Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 03, 2017 | Jun. 30, 2016 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
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 | 217,509,055 | ||
Entity current reporting status | Yes | ||
Entity well known seasoned issuer | No | ||
Entity public float | $ 501,752,414 | ||
Entity voluntary filers | No |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Cash and due from banks | $ 289,591 | $ 532,985 | |
Money market investments: | |||
Time deposits with other financial institutions | 2,800 | 3,000 | |
Other short-term investments | 7,294 | 216,473 | |
Total money market investments | 10,094 | 219,473 | |
Investment securities available for sale, at fair value: | |||
Securities pledged that can be repledged | 339,390 | 793,562 | |
Other investment securities | 1,542,530 | 1,092,833 | |
Total investment securities available for sale | 1,881,920 | 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 $132,759 (2015- $131,544) | 156,190 | 161,483 | |
Other equity securities | 42,992 | 32,169 | |
Loans, net of allowance for loan and lease losses of $205,603 (2015-$240,710) | 8,681,270 | 8,871,672 | |
Loans held for sale, at lower of cost or market | 50,006 | 35,869 | |
Total loans, net | 8,731,276 | 8,907,541 | |
Premises and equipment, net | 150,828 | 161,016 | |
Other real estate owned | 137,681 | 146,801 | |
Accrued interest receivable on loans and investments | 45,453 | 48,697 | |
Other assets | 476,430 | 476,459 | |
Total assets | 11,922,455 | 12,573,019 | |
LIABILITIES | |||
Non-interest-bearing deposits | 1,484,155 | 1,336,559 | |
Interest-bearing deposits | 7,347,050 | 8,001,565 | |
Total deposits | 8,831,205 | 9,338,124 | |
Securities Sold Under Agreements To Repurchase | [1],[2] | 300,000 | 700,000 |
Advances from the Federal Home Loan Bank (FHLB) | 670,000 | 455,000 | |
Other borrowings | 216,187 | 226,492 | |
Accounts payable and other liabilities | 118,820 | 159,269 | |
Total liabilities | 10,136,212 | 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, 218,700,394 shares (2015 - 216,051,128 shares issued) | 21,870 | 21,605 | |
Less: Treasury stock (at par value) | (125) | (96) | |
Common stock outstanding, 217,446,205 shares outstanding (2015 - 215,088,698 shares outstanding) | 21,745 | 21,509 | |
Additional paid-in capital | 931,856 | 926,348 | |
Retained earnings, includes legal surplus reserve of $52,436 million (2015- $42,798 million ) | 830,928 | 737,922 | |
Accumulated other comprehensive loss, net of tax of $7,752 | (34,390) | (27,749) | |
Total stockholders' equity | 1,786,243 | 1,694,134 | |
Total liabilities and stockholders' equity | $ 11,922,455 | $ 12,573,019 | |
[1] | As of December 31, 2016, includes $200 million that have an average rate of 2.11% and that are callable by lenders before their contractual maturities at various dates beginning on January 19, 2017. Subsequent to December 31, 2016, no lender has exercised its call option on repurchase agreements. In addition, $100 million is tied to variable rates. | ||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for loan and lease losses | $ 205,603 | $ 240,710 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 22,004,000 | 22,004,000 |
Preferred stock, shares outstanding | 1,444,146 | 1,444,146 |
Preferred stock, liquidation value | $ 36,104 | $ 36,104 |
Common stock, par value | $ 0.1 | $ 0.1 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 218,700,394 | 216,051,128 |
Common stock, shares outstanding | 217,446,205 | 215,088,698 |
Income tax expense | $ 37,030 | $ 6,419 |
Legal Surplus Amount | 52,436 | 42,798 |
Held To Maturity Securities Fair Value | 132,759 | 131,544 |
Accumulated Other Comprehensive Income [Member] | ||
Income tax expense | $ 7,752 | $ 7,752 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest incomeand divided income: | |||
Loans | $ 531,022 | $ 548,571 | $ 571,685 |
Investment securities | 50,905 | 54,850 | 60,372 |
Money market investments | 3,365 | 2,148 | 1,892 |
Total interest income | 585,292 | 605,569 | 633,949 |
Interest expense: | |||
Deposits | 67,302 | 69,250 | 78,127 |
Securities sold under agreements to repurchase | 20,203 | 22,431 | 26,989 |
Advances from FHLB | 5,964 | 4,171 | 3,561 |
Other borrowings | 7,705 | 7,451 | 7,199 |
Total interest expense | 101,174 | 103,303 | 115,876 |
Net interest income | 484,118 | 502,266 | 518,073 |
Provision for loan and lease losses | 86,733 | 172,045 | 109,530 |
Net interest income after provision for loan and lease losses | 397,385 | 330,221 | 408,543 |
Non-interest income: | |||
Service charges and fees on deposit accounts | 22,965 | 20,330 | 16,709 |
Mortgage banking activities | 20,435 | 17,217 | 14,685 |
Net gain on sale of investments | 6,104 | 0 | 262 |
Gain from recovery of investments previously written off | 1,547 | 0 | 0 |
Other-than-temporary impairment (OTTI) losses on available-for-sale debt securities: | |||
Total other-than-temporary impairment losses | (1,845) | (35,806) | 0 |
Portion of loss previously recognized in other comprehensive income | (4,842) | 19,289 | (388) |
Net impairment losses on available-for-sale debt securities | (6,687) | (16,517) | (388) |
Gain on early extinguishment of debt | 4,217 | 0 | 0 |
Equity in loss of unconsolidated entity | 0 | 0 | (7,279) |
Insurance commission income | 8,473 | 7,058 | 6,868 |
Bargain purchase gain | 0 | 13,443 | 0 |
Gain on sale of merchant contracts | 0 | 7,000 | 0 |
Other non-interest income | 30,900 | 32,794 | 30,491 |
Total non-interest income | 87,954 | 81,325 | 61,348 |
Non-interest expenses: | |||
Employees' compensation and benefits | 151,493 | 150,059 | 135,422 |
Occupancy and equipment | 55,159 | 59,295 | 58,290 |
Business promotion | 11,419 | 15,234 | 16,531 |
Professional fees | 44,137 | 55,632 | 47,940 |
Taxes, other than income taxes | 15,139 | 12,669 | 18,089 |
Insurance and supervisory fees | 24,920 | 29,021 | 39,131 |
Net loss on other real estate owned (OREO) and OREO operations | 11,533 | 15,788 | 20,596 |
Credit and debit card processing expenses | 13,635 | 16,177 | 15,449 |
Communications | 6,759 | 7,726 | 7,766 |
Other non-interest expenses | 20,886 | 22,229 | 19,039 |
Total non-interest expenses | 355,080 | 383,830 | 378,253 |
Income before income taxes | 130,259 | 27,716 | 91,638 |
Income tax (expense) benefit | (37,030) | (6,419) | 300,649 |
Net income | 93,229 | 21,297 | 392,287 |
Net income attributable to common stockholders | $ 93,006 | $ 21,297 | $ 393,946 |
Net income per common share: | |||
Basic | $ 0.44 | $ 0.1 | $ 1.89 |
Diluted | 0.43 | 0.1 | 1.87 |
Dividends declared per common share | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 93,229 | $ 21,297 | $ 392,287 |
Available-for-sale debt securities on which an other-than-temporary impairment has been recognized: | |||
Unrealized gain (loss) on debt securities on which an other-than-temporary impairment has been recognized | 550 | (16,841) | 1,781 |
Reclassification Adjustement For Other Than Temporary Impairment On Debt Securrities Included In Net Income | 6,687 | 16,517 | 388 |
All other unrealized gains and losses on available-for-sale securities: | |||
All other unrealized holding (losses) gains arising during the year | (7,774) | (9,074) | 58,478 |
Reclassification adjustments for net gain included in net income | (6,104) | 0 | (262) |
Other comprehensive (loss) income for the year | (6,641) | (9,398) | 60,385 |
Total comprehensive income | $ 86,588 | $ 11,899 | $ 452,672 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Cash flows from operating activities: | ||||
Net income | $ 93,229 | $ 21,297 | $ 392,287 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 17,649 | 21,060 | 20,983 | |
Amortization of intangible assets | 4,896 | 5,143 | 4,943 | |
Provision for loan and lease losses | 86,733 | 172,045 | 109,530 | |
Deferred income tax expense (benefit) | 23,879 | 80 | (306,010) | |
Stock-based compensation | 6,876 | 6,037 | 4,221 | |
Gain on sale of investments, net | (6,104) | 0 | (262) | |
Gain on extinguishment of debt | (4,217) | 0 | 0 | |
Other-than-temporary impairments on debt securities | [1] | 6,687 | 16,517 | 388 |
Equity in loss of unconsolidated entity | 0 | 0 | 7,279 | |
Unrealized loss (gain) on derivative instruments | 78 | (164) | (936) | |
Gain on sales of premises and equipment and other assets | (700) | (64) | (21) | |
Net gain on sale of loans | (10,273) | (7,379) | (7,715) | |
Net amortization/accretion of premiums, discounts, and deferred loan fees and costs | (8,819) | (6,229) | (2,431) | |
Originations and purchases of loans held for sale | (488,833) | (428,348) | (311,305) | |
Gain on sale of merchant contracts | 0 | (7,000) | 0 | |
Sales and repayments of loans held for sale | 493,821 | 436,461 | 328,822 | |
Loans held for sale valuation adjustment | 0 | (191) | 0 | |
Bargain purchase gain | 0 | (13,443) | 0 | |
Gain from recovery of investments previously written off | (1,547) | 0 | 0 | |
Amortization of broker placement fees | 2,881 | 4,563 | 6,662 | |
Net amortization/accretion of premiums and discounts on investment securities | 6,890 | 7,046 | 5,417 | |
Decrease in accrued interest receivable | 2,934 | 1,703 | 3,216 | |
Decrease in accrued interest payable | (29,200) | 6,241 | 6,812 | |
Decrease in other assets | 17,716 | 20,625 | 19,724 | |
(Decrease) increase in other liabilities | (15,144) | 5,891 | (17,251) | |
Net cash provided by operating activities | 199,432 | 261,891 | 264,353 | |
Cash flows from investing activities: | ||||
Principal collected on loans | 2,830,830 | 2,969,616 | 3,483,131 | |
Proceeds from sale of loans held for investment | 31,852 | 107,702 | 74,058 | |
Proceeds from sale of repossessed assets | 56,369 | 61,808 | 66,683 | |
Proceeds from sale of available-for-sale securities | 219,780 | 0 | 4,861 | |
Purchases of available-for-sale securities | (619,636) | (250,585) | (170,419) | |
Purchases of held-to-maturity investment securities | 0 | (4,530) | 0 | |
Proceeds from principal repayments and maturities of securities available for sale | 390,286 | 296,950 | 233,046 | |
Proceeds from principal repayments and maturities of securities held to maturity | 5,293 | 5,068 | 4,617 | |
Additions to premises and equipment | (10,370) | (12,456) | (22,262) | |
Proceeds from sale of premises and equipment and other assets | 2,279 | 4,035 | 1,320 | |
Net cash received from acquisition | 0 | 217,659 | 0 | |
Net cash outflows from purchase/sale of insurance contracts | (960) | 0 | 0 | |
Proceeds from sale of merchant contracts | 0 | 10,000 | 0 | |
Net (purchases) redemptions/sales of other equity securities | (10,823) | (6,417) | 2,939 | |
Loans originated and purchased | (2,813,253) | (2,959,871) | (3,423,241) | |
Proceeds From Recovery Of Investments Previously Written Off | 1,547 | 0 | 0 | |
Net cash provided by investing activities | 83,194 | 438,979 | 254,733 | |
Cash flows from financing activities: | ||||
Net decrease in deposits | (542,019) | (673,347) | (402,641) | |
Net FHLB advances proceeds | 215,000 | 130,000 | 25,000 | |
Dividends paid on preferred stock | (223) | 0 | 0 | |
Issuance costs of common stock issued in exchange for preferred stock Series A through E | 0 | 0 | (62) | |
Repurchase of outstanding common stock | (1,132) | (1,173) | (946) | |
Change in securities sold under agreements to repurchase | (400,000) | (200,000) | 0 | |
Repayments of junior subordinated debentures | (7,025) | 0 | 0 | |
Net cash used in financing activities | (735,399) | (744,520) | (378,649) | |
Net decrease in cash and cash equivalents | (452,773) | (43,650) | 140,437 | |
Cash and cash equivalents at beginning of year | 752,458 | 796,108 | 655,671 | |
Cash and cash equivalents at end of year | 299,685 | 752,458 | 796,108 | |
Cash and cash equivalents include: | ||||
Cash and Cash Equivalents, at Carrying Value, Total | $ 752,458 | $ 752,458 | $ 655,671 | |
[1] | (1) For the years ended December 31, 2016 and 2015, approximately $6.3 million and $15.9 million, respectively, of the credit impairment recognized in earnings consisted of credit losses on Puerto Rico government debt securities. The remaining impairment losses were associated with credit losses on private label MBS. |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | ||
Total stockholders' equity | $ 63,047,000 | $ 20,707,000 | $ 888,161,000 | $ 322,679,000 | $ (78,736,000) | |||
Total stockholders' equity | $ 1,671,743,000 | 36,104,000 | 21,298,000 | 888,161,000 | 322,679,000 | (78,736,000) | ||
Balance at beginning of year at Dec. 31, 2013 | 63,047,000 | 20,707,000 | 888,161,000 | 322,679,000 | (78,736,000) | |||
Exchange of preferred stock-Series A through E | (26,022,000) | (26,943,000) | ||||||
Common stock issued in exchange for Series A through E preferred stock | 459,000 | 23,904,000 | ||||||
Restricted Stock Forfeited | (4,000) | 4,000 | ||||||
Restricted stock grants | 122,000 | (122,000) | ||||||
Common stock issued as compensation | 32,000 | (32,000) | ||||||
Common stock withheld for taxes | (18,000) | (928,000) | ||||||
Stock-based compensation | 4,221,000 | |||||||
Excess of carrying amount of Series A through E preferred stock exchanged over fair value of new shares of common stock | 1,659,000 | [1] | 1,659,000 | |||||
Reversal of Issuance cost of Series A through E of preferred stock exchanged | 921,000 | |||||||
Issuance costs of common stock issued in exchange for Series A through E preferred stock | (62,000) | |||||||
Net income | 392,287,000 | 392,287,000 | ||||||
Dividends on preferred stock | 0 | 0 | ||||||
Other comprehensive (loss) income, net of tax | 60,385,000 | 60,385,000 | ||||||
Common stock issued in exchange for trust preferred securities | 0 | 0 | 0 | |||||
Balance at end of year at Dec. 31, 2014 | 1,671,743,000 | 36,104,000 | 21,298,000 | 916,067,000 | 716,625,000 | (18,351,000) | ||
Total stockholders' equity | 1,671,743,000 | 36,104,000 | 21,298,000 | 916,067,000 | 716,625,000 | (18,351,000) | ||
Total stockholders' equity | 1,671,743,000 | 36,104,000 | 21,298,000 | 926,348,000 | 737,922,000 | (27,749,000) | ||
Exchange of preferred stock-Series A through E | 0 | 0 | ||||||
Common stock issued in exchange for Series A through E preferred stock | 0 | 0 | ||||||
Restricted Stock Forfeited | (2,000) | 2,000 | ||||||
Restricted stock grants | 102,000 | (102,000) | ||||||
Common stock issued as compensation | 48,000 | (48,000) | ||||||
Common stock withheld for taxes | (22,000) | (1,151,000) | ||||||
Stock-based compensation | 6,037,000 | |||||||
Excess of carrying amount of Series A through E preferred stock exchanged over fair value of new shares of common stock | [1] | 0 | 0 | |||||
Reversal of Issuance cost of Series A through E of preferred stock exchanged | 0 | |||||||
Issuance costs of common stock issued in exchange for Series A through E preferred stock | 0 | |||||||
Net income | 21,297,000 | 21,297,000 | ||||||
Dividends on preferred stock | 0 | 0 | ||||||
Other comprehensive (loss) income, net of tax | (9,398,000) | (9,398,000) | ||||||
Common stock issued in exchange for trust preferred securities | 5,628,000 | 85,000 | 5,543,000 | |||||
Balance at end of year at Dec. 31, 2015 | 1,694,134,000 | 36,104,000 | 21,509,000 | 926,348,000 | 737,922,000 | (27,749,000) | ||
Total stockholders' equity | 1,694,134,000 | 36,104,000 | 21,509,000 | 926,348,000 | 737,922,000 | (27,749,000) | ||
Total stockholders' equity | 1,786,243,000 | 36,104,000 | 21,745,000 | 926,348,000 | 830,928,000 | (34,390,000) | ||
Exchange of preferred stock-Series A through E | 0 | 0 | ||||||
Common stock issued in exchange for Series A through E preferred stock | 0 | 0 | ||||||
Restricted Stock Forfeited | (3,000) | 3,000 | ||||||
Restricted stock grants | 193,000 | (193,000) | ||||||
Common stock issued as compensation | 75,000 | (75,000) | ||||||
Common stock withheld for taxes | (29,000) | (1,103,000) | ||||||
Stock-based compensation | 6,876,000 | |||||||
Excess of carrying amount of Series A through E preferred stock exchanged over fair value of new shares of common stock | 0 | [1] | 0 | |||||
Reversal of Issuance cost of Series A through E of preferred stock exchanged | 0 | |||||||
Issuance costs of common stock issued in exchange for Series A through E preferred stock | 0 | |||||||
Net income | 93,229,000 | 93,229,000 | ||||||
Dividends on preferred stock | (223,000) | (223,000) | ||||||
Other comprehensive (loss) income, net of tax | (6,641,000) | (6,641,000) | ||||||
Common stock issued in exchange for trust preferred securities | 0 | 0 | 0 | |||||
Balance at end of year at Dec. 31, 2016 | 1,786,243,000 | 36,104,000 | 21,745,000 | 931,856,000 | 830,928,000 | (34,390,000) | ||
Total stockholders' equity | $ 1,786,243,000 | $ 36,104,000 | $ 21,745,000 | $ 931,856,000 | $ 830,928,000 | $ (34,390,000) | ||
[1] | Excess of carrying amount of the Series A through E preferred stock exchanged over the fair value of new common shares issued in 2014. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Text Block] | NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The following is a description of First BanCorp . ’s (“First BanCorp . ” or “the Corporation”) most significant policies: Nature of business First BanCorp. is a publicly owned, Puerto Rico-chartered financial holding company that is subject to reg ulation, supervision, and examination by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). The Corporation is a full service provider of financial services and products with operations in Puerto Rico, the United States, t he U.S. Virgin Islands (USVI), and the British Virgin Islands (BVI). The Corporation provides a wide range of financial services for retail, commercial, and institutional clients. As of December 31, 201 6 , the Corporation controlled two wholly owned subsi diaries: FirstBank Puerto Rico (“FirstBank” or the “Bank”), and FirstBank Insurance Agency, Inc. (“FirstBank Insurance Agency”). FirstBank is a Puerto Rico-chartered commercial bank, and FirstBank Insurance Agency is a Puerto Rico-chartered insurance agen cy. FirstBank is subject to the supervision, examination, and regulation of both the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico (“OCIF”) and the Federal Deposit Insurance Corporation (the “FDIC”). Deposits are insured through the FDIC Deposit Insurance Fund. FirstBank also operates in the state of Florida (USA), subject to regulation and examination by the Florida Office of Financial Regulation and the FDIC, in the USVI, subject to regulation and examination by the United States Virgin Islands Banking Board, and in the BVI, subject to regulation by the British Virgin Islands Financial Services Commission. The Consumer Financial Protection Bureau (“CFBP”) regulates FirstBank’s consumer financial products and serv ices. FirstBank Insurance Agency is subject to the supervision, examination, and regulation of the Office of the Insurance Commissioner of the Commonwealth of Puerto Rico. As of December 31, 2016, FirstBank conducts its business through its main office located in San Juan, Puerto Rico, 48 banking branches in Puerto Rico , 11 branches in the USVI and BVI, and 11 branches in the state of Florida (USA). As of December 31, 2016, FirstBank has 6 wholly owned subsidiaries with operations in Puerto Rico: First Federal Finance Corp. (d/b/a Money Express La Financiera), a finance company specializing in the origination of small loans with 28 offices in Puerto Rico; First Management of Puerto Rico, a domestic corporation, which holds tax-exempt assets; FirstBank Pu erto Rico Securities Corp., a broker-dealer subsidiary engaged in municipal securities underwriting and selling for local Puerto Rico municipal bond issuers and other investment banking activities, such as advisory services, capital raising efforts on beha lf of clients and assistance with financial transaction structuring. FirstBank Overseas Corporation, an international banking entity organized under the International Banking Entity Act of Puerto Rico; and two other companie s that hold and operate certain other real estate owned properties. On February 27, 2015, FirstBank acquired 10 Puerto Rico branches of Doral Bank through an alliance with Banco Popular of Puerto Rico (“Popular”), who was the successful lead bidder with the FDIC on the failed Doral Ban k, as well as other co-bidders (the “Doral Bank transaction”). This transaction is described in more detail in Note 2 – Business Combination, to the consolidated financial statements. Principles of consolidation The consolidated financial statements include the accounts of the Corporation and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Statutory business trusts that are wholly owned by the Corporation and are issuers of trust-preferre d securities, and entities in which the Corporation has a non- controlling interest, are not consolidated in the Corporation’s consolidated financial statements in accordance with authoritative guidance issued by the Financial Accounti ng Standards Board (“F ASB”) for consolidation of variable interest entities (“VIE”) . See “Variable Interest Entities” below for further details regarding the Corporation’s accounting policy for these entities . Reclassifications 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 underwritten 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 securities. T he 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 Corporation concluded that the impact of accounting for the transaction as held-to-maturity 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 financing arrangements have been accounted for and reported as held-to-maturity investment securities and not as loans since the second quarter of 2016. For purposes of comparability, prior period amounts have been reclassified to conform to the 2016 pres entation. Use of estimates in the preparation of financial statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities an d contingent liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management has made significant estimates in several areas , including the allowance for loan and lease losses, valuations of investment securities, the fair value of assets acquired, including purchased credit-impaired (PCI) loans, valuations of residential mortgage servicing rights, valuations of other real esta te owned (“OREO”) properties, and income taxes, including deferred taxes. Cash and cash equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from the Federal Reserve Bank of New York (the “New York FED” or “Federal Reserve”) and other depository institutions. Also includes time deposits, money market funds and short-term investments with original maturities of three months or less. Investment securities The Corporation classifies its investme nts in debt and equity securities into one of four categories: Held-to-maturity — Securities that the entity has the intent and ability to hold to maturity. These securities are carried at amortized cost. The Corporation may not sell or transfer held-to- maturity securities without calling into question its intent to hold other debt securities to maturity, unless a nonrecurring or unusual event that could not have been reasonably anticipated has occurred. Trading — Securities that are bought and held prin cipally for the purpose of selling them in the near term. These securities are carried at fair value, with unrealized gains and losses reported in earnings. As of December 31, 2016 and 2015, the Corporation did not hold investment securities for trading pu rposes. Available-for-sale — Securities not classified as held-to-maturity or trading. These securities are carried at fair value, with unrealized holding gains and losses, net of deferred taxes, reported in other comprehensive income (“OCI”) as a separa te component of stockholders’ equity, and do not affect earnings until they are realized or are deemed to be other-than-temporarily impaired. Other equity securities — Equity securities that do not have readily available fair values are classified as othe r equity securities in the consolidated statements of financial condition. These securities are stated at the lower of cost or realizable value. This category is principally composed of stock that is owned by the Corporation to comply with Federal Home Lo an Bank (FHLB) regulatory requirements. Their realizable value equals their cost. Premiums and discounts on investment securities are amortized as an adjustment to interest income on investments over the life of the related securities under the intere st method. Net realized gains and losses and valuation adjustments considered other-than-temporary, if any, related to investment securities are determined using the specific identification method and are reported in non-interest income as net gain (loss) on sale of investments and net impairment losses on debt securities, respectively. Purchases and sales of securities are recognized on a trade-date basis. Evaluation of other-than-temporary impairment (“OTTI”) on held-to-maturity and available-for-sale securities On a quarterly basis, the Corporation performs an assessment to determine whether there have been any events or economic circumstances indicating that a security with an unrealized loss has suffered an OTTI. A security is considered impaire d if the fair value is less than its amortized cost basis. The Corporation evaluates whether the impairment is other-than-temporary depending upon whether the portfolio consists of debt securities or equity securities, as further described below. The Corporation employs a systematic methodology that considers all available evidence in evaluating a potential impairment of its investments. The impairment analysis of debt securities places special emphasis on the analysis of the cash position of the issuer and its cash and capital generation capacity, which cou ld increase or diminish the issuer’s ability to repay its bond obligations, the length of time and the extent to which the fair value has been less than the amortized cost basis, any adverse change to the credit conditions and liquidity of the issuer, taki ng into consideration the latest information 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 government actions affecting the issuer’s industry and actions taken by the issuer to deal with the economic climate. The Corporation also takes into consideration changes in the near-term prospects of the underlying collateral of a security, if any, such as changes in default rates, loss severit y given 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. OTTI must be recognized in earnings if t he Corporation has the intent to sell the debt security or it is more likely than not that it will be required to sell the debt security before recovery of its amortized cost basis. However, even if the Corporation does not expect to sell a debt security, it must evaluate expected cash flows to be received and determine if a credit loss has occurred. An unrealized loss is generally deemed to be other-than-temporary and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of an OTTI, if any, is recorded as net impairment losses on debt securities in the statements of income, while the remaining portion of the impairment loss is recognize d in OCI, net of taxes, and included as a component of stockholders’ equity provided the Corporation does not intend to sell the underlying debt security and it is more likely than not that the Corporation will not have to sell the debt security prior to r ecovery. The previous amortized cost basis less the OTTI recognized in earnings is the new amortized cost basis of the investment. The new amortized cost basis is not adjusted for subsequent recoveries in fair value. However, for debt securities for whi ch OTTI was recognized in earnings, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted as interest income as long as the security is not placed in non-accrual status. Debt securities held by the Corp oration at year-end primarily consisted of securities issued by U.S. government-sponsored entities, bonds issued by the Puerto Rico government and private label mortgage-backed securities (“MBS”). Given the explicit and implicit guarantees provided by the U.S. Federal government, the Corporation believes the credit risk in securities issued by the U.S. government-sponsored entities is low. The Corporation’s OTTI assessment is concentrated on Puerto Rico government debt securities, with an amortized cost of $42.7 million as of December 31, 2016, and on private label MBS with an amortized cost of $28.8 million as of December 31, 2016. The discounted cash flow analyses applied to the Puerto Rico government debt securities are calculated based on the probability of default and loss severity assumptions. The valuation for private label MBS is derived from a discounted cash flow analysis that considers relevant assumptions such as the prepayment rate, default rate, and loss severity on a loan level basis. For furth er information, refer to Note 5 - Investment Securities, to the consolidated financial statements. The impairment analysis of equity securities is performed and reviewed on an ongoing basis based on the latest financial information and any supporting r esearch report made by a major brokerage firm. This analysis is very subjective and based on, among other things, relevant financial data such as capitalization, cash flow, liquidity, systematic risk, and debt outstanding of the issuer. Management also co nsiders the issuer’s industry trends, the historical performance of the stock and credit ratings, if applicable, as well as the Corporation’s intent to hold the security for an extended period. If management believes there is a low probability of recoverin g book value in a reasonable time frame, it records an impairment by writing the security down to market value. As previously mentioned, equity securities are monitored on an ongoing basis but special attention is given to those securities that have experi enced a decline in fair value for six months or more. An impairment charge is generally recognized when the fair value of an equity security has remained significantly below cost for a period of 12 consecutive months or more. Loans held for investment Loans that the Corporation has the ability and intent to hold for the foreseeable future are classified as held for investment. The substantial majority of the Corporation’s loans are classified as held for investment. Loans are stated at the princip al outstanding balance, net of unearned interest, cumulative charge-offs, unamortized deferred origination fees and costs, and unamortized premiums and discounts. Fees collected and costs incurred in the origination of new loans are deferred and amortized using the interest method or a method that approximates the interest method over the term of the loan as an adjustment to interest yield. Unearned interest on certain personal loans, auto loans and finance leases and discounts and premiums are recognized a s income under a method that approximates the interest method. When a loan is paid-off or sold, any unamortized net deferred fee (cost) is credited (charged) to income. Credit card loans are reported at their outstanding unpaid principal balance plus uncol lected billed interest and fees net of amounts deemed uncollectible. Purchased credit-impaired (“PCI”) loans are reported net of any remaining purchase accounting adjustments. See “Loans Acquired” below for the accounting policy for PCI loans. Non-Perfor ming and Past-Due Loans - Loans on which the recognition of interest income has been discontinued are designated as non-performing. Loans are classified as non-performing when they are 90 days past due for interest and principal, with the exception of res idential mortgage loans guaranteed by the Federal Housing Administration (the “FHA”) or the Veterans Administration (the “VA”) and credit cards. It is the Corporation’s policy to report delinquent mortgage loans insured by the FHA or guaranteed by the VA a s loans past due 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. However, the Corporation discontinues the recognition of income for FHA/VA loans when such loans are over 15 months delinquent. As permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”), credit card loans are generally charged off in the period in which the account becomes 180 days past due. Credit card loans continue to accrue f inance charges and fees until charged off at 180 days. Loans generally may be placed on non-performing status prior to when required by the policies described above when the full and timely collection of interest or principal becomes uncertain (generally b ased on an assessment of the borrower’s financial condition and the adequacy of collateral, if any). When a loan is placed on non-performing status, any accrued but uncollected interest income is reversed and charged against interest income and amortizatio n of any net deferred fees is suspended. Interest income on non-performing loans is recognized only to the extent it is received in cash. However, when there is doubt regarding the ultimate collectability of loan principal, all cash thereafter received is applied to reduce the carrying value of such loans (i.e., the cost recovery method). Generally, the Corporation returns a loan to accrual status when all delinquent interest and principal becomes current under the terms of the loan agreement, or after a su stained period of repayment performance (6 months) and the loan is well secured, is in the process of collection, and full repayment of the remaining contractual principal and interest is expected. PCI loans are not reported as non-performing as these loan s were written down to fair value at the acquisition date and the accretable yield is recognized in interest income over the remaining life of the loans. Loans that are past due 30 days or more as to principal or interest are considered delinquent, with th e exception of residential mortgage, commercial mortgage, and construction loans, which are considered past due when the borrower is in arrears on two or more monthly payments. Impaired Loans - A loan is considered impaired when, based upon current inform ation and events, it is probable that the Corporation will be unable to collect all amounts due (including principal and interest) according to the contractual terms of the loan agreement, or the loan has been modified in a Troubled Debt Restructuring (“TD R”). Loans with insignificant delays or insignificant shortfalls in the amounts of payments expected to be collected are not considered to be impaired. The Corporation evaluates individually for impairment those loans in the construction, commercial mortga ge, commercial and industrial and marine financing portfolios with a principal balance of $1 million or more. Loans in the Construction, Commercial mortgage, and Commercial and Industrial portfolios that originally met the Corporation’s threshold for impai rment evaluation but due to charge-offs or payments are currently below the $1 million threshold and are still 90 days past due, except TDR’s, are accounted for under the Corporation’s general reserve. Although the accounting authoritative guidance for a s pecific impairment of a loan excludes large groups of smaller balance homogeneous loans that are collectively evaluated for impairment (e.g. mortgage and consumer loans), it specifically requires that loan modifications considered TDR be analyzed under its provision. The Corporation also evaluates for impairment purposes certain residential mortgage loans and home equity lines of credit with high delinquency and loan to value levels. Held-for-sale loans are not reported as impaired, as these loans are recor ded at the lower of cost or fair value. The Corporation generally measures impairment and the related specific allowance for individually impaired loans based on the difference between the recorded investment of the loan and the present value of t he loans’ expected future cash flows, discounted at the effective original interest rate of the loan at the time of modification, or the loan’s observable market price. If the loan is collateral dependent, the Corporation measures impairment based upon the fair value of the underlying collateral, instead of discounted cash flows, regardless of whether foreclosure is probable. Loans are identified as collateral dependent if the repayment is expected to be provided solely by the underlying collateral, through liquidation or operation of the collateral. When the fair value of the collateral is used to measure impairment on an impaired collateral-dependent loan and repayment or satisfaction of the loan is dependent on the sale of the collateral, the fair value o f the collateral is adjusted to consider estimated costs to sell. If repayment is dependent only on the operation of the collateral, the fair value of the collateral is not adjusted for estimated costs to sell. If the fair value of the loan is less than th e recorded investment, the Corporation recognizes impairment by either a direct write-down or establishing a specific allowance for the loan or by adjusting the specific allowance for the impaired loan. For an impaired loan that is collateral dependent, ch arge-offs are taken in the period in which the loan, or a portion of the loan, is deemed uncollectible, and any portion of the loan not charged off is adversely credit-risk rated at a level no worse than substandard. A restructuring of a loan constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. TDR loans typically result from the Corpo ration’s loss mitigation activities and residential mortgage loans modified in accordance with guidelines similar to those of the U.S. government’s Home Affordable Modification Program, and could include rate reductions to a rate that is below market on th e loan, principal forgiveness, term extensions, payment forbearance, refinancing of any past-due amounts, including interest, escrow, and late charges and fees, and other actions intended to minimize the economic loss and to avoid foreclosure or repossessi on of collateral. Residential mortgage loans for which a binding offer to restructure has been extended are also classified as TDR loans. PCI loans are not classified as TDR. TDR loans are classified as either accrual or nonaccrual. Loans in accrual status may remain in accrual status when their contractual terms have been modified in a TDR if the loans had demonstrated performance prior to the restructuring and payment in full under the restructured terms is expected. Otherwise, a loan on nonaccrual status and restructured as a TDR will remain on nonaccrual status until the borrower demonstrates a sustained period of performance (generally six consecutive months of payments, inclusive of consecutive payments made prior to the modification), and there is evidence that such payments can and are likely to continue as agreed. Refer to Note 8 – Loans Held for Investment, to the consolidated financial statements for additional qualitative and quantitative information about TDR loans. In connection with commercial loan restructurings, the decision to maintain a loan that has been restructured on accrual status is based on a current, well-documented credit evaluation of the borrower’s financial condition and prospects for repayment under the modified terms . The credit evaluation reflects consideration of the borrower’s future capacity to pay, which may include evaluation of cash flow projections, consideration of the adequacy of collateral to cover all principal and interest, and trends indicating improving profitability and collectability of receivables. This evaluation also includes an evaluation of the borrower’s current willingness to pay, which may include a review of past payment history, an evaluation of the borrower’s willingness to provide informati on on a timely basis, and consideration of offers from the borrower to provide additional collateral or guarantor support. The evaluation of mortgage and consumer loans for restructurings includes an evaluation of the client’s disposable income an d credit report, the value of the property, the loan-to-value relationship, and certain other client-specific factors that have impacted the borrower’s ability to make timely principal and interest payments on the loan. In connection with residential and c onsumer restructurings, a nonperforming loan will be returned to accrual status when current as to principal and interest, under the revised terms, and upon sustained historical repayment performance. The Corporation removes loans from TDR classif ication, consistent with authoritative guidance that allows for a TDR to be removed from this classification in years following the modification, only when the following two circumstances are met: (i)The loan is in compliance with the terms of the restruc turing agreement and, therefore, is not considered impaired under the revised terms; and (ii)The loan yields a market interest rate at the time of the restructuring. In other words, the loan was restructured with an interest rate equal to or greater than what the Corporation would have been willing to accept at the time of the restructuring fo r a new loan with comparable risk. If both of the conditions are met, the loan can be removed from the TDR classification in calendar years after the year in which the restructuring took place. However, the loan continues to be individually evalua ted for impairment. Loans classified as TDRs, including loans in trial payment periods (trial modifications), are considered impaired loans. With respect to loan splits, generally, Note A of a loan split is restructured under market terms, and No te B is fully charged off. If Note A is in compliance with the restructured terms in years following the restructuring, Note A will be removed from the TDR classification and continues to be individually evaluated for impairment. Refer to Note 8 – Loans H eld for Investment, to the consolidated financial statements for additional information about loan splits. A loan that had previously been modified in a TDR and is subsequently refinanced under current underwriting standards at a market rate with no concessionary terms is accounted for as a new loan and is no longer reported as a TDR. Interest income on impaired loans is recognized based on the Corporation’s policy for recognizing interest on accrual and non-accrual loans. Loans Acquired - All purchased loans are recorded at fair value at the date of acquisition. Loans acquired with evidence of credit deterioration since their origination and where it is probable at the date of acquisition that the Corporation will not collect all contrac tually required principal and interest payments are considered PCI loans. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due and non-accrual status, credit scores, and revised loan terms. PCI loans have been aggregated into pools based on common risk characteristics. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. In accounting for PCI loans, the difference between contractual ly required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. The nonaccretable difference, which is neither accreted into income nor recorded on the consolidated statements of financial con dition, reflects estimated future credit losses expected to be incurred over the life of the pool of loans. The excess of cash flows expected to be collected over the estimated fair value of PCI loans is referred to as the accretable yield. This amount is not recorded on the statements of financial condition, but is accreted into interest income over the remaining life of the pool of loans, using the effective-yield method. Subsequent to acquisition, the Corporation continues to estimate cash flows exp ected to be collected over the life of the PCI loans using models that incorporate current key assumptions such as default rates, loss severity, and prepayment speeds. Decreases in expected cash flows will generally result in an impairment charge to the pr ovision for loan and lease losses and the establishment of an allowance for loan and lease losses. Increases in expected cash flows will generally result in a reduction in any allowance for loan and lease losses established subsequent to acquisition and an increase in the accretable yield. The adjusted accretable yield is recognized in interest income over the remaining life of the pool of loans. Resolutions of loans may include sales of loans to third parties, receipt of payments in settlement with the borrower, or foreclosure of the collateral. The Corporation’s policy is to remove an individual loan from a pool at its relative carrying amount. The carrying amount is defined as the loan’s current contractually required payments receivable less its remaining nonaccretable difference and accretable yield, but excluding any post-acquisition loan loss allowance. To determine the carrying value, the Corporation performs a pro-rata allocation of the pool’s total remaining nonaccretable difference and accr etable yield to an individual loan in proportion to the loan’s current contractually required payments receivable compared to the pool’s total contractually required payments receivable. This removal method assumes that the amount received from resolution approximates pool performance expectations. The remaining accretable yield balance is unaffected and any material change in the remaining effective yield caused by this removal method is addressed by the Corporation’s quarterly cash flow evaluation proces s for each pool. Modified PCI loans are not removed from a pool even if those loans would otherwise be deemed TDRs. Because the initial fair value of PCI loans recorded at acquisition includes an estimate of credit losses expected to be realized ove r the remaining lives of the loans, the Corporation separately tracks and reports PCI loans and excludes these loans from its delinquency and non-performing loan statistics. For acquired loans that are not deemed impaired at acquisition, subsequent to acquisition, the Corporation recognizes the difference between the initial fair value at acquisition and the undiscounted expected cash flows in interest income over the period in which substantially all of the inherent losses associated with the non-PC I loans at the acquisition date are estimated to occur. Thus, such loans are accounted for consistently with other originated loans, potentially being classified as nonaccrual or impaired, as well as being classified under the Corporation’s standard practi ce and procedures. In addition, these loans are considered in the determination of the allowance for loan losses. Charge-off of Uncollectible Loans - Net charge-offs consist of the unpaid principal balances of loans held for investment that the Cor poration determines are uncollectible, net of recovered amounts. Charge-offs are recorded as a reduction to the allowance for loan and lease losses and subsequent recoveries of previously charged off amounts are credited to the allowance for loan and lease losses. Collateral dependent loans in the construction, commercial mortgage, and commercial and industrial loan portfolios are charged off to their net realizable value (fair value of collateral, less estimated costs to sell) when loans are considered to be uncollectible. Within the consumer loan portfolio, auto loans and finance leases are reserved once they ar |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2016 | |
Business Combination Description [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 2 – BUSINESS COMBINATION The Corporation made no acquisitions or mergers during the year ended December 31, 2016. On February 27, 201 5 , FirstBank acquired 10 Puerto Rico branches of Doral Bank, assumed $ 522.7 million in deposits related to such branches, acquired loans that had an approximate principal balance of $ 324.8 million, primarily residential mortgage loans, acquired $ 5.5 million of property, plant and equipment and received $ 217.7 million of cash, thr ough an alliance with Popular, who was the successful lead bidder with the FDIC on the failed Doral Bank, as well as other co-bidders. This transaction solidified FirstBank as the second largest bank in Puerto Rico, enhanced FirstBank’s presence in geograp hical areas in Puerto Rico with growth potential for deposits and mortgage originations (two of the main business strategies of FirstBank), and provided a stable source of low-cost deposits. Under the FDIC’s bidding format, Popular was the lead bidder and party to the purchase and assumption agreement with the FDIC covering all assets and deposits to be acquired by Popular and its alliance co-bidders. Popular entered into back to back purchase assumption agreements with the alliance co-bidders, including F irstBank, for the transferred assets and deposits. There is no loss-share arrangement with the FDIC related to the acquired assets, meaning that FirstBank assumed all losses with respect to such assets, with no financial assistance from the FDIC. The Corporation accounted for this transaction as a business combination. The following table identifies the fair values of assets acquired and liabilities assumed from Doral Bank on February 27, 2015: Asset/Liabilities (at Fair Value) (In thousands) ASSETS Cash $ 217,659 Loans 311,410 Premises and equipment, net 5,450 Core Deposit Intangible 5,820 Total assets acquired 540,339 LIABILITIES Deposits 523,517 Other liabilities 3,379 Net assets - Bargain purchase gain $ 13,443 The application of the acquisition method of accounting resulted in a bargain purchase gain of $13.4 million, which is included in non-interest income in the Corporation’s consolidated statement of income for the year ended December 31, 2015, and a core deposit intangible of $5.8 million ($4.4 million - December 31, 2016; $5.1 million – December 31, 2015). Before the bargain purchase gain recognition, the Corporation reassessed whether all of the assets acquired and liabilities assumed had been appropriat ely identified, recognized and measured. The net after-tax gain of $ 8.2 million represents the excess of the estimated fair value of the assets acquired (including cash payments received from the FDIC) over the estimated fair value of the liabilities assum ed. The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above: Cash and due from banks – The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets. This balance primarily represents the cash settlement received from Popular for the net equity received, the discount bid for the assets and other customary closing adjustments. Loans – Fair values for loans were based on a discounted cash flow methodology that uses market-driven assumptions such as prepayment rate, default rate, and loss severity on a loan level basis. The forecasted cash flows are then discounted by yields observed in sales of similar portfolios in Pu erto Rico and the continental U.S. The Corporation evaluated the residential mortgage loans acquired and determined that $ 227.9 million were non-credit impaired purchased loans, which were accounted for in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Costs , and were recorded with a premium of $ 1.3 million. The remaining approximately $ 93.3 million of residential mortgage loans were considered purchased credit impaired loans within the provisions of FASB ASC Topic 3 10-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality , and were recorded with a $ 13.4 million discount. These purchased credit impaired loans recognize interest income through accretion of the difference between the fair value of the l oans and the expected cash flows. Core deposit intangible – This intangible asset represents the value of the relationships that Doral Bank had with its deposit customers. The fair value of this intangible asset was estimated based on a discounted cash f low methodology that gave appropriate consideration to expected customer attrition rates, the cost of the deposit base, and the net maintenance cost attributable to customer deposits. The Corporation recorded at acquisition $5.8 million of core deposit int angible. Deposits – The fair values used for the demand and savings deposits that comprise the transaction accounts acquired, by definition, equal the amounts payable on demand at the acquisition date. A fair value adjustment of $ 0.8 million was applied for time deposits because the estimated weighted-average interest rate of the assumed certificates of deposits was estimated to be above the then prevailing market rates . ASC Topic 805 requires the measurement of all recognized assets acquired and liab ilities assumed in a business combination at their acquisition-date fair values. Accordingly, the Corporation initially recorded amounts for the fair values of the assets acquired and liabilities assumed based on the best information available at the acqui sition date. The Corporation could retrospectively adjust these amounts to reflect new information obtained during the measurement period (not to exceed 12 months) about facts and circumstances that existed as of the acquisition date that, if known, would have affected the acquisition-date fair value measurements. No retrospective adjustments to acquisition date fair values were recorded. During 2015, the Corporation incurred $ 4.6 million for acquisition and conversion costs related to loans and deposit a ccounts acquired from Doral Bank that are considered non-recurring in nature, and $ 3.6 million on interim servicing costs until the completion in May 2015 of the conversion to the FirstBank systems. These expenses are primarily included as part of professi onal fees in the consolidated statement of income. The Corporation’s operating results for the year ended December 31, 2015 include the operating results of the acquired assets and assumed liabilities subsequent to the acquisition date. The Corporation al so considered the pro forma requirements of ASC 805 and deemed it not necessary to provide pro forma financial information pursuant to that standard for the Doral Bank transaction as it was not material to the Corporation. |
RESTRICTIONS ON CASH AND DUE FR
RESTRICTIONS ON CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2016 | |
Restrictions on Cash and Due from Banks [Abstract] | |
Restrictions on Cash and Due from Banks [Text Block] | NOTE 3 – RESTRICTIONS ON CASH AND DUE FROM BANKS The Corporation’s bank subsidiary, FirstBank, is required by law to maintain minimum average weekly reserve balances to cover demand deposits. The amount of those minimum average weekly reserve balances for the period that covered December 31, 2016 was $ 276.2 million (2015 — $ 251.7 million). As of December 31, 2016 and 2015, the Bank complied with the requirement. Cash and due from banks as well as other short-term, highly liquid securities are used to cover the required average reserve balances. As of December 31, 2016, and as required by the Puerto Rico International Banking Law, the Corporation maintained $ 300,000 in time deposits, which were considered restricted assets related to FirstBank Overseas Corporation, an international banking entity that i s a subsidiary of FirstBank. |
MONEY MARKET INVESTMENTS
MONEY MARKET INVESTMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Money Market Investments [Abstract] | |
Money Market Investments [Text Block] | N OTE 4 – MONEY MARKET INVESTMENTS Money market investments are composed of time deposits with other financial institutions and short-term investments with original maturities of three months or less. Money market investments as of December 31, 2016 and 2015 were as follows: 2016 2015 (Dollars in thousands) Time deposits with other financial institutions, weighted-average interest rate 0.95% (2015- 0.92%) $ 2,800 $ 3,000 Other short-term investments, weighted-average interest rate of 0.30% (2015 - weighted-average interest rate of 0.34%) 7,294 216,473 $ 10,094 $ 219,473 As of December 31, 2016, the Corporation’s had no money market investments pledged as collateral (2015 - $8.8 million pledged as collateral, primarily related to letters of credit). |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2016 | |
INVESTMENT SECURITIES [Text Block] | NOTE 5 – INVESTMENT SECURITIES Investment Securities Available for Sale The amortized cost, non-credit loss component of OTTI recorded in OCI , gross unrealized gains and losses recorded in OCI, approximate fair value, and weighted- average yield of investment securities available for sale by contractual maturities as of December 31, 2016 and 2015 were as follows: December 31, 2016 Amortized cost Noncredit Loss Component of OTTI Recorded in OCI Gross Fair value Weighted-average yield% Unrealized Gains Losses (Dollars in thousands) U.S. Treasury securities: Due within one year $ 7,508 $ - $ 1 $ - $ 7,509 0.57 Obligations of U.S. government-sponsored agencies: After 1 to 5 years 440,438 - 142 2,912 437,668 1.33 After 5 to 10 years 16,942 - 9 256 16,695 1.91 After 10 years 44,145 - 8 166 43,987 1.12 Puerto Rico government obligations: After 1 to 5 years 21,422 12,222 - - 9,200 - After 10 years 21,245 2,028 73 1,662 17,628 1.86 United States and Puerto Rico government obligations 551,700 14,250 233 4,996 532,687 1.29 Mortgage-backed securities: FHLMC certificates: After 5 to 10 years 5,908 - 72 - 5,980 2.25 After 10 years 314,906 - 261 5,827 309,340 2.17 320,814 - 333 5,827 315,320 2.17 GNMA certificates: After 1 to 5 years 83 - 3 - 86 3.82 After 5 to 10 years 91,744 - 1,635 92 93,287 3.06 After 10 years 123,548 - 9,706 - 133,254 4.36 215,375 - 11,344 92 226,627 3.81 FNMA certificates: Due within one year 152 - 2 - 154 4.71 After 1 to 5 years 24,409 - 435 - 24,844 2.18 After 5 to 10 years 17,181 - - 261 16,920 1.87 After 10 years 690,625 - 4,136 9,406 685,355 2.35 732,367 - 4,573 9,667 727,273 2.33 Collateralized mortgage obligations issued or guaranteed by the FHLMC and GNMA: After 5 to 10 years 19,851 - 4 31 19,824 1.42 After 10 years 39,120 - - 132 38,988 1.44 58,971 - 4 163 58,812 1.43 Other mortgage pass-through trust certificates: After 10 years 28,815 8,122 - - 20,693 2.40 28,815 8,122 - - 20,693 2.40 Total mortgage-backed securities 1,356,342 8,122 16,254 15,749 1,348,725 2.49 Other After 1 to 5 years 100 - - - 100 1.50 Equity securities (1) 415 - - 7 408 2.44 Total investment securities available for sale $ 1,908,557 $ 22,372 $ 16,487 $ 20,752 $ 1,881,920 2.14 (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 Gross Fair value Weighted-average yield% 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 noncredit loss component of OTTI ar e presented as part of OCI. The aggregate amortized cost and approximate market value of investment securities available for sale as of December 31, 2016 by contractual maturity, are shown below: Amortized Cost Fair Value (Dollars in thousands) Within 1 year $ 7,660 $ 7,663 After 1 to 5 years 486,452 471,898 After 5 to 10 years 151,626 152,706 After 10 years 1,262,404 1,249,245 Total $ 1,908,142 $ 1,881,512 Equity securities 415 408 Total investment securities available for sale $ 1,908,557 $ 1,881,920 The following tables show the Corporation’s available-for-sale investments’ fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31, 2016 and 2015. 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 unrealized losses for which OTTI was recognized, the related credit loss was c harged against the amortized cost basis of the debt security. As of December 31, 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 $ - $ - $ 22,609 $ 15,912 $ 22,609 $ 15,912 U.S Treasury and U.S. government agencies obligations 469,046 3,334 - - 469,046 3,334 Mortgage-backed securities: FNMA 519,008 9,667 - - 519,008 9,667 FHLMC 244,839 5,827 - - 244,839 5,827 GNMA 43,388 92 - - 43,388 92 Collateralized mortgage obligations issued or guaranteed by FHLMC and GNMA 55,309 163 - - 55,309 163 Other mortgage pass-through trust certificates - - 20,693 8,122 20,693 8,122 Equity securities 408 7 - - 408 7 $ 1,331,998 $ 19,090 $ 43,302 $ 24,034 $ 1,375,300 $ 43,124 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 Debt securities issued by U.S. government agencies, governm ent-sponsored entities, and the U.S. Treasur y accounted for approximately 97 % of the total available-for-sale portfolio as of December 31, 201 6 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 Puerto Rico g overnment debt securities, with an amortized cost of $ 42.7 mil lion, and on private label MBS with an amortized cost of $ 28.8 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 t he 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 conditions and liquidity of the issuer, taking into consideration the latest information 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 government actions affecting the issuer’s industry and actions taken by th e issuer to deal with the present economic climate; Changes in the near term prospects of the underlying collateral for a security, if any, such as changes in default rates, loss severity given default, and significant changes in prepayment assumptions; an d 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: Year Ended 2016 2015 2014 (In thousands) Total other-than-temporary impairment losses $ (1,845) $ (35,806) $ - Portion of other-than-temporary impairment recognized in OCI (4,842) 19,289 (388) Net impairment losses recognized in earnings (1) $ (6,687) $ (16,517) $ (388) (1) For the years ended December 31, 2016 and 2015, approximately $6.3 million and $15.9 million, respectively, of the credit impairment recognized in earnings consisted of credit losses on Puerto Rico government debt securities. The remaining impairment losses were 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 December 31, recognized in earnings recognized in earnings on December 31, 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 December 31, recognized in earnings recognized in earnings on December 31, 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 $ - $ 15,889 $ - $ 15,889 Private label MBS 5,777 - 628 6,405 Total OTTI credit losses for available-for-sale debt securities $ 5,777 $ 15,889 $ 628 $ 22,294 Cumulative OTTI credit losses recognized in earnings on securities still held Credit impairments Credit impairments December 31, recognized in earnings recognized in earnings on December 31, 2013 on securities not securities that have been 2014 Balance previously impaired previously impaired Balance (In thousands) Available for sale securities Private label MBS $ 5,389 $ - $ 388 $ 5,777 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 government Development Bank for Puerto Rico (“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 fourth quarters of 2015, respectively, and reduced the amortized cost basis of these three Puerto Rico government debt securities to $35.6 million as of December 31, 2016, including accrued interest of $ 0.9 m illion. During 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 issuance of exchange proposals with the Commonwealth’s creditors related to its outstanding bond obligations, the Corporation applied a discounted c ash 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-temp orary impairment. The analysis derives an estimate of value based 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 th e key terms as set forth in the official statements for each security. 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 weighting 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 re spective security's credit rating as of the date of the analysis. 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 purch ase date of each investment. The discounted risk-adjusted 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 analysis, 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, othe r-than-temporary credit-related impairment charges amounting 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 the GDB’s bonds held by the Corporation. Similarly, the Puerto Rico Public Buildings 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 these defaults , the Corporation discontinued income recognition related to, and placed in non-performing status, the bonds of the GDB and the Puerto Rico Public Buildings Authority. As of December 31, 2016, the amortized cost of these bonds, including accrued interest o f $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 $ 20.5 million ($ 9.2 million of GDB bonds and $ 11.3 million of Puerto Rico Public Bui ldings 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 d ebt restructuring process, the Corporation cannot be certain that future impairment charges will not be required against these securities. In addition, during 2016, the Corporation recorded a $ 0.4 million credit-related impairment loss associated with pr ivate label MBS, which are collateralized by fixed-rate mortgages on single-family residential properties in the United States. The interest rate on these private-label MBS is variable, tied to 3-month LIBOR and limited to the weighted-average coupon of th e 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 flow s, 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. Signific ant assumptions in the valuation of the private label MBS were as follows: As of As of December 31, 2016 December 31, 2015 Weighted Weighted Average Range Average Range Discount rate 14.1% 12.88-14.43% 14.5% 14.5% Prepayment rate 13.8% 6.5-22.5% 25% 15.92% - 31.25% Projected Cumulative Loss Rate 4% 0.2-8.6% 4% 0.18% - 6.66% Refer to Note 28 – Fair Value , for additional information about the valuation model for private label MBS. Total proceeds from the sale of securities available for sale during 2016 amounted to approximately $219.8 million, including proceeds of $ 204.8 million on the sale of U.S. agency MBS and $ 15.0 million on the sale of a U.S. Treasury bill. For the year ended December 31, 2016, the Corporation recorded a $ 6.1 million gain on the sale of U.S. agency MBS and an $ 8 thousand gain on the sale of the U.S. Treasury bill. In addition, a $1.5 million gain from recovery of a residual private label CMO previously written off was recorded in 2016. No sales of securities available for sale were completed in 2015. Total proceeds from the sale of securitie s available for sale during 2014 amounted to approximately $4.9 million. The following table states the name s of issuers, and the aggregate amortized cost and market value of the securities of such issue r s, when the aggregate amortized cost of such securities exceeds 10 % of the Corporation’s stockholders’ equity. This information excludes securities of the U.S. and Puerto Rico government. Investments in obligations issued by a state of the U.S. and its political subdivisions and agencies that are payable and secured by the same source of reven ue or taxing authority, other than the U.S. government, are considered securities of a single issuer and include debt and mortgage-backed securities. As of As of December 31, 2016 December 31, 2015 Amortized Amortized Cost Fair Value Cost Fair Value (In thousands) FHLMC $ 399,955 $ 394,249 $ 323,437 $ 322,772 GNMA 254,495 265,615 285,584 301,573 FNMA 849,584 843,818 954,178 953,866 FHLB 231,666 229,792 223,049 219,320 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 December 31, 2016 and December 31, 2015 were as follows: December 31, 2016 Amortized cost Fair value Weighted average yield% Gross Unrealized gains losses Puerto Rico Municipal Bonds: After 1 to 5 years $ 1,136 $ - $ 20 $ 1,116 5.38 After 5 to 10 years 10,741 - 718 10,023 4.47 After 10 years 144,313 - 22,693 121,620 4.74 Total investment securities held to maturity $ 156,190 $ - $ 23,431 $ 132,759 4.73 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 The 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 December 31 , 2016 and 2015: As of December 31, 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 $ - $ - $ 132,759 $ 23,431 $ 132,759 $ 23,431 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 such 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 discou nt 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 quarte r. 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 cred it 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 ass umptions and no individual municipal bond was other-than-temporarily impaired as of December 3 1 , 2016. From time to time, the Corporation has securities held to maturity with an original maturity of three months or less that are considered cash and c ash equivalents and classified as money market investments in the consolidated statements of financial condition. As of December 31, 2016 and 2015, the Corporation had no outstanding securities held to maturity that were classified as cash and cash equiva lents . |
OTHER EQUITY SECURITIES
OTHER EQUITY SECURITIES | 12 Months Ended |
Dec. 31, 2016 | |
OTHER EQUITY SECURITIES [Text Block] | NOTE 6 – OTHER EQUITY SECURITIES Institutions that are members of the FHLB system are required to maintain a minimum investment in FHLB stock. Such minimum is calculated as a percentage of aggregate outstanding mortgages, and an additional investment is required that is calculated as a percentage of total FHLB advances, letters of credit, and the collateralized portion of interest-rate swaps outstanding. The stock is capital stock issued at $ 100 par value. Both stock and cash dividends may b e received on FHLB stock. As of December 31, 2016 and 2015, the Corporation had investments in FHLB stock with a book value of $ 40.8 million and $ 31.3 million, respectively. The net realizable value is a reasonable proxy for the fair value of these i nstruments. Dividend income from FHLB stock for 2016, 2015, and 2014 amounted to $ 1.5 million, $ 1.1 million, and $ 1.2 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 par t of the Federal Home Loan Bank System, a national wholesale banking network of 11 regional , stockholder-owned congressionally chartered banks. The Federal Home Loan Banks are all privately capitalized and operated by their member stockholders. The system is supervised by the Federal Housing Finance Agency, which ensures that the Federal Home Loan Banks operate in a financially safe and sound manner, remain adequately capitalized and able to raise funds in the capital markets, and carry out their housing fi nance mission. The Corporation has other equity securities that do not have a readily available fair value. The carrying value of such securities as of December 31, 2016 and 2015 was $ 2.2 million and $ 0.9 million, respectively. |
INTEREST AND DIVIDEND ON INVEST
INTEREST AND DIVIDEND ON INVESTMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Interest and Dividend on Investments [Abstract] | |
Interest and Dividend on Investments [Text Block] | NOTE 7 – INTEREST AND DIVIDEND ON INVESTMENTS AND MONEY MARKET INSTRUMENTS The following provides information about interest on investments and FHLB dividend income: Year Ended December 31, 2016 2015 2014 (In thousands) Mortgage-backed securities: Taxable $ 11,246 $ 13,520 $ 16,303 Exempt 20,921 23,779 28,606 32,167 37,299 44,909 PR government obligations, U.S. Treasury securities, and U.S. government agencies: Taxable 4,131 2,628 1,357 Exempt 13,145 13,848 12,937 17,276 16,476 14,294 Other investment securities (including FHLB dividends) Taxable 1,462 1,075 1,169 Total interest income on investment securities 50,905 54,850 60,372 Interest on money market instruments: Taxable 2,669 1,490 1,734 Exempt 696 658 158 Total interest income on money market instruments 3,365 2,148 1,892 Total interest and dividend income on investments and money market instruments $ 54,270 $ 56,998 $ 62,264 The following table summarizes the components of interest and dividend income on investments: Year Ended December 31, 2016 2015 2014 (In thousands) Interest income on investment securities and money market investments $ 52,816 $ 55,923 $ 61,095 Dividends on FHLB stock 1,454 1,075 1,169 Total interest income and dividends on investments $ 54,270 $ 56,998 $ 62,264 |
LOANS PORTFOLIO
LOANS PORTFOLIO | 12 Months Ended |
Dec. 31, 2016 | |
LOAN PORTFOLIO [Text Block] | NOTE 7 – LOANS HELD FOR INVESTMENT The following provides information about the loan portfolio held for investment: As of As of December 31, December 31, 2016 2015 (In thousands) Residential mortgage loans, mainly secured by first mortgages $ 3,296,031 $ 3,344,719 Commercial loans: Construction loans 124,951 156,195 Commercial mortgage loans 1,568,808 1,537,806 Commercial and Industrial loans (1) 2,180,455 2,246,513 Total commercial loans 3,874,214 3,940,514 Finance leases 233,335 229,165 Consumer loans 1,483,293 1,597,984 Loans held for investment 8,886,873 9,112,382 Allowance for loan and lease losses (205,603) (240,710) Loans held for investment, net $ 8,681,270 $ 8,871,672 (1) As of December 31, 2016 and 2015, includes $853.9 million and $973.2 million, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. As of December 31, 2016 and 2015, the Corporation had net deferred origination costs on its loan portfolio amounting to $ 4.8 million and $ 6.5 million, respectively. The total loan portfolio is net of unearned income of $ 32.8 million and $ 32.9 million as of December 31, 2016 and 2015, respectively. As of December 31, 2016, the Corporation was servicing residential mortgage loans owned by others aggregating $ 2.7 billion (2015 — $ 2.4 billion), construction and commercial loans owned by others ag gregating $ 0.1 million (2015 — $ 0.1 million), and commercial loan participations owned by others aggregating $ 401.4 million (2015 — $ 364.9 million). Various loans, mainly secured by first mortgages, were assigned as collateral for CDs, individual retireme nt accounts, and advances from the FHLB. Total loans pledged as collateral amounted to $ 2.0 billion as of December 31, 2016 (2015 — $ 2.0 billion). Loans held for investment on which accrual of interest income had been discontinued were as follows: As of As of December 31, December 31, 2016 2015 (In thousands) Non-performing loans: Residential mortgage $ 160,867 $ 169,001 Commercial mortgage 178,696 51,333 Commercial and Industrial 146,599 137,051 Construction: Land 11,026 12,174 Construction-commercial 36,893 39,466 Construction-residential 1,933 2,996 Consumer: Auto loans 14,346 17,435 Finance leases 1,335 2,459 Other consumer loans 8,399 10,858 Total non-performing loans held for investment (1)(2)(3) $ 560,094 $ 442,773 ________________ (1) As of December 31, 2016 and December 31, 2015, excludes $8.1 million of non-performing loans held for sale. (2) Amount excludes PCI loans with a carrying value of approximately $165.8 million and $173.9 million as of December 31, 2016 and 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 $384.9 million and $414.9 million of TDR loans that are in compliance with the modified terms and in accrual status as of December 31, 2016 and 2015, respectively. If these loans were accruing interest, the additional interest income realized would have been $ 43.2 million (2015— $ 37.8 million; 2014 — $ 48.9 million). Loans i n Process o f Foreclosure As of December 31, 2016, the recorded investment of residential mortgage loans collateralized by residential real estate property that are in the process of foreclosure amounted to $ 134.2 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 Financ ial 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 (P uerto R ico ) require the foreclosure to be processed through the state’s court while foreclosure in non-judicial states is processed without court intervention. Foreclosure t imelines vary according to state law and i nvestor g uidelines. Occasionally foreclosures may be delayed due to mandatory mediations, b ankruptcy, court delays and title issues , among other reasons . The Corporation’s aging of the loans held for investment portfolio is as follows: As of December 31, 2016 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due (1) Total Past Due Purchased Credit-Impaired Loans Current Total loans held for investment 90 days past due and still accruing (In thousands) Residential mortgage: FHA/VA and other government-guaranteed loans (2) (3) (4) $ - $ 5,179 $ 77,052 $ 82,231 $ - $ 44,627 $ 126,858 $ 77,052 Other residential mortgage loans (4) - 94,004 177,568 271,572 162,676 2,734,925 3,169,173 16,701 Commercial: Commercial and Industrial loans 14,195 3,724 151,967 169,886 - 2,010,569 2,180,455 5,368 Commercial mortgage loans (4) - 4,534 181,977 186,511 3,142 1,379,155 1,568,808 3,281 Construction: Land (4) - 436 11,504 11,940 - 19,826 31,766 478 Construction-commercial - - 36,893 36,893 - 40,582 77,475 - Construction-residential (4) - - 1,933 1,933 - 13,777 15,710 - Consumer: Auto loans 57,142 13,523 14,346 85,011 - 762,947 847,958 - Finance leases 7,714 1,671 1,335 10,720 - 222,615 233,335 - Other consumer loans 7,675 5,254 12,328 25,257 - 610,078 635,335 3,929 Total loans held for investment $ 86,726 $ 128,325 $ 666,903 $ 881,954 $ 165,818 $ 7,839,101 $ 8,886,873 $ 106,809 (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 $29.3 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, 2016. (3) As of December 31, 2016, includes $43.7 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 and other 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, 2016 amounted to $9.9 million, $142.8 million, $4.6 million, $0.7 million, and $0.4 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 Past Due Purchased Credit-Impaired Loans Current Total loans held for investment 90 days past due and still accruing (In thousands) 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 and other 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 December 31, 2016 and 2015 are summarized below: Commercial Credit Exposure-Credit Risk Profile based on Creditworthiness Category: Substandard Doubtful Loss Total Adversely Classified (1) Total Portfolio December 31, 2016 (In thousands) Commercial Mortgage $ 193,391 $ 35,416 $ - $ 228,807 $ 1,568,808 Construction: Land 19,345 - - 19,345 31,766 Construction-commercial 36,893 - - 36,893 77,475 Construction-residential 1,933 - - 1,933 15,710 Commercial and Industrial 133,599 67,996 784 202,379 2,180,455 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 of non-performing loans held for sale as of December 31, 2016 and 2015. 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 a sset is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will su stain some loss if the deficiencies are not corrected. Doubtful - Doubtful classifications have all of the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. A Doubtful classification may be appropriate in cases where significant risk exposures are perceived, but l oss cannot be determined because of specific reasonable p ending 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 a sset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. There is little or no prospect for near term improvement and no realistic strengthening action of significance pending. December 31, 2016 Consumer Credit Exposure-Credit Risk Profile Based on Payment Activity Residential Real-Estate Consumer FHA/VA/ Guaranteed (1) Other residential loans Auto Finance Leases Other Consumer (In thousands) Performing $ 126,858 $ 2,845,630 $ 833,612 $ 232,000 $ 626,936 Purchased Credit-Impaired (2) - 162,676 - - - Non-performing - 160,867 14,346 1,335 8,399 Total $ 126,858 $ 3,169,173 $ 847,958 $ 233,335 $ 635,335 (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. This balance includes $29.3 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, 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. December 31, 2015 Consumer Credit Exposure-Credit Risk Profile Based on Payment Activity Residential Real-Estate Consumer FHA/VA/ Guaranteed (1) Other residential loans Auto Finance Leases Other Consumer (In thousands) Performing $ 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. This balance includes $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 , a s discussed below : Impaired Loans Recorded Investment Unpaid Principal Balance Related Specific Allowance Average Recorded Investment Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis (In thousands) As of December 31, 2016 With no related allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 67,996 82,602 - 71,003 741 731 Commercial: Commercial mortgage loans 72,620 91,685 - 80,713 940 550 Commercial and Industrial loans 14,656 24,642 - 17,209 42 - Construction: Land 180 233 - 212 2 2 Construction-commercial - - - - - - Construction-residential 956 1,531 - 956 - - Consumer: Auto loans 599 599 - 615 7 - Finance leases 94 94 - 95 1 - Other consumer loans 4,516 5,876 - 4,696 233 106 $ 161,617 $ 207,262 $ - $ 175,499 $ 1,966 $ 1,389 With an allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 374,271 423,648 8,633 380,273 17,751 1,503 Commercial: Commercial mortgage loans 121,771 133,883 26,172 122,609 463 173 Commercial and Industrial loans 138,887 165,399 22,638 149,153 589 1,287 Construction: Land 14,870 19,918 947 15,589 168 49 Construction-commercial 36,893 38,721 324 38,191 - - Construction-residential 392 551 134 392 - - Consumer: Auto loans 24,276 24,276 3,717 26,562 1,813 - Finance leases 2,553 2,553 71 2,751 202 - Other consumer loans 12,375 12,734 1,785 13,322 1,143 48 $ 726,288 $ 821,683 $ 64,421 $ 748,842 $ 22,129 $ 3,060 Total: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 442,267 506,250 8,633 451,276 18,492 2,234 Commercial: Commercial mortgage loans 194,391 225,568 26,172 203,322 1,403 723 Commercial and Industrial loans 153,543 190,041 22,638 166,362 631 1,287 Construction: Land 15,050 20,151 947 15,801 170 51 Construction-commercial 36,893 38,721 324 38,191 - - Construction-residential 1,348 2,082 134 1,348 - - Consumer: Auto loans 24,875 24,875 3,717 27,177 1,820 - Finance leases 2,647 2,647 71 2,846 203 - Other consumer loans 16,891 18,610 1,785 18,018 1,376 154 $ 887,905 $ 1,028,945 $ 64,421 $ 924,341 $ 24,095 $ 4,449 Recorded Investment Unpaid Principal Balance Related Specific Allowance Average Recorded Investment Interest Income Recognized Accrual Basis Interest Income Recognized Cash Basis (In thousands) As of December 31, 2015 With no related allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 65,495 74,146 - 67,282 558 688 Commercial: Commercial mortgage loans 54,048 66,448 - 54,967 1,329 832 Commercial and Industrial loans 27,492 29,957 - 28,326 - 693 Construction: Land - - - - - - Construction-commercial 39,466 40,000 - 39,736 - - Construction-residential 3,046 3,046 - 3,098 164 - Consumer: Auto loans - - - - - - Finance leases - - - - - - Other consumer loans 2,618 4,300 - 2,766 21 115 $ 192,165 $ 217,897 $ - $ 196,175 $ 2,072 $ 2,328 With an allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 395,173 440,947 21,787 398,790 17,543 1,640 Commercial: Commercial mortgage loans 27,479 40,634 3,073 30,518 347 501 Commercial and Industrial loans 143,214 164,050 18,096 148,547 2,338 1,939 Construction: Land 9,578 13,758 1,060 9,727 44 70 Construction-commercial - - - - - - Construction-residential 1,426 2,180 142 1,476 - - Consumer: Auto loans 21,581 21,581 6,653 23,531 1,494 - Finance leases 2,077 2,077 86 2,484 170 - Other consumer loans 13,816 14,043 1,684 14,782 1,592 25 $ 614,344 $ 699,270 $ 52,581 $ 629,855 $ 23,528 $ 4,175 Total: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 460,668 515,093 21,787 466,072 18,101 2,328 Commercial: Commercial mortgage loans 81,527 107,082 3,073 85,485 1,676 1,333 Commercial and Industrial loans 170,706 194,007 18,096 176,873 2,338 2,632 Construction: Land 9,578 13,758 1,060 9,727 44 70 Construction-commercial 39,466 40,000 - 39,736 - - Construction-residential 4,472 5,226 142 4,574 164 - Consumer: Auto loans 21,581 21,581 6,653 23,531 1,494 - Finance leases 2,077 2,077 86 2,484 170 - Other consumer loans 16,434 18,343 1,684 17,548 1,613 140 $ 806,509 $ 917,167 $ 52,581 $ 826,030 $ 25,600 $ 6,503 The following tables show the activity for impaired loans during 2016, 2015 and 2014 and the related specific reserves: 2016 2015 2014 (In thousands) Impaired Loans: Balance at beginning of year $ 806,509 $ 945,407 $ 919,112 Loans determined impaired during the year 288,202 160,837 306,390 Charge-offs (1) (67,210) (99,023) (106,154) Loans sold, net of charge-offs (8,675) (67,836) (4,500) Reclassification from loans held for sale - 40,005 - Increases to impaired loans - additional disbursements 3,236 3,340 5,028 Foreclosures (36,161) (57,728) (40,582) Loans no longer considered impaired (27,643) (46,489) (22,333) Paid in full or partial payments (70,353) (72,004) (111,554) Balance at end of year $ 887,905 $ 806,509 $ 945,407 (1) For the year ended December 31, 2016, includes $4.2 million of charge-offs related to impaired loans included in a sale of a $16.3 million pool of non-performing assets and, for the year ended December 31, 2015, includes $63.9 million of charge-offs related to a bulk sales of assets, as further discussed below. (In thousands) 2016 2015 2014 Specific Reserve: Balance at beginning of year $ 52,581 $ 55,205 $ 102,601 Provision for loan losses 78,695 91,515 58,758 Net charge-offs (66,855) (94,139) (106,154) Balance at end of year $ 64,421 $ 52,581 $ 55,205 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 acquisitions 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 satisfaction of secured borrowings owed by such entity to FirstBank . Under ASC 310-30, the acquired PCI loans were aggregated into pools based on similar chara cteristics (i.e. delinquency status and loan terms). Each loan pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Since the loans are accounted for by the Corporation under ASC 310-30, they are not considered non-performing and will continue to have an accretable yield as long as there is a reasonable expectation about the timing and amount of cash flows expected to be collected. The Corporation recognizes additional losses on this portf olio when it is probable that the Corporation will be unable to collect all cash flows expected as of the acquisition date plus additional cash flows expected to be collected arising from changes in estimates after the acquisition date. The carrying amount of PCI loans follows: As of As of December 31, December 31, 2016 2015 (In thousands) Residential mortgage loans $ 162,676 $ 170,766 Commercial mortgage loans 3,142 3,147 Total PCI loans $ 165,818 $ 173,913 Allowance for loan losses (6,857) (3,962) Total PCI loans, net of allowance for loan losses $ 158,961 $ 169,951 The following tables present PCI loans by past due status as of December 31, 2016 and 2015: As of December 31, 2016 30-59 Days 60-89 Days 90 days or more Total Past Due Total PCI loans Current (In thousands) Residential mortgage loans $ - $ 11,892 $ 27,849 $ 39,741 $ 122,935 $ 162,676 Commercial mortgage loans - 355 1,150 1,505 1,637 3,142 Total (1) $ - $ 12,247 $ 28,999 $ 41,246 $ 124,572 $ 165,818 _____________ (1) According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage and commercial mortgage loans are considered past due when the borrower is in arrears two or more monthly payments. PCI residential mortgage loans and commercial mortgage loans past due 30-59 days as of December 31, 2016 amounted to $22.3 million and $0.1 million, respectively. As of December 31, 2015 30-59 Days 60-89 Days 90 days or more Total Past Due Total PCI loans Current (In thousands) Residential mortgage loans $ - $ 16,094 $ 22,218 $ 38,312 $ 132,454 $ 170,766 Commercial mortgage loans - - 992 992 2,155 3,147 Total (1) $ - $ 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 Fair Value and Accretable Yield of PCI Loans At acquisition, the Corporation estimated the cash flows the Corporation expected to collect on PCI loans. Under the accounting guidance for PCI loans, the difference between the contractually required payments and the cash flows expected to be collected at acquisition is referred to as the non-accretable difference. This difference is neither accreted into income nor recorded on the Corporation’s consolidated statements of financial condition. The exce ss of cash flows expected to be collected over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loans, using the effective-yield method. Changes in accretable yield of acquired loans Subsequent to the 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 from non-accretable yield to accretable yield. Increases in the cash flows expected to be collected will gene rally result in an increase in interest income over the remaining life of the loan or pool of loans. Decreases in expected cash flows due to further credit deterioration will generally result in an impairment charge recognized in the Corporation’s provisio n for loan and lease losses, resulting in an increase to the allowance for loan and lease losses. During 201 6 , the Corporation increased by $ 2.9 million the reserve related to PCI loans acquired from Doral Financial in 2014. The reserve is driven by the re visions to the expected cash flows of the portfolio for the remaining term of the loan pool based on expected performance and market conditions . Changes in the accretable yield of PCI loans for the years ended December 31, 2016 and 2015 were as follows: December 31, 2016 December 31, 2015 (In thousands) Balance at beginning of year $ 118,385 $ 82,460 Additions (accretable yield at acquisition of loans from Doral) - 38,319 Accretion recognized in earnings (11,533) (11,188) Reclassification from non-accretable 9,610 8,794 Balance at end of period $ 116,462 $ 118,385 Changes in the carrying amount of loans accounted for pursuant to ASC 310-30 follows: Year ended Year ended December 31, 2016 December 31, 2015 (In thousands) Balance at beginning of period $ 173,913 $ 102,604 Additions (1) - 79,889 Accretion 11,533 11,188 Collections (17,184) (19,572) Foreclosures (2,444) (196) Ending balance $ 165,818 $ 173,913 Allowance for loan losses (6,857) (3,962) Ending balance, net of allowance for loan losses $ 158,961 $ 169,951 (1) For the year ended December 31, 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: Year ended December 31, 2016 December 31, 2015 Balance at beginning of period $ 3,962 $ - Provision for loan losses 2,895 3,962 Balance at end of period $ 6,857 $ 3,962 The outstanding principal balance of PCI loans, including amounts charged off by the Corporation, amounted to $ 207.3 million as of December 31, 2016 (December 31, 2015- $ 218.1 million, December 31, 2014- $ 135.5 million). Purchases and Sales of Loans During 2016, the Corporation purchased $ 85.0 million of residential mortgage loans, consistent with a 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 res idential mortgage loans provide the Corporation the flexibility to retain or sell the loans, including through securitization transactions, depending upon the Corporation’s interest rate risk management strategies. When the Corporation sells such loans, it generally keeps the servicing of the loans. In the ordinary course of business, the Corporation sells residential mortgage loans (originated or purchased) to GNMA and GSEs such as FNMA and FHLMC, which generally securitize the transferred loans into mor tgage-backed securities for sale into the secondary market. The Corporation sold approximately $ 144.3 million of performing residential mortgage loans to FNMA and FHLMC during 2016. Also during 2016, the Corporation sold approximately $ 338.3 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 breache s 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 establi shed 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 Corp oration the ability, but not the obligation, to repurchase the delinquent loans at par without prior authorization from GNMA. Under ASC Topic 860, Transfers and Servicing , once the Corporation has the unilateral ability to repurchase the delinquent loa n, 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 2016, 2015, and 2014, the Corporation repurchased, pursuant to its repurchase option with GNMA $ 29.1 million, $ 19.2 million, and $ 37.8 million, respectively, of loans previously sold to GNMA. The principal balance of these loans is fully guaranteed and the risk of loss re lated 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 debentur e rate. Repurchases of GNMA loans allow the Corporation, among other things, to maintain acceptable delinquency rates on outstanding GNMA pools and remain as a seller and servicer in good standing with GNMA. The Corporation generally remediates any breach of representations and warranties related to the underwriting of such loans according to established GNMA guidelines without incurring losses. The Corporation does not maintain a liability for estimated losses as a result of breaches in representations and warranties. Loan sales to FNMA and FHLMC are without recourse in relation to the future performance of the loans. The Corporation repurchased at par loans previously sold to FNMA and FHLMC in the amounts of $ 0.7 million, $ 1.4 million, and $ 2.3 million du ring 2016, 2015, and 2014, 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 and warranties were incurred in 2016. Historically, losses experienced on these loans have been immaterial. As a consequence, as of December 31, 2016, the Corporation does not maintain a liability for estimated losses on loans expected to be repurchased as a result of breaches in loan and servicer representations and warranties. The Corporation sold $ 20.2 million, $ 20.0 and $ 53.0 million of commercial mortgage loan participations during 2016, 2015 and 2014, respectively. In addition to the aforementioned sales, d uring the fourth quarter of 2016, the Corporation completed the sale of a pool of non-performing assets with a book value of $ 16.3 million (principal balance of $ 20.1 million), in a cash transaction. The proceeds from this sale were $ 11.3 million net of escrows and principal and interest collected on behalf of the purchaser subsequent to the effective date of the transaction. Approximately $ 2.8 million of reserves had been allocated to th |
ALLOWANCE FOR LOAN AND LEASE LO
ALLOWANCE FOR LOAN AND LEASE LOSSES | 12 Months Ended |
Dec. 31, 2016 | |
ALLOWANCE FOR LOAN AND LEASE LOSSES [Text Block] | The changes in the allowance for loan and lease losses were as follows: Residential Commercial Commercial and Construction Consumer Year Ended December 31, 2016 Mortgage Loans Mortgage Loans Industrial Loans Loans Loans Total (In thousands) Allowance for loan and lease losses: Beginning balance $ 39,570 $ 68,211 $ 68,768 $ 3,519 $ 60,642 $ 240,710 Charge-offs (33,621) (20,454) (26,579) (1,770) (54,504) (136,928) Recoveries 2,941 816 2,689 316 8,326 15,088 Provision 25,090 8,688 17,075 497 35,383 86,733 Ending balance $ 33,980 $ 57,261 $ 61,953 $ 2,562 $ 49,847 $ 205,603 Ending balance: specific reserve for impaired loans $ 8,633 $ 26,172 $ 22,638 $ 1,405 $ 5,573 $ 64,421 Ending balance: purchased credit-impaired loans (1) $ 6,632 $ 225 $ - $ - $ - $ 6,857 Ending balance: general allowance $ 18,715 $ 30,864 $ 39,315 $ 1,157 $ 44,274 $ 134,325 Loans held for investment: Ending balance $ 3,296,031 $ 1,568,808 $ 2,180,455 $ 124,951 $ 1,716,628 $ 8,886,873 Ending balance: impaired loans $ 442,267 $ 194,391 $ 153,543 $ 53,291 $ 44,413 $ 887,905 Ending balance: purchased credit-impaired loans $ 162,676 $ 3,142 $ - $ - $ - $ 165,818 Ending balance: loans with general allowance $ 2,691,088 $ 1,371,275 $ 2,026,912 $ 71,660 $ 1,672,215 $ 7,833,150 Residential Commercial Commercial and Construction Consumer Year Ended December 31, 2015 Mortgage Loans Mortgage Loans Industrial Loans Loans Loans Total (In thousands) Allowance for loan and lease losses: Beginning balance $ 27,301 $ 50,894 $ 63,721 $ 12,822 $ 67,657 $ 222,395 Charge-offs (19,317) (56,101) (33,844) (4,994) (62,465) (176,721) Recoveries 1,209 6,534 4,316 2,582 8,350 22,991 Provision (release) 30,377 66,884 34,575 (6,891) 47,100 172,045 Ending balance $ 39,570 $ 68,211 $ 68,768 $ 3,519 $ 60,642 $ 240,710 Ending balance: specific reserve for impaired loans $ 21,787 $ 3,073 $ 18,096 $ 1,202 $ 8,423 $ 52,581 Ending balance: purchased credit-impaired loans (1) $ 3,837 $ 125 $ - $ - $ - $ 3,962 Ending balance: general allowance $ 13,946 $ 65,013 $ 50,672 $ 2,317 $ 52,219 $ 184,167 Loans held for investment: Ending balance $ 3,344,719 $ 1,537,806 $ 2,246,513 $ 156,195 $ 1,827,149 $ 9,112,382 Ending balance: impaired loans $ 460,668 $ 81,527 $ 170,706 $ 53,516 $ 40,092 $ 806,509 Ending balance: purchased credit-impaired loans $ 170,766 $ 3,147 $ - $ - $ - $ 173,913 Ending balance: loans with general allowance $ 2,713,285 $ 1,453,132 $ 2,075,807 $ 102,679 $ 1,787,057 $ 8,131,960 (1) Refer to Note 8 - Loans Held for Investment - PCI Loans for a detail of changes in the allowance for loan losses related to PCI loans. As discussed in Note 8 – Loans Held for Investment , under the subheading “Bulk Sale of Assets , ” d uring 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 net charge-offs of approximately $61.4 million. The Corporation incorporated the charge-offs information from the second quarter 2015 bulk sale in its measuremen t of credit impairment for loans collectively 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 Corporation 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 res olution strategies in the future in light 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 methodology 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 estim ation 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 December 31, 2016 , the Corporation maintained a $ 1.6 million reserve for unfunded loan commitments (2015 - $ 0.4 million) 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 borr owers that are experiencing financial difficulties at the balance sheet date. It is calculated by multiplying an estimated loss factor by an estimated probability of funding, and then by the period-end amounts for unfunded commitments. The reserve for unfu nded loan commitments is included as part of accounts payable and other liabilities in the consolidated statement s of financial condition. |
LOANS HELD FOR SALE
LOANS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2016 | |
LOANS HELD FOR SALE [Text Block] | NOTE 10 – LOANS HELD FOR SALE The Corporation’s loans held-for-sale portfolio was composed of: December 31, 2016 2015 (In thousands) Residential mortgage loans $ 41,927 $ 27,734 Construction loans 8,079 8,135 Total $ 50,006 $ 35,869 Non- performing loans held for sale totaled $ 8.1 million as of December 31, 201 6 and December 31, 201 5 . |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Other Real Estate Owned Disclosure [Text Block] | NOTE 11 – OTHER REAL ESTATE OWNED The following table presents OREO inventory as of the dates indicated: December 31, (In thousands) 2016 2015 OREO OREO balances, carrying value: Residential (1) $ 46,917 $ 43,563 Commercial 78,698 87,849 Construction 12,066 15,389 Total $ 137,681 $ 146,801 (1) Excludes $15.0 million and $8.9 million as of December 31, 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 statements of financial condition. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions [Text Block] | NOTE 12 – RELATED-PARTY TRANSACTIONS The Corporation granted loans to its directors, executive officers, and certain related individuals or entities in the ordinary course of business. The movement and balance of these loans were as follows: Amount (In thousands) Balance at December 31, 2014 $ 1,333 New loans 43 Payments (130) Other changes 6 Balance at December 31, 2015 1,252 New loans 102 Payments (146) Other changes - Balance at December 31, 2016 $ 1,208 These loans were made subject to the provisions of Regulation O-“Loans to Executive Officers, Directors and Principal Shareholders of Member Banks,” which governs the permissible lending relationships between a financial institution and its executive officers, directors, principal shareholders, their families and related interests . The amounts reported as other changes include changes in the status of those who are considered related parties, which, for 2015, was mainly related to the addition of one new executive officer. From time to time, the Corporation, in the ordinary course of its business, obtains services from related parties or makes contributions to non-profit organizations that have some association with the Corporation. Management believe s the terms of such arrangements are consistent with arrangements entered into with independent third parties. |
PROPERTY PLANT AND EQUIPMENT
PROPERTY PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property Plant And Equipment Disclosure [Text Block] | NOTE 13 – PREMISES AND EQUIPMENT Premises and equipment comprise: Useful Life In Years As of December 31, 2016 2015 (Dollars in thousands) Buildings and improvements 10-35 $ 139,533 $ 142,872 Leasehold improvements 1-10 60,605 61,089 Furniture and equipment 2-10 165,386 162,954 365,524 366,915 Accumulated depreciation and amortization (248,335) (238,734) 117,189 128,181 Land 25,279 26,932 Projects in progress 8,360 5,903 Total premises and equipment, net $ 150,828 $ 161,016 Depreciation and amortization expense amounted to $ 17.6 mil lion, $ 21.1 milli on, and $ 21.0 million for the years ended December 31, 201 6, 2015, and 20 14, respectively. |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended |
Dec. 31, 2016 | |
GOODWILL AND OTHER INTANGIBLES [Text Block] | NOTE 14 – GOODWILL AND OTHER INTANGIBLES Goodwill as of December 31, 2016 and 2015 amounted to $ 28.1 million , recognized as part of “Other Assets” in the consolidated statements of financial condition. The Corporation conducted its annual evaluation of goodwill and other intangibles during the fourth quarter of 2016. The Corporation’s goodwill is related to the acquisition of FirstBank Florida in 2005. The Corporation bypassed the qualitative assessment in 2016 and p roceeded directly to perform the first step of the two-step goodwill impairment test. The Step 1 evaluation of goodwill allocated to the Florida reporting unit under both valuation approaches (market and discounted cash flow analysis) indicated that the fa ir value of the unit was above the carrying amount of its equity book value as of the valuation date ( October 1 ) ; therefore, the completion of the Step 2 was not required. Based on the analyse s under both the market and discounted cash flow approaches , the estimated fair value of the equity of the reporting unit exceeded the carrying amount of the entity, including goodwill at the evaluation date. Goodwill was not impaired as of December 31, 201 6 or 201 5 , nor was any goodwill written off due to impairment d uring 201 6 , 201 5 , and 201 4 . 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 remaining estimated life of 5 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. Thes e benefits are consumed as the revenue stream generated by the cardholder relationship is realized. The core deposit intangible acquired in the February 2015 Doral Bank transaction amounted to $5.8 million ($ 4.4 million as of December 3 1, 2016 and $ 5.1 million as of December 31, 2015). 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 statements of financial condition: As of 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 (44,466) (42,498) Net carrying amount $ 7,198 $ 9,166 Remaining amortization period 8.1 years 9.0 years Purchased credit card relationship intangible: Gross amount $ 24,465 $ 24,465 Accumulated amortization (13,934) (11,146) Net carrying amount $ 10,531 $ 13,319 Remaining amortization period 5 years 5.8 years Insurance customer relationship intangible: Gross amount $ 1,067 $ - Accumulated amortization (140) - Net carrying amount $ 927 $ - Remaining amortization period 6.1 years - The estimated aggregate annual amortization expense related to the intangible assets for future periods is as follows: Amount (In thousands) 2017 $ 4,495 2018 3,519 2019 3,067 2020 2,851 2021 2,658 2022 and after 2,066 |
NON-CONSOLIDATED VARIABLE INTER
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS [Text Block] | NOTE 15 – 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 Co rporation 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 is the primary beneficiary of the VIE and whether the entity should be consolidated or not. Below is a summary of transfers of financial assets to VIEs for which the Corporation has retained some level of continuing involvement: GNMA The Corporation typically transfers first lien residential mortgage loans in conjunction with GNMA securitization transactions in which the loans are exchanged for cash or securities that are readily redeemed for cash proceeds and servicing rights. The securities issued through these transactions are guaranteed by the issuer and, as such, under seller/servicer agreements , the Corporation is required to service the loans in accordance with the issuers’ servicing guidelines and standards. As of December 31, 2016 , the C orporation serviced loans securitized through GNMA with a principal balance of $ 1.5 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 millio n 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 p urchase $ 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 its variable rate trust-preferred securities. The proceeds of the issuance, together with the proceeds of the purchase by the Corporation of $ 3.9 million of FBP Statutory Trust II variable rate common securities, were used by FBP Statutory Trust II to p urchase $ 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 c osts. 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 Septembe r 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 accrued 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 com mon stock in exchange for $5.3 million of trust preferred sec urities (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 Amen dment 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 indent ures, 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 the 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 interest for the second quarter on the Corporation’s subordinated debentures associated with its trust preferred securities. Subsequently, the Corporation received quarterly approvals and paid the interest for the third and fourth quarters of 2016. As of D ecember 31, 2016, the Corporation is current on all interest payments due re lated 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 cont inue 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 provided the servicing for a fee, which is senior to the obligations to pay trust certificate holders. The seller then entered into a sales agreement through which it sold and issued the trust certificates in favor of the Corporation’s banking subsidiary. Currently, the Bank is the sole owner of the trust certificates; the servicing of the underlying residential mortgages that generate the principal and interest cash flows is performed by anoth er third party, which receives a servicing fee. The securities are variable rate securities indexed to 90-day LIBOR plus a spread. The principal payments from the underlying loans are remitted to a paying agent (servicer) , who then remits interest to the B ank; interest income is shared to a certain extent with the FDIC, which has an interest only strip (“IO”) tied to the cash flo ws of the underlying loans and is entitled to receive the excess of the interest income less a servicing fee over the variable rat e income that the Bank earns on the securities. This IO is limited to the weighted - average coupon on the securities. The FDIC beca me the owner of the IO upon its intervention of the seller, a failed financial institution. No recourse agreement exists and t he risk s from losses on non accruing loans and repossessed collateral are absorbed by the Bank as the sole holder of the certificates. As of December 31, 2016 , the amortized cost and fair value of the Grantor Trusts amounted to $ 28.8 million and $ 20. 7 million, respectively, with a weighted - average yield of 2.40 %. Investment in unconsolidated entity On February 16, 2011, FirstBank sold an asset portfolio consisting of performing and non-performing construction, commercial mortgage and commercial and industrial loans with an aggregate book value of $ 269.3 million to CPG/GS, an entity organized under the laws of the Commonwealth of Puerto Rico and majority owned by PRLP Ventures LLC ("PRLP"), a company created by Goldman, Sachs & Co. and Caribbean P roperty 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 maturit y and bears variable interest at 30-day LIBOR plus 300 basis points and is secured by a pledge of all of the acquiring entity's assets as well as the PRLP's 65 % ownership interest in CPG/GS. As of December 31, 2016 , the carrying amount of the loan was $ 5.1 million, which was included in the Corporation's Commercial and Industrial loans held for investment portfolio. FirstBank’s equity interest in CPG/GS is accounted for under the equity method . When applying the equity method, the Bank follows the Hypo thetical Liquidation Book Value method (“HLBV”) to determine its share of CPG/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 h as no legal obligation or commitment to provide further financial support to 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 i n CPG/GS, under the HLBV met hod 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 milli on advance facility to CPG/GS to fund unfunded commitments and costs to complete projects under construction, which was fully disbursed in 2011, and a $ 20 million working capital line of credit to fund certain expenses of CPG/GS. The working capital line e xpired in September 2016 and no amount is outstanding. During 2012 , CPG/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 facili ty bear s variable interest at 30-day LIBOR plus 300 basis points . As of December 31, 2016 , the carrying value of the revolver agreeme nt was $ 8.6 million , which was included in the Corporation's commercial and industrial loan s held for investment portf olio . Cash proceeds received by CPG/GS have been first used to cover operating expenses and debt service payments, including those related to t he note receivable, the advance facility, and the working capital line , described above, which must be substanti ally repaid before proceeds can be used for other purposes, including the return of capital to both PRLP and FirstBank. FirstBank will not receive any return on its equity interest until PRLP receives an aggregate amount equivalent to its initial investmen t and a priority return of at least 12 %, resulting in FirstBank’s interest in CPG/GS being subordinate to PRLP’s interest. CPG/GS will then begin to make payments pro rata to PRLP and FirstBank, 35 % and 65 %, respectively, until FirstBank has achieved a 12% return on its invested capital and the aggregate amount of distributions is equal to FirstBank’s capital contributions to CPG/GS. The Bank has determined that CPG/GS is a VIE in which the Bank is not the primary beneficiary. In determining the primary beneficiary of CPG/GS, the Bank considered applicable guidance that requires the Bank to qualitatively assess the determination of the primary beneficiary (or consolidator) of CPG/GS based on whether it has both the power to direct the activities of CPG/GS that most significantly impact the entity's economic performance and the obligation to absorb losses of CPG/GS that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the V IE. 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 c onstruction and sale of the property; therefore, the Bank concluded that it is not the primary beneficiary of CPG/GS. As a creditor to CPG/GS, the Bank has certain rights related to CPG/GS; however, these are intended to be protective in nature and do not provide the Bank with the ability to manage the operations of CPG/GS. Since CPG/GS is not a consolidated subsidiary of the Bank and the transaction met the criteria for sale accounting under authoritative guidance, the Bank accounted for this transaction a s a true sale, recognizing the cash received, the notes receivable, 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 recognizes as separate assets the rights to service loans for others, whether those servicing assets are originated or purchased. The changes in servicing assets are shown below: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at beginning of year $ 24,282 $ 22,838 $ 21,987 Capitalization of servicing assets 5,260 4,919 4,321 Amortization (3,229) (3,159) (3,156) Adjustment to fair value (325) (228) (228) Other (1) 256 (88) (86) Balance at end of year $ 26,244 $ 24,282 $ 22,838 (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: Year ended December 31, 2016 2015 2014 (In thousands) Balance at beginning of year $ 136 $ 55 $ 212 Temporary impairment charges 466 285 343 OTTI of servicing assets - (147) (385) Recoveries (141) (57) (115) Balance at end of year $ 461 $ 136 $ 55 The components of net servicing income are shown below: Year ended December 31, 2016 2015 2014 (In thousands) Servicing fees $ 7,606 $ 7,211 $ 6,999 Late charges and prepayment penalties 674 765 695 Adjustment for loans repurchased 256 (88) (86) Other (1) (1) (161) (1,253) Servicing income, gross 8,535 7,727 6,355 Amortization and impairment of servicing assets (3,554) (3,387) (3,384) Servicing income, net $ 4,981 $ 4,340 $ 2,971 (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 2016: Constant prepayment rate: Government-guaranteed mortgage loans 7.6 % 5.9 % Conventional conforming mortgage loans 8.0 % 6.3 % Conventional non-conforming mortgage loans 14.1 % 9.3 % 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 % 2015: Constant prepayment rate: Government-guaranteed mortgage loans 9.2 % 7.8 % 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 % 2014: Constant prepayment rate: Government-guaranteed mortgage loans 9.6 % 9.1 % Conventional conforming mortgage loans 9.4 % 8.9 % Conventional non-conforming mortgage loans 14.0 % 12.7 % Discount rate: Government-guaranteed mortgage loans 11.5 % 11.5 % Conventional conforming mortgage loans 9.5 % 9.5 % Conventional non-conforming mortgage loans 13.9 % 13.8 % A s of December 31, 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 prepayment rates , adjusted by the particular characteristics of the Corporation’s servicing portfolio . The weighted averages of the key economic assumptions used by the Corporation in its valuation model and the sensitivity of the current fair value to immediate 10 % and 20 % adverse changes in those a ssumptions for mortgage loans as of December 31, 2016 were as follows: (Dollars in thousands) Carrying amount of servicing assets $ 26,244 Fair value $ 29,664 Weighted-average expected life (in years) 8.58 Constant prepayment rate (weighted-average annual rate) 6.12 % Decrease in fair value due to 10% adverse change $ 758 Decrease in fair value due to 20% adverse change $ 1,483 Discount rate (weighted-average annual rate) 11.19 % Decrease in fair value due to 10% adverse change $ 1,413 Decrease in fair value due to 20% adverse change $ 2,708 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 resul t in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the sensitivities. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2016 | |
DEPOSITS [Text Block] | N OTE 15 – DEPOSITS AND R ELATED I NTEREST The following table summarizes deposit balances as of the dates indicated: December 31, 2016 2015 (In thousands) Type of account and interest rate: Non-interest-bearing checking accounts $ 1,484,155 $ 1,336,559 Interest-bearing savings accounts - 0.05% to 0.40% (2015- 0.05% to 0.70%) 2,518,496 2,459,186 Interest-bearing checking accounts - 0.05% to 1.00% (2015- 0.10% to 1.06%) 1,075,929 1,088,651 Certificates of deposit- 0.10% to 4.00% (2015- 0.10% to 5.05%) 2,312,928 2,356,245 Brokered certificates of deposit- 0.60% to 2.80% (2015- 0.45% to 2.80%) 1,439,697 2,097,483 $ 8,831,205 $ 9,338,124 The weighted-average interest rate on total interest-bearing deposits as of December 31, 2016 and 2015 was 0.83 % . As of December 31, 201 6 , the aggregate amount of unplanned overdrafts in demand deposits that were reclassified as loans amounted to $ 1.0 million (2015 - $ 1.0 million ) . Pre-arranged overdrafts lines of credit amounted to $ 32.9 million as of December 31, 2016 (2015- $ 32.8 million) . The following table presents the contractual maturities of CDs, including brokered CDs, as of December 31, 2016: Total (In thousands) Three months or less $ 609,994 Over three months to six months 410,852 Over six months to one year 961,619 Over one year to two years 1,052,030 Over two years to three years 402,077 Over three years to four years 115,771 Over four years to five years 193,899 Over five years 6,383 Total $ 3,752,625 As of December 31, 201 6 , CDs in denominations of $ 100,000 or higher amounted to $ 3.0 billion (2015 - $ 3.6 billion) including brokered CDs of $ 1.4 billion (2015 - $ 2.1 billion) at a weighted- av erage rate of 1.18 % (2015 - 0.97 %) issued to deposit brokers in the form of large certificates of deposits that are generally participated out by brokers in shares of less than the FDIC insurance limit . As of December 31, 2016 , unamortized broker placement fees amounted to $ 2.6 million (20 15 - $ 3.9 m illion), which are amortized over the contractual maturity of the brokered CDs under the interest method. Brokered CDs mature as follows: December 31, 2016 (In thousands) Three months or less $ 253,475 Over three months to six months 150,627 Over six months to one year 394,710 One to three years 540,566 Three to five years 98,755 Over five years 1,564 Total $ 1,439,697 As of December 31, 2016, deposit accounts issued to government agencies amounted to $ 563.7 million (2015 — $ 577.3 million) . These deposits in Puerto Rico and the U.S. Virgin Islands are insured by the FDIC up to the applicable limits, generally $250,000. The uninsured portion were collateralized by securities and loans with an amortized cost of $ 583.9 million (2015 — $ 678.8 million) and an estimated market value of $ 521.3 million (2015 — $ 600.6 million). As of December 31, 2016, the Corporation had $ 408.8 million of government deposits in Puerto Rico (2015— $ 390.4 million) and $ 154.9 million in the Virgin Islands (2015— $ 186.9 million). A table showing interest expense on deposits follows: Year Ended December 31, 2016 2015 2014 (In thousands) Interest-bearing checking accounts $ 4,914 $ 5,440 $ 6,446 Savings 12,392 13,660 15,416 Certificates of deposit 28,068 25,246 26,371 Brokered certificates of deposit 21,928 24,904 29,894 Total $ 67,302 $ 69,250 $ 78,127 The total interest expense on deposits includes the amortization of broker placement fees related to brokered CDs amounting to $2.9 million, $4.6 million, and $6.7 million for 2016, 2015 and 2014, respectively. For 201 6 and 2015, includes $ 0. 2 million and $ 0.6 million, respectively, for the accretion of premium related to time deposits assumed in the Doral Bank transaction in 2015. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 12 Months Ended |
Dec. 31, 2016 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE [Text Block] | NOTE 17 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase (repurchase agreements) with original maturities in excess of one year consist of the following: December, 31 2016 2015 (Dollars in thousands) Repurchase agreements, interest ranging from 1.96% to 2.83% (December 31, 2015: 1.96% to 3.41%) (1)(2) $ 300,000 $ 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 December 31, 2016, includes $200 million that have an average rate of 2.11% and that are callable by lenders before their contractual maturities at various dates beginning on January 19, 2017. Subsequent to December 31, 2016, no lender has exercised its call option on repurchase agreements. In addition, $100 million is tied to variable rates. The weighted-average interest rates on repurchase agreements as of December 31, 2016 and 2015 were 2.35 % and 2.73 %, respectively. Accrued interest payable on repurchase agreements amounted to $ 1.9 million and $ 4.0 million as of December 31, 2016 and 2015, respectively. Repurchase agreements mature as follows: December 31, 2016 (In thousands) Over six months to one year $ 100,000 Over five years 200,000 Total $ 300,000 The following securities were sold under agreements to repurchase: December 31, 2016 Amortized Approximate Weighted Cost of Fair Value Average Underlying Balance of of Underlying Interest Rate Underlying Securities Securities Borrowing Securities of Security (In thousands) U.S. government-sponsored agencies $ 126,205 $ 123,175 $ 125,417 1.30 % Mortgage-backed securities 215,352 176,825 213,973 2.20 % Total $ 341,557 $ 300,000 $ 339,390 Accrued interest receivable $ 1,400 December 31, 2015 Amortized Approximate Weighted Cost of Fair Value Average Underlying Balance of of Underlying Interest Rate Underlying Securities Securities Borrowing Securities of Security (In thousands) U.S. government-sponsored agencies $ 233,175 $ 211,010 $ 230,603 1.47 % Mortgage-backed securities 564,595 488,990 562,959 2.18 % Total $ 797,770 $ 700,000 $ 793,562 Accrued interest receivable $ 2,145 The maximum aggregate balance outstanding at any month-end during 2016 was $ 700 million (2015 — $ 900 million). The average balance during 2016 was $ 616.4 million (2015 — $ 769.0 million). The weighted-average interest rate during 2016 and 2015 was 3.28 % and 2.92 %, respectively. As of December 31, 2016 and 2015, the securities underlying such agreements were delivered to the dealers with which the repurchase agreements were transacted. Repurchase agreements as of December 31, 2016, grouped by counterparty, were as follows: (Dollars in thousands) Weighted-Average Counterparty Amount Maturity (In Months) Dean Witter / Morgan Stanley $ 100,000 10 JP Morgan Chase 200,000 61 $ 300,000 |
ADVANCES FROM THE FEDERAL HOME
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) | 12 Months Ended |
Dec. 31, 2016 | |
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) [Text Block] | NOTE 18 – ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) The following is a summary of the advances from the FHLB: December 31, December 31, 2016 2015 (In thousands) Short-term fixed-rate advances from FHLB, with a weighted-average interest rate of 0.78% $ 170,000 $ - Long-term fixed-rate advances from FHLB, with a weighted-average interest rate of 1.49% (December 31, 2015 - 1.30%) 500,000 455,000 $ 670,000 $ 455,000 Advances from FHLB mature as follows: December 31, 2016 (In thousands) Within 30 days $ 170,000 One to six months - Six months to one year 200,000 Over one to three years 300,000 Total $ 670,000 Advances are received from the FHLB under an Advances, Collateral Pledge, and Security Agreement (the “Collateral Agreement”). Under the Collateral Agreement, the Corporation is required to maintain a minimum amount of qualifying mortgage collateral with a market value of generally 125 % or higher than the outstanding advances. As of December 31, 2016, the estimated value of specific mortgage loans pledged as collateral amounted to $ 1.4 billion (201 5 — $ 1.1 billion ), as computed by the FHLB for collateral purposes. The carrying value of such loans as of December 31, 201 6 amounted to $ 1.7 b illion (201 5 — $ 1.4 b illion). As of December 31, 201 6 , the Corporation had additional capacity of approximately $ 754.3 million on this credit facility based on collateral pledged at the FHLB, including a haircut reflecting the perceived risk asso ciated with the collateral. Haircut refers to the percentage by which an asset’s market value is reduced for the purpose of collateral levels. Advances may be repaid prior to maturity, in whole or in part, at the option of the borrower upon payment of any applicable fee specified in the contract governing such advance. In calculating the fee, due consideration is given to (i) all relevant factors, including but not limited to, any and all applicable costs of repurchasing and/or prepaying any associated liab ilities and/or hedges entered into with respect to the applicable advance; (ii) the financial characteristics, in their entirety, of the advance being prepaid; and (iii), in the case of adjustable-rate advances, the expected future earnings of the replacem ent borrowing as long as the replacement borrowing is at least equal to the original advance’s par amount and the replacement borrowing’s tenor is at least equal to the remaining maturity of the prepaid advance. |
OTHER BORROWINGS
OTHER BORROWINGS | 12 Months Ended |
Dec. 31, 2016 | |
OTHER BORROWINGS [Text Block] | N OTE 18 – O THER BORROWINGS Other borrowings consist of: December 31, 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 (3.74% as of December 31, 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 (3.50% as of December 31, 2016 and 3.07% as of December 31, 2015) (1) 118,557 128,866 $ 216,187 $ 226,492 (1) Refer to Note 15 - Non-Consolidated Variable Interest Entities and Servicing Assets - Trust Preferred Securities for additional information, including information about the Corporation's repurchase and cancellation of $10 million of trust preferred securities associated with these junior subordinated debentures. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2016 | |
EARNINGS PER COMMON SHARE [Text Block] | NOTE 20 – EARNINGS PER COMMON SHARE The calculation of earnings per common share for the years ended December 31, 2016, 2015, and 2014 are as follows: Year Ended December 31, 2016 2015 2014 (In thousands, except per share information) Net income $ 93,229 $ 21,297 $ 392,287 Less: Preferred stock dividends (223) - - Favorable impact from issuing common stock in exchange for Series A through E preferred stock (1) - - 1,659 Net income attributable to common stockholders $ 93,006 $ 21,297 $ 393,946 Weighted-Average Shares: Average common shares outstanding 212,818 211,457 208,752 Average potential dilutive common shares 2,976 1,514 1,788 Average common shares outstanding - assuming dilution 215,794 212,971 210,540 Earnings per common share: Basic $ 0.44 $ 0.10 $ 1.89 Diluted $ 0.43 $ 0.10 $ 1.87 ____________ (1) Excess of carrying amount of the Series A through E preferred stock exchanged over the fair value of new common shares issued in 2014. Earnings per common share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares issued and outstanding. Net income attributable to common stockholders represents net income adjusted for any preferred stock dividends, including any dividends declared and any cumulative dividends related to the current dividend period that have not been declared as of the end of the period. For 2014, net income attributable to common stockholders also includes the one-time effect to retained earnings of the issuance of common stock in exchange for Series A through E preferred stock. These transactions are discussed in Note 2 2 – Stockholders’ Equity, to the consolidated financial statements. Basic weighted-avera ge common shares outstanding exclude unvested shares of restricted stock. Potential common shares consist of common stock issuable under the assumed exercise of stock options, unvested shares of restricted stock, and outstanding warrants using the treasur y stock method. This method assumes that the potential common shares are issued and the proceeds from the exercise, in addition to the amount of compensation cost attributable to future services, are used to purchase common stock at the exercise date. The difference between the number of potential shares issued and the shares purchased are 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 outs tanding warrants that result in lower potential shares issued than shares purchased under the treasury stock method are not included in the computation of dilutive earnings per share since their inclusion would have an antidilutive effect on earnings per s hare. Stock options not included in the computation of outstanding shares because they were antidilutive amounted to 34,989; 69,848 , and 82,575 as of December 31, 2016, 2015, and 2014, respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
STOCK-BASED COMPENSATION [Text Block] | NOTE 21 – STOCK-BASED COMPENSATION As of January 21, 2007, the Corporation’s 1997 stock option plan expired and no additiona l awards could be granted under that plan. A ll outstanding awards granted under this plan continue d in full force and effect since then, subject to their original terms. No awards of shares could be granted under the 1997 stock option plan as of its expiration. The activity of stock options granted under the 1997 stock option plan for the year ended December 31, 2016 is set forth below: Weighted-Average Aggregate Remaining Intrinsic Number of Weighted-Average Contractual Term Value Options Exercise Price (Years) (In thousands) Beginning of year outstanding and exercisable 69,848 $ 160.30 Options expired (34,326) 183.37 Options cancelled (533) 138.00 End of year outstanding and exercisable 34,989 $ 138.00 0.1 $ - 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 material terms of the performance goals under the Omnibus Plan for purpose of Section 162 (m) of the U.S. Internal Revenue Code of 1986, as amende d. The Omnibus Plan provides for equity-based compensation incentives (the “awards”) through the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, 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 stock splits, reorganizations and other similar events. As of December 31, 2016, 6,846,986 shares of common stock were available for issuanc e under the Omnibus Plan. The Corporation’s Board of Directors, upon receiving the relevant recommendation of the Compensation Committee, has the power and authority to determine those eligible to receive awards and to establish the terms and conditions of any awards, subject to various limits and vesting restrictions that apply to individual and aggregate awards. Under the Omnibus Plan, during 201 6 , 130,873 shares of restricted stock were awarded to the Corporation’s independent directors subject to a one-year vesting period . Also during 2016, the Corporation issued 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 gr anted to certain senior officers consistent with the requirements of the Troubled Asset Relief Program (“TARP”) Interim Final Rule, w hich permit TARP recipients to grant “long-term restricted stock” without violating the prohibition on paying or accruing a bonus payment provided that : (i) the value of the grant may not exceed one-third of the amount of the employee’s annual compensation, (ii) no portion of the grant may vest before two years after the grant date , and (iii) the grant must be subject to a fur ther restriction on transfer or payment as described below. Specifically, the stock that has otherwise vested may not become transferable at any time earlier than as permitted under the schedule set forth by TARP, which is based on the repayment in 25 % inc rements of the aggregate financial as sistance 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, eff ective March 2014, it has recovered more than 25% of its investment in First BanCorp. Therefore, the restrictions on transfer relating to 25 % of certain shares granted under TARP requirements have been released. The fair value of the shares of restr icted stock granted in 201 6 was based on the market price of the Corporation’s outstanding common stock on the date of the grant. For the 1,546,137 shares of restricted stock granted under the TARP requirements, the market p rice was discounted due to TARP transferability restrictions . For purposes of determining the awards’ fair value , the Corporation estimated an appreciation of 14 % in the value of the common stock using the Capital Asset Pricing Model as a basis of what would be a market participant’s exp ected return on the Corporation’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 s tock granted under the TARP requirements. Also, the Corporation use d empirical data to estimate employee termination s ; 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 2016 under the Omnibus Plan for both executive officers covered by the TARP requirements and other employees as well as for the independent directors: 2016 Number of Weighted- shares of Average 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 (31,532) 4.93 Vested (683,713) 3.80 Non-vested shares at end of year 4,178,791 $ 2.58 For the years ended December 31, 2016, 2015 and 2014, the Corporation recognized $ 3.9 million, $ 3.8 million and $ 2.6 million, respectively, of stock-based compensation expense related to restricted stock awards. As of December 31, 2016, there was $ 3.5 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 1.3 years. In 201 5 , the Corporation awarded (i) 219,531 sha res of restricted stock to its independent directors subject to vesting period s that ranged from 1 to 5 years and (ii) 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 the requirements of TARP . T he employees covered by TARP are restricted from transferring the shares , subject to the conditions described above. The fair value of the shares of restricted stock granted in 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 w as 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 partici pant’s expected return on the Corporation’s stock and assumed that the 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 restr icted shares granted under the TARP requirements. Stock-based compensation accounting guidance requires the Corporation to reverse compensation expense for any awards that were forfeited due to employee or director turnover. Approximately, $ 0.1 m illion of compensation expense was reversed related to forfeited awards in each of years 2016, 2015 and 2014. 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 201 6 , the Corporation issued 755,223 shares of common stock (2015 – 483,053 shares) with a weighted - average market value of $ 3.96 (2015 - $ 4.67 market value) as salary stock compensation. This resulted in a compensation expense of $ 3.0 million recorded in 201 6 (2015 – $ 2.3 million). During 2016, the Corporation withheld 226,261 shares (2015 – 149,4 63 shares) from the common stock paid to certain senior officers as additional compensation and 65,498 shares (2015- 72,918 shares) of restricted stock that vested during 2016 and 2015 to cover employees’ payroll and income tax withholding liabilities; the se shares are held as treasury shares. The Corporation paid any fractional share of salary stock that the officer was entitled to in cash. In the consolidated financial statements, the Corporation treats shares withheld for tax purposes as common stock rep urchases. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
STOCKHOLDERS' EQUITY [Text Block] | NOTE 22 – STOCKHOLDERS’ EQUITY Common Stock As of December 31, 2016 and 2015, the Corporation had 2,000,000,000 authorized shares of common stock with a par value of $0.10 per share. As of December 31, 2016 and 2015, there were 218,700,394 and 216,051,128 shares issued, respectively, and 217,446,205 and 215,088,698, shares outstanding, respectively. Refer to Note 2 1 for information about transactions related to common stock under the Omnibus Plan. On December 5 , 2016, a secondary offering of th e Corporation’s common stock was completed by certain of the Corporation’s existing stockholders. Funds affiliated with Thomas H. Lee Partners, L.P. (“ THL”) sold 9 million shares of common stock, and funds managed by Oaktree Capital Management (“ Oaktree”) sold 9 million shares of common stock. In addition, the underwriters exercised their option to purchase an additional 2.7 million shares of common stock from the selling stockholders. The Corporation did not receive any proceeds from the offering. As of December 31, 2016, each of THL and Oaktree owned 14.5 % of the Corporation’s common stock. In February 2017, THL and Oaktree sold an aggregate of an additional 23 million shares of common stock in a secondary offering, reducing each of their percentage owne rship interests in the Corporation to approximately 9.2 %. During the second quarter of 2015, the Corporation issued 852,831 shares of its common stock in exchange for trust preferred securities with a liquidation value of $5.3 million. As a result of thes e transactions, common stock increased by $85 thousand, which represents the par value of the shares issued. Also , additional paid-in capital increased by the excess of the common stock fair value over the par value, or $5.5 million. With these exchanges, the other borrowings balance decreased by $ 5.5 million. 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 issu ed in series and the shares of each series will have such rights and preferences as are fixed by the Board of Directors when authorizing the issuance of that particular series. As of December 31, 2016, the Corporation has five outstanding series of non-con vertible, non-cumulative preferred stock: 7.125 % non-cumulative perpetual monthly income preferred stock, Series A; 8.35 % non-cumulative perpetual monthly income preferred stock, Series B; 7.40 % non-cumulative perpetual monthly income preferred stock, Seri es C; 7.25 % non-cumulative perpetual monthly income preferred stock, Series D; and 7.00 % non-cumulative perpetual monthly income preferred stock, Series E. The liquidation value per share is $ 25 . Effective January 17, 2012, the Corporation delisted all of its outstanding series of non-convertible, non-cumulative preferred stock from the New York Stock Exchange. The Corporation has not arranged for listing and/or registration on another national securities exchange or for quotation of the Series A through E Preferred Stock in a quotation medium. For the first time since July 2009, the Corporation paid dividends on its non-cumulative perpetual monthly income preferred stock in December 2016, after receiving regulatory approval. The Corporation intends to re quest approval in future periods to continue with monthly dividend payments on the non-cumulative perpetual monthly income preferred stock. In 2014, the Corporation issued an aggregate of 4,597,121 shares of its co mmon stock in exchange for an aggregate of 1,077,726 shares of the Corporation’s Series A through E Preferred Stock, having an aggregate liquidation value of $26.9 million. The shares of common stock were issued to holders of the Series A through E Preferr ed Stock in separate and unrelated transactions in reliance upon the exemption set forth in Section 3(a)(9) of the Securities Act of 1933, as amended, for securities exchanged by an issuer with existing security holders where no commission or other remuner ation is paid or given directly or indirectly by the issuer for soliciting such exchange. The carrying (liquidation) value of the Series A through E preferred stock exchanged, or $26.9 million, was reduced, and common stock and additional paid-in capital w as increased in the amount of the fair value of the common stock issued. The Corporation recorded the par value of the shares issued as common stock ($0.10 per common share) or $0.5 million. The excess of the common stock fair value over the par value, or $23.9 million, was recorded in additional paid-in capital. The excess of the carrying amount of the shares of preferred stock over the fair value of the shares of common stock, or $1.7 million, was recorded as an increase to retained earnings and an increa se in earnings per common share computation. T reasury stock During 2016 and 2015, the Corporation withheld an aggregate of 291,759 shares and 222,381 shares, respectively, of the common stock paid to certain senior officers as additional compensation and restricted stock that vested during 2016 and 2015 to cover employees’ payroll and income tax withholding liabilities; these shares are also held as treasury shares. As of December 31, 2016 and 2015, the Corporation had 1,254,189 and 962,430 shares held as treasury stock, respectively. FirstBan k Statutory Reserve (Legal Surplus) The Banking Law of the Commonwealth of Puerto Rico requires that a minimum of 10 % of FirstBank’s net income for the year be transferred to legal surplus until such surplus equals the total of paid-in capital on common a nd 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 of the Puerto R ico 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 must be charged against the undistributed profits of the bank, and the balance, if any, must 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 must be charged against the capital acc ount 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 2016 and 2015, $ 9.6 million and $ 2.8 million, respectively, were transferred to the legal surplus reserv e. FirstBank’s legal surplus reserve, included as part of retained earnings in the Corporation’s statement of financial condition, amounted to $52.4 million and $42.8 million, respectively, as of December 31, 2016 and 2015. |
EMPLOYEES' BENEFIT PLAN
EMPLOYEES' BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2016 | |
Employees' Benefit Plan [Abstract] | |
Employees' Benefit Plan [Text Block] | NOTE 23 – EMPLOYEES’ BENEFIT PLAN FirstBank provides contributory retirement plans pursuant to Section 1081.01 of the Puerto Rico Internal Revenue Code of 2011 for Puerto Rico employees and Section 401(k) of the U.S. Internal Revenue Code for USVI and U.S. employees (the “Plans”). All employees are eligible to participate in the Plans after three months of service for purposes of making elective deferral contributions and one year of service for purposes of sharing in the Bank’s matching, qualifie d matching, and qualified nonelective contributions. Under the provisions of the Plans, the Bank contributes 25 % of the first 4 % of the participant’s compensation contributed to the Plans on a pretax basis. Participants were permitted to contribute up to $ 15,000 for each of 2014, 2015 and 2016 ($ 1 7 , 5 00 for 201 4, and $ 18,000 for each of 2015 and 2016 for USVI and U.S. employees). Additional contributions to the Plans are voluntarily made by the Bank as determined by its Board of Directors. No additional dis cretionary contributions were made for the years ended December 31, 2016, 2015 and 2014. The Bank had a total plan expense of $ 1.1 million for the year ended December 31, 2016, $ 1.4 million for 2015, and $ 2.2 million for 2014. |
OTHER NON- INTEREST INCOME
OTHER NON- INTEREST INCOME | 12 Months Ended |
Dec. 31, 2016 | |
Other Non-interest Income [Abstract] | |
Other Noninterest Income [Text Block] | NOTE 23 – O THER N ON - INTEREST I NCOME A detail of other non-interest income is as follows: Year Ended 2016 2015 2014 (In thousands) Non-deferrable loan fees $ 3,346 $ 2,687 $ 2,414 Commissions and fees-broker-dealer-related 789 - 459 Lower of cost or market adjustment-commercial and construction loans held for sale - 191 - Loss on sale of commercial loans held for sale - (553) - Gain on exchange of trust preferred securities for common stock - 267 - Merchant-related income 4,095 9,510 8,181 ATM and POS fees 8,462 7,213 6,627 Credit card loans interchange and other fees 5,920 6,220 6,047 Other 8,288 7,259 6,763 Total $ 30,900 $ 32,794 $ 30,491 |
OTHER NON- INTEREST EXPENSES
OTHER NON- INTEREST EXPENSES | 12 Months Ended |
Dec. 31, 2016 | |
Other Non Interest Expenses [Abstract] | |
Other Noninterest Expenses [Text Block] | NOTE 25 – O THER N ON - INTEREST E XPENSES A detail of other non-interest expenses is as follows: Year Ended December 31, 2016 2015 2014 (In thousands) Supplies and printing $ 1,502 $ 3,101 $ 2,140 Provision (release) for off-balance sheet exposures 1,173 261 (653) Amortization of intangible assets 4,896 5,143 4,943 Servicing and processing fees 4,604 4,817 5,524 Write-down and losses on sale of non-real estate repossessed properties 689 755 737 Other 8,022 8,152 6,348 Total $ 20,886 $ 22,229 $ 19,039 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
INCOME TAXES [Text Block] | NOTE 26 – 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 t o U.S. and USVI income tax only on its income from sources within the U.S. and USVI or income effectively connected with the conduct of a trade or business in those regions. Any such tax paid 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 no t entitled to file consolidated tax returns and, thus, the Corporation is not able to utilize losses from one subsidiary to offset gains in another subsidiary. Accordingly, in order to obtain a tax benefit from a net operating loss (“NOL”), a particular su bsidiary 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 Puert o Rico and 85 % on dividends received from other taxable domestic corporations. The Corporation has maintained an effective tax rate lower than the maximum statutory rate mainly by investing in government obligations and mortgage-backed securities exem pt from U.S. and Puerto Rico income taxes and by doing business through an International Banking Entity (“IBE”) unit of the Bank, and through the Bank’s subsidiary, FirstBank Overseas Corporation, whose interest income and gain on sales is exempt from Puer to 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 spe cific activities identified in the IBE Act. An IBE that operates as a unit of a bank pays income taxes at the corporate standard rates to the extent that the IBE’s net income exceeds 20 % of the bank’s total net taxable income. The components of income tax expense are summarized below: Year Ended December 31, 2016 2015 2014 (In thousands) Current income tax expense $ (13,151) $ (6,339) $ (5,361) Deferred income tax (expense) benefit (23,879) (80) 306,010 Total income tax (expense) benefit $ (37,030) $ (6,419) $ 300,649 The differences between the income tax expense applicable to income before the provision for income taxes and the amount computed by applying the statutory tax rate in Puerto Rico were as follows: Year Ended December 31, 2016 2015 2014 Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income (Dollars in thousands) Computed income tax at statutory rate $ (50,801) (39.0) % $ (10,810) (39.0) % $ (35,738) (39.0) % Federal and state taxes - - % (190) (0.7) % (117) (0.1) % Adjustment in deferred tax due to change in tax rate - - % - - % (346) (0.4) % Benefit of net exempt income 14,995 11.5 % 9,780 35.3 % 15,202 17.0 % National receipts tax, net - - % - - % 628 0.7 % Effect of capital losses subject to preferential rates (727) (0.6) % (3,019) (10.9) % - - % Disallowed NOL carryforward resulting from net exempt income (6,396) (4.9) % (7,717) (27.8) % - - % Nontax deductible expenses (212) (0.2) % 365 1.3 % (193) (0.2) % (Decrease) increase in unrecognized tax benefits, including interest - - % - - % 1,763 2.0 % Return to provision adjustments (434) (0.3) % 1,174 4.2 % - - % Deferred tax valuation allowance 5,976 4.6 % 2,881 10.4 % 318,380 347.0 % Other-net 569 0.3 % 1,117 4.0 % 1,070 1.2 % Total income tax (expense) benefit $ (37,030) (28.6) % $ (6,419) (23.2) % $ 300,649 328.2 % For 201 6 , the Corporation recorded an income tax expense of $ 37.0 million compared to an income tax expense of $ 6.4 million for 201 5. The increase in income tax expense for 2016, when compared to 2015, was mainly driven by higher taxable income, as the year 2015 was impacted by an incremental pre-tax loss of $48.7 million on the bulk sale of assets. The effective tax rate for the year ended December 31, 201 6 was 28 % compared to 23% for the year ended December 31, 2015 . Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Significant components of the Corporation's deferred tax assets and liabilities as of December 31, 2016 and 2015 were as follows: December 31, 2016 2015 (In thousands) Deferred tax asset: Net operating loss carryforward $ 374,091 $ 378,160 Allowance for loan and lease losses 79,330 87,769 Tax credits available for carryforward 8,006 10,714 Unrealized loss on OREO valuation 11,467 11,633 Unrealized net loss on equity investment 187 6,236 Settlement payment-closing agreement 7,313 7,313 Legal reserve 1,807 2,953 Impairment on investment 4,438 3,178 Unrealized loss on available-for-sale securities, net 502 739 Reserve for insurance premium cancellations 724 631 Unrealized losses on derivatives activities 78 48 Other 15,642 17,993 Gross deferred tax assets 503,585 527,367 Less: Valuation allowance (207,216) (201,706) Total deferred tax assets, net of valuation allowance 296,369 325,661 Deferred tax liabilities: Differences between the assigned values and tax bases of assets and liabilities recognized in purchase business combinations 5,247 5,712 Unrealized gain on other investments 468 468 Servicing assets 8,997 8,218 Gross deferred tax liabilities 14,712 14,398 Net deferred tax assets $ 281,657 $ 311,263 Accounting for income taxes requires that companies assess whether a valuation allowance should be recorded against their deferred tax asset based on an assessment of the amount of the deferred tax asset that is “more likely than not” to be realized. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. Management assesses the valuation allowance recorded against deferred tax assets at each reporting date. The det ermination of whether a valuation allowance for deferred tax assets is appropriate is subject to considerable judgment and requires the evaluation of positive and negative evidence that can be objectively verified. Consideration must be given to all source s of taxable income available to realize the deferred tax asset, including, as applicable, the future reversal of existing temporary differences, future taxable income forecasts exclusive of the reversal of temporary differences and carryforwards, taxable income in carryback years and tax planning strategies. In estimating taxes, management assesses the relative merits and risks of the appropriate tax treatment of transactions taking into account statutory, judicial, and regulatory guidance. In 2010, the Corporation established a valuation allowance for substantially all of the deferred tax assets of its banking subsidiary, FirstBank, primarily due to significant operational losses driven by charges to the provision for loan losses, a three-year cumul ative loss position as of the end of the year 2010, and uncertainty regarding the amount of future taxable income that the Bank could forecast. As of December 31, 2014, based upon the assessment of all positive and negative evidence, management concluded t hat it was more likely than not that FirstBank will generate sufficient taxable income within the applicable NOL carry-forward periods to realize $ 308.2 million of its deferred tax assets and, therefore, reversed $302.9 million of the valuation allowance. The Corporation’s net deferred tax assets amounted to $28 1.7 million as of December 31, 2016, net of a valuation allowance of $207.2 million. The net deferred tax assets of the Corporation’s banking subsidiary, FirstBan k, amounted to $ 277.4 million as of December 31, 2016, net of a valuation allowance of $ 171.0 million, compared to $ 306.4 million as of December 31, 2015. During 2016, management reassessed the need for a valuation allowance and concluded, based upon the assessment of all positive and neg ative evidence, that it is more likely than not that FirstBank will generate sufficient taxable income within the applicable NOL carry-forward periods to realize $ 277.4 million of its deferred tax asset. The positive evidence considered by management to co nclude on the adequacy of the valuation allowance as of December 31, 2016 include s factors such as: FirstBank’s three-year cumulative g ain position of $ 206.7 million; forecasts of future profitability under several potential scenarios that support the part ial utilization of NOLs prior to their expir ation between 2021 through 2024; two consecutive years of taxable income (taxable year 2015 being the first year with taxable income since 2008 ); and sustained pre-tax pre-provision for loan losses income . These factors demon strate demand for FirstBank’s products and services and improvem ents in credit quality measures that have resulted in reduced credit exposures , when compared to the period that led to the full valuation allowance, and have resulted in improvem ents in both sustainability of profitability and management’s ability to forecast future losses. The negative evidence considered by management include s : Puerto Rico’s current economic conditions, which resulted in the enactment of the Puerto Rico Oversigh t Management and Economic Stability Act (“PROMESA”), the uncertainty related to government loan concentration and the still elevated levels of non-performing assets. In determining whether management’s projections of future taxable income used to deter mine the valuation allowance reversal are reliable, management considered objective evidence supporting the forecast’s assumptions as well as recent experience to conclude as to the Bank’s ability to reasonably project future results of operations. The ana lysis included the evaluation of multiple financial scenarios, including scenarios where credit losses remain elevated. Further, while Puerto Rico’s economy is expected to remain challenging due to inherent uncertainties, the Corporation believes that it c an reasonably forecast future taxable income at sufficient levels over the future period of time that FirstBank has available to realize part of the December 31, 2016 net deferred tax asset as further described below. The Corporation expects to realize approximately $ 171.5 million of deferred tax assets associated with FirstBank’s NOLs prior to their expiration periods, compared to $ 18 2 . 1 million expected to be realized as of December 31, 201 5 . In addition, as of December 31, 201 6 , approximately $ 117.0 million of the deferred tax assets of the Corporation are attributable to temporary differences or tax credit carry-forwards that have no expiration date, compared to $ 12 7 . 8 million in 201 5 . Approximately $ 20.5 million of other non-NOL s, related deferred t ax assets of the Corporation are fully reserved with a valuation allowance, compared to $ 1 9 . 4 million as of December 31, 201 5 , given limitations and uncertainties as to their future utilization. The increase in fully reserved deferred tax assets is related to the increase in cumulative other - than - temporary impairments on investment securities. The ability to recognize the remaining deferred tax assets that continue to be subject to a valuation allowance will be evaluated on a quarterly basis to determine if there are any significant events that would affect the ability to utilize these deferred tax assets. Management’s estimate of future taxable income is based on internal projections that consider historical performance, multiple internal scenarios and assumptions, as well as external data that management believes is reasonable. If events are identified that affect the Corporation’s ability to utilize its deferred tax assets, the analysis will be updated to determine if any adjustments to the valuation a llowance are required. If actual results differ significantly from the current estimates of future taxable income, even if caused by adverse macro-economic conditions, the remaining valuation allowance may need to be increased. Such an increase could have a material adverse effect on the Corporation’s financial condition and results of operations. Conversely, better than expected results and continued positive results and trends could result in further releases to the deferred tax valuation allowance ; any s uch decreases could have a material positive effect on the Corporation’s financial condition and results of operations. As of December 31, 2016, the Corporation did not have UTBs recorded on its books. During 2014, the Corporation reached a final sett lement with the IRS in connection with the 2007-2009 examination periods. As a result, during 2014, the Corporation released a portion of its reserve for uncertain tax positions, resulting in a tax benefit of $1.8 million, and paid $2.5 million to settle t he tax liability resulting from the audit. The following table reconciles the balance of UTBs: 2016 2015 2014 (In thousands) Balance at January 1, $ - $ - $ 4,310 (Decrease) increase related to positions taken during prior years - - (1,763) Decrease related to settlement with taxing authorities - - (2,547) Balance at December 31, $ - $ - $ - During the second quarter of 2015, the Corporation settled the previously accrued interest of $ 1.3 million related to the aforementioned IRS examination. The Corporation classifies all interest and penalties, if any, related to tax uncertainties as income tax expense. Audit periods remain open for review until the statute of limitations has passed. The statute of limitations under the 2011 PR code is four years; the statute of limitations for Virgin Islands and U.S. income tax purposes are each three years after a tax return is due or filed, whichever is later. The completion of an audit by the taxing authorities or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Corporation’s liability for in come taxes. Any such adjustment could be material to the results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. For Virgin Islands and U.S. income tax purposes, all tax years subs equent to 2012 remain open to examination. During 2015 and 2016, the IRS audited the US income tax return for the year 2012. During the first quarter of 2017, the IRS completed such audit without adjustments. For Puerto Rico tax purposes, all tax years subsequent to 2011 remain open to examination. During 2013, the Puerto Rico government approved Act No. 40, which imposed a national gross receipts tax. The national gross receipts tax for financial institution s was computed on the basis of 1 % of gross income net of allowable exclusions. Subject to certain limitations, a financial institution was able to claim a credit of 0.5 % of its gross income against its regular income tax or the alternative minimum tax. How ever, on December 22, 2014, the Governor of Puerto Rico signed Act No. 238, which amended the 2011 PR Code. Act No. 238 clarifies that the national gross receipts tax was not applicable to taxable years starting after December 31, 2014. Accordingly, the Co rporation did not record national gross receipts tax expense for 2015 or 2016. During 2014, a $ 5.7 million gross receipts tax expense was included as part of “Taxes, other than income taxes” in the consolidated statement of income and a $ 2.9 million benefi t related to this credit was recorded as a reduction to the provision for income taxes. On May 28 and September 30, 2015, the Puerto Rico legislature approved Act 72-2015 and Act 159-2015, respectively, which enacted amendments to the 2011 PR Code. The amendments related to the income tax provision include changes to the alternative minimum tax computation, and changes to the use limitation on NOLs and capital losses for 2015 and future taxable years. The change in the tax law affected the Corporation’s income tax computation by limiting the NOL deduction to 80 % of taxable income, compared to a 90 % limitation in prior years. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Lease Commitments [Abstract] | |
Lease Commitments [Text Block] | NOTE 27 – LEASE COMMITMENTS As of December 31, 2016, certain premises are leased with terms expiring through the year 2050. The Corporation has the option to renew or extend certain leases beyond the original term. Some of these leases require the payment of insurance, increases in property taxes, and other incidental costs. As of December 31, 2016, the obligation under various leases is as follows: Amount (In thousands) 2017 $ 10,735 2018 10,282 2019 9,473 2020 7,490 2021 6,270 2022 and later years 41,928 Total $ 86,178 Rental expense for offices and premises included in occupancy and equipment expense was $ 11.3 million in 2016 (2015 - $ 10.9 million; 2014- $ 10.6 million). |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2016 | |
FAIR VALUE [Text Block] | NOTE 28 – 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 whe ther 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 av ailable 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 age ncy 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 s imilar 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 whic h 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 p ricing 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 suppor ted by little or no market activity and are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models for which the determination of fair value r equired 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 availab le, market prices for identical or comparable assets (as is the case with MBS and callable U.S. agency debt) that are based on observable market parameters, including benchmark yields, reported trades, quotes from brokers or dealers, issuer spreads, bids, offers and reference data, including market research operations (Level 2). Observable prices in the market already consider the risk of nonperformance. During 2016, the Corporation recorded OTTI charges of $6.3 million on certain Puerto Rico government deb t securities, specifically 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 event of default in consideration of the latest information available ab out the Puerto Rico government’s financial condition. Refer to Note 5 - 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 discounted cash flows 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 Co rporation (Level 3). Private label MBS are collateralized by fixed-rate mortgages on single-family residential properties in the United States; the interest rate on the securities is variable, tied to 3-month LIBOR and limited to the weighted-average coup on of the underlying collateral. The market valuation represents the estimated net cash flows over the projected life of the pool of underlying assets applying a discount rate that reflects market observed floating spreads over LIBOR, with a widening sprea d based on a nonrated security. The market valuation is derived from a model that utilizes relevant assumptions such as the prepayment rate, default rate, and loss severity on a loan level basis. The Corporation modeled the cash flow from the fixed-rate mo rtgage collateral using a static cash flow analysis according to collateral attributes of the underlying mortgage pool (i.e., loan term, current balance, note rate, rate adjustment type, rate adjustment frequency, rate caps, and others) in combination with prepayment forecasts based on historical portfolio performance. 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, using an asset -level risk assessment method taking into account loan credit characteristics (loan-to-value, state, delinquency, property type and pricing behavior, 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 obs ervable market parameters and takes into consideration the credit risk component of paying counterparties, when appropriate, except when collateral is pledged. On interest caps, only the seller's credit risk is considered. The caps were valued using a dis counted cash flow approach based on the related LIBOR and swap rate for each cash flow. A credit spread is considered for those derivative instruments that are not secured. The cumulative mark-to-market effect of credit risk in the valuation of derivative instruments in 2016, 2015 and 2014 was immaterial. Assets and liabilities measured at fair value on a recurring basis are summarized below: As of December 31, 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 $ 408 $ - $ - $ 408 $ - $ - $ - $ - U.S. Treasury Securities 7,509 - - 7,509 7,497 - - 7,497 Noncallable U.S. agency debt - 356,919 - 356,919 - 315,467 - 315,467 Callable U.S. agency debt and MBS - 1,469,463 - 1,469,463 - 1,509,807 - 1,509,807 Puerto Rico government obligations - 24,707 2,121 26,828 - 26,327 1,890 28,217 Private label MBS - - 20,693 20,693 - - 25,307 25,307 Other investments - - 100 100 - - 100 100 Derivatives, included in assets: Purchased interest rate cap agreements - 554 - 554 - 806 - 806 Liabilities: Derivatives, included in liabilities: Written interest rate cap agreement - 552 - 552 - 798 - 798 Forward contracts - 201 - 201 - 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 years ended December 31, 2016, 2015, and 2014: 2016 2015 2014 Level 3 Instruments Only Securities Available for Sale (1) Securities Available for Sale (1) Securities Available for Sale (1) (In thousands) Beginning balance $ 27,297 $ 36,212 $ 43,292 Total gain (losses) (realized/unrealized): Included in earnings (387) (628) (388) Included in other comprehensive income 1,586 1,623 2,404 Purchases - 100 5,123 Sales - - (4,855) Principal repayments and amortization (5,582) (10,010) (9,364) Ending balance $ 22,914 $ 27,297 $ 36,212 ___________________ (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) as of December 31, 2016: December 31, 2016 (In thousands) Fair Value Valuation Technique Unobservable Input Range Investment securities available for sale: Private label MBS $ 20,693 Discounted cash flows Discount rate 14.1% Prepayment rate 6.5% -22.5% (Weighted Average 13.8%) Projected Cumulative Loss Rate 0.2% - 8.6% (Weighted Average 4%) Puerto Rico government obligations 2,121 Discounted cash flows 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, loss severity assumptions, and prepayment rates in isolation would generally result in an adverse effect on the fair value of the instruments. Meaningful and possib le shifts of each input were modeled to assess the effect on the fair value estimation. Puerto Rico Government Obligations : The significant unobservable input used in the fair value measurement is the assumed prepayment rate of the underlying residential mortgage loans collateral on these obligations that are guaranteed by the Puerto Rico Housing Finance Authority (“PRHFA”). A significant increase (decrease) in the assumed rate would lead to a higher (lower) fair value estimate. Loss severity and probabil ity 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 table below summarizes changes in unrealized gains and losses recorded in earnings for the years ended December 31, 2016, 2015, and 2014 for Level 3 assets and liabilities that are still held at the end of each year: Changes in Unrealized Losses (Year Ended December 31, 2016) Changes in Unrealized Losses (Year Ended December 31, 2015) Changes in Unrealized Losses (Year Ended December 31, 2014) Level 3 Instruments Only Securities Available for Sale Securities Available for Sale Securities Available for Sale (In thousands) Changes in unrealized losses relating to assets still held at reporting date: Net impairment losses on available-for-sale investment securities (credit component) $ (387) $ (628) $ (388) 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-c ost or fair value and repossessed assets) or write-downs of individual assets (e.g., goodwill, loans) . As of December 31, 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 December 31, 2016 (Losses) recorded for the Year Ended December 31, 2016 Level 1 Level 2 Level 3 (In thousands) Loans receivable (1) $ - $ - $ 442,081 $ (49,884) OREO (2) - - 137,681 (7,873) Mortgage servicing rights (3) - - 26,244 (325) (1) Consists 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) that 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 6.12%, Discount rate 11.19%. As of December 31, 2015, impairment or valuation adjustments were recorded for assets recognized at fair value on a non-recurring basis as shown in the following table: Carrying value as of December 31, 2015 (Losses) Gain recorded for the Year Ended December 31, 2015 Level 1 Level 2 Level 3 (In thousands) Loans receivable (1) $ - $ - $ 303,095 $ (27,245) OREO (2) - - 146,801 (10,494) Mortgage servicing rights (3) - - 24,282 (228) Loans Held For Sale (4) - - 8,135 338 (1) Consists 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) that 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 9.07%, Discount rate 10.65%. (4) The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans. As of December 31, 2014, impairment or valuation adjustments were recorded for assets recognized at fair value on a nonrecurring basis as shown in the following table: Carrying value as of December 31, 2014 (Losses) recorded for the Year Ended December 31, 2014 Level 1 Level 2 Level 3 (In thousands) Loans receivable (1) $ - $ - $ 446,816 $ (43,318) OREO (2) - - 124,003 (9,656) Mortgage servicing rights (3) - - 22,838 (228) Loans Held For Sale (4) - - 54,641 - (1) Consists 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) that 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 9.74%, Discount rate 10.60%. (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 are as follows: December 31, 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 Flows Weighted-average prepayment rate of 6.12%; weighted average discount rate of 11.19% The following is a description of the valuation methodologies used for instruments that are not measured or reported at fair value on a recurring basis or reported at fair value on a non-recurring basis. The estimated fair value was calculated using certain facts and assumptions, which vary depending on the specific financial instrument. Cash and due from banks and money market investments The carrying amounts of cash and due from banks and money market investments are reasonable estimates of their fair value. Money market investments include held-to-maturity securities, which have a contractual maturity of three months or less. The fair value of these securities is based on quoted market prices in active markets that incorporate the risk of nonperf ormance. 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 commerc ial 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 analysi s using risk-adjusted discount rates (Level 3). 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 pr oxy 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 value. Th is 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 loan s 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 wit h adjustments that the Corporation’s management believes a market participant would consider in determining fair value. Loans were classified by type, such as commercial, residential mortgage, and automobile. These asset categories were further segmented i nto 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 est imated 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 excl udes any value related to a customer account relationship. Other loans with no stated maturity, like credit lines, were valued at book value. Prepayment assumptions were considered for non-residential loans. For residential mortgage loans, prepayment 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 appropriate adjustments for expected credit losses and liquidity. For impaired collateral dependent loans, the impairment was primarily measured based on the fair value of the collateral, which is derived from appraisals that take into consideration prices in observab le 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 assumed. Discount rates were based on the LIBOR yield curve. The estimated fair value of total deposits excludes the fair value of core deposit intangibles, which represent the value of the customer relationship. The fair value of total deposits is measured by the value of demand deposits and savings deposits that bear a low or zero rate of interest and do not fluctuate in response to changes in interest rates. The fair value of brokered CDs, which are included within deposits, is determined using discounted cash flow anal yses over the full term of the CDs. The fair value of the CDs is computed using the outstanding principal amount. The discount rates used were based on brokered CD market rates as of the end of the year. The fair value does not incorporate the risk of non performance, since interests in brokered CDs are generally sold by brokers in amounts of less than $ 250,000 and, therefore, are insured by the FDIC. Securities sold under agreements to repurchase Some repurchase agreements reprice at least quarterly, and their outstanding balances are estimated to be their fair value. Where longer commitments are involved, fair value is estimated using exit price indications of the cost of unwinding the transactions as of the end of the reporting period. The brokers w ho 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 advances from the FHLB with fixed maturities is determined using discounted cash flow analyses over the full terms of the borrowings, using indications of the fair value of similar transactions. The cash flows assume no early repayment of the borrowings. Discount rates are based on the LI BOR yield curve. Advances from the FHLB are fully collateralized by mortgage loans and, to a lesser extent, investment securities. Other borrowings Other borrowings consist of junior subordinated debentures. Projected cash flows from the debentures were discounted using the Bloomberg BB Finance curve plus a credit spread. This credit spread was estimated using the difference in yield curves between swap rates and a yield curve that considers the industry and credit rating of the Corporation as issuer of t he debenture 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 December 31, 2016 and 2015: Total Carrying Amount in Statement of Financial Condition December 31, 2016 Fair Value Estimate December 31, 2016 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments $ 299,685 $ 299,685 $ 299,685 $ - $ - Investment securities available for sale 1,881,920 1,881,920 7,917 1,851,089 22,914 Investment securities held to maturity 156,190 132,759 - - 132,759 Other equity securities 42,992 42,992 - 42,992 - Loans held for sale 50,006 52,707 - 42,921 9,786 Loans, held for investment 8,886,873 Less: allowance for loan and lease losses (205,603) Loans held for investment, net of allowance $ 8,681,270 8,455,104 - - 8,455,104 Derivatives, included in assets 554 554 - 554 - Liabilities: Deposits 8,831,205 8,838,606 - 8,838,606 - Securities sold under agreements to repurchase 300,000 335,840 - 335,840 - Advances from FHLB 670,000 669,687 - 669,687 - Other borrowings 216,187 171,374 - - 171,374 Derivatives, included in liabilities 753 753 - 753 - 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 | 12 Months Ended |
Dec. 31, 2016 | |
SUPPLEMENTAL CASH FLOW INFORMATION [Text Block] | N OTE 29 – S UPPLEMENTAL C ASH F LOW I NFORMATION Supplemental cash flow information is as follows: Year Ended December 31, 2016 2015 2014 (In thousands) Cash paid for: Interest on borrowings $ 127,707 $ 93,053 $ 102,402 Income tax 3,198 4,494 7,751 Non-cash investing and financing activities: Additions to other real estate owned 47,808 76,725 48,601 Additions to auto and other repossessed assets 52,628 75,279 92,266 Capitalization of servicing assets 5,260 4,919 4,321 Loan securitizations 338,333 285,995 198,712 Loans held for investment transferred to held for sale 10,332 - - Loans held for sale transferred to loans held for investment 1,443 40,086 - Property plant and equipment transferred to other assets 1,221 - - Preferred stock exchanged for new common stock issued: Preferred stock exchanged (Series A through E) - - 26,022 New common stock issued - - 24,363 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) - |
REGULATORY MATTERS, COMMITMENTS
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES [Text Block] | NOTE 30 – REGULATORY MATTERS, COMMITMENTS, AND CONTINGENCIES The Corporation and FirstBank each is subject to various regulatory capital requirements imposed by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material adverse effect on the Corporation’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation must meet specific capital guidelines that involve quantitative m easures of the Corporation’s and FirstBank’s assets and liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Corporation’s capital amounts and classification are also subject to qualitative 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 Wri tten Agreement provides, among other things, that the holding company must serve as a source of strength to FirstBank, and that, except with the consent generally of the New York FED and/or the Federal Reserve Board, (1) the holding company may not pay div idends to stockholders or receive dividends from FirstBank, (2) the holding company and its nonbank subsidiaries may not make payments on trust-preferred securities or subordinated debt, and (3) the holding company cannot incur, increase, or guarantee debt or repurchase any capital securities. The Written Agreement also required the holding company to submit a capital plan acceptable to the New York FED that reflected sufficient capital at 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 language 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 brok ered CD plan, including a contingency funding plan, a non-performing asset reduction plan, a budget and profit plan, a strategic plan, and a plan for the reduction of classified and special mention assets. As of December 3 1 , 201 6 , the Corporation had comp leted all of the items included in the Capital Plan and is continuing to work on reducing non-performing loans. The Written Agreement also requires the submission to the regulators of quarterly progress reports. Although the Corporation and FirstBank be came 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 ca pital (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 FirstBank compute risk-weighted assets using the Standardized Appr oach required by the Basel III rules. T he Basel III rules require the Corporation to maintain an additional CET1 capital conservation buffer of 2.5 % to avoid limitations on both (i) capital distributions (e.g. repurchases of capital instruments or divide nd 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 is being progressively increased over a four-year period, increasing by that same percentage amount on each subsequent January 1 until it reaches the fully phased-in 2.5% CET1 requirement on Januar y 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 conserv ation buffer,” resulting in a required minimum CET1 ratio of at least 7 %, (ii) a minimum ratio of total Tier 1 capital to risk-weighted assets of at least 6.0 %, plus the 2.5% capital conservation buffer, resulting in a required minimum Tier 1 capital ratio of 8.5 %, (iii) a minimum ratio of total Tier 1 plus Tier 2 capital to risk-weighted assets of at least 8.0 %, plus the 2.5% capital conservation buffer, resulting in a required minimum total capital ratio of 10.5 %, and (iv) a required minimum leverage rati o 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 preferred securities (“TRuPs”) were fully phased out from Tier 1 capita l as of 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”) imposing a quarterly deposit insurance assess ment 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 surcharge, 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 subsequent periods , and applie s 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 add ition, under existing regulations, the FDIC reduced the initial base assessment rate, which reduces the standard risk-based assessment rate. This resulted in a decrease in the total FDIC insurance premium expense (standard risk-based assessment plus assess ment surcharge expense) of approximately $ 1.6 million in the second half 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 Ra tio 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, along with other federal regulatory agencies, proposed regulations governing incentive- based compensation practices at, among others, covered banking institutions , which includes all banking organizations with $1 billion or more in assets . These proposed rules are intended to better align the financial rewards for covered employees with an institution’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 inappropriate 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) effective 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. P lease refer to the discussion in “Part I – Item 7 – Business – Supervision and Regulation” included in the Corporation’s 2016 Form 10-K for a more complete discussion of supervision and regulatory matters and activities that affect the Corporation and its subsidiaries. The Corporation's and its banking subsidiary's regulatory capital positions as of December 31, 2016 and 2015 were as follows: Regulatory Requirements Actual For Capital Adequacy Purposes To be Well-Capitalized-General Thresholds Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) At December 31, 2016 Total Capital (to Risk-Weighted Assets) First BanCorp. $ 1,921,329 21.34% $ 720,329 8.0% N/A N/A FirstBank $ 1,872,120 20.80% $ 720,091 8.0% $ 900,114 10.0% Common Equity Tier 1 Capital (to Risk-Weighted Assets) First BanCorp. $ 1,597,117 17.74% 405,185 4.5% N/A N/A FirstBank $ 1,523,332 16.92% 405,051 4.5% 585,074 6.5% Tier I Capital (to Risk-Weighted Assets) First BanCorp. $ 1,597,117 17.74% $ 540,247 6.0% N/A N/A FirstBank $ 1,757,642 19.53% $ 540,068 6.0% $ 720,091 8.0% Leverage ratio First BanCorp. $ 1,597,117 13.70% $ 466,376 4.0% N/A N/A FirstBank $ 1,757,642 15.10% $ 465,740 4.0% $ 582,174 5.0% At 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 following table summarizes commitments to extend credit and standby letters of credit, and commitments to sell loans as of the indicated dates: December 31, 2016 2015 (In thousands) Financial instruments whose contract amounts represent credit risk: Commitments to extend credit: Construction undisbursed funds $ 41,271 $ 59,747 Unused personal lines of credit 667,552 687,585 Commercial lines of credit 421,437 361,226 Commercial letters of credit 47,515 24,359 Standby letters of credit 2,556 3,577 Commitments to sell loans 119,679 49,998 The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument on commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. Management uses the same credit policies and approval process in entering into commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses. Since certain commitments are expected to expire without being drawn upon, the total commitment amount does not nec essarily represent future cash requirements. For most of the commercial lines of credit, the Corporation has the option to reevaluate the agreement prior to making additional disbursements. In the case of credit cards and personal lines of credit, the Co rporation can cancel the unused credit facility at any time and without cause. Generally, the Corporation does not enter into interest rate lock agreements with prospective borrowers in connection with its mortgage banking activities . The amount of any co llateral obtained if deemed necessary by the Corporation upon an extension of credit is based on management’s credit evaluation of the borrower. Rates charged on loans that are finally disbursed are the rates being offered at the time the loans are closed; therefore, no fee is charged on these commitments. In general, commercial and standby letters of credit are issued to facilitate foreign and domestic trade transactions. Normally, commercial and standby letters of credit are short-term commitments u sed to finance commercial contracts for the shipment of goods. The collateral for these letters of credit includes cash or available commercial lines of credit. The fair value of commercial and standby letters of credit is based on the fees currently charg ed for such agreements, which, as of December 31, 2016 and 2015, was not significant. The Corporation obtained from GNMA commitment authority to issue GNMA mortgage-backed securities. Under this program, for 2016, the Corporation sold approximately $ 3 38.3 million of FHA/VA mortgage loan production into GNMA mortgage-backed securities. As of December 31, 2016 , First BanCorp. and its subsidiaries were defendants in various legal proceedings arising in the ordinary course of business. On at lea st a quarterly basis, the Corporation assesses its liabilities and contingencies in connection with threatened and outstanding legal cases, matters and proceedings, utilizing the latest information available. For cases, matters and proceedings where it is both probable the Corporation will incur a loss and the amount can be reasonably estimated, the Corporation establishes an accrual for the loss. Once established, the accrual is adjusted as appropriate to reflect any relevant developments. For cases, matte rs or proceedings where a loss is not probable or the amount of the loss cannot be estimated, no accrual is established. Any estimate involves significant judgement, given the varying stages of the proceedings (including the fact that some of them ar e currently in preliminary stages), the existence of multiple defendants in some of the current proceedings whose share of liability has yet to be determined, the numerous unresolved issues in the proceedings, and the inherent uncertainty of the various po tential outcomes of such proceedings. Accordingly, the Corporation’s estimate will change from time-to-time, and actual losses may be more or less than the current estimate . While the final outcome of legal cases, matters, and proceedings is inherently un certain, based on information currently available, Management believes that the final disposition of the Corporation’s legal cases, matters or proceedings will not have a material negative adverse effect on the Corporation’s consolidated financial position as a whole. However in the event of unexpected future developments, it is possible that the ultimate resolution of these cases, matters and proceedings, if unfavorable, may be material to the Corporation’s consolidated financial position on a particular p eriod. Ramirez Torres, et al. v Banco Popular de Puerto Rico, et al. FirstBank Puerto Rico has been named a defendant in a class action complaint captioned Ramirez Torres, et al. v . Banco Popular de Puerto Rico, et al . The complaint seeks damages and pre liminary and permanent injunctive relief on behalf of the purported class against Banco Popular de Puerto Rico and other financial institutions with insurance agency subsidiaries in Puerto Rico. Plaintiffs contend that in November 2015, Antilles Insurance Company obtained approval from the Puerto Rico Insurance Commissioner to market an endorsement that allowed its customers to obtain a reimbursement on their insurance premium for good experience, but that defendants failed to offer this product or disclose its existence to their customers, favoring other products instead, in violation of their fiduciary duties as insurance producers. Plaintiffs seek a determination that defendants unlawfully failed to comply with their fiduciary duty to disclose the existen ce of this new insurance benefit from this carrier, as well as double or treble damages (the latter subject to a determination that defendants engaged in anti-monopolistic practices in failing to offer this product). |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2016 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Text Block] | NOTE 31 – 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 variabil ity of earnings caused by changes in interest rates. The Corporation designates a de rivative as a fair value hedge, cash flow hedge or economic undesignated hedge when it enters into the derivative contract . As of December 31, 2016 and 201 5 , all deri vatives held by the Corporation were considered economic undesignated hedges. These undesignated hedges are recorded at fair value with the resulting gain or loss recognized in current earnings. The following summarizes the principal derivative activities used by the Corporation in managing interest rate risk: Interest rate cap agreements - Interest rate cap agreements provide the right to receive cash if a reference interest rate rises above a contractual rate. The value increases as the reference intere st 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 settle over the standard de livery 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 fac ilitate net settlement and that provide for delivery of a security within the tim e 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 ins truments that need to be marked to market. These securities are used to e conomically hedge the FHA/VA residential mortgage loan securitizations of the mortgage-banking operations . Unrealized gains (losses) are recognized as part of mortgage banking activities in the consolidated statement of income. To satisfy the needs of its customers, the Corporation may enter into non - hedging transactions. 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 enters into certain contracts with embedded derivatives that do not require separate accounting as these are clearly and closely related to the economic characteristics of the host contract. When the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, it is bifurcated, carried at fair value, and designated as a trading or non - hedging derivative instrument. The following table summarizes the notional amounts of all derivative instruments: Notional Amounts (1) As of 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 33,000 30,000 $ 216,020 $ 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 conditions: Asset Derivatives Liability Derivatives Statement of Financial Condition Location December 31, December 31, Statement of Financial Condition Location December 31, December 31, 2016 2015 2016 2015 Fair Value Fair Value Fair Value Fair Value (In thousands) Undesignated economic hedges: Interest rate contracts: Written interest rate cap agreements Other assets $ - $ - Accounts payable and other liabilities $ 552 $ 798 Purchased interest rate cap agreements Other assets 554 806 Accounts payable and other liabilities - - Forward Contracts: Sales of TBA GNMA MBS pools Other assets - - Accounts payable and other liabilities 201 123 $ 554 $ 806 $ 753 $ 921 The following table summarizes the effect of derivative instruments on the statement of income: Gain (or Loss) Location of Gain (or loss) Year ended Recognized in Income on December 31, Derivatives 2016 2015 2014 (In thousands) Undesignated economic hedges: Interest rate contracts: Interest rate swap agreements Interest income - Loans $ - $ - $ 1,258 Written and purchased interest rate cap agreements Interest income - Loans - 139 - Forward contracts: Sales of TBA GNMA MBS pools Mortgage Banking Activities (78) 25 (322) Total (loss) gain on derivatives $ (78) $ 164 $ 936 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 values are not necessarily indicative of the future impact of derivative instruments on earnings. This will depend, for the most part, on the shape of the yield curve, and the level of interest rates, as well as the expectations for rates in the future. As of December 31, 2016, the Corporation has not entered into any derivative instrument containing credit-risk-related contingent features. Credit and Market Risk of Derivatives The Corporation uses derivative instruments to manage interest rate risk. By using derivative instruments, the Corporation is exposed to credit and market risk. If the counterparty fails to perform, credit risk is equal to the extent of the Corporation’s fair value gain in the derivative. When the fair value of a derivative instrument contract is positive, this generally indicates that the counterparty owes the Corporation and, therefore, creates a credit risk for the Corporation. When the fair value of a derivative instrument contract is negative, the Corporation owes the counterparty and, therefore, it has no credit risk. The Corporation minimizes its credit risk in derivative instruments by entering into transactions with reputable broker dealers (fina ncial institutions) that are reviewed periodically by the Management Investment and Asset Liability Committee of the Corporation (“MIALCO”) and by the Board of Directors. The Corporation also maintains a policy of requiring that all derivative instrument c ontracts be governed by an International Swaps and Derivatives Association Master Agreement, which includes a provision for netting; most of the Corporation’s agreements with derivative counterparties include bilateral collateral arrangements. The bilatera l collateral arrangement permits the counterparties to perform margin calls in the form of cash or securities in the event that the fair market value of the derivative favors either counterparty. The Corporation has a policy of diversifying derivatives cou nterparties to reduce the consequences of counterparty default. The Corporation has credit risk of $ 0.6 million as of December 31, 2016 ( 2015 — $ 0.8 million) related to derivative instruments with positive fair values. The credit risk does not cons ider the value of any collateral and the effects of legally enforceable master netting agreements. There were no credit losses associated with derivative instruments recognized in 2016, 2015, or 2014. Market risk is the adverse effect that a change in in terest rates or implied volatility rates has on the value of a financial instrument. The Corporation manages the market risk associated with interest rate contracts by establishing and monitoring limits as to the types and degree of risk that may be undert aken. The Corporation’s derivative activities are monitored by the MIALCO as part of its risk-management oversight of the Corporation’s treasury functions. |
OFFSETTING OF ASSETS AND LIABIL
OFFSETTING OF ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
OFFSETTING OF ASSETS AND LIABILITIES | NOTE 32 – 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 amounts owed in the related agreement and any other amount or obligation owed in respect of any other agreement or transaction between them. The following table presents inf ormation about the offsetting of financial assets and liabilities as well as derivative assets and liabilities: Offsetting of Financial Assets and Derivative Assets As of December 31, 2016 Net Amounts of Assets Presented in the Statement of Financial Position Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Financial Instruments Cash Collateral Net Amount (In thousands) Description Derivatives $ 554 $ - $ 554 $ (554) $ - $ - Securities purchased under agreement to resell 200,000 (200,000) - - - - Total $ 200,554 $ (200,000) $ 554 $ (554) $ - $ - As of December 31, 2015 Net Amounts of Assets Presented in the Statement of Financial Position Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Financial Instruments Cash Collateral Net Amount (In thousands) Description Derivatives $ 806 $ - $ 806 $ (806) $ - $ - Securities purchased under agreement to resell 200,000 (200,000) - - - - Total $ 200,806 $ (200,000) $ 806 $ (806) $ - $ - Offsetting of Financial Liabilities and Derivative Liabilities As of December 31, 2016 Net Amounts of Liabilities Presented in the Statement of Financial Position Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Financial Instruments Cash Collateral Net Amount (In thousands) Description Securities sold under agreements to repurchase $ 200,000 $ (200,000) $ - $ - $ - $ - As of December 31, 2015 Net Amounts of Liabilities Presented in the Statement of Financial Position Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Financial Instruments Cash Collateral Net Amount (In thousands) Description Securities sold under agreements to repurchase $ 600,000 $ (200,000) $ 400,000 $ (400,000) $ - $ - |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
SEGMENT INFORMATION [Text Block] | NOTE 33 – SEGMENT INFORMATION Based upon the Corporation’s organizational structure and the information provided to the Chief Executive Officer of the Corporation and, to a lesser extent, the Board of Directors, the operating segments are driven primarily by the Corporation’s lines of business for its operations in Puerto Rico, the Corporation’s principal market, and by geographic areas for its operations outside of Puerto Rico. As of December 31, 2016 , the Corporation had six reportable segments: Commercial and Corporate Banking; Mortgage Banking; Consumer (Retail) Banking; Treasury and Investments; United States Operations; and Virgin Islands Operations. Management determined the reportable segments based on the internal reporting used to evaluate performance and to assess where to allocate resources. Other factors such as the Corporation’s organizational chart, nature of the products, distribution channels, and the economic characteristics of the products were also considered in the determination of the reportable segments. The Commercial and Corporate Banking segment consists of the Corporation’s lending and other services for large customers represented by specialized and middle-market clients and the public sector. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans, and floor plan financings, as well as other products, such as cash management and business management services. The Mortgage Banking segment consists of the origination, sale, and servicing o f 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. T he 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 invest ment 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. 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 condu cted by the Corporation in the USVI and BVI, including commercial and retail banking services. The accounting policies of the segments are the same as those referred to in Note 1 – Nature of Business and Summary of Significant Accounting Policies to the consolidated financial statements. The Corporation evaluates the performance of the segments based on net interest income, the provision for loan and lease losses, non-interest income and direct non-interest expenses. The segments are also evaluated base d 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 for the years ended December 31, 2016, 2015, and 2014: Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Banking Treasury and Investments United States Operations Virgin Islands Operations Total (In thousands) For the year ended December 31, 2016: Interest income $ 138,955 $ 179,485 $ 123,084 $ 50,372 $ 56,037 $ 37,359 $ 585,292 Net (charge) credit for transfer of funds (49,435) 13,996 (26,364) 60,787 1,016 - - Interest expense - (24,787) - (57,924) (15,240) (3,223) (101,174) Net interest income 89,520 168,694 96,720 53,235 41,813 34,136 484,118 (Provision) release for loan and lease losses (24,873) (34,246) (28,578) - 1,369 (405) (86,733) Non-interest income 19,531 44,535 7,811 5,423 3,554 7,100 87,954 Direct non-interest expenses (38,170) (112,787) (40,676) (4,047) (30,678) (27,596) (253,954) Segment income $ 46,008 $ 66,196 $ 35,277 $ 54,611 $ 16,058 $ 13,235 $ 231,385 Average earnings assets $ 2,562,245 $ 1,951,214 $ 2,497,037 $ 2,616,877 $ 1,226,633 $ 612,570 $ 11,466,576 Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Banking Treasury and Investments United States Operations Virgin Islands Operations Total (In thousands) For the year ended December 31, 2015: Interest income $ 141,820 $ 194,961 $ 133,067 $ 49,534 $ 46,804 $ 39,383 $ 605,569 Net (charge) credit for transfer of funds (49,149) 17,260 (17,299) 36,908 12,280 - - Interest expense - (23,774) - (60,221) (16,192) (3,116) (103,303) Net interest income 92,671 188,447 115,768 26,221 42,892 36,267 502,266 (Provision) release for loan and lease losses (30,017) (46,657) (101,604) - 7,955 (1,722) (172,045) Non-interest income (loss) 16,027 41,854 12,487 (15,897) 2,795 10,616 67,882 Direct non-interest expenses (37,345) (133,397) (42,470) (3,840) (28,674) (34,231) (279,957) Segment income (loss) $ 41,336 $ 50,247 $ (15,819) $ 6,484 $ 24,968 $ 10,930 $ 118,146 Average earnings assets $ 2,607,230 $ 1,951,047 $ 2,891,988 $ 2,740,120 $ 1,024,939 $ 646,966 $ 11,862,290 Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Banking Treasury and Investments United States Operations Virgin Islands Operations Total (In thousands) For the year ended December 31, 2014: Interest income $ 115,997 $ 215,170 $ 163,242 $ 54,223 $ 44,882 $ 40,435 $ 633,949 Net (charge) credit for transfer of funds (37,375) 17,629 (12,364) 20,463 11,647 - - Interest expense - (24,445) - (68,517) (19,273) (3,641) (115,876) Net interest income 78,622 208,354 150,878 6,169 37,256 36,794 518,073 (Provision) release for loan and lease losses (17,605) (79,932) (40,084) - 27,650 441 (109,530) Non-interest income 13,515 40,018 5,241 264 2,450 7,139 68,627 Direct non-interest expenses (39,444) (126,290) (46,963) (5,368) (26,596) (39,319) (283,980) Segment income $ 35,088 $ 42,150 $ 69,072 $ 1,065 $ 40,760 $ 5,055 $ 193,190 Average earnings assets $ 2,142,122 $ 1,967,202 $ 3,613,354 $ 2,691,906 $ 976,151 $ 656,197 $ 12,046,932 The following table presents a reconciliation of the reportable segment financial information to the consolidated totals: Year Ended December 31, 2016 2015 2014 (In thousands) Net income: Total income for segments and other $ 231,385 $ 118,146 $ 193,190 Other non-interest income (loss) (1) - 13,443 (7,279) Other operating expenses (2) (101,126) (103,873) (94,273) Income before income taxes 130,259 27,716 91,638 Income tax (expense) benefit (37,030) (6,419) 300,649 Total consolidated net income $ 93,229 $ 21,297 $ 392,287 Average assets: Total average earning assets for segments $ 11,466,576 $ 11,862,290 $ 12,046,932 Other average earning assets (1) - - 1,943 Average non-earning assets 923,566 919,263 598,570 Total consolidated average assets $ 12,390,142 $ 12,781,553 $ 12,647,445 (1) The bargain purchase gain on the acquisition of assets and assumption of deposits from Doral Bank in 2015 as well as the activities related to FirstBank's equity interest in CPG/GS are presented as Other non-interest income (loss) and the investment in CPG/GS is presented as Other average earning assets in the tables above. (2) Expenses pertaining to corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment are not included in the reported financial results of the operating segments. The unallocated corporate expenses include certain general and administrative expenses and related depreciation and amortization expenses. The following table presents revenues (interest income plus non-interest income) and selected balance sheet data by geography based on the location in which the transaction is originated: 2016 2015 2014 (In thousands) Revenues: Puerto Rico $ 568,180 $ 575,016 $ 588,744 United States 60,607 61,879 58,979 Virgin Islands 44,459 49,999 47,574 Total consolidated revenues $ 673,246 $ 686,894 $ 695,297 Selected Balance Sheet Information: Total assets: Puerto Rico $ 9,765,530 $ 10,648,179 $ 10,969,305 United States 1,499,548 1,202,318 1,072,962 Virgin Islands 657,377 722,522 685,568 Loans: Puerto Rico $ 6,926,719 $ 7,332,274 $ 7,544,845 United States 1,382,440 1,125,501 982,713 Virgin Islands 627,720 690,476 649,813 Deposits: Puerto Rico (1) $ 6,291,353 $ 6,747,638 $ 6,687,844 United States (2) 1,564,839 1,606,723 1,836,430 Virgin Islands 975,013 983,763 959,671 (1) For 2016, 2015, and 2014, includes $1.4 billion, $2.1 billion, and $2.9 billion, respectively, of brokered CDs allocated to Puerto Rico operations. (2) For 2016 includes $60.1 million of brokered CDs allocated to the United States operations. |
FIRST BANCORP. (Holding Company
FIRST BANCORP. (Holding Company Only) Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
FIRST BANCORP. (Holding Company Only) Financial Information [Text Block] | NOTE 34- FIRST BANCORP. (HOLDING COMPANY ONLY) FINANCIAL INFORMATION The following condensed financial information presents the financial position of the Holding Company only as of December 31, 2016 and 2015, and the results of its operations and cash flows for the years ended December 31, 2016, 2015, and 2014: Statements of Financial Condition As of December 31, 2016 2015 (In thousands) Assets Cash and due from banks $ 29,393 $ 29,103 Money market investments 6,111 6,111 Other investment securities 285 285 Loans held for investment, net 227 266 Investment in First Bank Puerto Rico, at equity 1,946,211 1,888,036 Investment in First Bank Insurance Agency, at equity 10,941 14,382 Investment in FBP Statutory Trust I 2,929 2,929 Investment in FBP Statutory Trust II 3,561 3,866 Other assets 3,791 4,632 Total assets $ 2,003,449 $ 1,949,610 Liabilities and Stockholders' Equity Liabilities: Other borrowings $ 216,187 $ 226,492 Accounts payable and other liabilities 1,019 28,984 Total liabilities 217,206 255,476 Stockholders' equity 1,786,243 1,694,134 Total liabilities and stockholders' equity $ 2,003,449 $ 1,949,610 Statements of Income Year Ended December 31, 2016 2015 2014 (In thousands) Income Interest income on money market investments $ 20 $ 20 $ 20 Dividend income from banking subsidiaries 34,876 - - Dividend income from non-banking subsidiaries 7,000 - - Other income 241 498 220 42,137 518 240 Expense Other borrowings 7,705 7,450 7,199 Other operating expenses 3,481 2,412 2,614 11,186 9,862 9,813 Loss on sale and impairment on equity securities - - (29) Gain on early extinguishment of debt 4,217 - - Income (loss) before income taxes and equity in undistributed earnings of subsidiaries 35,168 (9,344) (9,602) Equity in undistributed earnings of subsidiaries 58,061 30,641 401,889 Net Income $ 93,229 $ 21,297 $ 392,287 Other comprehensive (loss) income, net of tax (6,641) (9,398) 60,385 Comprehensive income $ 86,588 $ 11,899 $ 452,672 Statements of Cash Flows Year Ended December 31, 2016 2015 2014 (In thousands) Cash flows from operating activities: Net income $ 93,229 $ 21,297 $ 392,287 Adjustments to reconcile net income to net cash used in operating activities: Stock-based compensation 3,563 2,835 1,962 Equity in undistributed earnings of subsidiaries (58,061) (30,641) (401,889) Loss on sales/impairment of investment securities - - 29 Gain on early extinguishment of debt (4,217) - - Accretion of discount on loans (11) (7) (3) Net decrease (increase) in other assets 802 (293) (260) Net (decrease) increase in other liabilities (26,685) 6,643 7,261 Net cash provided by (used in) operating activities 8,620 (166) (613) Cash flows from investing activities: Principal collected on loans 50 63 38 Proceeds from sales of available-for-sale securities - - 6 Net cash provided by investing activities 50 63 44 Cash flows from financing activities: Repurchase of common stock (1,132) (1,174) (946) Repayment of junior subordinated debentures (7,025) - - Dividends paid on preferred stock (223) - - Issuance costs of common stock issued in exchange for preferred stock Series A through E - - (62) Net cash used in financing activities (8,380) (1,174) (1,008) Net increase (decrease) in cash and cash equivalents 290 (1,277) (1,577) Cash and cash equivalents at beginning of the year 35,214 36,491 38,068 Cash and cash equivalents at end of year $ 35,504 $ 35,214 $ 36,491 Cash and cash equivalents include: Cash and due from banks $ 29,393 $ 29,103 $ 30,380 Money market instruments 6,111 6,111 6,111 $ 35,504 $ 35,214 $ 36,491 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
SUBSEQUENT EVENTS [Text Block] | NOTE 35 – SUBSEQUENT EVENTS On March 1, 2017, the Corporation completed the applicable regulatory filings to change the tax status of its subsidiary, First Federal Finance, from a taxable corporation to non-taxable “pass-through” entity. The tax planning action will allow the Corporation to realize tax benefits from the utilization of pass-through ordinary net operating losses available at FirstBank against now pass-through ordinary income from this profitable subsidiary. Under Puerto Rico Interna l Revenue Code, pass-through ordinary net operating losses can only be used to offset pass-through ordinary income. As of December 31, 2016 , FirstBank has a deferred tax asset amounting to $ 14.7 million related to pass-through ordinary net operating losses, which is subject to a full valuation allowance. Based upon the evaluation of positive and negative evidence, management concluded during the first quarter of 2017 and as a result of the change in tax status that First Federal Finance will generate suffici ent taxable income within the carryforward period for FirstBank to realize its $14.7 million deferred tax asset on available pass-through ordinary net operating losses. On March 1, 2017, the Corporation also completed the applicable regulatory filings to chan ge the tax status of its subsidiary, FirstBank Insurance, from a taxable corporation to non-taxable “pass-through” entity. The tax planning action will allow the Corporation to offset pass-through income projected to be earned by FirstBank Insurance with t he projected net operating losses at the Holding Company. During the first quarter of 2017, the Corporation received an unsolicited offer and sold its outstanding participation in the PREPA line of credit with a book value of $ 64 million at the time of sa le (principal balance of $ 75 million), thereby reducing its direct exposure to the Puerto Rico government. A specific reserve of approximately $ 10.2 million had been allocated to this loan. Gross proceeds from the sale of $ 53.2 million have resulted in a n incremental loss of $ 0.6 million as compared to the book value, net of reserve. This loss was recognized at the time of the sale in the first quarter of 2017. The Corporation has performed an evaluation of all other events occurring subsequent to Decemb er 31, 2016; management has determined that there are no additional events occurring in this period that require disclosure in or adjustment to the accompanying financial statements. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Business [Policy Text Block] | Nature of business First BanCorp. is a publicly owned, Puerto Rico-chartered financial holding company that is subject to reg ulation, supervision, and examination by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). The Corporation is a full service provider of financial services and products with operations in Puerto Rico, the United States, t he U.S. Virgin Islands (USVI), and the British Virgin Islands (BVI). The Corporation provides a wide range of financial services for retail, commercial, and institutional clients. As of December 31, 201 6 , the Corporation controlled two wholly owned subsi diaries: FirstBank Puerto Rico (“FirstBank” or the “Bank”), and FirstBank Insurance Agency, Inc. (“FirstBank Insurance Agency”). FirstBank is a Puerto Rico-chartered commercial bank, and FirstBank Insurance Agency is a Puerto Rico-chartered insurance agen cy. FirstBank is subject to the supervision, examination, and regulation of both the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico (“OCIF”) and the Federal Deposit Insurance Corporation (the “FDIC”). Deposits are insured through the FDIC Deposit Insurance Fund. FirstBank also operates in the state of Florida (USA), subject to regulation and examination by the Florida Office of Financial Regulation and the FDIC, in the USVI, subject to regulation and examination by the United States Virgin Islands Banking Board, and in the BVI, subject to regulation by the British Virgin Islands Financial Services Commission. The Consumer Financial Protection Bureau (“CFBP”) regulates FirstBank’s consumer financial products and serv ices. FirstBank Insurance Agency is subject to the supervision, examination, and regulation of the Office of the Insurance Commissioner of the Commonwealth of Puerto Rico. As of December 31, 2016, FirstBank conducts its business through its main office located in San Juan, Puerto Rico, 48 banking branches in Puerto Rico , 11 branches in the USVI and BVI, and 11 branches in the state of Florida (USA). As of December 31, 2016, FirstBank has 6 wholly owned subsidiaries with operations in Puerto Rico: First Federal Finance Corp. (d/b/a Money Express La Financiera), a finance company specializing in the origination of small loans with 28 offices in Puerto Rico; First Management of Puerto Rico, a domestic corporation, which holds tax-exempt assets; FirstBank Pu erto Rico Securities Corp., a broker-dealer subsidiary engaged in municipal securities underwriting and selling for local Puerto Rico municipal bond issuers and other investment banking activities, such as advisory services, capital raising efforts on beha lf of clients and assistance with financial transaction structuring. FirstBank Overseas Corporation, an international banking entity organized under the International Banking Entity Act of Puerto Rico; and two other companie s that hold and operate certain other real estate owned properties. On February 27, 2015, FirstBank acquired 10 Puerto Rico branches of Doral Bank through an alliance with Banco Popular of Puerto Rico (“Popular”), who was the successful lead bidder with the FDIC on the failed Doral Ban k, as well as other co-bidders (the “Doral Bank transaction”). This transaction is described in more detail in Note 2 – Business Combination, to the consolidated financial statements. |
Principles of consolidation [Policy Text Block] | Principles of consolidation The consolidated financial statements include the accounts of the Corporation and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Statutory business trusts that are wholly owned by the Corporation and are issuers of trust-preferre d securities, and entities in which the Corporation has a non- controlling interest, are not consolidated in the Corporation’s consolidated financial statements in accordance with authoritative guidance issued by the Financial Accounti ng Standards Board (“F ASB”) for consolidation of variable interest entities (“VIE”) . See “Variable Interest Entities” below for further details regarding the Corporation’s accounting policy for these entities . |
Reclassifications [Policy Text Block] | Reclassifications 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 underwritten 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 securities. 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 Corporation concluded that the impact of accounting for the transaction as held-to-maturity 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 financing arrangements have been accounted for and reported as held-to-maturity investment securities and not as loans since the second quarter of 2016. For purposes of comparability, prior period amounts have been reclassified to conform to the 2016 presentation. |
Use of estimates in the preparation of financial statements [Policy Text Block] | Use of estimates in the preparation of financial statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent li abilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management has made significant estimates in several areas, including the allowance for loan and lease losses, valuations of investment securities, the fair value of assets acquired, including purchased credit-impaired (PCI) loans, valuations of residential mortgage servicing rights, valuations of other real estate owned (“OREO ”) properties, and income taxes, including deferred taxes. |
Cash and cash equivalents [Policy Text Block] | Cash and cash equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from the Federal Reserve Bank of New York (the “New York FED” or “Feder al Reserve”) and other depository institutions. Also includes time deposits, money market funds and short-term investments with original maturities of three months or less. |
Investment securities [Policy Text Block] | Investment securities The Corporation classifies its investments in debt and equi ty securities into one of four categories: Held-to-maturity — Securities that the entity has the intent and ability to hold to maturity. These securities are carried at amortized cost. The Corporation may not sell or transfer held-to-maturity securities without calling into question its intent to hold other debt securities to maturity, unless a nonrecurring or unusual event that could not have been reasonably anticipated has occurred. Trading — Securities that are bought and held principally for the purpose of selling them in the near term. These securities are carried at fair value, with unrealized gains and losses reported in earnings. As of December 31, 2016 and 2015, the Corporation did not hold investment securities for trading purposes. Available-for-sale — Securities not classified as held-to-maturity or trading. These securities are carried at fair value, with unrealized holding gains and losses, net of deferred taxes, reported in other comprehensive income (“OCI”) as a separate component of stockholders’ equity, and do not affect earnings until they are realized or are deemed to be other-than-temporarily impaired. Other equity s ecurities — Equity securities that do not have readily available fair values are classified as other equity securities in the consolidated statements of financial condition. These securities are stated at the lower of cost or realizable value. This catego ry is principally composed of stock that is owned by the Corporation to comply with Federal Home Loan Bank (FHLB) regulatory requirements. Their realizable value equals their cost. Premiums and discounts on investment securities are amortized as an adjus tment to interest income on investments over the life of the related securities under the interest method. Net realized gains and losses and valuation adjustments considered other-than-temporary, if any, related to investment securities are determined usi ng the specific identification method and are reported in non-interest income as net gain (loss) on sale of investments and net impairment losses on debt securities, respectively. Purchases and sales of securities are recognized on a trade-date basis. |
Evaluation of other-than-temporary impairment (OTTI) on held-to-maturity and available-for-sale securities [Policy Text Block] | Ev aluation of other-than-temporary impairment (“OTTI”) on held-to-maturity and available-for-sale securities On a quarterly basis, the Corporation performs an assessment to determine whether there have been any events or economic circumstances indicating th at a security with an unrealized loss has suffered an OTTI. A security is considered impaired if the fair value is less than its amortized cost basis. The Corporation evaluates whether the impairment is other-than-temporary depending upon whether the po rtfolio consists of debt securities or equity securities, as further described below. The Corporation employs a systematic methodology that considers all available evidence in evaluating a potential impairment of its investments. The impairment analysis of debt securities places special emphasis on the analysis of the cash position of the issuer and its cash and capital generation capacity, which could increase or diminish the issuer’s ability to repay its bond obligations, the length of time and the exte nt to which the fair value has been less than the amortized cost basis, any adverse change to the credit conditions and liquidity of the issuer, taking into consideration the latest information 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 government actions affecting the issuer’s industry and actions taken by the issuer to deal with the economic climate. The Corporation also takes int o consideration changes in the near-term prospects of the underlying collateral of a security, if any, such as changes in default rates, loss severity given default, and significant changes in prepayment assumptions and the level of cash flows generated fr om the underlying collateral, if any, supporting the principal and interest payments of the debt securities. OTTI must be recognized in earnings if the Corporation has the intent to sell the debt security or it is more likely than not that it will be requi red to sell the debt security before recovery of its amortized cost basis. However, even if the Corporation does not expect to sell a debt security, it must evaluate expected cash flows to be received and determine if a credit loss has occurred. An unrea lized loss is generally deemed to be other-than-temporary and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of an OTTI, if any, is recorded as net impairment losses on debt securities in the statements of income, while the remaining portion of the impairment loss is recognized in OCI, net of taxes, and included as a component of stockholders’ equity provided the Corporation does n ot intend to sell the underlying debt security and it is more likely than not that the Corporation will not have to sell the debt security prior to recovery. The previous amortized cost basis less the OTTI recognized in earnings is the new amortized cost basis of the investment. The new amortized cost basis is not adjusted for subsequent recoveries in fair value. However, for debt securities for which OTTI was recognized in earnings, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted as interest income as long as the security is not placed in non-accrual status. Debt securities held by the Corporation at year-end primarily consisted of securities issued by U.S. government-sponsored entities, bonds i ssued by the Puerto Rico government and private label mortgage-backed securities (“MBS”). Given the explicit and implicit guarantees provided by the U.S. Federal government, the Corporation believes the credit risk in securities issued by the U.S. governme nt-sponsored entities is low. The Corporation’s OTTI assessment is concentrated on Puerto Rico government debt securities, with an amortized cost of $42.7 million as of December 31, 2016, and on private label MBS with an amortized cost of $28.8 million as of December 31, 2016. The discounted cash flow analyses applied to the Puerto Rico government debt securities are calculated based on the probability of default and loss severity assumptions. The valuation for private label MBS is derived from a discounted cash flow analysis that considers relevant assumptions such as the prepayment rate, default rate, and loss severity on a loan level basis. For further information, refer to Note 5 - Investment Securities, to the consolidated financial statements. The imp airment analysis of equity securities is performed and reviewed on an ongoing basis based on the latest financial information and any supporting research report made by a major brokerage firm. This analysis is very subjective and based on, among other thi ngs, relevant financial data such as capitalization, cash flow, liquidity, systematic risk, and debt outstanding of the issuer. Management also considers the issuer’s industry trends, the historical performance of the stock and credit ratings, if applicabl e, as well as the Corporation’s intent to hold the security for an extended period. If management believes there is a low probability of recovering book value in a reasonable time frame, it records an impairment by writing the security down to market value . As previously mentioned, equity securities are monitored on an ongoing basis but special attention is given to those securities that have experienced a decline in fair value for six months or more. An impairment charge is generally recognized when the f air value of an equity security has remained significantly below cost for a period of 12 consecutive months or more. |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | Loans held for investment Loans that the Corporation has the ability and intent to hold for the foreseeable future are classified as held for investment. The substantial majority of the Corporation’s loans are classified as held for investment. Loans are stated at the princip al outstanding balance, net of unearned interest, cumulative charge-offs, unamortized deferred origination fees and costs, and unamortized premiums and discounts. Fees collected and costs incurred in the origination of new loans are deferred and amortized using the interest method or a method that approximates the interest method over the term of the loan as an adjustment to interest yield. Unearned interest on certain personal loans, auto loans and finance leases and discounts and premiums are recognized a s income under a method that approximates the interest method. When a loan is paid-off or sold, any unamortized net deferred fee (cost) is credited (charged) to income. Credit card loans are reported at their outstanding unpaid principal balance plus uncol lected billed interest and fees net of amounts deemed uncollectible. Purchased credit-impaired (“PCI”) loans are reported net of any remaining purchase accounting adjustments. See “Loans Acquired” below for the accounting policy for PCI loans. Non-Perfor ming and Past-Due Loans - Loans on which the recognition of interest income has been discontinued are designated as non-performing. Loans are classified as non-performing when they are 90 days past due for interest and principal, with the exception of res idential mortgage loans guaranteed by the Federal Housing Administration (the “FHA”) or the Veterans Administration (the “VA”) and credit cards. It is the Corporation’s policy to report delinquent mortgage loans insured by the FHA or guaranteed by the VA a s loans past due 90 days and still accruing as opposed to non-performing loans since the principal repayment is insured. However, the Corporation discontinues the recognition of income for FHA/VA loans when such loans are over 15 months delinquent. As permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”), credit card loans are generally charged off in the period in which the account becomes 180 days past due. Credit card loans continue to accrue f inance charges and fees until charged off at 180 days. Loans generally may be placed on non-performing status prior to when required by the policies described above when the full and timely collection of interest or principal becomes uncertain (generally b ased on an assessment of the borrower’s financial condition and the adequacy of collateral, if any). When a loan is placed on non-performing status, any accrued but uncollected interest income is reversed and charged against interest income and amortizatio n of any net deferred fees is suspended. Interest income on non-performing loans is recognized only to the extent it is received in cash. However, when there is doubt regarding the ultimate collectability of loan principal, all cash thereafter received is applied to reduce the carrying value of such loans (i.e., the cost recovery method). Generally, the Corporation returns a loan to accrual status when all delinquent interest and principal becomes current under the terms of the loan agreement, or after a su stained period of repayment performance (6 months) and the loan is well secured, is in the process of collection, and full repayment of the remaining contractual principal and interest is expected. PCI loans are not reported as non-performing as these loan s were written down to fair value at the acquisition date and the accretable yield is recognized in interest income over the remaining life of the loans. Loans that are past due 30 days or more as to principal or interest are considered delinquent, with th e exception of residential mortgage, commercial mortgage, and construction loans, which are considered past due when the borrower is in arrears on two or more monthly payments. Impaired Loans - A loan is considered impaired when, based upon current inform ation and events, it is probable that the Corporation will be unable to collect all amounts due (including principal and interest) according to the contractual terms of the loan agreement, or the loan has been modified in a Troubled Debt Restructuring (“TD R”). Loans with insignificant delays or insignificant shortfalls in the amounts of payments expected to be collected are not considered to be impaired. The Corporation evaluates individually for impairment those loans in the construction, commercial mortga ge, commercial and industrial and marine financing portfolios with a principal balance of $1 million or more. Loans in the Construction, Commercial mortgage, and Commercial and Industrial portfolios that originally met the Corporation’s threshold for impai rment evaluation but due to charge-offs or payments are currently below the $1 million threshold and are still 90 days past due, except TDR’s, are accounted for under the Corporation’s general reserve. Although the accounting authoritative guidance for a s pecific impairment of a loan excludes large groups of smaller balance homogeneous loans that are collectively evaluated for impairment (e.g. mortgage and consumer loans), it specifically requires that loan modifications considered TDR be analyzed under its provision. The Corporation also evaluates for impairment purposes certain residential mortgage loans and home equity lines of credit with high delinquency and loan to value levels. Held-for-sale loans are not reported as impaired, as these loans are recor ded at the lower of cost or fair value. The Corporation generally measures impairment and the related specific allowance for individually impaired loans based on the difference between the recorded investment of the loan and the present value of t he loans’ expected future cash flows, discounted at the effective original interest rate of the loan at the time of modification, or the loan’s observable market price. If the loan is collateral dependent, the Corporation measures impairment based upon the fair value of the underlying collateral, instead of discounted cash flows, regardless of whether foreclosure is probable. Loans are identified as collateral dependent if the repayment is expected to be provided solely by the underlying collateral, through liquidation or operation of the collateral. When the fair value of the collateral is used to measure impairment on an impaired collateral-dependent loan and repayment or satisfaction of the loan is dependent on the sale of the collateral, the fair value o f the collateral is adjusted to consider estimated costs to sell. If repayment is dependent only on the operation of the collateral, the fair value of the collateral is not adjusted for estimated costs to sell. If the fair value of the loan is less than th e recorded investment, the Corporation recognizes impairment by either a direct write-down or establishing a specific allowance for the loan or by adjusting the specific allowance for the impaired loan. For an impaired loan that is collateral dependent, ch arge-offs are taken in the period in which the loan, or a portion of the loan, is deemed uncollectible, and any portion of the loan not charged off is adversely credit-risk rated at a level no worse than substandard. A restructuring of a loan constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. TDR loans typically result from the Corpo ration’s loss mitigation activities and residential mortgage loans modified in accordance with guidelines similar to those of the U.S. government’s Home Affordable Modification Program, and could include rate reductions to a rate that is below market on th e loan, principal forgiveness, term extensions, payment forbearance, refinancing of any past-due amounts, including interest, escrow, and late charges and fees, and other actions intended to minimize the economic loss and to avoid foreclosure or repossessi on of collateral. Residential mortgage loans for which a binding offer to restructure has been extended are also classified as TDR loans. PCI loans are not classified as TDR. TDR loans are classified as either accrual or nonaccrual. Loans in accrual status may remain in accrual status when their contractual terms have been modified in a TDR if the loans had demonstrated performance prior to the restructuring and payment in full under the restructured terms is expected. Otherwise, a loan on nonaccrual status and restructured as a TDR will remain on nonaccrual status until the borrower demonstrates a sustained period of performance (generally six consecutive months of payments, inclusive of consecutive payments made prior to the modification), and there is evidence that such payments can and are likely to continue as agreed. Refer to Note 8 – Loans Held for Investment, to the consolidated financial statements for additional qualitative and quantitative information about TDR loans. In connection with commercial loan restructurings, the decision to maintain a loan that has been restructured on accrual status is based on a current, well-documented credit evaluation of the borrower’s financial condition and prospects for repayment under the modified terms . The credit evaluation reflects consideration of the borrower’s future capacity to pay, which may include evaluation of cash flow projections, consideration of the adequacy of collateral to cover all principal and interest, and trends indicating improving profitability and collectability of receivables. This evaluation also includes an evaluation of the borrower’s current willingness to pay, which may include a review of past payment history, an evaluation of the borrower’s willingness to provide informati on on a timely basis, and consideration of offers from the borrower to provide additional collateral or guarantor support. The evaluation of mortgage and consumer loans for restructurings includes an evaluation of the client’s disposable income an d credit report, the value of the property, the loan-to-value relationship, and certain other client-specific factors that have impacted the borrower’s ability to make timely principal and interest payments on the loan. In connection with residential and c onsumer restructurings, a nonperforming loan will be returned to accrual status when current as to principal and interest, under the revised terms, and upon sustained historical repayment performance. The Corporation removes loans from TDR classif ication, consistent with authoritative guidance that allows for a TDR to be removed from this classification in years following the modification, only when the following two circumstances are met: (i)The loan is in compliance with the terms of the restruc turing agreement and, therefore, is not considered impaired under the revised terms; and (ii)The loan yields a market interest rate at the time of the restructuring. In other words, the loan was restructured with an interest rate equal to or greater than what the Corporation would have been willing to accept at the time of the restructuring fo r a new loan with comparable risk. If both of the conditions are met, the loan can be removed from the TDR classification in calendar years after the year in which the restructuring took place. However, the loan continues to be individually evalua ted for impairment. Loans classified as TDRs, including loans in trial payment periods (trial modifications), are considered impaired loans. With respect to loan splits, generally, Note A of a loan split is restructured under market terms, and No te B is fully charged off. If Note A is in compliance with the restructured terms in years following the restructuring, Note A will be removed from the TDR classification and continues to be individually evaluated for impairment. Refer to Note 8 – Loans H eld for Investment, to the consolidated financial statements for additional information about loan splits. A loan that had previously been modified in a TDR and is subsequently refinanced under current underwriting standards at a market rate with no concessionary terms is accounted for as a new loan and is no longer reported as a TDR. Interest income on impaired loans is recognized based on the Corporation’s policy for recognizing interest on accrual and non-accrual loans. Loans Acquired - All purchased loans are recorded at fair value at the date of acquisition. Loans acquired with evidence of credit deterioration since their origination and where it is probable at the date of acquisition that the Corporation will not collect all contrac tually required principal and interest payments are considered PCI loans. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due and non-accrual status, credit scores, and revised loan terms. PCI loans have been aggregated into pools based on common risk characteristics. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. In accounting for PCI loans, the difference between contractual ly required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. The nonaccretable difference, which is neither accreted into income nor recorded on the consolidated statements of financial con dition, reflects estimated future credit losses expected to be incurred over the life of the pool of loans. The excess of cash flows expected to be collected over the estimated fair value of PCI loans is referred to as the accretable yield. This amount is not recorded on the statements of financial condition, but is accreted into interest income over the remaining life of the pool of loans, using the effective-yield method. Subsequent to acquisition, the Corporation continues to estimate cash flows exp ected to be collected over the life of the PCI loans using models that incorporate current key assumptions such as default rates, loss severity, and prepayment speeds. Decreases in expected cash flows will generally result in an impairment charge to the pr ovision for loan and lease losses and the establishment of an allowance for loan and lease losses. Increases in expected cash flows will generally result in a reduction in any allowance for loan and lease losses established subsequent to acquisition and an increase in the accretable yield. The adjusted accretable yield is recognized in interest income over the remaining life of the pool of loans. Resolutions of loans may include sales of loans to third parties, receipt of payments in settlement with the borrower, or foreclosure of the collateral. The Corporation’s policy is to remove an individual loan from a pool at its relative carrying amount. The carrying amount is defined as the loan’s current contractually required payments receivable less its remaining nonaccretable difference and accretable yield, but excluding any post-acquisition loan loss allowance. To determine the carrying value, the Corporation performs a pro-rata allocation of the pool’s total remaining nonaccretable difference and accr etable yield to an individual loan in proportion to the loan’s current contractually required payments receivable compared to the pool’s total contractually required payments receivable. This removal method assumes that the amount received from resolution approximates pool performance expectations. The remaining accretable yield balance is unaffected and any material change in the remaining effective yield caused by this removal method is addressed by the Corporation’s quarterly cash flow evaluation proces s for each pool. Modified PCI loans are not removed from a pool even if those loans would otherwise be deemed TDRs. Because the initial fair value of PCI loans recorded at acquisition includes an estimate of credit losses expected to be realized ove r the remaining lives of the loans, the Corporation separately tracks and reports PCI loans and excludes these loans from its delinquency and non-performing loan statistics. For acquired loans that are not deemed impaired at acquisition, subsequent to acquisition, the Corporation recognizes the difference between the initial fair value at acquisition and the undiscounted expected cash flows in interest income over the period in which substantially all of the inherent losses associated with the non-PC I loans at the acquisition date are estimated to occur. Thus, such loans are accounted for consistently with other originated loans, potentially being classified as nonaccrual or impaired, as well as being classified under the Corporation’s standard practi ce and procedures. In addition, these loans are considered in the determination of the allowance for loan losses. Charge-off of Uncollectible Loans - Net charge-offs consist of the unpaid principal balances of loans held for investment that the Cor poration determines are uncollectible, net of recovered amounts. Charge-offs are recorded as a reduction to the allowance for loan and lease losses and subsequent recoveries of previously charged off amounts are credited to the allowance for loan and lease losses. Collateral dependent loans in the construction, commercial mortgage, and commercial and industrial loan portfolios are charged off to their net realizable value (fair value of collateral, less estimated costs to sell) when loans are considered to be uncollectible. Within the consumer loan portfolio, auto loans and finance leases are reserved once they are 120 days delinquent and are charged off to their estimated net realizable value when the collateral deficiency is deemed uncollectible (i.e., wh en foreclosure/repossession is probable) or when the loan is 365 days past due. Within the other consumer loans class, closed-end loans are charged off when payments are 120 days in arrears, except small personal loans. Open-end (revolving credit) consume r loans, including credit card loans, and small personal loans are charged off when payments are 180 days in arrears. On a quarterly basis, residential mortgage loans that are 180 days delinquent and have an original loan-to-value ratio that is higher than 60% are reviewed and charged-off, as needed, to the fair value of the underlying collateral. Generally, all loans may be charged off or written down to the fair value of the collateral prior to the policies described above if a loss-confirming event has o ccurred. Loss-confirming events include, but are not limited to, bankruptcy (unsecured), continued delinquency, or receipt of an asset valuation indicating a collateral deficiency when the asset is the sole source of repayment. The Corporation does not rec ord charge-offs on PCI loans that are performing in accordance with or better than expectations as of the date of acquisition, as the fair value of these loans already reflects a credit component. The Corporation records charge-offs on PCI loans only if ac tual losses exceed estimated losses incorporated into the fair value recorded at acquisition and the amount is deemed uncollectible. |
Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block] | Loans held for sale Loans that the Corporation intends to sell or that the Corporation does not have the ability and intent to hold for the foreseeable future are classified as held-for-sale loans. Loans held for sale are stated at the lower of aggregate cost or fair value. Generally, the loans held-for-sale por tfolio consists of conforming residential mortgage loans that the Corporation intends to sell to the Government National Mortgage Association (“GNMA”) and government-sponsored entities (“GSEs”) such as the Federal National Mortgage Association (“FNMA”) and the Federal Home Loan Mortgage Corporation (“FHLMC”). Generally, residential mortgage loans held for sale are valued on an aggregate portfolio basis and the value is primarily derived from quotations based on the mortgage-backed securities market. The amo unt by which cost exceeds market value in the aggregate portfolio of loans held for sale, if any, is accounted for as a valuation allowance with changes therein included in the determination of net income and reported as part of mortgage banking activities in the consolidated statements of income. Loan costs and fees are deferred at origination and are recognized in income at the time of sale. The fair value of commercial loans held for sale is primarily derived from external appraisals with changes in the valuation allowance reported as part of other non-interest income in the consolidated statements of income. In certain circumstances, the Corporation transfers loans from/to held for sale or held for investment based on a change in strategy. If such a ch ange in holding strategy is made, significant adjustments to the loans’ carrying values may be necessary. Reclassifications of loans held for sale to held for investment are made at fair value on the date of transfer. Any difference between the carrying va lue and the fair value of a reclassified loan is recorded as an adjustment to non-interest income. Meanwhile, reclassification of loans held for investment to held for sale are made at the lower of cost or fair value on the date of transfer and establish a new cost basis upon transfer. Write-downs of loans transferred from held for investment to held for sale are recorded as charge-offs at the time of transfer. |
Allowance for loan and lease losses [Policy Text Block] | Allowance for loan and lease losses The Corporation maintains the allowance for loan and lease losses at a level considered adequate to absorb losses currently inherent in the loan and lease portfolio. The Corporation does not maintain an allowance for held-for-sale loans or PCI loans that are performing in accordance with or better than expectation s as of the date of acquisition, as the fair values of these loans already reflect a credit component. The allowance for loan and lease losses does not include amounts related to accrued interest receivable, other than billed interest and fees on credit ca rd loans, as accrued interest receivable is reversed when a loan is placed on nonaccrual status. The allowance for loan and lease losses provides for probable losses that have been identified with specific valuation allowances for individually evaluated im paired loans and for probable losses believed to be inherent in the loan portfolio that have not been specifically identified. The determination of the allowance for loan and lease losses requires significant estimates, including with respect to the timing and amounts of expected future cash flows on impaired loans, consideration of current economic conditions, and historical loss experience pertaining to the portfolios and pools of homogeneous loans, all of which may be susceptible to change. The Corporat ion evaluates the need for changes to the allowance by portfolio loan segments and classes of loans within certain of those portfolio segments. The Corporation combines loans with similar credit risk characteristics into the following portfolio segments: c ommercial mortgage, construction, commercial and industrial, residential mortgage, and consumer loans. Classes are usually disaggregations of the portfolio segments. The classes within the residential mortgage segment are residential mortgages guaranteed b y the U.S. government and other residential loans. The classes within the consumer portfolio are auto, finance lease, and other consumer loans. Other consumer loans mainly include unsecured personal loans, credit cards, home equity lines, lines of credits , and marine financing. The classes within the construction loan portfolio are land loans, construction of commercial projects, and construction of residential projects. The commercial mortgage and commercial and industrial segments are not further segment ed into classes. The adequacy of the allowance for loan and lease losses is based on judgments related to the credit quality of each portfolio segment. These judgments consider ongoing evaluations of each portfolio segment, including such factors as the ec onomic risks associated with each loan class, the financial condition of specific borrowers, the geography (Puerto Rico, Florida or the Virgin Islands), the level of delinquent loans, historical loss experience, the value of any collateral and, where appli cable, the existence of any guarantees or other documented support. In addition to the general economic conditions and other factors described above, additional factors considered include the internal risk ratings assigned to loans. An internal risk rati ng is assigned to each commercial loan at the time of approval and is subject to subsequent periodic review by the Corporation's senior management. The allowance for loan and lease losses is reviewed on a quarterly basis as part of the Corporation’s contin ued evaluation of its asset quality. The allowance for loan and lease losses is increased through a provision for credit losses that is charged to earnings, based on the quarterly evaluation of the factors previously mentioned, and is reduced by charge-of fs, net of recoveries. The allowance for loan and lease losses consists of specific reserves based upon valuations of loans considered to be impaired , including loans modified in a TDR, and general reserves. A specific valuation allowance is established for individual impaired loans in the commercial mortgage, construction, and commercial and industrial portfolios and certain marine financings, residential mortgage loans, and home equity lines of credit, primarily when the collateral value of the loan (if the impaired loan is determined to be collateral dependent) or the present value of the expected future cash flows discounted at the loan’s effective rate is lower than the carrying amou nt of that loan. The loans within the commercial mortgage, construction, commercial and industrial portfolios and marine financings with a principal balance of $1 million or more, are individually evaluated for impairment. Also, certain residential mortgag e loans and home equity lines of credit are individually evaluated for impairment purposes based on their delinquency and loan to value levels. When foreclosure of a collateral dependent loan is probable, the impairment measure is based on the fair value o f the collateral. The fair value of the collateral is generally obtained from appraisals. Updated appraisals are obtained when the Corporation determines that loans are impaired and are generally updated annually thereafter according to the Corporation’s appraisal policy. In addition, appraisals and/or appraiser price opinions are also obtained for residential mortgage loans based on specific characteristics such as delinquency levels, age of the appraisal, and loan-to-value ratios. The excess of the reco rded investment in a collateral dependent loan over the resulting fair value of the collateral is charged-off when deemed uncollectible. For all other loans, which include small, homogeneous loans, such as auto loans, and the other classes in the consume r loan portfolio, residential mortgages and commercial and construction loans not considered impaired, the Corporation maintains a general valuation allowance established through a process that begins with estimates of incurred losses based upon various st atistical analyses. The general reserve is primarily determined by applying loss factors according to the loan type and assigned risk category (pass, special mention, and substandard loans that are not considered to be impaired; all doubtful loans are cons idered impaired). The Corporation uses a roll-rate methodology to estimate losses on its consumer loan portfolio based on delinquencies and considering credit bureau score bands. The Corporation tracks the historical portfolio performance to arrive at a weighted-average distribution in each subgroup of each delinquency bucket. Roll-to-loss rates (loss factors) are calculated by multiplying the roll rates from each subgroup within the delinquency buckets forward through loss. Once roll rates are calculated , the resulting loss factor is applied to the existing receivables in the applicable subgroups within the delinquency buckets and the end results are aggregated to arrive at the required allowance level. The Corporation’s assessment also involves evaluatin g key qualitative and environmental factors, which include credit and macroeconomic indicators such as unemployment, bankruptcy trends, recent market transactions, and collateral values to account for current market conditions that are likely to cause esti mated credit losses to differ from historical loss experience. The Corporation analyzes the expected delinquency migration to determine the future volume of delinquencies. The cash flow analysis for each residential mortgage pool is performed at the ind ividual loan level and then aggregated to the pool level in determining the overall expected loss ratio. The model applies risk-adjusted prepayment curves, default curves, and severity curves to each loan in the pool. For loan restructuring pools, the pres ent value of expected future cash flows under new terms, at the loan’s effective interest rate, is taken into consideration. Additionally, estimates of default risk and prepayments related to loan restructurings are based on, among other things, the histor ical experience of these loans. Loss severity is affected by the expected house price scenario, which is based in part on recent house price trends. Default curves are used in the model to determine expected delinquency levels. The attributes that are most significant to the probability of default include present collection status (current, delinquent, in bankruptcy, in foreclosure stage), vintage, loan-to-values, and geography (Puerto Rico, Florida or the Virgin Islands).The estimates of the risk-adjusted timing of liquidations and associated costs are used in the model, and are risk-adjusted for the geographic area in which each property is located. For commercial loans, historical charge-off rates are calculated by the Corporation on a quarterly basis by tracking cumulative charge-offs experienced over a two-year loss period on loans according to their internal risk rating (referred to as “base rate” for the quarter). The allowance is calculated using the base rate average of the last 8 quarters. A qual itative factor adjustment is applied to the base rate average utilizing a resulting factor derived from a set of risk-based ratings and weights assigned to credit and economic indicators over a reasonable period applied to a developed expected range of his torical losses. This factor may be stressed to reflect other elements not reflected in the historical data underlying the loss estimates, such as the prolonged uncertainty surrounding how the Puerto Rico government might restructure its debt and the effect of recent payment defaults and other unprecedented measures implemented by the Puerto Rico government to deal with its fiscal condition. |
Transfers and Servicing of Financial Assets, Policy [Policy Text Block] | Transfers and servicing of financial assets and extinguishment of liabilities After a transfer of financial as sets in a transaction that qualifies for sale accounting, the Corporation derecognizes the financial assets when control has been surrendered, and derecognizes liabilities when extinguished. The transfer of financial assets in which the Corporation surrenders control over the assets is accounted for as a sale to the extent that consideration other than beneficial interests is received in exchange. The criteria that must be met to determine that the control over transferred assets has been surrendere d include: (1) the assets must be isolated from creditors of the transferor, (2) the transferee must obtain the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the trans feror cannot maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. When the Corporation transfers financial assets and the transfer fails any one of the above criteria, the Corporation is pre vented from derecognizing the transferred financial assets and the transaction is accounted for as a secured borrowing. |
Servicing Assets [Policy Text Block] | Servicing Assets The Corporation recognizes as separate assets the rights to service loans for others, whether those servicing assets are originated or purchased. In the ordinary course of business, the Corporation sells residential mortgage loans (originated or purchased) to GNMA, which generally securitizes the transferred loans into mortgage-backed securities for sale into the second ary market. Also, certain conventional conforming loans are sold to FNMA or FHLMC with servicing retained. When the Corporation sells mortgage loans, it recognizes any retained servicing right, based on its fair value. Servicing assets (“MSRs”) retained in a sale or securitization arise from contractual agreements between the Corporation and investors in mortgage securities and mortgage loans. The value of MSRs is derived from the net positive cash flows associated with the servicing contracts. Under the se contracts, the Corporation performs loan-servicing functions in exchange for fees and other remuneration. The servicing functions typically include: collecting and remitting loan payments, responding to borrower inquiries, accounting for principal and i nterest, holding custodial funds for payment of property taxes and insurance premiums, supervising foreclosures and property dispositions, and generally administering the loans. The servicing rights, included as part of other assets in the statements of fi nancial condition, entitle the Corporation to annual servicing fees based on the outstanding principal balance of the mortgage loans and the contractual servicing rate. The servicing fees are credited to income on a monthly basis when collected and recorde d as part of mortgage banking activities in the consolidated statements of income. In addition, the Corporation generally receives other remuneration consisting of mortgagor-contracted fees such as late charges and prepayment penalties, which are credited to income when collected. Considerable judgment is required to determine the fair value of the Corporation’s MSRs. Unlike highly liquid investments, the market value of MSRs cannot be readily determined because these assets are not actively traded in sec urities markets. The initial carrying value of the MSRs is generally determined based on its fair value. The fair value of the MSRs is determined based on a combination of market information on trading activity (MSR trades and broker valuations), benchmar king of servicing assets (valuation surveys), and cash flow modeling. The valuation of the Corporation’s MSRs incorporates two sets of assumptions: (1) market-derived assumptions for discount rates, servicing costs, escrow earnings rates, floating earnings rates, and the cost of funds and (2) market assumptions calibrated to the Corporation’s loan characteristics and portfolio behavior for escrow balances, delinquencies and foreclosures, late fees, prepayments, and prepayment penalties. Once recorded, MSR s are periodically evaluated for impairment. Impairment occurs when the current fair value of the MSRs is less than its carrying value. If MSRs are impaired, the impairment is recognized in current-period earnings and the carrying value of the MSRs is adju sted through a valuation allowance. If the value of the MSRs subsequently increases, the recovery in value is recognized in current period earnings and the carrying value of the MSRs is adjusted through a reduction in the valuation allowance. For purposes of performing the MSR impairment evaluation, the servicing portfolio is stratified on the basis of certain risk characteristics such as region, terms, and coupons. An other-than-temporary impairment analysis is prepared to evaluate whether a loss in the va lue of the MSRs, if any, is other than temporary or not. When the recovery of the value is unlikely in the foreseeable future, a write-down of the MSRs in the stratum to its estimated recoverable value is charged to the valuation allowance. As of December 31, 2016, the carrying value of the MSRs amounted to $26.2 million (2015 - $24.3 million). The servicing assets are amortized over the estimated life of the underlying loans based on an income forecast method as a reduction of servicing income. The income forecast method of amortization is based on projected cash flows. A particular periodic amortization is calculated by applying to the carrying amount of the MSRs the ratio of the cash flows projected for the current period to total remaining net MSR forec asted cash flow. |
Premises and equipment [Policy Text Block] | Premises and equipment Premises and equipment are carried at cost, net of accumulated depreciation and amortization. Depreciation is provided on the straight-line method over the est imated useful life of each type of asset. Amortization of leasehold improvements is computed over the terms of the leases (contractual term plus lease renewals that are reasonably assured) or the estimated useful lives of the improvements, whichever is sh orter. Costs of maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. Costs of renewals and betterments are capitalized. When assets are sold or disposed of, their cost and related accumulated de preciation are removed from the accounts and any gain or loss is reflected in earnings as part of other non-interest income in the statements of income. When the asset is no longer used in operations, and the Corporation intends to sell it, the asset is re classified to other assets held for sale and is reported at the lower of carrying amount or fair value less cost to sell. The Corporation has operating lease agreements primarily associated with the rental of premises to support the branch network or for general office space. Certain of these arrangements are noncancelable and provide for rent escalation and renewal options. Rent expense on noncancelable operating leases with scheduled rent increases is recognized on a straight-line basis over the lease term. |
Other real estate owned (OREO) [Policy Text Block] | Other real estate owned (OREO) OREO, which consists of real estate acquired in settlement of loans, is recorded at the lower of cost (carrying value of the loan) or fair value minus estimated costs to sell the real estate acquired. Generally, loans have been written down to their net realizable value prior to foreclosure. Any further reduction to their net realizable value is recorded with a charge to the allowance for loan losses at foreclosure or a short-time after foreclosure. Thereafter, gains or losses resulting from the sale of these properties and losses recognized on the periodic reevaluations of these properties are credited or charged to earnings and are included as part of net loss on OREO operations in the statements of income. The cost of maintaining and operating these properties is expensed as incurred. The Corporation estimates fair values primarily based on appraisals, w hen available, and the net realizable value is reviewed and updated periodically depending of the type of property. |
Goodwill and other intangible assets [Policy Text Block] | Goodwill and other intangible assets Goodwill - The Corporation evaluates goodwill f or impairment on an annual basis, generally during the fourth quarter, or more often if events or circumstances indicate there may be an impairment. The Corporation evaluated goodwill for impairment as of October 1, 2016. Goodwill impairment testing is pe rformed at the segment (or “reporting unit”) level. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill has been assigned to a reporting unit, it no longer retains its association with a particular acquisi tion, and all of the activities within a reporting unit, whether acquired or internally generated, are available to support the value of the goodwill. The Corporation’s goodwill is related to the acquisition of FirstBank Florida in 2005. The Corporation bypassed the qualitative assessment in 2016 and proceeded directly to perform the first step of the two-step goodwill impairment test. The first step (“Step 1”) involves a comparison of the estimated fair value of the reporting unit to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is not considered impaired. If the carrying value exceeds the estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of the impairment. The second step (“Step 2”), if necessary, involves calculating an implied fair value of the goodwill for each reporting unit for which Step 1 indicated a potential impairment. The impl ied fair value of goodwill is determined in a manner similar to the calculation of the amount of goodwill in a business combination, by measuring the excess of the estimated fair value of the reporting unit, as determined in Step 1, over the aggregate esti mated fair values of the individual assets, liabilities, and identifiable intangibles as if the reporting unit was then being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. In determining the fair value of a reporting unit, which is based on the nature of the busin ess and the reporting unit’s current and expected financial performance, the Corporation uses a combination of methods, including market price multiples of comparable companies, as well as a discounted cash flow analysis (“DCF”). The Corporation evaluates the results obtained under each valuation methodology to identify and understand the key value drivers in order to ascertain that the results obtained are reasonable and appropriate under the circumstances. The computations require management to make est imates and assumptions. Critical assumptions that are used as part of these evaluations include: a selection of comparable publicly traded companies, based on size, performance, and asset quality; a selection of comparable and public acquisition transacti ons of entities of similar size; the discount rate applied to future earnings, based on an estimate of the cost of equity; the potential future earnings of the reporting unit; and the market growth and new business assumptions. For purposes of the marke t comparable approach, the valuation was determined based on market multiples for comparable companies and recent acquisition transactions and market participant assumptions applied to the reporting unit to derive an implied value of equity. For purposes of the DCF analysis approach, the valuation is based on estimated future cash flows. The financial projections used in the DCF analysis for the reporting unit are based on the most recent available data. The growth assumptions included in these projection s are based on management’s expectations of the reporting unit’s financial prospects as well as particular plans for the entity (i.e., restructuring plans). The cost of equity was estimated using the capital asset pricing model using comparable companies, an equity risk premium, the rate of return of a “riskless” asset, a size premium based on the size of the reporting unit, and a company specific premium. The resulting discount rate was analyzed in terms of reasonability given current market conditions. The Step 1 evaluation of goodwill allocated to the Florida reporting unit, under both valuation approaches (market and DCF) indicated that the fair value of the unit was above the carrying amount of its equity book value as of the valuation date (October 1 ), which meant that Step 2 was not undertaken. Based on the analysis under both the discounted cash flow and market approaches, the estimated fair value of the reporting unit exceeds the carrying amount of the unit, including goodwill, at the evaluation da te. The Corporation engaged a third-party valuation specialist to assist management in the annual evaluation of the Florida unit’s goodwill as of the October 1, 2016 valuation date. In reaching its conclusion on impairment, management discussed with the valuator the methodologies, assumptions, and results supporting the relevant values for the goodwill and determined that they were reasonable. The goodwill impairment evaluation process requires the Corporation to m ake estimates and assumptions with regards to the fair value of its reporting unit. Actual values may differ significantly from these estimates. Such differences could result in future impairment of goodwill that would, in turn, negatively impact the Cor poration’s results of operations and the profitability of the reporting unit where goodwill is recorded. Goodwill was not impaired as of December 31, 2016 or 2015, nor was any goodwill written off due to impairment during 2016, 2015, and 2014. Other Intangibles - Core deposit intangibles are amortized over their estimated lives, generally on a straight-line basis, and are reviewed periodically for impairment when events or changes in circumstances indicate that the carrying amount may not be rec overable. The Corporation performed impairment tests for the years ended December 31, 2016, 2015, and 2014 and determined that no impairment was needed to be recognized for other intangible assets. In connection with the acquisition of a FirstBank-bra nded credit card loan portfolio in 2012, the Corporation recognized at acquisition a purchased credit card relationship intangible of $ 24.5 million ($10.5 million and $13.3 million as of December 31, 2016 and 2015, respectively), which is being amortized o n an accelerated basis based on the estimated attrition rate of the purchased credit card accounts, which reflects the pattern in which the economic benefits of the intangible asset are consumed. These benefits are consumed as the revenue stream generated by the cardholder relationship is realized. For further disclosures, refer to Note 14 – Goodwill and other Intangibles, to the consolidated financial statements. In the first quarter of 2016, FirstBank Insurance Agency acquired certain insurance custom er accounts and related customer records and recognized an insurance customer relationship intangible of $ 1.1 million ($0.9 million as of December 31, 2016), which is being amortized on a straight-line basis. The list of accounts acquired has a direct rela tionship to previous mortgage loan portfolio acquisitions from Doral Bank and Doral Financial in 2015 and 2014, respectively. |
Repurchase Agreements, Valuation, Policy [Policy Text Block] | Securities purchased and sold under agreements to repurchase Securities purchased under resale agreements and securities sold un der repurchase agreements are accounted for as collateralized financing transactions. Generally, these agreements are recorded at the amount at which the securities were purchased or sold. The Corporation monitors the fair value of securities purchased and sold, and obtains collateral from or returns it to the counterparties when appropriate. These financing transactions do not create material credit risk given the collateral provided and the related monitoring process. The Corporation sells and acquires s ecurities under agreements to repurchase or resell the same or similar securities. Generally, similar securities are securities from the same issuer, with identical form and type, similar maturity, identical contractual interest rates, similar assets as c ollateral, and the same aggregate unpaid principal amount. The counterparty to certain agreements may have the right to repledge the collateral by contract or custom. Such assets are presented separately in the statements of financial condition as securiti es pledged to creditors that can be repledged. Repurchase and resale activities might be transacted under legally enforceable master repurchase agreements that give the Corporation, in the event of default by the counterparty, the right to liquidate securi ties held and to offset receivables and payables with the same counterparty. The Corporation offsets repurchase and resale transactions with the same counterparty on the consolidated statements of financial condition where it has such a legally enforceable master netting agreement and the transactions have the same maturity date. From time to time, the Corporation modifies repurchase agreements to take advantage of prevailing interest rates. Following applicable GAAP guidance, if the Corporation determines that the debt under the modified terms is substantially different from the original terms, the modification must be accounted for as an extinguishment of debt. Modified terms are considered substantially different if the present value of the cash flows un der the terms of the new debt instrument is at least 10 % different from the present value of the remaining cash flows under the terms of the original instrument. The new debt instrument will be initially recorded at fair value, and that amount will be used to determine the debt extinguishment gain or loss to be recognized through the statement of income and the effective rate of the new instrument. If the Corporation determines that the debt under the modified terms is not substantially different, then the new effective interest rate shall be determined based on the carrying amount of the original debt instrument. None of the repurchase agreements modified in the past were considered to be substantially different from the original terms, and, therefore, thes e modifications were not accounted for as extinguishments of debt. |
Rewards Liability [Policy Text Block] | Rewards Liability The Corporation offers products, primarily credit cards, that offer reward program members with various rewards, such as airline tickets, cash, or merchandise, based on account activity. The Corporation generally recognizes the cost of rewards as part of business promotion expenses when the rewards are earned by the customer and, at that time, records the corresponding rewards liability. The reward liability is c omputed based on points earned to date that are expected to be redeemed and the average cost per point redemption. The reward liability is reduced as points are redeemed. In estimating the reward liability, the Corporation considers historical reward redem ption behavior, the terms of the current reward program, and the card purchase activity. The reward liability is sensitive to changes in the reward redemption type and redemption rate, which is based on the expectation that the vast majority of all points earned will eventually be redeemed. The reward liability, which is included in other liabilities in the consolidated statements of financial condition, totaled $ 7.1 million and $ 9.6 million as of December 31, 2016 and 2015, respectively. |
Income Tax [PolicyText Block] | Income taxes The Corporation uses the asset and liability method for the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Corporation’s financial statements or tax returns. Deferred inco me tax assets and liabilities are determined for differences between financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. The computation is based on enacted tax laws and rates applic able to periods in which the temporary differences are expected to be recovered or settled. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. In making such asses sment, significant weight is given to evidence that can be objectively verified, including both positive and negative evidence. The authoritative guidance for accounting for income taxes requires the consideration of all sources of taxable income available to realize the deferred tax asset, including the future reversal of existing temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in carryback years, and tax planning strategies. In es timating taxes, management assesses the relative merits and risks of the appropriate tax treatment of transactions taking into account statutory, judicial, and regulatory guidance. Refer to Note 26 – Income Taxes, to the consolidated financial statements f or additional information. Under the authoritative accounting guidance, income tax benefits are recognized and measured based on a two-step analysis: 1) a tax position must be more likely than not to be sustained based solely on its technical merits in o rder to be recognized, and 2) the benefit is measured at the largest dollar amount of that position that is more likely than not to be sustained upon settlement. The difference between the benefit recognized in accordance with this analysis and the tax be nefit claimed on a tax return is referred to as an Unrecognized Tax Benefit (“UTB”). The Corporation classifies interest and penalties, if any, related to UTBs as components of income tax expense. Refer to Note 26 – Income Taxes, to the consolidated fina ncial statements for required disclosures and further information. |
Treasury stock [Policy Text Block] | Treasury stock The Corporation accounts for treasury stock at par value. Under this method, the treasury stock account is increased by the par value of each share of common stock reacqui red. Any excess paid per share over the par value is debited to additional paid-in capital for the amount per share that was originally credited. Any remaining excess is charged to retained earnings. |
Stock-based compensation [Policy Text Block] | Stock-based compensation Compensation cost is re cognized in the financial statements for all share-based payment grants. Between 1997 and 2007, the Corporation had a stock option plan (the “1997 stock option plan”) covering eligible employees. On January 21, 2007, the 1997 stock option plan expired 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 for shares could be granted under the 1997 stock option pl an as of its expiration. On April 29, 2008, the Corporation’s stockholders approved the First BanCorp. 2008 Omnibus Incentive Plan, as amended (the “Omnibus Plan”). The Omnibus Plan provides for equity-based compensation incentives (the “awards”) through the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, cash-based awards and other stock-based awards. The compensation cost for an award, determined based on the estimate of the fair va lue at the grant date (considering forfeitures and any postvesting restrictions), is recognized over the period during which an employee or director is required to provide services in exchange for an award, which is the vesting period. Stock-based co mpensation accounting guidance requires the Corporation to develop an estimate of the number of share-based awards that will be forfeited due to employee or director turnover. Quarterly changes in the estimated forfeiture rate may have a significant effect on share-based compensation, as the effect of adjusting the rate for all expense amortization is recognized in the period in which the forfeiture estimate is changed. If the actual forfeiture rate is higher than the estimated forfeiture rate, then an adj ustment is made to increase the estimated forfeiture rate, which will result in a decrease in the expense recognized in the financial statements. If the actual forfeiture rate is lower than the estimated forfeiture rate, an adjustment is made to decrease the estimated forfeiture rate, which will result in an increase in the expense recognized in the financial statements. When unvested options or shares of restricted stock are forfeited, any compensation expense previously recognized on the forfeited award s is reversed in the period of the forfeiture. For additional information regarding the Corporation’s equity-based compensation and awards granted, refer to Note 21 – Stock-based Compensation, to the consolidated financial statements. |
Comprehensive income [Policy Text Block] | Comprehensi ve income Comprehensive income for First BanCorp. includes net income and the unrealized gain (loss) on available-for-sale securities, net of estimated tax effects. |
Segment Information [Policy Text Block] | Segment Information The Corporation reports financial and descriptive information about its reportable segments (see Note 33 – Segment Information, to the consolidated financial statements). Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by management in d eciding how to allocate resources and in assessing performance. The Corporation’s management determined that the segregation that best fulfills the segment definition described above is by lines of business for its operations in Puerto Rico, the Corporati on’s principal market, and by geographic areas for its operations outside of Puerto Rico. As of December 31, 2016, the Corporation had six operating segments that are all reportable segments: Commercial and Corporate Banking; Mortgage Banking; Consumer (Re tail) Banking; Treasury and Investments; United States Operations; and Virgin Islands Operations. Refer to Note 33 – Segment Information, to the consolidated financial statements for additional information. |
Valuation of financial instruments [Policy Text Block] | Valuation of financial instruments The measurement of fair value is fundamental to the Corporation’s presentation of its financial condition and results of operations. The Corporation holds fixed income and equity securities, derivatives, investments, and other financial instruments at fair val ue. The Corporation holds its investments and liabilities mainly to manage liquidity needs and interest rate risks. A significant part of the Corporation’s total assets is reflected at fair value on the Corporation’s financial statements. The FASB’s autho ritative 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 val ue are observable or unobservable. Three levels of inputs may be used to measure fair value: Level 1 Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Valuations are observed from unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Under the fair value accounting guidance, an entity has the irrevocable option to elect, on a contract-by-contract basis, to measure certain financial assets and liabilities at fair value at the inception of the contract and, thereafter, to reflect any changes in fair value in current earnings. The Corporation did not make any fair value option election as of December 31, 2016 or 2015. See Note 28 – Fair Value, to the consolidated financial state ments for additional information. |
Income recognition- Insurance agencies business [Policy Text Block] | Income recognition— Insurance agency Commission revenue is recognized as of the effective date of the insurance policy. Additional premiums and rate adjustments are recorded as they occur. The Corporation also rec eives contingent commissions from insurance companies as additional incentive for achieving specified premium volume goals and/or the loss experience of the insurance placed by the Corporation. Contingent commissions from insurance companies are recognized when determinable, which is generally when such commissions are received or when the amount to be received is reported to the Corporation by the insurance company. An allowance is created for expected adjustments to commissions earned relating to policy c ancellations. |
Advertising costs [Policy Text Block] | Advertising costs Advertising costs for all reporting periods are expensed as incurred. |
Earnings per common share [Policy Text Block] | Earnings per common share Earnings per share-basic is calculated by dividing net income attributable to common stockholders by the weighted-averag e number of common shares issued and outstanding. Net income attributable to common stockholders represents net income adjusted for any preferred stock dividends, including dividends declared, and any cumulative dividends related to the current dividend pe riod that have not been declared as of the end of the period, if any. Basic weighted-average common shares outstanding excludes unvested shares of restricted stock. For 2014, the net income attributable to common stockholders also includes the one-time eff ect of the issuance of common stock in exchange of certain shares of the Series A through E preferred stock. These transactions are further discussed in Note 22 – Stockholders’ equity, to the consolidated financial statements. The computation of diluted ea rnings per share is similar to the computation of basic earnings per share except that the number of weighted-average common shares is increased to include the number of additional common shares that would have been outstanding if the dilutive common share s had been issued, referred to as potential common shares. Potential common shares consist of common stock issuable upon the assumed exercise of stock options, unvested shares of restricted stock, and outstanding warrants using the treasury stock met hod. This method assumes that the potential common shares are issued and the proceeds from the exercise, in addition to the amount of compensation cost attributable to future services, are used to purchase common stock at the exercise date. The differenc e between the numbers of potential shares issued and potential shares purchased is added as incremental shares to the actual number of shares outstanding to compute diluted earnings per share. Stock options, unvested shares of restricted stock, and outsta nding warrants that result in lower potential shares issued than potential shares purchased under the treasury stock method are not included in the computation of dilutive earnings per share since their inclusion would have an antidilutive effect on earnin gs per share. |
Business Combinations Policy | Accounting for acquisitions The Corporation accounts for acquisitions in accordance with the authoritative guidance for business combina tions. Under the guidance for business combinations, the accounting differs depending on whether the acquired set of activities and assets meets the definition of a business. A business is considered to be an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing economic benefits directly to investors or other owners, members or participants. If the acquired set of activities and assets meets the definition of a business, the transaction is accou nted for as a business combination. Otherwise, it is accounted for as an asset acquisition. In a business combination, identifiable assets acquired, liabilities assumed and any noncontrolling interest in the acquiree are recorded at fair value as of the acquisition date. Goodwill is recognized as the excess of the acquisition price over the estimated fair value of the net assets acquired. Likewise, if the fair value of the net assets acquired is higher than the acquisition price, a bargain purchase gain i s recognized and recorded in non-interest income in the statements of income. The Corporation may retrospectively adjust the initially recorded fair values to reflect new information obtained during the measurement period (not to exceed 12 months) about fa cts and circumstances that existed as of the acquisition date that, if known, would have affected the acquisition date fair value measurements. There were no acquisitions or mergers completed during the year ended December 31, 2016. Refer to Note 2 – Busin ess Combination, to the consolidated financial statements for a detailed description of the acquisition of assets and assumption of liabilities from Doral Bank in 2015. |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combination Description [Abstract] | |
Business Combination [Table Text Block] | The Corporation accounted for this transaction as a business combination. The following table identifies the fair values of assets acquired and liabilities assumed from Doral Bank on February 27, 2015: Asset/Liabilities (at Fair Value) (In thousands) ASSETS Cash $ 217,659 Loans 311,410 Premises and equipment, net 5,450 Core Deposit Intangible 5,820 Total assets acquired 540,339 LIABILITIES Deposits 523,517 Other liabilities 3,379 Net assets - Bargain purchase gain $ 13,443 |
MONEY MARKET INVESTMENTS (Table
MONEY MARKET INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Money Market Investments [Abstract] | |
Schedule Of Money Market Investments [Table Text Block] | Money market investments as of December 31, 2016 and 2015 were as follows: 2016 2015 (Dollars in thousands) Time deposits with other financial institutions, weighted-average interest rate 0.95% (2015- 0.92%) $ 2,800 $ 3,000 Other short-term investments, weighted-average interest rate of 0.30% (2015 - weighted-average interest rate of 0.34%) 7,294 216,473 $ 10,094 $ 219,473 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investment Securities Available for Sale [Table Text Block] | December 31, 2016 Amortized cost Noncredit Loss Component of OTTI Recorded in OCI Gross Fair value Weighted-average yield% Unrealized Gains Losses (Dollars in thousands) U.S. Treasury securities: Due within one year $ 7,508 $ - $ 1 $ - $ 7,509 0.57 Obligations of U.S. government-sponsored agencies: After 1 to 5 years 440,438 - 142 2,912 437,668 1.33 After 5 to 10 years 16,942 - 9 256 16,695 1.91 After 10 years 44,145 - 8 166 43,987 1.12 Puerto Rico government obligations: After 1 to 5 years 21,422 12,222 - - 9,200 - After 10 years 21,245 2,028 73 1,662 17,628 1.86 United States and Puerto Rico government obligations 551,700 14,250 233 4,996 532,687 1.29 Mortgage-backed securities: FHLMC certificates: After 5 to 10 years 5,908 - 72 - 5,980 2.25 After 10 years 314,906 - 261 5,827 309,340 2.17 320,814 - 333 5,827 315,320 2.17 GNMA certificates: After 1 to 5 years 83 - 3 - 86 3.82 After 5 to 10 years 91,744 - 1,635 92 93,287 3.06 After 10 years 123,548 - 9,706 - 133,254 4.36 215,375 - 11,344 92 226,627 3.81 FNMA certificates: Due within one year 152 - 2 - 154 4.71 After 1 to 5 years 24,409 - 435 - 24,844 2.18 After 5 to 10 years 17,181 - - 261 16,920 1.87 After 10 years 690,625 - 4,136 9,406 685,355 2.35 732,367 - 4,573 9,667 727,273 2.33 Collateralized mortgage obligations issued or guaranteed by the FHLMC and GNMA: After 5 to 10 years 19,851 - 4 31 19,824 1.42 After 10 years 39,120 - - 132 38,988 1.44 58,971 - 4 163 58,812 1.43 Other mortgage pass-through trust certificates: After 10 years 28,815 8,122 - - 20,693 2.40 28,815 8,122 - - 20,693 2.40 Total mortgage-backed securities 1,356,342 8,122 16,254 15,749 1,348,725 2.49 Other After 1 to 5 years 100 - - - 100 1.50 Equity securities (1) 415 - - 7 408 2.44 Total investment securities available for sale $ 1,908,557 $ 22,372 $ 16,487 $ 20,752 $ 1,881,920 2.14 (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 Gross Fair value Weighted-average yield% 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 |
Available-for-Sale Investments' Fair Value and Gross Unrealized Losses [Table Text Block] | As of December 31, 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 $ - $ - $ 22,609 $ 15,912 $ 22,609 $ 15,912 U.S Treasury and U.S. government agencies obligations 469,046 3,334 - - 469,046 3,334 Mortgage-backed securities: FNMA 519,008 9,667 - - 519,008 9,667 FHLMC 244,839 5,827 - - 244,839 5,827 GNMA 43,388 92 - - 43,388 92 Collateralized mortgage obligations issued or guaranteed by FHLMC and GNMA 55,309 163 - - 55,309 163 Other mortgage pass-through trust certificates - - 20,693 8,122 20,693 8,122 Equity securities 408 7 - - 408 7 $ 1,331,998 $ 19,090 $ 43,302 $ 24,034 $ 1,375,300 $ 43,124 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 |
OTTI Losses on Available-for-Sale Debt Securities [Table Text Block] | Year Ended 2016 2015 2014 (In thousands) Total other-than-temporary impairment losses $ (1,845) $ (35,806) $ - Portion of other-than-temporary impairment recognized in OCI (4,842) 19,289 (388) Net impairment losses recognized in earnings (1) $ (6,687) $ (16,517) $ (388) (1) For the years ended December 31, 2016 and 2015, approximately $6.3 million and $15.9 million, respectively, of the credit impairment recognized in earnings consisted of credit losses on Puerto Rico government debt securities. The remaining impairment losses were associated with credit losses on private label MBS. |
Roll-Forward of Credit Losses on Debt Securities Held by Corporation [Table Text Block] | 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 December 31, recognized in earnings recognized in earnings on December 31, 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 December 31, recognized in earnings recognized in earnings on December 31, 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 $ - $ 15,889 $ - $ 15,889 Private label MBS 5,777 - 628 6,405 Total OTTI credit losses for available-for-sale debt securities $ 5,777 $ 15,889 $ 628 $ 22,294 Cumulative OTTI credit losses recognized in earnings on securities still held Credit impairments Credit impairments December 31, recognized in earnings recognized in earnings on December 31, 2013 on securities not securities that have been 2014 Balance previously impaired previously impaired Balance (In thousands) Available for sale securities Private label MBS $ 5,389 $ - $ 388 $ 5,777 |
Significant Assumptions in Valuation of Private Label MBS [Table Text Block] | As of As of December 31, 2016 December 31, 2015 Weighted Weighted Average Range Average Range Discount rate 14.1% 12.88-14.43% 14.5% 14.5% Prepayment rate 13.8% 6.5-22.5% 25% 15.92% - 31.25% Projected Cumulative Loss Rate 4% 0.2-8.6% 4% 0.18% - 6.66% |
Schedule of aggregate amortized cost and approximate market value of investment securities available for sale [Table Text Block] | The aggregate amortized cost and approximate market value of investment securities available for sale as of December 31, 2016 by contractual maturity, are shown below: Amortized Cost Fair Value (Dollars in thousands) Within 1 year $ 7,660 $ 7,663 After 1 to 5 years 486,452 471,898 After 5 to 10 years 151,626 152,706 After 10 years 1,262,404 1,249,245 Total $ 1,908,142 $ 1,881,512 Equity securities 415 408 Total investment securities available for sale $ 1,908,557 $ 1,881,920 |
Schedule of Available-for-sale Securities by issuer type [Table Text Block] | As of As of December 31, 2016 December 31, 2015 Amortized Amortized Cost Fair Value Cost Fair Value (In thousands) FHLMC $ 399,955 $ 394,249 $ 323,437 $ 322,772 GNMA 254,495 265,615 285,584 301,573 FNMA 849,584 843,818 954,178 953,866 FHLB 231,666 229,792 223,049 219,320 |
Held to maturity Securities [Member] | |
Available-for-Sale Investments' Fair Value and Gross Unrealized Losses [Table Text Block] | As of December 31, 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 $ - $ - $ 132,759 $ 23,431 $ 132,759 $ 23,431 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 |
Held To Maturity Securities [Text Block] | December 31, 2016 Amortized cost Fair value Weighted average yield% Gross Unrealized gains losses Puerto Rico Municipal Bonds: After 1 to 5 years $ 1,136 $ - $ 20 $ 1,116 5.38 After 5 to 10 years 10,741 - 718 10,023 4.47 After 10 years 144,313 - 22,693 121,620 4.74 Total investment securities held to maturity $ 156,190 $ - $ 23,431 $ 132,759 4.73 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 |
INTEREST AND DIVIDEND ON INVE47
INTEREST AND DIVIDEND ON INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Interest and Dividend on Investments [Abstract] | |
Schedule of of interest on investments and FHLB dividend income [Table Text Block] | Year Ended December 31, 2016 2015 2014 (In thousands) Mortgage-backed securities: Taxable $ 11,246 $ 13,520 $ 16,303 Exempt 20,921 23,779 28,606 32,167 37,299 44,909 PR government obligations, U.S. Treasury securities, and U.S. government agencies: Taxable 4,131 2,628 1,357 Exempt 13,145 13,848 12,937 17,276 16,476 14,294 Other investment securities (including FHLB dividends) Taxable 1,462 1,075 1,169 Total interest income on investment securities 50,905 54,850 60,372 Interest on money market instruments: Taxable 2,669 1,490 1,734 Exempt 696 658 158 Total interest income on money market instruments 3,365 2,148 1,892 Total interest and dividend income on investments and money market instruments $ 54,270 $ 56,998 $ 62,264 |
Schedule of components of interest and dividend income on investments [Table Text Block] | The following table summarizes the components of interest and dividend income on investments: Year Ended December 31, 2016 2015 2014 (In thousands) Interest income on investment securities and money market investments $ 52,816 $ 55,923 $ 61,095 Dividends on FHLB stock 1,454 1,075 1,169 Total interest income and dividends on investments $ 54,270 $ 56,998 $ 62,264 |
LOAN PORTFOLIO (Tables)
LOAN PORTFOLIO (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Loan Portfolio Held for Investment [Table Text Block] | As of As of December 31, December 31, 2016 2015 (In thousands) Residential mortgage loans, mainly secured by first mortgages $ 3,296,031 $ 3,344,719 Commercial loans: Construction loans 124,951 156,195 Commercial mortgage loans 1,568,808 1,537,806 Commercial and Industrial loans (1) 2,180,455 2,246,513 Total commercial loans 3,874,214 3,940,514 Finance leases 233,335 229,165 Consumer loans 1,483,293 1,597,984 Loans held for investment 8,886,873 9,112,382 Allowance for loan and lease losses (205,603) (240,710) Loans held for investment, net $ 8,681,270 $ 8,871,672 (1) As of December 31, 2016 and 2015, includes $853.9 million and $973.2 million, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. |
Loans Held for Investment on Which Accrual of Interest Income had been Discontinued [Table Text Block] | Loans held for investment on which accrual of interest income had been discontinued were as follows: As of As of December 31, December 31, 2016 2015 (In thousands) Non-performing loans: Residential mortgage $ 160,867 $ 169,001 Commercial mortgage 178,696 51,333 Commercial and Industrial 146,599 137,051 Construction: Land 11,026 12,174 Construction-commercial 36,893 39,466 Construction-residential 1,933 2,996 Consumer: Auto loans 14,346 17,435 Finance leases 1,335 2,459 Other consumer loans 8,399 10,858 Total non-performing loans held for investment (1)(2)(3) $ 560,094 $ 442,773 ________________ (1) As of December 31, 2016 and December 31, 2015, excludes $8.1 million of non-performing loans held for sale. (2) Amount excludes PCI loans with a carrying value of approximately $165.8 million and $173.9 million as of December 31, 2016 and 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 $384.9 million and $414.9 million of TDR loans that are in compliance with the modified terms and in accrual status as of December 31, 2016 and 2015, respectively. |
Corporation's Aging of Loans Held for Investment Portfolio [Table Text Block] | The Corporation’s aging of the loans held for investment portfolio is as follows: As of December 31, 2016 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due (1) Total Past Due Purchased Credit-Impaired Loans Current Total loans held for investment 90 days past due and still accruing (In thousands) Residential mortgage: FHA/VA and other government-guaranteed loans (2) (3) (4) $ - $ 5,179 $ 77,052 $ 82,231 $ - $ 44,627 $ 126,858 $ 77,052 Other residential mortgage loans (4) - 94,004 177,568 271,572 162,676 2,734,925 3,169,173 16,701 Commercial: Commercial and Industrial loans 14,195 3,724 151,967 169,886 - 2,010,569 2,180,455 5,368 Commercial mortgage loans (4) - 4,534 181,977 186,511 3,142 1,379,155 1,568,808 3,281 Construction: Land (4) - 436 11,504 11,940 - 19,826 31,766 478 Construction-commercial - - 36,893 36,893 - 40,582 77,475 - Construction-residential (4) - - 1,933 1,933 - 13,777 15,710 - Consumer: Auto loans 57,142 13,523 14,346 85,011 - 762,947 847,958 - Finance leases 7,714 1,671 1,335 10,720 - 222,615 233,335 - Other consumer loans 7,675 5,254 12,328 25,257 - 610,078 635,335 3,929 Total loans held for investment $ 86,726 $ 128,325 $ 666,903 $ 881,954 $ 165,818 $ 7,839,101 $ 8,886,873 $ 106,809 (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 $29.3 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, 2016. (3) As of December 31, 2016, includes $43.7 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 and other 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, 2016 amounted to $9.9 million, $142.8 million, $4.6 million, $0.7 million, and $0.4 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 Past Due Purchased Credit-Impaired Loans Current Total loans held for investment 90 days past due and still accruing (In thousands) 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 and other 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 [Table Text Block] | The Corporation’s credit quality indicators by loan type as of December 31, 2016 and 2015 are summarized below: Commercial Credit Exposure-Credit Risk Profile based on Creditworthiness Category: Substandard Doubtful Loss Total Adversely Classified (1) Total Portfolio December 31, 2016 (In thousands) Commercial Mortgage $ 193,391 $ 35,416 $ - $ 228,807 $ 1,568,808 Construction: Land 19,345 - - 19,345 31,766 Construction-commercial 36,893 - - 36,893 77,475 Construction-residential 1,933 - - 1,933 15,710 Commercial and Industrial 133,599 67,996 784 202,379 2,180,455 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 of non-performing loans held for sale as of December 31, 2016 and 2015. December 31, 2016 Consumer Credit Exposure-Credit Risk Profile Based on Payment Activity Residential Real-Estate Consumer FHA/VA/ Guaranteed (1) Other residential loans Auto Finance Leases Other Consumer (In thousands) Performing $ 126,858 $ 2,845,630 $ 833,612 $ 232,000 $ 626,936 Purchased Credit-Impaired (2) - 162,676 - - - Non-performing - 160,867 14,346 1,335 8,399 Total $ 126,858 $ 3,169,173 $ 847,958 $ 233,335 $ 635,335 (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. This balance includes $29.3 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, 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. December 31, 2015 Consumer Credit Exposure-Credit Risk Profile Based on Payment Activity Residential Real-Estate Consumer FHA/VA/ Guaranteed (1) Other residential loans Auto Finance Leases Other Consumer (In thousands) Performing $ 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. This balance includes $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 [Table Text Block] | Impaired Loans Recorded Investment Unpaid Principal Balance Related Specific Allowance Average Recorded Investment Interest Income Recognized on Accrual Basis Interest Income Recognized on Cash Basis (In thousands) As of December 31, 2016 With no related allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 67,996 82,602 - 71,003 741 731 Commercial: Commercial mortgage loans 72,620 91,685 - 80,713 940 550 Commercial and Industrial loans 14,656 24,642 - 17,209 42 - Construction: Land 180 233 - 212 2 2 Construction-commercial - - - - - - Construction-residential 956 1,531 - 956 - - Consumer: Auto loans 599 599 - 615 7 - Finance leases 94 94 - 95 1 - Other consumer loans 4,516 5,876 - 4,696 233 106 $ 161,617 $ 207,262 $ - $ 175,499 $ 1,966 $ 1,389 With an allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 374,271 423,648 8,633 380,273 17,751 1,503 Commercial: Commercial mortgage loans 121,771 133,883 26,172 122,609 463 173 Commercial and Industrial loans 138,887 165,399 22,638 149,153 589 1,287 Construction: Land 14,870 19,918 947 15,589 168 49 Construction-commercial 36,893 38,721 324 38,191 - - Construction-residential 392 551 134 392 - - Consumer: Auto loans 24,276 24,276 3,717 26,562 1,813 - Finance leases 2,553 2,553 71 2,751 202 - Other consumer loans 12,375 12,734 1,785 13,322 1,143 48 $ 726,288 $ 821,683 $ 64,421 $ 748,842 $ 22,129 $ 3,060 Total: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 442,267 506,250 8,633 451,276 18,492 2,234 Commercial: Commercial mortgage loans 194,391 225,568 26,172 203,322 1,403 723 Commercial and Industrial loans 153,543 190,041 22,638 166,362 631 1,287 Construction: Land 15,050 20,151 947 15,801 170 51 Construction-commercial 36,893 38,721 324 38,191 - - Construction-residential 1,348 2,082 134 1,348 - - Consumer: Auto loans 24,875 24,875 3,717 27,177 1,820 - Finance leases 2,647 2,647 71 2,846 203 - Other consumer loans 16,891 18,610 1,785 18,018 1,376 154 $ 887,905 $ 1,028,945 $ 64,421 $ 924,341 $ 24,095 $ 4,449 Recorded Investment Unpaid Principal Balance Related Specific Allowance Average Recorded Investment Interest Income Recognized Accrual Basis Interest Income Recognized Cash Basis (In thousands) As of December 31, 2015 With no related allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 65,495 74,146 - 67,282 558 688 Commercial: Commercial mortgage loans 54,048 66,448 - 54,967 1,329 832 Commercial and Industrial loans 27,492 29,957 - 28,326 - 693 Construction: Land - - - - - - Construction-commercial 39,466 40,000 - 39,736 - - Construction-residential 3,046 3,046 - 3,098 164 - Consumer: Auto loans - - - - - - Finance leases - - - - - - Other consumer loans 2,618 4,300 - 2,766 21 115 $ 192,165 $ 217,897 $ - $ 196,175 $ 2,072 $ 2,328 With an allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 395,173 440,947 21,787 398,790 17,543 1,640 Commercial: Commercial mortgage loans 27,479 40,634 3,073 30,518 347 501 Commercial and Industrial loans 143,214 164,050 18,096 148,547 2,338 1,939 Construction: Land 9,578 13,758 1,060 9,727 44 70 Construction-commercial - - - - - - Construction-residential 1,426 2,180 142 1,476 - - Consumer: Auto loans 21,581 21,581 6,653 23,531 1,494 - Finance leases 2,077 2,077 86 2,484 170 - Other consumer loans 13,816 14,043 1,684 14,782 1,592 25 $ 614,344 $ 699,270 $ 52,581 $ 629,855 $ 23,528 $ 4,175 Total: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 460,668 515,093 21,787 466,072 18,101 2,328 Commercial: Commercial mortgage loans 81,527 107,082 3,073 85,485 1,676 1,333 Commercial and Industrial loans 170,706 194,007 18,096 176,873 2,338 2,632 Construction: Land 9,578 13,758 1,060 9,727 44 70 Construction-commercial 39,466 40,000 - 39,736 - - Construction-residential 4,472 5,226 142 4,574 164 - Consumer: Auto loans 21,581 21,581 6,653 23,531 1,494 - Finance leases 2,077 2,077 86 2,484 170 - Other consumer loans 16,434 18,343 1,684 17,548 1,613 140 $ 806,509 $ 917,167 $ 52,581 $ 826,030 $ 25,600 $ 6,503 |
Activity for Impaired loans [Table Text Block] | The following tables show the activity for impaired loans during 2016, 2015 and 2014 and the related specific reserves: 2016 2015 2014 (In thousands) Impaired Loans: Balance at beginning of year $ 806,509 $ 945,407 $ 919,112 Loans determined impaired during the year 288,202 160,837 306,390 Charge-offs (1) (67,210) (99,023) (106,154) Loans sold, net of charge-offs (8,675) (67,836) (4,500) Reclassification from loans held for sale - 40,005 - Increases to impaired loans - additional disbursements 3,236 3,340 5,028 Foreclosures (36,161) (57,728) (40,582) Loans no longer considered impaired (27,643) (46,489) (22,333) Paid in full or partial payments (70,353) (72,004) (111,554) Balance at end of year $ 887,905 $ 806,509 $ 945,407 (1) For the year ended December 31, 2016, includes $4.2 million of charge-offs related to impaired loans included in a sale of a $16.3 million pool of non-performing assets and, for the year ended December 31, 2015, includes $63.9 million of charge-offs related to a bulk sales of assets, as further discussed below. |
Activity for Specific Reserve [Table Text Block] | (In thousands) 2016 2015 2014 Specific Reserve: Balance at beginning of year $ 52,581 $ 55,205 $ 102,601 Provision for loan losses 78,695 91,515 58,758 Net charge-offs (66,855) (94,139) (106,154) Balance at end of year $ 64,421 $ 52,581 $ 55,205 |
Carrying Value Of Purchased Credit Impaired Loans | The carrying amount of PCI loans follows: As of As of December 31, December 31, 2016 2015 (In thousands) Residential mortgage loans $ 162,676 $ 170,766 Commercial mortgage loans 3,142 3,147 Total PCI loans $ 165,818 $ 173,913 Allowance for loan losses (6,857) (3,962) Total PCI loans, net of allowance for loan losses $ 158,961 $ 169,951 |
Accretable Yield [Table Text Block] | Changes in the accretable yield of PCI loans for the years ended December 31, 2016 and 2015 were as follows: December 31, 2016 December 31, 2015 (In thousands) Balance at beginning of year $ 118,385 $ 82,460 Additions (accretable yield at acquisition of loans from Doral) - 38,319 Accretion recognized in earnings (11,533) (11,188) Reclassification from non-accretable 9,610 8,794 Balance at end of period $ 116,462 $ 118,385 |
Selected Information on TDRs Includes Recorded Investment by Loan Class and Modification Type [Table Text Block] | Selected information on TDRs that includes the recorded investment by loan class and modification type is summarized in the following tables. This information reflects all TDRs: As of December 31, 2016 Interest rate below market Maturity or term extension Combination of reduction in interest rate and extension of maturity Forgiveness of principal and/or interest Other (1) Total (In thousands) Troubled Debt Restructurings: Non-FHA/VA Residential Mortgage loans $ 29,254 $ 8,373 $ 280,588 $ - $ 57,594 $ 375,809 Commercial Mortgage loans 6,044 2,007 30,005 - 10,686 48,742 Commercial and Industrial loans 2,111 66,830 16,359 863 47,358 133,521 Construction loans: Land - 6,735 2,219 - 408 9,362 Construction-commercial - - - 36,893 - 36,893 Construction-residential - - - - 357 357 Consumer loans - Auto - 1,706 14,698 - 8,471 24,875 Finance Leases - 366 2,281 - - 2,647 Consumer loans - Other 236 2,518 9,662 299 2,127 14,842 Total Troubled Debt Restructurings $ 37,645 $ 88,535 $ 355,812 $ 38,055 $ 127,001 $ 647,048 (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. As of December 31, 2015 Interest rate below market Maturity or term extension Combination of reduction in interest rate and extension of maturity Forgiveness of principal and/or interest Other (1) Total (In thousands) Troubled Debt Restructurings: Non-FHA/VA Residential Mortgage loans $ 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 (2) - - - 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 above. (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 non-performing loan. As of December 31, 2014 Interest rate below market Maturity or term extension Combination of reduction in interest rate and extension of maturity Forgiveness of principal and/or interest Other (1) Total (In thousands) Troubled Debt Restructurings: Non-FHA/VA Residential Mortgage loans $ 24,850 $ 5,859 $ 283,317 $ - $ 35,749 $ 349,775 Commercial Mortgage Loans 29,881 12,737 72,493 - 12,655 127,766 Commercial and Industrial Loans 7,533 80,642 31,553 3,074 49,124 171,926 Construction Loans: Land - 202 1,732 - 536 2,470 Construction-Residential 6,154 337 3,112 - 434 10,037 Consumer Loans - Auto - 380 10,363 - 6,248 16,991 Finance Leases - 376 1,805 - - 2,181 Consumer Loans - Other 37 129 10,812 443 1,886 13,307 Total Troubled Debt Restructurings (2) $ 68,455 $ 100,662 $ 415,187 $ 3,517 $ 106,632 $ 694,453 (1) Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of the concessions listed in the table above. (2) Excludes TDRs held for sale amounting to $45.7 million as of December 31, 2014. |
Corporation's TDR Activity [Table Text Block] | The following table presents the Corporation's TDRs activity: Year Ended Year Ended Year Ended December 31, 2016 December 31, 2015 December 31, 2014 (In thousands) Beginning balance of TDRs $ 661,591 $ 694,453 $ 630,258 New TDRs 84,942 111,890 164,108 Increases to existing TDRs - additional disbursements 3,921 1,018 1,903 Charge-offs post-modification (1) (24,876) (64,116) (43,916) Sales, net of charge-offs (3,761) (44,048) (4,500) Foreclosures (16,834) (39,706) (4,948) Removed from TDR classification (3,031) - - Reclassification from loans held for sale (2) - 40,005 - Paid-off and partial payments (54,904) (37,905) (48,452) Ending balance of TDRs $ 647,048 $ 661,591 $ 694,453 (1) For the year ended December 31, 2016, includes $1.3 million of charge-offs related to TDRs included in the sale of the $16.3 million pool of non-performing assets. For the year ended December 31, 2015 includes $45.3 million of charge-offs related to TDRs included in the bulk sale of assets. (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 non-performing loan. |
Breakdown Between Accrual and Nonaccrual Status of TDRs [Table Text Block] | The following table provides a breakdown between accrual and nonaccrual status of TDR loans: As of December 31, 2016 Accrual Nonaccrual (1) Total TDRs (In thousands) Non-FHA/VA Residential Mortgage loans $ 295,656 $ 80,153 $ 375,809 Commercial Mortgage loans 32,340 16,402 48,742 Commercial and Industrial loans 18,496 115,025 133,521 Construction loans: Land 7,732 1,630 9,362 Construction-commercial - 36,893 36,893 Construction-residential - 357 357 Consumer loans - Auto 16,253 8,622 24,875 Finance Leases 2,542 105 2,647 Consumer loans - Other 11,868 2,974 14,842 Total Troubled Debt Restructurings $ 384,887 $ 262,161 $ 647,048 (1) Included in non-accrual loans are $110.6 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. As of December 31, 2015 Accrual Nonaccrual (1) Total TDRs (In thousands) 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] | Year ended December 31, 2016 Number of contracts Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment (In thousands) Troubled Debt Restructurings: Non-FHA/VA Residential Mortgage loans 209 $ 30,940 $ 29,668 Commercial Mortgage loans 11 5,710 5,739 Commercial and Industrial loans 25 22,182 22,184 Construction loans: Land 9 6,759 6,756 Consumer loans - Auto 744 13,141 13,141 Finance Leases 74 1,878 1,878 Consumer loans - Other 1,156 5,496 5,576 Total Troubled Debt Restructurings 2,228 $ 86,106 $ 84,942 Year ended December 31, 2015 Number of contracts Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment (In thousands) Troubled Debt Restructurings: Non-FHA/VA Residential Mortgage loans 408 $ 67,006 $ 64,679 Commercial Mortgage loans 16 22,366 19,914 Commercial and Industrial loans 5 5,971 5,351 Construction loans: Land 7 603 600 Consumer loans - Auto 756 12,219 11,985 Finance Leases 55 1,447 1,250 Consumer loans - Other 1,338 8,158 8,111 Total Troubled Debt Restructurings 2,585 $ 117,770 $ 111,890 Year ended December 31, 2014 Number of contracts Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment (In thousands) Troubled Debt Restructurings: Non-FHA/VA Residential Mortgage loans 291 $ 40,166 $ 39,194 Commercial Mortgage loans 9 2,853 2,855 Commercial and Industrial loans 17 105,372 105,110 Construction loans: Land 6 257 219 Consumer loans - Auto 602 8,903 8,748 Finance Leases 45 953 800 Consumer loans - Other 1,492 7,240 7,182 Total Troubled Debt Restructurings 2,462 $ 165,744 $ 164,108 |
Loan Modifications Considered Troubled Debt Restructurings Defaulted [Table Text Block] | Year ended December 31, 2016 2015 2014 Number of contracts Recorded Investment Number of contracts Recorded Investment Number of contracts Recorded Investment (In thousands) Non-FHA/VA Residential Mortgage loans 50 $ 7,673 69 $ 10,240 55 $ 8,087 Commercial Mortgage loans - - 1 2,179 2 4,604 Commercial and Industrial loans - - 4 5,745 2 1,537 Construction loans: Land - - - - 1 46 Consumer loans - Auto 51 764 13 159 45 697 Finance Leases 2 43 6 185 6 115 Consumer loans - Other 119 454 172 706 241 989 Total 222 $ 8,934 265 $ 19,214 352 $ 16,075 |
Loan Restructuring and Effect on Allowance for Loan and Lease Losses [Table Text Block] | (In thousands) December 31, 2016 December 31, 2015 December 31, 2014 Principal balance deemed collectible at end of year $ 36,971 $ 39,329 $ 46,032 Amount (recovered) charged off $ - $ - $ (7,501) Charges (reductions) to the provision for loan losses $ 4,279 $ 131 $ (8,341) Allowance for loan losses at end of year $ 5,141 $ 862 $ 731 |
Past Due Purchased Credit Impaired Table [Text Block] | The following tables present PCI loans by past due status as of December 31, 2016 and 2015: As of December 31, 2016 30-59 Days 60-89 Days 90 days or more Total Past Due Total PCI loans Current (In thousands) Residential mortgage loans $ - $ 11,892 $ 27,849 $ 39,741 $ 122,935 $ 162,676 Commercial mortgage loans - 355 1,150 1,505 1,637 3,142 Total (1) $ - $ 12,247 $ 28,999 $ 41,246 $ 124,572 $ 165,818 _____________ (1) According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage and commercial mortgage loans are considered past due when the borrower is in arrears two or more monthly payments. PCI residential mortgage loans and commercial mortgage loans past due 30-59 days as of December 31, 2016 amounted to $22.3 million and $0.1 million, respectively. As of December 31, 2015 30-59 Days 60-89 Days 90 days or more Total Past Due Total PCI loans Current (In thousands) Residential mortgage loans $ - $ 16,094 $ 22,218 $ 38,312 $ 132,454 $ 170,766 Commercial mortgage loans - - 992 992 2,155 3,147 Total (1) $ - $ 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 follows: Year ended Year ended December 31, 2016 December 31, 2015 (In thousands) Balance at beginning of period $ 173,913 $ 102,604 Additions (1) - 79,889 Accretion 11,533 11,188 Collections (17,184) (19,572) Foreclosures (2,444) (196) Ending balance $ 165,818 $ 173,913 Allowance for loan losses (6,857) (3,962) Ending balance, net of allowance for loan losses $ 158,961 $ 169,951 (1) For the year ended December 31, 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: Year ended December 31, 2016 December 31, 2015 Balance at beginning of period $ 3,962 $ - Provision for loan losses 2,895 3,962 Balance at end of period $ 6,857 $ 3,962 |
ALLOWANCE FOR LOAN AND LEASE 49
ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Changes in Allowance for Loan and Lease Losses [Table Text Block] | The changes in the allowance for loan and lease losses were as follows: Residential Commercial Commercial and Construction Consumer Year Ended December 31, 2016 Mortgage Loans Mortgage Loans Industrial Loans Loans Loans Total (In thousands) Allowance for loan and lease losses: Beginning balance $ 39,570 $ 68,211 $ 68,768 $ 3,519 $ 60,642 $ 240,710 Charge-offs (33,621) (20,454) (26,579) (1,770) (54,504) (136,928) Recoveries 2,941 816 2,689 316 8,326 15,088 Provision 25,090 8,688 17,075 497 35,383 86,733 Ending balance $ 33,980 $ 57,261 $ 61,953 $ 2,562 $ 49,847 $ 205,603 Ending balance: specific reserve for impaired loans $ 8,633 $ 26,172 $ 22,638 $ 1,405 $ 5,573 $ 64,421 Ending balance: purchased credit-impaired loans (1) $ 6,632 $ 225 $ - $ - $ - $ 6,857 Ending balance: general allowance $ 18,715 $ 30,864 $ 39,315 $ 1,157 $ 44,274 $ 134,325 Loans held for investment: Ending balance $ 3,296,031 $ 1,568,808 $ 2,180,455 $ 124,951 $ 1,716,628 $ 8,886,873 Ending balance: impaired loans $ 442,267 $ 194,391 $ 153,543 $ 53,291 $ 44,413 $ 887,905 Ending balance: purchased credit-impaired loans $ 162,676 $ 3,142 $ - $ - $ - $ 165,818 Ending balance: loans with general allowance $ 2,691,088 $ 1,371,275 $ 2,026,912 $ 71,660 $ 1,672,215 $ 7,833,150 Residential Commercial Commercial and Construction Consumer Year Ended December 31, 2015 Mortgage Loans Mortgage Loans Industrial Loans Loans Loans Total (In thousands) Allowance for loan and lease losses: Beginning balance $ 27,301 $ 50,894 $ 63,721 $ 12,822 $ 67,657 $ 222,395 Charge-offs (19,317) (56,101) (33,844) (4,994) (62,465) (176,721) Recoveries 1,209 6,534 4,316 2,582 8,350 22,991 Provision (release) 30,377 66,884 34,575 (6,891) 47,100 172,045 Ending balance $ 39,570 $ 68,211 $ 68,768 $ 3,519 $ 60,642 $ 240,710 Ending balance: specific reserve for impaired loans $ 21,787 $ 3,073 $ 18,096 $ 1,202 $ 8,423 $ 52,581 Ending balance: purchased credit-impaired loans (1) $ 3,837 $ 125 $ - $ - $ - $ 3,962 Ending balance: general allowance $ 13,946 $ 65,013 $ 50,672 $ 2,317 $ 52,219 $ 184,167 Loans held for investment: Ending balance $ 3,344,719 $ 1,537,806 $ 2,246,513 $ 156,195 $ 1,827,149 $ 9,112,382 Ending balance: impaired loans $ 460,668 $ 81,527 $ 170,706 $ 53,516 $ 40,092 $ 806,509 Ending balance: purchased credit-impaired loans $ 170,766 $ 3,147 $ - $ - $ - $ 173,913 Ending balance: loans with general allowance $ 2,713,285 $ 1,453,132 $ 2,075,807 $ 102,679 $ 1,787,057 $ 8,131,960 (1) Refer to Note 8 - Loans Held for Investment - PCI Loans for a detail of changes in the allowance for loan losses related to PCI loans. |
LOANS HELD FOR SALE (Tables)
LOANS HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Portfolio of Loans Held for Sale [Table Text Block] | December 31, 2016 2015 (In thousands) Residential mortgage loans $ 41,927 $ 27,734 Construction loans 8,079 8,135 Total $ 50,006 $ 35,869 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, (In thousands) 2016 2015 OREO OREO balances, carrying value: Residential (1) $ 46,917 $ 43,563 Commercial 78,698 87,849 Construction 12,066 15,389 Total $ 137,681 $ 146,801 (1) Excludes $15.0 million and $8.9 million as of December 31, 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 statements of financial condition. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | Amount (In thousands) Balance at December 31, 2014 $ 1,333 New loans 43 Payments (130) Other changes 6 Balance at December 31, 2015 1,252 New loans 102 Payments (146) Other changes - Balance at December 31, 2016 $ 1,208 |
PROPERTY PLANT AND EQUIPMENT (T
PROPERTY PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property Plant And Equipment [Text Block] | Useful Life In Years As of December 31, 2016 2015 (Dollars in thousands) Buildings and improvements 10-35 $ 139,533 $ 142,872 Leasehold improvements 1-10 60,605 61,089 Furniture and equipment 2-10 165,386 162,954 365,524 366,915 Accumulated depreciation and amortization (248,335) (238,734) 117,189 128,181 Land 25,279 26,932 Projects in progress 8,360 5,903 Total premises and equipment, net $ 150,828 $ 161,016 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Gross Amount and Accumulated Amortization of Other Intangible Assets [Table Text Block] | The following table shows the gross amount and accumulated amortization of the Corporation’s intangible assets recognized as part of Other Assets in the consolidated statements of financial condition: As of 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 (44,466) (42,498) Net carrying amount $ 7,198 $ 9,166 Remaining amortization period 8.1 years 9.0 years Purchased credit card relationship intangible: Gross amount $ 24,465 $ 24,465 Accumulated amortization (13,934) (11,146) Net carrying amount $ 10,531 $ 13,319 Remaining amortization period 5 years 5.8 years Insurance customer relationship intangible: Gross amount $ 1,067 $ - Accumulated amortization (140) - Net carrying amount $ 927 $ - Remaining amortization period 6.1 years - |
Schedule of Expected Amortization Expense [Table Text Block] | The estimated aggregate annual amortization expense related to the intangible assets for future periods is as follows: Amount (In thousands) 2017 $ 4,495 2018 3,519 2019 3,067 2020 2,851 2021 2,658 2022 and after 2,066 |
NON-CONSOLIDATED VARIABLE INT55
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Changes in Servicing Assets [Table Text Block] | The changes in servicing assets are shown below: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at beginning of year $ 24,282 $ 22,838 $ 21,987 Capitalization of servicing assets 5,260 4,919 4,321 Amortization (3,229) (3,159) (3,156) Adjustment to fair value (325) (228) (228) Other (1) 256 (88) (86) Balance at end of year $ 26,244 $ 24,282 $ 22,838 (1) Amount represents the adjustment to fair value related to the repurchase of loans serviced for others. |
Changes in Impairment Allowance [Table Text Block] | Changes in the impairment allowance were as follows: Year ended December 31, 2016 2015 2014 (In thousands) Balance at beginning of year $ 136 $ 55 $ 212 Temporary impairment charges 466 285 343 OTTI of servicing assets - (147) (385) Recoveries (141) (57) (115) Balance at end of year $ 461 $ 136 $ 55 |
Components of Net Servicing Income [Table Text Block] | The components of net servicing income are shown below: Year ended December 31, 2016 2015 2014 (In thousands) Servicing fees $ 7,606 $ 7,211 $ 6,999 Late charges and prepayment penalties 674 765 695 Adjustment for loans repurchased 256 (88) (86) Other (1) (1) (161) (1,253) Servicing income, gross 8,535 7,727 6,355 Amortization and impairment of servicing assets (3,554) (3,387) (3,384) Servicing income, net $ 4,981 $ 4,340 $ 2,971 (1) Mainly consisted of compensatory fees imposed by GSEs. |
Key Economic Assumptions Used in Determining Fair Value at Time of Sale of Loans [Table Text Block] | The Corporation’s servicing assets are subject to prepayment and interest rate risks. Key economic assumptions used in determining the fair value at the time of sale of the related mortgages ranged as follows: Maximum Minimum 2016: Constant prepayment rate: Government-guaranteed mortgage loans 7.6 % 5.9 % Conventional conforming mortgage loans 8.0 % 6.3 % Conventional non-conforming mortgage loans 14.1 % 9.3 % 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 % 2015: Constant prepayment rate: Government-guaranteed mortgage loans 9.2 % 7.8 % 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 % 2014: Constant prepayment rate: Government-guaranteed mortgage loans 9.6 % 9.1 % Conventional conforming mortgage loans 9.4 % 8.9 % Conventional non-conforming mortgage loans 14.0 % 12.7 % Discount rate: Government-guaranteed mortgage loans 11.5 % 11.5 % Conventional conforming mortgage loans 9.5 % 9.5 % Conventional non-conforming mortgage loans 13.9 % 13.8 % |
Weighted-Averages of Key Economic Assumptions in Valuation Model [Table Text Block] | (Dollars in thousands) Carrying amount of servicing assets $ 26,244 Fair value $ 29,664 Weighted-average expected life (in years) 8.58 Constant prepayment rate (weighted-average annual rate) 6.12 % Decrease in fair value due to 10% adverse change $ 758 Decrease in fair value due to 20% adverse change $ 1,483 Discount rate (weighted-average annual rate) 11.19 % Decrease in fair value due to 10% adverse change $ 1,413 Decrease in fair value due to 20% adverse change $ 2,708 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Deposit Balances [Table Text Block] | The following table summarizes deposit balances as of the dates indicated: December 31, 2016 2015 (In thousands) Type of account and interest rate: Non-interest-bearing checking accounts $ 1,484,155 $ 1,336,559 Interest-bearing savings accounts - 0.05% to 0.40% (2015- 0.05% to 0.70%) 2,518,496 2,459,186 Interest-bearing checking accounts - 0.05% to 1.00% (2015- 0.10% to 1.06%) 1,075,929 1,088,651 Certificates of deposit- 0.10% to 4.00% (2015- 0.10% to 5.05%) 2,312,928 2,356,245 Brokered certificates of deposit- 0.60% to 2.80% (2015- 0.45% to 2.80%) 1,439,697 2,097,483 $ 8,831,205 $ 9,338,124 |
Brokered Certificates Of Deposit Mature [Table Text Block] | Brokered CDs mature as follows: December 31, 2016 (In thousands) Three months or less $ 253,475 Over three months to six months 150,627 Over six months to one year 394,710 One to three years 540,566 Three to five years 98,755 Over five years 1,564 Total $ 1,439,697 |
Schedule of cash deposits maturity [Table Text Block] | The following table presents the contractual maturities of CDs, including brokered CDs, as of December 31, 2016: Total (In thousands) Three months or less $ 609,994 Over three months to six months 410,852 Over six months to one year 961,619 Over one year to two years 1,052,030 Over two years to three years 402,077 Over three years to four years 115,771 Over four years to five years 193,899 Over five years 6,383 Total $ 3,752,625 |
Schedule of Interest Expenses on Deposits [Table Text Block] | A table showing interest expense on deposits follows: Year Ended December 31, 2016 2015 2014 (In thousands) Interest-bearing checking accounts $ 4,914 $ 5,440 $ 6,446 Savings 12,392 13,660 15,416 Certificates of deposit 28,068 25,246 26,371 Brokered certificates of deposit 21,928 24,904 29,894 Total $ 67,302 $ 69,250 $ 78,127 |
SECURITIES SOLD UNDER AGREEME57
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule Of Repurchase Agreements [Table Text Block] | December, 31 2016 2015 (Dollars in thousands) Repurchase agreements, interest ranging from 1.96% to 2.83% (December 31, 2015: 1.96% to 3.41%) (1)(2) $ 300,000 $ 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 December 31, 2016, includes $200 million that have an average rate of 2.11% and that are callable by lenders before their contractual maturities at various dates beginning on January 19, 2017. Subsequent to December 31, 2016, no lender has exercised its call option on repurchase agreements. In addition, $100 million is tied to variable rates. |
Schedule of Repurchase Agreement Maturity [Table Text Block] | Repurchase agreements mature as follows: December 31, 2016 (In thousands) Over six months to one year $ 100,000 Over five years 200,000 Total $ 300,000 |
Schedule of Securities Sold Under Repurchase Agreements [Table Text Block] | The following securities were sold under agreements to repurchase: December 31, 2016 Amortized Approximate Weighted Cost of Fair Value Average Underlying Balance of of Underlying Interest Rate Underlying Securities Securities Borrowing Securities of Security (In thousands) U.S. government-sponsored agencies $ 126,205 $ 123,175 $ 125,417 1.30 % Mortgage-backed securities 215,352 176,825 213,973 2.20 % Total $ 341,557 $ 300,000 $ 339,390 Accrued interest receivable $ 1,400 December 31, 2015 Amortized Approximate Weighted Cost of Fair Value Average Underlying Balance of of Underlying Interest Rate Underlying Securities Securities Borrowing Securities of Security (In thousands) U.S. government-sponsored agencies $ 233,175 $ 211,010 $ 230,603 1.47 % Mortgage-backed securities 564,595 488,990 562,959 2.18 % Total $ 797,770 $ 700,000 $ 793,562 Accrued interest receivable $ 2,145 |
Repurchase Agreements Grouped by Counterparty [Table Text Block] | Repurchase agreements as of December 31, 2016, grouped by counterparty, were as follows: (Dollars in thousands) Weighted-Average Counterparty Amount Maturity (In Months) Dean Witter / Morgan Stanley $ 100,000 10 JP Morgan Chase 200,000 61 $ 300,000 |
ADVANCES FROM THE FEDERAL HOM58
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Advances from FHLB [Table Text Block] | The following is a summary of the advances from the FHLB: December 31, December 31, 2016 2015 (In thousands) Short-term fixed-rate advances from FHLB, with a weighted-average interest rate of 0.78% $ 170,000 $ - Long-term fixed-rate advances from FHLB, with a weighted-average interest rate of 1.49% (December 31, 2015 - 1.30%) 500,000 455,000 $ 670,000 $ 455,000 |
Advances from FHLB Mature [Table Text Block] | Advances from FHLB mature as follows: December 31, 2016 (In thousands) Within 30 days $ 170,000 One to six months - Six months to one year 200,000 Over one to three years 300,000 Total $ 670,000 |
OTHER BORROWINGS (Tables)
OTHER BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Components of Other Borrowings [Table Text Block] | December 31, 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 (3.74% as of December 31, 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 (3.50% as of December 31, 2016 and 3.07% as of December 31, 2015) (1) 118,557 128,866 $ 216,187 $ 226,492 (1) Refer to Note 15 - Non-Consolidated Variable Interest Entities and Servicing Assets - Trust Preferred Securities for additional information, including information about the Corporation's repurchase and cancellation of $10 million of trust preferred securities associated with these junior subordinated debentures. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Calculations of Earnings Per Common Share [Table Text Block] | The calculation of earnings per common share for the years ended December 31, 2016, 2015, and 2014 are as follows: Year Ended December 31, 2016 2015 2014 (In thousands, except per share information) Net income $ 93,229 $ 21,297 $ 392,287 Less: Preferred stock dividends (223) - - Favorable impact from issuing common stock in exchange for Series A through E preferred stock (1) - - 1,659 Net income attributable to common stockholders $ 93,006 $ 21,297 $ 393,946 Weighted-Average Shares: Average common shares outstanding 212,818 211,457 208,752 Average potential dilutive common shares 2,976 1,514 1,788 Average common shares outstanding - assuming dilution 215,794 212,971 210,540 Earnings per common share: Basic $ 0.44 $ 0.10 $ 1.89 Diluted $ 0.43 $ 0.10 $ 1.87 ____________ (1) Excess of carrying amount of the Series A through E preferred stock exchanged over the fair value of new common shares issued in 2014. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Activity of Stock Options [Table Text Block] | The activity of stock options granted under the 1997 stock option plan for the year ended December 31, 2016 is set forth below: Weighted-Average Aggregate Remaining Intrinsic Number of Weighted-Average Contractual Term Value Options Exercise Price (Years) (In thousands) Beginning of year outstanding and exercisable 69,848 $ 160.30 Options expired (34,326) 183.37 Options cancelled (533) 138.00 End of year outstanding and exercisable 34,989 $ 138.00 0.1 $ - |
Restricted Stock Activity Under Omnibus Plan [Table Text Block] | The following table summarizes the restricted stock activity in 2016 under the Omnibus Plan for both executive officers covered by the TARP requirements and other employees as well as for the independent directors: 2016 Number of Weighted- shares of Average 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 (31,532) 4.93 Vested (683,713) 3.80 Non-vested shares at end of year 4,178,791 $ 2.58 |
OTHER NON- INTEREST INCOME (Tab
OTHER NON- INTEREST INCOME (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Non-interest Income [Abstract] | |
Schedule of other non interest income [Table Text Block] | A detail of other non-interest income is as follows: Year Ended 2016 2015 2014 (In thousands) Non-deferrable loan fees $ 3,346 $ 2,687 $ 2,414 Commissions and fees-broker-dealer-related 789 - 459 Lower of cost or market adjustment-commercial and construction loans held for sale - 191 - Loss on sale of commercial loans held for sale - (553) - Gain on exchange of trust preferred securities for common stock - 267 - Merchant-related income 4,095 9,510 8,181 ATM and POS fees 8,462 7,213 6,627 Credit card loans interchange and other fees 5,920 6,220 6,047 Other 8,288 7,259 6,763 Total $ 30,900 $ 32,794 $ 30,491 |
OTHER NON- INTEREST EXPENSES (T
OTHER NON- INTEREST EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Non Interest Expenses [Abstract] | |
Schedule of other non interest expenses [Table Text Block] | A detail of other non-interest expenses is as follows: Year Ended December 31, 2016 2015 2014 (In thousands) Supplies and printing $ 1,502 $ 3,101 $ 2,140 Provision (release) for off-balance sheet exposures 1,173 261 (653) Amortization of intangible assets 4,896 5,143 4,943 Servicing and processing fees 4,604 4,817 5,524 Write-down and losses on sale of non-real estate repossessed properties 689 755 737 Other 8,022 8,152 6,348 Total $ 20,886 $ 22,229 $ 19,039 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2016 2015 2014 (In thousands) Current income tax expense $ (13,151) $ (6,339) $ (5,361) Deferred income tax (expense) benefit (23,879) (80) 306,010 Total income tax (expense) benefit $ (37,030) $ (6,419) $ 300,649 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The differences between the income tax expense applicable to income before the provision for income taxes and the amount computed by applying the statutory tax rate in Puerto Rico were as follows: Year Ended December 31, 2016 2015 2014 Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income (Dollars in thousands) Computed income tax at statutory rate $ (50,801) (39.0) % $ (10,810) (39.0) % $ (35,738) (39.0) % Federal and state taxes - - % (190) (0.7) % (117) (0.1) % Adjustment in deferred tax due to change in tax rate - - % - - % (346) (0.4) % Benefit of net exempt income 14,995 11.5 % 9,780 35.3 % 15,202 17.0 % National receipts tax, net - - % - - % 628 0.7 % Effect of capital losses subject to preferential rates (727) (0.6) % (3,019) (10.9) % - - % Disallowed NOL carryforward resulting from net exempt income (6,396) (4.9) % (7,717) (27.8) % - - % Nontax deductible expenses (212) (0.2) % 365 1.3 % (193) (0.2) % (Decrease) increase in unrecognized tax benefits, including interest - - % - - % 1,763 2.0 % Return to provision adjustments (434) (0.3) % 1,174 4.2 % - - % Deferred tax valuation allowance 5,976 4.6 % 2,881 10.4 % 318,380 347.0 % Other-net 569 0.3 % 1,117 4.0 % 1,070 1.2 % Total income tax (expense) benefit $ (37,030) (28.6) % $ (6,419) (23.2) % $ 300,649 328.2 % |
Schedule of significant components Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Significant components of the Corporation's deferred tax assets and liabilities as of December 31, 2016 and 2015 were as follows: December 31, 2016 2015 (In thousands) Deferred tax asset: Net operating loss carryforward $ 374,091 $ 378,160 Allowance for loan and lease losses 79,330 87,769 Tax credits available for carryforward 8,006 10,714 Unrealized loss on OREO valuation 11,467 11,633 Unrealized net loss on equity investment 187 6,236 Settlement payment-closing agreement 7,313 7,313 Legal reserve 1,807 2,953 Impairment on investment 4,438 3,178 Unrealized loss on available-for-sale securities, net 502 739 Reserve for insurance premium cancellations 724 631 Unrealized losses on derivatives activities 78 48 Other 15,642 17,993 Gross deferred tax assets 503,585 527,367 Less: Valuation allowance (207,216) (201,706) Total deferred tax assets, net of valuation allowance 296,369 325,661 Deferred tax liabilities: Differences between the assigned values and tax bases of assets and liabilities recognized in purchase business combinations 5,247 5,712 Unrealized gain on other investments 468 468 Servicing assets 8,997 8,218 Gross deferred tax liabilities 14,712 14,398 Net deferred tax assets $ 281,657 $ 311,263 |
Schedule of reconciliation of change in Unrecognized Tax Benefits [Table Text Block] | The following table reconciles the balance of UTBs: 2016 2015 2014 (In thousands) Balance at January 1, $ - $ - $ 4,310 (Decrease) increase related to positions taken during prior years - - (1,763) Decrease related to settlement with taxing authorities - - (2,547) Balance at December 31, $ - $ - $ - |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Lease Commitments [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Amount (In thousands) 2017 $ 10,735 2018 10,282 2019 9,473 2020 7,490 2021 6,270 2022 and later years 41,928 Total $ 86,178 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Assets and Liabilities Measured at Fair Value on Recurring Basis [Table Text Block] | Assets and liabilities measured at fair value on a recurring basis are summarized below: As of December 31, 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 $ 408 $ - $ - $ 408 $ - $ - $ - $ - U.S. Treasury Securities 7,509 - - 7,509 7,497 - - 7,497 Noncallable U.S. agency debt - 356,919 - 356,919 - 315,467 - 315,467 Callable U.S. agency debt and MBS - 1,469,463 - 1,469,463 - 1,509,807 - 1,509,807 Puerto Rico government obligations - 24,707 2,121 26,828 - 26,327 1,890 28,217 Private label MBS - - 20,693 20,693 - - 25,307 25,307 Other investments - - 100 100 - - 100 100 Derivatives, included in assets: Purchased interest rate cap agreements - 554 - 554 - 806 - 806 Liabilities: Derivatives, included in liabilities: Written interest rate cap agreement - 552 - 552 - 798 - 798 Forward contracts - 201 - 201 - 123 - 123 |
Schedule of Changes in Fair Value [Table Text Block] | 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 years ended December 31, 2016, 2015, and 2014: 2016 2015 2014 Level 3 Instruments Only Securities Available for Sale (1) Securities Available for Sale (1) Securities Available for Sale (1) (In thousands) Beginning balance $ 27,297 $ 36,212 $ 43,292 Total gain (losses) (realized/unrealized): Included in earnings (387) (628) (388) Included in other comprehensive income 1,586 1,623 2,404 Purchases - 100 5,123 Sales - - (4,855) Principal repayments and amortization (5,582) (10,010) (9,364) Ending balance $ 22,914 $ 27,297 $ 36,212 ___________________ (1) Amounts mostly related to private label mortgage-backed securities. |
Impairment or Valuation Adjustments were Recorded for Assets Recognized at Fair Value [Table Text Block] | Carrying value as of December 31, 2016 (Losses) recorded for the Year Ended December 31, 2016 Level 1 Level 2 Level 3 (In thousands) Loans receivable (1) $ - $ - $ 442,081 $ (49,884) OREO (2) - - 137,681 (7,873) Mortgage servicing rights (3) - - 26,244 (325) (1) Consists 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) that 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 6.12%, Discount rate 11.19%. As of December 31, 2015, impairment or valuation adjustments were recorded for assets recognized at fair value on a non-recurring basis as shown in the following table: Carrying value as of December 31, 2015 (Losses) Gain recorded for the Year Ended December 31, 2015 Level 1 Level 2 Level 3 (In thousands) Loans receivable (1) $ - $ - $ 303,095 $ (27,245) OREO (2) - - 146,801 (10,494) Mortgage servicing rights (3) - - 24,282 (228) Loans Held For Sale (4) - - 8,135 338 (1) Consists 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) that 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 9.07%, Discount rate 10.65%. (4) The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans. As of December 31, 2014, impairment or valuation adjustments were recorded for assets recognized at fair value on a nonrecurring basis as shown in the following table: Carrying value as of December 31, 2014 (Losses) recorded for the Year Ended December 31, 2014 Level 1 Level 2 Level 3 (In thousands) Loans receivable (1) $ - $ - $ 446,816 $ (43,318) OREO (2) - - 124,003 (9,656) Mortgage servicing rights (3) - - 22,838 (228) Loans Held For Sale (4) - - 54,641 - (1) Consists 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) that 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 9.74%, Discount rate 10.60%. (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 [Table Text Block] | The following tables present the carrying value and the estimated fair value of financial instruments as of December 31, 2016 and 2015: Total Carrying Amount in Statement of Financial Condition December 31, 2016 Fair Value Estimate December 31, 2016 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments $ 299,685 $ 299,685 $ 299,685 $ - $ - Investment securities available for sale 1,881,920 1,881,920 7,917 1,851,089 22,914 Investment securities held to maturity 156,190 132,759 - - 132,759 Other equity securities 42,992 42,992 - 42,992 - Loans held for sale 50,006 52,707 - 42,921 9,786 Loans, held for investment 8,886,873 Less: allowance for loan and lease losses (205,603) Loans held for investment, net of allowance $ 8,681,270 8,455,104 - - 8,455,104 Derivatives, included in assets 554 554 - 554 - Liabilities: Deposits 8,831,205 8,838,606 - 8,838,606 - Securities sold under agreements to repurchase 300,000 335,840 - 335,840 - Advances from FHLB 670,000 669,687 - 669,687 - Other borrowings 216,187 171,374 - - 171,374 Derivatives, included in liabilities 753 753 - 753 - 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 are as follows: December 31, 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 Flows Weighted-average prepayment rate of 6.12%; weighted average discount rate of 11.19% |
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) as of December 31, 2016: December 31, 2016 (In thousands) Fair Value Valuation Technique Unobservable Input Range Investment securities available for sale: Private label MBS $ 20,693 Discounted cash flows Discount rate 14.1% Prepayment rate 6.5% -22.5% (Weighted Average 13.8%) Projected Cumulative Loss Rate 0.2% - 8.6% (Weighted Average 4%) Puerto Rico government obligations 2,121 Discounted cash flows Prepayment rate 3.00% |
Schedule Of Changes In Unrealized Gains Losses [Table Text Block] | The table below summarizes changes in unrealized gains and losses recorded in earnings for the years ended December 31, 2016, 2015, and 2014 for Level 3 assets and liabilities that are still held at the end of each year: Changes in Unrealized Losses (Year Ended December 31, 2016) Changes in Unrealized Losses (Year Ended December 31, 2015) Changes in Unrealized Losses (Year Ended December 31, 2014) Level 3 Instruments Only Securities Available for Sale Securities Available for Sale Securities Available for Sale (In thousands) Changes in unrealized losses relating to assets still held at reporting date: Net impairment losses on available-for-sale investment securities (credit component) $ (387) $ (628) $ (388) |
SUPPLEMENTAL CASH FLOW INFORM67
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Information [Table Text Block] | Year Ended December 31, 2016 2015 2014 (In thousands) Cash paid for: Interest on borrowings $ 127,707 $ 93,053 $ 102,402 Income tax 3,198 4,494 7,751 Non-cash investing and financing activities: Additions to other real estate owned 47,808 76,725 48,601 Additions to auto and other repossessed assets 52,628 75,279 92,266 Capitalization of servicing assets 5,260 4,919 4,321 Loan securitizations 338,333 285,995 198,712 Loans held for investment transferred to held for sale 10,332 - - Loans held for sale transferred to loans held for investment 1,443 40,086 - Property plant and equipment transferred to other assets 1,221 - - Preferred stock exchanged for new common stock issued: Preferred stock exchanged (Series A through E) - - 26,022 New common stock issued - - 24,363 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) - |
REGULATORY MATTERS, COMMITMEN68
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Matters, Commitments and Contingencies [Abstract] | |
Corporations and its banking subsidiarys regulatory capital positions [Table Text Block] | The Corporation's and its banking subsidiary's regulatory capital positions as of December 31, 2016 and 2015 were as follows: Regulatory Requirements Actual For Capital Adequacy Purposes To be Well-Capitalized-General Thresholds Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) At December 31, 2016 Total Capital (to Risk-Weighted Assets) First BanCorp. $ 1,921,329 21.34% $ 720,329 8.0% N/A N/A FirstBank $ 1,872,120 20.80% $ 720,091 8.0% $ 900,114 10.0% Common Equity Tier 1 Capital (to Risk-Weighted Assets) First BanCorp. $ 1,597,117 17.74% 405,185 4.5% N/A N/A FirstBank $ 1,523,332 16.92% 405,051 4.5% 585,074 6.5% Tier I Capital (to Risk-Weighted Assets) First BanCorp. $ 1,597,117 17.74% $ 540,247 6.0% N/A N/A FirstBank $ 1,757,642 19.53% $ 540,068 6.0% $ 720,091 8.0% Leverage ratio First BanCorp. $ 1,597,117 13.70% $ 466,376 4.0% N/A N/A FirstBank $ 1,757,642 15.10% $ 465,740 4.0% $ 582,174 5.0% At 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% |
Schedule of detail of commitments to extend credit, standby letters of credit and commitments to sell loans [Table Text Block] | The following table summarizes commitments to extend credit and standby letters of credit, and commitments to sell loans as of the indicated dates: December 31, 2016 2015 (In thousands) Financial instruments whose contract amounts represent credit risk: Commitments to extend credit: Construction undisbursed funds $ 41,271 $ 59,747 Unused personal lines of credit 667,552 687,585 Commercial lines of credit 421,437 361,226 Commercial letters of credit 47,515 24,359 Standby letters of credit 2,556 3,577 Commitments to sell loans 119,679 49,998 |
DERIVATIVE INSTRUMENTS AND HE69
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notional Amounts of All Derivative Instruments [Table Text Block] | The following table summarizes the notional amounts of all derivative instruments: Notional Amounts (1) As of 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 33,000 30,000 $ 216,020 $ 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 [Table Text Block] | The following table summarizes the fair value of derivative instruments and the location in the statement of financial conditions: Asset Derivatives Liability Derivatives Statement of Financial Condition Location December 31, December 31, Statement of Financial Condition Location December 31, December 31, 2016 2015 2016 2015 Fair Value Fair Value Fair Value Fair Value (In thousands) Undesignated economic hedges: Interest rate contracts: Written interest rate cap agreements Other assets $ - $ - Accounts payable and other liabilities $ 552 $ 798 Purchased interest rate cap agreements Other assets 554 806 Accounts payable and other liabilities - - Forward Contracts: Sales of TBA GNMA MBS pools Other assets - - Accounts payable and other liabilities 201 123 $ 554 $ 806 $ 753 $ 921 |
Effect of Derivative Instruments on Statement of Income (Loss) [Table Text Block] | The following table summarizes the effect of derivative instruments on the statement of income: Gain (or Loss) Location of Gain (or loss) Year ended Recognized in Income on December 31, Derivatives 2016 2015 2014 (In thousands) Undesignated economic hedges: Interest rate contracts: Interest rate swap agreements Interest income - Loans $ - $ - $ 1,258 Written and purchased interest rate cap agreements Interest income - Loans - 139 - Forward contracts: Sales of TBA GNMA MBS pools Mortgage Banking Activities (78) 25 (322) Total (loss) gain on derivatives $ (78) $ 164 $ 936 |
OFFSETTING OF ASSETS AND LIAB70
OFFSETTING OF ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Offsetting of assets and liabilties | Offsetting of Financial Assets and Derivative Assets As of December 31, 2016 Net Amounts of Assets Presented in the Statement of Financial Position Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Financial Instruments Cash Collateral Net Amount (In thousands) Description Derivatives $ 554 $ - $ 554 $ (554) $ - $ - Securities purchased under agreement to resell 200,000 (200,000) - - - - Total $ 200,554 $ (200,000) $ 554 $ (554) $ - $ - As of December 31, 2015 Net Amounts of Assets Presented in the Statement of Financial Position Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Financial Instruments Cash Collateral Net Amount (In thousands) Description Derivatives $ 806 $ - $ 806 $ (806) $ - $ - Securities purchased under agreement to resell 200,000 (200,000) - - - - Total $ 200,806 $ (200,000) $ 806 $ (806) $ - $ - Offsetting of Financial Liabilities and Derivative Liabilities As of December 31, 2016 Net Amounts of Liabilities Presented in the Statement of Financial Position Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Financial Instruments Cash Collateral Net Amount (In thousands) Description Securities sold under agreements to repurchase $ 200,000 $ (200,000) $ - $ - $ - $ - As of December 31, 2015 Net Amounts of Liabilities Presented in the Statement of Financial Position Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Financial Instruments Cash Collateral Net Amount (In thousands) Description Securities sold under agreements to repurchase $ 600,000 $ (200,000) $ 400,000 $ (400,000) $ - $ - |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule Of Segment Reporting Information By Segment [Text Block] | The following table presents information about the reportable segments for the years ended December 31, 2016, 2015, and 2014: Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Banking Treasury and Investments United States Operations Virgin Islands Operations Total (In thousands) For the year ended December 31, 2016: Interest income $ 138,955 $ 179,485 $ 123,084 $ 50,372 $ 56,037 $ 37,359 $ 585,292 Net (charge) credit for transfer of funds (49,435) 13,996 (26,364) 60,787 1,016 - - Interest expense - (24,787) - (57,924) (15,240) (3,223) (101,174) Net interest income 89,520 168,694 96,720 53,235 41,813 34,136 484,118 (Provision) release for loan and lease losses (24,873) (34,246) (28,578) - 1,369 (405) (86,733) Non-interest income 19,531 44,535 7,811 5,423 3,554 7,100 87,954 Direct non-interest expenses (38,170) (112,787) (40,676) (4,047) (30,678) (27,596) (253,954) Segment income $ 46,008 $ 66,196 $ 35,277 $ 54,611 $ 16,058 $ 13,235 $ 231,385 Average earnings assets $ 2,562,245 $ 1,951,214 $ 2,497,037 $ 2,616,877 $ 1,226,633 $ 612,570 $ 11,466,576 Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Banking Treasury and Investments United States Operations Virgin Islands Operations Total (In thousands) For the year ended December 31, 2015: Interest income $ 141,820 $ 194,961 $ 133,067 $ 49,534 $ 46,804 $ 39,383 $ 605,569 Net (charge) credit for transfer of funds (49,149) 17,260 (17,299) 36,908 12,280 - - Interest expense - (23,774) - (60,221) (16,192) (3,116) (103,303) Net interest income 92,671 188,447 115,768 26,221 42,892 36,267 502,266 (Provision) release for loan and lease losses (30,017) (46,657) (101,604) - 7,955 (1,722) (172,045) Non-interest income (loss) 16,027 41,854 12,487 (15,897) 2,795 10,616 67,882 Direct non-interest expenses (37,345) (133,397) (42,470) (3,840) (28,674) (34,231) (279,957) Segment income (loss) $ 41,336 $ 50,247 $ (15,819) $ 6,484 $ 24,968 $ 10,930 $ 118,146 Average earnings assets $ 2,607,230 $ 1,951,047 $ 2,891,988 $ 2,740,120 $ 1,024,939 $ 646,966 $ 11,862,290 Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Banking Treasury and Investments United States Operations Virgin Islands Operations Total (In thousands) For the year ended December 31, 2014: Interest income $ 115,997 $ 215,170 $ 163,242 $ 54,223 $ 44,882 $ 40,435 $ 633,949 Net (charge) credit for transfer of funds (37,375) 17,629 (12,364) 20,463 11,647 - - Interest expense - (24,445) - (68,517) (19,273) (3,641) (115,876) Net interest income 78,622 208,354 150,878 6,169 37,256 36,794 518,073 (Provision) release for loan and lease losses (17,605) (79,932) (40,084) - 27,650 441 (109,530) Non-interest income 13,515 40,018 5,241 264 2,450 7,139 68,627 Direct non-interest expenses (39,444) (126,290) (46,963) (5,368) (26,596) (39,319) (283,980) Segment income $ 35,088 $ 42,150 $ 69,072 $ 1,065 $ 40,760 $ 5,055 $ 193,190 Average earnings assets $ 2,142,122 $ 1,967,202 $ 3,613,354 $ 2,691,906 $ 976,151 $ 656,197 $ 12,046,932 |
Reconciliation of the Reportable Segment Financial Information [Table Text Block] | The following table presents a reconciliation of the reportable segment financial information to the consolidated totals: Year Ended December 31, 2016 2015 2014 (In thousands) Net income: Total income for segments and other $ 231,385 $ 118,146 $ 193,190 Other non-interest income (loss) (1) - 13,443 (7,279) Other operating expenses (2) (101,126) (103,873) (94,273) Income before income taxes 130,259 27,716 91,638 Income tax (expense) benefit (37,030) (6,419) 300,649 Total consolidated net income $ 93,229 $ 21,297 $ 392,287 Average assets: Total average earning assets for segments $ 11,466,576 $ 11,862,290 $ 12,046,932 Other average earning assets (1) - - 1,943 Average non-earning assets 923,566 919,263 598,570 Total consolidated average assets $ 12,390,142 $ 12,781,553 $ 12,647,445 (1) The bargain purchase gain on the acquisition of assets and assumption of deposits from Doral Bank in 2015 as well as the activities related to FirstBank's equity interest in CPG/GS are presented as Other non-interest income (loss) and the investment in CPG/GS is presented as Other average earning assets in the tables above. (2) Expenses pertaining to corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment are not included in the reported financial results of the operating segments. The unallocated corporate expenses include certain general and administrative expenses and related depreciation and amortization expenses. |
Schedule of revenues and selected balance sheet data by geography [Table Text Block] | The following table presents revenues (interest income plus non-interest income) and selected balance sheet data by geography based on the location in which the transaction is originated: 2016 2015 2014 (In thousands) Revenues: Puerto Rico $ 568,180 $ 575,016 $ 588,744 United States 60,607 61,879 58,979 Virgin Islands 44,459 49,999 47,574 Total consolidated revenues $ 673,246 $ 686,894 $ 695,297 Selected Balance Sheet Information: Total assets: Puerto Rico $ 9,765,530 $ 10,648,179 $ 10,969,305 United States 1,499,548 1,202,318 1,072,962 Virgin Islands 657,377 722,522 685,568 Loans: Puerto Rico $ 6,926,719 $ 7,332,274 $ 7,544,845 United States 1,382,440 1,125,501 982,713 Virgin Islands 627,720 690,476 649,813 Deposits: Puerto Rico (1) $ 6,291,353 $ 6,747,638 $ 6,687,844 United States (2) 1,564,839 1,606,723 1,836,430 Virgin Islands 975,013 983,763 959,671 (1) For 2016, 2015, and 2014, includes $1.4 billion, $2.1 billion, and $2.9 billion, respectively, of brokered CDs allocated to Puerto Rico operations. (2) For 2016 includes $60.1 million of brokered CDs allocated to the United States operations. |
FIRST BANCORP. (Holding Compa72
FIRST BANCORP. (Holding Company Only) Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Statements of Financial Condition [Table Text Block] | Statements of Financial Condition As of December 31, 2016 2015 (In thousands) Assets Cash and due from banks $ 29,393 $ 29,103 Money market investments 6,111 6,111 Other investment securities 285 285 Loans held for investment, net 227 266 Investment in First Bank Puerto Rico, at equity 1,946,211 1,888,036 Investment in First Bank Insurance Agency, at equity 10,941 14,382 Investment in FBP Statutory Trust I 2,929 2,929 Investment in FBP Statutory Trust II 3,561 3,866 Other assets 3,791 4,632 Total assets $ 2,003,449 $ 1,949,610 Liabilities and Stockholders' Equity Liabilities: Other borrowings $ 216,187 $ 226,492 Accounts payable and other liabilities 1,019 28,984 Total liabilities 217,206 255,476 Stockholders' equity 1,786,243 1,694,134 Total liabilities and stockholders' equity $ 2,003,449 $ 1,949,610 |
Statements of Loss [Table Text Block] | Statements of Income Year Ended December 31, 2016 2015 2014 (In thousands) Income Interest income on money market investments $ 20 $ 20 $ 20 Dividend income from banking subsidiaries 34,876 - - Dividend income from non-banking subsidiaries 7,000 - - Other income 241 498 220 42,137 518 240 Expense Other borrowings 7,705 7,450 7,199 Other operating expenses 3,481 2,412 2,614 11,186 9,862 9,813 Loss on sale and impairment on equity securities - - (29) Gain on early extinguishment of debt 4,217 - - Income (loss) before income taxes and equity in undistributed earnings of subsidiaries 35,168 (9,344) (9,602) Equity in undistributed earnings of subsidiaries 58,061 30,641 401,889 Net Income $ 93,229 $ 21,297 $ 392,287 Other comprehensive (loss) income, net of tax (6,641) (9,398) 60,385 Comprehensive income $ 86,588 $ 11,899 $ 452,672 |
Statements of Cash Flow of holding company [Table Text Block] | Statements of Cash Flows Year Ended December 31, 2016 2015 2014 (In thousands) Cash flows from operating activities: Net income $ 93,229 $ 21,297 $ 392,287 Adjustments to reconcile net income to net cash used in operating activities: Stock-based compensation 3,563 2,835 1,962 Equity in undistributed earnings of subsidiaries (58,061) (30,641) (401,889) Loss on sales/impairment of investment securities - - 29 Gain on early extinguishment of debt (4,217) - - Accretion of discount on loans (11) (7) (3) Net decrease (increase) in other assets 802 (293) (260) Net (decrease) increase in other liabilities (26,685) 6,643 7,261 Net cash provided by (used in) operating activities 8,620 (166) (613) Cash flows from investing activities: Principal collected on loans 50 63 38 Proceeds from sales of available-for-sale securities - - 6 Net cash provided by investing activities 50 63 44 Cash flows from financing activities: Repurchase of common stock (1,132) (1,174) (946) Repayment of junior subordinated debentures (7,025) - - Dividends paid on preferred stock (223) - - Issuance costs of common stock issued in exchange for preferred stock Series A through E - - (62) Net cash used in financing activities (8,380) (1,174) (1,008) Net increase (decrease) in cash and cash equivalents 290 (1,277) (1,577) Cash and cash equivalents at beginning of the year 35,214 36,491 38,068 Cash and cash equivalents at end of year $ 35,504 $ 35,214 $ 36,491 Cash and cash equivalents include: Cash and due from banks $ 29,393 $ 29,103 $ 30,380 Money market instruments 6,111 6,111 6,111 $ 35,504 $ 35,214 $ 36,491 |
BASIS OF PRESENTATION AND SIG73
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 27, 2015 | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)subsidiaries | Dec. 31, 2015USD ($)subsidiaries | Dec. 31, 2012USD ($) | |
Nature Of Business [Line Items] | |||||
Period For Other Than Temporary Impairment | 1 year | ||||
Guaranteed Loans Past Due | 2 months 29 days | ||||
Period Of Residential Mortgage Loan That Are No Longer Accruing Interest | 1 year 3 months | 1 year 3 months | |||
Loans Considered To Be Defaulted If Borrower Has Failed To Make Payment For Period Or More Than Period | 2 months 29 days | 2 months 29 days | |||
Loans Past Due | 30 days | ||||
Resdiential Mortgage Loans Charge Off | 5 months 27 days | ||||
Modified Repurchase Agreements Threshold | 10.00% | ||||
Investment In Subsidiaries Other Real Estate Owned | subsidiaries | 2 | ||||
Wholy Owned Investments Subsidiaries | subsidiaries | 2 | ||||
Base Rate Historical Charge Offs Period | 1 year | ||||
Cummulative Charge Offs Period | 2 years | ||||
Troubled Debt Restructurings Sustained Performance Period | 6 months | ||||
Business Combination Finite Lived Intangible Assets Net | $ 4.4 | $ 5.1 | |||
Branches Doral | 10 | ||||
Wholy Owned Investments Subsidiaries FirstBank | subsidiaries | 6 | ||||
Business Combination Restrospective Adjustments Threshold | 1 year | ||||
Rewards liability | $ 7.1 | $ 9.6 | |||
Discount rate used for calculation of mortgage servicing rights value | 14.10% | 14.50% | |||
Loan Value Deliquency Threshold To Be Valued At Fair Value Percent | 60.00% | ||||
Financing receivable, individually evaluated for impairment | $ 1 | ||||
Financing Arrangements With Municipalities Threshold | 8 years | ||||
Customer Related Intangible Assets Member | |||||
Nature Of Business [Line Items] | |||||
Finite lived Intangible Assets Acquired 1 | $ 1.1 | ||||
Purchased Credit Card Relationship Intangible [Member] | |||||
Nature Of Business [Line Items] | |||||
Finite lived Intangible Assets Acquired 1 | $ 24.5 | ||||
Open End Loans [Member] | |||||
Nature Of Business [Line Items] | |||||
Consumer Loans Charge Off | 5 months 27 days | ||||
Consumer Auto Loans And Finance Leases [Member] | |||||
Nature Of Business [Line Items] | |||||
Consumer Loans Reserved | 3 months 28 days | ||||
Consumer Loans Charge Off | 1 year |
BASIS OF PRESENTATION AND SIG74
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Narratives (Detail) | Dec. 31, 2016offices |
P R | |
Nature Of Business [Line Items] | |
Offices | 48 |
V I | |
Nature Of Business [Line Items] | |
Offices | 11 |
U S | |
Nature Of Business [Line Items] | |
Offices | 11 |
Money Express Subsidiary [Member] | |
Nature Of Business [Line Items] | |
Offices | 28 |
BUSINESS COMBINATION- Business
BUSINESS COMBINATION- Business Combination (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets [Abstract] | ||||
Fair Value Of Assets Acquired | $ 540,339 | |||
Liabilities [Abstract] | ||||
Business Combination Bargain Purchase Gain Recognized Amount | 13,443 | $ 0 | $ 13,443 | $ 0 |
Deposits [Member] | ||||
Liabilities [Abstract] | ||||
Liabilities Assumed1 | 523,517 | 0 | 523,517 | 0 |
Other Liabilities [Member] | ||||
Liabilities [Abstract] | ||||
Liabilities Assumed1 | 3,379 | |||
Core Deposits [Member] | ||||
Assets [Abstract] | ||||
Fair Value Of Assets Acquired | 5,820 | 0 | 5,820 | 0 |
Property Plant And Equipment [Member] | ||||
Assets [Abstract] | ||||
Fair Value Of Assets Acquired | 5,450 | 0 | 5,450 | 0 |
Cash [Member] | ||||
Assets [Abstract] | ||||
Fair Value Of Assets Acquired | 217,659 | |||
Loans [Member] | ||||
Assets [Abstract] | ||||
Fair Value Of Assets Acquired | $ 311,410 | $ 0 | $ 311,410 | $ 0 |
BUSINESS COMBINATION - Business
BUSINESS COMBINATION - Business Combination (Parenthetical) (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 27, 2015 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||||
Business Combination Bargain Purchase After Tax Gain Recognized Amount | $ 8,200,000 | |||
Premium On Loans Acquired | 1,300,000 | |||
Liabilities Fair Value Adjustment | 800,000 | |||
Contractually outstanding principal and interest at acquisition | $ 218,100,000 | $ 207,300,000 | $ 135,500,000 | |
Discount On Purchased Credit Impaired Loans | 13,400,000 | |||
Purchased Credit Impaired Loans Acquired | $ 93,300,000 | |||
Branches Doral | 10 | |||
Non Sop Unpaid Principal Balance | $ 227,900,000 | |||
Conversion Costs [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination Acquisition Nonrecurring Costs | 4,600,000 | |||
Interim Servicing Costs [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination Acquisition Nonrecurring Costs | $ 3,600,000 | |||
Deposits [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financial Liabilities | 522,700,000 | |||
Property Plant And Equipment [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financial Assets | 5,500,000 | |||
Cash [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financial Assets | 217,700,000 | |||
Loans [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financial Assets | $ 324,800,000 |
RESTRICTIONS ON CASH AND DUE 77
RESTRICTIONS ON CASH AND DUE FROM BANKS (Narratives) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Average Weekly Demand Deposit Reserve | $ 276,200,000 | $ 251,700,000 |
Time Deposits [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Time deposits, which were considered restricted assets | $ 300,000 |
MONEY MARKET INVESTMENTS (Detai
MONEY MARKET INVESTMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Money Market Investments [Abstract] | |||
Time deposits with other financial institutions | $ 2,800 | $ 3,000 | |
Other short-term investments | 7,294 | 216,473 | |
Money Market Funds At Carrying Value | $ 10,094 | $ 219,473 | $ 16,961 |
Weighted average interest rate, time deposits | 0.95% | 0.92% | |
Weighted average interest rate, other short term investments | 0.30% | 0.34% |
MONEY MARKET INVESTMENTS - Addi
MONEY MARKET INVESTMENTS - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Money Market Investments [Abstract] | ||
Cash pledged as collateral | $ 0 | $ 8,800 |
INVESTMENT SECURITIES - Investm
INVESTMENT SECURITIES - Investment Securities (Narratives) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Proceeds From Sale Of Available For Sale Securities | $ 219,780 | $ 0 | $ 4,861 |
Gain on sale of investments, net | $ (6,104) | $ 0 | $ (262) |
INVESTMENT SECURITIES - Inves81
INVESTMENT SECURITIES - Investment Securities Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 1,908,557 | $ 1,906,391 | |
Noncredit Loss Component of OTTI Recorded in OCI | 22,372 | 29,608 | |
Gross unrealized gain | 16,487 | 23,904 | |
Gross unrealized loss | 20,752 | 14,292 | |
Fair Value | $ 1,881,920 | $ 1,886,395 | |
Weighted average yield | 2.14% | 2.38% | |
Puerto Rico Government Obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 42,700 | ||
United States And Puerto Rico Government Obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 551,700 | $ 514,307 | |
Noncredit Loss Component of OTTI Recorded in OCI | 14,250 | 19,917 | |
Gross unrealized gain | 233 | 655 | |
Gross unrealized loss | 4,996 | 6,270 | |
Fair Value | $ 532,687 | $ 488,775 | |
Weighted average yield | 1.29% | 1.75% | |
Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 1,356,342 | $ 1,391,984 | |
Noncredit Loss Component of OTTI Recorded in OCI | 8,122 | 9,691 | |
Gross unrealized gain | 16,254 | 23,249 | |
Gross unrealized loss | 15,749 | 8,022 | |
Fair Value | $ 1,348,725 | $ 1,397,520 | |
Weighted average yield | 2.49% | 2.61% | |
Federal Home Loan Mortgage Corporation Certificates And Obligations F H L M C [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 399,955 | $ 323,437 | |
Fair Value | 394,249 | 322,772 | |
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 | 320,814 | 288,047 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 333 | 1,104 | |
Gross unrealized loss | 5,827 | 1,706 | |
Fair Value | $ 315,320 | $ 287,445 | |
Weighted average yield | 2.17% | 2.15% | |
Government National Mortgage Association Certificates And Obligations G N M A [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 254,495 | $ 285,584 | |
Fair Value | 265,615 | 301,573 | |
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 | 215,375 | 285,584 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 11,344 | 16,009 | |
Gross unrealized loss | 92 | 20 | |
Fair Value | $ 226,627 | $ 301,573 | |
Weighted average yield | 3.81% | 3.83% | |
Federal National Mortgage Association Certificates And Obligations F N M A [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 849,584 | $ 954,178 | |
Fair Value | 843,818 | 953,866 | |
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 | 732,367 | 783,356 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 4,573 | 6,135 | |
Gross unrealized loss | 9,667 | 6,296 | |
Fair Value | $ 727,273 | $ 783,195 | |
Weighted average yield | 2.33% | 2.35% | |
Collateralized Mortgage Obligations [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 58,971 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 4 | ||
Gross unrealized loss | 163 | ||
Fair Value | $ 58,812 | ||
Weighted average yield | 1.43% | ||
Mortgage Backed Securities Issued By Private Enterprises [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 28,815 | $ 34,997 | |
Noncredit Loss Component of OTTI Recorded in OCI | 8,122 | 9,691 | |
Gross unrealized gain | 0 | 1 | |
Gross unrealized loss | 0 | 0 | |
Fair Value | $ 20,693 | $ 25,307 | |
Weighted average yield | 2.40% | 2.26% | |
Due Within One Year [Member] | U S Treasury Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 7,508 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 1 | ||
Gross unrealized loss | 0 | ||
Fair Value | $ 7,509 | ||
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 | $ 14,624 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 4 | ||
Gross unrealized loss | 10 | ||
Fair Value | $ 14,618 | ||
Weighted average yield | 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 | $ 2 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 0 | ||
Gross unrealized loss | 0 | ||
Fair Value | $ 2 | ||
Weighted average yield | 1.70% | ||
Due Within One Year [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 | $ 152 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 2 | ||
Gross unrealized loss | 0 | ||
Fair Value | $ 154 | ||
Weighted average yield | 4.71% | ||
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 | $ 440,438 | $ 384,323 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 142 | 174 | |
Gross unrealized loss | 2,912 | 4,305 | |
Fair Value | $ 437,668 | $ 380,192 | |
Weighted average yield | 1.33% | 1.32% | |
After One To Five Years [Member] | Puerto Rico Government Obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 21,422 | $ 25,663 | |
Noncredit Loss Component of OTTI Recorded in OCI | 12,222 | 14,662 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 0 | 0 | |
Fair Value | $ 9,200 | $ 11,001 | |
Weighted average yield | 0.00% | 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 | $ 83 | $ 109 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 3 | 5 | |
Gross unrealized loss | 0 | 0 | |
Fair Value | $ 86 | $ 114 | |
Weighted average yield | 3.82% | 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 | $ 24,409 | $ 2,552 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 435 | 74 | |
Gross unrealized loss | 0 | 0 | |
Fair Value | $ 24,844 | $ 2,626 | |
Weighted average yield | 2.18% | 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 | $ 16,942 | $ 58,150 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 9 | 343 | |
Gross unrealized loss | 256 | 242 | |
Fair Value | $ 16,695 | $ 58,251 | |
Weighted average yield | 1.91% | 2.34% | |
After Five To Ten Years [Member] | Puerto Rico Government Obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 855 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 0 | ||
Gross unrealized loss | 0 | ||
Fair Value | $ 855 | ||
Weighted average yield | 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 | $ 5,908 | $ 336 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 72 | 31 | |
Gross unrealized loss | 0 | 0 | |
Fair Value | $ 5,980 | $ 367 | |
Weighted average yield | 2.25% | 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 | $ 91,744 | $ 120,298 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 1,635 | 3,182 | |
Gross unrealized loss | 92 | 0 | |
Fair Value | $ 93,287 | $ 123,480 | |
Weighted average yield | 3.06% | 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 | $ 17,181 | $ 21,557 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 0 | 433 | |
Gross unrealized loss | 261 | 233 | |
Fair Value | $ 16,920 | $ 21,757 | |
Weighted average yield | 1.87% | 2.73% | |
After Five To Ten Years [Member] | Collateralized Mortgage Obligations [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 19,851 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 4 | ||
Gross unrealized loss | 31 | ||
Fair Value | $ 19,824 | ||
Weighted average yield | 1.42% | ||
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 | $ 92 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 1 | ||
Gross unrealized loss | 0 | ||
Fair Value | $ 93 | ||
Weighted average yield | 7.26% | ||
After Ten Years [Member] | US Government Sponsored Enterprises Debt Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 44,145 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 8 | ||
Gross unrealized loss | 166 | ||
Fair Value | $ 43,987 | ||
Weighted average yield | 1.12% | ||
After Ten Years [Member] | Puerto Rico Government Obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 21,245 | $ 23,162 | |
Noncredit Loss Component of OTTI Recorded in OCI | 2,028 | 5,255 | |
Gross unrealized gain | 73 | 134 | |
Gross unrealized loss | 1,662 | 1,680 | |
Fair Value | $ 17,628 | $ 16,361 | |
Weighted average yield | 1.86% | 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 | $ 314,906 | $ 287,711 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 261 | 1,073 | |
Gross unrealized loss | 5,827 | 1,706 | |
Fair Value | $ 309,340 | $ 287,078 | |
Weighted average yield | 2.17% | 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 | $ 123,548 | $ 165,175 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 9,706 | 12,822 | |
Gross unrealized loss | 0 | 20 | |
Fair Value | $ 133,254 | $ 177,977 | |
Weighted average yield | 4.36% | 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 | $ 690,625 | $ 759,247 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 4,136 | 5,628 | |
Gross unrealized loss | 9,406 | 6,063 | |
Fair Value | $ 685,355 | $ 758,812 | |
Weighted average yield | 2.35% | 2.34% | |
After Ten Years [Member] | Collateralized Mortgage Obligations [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 39,120 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 0 | ||
Gross unrealized loss | 132 | ||
Fair Value | $ 38,988 | ||
Weighted average yield | 1.44% | ||
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 | $ 28,815 | $ 34,905 | |
Noncredit Loss Component of OTTI Recorded in OCI | 8,122 | 9,691 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 0 | 0 | |
Fair Value | $ 20,693 | $ 25,214 | |
Weighted average yield | 2.40% | 2.26% | |
Equity Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | [1] | $ 415 | |
Noncredit Loss Component of OTTI Recorded in OCI | [1] | 0 | |
Gross unrealized gain | [1] | 0 | |
Gross unrealized loss | [1] | 7 | |
Fair Value | [1] | $ 408 | |
Weighted average yield | [1] | 2.44% | |
[1] | (1) Equity securities consisted of investment in a Community Reinvestment Act Qualified Investment Fund. |
INVESTMENT SECURITIES - Aggrega
INVESTMENT SECURITIES - Aggregate amortized cost and approximate market value of investment securities available for sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Within 1 year, Amortized cost | $ 7,660 | |
After 1 to 5 years, Amortized cost | 486,452 | |
After 5 to 10 years, Amortized cost | 151,626 | |
After 10 years, Amortized cost | 1,262,404 | |
Available For Sale Debt Securities Amortized Cost Basis | 1,908,142 | |
Equity securities, Amortized cost | 415 | |
Total investment securities available for sale, Amortized cost | 1,908,557 | $ 1,906,391 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Within 1 year, Fair Value | 7,663 | |
After 1 to 5 years, Fair Value | 471,898 | |
After 5 to 10 years, Fair Value | 152,706 | |
After 10 years, Fair Value | 1,249,245 | |
Total, Fair Value | 1,881,512 | |
Equity Securities, Fair Value | 408 | |
Total investment securities available for sale | $ 1,881,920 | $ 1,886,395 |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional Information (Detail) - USD ($) | Aug. 01, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Investments [Line Items] | ||||||||
Proceeds from sale of available-for-sale securities | $ 219,780,000 | $ 0 | $ 4,861,000 | |||||
Percentage Of Debt Securities Government And Government Sponsored Agencies | 97.00% | |||||||
Amortized cost of private label of mortgage backed security | $ 1,908,142,000 | |||||||
Maximum loan to value ratio | 80.00% | |||||||
Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities | $ 390,286,000 | 296,950,000 | 233,046,000 | |||||
Fair Value | $ 1,886,395,000 | 1,881,920,000 | 1,886,395,000 | |||||
Amortized cost | $ 1,906,391,000 | $ 1,908,557,000 | $ 1,906,391,000 | |||||
Weighted average yield | 2.38% | 2.14% | 2.38% | |||||
Net gain on sale of investments | $ 6,104,000 | $ 0 | 262,000 | |||||
Interest Receivable | $ 48,697,000 | 45,453,000 | 48,697,000 | |||||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net | [1] | $ 6,687,000 | 16,517,000 | $ 388,000 | ||||
Percentage Of Held To Maturity Securities | 87.00% | |||||||
Percentage Of Stockholders Equity Exceeded By Securities Issuers | 10.00% | |||||||
Puerto Rico Government Development Bank Interest Payment Default | $ 28,000,000 | |||||||
Maximum [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Recovery Rate | 80.00% | |||||||
Minimum [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Recovery Rate | 35.00% | |||||||
Weighted Average [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Recovery Rate | 61.00% | |||||||
U S Treasury Securities [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Proceeds from sale of available-for-sale securities | $ 15,000,000 | |||||||
Net gain on sale of investments | 8,000 | |||||||
Mortgage Backed Securities Issued By Private Enterprises [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Credit related impairment loss is related to Private label MBS | 400,000 | |||||||
Amortized cost | 28,800,000 | |||||||
Puerto Rico Government obligations [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Amortized cost | 42,700,000 | |||||||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net | $ 6,300,000 | 3,000,000 | $ 12,900,000 | |||||
Puerto Rico Government obligations [Member] | Puerto Rico Government Debt Securities Other Than Temporary Impairment [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Fair Value | 20,500,000 | |||||||
Amortized cost | $ 35,600,000 | |||||||
Default Rate | 100.00% | |||||||
Puerto Rico Government obligations [Member] | Puerto Rico Buildings Authority [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Fair Value | $ 11,300,000 | |||||||
Amortized cost | 13,300,000 | |||||||
Puerto Rico Government obligations [Member] | Puerto Rico Government Development Bank [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Fair Value | 9,200,000 | |||||||
Amortized cost | 22,300,000 | |||||||
Interest Receivable | 900,000 | |||||||
Mortgage Backed Securities [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Proceeds from sale of available-for-sale securities | 204,800,000 | |||||||
Fair Value | 1,397,520,000 | 1,348,725,000 | 1,397,520,000 | |||||
Amortized cost | $ 1,391,984,000 | $ 1,356,342,000 | $ 1,391,984,000 | |||||
Weighted average yield | 2.61% | 2.49% | 2.61% | |||||
Net gain on sale of investments | $ 6,100,000 | |||||||
Mortgage Backed Securities [Member] | Collateralized Mortgage Obligations [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Fair Value | 58,812,000 | |||||||
Amortized cost | $ 58,971,000 | |||||||
Weighted average yield | 1.43% | |||||||
[1] | (1) For the years ended December 31, 2016 and 2015, approximately $6.3 million and $15.9 million, respectively, of the credit impairment recognized in earnings consisted of credit losses on Puerto Rico government debt securities. The remaining impairment losses were associated with credit losses on private label MBS. |
INVESTMENT SECURITIES - Parenth
INVESTMENT SECURITIES - Parenthetical (Detail) | Dec. 31, 2016minimumcreditscore |
Disclosure Investment Securities Additional Information [Abstract] | |
Minimum Credit Score | 700 |
INVESTMENT SECURITIES - Availab
INVESTMENT SECURITIES - Available-For-Sale Investments' Fair Value And Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | $ 1,331,998 | $ 778,485 |
Unrealized losses less than 12 months | 19,090 | 6,803 |
Fair Value 12 months or more | 43,302 | 366,045 |
Unrealized losses 12 months or more | 24,034 | 37,097 |
Total Fair Value | 1,375,300 | 1,144,530 |
Total unrealized losses | 43,124 | 43,900 |
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 | 22,609 | 23,008 |
Unrealized losses 12 months or more | 15,912 | 21,597 |
Total Fair Value | 22,609 | 23,008 |
Total unrealized losses | 15,912 | 21,597 |
Debt Securities [Member] | US States And Political Subdivisions [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 469,046 | 198,243 |
Unrealized losses less than 12 months | 3,334 | 929 |
Fair Value 12 months or more | 0 | 210,504 |
Unrealized losses 12 months or more | 0 | 3,661 |
Total Fair Value | 469,046 | 408,747 |
Total unrealized losses | 3,334 | 4,590 |
Debt Securities [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 408 | |
Unrealized losses less than 12 months | 7 | |
Fair Value 12 months or more | 0 | |
Unrealized losses 12 months or more | 0 | |
Total Fair Value | 408 | |
Total unrealized losses | 7 | |
Mortgage Backed Securities [Member] | Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 55,309 | |
Unrealized losses less than 12 months | 163 | |
Fair Value 12 months or more | 0 | |
Unrealized losses 12 months or more | 0 | |
Total Fair Value | 55,309 | |
Total unrealized losses | 163 | |
Mortgage Backed Securities [Member] | Mortgage Backed Securities Issued By Private Enterprises [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value Less than 12 months | 0 | 0 |
Unrealized losses less than 12 months | 0 | 0 |
Fair Value 12 months or more | 20,693 | 25,214 |
Unrealized losses 12 months or more | 8,122 | 9,691 |
Total Fair Value | 20,693 | 25,214 |
Total unrealized losses | 8,122 | 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 | 43,388 | 1,047 |
Unrealized losses less than 12 months | 92 | 20 |
Fair Value 12 months or more | 0 | 0 |
Unrealized losses 12 months or more | 0 | 0 |
Total Fair Value | 43,388 | 1,047 |
Total unrealized losses | 92 | 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 | 519,008 | 437,305 |
Unrealized losses less than 12 months | 9,667 | 4,516 |
Fair Value 12 months or more | 0 | 88,013 |
Unrealized losses 12 months or more | 0 | 1,780 |
Total Fair Value | 519,008 | 525,318 |
Total unrealized losses | 9,667 | 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 | 244,839 | 141,890 |
Unrealized losses less than 12 months | 5,827 | 1,338 |
Fair Value 12 months or more | 0 | 19,306 |
Unrealized losses 12 months or more | 0 | 368 |
Total Fair Value | 244,839 | 161,196 |
Total unrealized losses | $ 5,827 | $ 1,706 |
INVESTMENT SECURITIES - OTTI Lo
INVESTMENT SECURITIES - OTTI Losses on Available-for-Sale Debt Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule Of Available For Sale Securities [Line Items] | ||||
Total other-than-temporary impairment losses | $ (1,845) | $ (35,806) | $ 0 | |
Credit losses on debt securities for which an OTTI was no previously recognized | 0 | 15,889 | ||
Portion of loss previously recognized in other comprehensive income | 0 | 0 | 0 | |
Other Than Temporary Impairment Not Credit Losses Recognized In Earnings Additions No Previous Impairment | (4,842) | 19,289 | (388) | |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net | [1] | $ (6,687) | $ (16,517) | $ (388) |
[1] | (1) For the years ended December 31, 2016 and 2015, approximately $6.3 million and $15.9 million, respectively, of the credit impairment recognized in earnings consisted of credit losses on Puerto Rico government debt securities. The remaining impairment losses were associated with credit losses on private label MBS. |
INVESTMENT SECURITIES - Roll-Fo
INVESTMENT SECURITIES - Roll-Forward of Credit Losses on Debt Securities Held by Corporation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items] | |||
Credit losses at beginning of the period | $ 22,294 | $ 5,777 | |
Additions: | |||
Credit losses on debt securities for which an OTTI was no previously recognized | 0 | 15,889 | |
Credit losses on debt securities for which an OTTI was previously recognized | 6,687 | 628 | |
Reductions: | |||
Ending balance of credit losses | 28,981 | 22,294 | $ 5,777 |
Puerto Rico Government Obligations [Member] | |||
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items] | |||
Credit losses at beginning of the period | 15,889 | 0 | |
Additions: | |||
Credit losses on debt securities for which an OTTI was no previously recognized | 0 | 15,889 | |
Credit losses on debt securities for which an OTTI was previously recognized | 6,300 | 0 | |
Reductions: | |||
Ending balance of credit losses | 22,189 | 15,889 | 0 |
Mortgage Backed Securities Issued By Private Enterprises [Member] | |||
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items] | |||
Credit losses at beginning of the period | 6,405 | 5,777 | 5,389 |
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 | 387 | 628 | 388 |
Reductions: | |||
Ending balance of credit losses | $ 6,792 | $ 6,405 | $ 5,777 |
INVESTMENT SECURITIES - Signifi
INVESTMENT SECURITIES - Significant Assumptions in Valuation of Private Label MBS (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Investments [Line Items] | ||
Fair Value Inputs Discount Rate | 14.10% | 14.50% |
Fair Value Inputs Prepayment Rate | 13.80% | 25.00% |
Weighted Average, Projected Cumulative Loss Rate | 4.00% | 4.00% |
Minimum [Member] | ||
Schedule Of Investments [Line Items] | ||
Fair Value Inputs Discount Rate | 12.88% | |
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 | 14.43% | |
Fair Value Inputs Prepayment Rate | 22.50% | 31.25% |
Weighted Average, Projected Cumulative Loss Rate | 8.60% | 6.66% |
INVESTMENT SECURITIES - Aggre89
INVESTMENT SECURITIES - Aggregate amortized cost and market value of the securities by issuers (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Available-For-Sale And Held-To-Maturity Securities [Line Items] | ||
Amortized cost | $ 1,908,557 | $ 1,906,391 |
Fair Value | 1,881,920 | 1,886,395 |
Federal Home Loan Mortgage Corporation Certificates And Obligations F H L M C [Member] | ||
Schedule Of Available-For-Sale And Held-To-Maturity Securities [Line Items] | ||
Amortized cost | 399,955 | 323,437 |
Fair Value | 394,249 | 322,772 |
Government National Mortgage Association Certificates And Obligations G N M A [Member] | ||
Schedule Of Available-For-Sale And Held-To-Maturity Securities [Line Items] | ||
Amortized cost | 254,495 | 285,584 |
Fair Value | 265,615 | 301,573 |
Federal National Mortgage Association Certificates And Obligations F N M A [Member] | ||
Schedule Of Available-For-Sale And Held-To-Maturity Securities [Line Items] | ||
Amortized cost | 849,584 | 954,178 |
Fair Value | 843,818 | 953,866 |
FHLB [Member] | ||
Schedule Of Available-For-Sale And Held-To-Maturity Securities [Line Items] | ||
Amortized cost | 231,666 | 223,049 |
Fair Value | $ 229,792 | $ 219,320 |
INVESTMENT SECURITIES - Inves90
INVESTMENT SECURITIES - Investment Securities Held to Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 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 | 132,759 | 131,544 |
US States And Political Subdivisions [Member] | Puerto Rico [Member] | ||
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 | 23,431 | 29,939 |
Held To Maturity Securities Fair Value | $ 132,759 | $ 131,544 |
Held To Maturity Securities Debt Maturities Average Yield | 4.73% | 4.62% |
US States And Political Subdivisions [Member] | After One To Five Years [Member] | Puerto Rico [Member] | ||
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 | 20 | 37 |
Held To Maturity Securities Fair Value | $ 1,116 | $ 1,334 |
Held To Maturity Securities Debt Maturities Average Yield | 5.38% | 5.38% |
US States And Political Subdivisions [Member] | After Five To Ten Years [Member] | Puerto Rico [Member] | ||
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 | 718 | 1,041 |
Held To Maturity Securities Fair Value | $ 10,023 | $ 10,482 |
Held To Maturity Securities Debt Maturities Average Yield | 4.47% | 4.25% |
US States And Political Subdivisions [Member] | After Ten Years [Member] | Puerto Rico [Member] | ||
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 | 22,693 | 28,861 |
Held To Maturity Securities Fair Value | $ 121,620 | $ 119,728 |
Held To Maturity Securities Debt Maturities Average Yield | 4.74% | 4.64% |
INVESTMENT SECURITIES - Inves91
INVESTMENT SECURITIES - Investment Securities Held to Maturity (Securities in continous unrealized loss position) (Detail) - Nontaxable Municipal Bonds [Member] - Puerto Rico [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Held To Maturity Securities [Line Items] | ||
Fair value less than 12 months | $ 0 | $ 4,163 |
Unrealized losses less than 12 months | 0 | 140 |
Fair value 12 months or more | 132,759 | 127,381 |
Unrealized losses 12 months or more | 23,431 | 29,799 |
Total fair value | 132,759 | 131,544 |
Total unrealized losses | $ 23,431 | $ 29,939 |
OTHER EQUITY SECURITIES - Addit
OTHER EQUITY SECURITIES - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Other Assets [Line Items] | |||
Capital stock par value | $ 100 | ||
Book value of investment in FHLB stock | $ 40,800 | $ 31,300 | |
Dividend income from FHLB stock | 1,500 | 1,100 | $ 1,200 |
Carrying value of other equity security | 2,200 | 900 | |
Gain Loss On Sale Of Securities Net | $ 6,104 | $ 0 | $ 262 |
INTEREST AND DIVIDEND ON INVE93
INTEREST AND DIVIDEND ON INVESTMENTS- Interest on investments and FHLB dividend income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income And Expenses [Line Items] | |||
Mortgage-backed securities | $ 32,167 | $ 37,299 | $ 44,909 |
PR Government obligations, U.S. Treasury securities and U.S. Government agencies | 17,276 | 16,476 | 14,294 |
Total Intesrest income investment securities | 50,905 | 54,850 | 60,372 |
Interest on money market investments | 3,365 | 2,148 | 1,892 |
Total interest and dividends on investments | 54,270 | 56,998 | 62,264 |
Taxable [Member] | |||
Other Income And Expenses [Line Items] | |||
Mortgage-backed securities | 11,246 | 13,520 | 16,303 |
PR Government obligations, U.S. Treasury securities and U.S. Government agencies | 4,131 | 2,628 | 1,357 |
Other investment securities (including FHLB dividends) | 1,462 | 1,075 | 1,169 |
Interest on money market investments | 2,669 | 1,490 | 1,734 |
Exempt [Member] | |||
Other Income And Expenses [Line Items] | |||
Mortgage-backed securities | 20,921 | 23,779 | 28,606 |
PR Government obligations, U.S. Treasury securities and U.S. Government agencies | 13,145 | 13,848 | 12,937 |
Interest on money market investments | $ 696 | $ 658 | $ 158 |
INTEREST AND DIVIDEND ON INVE94
INTEREST AND DIVIDEND ON INVESTMENTS- Components of interest and dividend income on investments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of interest and dividend income on investments [Abstract] | |||
Interest income on investment securities and money market investments | $ 52,816 | $ 55,923 | $ 61,095 |
Dividends on FHLB stock | 1,454 | 1,075 | 1,169 |
Total interest and dividends on investments | $ 54,270 | $ 56,998 | $ 62,264 |
LOAN PORTFOLIO - Narratives (De
LOAN PORTFOLIO - Narratives (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Additional interest income that would have realized | $ 43.2 | $ 37.8 | $ 48.9 |
Mortgages pledged as collateral | 2,000 | 2,000 | |
Origination Fees [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans And Leases Receivable Deferred Income | 4.8 | 6.5 | |
Unearned Income [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans And Leases Receivable Deferred Income | 32.8 | 32.9 | |
Residential Mortgage [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Servicing of loans | 2,700 | 2,400 | |
Construction And Commercial Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Servicing of loans | 0.1 | 0.1 | |
Commercial loan [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Servicing of loans | $ 401.4 | $ 364.9 |
LOAN PORTFOLIO - Loan Portfolio
LOAN PORTFOLIO - Loan Portfolio Held for Investment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial Information [Line Items] | |||
Loans and leases receivable gross carrying value | $ 8,886,873 | $ 9,112,382 | |
Less: allowance for loan and lease losses | (205,603) | (240,710) | |
Loans held for investment, net | 8,681,270 | 8,871,672 | |
Residential Mortgage [Member] | |||
Financial Information [Line Items] | |||
Loans and leases receivable gross carrying value | 3,296,031 | 3,344,719 | |
Commercial Real Estate Portfolio Segment [Member] | |||
Financial Information [Line Items] | |||
Loans and leases receivable gross carrying value | 1,568,808 | 1,537,806 | |
Commercial And Industrial Sector [Member] | |||
Financial Information [Line Items] | |||
Loans and leases receivable gross carrying value | [1] | 2,180,455 | 2,246,513 |
Commercial Portfolio Segment [Member] | |||
Financial Information [Line Items] | |||
Loans and leases receivable gross carrying value | 3,874,214 | 3,940,514 | |
Finance Leases [Member] | |||
Financial Information [Line Items] | |||
Loans and leases receivable gross carrying value | 233,335 | 229,165 | |
Other Consumer Loans [Member] | |||
Financial Information [Line Items] | |||
Loans and leases receivable gross carrying value | 1,483,293 | 1,597,984 | |
Construction Loans [Member] | |||
Financial Information [Line Items] | |||
Loans and leases receivable gross carrying value | $ 124,951 | $ 156,195 | |
[1] | As of December 31, 2016 and 2015, includes $853.9 million and $973.2 million, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. |
LOAN PORTFOLIO - Loan Portfol97
LOAN PORTFOLIO - Loan Portfolio Held for Investment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Financial Information [Line Items] | |||
Classified And Non Performing Loans Sold | $ 16.3 | $ 147.5 | |
Commercial Loans Collaterized By Real Estate | $ 853.9 | $ 973.2 |
LOAN PORTFOLIO - Loans Held for
LOAN PORTFOLIO - Loans Held for Investment on Which Accrual of Interest Income had been Discontinued (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-performing loans: | |||
Total non-performing loans held for investment | [1],[2],[3] | $ 560,094 | $ 442,773 |
Residential Mortgage [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 160,867 | 169,001 | |
Commercial Mortgage [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 178,696 | 51,333 | |
Commercial And Industrial [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 146,599 | 137,051 | |
Consumer Auto Loans [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 14,346 | 17,435 | |
Finance Leases [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 1,335 | 2,459 | |
Consumer Loan [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 8,399 | 10,858 | |
Commercial Construction [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 36,893 | 39,466 | |
Residential Construction [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | 1,933 | 2,996 | |
Land Construction [Member] | |||
Non-performing loans: | |||
Total non-performing loans held for investment | $ 11,026 | $ 12,174 | |
[1] | Amount excludes PCI loans with a carrying value of approximately $165.8 million and $173.9 million as of December 31, 2016 and 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 December 31, 2016 and December 31, 2015, excludes $8.1 million of non-performing loans held for sale. | ||
[3] | Non-performing loans exclude $384.9 million and $414.9 million of TDR loans that are in compliance with the modified terms and in accrual status as of December 31, 2016 and 2015, respectively. |
LOAN PORTFOLIO - Loans Held f99
LOAN PORTFOLIO - Loans Held for Investment on Which Accrual of Interest Income had been Discontinued (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | $ 50,006 | $ 35,869 |
Nonperforming Financing Receivable [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 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | $ 881,954 | $ 841,188 | |||
Certain Loans Acquired In Transfer Accounted For As Debt Securities Carrying Amount | 165,818 | [1] | 173,913 | [2] | $ 102,604 |
Financing Receivable, Current | 7,839,101 | 8,097,281 | |||
Loans held for investment | 8,886,873 | 9,112,382 | |||
90 days past due and still accruing | 106,809 | 139,987 | |||
Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 86,726 | 93,539 | |||
Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 128,325 | 164,889 | |||
Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 666,903 | [3] | 582,760 | ||
Fha Va And Other Government Guaranteed Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 82,231 | [4],[5],[6] | 96,216 | [7],[8],[9] | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Carrying Amount | 0 | [4],[5],[6] | 0 | ||
Financing Receivable, Current | 44,627 | [4],[5],[6] | 46,925 | [7],[8],[9] | |
Loans held for investment | 126,858 | [4],[5],[6] | 143,141 | [7],[8],[9] | |
90 days past due and still accruing | 77,052 | [4],[5],[6] | 90,168 | [7],[8],[9] | |
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 | [4],[5],[6] | 0 | [7],[8],[9] | |
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 | 5,179 | [4],[5],[6] | 6,048 | [7],[8],[9] | |
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 | 77,052 | [3],[4],[5],[6] | 90,168 | [7],[8],[9],[10] | |
Residential Mortgage [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Certain Loans Acquired In Transfer Accounted For As Debt Securities Carrying Amount | 162,676 | 170,766 | |||
Loans held for investment | 3,296,031 | 3,344,719 | |||
Commercial And Industrial [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 169,886 | 162,882 | |||
Certain Loans Acquired In Transfer Accounted For As Debt Securities Carrying Amount | 0 | 0 | |||
Financing Receivable, Current | 2,010,569 | 2,083,631 | |||
Loans held for investment | 2,180,455 | 2,246,513 | |||
90 days past due and still accruing | 5,368 | 13,842 | |||
Commercial And Industrial [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 14,195 | 5,577 | |||
Commercial And Industrial [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 3,724 | 6,412 | |||
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 | 151,967 | [3] | 150,893 | ||
Commercial Mortgage Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 186,511 | [4] | 88,534 | [7] | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Carrying Amount | 3,142 | [4] | 3,147 | [7] | |
Financing Receivable, Current | 1,379,155 | [4] | 1,446,125 | [7] | |
Loans held for investment | 1,568,808 | [4] | 1,537,806 | [7] | |
90 days past due and still accruing | 3,281 | [4] | 12,472 | [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 | [4] | 0 | [7] | |
Commercial Mortgage Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 4,534 | [4] | 24,729 | [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 | 181,977 | [3],[4] | 63,805 | [7],[10] | |
Construction Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for investment | 124,951 | 156,195 | |||
Consumer Auto Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 85,011 | 105,058 | |||
Certain Loans Acquired In Transfer Accounted For As Debt Securities Carrying Amount | 0 | 0 | |||
Financing Receivable, Current | 762,947 | 829,922 | |||
Loans held for investment | 847,958 | 934,980 | |||
90 days past due and still accruing | 0 | 0 | |||
Consumer Auto Loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 57,142 | 70,836 | |||
Consumer Auto Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 13,523 | 16,787 | |||
Consumer Auto Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 14,346 | [3] | 17,435 | ||
Finance Leases [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 10,720 | 13,223 | |||
Certain Loans Acquired In Transfer Accounted For As Debt Securities Carrying Amount | 0 | 0 | |||
Financing Receivable, Current | 222,615 | 215,942 | |||
Loans held for investment | 233,335 | 229,165 | |||
90 days past due and still accruing | 0 | 0 | |||
Finance Leases [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 7,714 | 7,664 | |||
Finance Leases [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 1,671 | 3,100 | |||
Finance Leases [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 1,335 | [3] | 2,459 | ||
Consumer Loan [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 25,257 | 30,110 | |||
Certain Loans Acquired In Transfer Accounted For As Debt Securities Carrying Amount | 0 | 0 | |||
Financing Receivable, Current | 610,078 | 632,894 | |||
Loans held for investment | 635,335 | 663,004 | |||
90 days past due and still accruing | 3,929 | 4,266 | |||
Consumer Loan [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 7,675 | 9,462 | |||
Consumer Loan [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 5,254 | 5,524 | |||
Consumer Loan [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 12,328 | [3] | 15,124 | ||
Commercial Construction [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 36,893 | 51,188 | |||
Certain Loans Acquired In Transfer Accounted For As Debt Securities Carrying Amount | 0 | 0 | |||
Financing Receivable, Current | 40,582 | 32,142 | |||
Loans held for investment | 77,475 | 83,330 | |||
90 days past due and still accruing | 0 | 0 | |||
Commercial Construction [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | 0 | |||
Commercial Construction [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | 11,722 | |||
Commercial Construction [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 36,893 | [3] | 39,466 | ||
Residential Construction [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 1,933 | [4] | 6,042 | [7] | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Carrying Amount | 0 | 0 | |||
Financing Receivable, Current | 13,777 | [4] | 14,949 | [7] | |
Loans held for investment | 15,710 | [4] | 20,991 | [7] | |
90 days past due and still accruing | 0 | [4] | 3,046 | [7] | |
Residential Construction [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | [4] | 0 | [7] | |
Residential Construction [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | [4] | 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 | 1,933 | [3],[4] | 6,042 | [7],[10] | |
Land Construction [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 11,940 | [4] | 12,511 | [7] | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Carrying Amount | 0 | 0 | |||
Financing Receivable, Current | 19,826 | [4] | 39,363 | [7] | |
Loans held for investment | 31,766 | [4] | 51,874 | [7] | |
90 days past due and still accruing | 478 | [4] | 176 | [7] | |
Land Construction [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | [4] | 0 | [7] | |
Land Construction [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 436 | [4] | 161 | [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 | 11,504 | [3],[4] | 12,350 | [7],[10] | |
Other Residential Mortgage Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 271,572 | [4] | 275,424 | [7] | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Carrying Amount | 162,676 | [4] | 170,766 | ||
Financing Receivable, Current | 2,734,925 | [4] | 2,755,388 | [7] | |
Loans held for investment | 3,169,173 | [4] | 3,201,578 | [7] | |
90 days past due and still accruing | 16,701 | [4] | 16,017 | [7] | |
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 | [4] | 0 | [7] | |
Other Residential Mortgage Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 94,004 | [4] | 90,406 | [7] | |
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 | $ 177,568 | [3],[4] | $ 185,018 | [7],[10] | |
[1] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage and commercial mortgage loans are considered past due when the borrower is in arrears two or more monthly payments. PCI residential mortgage loans and commercial mortgage loans past due 30-59 days as of December 31, 2016 amounted to $22.3 million and $0.1 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 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. | ||||
[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] | 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 and other 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, 2016 amounted to $9.9 million, $142.8 million, $4.6 million, $0.7 million, and $0.4 million, respectively. | ||||
[5] | As of December 31, 2016, includes $43.7 million of defaulted loans collateralizing GNMA securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans. | ||||
[6] | 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 $29.3 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, 2016. | ||||
[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 and other 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. | ||||
[9] | 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. | ||||
[10] | 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. |
LOAN PORTFOLIO - Corporation101
LOAN PORTFOLIO - Corporation's Aging of Loans Held for Investment Portfolio (Parenthetical) (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)numberofpayments | Dec. 31, 2015USD ($)numberofpayments | |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans considered to be defaulted if borrower has failed to make payment for a period or more than the period | 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 | $ 43.7 | $ 38.5 |
Minimum Number of Payments in Arrears to Consider Commercial Mortgage and Construction Loan as Past Due | numberofpayments | 2 | 2 |
Residential mortgage loans insured by FHA or guaranteed by the VA | $ 29.3 | $ 37.3 |
Period of residential mortgage loan that are no longer accruing interest | 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 | $ 9.9 | $ 11 |
Residential Mortgage [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | 142.8 | 162.9 |
Commercial Mortgage [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | 4.6 | 38.6 |
Residential Construction [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | 0.4 | 0.8 |
Land Construction [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | $ 0.7 | $ 5.7 |
LOAN PORTFOLIO - Corporation102
LOAN PORTFOLIO - Corporation's Credit Quality Indicators by Loan (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable Recorded Investment [Line Items] | |||
Commercial mortgage loans | $ 1,568,808 | $ 1,537,806 | |
Commercial and Industrial loans | 2,180,455 | 2,246,513 | |
Land | 31,766 | 51,874 | |
Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 15,710 | 20,991 | |
Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 77,475 | 83,330 | |
Substandard [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Commercial mortgage loans | 193,391 | 252,941 | |
Commercial and Industrial loans | 133,599 | 140,827 | |
Land | 19,345 | 14,035 | |
Substandard [Member] | Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 1,933 | 2,996 | |
Substandard [Member] | Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 36,893 | 39,466 | |
Doubtful [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Commercial mortgage loans | 35,416 | 140 | |
Commercial and Industrial loans | 67,996 | 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 | 784 | 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] | 228,807 | 253,081 |
Commercial and Industrial loans | [1] | 202,379 | 212,522 |
Land | [1] | 19,345 | 14,036 |
Total Adversely Classified [Member] | Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | [1] | 1,933 | 2,996 |
Total Adversely Classified [Member] | Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | [1] | $ 36,893 | $ 39,466 |
[1] | Excludes $8.1 million of non-performing loans held for sale as of December 31, 2016 and 2015. |
LOAN PORTFOLIO - Credit Risk Pa
LOAN PORTFOLIO - Credit Risk Payment Activity (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | $ 8,886,873 | $ 9,112,382 | ||
Consumer Loan [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 1,716,628 | 1,827,149 | ||
Fhava Guaranteed Loans [Member] | Residential Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 126,858 | [1] | 143,141 | [2] |
Other Residential Mortgage Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 3,169,173 | [3] | 3,201,578 | [4] |
Other Residential Mortgage Loans [Member] | Residential Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 3,169,173 | 3,201,578 | ||
Consumer Auto Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 847,958 | 934,980 | ||
Consumer Auto Loans [Member] | Consumer Loan [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 847,958 | 934,980 | ||
Finance Leases [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 233,335 | 229,165 | ||
Finance Leases [Member] | Consumer Loan [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 233,335 | 229,165 | ||
Other Consumer Loans [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 1,483,293 | 1,597,984 | ||
Other Consumer Loans [Member] | Consumer Loan [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 635,335 | 663,004 | ||
Performing Financing Receivable [Member] | Fhava Guaranteed Loans [Member] | Residential Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 126,858 | [1] | 143,141 | [2] |
Performing Financing Receivable [Member] | Other Residential Mortgage Loans [Member] | Residential Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 2,845,630 | 2,861,811 | ||
Performing Financing Receivable [Member] | Consumer Auto Loans [Member] | Consumer Loan [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 833,612 | 917,545 | ||
Performing Financing Receivable [Member] | Finance Leases [Member] | Consumer Loan [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 232,000 | 226,706 | ||
Performing Financing Receivable [Member] | Other Consumer Loans [Member] | Consumer Loan [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 626,936 | 652,146 | ||
Purchased Credit Impaired [Member] | Fhava Guaranteed Loans [Member] | Residential Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 0 | [1],[5] | 0 | [2],[6] |
Purchased Credit Impaired [Member] | Other Residential Mortgage Loans [Member] | Residential Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 162,676 | [5] | 170,766 | [6] |
Purchased Credit Impaired [Member] | Consumer Auto Loans [Member] | Consumer Loan [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 0 | [5] | 0 | [6] |
Purchased Credit Impaired [Member] | Finance Leases [Member] | Consumer Loan [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 0 | [5] | 0 | [6] |
Purchased Credit Impaired [Member] | Other Consumer Loans [Member] | Consumer Loan [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 0 | [5] | 0 | [6] |
Nonperforming Financing Receivable [Member] | Fhava Guaranteed Loans [Member] | Residential Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 0 | [1] | 0 | [2] |
Nonperforming Financing Receivable [Member] | Other Residential Mortgage Loans [Member] | Residential Real Estate [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 160,867 | 169,001 | ||
Nonperforming Financing Receivable [Member] | Consumer Auto Loans [Member] | Consumer Loan [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 14,346 | 17,435 | ||
Nonperforming Financing Receivable [Member] | Finance Leases [Member] | Consumer Loan [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | 1,335 | 2,459 | ||
Nonperforming Financing Receivable [Member] | Other Consumer Loans [Member] | Consumer Loan [Member] | ||||
Financing Receivable Recorded Investment [Line Items] | ||||
Loans and leases receivable gross carrying value | $ 8,399 | $ 10,858 | ||
[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. This balance includes $29.3 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, 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. This balance includes $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] | 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 and other 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, 2016 amounted to $9.9 million, $142.8 million, $4.6 million, $0.7 million, and $0.4 million, respectively. | |||
[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 and other 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 $0.8 million, respectively. | |||
[5] | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis. | |||
[6] | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analysis. |
LOAN PORTFOLIO - Credit Risk104
LOAN PORTFOLIO - Credit Risk Payment Activity (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable Recorded Investment [Line Items] | ||
Residential mortgage loans insured by FHA or guaranteed by the VA | $ 29,300 | $ 37,300 |
Period of residential mortgage loan that are no longer accruing interest | 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 Receivable Held For Sale Net | $ 50,006 | $ 35,869 |
Land Construction Financing Receivable [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans Receivable Held For Sale Net | $ 8,100 | $ 8,100 |
LOAN PORTFOLIO - Impaired loans
LOAN PORTFOLIO - Impaired loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | $ 161,617 | $ 192,165 | ||
Unpaid Principal Balance with no Related Allowance | 207,262 | 217,897 | ||
Average Recorded Investment No Related Allowance | 175,499 | 196,175 | ||
Interest Income with no Related Allowance Accrual Basis | 1,966 | 2,072 | ||
Interest Income with No Related Allowance Cash Basis | 1,389 | 2,328 | ||
Recorded Investment with Related Allowance | 726,288 | 614,344 | ||
Unpaid Principal Balance with Related Allowance | 821,683 | 699,270 | ||
Related Allowance | 64,421 | 52,581 | $ 55,205 | $ 102,601 |
Average Recorded Investment With Related Allowance | 748,842 | 629,855 | ||
Interest Income with Related Allowance Accrual Basis | 22,129 | 23,528 | ||
Interest Income with Realted Allowance Cash Basis | 3,060 | 4,175 | ||
Recorded Investment | 887,905 | 806,509 | $ 945,407 | $ 919,112 |
Unpaid Principal Balance | 1,028,945 | 917,167 | ||
Average Recorded Investments | 924,341 | 826,030 | ||
Interest Income on Impaired Loans Accrual Basis | 24,095 | 25,600 | ||
Interest Income on Impaired Loans Cash Basis | 4,449 | 6,503 | ||
FHA/VA Guaranteed loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 0 | 0 | ||
Unpaid Principal Balance with no Related Allowance | 0 | 0 | ||
Average Recorded Investment No Related Allowance | 0 | 0 | ||
Interest Income with no Related Allowance Accrual Basis | 0 | 0 | ||
Interest Income with No Related Allowance Cash Basis | 0 | 0 | ||
Recorded Investment with Related Allowance | 0 | 0 | ||
Unpaid Principal Balance with Related Allowance | 0 | 0 | ||
Related Allowance | 0 | 0 | ||
Average Recorded Investment With Related Allowance | 0 | 0 | ||
Interest Income with Related Allowance Accrual Basis | 0 | 0 | ||
Interest Income with Realted Allowance Cash Basis | 0 | 0 | ||
Recorded Investment | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | ||
Average Recorded Investments | 0 | 0 | ||
Interest Income on Impaired Loans Accrual Basis | 0 | 0 | ||
Interest Income on Impaired Loans Cash Basis | 0 | 0 | ||
Other residential loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 67,996 | 65,495 | ||
Unpaid Principal Balance with no Related Allowance | 82,602 | 74,146 | ||
Average Recorded Investment No Related Allowance | 71,003 | 67,282 | ||
Interest Income with no Related Allowance Accrual Basis | 741 | 558 | ||
Interest Income with No Related Allowance Cash Basis | 731 | 688 | ||
Recorded Investment with Related Allowance | 374,271 | 395,173 | ||
Unpaid Principal Balance with Related Allowance | 423,648 | 440,947 | ||
Related Allowance | 8,633 | 21,787 | ||
Average Recorded Investment With Related Allowance | 380,273 | 398,790 | ||
Interest Income with Related Allowance Accrual Basis | 17,751 | 17,543 | ||
Interest Income with Realted Allowance Cash Basis | 1,503 | 1,640 | ||
Recorded Investment | 442,267 | 460,668 | ||
Unpaid Principal Balance | 506,250 | 515,093 | ||
Average Recorded Investments | 451,276 | 466,072 | ||
Interest Income on Impaired Loans Accrual Basis | 18,492 | 18,101 | ||
Interest Income on Impaired Loans Cash Basis | 2,234 | 2,328 | ||
Commercial Mortgage Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 72,620 | 54,048 | ||
Unpaid Principal Balance with no Related Allowance | 91,685 | 66,448 | ||
Average Recorded Investment No Related Allowance | 80,713 | 54,967 | ||
Interest Income with no Related Allowance Accrual Basis | 940 | 1,329 | ||
Interest Income with No Related Allowance Cash Basis | 550 | 832 | ||
Recorded Investment with Related Allowance | 121,771 | 27,479 | ||
Unpaid Principal Balance with Related Allowance | 133,883 | 40,634 | ||
Related Allowance | 26,172 | 3,073 | ||
Average Recorded Investment With Related Allowance | 122,609 | 30,518 | ||
Interest Income with Related Allowance Accrual Basis | 463 | 347 | ||
Interest Income with Realted Allowance Cash Basis | 173 | 501 | ||
Recorded Investment | 194,391 | 81,527 | ||
Unpaid Principal Balance | 225,568 | 107,082 | ||
Average Recorded Investments | 203,322 | 85,485 | ||
Interest Income on Impaired Loans Accrual Basis | 1,403 | 1,676 | ||
Interest Income on Impaired Loans Cash Basis | 723 | 1,333 | ||
Commercial And Industrial Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 14,656 | 27,492 | ||
Unpaid Principal Balance with no Related Allowance | 24,642 | 29,957 | ||
Average Recorded Investment No Related Allowance | 17,209 | 28,326 | ||
Interest Income with no Related Allowance Accrual Basis | 42 | 0 | ||
Interest Income with No Related Allowance Cash Basis | 0 | 693 | ||
Recorded Investment with Related Allowance | 138,887 | 143,214 | ||
Unpaid Principal Balance with Related Allowance | 165,399 | 164,050 | ||
Related Allowance | 22,638 | 18,096 | ||
Average Recorded Investment With Related Allowance | 149,153 | 148,547 | ||
Interest Income with Related Allowance Accrual Basis | 589 | 2,338 | ||
Interest Income with Realted Allowance Cash Basis | 1,287 | 1,939 | ||
Recorded Investment | 153,543 | 170,706 | ||
Unpaid Principal Balance | 190,041 | 194,007 | ||
Average Recorded Investments | 166,362 | 176,873 | ||
Interest Income on Impaired Loans Accrual Basis | 631 | 2,338 | ||
Interest Income on Impaired Loans Cash Basis | 1,287 | 2,632 | ||
Construction Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Related Allowance | 1,405 | 1,202 | ||
Recorded Investment | 53,291 | 53,516 | ||
Auto loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 599 | 0 | ||
Unpaid Principal Balance with no Related Allowance | 599 | 0 | ||
Average Recorded Investment No Related Allowance | 615 | 0 | ||
Interest Income with no Related Allowance Accrual Basis | 7 | 0 | ||
Interest Income with No Related Allowance Cash Basis | 0 | 0 | ||
Recorded Investment with Related Allowance | 24,276 | 21,581 | ||
Unpaid Principal Balance with Related Allowance | 24,276 | 21,581 | ||
Related Allowance | 3,717 | 6,653 | ||
Average Recorded Investment With Related Allowance | 26,562 | 23,531 | ||
Interest Income with Related Allowance Accrual Basis | 1,813 | 1,494 | ||
Interest Income with Realted Allowance Cash Basis | 0 | 0 | ||
Recorded Investment | 24,875 | 21,581 | ||
Unpaid Principal Balance | 24,875 | 21,581 | ||
Average Recorded Investments | 27,177 | 23,531 | ||
Interest Income on Impaired Loans Accrual Basis | 1,820 | 1,494 | ||
Interest Income on Impaired Loans Cash Basis | 0 | 0 | ||
Finance Leases [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 94 | 0 | ||
Unpaid Principal Balance with no Related Allowance | 94 | 0 | ||
Average Recorded Investment No Related Allowance | 95 | 0 | ||
Interest Income with no Related Allowance Accrual Basis | 1 | 0 | ||
Interest Income with No Related Allowance Cash Basis | 0 | 0 | ||
Recorded Investment with Related Allowance | 2,553 | 2,077 | ||
Unpaid Principal Balance with Related Allowance | 2,553 | 2,077 | ||
Related Allowance | 71 | 86 | ||
Average Recorded Investment With Related Allowance | 2,751 | 2,484 | ||
Interest Income with Related Allowance Accrual Basis | 202 | 170 | ||
Interest Income with Realted Allowance Cash Basis | 0 | 0 | ||
Recorded Investment | 2,647 | 2,077 | ||
Unpaid Principal Balance | 2,647 | 2,077 | ||
Average Recorded Investments | 2,846 | 2,484 | ||
Interest Income on Impaired Loans Accrual Basis | 203 | 170 | ||
Interest Income on Impaired Loans Cash Basis | 0 | 0 | ||
Other Consumer Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 4,516 | 2,618 | ||
Unpaid Principal Balance with no Related Allowance | 5,876 | 4,300 | ||
Average Recorded Investment No Related Allowance | 4,696 | 2,766 | ||
Interest Income with no Related Allowance Accrual Basis | 233 | 21 | ||
Interest Income with No Related Allowance Cash Basis | 106 | 115 | ||
Recorded Investment with Related Allowance | 12,375 | 13,816 | ||
Unpaid Principal Balance with Related Allowance | 12,734 | 14,043 | ||
Related Allowance | 1,785 | 1,684 | ||
Average Recorded Investment With Related Allowance | 13,322 | 14,782 | ||
Interest Income with Related Allowance Accrual Basis | 1,143 | 1,592 | ||
Interest Income with Realted Allowance Cash Basis | 48 | 25 | ||
Recorded Investment | 16,891 | 16,434 | ||
Unpaid Principal Balance | 18,610 | 18,343 | ||
Average Recorded Investments | 18,018 | 17,548 | ||
Interest Income on Impaired Loans Accrual Basis | 1,376 | 1,613 | ||
Interest Income on Impaired Loans Cash Basis | 154 | 140 | ||
Land Construction [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 180 | 0 | ||
Unpaid Principal Balance with no Related Allowance | 233 | 0 | ||
Average Recorded Investment No Related Allowance | 212 | 0 | ||
Interest Income with no Related Allowance Accrual Basis | 2 | 0 | ||
Interest Income with No Related Allowance Cash Basis | 2 | 0 | ||
Recorded Investment with Related Allowance | 14,870 | 9,578 | ||
Unpaid Principal Balance with Related Allowance | 19,918 | 13,758 | ||
Related Allowance | 947 | 1,060 | ||
Average Recorded Investment With Related Allowance | 15,589 | 9,727 | ||
Interest Income with Related Allowance Accrual Basis | 168 | 44 | ||
Interest Income with Realted Allowance Cash Basis | 49 | 70 | ||
Recorded Investment | 15,050 | 9,578 | ||
Unpaid Principal Balance | 20,151 | 13,758 | ||
Average Recorded Investments | 15,801 | 9,727 | ||
Interest Income on Impaired Loans Accrual Basis | 170 | 44 | ||
Interest Income on Impaired Loans Cash Basis | 51 | 70 | ||
Residential Construction [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 956 | 3,046 | ||
Unpaid Principal Balance with no Related Allowance | 1,531 | 3,046 | ||
Average Recorded Investment No Related Allowance | 956 | 3,098 | ||
Interest Income with no Related Allowance Accrual Basis | 0 | 164 | ||
Interest Income with No Related Allowance Cash Basis | 0 | 0 | ||
Recorded Investment with Related Allowance | 392 | 1,426 | ||
Unpaid Principal Balance with Related Allowance | 551 | 2,180 | ||
Related Allowance | 134 | 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 | 4,472 | ||
Unpaid Principal Balance | 2,082 | 5,226 | ||
Average Recorded Investments | 1,348 | 4,574 | ||
Interest Income on Impaired Loans Accrual Basis | 0 | 164 | ||
Interest Income on Impaired Loans Cash Basis | 0 | 0 | ||
Commercial Construction [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 0 | 39,466 | ||
Unpaid Principal Balance with no Related Allowance | 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 | 36,893 | 0 | ||
Unpaid Principal Balance with Related Allowance | 38,721 | 0 | ||
Related Allowance | 324 | 0 | ||
Average Recorded Investment With Related Allowance | 38,191 | 0 | ||
Interest Income with Related Allowance Accrual Basis | 0 | 0 | ||
Interest Income with Realted Allowance Cash Basis | 0 | 0 | ||
Recorded Investment | 36,893 | 39,466 | ||
Unpaid Principal Balance | 38,721 | 40,000 | ||
Average Recorded Investments | 38,191 | 39,736 | ||
Interest Income on Impaired Loans Accrual Basis | 0 | 0 | ||
Interest Income on Impaired Loans Cash Basis | $ 0 | $ 0 |
LOAN PORTFOLIO - Additional Inf
LOAN PORTFOLIO - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | |||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Interest Income on Impaired Loans Accrual Basis | $ 24,095 | $ 25,600 | |||||||||
Contractually outstanding principal and interest at acquisition | $ 207,300 | $ 207,300 | 207,300 | 218,100 | $ 135,500 | ||||||
Loans | 8,886,873 | 8,886,873 | 8,886,873 | 9,112,382 | |||||||
Total TDR loans | 647,048 | 647,048 | 647,048 | 661,591 | 694,453 | [1] | $ 630,258 | ||||
Financing Receivable, Modifications, Recorded Investment | 647,048 | 647,048 | 647,048 | 661,591 | 694,453 | [1] | $ 630,258 | ||||
Provsion of PCI Loans | 2,895 | 3,962 | |||||||||
Classified And Non Performing Loans Sold | 16,300 | $ 147,500 | |||||||||
Other Real Estate Owned Sold | 2,900 | ||||||||||
Sales Price Of Bulk Sale | 87,300 | ||||||||||
Reserves Allocated To Bulk Sale | 2,800 | 15,300 | 2,800 | 2,800 | |||||||
Bulk Sale Charge Offs | 4,600 | 61,400 | |||||||||
Professional Fees Bulk Sale | 900 | ||||||||||
PreTax Loss Bulk Sale | 1,800 | 48,700 | |||||||||
Recoveries | 15,088 | 22,991 | |||||||||
Line Of Credit Facility Provided To Fund Unfunded Commitments | $ 80,000 | ||||||||||
Loans Receivable Held For Sale Net | 50,006 | 50,006 | 50,006 | 35,869 | |||||||
Proceeds From Sale Of Loans Held For Investment | $ 31,852 | 107,702 | 74,058 | ||||||||
Trouble Debt Restructurings Trial Period | 5 months 27 days | ||||||||||
Threshold Mortgage Loans Principal Amount Puerto Rico Housing Financing Authority | 75,000 | ||||||||||
Puerto Rico Housing Finance Authority Covered Loans | 552,000 | ||||||||||
Puerto Rico Housing Finance Authority Restricted Net Position | 77,400 | ||||||||||
Residential mortgage loans in process of foreclosure | 134,200 | 134,200 | $ 134,200 | ||||||||
Mortgage Loans Foreclosure Delinquency Threshold | 4 months | ||||||||||
Classified And Non Performing Loans Sold Outstanding Balance | 20,100 | ||||||||||
Reserve Coverage Ratio Commercial Loans | 17.00% | ||||||||||
Financing Receivable Allowance For Credit Losses Write Offs Impaired Loans | [2] | $ 67,210 | 99,023 | 106,154 | |||||||
Proceeds From Sale Of Non Performing Assets Sold | 11,300 | ||||||||||
Residential Mortgage Loans [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Financing Receivable Significant Purchases | 85,000 | ||||||||||
Securitization of mortgage loans into mortgage backed securities | 338,300 | ||||||||||
Loans | 3,296,031 | 3,296,031 | 3,296,031 | 3,344,719 | |||||||
Recoveries | 2,941 | 1,209 | |||||||||
Government Guaranteed Loans [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Total TDR loans | 69,100 | 69,100 | 69,100 | 77,600 | |||||||
Financing Receivable, Modifications, Recorded Investment | 69,100 | 69,100 | $ 69,100 | 77,600 | |||||||
Unpaid Principal Balance Percentage | 74.00% | ||||||||||
Loans in trial [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Total TDR loans | 4,100 | 4,100 | $ 4,100 | ||||||||
Financing Receivable, Modifications, Recorded Investment | 4,100 | 4,100 | 4,100 | ||||||||
Troubled Debt Restructurings [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Outstanding unfunded commitments on TDR loans | 1,200 | 1,200 | 1,200 | ||||||||
Loans Receivable Held For Sale Net | 45,700 | ||||||||||
Allowance For Loan And Lease Losses Write Offs Loans Sold | 1,300 | 45,300 | |||||||||
Loans Split [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Total TDR loans | 36,971 | 36,971 | 36,971 | 39,329 | 46,032 | ||||||
Financing Receivable, Modifications, Recorded Investment | 36,971 | 36,971 | 36,971 | 39,329 | 46,032 | ||||||
Financing Receivable Loans Restructured Recorded Investment Accruals | 3,200 | ||||||||||
Non-FHA/VA Residential Mortgage loans [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Total TDR loans | 375,809 | 375,809 | 375,809 | 382,672 | 349,775 | ||||||
Financing Receivable, Modifications, Recorded Investment | 375,809 | 375,809 | 375,809 | 382,672 | 349,775 | ||||||
Commercial And Industrial Loans [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Interest Income on Impaired Loans Accrual Basis | 631 | 2,338 | |||||||||
Total TDR loans | 133,521 | 133,521 | 133,521 | 150,254 | 171,926 | ||||||
Financing Receivable, Modifications, Recorded Investment | 133,521 | 133,521 | 133,521 | 150,254 | 171,926 | ||||||
Classified And Non Performing Loans Sold | 45,800 | ||||||||||
Commercial Mortgage Loans [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Interest Income on Impaired Loans Accrual Basis | 1,403 | 1,676 | |||||||||
Loans | 1,568,808 | 1,568,808 | 1,568,808 | 1,537,806 | |||||||
Total TDR loans | 48,742 | 48,742 | 48,742 | 44,498 | 127,766 | ||||||
Financing Receivable, Modifications, Recorded Investment | 48,742 | 48,742 | 48,742 | 44,498 | 127,766 | ||||||
Classified And Non Performing Loans Sold | 90,700 | ||||||||||
Recoveries | 816 | 6,534 | |||||||||
Proceeds From Sale Of Loans Held For Investment | 20,200 | 20,000 | 53,000 | ||||||||
Construction Loans [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Loans | 124,951 | 124,951 | 124,951 | 156,195 | |||||||
Total TDR loans | 46,600 | 46,600 | 46,600 | ||||||||
Financing Receivable, Modifications, Recorded Investment | 46,600 | 46,600 | 46,600 | ||||||||
Classified And Non Performing Loans Sold | $ 11,000 | ||||||||||
Recoveries | 316 | 2,582 | |||||||||
Consumer Loan [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Loans | 1,716,628 | 1,716,628 | 1,716,628 | 1,827,149 | |||||||
Total TDR loans | 42,400 | 42,400 | 42,400 | ||||||||
Financing Receivable, Modifications, Recorded Investment | 42,400 | 42,400 | 42,400 | ||||||||
Recoveries | 8,326 | 8,350 | |||||||||
Impaired Loans [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance For Loan And Lease Losses Write Offs Loans Sold | 4,200 | 63,900 | |||||||||
Fnma And Fhlmc [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Loans Repurchased | 700 | 1,400 | 2,300 | ||||||||
Fnma And Fhlmc [Member] | Residential Mortgage Loans [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Financing Receivable Significant Sales | 144,300 | ||||||||||
Puerto Rico Government And Political Subdivisions [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Outstanding of credit facilities granted | 35,700 | 35,700 | 35,700 | ||||||||
Puerto Rico Tourism Development Fund [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Outstanding of credit facilities granted | 127,700 | 127,700 | 127,700 | 129,400 | |||||||
Financing Receivable Commercial Governments Book Value | 111,800 | 111,800 | 111,800 | ||||||||
Financing Receivable Commercial Governments Collections | $ 600 | 5,300 | |||||||||
Unpaid Principal Balance Percentage | 72.00% | ||||||||||
Proceeds From Interest Received | $ 2,000 | ||||||||||
Financing Receivable Allowance For Credit Losses Write Offs Impaired Loans | 13,900 | ||||||||||
Allowance For Loan And Lease Losses Write Offs Against Specific Reserve | 13,000 | ||||||||||
Puerto Rico Electric Power Authority [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Outstanding of credit facilities granted | 75,000 | 75,000 | 75,000 | ||||||||
Classified And Non Performing Loans Sold | $ 64,000 | ||||||||||
Reserves Allocated To Bulk Sale | 10,200 | ||||||||||
PreTax Loss Bulk Sale | 600 | ||||||||||
Financing Receivable Commercial Governments Book Value | 65,500 | 65,500 | 65,500 | ||||||||
Classified And Non Performing Loans Sold Outstanding Balance | 75,000 | ||||||||||
Proceeds From Sale Of Non Performing Assets Sold | $ 53,200 | ||||||||||
Puerto Rico Housing Finance Authority [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Government Guaranteed Residential Mortgage Loans | 119,900 | 119,900 | 119,900 | ||||||||
GNMA certificates [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Loans Repurchased | $ 29,100 | 19,200 | $ 37,800 | ||||||||
Puerto Rico [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Credit risk concentration | 78.00% | ||||||||||
Outstanding of credit facilities granted | 133,600 | 133,600 | $ 133,600 | 153,200 | |||||||
Financing Receivable Commercial Governments Book Value | 124,500 | 124,500 | 124,500 | ||||||||
Puerto Rico [Member] | Public Corporations [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Outstanding of credit facilities granted | 91,000 | 91,000 | 91,000 | ||||||||
Financing Receivable Commercial Governments Book Value | 81,900 | 81,900 | 81,900 | ||||||||
Puerto Rico [Member] | Government [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Outstanding of credit facilities granted | 6,900 | 6,900 | $ 6,900 | ||||||||
Virgin Islands [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Credit risk concentration | 7.00% | ||||||||||
Outstanding of credit facilities granted | $ 84,700 | $ 84,700 | $ 84,700 | $ 126,200 | |||||||
United States [Member] | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Credit risk concentration | 15.00% | ||||||||||
[1] | Excludes TDRs held for sale amounting to $45.7 million as of December 31, 2014. | ||||||||||
[2] | For the year ended December 31, 2016, includes $4.2 million of charge-offs related to impaired loans included in a sale of a $16.3 million pool of non-performing assets and, for the year ended December 31, 2015, includes $63.9 million of charge-offs related to a bulk sales of assets, as further discussed below. |
LOAN PORTFOLIO - Activity for I
LOAN PORTFOLIO - Activity for Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Impaired Loans: | ||||
Balance at beginning of period | $ 806,509 | $ 945,407 | $ 919,112 | |
Loans determined impaired during the period | 288,202 | 160,837 | 306,390 | |
Charge-offs | [1] | (67,210) | (99,023) | (106,154) |
Impaired Loans Sold | (8,675) | (67,836) | (4,500) | |
Impaired Loans Transferred to Held For Sale | 0 | 40,005 | 0 | |
Increases to impaired loans (disbursements) | 3,236 | 3,340 | 5,028 | |
Foreclosures | (36,161) | (57,728) | (40,582) | |
Loans no longer considered impaired | (27,643) | (46,489) | (22,333) | |
Paid in full or partial payments | (70,353) | (72,004) | (111,554) | |
Balance at end of period | $ 887,905 | $ 806,509 | $ 945,407 | |
[1] | For the year ended December 31, 2016, includes $4.2 million of charge-offs related to impaired loans included in a sale of a $16.3 million pool of non-performing assets and, for the year ended December 31, 2015, includes $63.9 million of charge-offs related to a bulk sales of assets, as further discussed below. |
LOAN PORTFOLIO - Activity for S
LOAN PORTFOLIO - Activity for Specific Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Specific Reserve: | ||||
Related Allowance | $ 64,421 | $ 52,581 | $ 55,205 | $ 102,601 |
Provision for loan losses | 78,695 | 91,515 | 58,758 | |
Net Charge-offs | (66,855) | (94,139) | (106,154) | |
Impaired Financing Receivable Related Allowance | $ 64,421 | $ 52,581 | $ 55,205 | $ 102,601 |
LOAN PORTFOLIO- Carrying Value
LOAN PORTFOLIO- Carrying Value of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Financing Receivable Impaired [Line Items] | |||||
Purchased Credit Impaired Loans | $ 165,818 | [1] | $ 173,913 | [2] | $ 102,604 |
Allowance for losses purchased credit impaired | (6,857) | (3,962) | $ 0 | ||
Purchased Credit Impaired Loans, Net | 158,961 | 169,951 | |||
Residential Mortgage Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Purchased Credit Impaired Loans | 162,676 | 170,766 | |||
Commercial Mortgage Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Purchased Credit Impaired Loans | $ 3,142 | [3] | $ 3,147 | [4] | |
[1] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage and commercial mortgage loans are considered past due when the borrower is in arrears two or more monthly payments. PCI residential mortgage loans and commercial mortgage loans past due 30-59 days as of December 31, 2016 amounted to $22.3 million and $0.1 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 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. | ||||
[3] | 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 and other 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, 2016 amounted to $9.9 million, $142.8 million, $4.6 million, $0.7 million, and $0.4 million, respectively. | ||||
[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 and other 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 | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accretable Yield [Line Items] | ||
Accretable yield at acquisition | $ 118,385 | $ 82,460 |
Additions | 0 | 38,319 |
Reclassification to nonaccretable | 9,610 | 8,794 |
Accretion recognized in earnings | (11,533) | (11,188) |
Accretable yield as of December 31, 2014 | $ 116,462 | $ 118,385 |
LOAN PORTFOLIO- Corporation's A
LOAN PORTFOLIO- Corporation's Aging of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Accounts Notes And Loans Receivable [Line Items] | |||||
PCI 30-59 Days Past Due | $ 0 | [1] | $ 0 | [2] | |
PCI 60-89 Days, Past Due | 12,247 | [1] | 16,094 | [2] | |
PCI 90 days or more, Past Due | 28,999 | [1] | 23,210 | [2] | |
Total PCI Past Due | 41,246 | [1] | 39,304 | [2] | |
PCI Financing Receivable, Current | 124,572 | [1] | 134,609 | [2] | |
Purchased Credit Impaired Loans | 165,818 | [1] | 173,913 | [2] | $ 102,604 |
Residential Mortgage Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
PCI 30-59 Days Past Due | 0 | 0 | |||
PCI 60-89 Days, Past Due | 11,892 | 16,094 | |||
PCI 90 days or more, Past Due | 27,849 | 22,218 | |||
Total PCI Past Due | 39,741 | 38,312 | |||
PCI Financing Receivable, Current | 122,935 | 132,454 | |||
Purchased Credit Impaired Loans | 162,676 | 170,766 | |||
Commercial Mortgage Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
PCI 30-59 Days Past Due | 0 | 0 | |||
PCI 60-89 Days, Past Due | 355 | 0 | |||
PCI 90 days or more, Past Due | 1,150 | 992 | |||
Total PCI Past Due | 1,505 | 992 | |||
PCI Financing Receivable, Current | 1,637 | 2,155 | |||
Purchased Credit Impaired Loans | $ 3,142 | [3] | $ 3,147 | [4] | |
[1] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage and commercial mortgage loans are considered past due when the borrower is in arrears two or more monthly payments. PCI residential mortgage loans and commercial mortgage loans past due 30-59 days as of December 31, 2016 amounted to $22.3 million and $0.1 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 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. | ||||
[3] | 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 and other 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, 2016 amounted to $9.9 million, $142.8 million, $4.6 million, $0.7 million, and $0.4 million, respectively. | ||||
[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 and other 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 $0.8 million, respectively. |
LOAN PORTFOLIO-Corporation's Ag
LOAN PORTFOLIO-Corporation's Aging of Purchased Credit Impaired Loans (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Residential Mortgage [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due Mortgage | $ 142.8 | $ 162.9 |
Residential Mortgage [Member] | Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due Mortgage | 22.3 | 23.6 |
Commercial Mortgage [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due Mortgage | 4.6 | $ 38.6 |
Commercial Mortgage [Member] | Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due Mortgage | $ 0.1 |
LOAN PORTFOLIO -Changes in Carr
LOAN PORTFOLIO -Changes in Carrying Amount Of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Financing Receivable Impaired [Line Items] | ||||||
Beggining balance: purchased credit-impaired loans | $ 173,913 | [1] | $ 102,604 | |||
Additions | [2] | 0 | 79,889 | |||
Accretion recognized in earnings | 11,533 | 11,188 | ||||
Purchased Credit Impaired Loans Principal Collections | (17,184) | (19,572) | ||||
Purchased Credit Impaired Loans Foreclosures | (2,444) | (196) | ||||
Ending balance: purchased credit-impaired loans | 165,818 | [3] | 173,913 | [1] | ||
Allowance for losses purchased credit impaired | (6,857) | (3,962) | $ 0 | |||
Purchased Credit Impaired Loans, Net | $ 158,961 | $ 169,951 | ||||
[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. | |||||
[2] | For the year ended December 31, 2015, additions represents the estimated fair value of PCI loans acquired from Doral Bank at the date of acquisition. | |||||
[3] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage and commercial mortgage loans are considered past due when the borrower is in arrears two or more monthly payments. PCI residential mortgage loans and commercial mortgage loans past due 30-59 days as of December 31, 2016 amounted to $22.3 million and $0.1 million, respectively. |
LOAN PORTFOLIO - Changes in the
LOAN PORTFOLIO - Changes in the allowance for loan losses related to purchased credit impaired doans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Abstract] | ||
Beginning balance: purchased credit-impaired loans | $ 3,962 | $ 0 |
Provsion of PCI Loans | 2,895 | 3,962 |
Ending balance: purchased credit-impaired loans | $ 6,857 | $ 3,962 |
LOAN PORTFOLIO- Selected Inform
LOAN PORTFOLIO- Selected Information on TDRs includes Recorded Investment by Loan Class and Modification Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | $ 647,048 | $ 661,591 | $ 694,453 | [1] | $ 630,258 | ||
Non-FHA/VA Residential Mortgage loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 375,809 | 382,672 | 349,775 | ||||
Commercial Mortgage Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 48,742 | 44,498 | 127,766 | ||||
Commercial And Industrial Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 133,521 | 150,254 | 171,926 | ||||
Construction Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 46,600 | ||||||
Auto loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 24,875 | 21,582 | 16,991 | ||||
Finance Leases [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 2,647 | 2,077 | 2,181 | ||||
Other Consumer Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 14,842 | 14,794 | 13,307 | ||||
Land Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 9,362 | 2,766 | 2,470 | ||||
Residential Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 357 | 3,482 | 10,037 | ||||
Commercial Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 36,893 | 39,466 | [2] | ||||
Troubled Debt Restructurings Interest Rate Below Market [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 37,645 | 35,697 | 68,455 | [1] | |||
Troubled Debt Restructurings Interest Rate Below Market [Member] | Non-FHA/VA Residential Mortgage loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 29,254 | 29,066 | 24,850 | ||||
Troubled Debt Restructurings Interest Rate Below Market [Member] | Commercial Mortgage Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 6,044 | 4,379 | 29,881 | ||||
Troubled Debt Restructurings Interest Rate Below Market [Member] | Commercial And Industrial Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 2,111 | 2,163 | 7,533 | ||||
Troubled Debt Restructurings Interest Rate Below Market [Member] | Auto loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | 0 | ||||
Troubled Debt Restructurings Interest Rate Below Market [Member] | Finance Leases [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | 0 | ||||
Troubled Debt Restructurings Interest Rate Below Market [Member] | Other Consumer Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 236 | 89 | 37 | ||||
Troubled Debt Restructurings Interest Rate Below Market [Member] | Land Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | 0 | ||||
Troubled Debt Restructurings Interest Rate Below Market [Member] | Residential Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | 6,154 | ||||
Troubled Debt Restructurings Interest Rate Below Market [Member] | Commercial Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | [2] | ||||
Troubled Debt Restructurings Maturity Or Term Extension [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 88,535 | 87,159 | 100,662 | [1] | |||
Troubled Debt Restructurings Maturity Or Term Extension [Member] | Non-FHA/VA Residential Mortgage loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 8,373 | 6,027 | 5,859 | ||||
Troubled Debt Restructurings Maturity Or Term Extension [Member] | Commercial Mortgage Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 2,007 | 1,244 | 12,737 | ||||
Troubled Debt Restructurings Maturity Or Term Extension [Member] | Commercial And Industrial Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 66,830 | 75,104 | 80,642 | ||||
Troubled Debt Restructurings Maturity Or Term Extension [Member] | Auto loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 1,706 | 2,330 | 380 | ||||
Troubled Debt Restructurings Maturity Or Term Extension [Member] | Finance Leases [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 366 | 621 | 376 | ||||
Troubled Debt Restructurings Maturity Or Term Extension [Member] | Other Consumer Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 2,518 | 1,604 | 129 | ||||
Troubled Debt Restructurings Maturity Or Term Extension [Member] | Land Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 6,735 | 229 | 202 | ||||
Troubled Debt Restructurings Maturity Or Term Extension [Member] | Residential Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | 337 | ||||
Troubled Debt Restructurings Maturity Or Term Extension [Member] | Commercial Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | [2] | ||||
Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 355,812 | 380,714 | 415,187 | [1] | |||
Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | Non-FHA/VA Residential Mortgage loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 280,588 | 297,310 | 283,317 | ||||
Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | Commercial Mortgage Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 30,005 | 26,109 | 72,493 | ||||
Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | Commercial And Industrial Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 16,359 | 27,214 | 31,553 | ||||
Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | Auto loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 14,698 | 12,388 | 10,363 | ||||
Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | Finance Leases [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 2,281 | 1,456 | 1,805 | ||||
Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | Other Consumer Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 9,662 | 11,026 | 10,812 | ||||
Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | Land Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 2,219 | 2,165 | 1,732 | ||||
Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | Residential Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 3,046 | 3,112 | ||||
Troubled Debt Restructurings Combination Of Reduction In Interest Rate And Extension Of Maturity [Member] | Commercial Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | [2] | ||||
Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 38,055 | 42,820 | 3,517 | [1] | |||
Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | Non-FHA/VA Residential Mortgage loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | 0 | ||||
Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | Commercial Mortgage Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | 0 | ||||
Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | Commercial And Industrial Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 863 | 3,027 | 3,074 | ||||
Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | Auto loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | 0 | ||||
Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | Finance Leases [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | 0 | ||||
Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | Other Consumer Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 299 | 327 | 443 | ||||
Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | Land Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | 0 | ||||
Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | Residential Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | 0 | ||||
Troubled Debt Restructurings Forgiveness Of Principal And Interest [Member] | Commercial Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 36,893 | 39,466 | [2] | ||||
Troubled Debt Restructurings Other [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 127,001 | [3] | 115,201 | [4] | 106,632 | [1],[5] | |
Troubled Debt Restructurings Other [Member] | Non-FHA/VA Residential Mortgage loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 57,594 | [3] | 50,269 | [4] | 35,749 | [5] | |
Troubled Debt Restructurings Other [Member] | Commercial Mortgage Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 10,686 | [3] | 12,766 | [4] | 12,655 | [5] | |
Troubled Debt Restructurings Other [Member] | Commercial And Industrial Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 47,358 | [3] | 42,746 | [4] | 49,124 | [5] | |
Troubled Debt Restructurings Other [Member] | Auto loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 8,471 | [3] | 6,864 | [4] | 6,248 | [5] | |
Troubled Debt Restructurings Other [Member] | Finance Leases [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | [3] | 0 | [4] | 0 | [5] | |
Troubled Debt Restructurings Other [Member] | Other Consumer Loans [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 2,127 | [3] | 1,748 | [4] | 1,886 | [5] | |
Troubled Debt Restructurings Other [Member] | Land Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 408 | [3] | 372 | [4] | 536 | [5] | |
Troubled Debt Restructurings Other [Member] | Residential Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 357 | [3] | 436 | [4] | $ 434 | [5] | |
Troubled Debt Restructurings Other [Member] | Commercial Construction [Member] | |||||||
Financing Receivable Impaired [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | $ 0 | [3] | $ 0 | [2],[4] | |||
[1] | Excludes TDRs held for sale amounting to $45.7 million as of December 31, 2014. | ||||||
[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 $40.0 million construction loan in the Virgin Islands. Accordingly, the loan was transferred back from held for sale to held for investment and continues to be classified as a TDR and a non-performing loan. | ||||||
[3] | Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of the concessions listed in the table. | ||||||
[4] | Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of the concessions listed in the table above. | ||||||
[5] | Other concessions granted by the Corporation include deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of the concessions listed in the table above. |
LOAN PORTFOLIO - Corporation116
LOAN PORTFOLIO - Corporation's TDR Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Schedule Of Financing Receivables [Line Items] | ||||||
Beginning Balance of TDRs | $ 661,591 | $ 694,453 | [1] | $ 630,258 | ||
New TDRs | 84,942 | 111,890 | 164,108 | |||
Increases to existing TDRs (disbursements) | 3,921 | 1,018 | 1,903 | |||
Charge-offs post modification | [2] | (24,876) | (64,116) | (43,916) | ||
Financing Receivable Modifications Sold | (3,761) | (44,048) | (4,500) | |||
Foreclosures | (16,834) | (39,706) | (4,948) | |||
Removed from TDR classification | (3,031) | 0 | 0 | |||
TDRs transferred to loans held for sale | [3] | 0 | 40,005 | 0 | ||
Paid-off and partial payments | (54,904) | (37,905) | (48,452) | |||
Ending balance of TDRs | $ 647,048 | $ 661,591 | $ 694,453 | [1] | ||
[1] | Excludes TDRs held for sale amounting to $45.7 million as of December 31, 2014. | |||||
[2] | For the year ended December 31, 2016, includes $1.3 million of charge-offs related to TDRs included in the sale of the $16.3 million pool of non-performing assets. For the year ended December 31, 2015 includes $45.3 million of charge-offs related to TDRs included in the bulk sale of assets. | |||||
[3] | During the third quarter of 2015, upon the signing of a new agreement with the borrower, the Corporation changed its intent to sell a $40.0 million construction loan in the Virgin Islands. Accordingly, the loan was transferred back from held for sale to held for investment and continues to be classified as a TDR and a non-performing loan. |
LOAN PORTFOLIO - Breakdown Betw
LOAN PORTFOLIO - Breakdown Between Accrual and Nonaccrual Status of TDRs (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | $ 647,048 | $ 661,591 | $ 694,453 | [1] | $ 630,258 | ||
Non Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 262,161 | [2] | 246,683 | [3] | |||
Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 384,887 | 414,908 | |||||
Non Fha Va Residential Mortgage Loans [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 375,809 | 382,672 | 349,775 | ||||
Non Fha Va Residential Mortgage Loans [Member] | Non Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 80,153 | [2] | 78,787 | [3] | |||
Non Fha Va Residential Mortgage Loans [Member] | Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 295,656 | 303,885 | |||||
Commercial Mortgage Loans [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 48,742 | 44,498 | 127,766 | ||||
Commercial Mortgage Loans [Member] | Non Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 16,402 | [2] | 15,377 | [3] | |||
Commercial Mortgage Loans [Member] | Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 32,340 | 29,121 | |||||
Commercial And Industrial Loans [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 133,521 | 150,254 | 171,926 | ||||
Commercial And Industrial Loans [Member] | Non Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 115,025 | [2] | 101,862 | [3] | |||
Commercial And Industrial Loans [Member] | Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 18,496 | 48,392 | |||||
Construction Loans [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 46,600 | ||||||
Auto loans [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 24,875 | 21,582 | 16,991 | ||||
Auto loans [Member] | Non Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 8,622 | [2] | 6,759 | [3] | |||
Auto loans [Member] | Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 16,253 | 14,823 | |||||
Finance Leases [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 2,647 | 2,077 | 2,181 | ||||
Finance Leases [Member] | Non Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 105 | [2] | 97 | [3] | |||
Finance Leases [Member] | Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 2,542 | 1,980 | |||||
Other Consumer Loans [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 14,842 | 14,794 | 13,307 | ||||
Other Consumer Loans [Member] | Non Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 2,974 | [2] | 2,057 | [3] | |||
Other Consumer Loans [Member] | Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 11,868 | 12,737 | |||||
Land Construction [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 9,362 | 2,766 | 2,470 | ||||
Land Construction [Member] | Non Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 1,630 | [2] | 1,842 | [3] | |||
Land Construction [Member] | Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 7,732 | 924 | |||||
Residential Construction [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 357 | 3,482 | $ 10,037 | ||||
Residential Construction [Member] | Non Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 357 | [2] | 436 | [3] | |||
Residential Construction [Member] | Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 3,046 | |||||
Commercial Construction [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 36,893 | 39,466 | [4] | ||||
Commercial Construction [Member] | Non Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | 36,893 | [2] | 39,466 | ||||
Commercial Construction [Member] | Accrual [Member] | |||||||
Financing Receivable Modifications [Line Items] | |||||||
Financing Receivable, Modifications, Recorded Investment | $ 0 | $ 0 | |||||
[1] | Excludes TDRs held for sale amounting to $45.7 million as of December 31, 2014. | ||||||
[2] | Included in non-accrual loans are $110.6 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. | ||||||
[4] | During the third quarter of 2015, upon the signing of a new agreement with the borrower, the Corporation changed its intent to sell a $40.0 million construction loan in the Virgin Islands. Accordingly, the loan was transferred back from held for sale to held for investment and continues to be classified as a TDR and a non-performing loan. |
LOAN PORTFOLIO - Breakdown B118
LOAN PORTFOLIO - Breakdown Between Accrual and Nonaccrual Status of TDRs (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | [1] | Dec. 31, 2013 |
Financing Receivable Modifications [Line Items] | |||||
Total TDR loans | $ 647,048 | $ 661,591 | $ 694,453 | $ 630,258 | |
Performing Financing Receivable [Member] | Non Accrual [Member] | |||||
Financing Receivable Modifications [Line Items] | |||||
Total TDR loans | $ 110,600 | $ 118,200 | |||
[1] | Excludes TDRs held for sale amounting to $45.7 million as of December 31, 2014. |
LOAN PORTFOLIO - Loan Modificat
LOAN PORTFOLIO - Loan Modifications are Considered TDRs (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)numberofcontracts | Dec. 31, 2015USD ($)numberofcontracts | Dec. 31, 2014USD ($)numberofcontracts | |
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 2,228 | 2,585 | 2,462 |
Pre-modification Outstanding Recorded Investment | $ 86,106 | $ 117,770 | $ 165,744 |
Post-Modification Outstanding Recorded Investment | $ 84,942 | $ 111,890 | $ 164,108 |
Non-FHA/VA Residential Mortgage loans [Member] | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 209 | 408 | 291 |
Pre-modification Outstanding Recorded Investment | $ 30,940 | $ 67,006 | $ 40,166 |
Post-Modification Outstanding Recorded Investment | $ 29,668 | $ 64,679 | $ 39,194 |
Commercial Mortgage Loans [Member] | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 11 | 16 | 9 |
Pre-modification Outstanding Recorded Investment | $ 5,710 | $ 22,366 | $ 2,853 |
Post-Modification Outstanding Recorded Investment | $ 5,739 | $ 19,914 | $ 2,855 |
Commercial And Industrial Loans [Member] | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 25 | 5 | 17 |
Pre-modification Outstanding Recorded Investment | $ 22,182 | $ 5,971 | $ 105,372 |
Post-Modification Outstanding Recorded Investment | $ 22,184 | $ 5,351 | $ 105,110 |
Auto loans [Member] | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 744 | 756 | 602 |
Pre-modification Outstanding Recorded Investment | $ 13,141 | $ 12,219 | $ 8,903 |
Post-Modification Outstanding Recorded Investment | $ 13,141 | $ 11,985 | $ 8,748 |
Finance Leases [Member] | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 74 | 55 | 45 |
Pre-modification Outstanding Recorded Investment | $ 1,878 | $ 1,447 | $ 953 |
Post-Modification Outstanding Recorded Investment | $ 1,878 | $ 1,250 | $ 800 |
Other Consumer Loans [Member] | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 1,156 | 1,338 | 1,492 |
Pre-modification Outstanding Recorded Investment | $ 5,496 | $ 8,158 | $ 7,240 |
Post-Modification Outstanding Recorded Investment | $ 5,576 | $ 8,111 | $ 7,182 |
Land Construction [Member] | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 9 | 7 | 6 |
Pre-modification Outstanding Recorded Investment | $ 6,759 | $ 603 | $ 257 |
Post-Modification Outstanding Recorded Investment | $ 6,756 | $ 600 | $ 219 |
LOAN PORTFOLIO - Loan Modifi120
LOAN PORTFOLIO - Loan Modifications Considered Troubled Debt Restructurings Defaulted (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)numberofcontracts | Dec. 31, 2015USD ($)numberofcontracts | Dec. 31, 2014USD ($)numberofcontracts | |
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 222 | 265 | 352 |
Recorded investment | $ | $ 8,934 | $ 19,214 | $ 16,075 |
Non Fha Va Residential Mortgage Loans [Member] | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 50 | 69 | 55 |
Recorded investment | $ | $ 7,673 | $ 10,240 | $ 8,087 |
Commercial Mortgage Loans [Member] | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 0 | 1 | 2 |
Recorded investment | $ | $ 0 | $ 2,179 | $ 4,604 |
Commercial And Industrial Loan [Member] | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 0 | 4 | 2 |
Recorded investment | $ | $ 0 | $ 5,745 | $ 1,537 |
Consumer Auto Loans [Member] | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 51 | 13 | 45 |
Recorded investment | $ | $ 764 | $ 159 | $ 697 |
Other Consumer Loans [Member] | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 119 | 172 | 241 |
Recorded investment | $ | $ 454 | $ 706 | $ 989 |
Finance Leases [Member] | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 2 | 6 | 6 |
Recorded investment | $ | $ 43 | $ 185 | $ 115 |
Land Construction [Member] | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | numberofcontracts | 0 | 0 | 1 |
Recorded investment | $ | $ 0 | $ 0 | $ 46 |
LOAN PORTFOLIO - Loan Restructu
LOAN PORTFOLIO - Loan Restructuring and Effect on Allowance for Loan and Lease Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $ 647,048 | $ 661,591 | $ 694,453 | [1] | $ 630,258 |
Provision for loan and lease losses | 86,733 | 172,045 | 109,530 | ||
Allowance for loan losses at end of year | 205,603 | 240,710 | |||
Loans Split [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 36,971 | 39,329 | 46,032 | ||
Amount charged-off | 0 | 0 | (7,501) | ||
Provision for loan and lease losses | 4,279 | 131 | (8,341) | ||
Allowance for loan losses at end of year | $ 5,141 | $ 862 | $ 731 | ||
[1] | Excludes TDRs held for sale amounting to $45.7 million as of December 31, 2014. |
ALLOWANCE FOR LOAN AND LEASE122
ALLOWANCE FOR LOAN AND LEASE LOSSES - Changes in Allowance for Loan and Lease Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Beginning balance | $ 240,710 | $ 222,395 | |||||
Charge-offs | (136,928) | (176,721) | |||||
Recoveries | 15,088 | 22,991 | |||||
Provision (release) | 86,733 | 172,045 | |||||
Ending balance | 205,603 | 240,710 | |||||
Related Allowance | 64,421 | 52,581 | $ 55,205 | $ 102,601 | |||
Ending balance: purchased credit-impaired loans | 6,857 | 3,962 | |||||
Ending balance: general allowance | 134,325 | 184,167 | |||||
Ending balance | 8,886,873 | 9,112,382 | |||||
Ending balance: impaired loans | 887,905 | 806,509 | $ 945,407 | $ 919,112 | |||
Ending balance: purchased credit-impaired loans | 165,818 | [1] | 173,913 | [2] | |||
Ending balance: loans with general allowance | 7,833,150 | 8,131,960 | |||||
Purchased Credit Impaired [Member] | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Ending balance: purchased credit-impaired loans | [3] | 6,857 | 3,962 | ||||
Residential Mortgage [Member] | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Beginning balance | 39,570 | 27,301 | |||||
Charge-offs | (33,621) | (19,317) | |||||
Recoveries | 2,941 | 1,209 | |||||
Provision (release) | 25,090 | 30,377 | |||||
Ending balance | 33,980 | 39,570 | |||||
Related Allowance | 8,633 | 21,787 | |||||
Ending balance: general allowance | 18,715 | 13,946 | |||||
Ending balance | 3,296,031 | 3,344,719 | |||||
Ending balance: impaired loans | 442,267 | 460,668 | |||||
Ending balance: purchased credit-impaired loans | 162,676 | 170,766 | |||||
Ending balance: loans with general allowance | 2,691,088 | 2,713,285 | |||||
Residential Mortgage [Member] | Purchased Credit Impaired [Member] | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Ending balance: purchased credit-impaired loans | [3] | 6,632 | 3,837 | ||||
Commercial Mortgage Loans [Member] | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Beginning balance | 68,211 | 50,894 | |||||
Charge-offs | (20,454) | (56,101) | |||||
Recoveries | 816 | 6,534 | |||||
Provision (release) | 8,688 | 66,884 | |||||
Ending balance | 57,261 | 68,211 | |||||
Related Allowance | 26,172 | 3,073 | |||||
Ending balance: general allowance | 30,864 | 65,013 | |||||
Ending balance | 1,568,808 | 1,537,806 | |||||
Ending balance: impaired loans | 194,391 | 81,527 | |||||
Ending balance: purchased credit-impaired loans | 3,142 | 3,147 | |||||
Ending balance: loans with general allowance | 1,371,275 | 1,453,132 | |||||
Commercial Mortgage Loans [Member] | Purchased Credit Impaired [Member] | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Ending balance: purchased credit-impaired loans | [3] | 225 | 125 | ||||
Commercial And Industrial Loans [Member] | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Beginning balance | 68,768 | 63,721 | |||||
Charge-offs | (26,579) | (33,844) | |||||
Recoveries | 2,689 | 4,316 | |||||
Provision (release) | 17,075 | 34,575 | |||||
Ending balance | 61,953 | 68,768 | |||||
Related Allowance | 22,638 | 18,096 | |||||
Ending balance: general allowance | 39,315 | 50,672 | |||||
Ending balance | 2,180,455 | 2,246,513 | |||||
Ending balance: impaired loans | 153,543 | 170,706 | |||||
Ending balance: purchased credit-impaired loans | 0 | 0 | |||||
Ending balance: loans with general allowance | 2,026,912 | 2,075,807 | |||||
Commercial And Industrial Loans [Member] | Purchased Credit Impaired [Member] | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Ending balance: purchased credit-impaired loans | [3] | 0 | 0 | ||||
Construction Loans [Member] | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Beginning balance | 3,519 | 12,822 | |||||
Charge-offs | (1,770) | (4,994) | |||||
Recoveries | 316 | 2,582 | |||||
Provision (release) | 497 | (6,891) | |||||
Ending balance | 2,562 | 3,519 | |||||
Related Allowance | 1,405 | 1,202 | |||||
Ending balance: general allowance | 1,157 | 2,317 | |||||
Ending balance | 124,951 | 156,195 | |||||
Ending balance: impaired loans | 53,291 | 53,516 | |||||
Ending balance: purchased credit-impaired loans | 0 | 0 | |||||
Ending balance: loans with general allowance | 71,660 | 102,679 | |||||
Construction Loans [Member] | Purchased Credit Impaired [Member] | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Ending balance: purchased credit-impaired loans | [3] | 0 | 0 | ||||
Consumer Loan [Member] | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Beginning balance | 60,642 | 67,657 | |||||
Charge-offs | (54,504) | (62,465) | |||||
Recoveries | 8,326 | 8,350 | |||||
Provision (release) | 35,383 | 47,100 | |||||
Ending balance | 49,847 | 60,642 | |||||
Related Allowance | 5,573 | 8,423 | |||||
Ending balance: general allowance | 44,274 | 52,219 | |||||
Ending balance | 1,716,628 | 1,827,149 | |||||
Ending balance: impaired loans | 44,413 | 40,092 | |||||
Ending balance: purchased credit-impaired loans | 0 | 0 | |||||
Ending balance: loans with general allowance | 1,672,215 | 1,787,057 | |||||
Consumer Loan [Member] | Purchased Credit Impaired [Member] | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Ending balance: purchased credit-impaired loans | [3] | $ 0 | $ 0 | ||||
[1] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage and commercial mortgage loans are considered past due when the borrower is in arrears two or more monthly payments. PCI residential mortgage loans and commercial mortgage loans past due 30-59 days as of December 31, 2016 amounted to $22.3 million and $0.1 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 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 $23.6 million. | ||||||
[3] | Refer to Note 8 - Loans Held for Investment - PCI Loans for a detail of changes in the allowance for loan losses related to PCI loans. |
ALLOWANCE FOR LOAN AND LEASE123
ALLOWANCE FOR LOAN AND LEASE LOSSES - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Reserve for unfunded loan commitments | $ 1.6 | $ 0.4 | |
General Allowance For Loan And Lease Losses Loans Sold | $ 15.5 |
LOANS HELD FOR SALE - Portfolio
LOANS HELD FOR SALE - Portfolio of Loans Held for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $ 50,006 | $ 35,869 |
Residential Mortgage [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Residential mortgage loans | 41,927 | 27,734 |
Construction Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Construction | $ 8,079 | $ 8,135 |
LOANS HELD FOR SALE - Portfo125
LOANS HELD FOR SALE - Portfolio of Loans Held For Sale Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for sale | $ 50,006 | $ 50,006 | $ 35,869 | ||
Non-performing loan sold | $ 16,300 | $ 147,500 | |||
Transfer Of Loans Held For Sale To Portfolio Loans 1 | $ 1,443 | $ 40,086 | $ 0 | ||
Construction Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Non-performing loan sold | 11,000 | ||||
Commercial Mortgage Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Non-performing loan sold | $ 90,700 |
RELATED PARTY TRANSACTIONS- Mov
RELATED PARTY TRANSACTIONS- Movement and balance of these loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transactions [Abstract] | ||
Opening Balance | $ 1,252 | $ 1,333 |
New loans | 102 | 43 |
Loans and Leases Receivable, Related Parties, Proceeds | 146 | 130 |
Other changes | 0 | 6 |
Closing Balance | $ 1,208 | $ 1,252 |
OTHER REAL ESTATE OWNED- Other
OTHER REAL ESTATE OWNED- Other real estate owned (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Real Estate And Foreclosed Assets [Line Items] | |||
Other Real Estate And Foreclosed Assets | $ 137,681 | $ 146,801 | |
Residential Real Estate [Member] | |||
Other Real Estate And Foreclosed Assets [Line Items] | |||
Other Real Estate And Foreclosed Assets | [1] | 46,917 | 43,563 |
Commercial Real Estate [Member] | |||
Other Real Estate And Foreclosed Assets [Line Items] | |||
Other Real Estate And Foreclosed Assets | 78,698 | 87,849 | |
Construction Real Estate [Member] | |||
Other Real Estate And Foreclosed Assets [Line Items] | |||
Other Real Estate And Foreclosed Assets | $ 12,066 | $ 15,389 | |
[1] | As of December 31, 2015, excludes $8.9 million of foreclosures related to loans guaranteed by the FHA/VA completed in 2015 that meet the conditions of ASC 310-40 and are presented as a receivable (other assets) in the statement of financial condition. |
OTHER REAL ESTATE OWNED- Additi
OTHER REAL ESTATE OWNED- Additional information (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Other Real Estate And Foreclosed Assets [Abstract] | ||
Transfers From Loansto Other Receivable | $ 15,000,000 | $ 8,900,000 |
PROPERTY PLANT AND EQUIPMENT (D
PROPERTY PLANT AND EQUIPMENT (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Line Items] | |||
Buildings and Improvements | $ 139,533 | $ 142,872 | |
Leasehold Improvements | 60,605 | 61,089 | |
Furniture and equipment | 165,386 | 162,954 | |
Property, Plant and Equipment, Gross | 365,524 | 366,915 | |
Accumulated Depreciation | (248,335) | (238,734) | |
Subtotal | 117,189 | 128,181 | |
Land | 25,279 | 26,932 | |
Projects in progress | 8,360 | 5,903 | |
Premises and equipment, net | 150,828 | 161,016 | |
Depreciation and amortization expense | 17,600 | 21,100 | $ 21,000 |
Other Assets Held For Sale | $ 1,221 | $ 0 | $ 0 |
Maximum [Member] | FurnitureAndFixturesMember | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Maximum [Member] | BuildingImprovementsMember | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 35 years | ||
Maximum [Member] | LeaseholdImprovementsMember | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Minimum [Member] | FurnitureAndFixturesMember | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 2 years | ||
Minimum [Member] | BuildingImprovementsMember | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Minimum [Member] | LeaseholdImprovementsMember | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 1 year |
GOODWILL AND OTHER INTANGIBL130
GOODWILL AND OTHER INTANGIBLES - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2012 | |
Finite Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 28,100 | $ 28,100 | ||
Purchase credit card relationship intangible amount | $ 24,500 | |||
Amortization expense | 4,896 | 5,143 | $ 4,943 | |
Business Combination Finite Lived Intangible Assets Net | 4,400 | 5,100 | ||
Purchased Credit Card Relationship Intangible [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Purchase credit card relationship intangible amount | $ 24,465 | $ 24,465 | ||
Amortization period of purchased credit card relationship intangible | 5 years | 5 years 9 months 18 days | ||
Core Deposits [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Purchase credit card relationship intangible amount | $ 51,664 | $ 45,844 | ||
Amortization period of purchased credit card relationship intangible | 8 years 1 month 6 days | 9 years | ||
Customer Related Intangible Assets Member | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Purchase credit card relationship intangible amount | $ 1,067 | $ 0 | ||
Amortization period of purchased credit card relationship intangible | 6 years 1 month 6 days | 0 years |
GOODWILL AND OTHER INTANGIBL131
GOODWILL AND OTHER INTANGIBLES - Gross Amount and Accumulated Amortization of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | Jun. 30, 2012 | |
Finite Lived Intangible Assets [Line Items] | |||||
Gross amount | $ 24,500 | ||||
Core Deposits [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Gross amount | $ 51,664 | $ 45,844 | |||
Finite lived Intangible Assets Acquired 1 | 0 | 5,820 | |||
Accumulated amortization | (44,466) | (42,498) | |||
Finite Lived Intangible Assets Net | $ 7,198 | $ 9,166 | |||
Remaining amortization period | 8 years 1 month 6 days | 9 years | |||
Purchased Credit Card Relationship Intangible [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Gross amount | $ 24,465 | $ 24,465 | |||
Finite lived Intangible Assets Acquired 1 | $ 24,500 | ||||
Accumulated amortization | (13,934) | (11,146) | |||
Finite Lived Intangible Assets Net | $ 10,531 | $ 13,319 | |||
Remaining amortization period | 5 years | 5 years 9 months 18 days | |||
Customer Related Intangible Assets Member | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Gross amount | $ 1,067 | $ 0 | |||
Finite lived Intangible Assets Acquired 1 | $ 1,100 | ||||
Accumulated amortization | (140) | 0 | |||
Finite Lived Intangible Assets Net | $ 927 | $ 0 | |||
Remaining amortization period | 6 years 1 month 6 days | 0 years |
GOODWILL - Yearly Amortization
GOODWILL - Yearly Amortization Expense (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill and other Intangible Assets [Abstract] | |
Finite Lived Intangible Assets Amortization Expense Next Twelve Months | $ 4,495 |
Finite Lived Intangible Assets Amortization Expense Year Two | 3,519 |
Finite Lived Intangible Assets Amortization Expense Year Three | 3,067 |
Finite Lived Intangible Assets Amortization Expense Year Four | 2,851 |
Finite Lived Intangible Assets Amortization Expense After Year Five | 2,066 |
Finite Lived Intangible Assets Amortization Expense Year Five | $ 2,658 |
NON-CONSOLIDATED VARIABLE IN133
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Feb. 16, 2011 | Sep. 30, 2004 | Apr. 30, 2004 | Mar. 31, 2016 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Jun. 30, 2016 | |
Servicing Liabilities At Fair Value [Line Items] | ||||||||||
Principal amount of corporation serviced loans securitized through GNMA | $ 1,500,000 | |||||||||
Balance of amortization with third party | 28,800 | |||||||||
Carrying value with third party | $ 20,700 | |||||||||
Percentage of weighted average yield with third party | 2.40% | |||||||||
Acquired Equity interest on disposal of loans held for sale | 35.00% | |||||||||
Loans acquired on exchange of loan held for sale | $ 136,100 | |||||||||
Maturity period of loan acquired | 7 years | |||||||||
Description of loan | 30-day LIBOR plus 300 basis points | |||||||||
Line of credit facility provided to fund unfunded commitments | $ 80,000 | |||||||||
Working capital line of credit to fund certain expenses | $ 20,000 | |||||||||
Interest rate on loan provided | 30-day LIBOR plus 300 basis points | |||||||||
Revolver agreement of credit facility provided amount outstanding | $ 8,600 | |||||||||
Percentage of priority interest to be received on invested capital | 12.00% | |||||||||
Percentage of variation in assumptions | 10.00% | |||||||||
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 | 4,597,121 | ||||||||
Common Stock Issued In Exchange For Trust Preferred Securities Value | $ 0 | $ 5,628 | $ 0 | |||||||
Trust Preferred Securities Exchanged Liquidation Value | $ 0 | $ 5,303 | $ 0 | |||||||
Trust Preferred Securities Repurchases | $ 10,000 | |||||||||
Trust Preferred Securties Discount | 30.00% | |||||||||
Trust Preferred Securities Winning Bid | 70.00% | |||||||||
Minimum [Member] | ||||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||||
Percentage of variation in assumptions | 10.00% | |||||||||
Maximum [Member] | ||||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||||
Percentage of variation in assumptions | 20.00% | |||||||||
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Seventy Five [Member] | ||||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||||
Subordinated Borrowing Due Date | Jun. 17, 2034 | |||||||||
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Fifty Percent [Member] | ||||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||||
Subordinated Borrowing Due Date | Sep. 20, 2034 | |||||||||
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 | |||||||||
Subordinated Borrowing Due Date | Jun. 17, 2034 | |||||||||
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 | |||||||||
Subordinated Borrowing Due Date | Sep. 20, 2034 | |||||||||
Cpg Gs [Member] | ||||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||||
Loans Sold to CPG | $ 269,300 | |||||||||
Cash realized on sale of loan | $ 88,500 | |||||||||
Carrying amount of loan provided | $ 5,100 | |||||||||
Prlp [Member] | ||||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||||
Percentage of ownership investment in unconsolidated entity | 65.00% | |||||||||
Payment to be made on pro rata basis | 35.00% | |||||||||
FirstBank [Member] | ||||||||||
Servicing Liabilities At Fair Value [Line Items] | ||||||||||
Payment to be made on pro rata basis | 65.00% |
NON-CONSOLIDATED VARIABLE IN134
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Statement of financial position (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets [Abstract] | |||
Other real estate owned | $ 137,681 | $ 146,801 | |
Loans Receivable Net | 8,731,276 | 8,907,541 | |
Other Assets | 476,430 | 476,459 | |
Total assets | 11,922,455 | 12,573,019 | |
Liabilities [Abstract] | |||
Other Liabilities | 118,820 | 159,269 | |
Total liabilities | 10,136,212 | 10,878,885 | |
Stockholders Equity [Abstract] | |||
Stockholders Equity | 1,786,243 | 1,694,134 | $ 1,671,743 |
Total liabilities and stockholders' equity | $ 11,922,455 | $ 12,573,019 |
NON-CONSOLIDATED VARIABLE IN135
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Income Statement Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Variable Interest Entity [Line Items] | |||
Revenues | $ 673,246 | $ 686,894 | $ 695,297 |
Net income | $ 93,229 | $ 21,297 | $ 392,287 |
NON-CONSOLIDATED VARIABLE IN136
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Changes in Servicing Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Servicing Assets At Amortized Value [Line Items] | ||||
Balance at beginning of period | $ 24,282 | $ 22,838 | ||
Capitalization of servicing assets | 5,260 | 4,919 | $ 4,321 | |
Amortization | (3,229) | (3,159) | (3,156) | |
Adjustment To Servicing Assets For Loans Repurchased | [1] | (256) | 88 | 86 |
Adjustment to fair value | (325) | (228) | (228) | |
Balance at end of period | $ 26,244 | $ 24,282 | $ 22,838 | |
[1] | Amount represents the adjustment to fair value related to the repurchase of loans serviced for others. |
NON-CONSOLIDATED VARIABLE IN137
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Changes in Impairment Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation Allowance For Impairment Of Recognized Servicing Assets [Line Items] | |||
Balance at beginning of period | $ 136 | $ 55 | $ 212 |
Temporary impairment charges | 466 | 285 | 343 |
OTTI of servicing assets | 0 | (147) | (385) |
Recoveries | (141) | (57) | (115) |
Balance at end of period | $ 461 | $ 136 | $ 55 |
NON-CONSOLIDATED VARIABLE IN138
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Components of Net Servicing Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Servicing fees | $ 7,606 | $ 7,211 | $ 6,999 | |
Late charges and prepayment penalties | 674 | 765 | 695 | |
Other | [1] | (1) | (161) | (1,253) |
Adjustment to servicing assets for loans repurchased | [2] | 256 | (88) | (86) |
Servicing income, gross | 8,535 | 7,727 | 6,355 | |
Amortization and impairment of servicing assets | (3,554) | (3,387) | (3,384) | |
Servicing income, net | $ 4,981 | $ 4,340 | $ 2,971 | |
[1] | (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 IN139
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Key Economic Assumptions Used in Determining Fair Value at Time of Sale of Loans (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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% | 9.60% |
Discount rate | 12.00% | 11.50% | 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 | 5.90% | 7.80% | 9.10% |
Discount rate | 11.50% | 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% | 9.40% |
Discount rate | 10.00% | 9.50% | 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 | 6.30% | 7.90% | 8.90% |
Discount rate | 9.50% | 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% | 14.00% |
Discount rate | 14.30% | 13.80% | 13.90% |
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 | 9.30% | 12.90% | 12.70% |
Discount rate | 13.80% | 13.80% | 13.80% |
NON-CONSOLIDATED VARIABLE IN140
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Weighted-Averages of Key Economic Assumptions in Valuation Model (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | |
Carrying amount of servicing assets | $ 26,244 | $ 24,282 | $ 22,838 | $ 21,987 |
Fair value | $ 29,664 | |||
Weighted-average expected life | 8 years 6 months 29 days | |||
Decrease in fair value due to 10% adverse change | $ 758 | |||
Decrease in fair value due to 20% adverse change | 1,483 | |||
Decrease in fair value due to 10% adverse change | 1,413 | |||
Decrease in fair value due to 20% adverse change | $ 2,708 | |||
Weighted Average [Member] | ||||
Constant prepayment rate | 6.12% | |||
Discount rate | 11.19% |
DEPOSITS - Narratives (Detail)
DEPOSITS - Narratives (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deposits [Line Items] | |||
weighted average interest rate on total interest-bearing deposits | 0.83% | ||
Overdrafts in demand deposits that were reclassified as loans | $ 1,000,000 | $ 1,000,000 | |
Overdrafts Prearranged Lines Of Credit | 32,900,000 | 32,800,000 | |
CDs in denominations of $100,000 or higher | 3,000,000,000 | 3,600,000,000 | |
Brokered certificates of deposit | 1,439,697,000 | 2,097,483,000 | |
Unamortized broker placement fees | 2,600,000 | 3,900,000 | |
Deposit accounts issued to government agencies with a carrying value | 8,831,205,000 | 9,338,124,000 | |
Amortization Of Broker Placement Fees | 2,881,000 | 4,563,000 | $ 6,662,000 |
Certificate Of Deposits Denominations | 100,000 | ||
Accretion Of Premium From Acquisitions | 200,000 | 600,000 | |
Amortized Cost [Member] | |||
Deposits [Line Items] | |||
Deposit Liabilities Collateral Issued Financial Instruments | 583,900,000 | 678,800,000 | |
Market Value [Member] | |||
Deposits [Line Items] | |||
Deposit Liabilities Collateral Issued Financial Instruments | $ 521,300,000 | $ 600,600,000 | |
Brokered Certificate of Deposits [Member] | |||
Deposits [Line Items] | |||
Weighted Average Interest Rate of Time Deposits, $100,000 or More | 1.18% | 0.97% | |
Government [Member] | |||
Deposits [Line Items] | |||
Deposit accounts issued to government agencies with a carrying value | $ 563,700,000 | $ 577,300,000 | |
Government [Member] | Puerto Rico [Member] | |||
Deposits [Line Items] | |||
Deposit accounts issued to government agencies with a carrying value | 408,800,000 | 390,400,000 | |
Government [Member] | Virgin Islands [Member] | |||
Deposits [Line Items] | |||
Deposit accounts issued to government agencies with a carrying value | $ 154,900,000 | $ 186,900,000 |
DEPOSITS - Summary of Deposit B
DEPOSITS - Summary of Deposit Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Line Items] | ||
Non-interest bearing checking accounts | $ 1,484,155 | $ 1,336,559 |
Savings accounts | 2,518,496 | 2,459,186 |
Interest-bearing checking accounts | 1,075,929 | 1,088,651 |
Certificates of deposit | 2,312,928 | 2,356,245 |
Brokered certificates of deposit | 1,439,697 | 2,097,483 |
Total deposits | $ 8,831,205 | $ 9,338,124 |
DEPOSITS- Certificates of Depos
DEPOSITS- Certificates of Deposits Mature (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Remaining term of Maturiy, Brokdered Deposits [Abstract] | |
Three months or less | $ 609,994 |
Over three months to six months | 410,852 |
Over six months to one year | 961,619 |
Over one year to two years | 1,052,030 |
Over two years to three years | 402,077 |
Over three years to four years | 115,771 |
Over four years to five years | 193,899 |
Over five years | 6,383 |
Total | $ 3,752,625 |
DEPOSITS - Summary of Deposits
DEPOSITS - Summary of Deposits Balance (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Bearing Deposit [Member] | Minimum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 0.05% | 0.10% |
Interest Bearing Deposit [Member] | Maximum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 1.00% | 1.06% |
Savings Deposits [Member] | Minimum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 0.05% | 0.05% |
Savings Deposits [Member] | Maximum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 0.40% | 0.70% |
Certificate Of Deposits [Member] | Minimum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 0.10% | 0.10% |
Certificate Of Deposits [Member] | Maximum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 4.00% | 5.05% |
Brokered Certificate of Deposits [Member] | Minimum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 0.60% | 0.45% |
Brokered Certificate of Deposits [Member] | Maximum [Member] | ||
Deposits [Line Items] | ||
Deposits Stated Interest Rate | 2.80% | 2.80% |
DEPOSITS - Brokered Certificate
DEPOSITS - Brokered Certificates Of Deposit Mature (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | $ 1,439,697 | $ 2,097,483 |
Brokered Certificates Of Deposit Mature In One To Ninety Days [Member] | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 253,475 | |
Brokered Certificates Of Deposit Mature In One To Three Years [Member] | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 540,566 | |
BrokeredCertificatesOfDepositMatureInThreeToFiveYears [Member] | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 98,755 | |
Brokered Certificates Of Deposit Mature In Over Five Years [Member] | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 1,564 | |
Brokered Certificates Of Deposit Mature Over Three Months To Six Months [Member] | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 150,627 | |
Brokered Certificates Of Deposit Mature Over Six Months To One Year [Member] | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | $ 394,710 |
DEPOSITS - Interest Expenses on
DEPOSITS - Interest Expenses on deposits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Expense, Deposits [Abstract] | |||
Interest-bearing checking accounts | $ 4,914 | $ 5,440 | $ 6,446 |
Savings | 12,392 | 13,660 | 15,416 |
Certificates of deposit | 28,068 | 25,246 | 26,371 |
Brokered certificates of deposit | 21,928 | 24,904 | 29,894 |
Interest expense on deposits | $ 67,302 | $ 69,250 | $ 78,127 |
SECURITIES SOLD UNDER AGREEM147
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Narratives (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Weighted-average interest rates on repurchase agreements | 2.35% | 2.73% | ||
Maximum aggregate balance outstanding | [1],[2] | $ 300,000 | $ 700,000 | |
Gain Loss On Sale Of Securities Net | 6,104 | 0 | $ 262 | |
Repurchase Agreements [Member] | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Accrued interest payable on repurchase agreements | $ 1,900 | $ 4,000 | ||
Weighted average interest rate | 3.28% | 2.92% | ||
Callable Repurchase Agreements [Member] | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Weighted-average interest rates on repurchase agreements | 2.11% | |||
Maximum [Member] | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Weighted-average interest rates on repurchase agreements | 2.83% | 3.41% | ||
Maximum aggregate balance outstanding | $ 700,000 | $ 900,000 | ||
Weighted Average [Member] | ||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | ||||
Average balance outstanding | $ 616,400 | $ 769,000 | ||
[1] | As of December 31, 2016, includes $200 million that have an average rate of 2.11% and that are callable by lenders before their contractual maturities at various dates beginning on January 19, 2017. Subsequent to December 31, 2016, no lender has exercised its call option on repurchase agreements. In addition, $100 million is tied to variable rates. | |||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
SECURITIES SOLD UNDER AGREEM148
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities Sold Under Agreements to Repurchase (Detail) - USD ($) $ in Thousands | Dec. 31, 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 3.52% (December 31, 2011 - 2.50% to 4.40%) | [1],[2] | $ 300,000 | $ 700,000 |
[1] | As of December 31, 2016, includes $200 million that have an average rate of 2.11% and that are callable by lenders before their contractual maturities at various dates beginning on January 19, 2017. Subsequent to December 31, 2016, no lender has exercised its call option on repurchase agreements. In addition, $100 million is tied to variable rates. | ||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
SECURITIES SOLD UNDER AGREEM149
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities Sold Under Agreements to Repurchase (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Assets sold under agreements to repurchase interest rate | 2.35% | 2.73% | |
Securities Sold Under Agreements To Repurchase | [1],[2] | $ 300,000 | $ 700,000 |
Maximum [Member] | |||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Assets sold under agreements to repurchase interest rate | 2.83% | 3.41% | |
Securities Sold Under Agreements To Repurchase | $ 700,000 | $ 900,000 | |
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% | |
[1] | As of December 31, 2016, includes $200 million that have an average rate of 2.11% and that are callable by lenders before their contractual maturities at various dates beginning on January 19, 2017. Subsequent to December 31, 2016, no lender has exercised its call option on repurchase agreements. In addition, $100 million is tied to variable rates. | ||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
SECURITIES SOLD UNDER AGREEM150
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Schedule of Repurchase Agreement Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Repurchase Agreement [Line Items] | |||
Securities Sold Under Agreements To Repurchase | [1],[2] | $ 300,000 | $ 700,000 |
Securities Sold Under Agreements To Repurchase Mature Over Five Years [Member] | |||
Repurchase Agreement [Line Items] | |||
Securities Sold Under Agreements To Repurchase | 200,000 | ||
Securities Sold Under Agreements To Repurchase Mature Six Months To One Year [Member] | |||
Repurchase Agreement [Line Items] | |||
Securities Sold Under Agreements To Repurchase | $ 100,000 | ||
[1] | As of December 31, 2016, includes $200 million that have an average rate of 2.11% and that are callable by lenders before their contractual maturities at various dates beginning on January 19, 2017. Subsequent to December 31, 2016, no lender has exercised its call option on repurchase agreements. In addition, $100 million is tied to variable rates. | ||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
SECURITIES SOLD UNDER AGREEM151
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Schedule of Repurchase Agreement Maturity (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Repurchase Agreement [Line Items] | |||
Securities Sold Under Agreements To Repurchase | [1],[2] | $ 300,000 | $ 700,000 |
Callable Repurchase Agreements [Member] | |||
Repurchase Agreement [Line Items] | |||
Securities Sold Under Agreements To Repurchase | 200,000 | ||
Variable Rate [Member] | |||
Repurchase Agreement [Line Items] | |||
Securities Sold Under Agreements To Repurchase | $ 100,000 | ||
[1] | As of December 31, 2016, includes $200 million that have an average rate of 2.11% and that are callable by lenders before their contractual maturities at various dates beginning on January 19, 2017. Subsequent to December 31, 2016, no lender has exercised its call option on repurchase agreements. In addition, $100 million is tied to variable rates. | ||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
SECURITIES SOLD UNDER AGREEM152
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities sold under agreements to repurchase, Underlying Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amortized Cost of Underlying Securities | $ 341,557 | $ 797,770 |
Balance of Borrowings | 300,000 | 700,000 |
Approximate Fair Value of Underlying Securities | $ 339,390 | $ 793,562 |
Weighted-average interest rates on repurchase agreements | 2.35% | 2.73% |
Interest Receivable | $ 45,453 | $ 48,697 |
Repurchase Agreements [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest Receivable | 1,400 | 2,145 |
US Treasury Securities And Obligations Of Other US Government Sponsored Agencies [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amortized Cost of Underlying Securities | 126,205 | 233,175 |
Balance of Borrowings | 123,175 | 211,010 |
Approximate Fair Value of Underlying Securities | $ 125,417 | $ 230,603 |
US Treasury Securities And Obligations Of Other US Government Sponsored Agencies [Member] | Repurchase Agreements [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Weighted-average interest rates on repurchase agreements | 1.30% | 1.47% |
Mortgage Backed Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amortized Cost of Underlying Securities | $ 215,352 | $ 564,595 |
Balance of Borrowings | 176,825 | 488,990 |
Approximate Fair Value of Underlying Securities | $ 213,973 | $ 562,959 |
Mortgage Backed Securities [Member] | Repurchase Agreements [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Weighted-average interest rates on repurchase agreements | 2.20% | 2.18% |
SECURITIES SOLD UNDER AGREEM153
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Repurchase Agreements Grouped by Counterparty (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Repurchase Agreement Counterparty [Line Items] | |||
Maximum aggregate balance outstanding | [1],[2] | $ 300,000 | $ 700,000 |
Jp Morgan Chase [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Maximum aggregate balance outstanding | $ 200,000 | ||
Weighted-Average Maturity | 5 years 1 month | ||
Dean Witter Morgan Stanley [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Maximum aggregate balance outstanding | $ 100,000 | ||
Weighted-Average Maturity | 10 months | ||
[1] | As of December 31, 2016, includes $200 million that have an average rate of 2.11% and that are callable by lenders before their contractual maturities at various dates beginning on January 19, 2017. Subsequent to December 31, 2016, no lender has exercised its call option on repurchase agreements. In addition, $100 million is tied to variable rates. | ||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
ADVANCES FROM THE FEDERAL HO154
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Narratives (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Minimum amount of qualifying mortgage collateral with a market value, percent | 125.00% | |
Loans Pledged As Collateral Fair Value | $ 1,400 | $ 1,100 |
Carrying value of mortgage loans | 2,000 | 2,000 |
Additional capacity on credit facility based on collateral pledged at the FHLB | 754.3 | |
Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Carrying value of mortgage loans | $ 1,700 | $ 1,400 |
ADVANCES FROM THE FEDERAL HO155
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Summary of Advances from FHLB (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Short Term Debt [Line Items] | ||
Fixed-rate advances from FHLB, with a weighted-average interest rate of 2.31% (December 31, 2011 - 3.59%) | $ 670,000 | $ 455,000 |
long term debt [member] | ||
Short Term Debt [Line Items] | ||
Fixed-rate advances from FHLB, with a weighted-average interest rate of 2.31% (December 31, 2011 - 3.59%) | 500,000 | 455,000 |
short term debt [member] | ||
Short Term Debt [Line Items] | ||
Fixed-rate advances from FHLB, with a weighted-average interest rate of 2.31% (December 31, 2011 - 3.59%) | $ 170,000 | $ 0 |
ADVANCES FROM THE FEDERAL HO156
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Summary of Advances from FHLB (Parenthetical) (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
long term debt [member] | ||
Short Term Debt [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Interest Rate at Period End | 1.49% | 1.30% |
short term debt [member] | ||
Short Term Debt [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Interest Rate at Period End | 0.78% |
ADVANCES FROM THE FEDERAL HO157
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Advances from FHLB Mature (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Federal Home Loan Bank Advances | $ 670,000 | $ 455,000 |
One to thirty days | ||
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Federal Home Loan Bank Advances | 170,000 | |
One to three years | ||
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Federal Home Loan Bank Advances | 300,000 | |
Six months to one year [Member] | ||
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Federal Home Loan Bank Advances | 200,000 | |
One to six months | ||
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | ||
Federal Home Loan Bank Advances | $ 0 |
OTHER BORROWINGS - Components o
OTHER BORROWINGS - Components of Other Borrowings (Detail) - USD ($) $ in Thousands | Dec. 31, 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 15 - Non-Consolidated Variable Interest Entities and Servicing Assets - Trust Preferred Securities for additional information, including information about the Corporation's repurchase and cancellation of $10 million of trust preferred securities associated with these junior subordinated debentures. |
OTHER BORROWINGS - Component159
OTHER BORROWINGS - Components of Other Borrowings (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Seventy Five [Member] | ||
Debt Instrument [Line Items] | ||
Floating Interest rate on junior subordinated debentures | 3.74% | 3.28% |
Subordinated Borrowing Due Date | Jun. 17, 2034 | |
Callable step-rate notes rate | 2.75% | |
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Fifty Percent [Member] | ||
Debt Instrument [Line Items] | ||
Floating Interest rate on junior subordinated debentures | 3.50% | 3.07% |
Subordinated Borrowing Due Date | Sep. 20, 2034 | |
Callable step-rate notes rate | 2.50% |
EARNINGS PER COMMON SHARE - Cal
EARNINGS PER COMMON SHARE - Calculations of Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Net Income (Loss): | |||||
Net income | $ 93,229 | $ 21,297 | $ 392,287 | ||
Dividends on preferred stock | (223) | 0 | 0 | ||
Preferred Stock Redemption Discount | [1] | 0 | 0 | 1,659 | |
Net income attributable to common stockholders | $ 93,006 | $ 21,297 | $ 393,946 | ||
Weighted-Average Shares: | |||||
Basic weighted-average common shares outstanding | 212,818 | 211,457 | 208,752 | ||
Average potential common shares | 2,976 | 1,514 | 1,788 | ||
Diluted weighted-average number of common shares outstanding | 215,794 | 212,971 | 210,540 | ||
Income (loss) per common share: | |||||
Basic | $ 0.44 | $ 0.1 | $ 1.89 | ||
Diluted | $ 0.43 | $ 0.1 | $ 1.87 | ||
Retained Earnings [Member] | |||||
Net Income (Loss): | |||||
Net income | $ 93,229 | $ 21,297 | $ 392,287 | ||
Dividends on preferred stock | (223) | 0 | 0 | ||
Preferred Stock Redemption Discount | $ 0 | $ 0 | [1] | $ 1,659 | |
[1] | Excess of carrying amount of the Series A through E preferred stock exchanged over the fair value of new common shares issued in 2014. |
EARNINGS PER COMMON SHARE - Add
EARNINGS PER COMMON SHARE - Additional Information (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
Earnings Per Share Diluted [Line Items] | |||
Common stock, shares issued | 216,051,128 | 218,700,394 | |
Liquidation value per share | $ 25 | ||
Restricted Stock [Member] | |||
Earnings Per Share Diluted [Line Items] | |||
Unvested shares of restricted stock | 2,968,461 | 4,178,791 | |
Stock Options [Member] | |||
Earnings Per Share Diluted [Line Items] | |||
Antidilutive effect on earnings per share | 69,848 | 82,575 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 24, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock issued on the employees | 1,925,575 | ||||
Stock Issued During Period Value Restricted Stock Award Forfeitures | $ 0.1 | $ 0.1 | $ 0.1 | ||
Treasury Stock Shares Acquired | 291,759 | 222,381 | |||
Maximum [Member] | Board Of Directors [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock vesting period | 5 years | ||||
Senior Executives [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted shares | 755,223 | 483,053 | |||
Share based compensation cost | $ 3 | $ 2.3 | |||
Weighted-Average Grant Date Fair Value, Granted restricted stock | $ 3.96 | $ 4.67 | |||
Treasury Stock Shares Acquired | 226,261 | 149,463 | |||
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 | 6,846,986 | ||||
Omnibus Plan [Member] | Board Of Directors [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock issued on the employees | 130,873 | 219,531 | |||
Restricted stock vesting period | 1 year | ||||
Omnibus Plan [Member] | Senior Management [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock issued on the employees | 1,794,702 | 793,964 | |||
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] | Maximum [Member] | Senior Management [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock vesting period | 3 years | 3 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] | Minimum [Member] | Senior Management [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock vesting period | 2 years | 3 months | |||
Troubled Asset Relief Program [Member] | Senior Management [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock issued on the employees | 1,546,137 | ||||
Percentage increments repayment under TARP | 25.00% | ||||
Holding Period By The Us Treasury Of Outstanding Common Stock | 2 years | 1 year | |||
Percentage Of Appreciation | 14.00% | 14.00% | |||
Fair Value Of Restricted Stock Granted | $ 1.43 | $ 3.18 | |||
Restricted Stock Vested Subject To Tarp Percentage | 25.00% | ||||
Troubled Asset Relief Program [Member] | U S Treasury And Government [Member] | Senior Management [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock issued on the employees | 615,464 | ||||
Restricted Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share based compensation cost | $ 3.9 | $ 3.8 | $ 2.6 | ||
Number of vested shares | 683,713 | ||||
Stock based compensation expense unrecognized related to nonvested shares of restricted stock | $ 3.5 | ||||
Period for cost recognition not yet recognized | 1 year 3 months 18 days | ||||
Treasury Stock Shares Acquired | 65,498 | 72,918 | |||
Restricted Stock [Member] | Omnibus Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted-Average Grant Date Fair Value, Granted restricted stock | $ 1.87 |
STOCK-BASED COMPENSATION - Acti
STOCK-BASED COMPENSATION - Activity of Stock Options (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 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 | 1 month 6 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) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Granted shares of restricted stock | shares | 1,925,575 |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Forefeited | shares | (31,532) |
Number of vested shares | shares | (683,713) |
Weighted-Average Grant Date Fair Value, beginning of period | $ 3.34 |
Weighted-Averages Grant Date Dair Value, Forefeitures | 4.93 |
Weighted-Average Grant Date Fair Value, Vested restricted stock | 3.8 |
Weighted-Average Grant Date Fair Value, end of period | 2.58 |
Omnibus Plan [Member] | Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted-Average Grant Date Fair Value, Granted restricted stock | $ 1.87 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narratives (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class Of Stock [Line Items] | ||||
Conversion Of Stock Shares Issued1 | 852,831 | 4,597,121 | ||
Shares of preferred stock exchanged | 1,077,726 | |||
Preferred Stock Liquidation Preference | $ 25 | |||
Common Stock Par Or Stated Value Per Share | $ 0.1 | $ 0.1 | ||
Par amount of the shares issued as common stock, Aggregate value | $ 21,870 | $ 21,605 | ||
Preferred Stock Value | $ 36,104 | $ 36,104 | ||
Common Stock Shares Authorized | 2,000,000,000 | 2,000,000,000 | ||
Common stock, shares issued | 218,700,394 | 216,051,128 | ||
Preferred Stock Shares Issued | 22,004,000 | 22,004,000 | ||
Dividends Preferred Stock Cash | $ 223 | $ 0 | $ 0 | |
Shares of common stock repurchased | 291,759 | 222,381 | ||
Treasury Stock Shares | 1,254,189 | 962,430 | ||
Replenishment of the reserve fund required of at least of the original capital contributed, percent | 20.00% | |||
Restricted Stock [Member] | ||||
Class Of Stock [Line Items] | ||||
Shares of common stock repurchased | 65,498 | 72,918 | ||
Senior Executives [Member] | ||||
Class Of Stock [Line Items] | ||||
Shares of common stock repurchased | 226,261 | 149,463 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 01, 2017 | Dec. 05, 2016 | |
Class Of Stock [Line Items] | ||||||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | ||||
Common stock, par value | $ 0.1 | $ 0.1 | ||||
Common stock, shares issued | 218,700,394 | 216,051,128 | ||||
Common stock, shares outstanding | 217,446,205 | 215,088,698 | ||||
Granted shares of restricted stock | 1,925,575 | |||||
Corporation has authorized shares of preferred stock | 50,000,000 | 50,000,000 | ||||
Preferred stock, par value | $ 1 | |||||
Liquidation value per share | $ 25 | |||||
Repurchased of common stock | 291,759 | 222,381 | ||||
Treasury Stock Shares | 1,254,189 | 962,430 | ||||
Secondary Offering Of Common Stock | 23,000,000 | |||||
Purchase Of Common Stock Secondary Offering | 2,700,000 | |||||
Conversion Of Stock Shares Issued1 | 852,831 | 4,597,121 | ||||
Legal Surplus Amount | $ 52,436 | $ 42,798 | ||||
Shares Of Preferred Stock Exchanged | 1,077,726 | |||||
Legal Surplus Amount Additions | $ 9,600 | $ 2,800 | ||||
Junior Subordinated Debt [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Increase Decrease In Securities Borrowed | $ (5,500) | |||||
Minimum [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Legal surplus reserve rate | 10.00% | |||||
Omnibus Plan [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Restricted stock granted to senior executive officers | 6,846,986 | |||||
Restricted Stock [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Repurchased of common stock | 65,498 | 72,918 | ||||
Forefeited | 31,532 | |||||
Number of vested shares | 683,713 | |||||
Thomas H Lee Partners [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Percentage Of Stock Ownership | 14.50% | 9.20% | ||||
Secondary Offering Of Common Stock | 9,000,000 | |||||
Oaktree Capital Management [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Percentage Of Stock Ownership | 14.50% | 9.20% | ||||
Secondary Offering Of Common Stock | 9,000,000 | |||||
7.125% Noncumulative Perpetual Monthly Income Preferred Stock, Series A [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock dividend rate percentage | 7.125% | |||||
8.35% Noncumulative Perpetual Monthly Income Preferred Stock, Series B [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock dividend rate percentage | 8.35% | |||||
7.40% Noncumulative Perpetual Monthly Income Preferred Stock, Series C [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock dividend rate percentage | 7.40% | |||||
7.25% Noncumulative Perpetual Monthly Income Preferred Stock, Series D [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock dividend rate percentage | 7.25% | |||||
7.00% Noncumulative Perpetual Monthly Income Preferred Stock, Series E [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock dividend rate percentage | 7.00% |
STOCKHOLDERS' EQUITY - Exchange
STOCKHOLDERS' EQUITY - Exchange offer with respect to Series A through E preferred stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2015 | |
Class Of Stock [Line Items] | ||||
Liquidation value per share | $ 25 | |||
Preferred stock, shares outstanding | 1,444,146 | 1,444,146 | ||
Shares of preferred stock exchanged | 1,077,726 | |||
Preferred Stock Value | $ 36,104 | $ 36,104 | ||
Shares of common stock issued | 852,831 | 4,597,121 | ||
7.125% Noncumulative Perpetual Monthly Income Preferred Stock, Series A [Member] | ||||
Class Of Stock [Line Items] | ||||
Preferred stock dividend rate percentage | 7.125% | |||
8.35% Noncumulative Perpetual Monthly Income Preferred Stock, Series B [Member] | ||||
Class Of Stock [Line Items] | ||||
Preferred stock dividend rate percentage | 8.35% | |||
7.40% Noncumulative Perpetual Monthly Income Preferred Stock, Series C [Member] | ||||
Class Of Stock [Line Items] | ||||
Preferred stock dividend rate percentage | 7.40% | |||
7.25% Noncumulative Perpetual Monthly Income Preferred Stock, Series D [Member] | ||||
Class Of Stock [Line Items] | ||||
Preferred stock dividend rate percentage | 7.25% | |||
7.00% Noncumulative Perpetual Monthly Income Preferred Stock, Series E [Member] | ||||
Class Of Stock [Line Items] | ||||
Preferred stock dividend rate percentage | 7.00% |
EMPLOYEES' BENEFIT PLAN- Narrat
EMPLOYEES' BENEFIT PLAN- Narratives (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent | 25.00% | ||
Employee contribution percent maximum to get employer matching contribution | 4.00% | ||
Total plan expense | $ 1,100,000 | $ 1,400,000 | $ 2,200,000 |
P R | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Amount | 15,000 | 15,000 | 15,000 |
United States And Virign Islands Operations [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Amount | $ 18,000 | $ 18,000 | $ 17,500 |
OTHER NON- INTEREST INCOME- Det
OTHER NON- INTEREST INCOME- Detail of other non-interest income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Non-interest Income [Abstract] | |||
Commissions and fees- broker-dealer related | $ 789 | $ 0 | $ 459 |
Noninterest Income, Other | 8,288 | 7,259 | 6,763 |
Non Deferrable Loan Fees | 3,346 | 2,687 | 2,414 |
Other Fees And Commissions Credit Cards | 5,920 | 6,220 | 6,047 |
Gain Loss On Sale Of Loans Held For Sale | 0 | (553) | 0 |
Automated Teller Machine And Point Of Sale Fees | 8,462 | 7,213 | 6,627 |
Merchant Discount Fees | 4,095 | 9,510 | 8,181 |
Gains Losses On Extinguishment Of Debt | 4,217 | 0 | 0 |
GainOnExchangeOfTrustPreferredSecuritiesForCommonStock | 0 | 267 | 0 |
Lower Of Cost Or Market Adjustment | 0 | 191 | 0 |
Total | $ 30,900 | $ 32,794 | $ 30,491 |
OTHER NON- INTEREST EXPENSES- D
OTHER NON- INTEREST EXPENSES- Detail of other non-interest expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Non Interest Expenses [Abstract] | |||
Supplies and printing | $ 1,502 | $ 3,101 | $ 2,140 |
Reserve (release) for off-balance sheet exposures | 1,173 | 261 | (653) |
Other | 8,022 | 8,152 | 6,348 |
Amortization Of Intangible Assets | 4,896 | 5,143 | 4,943 |
Information Technology And Data Processing | 4,604 | 4,817 | 5,524 |
Losses On Sales Of Non Real Estate | 689 | 755 | 737 |
Total | $ 20,886 | $ 22,229 | $ 19,039 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||||
Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($)subsidiaries | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2010 | Dec. 31, 2016USD ($) | |
Income Tax Contingency [Line Items] | ||||||||
Number of subsidiaries from which corporation is not able to utilize losses | subsidiaries | 1 | |||||||
Percentage of dividend received deduction from controlled subsidiaries | 100.00% | |||||||
Percentage of dividend received from other taxable domestic corporations | 85.00% | |||||||
Statutory rate | 39.00% | 39.00% | 39.00% | |||||
Minimum percentage of bank net taxable income for paying Income tax at normal rate | 20.00% | |||||||
Income tax expense | $ 37,030 | $ 6,419 | $ (300,649) | |||||
New unrecognized Tax Benefits (UTBs) | $ 0 | 0 | 0 | 0 | $ 4,310 | $ 0 | ||
Percentage of national gross tax receipt | 1.00% | |||||||
National gross receipt expense | 5,700 | |||||||
Percentage of gross receipt tax credit | 0.50% | |||||||
Gross income credit amount | 2,900 | |||||||
Net Deferred Tax Assets Tax Credit Carryforwards And Temporary Differences | $ 117,000 | 127,800 | 117,000 | |||||
Cumulative Loss Position Period | 3 years | 3 years | ||||||
Valuation Allowance Deferred Tax Asset Change In Amount | $ (302,900) | |||||||
Defferred Tax Assets Other Net Operating Losses | $ 20,500 | 19,400 | 20,500 | |||||
Deferred Tax Assets Net | 296,369 | 325,661 | 296,369 | |||||
Valuation allowance | $ 207,216 | $ 201,706 | 207,216 | |||||
Accrued Interest Decreases Resulting From Settlements With Taxing Authorities | $ 1,300 | |||||||
Threshold For Net Operating Losses Deduction | 80.00% | 90.00% | ||||||
P R | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Statute of limitations under income tax act | 4 years | |||||||
U S | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Statute of limitations under income tax act | 3 years | |||||||
V I | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Statute of limitations under income tax act | 3 years | |||||||
FirstBank [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Cumulative Effect On Retained Earnings Before Tax 1 | 206,700 | |||||||
Deferred Tax Assets Current | $ 171,500 | $ 182,100 | 171,500 | |||||
Deferred Tax Assets Net | $ 308,200 | 277,400 | $ 306,400 | $ 308,200 | 277,400 | |||
Valuation allowance | $ 171,000 | $ 171,000 |
INCOME TAXES- Components of inc
INCOME TAXES- Components of income tax expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current income tax (expense) benefit | $ (13,151) | $ (6,339) | $ (5,361) |
Deferred income tax provision | (23,879) | (80) | 306,010 |
Total income tax provision | $ (37,030) | $ (6,419) | $ 300,649 |
INCOME TAXES- Reconciliations o
INCOME TAXES- Reconciliations of Income tax expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Computed income tax at statutory rate | $ (50,801) | $ (10,810) | $ (35,738) |
Federal and state taxes | 0 | (190) | (117) |
Adjustment in deferred tax due to change in tax rate | 0 | 0 | (346) |
Benefit of net exempt income | 14,995 | 9,780 | 15,202 |
Deferred tax valuation allowance | 5,976 | 2,881 | 318,380 |
(Recognition)/reversal of Unrecognized Tax Benefits | 0 | 0 | 1,763 |
National Receipt Tax Net | 0 | 0 | 628 |
Non-tax deductible expenses | (212) | 365 | (193) |
Other-net | 569 | 1,117 | 1,070 |
Total income tax provision | $ (37,030) | $ (6,419) | $ 300,649 |
Statutory rate | (39.00%) | (39.00%) | (39.00%) |
Federal and state taxes % | 0.00% | (0.70%) | (0.10%) |
Adjustment in deferred tax due to change in tax rate % | 0.00% | 0.00% | (0.40%) |
Benefit of net exempt income % | 11.50% | 35.30% | 17.00% |
Deferred tax valuation allowance % | 4.60% | 10.40% | 347.00% |
(Recognition)/reversal of Unrecognized Tax Benefits % | 0.00% | 0.00% | 2.00% |
Percentage Of National Gross Receipt Tax Net | 0.00% | 0.00% | 0.70% |
Income Tax Reconciliation Deductions Other | $ (727) | $ (3,019) | $ 0 |
Effective Income Tax Rate Reconciliation Deductions Other | (0.60%) | (10.90%) | 0.00% |
Non-tax deductible expenses % | (0.20%) | 1.30% | (0.20%) |
Other-net % | 0.30% | 4.00% | 1.20% |
Total income tax provision % | (28.60%) | (23.20%) | (328.20%) |
Income Tax Rate Reconciliation NOL Carryforwards | $ (6,396) | $ (7,717) | $ 0 |
Effective Income Tax Rate Reconciliations NOL Carryforwards | (4.90%) | (27.80%) | 0.00% |
Income Tax Rate Reconciliation Prior Periods Income Tax Returns | $ (434) | $ 1,174 | $ 0 |
Effecetive Income Tax Rate Reconciliations Prior Periods Income Tax Returns | (0.30%) | 4.20% | 0.00% |
INCOME TAXES- Significant compo
INCOME TAXES- Significant components of deferred tax assets and liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Tax Assets [Abstract] | |||
Allowance for loan and lease losses | $ 79,330 | $ 87,769 | |
Unrealized losses on derivative activities | 78 | 48 | |
Legal reserve | 1,807 | 2,953 | |
Reserve for insurance premium cancellations | 724 | 631 | |
Net operating loss and donation carryforward available | 374,091 | 378,160 | |
Impairment on investments | 4,438 | 3,178 | |
Tax credits available for carryforward | 8,006 | 10,714 | |
Unrealized net loss on equity investments | 187 | 6,236 | |
Unrealized net loss on available for sale securities | 502 | 739 | |
Settlement payment - closing agreement | 7,313 | 7,313 | |
Unrealized net loss on REO valuation | 11,467 | 11,633 | |
Other | 15,642 | 17,993 | |
Deferred tax asset | 503,585 | 527,367 | |
Valuation allowance | (207,216) | (201,706) | |
Total deferred tax assets, net of valuation allowance | 296,369 | 325,661 | |
Deferred Tax Liabilities [Abstract] | |||
Differences between the assigned values and tax bases of assets and liabilities recognized in purchase business combinations | 5,247 | 5,712 | |
Unrealized gain on other investments | 468 | 468 | |
Other | 8,997 | 8,218 | |
Deferred tax liability | 14,712 | 14,398 | |
Deferred income taxes, net | 281,657 | 311,263 | |
Reconciliation of the Change in Unrecognized Tax Benefits [Abstracts] | |||
Balance at beginning of year | 0 | 0 | $ 4,310 |
Increases related to positions taken during prior years | 0 | 0 | (1,763) |
Audit settlement | 0 | 0 | 2,547 |
Balance at end of year | $ 0 | $ 0 | $ 0 |
INCOME TAXES- Net Operating Los
INCOME TAXES- Net Operating Losses And Tax Credit Carryforwards (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Tax Credit Carry forward [Line Items] | ||
Deferred tax asset | $ 503,585 | $ 527,367 |
Deferred tax asset, net of valuation allowance | 207,216 | 201,706 |
Deferred Tax Assets Net | $ 296,369 | $ 325,661 |
INCOME TAXES- Net Operating 176
INCOME TAXES- Net Operating Losses Carryforwards (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss and donation carryforward available | $ 374,091 | $ 378,160 |
LEASE COMMITMENTS- Future oblig
LEASE COMMITMENTS- Future obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | $ 10,735 | ||
2,018 | 10,282 | ||
2,019 | 9,473 | ||
2,020 | 7,490 | ||
2,021 | 6,270 | ||
2022 and later years | 41,928 | ||
Total | 86,178 | ||
Operating Leases Rent Expense Net | $ 11,300 | $ 10,900 | $ 10,600 |
Leases expiring up to | Dec. 31, 2050 |
FAIR VALUE - Additional Informa
FAIR VALUE - Additional Information (Detail) | Dec. 31, 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 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | $ 1,881,920 | $ 1,886,395 |
Derivatives, included in assets: | ||
Derivatives, included in assets | 554 | 806 |
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 753 | 921 |
Forward Contracts [Member] | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 201 | 123 |
Equity Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 408 | 0 |
U S Treasury Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 7,509 | 7,497 |
Us Government Agencies Debt Securities Noncallable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 356,919 | 315,467 |
Us Government Agencies Debt Securities Callable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 1,469,463 | 1,509,807 |
Puerto Rico Government Obligations [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 26,828 | 28,217 |
Private Label Mbs [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 20,693 | 25,307 |
Interest Rate Cap [Member] | Purchase | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 554 | 806 |
Interest Rate Cap [Member] | Written | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 552 | 798 |
Other Available For Sale Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
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] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 408 | 0 |
Fair Value Inputs Level 1 [Member] | U S Treasury Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 7,509 | 7,497 |
Fair Value Inputs Level 1 [Member] | Us Government Agencies Debt Securities Noncallable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Us Government Agencies Debt Securities Callable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Puerto Rico Government Obligations [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Private Label Mbs [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Interest Rate Cap [Member] | Purchase | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Interest Rate Cap [Member] | Written | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Other Available For Sale Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Forward Contracts [Member] | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 201 | 123 |
Fair Value Inputs Level 2 [Member] | Equity Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 2 [Member] | U S Treasury Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Us Government Agencies Debt Securities Noncallable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 356,919 | 315,467 |
Fair Value Inputs Level 2 [Member] | Us Government Agencies Debt Securities Callable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 1,469,463 | 1,509,807 |
Fair Value Inputs Level 2 [Member] | Puerto Rico Government Obligations [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 24,707 | 26,327 |
Fair Value Inputs Level 2 [Member] | Private Label Mbs [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Interest Rate Cap [Member] | Purchase | ||
Derivatives, included in assets: | ||
Derivatives, included in assets | 554 | 806 |
Fair Value Inputs Level 2 [Member] | Interest Rate Cap [Member] | Written | ||
Derivatives, included in liabilities: | ||
Derivatives, included in liabilities | 552 | 798 |
Fair Value Inputs Level 2 [Member] | Other Available For Sale Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
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] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 3 [Member] | U S Treasury Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Us Government Agencies Debt Securities Noncallable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Us Government Agencies Debt Securities Callable [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 0 | 0 |
Fair Value Inputs Level 3 [Member] | Puerto Rico Government Obligations [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 2,121 | 1,890 |
Fair Value Inputs Level 3 [Member] | Private Label Mbs [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
Investment securities available for sale | 20,693 | 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] | Other Available For Sale Securities [Member] | ||
Fair Value Investment Securities Available For Sale [Abstract] | ||
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) - Available for sale Securities [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | [1] | $ 27,297 | $ 36,212 | $ 43,292 |
Total gains or (losses) (realized/unrealized): | ||||
Included in earnings | [1] | (387) | (628) | (388) |
Included in other comprehensive income | [1] | 1,586 | 1,623 | 2,404 |
Sales | [1] | 0 | 0 | (4,855) |
Principal Repayments And Amortization | [1] | (5,582) | (10,010) | (9,364) |
Purchases | [1] | 0 | 100 | 5,123 |
Ending balance | [1] | $ 22,914 | $ 27,297 | $ 36,212 |
[1] | Amounts mostly related to private label mortgage-backed securities. |
FAIR VALUE - Assets and Liab181
FAIR VALUE - Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 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 | 14.10% | 14.50% |
Fair value input prepayment rate | 13.80% | 25.00% |
Unobservable input projected cumulative loss rate | 4.00% | |
Private Label Mbs [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 20,693 | |
Discount rate used for calculation of mortgage servicing rights value | 14.10% | |
Puerto Rico Government Obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 2,121 | |
Unobservable input prepayment rate | 3.00% | |
Discounted Cash Flow [Member] | Private Label Mbs [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Valuation technique | Discounted cash flows | |
Discounted Cash Flow [Member] | Puerto Rico Government Obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Valuation technique | Discounted cash flows | |
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 | 12.88% | |
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] | ||
Fair value input prepayment rate | 6.50% | |
Fair value projected Cumulative Loss Rate | 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 | 14.43% | |
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] | ||
Fair value input prepayment rate | 22.50% | |
Fair value projected Cumulative Loss Rate | 8.60% |
FAIR VALUE - Change in unrealiz
FAIR VALUE - Change in unrealized losses included in earnings (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Available for sale Securities [Member] | ||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Included in earnings | [1] | $ (387) | $ (628) | $ (388) |
[1] | 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 | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Mortgage servicing rights | $ 26,244 | $ 24,282 | $ 22,838 | $ 21,987 | |||
Fair Value Inputs Level 1 [Member] | Fair Value Measurements Nonrecurring [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Loans receivable | 0 | [1] | 0 | [2] | 0 | [3] | |
Other Real Estate Owned | 0 | [4] | 0 | [5] | 0 | [6] | |
Mortgage servicing rights | 0 | [7] | 0 | [8] | 0 | [9] | |
Loans held for sale | 0 | [10] | 0 | [11] | |||
Fair Value Inputs Level 2 [Member] | Fair Value Measurements Nonrecurring [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Loans receivable | 0 | [1] | 0 | [2] | 0 | [3] | |
Other Real Estate Owned | 0 | [4] | 0 | [5] | 0 | [6] | |
Mortgage servicing rights | 0 | [7] | 0 | [8] | 0 | [9] | |
Loans held for sale | 0 | [10] | 0 | [11] | |||
Fair Value Inputs Level 3 [Member] | Fair Value Measurements Nonrecurring [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Loans receivable | 442,081 | [1] | 303,095 | [2] | 446,816 | [3] | |
Other Real Estate Owned | 137,681 | [4] | 146,801 | [5] | 124,003 | [6] | |
Mortgage servicing rights | 26,244 | [7] | 24,282 | [8] | 22,838 | [9] | |
Loans held for sale | 8,135 | [10] | 54,641 | [11] | |||
Fair Value Inputs Level 3 [Member] | Fair Value Measurements Nonrecurring [Member] | Loans Receivable [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Assets Fair Value Adjustment | (49,884) | [1] | (27,245) | [2] | (43,318) | [3] | |
Fair Value Inputs Level 3 [Member] | Fair Value Measurements Nonrecurring [Member] | Other Real Estate Owned [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Assets Fair Value Adjustment | (7,873) | [4] | (10,494) | [5] | (9,656) | [6] | |
Fair Value Inputs Level 3 [Member] | Fair Value Measurements Nonrecurring [Member] | Mortgage Servicing Rights [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Assets Fair Value Adjustment | $ (325) | [7] | (228) | [8] | (228) | [9] | |
Fair Value Inputs Level 3 [Member] | Fair Value Measurements Nonrecurring [Member] | Loans Held For Sale [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Assets Fair Value Adjustment | $ 338 | [10] | $ 0 | [11] | |||
[1] | Consists 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] | Consists 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] | Consists 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. | ||||||
[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) that are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. | ||||||
[5] | 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) that are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. | ||||||
[6] | 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) that are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. | ||||||
[7] | 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 6.12%, Discount rate 11.19%. | ||||||
[8] | 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 9.07%, Discount rate 10.65%. | ||||||
[9] | 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 9.74%, Discount rate 10.60%. | ||||||
[10] | The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans. | ||||||
[11] | The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans. |
FAIR VALUE - Impairment of V184
FAIR VALUE - Impairment of Valuation Adjustments were Recorded for Assets Recognized at Fair Value (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Repayment rate used for the calculation of mortgage servicing rights value | 13.80% | 25.00% | |
Discount rate used for calculation of mortgage servicing rights value | 14.10% | 14.50% | |
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 | 6.12% | 9.07% | 9.74% |
Discount rate used for calculation of mortgage servicing rights value | 11.19% | 10.65% | 10.60% |
FAIR VALUE - Qualitative Inform
FAIR VALUE - Qualitative Information Regarding Fair Value Measurements for Level 3 Financial Instruments (Detail) | 12 Months Ended |
Dec. 31, 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 Flows |
Valuation technique | Weighted-average prepayment rate of 6.12%; weighted average discount rate of 11.19% |
FAIR VALUE - Fair Value (Detail
FAIR VALUE - Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Investment securities available for sale | $ 1,881,920 | $ 1,886,395 |
Less: allowance for loan and lease losses | (205,603) | (240,710) |
Derivatives, included in assets | 554 | 806 |
Held To Maturity Securities | 156,190 | 161,483 |
Liabilities: | ||
Other borrowings | 216,187 | 226,492 |
Derivatives, included in liabilities | 753 | 921 |
Carrying Reported Amount Fair Value Disclosure [Member] | ||
Assets: | ||
Cash and due from banks and money market investments | 299,685 | 752,458 |
Investment securities available for sale | 1,881,920 | 1,886,395 |
Other equity securities | 42,992 | 32,169 |
Loans held for sale | 50,006 | 35,869 |
Loans, held for investment | 8,886,873 | 9,112,382 |
Less: allowance for loan and lease losses | (205,603) | (240,710) |
Loans held for investment, net of allowance | 8,681,270 | 8,871,672 |
Derivatives, included in assets | 554 | 806 |
Held To Maturity Securities | 156,190 | 161,483 |
Liabilities: | ||
Deposits | 8,831,205 | 9,338,124 |
Securities sold under agreements to repurchase | 300,000 | 700,000 |
Advances from FHLB | 670,000 | 455,000 |
Other borrowings | 216,187 | 226,492 |
Derivatives, included in liabilities | 753 | 921 |
Estimate Of Fair Value Fair Value Disclosure [Member] | ||
Assets: | ||
Cash and due from banks and money market investments | 299,685 | 752,458 |
Investment securities available for sale | 1,881,920 | 1,886,395 |
Other equity securities | 42,992 | 32,169 |
Loans held for sale | 52,707 | 36,844 |
Loans held for investment, net of allowance | 8,455,104 | 8,768,152 |
Derivatives, included in assets | 554 | 806 |
Held To Maturity Securities | 132,759 | 131,544 |
Liabilities: | ||
Deposits | 8,838,606 | 9,334,073 |
Securities sold under agreements to repurchase | 335,840 | 752,048 |
Advances from FHLB | 669,687 | 453,182 |
Other borrowings | 171,374 | 142,846 |
Derivatives, included in liabilities | 753 | 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 | 299,685 | 752,458 |
Investment securities available for sale | 7,917 | 7,497 |
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 |
Held To Maturity Securities | 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 | 1,851,089 | 1,851,601 |
Other equity securities | 42,992 | 32,169 |
Loans held for sale | 42,921 | 28,709 |
Loans held for investment, net of allowance | 0 | 0 |
Derivatives, included in assets | 554 | 806 |
Held To Maturity Securities | 0 | 0 |
Liabilities: | ||
Deposits | 8,838,606 | 9,334,073 |
Securities sold under agreements to repurchase | 335,840 | 752,048 |
Advances from FHLB | 669,687 | 453,182 |
Other borrowings | 0 | 0 |
Derivatives, included in liabilities | 753 | 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 | 22,914 | 27,297 |
Other equity securities | 0 | 0 |
Loans held for sale | 9,786 | 8,135 |
Loans held for investment, net of allowance | 8,455,104 | 8,768,152 |
Derivatives, included in assets | 0 | 0 |
Held To Maturity Securities | 132,759 | 131,544 |
Liabilities: | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Advances from FHLB | 0 | 0 |
Other borrowings | 171,374 | 142,846 |
Derivatives, included in liabilities | $ 0 | $ 0 |
SUPPLEMENTAL CASH FLOW INFOR187
SUPPLEMENTAL CASH FLOW INFORMATION - Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash paid for: | ||||
Interest on borrowings | $ 127,707 | $ 93,053 | $ 102,402 | |
Income tax | 3,198 | 4,494 | 7,751 | |
Non-cash investing and financing activities: | ||||
Additions to other real estate owned | 47,808 | 76,725 | 48,601 | |
Additions to repossed properties | 52,628 | 75,279 | 92,266 | |
Loan securitizations | 338,333 | 285,995 | 198,712 | |
Loans held for investment transferred to held for sale | 10,332 | 0 | 0 | |
Capitalization of servicing assets | 5,260 | 4,919 | 4,321 | |
Other Assets Held For Sale | 1,221 | 0 | 0 | |
Exchange of preferred stock-Series A through E | 0 | 0 | 26,022 | |
Common Stock Issued In Exchange For Trust Preferred Securities Value | 0 | 5,628 | 0 | |
Trust Preferred Securities Exchanged Liquidation Value | 0 | 5,303 | 0 | |
Transfer Of Loans Held For Sale To Portfolio Loans 1 | 1,443 | 40,086 | 0 | |
Fair Value Of Assets Acquired | $ 540,339 | |||
Deposits [Member] | ||||
Non-cash investing and financing activities: | ||||
Liabilities Assumed1 | (523,517) | 0 | (523,517) | 0 |
Loans [Member] | ||||
Non-cash investing and financing activities: | ||||
Fair Value Of Assets Acquired | 311,410 | 0 | 311,410 | 0 |
Property Plant And Equipment [Member] | ||||
Non-cash investing and financing activities: | ||||
Fair Value Of Assets Acquired | 5,450 | 0 | 5,450 | 0 |
Cash [Member] | ||||
Non-cash investing and financing activities: | ||||
Fair Value Of Assets Acquired | 217,659 | |||
Core Deposits [Member] | ||||
Non-cash investing and financing activities: | ||||
Fair Value Of Assets Acquired | 5,820 | 0 | 5,820 | 0 |
Other Liabilities [Member] | ||||
Non-cash investing and financing activities: | ||||
Liabilities Assumed1 | $ (3,379) | |||
Preferred Stock [Member] | ||||
Non-cash investing and financing activities: | ||||
Exchange of preferred stock-Series A through E | 0 | 0 | 26,943 | |
Common Stock [Member] | ||||
Non-cash investing and financing activities: | ||||
New stock issued | 0 | 0 | 24,363 | |
Common Stock Issued In Exchange For Trust Preferred Securities Value | $ 0 | $ 85 | $ 0 |
REGULATORY MATTERS, COMMITME188
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jul. 31, 2013 | Feb. 16, 2011 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2016 | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||
Shares Of Preferred Stock Exchanged | 1,077,726 | ||||||
Cash dividends declared on preferred stock | $ 223,000 | $ 0 | $ 0 | ||||
Proceeds from sale of available-for-sale securities | $ 219,780,000 | $ 0 | $ 4,861,000 | ||||
Loans acquired on exchange of loan held for sale | $ 136,100,000 | ||||||
Common Equity Tier 1 Capital Conservation Buffer First Year | 0.625% | ||||||
Threshold For Deposits Insurance Assesment Surcharge | $ 10,000,000,000 | ||||||
Deposits Insurance Surcharge Assesment Base | $ 100 | ||||||
Decrease Increase Federal Deposit Insurance Corporation Premium Expense | $ 1,600,000 | ||||||
Basel III [Member] | |||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||
Capital Conservation Buffer | 2.50% | ||||||
Common Equity Tier 1 Capital To Risk Weight Assets Ratio | 4.50% | ||||||
Common equity tier 1 capital to risk weight assets ratio plus common equity tier1 capital conservation buffer | 7.00% | ||||||
Total Tier 1 Capital To Risk Weight Assets Ratio | 6.00% | ||||||
Total Tier 1 Capital To Risk Weight Assets Ratio Plus Common Equity Tier 1 Capital Conservation Buffer | 8.50% | ||||||
Total Tier 1 Capital And Tier 2 Capital To Risk Weight Assets Ratio Plus Common Equity Tier 1 Capital Conservation Buffer | 10.50% | ||||||
Leverage Ratio | 4.00% | ||||||
Total Tier1 Capital And Tier 2 Capital To Risk Weight Assets Ratio | 8.00% | ||||||
Cpg Gs [Member] | |||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||
Cash realized on sale of loan | $ 88,500,000 |
REGULATORY MATTERS, COMMITME189
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES - Regulatory capital positions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Securitization of FHA/VA mortgage loan production into GNMA mortgage-backed securities | $ 338,300 | |
To originate loans [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | 41,271 | $ 59,747 |
Unused personal lines of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | 667,552 | 687,585 |
Commercial lines of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | 421,437 | 361,226 |
Commercial Letters Of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | 47,515 | 24,359 |
Standby letters of credit [Member] [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | 2,556 | 3,577 |
Commitments To Sell Loans [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | 119,679 | 49,998 |
First Ban Corp [Member] | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total Capital | 1,921,329 | 1,828,559 |
Common Equity Tier 1 Capital To Risk Weight Assets | 1,597,117 | 1,546,678 |
Tier 1 Capital | 1,597,117 | 1,546,678 |
Tier 1 Leverage Capital | 1,597,117 | 1,546,678 |
Total Capital Required For Capital Adequacy | 720,329 | 731,164 |
Common Equity Tier 1 Capital To Risk Weight Assets Capital Adequacy | 405,185 | 411,280 |
Tier 1 Risk Based Capital Required for Capital Adequacy | 540,247 | 548,373 |
Tier 1 Leverage Capital Required for Capital Adequacy | $ 466,376 | $ 506,322 |
Total Risk Based Capital Ratio | 21.34% | 20.01% |
Common Equity Tier 1 Capital To Risk Weight Assets Ratio | 17.74% | 16.92% |
Tier 1 Risk Based Capital Ratio | 17.74% | 16.92% |
Tier 1 Leverage Ratio | 13.70% | 12.22% |
Total Risk Based Capital Ratio Adequately Capitalized | 8.00% | 8.00% |
Common Equity Tier 1 Capital To Risk Weight Assets Ratio Capital Adequacy | 4.50% | 4.50% |
Tier 1 Risk Based Capital Ratio Adequately Capitalized | 6.00% | 6.00% |
Tier 1 Leverage Ratio Adequately Capitalized | 4.00% | 4.00% |
FirstBank [Member] | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total Capital | $ 1,872,120 | $ 1,802,711 |
Common Equity Tier 1 Capital To Risk Weight Assets | 1,523,332 | 1,493,478 |
Tier 1 Capital | 1,757,642 | 1,685,656 |
Tier 1 Leverage Capital | 1,757,642 | 1,685,656 |
Total Capital Required For Capital Adequacy | 720,091 | 730,824 |
Common Equity Tier 1 Capital To Risk Weight Assets Capital Adequacy | 405,051 | 411,088 |
Tier 1 Risk Based Capital Required for Capital Adequacy | 540,068 | 548,118 |
Tier 1 Leverage Capital Required for Capital Adequacy | 465,740 | 505,648 |
Total Capital Required to be Well Capitalized | 900,114 | 913,530 |
Common Equity Tier 1 Capital To Risk Weight Assets Well Capitalized | 585,074 | 593,794 |
Tier 1 Risk Based Capital Required to be Well Capitalized | 720,091 | 730,824 |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 582,174 | $ 632,060 |
Total Risk Based Capital Ratio | 20.80% | 19.73% |
Common Equity Tier 1 Capital To Risk Weight Assets Ratio | 16.92% | 16.35% |
Tier 1 Risk Based Capital Ratio | 19.53% | 18.45% |
Tier 1 Leverage Ratio | 15.10% | 13.33% |
Total Risk Based Capital Ratio Adequately Capitalized | 8.00% | 8.00% |
Common Equity Tier 1 Capital To Risk Weight Assets Ratio Capital Adequacy | 4.50% | 4.50% |
Tier 1 Risk Based Capital Ratio Adequately Capitalized | 6.00% | 6.00% |
Tier 1 Leverage Ratio Adequately Capitalized | 4.00% | 4.00% |
Total Risk Based Capital Ratio Well Capitalized | 10.00% | 10.00% |
Common Equity Tier1 Capital To Risk Weight Assets Ratio Well Capitalized | 6.50% | 6.50% |
Tier 1 Risk Based Capital to Risk Weighted Well Capitalized | 8.00% | 8.00% |
Tier 1 Leverage Ratio Well Capitalized | 5.00% | 5.00% |
DERIVATIVE INSTRUMENTS AND H190
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narratives (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Credit risk of related to derivative instruments with positive fair values | $ 0.6 | $ 0.8 |
DERIVATIVE INSTRUMENTS AND H191
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Interest Rate Swaps (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Pay fixed/receive floating : | |||
Derivative Notional Amount | [1] | $ 216,020 | $ 271,632 |
[1] | (1) Notional amounts are presented on a gross basis with no netting of offsetting exposure positions. |
DERIVATIVE INSTRUMENTS AND H192
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amounts of All Derivative Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Economic undesignated hedges: | |||
Derivative Notional Amount | [1] | $ 216,020 | $ 271,632 |
Forward Contracts [Member] | |||
Economic undesignated hedges: | |||
Derivative Notional Amount | [1] | 33,000 | 30,000 |
Nondesignated [Member] | Interest Rate Cap [Member] | Purchase | |||
Economic undesignated hedges: | |||
Derivative Notional Amount | [1] | 91,510 | 120,816 |
Nondesignated [Member] | Interest Rate Cap [Member] | Written | |||
Economic undesignated hedges: | |||
Derivative Notional Amount | [1] | $ 91,510 | $ 120,816 |
[1] | (1) Notional amounts are presented on a gross basis with no netting of offsetting exposure positions. |
DERIVATIVE INSTRUMENTS AND H193
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Fair Value of Derivative Instruments and Location in Statement of Financial Condition (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives Fair Value [Line Items] | ||
Derivatives, included in assets | $ 554 | $ 806 |
Derivatives, included in liabilities | 753 | 921 |
Other Assets [Member] | Interest Rate Cap [Member] | Purchase | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in assets | 554 | 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 | 0 | 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 | 552 | 798 |
Other Liabilities [Member] | Forward Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in liabilities | $ 201 | $ 123 |
DERIVATIVE INSTRUMENTS AND H194
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Derivative Instruments on Statement of Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Economic undesignated hedges: | |||
Total gain (loss) on derivatives | $ (78) | $ 164 | $ 936 |
Interest Income Loans [Member] | Interest Rate Swap [Member] | |||
Economic undesignated hedges: | |||
Total gain (loss) on derivatives | 0 | 0 | 1,258 |
Interest Income Loans [Member] | Interest Rate Cap [Member] | |||
Economic undesignated hedges: | |||
Total gain (loss) on derivatives | 0 | 139 | 0 |
Mortgage Banking Activities [Member] | Forward Contracts [Member] | |||
Economic undesignated hedges: | |||
Total gain (loss) on derivatives | $ (78) | $ 25 | $ (322) |
OFFESTTING OF ASSETS AND LIABIL
OFFESTTING OF ASSETS AND LIABILITIES - Offsetting of financial assets and liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Offsetting [Abstract] | ||
Gross amount recognized of derivative asset | $ 554 | $ 806 |
Gross amount of derivatives assets offset | 0 | 0 |
Net asset amount of assets presented in the Statement of Financial Condition | 554 | 806 |
Obligation to return Financial instrument, derivatives assets | (554) | (806) |
Obligation to return Cash Collateral, derivative assets | 0 | 0 |
Net derivative asset amount not offset | 0 | 0 |
Gross amount recognized of repurchase agreements | 200,000 | 600,000 |
Gross amount of repurchase agreements offset | (200,000) | (200,000) |
Net repurchase agreements amount offset presented | 0 | 400,000 |
Right to claim Financial instrument, repurchase agreements | 0 | (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 | 200,554 | 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 | 554 | 806 |
Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Collateral Obligation To Return Securities | (554) | (806) |
Derivative Asset Securities Purchased Under Agreements To Resell SecuritiesBorrowed Collateral Obligation To Return Cash | 0 | 0 |
Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Amount Offset Against Collateral | $ 0 | $ 0 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016numberofreportableunits | |
Number of reportable segments | 6 |
SEGMENT INFORMATION - Informati
SEGMENT INFORMATION - Information about Reportable Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Interest income | $ 585,292 | $ 605,569 | $ 633,949 |
Net (charge) credit for transfer of funds | 0 | 0 | 0 |
Interest expense | (101,174) | (103,303) | (115,876) |
Net interest income | 484,118 | 502,266 | 518,073 |
Provision for loan and lease losses | (86,733) | (172,045) | (109,530) |
Non-interest income | 87,954 | 67,882 | 68,627 |
Direct non-interest expenses | (253,954) | (279,957) | (283,980) |
Segment income | 231,385 | 118,146 | 193,190 |
Average earnings assets | 11,466,576 | 11,862,290 | 12,046,932 |
Mortgage Banking [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 138,955 | 141,820 | 115,997 |
Net (charge) credit for transfer of funds | (49,435) | (49,149) | (37,375) |
Interest expense | 0 | 0 | 0 |
Net interest income | 89,520 | 92,671 | 78,622 |
Provision for loan and lease losses | (24,873) | (30,017) | (17,605) |
Non-interest income | 19,531 | 16,027 | 13,515 |
Direct non-interest expenses | (38,170) | (37,345) | (39,444) |
Segment income | 46,008 | 41,336 | 35,088 |
Average earnings assets | 2,562,245 | 2,607,230 | 2,142,122 |
Consumer Loan [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 179,485 | 194,961 | 215,170 |
Net (charge) credit for transfer of funds | 13,996 | 17,260 | 17,629 |
Interest expense | (24,787) | (23,774) | (24,445) |
Net interest income | 168,694 | 188,447 | 208,354 |
Provision for loan and lease losses | (34,246) | (46,657) | (79,932) |
Non-interest income | 44,535 | 41,854 | 40,018 |
Direct non-interest expenses | (112,787) | (133,397) | (126,290) |
Segment income | 66,196 | 50,247 | 42,150 |
Average earnings assets | 1,951,214 | 1,951,047 | 1,967,202 |
Commercial And Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 123,084 | 133,067 | 163,242 |
Net (charge) credit for transfer of funds | (26,364) | (17,299) | (12,364) |
Interest expense | 0 | 0 | 0 |
Net interest income | 96,720 | 115,768 | 150,878 |
Provision for loan and lease losses | (28,578) | (101,604) | (40,084) |
Non-interest income | 7,811 | 12,487 | 5,241 |
Direct non-interest expenses | (40,676) | (42,470) | (46,963) |
Segment income | 35,277 | (15,819) | 69,072 |
Average earnings assets | 2,497,037 | 2,891,988 | 3,613,354 |
Treasury And Investments [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 50,372 | 49,534 | 54,223 |
Net (charge) credit for transfer of funds | 60,787 | 36,908 | 20,463 |
Interest expense | (57,924) | (60,221) | (68,517) |
Net interest income | 53,235 | 26,221 | 6,169 |
Provision for loan and lease losses | 0 | 0 | 0 |
Non-interest income | 5,423 | (15,897) | 264 |
Direct non-interest expenses | (4,047) | (3,840) | (5,368) |
Segment income | 54,611 | 6,484 | 1,065 |
Average earnings assets | 2,616,877 | 2,740,120 | 2,691,906 |
United States Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 56,037 | 46,804 | 44,882 |
Net (charge) credit for transfer of funds | 1,016 | 12,280 | 11,647 |
Interest expense | (15,240) | (16,192) | (19,273) |
Net interest income | 41,813 | 42,892 | 37,256 |
Provision for loan and lease losses | 1,369 | 7,955 | 27,650 |
Non-interest income | 3,554 | 2,795 | 2,450 |
Direct non-interest expenses | (30,678) | (28,674) | (26,596) |
Segment income | 16,058 | 24,968 | 40,760 |
Average earnings assets | 1,226,633 | 1,024,939 | 976,151 |
Virgin Islands Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 37,359 | 39,383 | 40,435 |
Net (charge) credit for transfer of funds | 0 | 0 | 0 |
Interest expense | (3,223) | (3,116) | (3,641) |
Net interest income | 34,136 | 36,267 | 36,794 |
Provision for loan and lease losses | (405) | (1,722) | 441 |
Non-interest income | 7,100 | 10,616 | 7,139 |
Direct non-interest expenses | (27,596) | (34,231) | (39,319) |
Segment income | 13,235 | 10,930 | 5,055 |
Average earnings assets | $ 612,570 | $ 646,966 | $ 656,197 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Reportable Segment Financial Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Net Income (Loss): | ||||
Segment income | $ 231,385 | $ 118,146 | $ 193,190 | |
Other non-interest income (loss) | [1] | 0 | 13,443 | (7,279) |
Other operating expenses | [2] | (101,126) | (103,873) | (94,273) |
Income before income taxes | 130,259 | 27,716 | 91,638 | |
Income tax (expense) benefit | (37,030) | (6,419) | 300,649 | |
Net income | 93,229 | 21,297 | 392,287 | |
Average assets: | ||||
Total average earning assets for segments | 11,466,576 | 11,862,290 | 12,046,932 | |
Other average earning assets | [1] | 0 | 0 | 1,943 |
Average non-earning assets | 923,566 | 919,263 | 598,570 | |
Total consolidated average assets | $ 12,390,142 | $ 12,781,553 | $ 12,647,445 | |
[1] | The bargain purchase gain on the acquisition of assets and assumption of deposits from Doral Bank in 2015 as well as the activities related to FirstBank's equity interest in CPG/GS are presented as Other non-interest income (loss) and the investment in CPG/GS is presented as Other average earning assets in the tables above. | |||
[2] | Expenses pertaining to corporate administrative functions that support the operating 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. |
SEGMENT INFORMATION - revenues
SEGMENT INFORMATION - revenues and selected balance sheet data by geography based on the location (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 673,246 | $ 686,894 | $ 695,297 | |
Total assets | 11,922,455 | 12,573,019 | ||
Loans | 8,886,873 | 9,112,382 | ||
Deposits | 8,831,205 | 9,338,124 | ||
Brokered CDs allocated to Puerto Rico operations | 1,439,697 | 2,097,483 | ||
P R | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 568,180 | 575,016 | 588,744 | |
Total assets | 9,765,530 | 10,648,179 | 10,969,305 | |
Loans | 6,926,719 | 7,332,274 | 7,544,845 | |
Deposits | [1] | 6,291,353 | 6,747,638 | 6,687,844 |
Brokered CDs allocated to Puerto Rico operations | 1,400,000 | 2,100,000 | 3,100,000 | |
U S | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 60,607 | 61,879 | 58,979 | |
Total assets | 1,499,548 | 1,202,318 | 1,072,962 | |
Loans | 1,382,440 | 1,125,501 | 982,713 | |
Deposits | [2] | 1,564,839 | 1,606,723 | 1,836,430 |
V I | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 44,459 | 49,999 | 47,574 | |
Total assets | 657,377 | 722,522 | 685,568 | |
Loans | 627,720 | 690,476 | 649,813 | |
Deposits | $ 975,013 | $ 983,763 | $ 959,671 | |
[1] | For 2016, 2015, and 2014, includes $1.4 billion, $2.1 billion, and $2.9 billion, respectively, of brokered CDs allocated to Puerto Rico operations. | |||
[2] | For 2016 includes $60.1 million of brokered CDs allocated to the United States operations. |
FIRST BANCORP. (Holding Comp200
FIRST BANCORP. (Holding Company Only) Financial Information - Statements of Financial Condition (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | |||
Cash and due from banks | $ 289,591 | $ 532,985 | $ 779,147 |
Money market investments | 10,094 | 219,473 | 16,961 |
Investment securities available for sale, at market: | |||
Other investment securities | 1,542,530 | 1,092,833 | |
Loans Receivable Net | 8,731,276 | 8,907,541 | |
Other assets | 476,430 | 476,459 | |
Total assets | 11,922,455 | 12,573,019 | |
Liabilities: | |||
Other borrowings | 216,187 | 226,492 | |
Accounts payable and other liabilities | 118,820 | 159,269 | |
Total liabilities | 10,136,212 | 10,878,885 | |
Stockholders Equity | 1,786,243 | 1,694,134 | $ 1,671,743 |
Total liabilities and stockholders' equity | 11,922,455 | 12,573,019 | |
Holding Company [Member] | |||
ASSETS | |||
Cash and due from banks | 29,393 | 29,103 | |
Money market investments | 6,111 | 6,111 | |
Investment securities available for sale, at market: | |||
Other investment securities | 285 | 285 | |
Loans Receivable Net | 227 | 266 | |
Other assets | 3,791 | 4,632 | |
Total assets | 2,003,449 | 1,949,610 | |
Liabilities: | |||
Other borrowings | 216,187 | 226,492 | |
Accounts payable and other liabilities | 1,019 | 28,984 | |
Total liabilities | 217,206 | 255,476 | |
Stockholders Equity | 1,786,243 | 1,694,134 | |
Total liabilities and stockholders' equity | 2,003,449 | 1,949,610 | |
Holding Company [Member] | Investment In Banking Subsidiary [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | 1,946,211 | 1,888,036 | |
Holding Company [Member] | Non Banking Subsidiary [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | 10,941 | 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 Comp201
FIRST BANCORP. (Holding Company Only) Financial Information - Statements of Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income: | |||
Money market investments | $ 3,365 | $ 2,148 | $ 1,892 |
Interest income on investment securities | 50,905 | 54,850 | 60,372 |
Total interest and dividends on investments | 54,270 | 56,998 | 62,264 |
Expense: | |||
Gains Losses On Extinguishment Of Debt | 4,217 | 0 | 0 |
Segment income | 231,385 | 118,146 | 193,190 |
Income tax (expense) benefit | (37,030) | (6,419) | 300,649 |
Net income | 93,229 | 21,297 | 392,287 |
Other comprehensive (loss) income, net of tax | (6,641) | (9,398) | 60,385 |
Comprehensive (loss) income | 86,588 | 11,899 | 452,672 |
Holding Company [Member] | |||
Income: | |||
Money market investments | 20 | 20 | 20 |
Other income | 241 | 498 | 220 |
Total interest and dividends on investments | 42,137 | 518 | 240 |
Expense: | |||
Notes payable and other borrowings | 7,705 | 7,450 | 7,199 |
Other operating expenses | 3,481 | 2,412 | 2,614 |
Total operating expenses | 11,186 | 9,862 | 9,813 |
Investment related proceeds and impairments on equity securities | 0 | 0 | (29) |
Segment income | 35,168 | (9,344) | (9,602) |
Equity in undistributed earnings (losses) of subsidiaries | 58,061 | 30,641 | 401,889 |
Net income | 93,229 | 21,297 | 392,287 |
Other comprehensive (loss) income, net of tax | (6,641) | (9,398) | 60,385 |
Comprehensive (loss) income | 86,588 | 11,899 | 452,672 |
Investment In Banking Subsidiary [Member] | Holding Company [Member] | |||
Income: | |||
Dividend Income From Subsidiaries | 34,876 | 0 | 0 |
Non Banking Subsidiary [Member] | Holding Company [Member] | |||
Income: | |||
Dividend Income From Subsidiaries | $ 7,000 | $ 0 | $ 0 |
FIRST BANCORP. (Holding Comp202
FIRST BANCORP. (Holding Company Only) Financial Information - Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Net Cash Provided By Used In Operating Activities [Abstract] | ||||
Net income | $ 93,229 | $ 21,297 | $ 392,287 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Gain on extinguishment of debt | (4,217) | 0 | 0 | |
Deferred income tax provision | 23,879 | 80 | (306,010) | |
Share Based Compensation | 6,876 | 6,037 | 4,221 | |
Equity in loss of unconsolidated entity | 0 | 0 | 7,279 | |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net | [1] | 6,687 | 16,517 | 388 |
Decrease in other assets | 17,716 | 20,625 | 19,724 | |
Increase Decrease In Other Operating Liabilities | (15,144) | 5,891 | (17,251) | |
Net Cash Provided By Used In Operating Activities | 199,432 | 261,891 | 264,353 | |
Net Cash Provided By Used In Investing Activities [Abstract] | ||||
Principal collected on loans | 2,830,830 | 2,969,616 | 3,483,131 | |
Proceeds from sale of available-for-sale securities | 219,780 | 0 | 4,861 | |
Net Cash Provided By Used In Investing Activities | 83,194 | 438,979 | 254,733 | |
Net Cash Provided By Used In Financing Activities [Abstract] | ||||
Repayments of junior subordinated debentures | (7,025) | 0 | 0 | |
Dividends paid on preferred stock | (223) | 0 | 0 | |
Issuance costs of common stock issued in exchange for preferred stock Series A through E | 0 | 0 | (62) | |
Repurchase of outstanding common stock | (1,132) | (1,173) | (946) | |
Net Cash Provided By Used In Financing Activities | (735,399) | (744,520) | (378,649) | |
Cash And Cash Equivalents Period Increase Decrease | (452,773) | (43,650) | 140,437 | |
Cash and cash equivalents at beginning of year | 752,458 | 796,108 | 655,671 | |
Cash and cash equivalents at end of year | 299,685 | 752,458 | 796,108 | |
Cash and cash equivalents include: | ||||
Money market instruments | 10,094 | 219,473 | 16,961 | |
Parent Company [Member] | ||||
Net Cash Provided By Used In Operating Activities [Abstract] | ||||
Net income | 93,229 | 21,297 | 392,287 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Share Based Compensation | 3,563 | 2,835 | 1,962 | |
Equity in loss of unconsolidated entity | (58,061) | (30,641) | (401,889) | |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net | 0 | 0 | 29 | |
Accretion Amortization Of Discounts And Premiums Loans | (11) | (7) | (3) | |
Decrease in other assets | 802 | (293) | (260) | |
Increase Decrease In Other Operating Liabilities | (26,685) | 6,643 | 7,261 | |
Net Cash Provided By Used In Operating Activities | 8,620 | (166) | (613) | |
Net Cash Provided By Used In Investing Activities [Abstract] | ||||
Principal collected on loans | 50 | 63 | 38 | |
Proceeds from sale of available-for-sale securities | 0 | 0 | 6 | |
Net Cash Provided By Used In Investing Activities | 50 | 63 | 44 | |
Net Cash Provided By Used In Financing Activities [Abstract] | ||||
Issuance costs of common stock issued in exchange for preferred stock Series A through E | 0 | 0 | (62) | |
Repurchase of outstanding common stock | (1,132) | (1,174) | (946) | |
Net Cash Provided By Used In Financing Activities | (8,380) | (1,174) | (1,008) | |
Cash And Cash Equivalents Period Increase Decrease | 290 | (1,277) | (1,577) | |
Cash and cash equivalents at beginning of year | 35,214 | 36,491 | 38,068 | |
Cash and cash equivalents at end of year | 35,504 | 35,214 | 36,491 | |
Cash and cash equivalents include: | ||||
Due From Banks | 29,393 | 29,103 | 30,380 | |
Money market instruments | $ 6,111 | $ 6,111 | $ 6,111 | |
[1] | (1) For the years ended December 31, 2016 and 2015, approximately $6.3 million and $15.9 million, respectively, of the credit impairment recognized in earnings consisted of credit losses on Puerto Rico government debt securities. The remaining impairment losses were associated with credit losses on private label MBS. |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Feb. 27, 2015 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Subsequent Event [Line Items] | ||||||||
Classified and non-performing loans sold | $ 16,300 | $ 147,500 | ||||||
OREO Sold | 2,900 | |||||||
Branches Doral | 10 | |||||||
Gains Losses On Extinguishment Of Debt | $ 4,217 | $ 0 | $ 0 | |||||
Trust Preferred Securties Discount | 30.00% | |||||||
Trust Preferred Securities Winning Bid | 70.00% | |||||||
Trust Preferred Securities Repurchases | $ 10,000 | |||||||
Sales Price Of Bulk Sale | 87,300 | |||||||
Proceeds From Sale Of Non Performing Assets Sold | 11,300 | |||||||
PreTax Loss Bulk Sale | 1,800 | 48,700 | ||||||
Reserves Allocated To Bulk Sale | 2,800 | 15,300 | 2,800 | |||||
Bulk Sale Charge Offs | 4,600 | 61,400 | ||||||
Classified And Non Performing Loans Sold Outstanding Balance | 20,100 | |||||||
Deferred Tax Asset Pass Through Net Operating Losses | $ 14,700 | $ 14,700 | ||||||
Commercial Mortgage Loans [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Classified and non-performing loans sold | 90,700 | |||||||
Commercial And Industrial Loan [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Classified and non-performing loans sold | 45,800 | |||||||
Construction Loans [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Classified and non-performing loans sold | $ 11,000 | |||||||
Puerto Rico Electric Power Authority [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Classified and non-performing loans sold | $ 64,000 | |||||||
Proceeds From Sale Of Non Performing Assets Sold | 53,200 | |||||||
PreTax Loss Bulk Sale | 600 | |||||||
Reserves Allocated To Bulk Sale | 10,200 | |||||||
Classified And Non Performing Loans Sold Outstanding Balance | $ 75,000 |