2015 and December 31, 2014, there were 3,076,438 and 2,327,156 shares of unvested restricted stock outstanding. During the first quarter of 2015, 8,500 shares of restricted stock were forfeited and the restrictions on 63,750 shares of restricted stock lapsed. Refer to Note 4 for additional information. | |
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 shall have such rights and preferences as are fixed by the Board of Directors when authorizing the issuance of that particular series. As of March 31, 2015, the Corporation has five outstanding series of nonconvertible, non-cumulative preferred stock: 7.125% non-cumulative perpetual monthly income preferred stock, Series A; 8.35% noncumulative perpetual monthly income preferred stock, Series B; 7.40% noncumulative perpetual monthly income preferred stock, Series C; 7.25% noncumulative perpetual monthly income preferred stock, Series D; and 7.00% noncumulative 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 nonconvertible, noncumulative 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. | |
In the first quarter of 2014, the Corporation issued an aggregate of 1,075,283 shares of its common stock in exchange for an aggregate of 249,477 shares of the Corporation's Series A through E Preferred Stock, having an aggregate liquidation value of $6.2 million. The shares of common stock were issued to two holders of the Series A through E Preferred Stock 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 carrying (liquidation) value of the Series A through E preferred stock exchanged, or $6.2 million, was reduced, and common stock and additional paid-in capital 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 $0.1 million. The excess of the common stock fair value over the par value, or $5.5 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 $0.4 million, was recorded as an increase to retained earnings and an increase in earnings per common share computation. | |
Treasury stock | |
During the first quarter of 2015, the Corporation withheld an aggregate of 50,708 shares of the common stock that was paid to certain senior officers as additional compensation and of restricted stock that vested during the first quarter of 2015 to cover employees' payroll and income tax withholding liabilities; these shares are also held as treasury shares. As of March 31, 2015 and December 31, 2014, the Corporation had 790,757 and 740,049 shares held as treasury stock, respectively. | |
FirstBank Statutory Reserve (Legal Surplus) | |
The Banking Law of the Commonwealth of Puerto Rico requires that a minimum of 10% of FirstBank's net income for the year be transferred to legal surplus until such surplus equals the total of paid-in-capital on common and preferred stock. Amounts transferred to the legal surplus account from the retained earnings account are not available for distribution to the stockholders without the prior consent of the Puerto Rico Commissioner of Financial Institutions. The Puerto Rico Banking Law provides that when the expenditures of a Puerto Rico commercial bank are greater than receipts, the excess of the expenditures over receipts shall be charged against the undistributed profits of the bank, and the balance, if any shall be charged against the reserve fund, as a reduction thereof. If there is no reserve fund sufficient to cover such balance in whole or in part, the outstanding amount shall be charged against the capital account and the Bank cannot pay dividends until it can replenish the reserve fund to an amount of at least 20% of the original capital contributed. During the fourth quarter of 2014, $40.0 million was transferred to the legal surplus reserve. FirstBank's legal surplus reserve, included as part of retained earnings in the Corporation's statement of financial condition, amounted to $40.0 million as of March 31, 2015. There were no transfers to the legal surplus reserve during the quarter ended March 31, 2015. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2015 | |
INCOME TAXES | NOTE 20 - 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 consolidated tax returns 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 a net operating loss (“NOL”), a particular subsidiary must be able to demonstrate sufficient taxable income within the applicable NOL carry forward 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 the corporate standard rates to the extent that the IBE's net income exceeds 20% of the bank's total net taxable income. | |
In 2010, the Corporation established a valuation allowance for substantially all of the deferred tax assets of its banking subsidiary, FirstBank, primarily due to significant operational losses driven by charges to the provision for loan losses, a three-year cumulative loss position as of the end of the year 2010, and uncertainty regarding the amount of future taxable income that the Bank could forecast. As of December 31, 2014, based upon the assessment of all positive and negative evidence, management concluded that it was 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. As of March 31, 2015, the deferred tax assets, net of a valuation allowance of $198.6 million, amounted to $310.9 million and management concluded, based upon the assessment of all positive and negative evidence, that it is more likely than not that the Corporation will generate sufficient taxable income within the applicable NOL carry-forward periods to realize such amount. | |
The Corporation recorded income tax expense of $8.0 million in the first quarter of 2015 compared to $0.9 million for the quarter ended March 31, 2014. For the quarter ended March 31, 2015, the Corporation calculated the provision for income taxes by applying the estimated annual effective tax rate for the full fiscal year to ordinary income or loss. The Corporation had historically calculated the provision for income taxes for interim periods by using a discrete effective tax rate method since it had a full valuation allowance on most of its deferred tax assets. As a result of the partial valuation allowance release during the fourth quarter of 2014, management will use the annual estimated effective tax rate as required by ASC 740 for interim period reporting. In the computation of the consolidated worldwide annual estimated effective tax rate, the ASC 740-270 requires the exclusion of legal entities with pre-tax losses from which a tax benefit cannot be recognized. The consolidated worldwide estimated effective tax rate excluding entities with pre-tax losses from which a tax benefit cannot be recognized is 22%. The effective tax rate including all entities is 24%. | |
As of March 31, 2015, the Corporation did not have Unrecognized Tax Benefits (“UTBs”) recorded on its books. During 2014, the Corporation reached final settlement with the IRS in connection with the 2007-2009 examination periods. 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. | |
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 March 31, 2015, the Corporation's accrued interest that relates to the IRS examination amounted to $1.3 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 statue 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 the 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 U.S. federal tax return is currently under examination by the IRS. For Puerto Rico purposes, all tax years subsequent to 2010 remain open to examination. | |
During 2013, the Puerto Rico Government approved Act No. 40, which imposed a national gross receipts tax. The national gross receipts tax for financial institutions was computed on the basis of 1% of gross income, net of allowable exclusions. Subject to certain limitations, a financial institution was able to claim a credit of 0.5% of its gross income, against its regular income tax or the alternative minimum tax (“AMT”). However, 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. Accordingly, during this quarter, the Corporation did not record national gross receipts tax expense. In March 31, 2014, a $1.5 million gross receipt tax expense was included as part of “Taxes, other than income taxes” in the consolidated statement of income and a $0.7 million benefit related to this credit was recorded as a reduction to the provision for income taxes. | |
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. Legislative changes in tax laws could adversely impact our results of operations. On April 30, 2015, the legislature voted against the new tax code. New proposals or amendments to the tax code have not yet been disclosed. | |
FAIR_VALUE
FAIR VALUE | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
FAIR VALUE | NOTE 21 – 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 by using pricing models for which the determination of fair value required significant management judgments estimation. | |||||||||||||||||||||||
For 2015, 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 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 marked-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 for the quarters ended March 31, 2015 and 2014 was immaterial. | ||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis, are summarized below: | ||||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||||||||||||||||||
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 : | ||||||||||||||||||||||||
U.S. Treasury Securities | $ | 7,500 | $ | - | $ | - | $ | 7,500 | $ | 7,499 | $ | - | $ | - | $ | 7,499 | ||||||||
Noncallable U.S. agency debt | - | 286,066 | - | 286,066 | - | 228,157 | - | 228,157 | ||||||||||||||||
Callable U.S. agency debt and MBS | - | 1,607,273 | - | 1,607,273 | - | 1,653,140 | - | 1,653,140 | ||||||||||||||||
Puerto Rico government obligations | - | 39,073 | 2,390 | 41,463 | - | 40,658 | 2,564 | 43,222 | ||||||||||||||||
Private label MBS | - | - | 31,824 | 31,824 | - | - | 33,648 | 33,648 | ||||||||||||||||
Other investments held for sale | - | - | 100 | 100 | - | - | - | - | ||||||||||||||||
Derivatives, included in assets: | ||||||||||||||||||||||||
Interest rate swap agreements | - | - | - | - | - | 33 | - | 33 | ||||||||||||||||
Purchased interest rate cap agreements | - | 1 | - | 1 | - | 6 | - | 6 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Derivatives, included in liabilities: | ||||||||||||||||||||||||
Interest rate swap agreements | - | - | - | - | - | 33 | - | 33 | ||||||||||||||||
Written interest rate cap agreement | - | 1 | - | 1 | - | 6 | - | 6 | ||||||||||||||||
Forward contracts | - | 220 | - | 220 | - | 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 quarters ended March 31, 2015 and 2014. | ||||||||||||||||||||||||
Total Fair Value Measurements | ||||||||||||||||||||||||
Quarter ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Level 3 Instruments Only | Securities | Securities | ||||||||||||||||||||||
(In thousands) | Available For Sale(1) | Available For Sale(1) | ||||||||||||||||||||||
Beginning balance | $ | 36,212 | 43,292 | |||||||||||||||||||||
Total gains (losses) (realized/unrealized): | ||||||||||||||||||||||||
Included in earnings | -156 | - | ||||||||||||||||||||||
Included in other comprehensive income | 619 | 964 | ||||||||||||||||||||||
Held-to-Maturity investment securities reclassified to Available-for-Sale | ||||||||||||||||||||||||
Sales | ||||||||||||||||||||||||
Purchases | 100 | 5,123 | ||||||||||||||||||||||
Principal repayments and amortization | -2,461 | -1,869 | ||||||||||||||||||||||
Ending balance | $ | 34,314 | $ | 47,510 | ||||||||||||||||||||
-1 | Amounts mostly related to private label MBS. | |||||||||||||||||||||||
The table below presents qualitative information for significant assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at March 31, 2015: | ||||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||
(In thousands) | Fair Value | Valuation Technique | Unobservable Input | Range | ||||||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||||||||||
Private label MBS | $ | 31,824 | Discounted cash flow | Discount rate | 14.50% | |||||||||||||||||||
Prepayment rate | 18.04% -100.00% (Weighted Average 32%) | |||||||||||||||||||||||
Projected Cumulative Loss Rate | 0.00% -80.00% (Weighted Average 7.3%) | |||||||||||||||||||||||
Puerto Rico Government Obligations | 2,390 | Discounted cash flow | Prepayment speed | 2.89% | ||||||||||||||||||||
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 prepayments 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 notes are 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 quarters ended March 31, 2015 and 2014 for Level 3 assets and liabilities that are still held at the end of each period: | ||||||||||||||||||||||||
Changes in Unrealized Losses | Changes in Unrealized Losses | |||||||||||||||||||||||
(Quarter ended March 31, 2015) | (Quarter Ended March 31, 2014) | |||||||||||||||||||||||
Level 3 Instruments Only | Securities | Securities | ||||||||||||||||||||||
(In thousands) | Available For Sale | Available For Sale | ||||||||||||||||||||||
Changes in unrealized losses relating to assets still held at reporting date: | ||||||||||||||||||||||||
Net impairment losses on investment securities (credit component) | ($156) | $ - | ||||||||||||||||||||||
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 March 31, 2015, 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 March 31, 2015 | Losses recorded for the Quarter Ended March 31, 2015 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Loans receivable (1) | $ | - | $ | - | $ | 436,944 | $ | -13,725 | ||||||||||||||||
Other Real Estate Owned (2) | - | - | 122,628 | -2,711 | ||||||||||||||||||||
Mortgage servicing rights (3) | - | - | 22,973 | -38 | ||||||||||||||||||||
Loans Held For Sale (4) | - | - | 54,588 | - | ||||||||||||||||||||
-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 loan 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 included: Prepayment rate-10.25%, Discount Rate-10.62%. | |||||||||||||||||||||||
-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 in such agreements. | |||||||||||||||||||||||
As of March 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 March 31, 2014 | (Losses) Gain recorded for the Quarter Ended March 31, 2014 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Loans receivable (1) | $ | - | $ | - | $ | 478,393 | $ | -23,793 | ||||||||||||||||
Other Real Estate Owned (2) | - | - | 138,622 | -4,747 | ||||||||||||||||||||
Mortgage servicing rights (3) | - | - | 22,026 | -219 | ||||||||||||||||||||
Loans Held For Sale (4) | - | - | 54,755 | - | ||||||||||||||||||||
-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 loan 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 included: Prepayment Rate-9.10%, Discount Rate-10.61%. | |||||||||||||||||||||||
-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 in such agreements. | |||||||||||||||||||||||
Qualitative information regarding the fair value measurements for Level 3 financial instruments is as follows: | ||||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||
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 Flow | Weighted average prepayment rate of 10.25%; weighted average discount rate of 10.62% | ||||||||||||||||||||||
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 Bank in the first quarter of 2015 was derived from a model of forecasted cash flows that uses market-driven assumptions such as prepayment rate, default rate, and loss severity on a loan level basis. The forecasted cash flows are then discounted by yields observed in sales of similar portfolios in Puerto Rico and the continental U.S. | ||||||||||||||||||||||||
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 represents, 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 March 31, 2015. 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, are 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 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 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 March 31, 2015 and December 31, 2014 | ||||||||||||||||||||||||
Total Carrying Amount in Statement of Financial Condition March 31, 2015 | Fair Value Estimated March 31, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and due from banks and money | ||||||||||||||||||||||||
market investments | $ | 984,436 | $ | 984,436 | $ | 984,436 | $ | - | $ | - | ||||||||||||||
Investment securities available | ||||||||||||||||||||||||
for sale | 1,974,226 | 1,974,226 | 7,500 | 1,932,412 | 34,314 | |||||||||||||||||||
Other equity securities | 26,185 | 26,185 | - | 26,185 | - | |||||||||||||||||||
Loans held for sale | 81,723 | 82,942 | - | 28,301 | 54,641 | |||||||||||||||||||
Loans held for investment | 9,485,372 | |||||||||||||||||||||||
Less: allowance for loan and lease losses | -226,064 | |||||||||||||||||||||||
Loans held for investment, net of allowance | $ | 9,259,308 | 9,115,707 | - | - | 9,115,707 | ||||||||||||||||||
Derivatives, included in assets | 1 | 1 | - | 1 | - | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Deposits | 9,841,038 | 9,852,630 | - | 9,852,630 | - | |||||||||||||||||||
Securities sold under agreements to repurchase | 900,000 | 966,365 | - | 966,365 | - | |||||||||||||||||||
Advances from FHLB | 325,000 | 326,087 | - | 326,087 | - | |||||||||||||||||||
Other borrowings | 231,959 | 169,935 | - | - | 169,935 | |||||||||||||||||||
Derivatives, included in liabilities | 221 | 221 | - | 221 | - | |||||||||||||||||||
Total Carrying Amount in Statement of Financial Condition December 31, 2014 | Fair Value Estimated 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 | - |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 22 – SUPPLEMENTAL CASH FLOW INFORMATION | |||||
Supplemental cash flow information is as follows: | ||||||
Quarter Ended March 31, | ||||||
2015 | 2014 | |||||
(In thousands) | ||||||
Cash paid for: | ||||||
Interest on borrowings | $ | 24,502 | $ | 23,359 | ||
Income tax | 82 | 113 | ||||
Non-cash investing and financing activities: | ||||||
Additions to other real estate owned | 12,702 | 8,176 | ||||
Additions to auto and other repossessed assets | 20,464 | 20,771 | ||||
Capitalization of servicing assets | 1,073 | 1,052 | ||||
Loan securitizations | 46,914 | 50,792 | ||||
Preferred stock exchanged for new common stock issued: | ||||||
Preferred stock exchanged (Series A through E) | - | 6,024 | ||||
New common stock issued | - | 5,645 | ||||
Fair value of assets acquired (liabilities assumed) in the Doral Bank transaction: | ||||||
Loans | 311,410 | - | ||||
Premises and equipment, net | 5,450 | - | ||||
Core deposit intangible | 5,820 | - | ||||
Deposits | -523,517 | - | ||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
SEGMENT INFORMATION | NOTE 23 – 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 March 31, 2015, 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. Other 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,” in the audited consolidated financial statements of the Corporation for the year ended December 31, 2014, which are included in the Corporation's 2014 Annual Report on Form 10-K. | |||||||||||||||||||||
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: | |||||||||||||||||||||
(In thousands) | Mortgage Banking | Consumer (Retail) Banking | Commercial and Corporate | Treasury and Investments | United States Operations | Virgin Islands Operations | Total | ||||||||||||||
For the quarter ended March 31, 2015: | |||||||||||||||||||||
Interest income | $ | 33,876 | $ | 49,836 | $ | 34,803 | $ | 13,067 | $ | 11,231 | $ | 9,672 | $ | 152,485 | |||||||
Net (charge) credit for transfer of funds | -11,236 | 3,684 | -3,795 | 7,754 | 3,593 | - | - | ||||||||||||||
Interest expense | - | -5,657 | - | -16,007 | -4,339 | -835 | -26,838 | ||||||||||||||
Net interest income | 22,640 | 47,863 | 31,008 | 4,814 | 10,485 | 8,837 | 125,647 | ||||||||||||||
(Provision) release for loan and lease losses | -6,963 | -16,685 | -9,093 | - | 2,133 | -2,362 | -32,970 | ||||||||||||||
Non-interest income | 3,399 | 12,417 | 524 | -100 | 524 | 2,522 | 19,286 | ||||||||||||||
Direct non-interest expenses | -8,065 | -31,559 | -7,979 | -1,339 | -7,183 | -8,580 | -64,705 | ||||||||||||||
Segment income | $ | 11,011 | $ | 12,036 | $ | 14,460 | $ | 3,375 | $ | 5,959 | $ | 417 | $ | 47,258 | |||||||
Average earnings assets | $ | 2,492,247 | $ | 2,045,277 | $ | 3,028,358 | $ | 2,764,058 | $ | 971,887 | $ | 639,162 | $ | 11,940,989 | |||||||
(In thousands) | Mortgage Banking | Consumer (Retail) Banking | Commercial and Corporate | Treasury and Investments | United States Operations | Virgin Islands Operations | Total | ||||||||||||||
For the quarter ended March 31, 2014: | |||||||||||||||||||||
Interest income | $ | 25,748 | $ | 55,812 | $ | 42,299 | $ | 15,583 | $ | 10,896 | $ | 10,233 | $ | 160,571 | |||||||
Net (charge) credit for transfer of funds | -8,546 | 3,635 | -2,999 | 5,800 | 2,110 | - | - | ||||||||||||||
Interest expense | - | -6,796 | - | -16,761 | -4,797 | -897 | -29,251 | ||||||||||||||
Net interest income | 17,202 | 52,651 | 39,300 | 4,622 | 8,209 | 9,336 | 131,320 | ||||||||||||||
(Provision) release for loan and lease losses | -3,384 | -20,495 | -13,345 | - | 5,959 | -650 | -31,915 | ||||||||||||||
Non-interest income (loss) | 3,102 | 10,630 | 1,767 | 53 | 441 | 1,967 | 17,960 | ||||||||||||||
Direct non-interest expenses | -9,832 | -32,015 | -12,578 | -1,126 | -7,220 | -9,024 | -71,795 | ||||||||||||||
Segment income | $ | 7,088 | $ | 10,771 | $ | 15,144 | $ | 3,549 | $ | 7,389 | $ | 1,629 | $ | 45,570 | |||||||
Average earnings assets | $ | 1,955,990 | $ | 2,006,395 | $ | 3,921,439 | $ | 2,710,930 | $ | 846,152 | $ | 655,568 | $ | 12,096,474 | |||||||
The following table presents a reconciliation of the reportable segment financial information to the consolidated totals: | |||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Net income: | |||||||||||||||||||||
Total income for segments and other | $ | 47,258 | $ | 45,570 | |||||||||||||||||
Other non-interest gain (loss) (1) | 13,443 | -6,610 | |||||||||||||||||||
Other operating expenses (2) | -27,023 | -20,990 | |||||||||||||||||||
Income before income taxes | 33,678 | 17,970 | |||||||||||||||||||
Income tax expense | -8,032 | -887 | |||||||||||||||||||
Total consolidated net income | $ | 25,646 | $ | 17,083 | |||||||||||||||||
Average assets: | |||||||||||||||||||||
Total average earning assets for segments | $ | 11,940,989 | $ | 12,096,474 | |||||||||||||||||
Other average earning assets (1) | - | 6,570 | |||||||||||||||||||
Average non-earning assets | 934,999 | 671,146 | |||||||||||||||||||
Total consolidated average assets | $ | 12,875,988 | $ | 12,774,190 | |||||||||||||||||
-1 | The bargain purchase gain on the acquisition of assets and assumption of deposits from Doral Bank in 2015 as well as the activities related to the Bank's equity interest in CPG/GS are presented as an Other non-interest income (loss) and the investment in CPG/GS is presented as Other average earning assets in the tables above. | ||||||||||||||||||||
-2 | Expenses pertaining to corporate administrative functions that support the operating segment 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. |
REGULATORY_MATTERS_COMMITMENTS
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES | NOTE 24 – 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 adverse 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 and liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Corporation's capital amounts and classification are also subject to qualitative judgment and adjustment by the regulators with respect to minimum capital requirements, components, risk weightings, and other factors. | ||||||||||||||||||||||||||
FirstBank received notification from the FDIC that the Consent Order under which the Bank had been operating since June 2, 2010 was terminated effective April 29, 2015. Although the Consent Order has been terminated, First BanCorp. is still subject to the Written Agreement that the Corporation entered with the Federal Reserve Bank of New York on June 3, 2010. | ||||||||||||||||||||||||||
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 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 its plans for how to improve capital positions to comply with 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 March 31, 2015, the Corporation had completed all of the items included in the Capital Plan and is continuing to work on reducing non-performing loans. The Written Agreement also requires the submission to the regulators of quarterly progress reports. | ||||||||||||||||||||||||||
In July 2013, the 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. 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 phase-in period for certain deductions and adjustments to regulatory capital began on January 1, 2015 and will be completed on January 1, 2018. The phase-in period for the capital conservation buffer requirements begins on January1, 2016 and will be completed on January 1, 2019. | ||||||||||||||||||||||||||
The 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 (“AOCI”), and qualifying minority interests. Certain banking organizations, however, including the Corporation and FirstBank, were allowed to make a one-time permanent election in early 2015 to continue to exclude AOCI items. The Corporation and FirstBank have elected to permanently exclude capital in AOCI 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 require the Corporation to maintain an additional CET1 capital conservation buffer of 2.5%. The capital conservation buffer must be maintained to avoid limitations on both (i) capital distributions (e.g. repurchases of capital instruments or dividend or interest payments on capital instruments), and (ii) discretionary bonus payments to executive officers and heads of major business lines. Under the fully phased-in 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%, (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%, (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%, and (iv) a required minimum leverage ratio of 4%, calculated as the ratio of Tier 1 capital to average on-balance sheet (non-risk adjusted) assets. 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 certain intangible assets, and deferred tax assets dependent upon future taxable income; the four-year phase-in period for these adjustments generally began on January 1, 2015. Mortgage servicing assets and deferred tax assets attributable to temporary differences, among others, are 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 began to phase out TRuPs from Tier 1 capital on January 1, 2015. The Corporation is 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 previous 6%); and (iii) eliminating the provision that allowed 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. | ||||||||||||||||||||||||||
The Corporation and FirstBank compute risk weighted assets using the Standardized Approach required by the Basel III rules. The Standardized Approach for risk-weightings has expanded the risk-weighting categories from the four major risk-weighting categories under the previous 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 results in higher risk weights for a variety of asset categories. Specific changes to the risk-weightings of assets 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%), (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 and (iv) capital is required to cover the risk of unexpected losses due to failure of a customer or counterparty to meet its financial obligations in accordance with contractual terms (repo-style transactions). | ||||||||||||||||||||||||||
The Corporation's and its banking subsidiary's regulatory capital positions as of March 31, 2015 and December 31, 2014 were as follows: | ||||||||||||||||||||||||||
Regulatory Requirements | ||||||||||||||||||||||||||
Actual | For Capital Adequacy Purposes | To be Well-Capitalized-Regular Thresholds | ||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
As of March 31, 2015 (Basel III) | ||||||||||||||||||||||||||
Total Capital (to | ||||||||||||||||||||||||||
Risk-Weighted Assets) | ||||||||||||||||||||||||||
First BanCorp. | $ | 1,828,253 | 19.20% | $ | 761,694 | 8% | N/A | N/A | ||||||||||||||||||
FirstBank | $ | 1,798,122 | 18.89% | $ | 761,410 | 8% | $ | 951,763 | 10% | |||||||||||||||||
Common Equity Tier 1 Capital | ||||||||||||||||||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||||||
First BanCorp. | $ | 1,537,862 | 16.15% | $ | 428,453 | 4.50% | N/A | N/A | ||||||||||||||||||
FirstBank | $ | 1,486,508 | 15.62% | $ | 428,293 | 4.50% | $ | 618,646 | 6.50% | |||||||||||||||||
Tier I Capital (to | ||||||||||||||||||||||||||
Risk-Weighted Assets) | ||||||||||||||||||||||||||
First BanCorp. | $ | 1,537,862 | 16.15% | $ | 571,271 | 6% | N/A | N/A | ||||||||||||||||||
FirstBank | $ | 1,676,525 | 17.61% | $ | 571,058 | 6% | $ | 761,410 | 8% | |||||||||||||||||
Leverage ratio | ||||||||||||||||||||||||||
First BanCorp. | $ | 1,537,862 | 12.16% | $ | 505,698 | 4% | N/A | N/A | ||||||||||||||||||
FirstBank | $ | 1,676,525 | 13.28% | $ | 505,036 | 4% | $ | 631,295 | 5% | |||||||||||||||||
As of December 31, 2014 (Basel I) | ||||||||||||||||||||||||||
Total Capital (to | ||||||||||||||||||||||||||
Risk-Weighted Assets) | ||||||||||||||||||||||||||
First BanCorp. | $ | 1,748,120 | 19.70% | $ | 709,723 | 8% | N/A | N/A | ||||||||||||||||||
FirstBank | $ | 1,717,432 | 19.37% | $ | 709,395 | 8% | $ | 886,744 | 10% | |||||||||||||||||
Tier I Capital (to | ||||||||||||||||||||||||||
Risk-Weighted Assets) | ||||||||||||||||||||||||||
First BanCorp. | $ | 1,636,004 | 18.44% | $ | 354,861 | 4% | N/A | N/A | ||||||||||||||||||
FirstBank | $ | 1,605,367 | 18.10% | $ | 354,698 | 4% | $ | 532,046 | 6% | |||||||||||||||||
Leverage ratio | ||||||||||||||||||||||||||
First BanCorp. | $ | 1,636,004 | 13.27% | $ | 493,159 | 4% | N/A | N/A | ||||||||||||||||||
FirstBank | $ | 1,605,367 | 13.04% | $ | 492,468 | 4% | $ | 615,585 | 5% | |||||||||||||||||
The Corporation enters into financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments may include commitments to extend credit and commitments to sell mortgage loans at fair value. As of March 31, 2015, commitments to extend credit amounted to approximately $1.1 billion, of which $645.6 million relates to credit card loans. Commercial and Financial standby letters of credit amounted to approximately $44.5 million. 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. | ||||||||||||||||||||||||||
As of March 31, 2015, 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. | ||||||||||||||||||||||||||
FIRST_BANCORP_Holding_Company_
FIRST BANCORP. (Holding Company Only) Financial Information | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
FIRST BANCORP. (Holding Company Only) Financial Information | NOTE 25 – FIRST BANCORP. (HOLDING COMPANY ONLY) FINANCIAL INFORMATION | ||||||
The following condensed financial information presents the financial position of the Holding Company only as of March 31, 2015 and December 31, 2014 and the results of its operations for the quarters ended March 31, 2015 and 2014. | |||||||
Statements of Financial Condition | |||||||
As of March 31, | As of December 31, | ||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Assets | |||||||
Cash and due from banks | $ | 29,726 | $ | 30,380 | |||
Money market investments | 6,111 | 6,111 | |||||
Investment securities available for sale, at market: | |||||||
Other investment securities | 285 | 285 | |||||
Loans held for investment, net | 298 | 322 | |||||
Investment in First Bank Puerto Rico, at equity | 1,900,671 | 1,866,090 | |||||
Investment in First Bank Insurance Agency, at equity | 13,356 | 11,890 | |||||
Investment in FBP Statutory Trust I | 3,093 | 3,093 | |||||
Investment in FBP Statutory Trust II | 3,866 | 3,866 | |||||
Other assets | 4,617 | 4,357 | |||||
Total assets | $ | 1,962,023 | $ | 1,926,394 | |||
Liabilities and Stockholders' Equity | |||||||
Liabilities: | |||||||
Other borrowings | $ | 231,959 | $ | 231,959 | |||
Accounts payable and other liabilities | 24,314 | 22,692 | |||||
Total liabilities | 256,273 | 254,651 | |||||
Stockholders' equity | 1,705,750 | 1,671,743 | |||||
Total liabilities and stockholders' equity | $ | 1,962,023 | $ | 1,926,394 | |||
Statements of Income | |||||||
Quarter Ended | |||||||
March 31, | March 31, | ||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Income: | |||||||
Interest income on money market investments | $ | 5 | $ | 5 | |||
Other income | 56 | 53 | |||||
61 | 58 | ||||||
Expense: | |||||||
Notes payable and other borrowings | 1,817 | 1,760 | |||||
Other operating expenses | 604 | 506 | |||||
2,421 | 2,266 | ||||||
Loss before income taxes and equity in undistributed | |||||||
earnings of subsidiaries | -2,360 | -2,208 | |||||
Income tax provision | - | -2 | |||||
Equity in undistributed earnings of subsidiaries | 28,006 | 19,293 | |||||
Net income | $ | 25,646 | $ | 17,083 | |||
Other comprehensive income, net of tax | 7,140 | 22,539 | |||||
Comprehensive income | $ | 32,786 | $ | 39,622 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2015 | |
SUBSEQUENT EVENTS | NOTE 26 – SUBSEQUENT EVENTS |
As discussed in Note 24, FirstBank received notification from the FDIC that the Consent Order under which the Bank had been operating since June 2, 2010 was terminated effective April 29, 2015. Although the Consent Order has been terminated, First BanCorp. is still subject to the Written Agreement that the Corporation entered into with the Federal Reserve Bank of New York on June 3, 2010. | |
The Corporation has performed an evaluation of events occurring subsequent to March 31, 2015; management has determined that there are no additional events occurring in this period, except as previously disclosed, that required disclosure in or adjustment to the accompanying financial statements. |
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Allowance For Loan Losses [PolicyTextBlock] | Utilization of longer historical loss periods to better reflect the level of incurred losses in the 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 2014 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 began to use 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. | |
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Schedule of Earning Per Share [Table Text Block] | The calculations of earnings per common share for the quarters ended on March 31, 2015 and 2014 are as follows: | |||||||
Quarter Ended | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
(In thousands, except per share information) | ||||||||
Net income | $ | 25,646 | $ | 17,083 | ||||
Cumulative convertible preferred stock dividends (Series G) | ||||||||
Favorable impact from issuing common stock in exchange for | ||||||||
Series A through E preferred stock (1) | - | 379 | ||||||
Net income attributable to common stockholders | $ | 25,646 | $ | 17,462 | ||||
Weighted-Average Shares: | ||||||||
Average common shares outstanding | 210,686 | 205,732 | ||||||
Average potential dilutive common shares | 2,060 | 1,144 | ||||||
Average common shares outstanding-assuming dilution | 212,746 | 206,876 | ||||||
Income per common share: | ||||||||
Basic | $ | 0.12 | $ | 0.08 | ||||
Diluted | $ | 0.12 | $ | 0.08 | ||||
-1 | Excess of carrying amount of the Series A through E preferred stock exchanged over the fair value of new common shares issued in the first quarter of 2014. | |||||||
BUSINESS_COMBINATION_Tables
BUSINESS COMBINATION (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combination Description [Abstract] | ||||
Business Combination [Table Text Block] | The Corporation accounted for this transaction as a business combination. The following table identifies the fair value of assets acquired and liabilities assumed from Doral Bank on February 27, 2015: | |||
Asset/Liabilities | ||||
(at Fair Value) | ||||
(In thousands) | ||||
ASSETS | ||||
Cash | $ | 217,659 | ||
Loans | 311,410 | |||
Premises and equipment, net | 5,450 | |||
Core Deposit Intangible | 5,820 | |||
Other assets | ||||
Total assets acquired | 540,339 | |||
LIABILITIES | ||||
Deposits | 523,517 | |||
Other liabilities | 3,379 | |||
Net assets - Bargain purchase gain | $ | 13,443 | ||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Activity of Stock Options | The activity of stock options granted under the 1997 stock option plan for the quarter ended March 31, 2015 is set forth below: | |||||||||
Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (In thousands) | |||||||
Beginning of period outstanding | ||||||||||
and exercisable | 82,575 | $ | 187.75 | |||||||
Options expired | -11,395 | 358.8 | ||||||||
Options cancelled | -1,332 | 164.1 | ||||||||
End of period outstanding and | ||||||||||
exercisable | 69,848 | $ | 160.3 | 1.3 | $ | - | ||||
Restricted Stock Activity Under Omnibus Plan | The following table summarizes the restricted stock activity in 2015 under the Omnibus Plan for both executive officers covered by the TARP requirements and other employees as well as for the independent directors: | |||||||||
Quarter Ended | ||||||||||
31-Mar-15 | ||||||||||
Number of | ||||||||||
shares of | Weighted-Average | |||||||||
restricted | Grant Date | |||||||||
stock | Fair Value | |||||||||
Non-vested shares at beginning of period | 2,327,156 | $ | 3.39 | |||||||
Granted | 821,532 | 3.92 | ||||||||
Forfeited | -8,500 | 5.07 | ||||||||
Vested | -63,750 | 4 | ||||||||
Non-vested shares at March 31, 2015 | 3,076,438 | $ | 3.51 |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Investment Securities Available for Sale | 31-Mar-15 | |||||||||||||||||||
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 | $ | 7,500 | $ | - | $ | - | $ | - | $ | 7,500 | 0.11 | |||||||||
Obligations of U.S. | ||||||||||||||||||||
government-sponsored | ||||||||||||||||||||
agencies: | ||||||||||||||||||||
After 1 to 5 years | 278,054 | - | 318 | 1,918 | 276,454 | 1.25 | ||||||||||||||
After 5 to 10 years | 102,745 | - | 850 | 1,037 | 102,558 | 1.93 | ||||||||||||||
Puerto Rico government | ||||||||||||||||||||
obligations: | ||||||||||||||||||||
After 1 to 5 years | 39,836 | - | - | 16,922 | 22,914 | 4.49 | ||||||||||||||
After 5 to 10 years | 875 | - | - | - | 875 | 5.2 | ||||||||||||||
After 10 years | 24,821 | - | 1 | 7,148 | 17,674 | 5.37 | ||||||||||||||
United States and Puerto | ||||||||||||||||||||
Rico government | ||||||||||||||||||||
obligations: | 453,831 | - | 1,169 | 27,025 | 427,975 | 1.9 | ||||||||||||||
Other (1) | ||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
FHLMC certificates: | ||||||||||||||||||||
After 1 to 5 years | 432 | - | 46 | - | 478 | 4.95 | ||||||||||||||
After 10 years | 304,628 | - | 2,733 | 560 | 306,801 | 2.17 | ||||||||||||||
305,060 | - | 2,779 | 560 | 307,279 | 2.17 | |||||||||||||||
GNMA certificates: | ||||||||||||||||||||
Due within one year | 17 | - | - | - | 17 | 3.52 | ||||||||||||||
After 1 to 5 years | 55 | - | 2 | - | 57 | 3.93 | ||||||||||||||
After 5 to 10 years | 24,189 | - | 956 | - | 25,145 | 3.62 | ||||||||||||||
After 10 years | 316,122 | - | 21,942 | - | 338,064 | 3.85 | ||||||||||||||
340,383 | - | 22,900 | - | 363,283 | 3.83 | |||||||||||||||
FNMA certificates: | ||||||||||||||||||||
After 1 to 5 years | 3,743 | - | 155 | - | 3,898 | 3.37 | ||||||||||||||
After 5 to 10 years | 16,924 | - | 646 | 31 | 17,539 | 2.9 | ||||||||||||||
After 10 years | 814,520 | - | 10,059 | 2,251 | 822,328 | 2.35 | ||||||||||||||
835,187 | - | 10,860 | 2,282 | 843,765 | 2.37 | |||||||||||||||
Collateralized mortgage | ||||||||||||||||||||
obligations issued or | ||||||||||||||||||||
guaranteed by the FHLMC: | ||||||||||||||||||||
Other mortgage pass-through | ||||||||||||||||||||
trust certificates: | ||||||||||||||||||||
Over 5 to 10 years | 108 | - | - | - | 108 | 7.26 | ||||||||||||||
After 10 years | 43,012 | 11,296 | - | - | 31,716 | 2.15 | ||||||||||||||
43,120 | 11,296 | - | - | 31,824 | 2.15 | |||||||||||||||
Total mortgage-backed | ||||||||||||||||||||
securities | 1,523,750 | 11,296 | 36,539 | 2,842 | 1,546,151 | 2.65 | ||||||||||||||
Other (1) | ||||||||||||||||||||
After 1 to 5 years | 100 | - | - | - | 100 | 1.5 | ||||||||||||||
Total investment securities | ||||||||||||||||||||
available for sale | $ | 1,977,681 | $ | 11,296 | $ | 37,708 | $ | 29,867 | $ | 1,974,226 | 2.48 | |||||||||
-1 | Represents investment in a Community Investment Fund. | |||||||||||||||||||
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 | |||||||||||||||
Collateralized mortgage | ||||||||||||||||||||
obligations issued or | ||||||||||||||||||||
guaranteed by the FHLMC: | ||||||||||||||||||||
Other mortgage pass-through | ||||||||||||||||||||
trust certificates: | ||||||||||||||||||||
Over 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 | |||||||||
Available-for-Sale Investments' Fair Value and Gross Unrealized Losses | As of March 31, 2015 | |||||||||||||||||||
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 | $ | - | $ | - | $ | 36,314 | $ | 24,070 | $ | 36,314 | $ | 24,070 | ||||||||
U.S. government agencies obligations | 4,999 | - | 261,252 | 2,955 | 266,251 | 2,955 | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
FNMA | 311,339 | 1,195 | 99,932 | 1,087 | 411,271 | 2,282 | ||||||||||||||
FHLMC | 110,475 | 352 | 21,419 | 208 | 131,894 | 560 | ||||||||||||||
Collateralized mortgage | ||||||||||||||||||||
obligations issued or | ||||||||||||||||||||
Other mortgage pass-through | ||||||||||||||||||||
trust certificates | - | - | 31,716 | 11,296 | 31,716 | 11,296 | ||||||||||||||
Corporate bonds | ||||||||||||||||||||
$ | 426,813 | $ | 1,547 | $ | 450,633 | $ | 39,616 | $ | 877,446 | $ | 41,163 | |||||||||
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 issued or | ||||||||||||||||||||
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 | |||||||||
OTTI Losses on Available-for-Sale Debt Securities | Private Label MBS | |||||||||||||||||||
Quarter ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Total other-than-temporary impairment losses | $ | - | $ | - | ||||||||||||||||
Credit loss on debt securities for which an OTTI was not previously recognized | ||||||||||||||||||||
Portion of other-than-temporary impairment losses | ||||||||||||||||||||
previously recognized in OCI | -156 | - | ||||||||||||||||||
Net impairment losses recognized in earnings | $ | -156 | $ | - | ||||||||||||||||
Roll-Forward of Credit Losses on Debt Securities Held by Corporation | 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: | |||||||||||||||||||
Quarter ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Credit losses at the beginning of the period | $ | 5,777 | $ | 5,389 | ||||||||||||||||
Additions: | ||||||||||||||||||||
Credit losses on debt securities for which an | ||||||||||||||||||||
OTTI was previously recognized | 156 | - | ||||||||||||||||||
Ending balance of credit losses on debt securities held for | ||||||||||||||||||||
which a portion of an OTTI was recognized in OCI | $ | 5,933 | $ | 5,389 | ||||||||||||||||
Significant Assumptions in Valuation of Private Label MBS | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||
Weighted | Weighted | |||||||||||||||||||
Average | Range | Average | Range | |||||||||||||||||
Discount rate | 14.50% | 14.50% | 14.50% | 14.50% | ||||||||||||||||
Prepayment rate | 32% | 18.04%-100.00% | 32% | 19.89%-100.00% | ||||||||||||||||
Projected Cumulative Loss Rate | 7.30% | 0.00%-80.00% | 7.90% | 0.64%-80.00% | ||||||||||||||||
LOAN_PORTFOLIO_Tables
LOAN PORTFOLIO (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | Dec. 31, 2013 | |||||||||||||||||||||||||
Loan Portfolio Held for Investment | March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Residential mortgage loans, mainly secured by first mortgages | $ | 3,331,620 | $ | 3,011,187 | ||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||||
Construction loans | 124,440 | 123,480 | ||||||||||||||||||||||||
Commercial mortgage loans | 1,649,263 | 1,665,787 | ||||||||||||||||||||||||
Commercial and Industrial loans (1) | 2,442,867 | 2,479,437 | ||||||||||||||||||||||||
Loans to local financial institution collateralized by | ||||||||||||||||||||||||||
Total Commercial loans | 4,216,570 | 4,268,704 | ||||||||||||||||||||||||
Finance leases | 230,183 | 232,126 | ||||||||||||||||||||||||
Consumer loans | 1,706,999 | 1,750,419 | ||||||||||||||||||||||||
Loans held for investment | 9,485,372 | 9,262,436 | ||||||||||||||||||||||||
Allowance for loan and lease losses | -226,064 | -222,395 | ||||||||||||||||||||||||
Loans held for investment, net | $ | 9,259,308 | $ | 9,040,041 | ||||||||||||||||||||||
__________ | ||||||||||||||||||||||||||
-1 | As of March 31, 2015 and December 31, 2014, includes $1.1 billion 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 | Loans held for investment on which accrual of interest income had been discontinued as of the indicated dates were as follows: | |||||||||||||||||||||||||
(In thousands) | March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||
Non-performing loans: | ||||||||||||||||||||||||||
Residential mortgage | $ | 172,583 | $ | 180,707 | ||||||||||||||||||||||
Commercial mortgage | 142,385 | 148,473 | ||||||||||||||||||||||||
Commercial and Industrial | 186,500 | 122,547 | ||||||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||
Land | 14,091 | 15,030 | ||||||||||||||||||||||||
Construction-residential | 13,072 | 14,324 | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Auto loans | 19,043 | 22,276 | ||||||||||||||||||||||||
Finance leases | 2,979 | 5,245 | ||||||||||||||||||||||||
Other consumer loans | 12,891 | 15,294 | ||||||||||||||||||||||||
Total non-performing loans held for investment (1)(2)(3) | $ | 563,544 | $ | 523,896 | ||||||||||||||||||||||
_______________ | ||||||||||||||||||||||||||
-1 | As of March 31, 2015 and December 31, 2014, excludes $54.6 million of non-performing loans held for sale. | |||||||||||||||||||||||||
-2 | Amount excludes purchased-credit impaired ("PCI") loans with a carrying value of approximately $181.1 million and $102.6 million as of March 31, 2015 and December 31, 2014, respectively, primarily mortgage loans acquired from Doral Bank in the first quarter of 2015 and 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 $434.2 million and $494.6 million of Troubled Debt Restructuring ("TDR") loans that are in compliance with the modified terms and in accrual status as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||||||||
Corporation's Aging of Loans Held for Investment Portfolio | The Corporation’s aging of the loans held for investment portfolio is as follows: | |||||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||||
(In thousands) | 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) | ||||||||||||||||||
Residential mortgage: | ||||||||||||||||||||||||||
FHA/VA and other government-guaranteed | ||||||||||||||||||||||||||
loans (2)(3)(4) | $ | - | $ | 8,200 | $ | 96,086 | $ | 104,286 | $ | - | $ | 51,376 | $ | 155,662 | $ | 96,086 | ||||||||||
Other residential mortgage loans (4) | - | 88,209 | 191,014 | 279,223 | 177,601 | 2,719,134 | 3,175,958 | 18,431 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Commercial and Industrial loans | 22,933 | 3,193 | 207,063 | 233,189 | - | 2,209,678 | 2,442,867 | 20,563 | ||||||||||||||||||
Commercial mortgage loans (4) | - | 1,564 | 165,778 | 167,342 | 3,279 | 1,478,642 | 1,649,263 | 23,393 | ||||||||||||||||||
Construction: | ||||||||||||||||||||||||||
Land (4) | - | 383 | 14,291 | 14,674 | - | 39,516 | 54,190 | 200 | ||||||||||||||||||
Construction-commercial | - | - | - | - | - | 27,456 | 27,456 | - | ||||||||||||||||||
Construction-residential (4) | - | - | 13,072 | 13,072 | - | 29,722 | 42,794 | - | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Auto loans | 76,721 | 18,548 | 19,043 | 114,312 | - | 914,058 | 1,028,370 | - | ||||||||||||||||||
Finance leases | 10,975 | 2,893 | 2,979 | 16,847 | - | 213,336 | 230,183 | - | ||||||||||||||||||
Other consumer loans | 10,355 | 5,464 | 16,339 | 32,158 | 234 | 646,237 | 678,629 | 3,448 | ||||||||||||||||||
Total loans held for investment | $ | 120,984 | $ | 128,454 | $ | 725,665 | $ | 975,103 | $ | 181,114 | $ | 8,329,155 | $ | 9,485,372 | $ | 162,121 | ||||||||||
_____________ | ||||||||||||||||||||||||||
-1 | Includes non-performing loans and accruing loans which are contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges 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 $30.1 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 18 months delinquent, and are no longer accruing interest as of March 31, 2015. | |||||||||||||||||||||||||
-3 | As of March 31, 2015, includes $26.2 million of defaulted loans collateralizing Government National Mortgage Association ("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 March 31, 2015 amounted to $12.2 million, $177.4 million, $38.4 million, $6.1 million, and $1.6 million, respectively. | |||||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||
(In thousands) | 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) | ||||||||||||||||||
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 (4) | - | - | - | - | - | 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 which 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, which 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. | |||||||||||||||||||||||||
Corporation's Credit Quality Indicators by Loan | The Corporation’s credit quality indicators by loan type as of March 31, 2015 and December 31, 2014 are summarized below: | |||||||||||||||||||||||||
Commercial Credit Exposure-Credit Risk Profile Based on Creditworthiness Category: | ||||||||||||||||||||||||||
Substandard | Doubtful | Loss | Total Adversely Classified (1) | Total Portfolio | ||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Commercial mortgage | $ | 227,195 | $ | - | $ | - | $ | 227,195 | $ | 1,649,263 | ||||||||||||||||
Construction: | ||||||||||||||||||||||||||
Land | 15,930 | - | - | 15,930 | 54,190 | |||||||||||||||||||||
Construction-commercial | 11,790 | - | - | 11,790 | 27,456 | |||||||||||||||||||||
Construction-residential | 12,265 | 808 | - | 13,073 | 42,794 | |||||||||||||||||||||
Commercial and Industrial | 229,112 | 6,293 | 789 | 236,194 | 2,442,867 | |||||||||||||||||||||
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 | |||||||||||||||||||||
_________ | ||||||||||||||||||||||||||
-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) as of March 31, 2015 and December 31, 2014, of non-performing loans held for sale. | |||||||||||||||||||||||||
31-Mar-15 | 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 | $ | 155,662 | $ | 2,825,774 | $ | 1,009,327 | $ | 227,204 | $ | 665,504 | ||||||||||||||||
Purchased Credit-Impaired (2) | - | 177,601 | - | - | 234 | |||||||||||||||||||||
Non-performing | - | 172,583 | 19,043 | 2,979 | 12,891 | |||||||||||||||||||||
Total | $ | 155,662 | $ | 3,175,958 | $ | 1,028,370 | $ | 230,183 | $ | 678,629 | ||||||||||||||||
-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 $30.1 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 18 months delinquent, and are no longer accruing interest as of March 31, 2015. | |||||||||||||||||||||||||
-2 | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loan will accrete interest income over the remaining life of the loans using estimated cash flow analysis. | |||||||||||||||||||||||||
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, which 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 loan will accrete interest income over the remaining life of the loans using estimated cash flow analysis. | |||||||||||||||||||||||||
Impaired Loans | The following tables present information about impaired loans, excluding purchased credit-impaired loans, which are reported separately as discussed below: | |||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Specific Allowance | Average Recorded Investment | Interest Income Recognized On Accrual Basis | Interest Income Recognized On Cash Basis | |||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Other residential mortgage loans | 62,337 | 68,263 | - | 63,040 | 199 | 79 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Commercial mortgage loans | 100,797 | 120,956 | - | 101,196 | 406 | 425 | ||||||||||||||||||||
Commercial and Industrial Loans | 32,080 | 36,975 | - | 33,802 | 18 | 200 | ||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||
Land | 1,473 | 4,726 | - | 1,473 | - | - | ||||||||||||||||||||
Construction-commercial | - | - | - | - | - | - | ||||||||||||||||||||
Construction-residential | 6,762 | 9,346 | - | 6,943 | 41 | - | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Auto loans | 562 | 562 | - | 562 | 10 | - | ||||||||||||||||||||
Finance leases | - | - | - | - | - | - | ||||||||||||||||||||
Other consumer loans | 3,229 | 4,634 | - | 3,268 | 10 | 26 | ||||||||||||||||||||
$ | 207,240 | $ | 245,462 | $ | - | $ | 210,284 | $ | 684 | $ | 730 | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Other residential mortgage loans | 367,189 | 416,579 | 14,862 | 368,999 | 4,224 | 414 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Commercial mortgage loans | 123,568 | 143,090 | 13,238 | 124,701 | 475 | 279 | ||||||||||||||||||||
Commercial and Industrial Loans | 194,576 | 227,417 | 24,871 | 196,896 | 1,950 | 43 | ||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||
Land | 9,355 | 13,181 | 1,220 | 9,413 | 15 | 9 | ||||||||||||||||||||
Construction-commercial | 11,790 | 11,790 | 1,145 | 11,790 | 128 | - | ||||||||||||||||||||
Construction-residential | 8,213 | 8,917 | 1,016 | 8,202 | 3 | - | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Auto loans | 16,986 | 16,986 | 3,058 | 17,472 | 328 | - | ||||||||||||||||||||
Finance leases | 2,053 | 2,053 | 186 | 2,137 | 48 | - | ||||||||||||||||||||
Other consumer loans | 14,011 | 14,259 | 2,544 | 14,266 | 382 | 3 | ||||||||||||||||||||
$ | 747,741 | $ | 854,272 | $ | 62,140 | $ | 753,876 | $ | 7,553 | $ | 748 | |||||||||||||||
Total: | ||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Other residential mortgage loans | 429,526 | 484,842 | 14,862 | 432,039 | 4,423 | 493 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Commercial mortgage loans | 224,365 | 264,046 | 13,238 | 225,897 | 881 | 704 | ||||||||||||||||||||
Commercial and Industrial Loans | 226,656 | 264,392 | 24,871 | 230,698 | 1,968 | 243 | ||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||
Land | 10,828 | 17,907 | 1,220 | 10,886 | 15 | 9 | ||||||||||||||||||||
Construction-commercial | 11,790 | 11,790 | 1,145 | 11,790 | 128 | - | ||||||||||||||||||||
Construction-residential | 14,975 | 18,263 | 1,016 | 15,145 | 44 | - | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Auto loans | 17,548 | 17,548 | 3,058 | 18,034 | 338 | - | ||||||||||||||||||||
Finance leases | 2,053 | 2,053 | 186 | 2,137 | 48 | - | ||||||||||||||||||||
Other consumer loans | 17,240 | 18,893 | 2,544 | 17,534 | 392 | 29 | ||||||||||||||||||||
$ | 954,981 | $ | 1,099,734 | $ | 62,140 | $ | 964,160 | $ | 8,237 | $ | 1,478 | |||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Specific Allowance | Average Recorded Investment | |||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Other residential mortgage loans | 74,177 | 80,522 | - | 75,711 | ||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Commercial mortgage loans | 109,271 | 132,170 | - | 113,674 | ||||||||||||||||||||||
Commercial and Industrial Loans | 41,131 | 47,647 | - | 42,011 | ||||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||
Land | 2,994 | 6,357 | - | 3,030 | ||||||||||||||||||||||
Construction-commercial | - | - | - | - | ||||||||||||||||||||||
Construction-residential | 7,461 | 10,100 | - | 8,123 | ||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Auto loans | - | - | - | - | ||||||||||||||||||||||
Finance leases | - | - | - | - | ||||||||||||||||||||||
Other consumer loans | 3,778 | 5,072 | - | 3,924 | ||||||||||||||||||||||
$ | 238,812 | $ | 281,868 | $ | - | $ | 246,473 | |||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Other residential mortgage loans | 350,067 | 396,203 | 10,854 | 357,129 | ||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Commercial mortgage loans | 101,467 | 116,329 | 14,289 | 104,191 | ||||||||||||||||||||||
Commercial and Industrial Loans | 195,240 | 226,431 | 21,314 | 198,930 | ||||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||
Land | 9,120 | 12,821 | 794 | 10,734 | ||||||||||||||||||||||
Construction-commercial | 11,790 | 11,790 | 790 | 11,867 | ||||||||||||||||||||||
Construction-residential | 8,102 | 8,834 | 993 | 8,130 | ||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Auto loans | 16,991 | 16,991 | 2,787 | 18,504 | ||||||||||||||||||||||
Finance leases | 2,181 | 2,181 | 253 | 2,367 | ||||||||||||||||||||||
Other consumer loans | 11,637 | 12,136 | 3,131 | 12,291 | ||||||||||||||||||||||
$ | 706,595 | $ | 803,716 | $ | 55,205 | $ | 724,143 | |||||||||||||||||||
Total: | ||||||||||||||||||||||||||
FHA/VA-Guaranteed loans | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Other residential mortgage loans | 424,244 | 476,725 | 10,854 | 432,840 | ||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Commercial mortgage loans | 210,738 | 248,499 | 14,289 | 217,865 | ||||||||||||||||||||||
Commercial and Industrial Loans | 236,371 | 274,078 | 21,314 | 240,941 | ||||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||
Land | 12,114 | 19,178 | 794 | 13,764 | ||||||||||||||||||||||
Construction-commercial | 11,790 | 11,790 | 790 | 11,867 | ||||||||||||||||||||||
Construction-residential | 15,563 | 18,934 | 993 | 16,253 | ||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||
Auto loans | 16,991 | 16,991 | 2,787 | 18,504 | ||||||||||||||||||||||
Finance leases | 2,181 | 2,181 | 253 | 2,367 | ||||||||||||||||||||||
Other consumer loans | 15,415 | 17,208 | 3,131 | 16,215 | ||||||||||||||||||||||
$ | 945,407 | $ | 1,085,584 | $ | 55,205 | $ | 970,616 | |||||||||||||||||||
Interest income of approximately $7.6 million ($5.9 million accrual basis and $1.7 million cash basis) was recognized on impaired loans for the first quarter of 2014. | ||||||||||||||||||||||||||
Activity for Impaired loans | The following table shows the activity for impaired loans and the related specific reserve during the first quarter of 2015 and 2014: | |||||||||||||||||||||||||
Quarter ended | ||||||||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | |||||||||||||||||||||||||
Impaired Loans: | (In thousands) | |||||||||||||||||||||||||
Balance at beginning of period | $ | 945,407 | $ | 919,112 | ||||||||||||||||||||||
Loans determined impaired during the period | 62,933 | 54,277 | ||||||||||||||||||||||||
Charge-offs | -11,715 | -32,039 | ||||||||||||||||||||||||
Loans sold, net of charge-offs | -1,137 | - | ||||||||||||||||||||||||
Increases to impaired loans- additional disbursements | 519 | 625 | ||||||||||||||||||||||||
Foreclosures | -9,952 | -4,006 | ||||||||||||||||||||||||
Loans no longer considered impaired | -9,898 | -3,728 | ||||||||||||||||||||||||
Paid in full or partial payments | -21,176 | -54,853 | ||||||||||||||||||||||||
Balance at end of period | $ | 954,981 | $ | 879,388 | ||||||||||||||||||||||
Activity for Specific Reserve | ||||||||||||||||||||||||||
Quarter ended | ||||||||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | |||||||||||||||||||||||||
Specific Reserve: | (In thousands) | |||||||||||||||||||||||||
Balance at beginning of period | $ | 55,205 | $ | 102,601 | ||||||||||||||||||||||
Provision for loan losses | 18,650 | 14,454 | ||||||||||||||||||||||||
Charge-offs | -11,715 | -32,039 | ||||||||||||||||||||||||
Balance at end of period | $ | 62,140 | $ | 85,016 | ||||||||||||||||||||||
Contractually Required Principal and Interest Cash Flows Expected to be Collected and Fair Value at Acquisition Related to Loans Acquired | The following table presents acquired loans from Doral Bank in the first quarter of 2015 accounted for pursuant to ASC 310-30 as of the acquisition date: | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Contractually- required principal and interest | $ | 166,947 | ||||||||||||||||||||||||
Less: Nonaccretable difference | -48,739 | |||||||||||||||||||||||||
Cash flows expected to be collected | 118,208 | |||||||||||||||||||||||||
Less: Accretable yield | -38,319 | |||||||||||||||||||||||||
Fair value of loans acquired in 2015 (1) | $ | 79,889 | ||||||||||||||||||||||||
-1 | Amounts are preliminary estimates based on the best information available at the acquisition date and adjustments in future quarters may occur up to one year from the date of acquisition. | |||||||||||||||||||||||||
Carrying Value of Acquired Loans | The carrying amount of PCI loans follows: | |||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Residential mortgage loans | $ | 177,601 | $ | 98,494 | ||||||||||||||||||||||
Commercial mortgage loans | 3,279 | 3,393 | ||||||||||||||||||||||||
Credit Cards | 234 | 717 | ||||||||||||||||||||||||
$ | 181,114 | $ | 102,604 | |||||||||||||||||||||||
Accretable Yield | Changes in the accretable yield of PCI loans for the quarters ended March 31, 2015 and 2014 were as follows: | |||||||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 82,460 | $ | - | ||||||||||||||||||||||
Additions (accretable yield at acquisition | ||||||||||||||||||||||||||
of loans from Doral Bank) | 38,319 | - | ||||||||||||||||||||||||
Accretion recognized in earnings | -2,277 | - | ||||||||||||||||||||||||
Balance at end of period | $ | 118,502 | $ | - | ||||||||||||||||||||||
Selected Information on TDRs Includes Recorded Investment by Loan Class and Modification Type | 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-Mar-15 | ||||||||||||||||||||||||||
(In thousands) | 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 | ||||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||||||
Non- FHA/VA Residential Mortgage loans | $ | 26,039 | $ | 5,206 | $ | 281,824 | $ | - | $ | 41,025 | $ | 354,094 | ||||||||||||||
Commercial Mortgage Loans | 26,952 | 12,685 | 73,956 | - | 23,187 | 136,780 | ||||||||||||||||||||
Commercial and Industrial Loans | 4,431 | 78,171 | 30,830 | 3,057 | 50,247 | 166,736 | ||||||||||||||||||||
Construction Loans: | ||||||||||||||||||||||||||
Land | - | 201 | 1,680 | - | 596 | 2,477 | ||||||||||||||||||||
Construction-residential | 6,154 | 378 | 3,095 | - | 433 | 10,060 | ||||||||||||||||||||
Consumer Loans - Auto | - | 324 | 10,736 | - | 6,487 | 17,547 | ||||||||||||||||||||
Finance Leases | - | 285 | 1,768 | - | - | 2,053 | ||||||||||||||||||||
Consumer Loans - Other | 37 | 317 | 12,774 | 379 | 1,869 | 15,376 | ||||||||||||||||||||
Total Troubled Debt Restructurings (2) | $ | 63,613 | $ | 97,567 | $ | 416,663 | $ | 3,436 | $ | 123,844 | $ | 705,123 | ||||||||||||||
-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 TDRs held for sale amounting to $45.7 million as of March 31, 2015. | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
(In thousands) | 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 | ||||||||||||||||||||
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 TDRs held for sale amounting to $45.7 million as of December 31, 2014. | |||||||||||||||||||||||||
Corporation's TDR Activity | The following table presents the Corporation's TDR activity | 630,258 | ||||||||||||||||||||||||
(In thousands) | Quarter Ended | |||||||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | |||||||||||||||||||||||||
Beginning Balance of TDRs | $ | 694,453 | $ | 630,258 | ||||||||||||||||||||||
New TDRs | 31,601 | 19,935 | ||||||||||||||||||||||||
Increases to existing TDRs - additional disbursements | 335 | 27 | ||||||||||||||||||||||||
Charge-offs post modification | -3,781 | -7,982 | ||||||||||||||||||||||||
Foreclosures | -7,156 | -1,074 | ||||||||||||||||||||||||
Paid-off, partial payments, and other | -10,329 | -18,844 | ||||||||||||||||||||||||
Ending balance of TDRs | $ | 705,123 | $ | 622,320 | ||||||||||||||||||||||
Breakdown Between Accrual and Nonaccrual Status of TDRs | The following table provides a breakdown between the accrual and nonaccrual status of TDRs: | |||||||||||||||||||||||||
(In thousands) | 31-Mar-15 | |||||||||||||||||||||||||
Accrual | Nonaccrual (1)(2) | Total TDRs | ||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | $ | 273,890 | $ | 80,204 | $ | 354,094 | ||||||||||||||||||||
Commercial Mortgage Loans | 75,541 | 61,239 | 136,780 | |||||||||||||||||||||||
Commercial and Industrial Loans | 55,394 | 111,342 | 166,736 | |||||||||||||||||||||||
Construction Loans: | ||||||||||||||||||||||||||
Land | 779 | 1,698 | 2,477 | |||||||||||||||||||||||
Construction-residential | 3,472 | 6,588 | 10,060 | |||||||||||||||||||||||
Consumer Loans - Auto | 11,011 | 6,536 | 17,547 | |||||||||||||||||||||||
Finance Leases | 1,875 | 178 | 2,053 | |||||||||||||||||||||||
Consumer Loans - Other | 12,237 | 3,139 | 15,376 | |||||||||||||||||||||||
Total Troubled Debt Restructurings | $ | 434,199 | $ | 270,924 | $ | 705,123 | ||||||||||||||||||||
-1 | Included in non-accrual loans are $121.9 million in loans that are performing under the terms of a restructuring agreement but are reported in non-accrual 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 non-accrual TDRs held for sale with a carrying value of $45.7 million as of March 31, 2015. | |||||||||||||||||||||||||
(In thousands) | 31-Dec-14 | |||||||||||||||||||||||||
Accrual | Nonaccrual (1)(2) | Total TDRs | ||||||||||||||||||||||||
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 non-accrual loans are $52.8 million in loans that are performing under the terms of a restructuring agreement but are reported in non-accrual 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 non-accrual TDRs held for sale with a carrying value of $45.7 million as of December 31, 2014. | |||||||||||||||||||||||||
Schedule Of Troubled Debt Restructurings Table [Text Block] | Loans modifications that are considered TDRs and were completed during the first quarter of 2015 and 2014 were as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | Quarter ended March 31, 2015 | |||||||||||||||||||||||||
Number of contracts | Pre-modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | 81 | $ | 11,495 | $ | 11,265 | |||||||||||||||||||||
Commercial Mortgage Loans | 8 | 12,821 | 12,931 | |||||||||||||||||||||||
Commercial and Industrial Loans | 1 | 1,681 | 1,681 | |||||||||||||||||||||||
Construction Loans: | ||||||||||||||||||||||||||
Land | 1 | 64 | 64 | |||||||||||||||||||||||
Consumer Loans - Auto | 146 | 2,173 | 2,130 | |||||||||||||||||||||||
Finance Leases | 8 | 233 | 184 | |||||||||||||||||||||||
Consumer Loans - Other | 377 | 3,391 | 3,346 | |||||||||||||||||||||||
Total Troubled Debt Restructurings | 622 | $ | 31,858 | $ | 31,601 | |||||||||||||||||||||
(Dollars in thousands) | Quarter ended March 31, 2014 | |||||||||||||||||||||||||
Number of contracts | Pre-modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | 47 | $ | 7,709 | $ | 7,711 | |||||||||||||||||||||
Commercial Mortgage Loans | 3 | 834 | 837 | |||||||||||||||||||||||
Commercial and Industrial Loans | 5 | 7,964 | 7,630 | |||||||||||||||||||||||
Construction Loans: | ||||||||||||||||||||||||||
Consumer Loans - Auto | 117 | 1,605 | 1,605 | |||||||||||||||||||||||
Finance Leases | 10 | 193 | 193 | |||||||||||||||||||||||
Consumer Loans - Other | 429 | 1,959 | 1,959 | |||||||||||||||||||||||
Total Troubled Debt Restructurings | 611 | $ | 20,264 | $ | 19,935 | |||||||||||||||||||||
Loan Modifications Considered Troubled Debt Restructurings Defaulted | Loan modifications considered TDRs that defaulted during the quarters ended March 31, 2015 and March 31, 2014 and had become TDRs during the 12-month period preceding the default date, were as follows: | |||||||||||||||||||||||||
Quarter ended March 31, | ||||||||||||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | ||||||||||||||||||||||||
Number of contracts | Recorded Investment | Number of contracts | Recorded Investment | |||||||||||||||||||||||
Non-FHA/VA Residential Mortgage loans | 12 | $ | 1,773 | 14 | $ | 2,552 | ||||||||||||||||||||
Commercial and Industrial Loans | 4 | 5,745 | - | - | ||||||||||||||||||||||
Construction Loans: | ||||||||||||||||||||||||||
Consumer Loans - Auto | 2 | 8 | 4 | 39 | ||||||||||||||||||||||
Consumer Loans - Other | 53 | 229 | 45 | 176 | ||||||||||||||||||||||
Finance Leases | 1 | 15 | - | - | ||||||||||||||||||||||
Total | 72 | $ | 7,770 | 63 | $ | 2,767 | ||||||||||||||||||||
Loan Restructuring and Effect on Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||
(In thousands) | 31-Mar-15 | 31-Mar-14 | ||||||||||||||||||||||||
Principal balance deemed collectible at end of period | $ | 42,907 | $ | 78,833 | ||||||||||||||||||||||
Amount charged off | $ | - | $ | - | ||||||||||||||||||||||
(Reductions) charges to the provision for loan losses | $ | -24 | $ | -15 | ||||||||||||||||||||||
Allowance for loan losses at end of period | $ | 707 | $ | 1,547 | ||||||||||||||||||||||
Past Due Purchased Credit Impaired Table [Text Block] | The following tables present PCI loans by past due status as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||
As of March 31, 2015 | 30-59 Days | 60-89 Days | 90 days or more | Total Past Due | Total PCI loans | |||||||||||||||||||||
Current | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Residential mortgage loans (1) | $ | - | $ | 13,572 | $ | 15,775 | $ | 29,347 | $ | 148,254 | $ | 177,601 | ||||||||||||||
Commercial mortgage loans (1) | - | 130 | 653 | 783 | 2,496 | 3,279 | ||||||||||||||||||||
Credit Cards | 22 | - | 22 | 44 | 190 | 234 | ||||||||||||||||||||
$ | 22 | $ | 13,702 | $ | 16,450 | $ | 30,174 | $ | 150,940 | $ | 181,114 | |||||||||||||||
_____________ | ||||||||||||||||||||||||||
-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 March 31, 2015 amounted to $32.0 million and $0.3 million, respectively. | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
Quarter ended | ||||||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 102,604 | ||||||||||||||||||||||||
Additions | 79,889 | |||||||||||||||||||||||||
Accretion | 2,277 | |||||||||||||||||||||||||
Collections | -3,656 | |||||||||||||||||||||||||
Ending balance | $ | 181,114 |
ALLOWANCE_FOR_LOAN_AND_LEASE_L1
ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Changes in Allowance for Loan and Lease Losses | The changes in the allowance for loan and lease losses were as follows: | |||||||||||||||||||||||
(In thousands) | Residential Mortgage Loans | Commercial Mortgage Loans | Commercial & Industrial Loans | Construction Loans | Consumer Loans | Total | ||||||||||||||||||
Quarter ended March 31, 2015 | ||||||||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||
Beginning balance | $ | 27,301 | $ | 50,894 | $ | 63,721 | $ | 12,822 | $ | 67,657 | $ | 222,395 | ||||||||||||
Charge-offs | -5,192 | -4,006 | -4,453 | -605 | -17,757 | -32,013 | ||||||||||||||||||
Recoveries | 98 | 276 | 558 | 207 | 1,573 | 2,712 | ||||||||||||||||||
Provision | 6,475 | -2,137 | 10,353 | 1,215 | 17,064 | 32,970 | ||||||||||||||||||
Ending balance | $ | 28,682 | $ | 45,027 | $ | 70,179 | $ | 13,639 | $ | 68,537 | $ | 226,064 | ||||||||||||
Ending balance: specific reserve for | ||||||||||||||||||||||||
impaired loans | $ | 14,862 | $ | 13,238 | $ | 24,871 | $ | 3,381 | $ | 5,788 | $ | 62,140 | ||||||||||||
Ending balance: purchased credit-impaired loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Ending balance: general allowance | $ | 13,820 | $ | 31,789 | $ | 45,308 | $ | 10,258 | $ | 62,749 | $ | 163,924 | ||||||||||||
Loans held for investment: | ||||||||||||||||||||||||
Ending balance | $ | 3,331,620 | $ | 1,649,263 | $ | 2,442,867 | $ | 124,440 | $ | 1,937,182 | $ | 9,485,372 | ||||||||||||
Ending balance: impaired loans | $ | 429,526 | $ | 224,365 | $ | 226,656 | $ | 37,593 | $ | 36,841 | $ | 954,981 | ||||||||||||
Ending balance: purchased credit- | ||||||||||||||||||||||||
impaired loans | $ | 177,601 | $ | 3,279 | $ | - | $ | - | $ | 234 | $ | 181,114 | ||||||||||||
Ending balance: loans with general allowance | $ | 2,724,493 | $ | 1,421,619 | $ | 2,216,211 | $ | 86,847 | $ | 1,900,107 | $ | 8,349,277 | ||||||||||||
(In thousands) | Residential Mortgage Loans | Commercial Mortgage Loans | Commercial & Industrial Loans | Construction Loans | Consumer Loans | Total | ||||||||||||||||||
Quarter ended March 31, 2014 | ||||||||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||
Beginning balance | $ | 33,110 | $ | 73,138 | $ | 85,295 | $ | 35,814 | $ | 58,501 | $ | 285,858 | ||||||||||||
Charge-offs | -6,422 | -5,810 | -22,459 | -970 | -18,046 | -53,707 | ||||||||||||||||||
Recoveries | 69 | 35 | 663 | 617 | 1,328 | 2,712 | ||||||||||||||||||
Provision | 3,751 | -851 | 16,091 | -8,050 | 20,974 | 31,915 | ||||||||||||||||||
Ending balance | $ | 30,508 | $ | 66,512 | $ | 79,590 | $ | 27,411 | $ | 62,757 | $ | 266,778 | ||||||||||||
Ending balance: specific reserve for | ||||||||||||||||||||||||
impaired loans | $ | 17,273 | $ | 29,833 | $ | 19,098 | $ | 15,154 | $ | 3,658 | $ | 85,016 | ||||||||||||
Ending balance: purchased credit-impaired loans | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Ending balance: general allowance | $ | 13,235 | $ | 36,679 | $ | 60,492 | $ | 12,257 | $ | 59,099 | $ | 181,762 | ||||||||||||
Loans held for investment: | ||||||||||||||||||||||||
Ending balance | $ | 2,548,101 | $ | 1,846,016 | $ | 2,947,837 | $ | 152,579 | $ | 2,072,252 | $ | 9,566,785 | ||||||||||||
Ending balance: impaired loans | $ | 419,308 | $ | 219,860 | $ | 151,653 | $ | 58,636 | $ | 29,931 | $ | 879,388 | ||||||||||||
Ending balance: purchased credit- | ||||||||||||||||||||||||
impaired loans | $ | - | $ | - | $ | - | $ | - | $ | 3,383 | $ | 3,383 | ||||||||||||
Ending balance: loans with general allowance | $ | 2,128,793 | $ | 1,626,156 | $ | 2,796,184 | $ | 93,943 | $ | 2,038,938 | $ | 8,684,014 | ||||||||||||
LOANS_HELD_FOR_SALE_Tables
LOANS HELD FOR SALE (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Portfolio of Loans Held for Sale | |||||||
As of | As of | ||||||
31-Mar-15 | 31-Dec-14 | ||||||
(In thousands) | |||||||
Residential mortgage loans | $ | 27,135 | $ | 22,315 | |||
Construction loans | 47,802 | 47,802 | |||||
Commercial mortgage loans | 6,786 | 6,839 | |||||
Total | $ | 81,723 | $ | 76,956 |
OTHER_REAL_ESTATE_OWNED_Tables
OTHER REAL ESTATE OWNED (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Text Block [Abstract] | ||||||||
Schedule Of Other Real Estate Assets And Foreclosed Properties [Table Text Block] | The following table presents OREO inventory as of the dates indicated: | |||||||
Quarter Ended | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(Dollars in thousands) | ||||||||
OREO | ||||||||
OREO balances, carrying value: | ||||||||
FHA/VA-Guaranteed (1) | $ | 6,867 | $ | 7,059 | ||||
Other residential | 26,031 | 22,520 | ||||||
Commercial | 72,473 | 75,654 | ||||||
Construction | 17,257 | 18,770 | ||||||
Total | $ | 122,628 | $ | 124,003 | ||||
-1 | As of March 31, 2015, exclude $0.2 million of foreclosures completed in 2015 that meet the conditions of ASC 310-40 and are presented as a receivable (other assets) in the statement of financial condition. | |||||||
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notional Amounts of All Derivative Instruments | The following table summarizes the notional amounts of all derivative instruments: | ||||||||||||||||
Notional Amounts | |||||||||||||||||
As of | As of | ||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Undesignated economic hedges: | (In thousands) | ||||||||||||||||
Interest rate contracts: | |||||||||||||||||
Interest rate swap agreements | $ | 5,440 | $ | 5,440 | |||||||||||||
Written interest rate cap agreements | 36,809 | 37,132 | |||||||||||||||
Purchased interest rate cap agreements | 36,809 | 37,132 | |||||||||||||||
Forward Contracts: | |||||||||||||||||
Sale of TBA GNMA MBS pools | 32,000 | 19,000 | |||||||||||||||
$ | 111,058 | $ | 98,704 | ||||||||||||||
Notional amounts are presented on a gross basis with no netting of offseting exposure positions. | |||||||||||||||||
Summary of Fair Value of Derivative Instruments and Location in Statement of Financial Condition | The following table summarizes the fair value of derivative instruments as of the indicated dates and the location in the statement of financial condition: | ||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||
Statement of | March 31, | December 31, | March 31, | December 31, | |||||||||||||
Financial | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Condition Location | Fair Value | Fair Value | Statement of Financial Condition Location | Fair Value | Fair Value | ||||||||||||
(In thousands) | |||||||||||||||||
Undesignated economic hedges: | |||||||||||||||||
Interest rate contracts: | |||||||||||||||||
Interest rate swap agreements | Other assets | $ | - | $ | 33 | Accounts payable and other liabilities | $ | - | $ | 33 | |||||||
Written interest rate cap agreements | Other assets | - | - | Accounts payable and other liabilities | 1 | 6 | |||||||||||
Purchased interest rate cap agreements | Other assets | 1 | 6 | Accounts payable and other liabilities | - | - | |||||||||||
Forward Contracts: | |||||||||||||||||
Sales of TBA GNMA MBS pools | Other assets | - | - | Accounts payable and other liabilities | 220 | 148 | |||||||||||
$ | 1 | $ | 39 | $ | 221 | $ | 187 | ||||||||||
Effect of Derivative Instruments on Statement of Income (Loss) | The following table summarizes the effect of derivative instruments on the statement of income : | ||||||||||||||||
Gain (or Loss) | |||||||||||||||||
Location of Gain or (Loss) | Quarter Ended | ||||||||||||||||
Recognized in Income on | March 31, | ||||||||||||||||
(In thousands) | Derivatives | 2015 | 2014 | ||||||||||||||
(In thousands) | |||||||||||||||||
UNDESIGNATED ECONOMIC HEDGES: | |||||||||||||||||
Interest rate contracts: | |||||||||||||||||
Interest rate swap agreements | Interest income - Loans | $ | - | $ | 313 | ||||||||||||
Forward contracts: | |||||||||||||||||
Sales of TBA GNMA MBS pools | Mortgage Banking Activities | -72 | -165 | ||||||||||||||
Total (loss) gain on derivatives | $ | -72 | $ | 148 | |||||||||||||
Summary of Interest Rate Swaps | As of | As of | |||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Pay fixed/receive floating : | |||||||||||||||||
Notional amount | $ | 5,440 | $ | 5,440 | |||||||||||||
Weighted-average receive rate at period end | 2.04% | 2.03% | |||||||||||||||
Weighted-average pay rate at period end | 3.45% | 3.45% | |||||||||||||||
As of March 31, 2015, the Corporation has not entered into any derivative instrument containing credit-risk-related | |||||||||||||||||
contingent features. | |||||||||||||||||
OFFSETTING_OF_ASSETS_AND_LIABI1
OFFSETTING OF ASSETS AND LIABILITIES (Tables) | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||
Offsetting of assets and liabilties | |||||||||||||||||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||||||||||||||||
In thousands | |||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||
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 | ||||||||||||||||||||||
Financial Instruments | Cash Collateral Received | ||||||||||||||||||||||
Net Amount | |||||||||||||||||||||||
Description | |||||||||||||||||||||||
Derivatives | $ | 1 | $ | - | $ | 1 | $ | -1 | $ | - | $ | - | |||||||||||
As of December 31, 2014 | |||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||
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 | ||||||||||||||||||||||
Financial Instruments | Cash Collateral | ||||||||||||||||||||||
Net Amount | |||||||||||||||||||||||
Description | |||||||||||||||||||||||
Derivatives | $ | 6 | $ | - | $ | 6 | $ | -6 | $ | - | $ | - | |||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||||||||||||||||
In thousands | |||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||
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 | ||||||||||||||||||||||
Financial Instruments | Cash Collateral Received | ||||||||||||||||||||||
Net Amount | |||||||||||||||||||||||
Description | |||||||||||||||||||||||
Repurchase agreements | 600,000 | - | 600,000 | -600,000 | - | - | |||||||||||||||||
Total | $ | 600,000 | $ | - | $ | 600,000 | $ | -600,000 | $ | - | $ | - | |||||||||||
As of December 31, 2014 | |||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||
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 | ||||||||||||||||||||||
Financial Instruments | Cash Collateral | ||||||||||||||||||||||
Net Amount | |||||||||||||||||||||||
Description | |||||||||||||||||||||||
Derivatives | $ | 33 | $ | - | $ | 33 | $ | -33 | $ | - | $ | - | |||||||||||
Repurchase agreements | 600,000 | - | 600,000 | -600,000 | - | - | |||||||||||||||||
Total | $ | 600,033 | $ | - | $ | 600,033 | $ | -600,033 | $ | - | $ | - |
GOODWILL_AND_OTHER_INTANGIBLES1
GOODWILL AND OTHER INTANGIBLES (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Gross Amount and Accumulated Amortization of Other Intangible Assets | 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 | |||||
March 31, | December 31, | |||||
2015 | 2014 | |||||
(Dollars in thousands) | ||||||
Core deposit intangible: | ||||||
Gross amount, beginning of period | $ | 45,844 | $ | 45,844 | ||
Addition as a result of acquisition | 5,820 | - | ||||
Accumulated amortization | -40,750 | -40,424 | ||||
Net carrying amount | $ | 10,914 | $ | 5,420 | ||
Remaining amortization period | 9.9 years | 8.4 years | ||||
Purchased credit card relationship intangible: | ||||||
Gross amount | $ | 24,465 | $ | 24,465 | ||
Accumulated amortization | -8,843 | -8,076 | ||||
Net carrying amount | $ | 15,622 | $ | 16,389 | ||
Remaining amortization period | 6.7 years | 6.9 years | ||||
The estimated aggregate amortization expense related to these intangible assets for future periods is as follows: | ||||||
Amount | ||||||
(In thousands) | ||||||
2015 | $ | 3,813 | ||||
2016 | 4,737 | |||||
2017 | 4,197 | |||||
2018 | 3,293 |
NONCONSOLIDATED_VARIABLE_INTER1
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Summarized income statement information | The following table shows summarized unaudited income statement information of CPG/GS for the quarters ended March 31, 2015 and 2014: | |||||||
Quarter Ended | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Revenues, including net realized gains on sale of | ||||||||
investments in loans and OREO | $ | 588 | $ | 751 | ||||
Gross profit (loss) | $ | -8,240 | $ | -1,508 | ||||
Net loss | $ | -7,751 | $ | -2,447 | ||||
Changes in Servicing Assets | The changes in servicing assets are shown below: | |||||||
Quarter ended | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Balance at beginning of period | $ | 22,838 | $ | 21,987 | ||||
Capitalization of servicing assets | 1,073 | 1,052 | ||||||
Amortization | -856 | -783 | ||||||
Adjustment to fair value | -38 | -219 | ||||||
Other (1) | -44 | -11 | ||||||
Balance at end of period | $ | 22,973 | $ | 22,026 | ||||
-1 | Amount represents the adjustment to fair value related to the repurchase of loans serviced for others. | |||||||
Changes in Impairment Allowance | Changes in the impairment allowance were as follows: | |||||||
Quarter ended | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Balance at beginning of period | $ | 55 | $ | 212 | ||||
Temporary impairment charges | 58 | 219 | ||||||
Recoveries | -20 | - | ||||||
Balance at end of period | $ | 93 | $ | 431 | ||||
Components of Net Servicing Income | The components of net servicing income are shown below: | |||||||
Quarter ended | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Servicing fees | $ | 1,764 | $ | 1,671 | ||||
Late charges and prepayment penalties | 190 | 164 | ||||||
Adjustment for loans repurchased | -44 | -11 | ||||||
Other (1) | -89 | -358 | ||||||
Servicing income, gross | 1,821 | 1,466 | ||||||
Amortization and impairment of servicing assets | -894 | -1,002 | ||||||
Servicing income, net | $ | 927 | $ | 464 | ||||
-1 | Mainly consisted of compensatory fees imposed by GSEs and losses related to representations and warranties. | |||||||
Weighted-Averages of Key Economic Assumptions in Valuation Model | (Dollars in thousands) | |||||||
Carrying amount of servicing assets | $ | 22,973 | ||||||
Fair value | $ | 25,195 | ||||||
Weighted-average expected life (in years) | 8.47 | |||||||
Constant prepayment rate (weighted-average annual rate) | 10.25% | |||||||
Decrease in fair value due to 10% adverse change | $ | 948 | ||||||
Decrease in fair value due to 20% adverse change | $ | 1,838 | ||||||
Discount rate (weighted-average annual rate) | 10.62% | |||||||
Decrease in fair value due to 10% adverse change | $ | 1,050 | ||||||
Decrease in fair value due to 20% adverse change | $ | 2,020 |
DEPOSITS_Tables
DEPOSITS (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Summary of Deposit Balances | The following table summarizes deposit balances: | ||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Type of account: | |||||||
Non-interest bearing checking accounts | $ | 1,175,943 | $ | 900,616 | |||
Savings accounts | 2,641,793 | 2,450,484 | |||||
Interest-bearing checking accounts | 1,127,560 | 1,054,136 | |||||
Certificates of deposit | 2,323,259 | 2,191,663 | |||||
Brokered CDs | 2,572,483 | 2,887,046 | |||||
$ | 9,841,038 | $ | 9,483,945 | ||||
Brokered Certificates Of Deposit Mature | Brokered CDs mature as follows: | ||||||
31-Mar-15 | |||||||
(In thousands) | |||||||
Three months or less | $ | 362,501 | |||||
Over three months to six months | 577,737 | ||||||
Over six months to one year | 832,235 | ||||||
One to three years | 745,922 | ||||||
Three to five years | 18,037 | ||||||
Over five years | 36,051 | ||||||
Total | $ | 2,572,483 | |||||
Components of Interest Expense on Deposits | The following are the components of interest expense on deposits: | ||||||
Quarter Ended | |||||||
March 31, | March 31, | ||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Interest expense on deposits | $ | 16,359 | $ | 18,514 | |||
Amortization of broker placement fees | 1,335 | 1,785 | |||||
Interest expense on deposits | $ | 17,694 | $ | 20,299 |
SECURITIES_SOLD_UNDER_AGREEMEN1
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Securities Sold Under Agreements to Repurchase | Securities sold under agreements to repurchase (repurchase agreements) consist of the following: | ||||||
March, 31 | December 31, | ||||||
2015 | 2014 | ||||||
(Dollars in thousands) | |||||||
Repurchase agreements, interest ranging from 1.96% to 3.33% | |||||||
(December 31, 2014: 2.45% to 4.50%) (1) | $ | 900,000 | $ | 900,000 | |||
-1 | As of March 31, 2015, includes $800 million with an average rate of 2.71% that lenders have the right to call before their contractual maturities at various dates beginning on April 9, 2015. Subsequent to April 9, 2015, no lender has exercised its call option on repurchase agreements. In addition, $700 million is tied to variable rates. | ||||||
Schedule of Repurchase Agreement Maturity | Repurchase agreements mature as follows: | ||||||
31-Mar-15 | |||||||
(In thousands) | |||||||
One year to three years | $ | 500,000 | |||||
Over five years | 400,000 | ||||||
Total | $ | 900,000 | |||||
Repurchase Agreements Grouped by Counterparty | Repurchase agreements as of March 31, 2015, grouped by counterparty, were as follows: | ||||||
(Dollars in thousands) | Weighted-Average | ||||||
Counterparty | Amount | Maturity (In Months) | |||||
Citigroup Global Markets | $ | 300,000 | 19 | ||||
JP Morgan Chase | 200,000 | 82 | |||||
Dean Witter / Morgan Stanley | 100,000 | 31 | |||||
Credit Suisse First Boston | 300,000 | 60 | |||||
$ | 900,000 | ||||||
ADVANCES_FROM_THE_FEDERAL_HOME1
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Summary of Advances from FHLB | The following is a summary of the advances from the FHLB: | ||||||
As of | As of | ||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
(Dollars in thousands) | |||||||
Fixed-rate advances from FHLB, with a weighted- | |||||||
average interest rate of 1.17% | $ | 325,000 | $ | 325,000 | |||
Advances from FHLB Mature | Advances from FHLB mature as follows: | ||||||
March 31, | |||||||
2015 | |||||||
(In thousands) | |||||||
Over one year to three years | $ | 300,000 | |||||
Over three to four years | 25,000 | ||||||
Total | $ | 325,000 | |||||
OTHER_BORROWINGS_Tables
OTHER BORROWINGS (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Components of Other Borrowings | March 31, | December 31, | ||||
2015 | 2014 | |||||
(In thousands) | ||||||
Junior subordinated debentures due in 2034, | ||||||
interest-bearing at a floating rate of 2.75% | ||||||
over 3-month LIBOR (3.02% as of March 31, 2015 | ||||||
and 2.99% as of December 31, 2014) | $ | 103,093 | $ | 103,093 | ||
Junior subordinated debentures due in 2034, | ||||||
interest-bearing at a floating rate of 2.50% | ||||||
over 3-month LIBOR (2.77% as of March 31, 2015 | ||||||
and 2.75% as of December 31, 2014) | 128,866 | 128,866 | ||||
$ | 231,959 | $ | 231,959 |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis, are summarized below: | |||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||||||||||||||||||
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 : | ||||||||||||||||||||||||
U.S. Treasury Securities | $ | 7,500 | $ | - | $ | - | $ | 7,500 | $ | 7,499 | $ | - | $ | - | $ | 7,499 | ||||||||
Noncallable U.S. agency debt | - | 286,066 | - | 286,066 | - | 228,157 | - | 228,157 | ||||||||||||||||
Callable U.S. agency debt and MBS | - | 1,607,273 | - | 1,607,273 | - | 1,653,140 | - | 1,653,140 | ||||||||||||||||
Puerto Rico government obligations | - | 39,073 | 2,390 | 41,463 | - | 40,658 | 2,564 | 43,222 | ||||||||||||||||
Private label MBS | - | - | 31,824 | 31,824 | - | - | 33,648 | 33,648 | ||||||||||||||||
Other investments held for sale | - | - | 100 | 100 | - | - | - | - | ||||||||||||||||
Derivatives, included in assets: | ||||||||||||||||||||||||
Interest rate swap agreements | - | - | - | - | - | 33 | - | 33 | ||||||||||||||||
Purchased interest rate cap agreements | - | 1 | - | 1 | - | 6 | - | 6 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Derivatives, included in liabilities: | ||||||||||||||||||||||||
Interest rate swap agreements | - | - | - | - | - | 33 | - | 33 | ||||||||||||||||
Written interest rate cap agreement | - | 1 | - | 1 | - | 6 | - | 6 | ||||||||||||||||
Forward contracts | - | 220 | - | 220 | - | 148 | - | 148 | ||||||||||||||||
Fair Value of Assets and Liabilities Measured on Recurring Basis | Total Fair Value Measurements | |||||||||||||||||||||||
Quarter ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Level 3 Instruments Only | Securities | Securities | ||||||||||||||||||||||
(In thousands) | Available For Sale(1) | Available For Sale(1) | ||||||||||||||||||||||
Beginning balance | $ | 36,212 | 43,292 | |||||||||||||||||||||
Total gains (losses) (realized/unrealized): | ||||||||||||||||||||||||
Included in earnings | -156 | - | ||||||||||||||||||||||
Included in other comprehensive income | 619 | 964 | ||||||||||||||||||||||
Held-to-Maturity investment securities reclassified to Available-for-Sale | ||||||||||||||||||||||||
Sales | ||||||||||||||||||||||||
Purchases | 100 | 5,123 | ||||||||||||||||||||||
Principal repayments and amortization | -2,461 | -1,869 | ||||||||||||||||||||||
Ending balance | $ | 34,314 | $ | 47,510 | ||||||||||||||||||||
-1 | Amounts mostly related to private label MBS. | |||||||||||||||||||||||
Impairment or Valuation Adjustments were Recorded for Assets Recognized at Fair Value | The table below summarizes changes in unrealized gains and losses recorded in earnings for the quarters ended March 31, 2015 and 2014 for Level 3 assets and liabilities that are still held at the end of each period: | |||||||||||||||||||||||
Changes in Unrealized Losses | Changes in Unrealized Losses | |||||||||||||||||||||||
(Quarter ended March 31, 2015) | (Quarter Ended March 31, 2014) | |||||||||||||||||||||||
Level 3 Instruments Only | Securities | Securities | ||||||||||||||||||||||
(In thousands) | Available For Sale | Available For Sale | ||||||||||||||||||||||
Changes in unrealized losses relating to assets still held at reporting date: | ||||||||||||||||||||||||
Net impairment losses on investment securities (credit component) | ($156) | $ - | ||||||||||||||||||||||
As of March 31, 2015, 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 March 31, 2015 | Losses recorded for the Quarter Ended March 31, 2015 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Loans receivable (1) | $ | - | $ | - | $ | 436,944 | $ | -13,725 | ||||||||||||||||
Other Real Estate Owned (2) | - | - | 122,628 | -2,711 | ||||||||||||||||||||
Mortgage servicing rights (3) | - | - | 22,973 | -38 | ||||||||||||||||||||
Loans Held For Sale (4) | - | - | 54,588 | - | ||||||||||||||||||||
-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 loan 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 included: Prepayment rate-10.25%, Discount Rate-10.62%. | |||||||||||||||||||||||
-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 in such agreements. | |||||||||||||||||||||||
As of March 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 March 31, 2014 | (Losses) Gain recorded for the Quarter Ended March 31, 2014 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Loans receivable (1) | $ | - | $ | - | $ | 478,393 | $ | -23,793 | ||||||||||||||||
Other Real Estate Owned (2) | - | - | 138,622 | -4,747 | ||||||||||||||||||||
Mortgage servicing rights (3) | - | - | 22,026 | -219 | ||||||||||||||||||||
Loans Held For Sale (4) | - | - | 54,755 | - | ||||||||||||||||||||
-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 loan 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 included: Prepayment Rate-9.10%, Discount Rate-10.61%. | |||||||||||||||||||||||
-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 in such agreements. | |||||||||||||||||||||||
Estimated Fair Value and Carrying Value of Financial Instruments | The following table presents the estimated fair value and carrying value of financial instruments as of March 31, 2015 and December 31, 2014 | |||||||||||||||||||||||
Total Carrying Amount in Statement of Financial Condition March 31, 2015 | Fair Value Estimated March 31, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and due from banks and money | ||||||||||||||||||||||||
market investments | $ | 984,436 | $ | 984,436 | $ | 984,436 | $ | - | $ | - | ||||||||||||||
Investment securities available | ||||||||||||||||||||||||
for sale | 1,974,226 | 1,974,226 | 7,500 | 1,932,412 | 34,314 | |||||||||||||||||||
Other equity securities | 26,185 | 26,185 | - | 26,185 | - | |||||||||||||||||||
Loans held for sale | 81,723 | 82,942 | - | 28,301 | 54,641 | |||||||||||||||||||
Loans held for investment | 9,485,372 | |||||||||||||||||||||||
Less: allowance for loan and lease losses | -226,064 | |||||||||||||||||||||||
Loans held for investment, net of allowance | $ | 9,259,308 | 9,115,707 | - | - | 9,115,707 | ||||||||||||||||||
Derivatives, included in assets | 1 | 1 | - | 1 | - | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Deposits | 9,841,038 | 9,852,630 | - | 9,852,630 | - | |||||||||||||||||||
Securities sold under agreements to repurchase | 900,000 | 966,365 | - | 966,365 | - | |||||||||||||||||||
Advances from FHLB | 325,000 | 326,087 | - | 326,087 | - | |||||||||||||||||||
Other borrowings | 231,959 | 169,935 | - | - | 169,935 | |||||||||||||||||||
Derivatives, included in liabilities | 221 | 221 | - | 221 | - | |||||||||||||||||||
Total Carrying Amount in Statement of Financial Condition December 31, 2014 | Fair Value Estimated 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 | - | |||||||||||||||||||
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 is as follows: | |||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||
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 Flow | Weighted average prepayment rate of 10.25%; weighted average discount rate of 10.62% | ||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | The table below presents qualitative information for significant assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at March 31, 2015: | |||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||
(In thousands) | Fair Value | Valuation Technique | Unobservable Input | Range | ||||||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||||||||||
Private label MBS | $ | 31,824 | Discounted cash flow | Discount rate | 14.50% | |||||||||||||||||||
Prepayment rate | 18.04% -100.00% (Weighted Average 32%) | |||||||||||||||||||||||
Projected Cumulative Loss Rate | 0.00% -80.00% (Weighted Average 7.3%) | |||||||||||||||||||||||
Puerto Rico Government Obligations | 2,390 | Discounted cash flow | Prepayment speed | 2.89% | ||||||||||||||||||||
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Supplemental Cash Flow Information | Quarter Ended March 31, | |||||
2015 | 2014 | |||||
(In thousands) | ||||||
Cash paid for: | ||||||
Interest on borrowings | $ | 24,502 | $ | 23,359 | ||
Income tax | 82 | 113 | ||||
Non-cash investing and financing activities: | ||||||
Additions to other real estate owned | 12,702 | 8,176 | ||||
Additions to auto and other repossessed assets | 20,464 | 20,771 | ||||
Capitalization of servicing assets | 1,073 | 1,052 | ||||
Loan securitizations | 46,914 | 50,792 | ||||
Preferred stock exchanged for new common stock issued: | ||||||
Preferred stock exchanged (Series A through E) | - | 6,024 | ||||
New common stock issued | - | 5,645 | ||||
Fair value of assets acquired (liabilities assumed) in the Doral Bank transaction: | ||||||
Loans | 311,410 | - | ||||
Premises and equipment, net | 5,450 | - | ||||
Core deposit intangible | 5,820 | - | ||||
Deposits | -523,517 | - | ||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Information about the Reportable Segments | The following table presents information about the reportable segments: | ||||||||||||||||||||
(In thousands) | Mortgage Banking | Consumer (Retail) Banking | Commercial and Corporate | Treasury and Investments | United States Operations | Virgin Islands Operations | Total | ||||||||||||||
For the quarter ended March 31, 2015: | |||||||||||||||||||||
Interest income | $ | 33,876 | $ | 49,836 | $ | 34,803 | $ | 13,067 | $ | 11,231 | $ | 9,672 | $ | 152,485 | |||||||
Net (charge) credit for transfer of funds | -11,236 | 3,684 | -3,795 | 7,754 | 3,593 | - | - | ||||||||||||||
Interest expense | - | -5,657 | - | -16,007 | -4,339 | -835 | -26,838 | ||||||||||||||
Net interest income | 22,640 | 47,863 | 31,008 | 4,814 | 10,485 | 8,837 | 125,647 | ||||||||||||||
(Provision) release for loan and lease losses | -6,963 | -16,685 | -9,093 | - | 2,133 | -2,362 | -32,970 | ||||||||||||||
Non-interest income | 3,399 | 12,417 | 524 | -100 | 524 | 2,522 | 19,286 | ||||||||||||||
Direct non-interest expenses | -8,065 | -31,559 | -7,979 | -1,339 | -7,183 | -8,580 | -64,705 | ||||||||||||||
Segment income | $ | 11,011 | $ | 12,036 | $ | 14,460 | $ | 3,375 | $ | 5,959 | $ | 417 | $ | 47,258 | |||||||
Average earnings assets | $ | 2,492,247 | $ | 2,045,277 | $ | 3,028,358 | $ | 2,764,058 | $ | 971,887 | $ | 639,162 | $ | 11,940,989 | |||||||
(In thousands) | Mortgage Banking | Consumer (Retail) Banking | Commercial and Corporate | Treasury and Investments | United States Operations | Virgin Islands Operations | Total | ||||||||||||||
For the quarter ended March 31, 2014: | |||||||||||||||||||||
Interest income | $ | 25,748 | $ | 55,812 | $ | 42,299 | $ | 15,583 | $ | 10,896 | $ | 10,233 | $ | 160,571 | |||||||
Net (charge) credit for transfer of funds | -8,546 | 3,635 | -2,999 | 5,800 | 2,110 | - | - | ||||||||||||||
Interest expense | - | -6,796 | - | -16,761 | -4,797 | -897 | -29,251 | ||||||||||||||
Net interest income | 17,202 | 52,651 | 39,300 | 4,622 | 8,209 | 9,336 | 131,320 | ||||||||||||||
(Provision) release for loan and lease losses | -3,384 | -20,495 | -13,345 | - | 5,959 | -650 | -31,915 | ||||||||||||||
Non-interest income (loss) | 3,102 | 10,630 | 1,767 | 53 | 441 | 1,967 | 17,960 | ||||||||||||||
Direct non-interest expenses | -9,832 | -32,015 | -12,578 | -1,126 | -7,220 | -9,024 | -71,795 | ||||||||||||||
Segment income | $ | 7,088 | $ | 10,771 | $ | 15,144 | $ | 3,549 | $ | 7,389 | $ | 1,629 | $ | 45,570 | |||||||
Average earnings assets | $ | 1,955,990 | $ | 2,006,395 | $ | 3,921,439 | $ | 2,710,930 | $ | 846,152 | $ | 655,568 | $ | 12,096,474 | |||||||
Reconciliation of the Reportable Segment Financial Information | The following table presents a reconciliation of the reportable segment financial information to the consolidated totals: | ||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Net income: | |||||||||||||||||||||
Total income for segments and other | $ | 47,258 | $ | 45,570 | |||||||||||||||||
Other non-interest gain (loss) (1) | 13,443 | -6,610 | |||||||||||||||||||
Other operating expenses (2) | -27,023 | -20,990 | |||||||||||||||||||
Income before income taxes | 33,678 | 17,970 | |||||||||||||||||||
Income tax expense | -8,032 | -887 | |||||||||||||||||||
Total consolidated net income | $ | 25,646 | $ | 17,083 | |||||||||||||||||
Average assets: | |||||||||||||||||||||
Total average earning assets for segments | $ | 11,940,989 | $ | 12,096,474 | |||||||||||||||||
Other average earning assets (1) | - | 6,570 | |||||||||||||||||||
Average non-earning assets | 934,999 | 671,146 | |||||||||||||||||||
Total consolidated average assets | $ | 12,875,988 | $ | 12,774,190 | |||||||||||||||||
-1 | The bargain purchase gain on the acquisition of assets and assumption of deposits from Doral Bank in 2015 as well as the activities related to the Bank's equity interest in CPG/GS are presented as an Other non-interest income (loss) and the investment in CPG/GS is presented as Other average earning assets in the tables above. | ||||||||||||||||||||
-2 | Expenses pertaining to corporate administrative functions that support the operating segment 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. |
REGULATORY_MATTERS_COMMITMENTS1
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||
Schedule Of Compliance With Regulatory Capital Requirements Under Banking Regulations [Text Block] | The Corporation's and its banking subsidiary's regulatory capital positions as of March 31, 2015 and December 31, 2014 were as follows: | |||||||||||||||||||||||||
Regulatory Requirements | ||||||||||||||||||||||||||
Actual | For Capital Adequacy Purposes | To be Well-Capitalized-Regular Thresholds | ||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
As of March 31, 2015 (Basel III) | ||||||||||||||||||||||||||
Total Capital (to | ||||||||||||||||||||||||||
Risk-Weighted Assets) | ||||||||||||||||||||||||||
First BanCorp. | $ | 1,828,253 | 19.20% | $ | 761,694 | 8% | N/A | N/A | ||||||||||||||||||
FirstBank | $ | 1,798,122 | 18.89% | $ | 761,410 | 8% | $ | 951,763 | 10% | |||||||||||||||||
Common Equity Tier 1 Capital | ||||||||||||||||||||||||||
(to Risk-Weighted Assets) | ||||||||||||||||||||||||||
First BanCorp. | $ | 1,537,862 | 16.15% | $ | 428,453 | 4.50% | N/A | N/A | ||||||||||||||||||
FirstBank | $ | 1,486,508 | 15.62% | $ | 428,293 | 4.50% | $ | 618,646 | 6.50% | |||||||||||||||||
Tier I Capital (to | ||||||||||||||||||||||||||
Risk-Weighted Assets) | ||||||||||||||||||||||||||
First BanCorp. | $ | 1,537,862 | 16.15% | $ | 571,271 | 6% | N/A | N/A | ||||||||||||||||||
FirstBank | $ | 1,676,525 | 17.61% | $ | 571,058 | 6% | $ | 761,410 | 8% | |||||||||||||||||
Leverage ratio | ||||||||||||||||||||||||||
First BanCorp. | $ | 1,537,862 | 12.16% | $ | 505,698 | 4% | N/A | N/A | ||||||||||||||||||
FirstBank | $ | 1,676,525 | 13.28% | $ | 505,036 | 4% | $ | 631,295 | 5% | |||||||||||||||||
As of December 31, 2014 (Basel I) | ||||||||||||||||||||||||||
Total Capital (to | ||||||||||||||||||||||||||
Risk-Weighted Assets) | ||||||||||||||||||||||||||
First BanCorp. | $ | 1,748,120 | 19.70% | $ | 709,723 | 8% | N/A | N/A | ||||||||||||||||||
FirstBank | $ | 1,717,432 | 19.37% | $ | 709,395 | 8% | $ | 886,744 | 10% | |||||||||||||||||
Tier I Capital (to | ||||||||||||||||||||||||||
Risk-Weighted Assets) | ||||||||||||||||||||||||||
First BanCorp. | $ | 1,636,004 | 18.44% | $ | 354,861 | 4% | N/A | N/A | ||||||||||||||||||
FirstBank | $ | 1,605,367 | 18.10% | $ | 354,698 | 4% | $ | 532,046 | 6% | |||||||||||||||||
Leverage ratio | ||||||||||||||||||||||||||
First BanCorp. | $ | 1,636,004 | 13.27% | $ | 493,159 | 4% | N/A | N/A | ||||||||||||||||||
FirstBank | $ | 1,605,367 | 13.04% | $ | 492,468 | 4% | $ | 615,585 | 5% | |||||||||||||||||
FIRST_BANCORP_Holding_Company_1
FIRST BANCORP. (Holding Company Only) Financial Information (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Statements of Financial Condition | Statements of Financial Condition | ||||||
As of March 31, | As of December 31, | ||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Assets | |||||||
Cash and due from banks | $ | 29,726 | $ | 30,380 | |||
Money market investments | 6,111 | 6,111 | |||||
Investment securities available for sale, at market: | |||||||
Other investment securities | 285 | 285 | |||||
Loans held for investment, net | 298 | 322 | |||||
Investment in First Bank Puerto Rico, at equity | 1,900,671 | 1,866,090 | |||||
Investment in First Bank Insurance Agency, at equity | 13,356 | 11,890 | |||||
Investment in FBP Statutory Trust I | 3,093 | 3,093 | |||||
Investment in FBP Statutory Trust II | 3,866 | 3,866 | |||||
Other assets | 4,617 | 4,357 | |||||
Total assets | $ | 1,962,023 | $ | 1,926,394 | |||
Liabilities and Stockholders' Equity | |||||||
Liabilities: | |||||||
Other borrowings | $ | 231,959 | $ | 231,959 | |||
Accounts payable and other liabilities | 24,314 | 22,692 | |||||
Total liabilities | 256,273 | 254,651 | |||||
Stockholders' equity | 1,705,750 | 1,671,743 | |||||
Total liabilities and stockholders' equity | $ | 1,962,023 | $ | 1,926,394 | |||
Statements of Income (Loss) | Statements of Income | ||||||
Quarter Ended | |||||||
March 31, | March 31, | ||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Income: | |||||||
Interest income on money market investments | $ | 5 | $ | 5 | |||
Other income | 56 | 53 | |||||
61 | 58 | ||||||
Expense: | |||||||
Notes payable and other borrowings | 1,817 | 1,760 | |||||
Other operating expenses | 604 | 506 | |||||
2,421 | 2,266 | ||||||
Loss before income taxes and equity in undistributed | |||||||
earnings of subsidiaries | -2,360 | -2,208 | |||||
Income tax provision | - | -2 | |||||
Equity in undistributed earnings of subsidiaries | 28,006 | 19,293 | |||||
Net income | $ | 25,646 | $ | 17,083 | |||
Other comprehensive income, net of tax | 7,140 | 22,539 | |||||
Comprehensive income | $ | 32,786 | $ | 39,622 |
BUSINESS_COMBINATION_Business_
BUSINESS COMBINATION- Business Combination (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Assets [Abstract] | ||
Fair Value Of Assets Acquired | $540,339 | |
Liabilities [Abstract] | ||
Business Combination Bargain Purchase Gain Recognized Amount | 13,443 | 0 |
Deposits [Member] | ||
Liabilities [Abstract] | ||
Liabilities Assumed1 | 523,517 | 0 |
Other Liabilities [Member] | ||
Liabilities [Abstract] | ||
Liabilities Assumed1 | 3,379 | |
Core Deposits [Member] | ||
Assets [Abstract] | ||
Fair Value Of Assets Acquired | 5,820 | 0 |
Property Plant And Equipment [Member] | ||
Assets [Abstract] | ||
Fair Value Of Assets Acquired | 5,450 | 0 |
Cash [Member] | ||
Assets [Abstract] | ||
Fair Value Of Assets Acquired | 217,659 | |
Loans [Member] | ||
Assets [Abstract] | ||
Business Combination Acquired Receivables Fair Value | 311,410 | |
Fair Value Of Assets Acquired | $311,410 | $0 |
BUSINESS_COMBINATION_Additiona
BUSINESS COMBINATION- Additional information (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Feb. 27, 2015 |
Business Acquisition [Line Items] | |||
Branches Doral | 10 | ||
Business Combination Bargain Purchase After Tax Gain Recognized Amount | $8.20 | ||
Premium On Loans Acquired | 1.3 | ||
Business Combination Integration Related Costs | 3.9 | ||
Contractually outstanding principal and interest at acquisition | 226.7 | 135.5 | |
Non Sop Unpaid Principal Balance | 227.9 | ||
Business Combination Acquisition Nonrecurring Costs | 2.1 | ||
Discount On Purchased Credit Impaired Loans | 13.4 | ||
Purchased Credit Impaired Loans Acquired | 93.3 | ||
Deposits [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financial Liabilities | 522.7 | ||
Liabilities Fair Value Adjustment | 0.8 | ||
Property Plant And Equipment [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financial Assets | 5.5 | ||
Cash [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financial Assets | 217.7 | ||
Loans [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financial Assets | $324.80 |
EARNINGS_PER_COMMON_SHARE_Calc
EARNINGS PER COMMON SHARE - Calculations of Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Income (Loss): | ||
Net income (loss) | $25,646 | $17,083 |
Excess of carrying amount of preferred stock exchanged over fair value of new common stock | 0 | 379 |
Net income (loss) attributable to common stockholders | 25,646 | 17,462 |
Weighted-Average Shares: | ||
Basic weighted-average common shares outstanding | 210,686 | 205,732 |
Average potential common shares | 2,060 | 1,144 |
Diluted weighted-average number of common shares outstanding | 212,746 | 206,876 |
Income (loss) per common share: | ||
Basic | $0.12 | $0.08 |
Diluted | $0.12 | $0.08 |
Retained Earnings [Member] | ||
Net Income (Loss): | ||
Net income (loss) | 25,646 | 17,083 |
Excess of carrying amount of preferred stock exchanged over fair value of new common stock | $0 | $379 |
EARNINGS_PER_COMMON_SHARE_Addi
EARNINGS PER COMMON SHARE - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Earnings Per Share Diluted [Line Items] | |||
Unvested shares of restricted stock | 2,327,156 | ||
Restricted Stock [Member] | |||
Earnings Per Share Diluted [Line Items] | |||
Unvested shares of restricted stock | 2,327,156 | ||
Stock Option [Member] | |||
Earnings Per Share Diluted [Line Items] | |||
Antidilutive effect on earnings per share | 69,848 | 88,640 |
STOCKBASED_COMPENSATION_Additi
STOCK-BASED COMPENSATION - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Apr. 29, 2008 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted shares of restricted stock | 821,532 | ||
Restricted stock granted to Board of Directors | -63,750 | ||
Stock based compensation expense unrecognized related to nonvested shares of restricted stock | $6,000,000 | ||
Period for cost recognition not yet recognized | 2 years 3 months 18 days | ||
Weighted-Average Grant Date Fair Value of Stocks | $3.92 | ||
Holding Period By The Us Treasury Of Outstanding Common Stock | 1 year 0 months 0 days | 2 years 0 months 0 days | |
Repurchased of common stock | 50,708 | ||
Stock Issued During Period Value Restricted Stock Award Forfeitures | 26,000 | 5,000 | |
Restricted Stock Vested Subject To Tarp Percentage | 25.00% | ||
Board Of Directors [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted shares of restricted stock | 30,068 | ||
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 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted shares | 80,234 | ||
Share based compensation cost | 400,000 | ||
Weighted-Average Grant Date Fair Value of Stocks | $6.02 | ||
Repurchased of common stock | 28,183 | ||
Management [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted shares of restricted stock | 791,464 | ||
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] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage increments repayment under TARP | 25.00% | ||
Percentage of appreciation | 14.00% | ||
Troubled Asset Relief Program [Member] | Management [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair Value Of Restricted Stock Granted | $3.18 | ||
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation cost | $1,000,000 | $400,000 | |
Repurchased of common stock | 22,525 | ||
First Fifty Percentage Restricted Stock Nonvest Awards [Member] | Management [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock vesting period | 2 years 0 months 0 days | 2 years 0 months 0 days | |
Other Fifty Percentage Restricted Stock Nonvest Awards [Member] | Management [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock vesting period | 3 years 0 months 0 days | 3 years 0 months 0 days | |
Three Months Requisite Service Period [Member] | Management [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted shares of restricted stock | 40,000 | ||
After Two To Three Years Vesting Period [Member] | Management [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of Share vest during period | 50.00% | 50.00% | |
Remaining percentage of share vest during period | 50.00% | 50.00% | |
Granted shares of restricted stock | 751,464 | 810,138 | |
After Two To Three Years Vesting Period [Member] | Troubled Asset Relief Program [Member] | Management [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted shares of restricted stock | 615,464 | 653,138 | |
Fair Value Of Restricted Stock Granted | $2.63 | ||
Percentage of appreciation | 16.00% | ||
Granted Shares With One Year Vesting Period [Member] | Board Of Directors [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted shares of restricted stock | 4,295 | ||
Granted Shares With Five Year Vesting Period [Member] | Board Of Directors [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted shares of restricted stock | 25,773 |
STOCKBASED_COMPENSATION_Activi
STOCK-BASED COMPENSATION - Activity of Stock Options (Detail) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of options, Beginning of year | 82,575 |
Number of Options, expired | -11,395 |
Number of Options, cancelled | -1,332 |
Number of options, End of period outstanding and exercisable | 69,848 |
Weighted-Average Exercise Price, beginning of year | $187.75 |
Weighted-Average Exercise Price, Options expired | $358.80 |
Weighted-Average Exercise Price, Options cancelled | $164.10 |
Weighted-Average Exercise Price, End of period outstanding and exercisable | $160.30 |
Weighted- Average Remaining Contractual Term (Years),End of period outstanding and exercisable | 1 year 3 months 18 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 $) | 3 Months Ended |
Mar. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of non-vested shares of restricted stock, beginning of period | 2,327,156 |
Granted shares of restricted stock | 821,532 |
Vested | -63,750 |
Weighted-Average Grant Date Fair Value, beginning of period | $3.39 |
Weighted-Average Grant Date Fair Value of Stocks | $3.92 |
Weighted-Averages Grant Date Dair Value, Forefeitures | $5.07 |
Weighted-Averages Grant Date Fair Value, Vested | $4 |
Weighted-Average Grant Date Fair Value, end of period | $3.51 |
Omnibus Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Forefeited | -8,500 |
Number of non-vested shares of restricted stock, end of period | 3,076,438 |
INVESTMENT_SECURITIES_Investme
INVESTMENT SECURITIES - Investment Securities Available for Sale (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $1,977,681 | $1,976,261 | |
Non credit loss component of OTTI recorded in OCI | 11,296 | 12,141 | |
Unrealized gain on available-for-sale securities | 37,708 | 31,951 | |
Gross unrealized losses | 29,867 | 30,405 | |
Fair value | 1,974,226 | 1,965,666 | |
Weighted average yield | 2.48% | 2.49% | |
Puerto Rico Government obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 65,500 | ||
Fair value | 41,500 | 27,408 | |
United States And Puerto Rico Government Obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 453,831 | 407,832 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 1,169 | 290 | |
Gross unrealized losses | 27,025 | 24,286 | |
Fair value | 427,975 | 383,836 | |
Weighted average yield | 1.90% | 1.86% | |
Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 1,523,750 | 1,568,429 | |
Non credit loss component of OTTI recorded in OCI | 11,296 | 12,141 | |
Unrealized gain on available-for-sale securities | 36,539 | 31,661 | |
Gross unrealized losses | 2,842 | 6,119 | |
Fair value | 1,546,151 | 1,581,830 | |
Weighted average yield | 2.65% | 2.66% | |
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 | 305,060 | ||
Non credit loss component of OTTI recorded in OCI | 0 | ||
Unrealized gain on available-for-sale securities | 2,779 | ||
Gross unrealized losses | 560 | ||
Fair value | 307,279 | ||
Weighted average yield | 2.17% | ||
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 | 340,383 | 355,989 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 22,900 | 21,459 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 363,283 | 377,448 | |
Weighted average yield | 3.83% | 3.83% | |
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 | 835,187 | 851,341 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 10,860 | 8,458 | |
Gross unrealized losses | 2,282 | 4,859 | |
Fair value | 843,765 | 854,940 | |
Weighted average yield | 2.37% | 2.37% | |
Mortgage Backed Securities Issued By Private Enterprises [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 43,120 | 45,788 | |
Non credit loss component of OTTI recorded in OCI | 11,296 | 12,141 | |
Unrealized gain on available-for-sale securities | 0 | 1 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 31,824 | 33,648 | |
Weighted average yield | 2.15% | 2.17% | |
Due Within One Year [Member] | U S Treasury Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 7,500 | 7,498 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 0 | 1 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 7,500 | 7,499 | |
Weighted average yield | 0.11% | 0.11% | |
Due Within One Year [Member] | Puerto Rico Government obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Weighted average yield | 0.00% | ||
Due Within One Year [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 | ||
Non credit loss component of OTTI recorded in OCI | 0 | ||
Unrealized gain on available-for-sale securities | 0 | ||
Gross unrealized losses | 0 | ||
Fair value | 17 | ||
Weighted average yield | 3.52% | ||
After One To Five Years [Member] | US Government Sponsored Enterprises Debt Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 278,054 | 260,889 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 318 | 42 | |
Gross unrealized losses | 1,918 | 4,219 | |
Fair value | 276,454 | 256,712 | |
Weighted average yield | 1.25% | 1.22% | |
After One To Five Years [Member] | Puerto Rico Government obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 39,836 | 39,827 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 0 | 0 | |
Gross unrealized losses | 16,922 | 12,419 | |
Fair value | 22,914 | ||
Weighted average yield | 4.49% | 4.49% | |
After One To Five Years [Member] | Other Available For Sale Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 100 | [1] | |
Non credit loss component of OTTI recorded in OCI | 0 | [1] | |
Unrealized gain on available-for-sale securities | 0 | [1] | |
Gross unrealized losses | 0 | [1] | |
Fair value | 100 | [1] | |
Weighted average yield | 1.50% | ||
After One To Five 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 | 432 | ||
Non credit loss component of OTTI recorded in OCI | 0 | ||
Unrealized gain on available-for-sale securities | 46 | ||
Gross unrealized losses | 0 | ||
Fair value | 478 | ||
Weighted average yield | 4.95% | ||
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 | 55 | 39 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 2 | 1 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 57 | 40 | |
Weighted average yield | 3.93% | 3.26% | |
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 | 3,743 | 4,160 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 155 | 181 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 3,898 | 4,341 | |
Weighted average yield | 3.37% | 3.40% | |
After Five To Ten Years [Member] | US Government Sponsored Enterprises Debt Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 102,745 | 78,234 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 850 | 246 | |
Gross unrealized losses | 1,037 | 2,077 | |
Fair value | 102,558 | 76,403 | |
Weighted average yield | 1.93% | 1.72% | |
After Five To Ten Years [Member] | Puerto Rico Government obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 875 | 886 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 0 | 1 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 875 | 887 | |
Weighted average yield | 5.20% | 5.20% | |
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 | 24,189 | 17,108 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 956 | 501 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 25,145 | 17,609 | |
Weighted average yield | 3.62% | 3.65% | |
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 | 16,924 | 9,584 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 646 | 521 | |
Gross unrealized losses | 31 | 5 | |
Fair value | 17,539 | 10,100 | |
Weighted average yield | 2.90% | 3.49% | |
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 | 108 | 111 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 0 | 1 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 108 | 112 | |
Weighted average yield | 7.26% | 7.27% | |
After Ten Years [Member] | Puerto Rico Government obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 24,821 | 20,498 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 1 | 0 | |
Gross unrealized losses | 7,148 | 5,571 | |
Fair value | 17,674 | 14,927 | |
Weighted average yield | 5.37% | 5.83% | |
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 | 304,628 | 315,311 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 2,733 | 1,743 | |
Gross unrealized losses | 560 | 1,260 | |
Fair value | 306,801 | 315,794 | |
Weighted average yield | 2.17% | 2.17% | |
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 | 316,122 | 338,842 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 21,942 | 20,957 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 338,064 | 359,799 | |
Weighted average yield | 3.85% | 3.83% | |
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 | 814,520 | 837,597 | |
Non credit loss component of OTTI recorded in OCI | 0 | 0 | |
Unrealized gain on available-for-sale securities | 10,059 | 7,756 | |
Gross unrealized losses | 2,251 | 4,854 | |
Fair value | 822,328 | 840,499 | |
Weighted average yield | 2.35% | 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 | 43,012 | 45,677 | |
Non credit loss component of OTTI recorded in OCI | 11,296 | 12,141 | |
Unrealized gain on available-for-sale securities | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Fair value | $31,716 | $33,536 | |
Weighted average yield | 2.15% | 2.17% | |
Equity Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Weighted average yield | 0.00% | ||
[1] | Represents investment in a Community Investment Fund. |
INVESTMENT_SECURITIES_Addition
INVESTMENT SECURITIES - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
numberofcontracts | |||
Schedule Of Investments [Line Items] | |||
Percentage Of Debt Securities Government And Government Sponsored Agencies | 96.00% | ||
Amortized cost of private label of mortgage backed security | $43,000,000 | ||
Credit related impairment loss is related to Private label MBS | 156,000 | ||
Minimum Credit Score | 700 | ||
Maximum loan to value ratio | 80.00% | ||
Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities | 53,596,000 | 45,422,000 | |
Total investment securities available for sale | 1,974,226,000 | 1,965,666,000 | |
Fair value | 1,974,226,000 | 1,965,666,000 | |
Amortized cost | 1,977,681,000 | 1,976,261,000 | |
Unrealized losses | 29,867,000 | 30,405,000 | |
Weighted average yield | 2.48% | 2.49% | |
Puerto Rico Government obligations [Member] | |||
Schedule Of Investments [Line Items] | |||
Total investment securities available for sale | 41,500,000 | 27,408,000 | |
Fair value | 41,500,000 | 27,408,000 | |
Amortized cost | 65,500,000 | ||
Change in net unrealized gains | ($6,100,000) |
INVESTMENT_SECURITIES_Availabl
INVESTMENT SECURITIES - Available-For-Sale Investments' Fair Value And Gross Unrealized Losses (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | $426,813 | $48,474 |
Unrealized Losses Less than 12 months | 1,547 | 79 |
Fair Value 12 months or more | 450,633 | 1,010,786 |
Unrealized Losses 12 months or more | 39,616 | 42,467 |
Total Fair Value | 877,446 | 1,059,260 |
Total Unrealized Losses | 41,163 | 42,546 |
Equity Securities [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 | 0 | 0 |
Unrealized Losses 12 months or more | 0 | 0 |
Total Fair Value | 0 | 0 |
Total Unrealized Losses | 0 | 0 |
Debt Securities [Member] | Puerto Rico Government Obligations [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 | 36,314 | 42,335 |
Unrealized Losses 12 months or more | 24,070 | 17,990 |
Total Fair Value | 36,314 | 42,335 |
Total Unrealized Losses | 24,070 | 17,990 |
Debt Securities [Member] | US States And Political Subdivisions Member [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 4,999 | 46,436 |
Unrealized Losses Less than 12 months | 0 | 74 |
Fair Value 12 months or more | 261,252 | 257,996 |
Unrealized Losses 12 months or more | 2,955 | 6,222 |
Total Fair Value | 266,251 | 304,432 |
Total Unrealized Losses | 2,955 | 6,296 |
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 | 0 | |
Unrealized Losses 12 months or more | 0 | |
Total Fair Value | 0 | |
Total Unrealized Losses | 0 | |
Mortgage Backed Securities [Member] | Other-mortgage pass-through trust certificates [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 | 31,716 | 33,536 |
Unrealized Losses 12 months or more | 11,296 | 12,141 |
Total Fair Value | 31,716 | 33,536 |
Total Unrealized Losses | 11,296 | 12,141 |
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 | 311,339 | 2,038 |
Unrealized Losses Less than 12 months | 1,195 | 5 |
Fair Value 12 months or more | 99,932 | 541,642 |
Unrealized Losses 12 months or more | 1,087 | 4,854 |
Total Fair Value | 411,271 | 543,680 |
Total Unrealized Losses | 2,282 | 4,859 |
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 | 110,475 | 0 |
Unrealized Losses Less than 12 months | 352 | 0 |
Fair Value 12 months or more | 21,419 | 135,277 |
Unrealized Losses 12 months or more | 208 | 1,260 |
Total Fair Value | 131,894 | 135,277 |
Total Unrealized Losses | $560 | $1,260 |
INVESTMENT_SECURITIES_OTTI_Los
INVESTMENT SECURITIES - OTTI Losses on Available-for-Sale Debt Securities (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Total other-than-temporary impairment losses | $0 | $0 |
Net impairment losses recognized in earnings | 156 | 0 |
Mortgage Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total other-than-temporary impairment losses | 0 | 0 |
Portion of loss previously recognized in other comprehensive income | -156 | 0 |
Net impairment losses recognized in earnings | ($156) | $0 |
INVESTMENT_SECURITIES_RollForw
INVESTMENT SECURITIES - Roll-Forward of Credit Losses on Debt Securities Held by Corporation (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items] | ||
Beginning balance of credit losses on debt securities held for which a portion of an OTTI was recognized in OCI | $5,777 | $5,389 |
Additions: | ||
Credit losses on debt securities for which an OTTI was previously recognized | 156 | 0 |
Ending balance of credit losses on debt securities held for which a portion of an OTTI was recognized in OCI | $5,933 | $5,389 |
INVESTMENT_SECURITIES_Signific
INVESTMENT SECURITIES - Significant Assumptions in Valuation of Private Label MBS (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Investments [Line Items] | ||
Fair Value Inputs Discount Rate | 14.50% | 14.50% |
Fair Value Inputs Prepayment Rate | 31.56% | 32.00% |
Weighted Average, Projected Cumulative Loss Rate | 7.30% | 7.90% |
Minimum [Member] | ||
Schedule Of Investments [Line Items] | ||
Fair Value Inputs Prepayment Rate | 18.04% | 19.89% |
Weighted Average, Projected Cumulative Loss Rate | 0.00% | 0.64% |
Maximum [Member] | ||
Schedule Of Investments [Line Items] | ||
Fair Value Inputs Prepayment Rate | 100.00% | 100.00% |
Weighted Average, Projected Cumulative Loss Rate | 80.00% | 80.00% |
OTHER_EQUITY_SECURITIES_Additi
OTHER EQUITY SECURITIES - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Schedule Of Other Assets [Line Items] | |||
Capital stock par value | $100 | ||
Book value of investment in FHLB stock | $25.50 | $25.50 | |
Dividend income from FHLB stock | 0.3 | 0.3 | |
Carrying value of other equity security | $0.70 | $0.30 |
LOAN_PORTFOLIO_Loan_Portfolio_
LOAN PORTFOLIO - Loan Portfolio Held for Investment (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||
In Thousands, unless otherwise specified | |||||
Financial Information [Line Items] | |||||
Residential mortgage loans, mainly secured by first mortgages | $3,331,620 | $3,011,187 | |||
Commercial loans: | |||||
Construction loans | 124,440 | 123,480 | |||
Commercial mortgage loans | 1,649,263 | 1,665,787 | |||
Commercial and Industrial loans | 2,442,867 | [1] | 2,479,437 | [1] | |
Loans to local financial institutions collateralized by real estate mortgages | 0 | 0 | |||
Commercial loans | 4,216,570 | 4,268,704 | |||
Finance leases | 230,183 | 232,126 | |||
Consumer loans | 1,706,999 | 1,750,419 | |||
Loans held for investment | 9,485,372 | 9,262,436 | 9,566,785 | ||
Less: allowance for loan and lease losses | -226,064 | -222,395 | |||
Loans held for investment, net | 9,259,308 | 9,040,041 | |||
Commercial And Industrial [Member] | |||||
Commercial loans: | |||||
Loans held for investment | $2,442,867 | $2,479,437 | |||
[1] | As of March 31, 2015 and December 31, 2014, includes $1.1 billion 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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Billions, unless otherwise specified | ||
Financial Information [Line Items] | ||
Commercian Loans Collaterized By Real Estate | $1.10 | $1.10 |
LOAN_PORTFOLIO_Loans_Held_for_
LOAN PORTFOLIO - Loans Held for Investment on Which Accrual of Interest Income had been Discontinued (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | $563,544 | [1],[2],[3] | $523,896 | [1],[2],[3] |
Residential Mortgage [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 172,583 | 180,707 | ||
Commercial Mortgage [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 142,385 | 148,473 | ||
Commercial And Industrial [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 186,500 | 122,547 | ||
Consumer Auto Loans [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 19,043 | 22,276 | ||
Finance Leases [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 2,979 | 5,245 | ||
Consumer Retail Banking [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 12,891 | 15,294 | ||
Residential Construction [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 13,072 | 14,324 | ||
Commercial Construction [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 0 | 0 | ||
Land Construction [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | $14,091 | $15,030 | ||
[1] | As of March 31, 2015 and December 31, 2014, excludes $54.6 million of non-performing loans held for sale. | |||
[2] | Amount excludes purchased-credit impaired ("PCI") loans with a carrying value of approximately $181.1 million and $102.6 million as of March 31, 2015 and December 31, 2014, respectively, primarily mortgage loans acquired from Doral Bank in the first quarter of 2015 and 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 $434.2 million and $494.6 million of Troubled Debt Restructuring ("TDR") loans that are in compliance with the modified terms and in accrual status as of March 31, 2015 and December 31, 2014, 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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | $81,723 | $76,956 |
Non Accrual [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | $54,600 | $54,600 |
LOAN_PORTFOLIO_Corporations_Ag
LOAN PORTFOLIO - Corporation's Aging of Loans Held for Investment Portfolio (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||
In Thousands, unless otherwise specified | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
30-59 Days Past Due | $120,984 | $118,154 | |||
60-89 Days, Past Due | 128,454 | 139,659 | |||
90 days or more, Past Due | 725,665 | [1] | 671,122 | [2] | |
Total Past Due | 975,103 | 928,935 | |||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 181,114 | 102,604 | |||
Financing Receivable, Current | 8,329,155 | 8,230,897 | |||
Loans held for investment | 9,485,372 | 9,262,436 | 9,566,785 | ||
90 days past due and still accruing | 162,121 | [3] | 147,226 | [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 | 8,200 | [3],[5],[6] | 9,733 | [4],[7] | |
90 days or more, Past Due | 96,086 | [1],[3],[5],[6] | 81,055 | [4],[7] | |
Total Past Due | 104,286 | [3],[5],[6] | 90,788 | [4],[7] | |
Financing Receivable, Current | 51,376 | [3],[5],[6] | 62,782 | [4],[7] | |
Loans held for investment | 155,662 | [3],[5],[6] | 153,570 | [4],[7] | |
90 days past due and still accruing | 96,086 | [3],[5],[6] | 81,055 | [4],[7] | |
Residential Mortgage [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
30-59 Days Past Due | 0 | [5] | 0 | [8] | |
60-89 Days, Past Due | 88,209 | [5] | 78,336 | [8] | |
90 days or more, Past Due | 191,014 | [1],[5] | 199,078 | [2],[8] | |
Total Past Due | 279,223 | [5] | 277,414 | [8] | |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 177,601 | [5] | 98,494 | [8] | |
Financing Receivable, Current | 2,719,134 | [5] | 2,481,709 | [8] | |
Loans held for investment | 3,175,958 | [5] | 2,857,617 | [8] | |
90 days past due and still accruing | 18,431 | [3],[5] | 18,371 | [4],[8] | |
Commercial And Industrial [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
30-59 Days Past Due | 22,933 | 22,217 | |||
60-89 Days, Past Due | 3,193 | 7,445 | |||
90 days or more, Past Due | 207,063 | [1] | 143,928 | [2] | |
Total Past Due | 233,189 | 173,590 | |||
Financing Receivable, Current | 2,209,678 | 2,305,847 | |||
Loans held for investment | 2,442,867 | 2,479,437 | |||
90 days past due and still accruing | 20,563 | [3] | 21,381 | [4] | |
Commercial Mortgage Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
30-59 Days Past Due | 0 | [5] | 0 | [8] | |
60-89 Days, Past Due | 1,564 | [5] | 15,482 | [8] | |
90 days or more, Past Due | 165,778 | [1],[5] | 171,281 | [2],[8] | |
Total Past Due | 167,342 | [5] | 186,763 | [8] | |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 3,279 | [5] | 3,393 | [8] | |
Financing Receivable, Current | 1,478,642 | [5] | 1,475,631 | [8] | |
Loans held for investment | 1,649,263 | [5] | 1,665,787 | [8] | |
90 days past due and still accruing | 23,393 | [3],[5] | 22,808 | [4],[8] | |
Auto loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
30-59 Days Past Due | 76,721 | 77,385 | |||
60-89 Days, Past Due | 18,548 | 19,665 | |||
90 days or more, Past Due | 19,043 | [1] | 22,276 | [2] | |
Total Past Due | 114,312 | 119,326 | |||
Financing Receivable, Current | 914,058 | 941,456 | |||
Loans held for investment | 1,028,370 | 1,060,782 | |||
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 | 10,975 | 8,751 | |||
60-89 Days, Past Due | 2,893 | 2,734 | |||
90 days or more, Past Due | 2,979 | [1] | 5,245 | [2] | |
Total Past Due | 16,847 | 16,730 | |||
Financing Receivable, Current | 213,336 | 215,396 | |||
Loans held for investment | 230,183 | 232,126 | |||
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 | 10,355 | 9,801 | |||
60-89 Days, Past Due | 5,464 | 6,054 | |||
90 days or more, Past Due | 16,339 | [1] | 18,671 | [2] | |
Total Past Due | 32,158 | 34,526 | |||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net | 234 | 717 | |||
Financing Receivable, Current | 646,237 | 654,394 | |||
Loans held for investment | 678,629 | 689,637 | |||
90 days past due and still accruing | 3,448 | [3] | 3,377 | [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] | 0 | [2] | |
Total Past Due | 0 | 0 | |||
Financing Receivable, Current | 27,456 | 24,562 | |||
Loans held for investment | 27,456 | 24,562 | |||
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 | [8] | |
60-89 Days, Past Due | 0 | [5] | 0 | [8] | |
90 days or more, Past Due | 13,072 | [1],[5] | 14,324 | [2],[8] | |
Total Past Due | 13,072 | [5] | 14,324 | [8] | |
Financing Receivable, Current | 29,722 | [5] | 28,673 | [8] | |
Loans held for investment | 42,794 | [5] | 42,997 | [8] | |
90 days past due and still accruing | 0 | [3],[5] | 0 | [4],[8] | |
Land Construction [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
30-59 Days Past Due | 0 | [5] | 0 | [8] | |
60-89 Days, Past Due | 383 | [5] | 210 | [8] | |
90 days or more, Past Due | 14,291 | [1],[5] | 15,264 | [2],[8] | |
Total Past Due | 14,674 | [5] | 15,474 | [8] | |
Financing Receivable, Current | 39,516 | [5] | 40,447 | [8] | |
Loans held for investment | 54,190 | [5] | 55,921 | [8] | |
90 days past due and still accruing | $200 | [3],[5] | $234 | [4],[8] | |
[1] | Includes non-performing loans and accruing loans which are contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges fees until charged-off at 180 days. | ||||
[2] | Includes non-performing loans and accruing loans which 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] | 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 $30.1 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 18 months delinquent, and are no longer accruing interest as of March 31, 2015. | ||||
[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 $40.4 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 18 months delinquent, and are no longer accruing interest as of December 31, 2014. | ||||
[5] | 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 March 31, 2015 amounted to $12.2 million, $177.4 million, $38.4 million, $6.1 million, and $1.6 million, respectively. | ||||
[6] | As of March 31, 2015, includes $26.2 million of defaulted loans collateralizing Government National Mortgage Association ("GNMA") securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans. | ||||
[7] | 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. | ||||
[8] | 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. |
LOAN_PORTFOLIO_Corporations_Ag1
LOAN PORTFOLIO - Corporation's Aging of Loans Held for Investment Portfolio (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
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 | $26.20 | $9.30 |
Minimum Number of Payments in Arrears to Consider Commercial Mortgage and Construction Loan as Past Due | 2 | |
Residential mortgage loans insured by FHA or guaranteed by the VA | 30.1 | 40.4 |
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 | 12.2 | 14 |
Residential Mortgage [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | 177.4 | 189.1 |
Commercial Mortgage Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | 38.4 | 20.8 |
Residential Construction [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | 1.6 | 1 |
Land Construction [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | $6.10 | $0.80 |
LOAN_PORTFOLIO_Corporations_Cr
LOAN PORTFOLIO - Corporation's Credit Quality Indicators by Loan (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Commercial mortgage loans | $1,649,263 | $1,665,787 | ||
Construction loans | 124,440 | 123,480 | ||
Commercial and Industrial loans | 2,442,867 | 2,479,437 | ||
Land | 54,190 | 55,921 | ||
Residential Construction [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Construction loans | 42,794 | 42,997 | ||
Commercial Construction [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Construction loans | 27,456 | 24,562 | ||
Substandard [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Commercial mortgage loans | 227,195 | 273,027 | ||
Commercial and Industrial loans | 229,112 | 234,926 | ||
Land | 15,930 | 16,915 | ||
Substandard [Member] | Residential Construction [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Construction loans | 12,265 | 13,548 | ||
Substandard [Member] | Commercial Construction [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Construction loans | 11,790 | 11,790 | ||
Doubtful [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Commercial mortgage loans | 0 | 897 | ||
Commercial and Industrial loans | 6,293 | 4,884 | ||
Land | 0 | 0 | ||
Doubtful [Member] | Residential Construction [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Construction loans | 808 | 776 | ||
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 | 0 | ||
Commercial and Industrial loans | 789 | 801 | ||
Land | 0 | 0 | ||
Unlikely To Be Collected Financing Receivable [Member] | Residential Construction [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Construction loans | 0 | 0 | ||
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 | 227,195 | [1] | 273,924 | [1] |
Commercial and Industrial loans | 236,194 | [1] | 240,611 | [1] |
Land | 15,930 | [1] | 16,915 | [1] |
Total Adversely Classified [Member] | Residential Construction [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Construction loans | 13,073 | [1] | 14,324 | [1] |
Total Adversely Classified [Member] | Commercial Construction [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Construction loans | $11,790 | [1] | $11,790 | [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) as of March 31, 2015 and December 31, 2014, of non-performing loans held for sale. |
LOAN_PORTFOLIO_Credit_Risk_Pay
LOAN PORTFOLIO - Credit Risk Payment Activity (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||
In Thousands, unless otherwise specified | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | $9,485,372 | $9,262,436 | $9,566,785 | ||
Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 1,028,370 | 1,060,782 | |||
Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 230,183 | 232,126 | |||
Residential Real Estate [Member] | Fhava Guaranteed Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 155,662 | [1] | 153,570 | [2] | |
Residential Real Estate [Member] | Other Residential Mortgage Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 3,175,958 | 2,857,617 | |||
Residential Real Estate [Member] | Performing Financing Receivable [Member] | Fhava Guaranteed Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 155,662 | [1] | 153,570 | [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 Amount | 2,825,774 | 2,578,416 | |||
Residential Real Estate [Member] | Purchased Credit Impaired [Member] | Fhava Guaranteed Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 0 | [1],[3] | 0 | [2],[3] | |
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 Amount | 177,601 | [3] | 98,494 | [3] | |
Residential Real Estate [Member] | Nonperforming Financing Receivable [Member] | Fhava Guaranteed Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 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 Amount | 172,583 | 180,707 | |||
Consumer [Member] | Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 1,028,370 | 1,060,782 | |||
Consumer [Member] | Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 230,183 | 232,126 | |||
Consumer [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 678,629 | 689,637 | |||
Consumer [Member] | Performing Financing Receivable [Member] | Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 1,009,327 | 1,038,506 | |||
Consumer [Member] | Performing Financing Receivable [Member] | Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 227,204 | 226,881 | |||
Consumer [Member] | Performing Financing Receivable [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 665,504 | 673,626 | |||
Consumer [Member] | Purchased Credit Impaired [Member] | Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 0 | [3] | 0 | [3] | |
Consumer [Member] | Purchased Credit Impaired [Member] | Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 0 | [3] | 0 | [3] | |
Consumer [Member] | Purchased Credit Impaired [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 234 | [3] | 717 | [3] | |
Consumer [Member] | Nonperforming Financing Receivable [Member] | Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 19,043 | 22,276 | |||
Consumer [Member] | Nonperforming Financing Receivable [Member] | Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 2,979 | 5,245 | |||
Consumer [Member] | Nonperforming Financing Receivable [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | $12,891 | $15,294 | |||
[1] | 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 $30.1 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 18 months delinquent, and are no longer accruing interest as of March 31, 2015. | ||||
[2] | 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, which are over 18 months delinquent, and are no longer accruing interest as of December 31, 2014. | ||||
[3] | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loan 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 $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |
Financing Receivable Recorded Investment [Line Items] | |||
Residential mortgage loans insured by FHA or guaranteed by the VA | $30,100,000 | $40,400,000 | |
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 held for sale | 81,723,000 | 76,956,000 | |
Non Accrual [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Loans held for sale | 54,600,000 | 54,600,000 | |
Non Accrual [Member] | Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Loans held for sale | 39,100,000 | 39,100,000 | |
Non Accrual [Member] | Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Loans held for sale | 900,000 | 900,000 | |
Non Accrual [Member] | Land Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Loans held for sale | 7,800,000 | 7,800,000 | |
Non Accrual [Member] | Commercial mortgage [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Loans held for sale | $6,800,000 | $6,800,000 |
LOAN_PORTFOLIO_Impaired_loans_
LOAN PORTFOLIO - Impaired loans (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | $207,240 | $238,812 | ||
Unpaid Principal Balance with no Related Allowance | 245,462 | 281,868 | ||
Average Recorded Investment No Related Allowance | 210,284 | 246,473 | ||
Interest Income with no Related Allowance Accrual Basis | 684 | |||
Interest Income with No Related Allowance Cash Basis | 730 | |||
Recorded Investment with Related Allowance | 747,741 | 706,595 | ||
Unpaid Principal Balance with Related Allowance | 854,272 | 803,716 | ||
Related Allowance | 62,140 | 85,016 | 55,205 | 102,601 |
Average Recorded Investment With Related Allowance | 753,876 | 724,143 | ||
Interest Income with Related Allowance Accrual Basis | 7,553 | |||
Interest Income with Realted Allowance Cash Basis | 748 | |||
Recorded Investment | 954,981 | 879,388 | 945,407 | 919,112 |
Unpaid Principal Balance | 1,099,734 | 1,085,584 | ||
Average Recorded Investments | 964,160 | 970,616 | ||
Interest Income on Impaired Loans Accrual Basis | 8,237 | 5,900 | ||
Interest Income on Impaired Loans Cash Basis | 1,478 | 1,700 | ||
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 | |||
Interest Income with No Related Allowance Cash Basis | 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 | |||
Interest Income with Realted Allowance Cash Basis | 0 | |||
Recorded Investment | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | ||
Average Recorded Investments | 0 | 0 | ||
Interest Income on Impaired Loans Accrual Basis | 0 | |||
Interest Income on Impaired Loans Cash Basis | 0 | |||
Other Residential Mortgage Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 62,337 | 74,177 | ||
Unpaid Principal Balance with no Related Allowance | 68,263 | 80,522 | ||
Average Recorded Investment No Related Allowance | 63,040 | 75,711 | ||
Interest Income with no Related Allowance Accrual Basis | 199 | |||
Interest Income with No Related Allowance Cash Basis | 79 | |||
Recorded Investment with Related Allowance | 367,189 | 350,067 | ||
Unpaid Principal Balance with Related Allowance | 416,579 | 396,203 | ||
Related Allowance | 14,862 | 10,854 | ||
Average Recorded Investment With Related Allowance | 368,999 | 357,129 | ||
Interest Income with Related Allowance Accrual Basis | 4,224 | |||
Interest Income with Realted Allowance Cash Basis | 414 | |||
Recorded Investment | 429,526 | 424,244 | ||
Unpaid Principal Balance | 484,842 | 476,725 | ||
Average Recorded Investments | 432,039 | 432,840 | ||
Interest Income on Impaired Loans Accrual Basis | 4,423 | |||
Interest Income on Impaired Loans Cash Basis | 493 | |||
Commercial Mortgage Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 100,797 | 109,271 | ||
Unpaid Principal Balance with no Related Allowance | 120,956 | 132,170 | ||
Average Recorded Investment No Related Allowance | 101,196 | 113,674 | ||
Interest Income with no Related Allowance Accrual Basis | 406 | |||
Interest Income with No Related Allowance Cash Basis | 425 | |||
Recorded Investment with Related Allowance | 123,568 | 101,467 | ||
Unpaid Principal Balance with Related Allowance | 143,090 | 116,329 | ||
Related Allowance | 13,238 | 14,289 | ||
Average Recorded Investment With Related Allowance | 124,701 | 104,191 | ||
Interest Income with Related Allowance Accrual Basis | 475 | |||
Interest Income with Realted Allowance Cash Basis | 279 | |||
Recorded Investment | 224,365 | 210,738 | ||
Unpaid Principal Balance | 264,046 | 248,499 | ||
Average Recorded Investments | 225,897 | 217,865 | ||
Interest Income on Impaired Loans Accrual Basis | 881 | |||
Interest Income on Impaired Loans Cash Basis | 704 | |||
Commercial And Industrial Loan [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 32,080 | 41,131 | ||
Unpaid Principal Balance with no Related Allowance | 36,975 | 47,647 | ||
Average Recorded Investment No Related Allowance | 33,802 | 42,011 | ||
Interest Income with no Related Allowance Accrual Basis | 18 | |||
Interest Income with No Related Allowance Cash Basis | 200 | |||
Recorded Investment with Related Allowance | 194,576 | 195,240 | ||
Unpaid Principal Balance with Related Allowance | 227,417 | 226,431 | ||
Related Allowance | 24,871 | 21,314 | ||
Average Recorded Investment With Related Allowance | 196,896 | 198,930 | ||
Interest Income with Related Allowance Accrual Basis | 1,950 | |||
Interest Income with Realted Allowance Cash Basis | 43 | |||
Recorded Investment | 226,656 | 236,371 | ||
Unpaid Principal Balance | 264,392 | 274,078 | ||
Average Recorded Investments | 230,698 | 240,941 | ||
Interest Income on Impaired Loans Accrual Basis | 1,968 | |||
Interest Income on Impaired Loans Cash Basis | 243 | |||
Construction Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Related Allowance | 3,381 | 15,154 | ||
Recorded Investment | 37,593 | 58,636 | ||
Consumer Auto Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 562 | 0 | ||
Unpaid Principal Balance with no Related Allowance | 562 | 0 | ||
Average Recorded Investment No Related Allowance | 562 | 0 | ||
Interest Income with no Related Allowance Accrual Basis | 10 | |||
Interest Income with No Related Allowance Cash Basis | 0 | |||
Recorded Investment with Related Allowance | 16,986 | 16,991 | ||
Unpaid Principal Balance with Related Allowance | 16,986 | 16,991 | ||
Related Allowance | 3,058 | 2,787 | ||
Average Recorded Investment With Related Allowance | 17,472 | 18,504 | ||
Interest Income with Related Allowance Accrual Basis | 328 | |||
Interest Income with Realted Allowance Cash Basis | 0 | |||
Recorded Investment | 17,548 | 16,991 | ||
Unpaid Principal Balance | 17,548 | 16,991 | ||
Average Recorded Investments | 18,034 | 18,504 | ||
Interest Income on Impaired Loans Accrual Basis | 338 | |||
Interest Income on Impaired Loans Cash Basis | 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 | |||
Interest Income with No Related Allowance Cash Basis | 0 | |||
Recorded Investment with Related Allowance | 2,053 | 2,181 | ||
Unpaid Principal Balance with Related Allowance | 2,053 | 2,181 | ||
Related Allowance | 186 | 253 | ||
Average Recorded Investment With Related Allowance | 2,137 | 2,367 | ||
Interest Income with Related Allowance Accrual Basis | 48 | |||
Interest Income with Realted Allowance Cash Basis | 0 | |||
Recorded Investment | 2,053 | 2,181 | ||
Unpaid Principal Balance | 2,053 | 2,181 | ||
Average Recorded Investments | 2,137 | 2,367 | ||
Interest Income on Impaired Loans Accrual Basis | 48 | |||
Interest Income on Impaired Loans Cash Basis | 0 | |||
Other Consumer Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 3,229 | 3,778 | ||
Unpaid Principal Balance with no Related Allowance | 4,634 | 5,072 | ||
Average Recorded Investment No Related Allowance | 3,268 | 3,924 | ||
Interest Income with no Related Allowance Accrual Basis | 10 | |||
Interest Income with No Related Allowance Cash Basis | 26 | |||
Recorded Investment with Related Allowance | 14,011 | 11,637 | ||
Unpaid Principal Balance with Related Allowance | 14,259 | 12,136 | ||
Related Allowance | 2,544 | 3,131 | ||
Average Recorded Investment With Related Allowance | 14,266 | 12,291 | ||
Interest Income with Related Allowance Accrual Basis | 382 | |||
Interest Income with Realted Allowance Cash Basis | 3 | |||
Recorded Investment | 17,240 | 15,415 | ||
Unpaid Principal Balance | 18,893 | 17,208 | ||
Average Recorded Investments | 17,534 | 16,215 | ||
Interest Income on Impaired Loans Accrual Basis | 392 | |||
Interest Income on Impaired Loans Cash Basis | 29 | |||
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 | |||
Interest Income with No Related Allowance Cash Basis | 0 | |||
Recorded Investment with Related Allowance | 11,790 | 11,790 | ||
Unpaid Principal Balance with Related Allowance | 11,790 | 11,790 | ||
Related Allowance | 1,145 | 790 | ||
Average Recorded Investment With Related Allowance | 11,790 | 11,867 | ||
Interest Income with Related Allowance Accrual Basis | 128 | |||
Interest Income with Realted Allowance Cash Basis | 0 | |||
Recorded Investment | 11,790 | 11,790 | ||
Unpaid Principal Balance | 11,790 | 11,790 | ||
Average Recorded Investments | 11,790 | 11,867 | ||
Interest Income on Impaired Loans Accrual Basis | 128 | |||
Interest Income on Impaired Loans Cash Basis | 0 | |||
Residential Construction [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 6,762 | 7,461 | ||
Unpaid Principal Balance with no Related Allowance | 9,346 | 10,100 | ||
Average Recorded Investment No Related Allowance | 6,943 | 8,123 | ||
Interest Income with no Related Allowance Accrual Basis | 41 | |||
Interest Income with No Related Allowance Cash Basis | 0 | |||
Recorded Investment with Related Allowance | 8,213 | 8,102 | ||
Unpaid Principal Balance with Related Allowance | 8,917 | 8,834 | ||
Related Allowance | 1,016 | 993 | ||
Average Recorded Investment With Related Allowance | 8,202 | 8,130 | ||
Interest Income with Related Allowance Accrual Basis | 3 | |||
Interest Income with Realted Allowance Cash Basis | 0 | |||
Recorded Investment | 14,975 | 15,563 | ||
Unpaid Principal Balance | 18,263 | 18,934 | ||
Average Recorded Investments | 15,145 | 16,253 | ||
Interest Income on Impaired Loans Accrual Basis | 44 | |||
Interest Income on Impaired Loans Cash Basis | 0 | |||
Land Construction [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 1,473 | 2,994 | ||
Unpaid Principal Balance with no Related Allowance | 4,726 | 6,357 | ||
Average Recorded Investment No Related Allowance | 1,473 | 3,030 | ||
Interest Income with no Related Allowance Accrual Basis | 0 | |||
Interest Income with No Related Allowance Cash Basis | 0 | |||
Recorded Investment with Related Allowance | 9,355 | 9,120 | ||
Unpaid Principal Balance with Related Allowance | 13,181 | 12,821 | ||
Related Allowance | 1,220 | 794 | ||
Average Recorded Investment With Related Allowance | 9,413 | 10,734 | ||
Interest Income with Related Allowance Accrual Basis | 15 | |||
Interest Income with Realted Allowance Cash Basis | 9 | |||
Recorded Investment | 10,828 | 12,114 | ||
Unpaid Principal Balance | 17,907 | 19,178 | ||
Average Recorded Investments | 10,886 | 13,764 | ||
Interest Income on Impaired Loans Accrual Basis | 15 | |||
Interest Income on Impaired Loans Cash Basis | $9 |
LOAN_PORTFOLIO_Additional_Info
LOAN PORTFOLIO - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | ||||
Feb. 27, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Interest Income Impaired Loans | $7,600,000 | |||||
Interest Income on Impaired Loans Accrual Basis | 8,237,000 | 5,900,000 | ||||
Contractually outstanding principal and interest at acquisition | 226,700,000 | 135,500,000 | ||||
Securitization of mortgage loans into mortgage backed securities | 46,900,000 | |||||
Total gross loans held for investment portfolio | 9,485,372,000 | 9,566,785,000 | 9,262,436,000 | |||
Outstanding of credit facilities granted | 308,000,000 | |||||
Loans to local financial institutions collateralized by real estate mortgages | 0 | 0 | ||||
Total TDR loans | 705,123,000 | [1] | 622,320,000 | 694,453,000 | [2] | |
Outstanding unfunded commitments on TDR loans | 47,000 | |||||
Provsion of PCI Loans | 0 | |||||
Loans held for sale | 81,723,000 | 76,956,000 | ||||
Non Sop Unpaid Principal Balance | 227,900,000 | |||||
Proceeds From Sale Of Loans Held For Investment | 2,230,000 | 16,558,000 | ||||
Discount On Loans Acquired Percentage | 9.00% | |||||
Discount On Loans Acquired Amount | 29,000,000 | |||||
Puerto Rico Government and Political Subdivisions [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Outstanding of credit facilities granted | 201,300,000 | |||||
Public Corporations [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Outstanding of credit facilities granted | 95,900,000 | |||||
Government [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Outstanding of credit facilities granted | 24,500,000 | |||||
Puerto Rico Tourism Development Fund [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Outstanding of credit facilities granted | 132,500,000 | 133,300,000 | ||||
Puerto Rico Electric PowerAuthority [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Outstanding of credit facilities granted | 75,000,000 | |||||
GNMA | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans repurchased | 3,000,000 | |||||
FNMA and FHLMC | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans repurchased | 200,000 | |||||
Government Guaranteed Loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Financing Receivable Significant Sales | 38,400,000 | |||||
Total TDR loans | 65,700,000 | |||||
Loans in trial [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 11,500,000 | |||||
Non Accrual [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 270,924,000 | [3],[4] | 199,813,000 | [5],[6] | ||
Troubled Debt Restructurings [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for sale | 45,700,000 | |||||
Loans Split [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 42,907,000 | 78,833,000 | ||||
Non Fha Va Residential Mortgage Loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Financing Receivable Significant Purchases | 23,800,000 | |||||
Total TDR loans | 354,094,000 | 349,775,000 | ||||
Commercial And Industrial Loan [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 166,736,000 | 171,926,000 | ||||
Payments To Acquire Loans Held For Investment | 21,100,000 | |||||
Commercial Mortgage Loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 136,780,000 | 127,766,000 | ||||
Commercial Construction [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 0 | 0 | ||||
Residential Construction [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 10,060,000 | 10,037,000 | ||||
Land Construction [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 2,477,000 | 2,470,000 | ||||
Residential Mortgage [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans held for investment portfolio | 3,331,620,000 | 2,548,101,000 | ||||
Troubled Debt Restructurings [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for sale | 45,700,000 | |||||
Loans Split [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Financing receivable loans restructured recorded investment accruals | 41,200,000 | |||||
Non Fha Va Residential Mortgage Loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 354,094,000 | 349,775,000 | ||||
Non Fha Va Residential Mortgage Loans [Member] | Non Accrual [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 80,204,000 | [3],[4] | 82,965,000 | [5],[6] | ||
Commercial And Industrial Loan [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Interest Income on Impaired Loans Accrual Basis | 1,968,000 | |||||
Total TDR loans | 166,736,000 | 171,926,000 | ||||
Classified and non-performing loans sold | 3,500,000 | |||||
Commercial And Industrial Loan [Member] | Non Accrual [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 111,342,000 | [3],[4] | 40,382,000 | [5],[6] | ||
Commercial Mortgage Loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Interest Income on Impaired Loans Accrual Basis | 881,000 | |||||
Total TDR loans | 136,780,000 | 127,766,000 | ||||
Commercial Mortgage Loans [Member] | Non Accrual [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 61,239,000 | [3],[4] | 58,392,000 | [5],[6] | ||
Construction Loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans held for investment portfolio | 124,440,000 | 152,579,000 | ||||
Total TDR loans | 12,500,000 | |||||
Consumer Loan [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans held for investment portfolio | 1,937,182,000 | 2,072,252,000 | ||||
Total TDR loans | 35,000,000 | |||||
Commercial Construction [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Interest Income on Impaired Loans Accrual Basis | 128,000 | |||||
Total TDR loans | 0 | 0 | ||||
Commercial Construction [Member] | Non Accrual [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 0 | [3],[4] | 0 | [5],[6] | ||
Residential Construction [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Interest Income on Impaired Loans Accrual Basis | 44,000 | |||||
Total TDR loans | 10,060,000 | 10,037,000 | ||||
Residential Construction [Member] | Non Accrual [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 6,588,000 | [3],[4] | 6,589,000 | [5],[6] | ||
Land Construction [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Interest Income on Impaired Loans Accrual Basis | 15,000 | |||||
Total TDR loans | 2,477,000 | 2,470,000 | ||||
Land Construction [Member] | Non Accrual [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total TDR loans | 1,698,000 | [3],[4] | 1,636,000 | [5],[6] | ||
In Process Of Foreclosure [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Recorded Investment Amount In Consumer Mortgage Loans Collateralized By Residential Real Estate Property | 161,100,000 | |||||
P R | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Credit risk concentration | 83.00% | |||||
Outstanding of credit facilities granted | 321,700,000 | |||||
Line of credit facility provided to fund unfunded commitments | 335,700,000 | |||||
V I | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Credit risk concentration | 6.00% | |||||
Outstanding of credit facilities granted | 61,000,000 | 57,700,000 | ||||
U S | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Credit risk concentration | 11.00% | |||||
Credit Impaired Loans [Member] | Residential Mortgage [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Financing Receivable Recorded Investment 30 To 59 Days Past Due Mortgage | 32,000,000 | |||||
Credit Impaired Loans [Member] | Residential Mortgage [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Financing Receivable Recorded Investment 30 To 59 Days Past Due Mortgage | 16,600,000 | |||||
Credit Impaired Loans [Member] | Commercial Mortgage Loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Financing Receivable Recorded Investment 30 To 59 Days Past Due Mortgage | $300,000 | $8,800,000 | ||||
[1] | Excludes TDRs held for sale amounting to $45.7 million as of March 31, 2015. | |||||
[2] | Excludes TDRs held for sale amounting to $45.7 million as of December 31, 2014. | |||||
[3] | Included in non-accrual loans are $121.9 million in loans that are performing under the terms of a restructuring agreement but are reported in non-accrual 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. | |||||
[4] | Excludes non-accrual TDRs held for sale with a carrying value of $45.7 million as of March 31, 2015. | |||||
[5] | Included in non-accrual loans are $52.8 million in loans that are performing under the terms of a restructuring agreement but are reported in non-accrual 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. | |||||
[6] | Excludes non-accrual TDRs held for sale with a carrying value of $45.7 million as of December 31, 2014. |
LOAN_PORTFOLIO_Activity_for_Im
LOAN PORTFOLIO - Activity for Impaired Loans (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Impaired Loans: | ||
Balance at beginning of period | $945,407 | $919,112 |
Loans determined impaired during the period | 62,933 | 54,277 |
Charge-offs | -11,715 | -32,039 |
Loans sold, net charge-offs | -1,137 | 0 |
Increases to impaired loans (disbursements) | 519 | 625 |
Foreclosures | -9,952 | -4,006 |
Loans no longer considered impaired | -9,898 | -3,728 |
Paid in full or partial payments | -21,176 | -54,853 |
Balance at end of period | $954,981 | $879,388 |
LOAN_PORTFOLIO_Activity_for_Sp
LOAN PORTFOLIO - Activity for Specific Reserve (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Specific Reserve: | ||
Balance at beginning of period | $55,205 | $102,601 |
Provision for loan losses | 18,650 | 14,454 |
Charge-offs | -11,715 | -32,039 |
Balance at end of period | $62,140 | $85,016 |
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 $) | Mar. 31, 2015 | Feb. 27, 2015 | |
In Thousands, unless otherwise specified | |||
Financing Receivable Impaired [Line Items] | |||
Contractually outstanding principal and interest at acquisition | $166,947 | ||
Less: Nonaccretable difference | 48,739 | ||
Cash flows expected to be collected at acquisition | 118,208 | ||
Less: Accretable yield | 38,319 | ||
Fair value of loans acquired | $79,889 | [1] | |
[1] | Amounts are preliminary estimates based on the best information available at the acquisition date and adjustments in future quarters may occur up to one year from the date of acquisition. |
LOAN_PORTFOLIO_Carrying_Value_
LOAN PORTFOLIO- Carrying Value of Purchased Credit Impaired Loans (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable Impaired [Line Items] | ||||
Purchased Credit Impaired Loans | $181,114 | $102,604 | ||
Residential Mortgage Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Purchased Credit Impaired Loans | 177,601 | [1] | 98,494 | [2] |
Commercial Mortgage Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Purchased Credit Impaired Loans | 3,279 | [1] | 3,393 | [2] |
Consumer Credit Card Financing Receivable [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Purchased Credit Impaired Loans | $234 | $717 | ||
[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, 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 March 31, 2015 amounted to $12.2 million, $177.4 million, $38.4 million, $6.1 million, and $1.6 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 (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. |
LOAN_PORTFOLIO_Corporations_Ag2
LOAN PORTFOLIO- Corporation's Aging of Purchased Credit Impaired Loans (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||
In Thousands, unless otherwise specified | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
30-59 Days Past Due | $120,984 | $118,154 | |||
60-89 Days, Past Due | 128,454 | 139,659 | |||
90 days or more, Past Due | 725,665 | [1] | 671,122 | [2] | |
Total Past Due | 975,103 | 928,935 | |||
Financing Receivable, Current | 8,329,155 | 8,230,897 | |||
Loans held for investment | 9,485,372 | 9,262,436 | 9,566,785 | ||
90 days past due and still accruing | 162,121 | [3] | 147,226 | [4] | |
Purchased Credit Impaired Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
30-59 Days Past Due | 22 | 47 | |||
60-89 Days, Past Due | 13,702 | 12,952 | |||
90 days or more, Past Due | 16,450 | 15,661 | |||
Total Past Due | 30,174 | 28,660 | |||
Financing Receivable, Current | 150,940 | 73,944 | |||
Loans held for investment | 181,114 | 102,604 | |||
Residential Mortgage [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
30-59 Days Past Due | 0 | [5] | 0 | [6] | |
60-89 Days, Past Due | 88,209 | [5] | 78,336 | [6] | |
90 days or more, Past Due | 191,014 | [1],[5] | 199,078 | [2],[6] | |
Total Past Due | 279,223 | [5] | 277,414 | [6] | |
Financing Receivable, Current | 2,719,134 | [5] | 2,481,709 | [6] | |
Loans held for investment | 3,175,958 | [5] | 2,857,617 | [6] | |
90 days past due and still accruing | 18,431 | [3],[5] | 18,371 | [4],[6] | |
Residential Mortgage [Member] | Purchased Credit Impaired Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
30-59 Days Past Due | 0 | [7] | 0 | [8] | |
60-89 Days, Past Due | 13,572 | [7] | 12,571 | [8] | |
90 days or more, Past Due | 15,775 | [7] | 15,176 | [8] | |
Total Past Due | 29,347 | [7] | 27,747 | [8] | |
Financing Receivable, Current | 148,254 | [7] | 70,747 | [8] | |
Loans held for investment | 177,601 | [7] | 98,494 | [8] | |
Commercial Mortgage Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
30-59 Days Past Due | 0 | [5] | 0 | [6] | |
60-89 Days, Past Due | 1,564 | [5] | 15,482 | [6] | |
90 days or more, Past Due | 165,778 | [1],[5] | 171,281 | [2],[6] | |
Total Past Due | 167,342 | [5] | 186,763 | [6] | |
Financing Receivable, Current | 1,478,642 | [5] | 1,475,631 | [6] | |
Loans held for investment | 1,649,263 | [5] | 1,665,787 | [6] | |
90 days past due and still accruing | 23,393 | [3],[5] | 22,808 | [4],[6] | |
Commercial Mortgage Loans [Member] | Purchased Credit Impaired Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
30-59 Days Past Due | 0 | [7] | 0 | [8] | |
60-89 Days, Past Due | 130 | [7] | 356 | [8] | |
90 days or more, Past Due | 653 | [7] | 443 | [8] | |
Total Past Due | 783 | [7] | 799 | [8] | |
Financing Receivable, Current | 2,496 | [7] | 2,594 | [8] | |
Loans held for investment | 3,279 | [7] | 3,393 | [8] | |
Consumer Credit Card Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
30-59 Days Past Due | 22 | 47 | |||
60-89 Days, Past Due | 0 | 25 | |||
90 days or more, Past Due | 22 | 42 | |||
Total Past Due | 44 | 114 | |||
Financing Receivable, Current | 190 | 603 | |||
Loans held for investment | $234 | $717 | |||
[1] | Includes non-performing loans and accruing loans which are contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges fees until charged-off at 180 days. | ||||
[2] | Includes non-performing loans and accruing loans which 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] | 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 $30.1 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 18 months delinquent, and are no longer accruing interest as of March 31, 2015. | ||||
[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 $40.4 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 18 months delinquent, and are no longer accruing interest as of December 31, 2014. | ||||
[5] | 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 March 31, 2015 amounted to $12.2 million, $177.4 million, $38.4 million, $6.1 million, and $1.6 million, respectively. | ||||
[6] | 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. | ||||
[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 (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 March 31, 2015 amounted to $32.0 million and $0.3 million, respectively. | ||||
[8] | 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. |
LOAN_PORTFOLIO_Accretable_Yiel
LOAN PORTFOLIO - Accretable Yield Related to Purchased Credit Impaired Loans (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accretable Yield [Line Items] | ||
Accretable yield at acquisition | $82,460 | $0 |
Additions | 38,319 | 0 |
Reclassification to nonaccretable | 0 | 0 |
Accretion recognized in earnings | -2,277 | 0 |
Accretable yield at the end of the period | $118,502 | $0 |
LOAN_PORTFOLIO_Changes_in_Carr
LOAN PORTFOLIO -Changes in Carrying Amount Of Purchased Credit Impaired Loans (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Financing Receivable Impaired [Line Items] | ||
Beggining balance: purchased credit-impaired loans | $102,604 | |
Purchased Credit Impaired Loans Aquired | 79,889 | |
Accretion | 2,277 | 0 |
Sop Collections | 3,656 | |
Ending balance: purchased credit-impaired loans | $181,114 |
LOAN_PORTFOLIO_Selected_Inform
LOAN PORTFOLIO - Selected Information on TDRs Includes Recorded Investment by Loan Class and Modification Type (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||
In Thousands, unless otherwise specified | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $705,123 | [1] | $694,453 | [2] | $622,320 |
Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 63,613 | [1] | 68,455 | [2] | |
Maturity of Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 97,567 | [1] | 100,662 | [2] | |
Combination of reduction in interest rate and extension of maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 416,663 | [1] | 415,187 | [2] | |
Forgiveness of principal and/or interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 3,436 | [1] | 3,517 | [2] | |
Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 123,844 | [1],[3] | 106,632 | [2],[4] | |
Non Fha Va Residential Mortgage Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 354,094 | 349,775 | |||
Non Fha Va Residential Mortgage Loans [Member] | Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 26,039 | 24,850 | |||
Non Fha Va Residential Mortgage Loans [Member] | Maturity of Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 5,206 | 5,859 | |||
Non Fha Va Residential Mortgage Loans [Member] | Combination of reduction in interest rate and extension of maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 281,824 | 283,317 | |||
Non Fha Va Residential Mortgage Loans [Member] | Forgiveness of principal and/or interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Non Fha Va Residential Mortgage Loans [Member] | Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 41,025 | [3] | 35,749 | [4] | |
Commercial Mortgage Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 136,780 | 127,766 | |||
Commercial Mortgage Loans [Member] | Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 26,952 | 29,881 | |||
Commercial Mortgage Loans [Member] | Maturity of Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 12,685 | 12,737 | |||
Commercial Mortgage Loans [Member] | Combination of reduction in interest rate and extension of maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 73,956 | 72,493 | |||
Commercial Mortgage Loans [Member] | Forgiveness of principal and/or interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Commercial Mortgage Loans [Member] | Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 23,187 | [3] | 12,655 | [4] | |
Commercial And Industrial Loan [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 166,736 | 171,926 | |||
Commercial And Industrial Loan [Member] | Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 4,431 | 7,533 | |||
Commercial And Industrial Loan [Member] | Maturity of Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 78,171 | 80,642 | |||
Commercial And Industrial Loan [Member] | Combination of reduction in interest rate and extension of maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 30,830 | 31,553 | |||
Commercial And Industrial Loan [Member] | Forgiveness of principal and/or interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 3,057 | 3,074 | |||
Commercial And Industrial Loan [Member] | Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 50,247 | [3] | 49,124 | [4] | |
Consumer Auto Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 17,547 | 16,991 | |||
Consumer Auto Loans [Member] | Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Consumer Auto Loans [Member] | Maturity of Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 324 | 380 | |||
Consumer Auto Loans [Member] | Combination of reduction in interest rate and extension of maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 10,736 | 10,363 | |||
Consumer Auto Loans [Member] | Forgiveness of principal and/or interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Consumer Auto Loans [Member] | Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 6,487 | [3] | 6,248 | [4] | |
Finance Leases [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 2,053 | 2,181 | |||
Finance Leases [Member] | Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Finance Leases [Member] | Maturity of Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 285 | 376 | |||
Finance Leases [Member] | Combination of reduction in interest rate and extension of maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 1,768 | 1,805 | |||
Finance Leases [Member] | Forgiveness of principal and/or interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Finance Leases [Member] | 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 | 15,376 | 13,307 | |||
Other Consumer Loans [Member] | Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 37 | 37 | |||
Other Consumer Loans [Member] | Maturity of Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 317 | 129 | |||
Other Consumer Loans [Member] | Combination of reduction in interest rate and extension of maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 12,774 | 10,812 | |||
Other Consumer Loans [Member] | Forgiveness of principal and/or interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 379 | 443 | |||
Other Consumer Loans [Member] | Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 1,869 | [3] | 1,886 | [4] | |
Commercial Construction [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Commercial Construction [Member] | Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Commercial Construction [Member] | Maturity of Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Commercial Construction [Member] | Combination of reduction in interest rate and extension of maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Commercial Construction [Member] | Forgiveness of principal and/or interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Commercial Construction [Member] | Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | [3] | 0 | [4] | |
Residential Construction [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 10,060 | 10,037 | |||
Residential Construction [Member] | Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 6,154 | 6,154 | |||
Residential Construction [Member] | Maturity of Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 378 | 337 | |||
Residential Construction [Member] | Combination of reduction in interest rate and extension of maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 3,095 | 3,112 | |||
Residential Construction [Member] | Forgiveness of principal and/or interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Residential Construction [Member] | Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 433 | [3] | 434 | [4] | |
Land Construction [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 2,477 | 2,470 | |||
Land Construction [Member] | Interest Rate Below Market [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Land Construction [Member] | Maturity of Term Extension [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 201 | 202 | |||
Land Construction [Member] | Combination of reduction in interest rate and extension of maturity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 1,680 | 1,732 | |||
Land Construction [Member] | Forgiveness of principal and/or interest [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Land Construction [Member] | Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $596 | [3] | $536 | [4] | |
[1] | Excludes TDRs held for sale amounting to $45.7 million as of March 31, 2015. | ||||
[2] | Excludes TDRs held for sale amounting to $45.7 million as of December 31, 2014. | ||||
[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. |
LOAN_PORTFOLIO_Corporations_TD
LOAN PORTFOLIO - Corporation's TDR Activity (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Schedule Of Financing Receivables [Line Items] | |||
Beginning Balance of TDRs | $694,453 | [1] | |
New TDRs | 31,601 | 19,935 | |
Increases to existing TDRs (disbursements) | 335 | 27 | |
Charge-offs post modification | -3,781 | -7,982 | |
Foreclosures | -7,156 | -1,074 | |
Paid-off and partial payments | -10,329 | -18,844 | |
Ending balance of TDRs | $705,123 | [2] | $622,320 |
[1] | Excludes TDRs held for sale amounting to $45.7 million as of December 31, 2014. | ||
[2] | Excludes TDRs held for sale amounting to $45.7 million as of March 31, 2015. |
LOAN_PORTFOLIO_Breakdown_Betwe
LOAN PORTFOLIO - Breakdown Between Accrual and Nonaccrual Status of TDRs (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||
In Thousands, unless otherwise specified | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $705,123 | [1] | $694,453 | [2] | $622,320 |
Non Fha Va Residential Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 354,094 | 349,775 | |||
Commercial Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 136,780 | 127,766 | |||
Commercial And Industrial Loan [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 166,736 | 171,926 | |||
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 | 17,547 | ||||
Finance Leases [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 2,053 | 2,181 | |||
Other Consumer Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 15,376 | 13,307 | |||
Commercial Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Residential Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 10,060 | 10,037 | |||
Land Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 2,477 | 2,470 | |||
Non Accrual [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 270,924 | [3],[4] | 199,813 | [5],[6] | |
Non Accrual [Member] | Non Fha Va Residential Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 80,204 | [3],[4] | 82,965 | [5],[6] | |
Non Accrual [Member] | Commercial Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 61,239 | [3],[4] | 58,392 | [5],[6] | |
Non Accrual [Member] | Commercial And Industrial Loan [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 111,342 | [3],[4] | 40,382 | [5],[6] | |
Non Accrual [Member] | Consumer Auto Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 6,536 | [3],[4] | 6,433 | [5],[6] | |
Non Accrual [Member] | Finance Leases [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 178 | [3],[4] | 255 | [5],[6] | |
Non Accrual [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 3,139 | [3],[4] | 3,161 | [5],[6] | |
Non Accrual [Member] | Commercial Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | [3],[4] | 0 | [5],[6] | |
Non Accrual [Member] | Residential Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 6,588 | [3],[4] | 6,589 | [5],[6] | |
Non Accrual [Member] | Land Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 1,698 | [3],[4] | 1,636 | [5],[6] | |
Accrual [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 434,199 | 494,640 | |||
Accrual [Member] | Non Fha Va Residential Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 273,890 | 266,810 | |||
Accrual [Member] | Commercial Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 75,541 | 69,374 | |||
Accrual [Member] | Commercial And Industrial Loan [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 55,394 | 131,544 | |||
Accrual [Member] | Consumer Auto Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 11,011 | 10,558 | |||
Accrual [Member] | Finance Leases [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 1,875 | 1,926 | |||
Accrual [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 12,237 | 10,146 | |||
Accrual [Member] | Commercial Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Accrual [Member] | Residential Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 3,472 | 3,448 | |||
Accrual [Member] | Land Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 779 | 834 | |||
Non Fha Va Residential Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 354,094 | 349,775 | |||
Commercial Mortgage Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 136,780 | 127,766 | |||
Commercial And Industrial Loan [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 166,736 | 171,926 | |||
Consumer Auto Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 17,547 | 16,991 | |||
Finance Leases [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 2,053 | 2,181 | |||
Other Consumer Loans [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 15,376 | 13,307 | |||
Commercial Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | |||
Residential Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 10,060 | 10,037 | |||
Land Construction [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $2,477 | $2,470 | |||
[1] | Excludes TDRs held for sale amounting to $45.7 million as of March 31, 2015. | ||||
[2] | Excludes TDRs held for sale amounting to $45.7 million as of December 31, 2014. | ||||
[3] | Included in non-accrual loans are $121.9 million in loans that are performing under the terms of a restructuring agreement but are reported in non-accrual 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. | ||||
[4] | Excludes non-accrual TDRs held for sale with a carrying value of $45.7 million as of March 31, 2015. | ||||
[5] | Included in non-accrual loans are $52.8 million in loans that are performing under the terms of a restructuring agreement but are reported in non-accrual 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. | ||||
[6] | Excludes non-accrual TDRs held for sale with a carrying value of $45.7 million as of December 31, 2014. |
LOAN_PORTFOLIO_Breakdown_Betwe1
LOAN PORTFOLIO - Breakdown Between Accrual and Nonaccrual Status of TDRs (Parenthetical) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||
In Thousands, unless otherwise specified | |||||
Financing Receivable Modifications [Line Items] | |||||
Total TDR loans | $705,123 | [1] | $694,453 | [2] | $622,320 |
Performing Financing Receivable [Member] | Non Accrual [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Total TDR loans | $121,900 | $52,800 | |||
[1] | Excludes TDRs held for sale amounting to $45.7 million as of March 31, 2015. | ||||
[2] | Excludes TDRs held for sale amounting to $45.7 million as of December 31, 2014. |
LOAN_PORTFOLIO_Loan_Modificati
LOAN PORTFOLIO - Loan Modifications are Considered TDRs (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
numberofcontracts | numberofcontracts | |
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 622 | 611 |
Pre-Modification Outstanding Recorded Investment | $31,858 | $20,264 |
Post-Modification Outstanding Recorded Investment | 31,601 | 19,935 |
Non Fha Va Residential Mortgage Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 81 | 47 |
Pre-Modification Outstanding Recorded Investment | 11,495 | 7,709 |
Post-Modification Outstanding Recorded Investment | 11,265 | 7,711 |
Commercial Mortgage Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 8 | 3 |
Pre-Modification Outstanding Recorded Investment | 12,821 | 834 |
Post-Modification Outstanding Recorded Investment | 12,931 | 837 |
Commercial And Industrial Loan [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 1 | 5 |
Pre-Modification Outstanding Recorded Investment | 1,681 | 7,964 |
Post-Modification Outstanding Recorded Investment | 1,681 | 7,630 |
Consumer Auto Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 146 | 117 |
Pre-Modification Outstanding Recorded Investment | 2,173 | 1,605 |
Post-Modification Outstanding Recorded Investment | 2,130 | 1,605 |
Finance Leases [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 8 | 10 |
Pre-Modification Outstanding Recorded Investment | 233 | 193 |
Post-Modification Outstanding Recorded Investment | 184 | 193 |
Other Consumer Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 377 | 429 |
Pre-Modification Outstanding Recorded Investment | 3,391 | 1,959 |
Post-Modification Outstanding Recorded Investment | 3,346 | 1,959 |
Commercial Construction [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 |
Residential Construction [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 |
Land Construction [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | 64 | 0 |
Post-Modification Outstanding Recorded Investment | $64 | $0 |
LOAN_PORTFOLIO_Loan_Modificati1
LOAN PORTFOLIO - Loan Modifications Considered Troubled Debt Restructurings Defaulted (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | $72,000 | $63,000 |
Recorded Investment | 7,770,000 | 2,767,000 |
Non Fha Va Residential Mortgage Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 12,000 | 14,000 |
Recorded Investment | 1,773,000 | 2,552,000 |
Commercial Mortgage Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 0 | 0 |
Recorded Investment | 0 | 0 |
Commercial And Industrial Loan [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 4,000 | 0 |
Recorded Investment | 5,745,000 | 0 |
Consumer Auto Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 2,000 | 4,000 |
Recorded Investment | 8,000 | 39,000 |
Other Consumer Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 53,000 | 45,000 |
Recorded Investment | 229,000 | 176,000 |
Finance Leases [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 1,000 | 0 |
Recorded Investment | 15,000 | 0 |
Commercial Construction [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 0 | 0 |
Recorded Investment | 0 | 0 |
Residential Construction [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 0 | 0 |
Recorded Investment | 0 | 0 |
Land Construction [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | 0 | 0 |
Recorded Investment | $0 | $0 |
LOAN_PORTFOLIO_Loan_Restructur
LOAN PORTFOLIO - Loan Restructuring and Effect on Allowance for Loan and Lease Losses (Detail) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $705,123 | [1] | $622,320 | $694,453 | [2] |
Charges to the provision for loan losses | 32,970 | 31,915 | |||
Allowance for loan losses at the end of the period | 226,064 | 222,395 | |||
Loans Split [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 42,907 | 78,833 | |||
Amount charged-off | 0 | 0 | |||
Charges to the provision for loan losses | -24 | -15 | |||
Allowance for loan losses at the end of the period | 707 | 1,547 | |||
Accrual [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $434,199 | $494,640 | |||
[1] | Excludes TDRs held for sale amounting to $45.7 million as of March 31, 2015. | ||||
[2] | Excludes TDRs held for sale amounting to $45.7 million as of December 31, 2014. |
ALLOWANCE_FOR_LOAN_AND_LEASE_L2
ALLOWANCE FOR LOAN AND LEASE LOSSES - Changes in Allowance for Loan and Lease Losses (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | $222,395 | $285,858 | ||
Charge-offs | -32,013 | -53,707 | ||
Recoveries | 2,712 | 2,712 | ||
Provision For Loan Lease And Other Losses | 32,970 | 31,915 | ||
Ending balance | 226,064 | 266,778 | ||
Balance at end of period | 62,140 | 85,016 | 55,205 | 102,601 |
Ending balance: general allowance | 163,924 | 181,762 | ||
Ending balance | 9,485,372 | 9,566,785 | 9,262,436 | |
Ending balance: impaired loans | 954,981 | 879,388 | 945,407 | 919,112 |
Ending balance: purchased credit-impaired loans | 181,114 | 102,604 | ||
Ending balance: loans with general allowance | 8,349,277 | 8,684,014 | ||
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 | 181,114 | 3,383 | ||
Residential Mortgage [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 27,301 | 33,110 | ||
Charge-offs | -5,192 | -6,422 | ||
Recoveries | 98 | 69 | ||
Provision For Loan Lease And Other Losses | 6,475 | 3,751 | ||
Ending balance | 28,682 | 30,508 | ||
Balance at end of period | 14,862 | 17,273 | ||
Ending balance: general allowance | 13,820 | 13,235 | ||
Ending balance | 3,331,620 | 2,548,101 | ||
Ending balance: impaired loans | 429,526 | 419,308 | ||
Ending balance: loans with general allowance | 2,724,493 | 2,128,793 | ||
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 | 177,601 | 0 | ||
Commercial Mortgage [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 50,894 | 73,138 | ||
Charge-offs | -4,006 | -5,810 | ||
Recoveries | 276 | 35 | ||
Provision For Loan Lease And Other Losses | -2,137 | -851 | ||
Ending balance | 45,027 | 66,512 | ||
Balance at end of period | 13,238 | 29,833 | ||
Ending balance: general allowance | 31,789 | 36,679 | ||
Ending balance | 1,649,263 | 1,846,016 | ||
Ending balance: impaired loans | 224,365 | 219,860 | ||
Ending balance: loans with general allowance | 1,421,619 | 1,626,156 | ||
Commercial 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 | 3,279 | 0 | ||
Commercial And Industrial Loans [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 63,721 | 85,295 | ||
Charge-offs | -4,453 | -22,459 | ||
Recoveries | 558 | 663 | ||
Provision For Loan Lease And Other Losses | 10,353 | 16,091 | ||
Ending balance | 70,179 | 79,590 | ||
Balance at end of period | 24,871 | 19,098 | ||
Ending balance: general allowance | 45,308 | 60,492 | ||
Ending balance | 2,442,867 | 2,947,837 | ||
Ending balance: impaired loans | 226,656 | 151,653 | ||
Ending balance: loans with general allowance | 2,216,211 | 2,796,184 | ||
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 | 12,822 | 35,814 | ||
Charge-offs | -605 | -970 | ||
Recoveries | 207 | 617 | ||
Provision For Loan Lease And Other Losses | 1,215 | -8,050 | ||
Ending balance | 13,639 | 27,411 | ||
Balance at end of period | 3,381 | 15,154 | ||
Ending balance: general allowance | 10,258 | 12,257 | ||
Ending balance | 124,440 | 152,579 | ||
Ending balance: impaired loans | 37,593 | 58,636 | ||
Ending balance: loans with general allowance | 86,847 | 93,943 | ||
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: purchased credit-impaired loans | 0 | 0 | ||
Consumer Loan [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 67,657 | 58,501 | ||
Charge-offs | -17,757 | -18,046 | ||
Recoveries | 1,573 | 1,328 | ||
Provision For Loan Lease And Other Losses | 17,064 | 20,974 | ||
Ending balance | 68,537 | 62,757 | ||
Balance at end of period | 5,788 | 3,658 | ||
Ending balance: general allowance | 62,749 | 59,099 | ||
Ending balance | 1,937,182 | 2,072,252 | ||
Ending balance: impaired loans | 36,841 | 29,931 | ||
Ending balance: loans with general allowance | 1,900,107 | 2,038,938 | ||
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: purchased credit-impaired loans | $234 | $3,383 |
ALLOWANCE_FOR_LOAN_AND_LEASE_L3
ALLOWANCE FOR LOAN AND LEASE LOSSES - Additional Information (Detail) (USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | Mar. 31, 2015 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Reserve for unfunded loan commitments | $0.50 | |
Changes In Allowance For Loan Losses | ($4.80) |
LOANS_HELD_FOR_SALE_Portfolio_
LOANS HELD FOR SALE - Portfolio of Loans Held for Sale (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $81,723 | $76,956 |
Residential Mortgage [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Residential mortgage loans | 27,135 | 22,315 |
Commercial Mortgage loans | 6,786 | 6,839 |
Construction Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Construction loans | $47,802 | $47,802 |
LOANS_HELD_FOR_SALE_Additional
LOANS HELD FOR SALE - Additional Information (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | $81,723,000 | $76,956,000 |
Non Accrual [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Commercial Mortgage loans | 6,800,000 | 6,800,000 |
Construction loans | $47,800,000 | $47,800,000 |
OTHER_REAL_ESTATE_OWNED_Other_
OTHER REAL ESTATE OWNED- Other real estate owned (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Other Real Estate And Foreclosed Assets [Line Items] | ||||
Other real estate owned | $122,628 | $124,003 | ||
Residential Real Estate [Member] | ||||
Other Real Estate And Foreclosed Assets [Line Items] | ||||
Other real estate owned | 26,031 | 22,520 | ||
Commercial Real Estate [Member] | ||||
Other Real Estate And Foreclosed Assets [Line Items] | ||||
Other real estate owned | 72,473 | 75,654 | ||
Construction Real Estate [Member] | ||||
Other Real Estate And Foreclosed Assets [Line Items] | ||||
Other real estate owned | 17,257 | 18,770 | ||
Government Guaranteed [Member] | ||||
Other Real Estate And Foreclosed Assets [Line Items] | ||||
Other real estate owned | $6,867 | [1] | $7,059 | [1] |
[1] | As of March 31, 2015, exclude $0.2 million of foreclosures completed in 2015 that meet the conditions of ASC 310-40 and are presented as a receivable (other assets) in the statement of financial condition. |
OTHER_REAL_ESTATE_OWNED_Additi
OTHER REAL ESTATE OWNED- Additional information (Detail) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Other Real Estate And Foreclosed Assets [Abstract] | |
Transfers From Loans to Other Receivable | $0.20 |
DERIVATIVE_INSTRUMENTS_AND_HED2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amounts of All Derivative Instruments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Notional amount of derivatives | $111,058 | $98,704 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 5,440 | 5,440 |
Nondesignated [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 5,440 | 5,440 |
Nondesignated [Member] | Interest Rate Cap [Member] | Purchase | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 36,809 | 37,132 |
Nondesignated [Member] | Interest Rate Cap [Member] | Written | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 36,809 | 37,132 |
Nondesignated [Member] | Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivatives | $32,000 | $19,000 |
DERIVATIVE_INSTRUMENTS_AND_HED3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Fair Value of Derivative Instruments and Location in Statement of Financial Condition (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Other Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in assets | $1 | $39 |
Other Assets [Member] | Interest Rate Swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in assets | 0 | 33 |
Other Assets [Member] | Interest Rate Cap [Member] | Purchase | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in assets | 1 | 6 |
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 | 0 |
Other Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in liabilities | 221 | 187 |
Other Liabilities [Member] | Interest Rate Swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in liabilities | 0 | 33 |
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 | 1 | 6 |
Other Liabilities [Member] | Forward Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in liabilities | $220 | $148 |
DERIVATIVE_INSTRUMENTS_AND_HED4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Derivative Instruments on Statement of Income (Loss) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Economic undesignated hedges: | ||
Total gain (loss) on derivatives | ($72) | $148 |
Interest Income Loans [Member] | Interest Rate Swap [Member] | ||
Economic undesignated hedges: | ||
Total gain (loss) on derivatives | 0 | 313 |
Mortgage Banking Activities [Member] | Forward Contracts [Member] | ||
Economic undesignated hedges: | ||
Total gain (loss) on derivatives | ($72) | ($165) |
DERIVATIVE_INSTRUMENTS_AND_HED5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Interest Rate Swaps (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Pay fixed/receive floating : | ||
Notional amount | $111,058 | $98,704 |
Interest Rate Swap [Member] | ||
Pay fixed/receive floating : | ||
Notional amount | $5,440 | $5,440 |
Derivative Receivable [Member] | ||
Pay fixed/receive floating : | ||
Weighted-average receive rate at period end | 2.04% | 2.03% |
Derivative Payable [Member] | ||
Pay fixed/receive floating : | ||
Weighted-average pay rate at period end | 3.45% | 3.45% |
OFFESTTING_OF_ASSETS_AND_LIABI
OFFESTTING OF ASSETS AND LIABILITIES - Offsetting of financial assets and liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Offsetting [Abstract] | ||
Gross amount recognized of derivative asset | $1 | $6 |
Gross amount of derivatives assets offset | 0 | 0 |
Net asset amount of assets presented in the Statement of Financial Condition | 1 | 6 |
Obligation to return Financial instrument, derivatives assets | -1 | -6 |
Obligation to return Cash Collateral, derivative assets | 0 | 0 |
Net derivative asset amount not offset | 0 | 0 |
Gross amount recognized of derivative liabilities | 0 | 33 |
Gross amount of derivative liabilities offset | 0 | 0 |
Net derivative liability amount offset presented | 0 | 33 |
Right to claim Financial instrument, derivatives liabilities | 0 | -33 |
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 | 600,000 | 600,033 |
Gross amount of liabilties offset | 0 | 0 |
Net liabilities amount offset presented | 600,000 | 600,033 |
Right to claim Financial instrument, liabilities | -600,000 | -600,033 |
Right to claim Cash Collateral, liabilties | 0 | 0 |
Net liability amount not offset | $0 | $0 |
GOODWILL_AND_OTHER_INTANGIBLES2
GOODWILL AND OTHER INTANGIBLES - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | 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 | 1,093,000 | 1,235,000 | ||
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 8 months 12 days | 7 years 9 months 18 days | ||
Amortization expense | 800,000 | 800,000 | ||
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 | 9 years 10 months 24 days | 9 years 2 months 12 days | ||
Amortization expense | $300,000 | $400,000 |
GOODWILL_AND_OTHER_INTANGIBLES3
GOODWILL AND OTHER INTANGIBLES - Gross Amount and Accumulated Amortization of Other Intangible Assets (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Jun. 30, 2012 |
Finite Lived Intangible Assets [Line Items] | ||||
Gross amount | $24,500 | |||
Finite lived Intangible Assets Acquired 1 | 5,820 | 0 | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Finite Lived Intangible Assets Amortization Expense Next Twelve Months | 3,813 | |||
Finite Lived Intangible Assets Amortization Expense Year Two | 4,737 | |||
Finite Lived Intangible Assets Amortization Expense Year Three | 4,197 | |||
Finite Lived Intangible Assets Amortization Expense Year Four | 3,293 | |||
Core Deposits [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Gross amount | 45,844 | 45,844 | ||
Accumulated amortization | -40,750 | -40,424 | ||
Net carrying amount | 10,914 | 5,420 | ||
Remaining amortization period | 9 years 10 months 24 days | 9 years 2 months 12 days | ||
Purchased Credit Card Relationship Intangible [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Gross amount | 24,465 | 24,465 | ||
Accumulated amortization | -8,843 | -8,076 | ||
Net carrying amount | $15,622 | $16,389 | ||
Remaining amortization period | 6 years 8 months 12 days | 7 years 9 months 18 days |
NONCONSOLIDATED_VARIABLE_INTER2
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 30, 2004 | Sep. 30, 2004 | Feb. 16, 2011 | Dec. 31, 2013 | |
Servicing Liabilities At Fair Value [Line Items] | |||||||
Principal amount of corporation serviced loans securitized through GNMA | $1,200,000,000 | ||||||
Balance of amortization with third party | 43,000,000 | ||||||
Carrying value with third party | 31,700,000 | ||||||
Percentage of weighted average yield with third party | 2.15% | ||||||
Percentage Of Trust Preferred Securities That Qualify As Tier 1 Capital | 0.00% | 25.00% | |||||
Debt Instrument Description Of Variable Rate Basis | 90-day LIBOR | ||||||
Working Capital Line Expiration Period | 2 years 0 months 0 days | ||||||
Interest Expense Accrued Trust Preferred Securities | 23,700,000 | ||||||
Maximum [Member] | |||||||
Servicing Liabilities At Fair Value [Line Items] | |||||||
Percentage of variation in assumptions | 20.00% | ||||||
Minimum [Member] | |||||||
Servicing Liabilities At Fair Value [Line Items] | |||||||
Percentage of variation in assumptions | 10.00% | ||||||
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 | ||||||
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 | ||||||
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 | ||||||
Loans acquired on exchange of loan held for sale | 136,100,000 | ||||||
Description of loan | 30-day LIBOR plus 300 basis points 30-day LIBOR plus 300 basis points | ||||||
Carrying amount of loan provided | 25,200,000 | ||||||
Line of credit facility provided to fund unfunded commitments | 80,000,000 | ||||||
Working capital line of credit to fund certain expenses | 20,000,000 | 7,000,000 | |||||
Revolver agreement of credit facility provided amount outstanding | 38,400,000 | ||||||
Working capital line of credit facility provided amount outstanding | $0 | ||||||
Equity Method Investments Estimated Discount Factor | 17.57% | ||||||
Prlp [Member] | |||||||
Servicing Liabilities At Fair Value [Line Items] | |||||||
Percentage of ownership investment in unconsolidated entity | 65.00% | ||||||
Percentage of priority interest to be received on invested capital | 12.00% | ||||||
Payment to be made on pro rata basis | 35.00% | ||||||
FirstBank [Member] | |||||||
Servicing Liabilities At Fair Value [Line Items] | |||||||
Acquired Equity interest on disposal of loans held for sale | 35.00% | ||||||
Percentage of priority interest to be received on invested capital | 12.00% | ||||||
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 $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Variable Interest Entity [Line Items] | ||
Net income (loss) | $25,646 | $17,083 |
Cpg Gs [Member] | ||
Variable Interest Entity [Line Items] | ||
Revenues | 588 | 751 |
Gross profit | -8,240 | -1,508 |
Net income (loss) | ($7,751) | ($2,447) |
NONCONSOLIDATED_VARIABLE_INTER4
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Changes in Servicing Assets (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Servicing Assets At Amortized Value [Line Items] | ||||
Balance at beginning of period | $22,838 | $21,987 | ||
Capitalization of servicing assets | 1,073 | 1,052 | ||
Amortization | -856 | -783 | ||
Adjustment to servicing assets for loans repurchased | -44 | [1] | -11 | [1] |
Adjustment to fair value | -38 | -219 | ||
Balance at end of period | $22,973 | $22,026 | ||
[1] | 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 $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Valuation Allowance For Impairment Of Recognized Servicing Assets [Line Items] | ||
Balance at beginning of period | $55 | $212 |
Temporary impairment charges | 58 | 219 |
Recoveries | -20 | 0 |
Balance at end of period | $93 | $431 |
NONCONSOLIDATED_VARIABLE_INTER6
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Components of Net Servicing Income (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Servicing fees | $1,764 | $1,671 | ||
Late charges and prepayment penalties | 190 | 164 | ||
Other | 89 | [1] | 358 | [1] |
Adjustment to servicing assets for loans repurchased | -44 | [2] | -11 | [2] |
Servicing income, gross | 1,821 | 1,466 | ||
Amortization and impairment of servicing assets | -894 | -1,002 | ||
Servicing income, net | $927 | $464 | ||
[1] | Mainly consisted of compensatory fees imposed by GSEs and losses related to representations and warranties. | |||
[2] | 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) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Government Guaranteed Mortgage Loans [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 | 9.20% | 9.10% |
Discount rate | 11.50% | 11.50% |
Conventional Loan [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 | 9.00% | 8.90% |
Discount rate | 9.50% | 9.50% |
Conventional Non Conforming Mortgage Loans [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% | 13.40% |
Discount rate | 13.80% | 13.90% |
NONCONSOLIDATED_VARIABLE_INTER8
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Weighted-Averages of Key Economic Assumptions in Valuation Model (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Carrying amount of servicing assets | $22,973 | $22,838 | $22,026 | $21,987 |
Fair value | 25,195 | |||
Weighted-average expected life | 8 years 5 months 19 days | |||
Constant prepayment rate | 10.25% | |||
Decrease in fair value due to 10% adverse change | 948 | |||
Decrease in fair value due to 20% adverse change | 1,838 | |||
Discount rate | 10.62% | |||
Decrease in fair value due to 10% adverse change | 1,050 | |||
Decrease in fair value due to 20% adverse change | $2,020 |
DEPOSITS_Summary_of_Deposit_Ba
DEPOSITS - Summary of Deposit Balances (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deposits [Line Items] | ||
Non-interest bearing checking accounts | $1,175,943 | $900,616 |
Savings accounts | 2,641,793 | 2,450,484 |
Interest-bearing checking accounts | 1,127,560 | 1,054,136 |
Certificates of deposit | 2,323,259 | 2,191,663 |
Brokered certificates of deposit | 2,572,483 | 2,887,046 |
Total deposits | $9,841,038 | $9,483,945 |
DEPOSITS_Brokered_Certificates
DEPOSITS - Brokered Certificates Of Deposit Mature (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | $2,572,483 | $2,887,046 |
One to ninety days | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 362,501 | |
Over three month to six months | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 577,737 | |
Over six months to one year | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 832,235 | |
One to three year | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 745,922 | |
Three to five years | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 18,037 | |
Over five years | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | $36,051 |
DEPOSITS_Components_of_Interes
DEPOSITS - Components of Interest Expense on Deposits (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Deposits [Line Items] | ||
Interest expense on deposits | $16,359 | $18,514 |
Amortization of broker placement fees | 1,335 | 1,785 |
Interest expense on deposits | $17,694 | $20,299 |
SECURITIES_SOLD_UNDER_AGREEMEN2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities Sold Under Agreements to Repurchase (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
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 3.35%(December 31, 2012- 2.45% to 3.39%) | $900,000 | [1] | $900,000 | [1] |
[1] | As of March 31, 2015, includes $800 million with an average rate of 2.71% that lenders have the right to call before their contractual maturities at various dates beginning on April 9, 2015. Subsequent to April 9, 2015, no lender has exercised its call option on repurchase agreements. In addition, $700 million is tied to variable rates. |
SECURITIES_SOLD_UNDER_AGREEMEN3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities Sold Under Agreements to Repurchase (Parenthetical) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Securities sold under agreements to repurchase | $900,000,000 | [1] | $900,000,000 | [1] |
Securites Sold Under Agreement To Repurchase Restructurings | 400,000,000 | |||
Securities For Reverse Repurchase Agreements | 200,000,000 | |||
Combination Of Interest Rate Reduction And Extension Of Contractual Maturity [Member] | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Securites Sold Under Agreement To Repurchase Restructurings | 200,000,000 | |||
Extension Of Contractual Maturity [Member] | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Securites Sold Under Agreement To Repurchase Restructurings | 200,000,000 | |||
Callable Repurchase Agreements [Member] | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Securities sold under agreements to repurchase | 800,000,000 | |||
Variable Interest Rate Repurchase Agreement [Member] | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Securities sold under agreements to repurchase | $700,000,000 | |||
Maximum [Member] | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Assets sold under agreements to repurchase interest rate | 3.33% | 4.50% | ||
Minimum [Member] | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Assets sold under agreements to repurchase interest rate | 1.96% | 2.45% | ||
Weighted Average [Member] | Callable Repurchase Agreements [Member] | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Assets sold under agreements to repurchase interest rate | 2.71% | |||
[1] | As of March 31, 2015, includes $800 million with an average rate of 2.71% that lenders have the right to call before their contractual maturities at various dates beginning on April 9, 2015. Subsequent to April 9, 2015, no lender has exercised its call option on repurchase agreements. In addition, $700 million is tied to variable rates. |
SECURITIES_SOLD_UNDER_AGREEMEN4
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Schedule of Repurchase Agreement Maturity (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Repurchase Agreement [Line Items] | ||||
Securities Sold Under Agreements To Repurchase | $900,000 | [1] | $900,000 | [1] |
Less than three years | ||||
Repurchase Agreement [Line Items] | ||||
Securities Sold Under Agreements To Repurchase | 500,000 | |||
Over five years | ||||
Repurchase Agreement [Line Items] | ||||
Securities Sold Under Agreements To Repurchase | $400,000 | |||
[1] | As of March 31, 2015, includes $800 million with an average rate of 2.71% that lenders have the right to call before their contractual maturities at various dates beginning on April 9, 2015. Subsequent to April 9, 2015, no lender has exercised its call option on repurchase agreements. In addition, $700 million is tied to variable rates. |
SECURITIES_SOLD_UNDER_AGREEMEN5
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Schedule of Repurchase Agreement Maturity (Parenthetical) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Repurchase Agreement [Line Items] | ||||
Securities Sold Under Agreements To Repurchase | $900,000 | [1] | $900,000 | [1] |
[1] | As of March 31, 2015, includes $800 million with an average rate of 2.71% that lenders have the right to call before their contractual maturities at various dates beginning on April 9, 2015. Subsequent to April 9, 2015, no lender has exercised its call option on repurchase agreements. In addition, $700 million is tied to variable rates. |
SECURITIES_SOLD_UNDER_AGREEMEN6
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Repurchase Agreements Grouped by Counterparty (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Repurchase Agreement Counterparty [Line Items] | ||||
Repurchase agreements, interest ranging from 2.45% to 3.39% (December 31, 2011 - 2.50% to 4.40%) (1) | $900,000 | [1] | $900,000 | [1] |
Citigroup Global Markets [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Repurchase agreements, interest ranging from 2.45% to 3.39% (December 31, 2011 - 2.50% to 4.40%) (1) | 300,000 | |||
Weighted-Average Maturity | 1 year 7 months 0 days | |||
Jp Morgan Chase [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Repurchase agreements, interest ranging from 2.45% to 3.39% (December 31, 2011 - 2.50% to 4.40%) (1) | 200,000 | |||
Weighted-Average Maturity | 6 years 10 months 0 days | |||
Dean Witter Morgan Stanley [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Repurchase agreements, interest ranging from 2.45% to 3.39% (December 31, 2011 - 2.50% to 4.40%) (1) | 100,000 | |||
Weighted-Average Maturity | 2 years 7 months 0 days | |||
Credit Suisse First Boston [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Repurchase agreements, interest ranging from 2.45% to 3.39% (December 31, 2011 - 2.50% to 4.40%) (1) | $300,000 | |||
Weighted-Average Maturity | 5 years 0 months 0 days | |||
[1] | As of March 31, 2015, includes $800 million with an average rate of 2.71% that lenders have the right to call before their contractual maturities at various dates beginning on April 9, 2015. Subsequent to April 9, 2015, no lender has exercised its call option on repurchase agreements. In addition, $700 million is tied to variable rates. |
ADVANCES_FROM_THE_FEDERAL_HOME2
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Summary of Advances from FHLB (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Short Term Debt [Line Items] | ||
Fixed-rate advances from FHLB, with a weighted-average interest rate of 1.69% (December 31, 2012 - 2.26%) | $325,000 | $325,000 |
ADVANCES_FROM_THE_FEDERAL_HOME3
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Summary of Advances from FHLB (Parenthetical) (Detail) | Mar. 31, 2015 | Dec. 31, 2014 |
Short Term Debt [Line Items] | ||
Weighted-average interest rate | 1.17% | 1.17% |
ADVANCES_FROM_THE_FEDERAL_HOME4
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Advances from FHLB Mature (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | $325,000 |
Over one to three years | ||
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Federal Home Loan Bank Advances | 300,000 | |
Over three years | ||
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Federal Home Loan Bank Advances | $25,000 |
ADVANCES_FROM_THE_FEDERAL_HOME5
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Additional Information (Detail) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | |
Credit facility based on collateral pledged | $615.40 |
OTHER_BORROWINGS_Components_of
OTHER BORROWINGS - Components of Other Borrowings (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
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 | 3.02% | 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 | 2.77% | 2.75% |
Subordinated Borrowing Due Date | 20-Sep-34 | |
Callable step-rate notes rate | 2.50% |
STOCKHOLDERS_EQUITY_Additional
STOCKHOLDERS' EQUITY - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
numberofstocks | |||
Class Of Stock [Line Items] | |||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | |
Common stock, par value | $0.10 | $0.10 | |
Common stock, shares issued | 214,618,015 | 213,724,749 | |
Common stock, shares outstanding | 213,827,258 | 212,984,700 | |
Granted shares of restricted stock | 821,532 | ||
Corporation has authorized shares of preferred stock | 50,000,000 | 50,000,000 | |
Preferred stock, par value | $1 | ||
Number of preferred stock series | 5 | ||
Stock repurchase plan treasury stock | 790,757 | 740,049 | |
Repurchased of common stock | 50,708 | ||
Liquidation value per share | $25 | ||
Legal surplus reserve amount | $40 | ||
Conversion Of Stock Shares Issued1 | 1,075,283 | ||
Shares Of Preferred Stock Exchanged | 249,477 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number | 2,327,156 | ||
Omnibus Plan [Member] | |||
Class Of Stock [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number | 3,076,438 | ||
Restricted Stock [Member] | |||
Class Of Stock [Line Items] | |||
Repurchased of common stock | 22,525 | ||
FirstBank [Member] | |||
Class Of Stock [Line Items] | |||
Legal surplus reserve rate | 10.00% | ||
Original amount contributed in percentage | 20.00% | ||
Series A Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 7.13% | ||
Series B Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 8.35% | ||
Series C Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 7.40% | ||
Series D Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 7.25% | ||
Series E Preferred Stock [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 $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Class Of Stock [Line Items] | |||
Liquidation value per share | 25 | ||
Preferred stock, shares outstanding | 1,444,146 | 1,444,146 | |
Shares Of Preferred Stock Exchanged | 249,477 | ||
Preferred Stock Value | 36,104 | $36,104 | |
Conversion Of Stock Shares Issued1 | 1,075,283 | ||
Series A Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 7.13% | ||
Series B Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 8.35% | ||
Series C Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 7.40% | ||
Series D Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 7.25% | ||
Series E Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 7.00% |
INCOME_TAXES_Additional_Inform
INCOME TAXES - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | ||||
Percentage of national gross tax receipt | 1.00% | |||
National gross receipt expense | $1,500,000 | |||
Percentage of gross receipt tax credit | 0.50% | |||
Gross income credit amount | 700,000 | |||
Valuation allowance | 198,600,000 | |||
Percentage of dividend received deduction from controlled subsidiaries | 100.00% | |||
Percentage of dividend received from other taxable domestic corporations | 85.00% | |||
Income tax expense | 8,032,000 | 887,000 | ||
Deferred Tax Assets Net | 310,900,000 | |||
Accrued interest related to tax uncertainties expense | 1,300,000 | |||
Minimum percentage of bank net taxable income for paying Income tax at normal rate | 20.00% | |||
Valuation Allowance Deferred Tax Asset Change In Amount | 302,900,000 | |||
Statutory Sales And Use Tax Rate | 7.00% | |||
Value Added Tax Rate | 16.00% | |||
Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions | -1,800,000 | |||
Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities | 2,500,000 | |||
Effective Tax Rate Pretax Losses | 22.00% | |||
Effective Tax Rate Including All Entities | 24.00% | |||
Deferred Tax Assets Liabilities Net | $313,000,000 | |||
Puerto Rico [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Statute of limitations under income tax act | 4 years 0 months 0 days | |||
United States [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Statute of limitations under income tax act | 3 years 0 months 0 days | |||
Virgin Islands [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Statute of limitations under income tax act | 3 years 0 months 0 days |
INCOME_TAXES_Reconciliation_of
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | |
Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions | ($1.80) |
Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities | ($2.50) |
FAIR_VALUE_Additional_Informat
FAIR VALUE - Additional Information (Detail) (USD $) | Mar. 31, 2015 |
Debt Instrument [Line Items] | |
Maximum amount of interest in brokered CD sold by broker | $250,000 |
FAIR_VALUE_Assets_and_Liabilit
FAIR VALUE - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Securities available for sale | ||
Investment securities available for sale | $1,974,226 | $1,965,666 |
U S Treasury Securities [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 7,500 | 7,499 |
Us Government Agencies Debt Securities Noncallable [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 286,066 | 228,157 |
Us Government Agencies Debt Securities Callable [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 1,607,273 | 1,653,140 |
US States And Political Subdivisions Member [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 41,463 | 43,222 |
Private Label Mbs [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 31,824 | 33,648 |
Interest Rate Cap [Member] | Purchase | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 1 | 6 |
Interest Rate Cap [Member] | Written | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 1 | 6 |
Forward And Future Contracts [Member] | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 0 | 0 |
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 220 | 148 |
Interest Rate Swap [Member] | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 0 | 33 |
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 0 | 33 |
Other Available For Sale Securities [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 100 | 0 |
Fair Value Inputs Level 1 [Member] | U S Treasury Securities [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 7,500 | 7,499 |
Fair Value Inputs Level 1 [Member] | Us Government Agencies Debt Securities Noncallable [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Us Government Agencies Debt Securities Callable [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 1 [Member] | US States And Political Subdivisions Member [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Private Label Mbs [Member] | ||
Securities available for sale | ||
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 |
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 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 1 [Member] | Other Available For Sale Securities [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 2 [Member] | U S Treasury Securities [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Us Government Agencies Debt Securities Noncallable [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 286,066 | 228,157 |
Fair Value Inputs Level 2 [Member] | Us Government Agencies Debt Securities Callable [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 1,607,273 | 1,653,140 |
Fair Value Inputs Level 2 [Member] | US States And Political Subdivisions Member [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 39,073 | 40,658 |
Fair Value Inputs Level 2 [Member] | Private Label Mbs [Member] | ||
Securities available for sale | ||
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 | 1 | 6 |
Fair Value Inputs Level 2 [Member] | Interest Rate Cap [Member] | Written | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 1 | 6 |
Fair Value Inputs Level 2 [Member] | Forward And Future Contracts [Member] | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 0 | 0 |
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 220 | 148 |
Fair Value Inputs Level 2 [Member] | Interest Rate Swap [Member] | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 0 | 33 |
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 0 | 33 |
Fair Value Inputs Level 2 [Member] | Other Available For Sale Securities [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 3 [Member] | U S Treasury Securities [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Us Government Agencies Debt Securities Noncallable [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Us Government Agencies Debt Securities Callable [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 3 [Member] | US States And Political Subdivisions Member [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 2,390 | 2,564 |
Fair Value Inputs Level 3 [Member] | Private Label Mbs [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 31,824 | 33,648 |
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 |
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 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 Inputs Level 3 [Member] | Other Available For Sale Securities [Member] | ||
Securities available for sale | ||
Investment securities available for sale | $100 | $0 |
FAIR_VALUE_Fair_Value_of_Asset
FAIR VALUE - Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Total gains or (losses) (realized/unrealized): | ||||
Included in earnings | $156 | $0 | ||
Principal Repayments | -2,461 | [1] | -1,869 | [1] |
Available for Sale Securities | ||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 36,212 | [1] | 43,292 | [1] |
Total gains or (losses) (realized/unrealized): | ||||
Included in earnings | 156 | [1] | 0 | [1] |
Included in other comprehensive income | -619 | [1] | -964 | [1] |
Purchases | 100 | [1] | 5,123 | [1] |
Ending balance | $34,314 | [1] | $47,510 | [1] |
[1] | Amounts mostly related to private label MBS. |
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 $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Investment securities available-for-sale: | ||
Discount rate used for calculation of mortgage servicing rights value | 14.50% | 14.50% |
Fair value input prepayment rate | 31.56% | 32.00% |
Securities available for sale | ||
Discount rate used for calculation of mortgage servicing rights value | 14.50% | 14.50% |
Fair value input prepayment rate | 31.56% | 32.00% |
Private Label Mbs [Member] | ||
Investment securities available-for-sale: | ||
Fair Value | 31,824 | |
Discount rate used for calculation of mortgage servicing rights value | 14.50% | |
Securities available for sale | ||
Fair Value | 31,824 | |
Discount rate used for calculation of mortgage servicing rights value | 14.50% | |
US States And Political Subdivisions Member [Member] | ||
Investment securities available-for-sale: | ||
Fair Value | 2,390 | |
Unobservable input prepayment rate | 2.89% | |
Securities available for sale | ||
Fair Value | 2,390 | |
Unobservable input prepayment rate | 2.89% | |
Discounted Cash Flow [Member] | Private Label Mbs [Member] | ||
Investment securities available-for-sale: | ||
Valuation technique | Discounted cash flow | |
Securities available for sale | ||
Valuation technique | Discounted cash flow | |
Discounted Cash Flow [Member] | US States And Political Subdivisions Member [Member] | ||
Investment securities available-for-sale: | ||
Valuation technique | Discounted cash flow | |
Securities available for sale | ||
Valuation technique | Discounted cash flow | |
Minimum [Member] | ||
Investment securities available-for-sale: | ||
Fair value input prepayment rate | 18.04% | 19.89% |
Securities available for sale | ||
Fair value input prepayment rate | 18.04% | 19.89% |
Minimum [Member] | Private Label Mbs [Member] | ||
Investment securities available-for-sale: | ||
Fair value input prepayment rate | 18.04% | |
Fair value projected Cumulative Loss Rate | 0.00% | |
Securities available for sale | ||
Fair value input prepayment rate | 18.04% | |
Fair value projected Cumulative Loss Rate | 0.00% | |
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) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Included in earnings | $156 | $0 | ||
Available for Sale Securities | ||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Included in earnings | $156 | [1] | $0 | [1] |
[1] | Amounts mostly related to private label MBS. |
FAIR_VALUE_Impairment_of_Valua
FAIR VALUE - Impairment of Valuation Adjustments were Recorded for Assets Recognized at Fair Value (Detail) (USD $) | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Mortgage servicing rights | $22,026 | $22,973 | $22,838 | $21,987 | ||
Loans Receivable [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Assets Fair Value Adjustment | -23,793 | [1] | ||||
Other Real Estate Owned [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Assets Fair Value Adjustment | -4,747 | [2] | ||||
Mortgage Servicing Rights [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Assets Fair Value Adjustment | -219 | [3] | ||||
Loans Held For Sale [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Assets Fair Value Adjustment | 0 | [4] | ||||
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 | -13,725 | [5] | ||||
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 | -2,711 | [2] | ||||
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 | -38 | [6] | ||||
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 | [4] | ||||
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 | [5] | ||
Other Real Estate Owned | 0 | [2] | 0 | [2] | ||
Mortgage servicing rights | 0 | [3] | 0 | [6] | ||
Loans held for sale | 0 | [4] | 0 | [4] | ||
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 | [5] | ||
Other Real Estate Owned | 0 | [2] | 0 | [2] | ||
Mortgage servicing rights | 0 | [3] | 0 | [6] | ||
Loans held for sale | 0 | [4] | 0 | [4] | ||
Fair Value Inputs Level 3 [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Loans receivable | 478,393 | [1] | ||||
Other Real Estate Owned | 138,622 | [2] | ||||
Mortgage servicing rights | 22,026 | [3] | ||||
Loans held for sale | 54,755 | [4] | ||||
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 | 436,944 | [5] | ||||
Other Real Estate Owned | 122,628 | [2] | ||||
Mortgage servicing rights | 22,973 | [6] | ||||
Loans held for sale | $54,588 | [4] | ||||
[1] | B 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 loan 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 included: Prepayment Rate-9.10%, Discount Rate-10.61%. | |||||
[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 in such agreements. | |||||
[5] | 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. | |||||
[6] | 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 included: Prepayment rate-10.25%, Discount Rate-10.62%. |
FAIR_VALUE_Impairment_of_Valua1
FAIR VALUE - Impairment of Valuation Adjustments were Recorded for Assets Recognized at Fair Value (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Repayment rate used for the calculation of mortgage servicing rights value | 31.56% | 32.00% | |
Discount rate used for calculation of mortgage servicing rights value | 14.50% | 14.50% | |
Loans held for sale | $81,723 | $76,956 | |
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 | 10.25% | 9.10% | |
Discount rate used for calculation of mortgage servicing rights value | 10.62% | 10.61% |
FAIR_VALUE_Qualitative_Informa
FAIR VALUE - Qualitative Information Regarding Fair Value Measurements for Level 3 Financial Instruments (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
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 Flow |
Valuation technique | Weighted average prepayment rate of 10.25%; weighted average discount rate of 10.62% |
FAIR_VALUE_Fair_Value_Detail
FAIR VALUE - Fair Value (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |
In Thousands, unless otherwise specified | ||||
Assets: | ||||
Investment securities available for sale | $1,974,226 | $1,965,666 | ||
Less: allowance for loan and lease losses | -226,064 | -222,395 | ||
Liabilities: | ||||
Other borrowings | 231,959 | 231,959 | ||
Fair Value Inputs Level 3 [Member] | ||||
Assets: | ||||
Loans held for sale | 54,755 | [1] | ||
Loans held for investment, net of allowance | 478,393 | [2] | ||
Carrying Reported Amount Fair Value Disclosure [Member] | ||||
Assets: | ||||
Cash and due from banks and money market investments | 984,436 | 796,108 | ||
Investment securities available for sale | 1,974,226 | 1,965,666 | ||
Other equity securities | 26,185 | 25,752 | ||
Loans held for sale | 81,723 | 76,956 | ||
Loans, held for investment | 9,485,372 | 9,262,436 | ||
Less: allowance for loan and lease losses | -226,064 | -222,395 | ||
Loans held for investment, net of allowance | 9,259,308 | 9,040,041 | ||
Derivatives, included in assets | 1 | 39 | ||
Liabilities: | ||||
Deposits | 9,841,038 | 9,483,945 | ||
Securities sold under agreements to repurchase | 900,000 | 900,000 | ||
Advances from FHLB | 325,000 | 325,000 | ||
Other borrowings | 231,959 | 231,959 | ||
Derivatives, included in liabilities | 221 | 187 | ||
Estimate Of Fair Value Fair Value Disclosure [Member] | ||||
Assets: | ||||
Cash and due from banks and money market investments | 984,436 | 796,108 | ||
Investment securities available for sale | 1,974,226 | 1,965,666 | ||
Other equity securities | 26,185 | 25,752 | ||
Loans held for sale | 82,942 | 77,888 | ||
Loans held for investment, net of allowance | 9,115,707 | 8,844,659 | ||
Derivatives, included in assets | 1 | 39 | ||
Liabilities: | ||||
Deposits | 9,852,630 | 9,486,325 | ||
Securities sold under agreements to repurchase | 966,365 | 958,715 | ||
Advances from FHLB | 326,087 | 324,376 | ||
Other borrowings | 169,935 | 162,344 | ||
Derivatives, included in liabilities | 221 | 187 | ||
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 1 [Member] | ||||
Assets: | ||||
Cash and due from banks and money market investments | 984,436 | 796,108 | ||
Investment securities available for sale | 7,500 | 7,499 | ||
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 | 1,932,412 | 1,921,955 | ||
Other equity securities | 26,185 | 25,752 | ||
Loans held for sale | 28,301 | 23,247 | ||
Loans held for investment, net of allowance | 0 | 0 | ||
Derivatives, included in assets | 1 | 39 | ||
Liabilities: | ||||
Deposits | 9,852,630 | 9,486,325 | ||
Securities sold under agreements to repurchase | 966,365 | 958,715 | ||
Advances from FHLB | 326,087 | 324,376 | ||
Other borrowings | 0 | 0 | ||
Derivatives, included in liabilities | 221 | 187 | ||
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 | 34,314 | 36,212 | ||
Other equity securities | 0 | 0 | ||
Loans held for sale | 54,641 | 54,641 | ||
Loans held for investment, net of allowance | 9,115,707 | 8,844,659 | ||
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 | 169,935 | 162,344 | ||
Derivatives, included in liabilities | $0 | $0 | ||
[1] | 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 in such agreements. | |||
[2] | B 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. |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION - Supplemental Cash Flow Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash paid for: | ||
Interest on borrowings | $24,502 | $23,359 |
Income tax | 82 | 113 |
Non-cash investing and financing activities: | ||
Additions to other real estate owned | 12,702 | 8,176 |
Additions to auto repossesions | 20,464 | 20,771 |
Loan securitizations | 46,914 | 50,792 |
Capitalization of servicing assets | 1,073 | 1,052 |
Loans held for investment transferred to held for sale | 0 | 0 |
Fair Value Of Assets Acquired | 540,339 | |
Deposits [Member] | ||
Non-cash investing and financing activities: | ||
Liabilities Assumed1 | 523,517 | 0 |
Loans [Member] | ||
Non-cash investing and financing activities: | ||
Fair Value Of Assets Acquired | 311,410 | 0 |
Property Plant And Equipment [Member] | ||
Non-cash investing and financing activities: | ||
Fair Value Of Assets Acquired | 5,450 | 0 |
Cash [Member] | ||
Non-cash investing and financing activities: | ||
Fair Value Of Assets Acquired | 217,659 | |
Core Deposits [Member] | ||
Non-cash investing and financing activities: | ||
Fair Value Of Assets Acquired | 5,820 | 0 |
Other Liabilities [Member] | ||
Non-cash investing and financing activities: | ||
Liabilities Assumed1 | $3,379 |
SEGMENT_INFORMATIO_Information
SEGMENT INFORMATIO - Information about reportable segments (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Interest income | $152,485 | $160,571 |
Net (charge) credit for transfer of funds | 0 | 0 |
Interest expense | -26,838 | -29,251 |
Net interest income (loss) | 125,647 | 131,320 |
(Provision) release for loan and lease losses | -32,970 | -31,915 |
Non-interest income (loss) | 19,286 | 17,960 |
Direct non-interest expenses | -64,705 | -71,795 |
Segment (loss) income | 47,258 | 45,570 |
Average earnings assets | 11,940,989 | 12,096,474 |
Mortgage Banking [Member] | ||
Segment Reporting Information [Line Items] | ||
Interest income | 33,876 | 25,748 |
Net (charge) credit for transfer of funds | 11,236 | 8,546 |
Interest expense | 0 | 0 |
Net interest income (loss) | 22,640 | 17,202 |
(Provision) release for loan and lease losses | -6,963 | -3,384 |
Non-interest income (loss) | 3,399 | 3,102 |
Direct non-interest expenses | -8,065 | -9,832 |
Segment (loss) income | 11,011 | 7,088 |
Average earnings assets | 2,492,247 | 1,955,990 |
Consumer Retail Banking [Member] | ||
Segment Reporting Information [Line Items] | ||
Interest income | 49,836 | 55,812 |
Net (charge) credit for transfer of funds | -3,684 | -3,635 |
Interest expense | -5,657 | -6,796 |
Net interest income (loss) | 47,863 | 52,651 |
(Provision) release for loan and lease losses | -16,685 | -20,495 |
Non-interest income (loss) | 12,417 | 10,630 |
Direct non-interest expenses | -31,559 | -32,015 |
Segment (loss) income | 12,036 | 10,771 |
Average earnings assets | 2,045,277 | 2,006,395 |
Commercial And Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Interest income | 34,803 | 42,299 |
Net (charge) credit for transfer of funds | 3,795 | 2,999 |
Interest expense | 0 | 0 |
Net interest income (loss) | 31,008 | 39,300 |
(Provision) release for loan and lease losses | -9,093 | -13,345 |
Non-interest income (loss) | 524 | 1,767 |
Direct non-interest expenses | -7,979 | -12,578 |
Segment (loss) income | 14,460 | 15,144 |
Average earnings assets | 3,028,358 | 3,921,439 |
Treasury And Investments [Member] | ||
Segment Reporting Information [Line Items] | ||
Interest income | 13,067 | 15,583 |
Net (charge) credit for transfer of funds | -7,754 | -5,800 |
Interest expense | -16,007 | -16,761 |
Net interest income (loss) | 4,814 | 4,622 |
(Provision) release for loan and lease losses | 0 | 0 |
Non-interest income (loss) | -100 | 53 |
Direct non-interest expenses | -1,339 | -1,126 |
Segment (loss) income | 3,375 | 3,549 |
Average earnings assets | 2,764,058 | 2,710,930 |
United States Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Interest income | 11,231 | 10,896 |
Net (charge) credit for transfer of funds | -3,593 | -2,110 |
Interest expense | -4,339 | -4,797 |
Net interest income (loss) | 10,485 | 8,209 |
(Provision) release for loan and lease losses | 2,133 | 5,959 |
Non-interest income (loss) | 524 | 441 |
Direct non-interest expenses | -7,183 | -7,220 |
Segment (loss) income | 5,959 | 7,389 |
Average earnings assets | 971,887 | 846,152 |
Virgin Islands Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Interest income | 9,672 | 10,233 |
Net (charge) credit for transfer of funds | 0 | 0 |
Interest expense | -835 | -897 |
Net interest income (loss) | 8,837 | 9,336 |
(Provision) release for loan and lease losses | -2,362 | -650 |
Non-interest income (loss) | 2,522 | 1,967 |
Direct non-interest expenses | -8,580 | -9,024 |
Segment (loss) income | 417 | 1,629 |
Average earnings assets | $639,162 | $655,568 |
SEGMENT_INFORMATION_Reconcilia
SEGMENT INFORMATION - Reconciliation of Reportable Segment Financial Information (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Net Income (Loss): | ||||
Total income for segments and other | $47,258 | $45,570 | ||
Other non-interest income (loss) | 13,443 | [1] | -6,610 | [1] |
Other operating expenses | -27,023 | [2] | -20,990 | [2] |
Income (loss) before income taxes | 33,678 | 17,970 | ||
Income tax expense | -8,032 | -887 | ||
Total consolidated net income (loss) | 25,646 | 17,083 | ||
Average assets: | ||||
Total average earning assets for segments | 11,940,989 | 12,096,474 | ||
Other average earning assets | 0 | [1] | 6,570 | [1] |
Average non-earning assets | 934,999 | 671,146 | ||
Total consolidated average assets | $12,875,988 | $12,774,190 | ||
[1] | The bargain purchase gain on the acquisition of assets and assumption of deposits from Doral Bank in 2015 as well as the activities related to the Bank's equity interest in CPG/GS are presented as an Other non-interest income (loss) and the investment in CPG/GS is presented as Other average earning assets in the tables above. | |||
[2] | Expenses pertaining to corporate administrative functions that support the operating segment 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. |
REGULATORY_MATTERS_COMMITMENTS2
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Commitments | $1,100 | |||
Percentage Of Trust Preferred Securities That Qualify As Tier 1 Capital | 0.00% | 25.00% | ||
Four Major Risk Weightings Categories | (0%, 20%, 50%, and 100%) | |||
Credit Cards [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Commitments | 645.6 | |||
Commercial And Financial Standby Letters Of Credit [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Commitments | 44.5 | |||
Basel III [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Common Equity Tier1 Capital To Risk Weight Assets Ratio | 4.50% | |||
Common Equity Tier 1 Capital Conservation Buffer | 2.50% | |||
Common Equity Tier 1 Capital To Risk Weight Assets Ratio Plus Common Equity Tier 1 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 | 8.00% | |||
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% | |||
Common Equity Tier 1 Capital Conservation Buffer First Year | 0.63% | |||
Threshold For Deductions Of Certain Items From Common Equity Tier 1 Capital | 10.00% | |||
Threshold For Total Deductions From Common Equity Tier 1 Capital | 15.00% | |||
Trust Preferred Securities | $225 | |||
Percentage Of Trust Preferred Securities That Qualify As Tier 1 Capital | 25.00% | |||
Leverage Ratio Composite Rating | 3.00% | |||
Risk Weightings | 150.00% | |||
Supervisory Rating | 1.00% | |||
Basel III [Member] | Well Capitalized [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Tier 1 risk based capital ratio to be considered well capitalzed under PCA | 8.00% | |||
Tier 1 Common equity ratio to be considered well capitalized | 6.50% | |||
FirstBank [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Leverage ratio | 13.28% | 13.04% | ||
Tier 1 risk based capital ratio | 17.61% | 18.10% | ||
Total Risk Based Capital Ratio | 18.89% | 19.37% | ||
Tier 1 risk based capital ratio to be considered well capitalzed under PCA | 8.00% | 6.00% | ||
Total risk based capital to be considered well capitalized under PCA | 10.00% | 10.00% | ||
Leverage ratio to be considered well capitalized under PCA | 5.00% | 5.00% | ||
Common Equity Tier1 Capital To Risk Weight Assets Ratio | 15.62% |
REGULATORY_MATTERS_COMMITMENTS3
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES- Regulatory Capital Positions (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
TierOneLeverageCapitalRequiredForCapitalAdequacyToAverageAssets | 4.00% | |
Holding Company [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital | $1,828,253 | $1,748,120 |
TierOneRiskBasedCapital | 1,537,862 | 1,636,004 |
TierOneLeverageCapital | 1,537,862 | 1,636,004 |
CapitalRequiredForCapitalAdequacy | 761,694 | 709,723 |
TierOneRiskBasedCapitalRequiredForCapitalAdequacy | 571,271 | 354,861 |
TierOneLeverageCapitalRequiredForCapitalAdequacy | 505,698 | 493,159 |
Capital To Risk Weighted Assets | 19.20% | 19.70% |
Tier One Risk Based Capital To Risk Weighted Assets | 16.15% | 18.44% |
Tier One Leverage Capital To Average Assets | 12.16% | 13.27% |
CapitalRequiredForCapitalAdequacyToRiskWeightedAssets | 8.00% | 8.00% |
Tier One Risk Based Capital Required For Capital AdequacyToRiskWeightedAssets | 6.00% | 4.00% |
TierOneLeverageCapitalRequiredForCapitalAdequacyToAverageAssets | 4.00% | |
Common Equity Tier1 Capital To Risk Weight Assets Ratio | 16.15% | |
Common Equity Tier 1 Capital To Risk Weight Assets | 1,537,862 | |
Common Equity Tier 1 Capital To Risk Weight Assets Ratio Capital Adequacy | 4.50% | |
Common Equity Tier 1 Capital To Risk Weight Assets Capital Adequacy | 428,453 | |
FirstBank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital | 1,798,122 | 1,717,432 |
TierOneRiskBasedCapital | 1,676,525 | 1,605,367 |
TierOneLeverageCapital | 1,676,525 | 1,605,367 |
CapitalRequiredForCapitalAdequacy | 761,410 | 709,395 |
TierOneRiskBasedCapitalRequiredForCapitalAdequacy | 571,058 | 354,698 |
TierOneLeverageCapitalRequiredForCapitalAdequacy | 505,036 | 492,468 |
CapitalRequiredToBeWellCapitalized | 951,763 | 886,744 |
TierOneRiskBasedCapitalRequiredToBeWellCapitalized | 761,410 | 532,046 |
Capital To Risk Weighted Assets | 18.89% | 19.37% |
Tier One Risk Based Capital To Risk Weighted Assets | 17.61% | 18.10% |
Tier One Leverage Capital To Average Assets | 13.28% | 13.04% |
CapitalRequiredForCapitalAdequacyToRiskWeightedAssets | 8.00% | 8.00% |
Tier One Risk Based Capital Required For Capital AdequacyToRiskWeightedAssets | 6.00% | 4.00% |
TierOneLeverageCapitalRequiredForCapitalAdequacyToAverageAssets | 4.00% | 4.00% |
Capital Required To Be Well Capitalized To Risk Weighted Assets | 10.00% | 10.00% |
Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets | 8.00% | 6.00% |
Tier One Leverage Capital Required To Be Well Capitalized To Average Assets | 5.00% | 5.00% |
Tier One Leverage Capital Required To Be Well Capitalized | 631,295 | 615,585 |
Common Equity Tier1 Capital To Risk Weight Assets Ratio | 15.62% | |
Common Equity Tier 1 Capital To Risk Weight Assets | 1,486,508 | |
Common Equity Tier 1 Capital To Risk Weight Assets Ratio Capital Adequacy | 4.50% | |
Common Equity Tier 1 Capital To Risk Weight Assets Capital Adequacy | 428,293 | |
Common Equity Tier 1 Capital To Risk Weight Assets Well Capitalized | $618,646 | |
Common Equity Tier 1 Capital To Risk Weight Assets Ratio Well Capitalized | 6.50% |
FIRST_BANCORP_Holding_Company_2
FIRST BANCORP. (Holding Company Only) Financial Information - Statements of Financial Condition (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
ASSETS | |||
Cash and due from banks | $767,471 | $779,147 | |
Money market investments | 216,965 | 16,961 | 16,950 |
Investment securities available for sale, at market: | |||
Other investment securities | 972,501 | 939,700 | |
Carrying Value Of Other Equity Security | 700 | 300 | |
Loans Receivable, net | 9,341,031 | 9,116,997 | |
Other assets | 483,312 | 481,587 | |
Total assets | 13,147,919 | 12,727,835 | |
Liabilities: | |||
Other borrowings | 231,959 | 231,959 | |
Accounts payable and other liabilities | 144,172 | 115,188 | |
Total liabilities | 11,442,169 | 11,056,092 | |
Stockholders Equity | 1,705,750 | 1,671,743 | 1,255,898 |
Total liabilities and stockholders' equity | 13,147,919 | 12,727,835 | |
Holding Company [Member] | |||
ASSETS | |||
Cash and due from banks | 29,726 | 30,380 | |
Money market investments | 6,111 | 6,111 | |
Investment securities available for sale, at market: | |||
Carrying Value Of Other Equity Security | 285 | 285 | |
Loans Receivable, net | 298 | 322 | |
Other assets | 4,617 | 4,357 | |
Total assets | 1,962,023 | 1,926,394 | |
Liabilities: | |||
Other borrowings | 231,959 | 231,959 | |
Accounts payable and other liabilities | 24,314 | 22,692 | |
Total liabilities | 256,273 | 254,651 | |
Stockholders Equity | 1,705,750 | 1,671,743 | |
Total liabilities and stockholders' equity | 1,962,023 | 1,926,394 | |
Holding Company [Member] | Investment In Banking Subsidiary [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | 1,900,671 | 1,866,090 | |
Holding Company [Member] | Non Banking Subsidiary [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | 13,356 | 11,890 | |
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 $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income: | ||
Interest income on investment securities | $12,604 | $15,228 |
Other Interest And Dividend Income | 537 | 500 |
Expense: | ||
Loss before income taxes and equity in undistributed earnings (losses) of subsidiaries | 33,678 | 17,970 |
Income tax expense | -8,032 | -887 |
Net income (loss) | 25,646 | 17,083 |
Other comprehensive income (loss), net of tax | 7,140 | 22,539 |
Comprehensive (loss) income | 32,786 | 39,622 |
Holding Company [Member] | ||
Income: | ||
Other Interest And Dividend Income | 5 | 5 |
Other income | 56 | 53 |
Total interest income | 61 | 58 |
Expense: | ||
Notes payable and other borrowings | 1,817 | 1,760 |
Other operating expenses | 604 | 506 |
Total operating expenses | 2,421 | 2,266 |
Loss before income taxes and equity in undistributed earnings (losses) of subsidiaries | -2,360 | -2,208 |
Income tax expense | 0 | -2 |
Equity in undistributed earnings (losses) of subsidiaries | 28,006 | 19,293 |
Net income (loss) | 25,646 | 17,083 |
Other comprehensive income (loss), net of tax | 7,140 | 22,539 |
Comprehensive (loss) income | $32,786 | $39,622 |