Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | fbp | |
Entity Registrant Name | FIRST BANCORP /PR/ | |
Entity Central Index Key | 1,057,706 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 217,419,933 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Cash and due from banks | $ 518,835 | $ 532,985 | |
Money market investments: | |||
Time deposits with other financial institutions | 2,800 | 3,000 | |
Other short-term investments | 7,308 | 216,473 | |
Total money market investments | 10,108 | 219,473 | |
Investment securities available for sale, at fair value: | |||
Securities pledged that can be repledged | 661,554 | 793,562 | |
Other investment securities | 1,182,299 | 1,092,833 | |
Total investment securities available for sale | 1,843,853 | 1,886,395 | |
Investment securities held to maturity, at amortized cost: | |||
Securities pledged that can be repledged | 0 | 0 | |
Other investment securities | 156,190 | 161,483 | |
Total investment securities held to maturity, fair value of $132,241 (2015- $131,544) | 156,190 | 161,483 | |
Other equity securities | 28,717 | 32,169 | |
Loans, net of allowance for loan and lease losses of $214,070 (2015 - $240,710) | 8,649,584 | 8,871,672 | |
Loans held for sale, at lower of cost or market | 56,779 | 35,869 | |
Total loans, net | 8,706,363 | 8,907,541 | |
Premises and equipment, net | 154,208 | 161,016 | |
Other real estate owned | 139,446 | 146,801 | |
Accrued interest receivable on loans and investments | 41,439 | 48,697 | |
Other assets | 476,094 | 476,459 | |
Total assets | 12,075,253 | 12,573,019 | |
LIABILITIES | |||
Non-interest-bearing deposits | 1,473,528 | 1,336,559 | |
Interest-bearing deposits | 7,507,785 | 8,001,565 | |
Total deposits | 8,981,313 | 9,338,124 | |
Securities sold under agreements to repurchase | [1],[2] | 600,000 | 700,000 |
Advances from the Federal Home Loan Bank (FHLB) | 355,000 | 455,000 | |
Other borrowings | 216,187 | 226,492 | |
Accounts payable and other liabilities | 122,867 | 159,269 | |
Total liabilities | 10,275,367 | 10,878,885 | |
Preferred stock, authorized 50,000,000 shares: | |||
Non-cumulative Perpetual Monthly Income Preferred Stock: issued - 22,004,000 shares, outstanding 1,444,146 shares, aggregate liquidation value of $36,104 | 36,104 | 36,104 | |
Common stock, $0.10 par value, authorized, 2,000,000,000 shares; issued, 218,605,179 shares (2015 - 216,051,128 shares issued) | 21,861 | 21,605 | |
Less: Treasury stock (at par value) | (122) | (96) | |
Common stock outstanding, 217,387,647 shares outstanding (2015 - 215,088,698 shares outstanding) | 21,739 | 21,509 | |
Additional paid-in capital | 930,390 | 926,348 | |
Retained earnings, includes legal surplus reserve of $42,798 | 807,293 | 737,922 | |
Accumulated other comprehensive income (loss) , net of tax of $7,752 | 4,360 | (27,749) | |
Total stockholders' equity | 1,799,886 | 1,694,134 | |
Total liabilities and stockholders' equity | $ 12,075,253 | $ 12,573,019 | |
[1] | As of September 30, 2016, includes $500 million with an average rate of 3.56% that lenders have the right to call before their contractual maturities at various dates beginning on October 11, 2016. In addition, $400 million is tied to variable rates. | ||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Allowance for loan and lease losses | $ 214,070 | $ 214,070 | $ 240,710 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 22,004,000 | 22,004,000 | 22,004,000 |
Preferred stock, shares outstanding | 1,444,146 | 1,444,146 | 1,444,146 |
Preferred stock, liquidation value | $ 36,104 | $ 36,104 | $ 36,104 |
Common stock, par value | $ 0.1 | $ 0.1 | $ 0.1 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 218,605,179 | 218,605,179 | 216,051,128 |
Common stock, shares outstanding | 217,387,647 | 217,387,647 | 215,088,698 |
Income tax expense | $ 10,444 | $ 23,690 | |
Legal Surplus Amount | 42,798 | 42,798 | $ 42,798 |
Held To Maturity Securities Fair Value | 132,241 | $ 132,241 | 131,544 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Income tax expense | $ 7,752 | $ 7,752 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest and dividend income: | ||||
Loans | $ 131,017 | $ 136,597 | $ 398,267 | $ 412,094 |
Investment securities | 11,894 | 12,805 | 40,065 | 40,378 |
Money market investments | 662 | 410 | 3,006 | 1,457 |
Total interest income | 143,573 | 149,812 | 441,338 | 453,929 |
Interest expense: | ||||
Deposits | 16,742 | 16,851 | 51,223 | 51,525 |
Securities sold under agreements to repurchase | 5,363 | 5,216 | 16,868 | 16,997 |
Advances from FHLB | 1,474 | 955 | 4,416 | 2,833 |
Other borrowings | 1,816 | 1,861 | 5,777 | 5,521 |
Total interest expense | 25,395 | 24,883 | 78,284 | 76,876 |
Net interest income | 118,178 | 124,929 | 363,054 | 377,053 |
Provision for loan and lease losses | 21,503 | 31,176 | 63,542 | 138,412 |
Net interest income after provision for loan and lease losses | 96,675 | 93,753 | 299,512 | 238,641 |
Non-interest income: | ||||
Service charges and fees on deposit accounts | 5,788 | 5,082 | 17,206 | 14,856 |
Mortgage banking activities | 5,485 | 4,270 | 15,131 | 12,651 |
Net gain on sale of investments | 6,096 | 0 | 6,104 | 0 |
Other-than-temporary impairment (OTTI) losses on available-for-sale debt securities: | ||||
Total other-than-temporary impairment losses | 0 | 0 | (1,845) | (29,521) |
Portion of other-than-temporary impairment recognized in other comprehensive income (OCI) | 0 | (231) | (4,842) | 16,037 |
Net impairment losses on available-for-sale debt securities | 0 | (231) | (6,687) | (13,484) |
Gain on early extinguishment of debt | 0 | 0 | 4,217 | 0 |
Insurance commission income | 1,363 | 1,265 | 6,174 | 5,809 |
Bargain purchase gain | 0 | 0 | 0 | 13,443 |
Other non-interest income | 7,414 | 8,372 | 22,248 | 24,882 |
Total non-interest income | 26,146 | 18,758 | 64,393 | 58,157 |
Non-interest expenses: | ||||
Employees' compensation and benefits | 38,005 | 37,284 | 113,841 | 110,883 |
Occupancy and equipment | 13,888 | 15,248 | 41,114 | 44,656 |
Business promotion | 3,169 | 4,097 | 11,220 | 10,899 |
Professional fees | 10,672 | 10,709 | 32,775 | 44,932 |
Taxes, other than income taxes | 3,927 | 3,065 | 11,475 | 9,197 |
Insurance and supervisory fees | 5,604 | 6,590 | 20,013 | 20,246 |
Net loss on real estate owned (REO) and REO operations | 2,603 | 4,345 | 9,134 | 11,847 |
Credit and debit card processing expenses | 3,546 | 4,283 | 10,102 | 12,185 |
Communications | 1,711 | 2,189 | 5,244 | 5,842 |
Other non-interest expenses | 5,178 | 5,467 | 15,926 | 17,117 |
Total non-interest expenses | 88,303 | 93,277 | 270,844 | 287,804 |
Income before income taxes | 34,518 | 19,234 | 93,061 | 8,994 |
Income tax expense | (10,444) | (4,476) | (23,690) | (2,664) |
Net income | 24,074 | 14,758 | 69,371 | 6,330 |
Net income attributable to common stockholders | $ 24,074 | $ 14,758 | $ 69,371 | $ 6,330 |
Net income per common share: | ||||
Basic | $ 0.11 | $ 0.07 | $ 0.33 | $ 0.03 |
Diluted | 0.11 | 0.07 | 0.32 | 0.03 |
Dividends declared per common share | $ 0 | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Net gain on sale of investments | $ (6,096) | $ 0 | $ (6,104) | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Net income | $ 24,074 | $ 14,758 | $ 69,371 | $ 6,330 | |
Available-for-sale debt securities on which an other-than-temporary impairment has been recognized: | |||||
Unrealized (loss) gain on debt securities on which an other-than-temporary impairment has been recognized | (2,228) | (457) | (773) | 915 | |
Reclassification adjustment for other-than-temporary impairment on debt securities included in net income | [1] | 0 | 231 | 6,687 | 13,484 |
All other unrealized gains and losses on available-for-sale securities: | |||||
Reclassification Adjustment for net gain included in net income | (6,096) | 0 | (6,104) | 0 | |
All other unrealized holding (losses) gains on available-for-sale securities arising during the period | (3,833) | 16,935 | 32,299 | (718) | |
Other comprehensive (loss) income for the period | (12,157) | 16,709 | 32,109 | 13,681 | |
Total comprehensive income | $ 11,917 | $ 31,467 | $ 101,480 | $ 20,011 | |
[1] | For the nine-month periods ended September 30, 2016 and 2015, approximately $6.3 million and $12.9 million, respectively, of the credit impairment recognized in earnings consisted of credit losses on Puerto Rico Government debt securities and $0.4 million and $0.6 million, respectively, was associated with credit losses on private label MBS. |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Cash flows from operating activities: | |||
Net income | $ 69,371,000 | $ 6,330,000 | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 13,359,000 | 15,923,000 | |
Amortization and impairment of intangible assets | 3,669,000 | 3,817,000 | |
Provision for loan and lease losses | 63,542,000 | 138,412,000 | |
Deferred income tax expense (benefit) | 19,153,000 | (102,000) | |
Stock-based compensation | 5,132,000 | 4,535,000 | |
Gain on sales of investments | (6,104,000) | 0 | |
Gain on early extinguishment of debt | (4,217,000) | 0 | |
Other-than-temporary impairments on debt securities | [1] | 6,687,000 | 13,484,000 |
Unrealized loss (gain) on derivative instruments | 19,000 | (47,000) | |
Net gain on disposition of premises and equipment and other assets | (686,000) | (137,000) | |
Net gain on sales of loans | (7,794,000) | (5,312,000) | |
Net amortization/accretion of premiums, discounts and deferred loan fees and costs | (6,629,000) | (4,244,000) | |
Originations and purchases of loans held for sale | (354,006,000) | (323,565,000) | |
Sales and repayments of loans held for sale | 355,636,000 | 329,635,000 | |
Amortization of broker placement fees | 2,300,000 | 3,564,000 | |
Net amortization/accretion of premium and discounts on investment securities | 4,503,000 | 6,431,000 | |
Decrease in accrued interest receivable | 7,258,000 | 3,894,000 | |
(Decrease) increase in accrued interest payable | (27,865,000) | 3,297,000 | |
(Increase) decrease in other assets | (10,275,000) | 8,478,000 | |
(Decrease) increase in other liabilities | (13,944,000) | 8,175,000 | |
Bargain purchase gain | 0 | (13,443,000) | |
Net cash provided by operating activities | 119,109,000 | 199,125,000 | |
Cash flows from investing activities: | |||
Principal collected on loans | 2,174,933,000 | 2,223,880,000 | |
Loans originated and purchased | (2,085,444,000) | (2,180,333,000) | |
Proceeds from sale of loans held for investment | 20,186,000 | 107,702,000 | |
Proceeds from sale of repossessed assets | 43,093,000 | 48,195,000 | |
Proceeds from sale of available-for-sale securities | 219,780,000 | 0 | |
Purchases of available-for-sale securities | (420,513,000) | (161,366,000) | |
Purchases of securities held to maturity | 0 | 4,530,000 | |
Proceeds from principal repayments and maturities of available-for-sale securities | 270,345,000 | 212,972,000 | |
Proceeds from principal repayments and maturities of held-to-maturity securities | 5,293,000 | 5,068,000 | |
Additions to premises and equipment | (8,239,000) | (9,594,000) | |
Proceeds from sale of premises and equipment and other assets | 2,265,000 | 2,511,000 | |
Net cash received from acquisition | 0 | 217,659,000 | |
Net cash outflows from purchase/sale of insurance contracts | (960,000) | 0 | |
Net redemptions (purchases) of other equity securities | (3,452,000) | 567,000 | |
Net cash provided by investing activities | 224,191,000 | 461,597,000 | |
Cash flows from financing activities: | |||
Net decrease in deposits | (358,930,000) | (294,126,000) | |
Repayment of FHLB advances | (100,000,000) | 0 | |
Repurchase of outstanding common stock | (860,000) | (967,000) | |
Change in securities sold under agreements to repurchase | (100,000,000) | (200,000,000) | |
Repayment of junior subordinated debentures | (7,025,000) | 0 | |
Net cash used in financing activities | (566,815,000) | (495,093,000) | |
Net (decrease) increase in cash and cash equivalents | (223,515,000) | 165,629,000 | |
Cash and cash equivalents at beginning of period | 752,458,000 | 796,108,000 | |
Cash and cash equivalents at end of period | 528,943,000 | 961,737,000 | |
Cash and cash equivalents include: | |||
Cash and Cash Equivalents, at Carrying Value, Total | $ 752,458,000 | $ 796,108,000 | |
[1] | For the nine-month periods ended September 30, 2016 and 2015, approximately $6.3 million and $12.9 million, respectively, of the credit impairment recognized in earnings consisted of credit losses on Puerto Rico Government debt securities and $0.4 million and $0.6 million, respectively, was associated with credit losses on private label MBS. |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] |
Total stockholders' equity | $ 21,298 | $ 916,067 | $ 716,625 | $ (18,351) | ||
Total stockholders' equity | $ 1,700,950 | $ 36,104 | 21,298 | 916,067 | 716,625 | (18,351) |
Balance at beginning of period at Dec. 31, 2014 | 21,298 | 916,067 | 716,625 | (18,351) | ||
Common stock issued for compensation | 33 | (33) | ||||
Common stock withheld for taxes | (18) | (949) | ||||
Restricted stock grants | 102 | (102) | ||||
Restricted stock forfeited | (2) | 2 | ||||
Stock-based compensation | 4,535 | |||||
Net income | 6,330 | 6,330 | ||||
Other comprehensive income (loss), net of tax | 13,681 | 13,681 | ||||
Common stock issued in exchange for trust preferred securities | 85 | 5,543 | ||||
Balance at end of period at Sep. 30, 2015 | 1,700,950 | 36,104 | 21,498 | 925,063 | 722,955 | (4,670) |
Total stockholders' equity | 1,700,950 | 36,104 | 21,498 | 925,063 | 722,955 | (4,670) |
Total stockholders' equity | 1,694,134 | 21,509 | 926,348 | 737,922 | (27,749) | |
Total stockholders' equity | 1,799,886 | 36,104 | 21,509 | 926,348 | 737,922 | (27,749) |
Balance at beginning of period at Dec. 31, 2015 | 1,694,134 | 21,509 | 926,348 | 737,922 | (27,749) | |
Common stock issued for compensation | 63 | (63) | ||||
Common stock withheld for taxes | (26) | (834) | ||||
Restricted stock grants | 193 | (193) | ||||
Restricted stock forfeited | 0 | 0 | ||||
Stock-based compensation | 5,132 | |||||
Net income | 69,371 | 69,371 | ||||
Other comprehensive income (loss), net of tax | 32,109 | 32,109 | ||||
Common stock issued in exchange for trust preferred securities | 0 | 0 | ||||
Balance at end of period at Sep. 30, 2016 | 1,799,886 | 36,104 | 21,739 | 930,390 | 807,293 | 4,360 |
Total stockholders' equity | $ 1,799,886 | $ 36,104 | $ 21,739 | $ 930,390 | $ 807,293 | $ 4,360 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2016 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 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, 2015. 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, 2015, which are included in the Corporation’s 2015 Annual Report on Form 10-K. All adjustments (consisting only of normal recurring a djustments) 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 intercompany accounts and transactions have been eliminated in consolidation. During the second quarter of 2016, the Corporation reviewed its historical accounting treatment as loans of its $156.2 million of financing arrangements with Puerto Rico municipalities issued in bond form, but underwritte n as loans with features that are typically found in commercial loan transactions. This review came as a result of the determination of the Federal Reserve Board that the transactions must be treated for regulatory reporting purposes as investment securiti es. The Puerto Rico Municipal Finance Act (the “Act”) requires the designation of financing arrangements obtained by municipalities with maturities greater than 8 years as “special obligation bonds” subject to specific provisions under the Act. The Corpo ration concluded that the impact of accounting for the transactions as investment securities rather than loans does not have a material effect on previously reported results of operations, financial condition, or cash flows and, accordingly, these financin g arrangements have been accounted for and reported as held-to-maturity investment securities and not as loans since the second quarter of 2016. The results of operations for the quarter and nine-month period ended September 30, 2016 are not necessarily i ndicative 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 March 2016, the FASB updated the Accounting Standards Codification (the “Codification” or the “ASC”) to simplify certain aspects of the accounting for share-based payment transact ions. The main provisions in this Update include: (i) recognition of all tax benefits and tax deficiencies (including tax benefits of dividends on share-base payment awards) as income tax expense or benefit in the income statement, (ii) classification of t he excess tax benefit along with other income tax cash flows as an operating activity, (iii) an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occ ur, (iv) a threshold to qualify for equity classification which permits withholding up to the maximum statutory tax rates in the applicable jurisdictions, and (v) classification of cash paid by an employer as a financing activity when the payment results f rom the withholding of shares for tax withholding purposes. In addition to those simplifications, the amendments eliminate the guidance in ASC 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Bas ed Payment . This should not result in a change in practice because the guidance that is being superseded was never effective. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, an d interim periods within those annual periods. The Corporation is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In March 2016, the FASB updated the Codification to require an equity method investor to add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accoun ting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. Also, this Update requires that an entity that has an available-for sale equity security that becomes qualified for the equity me thod of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments in this Update are effective for all entit ies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that res ult in the adoption of the equity method. Earlier application is permitted. The Corporation is currently evaluating the impact of the adoption of this guidance, if any, on its consolidated financial statements. In June 2016, the FASB updated the Codificat ion and issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for- sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origin ation. The new model, referred to as the current expected credit losses (CECL) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost and (2) certain off-balance sheet credit exposures. This includes loans, held- to-maturity debt securities, loan commitments, financial guarantees, and net investments in leases, as well as reinsurance and trade receivables. Upon initial recognition of the exposure, the CECL model requires an entity to estimate the credit losses expe cted over the life of an exposure (or pool of exposures). The estimate of expected credit losses (ECL) should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments. Financial inst ruments with similar risk characteristics should be grouped together when estimating ECL. The ASU does not prescribe a specific method to make the estimate so its application will require significant judgment. Generally, upon initial recognition of a financial asset the estimate of the ECL will be recorded through an allowance for loan and lease losses with an offset to current earnings. Subsequently, the ECL will need to be reassessed each period, and both negative and positive changes to the estimate will be recognized through an adjustment to the allowance for loan and lease losses and earnings. The ASU amends the current other-than-temporary impairment (OTTI) model for available-for-sale debt securities. The new available-for-sale debt security mode l will require an estimate of ECL only when the fair value is below the amortized cost of the asset. The length of time the fair value of an available-for-sale debt security has been below the amortized cost will no longer impact the determination of wheth er a credit loss exists. As such, the new available-for-sale debt security model is not an OTTI model. In addition, credit losses on available-for-sale debt securities will now be limited to the difference between the security’s amortized cost basis and it s fair value. The available-for-sale debt security model will also require the use of an allowance to record estimated credit losses (and subsequent recoveries). The purchased financial assets with credit deterioration (PCD) model applies to purchased fin ancial assets (measured at amortized cost or available-for-sale ) that have experienced more than insignificant credit deterioration since origination. This represents a change from the scope of what are considered purchased credit-impaired assets under tod ay’s model. In contrast to the accounting for originated or purchased assets that do not qualify as PCD, the initial estimate of expected credit losses for a PCD would be recognized through an allowance for loan and lease losses with an offset to the cost basis of the related financial asset at acquisition (i.e., there is no impact to net income at initial recognition). Subsequently, the accounting will follow the applicable CECL or available-for-sale debt security impairment model with all adjustments of t he allowance for loan and lease losses recognized through earnings. Beneficial interests classified as held-to-maturity or available-for-sale will need to apply the PCD model if the beneficial interest meets the definition of PCD or if there is a significa nt difference between contractual and expected cash flows at initial recognition. In general, the new guidance will require modified retrospective application to all outstanding instruments, with a cumulative effect adjustment recorded to opening retained earnings as of the beginning of the first period in which the guidance becomes effective. However, prospective application is required for PCD assets previously accounted for under ASC 310-30 and for debt securities for which an other -than-temporary impai rment was recognized prior to the date of adoption. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models , and methods for estimating the allowance for loan and lease losses . In addition, public business entities w ill need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination (i.e., by vintage year). The ASU will be effective for public business entities that are SEC filer s in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early application of the guidance will be permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Corporation is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements . In August 2016, the FASB updated the Codification to provide specific guidance on the classification and presentation of certain cash payments and cash receipts in the statement of cash flows. This guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The amendments in this Update provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs: Cash payments for debt prepayment or debt extinguishment costs should be classified as cash outflows for financing activities; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing: At the settlement of zero-coupon debt instruments or other debt instruments with coupon interest rate s that are insignificant in relation to the effective interest rate of the borrowing, the issuer should classify the portion of the cash payment attributable to the accreted interest related to the debt discount as cash outflows for operating activities, a nd the portion of the cash payment attributable to the principal as cash outflows for financing activities; (3) Contingent Consideration Payments Made after a Business Combination: Cash payments not made soon after the acquisition date of a business combin ation by an acquirer to settle a contingent consideration liability should be separated and classified as cash outflows for financing activities and operating activities. Cash payments up to the amount of the contingent consideration liability recognized a t the acquisition date (including measurement-period adjustments) should be classified as financing activities; any excess should be classified as operating activities. Cash payments made soon after the acquisition date of a business combination by an acqu irer to settle a contingent consideration liability should be classified as cash outflows for investing activities; (4) Proceeds from the Settlement of Insurance Claims: Cash proceeds received from the settlement of insurance claims should be classified on the basis of the related insurance coverage (that is, the nature of the loss). For insurance proceeds that are received in a lump-sum settlement, an entity should determine the classification on the basis of the nature of each loss included in the settlem ent; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies: Cash proceeds received from the settlement of corporate-owned life insurance policies should be classified as cash inflows from investing activities. The cash payments for premiums on corporate-owned policies may be classified as cash outflows for investing activities, operating activities, or a combination of investing and operating activities; (6) Distributions Received from Equi ty Method Investees: When a reporting entity applies the equity method, it should make an accounting policy election to classify distributions received from equity method investees using either of the following approaches: a. Cumulative earnings approach: Distributions received are considered returns on investment and classified as cash inflows from operating activities, unless the investor’s cumulative distributions received less distributions received in prior periods that were determined to be returns of investment exceed cumulative equity in earnings recognized by the investor. When such an excess occurs, the current-period distribution up to this excess should be considered a return of investment and classified as cash inflows from investing activities. b. Nature of the distribution approach: Distributions received should be classified on the basis of the nature of the activity or activities of the investee that generated the distribution as either a return on investment (classified as cash inflows from operating activities) or a return of investment (classified as cash inflows from investing activities) when such information is available to the investor. If an entity elects to apply the nature of the distribution approach and the information to apply tha t approach to distributions received from an individual equity method investee is not available to the investor, the entity should report a change in accounting principle on a retrospective basis by applying the cumulative earnings approach in (a) for that investee. In such situations, an entity should disclose that a change in accounting principle has occurred with respect to the affected investee(s) due to the lack of available information and should provide the disclosures required in paragraphs 250-10-5 0-1(b) and 250-10-50-2, as applicable. This amendment does not address equity method investments measured using the fair value option; (7) Beneficial Interests in Securitization Transactions: A transferor’s beneficial interest obtained in a securitization of financial assets should be disclosed as a non cash activity, and cash receipts from payments on a transferor’s beneficial interests in securitized trade receivables should be classified as cash inflows from investing activities; (8) Separately Identifia ble Cash Flows and Application of the Predominance Principle: The classification of cash receipts and payments that have aspects of more than one class of cash flows should be determined first by applying specific guidance in generally accepted accounting principles (GAAP). In the absence of specific guidance, an entity should determine each separately identifiable source or use within the cash receipts and cash payments on the basis of the nature of the underlying cash flows. An entity should then classify each separately identifiable source or use within the cash receipts and payments on the basis of their nature in financing, investing, or operating activities. In situations in which cash receipts and payments have aspects of more than one class of cash f lows and cannot be separated by source or use, the appropriate classification should depend on the activity that is likely to be the predominant source or use of cash flows for the item. For public business entities, the amendments in this Update are effec tive for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Corporation is currently evaluating the impact of the adoption of this gui dance, if any, on its consolidated financial statements. In October 2016, the FASB updated the Codification to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. With this Update, entities are required to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory, when the transfer occurs. Under current GAAP, the recognition of current and deferred income taxes for an intra-entity assets transfer is p rohibited until the assets are sold to an outside party. This Update does not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity t ransfer of an asset other than inventory. For example, GAAP requires an entity to disclose a comparison of income tax expense (benefit) with statutory expectations (a rate reconciliation for public entities or a description of the nature of each significan t reconciling item for nonpublic entities) and also requires an entity to disclose the types of temporary differences and carryforwards that give rise to a significant portion of deferred income taxes. For public business entities, the amendments in this U pdate are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities as of the beginning of an annual reporting period fo r which financial statements (interim or annual) have not been issued or made available for issuance. The Corporation is currently evaluating the impact of the adoption of this guidance, if any, on its consolidated financial statements. In October 2016, the FASB updated the Codification to modify the criteria used by a reporting entity when determining if it is the primary beneficiary of a variable interest entity (“VIE”) when the entities are under common control and the reporting ent ity has indirect interests in the VIE through related parties. If the reporting entity meets the first criteria in that it has the power to direct the activities of the VIE that are most significant to its economic performance, it is required to consider a ll interests held indirectly through related entities in determining if it meets the second criterion, the obligation to absorb losses of the VIE, or the right to receive benefits from it that are potentially significant to the VIE. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Corporation is currently ev aluating the impact of the adoption of this guidance, if any, on its consolidated financial statements. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2016 | |
EARNINGS PER COMMON SHARE | NOTE 2 – EARNINGS PER COMMON SHARE The calculations of earnings per common share for the quarters and nine-month periods ended September 30, 2016 and 2015 are as follows: Quarter Ended Nine-Month Period Ended September 30, September 30, 2016 2015 2016 2015 (In thousands, except per share information) Net income $ 24,074 $ 14,758 $ 69,371 $ 6,330 Net income attributable to common stockholders $ 24,074 $ 14,758 $ 69,371 $ 6,330 Weighted-Average Shares: Average common shares outstanding 212,927 211,820 212,682 211,255 Average potential dilutive common shares 3,651 1,963 2,577 1,341 Average common shares outstanding- assuming dilution 216,578 213,783 215,259 212,596 Earnings per common share: Basic $ 0.11 $ 0.07 $ 0.33 $ 0.03 Diluted $ 0.11 $ 0.07 $ 0.32 $ 0.03 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, i ncluding any dividends declared and any cumulative dividends related to the current dividend period that have not been declared as o f the end of the period. 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 am ount of compensation cost attributable to future services, are used to purchase common stock at the exercise date. The difference between the number of potential shares issued and the 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 shares purchased under the treasury stock method are not included in th e 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 34,989 and 69,848 as of September 30, 2016 and 2015, respectively . |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2016 | |
STOCK-BASED COMPENSATION | NOTE 3 – 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. A ll outstanding awards granted under this plan have continued in full force and effect since then, subject to their original terms. No awards of shares could be granted under the 199 7 stock option plan as of its expiration. The activity of stock options granted under the 1997 stock option plan for the nine-month period ended September 30, 2016 is set forth below: Weighted-Average Remaining Aggregate Number of Weighted-Average Contractual Term Intrinsic Value Options Exercise Price (Years) (In thousands) Beginning of period outstanding and exercisable 69,848 $ 160.30 Options expired (34,326) 183.37 Options cancelled (533) 138.00 End of period outstanding and exercisable 34,989 $ 138.00 0.3 $ - On May 24, 2016, the Corporation’s stockholders approved the amendment and restatement of the First BanCorp Omnibus Incentive Plan, as amended (the “Omnibus Plan”), to, among other things, increase the number of shares of Common Stock reserved for issuance under the Omnibus Plan, to extend the term of the Omnibus Plan to May 24, 2026 and to re-approve the mater ial terms of the performance goals under the Omnibus Plan for purposes of Section 162(m) of the U.S. Internal Revenue Code of 1986, as amended. The Omnibus Plan provides for equity-based compensation incentives (the “awards”) through the grant of stock opt ions, stock appreciation rights, restricted stock, restricted stock units, performance shares, cash-based awards and other stock-based awards. The Omnibus Plan authorizes the issuance of up to 14,169,807 shares of common stock, subject to adjustments for s tock splits, reorganizations, and other similar events. As of September 30, 2016, 6,924,391 shares of common stock were available for issuance under the Omnibus Plan. The Corporation’s Board of Directors, upon receiving the relevant recommendation of the C ompensation 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 nine months of 2016, 130,873 shares of restricted stock were awarded to the Corporation’s independent directors subject to a one-year vesting period. Also during the first nine months of 2016, the Corporation issue d 1,794,702 shares of restricted stock to employees subject to vesting periods that range from 2 to 3 years. Included in those 1,794,702 shares of restricted stock are 1,546,137 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 exce ed 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. Specifica lly, 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 senior officers covered by TARP are restricted from transferring the shares. The U.S. Treasury confirmed that, effective March 2014, it has recovered more than 25 % of its investment i n First BanCorp. Therefore, the restriction s on transfer relating to 25% of certain shares granted under T ARP requirements have been released. The fair value of the shares of restricted stock granted in the first nine months of 2016 was based on the market price of the Corporation’s outstanding common stock on the date of the grant. For t he 1,546,137 shares of restricted stock granted under the TARP requirements, the market price was discounted due to TARP transferability restriction s. For purposes of determining the awards’ fair value , the Corporation estimated an appreciation of 1 4 % 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 Corpora tion’s stock and assumed that the U.S. Treasury would hold the common stock of the Corporation that it currently owns for a period not to exceed two years, resulting in a fair value of $ 1.43 for each share of restricted stock granted under the TARP require ments. 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 the first nine months of 2016 under the Omnibus Plan for both executive officers covered by the TARP requirements and other employees as well as for the independent directors: Nine-Month Period Ended September 30, 2016 Number of shares Weighted-Average of restricted Grant Date stock Fair Value Non-vested shares at beginning of year 2,968,461 $ 3.34 Granted 1,925,575 1.87 Forfeited (1,000) 6.03 Vested (683,713) 3.80 Non-vested shares at September 30, 2016 4,209,323 $ 2.59 For the quarter and nine-month period ended September 30, 2016, the Corporation recognized $ 1.0 million and $ 2.9 million, respectively, of stock-based compensation expense related to restricted stock awards, compared to $ 0.9 million and $ 2.9 million for the same periods in 2015. As of September 30, 2016, there was $ 4.6 million of total unrecognized compensation cost related to nonvested shares of restricted stock. The weighted average period over which the Corporation expects to recognize such cost is 1.4 years. During the first nine months of 2015, 219,531 shares of restricted stock were awarded to the Corporation’s independent directors subject to vesting periods that range from 1 to 5 years. In addition, during the first nine months of 2015, the Corporation issued 793,964 shares of restricted stock to employees subject to vesting periods that range from 3 months to 3 years. Included in those 793,964 shares of restricted stock are 615,464 shares granted to certain senior officers consistent with t he 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 nine months 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 the post-vesting restrictions. For purposes of computing the discount, 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 t he U.S. Treasury would hold the common stock of the Corporation that it owned as of the date of the grants for a period not to exceed one year, resulting in a fair value of $ 3.18 for restricted shares granted under the TARP requirements. Stock-based comp ensation accounting guidance requires the Corporation to reverse compensation expense for any awards that were forfeited due to employee or director turnover. Approximately $ 5 thousand and $ 36 thousand of compensation expense was reversed during the first nine months of 201 6 and 201 5 , 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 nine months of 201 6 , the Corporation issued 629,476 shares of common stock (first nine months of 2015 – 330,254 shares) with a weighted average market value of $ 3.60 (first nine months of 2015 – $ 5.14 ) as salary stock compensation. This resulted in a compensation expense of $ 2.2 million recorded in the first nine months of 201 6 (first nine months of 2015 – $ 1.7 million) . For t he first nine months of 201 6 , the Corporation withheld 189,604 shares (first nine months of 2015 – 108,731 shares) from the common stock paid to certain senior officers as additional compensation and 65,498 shares of restricted stock that vested during the first nine months of 201 6 (first nine months of 2015 – 72,918 ) to cover employees’ payroll and income tax withholding liabilities; these shares are held as treasury shares. The Corporation paid any fractional share of salary st ock that the officer was entitled to in cash. In the consolidated financial statements, the Corp oration treats shares withheld for tax purposes as common stock repurchases. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2016 | |
INVESTMENT SECURITIES | NOTE 4 – 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, and weighted average yield of investment securities available for sale by contractual maturities as of September 30, 2016 and December 31, 201 5 were as follows: September 30, 2016 Amortized cost Noncredit Loss Component of OTTI Recorded in OCI Fair value Weighted average yield% Gross Unrealized gains losses (Dollars in thousands) U.S. Treasury securities: Due within one year $ 7,513 $ - $ 1 $ - $ 7,514 0.57 Obligations of U.S. government-sponsored agencies: Due within one year 9,629 - 4 - 9,633 0.70 After 1 to 5 years 496,782 - 3,215 53 499,944 1.32 After 10 years 44,724 - 7 133 44,598 0.87 Puerto Rico government obligations: After 1 to 5 years 21,423 12,023 - - 9,400 4.38 After 5 to 10 years 845 - 6 - 851 5.20 After 10 years 21,205 3,196 116 1,556 16,569 5.39 United States and Puerto Rico government obligations 602,121 15,219 3,349 1,742 588,509 1.53 Mortgage-backed securities: FHLMC certificates: After 5 to 10 years 6,314 - 145 - 6,459 2.31 After 10 years 251,516 - 3,504 62 254,958 2.10 257,830 - 3,649 62 261,417 2.10 GNMA certificates: Due within one year 1 - - - 1 1.69 After 1 to 5 years 93 - 3 - 96 3.85 After 5 to 10 years 98,314 - 2,557 - 100,871 3.05 After 10 years 131,216 - 12,532 - 143,748 4.37 229,624 - 15,092 - 244,716 3.81 FNMA certificates: After 1 to 5 years 22,594 - 452 - 23,046 1.99 After 5 to 10 years 26,448 - 577 19 27,006 2.06 After 10 years 602,540 - 14,534 20 617,054 2.31 651,582 - 15,563 39 667,106 2.29 Collateralized mortgage obligations issued or guaranteed by the FHLMC and GNMA: After 5 to 10 years 19,853 - 7 33 19,827 1.18 After 10 years 39,530 - 25 7 39,548 1.21 59,383 - 32 40 59,375 1.20 Other mortgage pass-through trust certificates: After 5 to 10 years 81 - - - 81 7.20 After 10 years 30,606 8,476 - - 22,130 2.37 30,687 8,476 - - 22,211 2.37 Total mortgage-backed securities 1,229,106 8,476 34,336 141 1,254,825 2.48 Other After 1 to 5 years 100 - - - 100 1.50 Equity Securities (1) 413 - 6 - 419 2.15 Total investment securities available for sale $ 1,831,740 $ 23,695 $ 37,691 $ 1,883 $ 1,843,853 2.17 (1) Equity securities consisted of investment in a Community Reinvestment Act Qualified Investment Fund. December 31, 2015 Amortized cost Noncredit Loss Component of OTTI Recorded in OCI Fair value Weighted average yield% Gross Unrealized gains losses (Dollars in thousands) U.S. Treasury securities: After 1 to 5 years $ 7,530 $ - $ - $ 33 $ 7,497 0.57 Obligations of U.S. government-sponsored agencies: Due within one year 14,624 - 4 10 14,618 0.68 After 1 to 5 years 384,323 - 174 4,305 380,192 1.32 After 5 to 10 years 58,150 - 343 242 58,251 2.34 Puerto Rico Government obligations: After 1 to 5 years 25,663 14,662 - - 11,001 4.38 After 5 to 10 years 855 - - - 855 5.20 After 10 years 23,162 5,255 134 1,680 16,361 5.40 United States and Puerto Rico Government obligations 514,307 19,917 655 6,270 488,775 1.75 Mortgage-backed securities: FHLMC certificates: After 5 to 10 years 336 - 31 - 367 4.95 After 10 years 287,711 - 1,073 1,706 287,078 2.14 288,047 - 1,104 1,706 287,445 2.15 GNMA certificates: Due within one year 2 - - - 2 1.70 After 1 to 5 years 109 - 5 - 114 4.26 After 5 to 10 years 120,298 - 3,182 - 123,480 3.07 After 10 years 165,175 - 12,822 20 177,977 4.38 285,584 - 16,009 20 301,573 3.83 FNMA certificates: After 1 to 5 years 2,552 - 74 - 2,626 3.32 After 5 to 10 years 21,557 - 433 233 21,757 2.73 After 10 years 759,247 - 5,628 6,063 758,812 2.34 783,356 - 6,135 6,296 783,195 2.35 Other mortgage pass-through trust certificates: After 5 to 10 years 92 - 1 - 93 7.26 After 10 years 34,905 9,691 - - 25,214 2.26 34,997 9,691 1 - 25,307 2.26 Total mortgage-backed securities 1,391,984 9,691 23,249 8,022 1,397,520 2.61 Other After 1 to 5 years 100 - - - 100 1.50 Total investment securities available for sale $ 1,906,391 $ 29,608 $ 23,904 $ 14,292 $ 1,886,395 2.38 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 a re 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 September 30, 2016 and December 31, 201 5 . 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. For u nrealized losses for which OTTI was recognized, the rela ted credit loss was charged against the amortized cost basis of the debt security. As of September 30, 2016 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 $ - $ - $ 21,688 $ 16,775 $ 21,688 $ 16,775 U.S. Treasury and U.S. government agencies obligations 60,970 186 - - 60,970 186 Mortgage-backed securities: FNMA 18,245 39 - - 18,245 39 FHLMC 54,269 62 - - 54,269 62 Collateralized mortgage obligations issued or guaranteed by FHLMC and GNMA 31,896 40 - - 31,896 40 Other mortgage pass-through trust certificates - - 22,130 8,476 22,130 8,476 Equity securities 2 - - - 2 - $ 165,382 $ 327 $ 43,818 $ 25,251 $ 209,200 $ 25,578 As of December 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 $ - $ - $ 23,008 $ 21,597 $ 23,008 $ 21,597 U.S. Treasury and U.S. government agencies obligations 198,243 929 210,504 3,661 408,747 4,590 Mortgage-backed securities: FNMA 437,305 4,516 88,013 1,780 525,318 6,296 FHLMC 141,890 1,338 19,306 368 161,196 1,706 GNMA 1,047 20 - - 1,047 20 Other mortgage pass-through trust certificates - - 25,214 9,691 25,214 9,691 $ 778,485 $ 6,803 $ 366,045 $ 37,097 $ 1,144,530 $ 43,900 Assessment for OTTI on Available-For-Sale Securities Debt securities issued by U.S. government agencies, U.S. government-sponsored entities and the U.S. Treasu ry accounted for approximately 97 % of the total availabl e-for-sale portfolio as of September 3 0 , 2016 and no credit losses are expected, given the explicit and implicit guarantees provided by the U.S. federal government. The Corporation’s OTTI assessment was concentrated mainly on available-for-sale Puerto Rico Government debt securities , with an amortized cost of $ 43.5 million, and on private label mortgage-backed securities (“MBS”) with an amortized cost of $ 30.6 million , and for which credit losses are evaluated on a quarterly basis. The Corporation considered the following factors in determining whether a credit loss exists and the period over which the debt security is expected to recover: The length of time and the extent to which the fair value has been less than the amortized cost basis; Any adverse change to the credit condition s and liquidity of the issuer, taking into consideration the latest informat ion available about the financial condition of the issuer, credit ratings, the failure of the issuer to make scheduled principal or interest payments, recent legislation and govern ment actions affecting the issuer’s industry and actions taken by the issuer to deal with the present economic climate ; Changes in the near term prospects of the underlying collateral of a security , if any, such as changes in default rates, loss severity g iven default , and significant changes in prepayment assumptions; and The level of cash flows generated from the underlying collateral , if any, supporting the principal and interest payments of the debt securities. T he Corporation recorded OTTI losses on available-for-sale debt securities as follows: Quarter Ended Nine-Month Period Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Total other-than-temporary impairment losses $ - $ - $ (1,845) $ (29,521) Portion of other-than-temporary impairment recognized in OCI - (231) (4,842) 16,037 Net impairment losses recognized in earnings (1) $ - $ (231) $ (6,687) $ (13,484) (1) For the nine-month periods ended September 30, 2016 and 2015, approximately $6.3 million and $12.9 million, respectively, of the credit impairment recognized in earnings consisted of credit losses on Puerto Rico Government debt securities and $0.4 million and $0.6 million, respectively, was associated with credit losses on private label MBS. The following tables summarize the roll-forward of credit losses on debt securities held by the Corporation for which a portion of an OTTI is recognized in OCI: Cumulative OTTI credit losses recognized in earnings on securities still held Credit impairments Credit impairments June 30, recognized in earnings recognized in earnings on September 30, 2016 on securities not securities that have been 2016 Balance previously impaired previously impaired Balance (In thousands) Available-for-sale securities Puerto Rico Government obligations $ 22,189 $ - $ - $ 22,189 Private label MBS 6,792 - - 6,792 Total OTTI credit losses for available-for-sale debt securities $ 28,981 $ - $ - $ 28,981 Cumulative OTTI credit losses recognized in earnings on securities still held Credit impairments Credit impairments December 31, recognized in earnings recognized in earnings on September 30, 2015 on securities not securities that have been 2016 Balance previously impaired previously impaired Balance (In thousands) Available-for-sale securities Puerto Rico Government obligations $ 15,889 $ - $ 6,300 $ 22,189 Private label MBS 6,405 - 387 6,792 Total OTTI credit losses for available-for-sale debt securities $ 22,294 $ - $ 6,687 $ 28,981 Cumulative OTTI credit losses recognized in earnings on securities still held Credit impairments Credit impairments June 30, recognized in earnings recognized in earnings on September 30, 2015 on securities not securities that have been 2015 Balance previously impaired previously impaired Balance (In thousands) Available-for-sale securities Puerto Rico Government obligations $ 12,856 $ - $ - $ 12,856 Private label MBS 6,174 - 231 6,405 Total OTTI credit losses for available-for-sale debt securities $ 19,030 $ - $ 231 $ 19,261 Cumulative OTTI credit losses recognized in earnings on securities still held Credit impairments Credit impairments December 31, recognized in earnings recognized in earnings on September 30, 2014 on securities not securities that have been 2015 Balance previously impaired previously impaired Balance (In thousands) Available-for-sale securities Puerto Rico Government obligations $ - $ 12,856 $ - $ 12,856 Private label MBS 5,777 - 628 6,405 Total OTTI credit losses for available-for-sale debt securities $ 5,777 $ 12,856 $ 628 $ 19,261 In the first quarter of 2016, the Corporation recorded a $ 6.3 million OTTI charge on three Puerto Rico Government debt securities held by the Corporation as part of its available-for-sale securities portfolio, specifically bonds of the GDB maturing on February 1, 2019 and the Puerto Rico Public Buildings Authority maturing on July 1, 2028 . This was the third OTTI charge on these securities recorded since June 30, 2015, as OTTI charges of $ 12.9 million and $ 3.0 million were booked in the second and fourt h qu arters of 2015, respectively, and reduced the amortized cost basis of these three Puerto Rico Government debt securities to $ 35.6 million as of September 30, 2016, including accrued interest of $ 0.9 million. During the first nine months of 2016, in consideration of the latest available information about the Puerto Rico Government’s financial condition, including the enactment of a debt moratorium law and the declaration of a state of emergency at the GDB, the issuance of the GDB and the Commonwealth ’s audited financial statements for the fiscal year ended June 30, 2014 , as well as the issuance of exchange proposals with the Commonwealth’s creditors related to its outstanding bond obligations, the Corporation applied a discounted cash flow analysis to its Puerto Rico Government debt securities in order to calculate the cash flows expected to be collected and to determine if any portion of the decline in market value of these securities was considered a credit-related other-than-temporary impairment. The analysis derives an estimate of value base d on the present value of risk-adjusted cash flows of the underlying securities and included the following components: The contractual future cash flows of the bonds are projected based on the key terms as set forth in the official statements for each sec urity. Such key terms include, among others, the interest rate, amortization schedule, if any, and maturity date. The risk-adjusted cash flows are calculated based on a probability of default analysis and recovery rate assumptions, including the weightin g of different scenarios of ultimate recovery, considering the credit rating of each security. Constant monthly default rates are assumed throughout the life of the bonds, which considers the respective security's credit rating as of the date of the analys is. The adjusted future cash flows are then discounted at the original effective yield of each investment based on the purchase price and expected risk-adjusted future cash flows as of the purchase date of each investment. The discounted risk-adju sted cash flow analysis for the three Puerto Rico Government bonds mentioned above assumed a default probability of 100 %, thus reflecting that it is more likely than not that these three bonds will default during their remaining terms. Based on this analys is, the Corporation determined that it is unlikely to receive all of the remaining contractual interest and principal amounts when due on these bonds and recorded, in the first quarter of 2016, other-than-temporary credit-related impairment charges amount ing to $6.3 million, assuming recovery rates ranging from 35 % to 80 % ( with a weighted average of 61 %). On August 1, 2016, the GDB defaulted on a $28 million payment of interest due to its creditors , including interest due on bonds held by the Corporation. Similar ly, the Puerto Rico Public Building Authority made only a partial payment on its interest payment due on October 1, 2016. In the third quarter of 2016, as a result of the recent defaults, the Corporation discontinued income recognition related to, and pl aced in non-performing status, the bonds of the GDB and the Puerto Rico Public Building Authority. As of September 30, 2016, the amortized cost of these bonds, including accrued interest of $0.9 million, was $35.6 million ($ 22. 3 million of GDB bonds and $ 13 .3 million of Puerto Rico Public Buildings Authority bonds ), recorded at their aggregate fair value of $ 19.5 million ($ 9.4 million of GDB bonds and $ 10.1 million of Puerto Rico Public Buildings Authority bonds ). The Corporation does not have the intention to sell these securities and has sufficient capital and liquidity to hold these securities until a recovery of the fair value occurs; as such, only the credit loss component was reflected in earnings. Given the significant and prolonged uncertainty of a debt restr ucturing process, the Corporation cannot be certain that future impairment charges will not be required against these securities. In addition, during the first nine months of 2016, the Corporation recorded a $0.4 million credit-related impairment loss associated with 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 is variable, tied to 3-month LIBOR and limited to the weighted- average coupon of the underlying collateral. The underlying mortgages are fixed-rate, single-family loans with original high FICO scores (over 700 ) and moderate original loan-to-value ratios (under 80 %), as well as moderate delinquency levels. Based on the expected cash flows, 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: September 30, 2016 December 31, 2015 Weighted Weighted Average Range Average Range Discount rate 13.3% 12.03% - 13.58% 14.5% 14.5% Prepayment rate 13.7% 6.5% - 22.5% 25% 15.92% - 31.25% Projected Cumulative Loss Rate 4% 0.2% - 9.1% 4% 0.18% - 6.66% Investment s Held to Maturity The amortized cost, gross unrealized gains and losses, approximate fair value, weighted-average yield and contractual maturities of investment securities held to maturity as of September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 Amortized cost Fair value Weighted average yield% Gross Unrealized gains losses Puerto Rico Municipal Bonds: After 1 to 5 years $ 1,136 $ - $ 27 $ 1,109 5.38 After 5 to 10 years 10,741 - 782 9,959 4.41 After 10 years 144,313 - 23,140 121,173 4.66 Total investment securities held to maturity $ 156,190 $ - $ 23,949 $ 132,241 4.65 December 31, 2015 Amortized cost Fair value Weighted average yield% Gross Unrealized gains losses Puerto Rico Municipal Bonds: After 1 to 5 years $ 1,371 $ - $ 37 $ 1,334 5.38 After 5 to 10 years 11,523 - 1,041 10,482 4.25 After 10 years 148,589 - 28,861 119,728 4.64 Total investment securities held to maturity $ 161,483 $ - $ 29,939 $ 131,544 4.62 T h e following tables show the Corporation’s held-to-maturity 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 Septemb er 30, 2016 and December 31, 2015 : As of September 30, 2016 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 Municipal Bonds $ - $ - $ 132,241 $ 23,949 $ 132,241 $ 23,949 As of December 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 Municipal Bonds $ 4,163 $ 140 $ 127,381 $ 29,799 $ 131,544 $ 29,939 Approximately 87 % of the held-to-maturity municipal bonds were issued by five of the largest municipalities in Puerto Rico (San Juan, Carolina, Bayamon, Mayaguez and Guaynabo). These obligations typically are not issued in bearer form, nor are they registered with the SEC and are not rated by external credit agencies. In most cases, t hese bonds have priority over the payment of operating cost s and expenses of the municipality , which are required by law to levy special property taxes in s uch amounts as are required for the payment of all of their respective general obligation bonds and loans . The Corporation determine s the fair mark et value of Puerto Rico Municipal Bonds based on a discounted cash flow analysis using risk-adjusted dis count rates . A security with similar characteristics traded in the open market is used as a proxy for each municipal bond. Then the cash flow is discounted at the average spread over the discount curve exhibited by the proxy security at the end of each qua rter. When evaluating if the decrease in fair value could be classified as other-than-temporary, management considered aspects such as the fact that all municipalities are current on their payments and the fact that the bonds are subject to periodic c redit reviews and are supported by assigned property tax revenues. Based on the quarterly analysis performed and the circumstances discussed above , management concluded that the unrealized loss is attributable to the time value of money and liquidity assumptions and no individual municipal bond was other-than-temporarily impaired as of September 30, 2016. |
OTHER EQUITY SECURITIES
OTHER EQUITY SECURITIES | 9 Months Ended |
Sep. 30, 2016 | |
OTHER EQUITY SECURITIES | NOTE 5 – OTHER EQUITY SECURITIES Institutions that are members of the FHLB system are required to maintain a minimum investment in FHLB stock. Such minimum 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 divi dends may be received on FHLB stock. As of September 30, 2016 and December 31, 2015 , the Corporation had investments in FHLB stock with a book value of $ 26.6 million and $ 31.3 million, respectively. The net realizable value is a reasonable prox y for the fair value of these instruments. Dividend income from FHLB stock for the quarters ended September 30, 2016 and 2015 was $ 0.4 million and $ 0.3 million, respectively , and for the nine -month periods ended September 30, 201 6 and 201 5 was $ 1.1 mil lion and $ 0. 8 million, respectively. The shares of FHLB stock owned by the Corporation were issued by the FHLB of New York. The FHLB of New York is part of the Federal Home Loan Bank System, a national wholesale banking network of 11 regional, stockholde r-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 ope rate 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 fa ir value. The carrying value of such securities as of September 30, 2016 and December 31, 2015 was $ 2.1 million and $ 0.9 million, respectively. |
LOAN PORTFOLIO
LOAN PORTFOLIO | 9 Months Ended |
Sep. 30, 2016 | |
LOAN PORTFOLIO | NOTE 7 – LOANS HELD FOR INVESTMENT The following table provides information about the loan portfolio held for investment: As of September 30, As of December 31, 2016 2015 (In thousands) Residential mortgage loans, mainly secured by first mortgages $ 3,299,942 $ 3,344,719 Commercial loans: Construction loans 124,298 156,195 Commercial mortgage loans 1,545,014 1,537,806 Commercial and Industrial loans (1) 2,167,011 2,246,513 Total commercial loans 3,836,323 3,940,514 Finance leases 229,577 229,165 Consumer loans 1,497,812 1,597,984 Loans held for investment 8,863,654 9,112,382 Allowance for loan and lease losses (214,070) (240,710) Loans held for investment, net $ 8,649,584 $ 8,871,672 (1) As of September 30, 2016 and December 31, 2015, includes $949.9 million and $1.0 billion, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. Loans held for investment on which accrual of interest income had been discontinued as of the indicated dates were as follows: (In thousands) September 30, December 31, 2016 2015 Non-performing loans: Residential mortgage $ 162,201 $ 169,001 Commercial mortgage 191,449 51,333 Commercial and Industrial 137,016 137,051 Construction : Land 11,761 12,174 Construction-commercial 36,953 39,466 Construction-residential 2,053 2,996 Consumer: Auto loans 14,615 17,435 Finance leases 1,969 2,459 Other consumer loans 8,695 10,858 Total non-performing loans held for investment (1) (2)(3) $ 566,712 $ 442,773 (1) As of September 30, 2016 and December 31, 2015, excludes $8.1 million of non-performing loans held for sale. (2) Amount excludes purchased-credit impaired ("PCI") loans with a carrying value of approximately $168.1 million and $173.9 million as of September 30, 2016 and December 31, 2015, respectively, primarily mortgage loans acquired from Doral Bank in the first quarter of 2015 and from Doral Financial in the second quarter of 2014, as further discussed below. These loans are not considered non-performing due to the application of the accretion method, under which these loans will accrete interest income over the remaining life of the loans using an estimated cash flow analysis. (3) Non-performing loans exclude $415.9 million and $414.9 million of Troubled Debt Restructuring ("TDR") loans that are in compliance with modified terms and in accrual status as of September 30, 2016 and December 31, 2015, respectively. Loans in Process of Foreclosure As of September 30, 2016, the recorded investment of residential mortgage loans collateralized by residential real estate property that are in the process of foreclosure amounted to $ 135.0 million. The Corporation commences the foreclosure process on residential real estate loans when a borrower becomes 120 days delinquent in accordance with the guidelines of the Consumer Financial Protection Bureau (CFPB). Foreclosure procedures and timelines vary depending on whet her the property is located in a judicial or non-judicial state. Judicial states (Puerto Rico) require the foreclosure to be processed through the state’s court while foreclosures in 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 proceedings , court delays and title issues, among other reasons . The Corporation’s aging of the loans held for investment portfolio is as follows: Purchased Credit-Impaired Loans Total loans held for investment 90 days past due and still accruing (2) 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due (1) Total Past Due As of September 30, 2016 (In thousands) Current Residential mortgage: FHA/VA and other government-guaranteed loans (2) (3) (4) $ - $ 5,310 $ 81,677 $ 86,987 $ - $ 44,949 $ 131,936 $ 81,677 Other residential mortgage loans (4) - 87,425 179,648 267,073 165,014 2,735,919 3,168,006 17,447 Commercial: Commercial and Industrial loans 44,967 500 138,484 183,951 - 1,983,060 2,167,011 1,468 Commercial mortgage loans (4) - 3,436 196,240 199,676 3,127 1,342,211 1,545,014 4,791 Construction: Land (4) - 765 12,137 12,902 - 20,495 33,397 376 Construction-commercial (4) - - 36,953 36,953 - 38,460 75,413 - Construction-residential (4) - - 2,721 2,721 - 12,767 15,488 668 Consumer: Auto loans 63,470 13,743 14,615 91,828 - 766,969 858,797 - Finance leases 8,199 2,312 1,969 12,480 - 217,097 229,577 - Other consumer loans 8,192 4,824 12,806 25,822 - 613,193 639,015 4,111 Total loans held for investment $ 124,828 $ 118,315 $ 677,250 $ 920,393 $ 168,141 $ 7,775,120 $ 8,863,654 $ 110,538 _____________ (1) Includes non-performing loans and accruing loans that are contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days. (2) It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as past-due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. These balances include $29.6 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent and are no longer accruing interest as of September 30, 2016. (3) As of September 30, 2016, includes $45.6 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 September 30, 2016 amounted to $8.7 million, $144.3 million, $7.6 million, $0.7 million and $0.3 million, respectively. As of December 31, 2015 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due (1) Total loans held for investment 90 days past due and still accruing (2) (In thousands) Total Past Due Purchased Credit- Impaired Loans Current Residential mortgage: FHA/VA and other government-guaranteed loans (2) (3) (4) $ - $ 6,048 $ 90,168 $ 96,216 $ - $ 46,925 $ 143,141 $ 90,168 Other residential mortgage loans (4) - 90,406 185,018 275,424 170,766 2,755,388 3,201,578 16,017 Commercial: Commercial and Industrial loans 5,577 6,412 150,893 162,882 - 2,083,631 2,246,513 13,842 Commercial mortgage loans (4) - 24,729 63,805 88,534 3,147 1,446,125 1,537,806 12,472 Construction: Land (4) - 161 12,350 12,511 - 39,363 51,874 176 Construction-commercial - 11,722 39,466 51,188 - 32,142 83,330 - Construction-residential (4) - - 6,042 6,042 - 14,949 20,991 3,046 Consumer: Auto loans 70,836 16,787 17,435 105,058 - 829,922 934,980 - Finance leases 7,664 3,100 2,459 13,223 - 215,942 229,165 - Other consumer loans 9,462 5,524 15,124 30,110 - 632,894 663,004 4,266 Total loans held for investment $ 93,539 $ 164,889 $ 582,760 $ 841,188 $ 173,913 $ 8,097,281 $ 9,112,382 $ 139,987 ____________ (1) Includes non-performing loans and accruing loans that are contractually delinquent 90 days or more (i.e. FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days. (2) It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as past-due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. These balances include $37.3 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent and are no longer accruing interest as of December 31, 2015. (3) As of December 31, 2015, includes $38.5 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans. (4) According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two or more monthly payments. FHA/VA government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, land loans and construction-residential loans past due 30-59 days as of December 31, 2015 amounted to $11.0 million, $162.9 million, $38.6 million, $5.7 million and $0.8 million, respectively. The Corporation’s credit quality indicators by loan type as of September 30, 2016 and December 31, 2015 are summarized below: Commercial Credit Exposure-Credit Risk Profile Based on Creditworthiness Category: Substandard Doubtful Loss Total Adversely Classified (1) Total Portfolio September 30, 2016 (In thousands) Commercial mortgage $ 218,523 $ 36,211 $ - $ 254,734 $ 1,545,014 Construction: Land 20,175 - - 20,175 33,397 Construction-commercial 36,953 - - 36,953 75,413 Construction-residential 2,053 - - 2,053 15,488 Commercial and Industrial 159,498 72,806 445 232,749 2,167,011 Commercial Credit Exposure-Credit Risk Profile Based on Creditworthiness Category: Substandard Doubtful Loss Total Adversely Classified (1) Total Portfolio December 31, 2015 (In thousands) Commercial mortgage $ 252,941 $ 140 $ - $ 253,081 $ 1,537,806 Construction: Land 14,035 1 - 14,036 51,874 Construction-commercial 39,466 - - 39,466 83,330 Construction-residential 2,996 - - 2,996 20,991 Commercial and Industrial 140,827 71,341 354 212,522 2,246,513 _________ (1) Excludes $8.1 million as of September 30, 2016 and December 31, 2015, of construction-land 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 as set is inadequately protected by the current sound worth and paying capacity of the obligo r 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 sus tain 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 basi s 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 l oss cannot be determined because of specific reasonable pendin g 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 ha s 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 improve ment and no realistic strengthening action of significance pending. Consumer Credit Exposure-Credit Risk Profile based on Payment activity Residential Real Estate Consumer September 30, 2016 FHA/VA/ Guaranteed (1) Other residential loans Auto Finance Leases Other Consumer (In thousands) Performing $ 131,936 $ 2,840,791 $ 844,182 $ 227,608 $ 630,320 Purchased Credit-Impaired (2) - 165,014 - - - Non-performing - 162,201 14,615 1,969 8,695 Total $ 131,936 $ 3,168,006 $ 858,797 $ 229,577 $ 639,015 (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 $29.6 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent and are no longer accruing interest as of September 30, 2016. (2) PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis. Consumer Credit Exposure-Credit Risk Profile based on Payment activity Residential Real Estate Consumer December 31, 2015 FHA/VA/ Guaranteed (1) Other residential loans Auto Finance Leases Other Consumer (In thousands) Performing $ 143,141 $ 2,861,811 $ 917,545 $ 226,706 $ 652,146 Purchased Credit-Impaired (2) - 170,766 - - - Non-performing - 169,001 17,435 2,459 10,858 Total $ 143,141 $ 3,201,578 $ 934,980 $ 229,165 $ 663,004 (1) It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as past due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. These balances include $37.3 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent and are no longer accruing interest as of December 31, 2015. (2) PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis. The following tables present information about impaired loans , excluding PCI loans, which are reported separately , as discussed below: Impaired Loans (In thousands) Quarter Ended Nine-Month Period Ended September 30, 2016 Recorded Investment Unpaid Principal Balance Related Specific Allowance Year-To-Date Average Recorded Investment Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis As of September 30, 2016 With no related allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - $ - $ - Other residential mortgage loans 64,198 78,361 - 67,024 139 103 376 496 Commercial: Commercial mortgage loans 51,974 63,759 - 56,826 206 119 599 609 Commercial and Industrial Loans 17,069 26,672 - 20,407 13 - 13 - Construction: Land 60 89 - 60 - - - - Construction-commercial - - - - - - - - Construction-residential 956 1,531 - 956 - - - - Consumer: Auto loans 888 888 - 901 6 - 10 - Finance leases 168 168 - 168 1 - 1 - Other consumer loans 3,770 5,045 - 3,892 11 25 59 80 $ 139,083 $ 176,513 $ - $ 150,234 $ 376 $ 247 $ 1,058 $ 1,185 With an allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - $ - $ - Other residential mortgage loans 379,841 428,395 9,667 385,052 4,396 375 13,160 1,192 Commercial: Commercial mortgage loans 146,526 166,066 25,907 152,753 136 57 339 179 Commercial and Industrial Loans 161,105 189,683 28,668 171,575 618 49 1,708 203 Construction: Land 9,346 13,534 903 9,395 21 18 52 35 Construction-commercial 36,953 38,781 1,977 38,516 - - - - Construction-residential 392 551 124 392 - - - - Consumer: Auto loans 24,135 24,135 3,674 25,913 476 - 1,379 - Finance leases 2,408 2,408 62 2,493 48 - 150 - Other consumer loans 13,065 13,448 1,700 13,868 356 15 1,005 32 $ 773,771 $ 877,001 $ 72,682 $ 799,957 $ 6,051 $ 514 $ 17,793 $ 1,641 Total: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - $ - $ - Other residential mortgage loans 444,039 506,756 9,667 452,076 4,535 478 13,536 1,688 Commercial: Commercial mortgage loans 198,500 229,825 25,907 209,579 342 176 938 788 Commercial and Industrial Loans 178,174 216,355 28,668 191,982 631 49 1,721 203 Construction: Land 9,406 13,623 903 9,455 21 18 52 35 Construction-commercial 36,953 38,781 1,977 38,516 - - - - Construction-residential 1,348 2,082 124 1,348 - - - - Consumer: Auto loans 25,023 25,023 3,674 26,814 482 - 1,389 - Finance leases 2,576 2,576 62 2,661 49 - 151 - Other consumer loans 16,835 18,493 1,700 17,760 367 40 1,064 112 $ 912,854 $ 1,053,514 $ 72,682 $ 950,191 $ 6,427 $ 761 $ 18,851 $ 2,826 (In thousands) Recorded Investment Unpaid Principal Balance Related Specific Allowance Average Recorded Investment As of December 31, 2015 With no related allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - Other residential mortgage loans 65,495 74,146 - 67,282 Commercial: Commercial mortgage loans 54,048 66,448 - 54,967 Commercial and Industrial Loans 27,492 29,957 - 28,326 Construction: Land - - - - Construction-commercial 39,466 40,000 - 39,736 Construction-residential 3,046 3,046 - 3,098 Consumer: Auto loans - - - - Finance leases - - - - Other consumer loans 2,618 4,300 - 2,766 $ 192,165 $ 217,897 $ - $ 196,175 With an allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - Other residential mortgage loans 395,173 440,947 21,787 398,790 Commercial: Commercial mortgage loans 27,479 40,634 3,073 30,518 Commercial and Industrial Loans 143,214 164,050 18,096 148,547 Construction: Land 9,578 13,758 1,060 9,727 Construction-commercial - - - - Construction-residential 1,426 2,180 142 1,476 Consumer: Auto loans 21,581 21,581 6,653 23,531 Finance leases 2,077 2,077 86 2,484 Other consumer loans 13,816 14,043 1,684 14,782 $ 614,344 $ 699,270 $ 52,581 $ 629,855 Total: FHA/VA-Guaranteed loans $ - $ - $ - $ - Other residential mortgage loans 460,668 515,093 21,787 466,072 Commercial: Commercial mortgage loans 81,527 107,082 3,073 85,485 Commercial and Industrial Loans 170,706 194,007 18,096 176,873 Construction: Land 9,578 13,758 1,060 9,727 Construction-commercial 39,466 40,000 - 39,736 Construction-residential 4,472 5,226 142 4,574 Consumer: Auto loans 21,581 21,581 6,653 23,531 Finance leases 2,077 2,077 86 2,484 Other consumer loans 16,434 18,343 1,684 17,548 $ 806,509 $ 917,167 $ 52,581 $ 826,030 Interest income of approximately $7.8 million ($6.9 million accrual basis and $0.9 million cash basis) and $24.8 million ($19.8 million accrual basis and $5.0 million cash basis) was recognized on impaired loans for the third quarter and nine-month period ended September 30, 2015, respectively. The following tables show the activity for impaired loans and the related specific reserve for the quarters and nine-month periods ended September 30, 2016 and 2015: Quarter Ended Nine-Month Period Ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Impaired Loans: Balance at beginning of period $ 953,774 $ 824,816 $ 806,509 $ 945,407 Loans determined impaired during the period 26,613 37,528 261,544 135,350 Charge-offs (1) (30,426) (7,498) (50,027) (90,026) Loans sold, net of charge-offs - - - (67,836) Increases to impaired loans-additional disbursements 1,091 408 2,852 2,524 Reclassification from loans held for sale (2) - 40,005 - 40,005 Foreclosures (11,856) (12,858) (28,466) (33,044) Loans no longer considered impaired (2,674) (25,877) (27,560) (39,062) Paid in full or partial payments (23,668) (13,811) (51,998) (50,605) Balance at end of period $ 912,854 $ 842,713 $ 912,854 $ 842,713 (1) For the nine-month period ended September 30, 2015, includes $63.9 million of charge-offs related to a bulk sale of assets completed in the second quarter of 2015, mostly comprised of non-performing and adversely classified commercial loans, as further discussed below. (2) During the third quarter of 2015, upon the signing of a new agreement with the borrower, the Corporation changed its intent to sell a $40.0 million construction loan in the Virgin Islands. Accordingly, the loan was transferred back from held for sale to held for investment. Quarter Ended Nine-Month Period Ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Specific Reserve: Balance at beginning of period $ 86,372 $ 49,918 $ 52,581 55,205 Provision for loan losses 16,619 9,439 70,011 81,796 Net charge-offs (30,309) (7,498) (49,910) (85,142) Balance at end of period $ 72,682 $ 51,859 $ 72,682 $ 51,859 PCI Loans The Corporation acquired PCI loans accounted for under ASC 310-30 as part of the transaction closed on February 27, 2015 in which FirstBank acquired 10 Puerto Rico branches of Doral Bank, and acquired certain assets, including PCI loans, and assumed deposits, through an alliance with Banco Popular of Puerto Rico, which was the successful lead bidder with the FDIC on the failed Doral Bank, as well as other co-bidders. The Corporation also acquired PCI loans in previously completed asset ac quisitions that are accounted for 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 satisfa ction of secured borrowings owed by such entity to FirstBank . 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 i s a reasonable expectation about the timing and amount of cash flows expected to be collected. The Corporation recognizes additional losses on this portfolio when it is probable that the Corporation will be unable to collect all cash flows expected as of t he 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: September 30, December 31, 2016 2015 (In thousands) Residential mortgage loans $ 165,014 $ 170,766 Commercial mortgage loans 3,127 3,147 Total PCI loans $ 168,141 $ 173,913 Allowance for loan losses (6,857) (3,962) Total PCI loans, net of allowance for loan losses $ 161,284 $ 169,951 The following tables present PCI loans by past due status as of September 30, 2016 and December 31, 2015: As of September 30, 2016 30-59 Days 60-89 Days 90 days or more Total Past Due Total PCI loans (In thousands) Current Residential mortgage loans (1) $ - $ 12,048 $ 26,621 $ 38,669 $ 126,345 $ 165,014 Commercial mortgage loans (1) - - 1,283 1,283 1,844 3,127 $ - $ 12,048 $ 27,904 $ 39,952 $ 128,189 $ 168,141 _____________ (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 September 30, 2016 amounted to $22.3 million and $0.4 million, respectively. As of December 31, 2015 30-59 Days 60-89 Days 90 days or more Total Past Due Total PCI loans (In thousands) Current Residential mortgage loans (1) $ - $ 16,094 $ 22,218 $ 38,312 $ 132,454 $ 170,766 Commercial mortgage loans (1) - - 992 992 2,155 3,147 $ - $ 16,094 $ 23,210 $ 39,304 $ 134,609 $ 173,913 (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 past due 30-59 days as of December 31, 2015 amounted to $23.6 million. Initial Fai r 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 non-accretable 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 metho d. Changes in accretable yield of acquired loans Subsequent to an acquisition of loans , 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 non-accretable difference or reclassifications fr om nonaccretable yield to accretable yield. 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 c redit 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 nine months of 2016, the Corporation increase d by $ 2.9 million to $ 6.9 million the reserve related to PCI loans acquired from Doral Financial in 2014 . The reserve is driven by the revisions to the expected cash flows of the portfolio for the remaining term of the loan pool based on expected performan ce and market conditions. Changes in the accretable yield of PCI loans for the quarters and nine-month periods ended September 30, 2016 and 2015 were as follows: Quarter Ended Nine-Month Period Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 (In thousands) Balance at beginning of period $ 122,179 $ 124,288 $ 118,385 $ 82,460 Additions (accretable yield at acquisition of loans from Doral) - - - 38,319 Accretion recognized in earnings (2,875) (3,411) (8,691) (8,695) Reclassification from non-accretable - 1,348 9,610 10,141 Balance at end of period $ 119,304 $ 122,225 $ 119,304 $ 122,225 Changes in the carrying amount of loans accounted for pursuant to ASC 310-30 are as follows: Quarter Ended Nine-Month Period Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 (In thousands) Balance at beginning of period $ 169,690 $ 178,494 $ 173,913 $ 102,604 Additions (1) - - - 79,889 Accretion 2,875 3,411 8,691 8,695 Collections (4,184) (5,663) (13,136) (14,946) Foreclosures (240) (157) (1,327) (157) Ending balance $ 168,141 $ 176,085 $ 168,141 $ 176,085 Allowance for loan losses (6,857) (3,163) (6,857) (3,163) Ending balance, net of allowance for loan losses $ 161,284 $ 172,922 $ 161,284 $ 172,922 (1) For the nine-month period ended September 30, 2015, additions represents the estimated fair value of PCI loans acquired from Doral Bank at the date of acquisition. Changes in the allowance for loan losses related to PCI loans follows: Quarter Ended Nine-Month Period Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 (In thousands) Balance at beginning of period $ 6,857 $ 3,163 $ 3,962 $ - Provision for loan losses - - 2,895 3,163 Balance at end of period $ 6,857 $ 3,163 $ 6,857 $ 3,163 The outstanding principal balance of PCI loans, including amounts charged off by the Corporation, amounted to $ 210.6 million as of September 30, 2016 (December 2015 - $ 218.1 million). Purchases and Sales of Loans During the first nine months of 2016, the Corporation purchased $ 65.2 million of residential mortgage loans consistent with a seasoned strategic program to purchase ongoing residential mortgage loan production from mortgage bankers in Puerto Rico. Generally, the loans purchased from mortgage bankers were conforming residential mortgage loans. Purchases of conforming residential mortgage loans provide the Corporation the flexibility to retain or sell the loans, including throu gh 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”), which generally securitize the transferred loans into mortgage-backed securities for sale into t he secondary market. The Corporation sold approximately $ 108.5 million of performing residential mortgage loans to FNMA and FHLMC during the first nine months of 2016. Also, during the first nine months of 2016, the Corporation sold $ 238.6 million of FHA/ VA mortgage loans to GNMA, which packages them into mortgage-backed securities. The Corporation’s continuing involvement in these sold loans 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 establis hed 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 Corporati on 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 nine months of 2016 and 2015, the Corporation repurchased pursuant to its repurchase option with GNMA $ 20.9 million and $ 10.6 million, respectively, of loans previously sold to GNMA. The principal balance of these loans is fully guaranteed and the risk of loss relate d to the repurchased loans 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 ra te. 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 r epresentations 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 war ranties. 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 $ 0.7 million and $ 1.3 million during the first nine months of 2016 and 2015, respectively. The Corporation’s risk of loss with respect to these loans is also minimal as these repurchased loans are generally performing loans with documentation deficiencies. No losses related to breaches of representations a nd warranties were incurred in the first nine months of 2016. Historically, losses experienced on these loans have been immaterial. As a consequence, as of September 30, 2016, the Corporation does not maintain a liability for estimated losses on loans expe cted to be repurchased as a result of breaches in loan and servicer representations and warranties. In addition, t |
ALLOWANCE FOR LOAN AND LEASE LO
ALLOWANCE FOR LOAN AND LEASE LOSSES | 9 Months Ended |
Sep. 30, 2016 | |
ALLOWANCE FOR LOAN AND LEASE LOSSES | NOTE 7 – 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 September 30, 2016 Allowance for loan and lease losses: Beginning balance $ 38,955 $ 69,799 $ 69,789 $ 2,747 $ 53,164 $ 234,454 Charge-offs (8,514) (13,730) (10,587) (19) (13,716) (46,566) Recoveries 972 335 929 140 2,303 4,679 Provision (release) 4,553 (152) 5,597 2,480 9,025 21,503 Ending balance $ 35,966 $ 56,252 $ 65,728 $ 5,348 $ 50,776 $ 214,070 Ending balance: specific reserve for impaired loans $ 9,667 $ 25,907 $ 28,668 $ 3,004 $ 5,436 $ 72,682 Ending balance: purchased credit-impaired loans (1) $ 6,638 $ 219 $ - $ - $ - $ 6,857 Ending balance: general allowance $ 19,661 $ 30,126 $ 37,060 $ 2,344 $ 45,340 $ 134,531 Loans held for investment: Ending balance $ 3,299,942 $ 1,545,014 $ 2,167,011 $ 124,298 $ 1,727,389 $ 8,863,654 Ending balance: impaired loans $ 444,039 $ 198,500 $ 178,174 $ 47,707 $ 44,434 $ 912,854 Ending balance: purchased credit-impaired loans $ 165,014 $ 3,127 $ - $ - $ - $ 168,141 Ending balance: loans with general allowance $ 2,690,889 $ 1,343,387 $ 1,988,837 $ 76,591 $ 1,682,955 $ 7,782,659 (In thousands) Residential Mortgage Loans Commercial Mortgage Loans Commercial & Industrial Loans Construction Loans Consumer Loans Total Nine-Month Period Ended September 30, 2016 Allowance for loan and lease losses: Beginning balance $ 39,570 $ 68,211 $ 68,768 $ 3,519 $ 60,642 $ 240,710 Charge-offs (27,352) (15,742) (16,260) (623) (41,490) (101,467) Recoveries 2,159 414 1,885 301 6,526 11,285 Provision 21,589 3,369 11,335 2,151 25,098 63,542 Ending balance $ 35,966 $ 56,252 $ 65,728 $ 5,348 $ 50,776 $ 214,070 Ending balance: specific reserve for impaired loans $ 9,667 $ 25,907 $ 28,668 $ 3,004 $ 5,436 $ 72,682 Ending balance: purchased credit-impaired loans (1) $ 6,638 $ 219 $ - $ - $ - $ 6,857 Ending balance: general allowance $ 19,661 $ 30,126 $ 37,060 $ 2,344 $ 45,340 $ 134,531 Loans held for investment: Ending balance $ 3,299,942 $ 1,545,014 $ 2,167,011 $ 124,298 $ 1,727,389 $ 8,863,654 Ending balance: impaired loans $ 444,039 $ 198,500 $ 178,174 $ 47,707 $ 44,434 $ 912,854 Ending balance: purchased credit-impaired loans $ 165,014 $ 3,127 $ - $ - $ - $ 168,141 Ending balance: loans with general allowance $ 2,690,889 $ 1,343,387 $ 1,988,837 $ 76,591 $ 1,682,955 $ 7,782,659 (1) Refer to Note 6 - Loans Held for Investment -PCI loans for a detail of changes in the allowance for loan losses related to PCI loans. (In thousands) Residential Mortgage Loans Commercial Mortgage Loans Commercial & Industrial Loans Construction Loans Consumer Loans Total Quarter ended September 30, 2015 Allowance for loan and lease losses: Beginning balance $ 33,783 $ 49,092 $ 63,900 $ 11,865 $ 62,878 $ 221,518 Charge-offs (5,094) (3,677) (1,267) (103) (15,926) (26,067) Recoveries 214 20 327 176 1,602 2,339 Provision (release) 6,958 6,668 3,807 (139) 13,882 31,176 Ending balance $ 35,861 $ 52,103 $ 66,767 $ 11,799 $ 62,436 $ 228,966 Ending balance: specific reserve for impaired loans $ 18,705 $ 4,886 $ 17,540 $ 2,128 $ 8,600 $ 51,859 Ending balance: purchased credit-impaired loans $ 3,061 $ 102 $ - $ - $ - $ 3,163 Ending balance: general allowance $ 14,095 $ 47,115 $ 49,227 $ 9,671 $ 53,836 $ 173,944 Loans held for investment: Ending balance $ 3,330,089 $ 1,562,538 $ 2,222,324 $ 163,956 $ 1,861,555 $ 9,140,462 Ending balance: impaired loans $ 459,311 $ 104,046 $ 174,983 $ 66,123 $ 38,250 $ 842,713 Ending balance: purchased credit-impaired loans $ 172,927 $ 3,158 $ - $ - $ - $ 176,085 Ending balance: loans with general allowance $ 2,697,851 $ 1,455,334 $ 2,047,341 $ 97,833 $ 1,823,305 $ 8,121,664 (In thousands) Residential Mortgage Loans Commercial Mortgage Loans Commercial & Industrial Loans Construction Loans Consumer Loans Total Nine-Month Period Ended September 30, 2015 Allowance for loan and lease losses: Beginning balance $ 27,301 $ 50,894 $ 63,721 $ 12,822 $ 67,657 $ 222,395 Charge-offs (13,815) (54,115) (30,090) (4,787) (48,221) (151,028) Recoveries 584 6,515 3,386 2,379 6,323 19,187 Provision 21,791 48,809 29,750 1,385 36,677 138,412 Ending balance $ 35,861 $ 52,103 $ 66,767 $ 11,799 $ 62,436 $ 228,966 Ending balance: specific reserve for impaired loans $ 18,705 $ 4,886 $ 17,540 $ 2,128 $ 8,600 $ 51,859 Ending balance: purchased credit-impaired loans $ 3,061 $ 102 $ - $ - $ - $ 3,163 Ending balance: general allowance $ 14,095 $ 47,115 $ 49,227 $ 9,671 $ 53,836 $ 173,944 Loans held for investment: Ending balance $ 3,330,089 $ 1,562,538 $ 2,222,324 $ 163,956 $ 1,861,555 $ 9,140,462 Ending balance: impaired loans $ 459,311 $ 104,046 $ 174,983 $ 66,123 $ 38,250 $ 842,713 Ending balance: purchased credit-impaired loans $ 172,927 $ 3,158 $ - $ - $ - $ 176,085 Ending balance: loans with general allowance $ 2,697,851 $ 1,455,334 $ 2,047,341 $ 97,833 $ 1,823,305 $ 8,121,664 As discussed in Note 6, under the heading “Bulk Sale of Assets,” during the second quarter of 2015, the Corporation completed the sale of commercial and construction loans with a book value of $147.5 million, mostly comprised of non-performing and adversely classified loans. This transaction resulted in charge-offs of approximately $61.4 million. The Corporation incorporated the charge-offs information from the second quarter 2015 bulk sale in its measurement of credit impairment for loans collect ively measured. In the second quarter of 2015, the total bulk sale charge offs were included in the determination of historical loss rates with no reduction for the additional market discount related to the bulk sale resolution. In the past, the Corporatio n had separated the market component of the loss. The decision to include total charge-offs, with no qualitative adjustment for the steep discount on this bulk sale, considered the potential use of similar credit resolution strategies in the future in ligh t of the current economic conditions in Puerto Rico. The effect of this position resulted in an increase of $ 15.5 million in the related allowance in the second quarter of 2015. During the third quarter of 2015, the Corporation further refined its methodo logy by allocating the second quarter 2015 bulk sale losses over an estimated realization period of eight quarters, which would reflect a more typical loss resolution pattern. Management believes that this loss estimation process is more indicative of the current experience related to the average period for a loan to migrate to asset classification categories and the eventual charge-off. As of September 30, 2016 , the Corporation maintained a $ 2.1 million reserve for unfunded loan commitments ($ 0.5 mill ion as of September 30, 2015) mainly related to an outstanding adversely classified floor plan relationship. 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 diffi culties 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 o f accounts payable and other liabilities in the consolidated statement of financial condition. |
LOANS HELD FOR SALE
LOANS HELD FOR SALE | 9 Months Ended |
Sep. 30, 2016 | |
LOANS HELD FOR SALE | NOTE 9 – LOANS HELD FOR SALE The Corporation’s loans held-for-sale portfolio was composed of: (In thousands) September 30, 2016 December 31, 2015 Residential mortgage loans $ 48,700 $ 27,734 Construction loans 8,079 8,135 Total $ 56,779 $ 35,869 Non-performing loans held for sale totaled $ 8.1 million as of September 30, 201 6 and December 31, 201 5 . |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30, December 31, (In thousands) 2016 2015 OREO OREO balances, carrying value: Residential (1) $ 45,887 $ 43,563 Commercial 81,038 87,849 Construction 12,521 15,389 Total $ 139,446 $ 146,801 (1) Excludes $15.1 million and $8.9 million as of September 30, 2016 and December 31, 2015, respectively, of foreclosures 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 HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2016 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 10 – 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 variabi lity 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 September 30, 2016 and December 31, 2015 , 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 principa l 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. Forward Contracts - F orward contracts are sales of to-be-announced (“TBA”) mortgage-backed securities that will sett le 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 frame generally established by regulations or conventions in the market place or exchange in which the transaction is being executed. The f orward 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 c onsolida ted s tatement of i ncome. To satisfy the needs of its customers, the Corporation may enter into non - hedging trans actions. On these transactions, the Corporation generally 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 enter s 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 embe dded 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 non - hedging derivative instrument. The following table summarizes the notional amounts of all derivative instruments: Notional Amounts (1) As of As of September 30, December 31, 2016 2015 (In thousands) Undesignated economic hedges: Interest rate contracts: Written interest rate cap agreements $ 91,510 $ 120,816 Purchased interest rate cap agreements 91,510 120,816 Forward Contracts: Sale of TBA GNMA MBS pools 45,000 30,000 $ 228,020 $ 271,632 (1) Notional amounts are presented on a gross basis with no netting of offsetting exposure positions. The following table summarizes the fair value of derivative instruments and the location in the statement of financial condition as of the indicated dates: Asset Derivatives Liability Derivatives Statement of September 30, December 31, September 30, December 31, Financial 2016 2015 2016 2015 Condition Location Fair Value Fair Value Statement of Financial Condition Location Fair Value Fair Value (In thousands) Undesignated economic hedges: Interest rate contracts: Written interest rate cap agreements Other assets $ - $ - Accounts payable and other liabilities $ 191 $ 798 Purchased interest rate cap agreements Other assets 191 806 Accounts payable and other liabilities - - Forward Contracts: Sales of TBA GNMA MBS pools Other assets 4 - Accounts payable and other liabilities 144 123 $ 195 $ 806 $ 335 $ 921 The following table summarizes the effect of derivative instruments on the statement of income: Gain (or Loss) Gain (or Loss) Location of Gain or (loss) Quarter Ended Nine-Month Period Ended Recognized in Income on September 30, September 30, (In thousands) Derivatives 2016 2015 2016 2015 Undesignated economic hedges: Interest rate contracts: Written and purchased interest rate cap agreements Interest income - Loans $ 5 $ 144 $ (2) $ 144 Forward contracts: Sales of TBA GNMA MBS pools Mortgage banking activities 219 (279) (17) (97) Total gain (loss) on derivatives $ 224 $ (135) $ (19) $ 47 Derivative instruments 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 v alues 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. |
OFFSETTING OF ASSETS AND LIABIL
OFFSETTING OF ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
OFFSETTING OF ASSETS AND LIABILITIES | NOTE 11 – OFFSETTING OF ASSETS AND LIABILITIES The Corporation enters into master agreements with counterparties , primarily related to derivatives and repurchase agreements, that may allow for netting of ex posures in the event of default . In an event of default , each party has a right of set-off against the other party for amount s owed under the related agreement and any other amount or obligation owed in respect o f any other agreement or transaction between them. The following table presents informati on about the offsetting of financial assets and liabilities as well as derivative assets and liabilities : Offsetting of Financial Assets and Derivative Assets 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 As of September 30, 2016 Net Amount (In thousands) Description Derivatives $ 191 $ - $ 191 $ (191) $ - $ - Securities purchased under agreements to resell 200,000 (200,000) - - - - Total $ 200,191 $ (200,000) $ 191 $ (191) $ - $ - 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 As of December 31, 2015 Net Amount (In thousands) Description Derivatives $ 806 $ - $ 806 $ (806) $ - $ - Securities purchased under agreements to resell 200,000 (200,000) - - - - Total $ 200,806 $ (200,000) $ 806 $ (806) $ - $ - Offsetting of Financial Liabilities and Derivative Liabilities 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 As of September 30, 2016 Net Amount (In thousands) Description Securities sold under agreements to repurchase $ 500,000 $ (200,000) $ 300,000 $ (300,000) $ - $ - 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 As of December 31, 2015 Net Amount (In thousands) Description Securities sold under agreements to repurchase $ 600,000 $ (200,000) $ 400,000 $ (400,000) $ - $ - |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 9 Months Ended |
Sep. 30, 2016 | |
GOODWILL AND OTHER INTANGIBLES | NOTE 12 – GOODWILL AND OTHER INTANGIBLES Goodwill as of September 30, 2016 and December 31, 2015 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 2015. The Corporation’s goodwill is related to the acquisition of FirstBank Florida in 2005. There have been no events related to the Florida reporting unit that could indicat e potential goodwill impairment since the date of the last evaluation; therefore, no goodwill impairment evaluation was performed during the first nine months of 2016. Goodwill and other indefinite life intangibles are reviewed at least annually for impair ment. 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 rem aining estimated life of 5.2 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 con sumed 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 $5.8 million ($ 4.6 million as of September 30, 2016). In the first quar ter of 2016, FirstBank Insurance Agency acquired certain insurance customer accounts and related customer records and recognized an insurance customer relationship intangible of $1.1 million ($ 1.0 million as of September 30, 2016) , which is being amortize d over the next 6.3 years on a straight-line basis. The list of accounts acquired has a direct relationship to the previous mortgage loan portfolio acquisitions from Doral Bank and Doral Financial in 2015 and 2014. 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 September 30, December 31, 2016 2015 (Dollars in thousands) Core deposit intangible: Gross amount, beginning of period $ 51,664 $ 45,844 Addition as a result of acquisition - 5,820 Accumulated amortization (43,974) (42,498) Net carrying amount $ 7,690 $ 9,166 Remaining amortization period 8.3 9.0 years Purchased credit card relationship intangible: Gross amount $ 24,465 $ 24,465 Accumulated amortization (13,237) (11,146) Net carrying amount $ 11,228 $ 13,319 Remaining amortization period 5.2 5.8 years Insurance Customer relationship intangible: Gross amount $ 1,067 $ - Accumulated amortization (102) - Net carrying amount $ 965 $ - Remaining amortization period 6.3 - For the quarter and nine-month period ended September 30, 2016 , the amortization expense of core deposit intangibles amounted to $ 0.5 million and $ 1.5 million, respectively, (2015 - $ 0.6 million and $ 1.5 million, respectively). For the quarter and nine-month period ended September 30, 2016 , the amortization expense of the purchased credit card relationship intangible amounted to $ 0.7 million and $ 2.1 million, respectively, (2015 - $ 0.8 million and $ 2.3 million, respectively). For the quarter and nine-month period ended September 30, 2016 , the amortization expense of insurance customer relationship intangible amounted to $ 38 thousand and $ 0.1 million , respectively. The estimated aggregate amortization expense related to these intangible assets for future periods is as follows: Amount (In thousands) 2016 $ 1,226 2017 4,495 2018 3,519 2019 3,067 2020 2,851 2021 and after 4,725 |
NON-CONSOLIDATED VARIABLE INTER
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS | 9 Months Ended |
Sep. 30, 2016 | |
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS | NOTE 13 – NON CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS The Corporation transfers residential mortgage loans in sale or securitization transactions in which it has continuing involvement, including servicing responsibilities and guarantee arrangements. All such transfers have been accounted for as sales as required by applicable accounting guidance. When evaluating the need to consolidate counterparties to which the Corporation has transferred assets or with which the Cor poration has entered into other transactions, 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 i s 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 typi cally 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 throu gh these transactions are guaranteed by the issuer and, as such, under seller/servicer agreements, the Corporation is required to service the loans in accordance with the issuers’ servicing guidelines and standards. As of September 30, 2016 , the Corpor ation serviced loans securitized through GNMA with a principal balance of $ 1.4 billion. Trust- Preferred Securities In 2004, FBP Statutory Trust I, a financing trust that is wholly owned by 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 purcha se $ 103.1 million aggregate principal amount of the Corporation’s Junior Subordinated Deferrable Debentures. Also in 2004, FBP Statutory Trust II, a financing trust that is wholly owned by the Corporation, sold to institutional investors $ 125 million of it s 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 purcha se $ 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 Junior Subordinated Deferrable Debentures issued by the Corporation in April 2004 and 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). During the first quarter of 2016, the Corporation completed the repurchase of $ 10 million of trust-preferred securities of the FBP Statutory Trust II that were auctioned in a public sale at which the Corporation was invited to participate. The Corporation repurchased and cancelled the repurchased trust preferred securities, resulting in a commensurate reduction in the related Floating Rate Junior Subordinated Debentures. The Corporation’s winning bid equated to 70 % of the $10 million par value. The 30 % discount, plus accru ed interest, resulted in a gain of approximately $4.2 million, which is reflected in the statement of income as a “Gain on early extinguishment of debt.” During the second quarter of 2015, the Corporation issued 852,831 shares of the Corporation’s common s tock in exchange for $ 5.3 million of trust preferred securities (FBP Statutory Trust I), which enabled the Corporation to cancel $ 5.5 million of the carrying value of the debentures underlying the purchased 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; however, these instruments may remain in Tier 2 capital until the instruments are redeemed or mature. 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 Junior Subordinated Debentures by extending the interest payment period at any time and from time to time during the term of th e subordinated debentures for up to twenty consecutive quarterly periods. During the second quarter of 2016, the Corporation received approval from the Federal Reserve and paid $ 31.2 million for all the accrued but deferred interest payments plus the inter est for the second quarter on the Corporation’s subordinated debentures associated with its trust preferred securities. Subsequently, the Corporation received approval and paid the interest for the third quarter of 2016 amounting to $1.8 million. As of Sep tember 30, 2016, the Corporation is current on all interest payments due related to its subordinated debt. Future interest payments are subject to Federal Reserve approval. It is the intent of the Corporation to request approvals in future periods to c ontinue regularly scheduled quarterly interest payments. Grantor Trusts During 2004 and 2005, a third party to the Corporation, referred to in this subsection 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 provi ded 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. Curre ntly, 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 va riable 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, whic h 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 on the securities. The FDIC became the owner of the IO upon its intervention of the seller, a failed financial institution. No recourse agreement exists and the risks from losses on non-accruing loans and repossessed collateral are absorbed by the Bank as the sole holder of the certificates. As of September 30, 2016 , the amortized cost and fair value of Grantor Trusts amounted to $ 30.6 million and $ 22.1 million, respectively, with a weighted average yield of 2.37 %. Investme nt 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 ha s 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 September 30, 2016 , the carrying amount of the loan was $ 6.8 million, which was included in the Corporation's Commercial and Indus trial loans held for investment portfolio. FirstBank’s equity interest in CPG/GS is accounted for under the equity method . When applying the equity method, the Bank follows the Hypothetical Liquidation Book Value method (“HLBV”) to determine its share of C PG/GS’s earnings or loss. The loss recorded in 2014 reduced to zero the carrying amount of the Bank’s investment in CPG/GS. No negative investment needs to be reported as the Bank has no legal obligation or commitment to provide further financial support t o this entity; thus, no further losses have been or 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 t o 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. T he working capital line expired in September 2016 and no amount is outstanding. During 2012, CP G/GS repaid the outstanding balance of the advance facility to fund unfunded commitments, and the funds became available for rewithdrawal under a one-time revolver agreement. This facility bears variable interest at 30-day LIBOR plus 300 basis points. As o f September 30, 2016 , the carrying value of the revolver agreement was $ 11.4 million, which was included in the Corporation's commercial and industrial loans held for investment portfolio. Ca sh proceeds received by CPG/GS have been first used to cover o perating expenses and debt service payments, including those related to 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 t he 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 inter est 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 distributio ns 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 th at 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 con cluded 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 recei vable, and the interest in CPG/GS, and derecognizing the loan portfolio sold. Servicing Assets The Corporation sells residential mortgage loans to GNMA, which generally securitizes the transferred loans into mortgage-backed securities. Also, certain conventional conforming loans are sold to FNMA or FHLMC, with servicing retained. The Corporation r ecognizes 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 Nine-Month Period Ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Balance at beginning of period $ 25,044 $ 23,519 $ 24,282 $ 22,838 Capitalization of servicing assets 1,420 1,242 3,878 3,789 Amortization (817) (758) (2,424) (2,409) Adjustment to fair value (263) (23) (387) (170) Other (1) 91 (20) 126 (88) Balance at end of period $ 25,475 $ 23,960 $ 25,475 $ 23,960 (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 Nine-Month Period Ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Balance at beginning of period $ 260 $ 202 $ 136 $ 55 Temporary impairment charges 266 41 460 227 Recoveries (3) (18) (73) (57) Balance at end of period $ 523 $ 225 $ 523 $ 225 The components of net servicing income are shown below: Quarter Ended Nine-Month Period Ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Servicing fees $ 1,930 $ 1,796 $ 5,657 $ 5,340 Late charges and prepayment penalties 200 179 505 546 Adjustment for loans repurchased 91 (20) 126 (88) Other (1) - (22) (1) (125) Servicing income, gross 2,221 1,933 6,287 5,673 Amortization and impairment of servicing assets (1,080) (781) (2,811) (2,579) Servicing income, net $ 1,141 $ 1,152 $ 3,476 $ 3,094 (1) Mainly consisted of compensatory fees imposed by GSEs. The Corporation’s servicing assets are subject to prepayment and interest rate risks. Key economic assumptions used in determining the fair value at the time of sale of the related mortgages ranged as follows: Maximum Minimum Nine-Month Period Ended September 30, 2016: Constant prepayment rate: Government-guaranteed mortgage loans 7.6 % 6.1 % Conventional conforming mortgage loans 8.0 % 6.5 % Conventional non-conforming mortgage loans 14.1 % 10.6 % Discount rate: Government-guaranteed mortgage loans 12.0 % 11.5 % Conventional conforming mortgage loans 10.0 % 9.5 % Conventional non-conforming mortgage loans 14.3 % 13.8 % Nine-Month Period Ended September 30, 2015: Constant prepayment rate: Government-guaranteed mortgage loans 9.2 % 7.9 % Conventional conforming mortgage loans 9.0 % 7.9 % Conventional non-conforming mortgage loans 14.4 % 12.9 % Discount rate: Government-guaranteed mortgage loans 11.5 % 11.5 % Conventional conforming mortgage loans 9.5 % 9.5 % Conventional non-conforming mortgage loans 13.8 % 13.8 % As of September 30, 2016 , fair values of the Corporation’s servicing assets were based on a valuation model that incorporates market driven assumptions regarding discount rates and mortgage prep ayment 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 aggregate fair value to immediate 10 % and 20 % adverse changes in those as sumptions for mortgage loans as of September 30, 2016 were as follows: (Dollars in thousands) Carrying amount of servicing assets $ 25,475 Fair value $ 27,937 Weighted-average expected life (in years) 8.42 Constant prepayment rate (weighted-average annual rate) 6.34% Decrease in fair value due to 10% adverse change $ 734 Decrease in fair value due to 20% adverse change $ 1,435 Discount rate (weighted-average annual rate) 11.18% Decrease in fair value due to 10% adverse change $ 1,311 Decrease in fair value due to 20% adverse change $ 2,515 These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on a 10% variation in assumptions generally cannot be extrapolated because the relationship between the change in assumption and the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the servicing asset is calculated without changing any other assumption; in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the sensitivities. |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2016 | |
DEPOSITS | N OTE 15 – DEPOSITS The following table summarizes deposit balances: September 30, December 31, 2016 2015 (In thousands) Type of account: Non-interest bearing checking accounts $ 1,473,528 $ 1,336,559 Savings accounts 2,458,634 2,459,186 Interest-bearing checking accounts 1,153,096 1,088,651 Certificates of deposit 2,337,547 2,356,245 Brokered CDs 1,558,508 2,097,483 $ 8,981,313 $ 9,338,124 Brokered CDs mature as follows: September 30, 2016 (In thousands) Three months or less $ 343,396 Over three months to six months 255,574 Over six months to one year 350,362 One to three years 524,386 Three to five years 84,605 Over five years 185 Total $ 1,558,508 The following are the components of interest expense on deposits: Quarter Ended Nine-Month Period Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Interest expense on deposits $ 16,130 $ 15,947 $ 49,104 $ 48,402 Accretion of premium from acquisition (43) (156) (181) (441) Amortization of broker placement fees 655 1,060 2,300 3,564 Interest expense on deposits $ 16,742 $ 16,851 $ 51,223 $ 51,525 |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 9 Months Ended |
Sep. 30, 2016 | |
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: (Dollars in thousands) September 30, 2016 December 31, 2015 Repurchase agreements, interest ranging from 1.96% to 3.84% (December 31, 2015- 1.96% to 3.41%) (1)(2) $ 600,000 $ 700,000 (1) Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. (2) As of September 30, 2016, includes $500 million with an average rate of 3.56% that lenders have the right to call before their contractual maturities at various dates beginning on October 11, 2016. In addition, $400 million is tied to variable rates. Repurchase agreements mature as follows: September 30, 2016 (In thousands) One month to three months $ 300,000 One year to three years 100,000 Over five years 200,000 Total $ 600,000 As of September 30, 2016 and December 31, 201 5 , the securities underlying such agreements were delivered to the dealers with which the repurchase agreements were transacted. Repurchase agreements as of September 30, 2016, grouped by counterparty, were as follows: (Dollars in thousands) Weighted-Average Counterparty Amount Maturity (In Months) Citigroup Global Markets $ 300,000 1 Dean Witter / Morgan Stanley 100,000 13 JP Morgan Chase 200,000 64 $ 600,000 |
ADVANCES FROM THE FEDERAL HOME
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30, December 31, (Dollars in thousands) 2016 2015 Fixed-rate advances from FHLB, with a weighted- average interest rate of 1.40% (December 31, 2015 - 1.30%) $ 355,000 $ 455,000 Advances from FHLB mature as follows: (In thousands) September 30, 2016 Over six months to one year $ 200,000 Over one year to three years 25,000 Over three to four years 130,000 Total $ 355,000 As of September 30, 2016 , the Corporation had additional capacity of approximately $ 1.1 billion on this credit facility based on collateral pledged at the FHLB, including a haircut reflecting the perceived risk associated with holding the collateral. |
OTHER BORROWINGS
OTHER BORROWINGS | 9 Months Ended |
Sep. 30, 2016 | |
OTHER BORROWINGS | NOTE 18 – OTHER BORROWINGS Other borrowings consist of: September 30, December 31, (In thousands) 2016 2015 Junior subordinated debentures due in 2034, interest-bearing at a floating rate of 2.75% over 3-month LIBOR (3.61% as of September 30, 2016 and 3.28% as of December 31, 2015) $ 97,630 $ 97,626 Junior subordinated debentures due in 2034, interest-bearing at a floating rate of 2.50% over 3-month LIBOR (3.36% as of September 30, 2016 and 3.07% as of December 31, 2015) (1) 118,557 128,866 $ 216,187 $ 226,492 (1) Refer to Note 13 - Non-Consolidated Variable Interest Entities and Servicing Assets - Trust Preferred Securities for additional information about the Corporation's repurchase and cancellation of $10 million of trust preferred securities associated with these junior subordinated debentures. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2016 | |
STOCKHOLDERS' EQUITY | NOTE 18 – STOCKHOLDERS’ EQUITY Common Stock As of September 30, 2016 and December 31, 2015 , the Corporation had 2,000,000,000 authorized shares of common stock with a par value of $0.10 per share. As of September 30, 2016 and December 31, 2015 , there were 218,605,179 and 216,051,128 shares issued, respectively, and 217,387,647 and 215,088,698 shares outstanding, respectively. On July 30, 2009, the Corporation announced the suspension of common and preferred stock dividends eff ective with the preferred dividend for the month of August 2009. Refer to Note 3 for information about transactio ns related to common stock under the Omnibus Plan. Preferred Stock The Corporation has 50,000,000 authorized shares of preferred stock with a par value of $ 1.00 , redeemable at the Corporation’s option subject to certain terms. This stock may be issued in series and the shares of each series will have such rights and preferences as are fixed by the Board of Directors when authorizing the issuan ce of that particular series. As of September 30, 2016 , the Corporation has five outstanding series of non-convertible, non-cumulative preferred stock: 7.125 % non-cumulative perpetual monthly income preferred stock, Series A; 8.35 % non-cumulative perpe tual monthly income preferred stock, Series B; 7.40 % non-cumulative perpetual monthly income preferred stock, Series C; 7.25 % non-cumulative perpetual monthly income preferred stock, Series D; and 7.00 % non-cumulative perpetual monthly income preferred sto ck, Series E. The liquidation value per share is $ 25 . Effective January 17, 2012, the Corporation delisted all of its outstanding series of non-convertible, non-cumulative preferred stock from the New York Stock Exchange. The Corporation has not arrange d 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. Treasury stock During the first nine months of 2016 and 2015 , the Corporation withheld an aggregate of 255,102 shares and 181,649 shares, respectively, of the common stock paid to certain senior officers as additional compensation and vested rest ricted stock to cover employees’ payroll and income tax withholding liabilities; these shares are held as treasury shares. As of September 3 0 , 201 6 and December 31, 201 5 , the Corporation had 1,217,532 and 962,430 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-capit al on common and preferred stock. Amounts transferred to the legal surplus account from the retained earnings account are not available for distribution to the Corporation, including for payment as dividends to the stockholders, without the prior consent o f 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 agains t 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 2015, $ 2.8 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 $ 42.8 million as of September 30, 2016. There were no transfers to the legal surplus reserve during the first nine months of 2016. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2016 | |
INCOME TAXES | NOTE 19 - INCOME TAXES Income tax expense includes Puerto Rico and USVI income taxes as well as applicable 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 con duct of a trade or business in those regions. Any such tax paid in the U.S. and USVI 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 offs et 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 in Puerto Rico 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”) u nit of the Bank, and through the Bank’s subsidiary, FirstBank Overseas Corporation, whose interest income and gain on sales is exempt from Puerto Rico 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 co rporate standard rates to the extent that the IBE’s net income exceeds 20 % of the bank’s total net taxable income. As of September 30, 2016, the Corporation’s deferred tax assets, net of a valuation allowance of $ 201.7 million, amounted to $ 290.9 million and manag ement 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 an income tax expense of $10.4 million and $23.7 million in the third quarter and the first nine months of 2016, respectively, compared to an income tax expense of $4.5 million and $2.7 million for the same periods in 2015. The change in income tax expense in the third quarter of 2016, when compared to the third quarter of 2015, is mainly dri ven by higher taxable income. For the nine-month period ended September 30, 2016, the Corporation calculated the provision for income taxes by app lying the estimated annual effective tax rate for the full fiscal year to ordinary income or loss. In the computation of the consolidated worldwide estimated annual effective tax rate, ASC 740-270 requires the exclusion of legal entities with pre-tax losse s from which a tax benefit cannot be recognized. The consolidated worldwide estimated annual effective tax rate, excluding entities with pre-tax losses from which a tax benefit cannot be recognized, was 24 % for the nine-month period ended September 30, 2016 , compared to 17 % for the same period in 2015. The increase in the estimated effective tax rate for the nine month period ended September 30, 2016, when compared to the same period in 2015, reflects the impact in 2015 of a release in the valuation allowanc e resulting from the bargain purchase gain , which generated a deferred tax liability. As required by ASC 740-270, changes in the valuation allowance related to the current year are included in the computation of the estimated effective tax rate for the yea r. The effective tax rate including all entities for the first nine months of 2016 was 25 %, compared to 30 % for the same period in 2015. As of September 30, 2016, the Corporation did not have Unrecognized Tax Benefits (“UTBs”) recorded on its books. Audit periods remain open for review until the statute of limitations has passed. The statute of limitations under the 2011 PR code is 4 years; the statute of limitations for income taxes purposes for each of the Virgin Islands and U.S. is three years after a tax return i s 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 adjust ment 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 2011 remain open to examination. The 2012 U.S. federal tax return is currently under examination by the IRS. For Puerto Rico tax purposes, all tax years subsequent to 2011 remain open to examination. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2016 | |
FAIR VALUE | NOTE 20 – 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 2016 , there were 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, when available, market prices for identical or comparable ass ets (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 resear ch operations (Level 2). Observable prices in the market already consider the risk of nonperformance. During the first nine months of 201 6, the Corporation recorded OTTI charges of $6.3 million on certain Puerto Rico Government debt securities, specificall y bonds of the GDB and the Puerto Rico Public Buildings Authority. The credit impairment loss was based on the probability of default and loss severity in the eve nt of default in consideration of the latest information available about the Puerto Rico G over nment’s financial condition. Refer to Note 4 - Investment Securities, for significant assumptions used to determine the credit impairment portion, including default rates and recovery rates , which are unobservable inputs. 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 c ollateralized 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 v aluation 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 va luation is derived from a model that utilizes relevant assumptions such as the prepayment rate, default rate, and loss severity on a loan level basis. The Corporation modeled the cash flow from the fixed-rate mortgage collateral using a static cash flow an alysis 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 commerc ially 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 charac teristics (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. On interest ca ps, only the seller's credit risk is considered. The caps were valued using a discounted cash flow approach using the related LIBOR and swap rate for each cash flow. Although most of the derivative instruments are fully collateralized, a credit spread i s 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 quarter and nine-month periods ended September 30, 2016 and 2015 was immaterial. Assets and liabilities measured at fair value on a recurring basis are summarized below: As of September 30, 2016 As of December 31, 2015 Fair Value Measurements Using Fair Value Measurements Using (In thousands) Level 1 Level 2 Level 3 Assets/Liabilities at Fair Value Level 1 Level 2 Level 3 Assets/Liabilities at Fair Value Assets: Securities available for sale : Equity securities $ 419 $ - $ - $ 419 $ - $ - $ - $ - U.S. Treasury Securities 7,514 - - 7,514 7,497 - - 7,497 Noncallable U.S. agency debt - 366,838 - 366,838 - 315,467 - 315,467 Callable U.S. agency debt and MBS - 1,419,951 - 1,419,951 - 1,509,807 - 1,509,807 Puerto Rico government obligations - 24,653 2,167 26,820 - 26,327 1,890 28,217 Private label MBS - - 22,211 22,211 - - 25,307 25,307 Other investments - - 100 100 - - 100 100 Derivatives, included in assets: Purchased interest rate cap agreements - 191 - 191 - 806 - 806 Forward contracts - 4 - 4 - - - - Liabilities: Derivatives, included in liabilities: Written interest rate cap agreement - 191 - 191 - 798 - 798 Forward contracts - 144 - 144 - 123 - 123 The table below presents a reconciliation of the beginning and ending balances of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the quarters and nine-month periods ended September 30, 2016 and 2015 : Quarter Ended September 30, 2016 2015 Level 3 Instruments Only Securities Securities (In thousands) Available For Sale (1) Available For Sale (1) Beginning balance $ 26,020 $ 31,640 Total gains or (losses) (realized/unrealized): Included in earnings - (231) Included in other comprehensive income (477) 345 Principal repayments and amortization (1,065) (2,046) Ending balance $ 24,478 $ 29,708 (1) Amounts mostly related to private label mortgage-backed securities. Nine-Month Period Ended September 30, 2016 2015 Level 3 Instruments Only Securities Securities (In thousands) Available For Sale (1) Available For Sale (1) Beginning balance $ 27,297 $ 36,212 Total gains or (losses) (realized/unrealized): Included in earnings (387) (628) Included in other comprehensive income 1,339 1,489 Purchases - 100 Principal repayments and amortization (3,771) (7,465) Ending balance $ 24,478 $ 29,708 (1) Amounts mostly related to private label mortgage-backed securities. 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 September 30, 2016: September 30, 2016 (In thousands) Fair Value Valuation Technique Unobservable Input Range Investment securities available-for-sale: Private label MBS $ 22,130 Discounted cash flow Discount rate 13.3% Prepayment rate 6.5% -22.5% (Weighted Average 13.7%) Projected cumulative loss rate 0.2% -9.1% (Weighted Average 4.0%) Puerto Rico Government Obligations 2,167 Discounted cash flow Prepayment rate 3.00% 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, lo ss severity assumptions, and prepayment rates in isolation would generally result in an adverse effect on the fair value of the instruments. Meaningful and possible shifts of each input were modeled to assess the effect on the fair value estimation. Puer to Rico Government Obligations : The significant unobservable input used in the fair value measurement is the assumed prepayment rate of the underlying residential mortgage loans collateral on these obligations that are guaranteed by the Puerto Rico Housin g Finance Authority (“PRHFA”). 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 due to the guarantee of the PRHFA. The PRHFA credit risk is modeled by discounting the cash flows using a curve appropriate to the PRHFA credit rating. The tables below summarize changes in unrealized gains and losses recorded in earnings for the quarters and nine-month periods ended September 30, 2016 and 2015 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 September 30, 2016) (Quarter ended September 30, 2015) 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 available-for-sale investment securities (credit component) $ - $ (231) Changes in Unrealized Losses Changes in Unrealized Losses (Nine-Month Period Ended September 30, 2016) (Nine-Month Period Ended September 30, 2015) 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 available-for-sale investment securities (credit component) $ (387) $ (628) 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 September 30, 2016, 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 September 30, 2016 (Losses) recorded for the Quarter Ended September 30, 2016 (Losses) recorded for the Nine-Month Period Ended September 30, 2016 Level 1 Level 2 Level 3 (In thousands) Loans receivable (1) $ - $ - $ 426,444 $ (13,912) $ (41,621) OREO (2) - - 139,446 (1,702) (6,580) Mortgage servicing rights (3) - - 25,475 (263) (387) (1) Consist mainly of impaired commercial and construction loans. The impairment was generally measured based on the fair value of the collateral. The fair value was derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g. absorption rates), which are not market observable. (2) The fair value was derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g. absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. (3) Fair value adjustments to mortgage servicing rights were mainly due to assumptions associated with mortgage prepayment rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate of 6.34%, Discount Rate of 11.18%. As of September 30, 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 September 30, 2015 (Losses) recorded for the Quarter Ended September 30, 2015 (Losses) recorded for the Nine-Month Period Ended September 30, 2015 Level 1 Level 2 Level 3 (In thousands) Loans receivable (1) $ - $ - $ 332,688 $ (7,864) $ (22,431) OREO (2) - - 124,442 (4,025) (8,790) Mortgage servicing rights (3) - - 23,960 (23) (170) Loans Held For Sale (4) - - 8,027 - - (1) Consist mainly of impaired commercial and construction loans. The impairment was generally measured based on the fair value of the collateral. The fair value was derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g. absorption rates), which are not market observable. (2) The fair value was derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g. absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. (3) Fair value adjustments to the mortgage servicing rights were mainly due to assumptions associated with mortgage prepayments rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment Rate of 9.32%, Discount Rate of 10.64%. (4) The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans. Qualitative information regarding the fair value measurements for Level 3 financial instruments is as follows: September 30, 2016 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 6.34%; weighted average discount rate of 11.18% 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 that are 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 n onperformance. Investment securities held to maturity Investment securities held to maturity consist of financing arrangements with Puerto Rico municipalities issued in bond form, but underwritten as loans with features that are typically found in co mmercial loan transactions. These obligations typically are not issued in bearer form, nor are they registered with the SEC and are not rated by external credit agencies. The fair value of these financing arrangements was based on a discounted cash flow an alysis using risk-adjusted discount rates (Level 3) . A securi ty with similar characteristics traded in the o pen market is used as a proxy for each municipal bond. Then the cash flow is discounted at the average spread over the discount curve exhibited by t he proxy security at the end of each quarter. 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 valu e. 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 segm ented 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, prepayme nt estim ates were based on a prepayment 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 appro priate 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 o bservable transactions involving similar assets in similar locations. 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 ass umed. Discount rates were based on the LIBOR yield curve. The estimated fair value of total deposits excludes the fair value of core deposit intangibles, which represent the value of the customer relationship . The fair value of total deposits is measur ed 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 dis counted 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 September 30, 2016 . The fair value does not in corporate 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 repo rting period. The brokers who are the counterparties provide these indications, which the Corporation evaluates . Securities sold under agreements to repurchase are fully collateralized by investment securities. Advances from FHLB The fair value of ad vances from the FHLB with fixed maturities is determined using discounted cash flow analyses over the full term of the borrowings, using indications of the fair value of similar transactions. The cash flows assume no early repayment of the borrowings. Disc ount rates are based on the LIBOR yield curve. Advances from the FHLB are fully collateralized by mortgage loans and, to a lesser extent, investment securities. Other borrowings Other borrowings consist of junior subordinated debentures. Projected cash flows from the debentures were discounted using the Bloomberg BB Finance curve plus a credit spread. This credit spread was estimated using the difference in yield curves between s w ap rates and a yield curve that considers the industry and credit rating of the Corporation as issuer of the debentures at a tenor comparable to the time to maturity of the debentures. The following tables present the carrying value and the estimated fair value of financial instruments as of September 30, 2016 and December 31, 2015: Total Carrying Amount in Statement of Financial Condition September 30, 2016 Fair Value Estimate September 30, 2016 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments $ 528,943 $ 528,943 $ 528,943 $ - $ - Investment securities available for sale 1,843,853 1,843,853 7,933 1,811,442 24,478 Investment securities held to maturity 156,190 132,241 - - 132,241 Other equity securities 28,717 28,717 - 28,717 - Loans held for sale 56,779 60,283 - 50,497 9,786 Loans held for investment 8,863,654 Less: allowance for loan and lease losses (214,070) Loans held for investment, net of allowance $ 8,649,584 8,462,434 - - 8,462,434 Derivatives, included in assets 195 195 - 195 - Liabilities: Deposits 8,981,313 9,003,706 - 9,003,706 - Securities sold under agreements to repurchase 600,000 646,505 - 646,505 - Advances from FHLB 355,000 356,925 - 356,925 - Other borrowings 216,187 174,997 - - 174,997 Derivatives, included in liabilities 335 335 - 335 - Total Carrying Amount in Statement of Financial Condition December 31, 2015 Fair Value Estimate December 31, 2015 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments $ 752,458 $ 752,458 $ 752,458 $ - $ - Investment securities available for sale 1,886,395 1,886,395 7,497 1,851,601 27,297 Investment securities held to maturity 161,483 131,544 - - 131,544 Other equity securities 32,169 32,169 - 32,169 - Loans held for sale 35,869 36,844 - 28,709 8,135 Loans held for investment 9,112,382 Less: allowance for loan and lease losses (240,710) Loans held for investment, net of allowance $ 8,871,672 8,768,152 - - 8,768,152 Derivatives, included in assets 806 806 - 806 - Liabilities: Deposits 9,338,124 9,334,073 - 9,334,073 - Securities sold under agreements to repurchase 700,000 752,048 - 752,048 - Advances from FHLB 455,000 453,182 - 453,182 - Other borrowings 226,492 142,846 - - 142,846 Derivatives, included in liabilities 921 921 - 921 - |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended |
Sep. 30, 2016 | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 22 – SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information is as follows: Nine-Month Period Ended September 30, 2016 2016 2015 (In thousands) Cash paid for: Interest on borrowings $ 104,031 $ 70,016 Income tax 1,878 3,404 Non-cash investing and financing activities: Additions to other real estate owned 37,606 44,415 Additions to auto and other repossessed assets 42,934 57,901 Capitalization of servicing assets 3,878 3,789 Loan securitizations 238,599 213,391 Loans held for investment transferred to held for sale 10,332 - Loans held for sale transferred to held for investment 1,321 - Trust preferred securities exchanged for new common stock issued: Trust preferred securities exchanged - 5,303 New common stock issued - 5,628 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 | 9 Months Ended |
Sep. 30, 2016 | |
SEGMENT INFORMATION | NOTE 22 – 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 September 30, 2016 , the Corporation had six reportable segments: Commercial and Corporate Banking; Mortgage Banking; Consumer (Retail) Banking; Treasury and Invest ments; United States Operations; and Virgin Islands Operations. Management determined the reportable segments based on the internal reporting used to evaluate performance and to assess whe re 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 s 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 consist s 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 conduc ted by the Corporation in the U S VI and BVI , including commerc ial and retail banking services. The accounting policies of the segments are the same as those referred to in Note 1, “Basis of Presentation and Significant Accounting Policies,” in the audited consolidated financial statements of the Corporation for the year ended December 31, 201 5 , which are included in the Corporation’s 201 5 Annual Report on F orm 10-K . The Corporation evaluates the performance of the segments bas ed on net interest income, the 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 September 30, 2016: Interest income $ 34,605 $ 44,455 $ 28,981 $ 12,529 $ 13,944 $ 9,059 $ 143,573 Net (charge) credit for transfer of funds (12,074) 2,810 (6,700) 15,839 125 - - Interest expense - (6,323) - (14,487) (3,811) (774) (25,395) Net interest income 22,531 40,942 22,281 13,881 10,258 8,285 118,178 (Provision) release for loan and lease losses (3,860) (8,655) (8,162) - 2,024 (2,850) (21,503) Non-interest income 5,222 11,292 985 6,154 884 1,609 26,146 Direct non-interest expenses (8,864) (27,100) (11,871) (914) (7,556) (7,097) (63,402) Segment income (loss) $ 15,029 $ 16,479 $ 3,233 $ 19,121 $ 5,610 $ (53) $ 59,419 Average earning assets $ 2,549,358 $ 1,973,424 $ 2,410,037 $ 2,565,019 $ 1,252,271 $ 604,150 $ 11,354,259 (In thousands) Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Treasury and Investments United States Operations Virgin Islands Operations Total For the quarter ended September 30, 2015: Interest income $ 36,180 $ 48,528 $ 32,636 $ 11,500 $ 11,229 $ 9,739 $ 149,812 Net (charge) credit for transfer of funds (12,629) 4,335 (4,058) 8,563 3,789 - - Interest expense - (5,869) - (14,305) (3,931) (778) (24,883) Net interest income 23,551 46,994 28,578 5,758 11,087 8,961 124,929 (Provision) release for loan and lease losses (6,750) (13,946) (11,355) - 1,307 (432) (31,176) Non-interest income 3,982 11,759 647 (174) 778 1,766 18,758 Direct non-interest expenses (8,977) (32,669) (10,896) (1,103) (6,914) (7,441) (68,000) Segment income $ 11,806 $ 12,138 $ 6,974 $ 4,481 $ 6,258 $ 2,854 $ 44,511 Average earning assets $ 2,642,388 $ 1,959,951 $ 2,760,788 $ 2,531,084 $ 1,048,451 $ 644,769 $ 11,587,431 (In thousands) Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Treasury and Investments United States Operations Virgin Islands Operations Total Nine-Month Period Ended September 30, 2016 Interest income $ 104,865 $ 135,655 $ 93,915 $ 39,206 $ 40,091 $ 27,606 $ 441,338 Net (charge) credit for transfer of funds (37,673) 10,546 (18,212) 44,226 1,113 - - Interest expense - (18,765) - (45,828) (11,214) (2,477) (78,284) Net interest income 67,192 127,436 75,703 37,604 29,990 25,129 363,054 (Provision) release for loan and lease losses (21,608) (24,451) (17,730) - 1,563 (1,316) (63,542) Non-interest income 14,381 35,318 2,459 3,815 2,799 5,621 64,393 Direct non-interest expenses (29,828) (87,218) (33,194) (3,462) (23,070) (20,757) (197,529) Segment income $ 30,137 $ 51,085 $ 27,238 $ 37,957 $ 11,282 $ 8,677 $ 166,376 Average earning assets $ 2,576,194 $ 1,989,426 $ 2,489,268 $ 2,774,118 $ 1,188,463 $ 613,666 $ 11,631,135 (In thousands) Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Treasury and Investments United States Operations Virgin Islands Operations Total Nine-Month Period Ended September 30, 2015 Interest income $ 106,352 $ 147,395 $ 100,192 $ 36,276 $ 34,477 $ 29,237 $ 453,929 Net (charge) credit for transfer of funds (36,212) 12,816 (11,746) 23,936 11,206 - - Interest expense - (17,379) - (44,834) (12,326) (2,337) (76,876) Net interest income 70,140 142,832 88,446 15,378 33,357 26,900 377,053 (Provision) release for loan and lease losses (21,657) (36,588) (84,170) - 6,715 (2,712) (138,412) Non-interest income (loss) 11,866 35,504 2,350 (13,046) 2,032 6,008 44,714 Direct non-interest expenses (26,270) (96,690) (30,013) (3,487) (21,293) (24,892) (202,645) Segment income (loss) $ 34,079 $ 45,058 $ (23,387) $ (1,155) $ 20,811 $ 5,304 $ 80,710 Average earning assets $ 2,601,892 $ 1,956,352 $ 2,947,562 $ 2,683,313 $ 1,001,860 $ 640,027 $ 11,831,006 The following table presents a reconciliation of the reportable segment financial information to the consolidated totals: Quarter Ended Nine-Month Period Ended September 30, September 30, 2016 2015 2016 2015 Net income : Total segment income $ 59,419 $ 44,511 $ 166,376 $ 80,710 Other non-interest income (1) - - - 13,443 Other operating expenses (2) (24,901) (25,277) (73,315) (85,159) Income before income taxes 34,518 19,234 93,061 8,994 Income tax expense (10,444) (4,476) (23,690) (2,664) Total consolidated net income $ 24,074 $ 14,758 $ 69,371 $ 6,330 Average assets: Total average earning assets for segments $ 11,354,259 $ 11,587,431 $ 11,631,135 $ 11,831,006 Average non-earning assets 926,043 925,723 927,732 916,817 Total consolidated average assets $ 12,280,302 $ 12,513,154 $ 12,558,867 $ 12,747,823 (1) The bargain purchase gain on the acquisition of assets and assumption of deposits from Doral Bank in 2015 is presented as Other non-interest income in the table above. (2) Expenses pertaining to corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment are not included in the reported financial results of the operating segments. The unallocated corporate expenses include certain general and administrative expenses and related depreciation and amortization expenses. |
REGULATORY MATTERS, COMMITMENTS
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2016 | |
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES | NOTE 23 – 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 ac tion, 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 a mounts and classification are also subject to qualitative judgments and adjustment by the regulators with respect to minimum capital requirements, components, risk weightings, and other factors. First BanCorp. is subject to the Written Agreement that the Corporation entered into with the New York FED 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 an d the Federal Reserve Board, (1) the holding company may not pay dividends to stockholders or receive dividends from FirstBank, (2) the holding company and its nonbank subsidiaries may not make payments on trust-preferred securities or subordinated debt, a nd (3) the holding company cannot incur, increase, or guarantee debt or repurchase any capital securities. The Written Agreement also required that the holding company submit a capital plan acceptable to the New York FED that reflected sufficient capital a t First BanCorp. on a consolidated basis 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 lan guage of the Written Agreement, which the Corporation filed with the SEC. The Corporation submitted its Capital Plan setting forth its plans for how to improve its 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 m ention assets. As of September 30, 2016, 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 quarter ly progress reports. Although the Corporation and FirstBank became subject to the U.S. Basel III capital rules (“Basel III rules”) beginning on January 1, 2015, certain requirements of the Basel III rules will be phased in over several years. The phase-in period for certain deductions and adjustments to regulatory capital (such as certain intangible assets and deferred tax assets that arise from net operating losses and tax credit carryforwards) will be completed on January 1, 2018. The Corporation and Fir stBank compute risk-weighted assets using the Standardized Approach required by the Basel III rules. The Basel III rules require the Corporation to maintain an additional capital conservation buffer of 2.5 % to avoid limitations on both (i) capital distr ibutions (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. The phase-in of the capital conservation buffer began on January 1, 2016 with a first year requirement of 0.625 % of additional Common Equity Tier 1 Capital (“CET1”), which will be progressively increased over a four-year period, increasing by that same percentage amount on each subsequent January 1 until it r eaches the fully phased-in 2.5% CET1 requirement on January 1, 2019. Under the fully phased-in Basel III rules, in order to be considered adequately capitalized, the Corporation will be required to maintain: (i) a minimum CET1 capital 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 conservati on 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 ca pital 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. In addition, as required under the Basel III rules, the Corporation’s trust pref erred securities (“TRuPs”) were fully phased out from Tier 1 capital on January 1, 2016. However, the Corporation’s TRuPs may continue to be included in Tier 2 capital until the instruments are redeemed or mature . In March 2016, the FDIC adopted a final rule (“Final Rule”) impos ing a quarterly deposit insurance assessment surcharge on banks with at least $ 10 billion in assets of 4.5 cents per $ 100 of their assessment base, after making certain adjustments once the Deposit Insurance Fund Reserve Ratio reaches or exceeds 1.15 percent . For purposes of this surc harge, the first $10 billion of assets are subtracted from the regular insurance assessment base to determine the surcharge base. The assessment surcharge became effective on July 1, 2016 , is assessed as of the third quarter of 2016, and applies to FirstBank. The Bank’s current surcharge base is slightly higher than the $10 billion threshold. The surcharge assessments will continue through December 31, 2018 or until the Deposit Insurance Fund Reserve Ratio reaches or exceeds 1.35 percent. In addition, under existing regulations, the FDIC reduced the initial base assessment rate, which reduce s the standard risk-based assessment rate. This resulted in a decrease in the total FDIC insurance premium expense (standard risk-based assessment plus assessment surcharge expense) of approximately $ 0.8 million in the third quarter of 2016, as the benefit of the reduction in the initial base assessment rate exceeded the surcharge amount. In addition, under the Final Rule, if the Deposit Insurance Fund Reserve Ratio does not reach 1.35 percent by December 31, 2018, a shortfall assessment may be assessed on large banks in the first quarter of 2019 and collected by the FDIC on June 30, 2019. Other Recent Regulatory Developments In May 2016, the federal banking agencies proposed regulations governing incentive-based compensation practices at covered banking institutions. These proposed rules are intended to better align the financial rewards for covered employees with an institut ion’s long-term safety and soundness. Portions of these proposed rules would apply to the Corporation and FirstBank. Those applicable provisions would generally (i) prohibit types and features of incentive-based compensation arrangements that encourage ina ppropriate risk because they are “excessive” or “could lead to material financial loss” at the banking institution; (ii) require incentive-based compensation arrangements to adhere to three basic principles: (1) a balance between risk and reward; (2) effec tive risk management and controls; and (3) effective governance; and (iii) require appropriate board of directors (or committee) oversight and recordkeeping and disclosures to the banking institution’s primary regulatory agency. The nature and substance of any final action to adopt these proposed rules, and the timing of any such action, are not known at this time. Please refer to the discussion in “Part I – Item 7 – Business – Supervision and Regulation” in the Corporation’s 2015 Form 10-K for a more complete discussion of supervision and regulatory matters and activities that affect the Corporation and its subs idiaries. The Corporation's and its banking subsidiary's regulatory capital positions as of September 30, 2016 and December 31, 2015 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 September 30, 2016 Total Capital (to Risk-Weighted Assets) First BanCorp. $ 1,892,493 21.27% $ 711,754 8.0% N/A N/A FirstBank $ 1,843,533 20.73% $ 711,460 8.0% $ 889,325 10.0% Common Equity Tier 1 Capital (to Risk-Weighted Assets) First BanCorp. $ 1,569,482 17.64% $ 400,362 4.5% N/A N/A FirstBank $ 1,496,670 16.83% $ 400,196 4.5% $ 578,061 6.5% Tier I Capital (to Risk-Weighted Assets) First BanCorp. $ 1,569,482 17.64% $ 533,816 6.0% N/A N/A FirstBank $ 1,730,264 19.46% $ 533,595 6.0% $ 711,460 8.0% Leverage ratio First BanCorp. $ 1,569,482 13.04% $ 481,357 4.0% N/A N/A FirstBank $ 1,730,264 14.40% $ 480,751 4.0% $ 600,939 5.0% As of December 31, 2015 Total Capital (to Risk-Weighted Assets) First BanCorp. $ 1,828,559 20.01% $ 731,164 8.0% N/A N/A FirstBank $ 1,802,711 19.73% $ 730,824 8.0% $ 913,530 10.0% Common Equity Tier 1 Capital (to Risk-Weighted Assets) First BanCorp. $ 1,546,678 16.92% $ 411,280 4.5% N/A N/A FirstBank $ 1,493,478 16.35% $ 411,088 4.5% $ 593,794 6.5% Tier I Capital (to Risk-Weighted Assets) First BanCorp. $ 1,546,678 16.92% $ 548,373 6.0% N/A N/A FirstBank $ 1,685,656 18.45% $ 548,118 6.0% $ 730,824 8.0% Leverage ratio First BanCorp. $ 1,546,678 12.22% $ 506,322 4.0% N/A N/A FirstBank $ 1,685,656 13.33% $ 505,648 4.0% $ 632,060 5.0% 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 September 3 0 , 201 6 , commitments to extend credit amounted to approximately $ 1.1 b illion, of which $ 631.5 million relates to credit card loans. Commercial and Financial standby letters of credit amounted to approximately $ 46. 7 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 c ommitments 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 o f credit cards and personal lines of credit, the Corporation can cancel the unused credit facility at any time and without cause. Generally, the Corporation do es not enter into interest rate lock agreements with pros pective borrowers in connection with its mortgage banking activities . As of September 3 0, 201 6 , 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 | 9 Months Ended |
Sep. 30, 2016 | |
FIRST BANCORP. (Holding Company Only) Financial Information | NOTE 24 – FIRST BANCORP. (HOLDING COMPANY ONLY) FINANCIAL INFORMATION The following condensed financial information presents the financial position of the Holding Company only as of September 30, 2016 and December 31, 2015 and the results of its operations for the quarters and nine - month periods ended September 30, 2016 and 2015 . Statements of Financial Condition As of September 30, As of December 31, 2016 2015 (In thousands) Assets Cash and due from banks $ 29,074 $ 29,103 Money market investments 6,111 6,111 Other investment securities 285 285 Loans held for investment, net 236 266 Investment in First Bank Puerto Rico, at equity 1,960,090 1,888,036 Investment in First Bank Insurance Agency, at equity 9,991 14,382 Investment in FBP Statutory Trust I 2,929 2,929 Investment in FBP Statutory Trust II 3,561 3,866 Other assets 4,354 4,632 Total assets $ 2,016,631 $ 1,949,610 Liabilities and Stockholders' Equity Liabilities: Other borrowings $ 216,187 $ 226,492 Accounts payable and other liabilities 558 28,984 Total liabilities 216,745 255,476 Stockholders' equity 1,799,886 1,694,134 Total liabilities and stockholders' equity $ 2,016,631 $ 1,949,610 Statements of Income Quarter Ended Nine-Month Period Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) (In thousands) Income: Interest income on money market investments $ 5 $ 5 $ 15 $ 15 Dividend income from subsidiaries 1,822 - 39,980 - Other income 58 58 181 439 1,885 63 40,176 454 Expense: Other borrowings 1,817 1,861 5,777 5,521 Other operating expenses 685 643 2,313 2,000 2,502 2,504 8,090 7,521 Gain on early extinguishment of debt - - 4,217 - (Loss) income before income taxes and equity in undistributed earnings of subsidiaries (617) (2,441) 36,303 (7,067) Equity in undistributed earnings of subsidiaries 24,691 17,199 33,068 13,397 Net income $ 24,074 $ 14,758 $ 69,371 $ 6,330 Other Comprehensive (loss) income, net of tax (12,157) 16,709 32,109 13,681 Comprehensive income $ 11,917 $ 31,467 $ 101,480 $ 20,011 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2016 | |
SUBSEQUENT EVENTS | NOTE 26 – SUBSEQUENT EVENTS The Corporation has performed an evaluation of events occurring subsequent to September 30, 201 6 ; management has determin ed that there are no events occurring in this period that require disclosure in or adjustment to the accompanying financial statements. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Earning Per Share [Table Text Block] | The calculations of earnings per common share for the quarters and nine-month periods ended September 30, 2016 and 2015 are as follows: Quarter Ended Nine-Month Period Ended September 30, September 30, 2016 2015 2016 2015 (In thousands, except per share information) Net income $ 24,074 $ 14,758 $ 69,371 $ 6,330 Net income attributable to common stockholders $ 24,074 $ 14,758 $ 69,371 $ 6,330 Weighted-Average Shares: Average common shares outstanding 212,927 211,820 212,682 211,255 Average potential dilutive common shares 3,651 1,963 2,577 1,341 Average common shares outstanding- assuming dilution 216,578 213,783 215,259 212,596 Earnings per common share: Basic $ 0.11 $ 0.07 $ 0.33 $ 0.03 Diluted $ 0.11 $ 0.07 $ 0.32 $ 0.03 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Activity of Stock Options | The activity of stock options granted under the 1997 stock option plan for the nine-month period ended September 30, 2016 is set forth below: Weighted-Average Remaining Aggregate Number of Weighted-Average Contractual Term Intrinsic Value Options Exercise Price (Years) (In thousands) Beginning of period outstanding and exercisable 69,848 $ 160.30 Options expired (34,326) 183.37 Options cancelled (533) 138.00 End of period outstanding and exercisable 34,989 $ 138.00 0.3 $ - |
Restricted Stock Activity Under Omnibus Plan | The following table summarizes the restricted stock activity in the first nine months of 2016 under the Omnibus Plan for both executive officers covered by the TARP requirements and other employees as well as for the independent directors: Nine-Month Period Ended September 30, 2016 Number of shares Weighted-Average of restricted Grant Date stock Fair Value Non-vested shares at beginning of year 2,968,461 $ 3.34 Granted 1,925,575 1.87 Forfeited (1,000) 6.03 Vested (683,713) 3.80 Non-vested shares at September 30, 2016 4,209,323 $ 2.59 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investment Securities Available for Sale | September 30, 2016 Amortized cost Noncredit Loss Component of OTTI Recorded in OCI Fair value Weighted average yield% Gross Unrealized gains losses (Dollars in thousands) U.S. Treasury securities: Due within one year $ 7,513 $ - $ 1 $ - $ 7,514 0.57 Obligations of U.S. government-sponsored agencies: Due within one year 9,629 - 4 - 9,633 0.70 After 1 to 5 years 496,782 - 3,215 53 499,944 1.32 After 10 years 44,724 - 7 133 44,598 0.87 Puerto Rico government obligations: After 1 to 5 years 21,423 12,023 - - 9,400 4.38 After 5 to 10 years 845 - 6 - 851 5.20 After 10 years 21,205 3,196 116 1,556 16,569 5.39 United States and Puerto Rico government obligations 602,121 15,219 3,349 1,742 588,509 1.53 Mortgage-backed securities: FHLMC certificates: After 5 to 10 years 6,314 - 145 - 6,459 2.31 After 10 years 251,516 - 3,504 62 254,958 2.10 257,830 - 3,649 62 261,417 2.10 GNMA certificates: Due within one year 1 - - - 1 1.69 After 1 to 5 years 93 - 3 - 96 3.85 After 5 to 10 years 98,314 - 2,557 - 100,871 3.05 After 10 years 131,216 - 12,532 - 143,748 4.37 229,624 - 15,092 - 244,716 3.81 FNMA certificates: After 1 to 5 years 22,594 - 452 - 23,046 1.99 After 5 to 10 years 26,448 - 577 19 27,006 2.06 After 10 years 602,540 - 14,534 20 617,054 2.31 651,582 - 15,563 39 667,106 2.29 Collateralized mortgage obligations issued or guaranteed by the FHLMC and GNMA: After 5 to 10 years 19,853 - 7 33 19,827 1.18 After 10 years 39,530 - 25 7 39,548 1.21 59,383 - 32 40 59,375 1.20 Other mortgage pass-through trust certificates: After 5 to 10 years 81 - - - 81 7.20 After 10 years 30,606 8,476 - - 22,130 2.37 30,687 8,476 - - 22,211 2.37 Total mortgage-backed securities 1,229,106 8,476 34,336 141 1,254,825 2.48 Other After 1 to 5 years 100 - - - 100 1.50 Equity Securities (1) 413 - 6 - 419 2.15 Total investment securities available for sale $ 1,831,740 $ 23,695 $ 37,691 $ 1,883 $ 1,843,853 2.17 (1) Equity securities consisted of investment in a Community Reinvestment Act Qualified Investment Fund. December 31, 2015 Amortized cost Noncredit Loss Component of OTTI Recorded in OCI Fair value Weighted average yield% Gross Unrealized gains losses (Dollars in thousands) U.S. Treasury securities: After 1 to 5 years $ 7,530 $ - $ - $ 33 $ 7,497 0.57 Obligations of U.S. government-sponsored agencies: Due within one year 14,624 - 4 10 14,618 0.68 After 1 to 5 years 384,323 - 174 4,305 380,192 1.32 After 5 to 10 years 58,150 - 343 242 58,251 2.34 Puerto Rico Government obligations: After 1 to 5 years 25,663 14,662 - - 11,001 4.38 After 5 to 10 years 855 - - - 855 5.20 After 10 years 23,162 5,255 134 1,680 16,361 5.40 United States and Puerto Rico Government obligations 514,307 19,917 655 6,270 488,775 1.75 Mortgage-backed securities: FHLMC certificates: After 5 to 10 years 336 - 31 - 367 4.95 After 10 years 287,711 - 1,073 1,706 287,078 2.14 288,047 - 1,104 1,706 287,445 2.15 GNMA certificates: Due within one year 2 - - - 2 1.70 After 1 to 5 years 109 - 5 - 114 4.26 After 5 to 10 years 120,298 - 3,182 - 123,480 3.07 After 10 years 165,175 - 12,822 20 177,977 4.38 285,584 - 16,009 20 301,573 3.83 FNMA certificates: After 1 to 5 years 2,552 - 74 - 2,626 3.32 After 5 to 10 years 21,557 - 433 233 21,757 2.73 After 10 years 759,247 - 5,628 6,063 758,812 2.34 783,356 - 6,135 6,296 783,195 2.35 Other mortgage pass-through trust certificates: After 5 to 10 years 92 - 1 - 93 7.26 After 10 years 34,905 9,691 - - 25,214 2.26 34,997 9,691 1 - 25,307 2.26 Total mortgage-backed securities 1,391,984 9,691 23,249 8,022 1,397,520 2.61 Other After 1 to 5 years 100 - - - 100 1.50 Total investment securities available for sale $ 1,906,391 $ 29,608 $ 23,904 $ 14,292 $ 1,886,395 2.38 |
OTTI Losses on Available-for-Sale Debt Securities | Quarter Ended Nine-Month Period Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Total other-than-temporary impairment losses $ - $ - $ (1,845) $ (29,521) Portion of other-than-temporary impairment recognized in OCI - (231) (4,842) 16,037 Net impairment losses recognized in earnings (1) $ - $ (231) $ (6,687) $ (13,484) (1) For the nine-month periods ended September 30, 2016 and 2015, approximately $6.3 million and $12.9 million, respectively, of the credit impairment recognized in earnings consisted of credit losses on Puerto Rico Government debt securities and $0.4 million and $0.6 million, respectively, was associated with credit losses on private label MBS. |
Roll-Forward of Credit Losses on Debt Securities Held by Corporation | The following tables summarize the roll-forward of credit losses on debt securities held by the Corporation for which a portion of an OTTI is recognized in OCI: Cumulative OTTI credit losses recognized in earnings on securities still held Credit impairments Credit impairments June 30, recognized in earnings recognized in earnings on September 30, 2016 on securities not securities that have been 2016 Balance previously impaired previously impaired Balance (In thousands) Available-for-sale securities Puerto Rico Government obligations $ 22,189 $ - $ - $ 22,189 Private label MBS 6,792 - - 6,792 Total OTTI credit losses for available-for-sale debt securities $ 28,981 $ - $ - $ 28,981 Cumulative OTTI credit losses recognized in earnings on securities still held Credit impairments Credit impairments December 31, recognized in earnings recognized in earnings on September 30, 2015 on securities not securities that have been 2016 Balance previously impaired previously impaired Balance (In thousands) Available-for-sale securities Puerto Rico Government obligations $ 15,889 $ - $ 6,300 $ 22,189 Private label MBS 6,405 - 387 6,792 Total OTTI credit losses for available-for-sale debt securities $ 22,294 $ - $ 6,687 $ 28,981 Cumulative OTTI credit losses recognized in earnings on securities still held Credit impairments Credit impairments June 30, recognized in earnings recognized in earnings on September 30, 2015 on securities not securities that have been 2015 Balance previously impaired previously impaired Balance (In thousands) Available-for-sale securities Puerto Rico Government obligations $ 12,856 $ - $ - $ 12,856 Private label MBS 6,174 - 231 6,405 Total OTTI credit losses for available-for-sale debt securities $ 19,030 $ - $ 231 $ 19,261 Cumulative OTTI credit losses recognized in earnings on securities still held Credit impairments Credit impairments December 31, recognized in earnings recognized in earnings on September 30, 2014 on securities not securities that have been 2015 Balance previously impaired previously impaired Balance (In thousands) Available-for-sale securities Puerto Rico Government obligations $ - $ 12,856 $ - $ 12,856 Private label MBS 5,777 - 628 6,405 Total OTTI credit losses for available-for-sale debt securities $ 5,777 $ 12,856 $ 628 $ 19,261 |
Significant Assumptions in Valuation of Private Label MBS | September 30, 2016 December 31, 2015 Weighted Weighted Average Range Average Range Discount rate 13.3% 12.03% - 13.58% 14.5% 14.5% Prepayment rate 13.7% 6.5% - 22.5% 25% 15.92% - 31.25% Projected Cumulative Loss Rate 4% 0.2% - 9.1% 4% 0.18% - 6.66% |
Held To Maturity Securities [Text Block] | September 30, 2016 Amortized cost Fair value Weighted average yield% Gross Unrealized gains losses Puerto Rico Municipal Bonds: After 1 to 5 years $ 1,136 $ - $ 27 $ 1,109 5.38 After 5 to 10 years 10,741 - 782 9,959 4.41 After 10 years 144,313 - 23,140 121,173 4.66 Total investment securities held to maturity $ 156,190 $ - $ 23,949 $ 132,241 4.65 December 31, 2015 Amortized cost Fair value Weighted average yield% Gross Unrealized gains losses Puerto Rico Municipal Bonds: After 1 to 5 years $ 1,371 $ - $ 37 $ 1,334 5.38 After 5 to 10 years 11,523 - 1,041 10,482 4.25 After 10 years 148,589 - 28,861 119,728 4.64 Total investment securities held to maturity $ 161,483 $ - $ 29,939 $ 131,544 4.62 |
Held to maturity Securities [Member] | |
Available-for-Sale Investments' Fair Value and Gross Unrealized Losses | As of September 30, 2016 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 Municipal Bonds $ - $ - $ 132,241 $ 23,949 $ 132,241 $ 23,949 As of December 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 Municipal Bonds $ 4,163 $ 140 $ 127,381 $ 29,799 $ 131,544 $ 29,939 |
Available for sale Securities [Member] | |
Available-for-Sale Investments' Fair Value and Gross Unrealized Losses | As of September 30, 2016 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 $ - $ - $ 21,688 $ 16,775 $ 21,688 $ 16,775 U.S. Treasury and U.S. government agencies obligations 60,970 186 - - 60,970 186 Mortgage-backed securities: FNMA 18,245 39 - - 18,245 39 FHLMC 54,269 62 - - 54,269 62 Collateralized mortgage obligations issued or guaranteed by FHLMC and GNMA 31,896 40 - - 31,896 40 Other mortgage pass-through trust certificates - - 22,130 8,476 22,130 8,476 Equity securities 2 - - - 2 - $ 165,382 $ 327 $ 43,818 $ 25,251 $ 209,200 $ 25,578 As of December 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 $ - $ - $ 23,008 $ 21,597 $ 23,008 $ 21,597 U.S. Treasury and U.S. government agencies obligations 198,243 929 210,504 3,661 408,747 4,590 Mortgage-backed securities: FNMA 437,305 4,516 88,013 1,780 525,318 6,296 FHLMC 141,890 1,338 19,306 368 161,196 1,706 GNMA 1,047 20 - - 1,047 20 Other mortgage pass-through trust certificates - - 25,214 9,691 25,214 9,691 $ 778,485 $ 6,803 $ 366,045 $ 37,097 $ 1,144,530 $ 43,900 |
LOAN PORTFOLIO (Tables)
LOAN PORTFOLIO (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Loan Portfolio Held for Investment | As of September 30, As of December 31, 2016 2015 (In thousands) Residential mortgage loans, mainly secured by first mortgages $ 3,299,942 $ 3,344,719 Commercial loans: Construction loans 124,298 156,195 Commercial mortgage loans 1,545,014 1,537,806 Commercial and Industrial loans (1) 2,167,011 2,246,513 Total commercial loans 3,836,323 3,940,514 Finance leases 229,577 229,165 Consumer loans 1,497,812 1,597,984 Loans held for investment 8,863,654 9,112,382 Allowance for loan and lease losses (214,070) (240,710) Loans held for investment, net $ 8,649,584 $ 8,871,672 (1) As of September 30, 2016 and December 31, 2015, includes $949.9 million and $1.0 billion, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. |
Loans Held for Investment on Which Accrual of Interest Income had been Discontinued | Loans held for investment on which accrual of interest income had been discontinued as of the indicated dates were as follows: (In thousands) September 30, December 31, 2016 2015 Non-performing loans: Residential mortgage $ 162,201 $ 169,001 Commercial mortgage 191,449 51,333 Commercial and Industrial 137,016 137,051 Construction : Land 11,761 12,174 Construction-commercial 36,953 39,466 Construction-residential 2,053 2,996 Consumer: Auto loans 14,615 17,435 Finance leases 1,969 2,459 Other consumer loans 8,695 10,858 Total non-performing loans held for investment (1) (2)(3) $ 566,712 $ 442,773 (1) As of September 30, 2016 and December 31, 2015, excludes $8.1 million of non-performing loans held for sale. (2) Amount excludes purchased-credit impaired ("PCI") loans with a carrying value of approximately $168.1 million and $173.9 million as of September 30, 2016 and December 31, 2015, respectively, primarily mortgage loans acquired from Doral Bank in the first quarter of 2015 and from Doral Financial in the second quarter of 2014, as further discussed below. These loans are not considered non-performing due to the application of the accretion method, under which these loans will accrete interest income over the remaining life of the loans using an estimated cash flow analysis. (3) Non-performing loans exclude $415.9 million and $414.9 million of Troubled Debt Restructuring ("TDR") loans that are in compliance with modified terms and in accrual status as of September 30, 2016 and December 31, 2015, respectively. |
Corporation's Aging of Loans Held for Investment Portfolio | The Corporation’s aging of the loans held for investment portfolio is as follows: Purchased Credit-Impaired Loans Total loans held for investment 90 days past due and still accruing (2) 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due (1) Total Past Due As of September 30, 2016 (In thousands) Current Residential mortgage: FHA/VA and other government-guaranteed loans (2) (3) (4) $ - $ 5,310 $ 81,677 $ 86,987 $ - $ 44,949 $ 131,936 $ 81,677 Other residential mortgage loans (4) - 87,425 179,648 267,073 165,014 2,735,919 3,168,006 17,447 Commercial: Commercial and Industrial loans 44,967 500 138,484 183,951 - 1,983,060 2,167,011 1,468 Commercial mortgage loans (4) - 3,436 196,240 199,676 3,127 1,342,211 1,545,014 4,791 Construction: Land (4) - 765 12,137 12,902 - 20,495 33,397 376 Construction-commercial (4) - - 36,953 36,953 - 38,460 75,413 - Construction-residential (4) - - 2,721 2,721 - 12,767 15,488 668 Consumer: Auto loans 63,470 13,743 14,615 91,828 - 766,969 858,797 - Finance leases 8,199 2,312 1,969 12,480 - 217,097 229,577 - Other consumer loans 8,192 4,824 12,806 25,822 - 613,193 639,015 4,111 Total loans held for investment $ 124,828 $ 118,315 $ 677,250 $ 920,393 $ 168,141 $ 7,775,120 $ 8,863,654 $ 110,538 _____________ (1) Includes non-performing loans and accruing loans that are contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days. (2) It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as past-due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. These balances include $29.6 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent and are no longer accruing interest as of September 30, 2016. (3) As of September 30, 2016, includes $45.6 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 September 30, 2016 amounted to $8.7 million, $144.3 million, $7.6 million, $0.7 million and $0.3 million, respectively. As of December 31, 2015 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due (1) Total loans held for investment 90 days past due and still accruing (2) (In thousands) Total Past Due Purchased Credit- Impaired Loans Current Residential mortgage: FHA/VA and other government-guaranteed loans (2) (3) (4) $ - $ 6,048 $ 90,168 $ 96,216 $ - $ 46,925 $ 143,141 $ 90,168 Other residential mortgage loans (4) - 90,406 185,018 275,424 170,766 2,755,388 3,201,578 16,017 Commercial: Commercial and Industrial loans 5,577 6,412 150,893 162,882 - 2,083,631 2,246,513 13,842 Commercial mortgage loans (4) - 24,729 63,805 88,534 3,147 1,446,125 1,537,806 12,472 Construction: Land (4) - 161 12,350 12,511 - 39,363 51,874 176 Construction-commercial - 11,722 39,466 51,188 - 32,142 83,330 - Construction-residential (4) - - 6,042 6,042 - 14,949 20,991 3,046 Consumer: Auto loans 70,836 16,787 17,435 105,058 - 829,922 934,980 - Finance leases 7,664 3,100 2,459 13,223 - 215,942 229,165 - Other consumer loans 9,462 5,524 15,124 30,110 - 632,894 663,004 4,266 Total loans held for investment $ 93,539 $ 164,889 $ 582,760 $ 841,188 $ 173,913 $ 8,097,281 $ 9,112,382 $ 139,987 ____________ (1) Includes non-performing loans and accruing loans that are contractually delinquent 90 days or more (i.e. FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days. (2) It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as past-due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. These balances include $37.3 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent and are no longer accruing interest as of December 31, 2015. (3) As of December 31, 2015, includes $38.5 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans. (4) According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two or more monthly payments. FHA/VA government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, land loans and construction-residential loans past due 30-59 days as of December 31, 2015 amounted to $11.0 million, $162.9 million, $38.6 million, $5.7 million and $0.8 million, respectively. |
Corporation's Credit Quality Indicators by Loan | The Corporation’s credit quality indicators by loan type as of September 30, 2016 and December 31, 2015 are summarized below: Commercial Credit Exposure-Credit Risk Profile Based on Creditworthiness Category: Substandard Doubtful Loss Total Adversely Classified (1) Total Portfolio September 30, 2016 (In thousands) Commercial mortgage $ 218,523 $ 36,211 $ - $ 254,734 $ 1,545,014 Construction: Land 20,175 - - 20,175 33,397 Construction-commercial 36,953 - - 36,953 75,413 Construction-residential 2,053 - - 2,053 15,488 Commercial and Industrial 159,498 72,806 445 232,749 2,167,011 Commercial Credit Exposure-Credit Risk Profile Based on Creditworthiness Category: Substandard Doubtful Loss Total Adversely Classified (1) Total Portfolio December 31, 2015 (In thousands) Commercial mortgage $ 252,941 $ 140 $ - $ 253,081 $ 1,537,806 Construction: Land 14,035 1 - 14,036 51,874 Construction-commercial 39,466 - - 39,466 83,330 Construction-residential 2,996 - - 2,996 20,991 Commercial and Industrial 140,827 71,341 354 212,522 2,246,513 _________ (1) Excludes $8.1 million as of September 30, 2016 and December 31, 2015, of construction-land non-performing loans held for sale. Consumer Credit Exposure-Credit Risk Profile based on Payment activity Residential Real Estate Consumer September 30, 2016 FHA/VA/ Guaranteed (1) Other residential loans Auto Finance Leases Other Consumer (In thousands) Performing $ 131,936 $ 2,840,791 $ 844,182 $ 227,608 $ 630,320 Purchased Credit-Impaired (2) - 165,014 - - - Non-performing - 162,201 14,615 1,969 8,695 Total $ 131,936 $ 3,168,006 $ 858,797 $ 229,577 $ 639,015 (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 $29.6 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent and are no longer accruing interest as of September 30, 2016. (2) PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis. Consumer Credit Exposure-Credit Risk Profile based on Payment activity Residential Real Estate Consumer December 31, 2015 FHA/VA/ Guaranteed (1) Other residential loans Auto Finance Leases Other Consumer (In thousands) Performing $ 143,141 $ 2,861,811 $ 917,545 $ 226,706 $ 652,146 Purchased Credit-Impaired (2) - 170,766 - - - Non-performing - 169,001 17,435 2,459 10,858 Total $ 143,141 $ 3,201,578 $ 934,980 $ 229,165 $ 663,004 (1) It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as past due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. These balances include $37.3 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent and are no longer accruing interest as of December 31, 2015. (2) PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis. |
Impaired Loans | Impaired Loans (In thousands) Quarter Ended Nine-Month Period Ended September 30, 2016 Recorded Investment Unpaid Principal Balance Related Specific Allowance Year-To-Date Average Recorded Investment Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis As of September 30, 2016 With no related allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - $ - $ - Other residential mortgage loans 64,198 78,361 - 67,024 139 103 376 496 Commercial: Commercial mortgage loans 51,974 63,759 - 56,826 206 119 599 609 Commercial and Industrial Loans 17,069 26,672 - 20,407 13 - 13 - Construction: Land 60 89 - 60 - - - - Construction-commercial - - - - - - - - Construction-residential 956 1,531 - 956 - - - - Consumer: Auto loans 888 888 - 901 6 - 10 - Finance leases 168 168 - 168 1 - 1 - Other consumer loans 3,770 5,045 - 3,892 11 25 59 80 $ 139,083 $ 176,513 $ - $ 150,234 $ 376 $ 247 $ 1,058 $ 1,185 With an allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - $ - $ - Other residential mortgage loans 379,841 428,395 9,667 385,052 4,396 375 13,160 1,192 Commercial: Commercial mortgage loans 146,526 166,066 25,907 152,753 136 57 339 179 Commercial and Industrial Loans 161,105 189,683 28,668 171,575 618 49 1,708 203 Construction: Land 9,346 13,534 903 9,395 21 18 52 35 Construction-commercial 36,953 38,781 1,977 38,516 - - - - Construction-residential 392 551 124 392 - - - - Consumer: Auto loans 24,135 24,135 3,674 25,913 476 - 1,379 - Finance leases 2,408 2,408 62 2,493 48 - 150 - Other consumer loans 13,065 13,448 1,700 13,868 356 15 1,005 32 $ 773,771 $ 877,001 $ 72,682 $ 799,957 $ 6,051 $ 514 $ 17,793 $ 1,641 Total: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - $ - $ - Other residential mortgage loans 444,039 506,756 9,667 452,076 4,535 478 13,536 1,688 Commercial: Commercial mortgage loans 198,500 229,825 25,907 209,579 342 176 938 788 Commercial and Industrial Loans 178,174 216,355 28,668 191,982 631 49 1,721 203 Construction: Land 9,406 13,623 903 9,455 21 18 52 35 Construction-commercial 36,953 38,781 1,977 38,516 - - - - Construction-residential 1,348 2,082 124 1,348 - - - - Consumer: Auto loans 25,023 25,023 3,674 26,814 482 - 1,389 - Finance leases 2,576 2,576 62 2,661 49 - 151 - Other consumer loans 16,835 18,493 1,700 17,760 367 40 1,064 112 $ 912,854 $ 1,053,514 $ 72,682 $ 950,191 $ 6,427 $ 761 $ 18,851 $ 2,826 (In thousands) Recorded Investment Unpaid Principal Balance Related Specific Allowance Average Recorded Investment As of December 31, 2015 With no related allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - Other residential mortgage loans 65,495 74,146 - 67,282 Commercial: Commercial mortgage loans 54,048 66,448 - 54,967 Commercial and Industrial Loans 27,492 29,957 - 28,326 Construction: Land - - - - Construction-commercial 39,466 40,000 - 39,736 Construction-residential 3,046 3,046 - 3,098 Consumer: Auto loans - - - - Finance leases - - - - Other consumer loans 2,618 4,300 - 2,766 $ 192,165 $ 217,897 $ - $ 196,175 With an allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - Other residential mortgage loans 395,173 440,947 21,787 398,790 Commercial: Commercial mortgage loans 27,479 40,634 3,073 30,518 Commercial and Industrial Loans 143,214 164,050 18,096 148,547 Construction: Land 9,578 13,758 1,060 9,727 Construction-commercial - - - - Construction-residential 1,426 2,180 142 1,476 Consumer: Auto loans 21,581 21,581 6,653 23,531 Finance leases 2,077 2,077 86 2,484 Other consumer loans 13,816 14,043 1,684 14,782 $ 614,344 $ 699,270 $ 52,581 $ 629,855 Total: FHA/VA-Guaranteed loans $ - $ - $ - $ - Other residential mortgage loans 460,668 515,093 21,787 466,072 Commercial: Commercial mortgage loans 81,527 107,082 3,073 85,485 Commercial and Industrial Loans 170,706 194,007 18,096 176,873 Construction: Land 9,578 13,758 1,060 9,727 Construction-commercial 39,466 40,000 - 39,736 Construction-residential 4,472 5,226 142 4,574 Consumer: Auto loans 21,581 21,581 6,653 23,531 Finance leases 2,077 2,077 86 2,484 Other consumer loans 16,434 18,343 1,684 17,548 $ 806,509 $ 917,167 $ 52,581 $ 826,030 Interest income of approximately $7.8 million ($6.9 million accrual basis and $0.9 million cash basis) and $24.8 million ($19.8 million accrual basis and $5.0 million cash basis) was recognized on impaired loans for the third quarter and nine-month period ended September 30, 2015, respectively. |
Activity for Impaired loans | The following tables show the activity for impaired loans and the related specific reserve for the quarters and nine-month periods ended September 30, 2016 and 2015: Quarter Ended Nine-Month Period Ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Impaired Loans: Balance at beginning of period $ 953,774 $ 824,816 $ 806,509 $ 945,407 Loans determined impaired during the period 26,613 37,528 261,544 135,350 Charge-offs (1) (30,426) (7,498) (50,027) (90,026) Loans sold, net of charge-offs - - - (67,836) Increases to impaired loans-additional disbursements 1,091 408 2,852 2,524 Reclassification from loans held for sale (2) - 40,005 - 40,005 Foreclosures (11,856) (12,858) (28,466) (33,044) Loans no longer considered impaired (2,674) (25,877) (27,560) (39,062) Paid in full or partial payments (23,668) (13,811) (51,998) (50,605) Balance at end of period $ 912,854 $ 842,713 $ 912,854 $ 842,713 (1) For the nine-month period ended September 30, 2015, includes $63.9 million of charge-offs related to a bulk sale of assets completed in the second quarter of 2015, mostly comprised of non-performing and adversely classified commercial loans, as further discussed below. (2) During the third quarter of 2015, upon the signing of a new agreement with the borrower, the Corporation changed its intent to sell a $40.0 million construction loan in the Virgin Islands. Accordingly, the loan was transferred back from held for sale to held for investment. |
Activity for Specific Reserve | Quarter Ended Nine-Month Period Ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Specific Reserve: Balance at beginning of period $ 86,372 $ 49,918 $ 52,581 55,205 Provision for loan losses 16,619 9,439 70,011 81,796 Net charge-offs (30,309) (7,498) (49,910) (85,142) Balance at end of period $ 72,682 $ 51,859 $ 72,682 $ 51,859 |
Carrying Value of Acquired Loans | The carrying amount of PCI loans follows: September 30, December 31, 2016 2015 (In thousands) Residential mortgage loans $ 165,014 $ 170,766 Commercial mortgage loans 3,127 3,147 Total PCI loans $ 168,141 $ 173,913 Allowance for loan losses (6,857) (3,962) Total PCI loans, net of allowance for loan losses $ 161,284 $ 169,951 |
Accretable Yield | Changes in the accretable yield of PCI loans for the quarters and nine-month periods ended September 30, 2016 and 2015 were as follows: Quarter Ended Nine-Month Period Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 (In thousands) Balance at beginning of period $ 122,179 $ 124,288 $ 118,385 $ 82,460 Additions (accretable yield at acquisition of loans from Doral) - - - 38,319 Accretion recognized in earnings (2,875) (3,411) (8,691) (8,695) Reclassification from non-accretable - 1,348 9,610 10,141 Balance at end of period $ 119,304 $ 122,225 $ 119,304 $ 122,225 |
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: September 30, 2016 (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 $ 29,934 $ 8,172 $ 283,550 $ - $ 57,065 $ 378,721 Commercial Mortgage Loans 6,092 1,219 26,053 - 10,608 43,972 Commercial and Industrial Loans 2,153 69,244 25,263 2,637 51,593 150,890 Construction Loans: Land - 285 2,193 - 402 2,880 Construction-commercial - - - 36,953 - 36,953 Construction-residential - - - - 357 357 Consumer Loans - Auto - 1,921 14,680 - 8,422 25,023 Finance Leases - 424 2,152 - - 2,576 Consumer Loans - Other 229 2,185 10,120 300 2,112 14,946 Total Troubled Debt Restructurings $ 38,408 $ 83,450 $ 364,011 $ 39,890 $ 130,559 $ 656,318 (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. December 31, 2015 (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 $ 29,066 $ 6,027 $ 297,310 $ - $ 50,269 $ 382,672 Commercial Mortgage Loans 4,379 1,244 26,109 - 12,766 44,498 Commercial and Industrial Loans 2,163 75,104 27,214 3,027 42,746 150,254 Construction Loans: Land - 229 2,165 - 372 2,766 Construction-commercial - - - 39,466 - 39,466 Construction-residential - - 3,046 - 436 3,482 Consumer Loans - Auto - 2,330 12,388 - 6,864 21,582 Finance Leases - 621 1,456 - - 2,077 Consumer Loans - Other 89 1,604 11,026 327 1,748 14,794 Total Troubled Debt Restructurings $ 35,697 $ 87,159 $ 380,714 $ 42,820 $ 115,201 $ 661,591 (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. |
Corporation's TDR Activity | The following table presents the Corporation's TDR loans activity: Quarter Ended Nine-Month Period Ended (In thousands) September 30, September 30, 2016 2015 2016 2015 Beginning balance of TDRs $ 670,991 $ 634,761 $ 661,591 $ 694,453 New TDRs 15,596 30,044 66,075 95,840 Increases to existing TDRs - additional disbursements 517 309 1,573 644 Charge-offs post modification (1) (5,445) (5,327) (15,899) (58,707) Sales, net of charge-offs - - - (44,048) Foreclosures (5,567) (6,139) (12,967) (16,391) Removed from the TDR classification - - (3,031) - Reclassification from loans held for sale (2) - 40,005 - 40,005 Paid-off and partial payments (19,774) (11,690) (41,024) (29,833) Ending balance of TDRs $ 656,318 $ 681,963 $ 656,318 $ 681,963 (1) For the nine-month period ended September 30, 2015, includes $45.3 million of charge offs related to TDRs included in the bulk sale of assets completed in the second quarter of 2015. (2) During the third quarter of 2015, upon the signing of a new agreement with the borrower, the Corporation changed its intent to sell a $40.0 million construction loan in the Virgin Islands. Accordingly, the loan was transferred back from held for sale to held for investment and continues to be classified as a TDR and a nonperforming loan. |
Breakdown Between Accrual and Nonaccrual Status of TDRs | The following table provides a breakdown between accrual and nonaccrual status of TDR loans: (In thousands) As of September 30, 2016 Accrual Nonaccrual (1) Total TDRs Non-FHA/VA Residential Mortgage loans $ 296,840 $ 81,881 $ 378,721 Commercial Mortgage Loans 28,699 15,273 43,972 Commercial and Industrial Loans 58,004 92,886 150,890 Construction Loans: Land 1,205 1,675 2,880 Construction-commercial - 36,953 36,953 Construction-residential - 357 357 Consumer Loans - Auto 16,561 8,462 25,023 Finance Leases 2,437 139 2,576 Consumer Loans - Other 12,173 2,773 14,946 Total Troubled Debt Restructurings $ 415,919 $ 240,399 $ 656,318 (1) Included in non-accrual loans are $121.3 million in loans that are performing under the terms of the 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 are deemed fully collectible. (In thousands) As of December 31, 2015 Accrual Nonaccrual (1) Total TDRs Non- FHA/VA Residential Mortgage loans $ 303,885 $ 78,787 $ 382,672 Commercial Mortgage Loans 29,121 15,377 44,498 Commercial and Industrial Loans 48,392 101,862 150,254 Construction Loans: Land 924 1,842 2,766 Construction-commercial - 39,466 39,466 Construction-residential 3,046 436 3,482 Consumer Loans - Auto 14,823 6,759 21,582 Finance Leases 1,980 97 2,077 Consumer Loans - Other 12,737 2,057 14,794 Total Troubled Debt Restructurings $ 414,908 $ 246,683 $ 661,591 (1) Included in non-accrual loans are $118.2 million in loans that are performing under the terms of the 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. |
Schedule Of Troubled Debt Restructurings Table [Text Block] | (Dollars in thousands) Quarter Ended September 30, 2016 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Non-FHA/VA Residential Mortgage loans 55 $ 8,631 $ 8,449 Commercial Mortgage Loans 5 679 712 Commercial and Industrial Loans 2 1,432 1,432 Construction Loans: Land 4 158 155 Consumer Loans - Auto 189 3,262 3,262 Finance Leases 11 295 295 Consumer Loans - Other 257 1,269 1,291 Total Troubled Debt Restructurings 523 $ 15,726 $ 15,596 (Dollars in thousands) Nine-Month Period Ended September 30, 2016 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Non-FHA/VA Residential Mortgage loans 167 $ 25,040 $ 24,040 Commercial Mortgage Loans 8 3,351 3,380 Commercial and Industrial Loans 21 21,693 21,693 Construction Loans: Land 4 158 155 Consumer Loans - Auto 612 10,961 10,961 Finance Leases 59 1,477 1,477 Consumer Loans - Other 862 4,312 4,369 Total Troubled Debt Restructurings 1,733 $ 66,992 $ 66,075 (Dollars in thousands) Quarter Ended September 30, 2015 Number of contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Non-FHA/VA Residential Mortgage loans 98 $ 19,901 $ 19,481 Commercial Mortgage Loans 4 7,380 5,719 Construction Loans: Land 1 109 109 Consumer Loans - Auto 203 3,352 3,297 Finance Leases 19 521 418 Consumer Loans - Other 197 1,026 1,020 Total Troubled Debt Restructurings 522 $ 32,289 $ 30,044 (Dollars in thousands) Nine-Month Period Ended September 30, 2015 Number of contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Non-FHA/VA Residential Mortgage loans 350 $ 60,043 $ 57,882 Commercial Mortgage Loans 13 20,332 18,781 Commercial and Industrial Loans 3 2,997 2,579 Construction Loans: Land 7 603 600 Consumer Loans - Auto 547 8,739 8,564 Finance Leases 43 1,215 1,056 Consumer Loans - Other 929 6,432 6,378 Total Troubled Debt Restructurings 1,892 $ 100,361 $ 95,840 |
Loan Modifications Considered Troubled Debt Restructurings Defaulted | Quarter Ended September 30, (Dollars in thousands) 2016 2015 Number of contracts Recorded Investment Number of contracts Recorded Investment Non-FHA/VA Residential Mortgage loans 14 $ 1,707 23 $ 3,744 Consumer Loans - Auto 5 68 1 10 Consumer Loans - Other 22 93 51 219 Finance Leases 1 30 3 145 Total 42 $ 1,898 78 $ 4,118 Nine-Month Period Ended September 30, (Dollars in thousands) 2016 2015 Number of contracts Recorded Investment Number of contracts Recorded Investment Non-FHA/VA Residential Mortgage loans 35 $ 4,863 50 $ 7,646 Commercial and Industrial Loans - - 4 5,745 Consumer Loans - Auto 45 702 8 50 Consumer Loans - Other 89 339 141 589 Finance Leases 2 43 6 185 Total 171 $ 5,947 209 $ 14,215 |
Loan Restructuring and Effect on Allowance for Loan and Lease Losses | (In thousands) September 30, 2016 September 30, 2015 Principal balance deemed collectible at end of period $ 38,004 $ 40,632 Amount charged off $ - $ - Charges to the provision for loan losses $ 2,660 $ 185 Allowance for loan losses at end of period $ 3,521 $ 916 |
Past Due Purchased Credit Impaired Table [Text Block] | The following tables present PCI loans by past due status as of September 30, 2016 and December 31, 2015: As of September 30, 2016 30-59 Days 60-89 Days 90 days or more Total Past Due Total PCI loans (In thousands) Current Residential mortgage loans (1) $ - $ 12,048 $ 26,621 $ 38,669 $ 126,345 $ 165,014 Commercial mortgage loans (1) - - 1,283 1,283 1,844 3,127 $ - $ 12,048 $ 27,904 $ 39,952 $ 128,189 $ 168,141 _____________ (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 September 30, 2016 amounted to $22.3 million and $0.4 million, respectively. As of December 31, 2015 30-59 Days 60-89 Days 90 days or more Total Past Due Total PCI loans (In thousands) Current Residential mortgage loans (1) $ - $ 16,094 $ 22,218 $ 38,312 $ 132,454 $ 170,766 Commercial mortgage loans (1) - - 992 992 2,155 3,147 $ - $ 16,094 $ 23,210 $ 39,304 $ 134,609 $ 173,913 (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 past due 30-59 days as of December 31, 2015 amounted to $23.6 million. |
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 are as follows: Quarter Ended Nine-Month Period Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 (In thousands) Balance at beginning of period $ 169,690 $ 178,494 $ 173,913 $ 102,604 Additions (1) - - - 79,889 Accretion 2,875 3,411 8,691 8,695 Collections (4,184) (5,663) (13,136) (14,946) Foreclosures (240) (157) (1,327) (157) Ending balance $ 168,141 $ 176,085 $ 168,141 $ 176,085 Allowance for loan losses (6,857) (3,163) (6,857) (3,163) Ending balance, net of allowance for loan losses $ 161,284 $ 172,922 $ 161,284 $ 172,922 (1) For the nine-month period ended September 30, 2015, additions represents the estimated fair value of PCI loans acquired from Doral Bank at the date of acquisition. |
Allowance For Credit Losses On Purchased Credit Impaired Loans Table [Text Block] | Changes in the allowance for loan losses related to PCI loans follows: Quarter Ended Nine-Month Period Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 (In thousands) Balance at beginning of period $ 6,857 $ 3,163 $ 3,962 $ - Provision for loan losses - - 2,895 3,163 Balance at end of period $ 6,857 $ 3,163 $ 6,857 $ 3,163 |
ALLOWANCE FOR LOAN AND LEASE 38
ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 Allowance for loan and lease losses: Beginning balance $ 38,955 $ 69,799 $ 69,789 $ 2,747 $ 53,164 $ 234,454 Charge-offs (8,514) (13,730) (10,587) (19) (13,716) (46,566) Recoveries 972 335 929 140 2,303 4,679 Provision (release) 4,553 (152) 5,597 2,480 9,025 21,503 Ending balance $ 35,966 $ 56,252 $ 65,728 $ 5,348 $ 50,776 $ 214,070 Ending balance: specific reserve for impaired loans $ 9,667 $ 25,907 $ 28,668 $ 3,004 $ 5,436 $ 72,682 Ending balance: purchased credit-impaired loans (1) $ 6,638 $ 219 $ - $ - $ - $ 6,857 Ending balance: general allowance $ 19,661 $ 30,126 $ 37,060 $ 2,344 $ 45,340 $ 134,531 Loans held for investment: Ending balance $ 3,299,942 $ 1,545,014 $ 2,167,011 $ 124,298 $ 1,727,389 $ 8,863,654 Ending balance: impaired loans $ 444,039 $ 198,500 $ 178,174 $ 47,707 $ 44,434 $ 912,854 Ending balance: purchased credit-impaired loans $ 165,014 $ 3,127 $ - $ - $ - $ 168,141 Ending balance: loans with general allowance $ 2,690,889 $ 1,343,387 $ 1,988,837 $ 76,591 $ 1,682,955 $ 7,782,659 (In thousands) Residential Mortgage Loans Commercial Mortgage Loans Commercial & Industrial Loans Construction Loans Consumer Loans Total Nine-Month Period Ended September 30, 2016 Allowance for loan and lease losses: Beginning balance $ 39,570 $ 68,211 $ 68,768 $ 3,519 $ 60,642 $ 240,710 Charge-offs (27,352) (15,742) (16,260) (623) (41,490) (101,467) Recoveries 2,159 414 1,885 301 6,526 11,285 Provision 21,589 3,369 11,335 2,151 25,098 63,542 Ending balance $ 35,966 $ 56,252 $ 65,728 $ 5,348 $ 50,776 $ 214,070 Ending balance: specific reserve for impaired loans $ 9,667 $ 25,907 $ 28,668 $ 3,004 $ 5,436 $ 72,682 Ending balance: purchased credit-impaired loans (1) $ 6,638 $ 219 $ - $ - $ - $ 6,857 Ending balance: general allowance $ 19,661 $ 30,126 $ 37,060 $ 2,344 $ 45,340 $ 134,531 Loans held for investment: Ending balance $ 3,299,942 $ 1,545,014 $ 2,167,011 $ 124,298 $ 1,727,389 $ 8,863,654 Ending balance: impaired loans $ 444,039 $ 198,500 $ 178,174 $ 47,707 $ 44,434 $ 912,854 Ending balance: purchased credit-impaired loans $ 165,014 $ 3,127 $ - $ - $ - $ 168,141 Ending balance: loans with general allowance $ 2,690,889 $ 1,343,387 $ 1,988,837 $ 76,591 $ 1,682,955 $ 7,782,659 (1) Refer to Note 6 - Loans Held for Investment -PCI loans for a detail of changes in the allowance for loan losses related to PCI loans. (In thousands) Residential Mortgage Loans Commercial Mortgage Loans Commercial & Industrial Loans Construction Loans Consumer Loans Total Quarter ended September 30, 2015 Allowance for loan and lease losses: Beginning balance $ 33,783 $ 49,092 $ 63,900 $ 11,865 $ 62,878 $ 221,518 Charge-offs (5,094) (3,677) (1,267) (103) (15,926) (26,067) Recoveries 214 20 327 176 1,602 2,339 Provision (release) 6,958 6,668 3,807 (139) 13,882 31,176 Ending balance $ 35,861 $ 52,103 $ 66,767 $ 11,799 $ 62,436 $ 228,966 Ending balance: specific reserve for impaired loans $ 18,705 $ 4,886 $ 17,540 $ 2,128 $ 8,600 $ 51,859 Ending balance: purchased credit-impaired loans $ 3,061 $ 102 $ - $ - $ - $ 3,163 Ending balance: general allowance $ 14,095 $ 47,115 $ 49,227 $ 9,671 $ 53,836 $ 173,944 Loans held for investment: Ending balance $ 3,330,089 $ 1,562,538 $ 2,222,324 $ 163,956 $ 1,861,555 $ 9,140,462 Ending balance: impaired loans $ 459,311 $ 104,046 $ 174,983 $ 66,123 $ 38,250 $ 842,713 Ending balance: purchased credit-impaired loans $ 172,927 $ 3,158 $ - $ - $ - $ 176,085 Ending balance: loans with general allowance $ 2,697,851 $ 1,455,334 $ 2,047,341 $ 97,833 $ 1,823,305 $ 8,121,664 (In thousands) Residential Mortgage Loans Commercial Mortgage Loans Commercial & Industrial Loans Construction Loans Consumer Loans Total Nine-Month Period Ended September 30, 2015 Allowance for loan and lease losses: Beginning balance $ 27,301 $ 50,894 $ 63,721 $ 12,822 $ 67,657 $ 222,395 Charge-offs (13,815) (54,115) (30,090) (4,787) (48,221) (151,028) Recoveries 584 6,515 3,386 2,379 6,323 19,187 Provision 21,791 48,809 29,750 1,385 36,677 138,412 Ending balance $ 35,861 $ 52,103 $ 66,767 $ 11,799 $ 62,436 $ 228,966 Ending balance: specific reserve for impaired loans $ 18,705 $ 4,886 $ 17,540 $ 2,128 $ 8,600 $ 51,859 Ending balance: purchased credit-impaired loans $ 3,061 $ 102 $ - $ - $ - $ 3,163 Ending balance: general allowance $ 14,095 $ 47,115 $ 49,227 $ 9,671 $ 53,836 $ 173,944 Loans held for investment: Ending balance $ 3,330,089 $ 1,562,538 $ 2,222,324 $ 163,956 $ 1,861,555 $ 9,140,462 Ending balance: impaired loans $ 459,311 $ 104,046 $ 174,983 $ 66,123 $ 38,250 $ 842,713 Ending balance: purchased credit-impaired loans $ 172,927 $ 3,158 $ - $ - $ - $ 176,085 Ending balance: loans with general allowance $ 2,697,851 $ 1,455,334 $ 2,047,341 $ 97,833 $ 1,823,305 $ 8,121,664 |
LOANS HELD FOR SALE (Tables)
LOANS HELD FOR SALE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Portfolio of Loans Held for Sale | (In thousands) September 30, 2016 December 31, 2015 Residential mortgage loans $ 48,700 $ 27,734 Construction loans 8,079 8,135 Total $ 56,779 $ 35,869 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30, December 31, (In thousands) 2016 2015 OREO OREO balances, carrying value: Residential (1) $ 45,887 $ 43,563 Commercial 81,038 87,849 Construction 12,521 15,389 Total $ 139,446 $ 146,801 (1) Excludes $15.1 million and $8.9 million as of September 30, 2016 and December 31, 2015, respectively, of foreclosures 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 HE41
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notional Amounts of All Derivative Instruments | The following table summarizes the notional amounts of all derivative instruments: Notional Amounts (1) As of As of September 30, December 31, 2016 2015 (In thousands) Undesignated economic hedges: Interest rate contracts: Written interest rate cap agreements $ 91,510 $ 120,816 Purchased interest rate cap agreements 91,510 120,816 Forward Contracts: Sale of TBA GNMA MBS pools 45,000 30,000 $ 228,020 $ 271,632 (1) Notional amounts are presented on a gross basis with no netting of offsetting exposure positions. |
Summary of Fair Value of Derivative Instruments and Location in Statement of Financial Condition | The following table summarizes the fair value of derivative instruments and the location in the statement of financial condition as of the indicated dates: Asset Derivatives Liability Derivatives Statement of September 30, December 31, September 30, December 31, Financial 2016 2015 2016 2015 Condition Location Fair Value Fair Value Statement of Financial Condition Location Fair Value Fair Value (In thousands) Undesignated economic hedges: Interest rate contracts: Written interest rate cap agreements Other assets $ - $ - Accounts payable and other liabilities $ 191 $ 798 Purchased interest rate cap agreements Other assets 191 806 Accounts payable and other liabilities - - Forward Contracts: Sales of TBA GNMA MBS pools Other assets 4 - Accounts payable and other liabilities 144 123 $ 195 $ 806 $ 335 $ 921 |
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) Gain (or Loss) Location of Gain or (loss) Quarter Ended Nine-Month Period Ended Recognized in Income on September 30, September 30, (In thousands) Derivatives 2016 2015 2016 2015 Undesignated economic hedges: Interest rate contracts: Written and purchased interest rate cap agreements Interest income - Loans $ 5 $ 144 $ (2) $ 144 Forward contracts: Sales of TBA GNMA MBS pools Mortgage banking activities 219 (279) (17) (97) Total gain (loss) on derivatives $ 224 $ (135) $ (19) $ 47 |
OFFSETTING OF ASSETS AND LIAB42
OFFSETTING OF ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Offsetting of assets and liabilties | Offsetting of Financial Assets and Derivative Assets 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 As of September 30, 2016 Net Amount (In thousands) Description Derivatives $ 191 $ - $ 191 $ (191) $ - $ - Securities purchased under agreements to resell 200,000 (200,000) - - - - Total $ 200,191 $ (200,000) $ 191 $ (191) $ - $ - 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 As of December 31, 2015 Net Amount (In thousands) Description Derivatives $ 806 $ - $ 806 $ (806) $ - $ - Securities purchased under agreements to resell 200,000 (200,000) - - - - Total $ 200,806 $ (200,000) $ 806 $ (806) $ - $ - Offsetting of Financial Liabilities and Derivative Liabilities 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 As of September 30, 2016 Net Amount (In thousands) Description Securities sold under agreements to repurchase $ 500,000 $ (200,000) $ 300,000 $ (300,000) $ - $ - 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 As of December 31, 2015 Net Amount (In thousands) Description Securities sold under agreements to repurchase $ 600,000 $ (200,000) $ 400,000 $ (400,000) $ - $ - |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, December 31, 2016 2015 (Dollars in thousands) Core deposit intangible: Gross amount, beginning of period $ 51,664 $ 45,844 Addition as a result of acquisition - 5,820 Accumulated amortization (43,974) (42,498) Net carrying amount $ 7,690 $ 9,166 Remaining amortization period 8.3 9.0 years Purchased credit card relationship intangible: Gross amount $ 24,465 $ 24,465 Accumulated amortization (13,237) (11,146) Net carrying amount $ 11,228 $ 13,319 Remaining amortization period 5.2 5.8 years Insurance Customer relationship intangible: Gross amount $ 1,067 $ - Accumulated amortization (102) - Net carrying amount $ 965 $ - Remaining amortization period 6.3 - The estimated aggregate amortization expense related to these intangible assets for future periods is as follows: Amount (In thousands) 2016 $ 1,226 2017 4,495 2018 3,519 2019 3,067 2020 2,851 2021 and after 4,725 |
NON-CONSOLIDATED VARIABLE INT44
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Changes in Servicing Assets | The changes in servicing assets are shown below: Quarter Ended Nine-Month Period Ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Balance at beginning of period $ 25,044 $ 23,519 $ 24,282 $ 22,838 Capitalization of servicing assets 1,420 1,242 3,878 3,789 Amortization (817) (758) (2,424) (2,409) Adjustment to fair value (263) (23) (387) (170) Other (1) 91 (20) 126 (88) Balance at end of period $ 25,475 $ 23,960 $ 25,475 $ 23,960 (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 Nine-Month Period Ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Balance at beginning of period $ 260 $ 202 $ 136 $ 55 Temporary impairment charges 266 41 460 227 Recoveries (3) (18) (73) (57) Balance at end of period $ 523 $ 225 $ 523 $ 225 |
Components of Net Servicing Income | The components of net servicing income are shown below: Quarter Ended Nine-Month Period Ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Servicing fees $ 1,930 $ 1,796 $ 5,657 $ 5,340 Late charges and prepayment penalties 200 179 505 546 Adjustment for loans repurchased 91 (20) 126 (88) Other (1) - (22) (1) (125) Servicing income, gross 2,221 1,933 6,287 5,673 Amortization and impairment of servicing assets (1,080) (781) (2,811) (2,579) Servicing income, net $ 1,141 $ 1,152 $ 3,476 $ 3,094 (1) Mainly consisted of compensatory fees imposed by GSEs. |
Key Economic Assumptions Used in Determining Fair Value at Time of Sale of Loans | The Corporation’s servicing assets are subject to prepayment and interest rate risks. Key economic assumptions used in determining the fair value at the time of sale of the related mortgages ranged as follows: Maximum Minimum Nine-Month Period Ended September 30, 2016: Constant prepayment rate: Government-guaranteed mortgage loans 7.6 % 6.1 % Conventional conforming mortgage loans 8.0 % 6.5 % Conventional non-conforming mortgage loans 14.1 % 10.6 % Discount rate: Government-guaranteed mortgage loans 12.0 % 11.5 % Conventional conforming mortgage loans 10.0 % 9.5 % Conventional non-conforming mortgage loans 14.3 % 13.8 % Nine-Month Period Ended September 30, 2015: Constant prepayment rate: Government-guaranteed mortgage loans 9.2 % 7.9 % Conventional conforming mortgage loans 9.0 % 7.9 % Conventional non-conforming mortgage loans 14.4 % 12.9 % Discount rate: Government-guaranteed mortgage loans 11.5 % 11.5 % Conventional conforming mortgage loans 9.5 % 9.5 % Conventional non-conforming mortgage loans 13.8 % 13.8 % |
Weighted-Averages of Key Economic Assumptions in Valuation Model | (Dollars in thousands) Carrying amount of servicing assets $ 25,475 Fair value $ 27,937 Weighted-average expected life (in years) 8.42 Constant prepayment rate (weighted-average annual rate) 6.34% Decrease in fair value due to 10% adverse change $ 734 Decrease in fair value due to 20% adverse change $ 1,435 Discount rate (weighted-average annual rate) 11.18% Decrease in fair value due to 10% adverse change $ 1,311 Decrease in fair value due to 20% adverse change $ 2,515 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Deposit Balances | The following table summarizes deposit balances: September 30, December 31, 2016 2015 (In thousands) Type of account: Non-interest bearing checking accounts $ 1,473,528 $ 1,336,559 Savings accounts 2,458,634 2,459,186 Interest-bearing checking accounts 1,153,096 1,088,651 Certificates of deposit 2,337,547 2,356,245 Brokered CDs 1,558,508 2,097,483 $ 8,981,313 $ 9,338,124 |
Brokered Certificates Of Deposit Mature | Brokered CDs mature as follows: September 30, 2016 (In thousands) Three months or less $ 343,396 Over three months to six months 255,574 Over six months to one year 350,362 One to three years 524,386 Three to five years 84,605 Over five years 185 Total $ 1,558,508 |
Components of Interest Expense on Deposits | The following are the components of interest expense on deposits: Quarter Ended Nine-Month Period Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) Interest expense on deposits $ 16,130 $ 15,947 $ 49,104 $ 48,402 Accretion of premium from acquisition (43) (156) (181) (441) Amortization of broker placement fees 655 1,060 2,300 3,564 Interest expense on deposits $ 16,742 $ 16,851 $ 51,223 $ 51,525 |
SECURITIES SOLD UNDER AGREEME46
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Securities Sold Under Agreements to Repurchase | Securities sold under agreements to repurchase (repurchase agreements) consist of the following: (Dollars in thousands) September 30, 2016 December 31, 2015 Repurchase agreements, interest ranging from 1.96% to 3.84% (December 31, 2015- 1.96% to 3.41%) (1)(2) $ 600,000 $ 700,000 (1) Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. (2) As of September 30, 2016, includes $500 million with an average rate of 3.56% that lenders have the right to call before their contractual maturities at various dates beginning on October 11, 2016. In addition, $400 million is tied to variable rates. |
Schedule of Repurchase Agreement Maturity | Repurchase agreements mature as follows: September 30, 2016 (In thousands) One month to three months $ 300,000 One year to three years 100,000 Over five years 200,000 Total $ 600,000 |
Repurchase Agreements Grouped by Counterparty | Repurchase agreements as of September 30, 2016, grouped by counterparty, were as follows: (Dollars in thousands) Weighted-Average Counterparty Amount Maturity (In Months) Citigroup Global Markets $ 300,000 1 Dean Witter / Morgan Stanley 100,000 13 JP Morgan Chase 200,000 64 $ 600,000 |
ADVANCES FROM THE FEDERAL HOM47
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Advances from FHLB | The following is a summary of the advances from the FHLB: September 30, December 31, (Dollars in thousands) 2016 2015 Fixed-rate advances from FHLB, with a weighted- average interest rate of 1.40% (December 31, 2015 - 1.30%) $ 355,000 $ 455,000 |
Advances from FHLB Mature | Advances from FHLB mature as follows: (In thousands) September 30, 2016 Over six months to one year $ 200,000 Over one year to three years 25,000 Over three to four years 130,000 Total $ 355,000 |
OTHER BORROWINGS (Tables)
OTHER BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Components of Other Borrowings | September 30, December 31, (In thousands) 2016 2015 Junior subordinated debentures due in 2034, interest-bearing at a floating rate of 2.75% over 3-month LIBOR (3.61% as of September 30, 2016 and 3.28% as of December 31, 2015) $ 97,630 $ 97,626 Junior subordinated debentures due in 2034, interest-bearing at a floating rate of 2.50% over 3-month LIBOR (3.36% as of September 30, 2016 and 3.07% as of December 31, 2015) (1) 118,557 128,866 $ 216,187 $ 226,492 (1) Refer to Note 13 - Non-Consolidated Variable Interest Entities and Servicing Assets - Trust Preferred Securities for additional information about the Corporation's repurchase and cancellation of $10 million of trust preferred securities associated with these junior subordinated debentures. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 As of December 31, 2015 Fair Value Measurements Using Fair Value Measurements Using (In thousands) Level 1 Level 2 Level 3 Assets/Liabilities at Fair Value Level 1 Level 2 Level 3 Assets/Liabilities at Fair Value Assets: Securities available for sale : Equity securities $ 419 $ - $ - $ 419 $ - $ - $ - $ - U.S. Treasury Securities 7,514 - - 7,514 7,497 - - 7,497 Noncallable U.S. agency debt - 366,838 - 366,838 - 315,467 - 315,467 Callable U.S. agency debt and MBS - 1,419,951 - 1,419,951 - 1,509,807 - 1,509,807 Puerto Rico government obligations - 24,653 2,167 26,820 - 26,327 1,890 28,217 Private label MBS - - 22,211 22,211 - - 25,307 25,307 Other investments - - 100 100 - - 100 100 Derivatives, included in assets: Purchased interest rate cap agreements - 191 - 191 - 806 - 806 Forward contracts - 4 - 4 - - - - Liabilities: Derivatives, included in liabilities: Written interest rate cap agreement - 191 - 191 - 798 - 798 Forward contracts - 144 - 144 - 123 - 123 |
Schedule of Changes in Fair Value | The tables below summarize changes in unrealized gains and losses recorded in earnings for the quarters and nine-month periods ended September 30, 2016 and 2015 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 September 30, 2016) (Quarter ended September 30, 2015) 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 available-for-sale investment securities (credit component) $ - $ (231) Changes in Unrealized Losses Changes in Unrealized Losses (Nine-Month Period Ended September 30, 2016) (Nine-Month Period Ended September 30, 2015) 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 available-for-sale investment securities (credit component) $ (387) $ (628) |
Fair Value of Assets and Liabilities Measured on Recurring Basis | Quarter Ended September 30, 2016 2015 Level 3 Instruments Only Securities Securities (In thousands) Available For Sale (1) Available For Sale (1) Beginning balance $ 26,020 $ 31,640 Total gains or (losses) (realized/unrealized): Included in earnings - (231) Included in other comprehensive income (477) 345 Principal repayments and amortization (1,065) (2,046) Ending balance $ 24,478 $ 29,708 (1) Amounts mostly related to private label mortgage-backed securities. Nine-Month Period Ended September 30, 2016 2015 Level 3 Instruments Only Securities Securities (In thousands) Available For Sale (1) Available For Sale (1) Beginning balance $ 27,297 $ 36,212 Total gains or (losses) (realized/unrealized): Included in earnings (387) (628) Included in other comprehensive income 1,339 1,489 Purchases - 100 Principal repayments and amortization (3,771) (7,465) Ending balance $ 24,478 $ 29,708 (1) Amounts mostly related to private label mortgage-backed securities. |
Impairment or Valuation Adjustments were Recorded for Assets Recognized at Fair Value | As of September 30, 2016, 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 September 30, 2016 (Losses) recorded for the Quarter Ended September 30, 2016 (Losses) recorded for the Nine-Month Period Ended September 30, 2016 Level 1 Level 2 Level 3 (In thousands) Loans receivable (1) $ - $ - $ 426,444 $ (13,912) $ (41,621) OREO (2) - - 139,446 (1,702) (6,580) Mortgage servicing rights (3) - - 25,475 (263) (387) (1) Consist mainly of impaired commercial and construction loans. The impairment was generally measured based on the fair value of the collateral. The fair value was derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g. absorption rates), which are not market observable. (2) The fair value was derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g. absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. (3) Fair value adjustments to mortgage servicing rights were mainly due to assumptions associated with mortgage prepayment rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate of 6.34%, Discount Rate of 11.18%. As of September 30, 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 September 30, 2015 (Losses) recorded for the Quarter Ended September 30, 2015 (Losses) recorded for the Nine-Month Period Ended September 30, 2015 Level 1 Level 2 Level 3 (In thousands) Loans receivable (1) $ - $ - $ 332,688 $ (7,864) $ (22,431) OREO (2) - - 124,442 (4,025) (8,790) Mortgage servicing rights (3) - - 23,960 (23) (170) Loans Held For Sale (4) - - 8,027 - - (1) Consist mainly of impaired commercial and construction loans. The impairment was generally measured based on the fair value of the collateral. The fair value was derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g. absorption rates), which are not market observable. (2) The fair value was derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g. absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. (3) Fair value adjustments to the mortgage servicing rights were mainly due to assumptions associated with mortgage prepayments rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment Rate of 9.32%, Discount Rate of 10.64%. (4) The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans. |
Estimated Fair Value and Carrying Value of Financial Instruments | The following tables present the carrying value and the estimated fair value of financial instruments as of September 30, 2016 and December 31, 2015: Total Carrying Amount in Statement of Financial Condition September 30, 2016 Fair Value Estimate September 30, 2016 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments $ 528,943 $ 528,943 $ 528,943 $ - $ - Investment securities available for sale 1,843,853 1,843,853 7,933 1,811,442 24,478 Investment securities held to maturity 156,190 132,241 - - 132,241 Other equity securities 28,717 28,717 - 28,717 - Loans held for sale 56,779 60,283 - 50,497 9,786 Loans held for investment 8,863,654 Less: allowance for loan and lease losses (214,070) Loans held for investment, net of allowance $ 8,649,584 8,462,434 - - 8,462,434 Derivatives, included in assets 195 195 - 195 - Liabilities: Deposits 8,981,313 9,003,706 - 9,003,706 - Securities sold under agreements to repurchase 600,000 646,505 - 646,505 - Advances from FHLB 355,000 356,925 - 356,925 - Other borrowings 216,187 174,997 - - 174,997 Derivatives, included in liabilities 335 335 - 335 - Total Carrying Amount in Statement of Financial Condition December 31, 2015 Fair Value Estimate December 31, 2015 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments $ 752,458 $ 752,458 $ 752,458 $ - $ - Investment securities available for sale 1,886,395 1,886,395 7,497 1,851,601 27,297 Investment securities held to maturity 161,483 131,544 - - 131,544 Other equity securities 32,169 32,169 - 32,169 - Loans held for sale 35,869 36,844 - 28,709 8,135 Loans held for investment 9,112,382 Less: allowance for loan and lease losses (240,710) Loans held for investment, net of allowance $ 8,871,672 8,768,152 - - 8,768,152 Derivatives, included in assets 806 806 - 806 - Liabilities: Deposits 9,338,124 9,334,073 - 9,334,073 - Securities sold under agreements to repurchase 700,000 752,048 - 752,048 - Advances from FHLB 455,000 453,182 - 453,182 - Other borrowings 226,492 142,846 - - 142,846 Derivatives, included in liabilities 921 921 - 921 - |
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: September 30, 2016 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 6.34%; weighted average discount rate of 11.18% |
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 September 30, 2016: September 30, 2016 (In thousands) Fair Value Valuation Technique Unobservable Input Range Investment securities available-for-sale: Private label MBS $ 22,130 Discounted cash flow Discount rate 13.3% Prepayment rate 6.5% -22.5% (Weighted Average 13.7%) Projected cumulative loss rate 0.2% -9.1% (Weighted Average 4.0%) Puerto Rico Government Obligations 2,167 Discounted cash flow Prepayment rate 3.00% |
SUPPLEMENTAL CASH FLOW INFORM50
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Information | Nine-Month Period Ended September 30, 2016 2016 2015 (In thousands) Cash paid for: Interest on borrowings $ 104,031 $ 70,016 Income tax 1,878 3,404 Non-cash investing and financing activities: Additions to other real estate owned 37,606 44,415 Additions to auto and other repossessed assets 42,934 57,901 Capitalization of servicing assets 3,878 3,789 Loan securitizations 238,599 213,391 Loans held for investment transferred to held for sale 10,332 - Loans held for sale transferred to held for investment 1,321 - Trust preferred securities exchanged for new common stock issued: Trust preferred securities exchanged - 5,303 New common stock issued - 5,628 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) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016: Interest income $ 34,605 $ 44,455 $ 28,981 $ 12,529 $ 13,944 $ 9,059 $ 143,573 Net (charge) credit for transfer of funds (12,074) 2,810 (6,700) 15,839 125 - - Interest expense - (6,323) - (14,487) (3,811) (774) (25,395) Net interest income 22,531 40,942 22,281 13,881 10,258 8,285 118,178 (Provision) release for loan and lease losses (3,860) (8,655) (8,162) - 2,024 (2,850) (21,503) Non-interest income 5,222 11,292 985 6,154 884 1,609 26,146 Direct non-interest expenses (8,864) (27,100) (11,871) (914) (7,556) (7,097) (63,402) Segment income (loss) $ 15,029 $ 16,479 $ 3,233 $ 19,121 $ 5,610 $ (53) $ 59,419 Average earning assets $ 2,549,358 $ 1,973,424 $ 2,410,037 $ 2,565,019 $ 1,252,271 $ 604,150 $ 11,354,259 (In thousands) Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Treasury and Investments United States Operations Virgin Islands Operations Total For the quarter ended September 30, 2015: Interest income $ 36,180 $ 48,528 $ 32,636 $ 11,500 $ 11,229 $ 9,739 $ 149,812 Net (charge) credit for transfer of funds (12,629) 4,335 (4,058) 8,563 3,789 - - Interest expense - (5,869) - (14,305) (3,931) (778) (24,883) Net interest income 23,551 46,994 28,578 5,758 11,087 8,961 124,929 (Provision) release for loan and lease losses (6,750) (13,946) (11,355) - 1,307 (432) (31,176) Non-interest income 3,982 11,759 647 (174) 778 1,766 18,758 Direct non-interest expenses (8,977) (32,669) (10,896) (1,103) (6,914) (7,441) (68,000) Segment income $ 11,806 $ 12,138 $ 6,974 $ 4,481 $ 6,258 $ 2,854 $ 44,511 Average earning assets $ 2,642,388 $ 1,959,951 $ 2,760,788 $ 2,531,084 $ 1,048,451 $ 644,769 $ 11,587,431 (In thousands) Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Treasury and Investments United States Operations Virgin Islands Operations Total Nine-Month Period Ended September 30, 2016 Interest income $ 104,865 $ 135,655 $ 93,915 $ 39,206 $ 40,091 $ 27,606 $ 441,338 Net (charge) credit for transfer of funds (37,673) 10,546 (18,212) 44,226 1,113 - - Interest expense - (18,765) - (45,828) (11,214) (2,477) (78,284) Net interest income 67,192 127,436 75,703 37,604 29,990 25,129 363,054 (Provision) release for loan and lease losses (21,608) (24,451) (17,730) - 1,563 (1,316) (63,542) Non-interest income 14,381 35,318 2,459 3,815 2,799 5,621 64,393 Direct non-interest expenses (29,828) (87,218) (33,194) (3,462) (23,070) (20,757) (197,529) Segment income $ 30,137 $ 51,085 $ 27,238 $ 37,957 $ 11,282 $ 8,677 $ 166,376 Average earning assets $ 2,576,194 $ 1,989,426 $ 2,489,268 $ 2,774,118 $ 1,188,463 $ 613,666 $ 11,631,135 (In thousands) Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Treasury and Investments United States Operations Virgin Islands Operations Total Nine-Month Period Ended September 30, 2015 Interest income $ 106,352 $ 147,395 $ 100,192 $ 36,276 $ 34,477 $ 29,237 $ 453,929 Net (charge) credit for transfer of funds (36,212) 12,816 (11,746) 23,936 11,206 - - Interest expense - (17,379) - (44,834) (12,326) (2,337) (76,876) Net interest income 70,140 142,832 88,446 15,378 33,357 26,900 377,053 (Provision) release for loan and lease losses (21,657) (36,588) (84,170) - 6,715 (2,712) (138,412) Non-interest income (loss) 11,866 35,504 2,350 (13,046) 2,032 6,008 44,714 Direct non-interest expenses (26,270) (96,690) (30,013) (3,487) (21,293) (24,892) (202,645) Segment income (loss) $ 34,079 $ 45,058 $ (23,387) $ (1,155) $ 20,811 $ 5,304 $ 80,710 Average earning assets $ 2,601,892 $ 1,956,352 $ 2,947,562 $ 2,683,313 $ 1,001,860 $ 640,027 $ 11,831,006 |
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 Nine-Month Period Ended September 30, September 30, 2016 2015 2016 2015 Net income : Total segment income $ 59,419 $ 44,511 $ 166,376 $ 80,710 Other non-interest income (1) - - - 13,443 Other operating expenses (2) (24,901) (25,277) (73,315) (85,159) Income before income taxes 34,518 19,234 93,061 8,994 Income tax expense (10,444) (4,476) (23,690) (2,664) Total consolidated net income $ 24,074 $ 14,758 $ 69,371 $ 6,330 Average assets: Total average earning assets for segments $ 11,354,259 $ 11,587,431 $ 11,631,135 $ 11,831,006 Average non-earning assets 926,043 925,723 927,732 916,817 Total consolidated average assets $ 12,280,302 $ 12,513,154 $ 12,558,867 $ 12,747,823 (1) The bargain purchase gain on the acquisition of assets and assumption of deposits from Doral Bank in 2015 is presented as Other non-interest income in the table above. (2) Expenses pertaining to corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment are not included in the reported financial results of the operating segments. The unallocated corporate expenses include certain general and administrative expenses and related depreciation and amortization expenses. |
REGULATORY MATTERS, COMMITMEN52
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and December 31, 2015 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 September 30, 2016 Total Capital (to Risk-Weighted Assets) First BanCorp. $ 1,892,493 21.27% $ 711,754 8.0% N/A N/A FirstBank $ 1,843,533 20.73% $ 711,460 8.0% $ 889,325 10.0% Common Equity Tier 1 Capital (to Risk-Weighted Assets) First BanCorp. $ 1,569,482 17.64% $ 400,362 4.5% N/A N/A FirstBank $ 1,496,670 16.83% $ 400,196 4.5% $ 578,061 6.5% Tier I Capital (to Risk-Weighted Assets) First BanCorp. $ 1,569,482 17.64% $ 533,816 6.0% N/A N/A FirstBank $ 1,730,264 19.46% $ 533,595 6.0% $ 711,460 8.0% Leverage ratio First BanCorp. $ 1,569,482 13.04% $ 481,357 4.0% N/A N/A FirstBank $ 1,730,264 14.40% $ 480,751 4.0% $ 600,939 5.0% As of December 31, 2015 Total Capital (to Risk-Weighted Assets) First BanCorp. $ 1,828,559 20.01% $ 731,164 8.0% N/A N/A FirstBank $ 1,802,711 19.73% $ 730,824 8.0% $ 913,530 10.0% Common Equity Tier 1 Capital (to Risk-Weighted Assets) First BanCorp. $ 1,546,678 16.92% $ 411,280 4.5% N/A N/A FirstBank $ 1,493,478 16.35% $ 411,088 4.5% $ 593,794 6.5% Tier I Capital (to Risk-Weighted Assets) First BanCorp. $ 1,546,678 16.92% $ 548,373 6.0% N/A N/A FirstBank $ 1,685,656 18.45% $ 548,118 6.0% $ 730,824 8.0% Leverage ratio First BanCorp. $ 1,546,678 12.22% $ 506,322 4.0% N/A N/A FirstBank $ 1,685,656 13.33% $ 505,648 4.0% $ 632,060 5.0% |
FIRST BANCORP. (Holding Compa53
FIRST BANCORP. (Holding Company Only) Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Statements of Financial Condition | Statements of Financial Condition As of September 30, As of December 31, 2016 2015 (In thousands) Assets Cash and due from banks $ 29,074 $ 29,103 Money market investments 6,111 6,111 Other investment securities 285 285 Loans held for investment, net 236 266 Investment in First Bank Puerto Rico, at equity 1,960,090 1,888,036 Investment in First Bank Insurance Agency, at equity 9,991 14,382 Investment in FBP Statutory Trust I 2,929 2,929 Investment in FBP Statutory Trust II 3,561 3,866 Other assets 4,354 4,632 Total assets $ 2,016,631 $ 1,949,610 Liabilities and Stockholders' Equity Liabilities: Other borrowings $ 216,187 $ 226,492 Accounts payable and other liabilities 558 28,984 Total liabilities 216,745 255,476 Stockholders' equity 1,799,886 1,694,134 Total liabilities and stockholders' equity $ 2,016,631 $ 1,949,610 |
Statements of Income (Loss) | Statements of Income Quarter Ended Nine-Month Period Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) (In thousands) Income: Interest income on money market investments $ 5 $ 5 $ 15 $ 15 Dividend income from subsidiaries 1,822 - 39,980 - Other income 58 58 181 439 1,885 63 40,176 454 Expense: Other borrowings 1,817 1,861 5,777 5,521 Other operating expenses 685 643 2,313 2,000 2,502 2,504 8,090 7,521 Gain on early extinguishment of debt - - 4,217 - (Loss) income before income taxes and equity in undistributed earnings of subsidiaries (617) (2,441) 36,303 (7,067) Equity in undistributed earnings of subsidiaries 24,691 17,199 33,068 13,397 Net income $ 24,074 $ 14,758 $ 69,371 $ 6,330 Other Comprehensive (loss) income, net of tax (12,157) 16,709 32,109 13,681 Comprehensive income $ 11,917 $ 31,467 $ 101,480 $ 20,011 |
BUSINESS COMBINATION- Business
BUSINESS COMBINATION- Business Combination (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Liabilities [Abstract] | ||||
Business Combination Bargain Purchase Gain Recognized Amount | $ 0 | $ 0 | $ 0 | $ 13,443 |
Deposits [Member] | ||||
Liabilities [Abstract] | ||||
Liabilities Assumed1 | 0 | 523,517 | ||
Core Deposits [Member] | ||||
Assets [Abstract] | ||||
Fair Value Of Assets Acquired | 0 | 5,820 | ||
Property Plant And Equipment [Member] | ||||
Assets [Abstract] | ||||
Fair Value Of Assets Acquired | 0 | 5,450 | ||
Loans [Member] | ||||
Assets [Abstract] | ||||
Fair Value Of Assets Acquired | $ 0 | $ 311,410 |
BUSINESS COMBINATION- Additiona
BUSINESS COMBINATION- Additional information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||
Branches Doral | 10 | ||
Contractually outstanding principal and interest at acquisition | $ 210.6 | $ 218.1 |
EARNINGS PER COMMON SHARE - Cal
EARNINGS PER COMMON SHARE - Calculations of Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Income (Loss): | ||||
Net income | $ 24,074 | $ 14,758 | $ 69,371 | $ 6,330 |
Net income (loss) attributable to common stockholders | $ 24,074 | $ 14,758 | $ 69,371 | $ 6,330 |
Weighted-Average Shares: | ||||
Basic weighted-average common shares outstanding | 212,927 | 211,820 | 212,682 | 211,255 |
Average potential common shares | 3,651 | 1,963 | 2,577 | 1,341 |
Diluted weighted-average number of common shares outstanding | 216,578 | 213,783 | 215,259 | 212,596 |
Income (loss) per common share: | ||||
Basic | $ 0.11 | $ 0.07 | $ 0.33 | $ 0.03 |
Diluted | $ 0.11 | $ 0.07 | $ 0.32 | $ 0.03 |
Retained Earnings [Member] | ||||
Net Income (Loss): | ||||
Net income | $ 69,371 | $ 6,330 |
EARNINGS PER COMMON SHARE - Add
EARNINGS PER COMMON SHARE - Additional Information (Detail) - shares | 3 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | |
Earnings Per Share Diluted [Line Items] | |||
Unvested shares of restricted stock | 4,209,323 | 2,968,461 | |
Stock Option [Member] | |||
Earnings Per Share Diluted [Line Items] | |||
Antidilutive effect on earnings per share | 69,848 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | May 24, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Granted shares of restricted stock | 1,925,575 | |||||
Restricted stock granted to Board of Directors | 683,713 | |||||
Stock based compensation expense unrecognized related to nonvested shares of restricted stock | $ 4,600 | $ 4,600 | ||||
Period for cost recognition not yet recognized | 1 year 4 months 24 days | |||||
Weighted-Average Grant Date Fair Value of Stocks | $ 1.87 | |||||
Holding Period By The Us Treasury Of Outstanding Common Stock | 2 years | 1 year | ||||
Repurchased of common stock | 255,102 | 181,649 | ||||
Stock Issued During Period Value Restricted Stock Award Forfeitures | $ 5 | $ 36 | ||||
Board Of Directors [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Granted shares of restricted stock | 130,873 | 219,531 | ||||
Senior Executives | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Granted shares | 629,476 | 330,254 | ||||
Weighted-Average Grant Date Fair Value of Stocks | $ 3.6 | $ 5.14 | ||||
Repurchased of common stock | 189,604 | 108,731 | ||||
Management [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Granted shares of restricted stock | 1,794,702 | 793,964 | ||||
Management [Member] | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock vesting period | 3 years | |||||
Management [Member] | Minimum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock vesting period | 2 years | |||||
Omnibus Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Authorized granting up shares | 14,169,807 | |||||
Restricted stock available for issuance | 6,924,391 | 6,924,391 | ||||
Omnibus Plan [Member] | Maximum [Member] | Board Of Directors [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock vesting period | 5 years | |||||
Omnibus Plan [Member] | Minimum [Member] | Board Of Directors [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock vesting period | 1 year | |||||
Omnibus Plan [Member] | Senior Executives | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based compensation cost | $ 2,200 | $ 1,700 | ||||
Omnibus Plan [Member] | Management [Member] | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock vesting period | 3 years | |||||
Omnibus Plan [Member] | Management [Member] | Minimum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock vesting period | 3 months | |||||
Troubled Asset Relief Program [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage increments repayment under TARP | 25.00% | |||||
Restricted Stock Vested Subject To Tarp Percentage | 25.00% | |||||
Troubled Asset Relief Program [Member] | Management [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Granted shares of restricted stock | 1,546,137 | 615,464 | ||||
Fair Value Of Restricted Stock Granted | $ 3.18 | |||||
Percentage of appreciation | 14.00% | |||||
Restricted Stock [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based compensation cost | $ 1,000 | $ 900 | $ 2,900 | $ 2,900 | ||
Repurchased of common stock | 65,498 | 72,918 | ||||
Restricted Stock [Member] | Troubled Asset Relief Program [Member] | Management [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Fair Value Of Restricted Stock Granted | $ 1.43 | |||||
Percentage of appreciation | 14.00% |
STOCK-BASED COMPENSATION - Acti
STOCK-BASED COMPENSATION - Activity of Stock Options (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of options, Beginning of year | shares | 69,848 |
Number of Options, expired | shares | (34,326) |
Number of Options, cancelled | shares | (533) |
Number of options, End of period outstanding and exercisable | shares | 34,989 |
Weighted-Average Exercise Price, beginning of year | $ / shares | $ 160.3 |
Weighted-Average Exercise Price, Options expired | $ / shares | 183.37 |
Weighted-Average Exercise Price, Options cancelled | $ / shares | 138 |
Weighted-Average Exercise Price, End of period outstanding and exercisable | $ / shares | $ 138 |
Weighted- Average Remaining Contractual Term (Years),End of period outstanding and exercisable | 3 months 18 days |
Aggregate Intrinsic Value, End of period outstanding and exercisable | $ | $ 0 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Activity Under Omnibus Plan (Detail) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of non-vested shares of restricted stock, beginning of period | shares | 2,968,461 |
Granted shares of restricted stock | shares | 1,925,575 |
Vested | shares | (683,713) |
Forefeited | shares | (1,000) |
Number of non-vested shares of restricted stock, end of period | shares | 4,209,323 |
Weighted-Average Grant Date Fair Value, beginning of period | $ / shares | $ 3.34 |
Weighted-Average Grant Date Fair Value of Stocks | $ / shares | 1.87 |
Weighted-Averages Grant Date Dair Value, Forefeitures | $ / shares | 6.03 |
Weighted-Averages Grant Date Fair Value, Vested | $ / shares | 3.8 |
Weighted-Average Grant Date Fair Value, end of period | $ / shares | $ 2.59 |
INVESTMENT SECURITIES - Investm
INVESTMENT SECURITIES - Investment Securities Available for Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 1,831,740 | $ 1,906,391 | |
Noncredit Loss Component of OTTI Recorded in OCI | 23,695 | 29,608 | |
Gross unrealized gain | 37,691 | 23,904 | |
Gross unrealized loss | 1,883 | 14,292 | |
Fair value | $ 1,843,853 | $ 1,886,395 | |
Weighted average yield | 2.17% | 2.38% | |
Puerto Rico Government obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 43,500 | ||
United States And Puerto Rico Government Obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 602,121 | $ 514,307 | |
Noncredit Loss Component of OTTI Recorded in OCI | 15,219 | 19,917 | |
Gross unrealized gain | 3,349 | 655 | |
Gross unrealized loss | 1,742 | 6,270 | |
Fair value | $ 588,509 | $ 488,775 | |
Weighted average yield | 1.53% | 1.75% | |
Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 1,229,106 | $ 1,391,984 | |
Noncredit Loss Component of OTTI Recorded in OCI | 8,476 | 9,691 | |
Gross unrealized gain | 34,336 | 23,249 | |
Gross unrealized loss | 141 | 8,022 | |
Fair value | $ 1,254,825 | $ 1,397,520 | |
Weighted average yield | 2.48% | 2.61% | |
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 | $ 257,830 | $ 288,047 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 3,649 | 1,104 | |
Gross unrealized loss | 62 | 1,706 | |
Fair value | $ 261,417 | $ 287,445 | |
Weighted average yield | 2.10% | 2.15% | |
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 | $ 229,624 | $ 285,584 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 15,092 | 16,009 | |
Gross unrealized loss | 0 | 20 | |
Fair value | $ 244,716 | $ 301,573 | |
Weighted average yield | 3.81% | 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 | $ 651,582 | $ 783,356 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 15,563 | 6,135 | |
Gross unrealized loss | 39 | 6,296 | |
Fair value | $ 667,106 | $ 783,195 | |
Weighted average yield | 2.29% | 2.35% | |
Collateralized Mortgage Obligations Issued And Guaranteed By Fhlmc Fnma And Gnma [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 59,383 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 32 | ||
Gross unrealized loss | 40 | ||
Fair value | $ 59,375 | ||
Weighted average yield | 1.20% | ||
Mortgage Backed Securities Issued By Private Enterprises [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 30,687 | $ 34,997 | |
Noncredit Loss Component of OTTI Recorded in OCI | 8,476 | 9,691 | |
Gross unrealized gain | 0 | 1 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 22,211 | $ 25,307 | |
Weighted average yield | 2.37% | 2.26% | |
Due Within One Year [Member] | U S Treasury Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 7,513 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 1 | ||
Gross unrealized loss | 0 | ||
Fair value | $ 7,514 | ||
Weighted average yield | 0.57% | ||
Due Within One Year [Member] | US Government Sponsored Enterprises Debt Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 9,629 | $ 14,624 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 4 | 4 | |
Gross unrealized loss | 0 | 10 | |
Fair value | $ 9,633 | $ 14,618 | |
Weighted average yield | 0.70% | 0.68% | |
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 | $ 1 | $ 2 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 1 | $ 2 | |
Weighted average yield | 1.69% | 1.70% | |
After One To Five Years [Member] | U S Treasury Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 7,530 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 0 | ||
Gross unrealized loss | 33 | ||
Fair value | $ 7,497 | ||
Weighted average yield | 0.57% | ||
After One To Five Years [Member] | US Government Sponsored Enterprises Debt Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 496,782 | $ 384,323 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 3,215 | 174 | |
Gross unrealized loss | 53 | 4,305 | |
Fair value | $ 499,944 | $ 380,192 | |
Weighted average yield | 1.32% | 1.32% | |
After One To Five Years [Member] | Puerto Rico Government obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 21,423 | $ 25,663 | |
Noncredit Loss Component of OTTI Recorded in OCI | 12,023 | 14,662 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 9,400 | $ 11,001 | |
Weighted average yield | 4.38% | 4.38% | |
After One To Five Years [Member] | Other Available For Sale Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 100 | $ 100 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 100 | $ 100 | |
Weighted average yield | 1.50% | 1.50% | |
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 | $ 93 | $ 109 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 3 | 5 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 96 | $ 114 | |
Weighted average yield | 3.85% | 4.26% | |
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 | $ 22,594 | $ 2,552 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 452 | 74 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 23,046 | $ 2,626 | |
Weighted average yield | 1.99% | 3.32% | |
After Five To Ten Years [Member] | US Government Sponsored Enterprises Debt Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 58,150 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 343 | ||
Gross unrealized loss | 242 | ||
Fair value | $ 58,251 | ||
Weighted average yield | 2.34% | ||
After Five To Ten Years [Member] | Puerto Rico Government obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 845 | $ 855 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 6 | 0 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 851 | $ 855 | |
Weighted average yield | 5.20% | 5.20% | |
After Five To 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 | $ 6,314 | $ 336 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 145 | 31 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 6,459 | $ 367 | |
Weighted average yield | 2.31% | 4.95% | |
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 | $ 98,314 | $ 120,298 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 2,557 | 3,182 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 100,871 | $ 123,480 | |
Weighted average yield | 3.05% | 3.07% | |
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 | $ 26,448 | $ 21,557 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 577 | 433 | |
Gross unrealized loss | 19 | 233 | |
Fair value | $ 27,006 | $ 21,757 | |
Weighted average yield | 2.06% | 2.73% | |
After Five To Ten Years [Member] | Collateralized Mortgage Obligations Issued And Guaranteed By Fhlmc Fnma And Gnma [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 19,853 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 7 | ||
Gross unrealized loss | 33 | ||
Fair value | $ 19,827 | ||
Weighted average yield | 1.18% | ||
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 | $ 81 | $ 92 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 0 | 1 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 81 | $ 93 | |
Weighted average yield | 7.20% | 7.26% | |
After Ten Years [Member] | US Government Sponsored Enterprises Debt Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 44,724 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 7 | ||
Gross unrealized loss | 133 | ||
Fair value | $ 44,598 | ||
Weighted average yield | 0.87% | ||
After Ten Years [Member] | Puerto Rico Government obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 21,205 | $ 23,162 | |
Noncredit Loss Component of OTTI Recorded in OCI | 3,196 | 5,255 | |
Gross unrealized gain | 116 | 134 | |
Gross unrealized loss | 1,556 | 1,680 | |
Fair value | $ 16,569 | $ 16,361 | |
Weighted average yield | 5.39% | 5.40% | |
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 | $ 251,516 | $ 287,711 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 3,504 | 1,073 | |
Gross unrealized loss | 62 | 1,706 | |
Fair value | $ 254,958 | $ 287,078 | |
Weighted average yield | 2.10% | 2.14% | |
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 | $ 131,216 | $ 165,175 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 12,532 | 12,822 | |
Gross unrealized loss | 0 | 20 | |
Fair value | $ 143,748 | $ 177,977 | |
Weighted average yield | 4.37% | 4.38% | |
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 | $ 602,540 | $ 759,247 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 14,534 | 5,628 | |
Gross unrealized loss | 20 | 6,063 | |
Fair value | $ 617,054 | $ 758,812 | |
Weighted average yield | 2.31% | 2.34% | |
After Ten Years [Member] | Collateralized Mortgage Obligations Issued And Guaranteed By Fhlmc Fnma And Gnma [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 39,530 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 25 | ||
Gross unrealized loss | 7 | ||
Fair value | $ 39,548 | ||
Weighted average yield | 1.21% | ||
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 | $ 30,606 | $ 34,905 | |
Noncredit Loss Component of OTTI Recorded in OCI | 8,476 | 9,691 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 22,130 | $ 25,214 | |
Weighted average yield | 2.37% | 2.26% | |
Equity Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | [1] | $ 413 | |
Noncredit Loss Component of OTTI Recorded in OCI | [1] | 0 | |
Gross unrealized gain | [1] | 6 | |
Gross unrealized loss | [1] | 0 | |
Fair value | [1] | $ 419 | |
Weighted average yield | [1] | 2.15% | |
[1] | Equity securities consisted of investment in a Community Reinvestment Act Qualified Investment Fund. |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Schedule Of Investments [Line Items] | ||||||||
Proceeds from sale of available-for-sale securities | $ 219,780 | $ 0 | ||||||
Percentage Of Debt Securities Government And Government Sponsored Agencies | 97.00% | 97.00% | ||||||
Maximum loan to value ratio | 80.00% | |||||||
Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities | $ 270,345 | 212,972 | ||||||
Total investment securities available for sale | $ 1,843,853 | $ 1,886,395 | 1,843,853 | |||||
Impairement on equity securities | 6,096 | $ 0 | 6,104 | 0 | ||||
Fair value | 1,843,853 | 1,886,395 | 1,843,853 | |||||
Amortized cost | $ 1,831,740 | $ 1,906,391 | $ 1,831,740 | |||||
Weighted average yield | 2.17% | 2.38% | 2.17% | |||||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Portion Recognized in Earnings, Net, Qualitative Disclosures, Default Rate | 100.00% | |||||||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net | [1] | $ 0 | $ 231 | $ 6,687 | 13,484 | |||
Percentage Of Held To Maturity Securities | 87.00% | |||||||
Interest Receivable | $ 41,439 | $ 48,697 | 41,439 | |||||
Puerto Rico Buildings Authority [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Total investment securities available for sale | 10,100 | 10,100 | ||||||
Fair value | 10,100 | 10,100 | ||||||
Puerto Rico Government Development Bank [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Total investment securities available for sale | 9,400 | 9,400 | ||||||
Fair value | 9,400 | 9,400 | ||||||
Interest Receivable | 900 | $ 900 | ||||||
Maximum [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Portion Recognized in Earnings, Net, Qualitative Disclosures, Recovery Rate | 80.00% | |||||||
Minimum [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Portion Recognized in Earnings, Net, Qualitative Disclosures, Recovery Rate | 35.00% | |||||||
Weighted Average [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Portion Recognized in Earnings, Net, Qualitative Disclosures, Recovery Rate | 61.00% | |||||||
Mortgage Backed Securities Issued By Private Enterprises [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Amortized cost | 30,600 | $ 30,600 | ||||||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net | 400 | 600 | ||||||
Puerto Rico Government obligations [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Amortized cost | 43,500 | 43,500 | ||||||
Change in net unrealized gains | 300 | 13,400 | ||||||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net | $ 6,300 | $ 3,000 | $ 12,900 | 6,300 | $ 12,900 | |||
Puerto Rico Government obligations [Member] | Puerto Rico Government Debt Securities Other Than Temporary Impairment [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Total investment securities available for sale | 19,500 | 19,500 | ||||||
Fair value | 19,500 | 19,500 | ||||||
Amortized cost | 35,600 | 35,600 | ||||||
Puerto Rico Government obligations [Member] | Puerto Rico Buildings Authority [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Amortized cost | 13,300 | 13,300 | ||||||
Puerto Rico Government obligations [Member] | Puerto Rico Government Development Bank [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Amortized cost | $ 22,000 | $ 22,000 | ||||||
[1] | For the nine-month periods ended September 30, 2016 and 2015, approximately $6.3 million and $12.9 million, respectively, of the credit impairment recognized in earnings consisted of credit losses on Puerto Rico Government debt securities and $0.4 million and $0.6 million, respectively, was associated with credit losses on private label MBS. |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narratives (Detail) | Sep. 30, 2016minimumcreditscore |
Disclosure Investment Securities Additional Information [Abstract] | |
Minimum Credit Score | 700 |
INVESTMENT SECURITIES - Availab
INVESTMENT SECURITIES - Available-For-Sale Investments' Fair Value And Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | $ 165,382 | $ 778,485 |
Unrealized Losses Less than 12 months | 327 | 6,803 |
Fair Value 12 months or more | 43,818 | 366,045 |
Unrealized Losses 12 months or more | 25,251 | 37,097 |
Total Fair Value | 209,200 | 1,144,530 |
Total Unrealized Losses | 25,578 | 43,900 |
Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 2 | |
Unrealized Losses Less than 12 months | 0 | |
Fair Value 12 months or more | 0 | |
Unrealized Losses 12 months or more | 0 | |
Total Fair Value | 2 | |
Total Unrealized Losses | 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 | 21,688 | 23,008 |
Unrealized Losses 12 months or more | 16,775 | 21,597 |
Total Fair Value | 21,688 | 23,008 |
Total Unrealized Losses | 16,775 | 21,597 |
Debt Securities [Member] | US States And Political Subdivisions Member [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 60,970 | 198,243 |
Unrealized Losses Less than 12 months | 186 | 929 |
Fair Value 12 months or more | 0 | 210,504 |
Unrealized Losses 12 months or more | 0 | 3,661 |
Total Fair Value | 60,970 | 408,747 |
Total Unrealized Losses | 186 | 4,590 |
Mortgage Backed Securities [Member] | Collateralized Mortgage Obligations Member | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 31,896 | |
Unrealized Losses Less than 12 months | 40 | |
Fair Value 12 months or more | 0 | |
Unrealized Losses 12 months or more | 0 | |
Total Fair Value | 31,896 | |
Total Unrealized Losses | 40 | |
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 | 22,130 | 25,214 |
Unrealized Losses 12 months or more | 8,476 | 9,691 |
Total Fair Value | 22,130 | 25,214 |
Total Unrealized Losses | 8,476 | 9,691 |
Mortgage Backed Securities [Member] | Government National Mortgage Association Certificates And Obligations G N M A [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 1,047 | |
Unrealized Losses Less than 12 months | 20 | |
Fair Value 12 months or more | 0 | |
Unrealized Losses 12 months or more | 0 | |
Total Fair Value | 1,047 | |
Total Unrealized Losses | 20 | |
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 | 18,245 | 437,305 |
Unrealized Losses Less than 12 months | 39 | 4,516 |
Fair Value 12 months or more | 0 | 88,013 |
Unrealized Losses 12 months or more | 0 | 1,780 |
Total Fair Value | 18,245 | 525,318 |
Total Unrealized Losses | 39 | 6,296 |
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 | 54,269 | 141,890 |
Unrealized Losses Less than 12 months | 62 | 1,338 |
Fair Value 12 months or more | 0 | 19,306 |
Unrealized Losses 12 months or more | 0 | 368 |
Total Fair Value | 54,269 | 161,196 |
Total Unrealized Losses | $ 62 | $ 1,706 |
INVESTMENT SECURITIES - OTTI Lo
INVESTMENT SECURITIES - OTTI Losses on Available-for-Sale Debt Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Schedule Of Available For Sale Securities [Line Items] | ||||||||
Total other-than-temporary impairment losses | $ 0 | $ 0 | $ (1,845) | $ (29,521) | ||||
Credit losses on debt securities for which an OTTI was no previously recognized | 0 | 0 | 0 | 12,856 | ||||
Portion of loss previously recognized in other comprehensive income | 0 | 231 | 4,842 | (16,037) | ||||
Net impairment losses recognized in earnings | [1] | 0 | (231) | (6,687) | (13,484) | |||
Mortgage Backed Securities [Member] | ||||||||
Schedule Of Available For Sale Securities [Line Items] | ||||||||
Credit losses on debt securities for which an OTTI was no previously recognized | 0 | |||||||
Mortgage Backed Securities Issued By Private Enterprises [Member] | ||||||||
Schedule Of Available For Sale Securities [Line Items] | ||||||||
Credit losses on debt securities for which an OTTI was no previously recognized | 0 | 0 | 0 | |||||
Net impairment losses recognized in earnings | (400) | (600) | ||||||
US States And Political Subdivisions Member [Member] | ||||||||
Schedule Of Available For Sale Securities [Line Items] | ||||||||
Credit losses on debt securities for which an OTTI was no previously recognized | $ 0 | $ 0 | 0 | 12,856 | ||||
Net impairment losses recognized in earnings | $ (6,300) | $ (3,000) | $ (12,900) | $ (6,300) | $ (12,900) | |||
[1] | For the nine-month periods ended September 30, 2016 and 2015, approximately $6.3 million and $12.9 million, respectively, of the credit impairment recognized in earnings consisted of credit losses on Puerto Rico Government debt securities and $0.4 million and $0.6 million, respectively, was associated with credit losses on private label MBS. |
INVESTMENT SECURITIES - Roll-Fo
INVESTMENT SECURITIES - Roll-Forward of Credit Losses on Debt Securities Held by Corporation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
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 | $ 28,981 | $ 19,030 | $ 22,294 | $ 5,777 |
Additions: | ||||
Credit losses on debt securities for which an OTTI was no previously recognized | 0 | 0 | 0 | 12,856 |
Credit losses on debt securities for which an OTTI was previously recognized | 0 | 231 | 6,687 | 628 |
Reductions: | ||||
Ending balance of credit losses on debt securities held for which a portion of an OTTI was recognized in OCI | 28,981 | 19,261 | 28,981 | 19,261 |
Mortgage Backed Securities Issued By Private Enterprises [Member] | ||||
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 | 6,792 | 6,174 | 6,405 | 5,777 |
Additions: | ||||
Credit losses on debt securities for which an OTTI was no previously recognized | 0 | 0 | 0 | |
Credit losses on debt securities for which an OTTI was previously recognized | 0 | 231 | 387 | 628 |
Reductions: | ||||
Ending balance of credit losses on debt securities held for which a portion of an OTTI was recognized in OCI | 6,792 | 6,405 | 6,792 | 6,405 |
US States And Political Subdivisions Member [Member] | ||||
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 | 22,189 | 12,856 | 15,889 | 0 |
Additions: | ||||
Credit losses on debt securities for which an OTTI was no previously recognized | 0 | 0 | 0 | 12,856 |
Credit losses on debt securities for which an OTTI was previously recognized | 0 | 0 | 6,300 | 0 |
Reductions: | ||||
Ending balance of credit losses on debt securities held for which a portion of an OTTI was recognized in OCI | $ 22,189 | $ 12,856 | $ 22,189 | $ 12,856 |
INVESTMENT SECURITIES - Signifi
INVESTMENT SECURITIES - Significant Assumptions in Valuation of Private Label MBS (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule Of Investments [Line Items] | ||
Fair Value Inputs Discount Rate | 13.28% | 14.50% |
Fair Value Inputs Prepayment Rate | 13.70% | 25.00% |
Weighted Average, Projected Cumulative Loss Rate | 4.00% | 3.60% |
Minimum [Member] | ||
Schedule Of Investments [Line Items] | ||
Fair Value Inputs Discount Rate | 12.03% | |
Fair Value Inputs Prepayment Rate | 6.50% | 15.92% |
Weighted Average, Projected Cumulative Loss Rate | 0.20% | 0.18% |
Maximum [Member] | ||
Schedule Of Investments [Line Items] | ||
Fair Value Inputs Discount Rate | 13.50% | |
Fair Value Inputs Prepayment Rate | 22.50% | 31.25% |
Weighted Average, Projected Cumulative Loss Rate | 9.10% | 6.66% |
INVESTMENT SECURITIES - Inves68
INVESTMENT SECURITIES - Investment Securities Held to Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule Of Held To Maturity Securities [Line Items] | ||
Held To Maturity Securities | $ 156,190 | $ 161,483 |
Held To Maturity Securities Fair Value | 132,241 | 131,544 |
US States And Political Subdivisions Member [Member] | P R | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held To Maturity Securities | 156,190 | 161,483 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 0 | 0 |
Held To Maturity Securities Accumulated Unrecognized Holding Loss | 23,949 | 29,939 |
Held To Maturity Securities Fair Value | $ 132,241 | $ 131,544 |
Held To Maturity Securities Debt Maturities Average Yield | 4.65% | 4.62% |
US States And Political Subdivisions Member [Member] | After One To Five Years [Member] | P R | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held To Maturity Securities | $ 1,136 | $ 1,371 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 0 | 0 |
Held To Maturity Securities Accumulated Unrecognized Holding Loss | 27 | 37 |
Held To Maturity Securities Fair Value | $ 1,109 | $ 1,334 |
Held To Maturity Securities Debt Maturities Average Yield | 5.38% | 5.38% |
US States And Political Subdivisions Member [Member] | After Five To Ten Years [Member] | P R | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held To Maturity Securities | $ 10,741 | $ 11,523 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 0 | 0 |
Held To Maturity Securities Accumulated Unrecognized Holding Loss | 782 | 1,041 |
Held To Maturity Securities Fair Value | $ 9,959 | $ 10,482 |
Held To Maturity Securities Debt Maturities Average Yield | 4.41% | 4.25% |
US States And Political Subdivisions Member [Member] | After Ten Years [Member] | P R | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held To Maturity Securities | $ 144,313 | $ 148,589 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 0 | 0 |
Held To Maturity Securities Accumulated Unrecognized Holding Loss | 23,140 | 28,861 |
Held To Maturity Securities Fair Value | $ 121,173 | $ 119,728 |
Held To Maturity Securities Debt Maturities Average Yield | 4.66% | 4.64% |
INVESTMENT SECURITIES - Inves69
INVESTMENT SECURITIES - Investment Securities Held to Maturity (Securities in continuous unrealized loss position) (Detail) - US States And Political Subdivisions Member [Member] - P R - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule Of Held To Maturity Securities [Line Items] | ||
Held to maturity less than twelve months fair value | $ 0 | $ 4,163 |
Held to maturity less than twelve months unrealized losses | 0 | 140 |
Held to maturity securities twelve months or longer fair value | 132,241 | 127,381 |
Held to maturity securities twelve month or longer unrealized losses | 23,949 | 29,799 |
Held to maturity unrealized loss position fair value | 132,241 | 131,544 |
Held to maturity unrealized loss position aggregate losses | $ 23,949 | $ 29,939 |
OTHER EQUITY SECURITIES - Addit
OTHER EQUITY SECURITIES - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Schedule Of Other Assets [Line Items] | |||||
Capital stock par value | $ 100 | $ 100 | |||
Book value of investment in FHLB stock | $ 26.6 | $ 26.6 | $ 31.3 | ||
Dividend income from FHLB stock | 0.4 | $ 0.3 | 1.1 | $ 0.8 | |
Carrying value of other equity security | $ 2.1 | $ 2.1 | $ 0.9 |
LOAN PORTFOLIO - Loan Portfolio
LOAN PORTFOLIO - Loan Portfolio Held for Investment (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | |
Financial Information [Line Items] | ||||
Loans held for investment | $ 8,863,654 | $ 9,112,382 | $ 9,140,462 | |
Less: allowance for loan and lease losses | (214,070) | (240,710) | ||
Loans held for investment, net | 8,649,584 | 8,871,672 | ||
Construction Loans [Member] | ||||
Financial Information [Line Items] | ||||
Loans held for investment | 124,298 | 156,195 | ||
Residential Mortgage [Member] | ||||
Financial Information [Line Items] | ||||
Loans held for investment | 3,299,942 | 3,344,719 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Financial Information [Line Items] | ||||
Loans held for investment | 1,545,014 | 1,537,806 | ||
Commercial Portfolio Segment [Member] | ||||
Financial Information [Line Items] | ||||
Loans held for investment | 3,836,323 | 3,940,514 | ||
Commercial And Industrial Sector [Member] | ||||
Financial Information [Line Items] | ||||
Loans held for investment | [1] | 2,167,011 | 2,246,513 | |
Other Consumer Loans [Member] | ||||
Financial Information [Line Items] | ||||
Loans held for investment | 1,497,812 | 1,597,984 | ||
Finance Leases [Member] | ||||
Financial Information [Line Items] | ||||
Loans held for investment | $ 229,577 | $ 229,165 | ||
[1] | As of September 30, 2016 and December 31, 2015, includes $949.9 million and $1.0 billion, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. |
LOAN PORTFOLIO - Loan Portfol72
LOAN PORTFOLIO - Loan Portfolio Held for Investment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | |
Financial Information [Line Items] | |||
Classified And Non Performing Loans Sold | $ 147.5 | ||
Commercian Loans Collaterized By Real Estate | $ 949.9 | $ 1,000 |
LOAN PORTFOLIO - Loans Held for
LOAN PORTFOLIO - Loans Held for Investment on Which Accrual of Interest Income had been Discontinued (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Non-performing loans: | |||
Total non-performing loans held for investment | [1],[2],[3] | $ 566,712 | $ 442,773 |
Residential Mortgage [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 162,201 | 169,001 | |
Commercial Mortgage [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 191,449 | 51,333 | |
Commercial And Industrial [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 137,016 | 137,051 | |
Consumer Auto Loans [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 14,615 | 17,435 | |
Finance Leases [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 1,969 | 2,459 | |
Consumer Retail Banking [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 8,695 | 10,858 | |
Residential Construction [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 2,053 | 2,996 | |
Commercial Construction [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 36,953 | 39,466 | |
Land Construction [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | $ 11,761 | $ 12,174 | |
[1] | Amount excludes purchased-credit impaired ("PCI") loans with a carrying value of approximately $168.1 million and $173.9 million as of September 30, 2016 and December 31, 2015, respectively, primarily mortgage loans acquired from Doral Bank in the first quarter of 2015 and from Doral Financial in the second quarter of 2014, as further discussed below. These loans are not considered non-performing due to the application of the accretion method, under which these loans will accrete interest income over the remaining life of the loans using an estimated cash flow analysis. | ||
[2] | As of September 30, 2016 and December 31, 2015, excludes $8.1 million of non-performing loans held for sale. | ||
[3] | Non-performing loans exclude $415.9 million and $414.9 million of Troubled Debt Restructuring ("TDR") loans that are in compliance with modified terms and in accrual status as of September 30, 2016 and December 31, 2015, respectively. |
LOAN PORTFOLIO - Loans Held f74
LOAN PORTFOLIO - Loans Held for Investment on Which Accrual of Interest Income had been Discontinued (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | $ 56,779 | $ 35,869 |
Non Accrual [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | $ 8,100 | $ 8,100 |
LOAN PORTFOLIO - Corporation's
LOAN PORTFOLIO - Corporation's Aging of Loans Held for Investment Portfolio (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | ||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | $ 920,393 | $ 841,188 | ||||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 168,141 | $ 169,690 | 173,913 | $ 176,085 | $ 178,494 | $ 102,604 | ||
Financing Receivable, Current | 7,775,120 | 8,097,281 | ||||||
Loans held for investment | 8,863,654 | 9,112,382 | $ 9,140,462 | |||||
90 days past due and still accruing | 110,538 | [1] | 139,987 | [2] | ||||
Financing Receivables 60 To 89 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 118,315 | 164,889 | ||||||
Financing Receivables 30 To 59 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 124,828 | 93,539 | ||||||
Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 677,250 | [3] | 582,760 | [4] | ||||
Fha Va And Other Government Guaranteed Loans [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 86,987 | [1],[5],[6] | 96,216 | [2],[7],[8] | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | [1],[5],[6] | 0 | [2],[7],[8] | ||||
Financing Receivable, Current | 44,949 | [1],[5],[6] | 46,925 | [2],[7],[8] | ||||
Loans held for investment | 131,936 | [1],[5],[6] | 143,141 | [2],[7],[8] | ||||
90 days past due and still accruing | 81,677 | [1],[5],[6] | 90,168 | [2],[7],[8] | ||||
Fha Va And Other Government Guaranteed Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 5,310 | [1],[5],[6] | 6,048 | [2],[7],[8] | ||||
Fha Va And Other Government Guaranteed Loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 0 | [1],[5],[6] | 0 | [2],[7],[8] | ||||
Fha Va And Other Government Guaranteed Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 81,677 | [1],[3],[5],[6] | 90,168 | [2],[4],[7],[8] | ||||
Residential Mortgage [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 165,014 | [5] | 170,766 | [7] | ||||
Loans held for investment | 3,299,942 | 3,344,719 | ||||||
Commercial And Industrial [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 183,951 | 162,882 | ||||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | 0 | ||||||
Financing Receivable, Current | 1,983,060 | 2,083,631 | ||||||
Loans held for investment | 2,167,011 | 2,246,513 | ||||||
90 days past due and still accruing | 1,468 | [1] | 13,842 | [2] | ||||
Commercial And Industrial [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 500 | 6,412 | ||||||
Commercial And Industrial [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 44,967 | 5,577 | ||||||
Commercial And Industrial [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 138,484 | [3] | 150,893 | [4] | ||||
Commercial Mortgage Loans [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 199,676 | [5] | 88,534 | [7] | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 3,127 | [5] | 3,147 | [7] | ||||
Financing Receivable, Current | 1,342,211 | [5] | 1,446,125 | [7] | ||||
Loans held for investment | 1,545,014 | [5] | 1,537,806 | [7] | ||||
90 days past due and still accruing | 4,791 | [1],[5] | 12,472 | [2],[7] | ||||
Commercial Mortgage Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 3,436 | [5] | 24,729 | [7] | ||||
Commercial Mortgage Loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 0 | [5] | 0 | [7] | ||||
Commercial Mortgage Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 196,240 | [3],[5] | 63,805 | [4],[7] | ||||
Construction Loans [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Loans held for investment | 124,298 | 156,195 | ||||||
Auto loans [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 91,828 | 105,058 | ||||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | 0 | ||||||
Financing Receivable, Current | 766,969 | 829,922 | ||||||
Loans held for investment | 858,797 | 934,980 | ||||||
90 days past due and still accruing | 0 | [1] | 0 | [2] | ||||
Auto loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 13,743 | 16,787 | ||||||
Auto loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 63,470 | 70,836 | ||||||
Auto loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 14,615 | [3] | 17,435 | [4] | ||||
Finance Leases [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 12,480 | 13,223 | ||||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | 0 | ||||||
Financing Receivable, Current | 217,097 | 215,942 | ||||||
Loans held for investment | 229,577 | 229,165 | ||||||
90 days past due and still accruing | 0 | [1] | 0 | [2] | ||||
Finance Leases [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 2,312 | 3,100 | ||||||
Finance Leases [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 8,199 | 7,664 | ||||||
Finance Leases [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 1,969 | [3] | 2,459 | [4] | ||||
Consumer Loan [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 25,822 | 30,110 | ||||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | 0 | ||||||
Financing Receivable, Current | 613,193 | 632,894 | ||||||
Loans held for investment | 639,015 | 663,004 | ||||||
90 days past due and still accruing | 4,111 | [1] | 4,266 | [2] | ||||
Consumer Loan [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 4,824 | 5,524 | ||||||
Consumer Loan [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 8,192 | 9,462 | ||||||
Consumer Loan [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 12,806 | [3] | 15,124 | [4] | ||||
Commercial Construction [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 36,953 | [5] | 51,188 | |||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | [5] | 0 | [7] | ||||
Financing Receivable, Current | 38,460 | [5] | 32,142 | |||||
Loans held for investment | 75,413 | [5] | 83,330 | |||||
90 days past due and still accruing | 0 | [1],[5] | 0 | [2] | ||||
Commercial Construction [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 0 | [5] | 11,722 | |||||
Commercial Construction [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 0 | [5] | 0 | |||||
Commercial Construction [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 36,953 | [3],[5] | 39,466 | [4] | ||||
Residential Construction [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 2,721 | [5] | 6,042 | [7] | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | [5] | 0 | [7] | ||||
Financing Receivable, Current | 12,767 | [5] | 14,949 | [7] | ||||
Loans held for investment | 15,488 | [5] | 20,991 | [7] | ||||
90 days past due and still accruing | 668 | [1],[5] | 3,046 | [2],[7] | ||||
Residential Construction [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 0 | [5] | 0 | [7] | ||||
Residential Construction [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 0 | [5] | 0 | [7] | ||||
Residential Construction [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 2,721 | [3],[5] | 6,042 | [4],[7] | ||||
Land Construction [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 12,902 | [5] | 12,511 | [7] | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | 0 | [7] | |||||
Financing Receivable, Current | 20,495 | [5] | 39,363 | [7] | ||||
Loans held for investment | 33,397 | [5] | 51,874 | [7] | ||||
90 days past due and still accruing | 376 | [1],[5] | 176 | [2],[7] | ||||
Land Construction [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 765 | [5] | 161 | [7] | ||||
Land Construction [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 0 | [5] | 0 | [7] | ||||
Land Construction [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 12,137 | [3],[5] | 12,350 | [4],[7] | ||||
Other Residential Mortgage Loans [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 267,073 | [5] | 275,424 | |||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 165,014 | [5] | 170,766 | [7] | ||||
Financing Receivable, Current | 2,735,919 | [5] | 2,755,388 | |||||
Loans held for investment | 3,168,006 | [5] | 3,201,578 | |||||
90 days past due and still accruing | 17,447 | [5] | 16,017 | |||||
Other Residential Mortgage Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 87,425 | [5] | 90,406 | |||||
Other Residential Mortgage Loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | 0 | [5] | 0 | |||||
Other Residential Mortgage Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Total Past Due | $ 179,648 | [3],[5] | $ 185,018 | |||||
[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 $29.6 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent and are no longer accruing interest as of September 30, 2016. | |||||||
[2] | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as past-due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. These balances include $37.3 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent and are no longer accruing interest as of December 31, 2015. | |||||||
[3] | Includes non-performing loans and accruing loans that are contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days. | |||||||
[4] | Includes non-performing loans and accruing loans that are contractually delinquent 90 days or more (i.e. FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days. | |||||||
[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 September 30, 2016 amounted to $8.7 million, $144.3 million, $7.6 million, $0.7 million and $0.3 million, respectively. | |||||||
[6] | As of September 30, 2016, includes $45.6 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] | 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, 2015 amounted to $11.0 million, $162.9 million, $38.6 million, $5.7 million and $0.8 million, respectively. | |||||||
[8] | As of December 31, 2015, includes $38.5 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans. |
LOAN PORTFOLIO - Corporation'76
LOAN PORTFOLIO - Corporation's Aging of Loans Held for Investment Portfolio (Parenthetical) (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016USD ($)numberofpayments | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
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 | 2 months 29 days | 2 months 29 days | |
Period during which credit card loans continue to accrue finance charges and fees | 5 months 27 days | 5 months 27 days | |
Defaulted loans collateralizing Ginnie Mae (GNMA) securities | $ 45.6 | $ 45.6 | $ 38.5 |
Minimum Number of Payments in Arrears to Consider Commercial Mortgage and Construction Loan as Past Due | numberofpayments | 2 | ||
Residential mortgage loans insured by FHA or guaranteed by the VA | $ 29.6 | $ 29.6 | $ 37.3 |
Period of residential mortgage loan that are no longer accruing interest | 1 year 3 months | 1 year 3 months | 1 year 3 months |
Fha Va And Other Government Guaranteed Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
30-59 Days past due Mortgages | $ 8.7 | $ 8.7 | $ 11 |
Commercial Mortgage Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
30-59 Days past due Mortgages | 7.6 | 7.6 | 38.6 |
Residential Construction [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
30-59 Days past due Mortgages | 0.3 | 0.3 | 0.8 |
Land Construction [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
30-59 Days past due Mortgages | 0.7 | 0.7 | 5.7 |
Other Residential Mortgage Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
30-59 Days past due Mortgages | $ 144.3 | $ 144.3 | $ 162.9 |
LOAN PORTFOLIO - Corporation'77
LOAN PORTFOLIO - Corporation's Credit Quality Indicators by Loan (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable Recorded Investment [Line Items] | |||
Commercial mortgage loans | $ 1,545,014 | $ 1,537,806 | |
Commercial and Industrial loans | 2,167,011 | 2,246,513 | |
Land | 33,397 | 51,874 | |
Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 15,488 | 20,991 | |
Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 75,413 | 83,330 | |
Substandard [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Commercial mortgage loans | 218,523 | 252,941 | |
Commercial and Industrial loans | 159,498 | 140,827 | |
Land | 20,175 | 14,035 | |
Substandard [Member] | Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 2,053 | 2,996 | |
Substandard [Member] | Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 36,953 | 39,466 | |
Doubtful [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Commercial mortgage loans | 36,211 | 140 | |
Commercial and Industrial loans | 72,806 | 71,341 | |
Land | 0 | 1 | |
Doubtful [Member] | Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 0 | 0 | |
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 | 445 | 354 | |
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 | [1] | 254,734 | 253,081 |
Commercial and Industrial loans | [1] | 232,749 | 212,522 |
Land | [1] | 20,175 | 14,036 |
Total Adversely Classified [Member] | Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | [1] | 2,053 | 2,996 |
Total Adversely Classified [Member] | Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | [1] | $ 36,953 | $ 39,466 |
[1] | Excludes $8.1 million as of September 30, 2016 and December 31, 2015, of construction-land non-performing loans held for sale. |
LOAN PORTFOLIO - Credit Risk Pa
LOAN PORTFOLIO - Credit Risk Payment Activity (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | ||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | $ 8,863,654 | $ 9,112,382 | $ 9,140,462 | ||
Other Residential Mortgage Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 3,168,006 | [1] | 3,201,578 | ||
Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 858,797 | 934,980 | |||
Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 229,577 | 229,165 | |||
Other Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 1,497,812 | 1,597,984 | |||
Residential Real Estate [Member] | Fhava Guaranteed Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 131,936 | [2] | 143,141 | [3] | |
Residential Real Estate [Member] | Other Residential Mortgage Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 3,168,006 | 3,201,578 | |||
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 | 131,936 | [2] | 143,141 | [3] | |
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 | 2,840,791 | 2,861,811 | |||
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 | [2],[4] | 0 | [3],[5] | |
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 | 165,014 | [4] | 170,766 | [5] | |
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 | [2] | 0 | [3] | |
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 | 162,201 | 169,001 | |||
Consumer [Member] | Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 858,797 | 934,980 | |||
Consumer [Member] | Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 229,577 | 229,165 | |||
Consumer [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 639,015 | 663,004 | |||
Consumer [Member] | Performing Financing Receivable [Member] | Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 844,182 | 917,545 | |||
Consumer [Member] | Performing Financing Receivable [Member] | Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 227,608 | 226,706 | |||
Consumer [Member] | Performing Financing Receivable [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 630,320 | 652,146 | |||
Consumer [Member] | Purchased Credit Impaired [Member] | Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 0 | [4] | 0 | [5] | |
Consumer [Member] | Purchased Credit Impaired [Member] | Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 0 | [4] | 0 | [5] | |
Consumer [Member] | Purchased Credit Impaired [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 0 | [4] | 0 | [5] | |
Consumer [Member] | Nonperforming Financing Receivable [Member] | Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 14,615 | 17,435 | |||
Consumer [Member] | Nonperforming Financing Receivable [Member] | Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 1,969 | 2,459 | |||
Consumer [Member] | Nonperforming Financing Receivable [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | $ 8,695 | $ 10,858 | |||
[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 September 30, 2016 amounted to $8.7 million, $144.3 million, $7.6 million, $0.7 million and $0.3 million, respectively. | ||||
[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 $29.6 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent and are no longer accruing interest as of September 30, 2016. | ||||
[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 $37.3 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent and are no longer accruing interest as of December 31, 2015. | ||||
[4] | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis. | ||||
[5] | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis. |
LOAN PORTFOLIO - Credit Risk 79
LOAN PORTFOLIO - Credit Risk Payment Activity (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable Recorded Investment [Line Items] | |||
Residential mortgage loans insured by FHA or guaranteed by the VA | $ 29,600 | $ 29,600 | $ 37,300 |
Period of residential mortgage loan that are no longer accruing interest | 1 year 3 months | 1 year 3 months | 1 year 3 months |
Loans considered to be defaulted if borrower has failed to make payment for a period or more than the period | 2 months 29 days | 2 months 29 days | |
Loans held for sale | $ 56,779 | $ 56,779 | $ 35,869 |
Non Accrual [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Loans held for sale | $ 8,100 | $ 8,100 | $ 8,100 |
LOAN PORTFOLIO - Impaired loans
LOAN PORTFOLIO - Impaired loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable Impaired [Line Items] | ||||||||
Recorded Investment with no Related Allowance | $ 139,083 | $ 139,083 | $ 192,165 | |||||
Unpaid Principal Balance with no Related Allowance | 176,513 | 176,513 | 217,897 | |||||
Average Recorded Investment No Related Allowance | 150,234 | 196,175 | ||||||
Interest Income with no Related Allowance Accrual Basis | 376 | 1,058 | ||||||
Interest Income with No Related Allowance Cash Basis | 247 | 1,185 | ||||||
Recorded Investment with Related Allowance | 773,771 | 773,771 | 614,344 | |||||
Unpaid Principal Balance with Related Allowance | 877,001 | 877,001 | 699,270 | |||||
Related Allowance | 72,682 | $ 51,859 | 72,682 | $ 51,859 | 52,581 | $ 86,372 | $ 49,918 | $ 55,205 |
Average Recorded Investment With Related Allowance | 799,957 | 629,855 | ||||||
Interest Income with Related Allowance Accrual Basis | 6,051 | 17,793 | ||||||
Interest Income with Realted Allowance Cash Basis | 514 | 1,641 | ||||||
Recorded Investment | 912,854 | 842,713 | 912,854 | 842,713 | 806,509 | $ 953,774 | $ 824,816 | $ 945,407 |
Unpaid Principal Balance | 1,053,514 | 1,053,514 | 917,167 | |||||
Average Recorded Investments | 950,191 | 826,030 | ||||||
Interest Income on Impaired Loans Accrual Basis | 6,427 | 6,900 | 18,851 | 19,800 | ||||
Interest Income on Impaired Loans Cash Basis | 761 | 900 | 2,826 | 5,000 | ||||
Fhava Guaranteed Loans [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Recorded Investment with no Related Allowance | 0 | 0 | 0 | |||||
Unpaid Principal Balance with no Related Allowance | 0 | 0 | 0 | |||||
Average Recorded Investment No Related Allowance | 0 | 0 | ||||||
Interest Income with no Related Allowance Accrual Basis | 0 | 0 | ||||||
Interest Income with No Related Allowance Cash Basis | 0 | 0 | ||||||
Recorded Investment with Related Allowance | 0 | 0 | 0 | |||||
Unpaid Principal Balance with Related Allowance | 0 | 0 | 0 | |||||
Related Allowance | 0 | 0 | 0 | |||||
Average Recorded Investment With Related Allowance | 0 | 0 | ||||||
Interest Income with Related Allowance Accrual Basis | 0 | 0 | ||||||
Interest Income with Realted Allowance Cash Basis | 0 | 0 | ||||||
Recorded Investment | 0 | 0 | 0 | |||||
Unpaid Principal Balance | 0 | 0 | 0 | |||||
Average Recorded Investments | 0 | 0 | ||||||
Interest Income on Impaired Loans Accrual Basis | 0 | 0 | ||||||
Interest Income on Impaired Loans Cash Basis | 0 | 0 | ||||||
Other Residential Mortgage Loans [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Recorded Investment with no Related Allowance | 64,198 | 64,198 | 65,495 | |||||
Unpaid Principal Balance with no Related Allowance | 78,361 | 78,361 | 74,146 | |||||
Average Recorded Investment No Related Allowance | 67,024 | 67,282 | ||||||
Interest Income with no Related Allowance Accrual Basis | 139 | 376 | ||||||
Interest Income with No Related Allowance Cash Basis | 103 | 496 | ||||||
Recorded Investment with Related Allowance | 379,841 | 379,841 | 395,173 | |||||
Unpaid Principal Balance with Related Allowance | 428,395 | 428,395 | 440,947 | |||||
Related Allowance | 9,667 | 9,667 | 21,787 | |||||
Average Recorded Investment With Related Allowance | 385,052 | 398,790 | ||||||
Interest Income with Related Allowance Accrual Basis | 4,396 | 13,160 | ||||||
Interest Income with Realted Allowance Cash Basis | 375 | 1,192 | ||||||
Recorded Investment | 444,039 | 444,039 | 460,668 | |||||
Unpaid Principal Balance | 506,756 | 506,756 | 515,093 | |||||
Average Recorded Investments | 452,076 | 466,072 | ||||||
Interest Income on Impaired Loans Accrual Basis | 4,535 | 13,536 | ||||||
Interest Income on Impaired Loans Cash Basis | 478 | 1,688 | ||||||
Commercial Mortgage Loans [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Recorded Investment with no Related Allowance | 51,974 | 51,974 | 54,048 | |||||
Unpaid Principal Balance with no Related Allowance | 63,759 | 63,759 | 66,448 | |||||
Average Recorded Investment No Related Allowance | 56,826 | 54,967 | ||||||
Interest Income with no Related Allowance Accrual Basis | 206 | 599 | ||||||
Interest Income with No Related Allowance Cash Basis | 119 | 609 | ||||||
Recorded Investment with Related Allowance | 146,526 | 146,526 | 27,479 | |||||
Unpaid Principal Balance with Related Allowance | 166,066 | 166,066 | 40,634 | |||||
Related Allowance | 25,907 | 25,907 | 3,073 | |||||
Average Recorded Investment With Related Allowance | 152,753 | 30,518 | ||||||
Interest Income with Related Allowance Accrual Basis | 136 | 339 | ||||||
Interest Income with Realted Allowance Cash Basis | 57 | 179 | ||||||
Recorded Investment | 198,500 | 198,500 | 81,527 | |||||
Unpaid Principal Balance | 229,825 | 229,825 | 107,082 | |||||
Average Recorded Investments | 209,579 | 85,485 | ||||||
Interest Income on Impaired Loans Accrual Basis | 342 | 938 | ||||||
Interest Income on Impaired Loans Cash Basis | 176 | 788 | ||||||
Commercial And Industrial Loan [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Recorded Investment with no Related Allowance | 17,069 | 17,069 | 27,492 | |||||
Unpaid Principal Balance with no Related Allowance | 26,672 | 26,672 | 29,957 | |||||
Average Recorded Investment No Related Allowance | 20,407 | 28,326 | ||||||
Interest Income with no Related Allowance Accrual Basis | 13 | 13 | ||||||
Interest Income with No Related Allowance Cash Basis | 0 | 0 | ||||||
Recorded Investment with Related Allowance | 161,105 | 161,105 | 143,214 | |||||
Unpaid Principal Balance with Related Allowance | 189,683 | 189,683 | 164,050 | |||||
Related Allowance | 28,668 | 28,668 | 18,096 | |||||
Average Recorded Investment With Related Allowance | 171,575 | 148,547 | ||||||
Interest Income with Related Allowance Accrual Basis | 618 | 1,708 | ||||||
Interest Income with Realted Allowance Cash Basis | 49 | 203 | ||||||
Recorded Investment | 178,174 | 178,174 | 170,706 | |||||
Unpaid Principal Balance | 216,355 | 216,355 | 194,007 | |||||
Average Recorded Investments | 191,982 | 176,873 | ||||||
Interest Income on Impaired Loans Accrual Basis | 631 | 1,721 | ||||||
Interest Income on Impaired Loans Cash Basis | 49 | 203 | ||||||
Construction Loans [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Related Allowance | 3,004 | 2,128 | 3,004 | 2,128 | ||||
Recorded Investment | 47,707 | $ 66,123 | 47,707 | $ 66,123 | ||||
Consumer Auto Loans [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Recorded Investment with no Related Allowance | 888 | 888 | 0 | |||||
Unpaid Principal Balance with no Related Allowance | 888 | 888 | 0 | |||||
Average Recorded Investment No Related Allowance | 901 | 0 | ||||||
Interest Income with no Related Allowance Accrual Basis | 6 | 10 | ||||||
Interest Income with No Related Allowance Cash Basis | 0 | 0 | ||||||
Recorded Investment with Related Allowance | 24,135 | 24,135 | 21,581 | |||||
Unpaid Principal Balance with Related Allowance | 24,135 | 24,135 | 21,581 | |||||
Related Allowance | 3,674 | 3,674 | 6,653 | |||||
Average Recorded Investment With Related Allowance | 25,913 | 23,531 | ||||||
Interest Income with Related Allowance Accrual Basis | 476 | 1,379 | ||||||
Interest Income with Realted Allowance Cash Basis | 0 | 0 | ||||||
Recorded Investment | 25,023 | 25,023 | 21,581 | |||||
Unpaid Principal Balance | 25,023 | 25,023 | 21,581 | |||||
Average Recorded Investments | 26,814 | 23,531 | ||||||
Interest Income on Impaired Loans Accrual Basis | 482 | 1,389 | ||||||
Interest Income on Impaired Loans Cash Basis | 0 | 0 | ||||||
Finance Leases [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Recorded Investment with no Related Allowance | 168 | 168 | 0 | |||||
Unpaid Principal Balance with no Related Allowance | 168 | 168 | 0 | |||||
Average Recorded Investment No Related Allowance | 168 | 0 | ||||||
Interest Income with no Related Allowance Accrual Basis | 1 | 1 | ||||||
Interest Income with No Related Allowance Cash Basis | 0 | 0 | ||||||
Recorded Investment with Related Allowance | 2,408 | 2,408 | 2,077 | |||||
Unpaid Principal Balance with Related Allowance | 2,408 | 2,408 | 2,077 | |||||
Related Allowance | 62 | 62 | 86 | |||||
Average Recorded Investment With Related Allowance | 2,493 | 2,484 | ||||||
Interest Income with Related Allowance Accrual Basis | 48 | 150 | ||||||
Interest Income with Realted Allowance Cash Basis | 0 | 0 | ||||||
Recorded Investment | 2,576 | 2,576 | 2,077 | |||||
Unpaid Principal Balance | 2,576 | 2,576 | 2,077 | |||||
Average Recorded Investments | 2,661 | 2,484 | ||||||
Interest Income on Impaired Loans Accrual Basis | 49 | 151 | ||||||
Interest Income on Impaired Loans Cash Basis | 0 | 0 | ||||||
Other Consumer Loans [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Recorded Investment with no Related Allowance | 3,770 | 3,770 | 2,618 | |||||
Unpaid Principal Balance with no Related Allowance | 5,045 | 5,045 | 4,300 | |||||
Average Recorded Investment No Related Allowance | 3,892 | 2,766 | ||||||
Interest Income with no Related Allowance Accrual Basis | 11 | 59 | ||||||
Interest Income with No Related Allowance Cash Basis | 25 | 80 | ||||||
Recorded Investment with Related Allowance | 13,065 | 13,065 | 13,816 | |||||
Unpaid Principal Balance with Related Allowance | 13,448 | 13,448 | 14,043 | |||||
Related Allowance | 1,700 | 1,700 | 1,684 | |||||
Average Recorded Investment With Related Allowance | 13,868 | 14,782 | ||||||
Interest Income with Related Allowance Accrual Basis | 356 | 1,005 | ||||||
Interest Income with Realted Allowance Cash Basis | 15 | 32 | ||||||
Recorded Investment | 16,835 | 16,835 | 16,434 | |||||
Unpaid Principal Balance | 18,493 | 18,493 | 18,343 | |||||
Average Recorded Investments | 17,760 | 17,548 | ||||||
Interest Income on Impaired Loans Accrual Basis | 367 | 1,064 | ||||||
Interest Income on Impaired Loans Cash Basis | 40 | 112 | ||||||
Commercial Construction [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Recorded Investment with no Related Allowance | 0 | 0 | 39,466 | |||||
Unpaid Principal Balance with no Related Allowance | 0 | 0 | 40,000 | |||||
Average Recorded Investment No Related Allowance | 0 | 39,736 | ||||||
Interest Income with no Related Allowance Accrual Basis | 0 | 0 | ||||||
Interest Income with No Related Allowance Cash Basis | 0 | 0 | ||||||
Recorded Investment with Related Allowance | 36,953 | 36,953 | 0 | |||||
Unpaid Principal Balance with Related Allowance | 38,781 | 38,781 | 0 | |||||
Related Allowance | 1,977 | 1,977 | 0 | |||||
Average Recorded Investment With Related Allowance | 38,516 | 0 | ||||||
Interest Income with Related Allowance Accrual Basis | 0 | 0 | ||||||
Interest Income with Realted Allowance Cash Basis | 0 | 0 | ||||||
Recorded Investment | 36,953 | 36,953 | 39,466 | |||||
Unpaid Principal Balance | 38,781 | 38,781 | 40,000 | |||||
Average Recorded Investments | 38,516 | 39,736 | ||||||
Interest Income on Impaired Loans Accrual Basis | 0 | 0 | ||||||
Interest Income on Impaired Loans Cash Basis | 0 | 0 | ||||||
Residential Construction [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Recorded Investment with no Related Allowance | 956 | 956 | 3,046 | |||||
Unpaid Principal Balance with no Related Allowance | 1,531 | 1,531 | 3,046 | |||||
Average Recorded Investment No Related Allowance | 956 | 3,098 | ||||||
Interest Income with no Related Allowance Accrual Basis | 0 | 0 | ||||||
Interest Income with No Related Allowance Cash Basis | 0 | 0 | ||||||
Recorded Investment with Related Allowance | 392 | 392 | 1,426 | |||||
Unpaid Principal Balance with Related Allowance | 551 | 551 | 2,180 | |||||
Related Allowance | 124 | 124 | 142 | |||||
Average Recorded Investment With Related Allowance | 392 | 1,476 | ||||||
Interest Income with Related Allowance Accrual Basis | 0 | 0 | ||||||
Interest Income with Realted Allowance Cash Basis | 0 | 0 | ||||||
Recorded Investment | 1,348 | 1,348 | 4,472 | |||||
Unpaid Principal Balance | 2,082 | 2,082 | 5,226 | |||||
Average Recorded Investments | 1,348 | 4,574 | ||||||
Interest Income on Impaired Loans Accrual Basis | 0 | 0 | ||||||
Interest Income on Impaired Loans Cash Basis | 0 | 0 | ||||||
Land Construction [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Recorded Investment with no Related Allowance | 60 | 60 | 0 | |||||
Unpaid Principal Balance with no Related Allowance | 89 | 89 | 0 | |||||
Average Recorded Investment No Related Allowance | 60 | 0 | ||||||
Interest Income with no Related Allowance Accrual Basis | 0 | 0 | ||||||
Interest Income with No Related Allowance Cash Basis | 0 | 0 | ||||||
Recorded Investment with Related Allowance | 9,346 | 9,346 | 9,578 | |||||
Unpaid Principal Balance with Related Allowance | 13,534 | 13,534 | 13,758 | |||||
Related Allowance | 903 | 903 | 1,060 | |||||
Average Recorded Investment With Related Allowance | 9,395 | 9,727 | ||||||
Interest Income with Related Allowance Accrual Basis | 21 | 52 | ||||||
Interest Income with Realted Allowance Cash Basis | 18 | 35 | ||||||
Recorded Investment | 9,406 | 9,406 | 9,578 | |||||
Unpaid Principal Balance | 13,623 | 13,623 | 13,758 | |||||
Average Recorded Investments | 9,455 | $ 9,727 | ||||||
Interest Income on Impaired Loans Accrual Basis | 21 | 52 | ||||||
Interest Income on Impaired Loans Cash Basis | $ 18 | $ 35 |
LOAN PORTFOLIO - Additional Inf
LOAN PORTFOLIO - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | May 31, 2016 | Dec. 31, 2014 | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Interest Income Impaired Loans | $ 7,800 | $ 24,800 | |||||||||||
Interest Income on Impaired Loans Accrual Basis | $ 6,427 | 6,900 | $ 18,851 | 19,800 | |||||||||
Contractually outstanding principal and interest at acquisition | 210,600 | 210,600 | $ 218,100 | ||||||||||
Financing Receivable Significant Purchases | 65,200 | ||||||||||||
Securitization of mortgage loans into mortgage backed securities | 238,600 | ||||||||||||
Total gross loans held for investment portfolio | 8,863,654 | 9,140,462 | 8,863,654 | 9,140,462 | 9,112,382 | ||||||||
Total TDR loans | 656,318 | $ 670,991 | 681,963 | $ 634,761 | 656,318 | 681,963 | 661,591 | $ 694,453 | |||||
Outstanding unfunded commitments on TDR loans | 5,700 | 5,700 | |||||||||||
Provsion of PCI Loans | 0 | 0 | 2,895 | 3,163 | |||||||||
Classified and non-performing loans sold | 147,500 | ||||||||||||
Other real estate owned sold | 2,900 | ||||||||||||
Sale price of bulk sale | 87,300 | ||||||||||||
Reserves allocated to bulk sale | 15,300 | ||||||||||||
Total charge-offs bulk sale | 61,400 | ||||||||||||
Porfessional fees | 900 | ||||||||||||
Pre-tax loss | 48,700 | ||||||||||||
Loans held for sale | 56,779 | 56,779 | 35,869 | ||||||||||
Proceeds From Sale Of Loans Held For Investment | 20,186 | 107,702 | |||||||||||
Puerto Rico Housing Finance Authority Restricted Net Position | 77,400 | ||||||||||||
Puerto Rico Housing Finance Authority Covered Loans | 552,000 | ||||||||||||
Threshold Mortgage Loans Principal Amount Puerto Rico Housing Financing Authority | $ 75,000 | 75,000 | |||||||||||
Principal Payment Defaulted Government | $ 367,000 | ||||||||||||
Reserve Coverage Ratio | 16.00% | ||||||||||||
Puerto Rico Government General Obligations Moratorium On Payment | 780,000 | ||||||||||||
Puerto Rico Government Development Bank Interest Payment Default | $ 28,000 | ||||||||||||
Interest Paid | 104,031 | 70,016 | |||||||||||
Financing Receivable Allowance For Credit Losses Write Offs Impaired Loans | [1] | 30,426 | 7,498 | 50,027 | 90,026 | ||||||||
Impaired Financing Receivable Related Allowance | 72,682 | 86,372 | 51,859 | 49,918 | 72,682 | 51,859 | 52,581 | $ 55,205 | |||||
Mortgage Loans In Process Of Foreclosure Amount | 135,000 | $ 135,000 | |||||||||||
Mortgage Loans Foreclosure Delinquency Threshold | 3 months 28 days | ||||||||||||
Puerto Rico Tourism Development Fund [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Outstanding of credit facilities granted | 128,000 | $ 128,000 | 129,400 | ||||||||||
Financing Receivable Commercial Governments Book Value | 112,800 | 112,800 | |||||||||||
Financing Receivable Commercial Governments Collections | 600 | 5,300 | |||||||||||
Proceeds From Interest Received | $ 1,600 | ||||||||||||
Financing Receivable Allowance For Credit Losses Write Offs Impaired Loans | $ 13,700 | ||||||||||||
Impaired Financing Receivable Related Allowance | $ 12,800 | ||||||||||||
Unpaid Principal Balance Percentage | 76.00% | 76.00% | |||||||||||
GNMA | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Loans repurchased | $ 20,900 | 10,600 | |||||||||||
FNMA and FHLMC | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Loans repurchased | 700 | 1,300 | |||||||||||
Residential Mortgage [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Total gross loans held for investment portfolio | $ 3,299,942 | 3,330,089 | 3,299,942 | 3,330,089 | |||||||||
Impaired Financing Receivable Related Allowance | 9,667 | 18,705 | 9,667 | 18,705 | |||||||||
Government Guaranteed Loans [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Financing Receivable Significant Sales | 108,500 | ||||||||||||
Total TDR loans | 67,900 | 67,900 | 77,600 | ||||||||||
Government Guaranteed Residential Mortgage Loans Indirect Exposure | 121,400 | 121,400 | |||||||||||
Loans in trial [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Total TDR loans | 5,600 | 5,600 | |||||||||||
Non Accrual [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Total TDR loans | 240,399 | [2] | 240,399 | [2] | 246,683 | [3] | |||||||
Troubled Debt Restructurings [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Allowance For Loan And Lease Losses Write Offs Net Loans Sold | 45,300 | ||||||||||||
Loans Split [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Total TDR loans | 38,004 | 40,632 | 38,004 | 40,632 | |||||||||
Financing receivable loans restructured recorded investment accruals | 37,900 | ||||||||||||
Non Fha Va Residential Mortgage Loans [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Total TDR loans | 378,721 | 378,721 | 382,672 | ||||||||||
Commercial And Industrial Loan [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Interest Income on Impaired Loans Accrual Basis | 631 | 1,721 | |||||||||||
Total TDR loans | 150,890 | 150,890 | 150,254 | ||||||||||
Classified and non-performing loans sold | 45,800 | ||||||||||||
Impaired Financing Receivable Related Allowance | 28,668 | 28,668 | 18,096 | ||||||||||
Commercial Mortgage Loans [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Interest Income on Impaired Loans Accrual Basis | 342 | 938 | |||||||||||
Total TDR loans | 43,972 | 43,972 | 44,498 | ||||||||||
Classified and non-performing loans sold | 90,700 | ||||||||||||
Proceeds From Sale Of Loans Held For Investment | 20,200 | 20,000 | |||||||||||
Impaired Financing Receivable Related Allowance | 25,907 | 25,907 | 3,073 | ||||||||||
Construction Loans [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Total gross loans held for investment portfolio | 124,298 | 163,956 | 124,298 | 163,956 | |||||||||
Total TDR loans | 40,200 | 40,200 | |||||||||||
Classified and non-performing loans sold | $ 11,000 | ||||||||||||
Impaired Financing Receivable Related Allowance | 3,004 | 2,128 | 3,004 | 2,128 | |||||||||
Consumer Loan [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Total gross loans held for investment portfolio | 1,727,389 | 1,861,555 | 1,727,389 | 1,861,555 | |||||||||
Total TDR loans | 42,500 | 42,500 | |||||||||||
Impaired Financing Receivable Related Allowance | 5,436 | $ 8,600 | 5,436 | 8,600 | |||||||||
Commercial Construction [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Interest Income on Impaired Loans Accrual Basis | 0 | 0 | |||||||||||
Total TDR loans | 36,953 | 36,953 | 39,466 | ||||||||||
Impaired Financing Receivable Related Allowance | 1,977 | 1,977 | 0 | ||||||||||
Residential Construction [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Interest Income on Impaired Loans Accrual Basis | 0 | 0 | |||||||||||
Total TDR loans | 357 | 357 | 3,482 | ||||||||||
Impaired Financing Receivable Related Allowance | 124 | 124 | 142 | ||||||||||
Land Construction [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Interest Income on Impaired Loans Accrual Basis | 21 | 52 | |||||||||||
Total TDR loans | 2,880 | 2,880 | 2,766 | ||||||||||
Impaired Financing Receivable Related Allowance | 903 | $ 903 | 1,060 | ||||||||||
P R | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Credit risk concentration | 78.00% | ||||||||||||
Outstanding of credit facilities granted | 134,000 | $ 134,000 | 153,200 | ||||||||||
Financing Receivable Commercial Governments Book Value | 126,200 | 126,200 | |||||||||||
P R | Puerto Rico Government and Political Subdivisions [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Outstanding of credit facilities granted | 35,700 | 35,700 | |||||||||||
P R | Public Corporations [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Outstanding of credit facilities granted | 91,400 | 91,400 | |||||||||||
Financing Receivable Commercial Governments Book Value | 83,700 | 83,700 | |||||||||||
P R | Government [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Outstanding of credit facilities granted | 6,900 | 6,900 | |||||||||||
P R | Puerto Rico Electric PowerAuthority [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Outstanding of credit facilities granted | 74,600 | 74,600 | |||||||||||
Financing Receivable Commercial Governments Book Value | 66,900 | $ 66,900 | |||||||||||
V I | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Credit risk concentration | 7.00% | ||||||||||||
Outstanding of credit facilities granted | $ 65,600 | $ 65,600 | $ 126,200 | ||||||||||
U S | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Credit risk concentration | 15.00% | ||||||||||||
Impaired Financing Receivable [Member] | |||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||
Allowance For Loan And Lease Losses Write Offs Net Loans Sold | $ 63,900 | ||||||||||||
[1] | For the nine-month period ended September 30, 2015, includes $63.9 million of charge-offs related to a bulk sale of assets completed in the second quarter of 2015, mostly comprised of non-performing and adversely classified commercial loans, as further discussed below. | ||||||||||||
[2] | Included in non-accrual loans are $121.3 million in loans that are performing under the terms of the 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 are deemed fully collectible. | ||||||||||||
[3] | Included in non-accrual loans are $118.2 million in loans that are performing under the terms of the restructuring agreement but are reported in non-accrual status until the restructured loans meet the criteria of sustained payment performance under the revised terms for reinstatement to accrual status and there is no doubt about full collectability. |
LOAN PORTFOLIO - Activity for I
LOAN PORTFOLIO - Activity for Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Impaired Loans: | |||||
Balance at beginning of period | $ 953,774 | $ 824,816 | $ 806,509 | $ 945,407 | |
Loans determined impaired during the period | 26,613 | 37,528 | 261,544 | 135,350 | |
Charge-offs | [1] | (30,426) | (7,498) | (50,027) | (90,026) |
Loans sold, net charge-offs | 0 | 0 | 0 | (67,836) | |
Increases to impaired loans (disbursements) | 1,091 | 408 | 2,852 | 2,524 | |
Foreclosures | (11,856) | (12,858) | (28,466) | (33,044) | |
Loans no longer considered impaired | (2,674) | (25,877) | (27,560) | (39,062) | |
Paid in full or partial payments | (23,668) | (13,811) | (51,998) | (50,605) | |
Transfer Of Impaired Loans Held For Sale To Portfolio Loans | [2] | 0 | 40,005 | 0 | 40,005 |
Balance at end of period | $ 912,854 | $ 842,713 | $ 912,854 | $ 842,713 | |
[1] | For the nine-month period ended September 30, 2015, includes $63.9 million of charge-offs related to a bulk sale of assets completed in the second quarter of 2015, mostly comprised of non-performing and adversely classified commercial loans, as further discussed below. | ||||
[2] | During the third quarter of 2015, upon the signing of a new agreement with the borrower, the Corporation changed its intent to sell a $40.0 million construction loan in the Virgin Islands. Accordingly, the loan was transferred back from held for sale to held for investment. |
LOAN PORTFOLIO - Activity for S
LOAN PORTFOLIO - Activity for Specific Reserve (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Specific Reserve: | ||||
Balance at beginning of period | $ 86,372 | $ 49,918 | $ 52,581 | $ 55,205 |
Provision for loan losses | 16,619 | 9,439 | 70,011 | 81,796 |
Financing Receivable Allowance For Credit Losses Net Write Offs Impaired Loans | (30,309) | (7,498) | (49,910) | (85,142) |
Balance at end of period | $ 72,682 | $ 51,859 | $ 72,682 | $ 51,859 |
LOAN PORTFOLIO- Carrying Value
LOAN PORTFOLIO- Carrying Value of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | ||
Financing Receivable Impaired [Line Items] | ||||||||
Purchased Credit Impaired Loans | $ 168,141 | $ 169,690 | $ 173,913 | $ 176,085 | $ 178,494 | $ 102,604 | ||
Allowance for loan losses Purchased Credit Impaired | (6,857) | $ (6,857) | (3,962) | (3,163) | $ (3,163) | $ 0 | ||
Purchased Credit Impaired Loans, Net | 161,284 | 169,951 | $ 172,922 | |||||
Residential Mortgage Loans [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Purchased Credit Impaired Loans | 165,014 | [1] | 170,766 | [2] | ||||
Commercial Mortgage Loans [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Purchased Credit Impaired Loans | $ 3,127 | [1] | $ 3,147 | [2] | ||||
[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 September 30, 2016 amounted to $8.7 million, $144.3 million, $7.6 million, $0.7 million and $0.3 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, 2015 amounted to $11.0 million, $162.9 million, $38.6 million, $5.7 million and $0.8 million, respectively. |
LOAN PORTFOLIO- Corporation's A
LOAN PORTFOLIO- Corporation's Aging of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | ||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | $ 920,393 | $ 841,188 | |||
Financing Receivable, Current | 7,775,120 | 8,097,281 | |||
Loans held for investment | 8,863,654 | 9,112,382 | $ 9,140,462 | ||
90 days past due and still accruing | 110,538 | [1] | 139,987 | [2] | |
Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 118,315 | 164,889 | |||
Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 124,828 | 93,539 | |||
Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 677,250 | [3] | 582,760 | [4] | |
Purchased Credit Impaired Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 39,952 | 39,304 | |||
Financing Receivable, Current | 128,189 | 134,609 | |||
Loans held for investment | 168,141 | 173,913 | |||
Purchased Credit Impaired Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 12,048 | 16,094 | |||
Purchased Credit Impaired Loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | 0 | |||
Purchased Credit Impaired Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 27,904 | 23,210 | |||
Residential Mortgage [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for investment | 3,299,942 | 3,344,719 | |||
Residential Mortgage [Member] | Purchased Credit Impaired Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 38,669 | [5] | 38,312 | [6] | |
Financing Receivable, Current | 126,345 | [5] | 132,454 | [6] | |
Loans held for investment | 165,014 | [5] | 170,766 | [6] | |
30-59 Days past due Mortgages | 22,300 | 23,600 | |||
Residential Mortgage [Member] | Purchased Credit Impaired Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 12,048 | [5] | 16,094 | [6] | |
Residential Mortgage [Member] | Purchased Credit Impaired Loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | [5] | 0 | [6] | |
Residential Mortgage [Member] | Purchased Credit Impaired Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 26,621 | [5] | 22,218 | [6] | |
Commercial Mortgage Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 199,676 | [7] | 88,534 | [8] | |
Financing Receivable, Current | 1,342,211 | [7] | 1,446,125 | [8] | |
Loans held for investment | 1,545,014 | [7] | 1,537,806 | [8] | |
90 days past due and still accruing | 4,791 | [1],[7] | 12,472 | [2],[8] | |
30-59 Days past due Mortgages | 7,600 | 38,600 | |||
Commercial Mortgage Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 3,436 | [7] | 24,729 | [8] | |
Commercial Mortgage Loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | [7] | 0 | [8] | |
Commercial Mortgage Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 196,240 | [3],[7] | 63,805 | [4],[8] | |
Commercial Mortgage Loans [Member] | Purchased Credit Impaired Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 1,283 | [5] | 992 | [6] | |
Financing Receivable, Current | 1,844 | [5] | 2,155 | [6] | |
Loans held for investment | 3,127 | [5] | 3,147 | [6] | |
30-59 Days past due Mortgages | 400 | ||||
Commercial Mortgage Loans [Member] | Purchased Credit Impaired Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | [5] | 0 | [6] | |
Commercial Mortgage Loans [Member] | Purchased Credit Impaired Loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | [5] | 0 | [6] | |
Commercial Mortgage Loans [Member] | Purchased Credit Impaired Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | $ 1,283 | [5] | $ 992 | [6] | |
[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 $29.6 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent and are no longer accruing interest as of September 30, 2016. | ||||
[2] | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as past-due loans 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. These balances include $37.3 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent and are no longer accruing interest as of December 31, 2015. | ||||
[3] | Includes non-performing loans and accruing loans that are contractually delinquent 90 days or more (i.e., FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days. | ||||
[4] | Includes non-performing loans and accruing loans that are contractually delinquent 90 days or more (i.e. FHA/VA guaranteed loans and credit cards). Credit card loans continue to accrue finance charges and fees until charged-off at 180 days. | ||||
[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 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 September 30, 2016 amounted to $22.3 million and $0.4 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 and commercial mortgage loans are considered past due when the borrower is in arrears two or more monthly payments. PCI residential mortgage loans past due 30-59 days as of December 31, 2015 amounted to $23.6 million. | ||||
[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, 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 September 30, 2016 amounted to $8.7 million, $144.3 million, $7.6 million, $0.7 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, 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, 2015 amounted to $11.0 million, $162.9 million, $38.6 million, $5.7 million and $0.8 million, respectively. |
LOAN PORTFOLIO - Accretable Yie
LOAN PORTFOLIO - Accretable Yield Related to Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accretable Yield [Line Items] | ||||
Accretable yield at acquisition | $ 122,179 | $ 124,288 | $ 118,385 | $ 82,460 |
Additions | 0 | 0 | 0 | 38,319 |
Reclassification to nonaccretable | 0 | 1,348 | 9,610 | 10,141 |
Accretion recognized in earnings | (2,875) | (3,411) | (8,691) | (8,695) |
Accretable yield at the end of the period | $ 119,304 | $ 122,225 | $ 119,304 | $ 122,225 |
LOAN PORTFOLIO -Changes in Carr
LOAN PORTFOLIO -Changes in Carrying Amount Of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | ||
Financing Receivable Impaired [Line Items] | |||||||||
Beggining balance: purchased credit-impaired loans | $ 169,690 | $ 178,494 | $ 173,913 | $ 102,604 | |||||
Purchased Credit Impaired Loans Aquired | [1] | 0 | 0 | ||||||
Accretion | 2,875 | 3,411 | 8,691 | 8,695 | |||||
Purchased Credit Impaired Loans Foreclosures | (240) | (157) | (1,327) | (157) | |||||
Sop Collections | (4,184) | (5,663) | (13,136) | (14,946) | |||||
Ending balance: purchased credit-impaired loans | 168,141 | 176,085 | 168,141 | 176,085 | |||||
Allowance for loan losses Purchased Credit Impaired | (6,857) | (3,163) | (6,857) | (3,163) | $ (6,857) | $ (3,962) | $ (3,163) | $ 0 | |
Ending balance: purchased credit-impaired loans, net | 161,284 | $ 172,922 | $ 161,284 | 172,922 | |||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Member] | |||||||||
Financing Receivable Impaired [Line Items] | |||||||||
Purchased Credit Impaired Loans Aquired | [1] | $ 0 | $ 79,889 | ||||||
[1] | For the nine-month period ended September 30, 2015, additions represents the estimated fair value of PCI loans acquired from Doral Bank at the date of acquisition. |
LOAN PORTFOLIO -Changes in the
LOAN PORTFOLIO -Changes in the allowance for loan losses related to purchased credit impaired doans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Abstract] | ||||
Allowance for loan losses Purchased Credit Impaired | $ 6,857 | $ 3,163 | $ 3,962 | $ 0 |
Provsion of PCI Loans | 0 | 0 | 2,895 | 3,163 |
Allowance for loan losses Purchased Credit Impaired | $ 6,857 | $ 3,163 | $ 6,857 | $ 3,163 |
LOAN PORTFOLIO - Selected Infor
LOAN PORTFOLIO - Selected Information on TDRs Includes Recorded Investment by Loan Class and Modification Type (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | ||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | $ 656,318 | $ 670,991 | $ 661,591 | $ 681,963 | $ 634,761 | $ 694,453 | ||
Interest Rate Below Market [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 38,408 | 35,697 | ||||||
Maturity of Term Extension [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 83,450 | 87,159 | ||||||
Combination of reduction in interest rate and extension of maturity [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 364,011 | 380,714 | ||||||
Forgiveness of principal and/or interest [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 39,890 | 42,820 | ||||||
Other [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 130,559 | [1] | 115,201 | [2] | ||||
Non Fha Va Residential Mortgage Loans [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 378,721 | 382,672 | ||||||
Non Fha Va Residential Mortgage Loans [Member] | Interest Rate Below Market [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 29,934 | 29,066 | ||||||
Non Fha Va Residential Mortgage Loans [Member] | Maturity of Term Extension [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 8,172 | 6,027 | ||||||
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 | 283,550 | 297,310 | ||||||
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 | 57,065 | [1] | 50,269 | [2] | ||||
Commercial Mortgage Loans [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 43,972 | 44,498 | ||||||
Commercial Mortgage Loans [Member] | Interest Rate Below Market [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 6,092 | 4,379 | ||||||
Commercial Mortgage Loans [Member] | Maturity of Term Extension [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 1,219 | 1,244 | ||||||
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 | 26,053 | 26,109 | ||||||
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 | 10,608 | [1] | 12,766 | [2] | ||||
Commercial And Industrial Loan [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 150,890 | 150,254 | ||||||
Commercial And Industrial Loan [Member] | Interest Rate Below Market [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 2,153 | 2,163 | ||||||
Commercial And Industrial Loan [Member] | Maturity of Term Extension [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 69,244 | 75,104 | ||||||
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 | 25,263 | 27,214 | ||||||
Commercial And Industrial Loan [Member] | Forgiveness of principal and/or interest [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 2,637 | 3,027 | ||||||
Commercial And Industrial Loan [Member] | Other [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 51,593 | [1] | 42,746 | [2] | ||||
Construction Loans [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 40,200 | |||||||
Consumer Auto Loans [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 25,023 | 21,582 | ||||||
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 | 1,921 | 2,330 | ||||||
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 | 14,680 | 12,388 | ||||||
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 | 8,422 | [1] | 6,864 | [2] | ||||
Finance Leases [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 2,576 | 2,077 | ||||||
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 | 424 | 621 | ||||||
Finance Leases [Member] | Combination of reduction in interest rate and extension of maturity [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 2,152 | 1,456 | ||||||
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 | [1] | 0 | [2] | ||||
Other Consumer Loans [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 14,946 | 14,794 | ||||||
Other Consumer Loans [Member] | Interest Rate Below Market [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 229 | 89 | ||||||
Other Consumer Loans [Member] | Maturity of Term Extension [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 2,185 | 1,604 | ||||||
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 | 10,120 | 11,026 | ||||||
Other Consumer Loans [Member] | Forgiveness of principal and/or interest [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 300 | 327 | ||||||
Other Consumer Loans [Member] | Other [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 2,112 | [1] | 1,748 | [2] | ||||
Commercial Construction [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 36,953 | 39,466 | ||||||
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 | 36,953 | 39,466 | ||||||
Commercial Construction [Member] | Other [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 0 | [1] | 0 | [2] | ||||
Residential Construction [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 357 | 3,482 | ||||||
Residential Construction [Member] | Interest Rate Below Market [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||||
Residential Construction [Member] | Maturity of Term Extension [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||||
Residential Construction [Member] | Combination of reduction in interest rate and extension of maturity [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 3,046 | ||||||
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 | 357 | [1] | 436 | [2] | ||||
Land Construction [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 2,880 | 2,766 | ||||||
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 | 285 | 229 | ||||||
Land Construction [Member] | Combination of reduction in interest rate and extension of maturity [Member] | ||||||||
Financing Receivable Impaired [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 2,193 | 2,165 | ||||||
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 | $ 402 | [1] | $ 372 | [2] | ||||
[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] | 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 - Corporation'90
LOAN PORTFOLIO - Corporation's TDR Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Schedule Of Financing Receivables [Line Items] | |||||
Beginning Balance of TDRs | $ 670,991 | $ 634,761 | $ 661,591 | $ 694,453 | |
New TDRs | 15,596 | 30,044 | 66,075 | 95,840 | |
Increases to existing TDRs (disbursements) | 517 | 309 | 1,573 | 644 | |
Charge-offs post modification | [1] | (5,445) | (5,327) | (15,899) | (58,707) |
Sales | 0 | 0 | 0 | (44,048) | |
Foreclosures | (5,567) | (6,139) | (12,967) | (16,391) | |
Removed from TDR classification | 0 | 0 | 3,031 | 0 | |
Transfer Of Trouble Debt Restructuring Loans Held For Sale To Portfolio Loans | [2] | 0 | 40,005 | 0 | 40,005 |
Paid-off and partial payments | (19,774) | (11,690) | (41,024) | (29,833) | |
Ending balance of TDRs | $ 656,318 | $ 681,963 | $ 656,318 | $ 681,963 | |
[1] | For the nine-month period ended September 30, 2015, includes $45.3 million of charge offs related to TDRs included in the bulk sale of assets completed in the second quarter of 2015. | ||||
[2] | During the third quarter of 2015, upon the signing of a new agreement with the borrower, the Corporation changed its intent to sell a $40.0 million construction loan in the Virgin Islands. Accordingly, the loan was transferred back from held for sale to held for investment and continues to be classified as a TDR and a nonperforming loan. |
LOAN PORTFOLIO - Breakdown Betw
LOAN PORTFOLIO - Breakdown Between Accrual and Nonaccrual Status of TDRs (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | ||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | $ 656,318 | $ 670,991 | $ 661,591 | $ 681,963 | $ 634,761 | $ 694,453 | ||
Non Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 240,399 | [1] | 246,683 | [2] | ||||
Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 415,919 | 414,908 | ||||||
Non Fha Va Residential Mortgage Loans [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 378,721 | 382,672 | ||||||
Non Fha Va Residential Mortgage Loans [Member] | Non Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 81,881 | [1] | 78,787 | [2] | ||||
Non Fha Va Residential Mortgage Loans [Member] | Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 296,840 | 303,885 | ||||||
Commercial Mortgage Loans [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 43,972 | 44,498 | ||||||
Commercial Mortgage Loans [Member] | Non Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 15,273 | [1] | 15,377 | [2] | ||||
Commercial Mortgage Loans [Member] | Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 28,699 | 29,121 | ||||||
Commercial And Industrial Loan [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 150,890 | 150,254 | ||||||
Commercial And Industrial Loan [Member] | Non Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 92,886 | [1] | 101,862 | [2] | ||||
Commercial And Industrial Loan [Member] | Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 58,004 | 48,392 | ||||||
Consumer Auto Loans [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 25,023 | 21,582 | ||||||
Consumer Auto Loans [Member] | Non Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 8,462 | [1] | 6,759 | [2] | ||||
Consumer Auto Loans [Member] | Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 16,561 | 14,823 | ||||||
Finance Leases [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 2,576 | 2,077 | ||||||
Finance Leases [Member] | Non Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 139 | [1] | 97 | [2] | ||||
Finance Leases [Member] | Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 2,437 | 1,980 | ||||||
Other Consumer Loans [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 14,946 | 14,794 | ||||||
Other Consumer Loans [Member] | Non Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 2,773 | [1] | 2,057 | [2] | ||||
Other Consumer Loans [Member] | Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 12,173 | 12,737 | ||||||
Commercial Construction [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 36,953 | 39,466 | ||||||
Commercial Construction [Member] | Non Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 36,953 | [1] | 39,466 | [2] | ||||
Commercial Construction [Member] | Accrual [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 | 357 | 3,482 | ||||||
Residential Construction [Member] | Non Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 357 | [1] | 436 | [2] | ||||
Residential Construction [Member] | Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 3,046 | ||||||
Land Construction [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 2,880 | 2,766 | ||||||
Land Construction [Member] | Non Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 1,675 | [1] | 1,842 | [2] | ||||
Land Construction [Member] | Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | $ 1,205 | $ 924 | ||||||
[1] | Included in non-accrual loans are $121.3 million in loans that are performing under the terms of the 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 are deemed fully collectible. | |||||||
[2] | Included in non-accrual loans are $118.2 million in loans that are performing under the terms of the restructuring agreement but are reported in non-accrual status until the restructured loans meet the criteria of sustained payment performance under the revised terms for reinstatement to accrual status and there is no doubt about full collectability. |
LOAN PORTFOLIO - Breakdown Be92
LOAN PORTFOLIO - Breakdown Between Accrual and Nonaccrual Status of TDRs (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | ||
Financing Receivable Modifications [Line Items] | ||||||||
Total TDR loans | $ 656,318 | $ 670,991 | $ 661,591 | $ 681,963 | $ 634,761 | $ 694,453 | ||
Non Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Total TDR loans | 240,399 | [1] | 246,683 | [2] | ||||
Performing Financing Receivable [Member] | Non Accrual [Member] | ||||||||
Financing Receivable Modifications [Line Items] | ||||||||
Total TDR loans | $ 121,300 | $ 118,200 | ||||||
[1] | Included in non-accrual loans are $121.3 million in loans that are performing under the terms of the 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 are deemed fully collectible. | |||||||
[2] | Included in non-accrual loans are $118.2 million in loans that are performing under the terms of the 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. |
LOAN PORTFOLIO - Loan Modificat
LOAN PORTFOLIO - Loan Modifications are Considered TDRs (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)numberofcontracts | Sep. 30, 2015USD ($)numberofcontracts | Sep. 30, 2016USD ($)numberofcontracts | Sep. 30, 2015USD ($)numberofcontracts | |
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | numberofcontracts | 523 | 522 | 1,733 | 1,892 |
Pre-Modification Outstanding Recorded Investment | $ 15,726 | $ 32,289 | $ 66,992 | $ 100,361 |
Post-Modification Outstanding Recorded Investment | $ 15,596 | $ 30,044 | $ 66,075 | $ 95,840 |
Non Fha Va Residential Mortgage Loans [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | numberofcontracts | 55 | 98 | 167 | 350 |
Pre-Modification Outstanding Recorded Investment | $ 8,631 | $ 19,901 | $ 25,040 | $ 60,043 |
Post-Modification Outstanding Recorded Investment | $ 8,449 | $ 19,481 | $ 24,040 | $ 57,882 |
Commercial Mortgage Loans [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | numberofcontracts | 5 | 4 | 8 | 13 |
Pre-Modification Outstanding Recorded Investment | $ 679 | $ 7,380 | $ 3,351 | $ 20,332 |
Post-Modification Outstanding Recorded Investment | $ 712 | $ 5,719 | $ 3,380 | $ 18,781 |
Commercial And Industrial Loan [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | numberofcontracts | 2 | 21 | 3 | |
Pre-Modification Outstanding Recorded Investment | $ 1,432 | $ 21,693 | $ 2,997 | |
Post-Modification Outstanding Recorded Investment | $ 1,432 | $ 21,693 | $ 2,579 | |
Consumer Auto Loans [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | numberofcontracts | 189 | 203 | 612 | 547 |
Pre-Modification Outstanding Recorded Investment | $ 3,262 | $ 3,352 | $ 10,961 | $ 8,739 |
Post-Modification Outstanding Recorded Investment | $ 3,262 | $ 3,297 | $ 10,961 | $ 8,564 |
Finance Leases [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | numberofcontracts | 11 | 19 | 59 | 43 |
Pre-Modification Outstanding Recorded Investment | $ 295 | $ 521 | $ 1,477 | $ 1,215 |
Post-Modification Outstanding Recorded Investment | $ 295 | $ 418 | $ 1,477 | $ 1,056 |
Other Consumer Loans [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | numberofcontracts | 257 | 197 | 862 | 929 |
Pre-Modification Outstanding Recorded Investment | $ 1,269 | $ 1,026 | $ 4,312 | $ 6,432 |
Post-Modification Outstanding Recorded Investment | $ 1,291 | $ 1,020 | $ 4,369 | $ 6,378 |
Land Construction [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | numberofcontracts | 4 | 1 | 4 | 7 |
Pre-Modification Outstanding Recorded Investment | $ 158 | $ 109 | $ 158 | $ 603 |
Post-Modification Outstanding Recorded Investment | $ 155 | $ 109 | $ 155 | $ 600 |
LOAN PORTFOLIO - Loan Modific94
LOAN PORTFOLIO - Loan Modifications Considered Troubled Debt Restructurings Defaulted (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)numberofcontracts | Sep. 30, 2015USD ($)numberofcontracts | Sep. 30, 2016USD ($)numberofcontracts | Sep. 30, 2015USD ($)numberofcontracts | |
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | numberofcontracts | 42 | 78 | 171 | 209 |
Recorded Investment | $ | $ 1,898 | $ 4,118 | $ 5,947 | $ 14,215 |
Non Fha Va Residential Mortgage Loans [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | numberofcontracts | 14 | 23 | 35 | 50 |
Recorded Investment | $ | $ 1,707 | $ 3,744 | $ 4,863 | $ 7,646 |
Commercial And Industrial Loan [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | numberofcontracts | 0 | 4 | ||
Recorded Investment | $ | $ 0 | $ 5,745 | ||
Consumer Auto Loans [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | numberofcontracts | 5 | 1 | 45 | 8 |
Recorded Investment | $ | $ 68 | $ 10 | $ 702 | $ 50 |
Other Consumer Loans [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | numberofcontracts | 22 | 51 | 89 | 141 |
Recorded Investment | $ | $ 93 | $ 219 | $ 339 | $ 589 |
Finance Leases [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of Contracts | numberofcontracts | 1 | 3 | 2 | 6 |
Recorded Investment | $ | $ 30 | $ 145 | $ 43 | $ 185 |
LOAN PORTFOLIO - Loan Restructu
LOAN PORTFOLIO - Loan Restructuring and Effect on Allowance for Loan and Lease Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | $ 656,318 | $ 681,963 | $ 656,318 | $ 681,963 | $ 670,991 | $ 661,591 | $ 634,761 | $ 694,453 |
Charges to the provision for loan losses | 21,503 | 31,176 | 63,542 | 138,412 | ||||
Allowance for loan losses at the end of the period | 214,070 | 214,070 | 240,710 | |||||
Loans Split [Member] | ||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | 38,004 | 40,632 | 38,004 | 40,632 | ||||
Amount charged-off | 0 | 0 | ||||||
Charges to the provision for loan losses | 2,660 | 185 | ||||||
Allowance for loan losses at the end of the period | 3,521 | $ 916 | 3,521 | $ 916 | ||||
Accrual [Member] | ||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||
Financing Receivable, Modifications, Recorded Investment | $ 415,919 | $ 415,919 | $ 414,908 |
LOAN PORTFOLIO - Narratives (De
LOAN PORTFOLIO - Narratives (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure Loan Portfolio Additional Information [Abstract] | |
Branches Doral | 10 |
ALLOWANCE FOR LOAN AND LEASE 97
ALLOWANCE FOR LOAN AND LEASE LOSSES - Changes in Allowance for Loan and Lease Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||
Beginning balance | $ 234,454 | $ 221,518 | $ 240,710 | $ 222,395 | ||||||
Charge-offs | (46,566) | (26,067) | (101,467) | (151,028) | ||||||
Recoveries | 4,679 | 2,339 | 11,285 | 19,187 | ||||||
Provision For Loan Lease And Other Losses | 21,503 | 31,176 | 63,542 | 138,412 | ||||||
Ending balance | 214,070 | 228,966 | 214,070 | 228,966 | ||||||
Balance at end of period | 72,682 | 51,859 | 72,682 | 51,859 | ||||||
Allowance for loan losses Purchased Credit Impaired | 6,857 | 3,163 | 6,857 | 3,163 | ||||||
Ending balance: general allowance | 134,531 | 173,944 | 134,531 | 173,944 | ||||||
Ending balance | 8,863,654 | 9,140,462 | 8,863,654 | 9,140,462 | ||||||
Ending balance: impaired loans | 912,854 | 842,713 | 912,854 | 842,713 | $ 953,774 | $ 806,509 | $ 824,816 | $ 945,407 | ||
Ending balance: purchased credit-impaired loans | 168,141 | 176,085 | 168,141 | 176,085 | ||||||
Ending balance: loans with general allowance | 7,782,659 | 8,121,664 | 7,782,659 | 8,121,664 | ||||||
Purchased Credit Impaired [Member] | ||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||
Allowance for loan losses Purchased Credit Impaired | 6,857 | [1] | 3,163 | 6,857 | [1] | 3,163 | ||||
Residential Mortgage [Member] | ||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||
Beginning balance | 38,955 | 33,783 | 39,570 | 27,301 | ||||||
Charge-offs | (8,514) | (5,094) | (27,352) | (13,815) | ||||||
Recoveries | 972 | 214 | 2,159 | 584 | ||||||
Provision For Loan Lease And Other Losses | 4,553 | 6,958 | 21,589 | 21,791 | ||||||
Ending balance | 35,966 | 35,861 | 35,966 | 35,861 | ||||||
Balance at end of period | 9,667 | 18,705 | 9,667 | 18,705 | ||||||
Ending balance: general allowance | 19,661 | 14,095 | 19,661 | 14,095 | ||||||
Ending balance | 3,299,942 | 3,330,089 | 3,299,942 | 3,330,089 | ||||||
Ending balance: impaired loans | 444,039 | 459,311 | 444,039 | 459,311 | ||||||
Ending balance: purchased credit-impaired loans | 165,014 | 172,927 | 165,014 | 172,927 | ||||||
Ending balance: loans with general allowance | 2,690,889 | 2,697,851 | 2,690,889 | 2,697,851 | ||||||
Residential Mortgage [Member] | Purchased Credit Impaired [Member] | ||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||
Allowance for loan losses Purchased Credit Impaired | 6,638 | [1] | 3,061 | 6,638 | [1] | 3,061 | ||||
Commercial Mortgage [Member] | ||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||
Beginning balance | 69,799 | 49,092 | 68,211 | 50,894 | ||||||
Charge-offs | (13,730) | (3,677) | (15,742) | (54,115) | ||||||
Recoveries | 335 | 20 | 414 | 6,515 | ||||||
Provision For Loan Lease And Other Losses | (152) | 6,668 | 3,369 | 48,809 | ||||||
Ending balance | 56,252 | 52,103 | 56,252 | 52,103 | ||||||
Balance at end of period | 25,907 | 4,886 | 25,907 | 4,886 | ||||||
Ending balance: general allowance | 30,126 | 47,115 | 30,126 | 47,115 | ||||||
Ending balance | 1,545,014 | 1,562,538 | 1,545,014 | 1,562,538 | ||||||
Ending balance: impaired loans | 198,500 | 104,046 | 198,500 | 104,046 | ||||||
Ending balance: purchased credit-impaired loans | 3,127 | 3,158 | 3,127 | 3,158 | ||||||
Ending balance: loans with general allowance | 1,343,387 | 1,455,334 | 1,343,387 | 1,455,334 | ||||||
Commercial Mortgage [Member] | Purchased Credit Impaired [Member] | ||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||
Allowance for loan losses Purchased Credit Impaired | 219 | [1] | 102 | 219 | [1] | 102 | ||||
Commercial And Industrial Loans [Member] | ||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||
Beginning balance | 69,789 | 63,900 | 68,768 | 63,721 | ||||||
Charge-offs | (10,587) | (1,267) | (16,260) | (30,090) | ||||||
Recoveries | 929 | 327 | 1,885 | 3,386 | ||||||
Provision For Loan Lease And Other Losses | 5,597 | 3,807 | 11,335 | 29,750 | ||||||
Ending balance | 65,728 | 66,767 | 65,728 | 66,767 | ||||||
Balance at end of period | 28,668 | 17,540 | 28,668 | 17,540 | ||||||
Ending balance: general allowance | 37,060 | 49,227 | 37,060 | 49,227 | ||||||
Ending balance | 2,167,011 | 2,222,324 | 2,167,011 | 2,222,324 | ||||||
Ending balance: impaired loans | 178,174 | 174,983 | 178,174 | 174,983 | ||||||
Ending balance: purchased credit-impaired loans | 0 | 0 | 0 | 0 | ||||||
Ending balance: loans with general allowance | 1,988,837 | 2,047,341 | 1,988,837 | 2,047,341 | ||||||
Commercial And Industrial Loans [Member] | Purchased Credit Impaired [Member] | ||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||
Allowance for loan losses Purchased Credit Impaired | 0 | [1] | 0 | 0 | [1] | 0 | ||||
Construction Loans [Member] | ||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||
Beginning balance | 2,747 | 11,865 | 3,519 | 12,822 | ||||||
Charge-offs | (19) | (103) | (623) | (4,787) | ||||||
Recoveries | 140 | 176 | 301 | 2,379 | ||||||
Provision For Loan Lease And Other Losses | 2,480 | (139) | 2,151 | 1,385 | ||||||
Ending balance | 5,348 | 11,799 | 5,348 | 11,799 | ||||||
Balance at end of period | 3,004 | 2,128 | 3,004 | 2,128 | ||||||
Ending balance: general allowance | 2,344 | 9,671 | 2,344 | 9,671 | ||||||
Ending balance | 124,298 | 163,956 | 124,298 | 163,956 | ||||||
Ending balance: impaired loans | 47,707 | 66,123 | 47,707 | 66,123 | ||||||
Ending balance: purchased credit-impaired loans | 0 | 0 | 0 | 0 | ||||||
Ending balance: loans with general allowance | 76,591 | 97,833 | 76,591 | 97,833 | ||||||
Construction Loans [Member] | Purchased Credit Impaired [Member] | ||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||
Allowance for loan losses Purchased Credit Impaired | 0 | [1] | 0 | 0 | [1] | 0 | ||||
Consumer Loan [Member] | ||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||
Beginning balance | 53,164 | 62,878 | 60,642 | 67,657 | ||||||
Charge-offs | (13,716) | (15,926) | (41,490) | (48,221) | ||||||
Recoveries | 2,303 | 1,602 | 6,526 | 6,323 | ||||||
Provision For Loan Lease And Other Losses | 9,025 | 13,882 | 25,098 | 36,677 | ||||||
Ending balance | 50,776 | 62,436 | 50,776 | 62,436 | ||||||
Balance at end of period | 5,436 | 8,600 | 5,436 | 8,600 | ||||||
Ending balance: general allowance | 45,340 | 53,836 | 45,340 | 53,836 | ||||||
Ending balance | 1,727,389 | 1,861,555 | 1,727,389 | 1,861,555 | ||||||
Ending balance: impaired loans | 44,434 | 38,250 | 44,434 | 38,250 | ||||||
Ending balance: purchased credit-impaired loans | 0 | 0 | 0 | 0 | ||||||
Ending balance: loans with general allowance | 1,682,955 | 1,823,305 | 1,682,955 | 1,823,305 | ||||||
Consumer Loan [Member] | Purchased Credit Impaired [Member] | ||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||
Allowance for loan losses Purchased Credit Impaired | $ 0 | [1] | $ 0 | $ 0 | [1] | $ 0 | ||||
[1] | Refer to Note 6 - Loans Held for Investment -PCI loans for a detail of changes in the allowance for loan losses related to PCI loans. |
ALLOWANCE FOR LOAN AND LEASE 98
ALLOWANCE FOR LOAN AND LEASE LOSSES - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Reserve for unfunded loan commitments | $ 2,100,000 | $ 500,000 | |
General Allowance For Loan And Lease Losses Loans Sold | $ 15,500,000 |
LOANS HELD FOR SALE - Portfolio
LOANS HELD FOR SALE - Portfolio of Loans Held for Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts Notes And Loans Receivable [Line Items] | ||
Residential mortgage loans | $ 48,700 | $ 27,734 |
Total | 56,779 | 35,869 |
Construction Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Construction loans | $ 8,079 | $ 8,135 |
LOANS HELD FOR SALE - Additiona
LOANS HELD FOR SALE - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans held for sale | $ 56,779 | $ 35,869 | ||
Non-performing loan sold previously reclassified to Loans Held For Sale | $ 147,500 | |||
Transfer Of Loans Held For Sale To Portfolio Loans 1 | 1,321 | $ 0 | ||
Non Accrual [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans held for sale | $ 8,100 | $ 8,100 |
OTHER REAL ESTATE OWNED- Other
OTHER REAL ESTATE OWNED- Other real estate owned (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Other Real Estate And Foreclosed Assets [Line Items] | |||
Other real estate owned | $ 139,446 | $ 146,801 | |
Residential Real Estate [Member] | |||
Other Real Estate And Foreclosed Assets [Line Items] | |||
Other real estate owned | [1] | 45,887 | 43,563 |
Commercial Real Estate [Member] | |||
Other Real Estate And Foreclosed Assets [Line Items] | |||
Other real estate owned | 81,038 | 87,849 | |
Construction Real Estate [Member] | |||
Other Real Estate And Foreclosed Assets [Line Items] | |||
Other real estate owned | $ 12,521 | $ 15,389 | |
[1] | Excludes $15.1 million and $8.9 million as of September 30, 2016 and December 31, 2015, respectively, of foreclosures that meet the conditions of ASC 310-40 and are presented as a receivable (other assets) in the statement of financial condition. |
OTHER REAL ESTATE OWNED- Additi
OTHER REAL ESTATE OWNED- Additional information (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Other Real Estate And Foreclosed Assets [Abstract] | ||
Transfers From Loans to Other Receivable | $ 15.1 | $ 8.9 |
DERIVATIVE INSTRUMENTS AND H103
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amounts of All Derivative Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Economic undesignated hedges: | |||
Notional amount of derivatives | [1] | $ 228,020 | $ 271,632 |
Nondesignated [Member] | Interest Rate Swap [Member] | |||
Economic undesignated hedges: | |||
Notional amount of derivatives | [1] | 0 | 0 |
Nondesignated [Member] | Interest Rate Cap [Member] | Purchase | |||
Economic undesignated hedges: | |||
Notional amount of derivatives | [1] | 91,510 | 120,816 |
Nondesignated [Member] | Interest Rate Cap [Member] | Written | |||
Economic undesignated hedges: | |||
Notional amount of derivatives | [1] | 91,510 | 120,816 |
Nondesignated [Member] | Forward Contracts [Member] | |||
Economic undesignated hedges: | |||
Notional amount of derivatives | [1] | $ 45,000 | $ 30,000 |
[1] | (1) Notional amounts are presented on a gross basis with no netting of offsetting exposure positions. |
DERIVATIVE INSTRUMENTS AND H104
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Fair Value of Derivative Instruments and Location in Statement of Financial Condition (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives Fair Value [Line Items] | ||
Derivatives, included in assets | $ 195 | $ 806 |
Derivatives, included in liabilities | 335 | 921 |
Other Assets [Member] | Interest Rate Cap [Member] | Purchase | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in assets | 191 | 806 |
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 | 4 | 0 |
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 | 191 | 798 |
Other Liabilities [Member] | Forward Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in liabilities | $ 144 | $ 123 |
DERIVATIVE INSTRUMENTS AND H105
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Derivative Instruments on Statement of Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Economic undesignated hedges: | ||||
Total gain (loss) on derivatives | $ 224 | $ (135) | $ (19) | $ 47 |
Interest Rate Cap [Member] | ||||
Economic undesignated hedges: | ||||
Total gain (loss) on derivatives | 5 | 144 | (2) | 144 |
Mortgage Banking Activities [Member] | Forward Contracts [Member] | ||||
Economic undesignated hedges: | ||||
Total gain (loss) on derivatives | $ 219 | $ (279) | $ (17) | $ (97) |
DERIVATIVE INSTRUMENTS AND H106
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Interest Rate Swaps (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Pay fixed/receive floating : | |||
Notional amount | [1] | $ 228,020 | $ 271,632 |
[1] | (1) Notional amounts are presented on a gross basis with no netting of offsetting exposure positions. |
OFFESTTING OF ASSETS AND LIABIL
OFFESTTING OF ASSETS AND LIABILITIES - Offsetting of financial assets and liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Offsetting [Abstract] | ||
Gross amount recognized of derivative asset | $ 191 | $ 806 |
Gross amount of derivatives assets offset | 0 | 0 |
Net asset amount of assets presented in the Statement of Financial Condition | 191 | 806 |
Obligation to return Financial instrument, derivatives assets | (191) | (806) |
Obligation to return Cash Collateral, derivative assets | 0 | 0 |
Net derivative asset amount not offset | 0 | 0 |
Gross amount recognized of repurchase agreements | 500,000 | 600,000 |
Gross amount of repurchase agreements offset | (200,000) | (200,000) |
Net repurchase agreements amount offset presented | 300,000 | 400,000 |
Right to claim Financial instrument, repurchase agreements | (300,000) | (400,000) |
Right to claim Cash Collateral, repurchase agreements | 0 | 0 |
Net repurchase agreements amount not offset | 0 | 0 |
Securities Purchased Under Agreements To Resell Gross | 200,000 | 200,000 |
Securities Purchased Under Agreements To Resell Liability | (200,000) | (200,000) |
Securities Purchased Under Agreements To Resell Not Offset | 0 | 0 |
Securities Purchased Under Agreements To Resell Collateral Obligation To Return Securities | 0 | 0 |
Securities Purchased Under Agreements To Resell Collateral Obligation To Return Cash | 0 | 0 |
Securities Purchased Under Agreements To Resell Amount Offset Against Collateral | 0 | 0 |
Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Gross | 200,191 | 200,806 |
Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Liability | (200,000) | (200,000) |
Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Liability Not Offset | 191 | 806 |
Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Collateral Obligation To Return Securities | (191) | (806) |
Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Collateral Obligation To Return Cash | 0 | 0 |
Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Amount Offset Against Collateral | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBL108
GOODWILL AND OTHER INTANGIBLES - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Jun. 30, 2012 | |
Finite Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 28,100 | $ 28,100 | $ 28,100 | |||
Purchase credit card relationship intangible amount | $ 24,500 | |||||
Amortization expense | 3,669 | $ 3,817 | ||||
Business Combination Finite Lived Intangible Assets Net | 4,600 | 4,600 | ||||
Purchased Credit Card Relationship Intangible [Member] | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Purchase credit card relationship intangible amount | $ 24,465 | 24,465 | $ 24,465 | |||
Amortization period of purchased credit card relationship intangible | 5 years 2 months 12 days | 5 years 9 months 18 days | ||||
Amortization expense | $ 700 | $ 800 | 2,100 | 2,300 | ||
Core Deposits [Member] | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Purchase credit card relationship intangible amount | $ 51,664 | 51,664 | $ 45,844 | |||
Amortization period of purchased credit card relationship intangible | 8 years 3 months 18 days | 9 years | ||||
Amortization expense | $ 500 | $ 600 | 1,500 | $ 1,500 | ||
Customer Related Intangible Assets [Member] | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Purchase credit card relationship intangible amount | $ 1,067 | 1,067 | $ 0 | |||
Amortization period of purchased credit card relationship intangible | 6 years 3 months 18 days | |||||
Amortization expense | $ 38 | $ 100 |
GOODWILL AND OTHER INTANGIBL109
GOODWILL AND OTHER INTANGIBLES - Gross Amount and Accumulated Amortization of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2012 | |
Finite Lived Intangible Assets [Line Items] | |||
Gross amount | $ 24,500 | ||
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Finite Lived Intangible Assets Amortization Expense Year Two | $ 4,495 | ||
Finite Lived Intangible Assets Amortization Expense Year Three | 3,519 | ||
Finite Lived Intangible Assets Amortization Expense Year Four | 3,067 | ||
Finite Lived Intangible Assets Amortization Expense After Year Five | 4,725 | ||
Finite Lived Intangible Assets Amortization Expense Remainder Of Fiscal Year | 1,226 | ||
Finite Lived Intangible Assets Amortization Expense Year Five | 2,851 | ||
Core Deposits [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross amount | 51,664 | $ 45,844 | |
Finite lived Intangible Assets Acquired 1 | 5,820 | ||
Accumulated amortization | (43,974) | (42,498) | |
Net carrying amount | $ 7,690 | $ 9,166 | |
Remaining amortization period | 8 years 3 months 18 days | 9 years | |
Purchased Credit Card Relationship Intangible [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross amount | $ 24,465 | $ 24,465 | |
Accumulated amortization | (13,237) | (11,146) | |
Net carrying amount | $ 11,228 | $ 13,319 | |
Remaining amortization period | 5 years 2 months 12 days | 5 years 9 months 18 days | |
Customer Related Intangible Assets [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross amount | $ 1,067 | $ 0 | |
Accumulated amortization | (102) | 0 | |
Net carrying amount | $ 965 | $ 0 | |
Remaining amortization period | 6 years 3 months 18 days |
NON-CONSOLIDATED VARIABLE IN110
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Feb. 16, 2011 | Sep. 30, 2004 | Apr. 30, 2004 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Servicing Liabilities At Fair Value [Line Items] | ||||||||
Principal amount of corporation serviced loans securitized through GNMA | $ 1,400,000 | $ 1,400,000 | ||||||
Balance of amortization with third party | 30,600 | 30,600 | ||||||
Carrying value with third party | $ 22,100 | 22,100 | ||||||
Percentage of weighted average yield with third party | 2.37% | |||||||
Working capital line of credit to fund certain expenses | $ 20,000 | |||||||
Payment to be made on pro rata basis | 65.00% | |||||||
Debt Instrument Description Of Variable Rate Basis | 90-day LIBOR | |||||||
Interest Expense Accrued Trust Preferred Securities | $ 31,200 | |||||||
Conversion Of Stock Shares Issued1 | 852,831 | |||||||
Common Stock Issued In Exchange For Trust Preferred Securities Value | 0 | $ 5,628 | ||||||
Trust Preferred Securities Exchanged Liquidation Value | $ 5,300 | 0 | $ 5,303 | |||||
Trust Preferred Securities Repurchases | $ 10,000 | |||||||
Trust Preferred Securties Discount | 30.00% | |||||||
Trust Preferred Securities Winning Bid | 70.00% | |||||||
Common Stock Issued In Exchange For Trust Preferred Securities Additional Paid In Capital Value | $ 5,500 | |||||||
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 | |||||||
Proceeds of the issuance, together with proceeds of the purchase | 3,100 | |||||||
Principal amount of corporation's junior subordinated deferrable debentures | $ 103,100 | |||||||
Fbp Statutory Trust Two [Member] | ||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||
Variable rate trust preferred securities | $ 125,000 | |||||||
Proceeds of the issuance, together with proceeds of the purchase | 3,900 | |||||||
Principal amount of corporation's junior subordinated deferrable debentures | $ 128,900 | |||||||
Cpg Gs [Member] | ||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||
Loans Sold to CPG | 269,300 | |||||||
Cash realized on sale of loan | 88,500 | |||||||
Loans acquired on exchange of loan held for sale | $ 136,100 | |||||||
Description of loan | 30-day LIBOR plus 300 basis points | |||||||
Carrying amount of loan provided | $ 6,800 | 6,800 | ||||||
Line of credit facility provided to fund unfunded commitments | $ 80,000 | |||||||
Revolver agreement of credit facility provided amount outstanding | $ 11,400 | $ 11,400 | ||||||
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% |
NON-CONSOLIDATED VARIABLE IN111
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Income Statement Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Variable Interest Entity [Line Items] | ||||
Net income | $ 24,074 | $ 14,758 | $ 69,371 | $ 6,330 |
NON-CONSOLIDATED VARIABLE IN112
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Changes in Servicing Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Servicing Assets At Amortized Value [Line Items] | |||||
Balance at beginning of period | $ 25,044 | $ 23,519 | $ 24,282 | $ 22,838 | |
Capitalization of servicing assets | 1,420 | 1,242 | 3,878 | 3,789 | |
Amortization | (817) | (758) | (2,424) | (2,409) | |
Adjustment To Servicing Assets For Loans Repurchased | [1] | 91 | (20) | 126 | (88) |
Adjustment to fair value | (263) | (23) | (387) | (170) | |
Balance at end of period | $ 25,475 | $ 23,960 | $ 25,475 | $ 23,960 | |
[1] | Amount represents the adjustment to fair value related to the repurchase of loans serviced for others. |
NON-CONSOLIDATED VARIABLE IN113
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Changes in Impairment Allowance (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Valuation Allowance For Impairment Of Recognized Servicing Assets [Line Items] | ||||
Balance at beginning of period | $ 260 | $ 202 | $ 136 | $ 55 |
Temporary impairment charges | 266 | 41 | 460 | 227 |
OTTI of servicing assets | 0 | 0 | 0 | 0 |
Recoveries | (3) | (18) | (73) | (57) |
Balance at end of period | $ 523 | $ 225 | $ 523 | $ 225 |
NON-CONSOLIDATED VARIABLE IN114
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Components of Net Servicing Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Servicing fees | $ 1,930 | $ 1,796 | $ 5,657 | $ 5,340 | |
Late charges and prepayment penalties | 200 | 179 | 505 | 546 | |
Other | [1] | 0 | (22) | (1) | (125) |
Adjustment To Servicing Assets For Loans Repurchased | [2] | 91 | (20) | 126 | (88) |
Servicing income, gross | 2,221 | 1,933 | 6,287 | 5,673 | |
Amortization and impairment of servicing assets | (1,080) | (781) | (2,811) | (2,579) | |
Servicing income, net | $ 1,141 | $ 1,152 | $ 3,476 | $ 3,094 | |
[1] | Mainly consisted of compensatory fees imposed by GSEs. | ||||
[2] | Amount represents the adjustment to fair value related to the repurchase of loans serviced for others. |
NON-CONSOLIDATED VARIABLE IN115
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Key Economic Assumptions Used in Determining Fair Value at Time of Sale of Loans (Detail) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Government Guaranteed Mortgage Loans [Member] | Maximum [Member] | ||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | ||
Constant prepayment rate | 7.60% | 9.20% |
Discount rate | 12.00% | 11.50% |
Government Guaranteed Mortgage Loans [Member] | Minimum [Member] | ||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | ||
Constant prepayment rate | 6.10% | 7.90% |
Discount rate | 11.50% | 11.50% |
Conventional Loan [Member] | Maximum [Member] | ||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | ||
Constant prepayment rate | 8.00% | 9.00% |
Discount rate | 10.00% | 9.50% |
Conventional Loan [Member] | Minimum [Member] | ||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | ||
Constant prepayment rate | 6.50% | 7.90% |
Discount rate | 9.50% | 9.50% |
Conventional Non Conforming Mortgage Loans [Member] | Maximum [Member] | ||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | ||
Constant prepayment rate | 14.10% | 14.40% |
Discount rate | 14.30% | 13.80% |
Conventional Non Conforming Mortgage Loans [Member] | Minimum [Member] | ||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | ||
Constant prepayment rate | 10.60% | 12.90% |
Discount rate | 13.80% | 13.80% |
NON-CONSOLIDATED VARIABLE IN116
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Weighted-Averages of Key Economic Assumptions in Valuation Model (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Carrying amount of servicing assets | $ 25,475 | $ 25,044 | $ 24,282 | $ 23,960 | $ 23,519 | $ 22,838 |
Fair value | $ 27,937 | |||||
Weighted-average expected life | 8 years 5 months 1 day | |||||
Constant prepayment rate | 6.34% | |||||
Decrease in fair value due to 10% adverse change | $ 734 | |||||
Decrease in fair value due to 20% adverse change | $ 1,435 | |||||
Discount rate | 11.18% | |||||
Decrease in fair value due to 10% adverse change | $ 1,311 | |||||
Decrease in fair value due to 20% adverse change | $ 2,515 |
DEPOSITS - Summary of Deposit B
DEPOSITS - Summary of Deposit Balances (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deposits [Line Items] | ||
Non-interest bearing checking accounts | $ 1,473,528 | $ 1,336,559 |
Savings accounts | 2,458,634 | 2,459,186 |
Interest-bearing checking accounts | 1,153,096 | 1,088,651 |
Certificates of deposit | 2,337,547 | 2,356,245 |
Brokered certificates of deposit | 1,558,508 | 2,097,483 |
Total deposits | $ 8,981,313 | $ 9,338,124 |
DEPOSITS - Brokered Certificate
DEPOSITS - Brokered Certificates Of Deposit Mature (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | $ 1,558,508 | $ 2,097,483 |
One to ninety days | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 343,396 | |
Over three month to six months | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 255,574 | |
Over six months to one year | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 350,362 | |
One to three year | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 524,386 | |
Three to five years | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 84,605 | |
Over five years | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | $ 185 |
DEPOSITS - Components of Intere
DEPOSITS - Components of Interest Expense on Deposits (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Deposits [Line Items] | ||||
Interest expense on deposits | $ 16,130 | $ 15,947 | $ 49,104 | $ 48,402 |
Accretion Of Premium From Acquisitions | (43) | (156) | (181) | (441) |
Amortization of broker placement fees | 655 | 1,060 | 2,300 | 3,564 |
Interest expense on deposits | $ 16,742 | $ 16,851 | $ 51,223 | $ 51,525 |
SECURITIES SOLD UNDER AGREEM120
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities Sold Under Agreements to Repurchase (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
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%) | [1],[2] | $ 600,000 | $ 700,000 |
[1] | As of September 30, 2016, includes $500 million with an average rate of 3.56% that lenders have the right to call before their contractual maturities at various dates beginning on October 11, 2016. In addition, $400 million is tied to variable rates. | ||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
SECURITIES SOLD UNDER AGREEM121
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities Sold Under Agreements to Repurchase (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Securities sold under agreements to repurchase | [1],[2] | $ 600,000 | $ 700,000 |
Callable Repurchase Agreements [Member] | |||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Securities sold under agreements to repurchase | $ 500,000 | ||
Maximum [Member] | |||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Assets sold under agreements to repurchase interest rate | 3.84% | 3.41% | |
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% | 1.96% | |
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 | 3.56% | ||
[1] | As of September 30, 2016, includes $500 million with an average rate of 3.56% that lenders have the right to call before their contractual maturities at various dates beginning on October 11, 2016. In addition, $400 million is tied to variable rates. | ||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
SECURITIES SOLD UNDER AGREEM122
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Schedule of Repurchase Agreement Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Repurchase Agreement [Line Items] | |||
Securities Sold Under Agreements To Repurchase | [1],[2] | $ 600,000 | $ 700,000 |
Over five years | |||
Repurchase Agreement [Line Items] | |||
Securities Sold Under Agreements To Repurchase | 200,000 | ||
Maturity 30 To 90 Days [Member] | |||
Repurchase Agreement [Line Items] | |||
Securities Sold Under Agreements To Repurchase | 300,000 | ||
Maturity Over One Year To Three Years [Member] | |||
Repurchase Agreement [Line Items] | |||
Securities Sold Under Agreements To Repurchase | $ 100,000 | ||
[1] | As of September 30, 2016, includes $500 million with an average rate of 3.56% that lenders have the right to call before their contractual maturities at various dates beginning on October 11, 2016. In addition, $400 million is tied to variable rates. | ||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
SECURITIES SOLD UNDER AGREEM123
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Schedule of Repurchase Agreement Maturity (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Repurchase Agreement [Line Items] | |||
Securities Sold Under Agreements To Repurchase | [1],[2] | $ 600,000 | $ 700,000 |
Variable Rate [Member] | |||
Repurchase Agreement [Line Items] | |||
Securities Sold Under Agreements To Repurchase | $ 400,000 | ||
[1] | As of September 30, 2016, includes $500 million with an average rate of 3.56% that lenders have the right to call before their contractual maturities at various dates beginning on October 11, 2016. In addition, $400 million is tied to variable rates. | ||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
SECURITIES SOLD UNDER AGREEM124
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Repurchase Agreements Grouped by Counterparty (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | ||
Repurchase Agreement Counterparty [Line Items] | |||
Repurchase agreements, interest ranging from 2.45% to 3.39% (December 31, 2011 - 2.50% to 4.40%) (1) | [1],[2] | $ 600,000 | $ 700,000 |
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 month | ||
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 | 5 years 4 months | ||
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 | 1 year 1 month | ||
[1] | As of September 30, 2016, includes $500 million with an average rate of 3.56% that lenders have the right to call before their contractual maturities at various dates beginning on October 11, 2016. In addition, $400 million is tied to variable rates. | ||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
ADVANCES FROM THE FEDERAL HO125
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Summary of Advances from FHLB (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Short Term Debt [Line Items] | ||
Fixed-rate advances from FHLB, with a weighted-average interest rate of 1.69% (December 31, 2012 - 2.26%) | $ 355,000 | $ 455,000 |
ADVANCES FROM THE FEDERAL HO126
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Summary of Advances from FHLB (Parenthetical) (Detail) | Sep. 30, 2016 | Dec. 31, 2015 |
Weighted Average [Member] | ||
Short Term Debt [Line Items] | ||
FHLB advances interest rate | 1.40% | 1.30% |
ADVANCES FROM THE FEDERAL HO127
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Advances from FHLB Mature (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Federal Home Loan Bank Advances | $ 355,000 | $ 455,000 |
Over six months to one year | ||
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Federal Home Loan Bank Advances | 200,000 | |
Over one to three years | ||
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Federal Home Loan Bank Advances | 25,000 | |
Over Three to four years [Member] | ||
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Federal Home Loan Bank Advances | $ 130,000 |
ADVANCES FROM THE FEDERAL HO128
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Additional Information (Detail) $ in Billions | Sep. 30, 2016USD ($) |
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | |
Credit facility based on collateral pledged | $ 1.1 |
OTHER BORROWINGS - Components o
OTHER BORROWINGS - Components of Other Borrowings (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Junior subordinated debentures due in 2034 | $ 216,187 | $ 226,492 | |
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Seventy Five [Member] | |||
Debt Instrument [Line Items] | |||
Junior subordinated debentures due in 2034 | 97,630 | 97,626 | |
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Fifty Percent [Member] | |||
Debt Instrument [Line Items] | |||
Junior subordinated debentures due in 2034 | [1] | $ 118,557 | $ 128,866 |
[1] | Refer to Note 13 - Non-Consolidated Variable Interest Entities and Servicing Assets - Trust Preferred Securities for additional information about the Corporation's repurchase and cancellation of $10 million of trust preferred securities associated with these junior subordinated debentures. |
OTHER BORROWINGS - Component130
OTHER BORROWINGS - Components of Other Borrowings (Parenthetical) (Detail) | 3 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Seventy Five [Member] | ||
Debt Instrument [Line Items] | ||
Floating Interest rate on junior subordinated debentures | 3.61% | 3.28% |
Subordinated Borrowing Due Date | Jun. 17, 2034 | |
Callable step-rate notes rate | 2.75% | |
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Fifty Percent [Member] | ||
Debt Instrument [Line Items] | ||
Floating Interest rate on junior subordinated debentures | 3.36% | 3.07% |
Subordinated Borrowing Due Date | Sep. 20, 2034 | |
Callable step-rate notes rate | 2.50% |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Class Of Stock [Line Items] | |||||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||
Common stock, par value | $ 0.1 | $ 0.1 | $ 0.1 | ||
Common stock, shares issued | 218,605,179 | 216,051,128 | 218,605,179 | ||
Common stock, shares outstanding | 217,387,647 | 215,088,698 | 217,387,647 | ||
Granted shares of restricted stock | 1,925,575 | ||||
Corporation has authorized shares of preferred stock | 50,000,000 | 50,000,000 | 50,000,000 | ||
Preferred stock, par value | $ 1 | $ 1 | |||
Stock repurchase plan treasury stock | 1,217,532 | 962,430 | 1,217,532 | ||
Legal surplus reserve rate | 10.00% | ||||
Original amount contributed in percentage | 20.00% | ||||
Repurchased of common stock | 255,102 | 181,649 | |||
Liquidation value per share | $ 25 | $ 25 | |||
Legal surplus reserve amount | $ 42,798 | $ 42,798 | $ 42,798 | ||
Conversion Of Stock Shares Issued1 | 852,831 | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number | 4,209,323 | 2,968,461 | 4,209,323 | ||
Trust Preferred Securities Exchanged Liquidation Value | $ 5,300 | $ 0 | $ 5,303 | ||
Legal Surplus Amount Additions | $ 2,800 | ||||
Omnibus Plan [Member] | |||||
Class Of Stock [Line Items] | |||||
Restricted stock available for issuance | 6,924,391 | 6,924,391 | |||
Restricted Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Repurchased of common stock | 65,498 | 72,918 | |||
Series A Preferred Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Preferred stock dividend rate percentage | 7.125% | ||||
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
STOCKHOLDERS' EQUITY - Exchange offer with respect to Series A through E preferred stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Class Of Stock [Line Items] | |||
Liquidation value per share | $ 25 | ||
Preferred stock, shares outstanding | 1,444,146 | 1,444,146 | |
Preferred Stock Value | $ 36,104 | $ 36,104 | |
Conversion Of Stock Shares Issued1 | 852,831 | ||
Series A Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 7.125% | ||
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 Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Contingency [Line Items] | ||||
Valuation allowance | $ 201,700 | $ 201,700 | ||
Percentage of dividend received deduction from controlled subsidiaries | 100.00% | |||
Percentage of dividend received from other taxable domestic corporations | 85.00% | |||
Income tax expense | 10,444 | $ 4,476 | $ 23,690 | $ 2,664 |
Deferred Tax Assets Net | $ 290,900 | $ 290,900 | ||
Minimum percentage of bank net taxable income for paying Income tax at normal rate | 20.00% | |||
Effective Tax Rate Pretax Losses | 24.00% | 17.00% | ||
Effective Income Tax Rate Continuing Operations | 25.00% | 30.00% | ||
Puerto Rico [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Statute of limitations under income tax act | 4 years | |||
United States [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Statute of limitations under income tax act | 3 years | |||
Virgin Islands [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Statute of limitations under income tax act | 3 years |
FAIR VALUE - Additional Informa
FAIR VALUE - Additional Information (Detail) | Sep. 30, 2016USD ($) |
Debt Instrument [Line Items] | |
Maximum amount of interest in brokered CD sold by broker | $ 250,000 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Securities available for sale | ||
Investment securities available for sale | $ 1,843,853 | $ 1,886,395 |
Derivatives, included in assets: | ||
Derivatives, included in assets | 195 | 806 |
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 335 | 921 |
Forward Contracts [Member] | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 144 | 123 |
Equity Securities [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 419 | 0 |
U S Treasury Securities [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 7,514 | 7,497 |
Us Government Agencies Debt Securities Noncallable [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 366,838 | 315,467 |
Us Government Agencies Debt Securities Callable [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 1,419,951 | 1,509,807 |
US States And Political Subdivisions Member [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 26,820 | 28,217 |
Private Label Mbs [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 22,211 | 25,307 |
Interest Rate Cap [Member] | Purchase | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 191 | 806 |
Interest Rate Cap [Member] | Written | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 191 | 798 |
Forward And Future Contracts [Member] | Purchase | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 4 | |
Other Available For Sale Securities [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 100 | 100 |
Fair Value Inputs Level 1 [Member] | Forward Contracts [Member] | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Equity Securities [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 419 | 0 |
Fair Value Inputs Level 1 [Member] | U S Treasury Securities [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 7,514 | 7,497 |
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] | Purchase | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 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] | Forward Contracts [Member] | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 144 | 123 |
Fair Value Inputs Level 2 [Member] | Equity 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 | 366,838 | 315,467 |
Fair Value Inputs Level 2 [Member] | Us Government Agencies Debt Securities Callable [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 1,419,951 | 1,509,807 |
Fair Value Inputs Level 2 [Member] | US States And Political Subdivisions Member [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 24,653 | 26,327 |
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 | 191 | 806 |
Fair Value Inputs Level 2 [Member] | Interest Rate Cap [Member] | Written | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 191 | 798 |
Fair Value Inputs Level 2 [Member] | Forward And Future Contracts [Member] | Purchase | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 4 | |
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] | Forward Contracts [Member] | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Equity 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 | 2,167 | 1,890 |
Fair Value Inputs Level 3 [Member] | Private Label Mbs [Member] | ||
Securities available for sale | ||
Investment securities available for sale | 22,211 | 25,307 |
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] | Purchase | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 0 | |
Fair Value Inputs Level 3 [Member] | Other Available For Sale Securities [Member] | ||
Securities available for sale | ||
Investment securities available for sale | $ 100 | $ 100 |
FAIR VALUE - Fair Value of Asse
FAIR VALUE - Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | $ 26,020 | [1] | $ 31,640 | [1] | $ 27,297 | [2] | $ 36,212 | [2] | |
Total gains or (losses) (realized/unrealized): | |||||||||
Net impairement losses on investment securites (credit component) | 0 | [1] | (231) | [1] | (387) | [2] | (628) | [2] | |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Other Comprehensive Income Loss | (477) | [1] | 345 | [1] | 1,339 | [2] | 1,489 | [2] | |
Purchases | [2] | 0 | 100 | ||||||
Principal Repayments | (1,065) | [1] | (2,046) | [1] | (3,771) | [2] | (7,465) | [2] | |
Ending balance | [1],[2] | 24,478 | 29,708 | 24,478 | 29,708 | ||||
Available for Sale Securities | |||||||||
Total gains or (losses) (realized/unrealized): | |||||||||
Net impairement losses on investment securites (credit component) | $ 0 | $ (231) | $ (387) | $ (628) | |||||
[1] | Amounts mostly related to private label mortgage-backed securities. | ||||||||
[2] | Amounts mostly related to private label mortgage-backed securities. |
FAIR VALUE - Assets and Liab137
FAIR VALUE - Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Discount rate used for calculation of mortgage servicing rights value | 13.28% | 14.50% | |
Fair value input prepayment rate | 13.70% | 25.00% | |
Private Label Mbs [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair Value | $ 22,130 | $ 22,130 | |
Discount rate used for calculation of mortgage servicing rights value | 13.28% | ||
Private Label Mbs [Member] | Discounted Cash Flow [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Valuation technique | Discounted cash flow | ||
US States And Political Subdivisions Member [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair Value | $ 2,167 | $ 2,167 | |
Unobservable input prepayment rate | 3.00% | 3.00% | |
US States And Political Subdivisions Member [Member] | Discounted Cash Flow [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Valuation technique | Discounted cash flow | ||
Minimum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Discount rate used for calculation of mortgage servicing rights value | 12.03% | ||
Fair value input prepayment rate | 6.50% | 15.92% | |
Minimum [Member] | Private Label Mbs [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Unobservable input prepayment rate | 6.50% | 6.50% | |
Fair value projected Cumulative Loss Rate | 0.20% | 0.20% | |
Maximum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Discount rate used for calculation of mortgage servicing rights value | 13.50% | ||
Fair value input prepayment rate | 22.50% | 31.25% | |
Maximum [Member] | Private Label Mbs [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Unobservable input prepayment rate | 22.50% | 22.50% | |
Fair value projected Cumulative Loss Rate | 9.10% | 9.10% |
FAIR VALUE - Change in unrealiz
FAIR VALUE - Change in unrealized losses included in earnings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||
Net impairement losses on investment securites (credit component) | $ 0 | [1] | $ (231) | [1] | $ (387) | [2] | $ (628) | [2] |
Available for Sale Securities | ||||||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||
Net impairement losses on investment securites (credit component) | $ 0 | $ (231) | $ (387) | $ (628) | ||||
[1] | Amounts mostly related to private label mortgage-backed securities. | |||||||
[2] | Amounts mostly related to private label mortgage-backed securities. |
FAIR VALUE - Impairment of Valu
FAIR VALUE - Impairment of Valuation Adjustments were Recorded for Assets Recognized at Fair Value (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||||||
Mortgage servicing rights | $ 25,475 | $ 23,960 | $ 25,475 | $ 23,960 | $ 25,044 | $ 24,282 | $ 23,519 | $ 22,838 | ||||
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 | (13,912) | [1] | (7,864) | [2] | (41,621) | [1] | (22,431) | [2] | ||||
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 | (1,702) | [3] | (4,025) | [4] | (6,580) | [3] | (8,790) | [4] | ||||
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 | (263) | [5] | (23) | [6] | (387) | [5] | (170) | [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 | 0 | [7] | 0 | 0 | [7] | ||||||
Fair Value Inputs Level 1 [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||||||
Loans receivable | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | ||||
Other Real Estate Owned | 0 | [3] | 0 | [4] | 0 | [3] | 0 | [4] | ||||
Mortgage servicing rights | 0 | [5] | 0 | [6] | 0 | [5] | 0 | [6] | ||||
Loans held for sale | 0 | 0 | [7] | 0 | 0 | [7] | ||||||
Fair Value Inputs Level 2 [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||||||
Loans receivable | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | ||||
Other Real Estate Owned | 0 | [3] | 0 | [4] | 0 | [3] | 0 | [4] | ||||
Mortgage servicing rights | 0 | [5] | 0 | [6] | 0 | [5] | 0 | [6] | ||||
Loans held for sale | 0 | 0 | [7] | 0 | 0 | [7] | ||||||
Fair Value Inputs Level 3 [Member] | ||||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||||||
Loans receivable | 426,444 | [1] | 332,688 | [2] | 426,444 | [1] | 332,688 | [2] | ||||
Other Real Estate Owned | 139,446 | [3] | 124,442 | [4] | 139,446 | [3] | 124,442 | [4] | ||||
Mortgage servicing rights | 25,475 | [5] | 23,960 | [6] | 25,475 | [5] | 23,960 | [6] | ||||
Loans held for sale | $ 0 | $ 8,027 | [7] | $ 0 | $ 8,027 | [7] | ||||||
[1] | Consist mainly of impaired commercial and construction loans. The impairment was generally measured based on the fair value of the collateral. The fair value was 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] | Consist mainly of impaired commercial and construction loans. The impairment was generally measured based on the fair value of the collateral. The fair value was 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. | |||||||||||
[3] | The fair value was derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g. absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. | |||||||||||
[4] | The fair value was derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g. absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. | |||||||||||
[5] | Fair value adjustments to mortgage servicing rights were mainly due to assumptions associated with mortgage prepayment rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate of 6.34%, Discount Rate of 11.18%. | |||||||||||
[6] | Fair value adjustments to the mortgage servicing rights were mainly due to assumptions associated with mortgage prepayments rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment Rate of 9.32%, Discount Rate of 10.64%. | |||||||||||
[7] | The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans. |
FAIR VALUE - Impairment of V140
FAIR VALUE - Impairment of Valuation Adjustments were Recorded for Assets Recognized at Fair Value (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Repayment rate used for the calculation of mortgage servicing rights value | 13.70% | 25.00% | ||
Discount rate used for calculation of mortgage servicing rights value | 13.28% | 14.50% | ||
Loans held for sale | $ 56,779 | $ 56,779 | $ 35,869 | |
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 | 6.34% | 9.32% | ||
Discount rate used for calculation of mortgage servicing rights value | 11.18% | 10.64% |
FAIR VALUE - Qualitative Inform
FAIR VALUE - Qualitative Information Regarding Fair Value Measurements for Level 3 Financial Instruments (Detail) | 3 Months Ended |
Sep. 30, 2016 | |
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 6.34%; weighted average discount rate of 11.18% |
FAIR VALUE - Fair Value (Detail
FAIR VALUE - Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | ||
Assets: | |||||
Investment securities available for sale | $ 1,843,853 | $ 1,886,395 | |||
Held To Maturity Securities | 156,190 | 161,483 | |||
Less: allowance for loan and lease losses | (214,070) | (240,710) | |||
Derivatives, included in assets | 195 | 806 | |||
Liabilities: | |||||
Other borrowings | 216,187 | 226,492 | |||
Derivatives, included in liabilities | 335 | 921 | |||
Fair Value Inputs Level 1 [Member] | |||||
Assets: | |||||
Loans held for sale | 0 | $ 0 | [1] | ||
Loans held for investment, net of allowance | 0 | [2] | 0 | [3] | |
Fair Value Inputs Level 2 [Member] | |||||
Assets: | |||||
Loans held for sale | 0 | 0 | [1] | ||
Loans held for investment, net of allowance | 0 | [2] | 0 | [3] | |
Fair Value Inputs Level 3 [Member] | |||||
Assets: | |||||
Loans held for sale | 0 | 8,027 | [1] | ||
Loans held for investment, net of allowance | 426,444 | [2] | $ 332,688 | [3] | |
Carrying Reported Amount Fair Value Disclosure [Member] | |||||
Assets: | |||||
Cash and due from banks and money market investments | 528,943 | 752,458 | |||
Investment securities available for sale | 1,843,853 | 1,886,395 | |||
Held To Maturity Securities | 156,190 | 161,483 | |||
Other equity securities | 28,717 | 32,169 | |||
Loans held for sale | 56,779 | 35,869 | |||
Loans, held for investment | 8,863,654 | 9,112,382 | |||
Less: allowance for loan and lease losses | (214,070) | (240,710) | |||
Loans held for investment, net of allowance | 8,649,584 | 8,871,672 | |||
Derivatives, included in assets | 195 | 806 | |||
Liabilities: | |||||
Deposits | 8,981,313 | 9,338,124 | |||
Securities sold under agreements to repurchase | 600,000 | 700,000 | |||
Advances from FHLB | 355,000 | 455,000 | |||
Other borrowings | 216,187 | 226,492 | |||
Derivatives, included in liabilities | 335 | 921 | |||
Estimate Of Fair Value Fair Value Disclosure [Member] | |||||
Assets: | |||||
Cash and due from banks and money market investments | 528,943 | 752,458 | |||
Investment securities available for sale | 1,843,853 | 1,886,395 | |||
Held To Maturity Securities | 132,241 | 131,544 | |||
Other equity securities | 28,717 | 32,169 | |||
Loans held for sale | 60,283 | 36,844 | |||
Loans held for investment, net of allowance | 8,462,434 | 8,768,152 | |||
Derivatives, included in assets | 195 | 806 | |||
Liabilities: | |||||
Deposits | 9,003,706 | 9,334,073 | |||
Securities sold under agreements to repurchase | 646,505 | 752,048 | |||
Advances from FHLB | 356,925 | 453,182 | |||
Other borrowings | 174,997 | 142,846 | |||
Derivatives, included in liabilities | 335 | 921 | |||
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 1 [Member] | |||||
Assets: | |||||
Cash and due from banks and money market investments | 528,943 | 752,458 | |||
Investment securities available for sale | 7,933 | 7,497 | |||
Held To Maturity Securities | 0 | 0 | |||
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 | 1,811,442 | 1,851,601 | |||
Held To Maturity Securities | 0 | 0 | |||
Other equity securities | 28,717 | 32,169 | |||
Loans held for sale | 50,497 | 28,709 | |||
Loans held for investment, net of allowance | 0 | 0 | |||
Derivatives, included in assets | 195 | 806 | |||
Liabilities: | |||||
Deposits | 9,003,706 | 9,334,073 | |||
Securities sold under agreements to repurchase | 646,505 | 752,048 | |||
Advances from FHLB | 356,925 | 453,182 | |||
Other borrowings | 0 | 0 | |||
Derivatives, included in liabilities | 335 | 921 | |||
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 | 24,478 | 27,297 | |||
Held To Maturity Securities | 132,241 | 131,544 | |||
Other equity securities | 0 | 0 | |||
Loans held for sale | 9,786 | 8,135 | |||
Loans held for investment, net of allowance | 8,462,434 | 8,768,152 | |||
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 | 174,997 | 142,846 | |||
Derivatives, included in liabilities | $ 0 | $ 0 | |||
[1] | The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans. | ||||
[2] | Consist mainly of impaired commercial and construction loans. The impairment was generally measured based on the fair value of the collateral. The fair value was 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. | ||||
[3] | Consist mainly of impaired commercial and construction loans. The impairment was generally measured based on the fair value of the collateral. The fair value was 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 INFOR143
SUPPLEMENTAL CASH FLOW INFORMATION - Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash paid for: | |||||
Interest on borrowings | $ 104,031 | $ 70,016 | |||
Income tax | 1,878 | 3,404 | |||
Non-cash investing and financing activities: | |||||
Additions to other real estate owned | 37,606 | 44,415 | |||
Additions to auto repossesions | 42,934 | 57,901 | |||
Loan securitizations | 238,599 | 213,391 | |||
Capitalization of servicing assets | $ 1,420 | $ 1,242 | 3,878 | 3,789 | |
Loans held for investment transferred to held for sale | 10,332 | 0 | |||
Common Stock Issued In Exchange For Trust Preferred Securities Value | 0 | 5,628 | |||
Trust Preferred Securities Exchanged Liquidation Value | $ 5,300 | 0 | 5,303 | ||
Transfer Of Loans Held For Sale To Portfolio Loans 1 | 1,321 | 0 | |||
Deposits [Member] | |||||
Non-cash investing and financing activities: | |||||
Liabilities Assumed1 | 0 | (523,517) | |||
Loans [Member] | |||||
Non-cash investing and financing activities: | |||||
Fair Value Of Assets Acquired | 0 | 311,410 | |||
Property Plant And Equipment [Member] | |||||
Non-cash investing and financing activities: | |||||
Fair Value Of Assets Acquired | 0 | 5,450 | |||
Core Deposits [Member] | |||||
Non-cash investing and financing activities: | |||||
Fair Value Of Assets Acquired | $ 0 | $ 5,820 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016numberofreportableunits | |
Number of reportable segments | 6 |
SEGMENT INFORMATIO - Informatio
SEGMENT INFORMATIO - Information about reportable segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Interest income | $ 143,573 | $ 149,812 | $ 441,338 | $ 453,929 |
Net (charge) credit for transfer of funds | 0 | 0 | 0 | 0 |
Interest expense | (25,395) | (24,883) | (78,284) | (76,876) |
Net interest income | 118,178 | 124,929 | 363,054 | 377,053 |
(Provision) release for loan and lease losses | (21,503) | (31,176) | (63,542) | (138,412) |
Non-interest income (loss) | 26,146 | 18,758 | 64,393 | 44,714 |
Direct non-interest expenses | (63,402) | (68,000) | (197,529) | (202,645) |
Segment (loss) income | 59,419 | 44,511 | 166,376 | 80,710 |
Average earnings assets | 11,354,259 | 11,587,431 | 11,631,135 | 11,831,006 |
Mortgage Banking [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 34,605 | 36,180 | 104,865 | 106,352 |
Net (charge) credit for transfer of funds | (12,074) | (12,629) | (37,673) | (36,212) |
Interest expense | 0 | 0 | 0 | 0 |
Net interest income | 22,531 | 23,551 | 67,192 | 70,140 |
(Provision) release for loan and lease losses | (3,860) | (6,750) | (21,608) | (21,657) |
Non-interest income (loss) | 5,222 | 3,982 | 14,381 | 11,866 |
Direct non-interest expenses | (8,864) | (8,977) | (29,828) | (26,270) |
Segment (loss) income | 15,029 | 11,806 | 30,137 | 34,079 |
Average earnings assets | 2,549,358 | 2,642,388 | 2,576,194 | 2,601,892 |
Consumer Retail Banking [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 44,455 | 48,528 | 135,655 | 147,395 |
Net (charge) credit for transfer of funds | 2,810 | 4,335 | 10,546 | 12,816 |
Interest expense | (6,323) | (5,869) | (18,765) | (17,379) |
Net interest income | 40,942 | 46,994 | 127,436 | 142,832 |
(Provision) release for loan and lease losses | (8,655) | (13,946) | (24,451) | (36,588) |
Non-interest income (loss) | 11,292 | 11,759 | 35,318 | 35,504 |
Direct non-interest expenses | (27,100) | (32,669) | (87,218) | (96,690) |
Segment (loss) income | 16,479 | 12,138 | 51,085 | 45,058 |
Average earnings assets | 1,973,424 | 1,959,951 | 1,989,426 | 1,956,352 |
Commercial And Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 28,981 | 32,636 | 93,915 | 100,192 |
Net (charge) credit for transfer of funds | (6,700) | (4,058) | (18,212) | (11,746) |
Interest expense | 0 | 0 | 0 | 0 |
Net interest income | 22,281 | 28,578 | 75,703 | 88,446 |
(Provision) release for loan and lease losses | (8,162) | (11,355) | (17,730) | (84,170) |
Non-interest income (loss) | 985 | 647 | 2,459 | 2,350 |
Direct non-interest expenses | (11,871) | (10,896) | (33,194) | (30,013) |
Segment (loss) income | 3,233 | 6,974 | 27,238 | (23,387) |
Average earnings assets | 2,410,037 | 2,760,788 | 2,489,268 | 2,947,562 |
Treasury And Investments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 12,529 | 11,500 | 39,206 | 36,276 |
Net (charge) credit for transfer of funds | 15,839 | 8,563 | 44,226 | 23,936 |
Interest expense | (14,487) | (14,305) | (45,828) | (44,834) |
Net interest income | 13,881 | 5,758 | 37,604 | 15,378 |
(Provision) release for loan and lease losses | 0 | 0 | 0 | 0 |
Non-interest income (loss) | 6,154 | (174) | 3,815 | (13,046) |
Direct non-interest expenses | (914) | (1,103) | (3,462) | (3,487) |
Segment (loss) income | 19,121 | 4,481 | 37,957 | (1,155) |
Average earnings assets | 2,565,019 | 2,531,084 | 2,774,118 | 2,683,313 |
United States Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 13,944 | 11,229 | 40,091 | 34,477 |
Net (charge) credit for transfer of funds | 125 | 3,789 | 1,113 | 11,206 |
Interest expense | (3,811) | (3,931) | (11,214) | (12,326) |
Net interest income | 10,258 | 11,087 | 29,990 | 33,357 |
(Provision) release for loan and lease losses | 2,024 | 1,307 | 1,563 | 6,715 |
Non-interest income (loss) | 884 | 778 | 2,799 | 2,032 |
Direct non-interest expenses | (7,556) | (6,914) | (23,070) | (21,293) |
Segment (loss) income | 5,610 | 6,258 | 11,282 | 20,811 |
Average earnings assets | 1,252,271 | 1,048,451 | 1,188,463 | 1,001,860 |
Virgin Islands Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 9,059 | 9,739 | 27,606 | 29,237 |
Net (charge) credit for transfer of funds | 0 | 0 | 0 | 0 |
Interest expense | (774) | (778) | (2,477) | (2,337) |
Net interest income | 8,285 | 8,961 | 25,129 | 26,900 |
(Provision) release for loan and lease losses | (2,850) | (432) | (1,316) | (2,712) |
Non-interest income (loss) | 1,609 | 1,766 | 5,621 | 6,008 |
Direct non-interest expenses | (7,097) | (7,441) | (20,757) | (24,892) |
Segment (loss) income | (53) | 2,854 | 8,677 | 5,304 |
Average earnings assets | $ 604,150 | $ 644,769 | $ 613,666 | $ 640,027 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Reportable Segment Financial Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Net Income (Loss): | |||||
Total income for segments and other | $ 59,419 | $ 44,511 | $ 166,376 | $ 80,710 | |
Other non-interest income (loss) | [1] | 0 | 0 | 0 | 13,443 |
Other operating expenses | [2] | (24,901) | (25,277) | (73,315) | (85,159) |
Income before income taxes | 34,518 | 19,234 | 93,061 | 8,994 | |
Income tax expense | (10,444) | (4,476) | (23,690) | (2,664) | |
Total consolidated net income (loss) | 24,074 | 14,758 | 69,371 | 6,330 | |
Average assets: | |||||
Total average earning assets for segments | 11,354,259 | 11,587,431 | 11,631,135 | 11,831,006 | |
Average non-earning assets | 926,043 | 925,723 | 927,732 | 916,817 | |
Total consolidated average assets | $ 12,280,302 | $ 12,513,154 | $ 12,558,867 | $ 12,747,823 | |
[1] | The bargain purchase gain on the acquisition of assets and assumption of deposits from Doral Bank in 2015 is presented as Other non-interest income in the table above. | ||||
[2] | Expenses pertaining to corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment are not included in the reported financial results of the operating segments. The unallocated corporate expenses include certain general and administrative expenses and related depreciation and amortization expenses. |
REGULATORY MATTERS, COMMITME147
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Threshold For Deposits Insurance Assesment Surcharge | $ 10,000,000,000 | |||
FDIC Deposits Insurance Assesment Surcharge | 0.045 | |||
Deposits Insurance Surcharge Assesment Base | $ 100 | |||
Commitments To Extent Credit | $ 1,100,000,000 | $ 1,100,000,000 | ||
Decrease Increase Federal Deposit Insurance Corporation Premium Expense | 800,000 | |||
Credit Cards [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Commitments To Extent Credit | 631,500,000 | 631,500,000 | ||
Commercial And Financial Standby Letters Of Credit [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Commitments To Extent Credit | $ 46,700,000 | $ 46,700,000 | ||
Basel III [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Common Equity Tier 1 Capital Conservation Buffer | 2.50% | |||
Basel III [Member] | Minimum [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Common Equity Tier1 Capital To Risk Weight Assets Ratio | 4.50% | 4.50% | ||
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 | 0.625% | |||
FirstBank [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Leverage ratio | 14.40% | 14.40% | 13.33% | |
Tier 1 risk based capital ratio | 19.46% | 19.46% | 18.45% | |
Total Risk Based Capital Ratio | 20.73% | 20.73% | 19.73% | |
Tier 1 risk based capital ratio to be considered well capitalzed under PCA | 8.00% | 8.00% | 8.00% | |
Total risk based capital to be considered well capitalized under PCA | 10.00% | 10.00% | 10.00% | |
Leverage ratio to be considered well capitalized under PCA | 5.00% | 5.00% | 5.00% | |
Common Equity Tier1 Capital To Risk Weight Assets Ratio | 16.83% | 16.83% | 16.35% |
REGULATORY MATTERS, COMMITME148
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES- Regulatory Capital Positions (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Holding Company [Member] | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital | $ 1,892,493 | $ 1,828,559 |
Tier One Risk Based Capital | 1,569,482 | 1,546,678 |
Tier One Leverage Capital | 1,569,482 | 1,546,678 |
Capital Required For Capital Adequacy | 711,754 | 731,164 |
Tier One Risk Based Capital Required For Capital Adequacy | 533,816 | 548,373 |
Tier One Leverage Capital Required For Capital Adequacy | $ 481,357 | $ 506,322 |
Capital To Risk Weighted Assets | 21.27% | 20.01% |
Tier One Risk Based Capital To Risk Weighted Assets | 17.64% | 16.92% |
Tier One Leverage Capital To Average Assets | 13.04% | 12.22% |
Capital Required For Capital Adequacy To Risk Weighted Assets | 8.00% | 8.00% |
Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 6.00% | 6.00% |
Tier One Leverage Capital Required For Capital Adequacy To Average Assets | 4.00% | 4.00% |
Common Equity Tier1 Capital To Risk Weight Assets Ratio | 17.64% | 16.92% |
Common Equity Tier 1 Capital To Risk Weight Assets | $ 1,569,482 | $ 1,546,678 |
Common Equity Tier 1 Capital To Risk Weight Assets Ratio Capital Adequacy | 4.50% | 4.50% |
Common Equity Tier 1 Capital To Risk Weight Assets Capital Adequacy | $ 400,362 | $ 411,280 |
FirstBank [Member] | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital | 1,843,533 | 1,802,711 |
Tier One Risk Based Capital | 1,730,264 | 1,685,656 |
Tier One Leverage Capital | 1,730,264 | 1,685,656 |
Capital Required For Capital Adequacy | 711,460 | 730,824 |
Tier One Risk Based Capital Required For Capital Adequacy | 533,595 | 548,118 |
Tier One Leverage Capital Required For Capital Adequacy | 480,751 | 505,648 |
Capital Required To Be Well Capitalized | 889,325 | 913,530 |
Tier One Risk Based Capital Required To Be Well Capitalized | $ 711,460 | $ 730,824 |
Capital To Risk Weighted Assets | 20.73% | 19.73% |
Tier One Risk Based Capital To Risk Weighted Assets | 19.46% | 18.45% |
Tier One Leverage Capital To Average Assets | 14.40% | 13.33% |
Capital Required For Capital Adequacy To Risk Weighted Assets | 8.00% | 8.00% |
Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 6.00% | 6.00% |
Tier One Leverage Capital Required For Capital Adequacy To Average Assets | 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% | 8.00% |
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 | $ 600,939 | $ 632,060 |
Common Equity Tier1 Capital To Risk Weight Assets Ratio | 16.83% | 16.35% |
Common Equity Tier 1 Capital To Risk Weight Assets | $ 1,496,670 | $ 1,493,478 |
Common Equity Tier 1 Capital To Risk Weight Assets Ratio Capital Adequacy | 4.50% | 4.50% |
Common Equity Tier 1 Capital To Risk Weight Assets Capital Adequacy | $ 400,196 | $ 411,088 |
Common Equity Tier 1 Capital To Risk Weight Assets Well Capitalized | $ 578,061 | $ 593,794 |
Common Equity Tier 1 Capital To Risk Weight Assets Ratio Well Capitalized | 6.50% | 6.50% |
FIRST BANCORP. (Holding Comp149
FIRST BANCORP. (Holding Company Only) Financial Information - Statements of Financial Condition (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
ASSETS | |||
Cash and due from banks | $ 518,835 | $ 532,985 | |
Money market investments | 10,108 | 219,473 | $ 219,486 |
Investment securities available for sale, at market: | |||
Other investment securities | 1,182,299 | 1,092,833 | |
Carrying Value Of Other Equity Security | 2,100 | 900 | |
Loans Receivable, net | 8,706,363 | 8,907,541 | |
Other assets | 476,094 | 476,459 | |
Total assets | 12,075,253 | 12,573,019 | |
Liabilities: | |||
Other borrowings | 216,187 | 226,492 | |
Accounts payable and other liabilities | 122,867 | 159,269 | |
Total liabilities | 10,275,367 | 10,878,885 | |
Stockholders Equity | 1,799,886 | 1,694,134 | $ 1,700,950 |
Total liabilities and stockholders' equity | 12,075,253 | 12,573,019 | |
Holding Company [Member] | |||
ASSETS | |||
Cash and due from banks | 29,074 | 29,103 | |
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 | 236 | 266 | |
Other assets | 4,354 | 4,632 | |
Total assets | 2,016,631 | 1,949,610 | |
Liabilities: | |||
Other borrowings | 216,187 | 226,492 | |
Accounts payable and other liabilities | 558 | 28,984 | |
Total liabilities | 216,745 | 255,476 | |
Stockholders Equity | 1,799,886 | 1,694,134 | |
Total liabilities and stockholders' equity | 2,016,631 | 1,949,610 | |
Holding Company [Member] | Investment In Banking Subsidiary [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | 1,960,090 | 1,888,036 | |
Holding Company [Member] | Non Banking Subsidiary [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | 9,991 | 14,382 | |
Holding Company [Member] | Statutory Trust One [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | 2,929 | 2,929 | |
Holding Company [Member] | Statutory Trust Two [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | $ 3,561 | $ 3,866 |
FIRST BANCORP. (Holding Comp150
FIRST BANCORP. (Holding Company Only) Financial Information - Statements of Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income: | ||||
Interest income on investment securities | $ 11,894 | $ 12,805 | $ 40,065 | $ 40,378 |
Other Interest And Dividend Income | 662 | 410 | 3,006 | 1,457 |
Expense: | ||||
Impairement on equity securities | 6,096 | 0 | 6,104 | 0 |
Gains Losses On Extinguishment Of Debt | 0 | 0 | 4,217 | 0 |
Loss before income taxes and equity in undistributed earnings (losses) of subsidiaries | 34,518 | 19,234 | 93,061 | 8,994 |
Income tax expense | (10,444) | (4,476) | (23,690) | (2,664) |
Net income | 24,074 | 14,758 | 69,371 | 6,330 |
Other comprehensive income (loss), net of tax | (12,157) | 16,709 | 32,109 | 13,681 |
Comprehensive (loss) income | 11,917 | 31,467 | 101,480 | 20,011 |
Holding Company [Member] | ||||
Income: | ||||
Other Interest And Dividend Income | 5 | 5 | 15 | 15 |
Dividend Income From Subsidiaries | 1,822 | 0 | 39,980 | 0 |
Other income | 58 | 58 | 181 | 439 |
Total interest income | 1,885 | 63 | 40,176 | 454 |
Expense: | ||||
Notes payable and other borrowings | 1,817 | 1,861 | 5,777 | 5,521 |
Other operating expenses | 685 | 643 | 2,313 | 2,000 |
Total operating expenses | 2,502 | 2,504 | 8,090 | 7,521 |
Gains Losses On Extinguishment Of Debt | 0 | 0 | 4,217 | 0 |
Loss before income taxes and equity in undistributed earnings (losses) of subsidiaries | (617) | (2,441) | 36,303 | (7,067) |
Equity in undistributed earnings (losses) of subsidiaries | 24,691 | 17,199 | 33,068 | 13,397 |
Net income | 24,074 | 14,758 | 69,371 | 6,330 |
Other comprehensive income (loss), net of tax | (12,157) | 16,709 | 32,109 | 13,681 |
Comprehensive (loss) income | $ 11,917 | $ 31,467 | $ 101,480 | $ 20,011 |
Uncategorized Items - fbp-20160
Label | Element | Value |
Due From Banks | us-gaap_DueFromBanks | $ 518,835,000 |
Due From Banks | us-gaap_DueFromBanks | $ 742,251,000 |