Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 216,406,013 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
ASSETS | |||
Cash and due from banks | $ 743,409 | $ 705,980 | |
Money market investments: | |||
Time deposits with other financial institutions | 3,126 | 3,126 | |
Other short term investments | 97,289 | 7,289 | |
Total money market investments | 100,415 | 10,415 | |
Investment securities available for sale, at fair value: | |||
Securities pledged that can be repledged | 242,738 | 350,123 | |
Other investment securities | 1,572,766 | 1,540,893 | |
Total investment securities available for sale | 1,815,504 | 1,891,016 | |
Investment securities held to maturity, at amortized cost: | |||
Securities pledged that can be repledged | 0 | 0 | |
Other investment securities | 150,486 | 150,627 | |
Total investment securities held to maturity, fair value of $134,856 (2017- $131,302) | 150,627 | ||
Other equity securities | 43,532 | 43,119 | |
Loans, net of allowance for loan and lease losses of $225,856 (2017 - $231,483) | 8,470,034 | 8,618,633 | |
Loans held for sale, at lower of cost or market | [1] | 91,375 | 32,980 |
Total loans, net | 8,561,409 | 8,651,613 | |
Premises and equipment, net | 143,115 | 141,895 | |
Other real estate owned | 154,639 | 147,940 | |
Accrued interest receivable on loans and investments | 44,093 | 57,172 | |
Other assets | 443,784 | 461,491 | |
Total assets | 12,200,386 | 12,261,268 | |
LIABILITIES | |||
Non-interest-bearing deposits | 2,019,823 | 1,833,665 | |
Interest-bearing deposits | 7,046,642 | 7,188,966 | |
Total deposits | 9,066,465 | 9,022,631 | |
Securities sold under agreements to repurchase | 200,000 | 300,000 | |
Advances from the Federal Home Loan Bank (FHLB) | 715,000 | 715,000 | |
Other borrowings | 184,150 | 208,635 | |
Accounts payable and other liabilities | 157,667 | 145,905 | |
Total liabilities | 10,323,282 | 10,392,171 | |
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, 220,877,719 shares (2016 - 216,278,040 shares issued) | 22,088 | 22,038 | |
Less: Treasury stock (at par value) | (449) | (410) | |
Common stock outstanding, 216,390,329 shares outstanding (2017 - 216,278,040 shares outstanding) | 21,639 | 21,628 | |
Additional paid-in capital | 936,342 | 936,772 | |
Retained earnings, includes legal surplus reserve of $52,436 | 927,681 | 895,208 | |
Accumulated other comprehensive loss , net of tax of $7,752 | (44,662) | (20,615) | |
Total stockholders' equity | 1,877,104 | 1,869,097 | |
Total liabilities and stockholders' equity | $ 12,200,386 | $ 12,261,268 | |
[1] | During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan and lease losses | $ 225,856,000 | $ 231,843,000 |
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 | $ 36,104,000 | $ 36,104,000 |
Common stock, par value | $ 0.1 | $ 0.1 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 220,877,719 | 220,382,343 |
Common stock, shares outstanding | 216,390,329 | 216,278,040 |
Income tax expense | $ 7,758,000 | |
Legal Surplus Amount | 59,693,000 | $ 59,693,000 |
Held To Maturity Securities Fair Value | 134,856,000 | 131,032,000 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Income tax expense | $ 7,752,000 | $ 7,752,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Interest and dividend income: | |||
Loans | $ 133,175 | $ 131,442 | |
Investment securities | 13,987 | 13,302 | |
Money market investments and interest-bearing cash accounts | 2,256 | 484 | |
Total interest income | 149,418 | 145,228 | |
Interest expense: | |||
Deposits | 16,971 | 15,972 | |
Securities sold under agreements to repurchase | 2,297 | 2,623 | |
Advances from FHLB | 3,372 | 2,122 | |
Other borrowings | 2,085 | 1,962 | |
Total interest expense | 24,725 | 22,679 | |
Net interest income | 124,693 | [1] | 122,549 |
Provision for loan and lease losses | 20,544 | 25,442 | |
Net interest income after provision for loan and lease losses | 104,149 | 97,107 | |
Non-interest income: | |||
Service charges and fees on deposit accounts | 5,088 | 5,790 | |
Mortgage banking activities | 4,165 | 3,616 | |
Other-than-temporary impairment (OTTI) losses on available-for-sale debt securities: | |||
Total other-than-temporary impairment losses | 0 | (12,231) | |
Portion of other-than-temporary impairment recognized in other comprehensive income (OCI) | 0 | 0 | |
Net impairment losses on available-for-sale debt securities | 0 | (12,231) | |
Gain on early extinguishment of debt | 2,316 | 0 | |
Insurance commission income | 3,355 | 3,587 | |
Other non-interest income | 7,860 | 7,481 | |
Total non-interest income | 22,784 | 8,243 | |
Non-interest expenses: | |||
Employees' compensation and benefits | 40,684 | 38,653 | |
Occupancy and equipment | 15,105 | 14,088 | |
Business promotion | 2,576 | 3,281 | |
Professional fees | 10,060 | 10,956 | |
Taxes, other than income taxes | 3,856 | 3,676 | |
Insurance and supervisory fees | 3,855 | 4,909 | |
Net loss on real estate owned (OREO) and OREO operations | 190 | 4,076 | |
Credit and debit card processing expenses | 3,537 | 2,831 | |
Communications | 1,482 | 1,543 | |
Other non-interest expenses | 4,682 | 3,869 | |
Total non-interest expenses | 86,027 | 87,882 | |
(Loss) income before income taxes | 40,906 | 17,468 | |
Income tax benefit (expense) | (7,758) | 8,073 | |
Net (loss) income | 33,148 | 25,541 | |
Net (loss) income attributable to common stockholders | $ 32,479 | $ 24,872 | |
Net (loss) income per common share: | |||
Basic | $ 0.15 | $ 0.12 | |
Diluted | 0.15 | 0.11 | |
Dividends declared per common share | $ 0 | $ 0 | |
[1] | Most of the Corporation’s revenue is not within the scope of ASU No. 2014-09, Revenue from Contracts with Customers. The guidance explicitly excludes net interest income from financial assets and liabilities, as well as other noninterest income from loans, leases, investment securities and derivative financial instruments. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income | $ 33,148 | $ 25,541 |
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 | 496 | (2,930) |
Reclassification adjustment for other-than-temporary impairment on debt securities included in net income | 0 | 12,231 |
All other unrealized gains and losses on available-for-sale securities: | ||
All other unrealized holding gains on available-for-sale securities arising during the period | (24,549) | 1,395 |
Amount Reclassified Out Of Accumulated Other Comprehensive Income Loss Per ASU 2016 01 | 6 | 0 |
Income tax expense related to items of other comprehensive income | 0 | 0 |
Other comprehensive income (loss) for the period | (24,047) | 10,696 |
Total comprehensive (loss) income | $ 9,101 | $ 36,237 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 33,148 | $ 25,541 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,922 | 4,141 |
Amortization of intangible assets | 1,006 | 1,121 |
Provision for loan and lease losses | 20,544 | 25,442 |
Deferred income tax expense (benefit) | 5,472 | (6,016) |
Stock-based compensation | 2,205 | 1,734 |
Gain on early extinguishment of debt | (2,316) | 0 |
Other-than-temporary impairments on debt securities | 0 | 12,231 |
Unrealized loss on derivative instruments | 52 | 57 |
Net (gain) loss on sales of premises and equipment and other assets | (847) | 9 |
Net gain on sales of loans | (1,096) | (1,472) |
Net amortization/accretion of premiums, discounts and deferred loan fees and costs | (2,095) | (2,031) |
Originations and purchases of loans held for sale | (65,984) | (81,389) |
Sales and repayments of loans held for sale | 76,163 | 86,924 |
Loans held for sale valuation adjustment | 558 | 0 |
Amortization of broker placement fees | 367 | 527 |
Net amortization/accretion of premium and discounts on investment securities | 476 | 461 |
Decrease in accrued interest receivable | 13,061 | 3,413 |
Increase in accrued interest payable | 8 | 174 |
Decrease in other assets | 10,566 | 5,419 |
Increase in other liabilities | 166 | 8,517 |
Net cash provided by operating activities | 95,376 | 84,803 |
Cash flows from investing activities: | ||
Principal collected on loans | 590,753 | 669,615 |
Loans originated and purchased | (550,257) | (704,175) |
Proceeds from sale of loans held for investment | 13,274 | 53,245 |
Proceeds from sale of repossessed assets | 10,559 | 12,159 |
Purchases of available-for-sale securities | (49,626) | (5,003) |
Proceeds from principal repayments and maturities of available-for-sale securities | 100,195 | 53,830 |
Proceeds from principal repayments and maturities of held-to-maturity securities | 141 | 141 |
Additions to premises and equipment | (5,142) | (2,840) |
Proceeds from sale of premises and equipment and other assets | 1,857 | 637 |
Net redemption of other equity securities | 0 | 4,500 |
Net cash provided by investing activities | 111,754 | 82,109 |
Cash flows from financing activities: | ||
Net increase in deposits | 45,026 | 58,722 |
Net FHLB advances paid | 0 | 100,000 |
Dividends paid on preferred stock | (669) | (669) |
Repurchase of outstanding common stock | (2,624) | (528) |
Change in securities sold under agreements to repurchase | (100,000) | 0 |
Repayment of junior subordinated debentures | (21,434) | 0 |
Net cash used in financing activities | (79,701) | (42,475) |
Net increase in cash and cash equivalents | 127,429 | 124,437 |
Cash and cash equivalents at beginning of period | 716,395 | 299,685 |
Cash and cash equivalents at end of period | 843,824 | 424,122 |
Cash and cash equivalents include: | ||
Cash and Cash Equivalents, at Carrying Value, Total | $ 843,824 | $ 424,122 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] |
Total stockholders' equity | $ 21,745 | $ 931,856 | $ 830,928 | $ (34,390) | ||
Total stockholders' equity | $ 1,823,017 | $ 36,104 | 21,843 | 931,856 | 830,928 | (23,694) |
Balance at beginning of period at Dec. 31, 2016 | 21,745 | 931,856 | 830,928 | (34,390) | ||
Common stock issued as compensation | 14 | (14) | ||||
Common stock withheld for taxes | (11) | (517) | ||||
Restricted stock grants | 95 | (95) | ||||
Stock-based compensation | 1,734 | |||||
Net income | 25,541 | 25,541 | ||||
Dividends on preferred stock | (669) | (669) | ||||
Other comprehensive income (loss), net of tax | 10,696 | 10,696 | ||||
Balance at end of period at Mar. 31, 2017 | 1,823,017 | 36,104 | 21,843 | 932,964 | 855,800 | (23,694) |
Amount reclassified from accumulated other comprehensive loss per ASU 201601 | 0 | |||||
Total stockholders' equity | 1,823,017 | 36,104 | 21,843 | 932,964 | 855,800 | (23,694) |
Total stockholders' equity | 1,869,097 | 21,628 | 936,772 | 895,208 | (20,615) | |
Total stockholders' equity | 1,869,097 | 36,104 | 21,628 | 936,772 | 927,681 | (44,662) |
Balance at beginning of period at Dec. 31, 2017 | 1,869,097 | 21,628 | 936,772 | 895,208 | (20,615) | |
Common stock issued as compensation | 15 | (15) | ||||
Common stock withheld for taxes | (38) | (2,586) | ||||
Restricted stock grants | 34 | (34) | ||||
Stock-based compensation | 2,205 | |||||
Net income | 33,148 | 33,148 | ||||
Dividends on preferred stock | (669) | (669) | ||||
Other comprehensive income (loss), net of tax | (24,047) | (24,047) | ||||
Balance at end of period at Mar. 31, 2018 | 1,877,104 | 36,104 | 21,639 | 936,342 | 927,681 | (44,662) |
Amount reclassified from accumulated other comprehensive loss per ASU 201601 | (6) | |||||
Total stockholders' equity | $ 1,877,104 | $ 36,104 | $ 21,639 | $ 936,342 | $ 927,681 | $ (44,662) |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2018 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The Consolidated Financial Statements (unaudited) of First BanCorp. (the “Corporation”) have been prepared in conformity with the accounting policies stated in the Corporation’s Audited Consolidated Financial Statements included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2017 . Certain information and note disclosures normally included in the financial statements prepared in accordance wi th generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted from these statements pursuant to the rules and regulations of the SEC and, accordingly, these financial statements should be read in conju nction with the Audited Consolidated Financial Statements of the Corporation for the year ended December 31, 2017 , which are included in the Corporation’s 2017 Annual Report on Form 10-K. All adjustments (consisting only of normal recurring a djustments) that are, in the opinion of management, necessary for a fair presentation of the statement of financial position, results of operations and cash flows for the interim periods have been reflected. All significant intercompany accounts and transa ctions have been eliminated in consolidation. The results of operations for the quarter ended March 31, 2018 are not necessarily indicative of the results to be expected for the entire year. Adoption of New Accounting Requirements and Recently Issued but Not Yet Effective Accounting Requirements The Financial Accounting Standards Board (“FASB”) has issued the following accounting pronouncements and guidance relevant to the Corporation’s operations: Revenue Recognition In May 2014, the FASB up dated the Accounting Standards Codification (the “Codification” or the “ASC”) to create a new, principles-based revenue recognition framework. This guidance requires entities to recognize revenues when they transfer promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance describes a 5-step process that entities can apply to achieve the core principle of revenue recognition and requi res disclosures sufficient to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers and the significant judgments used in determining that information. The Corporation adopted the guidance on January 1, 2018 using a modified retrospective method, in which the guidance applies to existing contracts in effect at January 1, 2018 and new contracts entered into after this date. Most of the Corporation’s revenue, including net interest income, gain on sale of loans, and mortgage servicing fees is explicitly out of scope of the new r evenue recognition guidance. The Corporation conducted an assessment of the revenue streams that were potentially affected by the new guidance and reviewed contracts in scope to ensure compliance with the new guidance. The Corporation has identified ser vice charges on deposits and related cash management services, insurance commissions, merchant-related income, and card interchange income as its most significant revenue streams within the scope of the standard. For the revenue streams that were found in scope, management reviewed in detail its most significant contracts with corresponding customers. The adoption of this guidance did not have a material effect on the Corporation’s consolidated financial statements. However, additional disclosures required by the standard have been included in Note 22 – Revenue from Contracts with Customers , to the Corporation’s consolidated financial statements. Recognition and Measurement of Financial Assets and Liabilities In January 2016, the FASB updated the Codific ation to require an entity to: (i) measure equity investments at fair value through net income, with certain exceptions, thus, eliminating eligibility for the available-for-sale category; (ii) present in OCI the changes in instrument-specific credit risk f or financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes base d on an exit price; and (v) assess a valuation allowance on deferred tax assets related to unrealized losses of available-for-sale debt securities in combination with other deferred tax assets. The guidance provides an election to subsequently measure cert ain nonmarketable equity investments at cost less any impairment, adjusted for certain observable price changes. The guidance also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements . The adoption of this standard during the first quarter of 2018 did not have a material effect on the Corporation’s consolidated financial statements. Statement of Cash Flows Presentation – Restricted Cash In August 2016 and November 2016, the FA SB updated the Codification to provide specific guidance on the classification and presentation of certain cash payments and cash receipts, including changes in restricted cash, in the statement of cash flows. This guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The amendments in this Update should be applied using a retrospective transition method to each period presented. The Corporation adopted the provisions of this guidance during the first quarter of 2018 without any material effect on the Corporation’s consolidated financial statements. Income Tax Effect of Intra-Entity Transfers of Assets In October 2016, the FASB updated the Codification to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inv entory. With this Update, entities are required to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Un der current GAAP, the recognition of current and deferred income taxes for an intra-entity asset transfer is prohibited until the assets are sold to an outside party. This Update does not include new disclosure requirements; however, existing disclosure re quirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. For example, GAAP requires an entity to disclose a comparison of income tax expense (benefit) with statu tory expectations (a rate reconciliation for public entities or a description of the nature of each significant reconciling item for nonpublic entities) and also requires an entity to disclose the types of temporary differences and carryforwards that give rise to a significant portion of deferred income taxes. The Corporation adopted the provisions of this guidance during the first quarter of 2018 without any effect on the Corporation’s consolidated financial statements. Clarifying what Changes Qualify as a Modification of a Share-Based Payment Award In May 2017, the FASB updated the codification to reduce the cost and complexity when applying ASC Topic 718, “Compensation – Stock Compensation,” and standardize the practice of applying Topic 718 to financi al reporting. Topic 718 prescribes the accounting treatment of a modification in the terms or conditions of a share-based payment award. The guidance clarifies what changes would qualify as a modification. This was done by better defining what does not con stitute a modification. In order for a change to a share-based arrangement to not require Topic 718 modification treatment, all of the following must be met: (i) the fair value (or alternative measurement method used) of the modified award equals the fair value (or alternative measurement method used) of the original award immediately before the original award is modified; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the or iginal award is modified; and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under this Update. The amendments in this Update should be applied prospectively to an award modified on or after the adoption date. The Corporati on adopted the provisions of this guidance on January 1, 2018 without any effect on the Corporation’s consolidated financial statements. The Corporation’s Omnibus Plan provides for equity-based compensation incentives through the grant of stock options, st ock appreciation rights, restricted stock, restricted stock units, performance shares, cash-based awards and other stock-based awards. If any change occurs in the future to awards issued under the Omnibus Plan, the Corporation will evaluate it under this g uidance. Lease Accounting In February 2016, the FASB updated the Codification to provide guidance for the financial reporting about leasing transactions. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet, the guidance will require both types of le ases to be recognized on the balance sheet. The guidance will also require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The guidance on leases will take effect for public companies for fiscal years, and interim periods within those fiscal years , beginning after December 15, 2018. Early application is permitted. Entities are required to u se a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period presented in the financial statements. As lessees, the Corporation has lease agreements for branch locations that are currently considered operating leases, and therefore are not recognized on the Corporation’s consolidated balance sheets. The Corporation expects that the new guidan ce will require these leases to be recognized on the consolidated balance sheets as a right-of-use asset with a corresponding lease liability. The Corporation continues to evaluate the effect that this guidance will have on the Corporation’s consolidated f inancial statements. Accounting for Financial Instruments – Credit Losses In June 2016, the FASB updated the Codification to introduce new guidance for the accounting for credit losses on instruments that includes an impairment model (known as the current expected credit loss (“CECL”) model) that is based on expected losses rather than incurred losses . It also modifies the impairment model for available-for-sale debt securities and provides for a simplifie d accounting model for purchased financial assets with credit deterioration since their origination. The CECL model will apply to: (1) financial assets subject to credit losses and measured at amortized cost and (2) certain off-balance sheet credit exposur es. This includes loans, held-to-maturity debt securities, loan commitments, financial guarantees, and net investments in leases, as well as reinsurance and trade receivables. Upon initial recognition of the exposure, the CECL model requires an entity to e stimate the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses (“ECL”) should consider historical information, current information, and reasonable and supportable forecasts, including estimate s of prepayments. Financial instruments with similar risk characteristics should be grouped together when estimating ECL. The guidance does not prescribe a specific method to make the estimate, so its application will require significant judgment. Generally, upon initial recognition of a financial asset, the estimate of the ECL will be recorded through an allowance for loan and lease losses with an offset to current earnings. Subsequently, the ECL will need to be reassessed each period, and both neg ative and positive changes to the estimate will be recognized through an adjustment to the allowance for loan and lease losses and earnings. The guidance amends the current OTTI model for available-for-sale debt securities. The new available-for-sale deb t security model will require an estimate of ECL only when the fair value is below the amortized cost of the asset. The length of time the fair value of an available-for-sale debt security has been below the amor tized cost will no longer affect the determi nation of whether a credit loss exists. As such, the new available-for-sale debt security model is not an OTTI model. In addition, credit losses on available-for-sale debt securities will now be limited to the difference between the security’s amortized co st basis and its fair value. The available-for-sale debt security model will also require the use of an allowance to record estimated credit losses (and subsequent recoveries). The purchased financial assets with credit deterioration (“PCD”) model applie s to purchased financial assets (measured at amortized cost or available-for-sale) that have experienced more than insignificant credit deterioration since origination. This represents a change from the scope of what are considered purchased credit-impaire d assets under today’s model. In contrast to the accounting for originated or purchased assets that do not qualify as PCD, the initial estimate of expected credit losses for a PCD would be recognized through an allowance for loan and lease losses with an o ffset to the cost basis of the related financial asset at acqui sition (i.e., there is no effect to net income at initial recognition). Subsequently, the accounting will follow the applicable CECL or available-for-sale debt security impairment model with al l adjustments of the allowance for loan and lease losses recognized through earnings. Beneficial interests classified as held-to-maturity or available-for-sale will need to apply the PCD model if the beneficial interest meets the definition of PCD or if th ere is a significant difference between contractual and expected cash flows at initial recognition. In general, the new guidance will require modified retrospective application to all outstanding instruments, with a cumulative effect adjustment recorded to opening retained earnings as of the beginning of the first period in which the guidance becomes effective. However, prospective application is required for PCD assets previously accounted for under ASC 310-30 and for debt securities for which an OTTI wa s recognized prior to the date of adoption. This guidance also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, public business entities will n eed to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination (i.e., by vintage year). The guidance will be effective for public business entities that are SEC filers in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption of the guidance will be permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Corporation has developed a transition roadmap in order to comply with the timely implementation of this new accounting framework. The Corporation has created a working g roup with members from multiple areas across the organization that is res ponsibl e for assessing the effect of the standard, evaluating interpretative issues, and evaluating the current credit loss models against the new guidance to determine any necessary changes and other related implementation activities. The w orking g roup provides periodic updates to the Corporation’s CECL Management Committee, which has oversight responsibilities for the implementation efforts. The Corporation continues to evaluate the effect that this guidance, including the method of implementation, will have on its consolidated financial statements. Subsequent Measurement of Goodwill In January 2017, the FASB updated the Codification to simplify the subsequent measurement of goodwill by eliminating Step 2 from the current two-step goodwill impairment test. This guidance provides that a goodwill impairment test be conducted by comparing the fair value of a reporting unit with its carrying amount. Entities are to recognize an impairment charge for goodwill equal to the excess of the carrying amount over the r eporting unit’s fair value. Entities have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This guidance is effective for fiscal years, and interim periods within those fis cal years, beginning after December 15, 2019. The effect of this guidance will depend upon the performance of the reporting units and the market conditions affecting the fair value of each reporting unit going forward. Amortizatio n of Premiums and Discounts of C allable D ebt S ecurities In March 2017, the FASB updated the Codification to shorten the amortization period for certain purchased callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. With respect to securities held at a discount, the amendments do not require an accounting change; thus, the discount continues to be amortized to maturity. Under current GAAP, premiums and discounts on callable debt securities generally are amortized to the maturity date. An entity must have a large number of similar loans to consider estimates of future principal prepayments when applying the interest method. However, an entity that holds an individual callable debt security at a premium may not amortize that premium to the earliest call dat e. If that callable debt security is subsequently called, the entity records a loss equal to the unamortized premium. The amendments in this Update more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. In most cases, market participants price securities to the call date that produces the worst yield when the coupon is above current market rates (that is, the security is trading at a premium) and price securities to m aturity when the coupon is below market rates (that is, the security is trading at a discount) in anticipation that the borrower will act in its economic best interest. As a result, the amendments more closely align interest income recorded on bonds held a t a premium or a discount with the economics of the underlying instrument. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The ado ption of this guidance is not expected to have a material effect on the Corporation’s consolidated statement of financial condition or results of operations. As of March 31, 2018, the Corporation had $ 4.3 million of callable debt securities held at a prem ium (unamortized premium of $ 50 thousand). Derivatives and Hedging In August 2017, the FASB updated the Codification to: (i) expand hedge accounting for nonfinancial and financial risk components and amend measurement methodologies to more closely align hedge accounting with a company’s risk management activities; (ii) decrease the complexity of preparing and understanding hedge results by eliminating the separate measurement and reporting of hedge ineffectiveness; (iii) enhance transparency, comparabilit y, and understanding of hedge results through enhanced disclosures and changing the presentation of hedge results to align the effects of the hedging instrument and the hedged item; and (iv) reduce the cost and complexity of applying hedge accounting by si mplifying the manner in which assessments of hedge effectiveness may be performed. This Update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The guidance requir es companies to apply requirements to existing hedging relationships on the date of adoption, and the effect of the adoption should be reflected as of the beginning of the fiscal year of adoption. As of March 31, 2018, all of the derivatives held by the Co rporation were considered economic undesignated hedges. The adoption of this guidance is not expected to have a material effect on the Corporation’s consolidated statement of financial condition or results of operations. Reclassification of Certain Tax Ef fects F rom Accumulated Other Comprehensive Income In February 2018, the FASB updated the Codification to provide entities with an option to reclassify tax effects that were stranded in accumulated other comprehensive income, pursuant to the recently enacted Tax Cuts and Jobs Act of 2017 (the “Tax Act”), to retained earnings. This guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. This guidance may be early adopted in any interim or annual period for which financial statements have not yet been issued and applied either in the period of adoption or retrospectively to each period in which the effect of the change in the corporate tax rate in the Tax Act is recognized. The adoption of t his guidance is not expected to have an effect on the Corporation’s consolidated financial statements. |
UPDATE ON IMPACTS OF NATURAL DI
UPDATE ON IMPACTS OF NATURAL DISASTERS | 3 Months Ended |
Mar. 31, 2018 | |
Natural Disasters [Text Block] | NOTE 2 – UPDATE ON EFFECTS OF NATURAL DISASTERS Two strong hurricanes affected the Corporation’s service areas during September 2017. The following summarizes the more significant continuing financial repercussions of these natural disasters for the Corporation and for its major subsidiary, FirstBank. Credit Quality and Allowance for Loan and Lease Losses Relationship office rs continued to closely monitor the performance of hurricane-affected loan customers during the first quarter of 2018, and data became available on the performance of consumer and residential credits that had been under payment deferral programs. This information was factored into the determination of the allowance for loan and lease losses as of March 31, 2018. Although the ident ification and evaluation of hurricane-affected credits has been substantially completed, management’s asse ssment of the hurricanes’ effect is still subject to uncertainties, both those specific to some individual customers, such as the resolution of insura nce claims, and those applicable to the overall economic prospects of the hurricane-affected areas as a whole . During the first quarter of 2018, the Corporation recorded a net loan loss reserve release of approximately $ 6.4 million in connection with revis ed estimates associated with the effect s of the hurricanes . The revised estimates were primarily attributable to updated assessments of financial performance and repayment prospects of certain individual ly -assessed commercial credits and lower reserve requ irements resulting from payments received during the first quarter that reduced the balance of the consumer loan portfolio outstanding on the dates of the hurricanes. As of March 31, 2018, the hurricane-related allowance amounted to $ 62.1 million (net of a $ 2.8 million charge-off taken on a hurricane-affected construction credit during the fourth quarter of 2017). With the resolution of uncertainties and the ongoing collection of information on individual commercial customers and statistics on the consume r and residential loan portfolios, the loss estimate will be revised as need ed . Refer to Note 7 , – Loans Held for Investment, to the consolidated financial statements for information about non-performing loans and early delinquency statistics. Disaster R esponse Plan Costs, Casualty Losses and Related Insurance The Corporation has incurred a variety of costs to operate in disaster response mode, and some facilities and their contents were damaged by the storms. The Corporation maintains insurance for ca sualty losses as well as for reasonable and necessary disaster response costs and certain revenue lost through business interruption. Most of the significant disaster response costs were incurred by the e nd of the first quarter of 2018. The cost were inclu ded , where appropriate , in an insurance claim receivable based on management’s understanding of the underlying coverage. An insurance claim receivable of $ 5.3 million was included as part of other assets as of March 31, 2018, and the Corporation has incurred $ 9.4 million of hurricane-related disaster response costs and casualty losses, including $ 1.6 million charged to operations in the first quarter of 2018. Impairments, recoverable expenses and expected recoveries are included as part of “Other non -interest income” in the statement of income. Management also believes that there is a possibility that some gains will be recognized with respect to casualty and lost revenue claims in future periods, but this is contingent on reaching agreement on the C orporation’s claims with the insurance carriers. Liquidity Management The Corporation experienced rapid accumulation of deposits after the hurricanes in the fourth quarter of 2017 and the first quarter of 2018. Total deposits as of March 31, 2018, e xcluding brokered CDs, increased $ 238.3 million from December 31, 2017 and $ 599.8 million since September 30, 2017. The most significant increase was in non - interest-bearing demand deposits, which grew 10 %, or $ 186.2 million from December 31, 2017 and $ 433.7 million, or 2 7 %, since September 30, 2017. Hurricane-related factors, such as the effect of payment deferral programs available to customers, disaster relief funds, and settlement of insurance claims continue to contribute to this accumulation. Alt hough management expects the balances accumulated by deposit customers in the hurricane-affected areas to reduce over time, it is difficult to predict when and to what degree, and there may be further growth as insurance claims are resolved and additional disaster-recovery funds are distributed. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2018 | |
EARNINGS PER COMMON SHARE | NOTE 2 – EARNINGS PER COMMON SHARE The calculations of earnings per common share for the quarters ended March 31, 2018 and 2017 are as follows: Quarter Ended March 31, March 31, 2018 2017 (In thousands, except per share information) Net income $ 33,148 $ 25,541 Less: Preferred stock dividends (669) (669) Net income attributable to common stockholders $ 32,479 $ 24,872 Weighted-Average Shares: Average common shares outstanding 214,646 213,340 Average potential dilutive common shares 1,648 4,033 Average common shares outstanding-assuming dilution 216,294 217,373 Earnings per common share: Basic $ 0.15 $ 0.12 Diluted $ 0.15 $ 0.11 Earnings per common share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares iss ued 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 . Basic weighted-average common shares outstanding exclude unvested shar es of restricted stock that do not contain non-forfeitable dividend rights. Potential dilutive common shares consist of unvested shares of restricted stock that do not contain non-forfeitable dividend rights, performance units that do not contain non-for feitable dividend rights if the performance condition in met as of the end of the reporting period, and outstanding warrants using the treasury stock method. This method assumes that the potential dilutive common shares are issued and outstanding and the p roceeds from the exercise, in addition to the amount of compensation cost attributable to future services, are used to purchase common stock at the exercise date. The difference between the numbers of potential dilutive shares issued and the shares purchas ed is added as incremental shares to the actual number of shares outstanding to compute diluted earnings per share. Unvested shares of restricted stock and performance units that do not contain non-forfeitable dividend rights, and outstanding warrants that result in lower potential dilutive 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 share. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2018 | |
STOCK-BASED COMPENSATION | NOTE 3 – STOCK-BASED COMPENSATION O n 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, extend the term of the Omnibus Plan to May 24, 2026 and re-approve the material terms of the performance goals under the Omnibus Plan for purposes of the then Section 162(m) of the U.S. Internal Revenue Code of 1986, as ame nded. 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 awa rds. 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 March 31, 2018, 7,063,074 authorized shares of common stock were available fo r issuance under the Omnibus Plan. The Corporation’s Board of Directors, based on the recommendation of the Corporation’s Compensation and Benefits Committee, has the power and authority to determine those eligible to receive awards and to establish the te rms and conditions of any awards, subject to various limits and vesting restrictions that apply to individual and aggregate awards. Restricted Stock Under the Omnibus Plan, the Corporation may grant restricted stock to plan participants, subject to for feiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. While the restricted stock is subject to forfeiture and does not contain non-forfeitable dividend rights, restricted stock participants may exerci se full voting rights. The restricted stock granted under the Omnibus Plan is typically subject to a vesting period. During the first quarter of 2018, the Corporation awarded 341,189 shares of restricted stock to employees, fifty percent ( 50 %) of those sha res vest in two years from the grant date and the remaining 50 % vest in three years of the grant date. Included in those 341,189 shares of restricted stock were 20,447 shares granted to retirement-eligible employees at the grant date. The fair value of the shares of restricted stock granted in the first quarter of 2018 was based on the market price of the Corporation’s outstanding common stock on the date of the grant. The following table summarizes the restricted stock activity in the first quarter of 2018 under the Omnibus Plan: Quarter Ended March 31, 2018 Number of shares of Weighted-Average restricted Grant Date stock Fair Value Non-vested shares at beginning of period 1,816,968 $ 2.76 Granted 341,189 6.29 Vested (1,061,476) 2.02 Non-vested shares at March 31, 2018 1,096,681 $ 4.58 For the quarter s ended March 31, 2018 and 2017 , the Corporation recognized $ 1.1 million and $ 0.9 million, respectively, of stock- based compensation expense related to r estricted stock awards. As of March 31, 2018 , there was $ 3.9 million of total unrecognized compensation cost related to non - vested shares of restricted stock. Th e weighted average period over which the Corporation expects to recognize such cost is 1.7 years. The total expense determined for restricted stock awards granted to retirement-eligible employees was charged against earnings at the grant date. During the first quarter of 2017 , the Corporation awarded 949,332 shares of restricted stock to employees subject to a vesting period of two years. Included in tho se 949,332 shares of restricted stock were 838,332 shares granted to certain senior officers consistent with the requirements of the Trouble d Asset Relief Program (“TARP”) Interim Final Rule. On May 10, 2017, the United States Department of the Treasury (t he “U.S. Treasury) announced that it had sold all of its remaining 10,291,553 shares of the Corporation’s common stock. A s a result of the sale by the U.S. Treasury, the Corporation is no longer subject to the compensation-related restrictions under TARP, which substantially limited the Corporation’s ability to award short-term and long-term incentives to the Corporation’s executives, and the Corporation’s senior officers are no longer subject to the transferability restrictions on their shares of restricte d stock. However, since the U.S. Treasury did not recover the full amount of its original investment under TARP, the senior officers forfeited 2, 370,571 , or 50 %, of their outstanding shares of restricted stock, resulting in a reduction in the number of com mon shares outstanding. The U.S. Treasury continues to hold a warrant to purchase 1,285,899 shares of the Corporation’s common stock. The fair value of the shares of restricted stock granted in the first quarter of 2017 was based on the market price of the Corporation’s outstanding common stock on the date of the grant. For the 838,332 shares of restricted stock granted under the TARP requirements , the market price was discounted assuming that 50 % of the shares of restricted stock would become freely transferable and the remaining 50 % would be forfeited, resulting in a fair value of $ 2.71 for each share of restricted stock granted under TARP requirements. Stock-based compensation accounting guidance requires the Corporation to reverse compensation expense for any awards that are forfeited due to employee or director turnover. Quarterly changes in the estimated forfeiture rate may have a significant effect on stock-based compensation, as the effect of adjusting the rate for all expense amortization is recognized in the period in which the forfeiture estimate is changed. If the actual forfeiture rate is higher than the estimated forfeiture rate, then an adjustment is made to increase the estimated forfeiture rate, which will result in a decrease in t he 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 th e financial statements. The estimated forfeiture rate did not change as a result of the restricted shares forfeited in connection with the aforementioned U.S. Treasury’s sale of the Corporation’s common stock . Performance Units Under the Omnibus Plan, the Corporation may award performance unit awards to Omnibus Plan participants. During the first quarter of 2018, the Corporation granted 304,408 unit awards to executives, with each unit representing the value of one share of the Corporation’s common stock. The performance unit awards granted are for the performance period beginning January 1, 2018 and ending on December 31, 2020 and are subject to a three-year requisite service period. These awards do not contain non-forfeitable rights to dividend equivalent amounts and can only be settled in shares of the Corporation’s common stock. Included in those 304,408 performance unit awards were 29,171 units granted to retirement-eligible executives at the grant date. The performance un it will vest based on the achievement of a pre-established tangible book value per share target as of December 31, 2020. All of the performance units will vest if performance is at the pre-established performance target level or above. However, the parti cipants may vest on 50 % of the awards to the extent that performance is below the target but at 80 % of the pre-established performance target level (the 80% minimum threshold). If performance is between the 80% minimum threshold and the pre-established pe rformance target level, the participants will vest on a proportional amount. No performance units will vest if performance is below the 80% minimum threshold. The fair value of the performance unit awards granted in the first quarter of 2018 was based o n the market price of the Corporation’s outstanding common stock on the date of the grant. For the first quarter of 2018, the Corporation recognized $ 0.2 million of stock-based compensation related to performance unit awards. As of March 31, 2018, there was $ 1.7 million of total unrecognized compensation cost related to unvested performance units that the Corporation expects to recognize over the three-year requisite service period. The total expense determined for the performance unit awards granted to r etirement-eligible executives was charged against earnings at the grant date. The total amount of compensation expense recognized reflects management’s assessment of the probability that the pre-established performance goal will be achieved. A cumulative a djustment is recognized to compensation expense in the current period to reflect any changes in the probability of achievement of the performance goals. Salary stock Also, 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 issued under the Omnibus Plan , instead of cash. During the first quarter of 201 8 , the Corporation issued 154,187 shares of common stock (first quarter of 201 7 – 135,69 2 shares) with a weighted average market value of $ 5.80 (first quarter of 201 7 - $ 6.31 ) as salary stock compensation. This resulted in a compensation expense of $ 0.8 million recorded in each of the first quarter of 201 8 and 2017. During the quarter ended March 31, 2018 , the Corporation withheld 56,131 shares (first quarter of 2017 – 45,710 sh ares) from the common stock paid to certain senior officers as addit ional compensation and 326,956 shares of the restricted stock that vested during the first quarter of 201 8 (first quarter of 201 7 – 52,590 shares) to cover employees’ payroll and income tax withholding liabilities; these shares are held as treasury shares. The Corporation paid in cash any fract ional share of salary stock to which the officer was entitled . In the consolidated financial statements, the Corporation treats shares withheld for tax purposes as common stock repurchases. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2018 | |
INVESTMENT SECURITIES | 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 yiel d of investment securities available for sale by contractual maturities as of March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 Amortized cost Noncredit Loss Component of OTTI Recorded in OCI Gross Fair value Unrealized Weighted- gains losses average yield % (Dollars in thousands) U.S. Treasury securities: Due within one year $ 49,799 $ - $ - $ 22 $ 49,777 1.55 After 1 to 5 years 7,465 - - 73 7,392 1.29 U.S. government-sponsored agencies obligations: Due within one year 72,484 - - 242 72,242 1.08 After 1 to 5 years 309,459 - - 4,996 304,463 1.42 After 5 to 10 years 133,471 - 26 2,736 130,761 2.74 After 10 years 39,190 - - 254 38,936 2.07 Puerto Rico government obligations: After 5 to 10 years 4,052 - 22 - 4,074 3.14 After 10 years 4,035 - - 1,301 2,734 6.97 United States and Puerto Rico government obligations 619,955 - 48 9,624 610,379 1.76 Mortgage-backed securities: Freddie Mac ("FHLMC") certificates: After 5 to 10 years 43,037 - 12 1,305 41,744 1.96 After 10 years 262,934 - - 8,379 254,555 2.28 305,971 - 12 9,684 296,299 2.23 Ginnie Mae ("GNMA") certificates: After 1 to 5 years 136 - 3 - 139 2.77 After 5 to 10 years 65,098 - 683 137 65,644 3.04 After 10 years 140,314 - 4,492 986 143,820 3.81 205,548 - 5,178 1,123 209,603 3.57 Fannie Mae ("FNMA") certificates: After 1 to 5 years 15,735 - 177 195 15,717 2.89 After 5 to 10 years 109,562 - - 4,279 105,283 1.76 After 10 years 531,560 - 1,818 14,320 519,058 2.52 656,857 - 1,995 18,794 640,058 2.40 Collateralized mortgage obligations guaranteed by the FHLMC and GNMA After 1 to 5 years 8,154 - 8 11 8,151 2.53 After 10 years 34,619 - 321 - 34,940 2.53 42,773 - 329 11 43,091 2.53 Other mortgage pass-through trust certificates: After 10 years 21,309 5,235 - - 16,074 4.49 Total mortgage-backed securities 1,232,458 5,235 7,514 29,612 1,205,125 2.60 Total investment securities available for sale $ 1,852,413 $ 5,235 $ 7,562 $ 39,236 $ 1,815,504 2.32 December 31, 2017 Amortized cost Noncredit Loss Component of OTTI Recorded in OCI Gross Fair value Unrealized Weighted- gains losses average yield% (Dollars in thousands) U.S. Treasury securities: After 1 to 5 years $ 7,458 $ - $ - $ 57 $ 7,401 1.29 U.S. government-sponsored agencies obligations: Due within one year 122,471 - - 319 122,152 1.06 After 1 to 5 years 309,472 - 28 3,735 305,765 1.42 After 5 to 10 years 133,451 - 117 319 133,249 2.72 After 10 years 40,769 - 1 149 40,621 1.84 Puerto Rico government obligations: After 5 to 10 years 4,071 - 47 - 4,118 3.14 After 10 years 3,972 - - 1,277 2,695 6.97 United States and Puerto Rico government obligations 621,664 - 193 5,856 616,001 1.70 Mortgage-backed securities: FHLMC certificates: After 5 to 10 years 18,658 - 14 63 18,609 2.14 After 10 years 297,733 - 217 4,853 293,097 2.23 316,391 - 231 4,916 311,706 2.23 GNMA certificates: After 1 to 5 years 81 - 1 - 82 3.23 After 5 to 10 years 69,661 - 1,244 - 70,905 3.05 After 10 years 145,067 - 5,910 334 150,643 3.81 214,809 - 7,155 334 221,630 3.56 FNMA certificates: After 1 to 5 years 20,831 - 294 109 21,016 2.69 After 5 to 10 years 49,934 - - 818 49,116 1.83 After 10 years 613,129 - 3,180 6,401 609,908 2.43 683,894 - 3,474 7,328 680,040 2.39 Collateralized mortgage obligations issued or guaranteed by FHLMC and GNMA: After 1 to 5 years 5,918 - 14 - 5,932 2.21 After 5 to 10 years 2,556 - 11 - 2,567 2.23 After 10 years 35,331 - 231 - 35,562 2.22 43,805 - 256 - 44,061 2.22 Other mortgage pass-through trust certificates: After 10 years 22,791 5,731 - - 17,060 2.44 Total mortgage-backed securities 1,281,690 5,731 11,116 12,578 1,274,497 2.54 Other Due within one year 100 - - - 100 1.48 Equity Securities (1) 424 - - 6 418 2.11 Total investment securities available for sale $ 1,903,878 $ 5,731 $ 11,309 $ 18,440 $ 1,891,016 2.27 (1) As of January 1, 2018, the Corporation adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment securities to other investment securities. Maturities of mortgage-backed securities (“MBS”) 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 o f OTTI are presented as part of OCI. The following tables show the Corporation’s available-for-sale investments’ fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continu ous unrealized loss position, as of March 31, 2018 and December 31, 2017 . The tables also include debt securities for which an OTTI was recognized and only the amount related to a credit loss was recognized in earnings. For u nrealize d losses for which OTTI was re cognized, the related credit loss was charged against the amortized cost basis of the debt security. As of March 31, 2018 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 $ - $ - $ 2,734 $ 1,301 $ 2,734 $ 1,301 U.S. Treasury and U.S. government agenciesʼ obligations 238,248 3,306 360,298 5,017 598,546 8,323 Mortgage-backed securities: FNMA 354,552 7,690 259,076 11,104 613,628 18,794 FHLMC 138,510 2,916 157,598 6,768 296,108 9,684 GNMA 68,490 1,123 - - 68,490 1,123 Collateralized mortgage obligations issued or guaranteed by FHLMC and GNMA 5,907 11 - - 5,907 11 Other mortgage pass-through trust certificates - - 16,074 5,235 16,074 5,235 $ 805,707 $ 15,046 $ 795,780 $ 29,425 $ 1,601,487 $ 44,471 As of December 31, 2017 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 $ - $ - $ 2,695 $ 1,277 $ 2,695 $ 1,277 U.S. Treasury and U.S. government agenciesʼ obligations 136,459 494 362,050 4,085 498,509 4,579 Mortgage-backed securities: FNMA 189,699 1,705 274,963 5,623 464,662 7,328 FHLMC 91,174 590 166,331 4,326 257,505 4,916 GNMA 39,145 334 - - 39,145 334 Other mortgage pass-through trust certificates - - 17,060 5,731 17,060 5,731 Equity securities (1) - - 407 6 407 6 $ 456,477 $ 3,123 $ 823,506 $ 21,048 $ 1,279,983 $ 24,171 (1) As of January 1, 2018, the Corporation adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment securities to other investment securities. Assessment for OTTI Debt securities issued by U.S. government agencies, U.S. government-sponsored entities, and the U.S. Treasury accounted for approximately 98 % of the total available-for-sale portfolio as of March 31, 2018, and no credit losses are expected, given the explicit and implicit guarantees provided by the U.S. federal government. The Corporation’s OTTI assessment was concentrated mainly on private label MBS, and on Puerto Rico government debt securities, for which credit losses are evaluated on a quarterly basis. The Corporation considered the following factors in determining whether a credit loss exists and the period over which the debt security is expected to recover: The length of time and the extent to which the fair value has been less than the amortized cost basis; Any adverse change to the cr edit 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 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; and The level of cash flows generated from the underlying collateral, if any, supporting the principal and interest payments of the debt securities. The Corporation recorded OTTI losses on available-for-sale debt securities as follows: Quarter ended March 31, 2018 2017 (In thousands) Total other-than-temporary impairment losses $ - $ (12,231) Portion of other-than-temporary impairment recognized in OCI - - Net impairment losses recognized in earnings (1) $ - $ (12,231) _________ (1) Credit losses on Puerto Rico government debt securities, recorded in the first quarter of 2017. 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 December 31, recognized in earnings on March 31, 2017 securities that have been 2018 Balance previously impaired Balance (In thousands) Available-for-sale securities Private label MBS $ 6,792 $ - $ 6,792 Cumulative OTTI credit losses recognized in earnings on securities still held Credit impairments December 31, recognized in earnings on March 31, 2016 securities that have been 2017 Balance previously impaired Balance (In thousands) Available for sale securities Puerto Rico government obligations $ 22,189 $ 12,231 $ 34,420 Private label MBS 6,792 $ - 6,792 Total OTTI credit losses for available-for-sale debt securities $ 28,981 $ 12,231 $ 41,212 During the second quarter of 2017, the Corporation sold for an aggregate of $ 23.4 million three Puerto Rico government available-for-sale debt securities, specifically bonds of the Government Development Bank for Puerto Rico (the “GDB”) and the Puerto Rico Public Buildings Authority, carried on its book at an amortized cost at the time of sale of $ 23.0 million (net of $ 34.4 million in cumulative OTTI impairment charges). Approximately $ 12.2 million of the cumulative OTTI charges on these securities was recorded in the first quarter of 2017. For the OTTI charge recorded on the Puerto Rico government debt securities in the first quarter of 2017, the Corporation considered the latest available information about the Puerto Rico government’s financial condition, including but not limited to credit ratings downgrades, revised estimates of recovery rates, and other relevant developments such as government actions, including debt exchange proposals and the fiscal plan published by the Puerto Rico government in March 2017, as applicable. The Corporation applied a discounted cash flow analysis to its Puerto Rico government debt securities in order to calculate the cash flows expected to be collected and to determine if any portion of the decline in market value of these securities was considered a credit-related OTTI. The analysis derived an estimate of value based on the present value of risk-adjusted cash flows of the underlying securities and included consideration of the following components: The contractual future cash flows of the bonds were projected based on the 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 were 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 were assumed throughout the life of the bonds, which considered the respective security's credit rating as of the date of the analysis. The adjusted future cash flows were then discounted at the original effective yield of each investment based on the purchase price and expected risk-adjusted future cash flows as of the purchase date of each investment . The discounted risk-adjusted cash flow analysis for the three Puerto Rico government bonds mentioned above assumed a default probability of 100 %, as these three non-performing bonds had been in default since the third quarter of 2016. Based on this analysis, the Corporation recorded in the first quarter of 2017 credit-related OTTI amounting to $12.2 million, assuming recovery rates ranging from 15 % to 80 % (with a weighted average of 41 %). In addition, the Corporation performed on OTTI assessment on its private label MBS, which are collateralized by fixed-rate mortgages on single-family residential properties in the United States. The interest rate on these private-label MBS is variable, tied to 3-month LIBOR and limited to the weighted-average coupon on the underlying collateral. The underlying mortgages are fixed-rate, single-family loans with original FICO scores (over 700 ) and moderate loan-to-value ratios (under 80 %), as well as moderate delinquency levels. Based on the expected cash flows, and since the Corporation does not have the intention to sell the securities and has sufficient capital and liquidity to hold these securities until a recovery of the fair value occurs, only the credit loss component, if any, is reflected in earnings. Significant assumptions in the valuation of the private label MBS were as follows: As of As of March 31, 2018 December 31, 2017 Weighted Weighted Average Range Average Range Discount rate 14.5% 14.5% 14.0% 14.0% Prepayment rate 15.2% 7.5% - 24.5% 16.4% 12.0% - 29.0% Projected Cumulative Loss Rate 4% 0% - 9% 3% 0% - 6.8% No OTTI charges on private label MBS were recorded in either the first quarter of 2018 or the first quarter of 2017. Investments Held to Ma turity T he amortized cost, gross unrealized gains and losses, approximate fair value, weighted-average yield and contractual maturities of investment securities held to maturity as of March 31, 201 8 and December 31, 201 7 were as follows: March 31, 2018 Amortized cost Fair value Gross Unrealized Weighted- gains losses average yield% Puerto Rico Municipal Bonds: After 1 to 5 years $ 3,712 $ - $ 161 $ 3,551 5.39 After 5 to 10 years 39,523 - 2,703 36,820 5.35 After 10 years 107,251 - 12,766 94,485 5.21 Total investment securities held to maturity $ 150,486 $ - $ 15,630 $ 134,856 5.25 December 31, 2017 Amortized cost Fair value Gross Unrealized Weighted gains losses average-yield% Puerto Rico Municipal Bonds: After 1 to 5 years $ 3,853 $ - $ 173 $ 3,680 5.38 After 5 to 10 years 39,523 - 3,048 36,475 5.28 After 10 years 107,251 - 16,374 90,877 4.93 Total investment securities held to maturity $ 150,627 $ - $ 19,595 $ 131,032 5.03 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 March 31, 201 8 and December 31, 201 7 : As of March 31, 2018 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 $ - $ - $ 134,856 $ 15,630 $ 134,856 $ 15,630 As of December 31, 2017 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 $ - $ - $ 131,032 $ 19,595 $ 131,032 $ 19,595 The Corporation determines the fair market value of Puerto Rico Municipal Bonds based on a discounted cash flow analysis using risk - adjusted discount 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 quarter. Approximately 70 % of the held -to-maturity municipal bonds were issued by three of the largest municipalities in Puerto Rico. The vast majority of revenues of these three municipalities is independent of the Puerto Rico central government. 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, these bonds have priority over the payment of operating costs 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 PROMESA oversight board has not designated any of Puerto Rico’s 78 municipalities as covered entities under PROM ESA. However, while the fiscal plan recently certified by the PROMESA ove rsight board did not contemplate a restructuring of the debt of Puerto Rico’s municipalities, the plan did call for the gradual elimination of budgetary subsidies provided to municipalities by the central government . Furthermore, municipalities are also li kely to be affected by the negative economic and other effects resulting from the recent hurricanes and from expense, revenue or cash management measures taken by the Puerto Rico government to address its fiscal and liquidity shortfalls, or measures includ ed in fiscal plans of other government entities, such as the fiscal plans of the GDB and the Puerto Rico Electric Power Authority (“PREPA”) . Given the uncertain effect that the negative fiscal situation of the Puerto Rico central government and the measure s taken or to be taken by other government entities may have on municipalities, the Corporation cannot be certain if future impairment charges will be required relating to these securities. From time to time, the Corporation has securities held to ma turity with an original maturity of three months or less that are considered cash and cash equivalents and classified as money market investments in the consolidated statements of financial condition . As of March 31, 2018 and December 31, 2017, the Corpor ation had no outstanding securities held to maturity that were classified as cash and cash equivalents. |
OTHER EQUITY SECURITIES
OTHER EQUITY SECURITIES | 3 Months Ended |
Mar. 31, 2018 | |
OTHER EQUITY SECURITIES | NOTE 6 – OTHER INVESTMENT SECURITIES Institutions that are members of the FHLB system are required to maintain a minimum investment in FHLB stock. Such minimum investment is calculated as a percentage of aggregate outstanding mortgages, and the FHLB requires an additional investment that is calculated as a percentage of total FHLB advances, letters of credit, and the collateralized portion of outstanding interest-rate swaps . The stock is capital stock issued at $ 100 par value. Both stock and cash dividends may be received on FHLB stock. As of each March 31, 2018 and December 31, 2017 , the Corporation had investments in FHLB stock with a book value of $ 40.9 million . The net realizable value is a reasonable proxy for the fair value of these instruments. Dividend income from FHLB stock for the quarters ended March 31, 2018 and 2017 was $ 0.7 million and $ 0.5 million, respectively. The FHLB of New York issued the shares of FHLB stock owned by the Corporation. The FHLB of New Yor k is part 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 ho using finance mission. As of January 1, 2018, the Corporation adopted ASU 2016-01, resulting in the reclassification of equity securities with readily determinable fair value of approximately $ 0.4 million from available-for-sale investment securities to o ther investment securities. During the first quarter of 2018, the Corporation measured these equity securities at fair value through earnings resulting in the recognition of a market-to-market loss of $ 7 thousand recorded as part of other non-interest inco me in the statement of income. The Corporation has other equity securities that do not have a readily-available fair value. The carrying value of such securities as of each March 31, 2018 and December 31, 2017 was $ 2.2 million . |
LOAN PORTFOLIO
LOAN PORTFOLIO | 3 Months Ended |
Mar. 31, 2018 | |
LOAN PORTFOLIO | NOTE 7 – LOANS HELD FOR INVESTMENT The following provides information about the loan portfolio held for investment: As of As of March 31, December 31, 2018 2017 (In thousands) Residential mortgage loans, mainly secured by first mortgages $ 3,267,868 $ 3,290,957 Commercial loans: Construction loans (1) 79,150 111,397 Commercial mortgage loans (1) 1,552,503 1,614,972 Commercial and Industrial loans (2) 2,061,773 2,083,253 Total Commercial loans 3,693,426 3,809,622 Finance leases 262,863 257,462 Consumer loans 1,471,733 1,492,435 Loans held for investment (2) 8,695,890 8,850,476 Allowance for loan and lease losses (225,856) (231,843) Loans held for investment, net $ 8,470,034 $ 8,618,633 __________ (1) During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). (2) As of March 31, 2018 and December 31, 2017, includes $823.2 million and $833.5 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 were as follows: As of As of March 31, December 31, 2018 2017 (In thousands) Non-performing loans: Residential mortgage $ 171,380 $ 178,291 Commercial mortgage (1) 115,179 156,493 Commercial and Industrial 85,325 85,839 Construction: Land 14,949 15,026 Construction-commercial (1) - 35,100 Construction-residential 1,287 1,987 Consumer: Auto loans 13,453 10,211 Finance leases 1,801 1,237 Other consumer loans 8,603 5,370 Total non-performing loans held for investment (2)(3)(4) $ 411,977 $ 489,554 _______________ (1) During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). (2) Excludes $64.9 million and $8.3 million of non-performing loans held for sale as of March 31, 2018 and December 31, 2017, respectively. (3) Amount excludes purchased-credit impaired ("PCI") loans with a carrying value of approximately $155.3 million and $158.2 million as of March 31, 2018 and December 31, 2017, 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. (4) Non-performing loans exclude $366.4 million and $374.7 million of Troubled Debt Restructuring ("TDR") loans that are in compliance with the modified terms and in accrual status as of March 31, 2018 and December 31, 2017, respectively. During the first quarter of 2018, the Corporation transferred to held for sale three non-performing commercial and construction loans. The aggregate recorded investment in these loans was written down to $ 57.2 million, which resulted in charge-offs of $ 9.7 million of which $ 4.1 million was taken against previously-established reserves for loan losses, resulting in a charge to the provision for loan and lease losses of $ 5.6 million for the first quarter of 2018. Loans transferred to held for sale consiste d of a $ 30.0 million non-performing construction loan (net of a $ 5.1 million fair value write-down ) and two non-performing commercial mortgage loans totaling $ 27.2 million (net of fair value write-downs of $ 4.6 million). Loans i n Process o f Foreclosure As of March 31, 2018, the recorded investment of residential mortgage loans collateralized by residential real estate property that are in the process of foreclosure amounted to $ 152.3 m illion, including $ 22.7 million of loans insured by the FHA or guaranteed by the VA, and $ 18.2 million of PCI loans. The Corporation commences the foreclosure process on residential real estate loans when a borrower becomes 120 days delinquent in accordance with the guidelines of the Consumer Financial Protection Bureau ( “ CFPB ” ). Foreclosure procedures and timelines vary depending on whether the property is located in a judicial or non-judicial state. Judicial states (Puerto Rico, Florida and USVI) require the foreclosure to be proc essed through the state’s court while foreclosure in non-judicial states (BVI) is processed without court intervention. Foreclosure timelines vary according to state law and investor guidelines. Occasionally, foreclosures may be delayed due to , among other reasons, mandatory me diations, bankruptcy, court delays and ti tle issues. The Corporation’s aging of the loans held for investment portfolio is as follows: As of March 31, 2018 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) $ - $ 3,665 $ 107,693 $ 111,358 $ - $ 35,927 $ 147,285 $ 107,693 Other residential mortgage loans (4) - 57,505 186,535 244,040 151,067 2,725,476 3,120,583 15,155 Commercial: Commercial and Industrial loans 13,137 2,419 86,095 101,651 - 1,960,122 2,061,773 770 Commercial mortgage loans (4) - 49,807 119,156 168,963 4,214 1,379,326 1,552,503 3,977 Construction: Land (4) - 12 17,108 17,120 - 9,330 26,450 2,159 Construction-commercial - 1,012 - 1,012 - 45,227 46,239 - Construction-residential (4) - - 2,488 2,488 - 3,973 6,461 1,201 Consumer: Auto loans 32,438 7,891 13,453 53,782 - 784,711 838,493 - Finance leases 5,843 2,216 1,801 9,860 - 253,003 262,863 - Other consumer loans 13,701 4,577 10,434 28,712 - 604,528 633,240 1,831 Total loans held for investment $ 65,119 $ 129,104 $ 544,763 $ 738,986 $ 155,281 $ 7,801,623 $ 8,695,890 $ 132,786 _____________ (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 $30.6 million of residential mortgage loans insured by the FHA or guaranteed by the VA that are over 15 months delinquent, and are no longer accruing interest as of March 31, 2018. (3) As of March 31, 2018, includes $73.3 million of defaulted loans collateralizing Government National Mortgage Association ("GNMA") securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans. (4) According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two or more monthly payments. FHA/VA 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 March 31, 2018 amounted to $6.8 million, $122.0 million, $5.2 million, $0.6 million, and $0.2 million respectively. As of December 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due (1) Total Past Due Purchased Credit- Impaired Loans Current Total loans held for investment 90 days past due and still accruing (2) (3) (In thousands) Residential mortgage: FHA/VA and other government-guaranteed loans (2)(3)(4) $ - $ 6,792 $ 102,815 $ 109,607 $ - $ 29,332 $ 138,939 $ 102,815 Other residential mortgage loans (4) - 92,502 193,750 286,252 153,991 2,711,775 3,152,018 15,459 Commercial: Commercial and Industrial loans 8,971 576 88,156 97,703 - 1,985,550 2,083,253 2,317 Commercial mortgage loans (4) - 7,525 163,180 170,705 4,183 1,440,084 1,614,972 6,687 Construction: Land (4) - 124 15,177 15,301 - 11,630 26,931 151 Construction-commercial - - 35,100 35,100 - 41,456 76,556 - Construction-residential - 95 1,987 2,082 - 5,828 7,910 - Consumer: Auto loans 57,560 23,783 10,211 91,554 - 752,777 844,331 - Finance leases 10,549 3,484 1,237 15,270 - 242,192 257,462 - Other consumer loans 10,776 5,052 9,361 25,189 - 622,915 648,104 3,991 Total loans held for investment $ 87,856 $ 139,933 $ 620,974 $ 848,763 $ 158,174 $ 7,843,539 $ 8,850,476 $ 131,420 ____________ (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 $29.9 million of residential mortgage loans insured by the FHA or guaranteed by the VA that are over 15 months delinquent, and are no longer accruing interest as of December 31, 2017. (3) As of December 31, 2017, includes $62.1 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 on two or more monthly payments. FHA/VA and other government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, and land loans past due 30-59 days as of December 31, 2017 amounted to $6.0 million, $224.0 million, $9.0 million, and $2.5 million, respectively. The Corporation’s credit quality indicators by loan type as of March 31, 2018 and December 31, 2017 are summarized below: Commercial Credit Exposure-Credit Risk Profile Based on Creditworthiness Category: Substandard Doubtful Loss Total Adversely Classified (1) Total Portfolio March 31, 2018 (In thousands) Commercial mortgage $ 269,926 $ 2,117 $ - $ 272,043 $ 1,552,503 Construction: Land 15,971 391 - 16,362 26,450 Construction-commercial - - - - 46,239 Construction-residential 1,287 - - 1,287 6,461 Commercial and Industrial 144,205 7,745 729 152,679 2,061,773 Commercial Credit Exposure-Credit Risk Profile Based on Creditworthiness Category: Substandard Doubtful Loss Total Adversely Classified (1) Total Portfolio December 31, 2017 (In thousands) Commercial mortgage $ 257,503 $ 4,166 $ - $ 261,669 $ 1,614,972 Construction: Land 15,971 490 - 16,461 26,931 Construction-commercial 35,100 - - 35,100 76,556 Construction-residential 1,987 - - 1,987 7,910 Commercial and Industrial 154,416 3,854 676 158,946 2,083,253 _________ (1) Excludes non-peforming loans held for sale of $64.9 million ($27.2 million commercial mortgage, $30.0 million construction-commercial, and $7.7 million construction-land) and $8.3 million (construction-land) as of March 31, 2018 and December 31, 2017, respectively. The Corporation considers a loan as adversely classified if its risk rating is Substandard, Doubtful or Loss. These categories are defined as follows: Substandard – A Substandard as set is inadequately protected by the current sound worth and paying capacity of the 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 sus tain 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 col lection or liquidation in full highly questionable and improbable , on the basis of currently known facts, conditions and values . A Doubtful classification may be appropriate in cases where significant ris k exposures are perceived, but l oss cannot be determined because of specific reasonable pen ding factors , which may strengthen the credit in the near term. Loss – Assets classified Loss are considered un collectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asse t has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this asset even though partial recovery may occur in the future. There is little or no prospect for near term imp rovement and no realistic strengthening action of significance pending. March 31, 2018 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 $ 147,285 $ 2,798,136 $ 825,040 $ 261,062 $ 624,637 Purchased Credit-Impaired (2) - 151,067 - - - Non-performing - 171,380 13,453 1,801 8,603 Total $ 147,285 $ 3,120,583 $ 838,493 $ 262,863 $ 633,240 (1) It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as 90 days past-due loans and still accruing as opposed to non-performing loans since the principal repayment is insured. This balance includes $30.6 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent, and are no longer accruing interest as of March 31, 2018. (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 analyses. December 31, 2017 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 $ 138,939 $ 2,819,736 $ 834,120 $ 256,225 $ 642,734 Purchased Credit-Impaired (2) - 153,991 - - - Non-performing - 178,291 10,211 1,237 5,370 Total $ 138,939 $ 3,152,018 $ 844,331 $ 257,462 $ 648,104 (1) It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as 90 days past due loans and still accruing as opposed to non-performing loans since the principal repayment is insured. This balance includes $29.9 million of residential mortgage loans insured by the FHA or guaranteed by the VA that are over 15 months delinquent, and are no longer accruing interest as of December 31, 2017. (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 analyses. The following tables present information about impaired loans held for investment, excluding PCI loans, which are reported separately as discussed below: Impaired Loans Recorded Investment Unpaid Principal Balance Related Specific Allowance Average Recorded Investment Interest Income Recognized On Accrual Basis Interest Income Recognized On Cash Basis (In thousands) As of March 31, 2018 With no related specific allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 94,817 126,672 - 95,274 723 170 Commercial: Commercial mortgage loans 60,811 99,837 - 61,445 82 37 Commercial and Industrial loans 24,712 27,679 - 24,825 246 11 Construction: Land - - - - - - Construction-commercial - - - - - - Construction-residential - - - - - - Consumer: Auto loans 387 387 - 394 2 - Finance leases - - - - - - Other consumer loans 2,266 3,051 - 2,327 29 17 $ 182,993 $ 257,626 $ - $ 184,265 $ 1,082 $ 235 With a related specific allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 322,793 359,048 22,546 324,110 3,654 231 Commercial: Commercial mortgage loans 101,315 117,838 13,451 102,304 661 47 Commercial and Industrial loans 95,066 117,400 14,375 92,382 302 20 Construction: Land 11,815 20,001 1,432 11,864 25 8 Construction-commercial - - - - - - Construction-residential 252 355 52 252 - - Consumer: Auto loans 20,424 20,424 3,379 20,943 397 - Finance leases 1,876 1,876 84 1,958 35 - Other consumer loans 9,746 10,092 1,611 9,913 283 27 $ 563,287 $ 647,034 $ 56,930 $ 563,726 $ 5,357 $ 333 Total: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 417,610 485,720 22,546 419,384 4,377 401 Commercial: Commercial mortgage loans 162,126 217,675 13,451 163,749 743 84 Commercial and Industrial loans 119,778 145,079 14,375 117,207 548 31 Construction: Land 11,815 20,001 1,432 11,864 25 8 Construction-commercial - - - - - - Construction-residential 252 355 52 252 - - Consumer: Auto loans 20,811 20,811 3,379 21,337 399 - Finance leases 1,876 1,876 84 1,958 35 - Other consumer loans 12,012 13,143 1,611 12,240 312 44 $ 746,280 $ 904,660 $ 56,930 $ 747,991 $ 6,439 $ 568 Impaired Loans Recorded Investment Unpaid Principal Balance Related Specific Allowance Average Recorded Investment (In thousands) As of December 31, 2017 With no related specific allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - Other residential mortgage loans 116,818 154,048 - 120,241 Commercial: Commercial mortgage loans 65,100 100,612 - 86,563 Commercial and Industrial loans 28,292 31,254 - 28,567 Construction: Land 48 49 - 48 Construction-commercial - - - - Construction-residential - - - - Consumer: Auto loans 267 267 - 290 Finance leases - - - - Other consumer loans 2,521 3,688 - 2,745 $ 213,046 $ 289,918 $ - $ 238,454 With a related specific allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - Other residential mortgage loans 316,616 349,284 22,086 318,606 Commercial: Commercial mortgage loans 87,814 124,084 9,783 93,720 Commercial and Industrial loans 90,008 112,005 12,359 92,666 Construction: Land 11,865 19,973 1,402 14,126 Construction-commercial 35,101 38,595 560 35,996 Construction-residential 252 355 55 252 Consumer: Auto loans 22,338 22,338 3,665 24,328 Finance leases 2,184 2,184 104 2,428 Other consumer loans 11,084 11,830 1,396 11,579 $ 577,262 $ 680,648 $ 51,410 $ 593,701 Total: FHA/VA-Guaranteed loans $ - $ - $ - $ - Other residential mortgage loans 433,434 503,332 22,086 438,847 Commercial: Commercial mortgage loans 152,914 224,696 9,783 180,283 Commercial and Industrial loans 118,300 143,259 12,359 121,233 Construction: Land 11,913 20,022 1,402 14,174 Construction-commercial 35,101 38,595 560 35,996 Construction-residential 252 355 55 252 Consumer: Auto loans 22,605 22,605 3,665 24,618 Finance leases 2,184 2,184 104 2,428 Other consumer loans 13,605 15,518 1,396 14,324 $ 790,308 $ 970,566 $ 51,410 $ 832,155 Interest income of approximately $6.9 million ($6.4 million on an accrual basis and $0.5 million on a cash basis) was recognized on impaired loans for the first quarter of 2017. The following table shows the activity for impaired loans and the related specific reserve during the first quarter of 2018 and 2017: Quarter ended March 31, 2018 March 31, 2017 Impaired Loans: (In thousands) Balance at beginning of period $ 790,308 $ 887,905 Loans determined impaired during the period 61,408 19,628 Charge-offs (1) (2) (17,213) (17,404) Loans sold, net of charge-offs (4,121) (53,245) Increases to existing impaired loans 6,998 541 Foreclosures (11,675) (9,457) Loans no longer considered impaired (1,507) (892) Loans transferred to held for sale (57,213) - Paid in full or partial payments (20,705) (19,878) Balance at end of period $ 746,280 $ 807,198 (1) The first quarter of 2018 includes charge-offs totaling $9.7 million associated with the $57.2 million in non-performing loans transferred to held for sale. (2) The first quarter of 2017 includes a charge-off of $10.7 million related to the sale of the PREPA credit line as further discussed below. Quarter ended March 31, 2018 March 31, 2017 Specific Reserve: (In thousands) Balance at beginning of period $ 51,410 $ 64,421 Provision for loan losses 22,703 18,862 Net charge-offs (17,183) (16,972) Balance at end of period $ 56,930 $ 66,311 Purchased Credit Impaired Loans (PCI) The Corporation acquired PCI loans accounted for under ASC 310-30 as part of a transaction that 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, that 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 pr eviously 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 mort gages 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 characteristics (i.e. delinquency status and loan terms). Each loan pool is accou nted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Si nce the loans are ac counted for under ASC 310-30, they are not considered non-performing and will continue to have an accretab le 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 portfolio when it is probable that the Corporation will be unable to collect all cash flows expected as of the acquisition date plus additional cash flows expected to be collected arising from changes in estimates after the acquisition date. The carrying amounts of PCI loans were as follows: As of March 31, December 31, 2018 2017 (In thousands) Residential mortgage loans $ 151,067 $ 153,991 Commercial mortgage loans 4,214 4,183 Total PCI loans $ 155,281 $ 158,174 Allowance for loan losses (11,251) (11,251) Total PCI loans, net of allowance for loan losses $ 144,030 $ 146,923 The following tables present PCI loans by past due status as of March 31, 2018 and December 31, 2017: As of March 31, 2018 30-59 Days 60-89 Days 90 days or more Total Past Due Total PCI loans Current (In thousands) Residential mortgage loans $ - $ 8,291 $ 27,025 $ 35,316 $ 115,751 $ 151,067 Commercial mortgage loans - - 3,234 3,234 980 4,214 Total (1) $ - $ 8,291 $ 30,259 $ 38,550 $ 116,731 $ 155,281 _____________ (1) According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage and commercial mortgage loans are considered past due when the borrower is in arrears two or more monthly payments. PCI residential mortgage loans and commercial mortgage loans past due 30-59 days as of March 31, 2018 amounted to $13.5 million and $0.2 million, respectively. As of December 31, 2017 30-59 Days 60-89 Days 90 days or more Total Past Due Total PCI loans Current (In thousands) Residential mortgage loans $ - $ 16,600 $ 26,471 $ 43,071 $ 110,920 $ 153,991 Commercial mortgage loans - 355 2,834 3,189 994 4,183 Total (1) $ - $ 16,955 $ 29,305 $ 46,260 $ 111,914 $ 158,174 _____________ (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, 2017 amounted to $28.1 million and $0.2 million, respectively Initial Fair Value and Accretable Yield of PCI Loans At acquisition, the Corporation estimated the cash flows the Corporation expected to collect on PCI loans. Under the accounting guidance for PCI loans, the difference between the contractually required payments and the cash flows expected to be collected at acquisition is referred to as the 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 fr om non-accretable yield to accretable yield. Increases in the cash flows expected to be collected will generally result in an increase in interest income over the remaining life of the loan or pool of loans. Decreases in expected cash flows due to further credit deterioration will generally result in an impairment charge recognized in the Corporation’s provision for loan and lease losses, resulting in an increase to the allowance for loan and lease losses. As of March 31, 2018, the reserve related to PCI lo ans acquired from Doral Financial in 2014 and from Doral Bank in 2015 amounted to $ 11.3 million. Changes in the accretable yield of PCI loans for the quarters ended March 31, 2018 and 2017 were as follows: March 31, 2018 March 31, 2017 (In thousands) Balance at beginning of period $ 103,682 $ 116,462 Accretion recognized in earnings (2,623) (2,797) Balance at end of period $ 101,059 $ 113,665 Changes in the carrying amount of loans accounted for pursuant to ASC 310-30 were as follows: Quarter ended Quarter ended March 31, 2018 March 31, 2017 (In thousands) Balance at beginning of period $ 158,174 $ 165,818 Accretion 2,623 2,797 Collections (3,396) (4,593) Foreclosures (2,120) (922) Ending balance $ 155,281 $ 163,100 Allowance for loan losses (11,251) (6,857) Ending balance, net of allowance for loan losses $ 144,030 $ 156,243 Changes in the allowance for loan losses related to PCI loans were as follows: Quarter ended Quarter ended March 31, 2018 March 31, 2017 (In thousands) Balance at beginning of period $ 11,251 $ 6,857 Provision for loan losses - - Balance at the end of period $ 11,251 $ 6,857 The outstanding principal balance of PCI loans, including amounts charged off by the Corporation, amounted to $ 192.0 million as o f March 31, 2018 (December 31, 2017 - $ 196.6 million). Purchases and Sales of Loans During the first quarter of 2018, the Corporation purchased $ 14.5 million of residential mortgage loans consistent with a strategic program to purchase ongoing residential mortgage loan production from mortgage bankers in Puerto Rico . In general, the loans purchased from mortgage bankers were conforming residential mortgage loans. Purchases of conforming residential mortgage loans provide the Corporation the flexibility to retain or sell the loans, including through securit ization 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 mo rtgage loans (originated or purchased) to GNMA and government-sponsored entities (“GSEs”), such as FNMA and FHLMC, which generally securitize the transferred loans into mortgage-backed securities for sale into the secondary market. During the first quarter of 2018, the Corporation sold $ 54.4 million of FHA/VA mortgage loans to GNMA, which packaged them into mortgage-backed securities. Also during the first quarter of 2018, the Corporation sold approximately $ 20.1 million of performing residential mortgage l oans to FNMA and FHLMC. The Corporation’s continuing involvement in these sold loans consists primarily of servicing the loans. In addition, the Corporation agreed to repurchase loans when it breaches any of the representations and warranties included in t he sale agreement. These representations and warranties are consistent with the GSEs’ selling and servicing guidelines (i.e., ensuring that the mortgage was properly underwritten according to established guidelines). For loans sold to GNMA, the Corporatio n holds an option to repurchase individual delinquent loans issued on or after January 1, 2003 when the borrower fails to make any payment for three consecutive months. This option gives the Corporation the ability, but not the obligation, to repurchase th e delinquent loans at par without prior authorization from GNMA. Under ASC Topic 860, Transfer and Servicing , once the Corporation has the unilateral ability to repurchase the delinquent loan, it is considered to have regained effective control over the loan and is required to recognize the loan and a corresponding repurchase liability on the balance sheet regardless of the Corporation’s intent to repurchase the loan. As of March 31, 2018 and December 31, 2017, rebooked GNMA delinquent loans included in t he residential mortgage loan portfolio amounted to $73.3 million and $62.1 million, respectively. During the first quarters of 2018 and 2017, the Corporation repurchased, pursuant to its repurchase option with GNMA, $ 1.1 million and $ 10.7 million, respect ively, of loans previously sold to GNMA. The principal balance of these loans is fully guaranteed and the risk of loss related to the repurchased loans is generally limited to the difference between the delinquent interest payment advanced to GNMA, which is computed at the loan’s interest rate, and the interest payments reimbursed by FHA, which are computed at a pre-determined debenture rate. Repurchases of GNMA loans allow the Corporation, among other things, to maintain acceptable delinquency rates on o utstanding GNMA pools and remain as a seller and servicer in good standing with GNMA. During the fourth quarter of 2017, the Corporation requested and received approval from GNMA for the exclusion of loans in the areas affected by Hurricanes Irma and Maria from calculations of delinquency and default ratios established in the GNMA Mortgage-Backed Securities Guide. The Corporation generally remediates any breach of representations and warranties related to the underwriting of such loans according to establis hed 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 perfor mance of the loans. The Corporation repurchased at par loans previously sold to FNMA and FHLMC in the amount of $ 3 thousand and $ 6 thousand during the first quarters of 2018 and 2017, respectively. The Corporation’s risk of loss with respect to these loan s is also minimal as these repurchased loans are generally performing loans with documentation deficiencies. In addition, during the first quarter of 2018, the Corporation sold a $ 5.6 million commercial and industrial adversely-classified loan in Pue rto Rico, recording |
ALLOWANCE FOR LOAN AND LEASE LO
ALLOWANCE FOR LOAN AND LEASE LOSSES | 3 Months Ended |
Mar. 31, 2018 | |
ALLOWANCE FOR LOAN AND LEASE LOSSES | NOTE 7 – A LLOWANCE FOR LOAN AND L EASE LOSSES The changes in the allowance for loan and lease losses were as follows: (In thousands) Residential Mortgage Loans Commercial Mortgage Loans Commercial & Industrial Loans Construction Loans Consumer Loans Total Quarter ended March 31, 2018 Allowance for loan and lease losses: Beginning balance $ 58,975 $ 48,493 $ 48,871 $ 4,522 $ 70,982 $ 231,843 Charge-offs (3,371) (6,810) (1,930) (5,177) (12,072) (29,360) Recoveries 335 49 62 13 2,370 2,829 Provision 447 8,661 656 4,764 6,016 20,544 Ending balance $ 56,386 $ 50,393 $ 47,659 $ 4,122 $ 67,296 $ 225,856 Ending balance: specific reserve for impaired loans $ 22,546 $ 13,451 $ 14,375 $ 1,484 $ 5,074 $ 56,930 Ending balance: purchased credit-impaired loans (1) $ 10,873 $ 378 $ - $ - $ - $ 11,251 Ending balance: general allowance $ 22,967 $ 36,564 $ 33,284 $ 2,638 $ 62,222 $ 157,675 Loans held for investment: Ending balance $ 3,267,868 $ 1,552,503 $ 2,061,773 $ 79,150 $ 1,734,596 $ 8,695,890 Ending balance: impaired loans $ 417,610 $ 162,126 $ 119,778 $ 12,067 $ 34,699 $ 746,280 Ending balance: purchased credit- impaired loans $ 151,067 $ 4,214 $ - $ - $ - $ 155,281 Ending balance: loans with general allowance $ 2,699,191 $ 1,386,163 $ 1,941,995 $ 67,083 $ 1,699,897 $ 7,794,329 (In thousands) Residential Mortgage Loans Commercial Mortgage Loans Commercial & Industrial Loans Construction Loans Consumer Loans Total Quarter ended March 31, 2017 Allowance for loan and lease losses: Beginning balance $ 33,980 $ 57,261 $ 61,953 $ 2,562 $ 49,847 $ 205,603 Charge-offs (8,225) (1,362) (12,052) (63) (11,192) (32,894) Recoveries 749 30 875 445 2,981 5,080 Provision (release) 9,271 12,539 (4,806) 942 7,496 25,442 Ending balance $ 35,775 $ 68,468 $ 45,970 $ 3,886 $ 49,132 $ 203,231 Ending balance: specific reserve for impaired loans $ 8,551 $ 36,638 $ 12,711 $ 2,835 $ 5,576 $ 66,311 Ending balance: purchased credit-impaired loans (1) $ 6,545 $ 312 $ - $ - $ - $ 6,857 Ending balance: general allowance $ 20,679 $ 31,518 $ 33,259 $ 1,051 $ 43,556 $ 130,063 Loans held for investment: Ending balance $ 3,272,598 $ 1,596,176 $ 2,108,532 $ 137,887 $ 1,707,156 $ 8,822,349 Ending balance: impaired loans $ 432,798 $ 193,035 $ 86,059 $ 51,801 $ 43,505 $ 807,198 Ending balance: purchased credit- impaired loans $ 158,940 $ 4,160 $ - $ - $ - $ 163,100 Ending balance: loans with general allowance $ 2,680,860 $ 1,398,981 $ 2,022,473 $ 86,086 $ 1,663,651 $ 7,852,051 (1) Refer to Note 7 - Loans Held for Investment-PCI Loans for a detail of changes in the allowance for loan losses related to PCI loans. As of March 31, 2018 , the Corporation maintained a $ 0. 6 million reserve for unfunded loan commitments (December 31, 2017 - $ 0.7 million), mainly related to outstanding commitments on floor plan revolving lines of credit. The reserve for unfunded loan commitments is an estimate of the losses inherent in off-balance sheet loan commitments to borrowers that are experiencing financial difficulties at the balance sheet date. It is calculated by multiplying an estimated loss factor by an estima ted probability of funding, and then by the period-end amounts for unfunded commitments. The reserve for unfunded loan commitments is included as part of accounts payable and other liabilities in the consolidated statement of financial condition and any ch ange to the reserve is included as part of other non-interest expenses in the consolidated statements of income . During the first quarter of 2018, the Corporation implemented enhancements to the methodology behind the calculation of the allowance for comm ercial loans, which includes, among others, the following: (i) a revised procedure to determine the historical loss rates applicable for each commercial loan regulatory-based credit risk categories (i.e., pass, special mention, substandard and doubtful) t hat changed the previous blending of loss rates for loans risk-rated special mention, substandard and doubtful with an aggregation methodology whereas historical losses and portfolio balances of special mention loans are allocated to pass or substandard ca tegories bas ed on the historical proportion of the loans in this risk category that ultimate cured or resulted uncollectible; (ii) a quarterly sensitivity analysis using actual historical loss rates for loans risk-rated pass, special mention and substanda rd to compare the results of such sensitivity to the calculated reserves under the revised procedure, and (iii) establishment of sensitivity thresholds that could trigger further reviews and/or adjustments prior to reaching a conclusion as to the adequacy of the allowance for loan and lease losses for the Corporation’s commercial portfolios. The comparison of the revised procedure with the sensitivity analysis resulted in an immaterial increase to the qualitative reserve for commercial mortgage loans that was recorded as of March 31, 2018. The Corporation engaged an independent third party to assess the allowance framework and the appropriateness of assumptions used in the analysis and expects such review to be completed during the second quarter of 2018. Refer to Note 2, – “ Updates on Effects of Natural Disasters ,” for information about changes to the hurricane-related allowance established by the Corporation in 2017. |
LOANS HELD FOR SALE
LOANS HELD FOR SALE | 3 Months Ended |
Mar. 31, 2018 | |
LOANS HELD FOR SALE | NOTE 9 – LOANS HELD FOR SALE The Corporation’s loans held-for-sale portfolio as of the dates indicated was composed of: As of March 31, 2018 December 31, 2017 (In thousands) Residential mortgage loans $ 26,430 $ 24,690 Construction loans (1) 37,732 8,290 Commercial mortgage loans (1) 27,213 - Total (1) $ 91,375 $ 32,980 (1) During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sales consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Other Real Estate Owned Disclosure [Text Block] | NOTE 9 – OTHER REAL ESTATE OWNED The following table presents OREO inventory as of the dates indicated: March 31, December 31, 2018 2017 (In thousands) OREO OREO balances, carrying value: Residential (1) $ 60,240 $ 54,381 Commercial 83,911 82,871 Construction 10,488 10,688 Total $ 154,639 $ 147,940 (1) Excludes $17.8 million and $21.3 million as of March 31, 2018 and December 31, 2017, respectively, of foreclosures that meet the conditions of ASC 310-40 and are presented as a receivable (other assets) in the statement of financial condition. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2018 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 11 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES One of the market risks facing the Corporation is interest rate risk, which includes the risk that changes in interest rates will result in changes in the value of the Corporation’s assets or liabilities and will adversely affect the Corporation’s net interest income from its loan and investment portfolios . The overall objective of the Corporation’s interest rate risk management activities is to reduce the variability of earnings caused by cha nges in interest rates. The Corporation designates a derivative as a fair value hedge, cash flow hedge or economic undesignated hedge when it enters into the derivative contract . As of March 31, 2018 and December 31, 2017 , all derivatives h eld by the Corporation were considered economic undesignated hedges. These undesignated hedges are recorded at fair value with the resulting gain or loss recognized in current earnings. The following summarizes the principal derivative activities used by the Corporation in managing interest rate risk: Interest rate cap agreements - Interest rate cap agreements provide the right to receive cash if a reference interest rate rises above a contractual rate. The value increases as the reference interest rate rises. The Corporation enters into interest rate cap agreements for protection from rising interest rates. Forward c ontracts - Forward contracts are sales of to-be-announced (“TBA”) mortgage-backed securities that will settle over the standard delivery d ate and do not qualify as “regular way” security trades. Regular-way security trades are contracts that have no net settlement provision and no market mechanism to facilitate net settlement and that provide for delivery of a security within the time frame generally established by regulations or conventions in the market- place or exchange in which the transaction is being executed. The forward sales are considered derivative instruments that need to be marked- to- market. These securities are used to economica lly 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 custome rs, 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 Cor poration 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 characte ristics that are not clearly and closely related to the economic characteristics of the host contract, it is bifurcated, carried at fair value, and designated as a trading or non - hedging derivative instrument . The following table summarizes the notional amounts of all derivative instruments: Notional Amounts (1) As of As of March 31, December 31, (In thousands) 2018 2017 Undesignated economic hedges: Interest rate contracts: Written interest rate cap agreements $ 90,510 $ 91,010 Purchased interest rate cap agreements 90,510 91,010 Forward Contracts: Sale of TBA GNMA MBS pools 25,000 26,000 $ 206,020 $ 208,020 (1) Notional amounts are presented on a gross basis with no netting of offsetting exposure positions. The following table summarizes for derivative instruments their fair values and location in the consolidated statements of financial condition: Asset Derivatives Liability Derivatives Statement of March 31, December 31, March 31, December 31, Financial 2018 2017 2018 2017 Condition Location Fair Value Fair Value Statement of Financial Condition Location Fair Value Fair Value (In thousands) Undesignated economic hedges: Interest rate contracts: Written interest rate cap agreements Other assets $ - $ - Accounts payable and other liabilities $ 668 $ 305 Purchased interest rate cap agreements Other assets 668 305 Accounts payable and other liabilities - - Forward Contracts: Sales of TBA GNMA MBS pools Other assets 3 7 Accounts payable and other liabilities 67 19 $ 671 $ 312 $ 735 $ 324 The following table summarizes the effect of derivative instruments on the statement of income: (Loss) Location of Loss Quarter Ended Recognized in Statement March 31, of Income on Derivatives 2018 2017 (In thousands) UNDESIGNATED ECONOMIC HEDGES: Interest rate contracts: Written and purchased interest rate cap agreements Interest income - Loans $ - $ (1) Forward contracts: Sales of TBA GNMA MBS pools Mortgage Banking Activities (52) (56) Total loss on derivatives $ (52) $ (57) 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 expectation s for rates in the future. As of March 31, 2018, the Corporation ha d not entered into any derivative instrument containing credit-risk-related contingent features. |
OFFSETTING OF ASSETS AND LIABIL
OFFSETTING OF ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
OFFSETTING OF ASSETS AND LIABILITIES | NOTE 12 – 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 exposures 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 under the related agreement and any other amount or obligation owed with respect to any other agreement or transaction between them. The following table pres ents information about the offsetting of financial assets and liabilities as w ell as derivative assets and liabilities: Offsetting of Financial Assets and Derivative Assets As of March 31, 2018 Gross Amounts Not Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Financial Instruments Cash Collateral (In thousands) Net Amount Description Derivatives $ 668 $ - $ 668 $ (45) $ (623) $ - Securities purchased under agreements to resell 200,000 (200,000) - - - - Total $ 200,668 $ (200,000) $ 668 $ (45) $ (623) $ - As of December 31, 2017 Gross Amounts Not Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Financial Instruments Cash Collateral Net Amount (In thousands) Description Derivatives $ 305 $ - $ 305 $ (305) $ - $ - Securities purchased under agreements to resell 200,000 (200,000) - - - - Total $ 200,305 $ (200,000) $ 305 $ (305) $ - $ - Offsetting of Financial Liabilities and Derivative Liabilities As of March 31, 2018 Gross Amounts Not Offset in the Statement of Financial Position Net Amounts of Liabilities Presented in the Statement of Financial Position Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Financial Instruments Cash Collateral (In thousands) Net Amount Description Securities sold under agreements to repurchase $ 400,000 $ (200,000) $ 200,000 $ (200,000) $ - $ - As of December 31, 2017 Gross Amounts Not Offset in the Statement of Financial Position Net Amounts of Liabilities Presented in the Statement of Financial Position Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Financial Instruments Cash Collateral Net Amount (In thousands) Description Securities sold under agreements to repurchase $ 500,000 $ (200,000) $ 300,000 $ (300,000) $ - $ - |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 3 Months Ended |
Mar. 31, 2018 | |
GOODWILL AND OTHER INTANGIBLES | NOTE 13 – GOODWILL AND OTHER INTANGIBLES Goodwill as of March 31, 2018 and December 31, 2017 amounted to $ 28.1 m illion , 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 2017. The Corporation’s goodwill is related to the acquisition of FirstBank Florida in 2005. There have been no significant events related to the Florida report ing unit that could indicate potential goodwill impairment since the date of the last evaluation; therefore, no goodwill impairment evaluation was performed during the first quarter of 2018. Goodwill and other indefinite life intangibles are reviewed at le ast annually for impairment. In connection with the acquisition of the FirstBank-branded credit card loan portfolio, in the second quarter of 2012, the Corporation recognized a purchased credit card relationship intangible of $ 24.5 million , which is being amortized over the remaining estimated life of 3.6 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 consum ed. These benefits are consumed as the revenue stream generated by the cardholder relationship is realized. The core deposit intangible includes the core deposit intangible acquired in the February 2015 Doral Bank transaction amounting to $ 3.6 mi llion a s of March 31, 2018. In the first quarter of 2016, FirstBank Insurance Agency acquired certain insurance customer accounts and related customer records and recognized an insurance customer relationship intangible of $1.1 million ($ 0.7 million as of Marc h 31, 2018), which is being amortized over the next 4.7 years on a straight-line basis. The acquired accounts have a direct relationship to the previous mortgage loan portfolio acquisitions from Doral Bank and Doral Financial in 2015 and 2014. The following table shows the gross amount and accumulated amortization of the Corporation’s intangible assets recognized as part of Other Assets in the consolidated statements of financial condition: As of As of March 31, December 31, 2018 2017 (Dollars in thousands) Core deposit intangible: Gross amount, beginning of period $ 51,664 $ 51,664 Accumulated amortization (1) (46,580) (46,186) Net carrying amount $ 5,084 $ 5,478 Remaining amortization period 6.8 years 7.0 years Purchased credit card relationship intangible: Gross amount $ 24,465 $ 24,465 Accumulated amortization (2) (17,039) (16,465) Net carrying amount $ 7,426 $ 8,000 Remaining amortization period 3.6 years 3.9 years Insurance customer relationship intangible: Gross amount $ 1,067 $ 1,067 Accumulated amortization (3) (330) (292) Net carrying amount $ 737 $ 775 Remaining amortization period 4.7 years 5.0 years (1) For the quarters ended March 31, 2018 and 2017, the amortization expense of core deposit intangibles amounted to $0.4 million and $0.5 million, respectively. (2) For each of the quarters ended March 31, 2018 and 2017, the amortization expense of the purchased credit card relationship intangible amounted to $0.6 million. (3) For each of the quarters ended March 31, 2018 and 2017, the amortization expense of the insurance customer relationship intangible amounted to $38 thousand. The estimated aggregate annual amortization expense related to the intangible assets for future periods is as follows: Amount (In thousands) 2018 $ 2,585 2019 3,088 2020 2,851 2021 2,658 2020 915 2023 and after 1,150 |
NON-CONSOLIDATED VARIABLE INTER
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS | 3 Months Ended |
Mar. 31, 2018 | |
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS | NOTE 14 – NON - CONSOLIDATED VARIABLE INTEREST ENTITIES (“VIE”) AND SERVICING ASSETS The Corporation transfers residential mortgage loans in sale or securitization transactions in which it has continuing involvement, including servicing responsibilities and guarantee arrangements. All such transfers have been accounted for as sales , as required by applicable accounting guidance. When evaluating the need to consolidate counterparties to which the Corporation has transferred assets or with which the Cor poration has entered into other transactions, the Corporation first determines if the counterparty is an entity for which a variable interest exists. If no scope exception is applicable and a variable interest exists, the Corporation then evaluates if it i s the primary beneficiary of the VIE and whether the entity should be consolidated or not. Below is a summary of transfers of financial assets to VIEs for which the Corporation has retained some level of continuing involvement: GNMA The Corporation 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 t hrough these transactions are guarant eed by the issuer and, under seller/servicer agreements, the Corporation is required to service the loans in accordance with the issuers’ servicing guidelines and standards. As of March 31, 2018 , the Co rporation serviced loans securitized through GNMA with a principal balance of $ 1.7 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 mi llion of its variable - rate trust-preferred securities. FBP Statutory Trust I used 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 to purchase $ 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 mill ion of its variable- rate trust-preferred securities. FBP Statutory Trust II used 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 to purchase $ 128.9 million aggregate principal amount of the Corporation’s Junior Subordinated Deferrable Debentures. The debentures are presented in the Corporation’s consolidated statement of financial condition as Other Borrowings, net of related issuan ce costs . The variable - rate trust-preferred securities are fully and unconditionally guaranteed by the Corporation. The Junior Subordinated Deferrable Debentures issued by the Corporation in April 2004 and September 2004 mature on June 17, 2034 and Sept ember 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). Durin g the first quarter of 201 8 , the Corporation completed the repurchase of $ 23.8 million of trust preferred securities of the FBP Statutory Trust I that were auctioned in a public sale at which the Corporation was invited to participate. The Corporation repu rchased 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 90 % of the $23.8 million par value. The 1 0 % discou nt resulted in a gain of approximately $ 2.3 million, which is reflected in the statement of income as a “Gain on early extinguishment of debt . ” The Collins Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act eliminate d certain trust -preferred securities from Tier 1 Capital; however, these instruments may remain in Tier 2 capital until the instruments are redeemed or mature. Under the indentures, the Corporation has the right, from time to time, and without causing an event of default , to defer payments of interest on the Junior Subordinated Deferrable 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. Durin g the second quarter of 2016, the Corporation , having received approval from the Federal Reserve , paid $ 31.2 million for all of the accrued but deferred interest payments plus the interest for the second quarter of 2016 on the Corporation’s subordinated debentu res associated with its trust preferred securities. Subsequently, the Corporation has received quarterly approvals that have enabled it to make scheduled quarterly in terest payments. As of March 31, 201 8 , the Corporation was current on all interest payments due on its subordi nated debt. I n October 2017, the New York FED terminated the formal written agreement (the “Written Agreement”) entered into on June 3, 2010 between the Corporation and the Reserve Bank. However, the Corporation has agreed with its regu lators to continue to obtain approval before paying dividends, receiving dividends from the Bank, making payments on subordinated debt or trust-preferred securities, incurring or guaranteeing debt or purchasing or redeeming any corporate stock. The Corpora tion has received approval to make the subordinated debenture s ’ quarterly payment for June 30 , 2018. Grantor Trusts During 2004 and 2005, a n unaffiliated party , 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 “Grantor Trusts”) . 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 agree ment 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 principa l and interest cash flows is performed by another third party, which receives a servicing fee. The securities are variable - rate securities indexed to 90-day LIBOR plus a spread. The principal payments from the underlying loans are remitted to a paying agen t (servicer) , who then remits interest to the Bank. I nterest income is shared to a certain extent with the FDIC, which has an interest only strip (“IO”) tied to the cash flows of the underlying loans and is entitled to receive the excess of the interest in come less a servicing fee over the variable- rate income that the Bank earns on the securities. This IO is limited to the weighted-average coupon on the securities. The FDIC became the owner of the IO upon its intervention of the seller, a failed financial institution. No recourse agreement exists , and the Bank, as the sole holder of the certificates, absorbs all risks from losses on non-accruing l oans and repossessed collateral . As of March 31, 2018 , the amortized cost and fair value of the Gr antor Trusts amounted to $ 21.3 million and $ 16.1 million, respectively, with a weighted average yield of 4.49 %. Investment in unconsolidated entity On February 16, 2011, FirstBank sold an asset portfolio consisting of performing and non-performing constr uction, 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 crea ted by Goldman, Sachs & Co. and Caribbean Property Group. In connection with the sale, the Corporation received $ 88.5 million in cash and a 35 % interest in CPG/GS, and made a loan in the amount of $ 136.1 million representing seller financing provided by F irstBank. The loan ha s a seven -year maturity and bears variable interest at 30-day LIBOR plus 300 basis points and is secured by a pledge of all of the acquirin g entity's assets as well as PRLP's 65 % ownership interest in CPG/GS. As of March 31, 2018 , the carrying amount of the loan was $ 4.1 million , which was included in the Corporation's commercial and i ndustrial loan s held for investment portfolio . The loan matured in February 2018 and is in the process of refinancing. As of March 31, 2018, the l oan is current on its interest payments. FirstBank’s equity interest in CPG/GS is accounted for under the equity method. 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 re ported as the Bank has 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. FirstBank also provided an $ 80 million advance facility to CPG/GS to f und 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 expired in September 2016. 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 facility loan bears variable interest at 30-day LIBOR plus 300 basis points . As of March 31, 2018 , the carrying value of the amount outstanding under the revolver agreement was $ 6. 8 million, which was included in the Corporation's commercial and industrial loans held for investment portfolio. Cash proceeds received by CPG/GS have been fir st used to cover operating expenses and debt service payments, including those related to the note receivable, and the revolver agreement , described above, which must be substantially repaid before proceeds can be used for other purposes, including the retur n of capital to both PRLP and FirstBank. FirstBank will not receive any return on its equity interest until PRLP receives an aggregate amount equivalent to its initial investment and a priority return of at least 12 %, which has not occurred, resulting in FirstBank’s interest in C PG/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 eq ual 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 require s 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 o bligation to absorb losses of CPG/GS that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. The Bank determined that it does not have the power to direct the activ ities that most significantly impact the economic performance of CPG/GS as it does not have the right to manage the loan portfolio, impact foreclosure proceedings, or manage the construction and sale of the property; therefore, the Bank concluded that it i s not the primary beneficiary of CPG/GS . Servicing Assets The Corporation sells residential mortgage loans to GNMA, which generally securitize s 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: Quarter ended March 31, March 31, 2018 2017 (In thousands) Balance at beginning of period $ 25,255 $ 26,244 Capitalization of servicing assets 887 875 Amortization (737) (788) Adjustment to fair value 713 (160) Other (1) 17 159 Balance at end of period $ 26,135 $ 26,330 (1) Amount represents the adjustment to fair value related to the repurchase of loans serviced for others. Impairment charges are recognized through a valuation allowance for each individual stratum of servicing assets. The valuation allowance is adjusted to reflect the amount, if any, by which the cost basis of the servicing asset for a given stratum of loans being serviced exceeds its fair value. Any fair value in excess of the cost basis of the servicing asset for a given stratum is not recognized. Changes in the impairment allowance were as follows: Quarter ended March 31, March 31, 2018 2017 (In thousands) Balance at beginning of period $ 1,451 $ 461 Temporary impairment charges 17 160 OTTI of servicing assets (65) (621) Recoveries (730) - Balance at end of period $ 673 $ - The components of net servicing income are shown below: Quarter ended March 31, March 31, 2018 2017 (In thousands) Servicing fees $ 2,120 $ 2,024 Late charges and prepayment penalties 120 99 Adjustment for loans repurchased 17 159 Other - (7) Servicing income, gross 2,257 2,275 Amortization and impairment of servicing assets (24) (948) Servicing income, net $ 2,233 $ 1,327 The Corporation’s servicing assets are subject to prepayment and interest rate risks. As of March 31, 2018 , 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 Corporation used c onstant prepayment rate assumptions for the Corporation’s servicing assets for the government-guarantee d mortgage loans of 5.6 % and 6.0 % for the quarters ended March 31, 2018 and 2017 , respectively. For conventional conforming mortgage loans, the Corporation used 6.2 % and 6.3 % for the quarters ended March 31, 2018 and 2017 , respectively, and , for the conven tional non-conforming mortgage loans , the Corporation used 9.1 % and 9.5 % for the quarters ended March 31, 201 8 and 201 7, respectively. D is count rate assumptions used were 12 % for government- guaranteed mortgage loans; 10 % for conventional conforming mortgag e loans; and 14 .3 % for conventional non-c onforming mortgage loans for each of the quarters ended March 31, 201 8 and 201 7. The weighted averages of the key economic assumptions that the Corporation used in its valuation model and the sensitivity of the current fair value to immediate 10 % and 20 % adverse changes in those assumptions for mortgage loans as of March 31, 2018 were as follows: (Dollars in thousands) Carrying amount of servicing assets $ 26,135 Fair value $ 30,720 Weighted-average expected life (in years) 8.56 Constant prepayment rate (weighted-average annual rate) 5.89% Decrease in fair value due to 10% adverse change $ 725 Decrease in fair value due to 20% adverse change $ 1,421 Discount rate (weighted-average annual rate) 11.23% Decrease in fair value due to 10% adverse change $ 1,503 Decrease in fair value due to 20% adverse change $ 2,876 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 extrapol ated 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 | 3 Months Ended |
Mar. 31, 2018 | |
DEPOSITS | NOTE 14 – DEPOSITS The following table summarizes deposit balances as of the dates indicated: March 31, December 31, 2018 2017 (In thousands) Type of account: Non-interest bearing checking accounts $ 2,019,823 $ 1,833,665 Savings accounts 2,413,446 2,401,385 Interest-bearing checking accounts 1,242,957 1,207,511 Certificates of deposit 2,434,162 2,429,585 Brokered certificates of deposit (CDs) 956,077 1,150,485 $ 9,066,465 $ 9,022,631 Brokered CDs mature as follows: March 31, 2018 (In thousands) Three months or less $ 133,119 Over three months to six months 149,170 Over six months to one year 265,986 Over one year but less than three years 316,191 Three to five years 90,231 Over five years 1,380 Total $ 956,077 The following are the components of interest expense on deposits: Quarter Ended March 31, March 31, 2018 2017 (In thousands) Interest expense on deposits $ 16,607 $ 15,468 Accretion of premium from acquisition (3) (23) Amortization of broker placement fees 367 527 Interest expense on deposits $ 16,971 $ 15,972 |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 3 Months Ended |
Mar. 31, 2018 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | NOTE 15 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase (repurchase agreements) consisted of the following: March, 31 December 31, 2018 2017 (Dollars in thousands) Short-term fixed-rate repurchase agreement with a rate of 1.53% $ - $ 100,000 Long-term fixed-rate repurchase agreements, interest ranging from 1.96% to 2.26% (1)(2) 200,000 200,000 $ 200,000 $ 300,000 (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 March 31, 2018, includes $200 million with an average rate of 2.11% that lenders have the right to call before their contractual maturities at various dates beginning on May 6, 2018. Subsequent to March 31, 2018, no lender has exercised its call option on repurchase agreements. Repurchase agreements mature as follows: March 31, 2018 (In thousands) Three to four years 200,000 Total $ 200,000 As of March 31, 2018 and December 31, 2017 , the securities underlying such agreements were delivered to the dealers with which the repurchase agreements were transacted. Repurchase agreements as of March 31, 2018, grouped by counterparty, were as follows: (Dollars in thousands) Weighted-Average Counterparty Amount Maturity (In Months) JP Morgan Chase $ 200,000 46 |
ADVANCES FROM THE FEDERAL HOME
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) | 3 Months Ended |
Mar. 31, 2018 | |
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) | NOTE 16 – ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) The following is a summary of the advances from the FHLB: March 31, December 31, 2018 2017 (In thousands) Long-term fixed-rate advances from FHLB, with a weighted-average interest rate of 1.91% $ 715,000 $ 715,000 Advances from FHLB mature as follows: March 31, 2018 (In thousands) Over three months to six months $ 25,000 Over six months to one year 70,000 Over one to three years 300,000 Over three to five years 320,000 Total $ 715,000 As of March 31, 2018 , the Corp oration had additional capacity of approximately $ 689.5 million on this credit facility based on collateral pledged at the FHLB, including a haircut reflecting the perceived risk associated with the collateral. |
OTHER BORROWINGS
OTHER BORROWINGS | 3 Months Ended |
Mar. 31, 2018 | |
OTHER BORROWINGS | NOTE 18 – OTHER BORROWINGS Other borrowings, as of the indicated date s, consisted of: March 31, December 31, 2018 2017 (In thousands) Junior subordinated debentures due in 2034, interest-bearing at a floating rate of 2.75% over 3-month LIBOR (4.92% as of March 31, 2018 and 4.35% as of December 31, 2017) (1) $ 65,593 $ 90,078 Junior subordinated debentures due in 2034, interest-bearing at a floating rate of 2.50% over 3-month LIBOR (4.70% as of March 31, 2018 and 4.12% as of December 31, 2017) 118,557 118,557 $ 184,150 $ 208,635 (1) Refer to Note 14, - "Non-Consolidated Variable Interest Entities and Servicing Assets-Trust Preferred Securities," for additional information about the Corporation repurchase and cancellation in the first quarter of 2018 of $23.8 million in trust-preferred securities associated with these junior subordinated debentures. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2018 | |
STOCKHOLDERS' EQUITY | NOTE 19 – STOCKHOLDERS’ EQUITY Common Stock As of March 31, 2018 and December 31, 2017 , the Corporation had 2,000,000,000 authorized shares of common stock with a par value of $0.10 per share. As of March 31, 2018 and December 31, 2017 , there were 220,877,719 and 220,382,343 shares issued, respectively, and 216,390,329 and 216,278,040 shares outstanding, respectively. Refer to Note 4 for information about transactions related to common stock under the Omnibus Pla n. Preferred Stock The Corporation has 50,000,000 authorized shares of preferred stock with a par value of $ 1.00 , redeemable at the Corporation’s option, subject to certain terms. This stock may be issued in series and the shares of each series have suc h rights and preferences as are fixed by the Board of Directors when authorizing the issuance of that particular ser ies. As of March 31, 2018 , the Corporation has five outstanding series of non-convertible, non-cumulative preferred stock: 7.125 % n on-cumulative perpetual monthly income preferred stock, Series A; 8.35 % non-cumulative perpetual monthly income preferred stock, Series B; 7.40 % non-cumulative perpetual monthly income preferred stock, Series C; 7.25 % non-cumulative perpetual monthly incom e 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, no n-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. In Dec ember 2016, for the first time since July 2009, the Corporation paid dividends on its non-cumulative perpetual monthly income preferred stock, after receiving regulatory approval. Since then, the C orporation has continued to pay monthly dividend payments on the non-cumulative perpetual monthly income preferred stock. The Corporation intends to request approval in future period s to continue monthly dividend payments on the non-cumulative perpetual monthly income preferred stock . The Corporation has rece ived regulatory approval to pay the monthly dividends on the Corporation’s Series A through E Preferred Stock through June 2018. On October 3, 2017, the Federal Reserve terminated the Written Agreement entered into on June 3, 2010 between the Corporation and the Federal Reserve. However, the Corporation has agreed with its regulators to continue to obtain approval before paying dividends, receiving dividends from the Bank, making payments on subordinated debt or trust preferred securities, incurring or gua ranteeing debt or purchasing or redeeming any corporate stock. Treasury stock D uring the first quarter of 2018 and 2017, the Corporation withheld an aggregate of 383,087 shares and 98,300 shares, respectively, of the common stock paid to certain senior officers as additional compensation and restricted stock that vested during the first quarter of 2018 and 2017 to cover employee s’ payroll and income tax withholding liabilities; these s hares are held as treasury stock . As of March 31, 2018 and December 31, 2017 , the Corporation had 4,487,390 and 4,104,303 shares held as treasury stock, respectively. FirstBank Statutory Reserve (Legal Surplus) The Banking Law of the Commonwealth of Puerto Rico requires that a minimum of 10 % of FirstBank’s net income for the year be transferred t o a legal surplus reserve until such surplus equals the total of paid-in-capital on common and preferred stock. Amounts transferred to the legal surplus reserve from the retained earnings account are not available for distribution to the Corporation, includi ng for payment as dividends to the stockholders, without the prior consent of the Puerto Rico Commissioner of Financial Institutions. The Puerto Rico Banking Law provides that, when the expenditures of a Puerto Rico commercial bank are greater than receipt s, 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 legal surplus reserve, as a reduction thereof. If there is no legal surplus reserve sufficie nt to cover such balance in whole or in part, the outstanding amount must be charged against the capital account and the Bank cannot pay dividends until it can replenish the legal surplus reserve to an amount of at least 20 % of the original capital contrib uted. During the fourth quarter of 2017 , $ 7.3 million was transferre d to the legal surplus reserve . FirstBank’s legal surplus reserve, included as part of retained earnings in the Corporation’s consolidated statement of financial condition, amounted to $59 .7 million as of March 31, 2018. There were no transfers to the legal surplus reserve during the quarter ended March 31, 2018. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2018 | |
INCOME TAXES | NOTE 20 - INCOME TAXES Income tax expense includes Puerto Rico and USVI income taxes as well as applicable U.S. federal and state taxes. The Corporation is subject to Puerto Rico income tax on its income from all sources. As a Puerto Rico corporation, First BanCorp. is treated as a foreign corporation for U.S. and USVI income tax purposes and is generally subject to U.S. and USVI income tax only on its income from sources within the U.S. and USVI or income effectively connected with the con duct of a trade or business in those regions. Any such tax paid in the U.S. and USVI is also creditable against the Corporation’s Puerto Rico tax liability, subject to certain conditions and limitations. Under the Puerto Rico Internal Revenue Code o f 2011, as amended (the “2011 PR Code”), the Corporation and its subsidiaries are treated as separate taxable entities and are generally not entitled to file consolidated tax returns and, thus, the Corporation is generally not entitled to utilize losses fr om one subsidiary to offset gains in another subsidiary. Accordingly, in order to obtain a tax benefit from a net operating loss (“NOL”), a particular subsidiary must be able to demonstrate sufficient taxable income within the applicable NOL carry-forward period. The 2011 PR Code allows entities organized as limited liability companies to perform an election to become a non-taxable “pass-through” entity and utilize losses to offset income from other “pass-through” entities, subject to certain limitations, w ith the remaining net income passing-through to its partner entities. The 2011 PR Code also provides a dividend received deduction of 100 % on dividends received from “controlled” subsidiaries subject to taxation in Puerto Rico and 85 % on dividends received from other taxable domestic corporations. 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 a non-taxable “pass-thr ough” e ntity. This election allow s the Corporation to realize tax benefits of its deferred tax assets associated with pass-through ordinary net operating losses available at the banking subsidiary, FirstBank, which were subject to a full valuation allowance as of December 31, 2016, against now pass-through ordinary income from this profitable subsidiary. On March 1, 2017, the Corporation also completed the applicable regulatory filings to change the tax status of its subsidiary, FirstBank Insurance, from a taxab le corporation to a non-taxable “pass -through” entity. This election allow s the Corporation to offset pass-through income projected to be ear ned by FirstBank Insurance with net operatin g losses available at the Holding Company level. The Corporation has maintained an effective tax rate lower than the maximum statutory rate mainly by investing in government obligations and mortgage-backed securities exempt from U.S. and Puerto Rico income taxes and by doing business through an International Banking En tity (“IBE”) unit of the Bank, and through the Bank’s subsidiary, FirstBank Overseas Corporation, whose interest income and gain on sales is exempt from Puerto Rico income taxation. The IBE and FirstBank Overseas Corporation were created under the Internat ional Banking Entity Act of Puerto Rico, which provides for total Puerto Rico tax exemption on net income derived by IBEs operating in Puerto Rico on the specific activities identified in the IBE Act. An IBE that operates as a unit of a bank pays income ta xes at the corporate standard rates to the extent that the IBE’s net income exceeds 20 % of the bank’s total net taxable income. For the first quarter of 2018, the Corporation recorded a income tax expense of $7.8 million, compared to a n income tax ben efit of $8.1 million for the same period in 2017. The vari ance was mostly attributable to a $13.2 million tax benefit recorded in the first quarter of 2017 as a result of the above discussed change in tax status of certain subsidiaries from taxable corpora tions to limi ted liability companies that elected to be treated as partnerships for inc ome tax purposes in Puerto Rico, higher pre-tax earnings in the first quarter of 2018, and a higher estimated effective tax rate for 2018. For the quarter ended March 3 1, 2018, the Corporation calculated the provision for income taxes by applying the estimated annual effective tax rate for the full fiscal year to ordinary income or loss. In the computation of the consolidated worldwide annual estimated effective tax rat e, ASC 740-270 requires the exclusion of legal entities with pre-tax losses from which a tax benefit cannot be recognized. The Corporation’s estimated annual effective tax rate in the first quarter of 2018, excluding entities from which a tax benefit cann ot be recognized and discrete items, was 27 % compared to 24 % for the first quarter of 2017. The estimated annual effective tax rate including all entities for 2018 was 19 % ( 2 3 % excluding discrete items) compared to 13 % for the first quarter of 2017 ( 25 % e xcluding discrete items, primarily the tax benefit resulting from the previously mentioned change in the tax status of the two subsidiaries). The Corporation’s net deferred tax asset amounted to $ 289.3 million as of March 31, 2018, net of a valua tion allowance of $ 186.1 million, and management concluded, based upon the assessment of all positive and negative evidence, that it is more likely than not that the Corporation will generate sufficient taxable income within the applicable NOL carry-forwar d periods to realize such amount. The net deferred tax asset of the Corporation’s banking subsidiary, FirstBank, amounted to $ 289.2 million as of March 31, 2018, net of a valuation allowance of $ 150 .0 million, compared to net deferred tax asset of $ 294. 7 m illion, net of a valuation allowance of $ 150 . 7 mil lion, as of December 31, 2017. During the third quarter of 2017, the Corporation completed a formal ownership change analysis within the meaning of Section 382 of the U.S. Internal Revenue Code ( “Section 3 82”) covering a comprehensive period, and concluded that an ownership change occurred during such period. Section 382 limits the ability to utilize U.S. and USVI NOLs for income tax purposes at such jurisdictions following an event of an ownership change. The Section 382 limitation could result in higher U.S. and USVI liabilities in the future than we would incur in the absence of such limitation. As of March 31, 2018, and as a result of the Section 382 limitation, the Corporation incurred an income tax ex pense of approximately $ 1. 6 million related to its U.S. operation s. The limitation did not affect the USVI operations in the first quarter of 2018. Prospectively, the Corporation expects that it will be able to mitigate the adverse effects associated with the Section 382 limitation as any such tax paid in the U.S. or USVI could be creditable against Puerto Rico tax liabilities or taken as deduction against taxable income. However, our ability to reduce our Puerto Rico tax liability through such a credit or deduction depends on our tax profile at each annual taxable period, which is dependent on various factors. As of March 31, 2018, the Corporation did not have Unrecognized Tax Benefits (“UTBs”) recorded on its books. 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 C ode is four years; the statute of limitation s for U.S. and USVI income tax purposes is three years after a tax return is due or filed, whichever is later, for each. The completion of an audit by the taxing authorities or the expiration of the statute of limitations for a given audit period could res ult in an adjustment to the Corporation’s liability for income taxes. Any such adjustment could be material to the results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. For U.S. and USVI income tax purposes, all tax years subsequent to 2012 remain open to examination. For Puerto Rico tax purposes, all tax years subsequent to 2012 remain open to examination . On December 22, 2017, the Unite d States president signed H.R.1, The T ax Cuts and Jobs Acts, which includ es an overhaul of individual, busines s and international taxes and has affected our branch operations in the U.S. and the USVI. The bill includes measures reducing corporate taxes from 35 % to 21 %, a repeal of the corporat e alternative minimum tax regime, changes to business deductions and NOLs, a 15.5 % tax on mandatory repatriation of liquid assets, 10 % tax on base erosion payments , and a minimum 10.5 % tax on inclusion of global intangible low-tax income by U.S. shareholde rs, among other significant changes. The main provisions affecting our operations in the U.S. and the USVI in the first quarter for 2018 include: the change in tax rate to 21 %, the limitation to the amount certain financial institutions may deduct for prem iums paid to the FDIC , and changes in permanent difference s, such as the meals and entertainment deductions. Other significant provision s, such as the base erosion and anti-abuse tax , do not affect the Corporation’s U . S . and USVI branch operations since th ese operations’ receipts do not exceed the annual threshold of U . S . effectively connected gross receipts. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2018 | |
FAIR VALUE | NOTE 21 – FAIR VALUE Fair Value Measurement The FASB authoritative guidance for fair value measurement defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This guidance also establishes a fair value hierarchy for classifying financial instruments. The hierarchy is based on whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. Three levels of inputs may be used to measure fair value: Level 1 Valuations of Level 1 assets and liabilities are obtained from readily-available pricing sources for market transactions involving identical assets or liabilities. Level 1 assets and liabilities include equity securities that trade in an active exchange market, as well as certain U.S. Treasury and other U.S. government and agency securities and corporate debt securities that are traded by dealers or brokers in active markets. Level 2 Valuations of Level 2 assets and liabilities are based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include (i) mortgage-backed securities for which the fair value is estimated based on the value of identical or comparable assets, (ii) debt securities with quoted prices that are traded less frequently than exchange-traded instruments, and (iii) derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Level 3 Valuations of Level 3 assets and liabilities are based on unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models for which the determination of fair value requires significant management judgments estimation. For the first quarter of 2018 , 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 Treasury notes and non-callable U.S. Agency debt securities), when available (Level 1), or, when available, market prices for identical or comparable ass ets (as is the case with MBS and callable U.S. agency debt) that are based on observable market parameters, including benchmark yields, reported trades, quotes from brokers or dealers, issuer spreads, bids, offers and reference data , including market resear ch operations (Level 2). Observable prices in the market already consider the risk of nonperformance. If listed prices or quotes are not available, fair value is based upon discounted cash flow models that use unobservable inputs due to the limited market activity of the instrument, as is the case with certain private label MBS held by the Corporation (Level 3). Private label MBS are collateralized by fixed-rate mortgages on single-family residential properties in the United States; the interest rate on the securities is variable, tied to 3-month LIBOR and limited to the weighted-average coupon of the underlying collateral. The market valuation represents the estimated net cash flows over the projected life of the pool of underlying assets applying a discount rate that reflects market observed floating spreads over LIBOR, with a widening spread based on a nonrated security. The market valuation is derived from a model that utilizes relevant assumptions, such as the prepayment rate, def ault rate, and loss severity on a loan level basis. The Corporation modeled the cash flow from the fixed-rate mortgage collateral using a static cash flow analysis according to collateral attributes of the underlying mortgage pool (i.e., loan term, current balance, note rate, rate adjustment type, rate adjustment frequency, rate caps, and others) in combination with prepayment forecasts based on historical portfolio performance. The variable cash flow of the security is modeled using the 3-month LIBOR forwa rd 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 jurisdiction, delinquency, property type and pricing behavior, and others ) 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 inp uts (Level 3). Derivative instruments The fair value of most of the Corporation’s derivative instruments is based on observable market parameters and takes into consideration the credit risk component of paying counterparties, when appropriate. On intere st caps, only the seller's credit risk is considered. The caps were valued using a discounted 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 for the quarters ended March 31, 2018 and 2017 was immaterial. Assets and liabilities measured at fair value on a recurring basis are summarized below: As of March 31, 2018 As of December 31, 2017 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 (1) $ - $ - $ - $ - $ 418 $ - $ - $ 418 U.S. Treasury Securities 57,169 - - 57,169 7,401 - - 7,401 Noncallable U.S. agency debt - 329,170 - 329,170 - 361,971 - 361,971 Callable U.S. agency debt and MBS - 1,406,283 - 1,406,283 - 1,497,253 - 1,497,253 Puerto Rico government obligations - 4,074 2,734 6,808 - 4,118 2,695 6,813 Private label MBS - - 16,074 16,074 - - 17,060 17,060 Other investments - - - - - - 100 100 Equity securities (1) 413 - - 413 - - - - Derivatives, included in assets: Purchased interest rate cap agreements - 668 - 668 - 305 - 305 Forward contracts - 3 - 3 - 7 - 7 Liabilities: Derivatives, included in liabilities: Written interest rate cap agreement - 668 - 668 - 305 - 305 Forward contracts - 67 - 67 - 19 - 19 (1) As of January 1, 2018, the Corporation adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment securities to other investment securities. As of December 31, 2017, equity securities had a net unrealized loss of $6 thousand. The table below presents a reconciliation of the beginning and ending balances of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the quarters ended March 31, 2018 and 2017 . Quarter ended March 31, 2018 2017 Level 3 Instruments Only Securities Securities (In thousands) Available For Sale (1) Available For Sale (1) Beginning balance $ 19,855 22,914 Total gains (losses) (realized/unrealized): Included in other comprehensive income 472 518 Principal repayments and amortization (1,519) (2,050) Ending balance $ 18,808 $ 21,382 (1) Amounts mostly related to private label MBS. The table below presents qualitative information for significant assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of March 31, 2018: March 31, 2018 (In thousands) Fair Value Valuation Technique Unobservable Input Range Investment securities available-for-sale: Private label MBS $ 16,074 Discounted cash flows Discount rate 14.5% Prepayment rate 7.5% - 24.5% (Weighted Average 15.2%) Projected Cumulative Loss Rate 0.00% - 9.0% (Weighted Average 4.0%) Puerto Rico government obligations 2,734 Discounted cash flows Discount rate 6.24% 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 v alue of the instruments. Meaningful and possible shifts of each input were modeled to assess the effect on the fair value estimation. Puerto Rico Government Obligations : The significant unobservable input used in the fair value measurement is the assumed prepayment rate of the underlying residential mortgage loans that collateralize these obligations that are guaranteed by the Puerto Rico Housing Finance Authority. A significant increase (decrease) in the assumed rate would lead to a higher (lower) fair v alue estimate. The fair value of these bonds was based on a discounted cash flow analysis that contemplates the credit quality of the holder of second mortgages and a discount for liquidity constraints on the bonds considering the absence of an active mark et for them. Due to the guarantee of the Puerto Rico Housing Finance Authority and other applicable contractual safeguards, no additional credit spread is applied for services default. There were no changes in unrealized gains and losses recorded in earni ngs for the quarters ended March 31, 2018 and 2017 for Level 3 assets and liabilities that were still held at the end of each period. Additionally, fair value is used on a nonrecurring basis to evaluate certain assets in accordance with GAAP. Adjustments to fair value usually result from the application of lower-of-cost or market accounting (e.g., loans held for sale carried at the lower-of-cost or fair value and repossessed assets) or write downs of in dividual assets (e.g., goodwill and loans). As of March 31, 2018, impairment or valuation adjustments were recorded for assets recognized at fair value on a non-recurring basis as shown in the following table: Carrying value as of March 31, 2018 (Losses) Gains recorded for the Quarter Ended March 31, 2018 Level 1 Level 2 Level 3 (In thousands) Loans receivable (1) $ - $ - $ 392,493 $ (4,224) Other real estate owned (2) - - 154,639 (287) Mortgage servicing rights (3) - - 26,135 713 Loans held for sale (4) - - 64,945 (6,203) (1) Consists mainly of impaired commercial and construction loans. The impairments were generally measured based on the fair value of the collateral. The fair values were derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable. (2) The fair values were derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. (3) Fair value adjustments to mortgage servicing rights were mainly due to assumptions associated with mortgage prepayment rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate 5.89%, Discount Rate 11.23%. (4) The value of these loans was primarily derived from external appraisals, adjusted for specific characteristics of the loans. As of March 31, 2017, impairment or valuation adjustments were recorded for assets recognized at fair value on a non-recurring basis as shown in the following table: Carrying value as of March 31, 2017 (Losses) recorded for the Quarter Ended March 31, 2017 Level 1 Level 2 Level 3 (In thousands) Loans receivable (1) $ - $ - $ 430,162 $ (15,211) Other real estate owned (2) - - 137,784 (4,180) Mortgage servicing rights (3) - - 26,330 (160) (1) Consists mainly of impaired commercial and construction loans. The impairments were generally measured based on the fair value of the underlying collateral. The fair values were derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable. (2) The fair values were derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. (3) Fair value adjustments to mortgage servicing rights were mainly due to assumptions associated with mortgage 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 6.17%, Discount Rate 11.20%. Qualitative information regarding the fair value measurements for Level 3 financial instruments are as follows: March 31, 2018 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 5.89%; weighted average discount rate of 11.23% 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 nonperfo rmance. 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 commercial lo an 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 analysis usin g 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 proxy se curity at the end of each quarter. Other investment securities Equity or other securities that do not have a readily available fair value are stated at their net realizable value, which management believes is a reasonable proxy for their fair value. This category is principally composed of stock that the Corporation owns to comply with FHLB regulatory requirements. The realizable value of the FHLB stock equals its cost as this stock can be freely redeemed at par. Loans receivable, including loans held fo r sale The fair value of loans held for investment and of mortgage loans held for sale is estimated using discounted cash flow analyses, based on interest rates currently being offered for loans with similar terms and credit quality and with adjustme nts that the Corporation’s management believes a market participant would consider in determining fair value. Loans are classified by type, such as commercial, residential mortgage, and automobile. These asset categories are further segmented into fixed- a nd adjustable-rate categories. Valuations are carried out based on categories and not on a loan-by-loan basis. Prepayment assumptions are considered for non-residential loans. For residential mortgage loans, prepayment estimates are based on a prepayment model that combined both a historical calibration and current market prepayment expectations. Discount rates are 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. 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 deposi ts and brokered CDs, with stated maturities, are based on the present value of the future cash flows expected to be paid on the deposits. The discount rates used were based on retail and brokered CDs market rates as of March 31, 2018. The cash flows were b ased on contractual maturities; no early repayments were assumed. Securities sold under agreements to repurchase Some repurchase agreements reprice at least quarterly, and their outstanding balances are estimated to be their fair value. Where longer commitments are involved, fair value is estimated using exit price indications of the cost of unwinding the transactions as of the end of the reporting period. The brokers who are the counterparties provide these indications, which the Corporation evaluate s. Securities sold under agreements to repurchase are fully collateralized by investment securities. Advances from FHLB The fair value of advances from the FHLB is estimated using exit price indications provided by the counterparty. Advances from the FH LB 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 Fin ance curve plus a credit spread. This credit spread was estimated using the difference in yield curves between swap rates and a yield curve that considers the industry and credit rating of the Corporation as issuer of the debenture at a tenor comparable to the time to maturity of the debentures. The following tables present the carrying value, estimated fair value and estimated fair value level of the hierarchy of financial instruments as of March 31, 2018 and December 31, 2017: Total Carrying Amount in Statement of Financial Condition March 31, 2018 Fair Value Estimate March 31, 2018 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments (amortized cost) $ 843,824 $ 843,824 $ 843,824 $ - $ - Investment securities available for sale (fair value) 1,815,504 1,815,504 57,169 1,739,527 18,808 Investment securities held to maturity (amortized cost) 150,486 134,856 - - 134,856 Equity Securities (fair value) 413 413 413 - - Other investment securities (amortized cost) 43,119 43,119 - 43,119 - Loans held for sale (lower of cost or market) 91,375 91,736 - 26,791 64,945 Loans held for investment (amortized cost) 8,695,890 Less: allowance for loan and lease losses (225,856) Loans held for investment, net of allowance $ 8,470,034 8,262,128 - - 8,262,128 Derivatives, included in assets (fair value) 668 668 - 668 - Liabilities: Deposits (amortized cost) 9,066,465 9,070,024 - 9,070,024 - Securities sold under agreements to repurchase (amortized cost) 200,000 226,076 - 226,076 - Advances from FHLB (amortized cost) 715,000 701,079 - 701,079 - Other borrowings (amortized cost) 184,150 171,378 - - 171,378 Derivatives, included in liabilities (fair value) 735 735 - 735 - Total Carrying Amount in Statement of Financial Condition December 31, 2017 Fair Value Estimate December 31, 2017 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments (amortized cost) $ 716,395 $ 716,395 $ 716,395 $ - $ - Investment securities available for sale (fair value) 1,891,016 1,891,016 7,819 1,863,342 19,855 Investment securities held to maturity (amortized cost) 150,627 131,032 - - 131,032 Other investment securities (amortized cost) 43,119 43,119 - 43,119 - Loans held for sale (lower of cost or market) 32,980 34,979 - 25,237 9,742 Loans held for investment (amortized cost) 8,850,476 - - - - Less: allowance for loan and lease losses (231,843) - - - - Loans held for investment, net of allowance $ 8,618,633 8,372,865 - - 8,372,865 Derivatives, included in assets (fair value) 312 312 - 312 - Liabilities: Deposits (amortized cost) 9,022,631 9,026,600 - 9,026,600 - Securities sold under agreements to repurchase (amortized cost) 300,000 325,913 - 325,913 - Advances from FHLB (amortized cost) 715,000 707,272 - 707,272 - Other borrowings (amortized cost) 208,635 189,424 - - 189,424 Derivatives, included in liabilities (fair value) 324 324 - 324 - |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customers [Text Block] | NOTE 22 – REVENUE FROM CONTRACTS WITH CUSTOMERS As noted in Note 1, the Corporation adopted the provisions of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), on January 1, 2018. Results for reporting periods beginning after December 31, 2017 are presented under Topic 606, while prior period amounts have not been adjusted and continue to be reported in accordance with Topic 605. Revenue Recognition In accordance with Topic 606, revenues are recognized when control of promis ed goods or services is transferred to customers in an amount that reflects the consideration to which the Corporation expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determin es are within the scope of Topic 606, the Corporation performs the following five steps: (i) identifies the contract(s) with a customer; (ii) identifies the performance obligations in the contract; (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligations in the contract; and (v) recognizes revenue when (or as) the Corporation satisfies a performance obligation. The Corporation only applies the five-step model to contracts when it is probable that the entity will collect the consideration to which it is entitled in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Corporation assesses the goods or se rvices that are promised within each contract and identifies those that contain performance obligations, and assesses whether each promised good or service is distinct. The Corporation then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Disaggregation of Revenue The following table summarizes the Corporation’s revenue, which includes net interest income on financial instruments and non-interest income, disaggregated by type of service and business segments for the quarter ended March 31, 2018: (In thousands) Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Treasury and Investments United States Operations Virgin Islands Operations Total For the quarter ended March 31, 2018: Net interest income (1) $ 21,205 $ 51,049 $ 18,920 $ 12,518 $ 13,392 $ 7,609 $ 124,693 Service charges and fees on deposit accounts - 3,165 1,092 - 134 697 5,088 Insurance commissions - 3,144 - - 12 199 3,355 Merchant-related income - 645 161 - - 185 991 Credit and debit card fees - 4,169 255 - 128 542 5,094 Other service charges and fees 33 800 300 - 1,039 82 2,254 Not in scope of Topic 606 (1) 4,051 7 (549) 2,378 95 20 6,002 Total non-interest income 4,084 11,930 1,259 2,378 1,408 1,725 22,784 Total Revenue $ 25,289 $ 62,979 $ 20,179 $ 14,896 $ 14,800 $ 9,334 $ 147,477 (1) Most of the Corporation’s revenue is not within the scope of ASU No. 2014-09, Revenue from Contracts with Customers . The guidance explicitly excludes net interest income from financial assets and liabilities, as well as other noninterest income from loans, leases, investment securities and derivative financial instruments. For the three months ended March 31, 2018, substantially all of the Corporation’s revenue under the scope of Topic 606 was related to performance obligations satisfied at a point in time. The following is a discussion of revenues within the scope of Topic 606. Service Charges and Fees on Deposit Accounts Service charges and fees on deposit accounts relate to fees generated from a variety of deposit products and services rendered to cu stomers. Charges include, but are not limited to, overdraft fees, non-sufficient fund fees, dormant fees and monthly service charges. Such fees are recognized concurrently with the event on a daily basis or on a monthly basis depending upon the customer’s cycle date. These depository arrangements are considered day-to-day contracts that do not extend beyond the services performed, as customers have the right to terminate these contracts with no penalty or, if any, nonsubstantive penalties. As a consequen ce, the income recognition under the standard is not different for the Corporation’s practice before the adoption of this guidance. I nsurance Commissions For insurance commissions, which include regular and contingent commissions paid to the Corporatio n’s insurance agency, the agreements contain a performance obligation related to the sale/issuance of the policy and ancillary administrative post-issuance support. The p erformance obligation will be satisfied as the policies are issued and revenue will be recognized at that point in time. In addition, contingent commission income was found to be constrained, as defined under the new standard. Contingent comm ission income will be included i n the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur or payments are received, which is consistent with the Corporation’s practice before the adoption of this guidance. For the quarter ended March 31, 2018, the Corporation recognized revenue of $ 2.1 million as payments were received and constraints were released. Merchant-related Income For merchant-related income, the determination of which included the consideration of a 2015 sale of merchant contracts that involved sal es of point of sale (“POS”) terminals and entry into a marketing alliance under a revenue-sharing agreement, the Corporation concluded that control of the POS terminals and merchant contracts was transferred to the customer at the contract’s inception. Wit h respect to the related revenue-sharing agreement, the Corporation satisfies the marketing alliance performance obligation over the life of the contract, and the associated transaction price is recognized as the entity performs and any constraints over th e variable consideration are resolved. There was no material change in the timing or measurement of revenues. The overall effect on an ongoing basis of the new revenue guidance, as compared the Corporation’s practice before the adoption of this guidance, i s expected to be immaterial. Credit and Debit Card Fees Credit and debit card fees primarily represent revenues earned from interchange fees and ATM fees. Interchange and network revenues are earned on credit and debit card transactions conducted with payment networks. ATM fees are primarily earned as a result of surcharges assessed to non-FirstBank customers who use a FirstBank ATM. Such fees are generally recognized concurrently with the delivery of services on a daily basis. As a consequence, the in come recognition is unchanged from the Corporation’s practice before the adoption of this guidance. Other Fees Other fees primarily include revenues generated from wire transfers, lockboxes, and bank issuances of checks. Such fees are recognized concurrently with the event or on a monthly basis. Contract Balances A contract liability is an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer. As mentioned above, during 2015, the Bank entered into a long-term strategic marketing alliance with another entity to which the Bank sold its merchant contracts portfolio and related POS terminals. Merchant services are marketed through FirstBank’s branc hes and offices in Puerto Rico and the Virgin Islands. Under the marketing and referral agreement, FirstBank shares with this entity revenues generated by the merchant contracts over the term of the 10-year agreement. As of March 31, 2018 and December 31 , 2017, this contract liability amounted to $ 2.3 million and $ 2.4 million, respectively, which will be recognized over the remaining term of the contract. For the quarter ended March 31, 2018, the Corporation recognized revenue and contract liabilities dec reased by approximately $ 0.1 million due to the passage of time. There were no changes in contract liabilities due to changes in transaction price estimates . A contract asset is the right to consideration for transferred goods or services when the amoun t is conditioned on something other than the passage of time. As of March 31, 2018 and December 31, 2017, there were no receivables from contracts with customers or contract assets recorded on the Corporation’s consolidated financial statements. Other Except for the contract liabilities noted above, the Corporation did not have any significant performance obligations as of March 31, 2018. The Corporation also did not have any material contract acquisition costs and did not make any significant judgmen ts or estimates in recognizing revenue for financial reporting purposes. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended |
Mar. 31, 2018 | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 21 – SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information is as follows: Quarter Ended March 31, 2018 2017 (In thousands) Cash paid for: Interest on borrowings $ 24,353 $ 22,001 Non-cash investing and financing activities: Additions to OREO 15,867 13,597 Additions to auto and other repossessed assets 17,508 11,516 Capitalization of servicing assets 887 875 Loan securitizations 54,382 60,525 Loans held for investment transferred to held for sale 67,937 - Property plant and equipment transferred to other assets - 1,185 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2018 | |
SEGMENT INFORMATION | NOTE 24 – 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, t he operating segments are based primarily on the Corporation’s lines of business for its operations in Puerto Rico, the Corporation’s principal market, and by geographic areas for its operations outside of Puerto Rico. As of March 31, 2018 , the Corporation had six reportable seg ments : 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 ev aluate performance and to assess where to allocate resources. Other factors such as the Corporation’s organizational chart, nature of the products, distribution channels, and the economic characteristics of the product were also considered in the determina tion of the reportable segment. 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 Corpor ate 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 t he origination, sale, and servicing of a variety of residential mortgage loans. The Mortgage Banking segment also acquires and sells mortgages in the secondary markets. In addition, the Mortgage Banking segment includes mortgage loans purchased from other local banks and mortgage bankers. The Consumer (Retail) Banking segment consists of the Corporation’s consumer lending and deposit-taking activities conducted mainly through its branch network and loan centers. The Treasury and Investments segment is res ponsible for the Corporation’s investment portfolio and treasury functions that are executed to manage and enhance liquidity. This segment also lends funds to the Commercial and Corporate Banking, Mortgage Banking and Consumer (Retail) Banking segments to fina nce their lending resources and also borrows from those segments. The Consumer (Retail) Banking and the United States Operations segments also lend funds to the other segments. The interest rates charged or credited by Treasury and Investments, the Consumer (Retai l) 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 repo rted 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 seg ment consists of all banking activities conducted by the Corporation in the USVI and BVI, including commercial and retail banking services. The accounting policies of the segments are the same as those referred to in Note 1, “Nature of Business and Summar y of Significant Accounting Policies,” in the audited consolidated financial statements of the Corporation for the year ended December 31, 2017, which are included in the Corporation’s 2017 Annual Report on Form 10-K. The Corporation evaluates the perform ance 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 based on the average volume of their interest-earning assets less the allowan ce for loan and lease losses. The following table presents information about the reportable segments: (In thousands) Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Treasury and Investments United States Operations Virgin Islands Operations Total For the quarter ended March 31, 2018: Interest income $ 32,321 $ 42,550 $ 32,337 $ 14,254 $ 19,527 $ 8,429 $ 149,418 Net (charge) credit for transfer of funds (11,116) 15,222 (13,417) 9,974 (663) - - Interest expense - (6,723) - (11,710) (5,472) (820) (24,725) Net interest income 21,205 51,049 18,920 12,518 13,392 7,609 124,693 Provision for loan and lease losses (381) (5,793) (6,800) - (1,459) (6,111) (20,544) Non-interest income 4,084 11,930 1,259 2,378 1,408 1,725 22,784 Direct non-interest expenses (7,720) (26,901) (6,714) (948) (7,956) (7,622) (57,861) Segment income (loss) $ 17,188 $ 30,285 $ 6,665 $ 13,948 $ 5,385 $ (4,399) $ 69,072 Average earnings assets $ 2,293,482 $ 1,566,795 $ 2,632,220 $ 2,470,830 $ 1,709,918 $ 571,199 $ 11,244,444 (In thousands) Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Treasury and Investments United States Operations Virgin Islands Operations Total For the quarter ended March 31, 2017: Interest income $ 33,958 $ 42,917 $ 29,411 $ 13,757 $ 15,789 $ 9,396 $ 145,228 Net (charge) credit for transfer of funds (11,698) 4,909 (9,318) 16,233 (126) - - Interest expense - (5,900) - (11,806) (4,195) (778) (22,679) Net interest income 22,260 41,926 20,093 18,184 11,468 8,618 122,549 (Provision) release for loan and lease losses (8,936) (7,142) (8,055) - 35 (1,344) (25,442) Non-interest income (loss) 3,586 13,379 1,237 (12,170) 505 1,706 8,243 Direct non-interest expenses (9,879) (27,418) (9,367) (1,207) (7,859) (6,750) (62,480) Segment income $ 7,031 $ 20,745 $ 3,908 $ 4,807 $ 4,149 $ 2,230 $ 42,870 Average earnings assets $ 2,500,750 $ 1,775,931 $ 2,548,936 $ 2,157,882 $ 1,393,215 $ 617,820 $ 10,994,534 The following table presents a reconciliation of the reportable segment financial information to the consolidated totals: Quarter Ended March 31, 2018 2017 Net income: Total income for segments and other $ 69,072 $ 42,870 Other operating expenses (1) (28,166) (25,402) Income before income taxes 40,906 17,468 Income tax (expense) benefit (7,758) 8,073 Total consolidated net income $ 33,148 $ 25,541 Average assets: Total average earning assets for segments $ 11,244,444 $ 10,994,534 Average non-earning assets 947,460 886,492 Total consolidated average assets $ 12,191,904 $ 11,881,026 (1) Expenses pertaining to corporate administrative functions that support the operating segment but are not specifically attributable to or managed by any segment are not included in the reported financial results of the operating segments. The unallocated corporate expenses include certain general and administrative expenses and related depreciation and amortization expenses. |
REGULATORY MATTERS, COMMITMENTS
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2018 | |
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES | NOTE 25 – REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES The Corporation and FirstBank are each 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 undertak en, could have a direct material adverse effect on the Corporation’s financial statements and activities. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation must meet specific capital guidelines tha t involve quantitative measures of the Corporation’s and FirstBank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Corporation’s capital amounts and classification s are also subject to qua litative judgments and adjustment by the regulators with respect to minimum capital requirements, components, risk weightings, and other factors. On October 3, 2017, the New York FED terminated the Written Agreement entered into on June 3, 2010 between th e Corporation and the New York FED. However, the Corporation has agreed with the New York FED to continue to obtain the approval of the New York FED before paying dividends, receiving dividends from the Bank, making payments on subordinated debt or trust p referred securities, incurring or guaranteeing debt or purchasing or redeeming any corporate stock. Although the Corporation and FirstBank became subject to the U.S. Basel III capital rules (“Basel III rules”) beginning on January 1, 2015, certain requi rements of the Basel III rules are being phased-in over several years and, in general, will be fully effective as of January 1, 2019, although certain elements of the new rules have recently been deferred by the federal banking agencies. The Corporation an d FirstBank compute risk-weighted assets using the Standardized Approach required by the Basel III rules. The Basel III rules require the Corpor ation to maintain an additional capital conservation buffer of 2.5 % to avoid limitations on both (i) capital di stributions (e.g. , repurc hases of capital instruments, dividend s and 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 b egan 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 unti l it reaches the fully phased-in 2.5% CET1 requirement on January 1, 2019. Under the fully phased-in Basel III rules, in order to be considered adequately capitalized, the Corporation will be required to maintain: (i) a minimum CET1 capital to risk-weight ed assets ratio of at least 4.5 %, plus the 2.5% capital conservation buffer, resulting in a required minimum CET1 ratio of at least 7 %, (ii) a minimum ratio of total Tier 1 capital to risk-weighted assets of at least 6.0 %, plus the 2.5% capital conservatio n 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 cap ital ratio of 10.5 %, and (iv) a required minimum leverage ratio of 4 %, calculated as the ratio of Tier 1 capital to average on-balance sheet (non-risk adjusted) assets. In addition, as required under the Basel III rules, the Corporation’s trust preferred securit ies (“TRuPs”) were fully phased- out from Tie r 1 capital 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. On November 21, 2017, the Federal Reserve Board, the FDIC, and the Office of the Comptroller of the Currency finalized an extension of the phase-in of certain Basel III capital rules for banks not using the Basel advanced app roaches. The extension, which was effective January 1, 2018, pauses t he full transition to the Basel III treatment of mortgage servicing assets, certain deferred tax assets, investments in the capital of unconsolidated financial institutions and minority interests, pending the banking agencies’ broader efforts, announced in September 2017, to simplify the regulatory capital rules that apply to banking organizations that are not subject to the advanced approaches capital rules . Because the advanced approaches capital rules apply to banking organizations with more than $ 250 bi llion in total consolidated assets or at least $ 10 billion in total on-balance sheet foreign exposure, the extension relief applies broadly to community, midsize, and regional banks, including the Corporation and FirstBank. Please refer to the discu ssion in “Part I, – Item 1, – Business – Supervision and Regulation , ” included in the Corporation’s 2017 Annual Report on 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 March 31, 2018 and December 31, 2017 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) As of March 31, 2018 Total Capital (to Risk-Weighted Assets) First BanCorp. $ 1,990,146 22.98% $ 692,691 8.0% N/A N/A FirstBank $ 1,950,261 22.52% $ 692,671 8.0% $ 865,838 10.0% Common Equity Tier 1 Capital (to Risk-Weighted Assets) First BanCorp. $ 1,665,842 19.24% $ 389,639 4.5% N/A N/A FirstBank $ 1,532,690 17.70% $ 389,627 4.5% $ 562,795 6.5% Tier I Capital (to Risk-Weighted Assets) First BanCorp. $ 1,701,946 19.66% $ 519,518 6.0% N/A N/A FirstBank $ 1,840,690 21.26% $ 519,503 6.0% $ 692,671 8.0% Leverage ratio First BanCorp. $ 1,701,946 14.18% $ 480,078 4.0% N/A N/A FirstBank $ 1,840,690 15.35% $ 479,527 4.0% $ 599,408 5.0% As of December 31, 2017 Total Capital (to Risk-Weighted Assets) First BanCorp. $ 1,989,873 22.53% $ 706,432 8.0% N/A N/A FirstBank $ 1,947,627 22.06% $ 706,218 8.0% $ 882,772 10.0% Common Equity Tier 1 Capital (to Risk-Weighted Assets) First BanCorp. $ 1,674,164 18.96% $ 397,368 4.5% N/A N/A FirstBank $ 1,562,431 17.70% $ 397,248 4.5% $ 573,802 6.5% Tier I Capital (to Risk-Weighted Assets) First BanCorp. $ 1,675,282 18.97% $ 529,824 6.0% N/A N/A FirstBank $ 1,835,445 20.79% $ 529,663 6.0% $ 706,218 8.0% Leverage ratio First BanCorp. $ 1,675,282 14.03% $ 477,643 4.0% N/A N/A FirstBank $ 1,835,445 15.39% $ 477,056 4.0% $ 596,320 5.0% The Corporation enters into financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments may include commitments to extend credit and commitments to sell mortgage loans at fair value. As of March 31, 2018, commitments to extend credit amounted to approximately $ 1.2 billion, of which $ 650.5 million relates to credit card loans. Commercial and Financial standby letters of credit amounted to approximately $ 43. 3 million. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses. Since certain commi tments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. For most of the commercial lines of credit, the Corporation has the option to reevaluate the agreement prior to mak ing additional disbursements. In the case of credit cards and personal lines of credit, the Corporation can cancel the unused credit facility at any time and without cause. As of March 31, 2018, First BanCorp. and its subsidiaries were defendants in various legal proceedings arising in the ordinary course of business. On at least a quarterly basis, the Corporation assesses its liabilities and contingencies in connection with threatened and outstanding legal cases, matters and proceedings, utilizing t he 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 i s adjusted as appropriate to reflect any relevant developments. For cases, matters or proceedings where a loss is not probable or the amount of the loss cannot be estimated, no accrual is established. Any est imate involves significant judg ment, given the varying stages of the proceedings (including the fact that some of them are 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 potential 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 t he final outcome of legal cases, matters, and proceedings is inherently uncertain, based on information currently available, Management believes that the final disposition of the Corporation’s legal cases, matters or proceedings , to the extent not previous ly provided for, will not have a material negative adverse effect on the Corporation’s consolidated financial position as a whole. If management believes that, based on available information, it is at least reasonably possible that a material loss (or ad ditional material loss in excess of any accrual) will be incurred in connection with any legal actions, the Corporation discloses an estimate of the possible loss or range of loss, either individually or in the aggregate, as appropriate, if such an estimat e can be made, or discloses that an estimate cannot be made. Based on the Corporation’s assessment as of March 31, 2018, no such disclosures were necessary. 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 period. Ramirez Torres, et al. v Banco Popular de Puerto Rico, et al. FirstBank Puerto Rico is named a defenda nt in a class action complaint, filed on February 17, 2017 at the Court of First Instance in San Juan, Puerto Rico, captioned Ramirez Torres, et al. v. Banco Popular de Puerto Rico, et al. The complaint seeks damages and preliminary and permanent injunctive relief on b ehalf 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 Ric o Insurance Commissioner to market an endorsement that allowed its customers to obtain a reimbursement of their insurance premium for good experience, but that defendants failed to offer this product or disclose its existence to their customers, favoring o ther 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 existence of this new insurance benefit from this ca rrier, as well as double or treble damages (the latter s ubject to a determination that defendants engaged in anti-monopolistic practices in failing to offer this product). On July 31, 2017, the court entered judgment dismissing the complaint with prejudice . On August 30, 2017, Plaintiffs filed an Appeal before the Court of Appeals and FirstBank filed its opposition. On March 20, 2018, the Court of Appeals entered Judgment revoking the Court of First Instance, ordering a class certificat ion hearing as well as a preliminary inj unction hearing. Our lawyers intend to file a writ of Certiorari in the Supreme Court. |
FIRST BANCORP. (Holding Company
FIRST BANCORP. (Holding Company Only) Financial Information | 3 Months Ended |
Mar. 31, 2018 | |
FIRST BANCORP. (Holding Company Only) Financial Information | NOTE 26 – FIRST BANCORP. (HOLDING COMPANY ONLY) FINANCIAL INFORMATION The following condensed financial information presents the financial position of the Holding Company only as of March 31, 2018 and December 31, 2017 , and the results of its operations for the quarters ended March 31, 2018 and 2017 . Statements of Financial Condition As of March 31, As of December 31, 2018 2017 (In thousands) Assets Cash and due from banks $ 16,866 $ 20,864 Money market investments 6,111 6,111 Other investment securities 285 285 Loans held for investment, net 178 191 Investment in First Bank Puerto Rico, at equity 2,015,111 2,028,641 Investment in First Bank Insurance Agency, at equity 14,933 12,400 Investment in FBP Statutory Trust I 1,963 2,698 Investment in FBP Statutory Trust II 3,561 3,561 Other assets 5,671 3,799 Total assets $ 2,064,679 $ 2,078,550 Liabilities and Stockholders' Equity Liabilities: Other borrowings $ 184,150 $ 208,635 Accounts payable and other liabilities 3,425 818 Total liabilities 187,575 209,453 Stockholders' equity 1,877,104 1,869,097 Total liabilities and stockholders' equity $ 2,064,679 $ 2,078,550 Statements of Income Quarter Ended March 31, March 31, 2018 2017 (In thousands) Income: Interest income on money market investments $ 5 $ 5 Dividends from banking subsidiary 21,584 1,930 Other income 63 62 21,652 1,997 Expense: Other borrowings 2,085 1,963 Other operating expenses 596 967 2,681 2,930 Gain on early extinguishment of debt 2,316 - Income (loss) income before income taxes and equity in undistributed earnings of subsidiaries 21,287 (933) Equity in undistributed earnings of subsidiaries 11,861 26,474 Net income $ 33,148 $ 25,541 Other comprehensive (loss) income, net of tax (24,047) 10,696 Comprehensive income $ 9,101 $ 36,237 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2018 | |
SUBSEQUENT EVENTS | NOTE 27 – SUBSEQUENT EVENTS The Corporation has performed an evaluation of events occurring subsequent to March 31, 2018; manageme nt has determined that there were no events occurring in this period that require disclosure in or adjustment to the accompanying financial statements. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Schedule of Earning Per Share [Table Text Block] | The calculations of earnings per common share for the quarters ended March 31, 2018 and 2017 are as follows: Quarter Ended March 31, March 31, 2018 2017 (In thousands, except per share information) Net income $ 33,148 $ 25,541 Less: Preferred stock dividends (669) (669) Net income attributable to common stockholders $ 32,479 $ 24,872 Weighted-Average Shares: Average common shares outstanding 214,646 213,340 Average potential dilutive common shares 1,648 4,033 Average common shares outstanding-assuming dilution 216,294 217,373 Earnings per common share: Basic $ 0.15 $ 0.12 Diluted $ 0.15 $ 0.11 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Restricted Stock Activity Under Omnibus Plan | The following table summarizes the restricted stock activity in the first quarter of 2018 under the Omnibus Plan: Quarter Ended March 31, 2018 Number of shares of Weighted-Average restricted Grant Date stock Fair Value Non-vested shares at beginning of period 1,816,968 $ 2.76 Granted 341,189 6.29 Vested (1,061,476) 2.02 Non-vested shares at March 31, 2018 1,096,681 $ 4.58 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investment Securities Available for Sale | March 31, 2018 Amortized cost Noncredit Loss Component of OTTI Recorded in OCI Gross Fair value Unrealized Weighted- gains losses average yield % (Dollars in thousands) U.S. Treasury securities: Due within one year $ 49,799 $ - $ - $ 22 $ 49,777 1.55 After 1 to 5 years 7,465 - - 73 7,392 1.29 U.S. government-sponsored agencies obligations: Due within one year 72,484 - - 242 72,242 1.08 After 1 to 5 years 309,459 - - 4,996 304,463 1.42 After 5 to 10 years 133,471 - 26 2,736 130,761 2.74 After 10 years 39,190 - - 254 38,936 2.07 Puerto Rico government obligations: After 5 to 10 years 4,052 - 22 - 4,074 3.14 After 10 years 4,035 - - 1,301 2,734 6.97 United States and Puerto Rico government obligations 619,955 - 48 9,624 610,379 1.76 Mortgage-backed securities: Freddie Mac ("FHLMC") certificates: After 5 to 10 years 43,037 - 12 1,305 41,744 1.96 After 10 years 262,934 - - 8,379 254,555 2.28 305,971 - 12 9,684 296,299 2.23 Ginnie Mae ("GNMA") certificates: After 1 to 5 years 136 - 3 - 139 2.77 After 5 to 10 years 65,098 - 683 137 65,644 3.04 After 10 years 140,314 - 4,492 986 143,820 3.81 205,548 - 5,178 1,123 209,603 3.57 Fannie Mae ("FNMA") certificates: After 1 to 5 years 15,735 - 177 195 15,717 2.89 After 5 to 10 years 109,562 - - 4,279 105,283 1.76 After 10 years 531,560 - 1,818 14,320 519,058 2.52 656,857 - 1,995 18,794 640,058 2.40 Collateralized mortgage obligations guaranteed by the FHLMC and GNMA After 1 to 5 years 8,154 - 8 11 8,151 2.53 After 10 years 34,619 - 321 - 34,940 2.53 42,773 - 329 11 43,091 2.53 Other mortgage pass-through trust certificates: After 10 years 21,309 5,235 - - 16,074 4.49 Total mortgage-backed securities 1,232,458 5,235 7,514 29,612 1,205,125 2.60 Total investment securities available for sale $ 1,852,413 $ 5,235 $ 7,562 $ 39,236 $ 1,815,504 2.32 December 31, 2017 Amortized cost Noncredit Loss Component of OTTI Recorded in OCI Gross Fair value Unrealized Weighted- gains losses average yield% (Dollars in thousands) U.S. Treasury securities: After 1 to 5 years $ 7,458 $ - $ - $ 57 $ 7,401 1.29 U.S. government-sponsored agencies obligations: Due within one year 122,471 - - 319 122,152 1.06 After 1 to 5 years 309,472 - 28 3,735 305,765 1.42 After 5 to 10 years 133,451 - 117 319 133,249 2.72 After 10 years 40,769 - 1 149 40,621 1.84 Puerto Rico government obligations: After 5 to 10 years 4,071 - 47 - 4,118 3.14 After 10 years 3,972 - - 1,277 2,695 6.97 United States and Puerto Rico government obligations 621,664 - 193 5,856 616,001 1.70 Mortgage-backed securities: FHLMC certificates: After 5 to 10 years 18,658 - 14 63 18,609 2.14 After 10 years 297,733 - 217 4,853 293,097 2.23 316,391 - 231 4,916 311,706 2.23 GNMA certificates: After 1 to 5 years 81 - 1 - 82 3.23 After 5 to 10 years 69,661 - 1,244 - 70,905 3.05 After 10 years 145,067 - 5,910 334 150,643 3.81 214,809 - 7,155 334 221,630 3.56 FNMA certificates: After 1 to 5 years 20,831 - 294 109 21,016 2.69 After 5 to 10 years 49,934 - - 818 49,116 1.83 After 10 years 613,129 - 3,180 6,401 609,908 2.43 683,894 - 3,474 7,328 680,040 2.39 Collateralized mortgage obligations issued or guaranteed by FHLMC and GNMA: After 1 to 5 years 5,918 - 14 - 5,932 2.21 After 5 to 10 years 2,556 - 11 - 2,567 2.23 After 10 years 35,331 - 231 - 35,562 2.22 43,805 - 256 - 44,061 2.22 Other mortgage pass-through trust certificates: After 10 years 22,791 5,731 - - 17,060 2.44 Total mortgage-backed securities 1,281,690 5,731 11,116 12,578 1,274,497 2.54 Other Due within one year 100 - - - 100 1.48 Equity Securities (1) 424 - - 6 418 2.11 Total investment securities available for sale $ 1,903,878 $ 5,731 $ 11,309 $ 18,440 $ 1,891,016 2.27 (1) As of January 1, 2018, the Corporation adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment securities to other investment securities. |
Available-for-Sale Investments' Fair Value and Gross Unrealized Losses | As of March 31, 2018 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 $ - $ - $ 2,734 $ 1,301 $ 2,734 $ 1,301 U.S. Treasury and U.S. government agenciesĘĽ obligations 238,248 3,306 360,298 5,017 598,546 8,323 Mortgage-backed securities: FNMA 354,552 7,690 259,076 11,104 613,628 18,794 FHLMC 138,510 2,916 157,598 6,768 296,108 9,684 GNMA 68,490 1,123 - - 68,490 1,123 Collateralized mortgage obligations issued or guaranteed by FHLMC and GNMA 5,907 11 - - 5,907 11 Other mortgage pass-through trust certificates - - 16,074 5,235 16,074 5,235 $ 805,707 $ 15,046 $ 795,780 $ 29,425 $ 1,601,487 $ 44,471 As of December 31, 2017 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 $ - $ - $ 2,695 $ 1,277 $ 2,695 $ 1,277 U.S. Treasury and U.S. government agenciesĘĽ obligations 136,459 494 362,050 4,085 498,509 4,579 Mortgage-backed securities: FNMA 189,699 1,705 274,963 5,623 464,662 7,328 FHLMC 91,174 590 166,331 4,326 257,505 4,916 GNMA 39,145 334 - - 39,145 334 Other mortgage pass-through trust certificates - - 17,060 5,731 17,060 5,731 Equity securities (1) - - 407 6 407 6 $ 456,477 $ 3,123 $ 823,506 $ 21,048 $ 1,279,983 $ 24,171 (1) As of January 1, 2018, the Corporation adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment securities to other investment securities. |
OTTI Losses on Available-for-Sale Debt Securities | Quarter ended March 31, 2018 2017 (In thousands) Total other-than-temporary impairment losses $ - $ (12,231) Portion of other-than-temporary impairment recognized in OCI - - Net impairment losses recognized in earnings (1) $ - $ (12,231) _________ (1) Credit losses on Puerto Rico government debt securities, recorded in the first quarter of 2017. |
Roll-Forward of Credit Losses on Debt Securities Held by Corporation | The following tables summarize the roll-forward of credit losses on debt securities held by the Corporation for which a portion of an OTTI is recognized in OCI: Cumulative OTTI credit losses recognized in earnings on securities still held Credit impairments December 31, recognized in earnings on March 31, 2017 securities that have been 2018 Balance previously impaired Balance (In thousands) Available-for-sale securities Private label MBS $ 6,792 $ - $ 6,792 Cumulative OTTI credit losses recognized in earnings on securities still held Credit impairments December 31, recognized in earnings on March 31, 2016 securities that have been 2017 Balance previously impaired Balance (In thousands) Available for sale securities Puerto Rico government obligations $ 22,189 $ 12,231 $ 34,420 Private label MBS 6,792 $ - 6,792 Total OTTI credit losses for available-for-sale debt securities $ 28,981 $ 12,231 $ 41,212 |
Significant Assumptions in Valuation of Private Label MBS | As of As of March 31, 2018 December 31, 2017 Weighted Weighted Average Range Average Range Discount rate 14.5% 14.5% 14.0% 14.0% Prepayment rate 15.2% 7.5% - 24.5% 16.4% 12.0% - 29.0% Projected Cumulative Loss Rate 4% 0% - 9% 3% 0% - 6.8% |
Held To Maturity Securities [Text Block] | March 31, 2018 Amortized cost Fair value Gross Unrealized Weighted- gains losses average yield% Puerto Rico Municipal Bonds: After 1 to 5 years $ 3,712 $ - $ 161 $ 3,551 5.39 After 5 to 10 years 39,523 - 2,703 36,820 5.35 After 10 years 107,251 - 12,766 94,485 5.21 Total investment securities held to maturity $ 150,486 $ - $ 15,630 $ 134,856 5.25 December 31, 2017 Amortized cost Fair value Gross Unrealized Weighted gains losses average-yield% Puerto Rico Municipal Bonds: After 1 to 5 years $ 3,853 $ - $ 173 $ 3,680 5.38 After 5 to 10 years 39,523 - 3,048 36,475 5.28 After 10 years 107,251 - 16,374 90,877 4.93 Total investment securities held to maturity $ 150,627 $ - $ 19,595 $ 131,032 5.03 |
Held to maturity Securities [Member] | |
Available-for-Sale Investments' Fair Value and Gross Unrealized Losses | As of March 31, 2018 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 $ - $ - $ 134,856 $ 15,630 $ 134,856 $ 15,630 As of December 31, 2017 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 $ - $ - $ 131,032 $ 19,595 $ 131,032 $ 19,595 |
LOAN PORTFOLIO (Tables)
LOAN PORTFOLIO (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Loan Portfolio Held for Investment | As of As of March 31, December 31, 2018 2017 (In thousands) Residential mortgage loans, mainly secured by first mortgages $ 3,267,868 $ 3,290,957 Commercial loans: Construction loans (1) 79,150 111,397 Commercial mortgage loans (1) 1,552,503 1,614,972 Commercial and Industrial loans (2) 2,061,773 2,083,253 Total Commercial loans 3,693,426 3,809,622 Finance leases 262,863 257,462 Consumer loans 1,471,733 1,492,435 Loans held for investment (2) 8,695,890 8,850,476 Allowance for loan and lease losses (225,856) (231,843) Loans held for investment, net $ 8,470,034 $ 8,618,633 __________ (1) During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). (2) As of March 31, 2018 and December 31, 2017, includes $823.2 million and $833.5 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 | Loans held for investment on which accrual of interest income had been discontinued were as follows: As of As of March 31, December 31, 2018 2017 (In thousands) Non-performing loans: Residential mortgage $ 171,380 $ 178,291 Commercial mortgage (1) 115,179 156,493 Commercial and Industrial 85,325 85,839 Construction: Land 14,949 15,026 Construction-commercial (1) - 35,100 Construction-residential 1,287 1,987 Consumer: Auto loans 13,453 10,211 Finance leases 1,801 1,237 Other consumer loans 8,603 5,370 Total non-performing loans held for investment (2)(3)(4) $ 411,977 $ 489,554 _______________ (1) During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). (2) Excludes $64.9 million and $8.3 million of non-performing loans held for sale as of March 31, 2018 and December 31, 2017, respectively. (3) Amount excludes purchased-credit impaired ("PCI") loans with a carrying value of approximately $155.3 million and $158.2 million as of March 31, 2018 and December 31, 2017, 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. (4) Non-performing loans exclude $366.4 million and $374.7 million of Troubled Debt Restructuring ("TDR") loans that are in compliance with the modified terms and in accrual status as of March 31, 2018 and December 31, 2017, respectively. |
Corporation's Aging of Loans Held for Investment Portfolio | The Corporation’s aging of the loans held for investment portfolio is as follows: As of March 31, 2018 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) $ - $ 3,665 $ 107,693 $ 111,358 $ - $ 35,927 $ 147,285 $ 107,693 Other residential mortgage loans (4) - 57,505 186,535 244,040 151,067 2,725,476 3,120,583 15,155 Commercial: Commercial and Industrial loans 13,137 2,419 86,095 101,651 - 1,960,122 2,061,773 770 Commercial mortgage loans (4) - 49,807 119,156 168,963 4,214 1,379,326 1,552,503 3,977 Construction: Land (4) - 12 17,108 17,120 - 9,330 26,450 2,159 Construction-commercial - 1,012 - 1,012 - 45,227 46,239 - Construction-residential (4) - - 2,488 2,488 - 3,973 6,461 1,201 Consumer: Auto loans 32,438 7,891 13,453 53,782 - 784,711 838,493 - Finance leases 5,843 2,216 1,801 9,860 - 253,003 262,863 - Other consumer loans 13,701 4,577 10,434 28,712 - 604,528 633,240 1,831 Total loans held for investment $ 65,119 $ 129,104 $ 544,763 $ 738,986 $ 155,281 $ 7,801,623 $ 8,695,890 $ 132,786 _____________ (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 $30.6 million of residential mortgage loans insured by the FHA or guaranteed by the VA that are over 15 months delinquent, and are no longer accruing interest as of March 31, 2018. (3) As of March 31, 2018, includes $73.3 million of defaulted loans collateralizing Government National Mortgage Association ("GNMA") securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans. (4) According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two or more monthly payments. FHA/VA 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 March 31, 2018 amounted to $6.8 million, $122.0 million, $5.2 million, $0.6 million, and $0.2 million respectively. As of December 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due (1) Total Past Due Purchased Credit- Impaired Loans Current Total loans held for investment 90 days past due and still accruing (2) (3) (In thousands) Residential mortgage: FHA/VA and other government-guaranteed loans (2)(3)(4) $ - $ 6,792 $ 102,815 $ 109,607 $ - $ 29,332 $ 138,939 $ 102,815 Other residential mortgage loans (4) - 92,502 193,750 286,252 153,991 2,711,775 3,152,018 15,459 Commercial: Commercial and Industrial loans 8,971 576 88,156 97,703 - 1,985,550 2,083,253 2,317 Commercial mortgage loans (4) - 7,525 163,180 170,705 4,183 1,440,084 1,614,972 6,687 Construction: Land (4) - 124 15,177 15,301 - 11,630 26,931 151 Construction-commercial - - 35,100 35,100 - 41,456 76,556 - Construction-residential - 95 1,987 2,082 - 5,828 7,910 - Consumer: Auto loans 57,560 23,783 10,211 91,554 - 752,777 844,331 - Finance leases 10,549 3,484 1,237 15,270 - 242,192 257,462 - Other consumer loans 10,776 5,052 9,361 25,189 - 622,915 648,104 3,991 Total loans held for investment $ 87,856 $ 139,933 $ 620,974 $ 848,763 $ 158,174 $ 7,843,539 $ 8,850,476 $ 131,420 ____________ (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 $29.9 million of residential mortgage loans insured by the FHA or guaranteed by the VA that are over 15 months delinquent, and are no longer accruing interest as of December 31, 2017. (3) As of December 31, 2017, includes $62.1 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 on two or more monthly payments. FHA/VA and other government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, and land loans past due 30-59 days as of December 31, 2017 amounted to $6.0 million, $224.0 million, $9.0 million, and $2.5 million, respectively. |
Corporation's Credit Quality Indicators by Loan | The Corporation’s credit quality indicators by loan type as of March 31, 2018 and December 31, 2017 are summarized below: Commercial Credit Exposure-Credit Risk Profile Based on Creditworthiness Category: Substandard Doubtful Loss Total Adversely Classified (1) Total Portfolio March 31, 2018 (In thousands) Commercial mortgage $ 269,926 $ 2,117 $ - $ 272,043 $ 1,552,503 Construction: Land 15,971 391 - 16,362 26,450 Construction-commercial - - - - 46,239 Construction-residential 1,287 - - 1,287 6,461 Commercial and Industrial 144,205 7,745 729 152,679 2,061,773 Commercial Credit Exposure-Credit Risk Profile Based on Creditworthiness Category: Substandard Doubtful Loss Total Adversely Classified (1) Total Portfolio December 31, 2017 (In thousands) Commercial mortgage $ 257,503 $ 4,166 $ - $ 261,669 $ 1,614,972 Construction: Land 15,971 490 - 16,461 26,931 Construction-commercial 35,100 - - 35,100 76,556 Construction-residential 1,987 - - 1,987 7,910 Commercial and Industrial 154,416 3,854 676 158,946 2,083,253 _________ (1) Excludes non-peforming loans held for sale of $64.9 million ($27.2 million commercial mortgage, $30.0 million construction-commercial, and $7.7 million construction-land) and $8.3 million (construction-land) as of March 31, 2018 and December 31, 2017, respectively. March 31, 2018 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 $ 147,285 $ 2,798,136 $ 825,040 $ 261,062 $ 624,637 Purchased Credit-Impaired (2) - 151,067 - - - Non-performing - 171,380 13,453 1,801 8,603 Total $ 147,285 $ 3,120,583 $ 838,493 $ 262,863 $ 633,240 (1) It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as 90 days past-due loans and still accruing as opposed to non-performing loans since the principal repayment is insured. This balance includes $30.6 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent, and are no longer accruing interest as of March 31, 2018. (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 analyses. December 31, 2017 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 $ 138,939 $ 2,819,736 $ 834,120 $ 256,225 $ 642,734 Purchased Credit-Impaired (2) - 153,991 - - - Non-performing - 178,291 10,211 1,237 5,370 Total $ 138,939 $ 3,152,018 $ 844,331 $ 257,462 $ 648,104 (1) It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as 90 days past due loans and still accruing as opposed to non-performing loans since the principal repayment is insured. This balance includes $29.9 million of residential mortgage loans insured by the FHA or guaranteed by the VA that are over 15 months delinquent, and are no longer accruing interest as of December 31, 2017. (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 analyses. |
Impaired Loans | The following tables present information about impaired loans held for investment, excluding PCI loans, which are reported separately as discussed below: Impaired Loans Recorded Investment Unpaid Principal Balance Related Specific Allowance Average Recorded Investment Interest Income Recognized On Accrual Basis Interest Income Recognized On Cash Basis (In thousands) As of March 31, 2018 With no related specific allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 94,817 126,672 - 95,274 723 170 Commercial: Commercial mortgage loans 60,811 99,837 - 61,445 82 37 Commercial and Industrial loans 24,712 27,679 - 24,825 246 11 Construction: Land - - - - - - Construction-commercial - - - - - - Construction-residential - - - - - - Consumer: Auto loans 387 387 - 394 2 - Finance leases - - - - - - Other consumer loans 2,266 3,051 - 2,327 29 17 $ 182,993 $ 257,626 $ - $ 184,265 $ 1,082 $ 235 With a related specific allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 322,793 359,048 22,546 324,110 3,654 231 Commercial: Commercial mortgage loans 101,315 117,838 13,451 102,304 661 47 Commercial and Industrial loans 95,066 117,400 14,375 92,382 302 20 Construction: Land 11,815 20,001 1,432 11,864 25 8 Construction-commercial - - - - - - Construction-residential 252 355 52 252 - - Consumer: Auto loans 20,424 20,424 3,379 20,943 397 - Finance leases 1,876 1,876 84 1,958 35 - Other consumer loans 9,746 10,092 1,611 9,913 283 27 $ 563,287 $ 647,034 $ 56,930 $ 563,726 $ 5,357 $ 333 Total: FHA/VA-Guaranteed loans $ - $ - $ - $ - $ - $ - Other residential mortgage loans 417,610 485,720 22,546 419,384 4,377 401 Commercial: Commercial mortgage loans 162,126 217,675 13,451 163,749 743 84 Commercial and Industrial loans 119,778 145,079 14,375 117,207 548 31 Construction: Land 11,815 20,001 1,432 11,864 25 8 Construction-commercial - - - - - - Construction-residential 252 355 52 252 - - Consumer: Auto loans 20,811 20,811 3,379 21,337 399 - Finance leases 1,876 1,876 84 1,958 35 - Other consumer loans 12,012 13,143 1,611 12,240 312 44 $ 746,280 $ 904,660 $ 56,930 $ 747,991 $ 6,439 $ 568 Impaired Loans Recorded Investment Unpaid Principal Balance Related Specific Allowance Average Recorded Investment (In thousands) As of December 31, 2017 With no related specific allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - Other residential mortgage loans 116,818 154,048 - 120,241 Commercial: Commercial mortgage loans 65,100 100,612 - 86,563 Commercial and Industrial loans 28,292 31,254 - 28,567 Construction: Land 48 49 - 48 Construction-commercial - - - - Construction-residential - - - - Consumer: Auto loans 267 267 - 290 Finance leases - - - - Other consumer loans 2,521 3,688 - 2,745 $ 213,046 $ 289,918 $ - $ 238,454 With a related specific allowance recorded: FHA/VA-Guaranteed loans $ - $ - $ - $ - Other residential mortgage loans 316,616 349,284 22,086 318,606 Commercial: Commercial mortgage loans 87,814 124,084 9,783 93,720 Commercial and Industrial loans 90,008 112,005 12,359 92,666 Construction: Land 11,865 19,973 1,402 14,126 Construction-commercial 35,101 38,595 560 35,996 Construction-residential 252 355 55 252 Consumer: Auto loans 22,338 22,338 3,665 24,328 Finance leases 2,184 2,184 104 2,428 Other consumer loans 11,084 11,830 1,396 11,579 $ 577,262 $ 680,648 $ 51,410 $ 593,701 Total: FHA/VA-Guaranteed loans $ - $ - $ - $ - Other residential mortgage loans 433,434 503,332 22,086 438,847 Commercial: Commercial mortgage loans 152,914 224,696 9,783 180,283 Commercial and Industrial loans 118,300 143,259 12,359 121,233 Construction: Land 11,913 20,022 1,402 14,174 Construction-commercial 35,101 38,595 560 35,996 Construction-residential 252 355 55 252 Consumer: Auto loans 22,605 22,605 3,665 24,618 Finance leases 2,184 2,184 104 2,428 Other consumer loans 13,605 15,518 1,396 14,324 $ 790,308 $ 970,566 $ 51,410 $ 832,155 Interest income of approximately $6.9 million ($6.4 million on an accrual basis and $0.5 million on a cash basis) was recognized on impaired loans for the first quarter of 2017. |
Activity for Impaired loans | The following table shows the activity for impaired loans and the related specific reserve during the first quarter of 2018 and 2017: Quarter ended March 31, 2018 March 31, 2017 Impaired Loans: (In thousands) Balance at beginning of period $ 790,308 $ 887,905 Loans determined impaired during the period 61,408 19,628 Charge-offs (1) (2) (17,213) (17,404) Loans sold, net of charge-offs (4,121) (53,245) Increases to existing impaired loans 6,998 541 Foreclosures (11,675) (9,457) Loans no longer considered impaired (1,507) (892) Loans transferred to held for sale (57,213) - Paid in full or partial payments (20,705) (19,878) Balance at end of period $ 746,280 $ 807,198 (1) The first quarter of 2018 includes charge-offs totaling $9.7 million associated with the $57.2 million in non-performing loans transferred to held for sale. (2) The first quarter of 2017 includes a charge-off of $10.7 million related to the sale of the PREPA credit line as further discussed below. |
Activity for Specific Reserve | Quarter ended March 31, 2018 March 31, 2017 Specific Reserve: (In thousands) Balance at beginning of period $ 51,410 $ 64,421 Provision for loan losses 22,703 18,862 Net charge-offs (17,183) (16,972) Balance at end of period $ 56,930 $ 66,311 |
Carrying Value of Acquired Loans | The carrying amounts of PCI loans were as follows: As of March 31, December 31, 2018 2017 (In thousands) Residential mortgage loans $ 151,067 $ 153,991 Commercial mortgage loans 4,214 4,183 Total PCI loans $ 155,281 $ 158,174 Allowance for loan losses (11,251) (11,251) Total PCI loans, net of allowance for loan losses $ 144,030 $ 146,923 |
Accretable Yield | Changes in the accretable yield of PCI loans for the quarters ended March 31, 2018 and 2017 were as follows: March 31, 2018 March 31, 2017 (In thousands) Balance at beginning of period $ 103,682 $ 116,462 Accretion recognized in earnings (2,623) (2,797) Balance at end of period $ 101,059 $ 113,665 |
Selected Information on TDRs Includes Recorded Investment by Loan Class and Modification Type | Selected information on TDR loans held for investment that includes the recorded investment by loan class and modification type is summarized in the following tables. This information reflects all TDRs held for investment: March 31, 2018 Interest rate below market Maturity or term extension Combination of reduction in interest rate and extension of maturity Forgiveness of principal and/or interest Forbearance Agreement Other (1) Total (In thousands) Troubled Debt Restructurings: Non- FHA/VA Residential Mortgage loans $ 24,390 $ 8,396 $ 255,731 $ - $ - $ 61,463 $ 349,980 Commercial Mortgage loans 6,518 36,411 30,739 - 2,020 10,146 85,834 Commercial and Industrial loans 2,497 20,448 15,705 - 3,197 54,418 96,265 Construction loans: Land 17 3,860 2,177 - - 324 6,378 Construction-commercial (2) - - - - - - - Construction-residential - - - - - 217 217 Consumer loans - Auto - 1,235 12,944 - - 6,632 20,811 Finance leases - 196 1,680 - - - 1,876 Consumer loans - Other 952 1,775 6,356 166 - 1,766 11,015 Total Troubled Debt Restructurings (2) $ 34,374 $ 72,321 $ 325,332 $ 166 $ 5,217 $ 134,966 $ 572,376 (1) Other concessions granted by the Corporation included deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of the concessions listed in the table. (2) Excludes TDRs held for sale amounting to $30.0 million as of March 31, 2018. December 31, 2017 Interest rate below market Maturity or term extension Combination of reduction in interest rate and extension of maturity Forgiveness of principal and/or interest Forbearance Agreement Other (1) Total (In thousands) Troubled Debt Restructurings: Non- FHA/VA Residential Mortgage loans $ 25,964 $ 8,318 $ 267,578 $ - $ - $ 62,070 $ 363,930 Commercial Mortgage loans 6,563 2,094 31,870 - - 10,285 50,812 Commercial and Industrial loans 2,510 20,648 16,049 - 6,623 48,282 94,112 Construction loans: Land 18 3,941 2,186 - - 331 6,476 Construction-commercial - - - 35,100 - - 35,100 Construction-residential - - - - - 217 217 Consumer loans - Auto - 1,347 14,233 - - 7,025 22,605 Finance leases - 238 1,946 - - - 2,184 Consumer loans - Other 892 2,097 6,891 217 - 1,686 11,783 Total Troubled Debt Restructurings $ 35,947 $ 38,683 $ 340,753 $ 35,317 $ 6,623 $ 129,896 $ 587,219 (1) Other concessions granted by the Corporation included deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of the concessions listed in the table. |
Corporation's TDR Activity | The following table presents the Corporation's TDR loans held for investment activity: Quarter Ended March 31, 2018 March 31, 2017 (In thousands) Beginning Balance of TDRs $ 587,219 $ 647,048 New TDRs 43,419 40,899 Increases to existing TDRs 6,771 424 Charge-offs post modification (1) (2) (9,171) (14,662) Sales, net of charge-offs - (53,245) Foreclosures (7,043) (4,371) TDR transferred to held for sale, net of charge-off (30,000) - Paid-off and partial payments (18,819) (13,729) Ending balance of TDRs $ 572,376 $ 602,364 (1) The first quarter of 2018 includes a charge-off of $5.1 million associated with a $30.0 million construction loan transferred to held for sale. (2) The first quarter of 2017 includes a charge-off of $10.7 million related to the sale of the PREPA credit line. |
Breakdown Between Accrual and Nonaccrual Status of TDRs | The following table provides a breakdown of the TDR loans held for investment by those in accrual and non-accrual status: As of March 31, 2018 Accrual Non-accrual (1)(2) Total TDRs (In thousands) Non-FHA/VA Residential Mortgage loans $ 272,659 $ 77,321 $ 349,980 Commercial Mortgage loans 24,010 61,824 85,834 Commercial and Industrial loans 43,251 53,014 96,265 Construction loans: Land 1,197 5,181 6,378 Construction-commercial (2) - - - Construction-residential - 217 217 Consumer loans - Auto 14,082 6,729 20,811 Finance leases 1,653 223 1,876 Consumer loans - Other 9,570 1,445 11,015 Total Troubled Debt Restructurings $ 366,422 $ 205,954 $ 572,376 (1) Included in non-accrual loans are $53.2 million in loans that are performing under the terms of the restructuring agreement but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance under the revised terms for reinstatement to accrual status and are deemed fully collectible. (2) Excludes a $30.0 million non-performing construction loans transferred to held for sale during the first quarter of 2018. As of December 31, 2017 Accrual Non-accrual (1) Total TDRs (In thousands) Non-FHA/VA Residential Mortgage loans $ 280,729 $ 83,201 $ 363,930 Commercial Mortgage loans 23,329 27,483 50,812 Commercial and Industrial loans 41,536 52,576 94,112 Construction loans: Land 1,291 5,185 6,476 Construction-commercial - 35,100 35,100 Construction-residential - 217 217 Consumer loans - Auto 15,548 7,057 22,605 Finance leases 1,968 216 2,184 Consumer loans - Other 10,294 1,489 11,783 Total Troubled Debt Restructurings $ 374,695 $ 212,524 $ 587,219 (1) Included in non-accrual loans are $88.6 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. |
Schedule Of Troubled Debt Restructurings Table [Text Block] | Loan modifications that are considered TDR loans completed during the first quarters of 2018 and 2017 were as follows: Quarter ended March 31, 2018 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings: Non-FHA/VA Residential Mortgage loans 24 $ 2,608 $ 2,614 Commercial Mortgage loans 3 36,746 36,758 Commercial and Industrial loans 3 2,597 2,582 Consumer loans - Auto 45 680 680 Consumer loans - Other 136 785 785 Total Troubled Debt Restructurings 211 $ 43,416 $ 43,419 Quarter ended March 31, 2017 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings: Non-FHA/VA Residential Mortgage loans 40 $ 4,650 $ 4,508 Commercial Mortgage loans 6 22,438 22,198 Commercial and Industrial loans 3 10,748 10,748 Construction loans: Land 1 25 28 Consumer loans - Auto 152 2,247 2,247 Finance leases 8 186 186 Consumer loans - Other 210 969 984 Total Troubled Debt Restructurings 420 $ 41,263 $ 40,899 |
Loan Modifications Considered Troubled Debt Restructurings Defaulted | Loan modifications considered TDR loans that defaulted during the quarters ended March 31, 2018 and March 31, 2017, and had become TDR during the 12-month period preceding the default date, were as follows: Quarter ended March 31, 2018 2017 Number of contracts Recorded Investment Number of contracts Recorded Investment (Dollars in thousands) Non-FHA/VA Residential Mortgage loans 4 $ 387 3 $ 277 Commercial Mortgage loans - - 1 57 Consumer loans - Auto 2 23 4 61 Finance leases 1 22 - - Consumer loans - Other 11 54 17 61 Total 18 $ 486 25 $ 456 |
Loan Restructuring and Effect on Allowance for Loan and Lease Losses | (In thousands) March 31, 2018 March 31, 2017 Principal balance deemed collectible at end of period $ 35,553 $ 36,564 Amount charged off $ - $ - Charges to the provision for loan losses $ 1,412 $ 915 Allowance for loan losses at end of period $ 5,258 $ 6,056 |
Past Due Purchased Credit Impaired Table [Text Block] | The following tables present PCI loans by past due status as of March 31, 2018 and December 31, 2017: As of March 31, 2018 30-59 Days 60-89 Days 90 days or more Total Past Due Total PCI loans Current (In thousands) Residential mortgage loans $ - $ 8,291 $ 27,025 $ 35,316 $ 115,751 $ 151,067 Commercial mortgage loans - - 3,234 3,234 980 4,214 Total (1) $ - $ 8,291 $ 30,259 $ 38,550 $ 116,731 $ 155,281 _____________ (1) According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage and commercial mortgage loans are considered past due when the borrower is in arrears two or more monthly payments. PCI residential mortgage loans and commercial mortgage loans past due 30-59 days as of March 31, 2018 amounted to $13.5 million and $0.2 million, respectively. As of December 31, 2017 30-59 Days 60-89 Days 90 days or more Total Past Due Total PCI loans Current (In thousands) Residential mortgage loans $ - $ 16,600 $ 26,471 $ 43,071 $ 110,920 $ 153,991 Commercial mortgage loans - 355 2,834 3,189 994 4,183 Total (1) $ - $ 16,955 $ 29,305 $ 46,260 $ 111,914 $ 158,174 _____________ (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, 2017 amounted to $28.1 million and $0.2 million, respectively |
Changes In Carrying Amount Of Purchased Credit Impaired Loans Table [Text Block] | Changes in the carrying amount of loans accounted for pursuant to ASC 310-30 were as follows: Quarter ended Quarter ended March 31, 2018 March 31, 2017 (In thousands) Balance at beginning of period $ 158,174 $ 165,818 Accretion 2,623 2,797 Collections (3,396) (4,593) Foreclosures (2,120) (922) Ending balance $ 155,281 $ 163,100 Allowance for loan losses (11,251) (6,857) Ending balance, net of allowance for loan losses $ 144,030 $ 156,243 |
Allowance For Credit Losses On Purchased Credit Impaired Loans Table [Text Block] | Changes in the allowance for loan losses related to PCI loans were as follows: Quarter ended Quarter ended March 31, 2018 March 31, 2017 (In thousands) Balance at beginning of period $ 11,251 $ 6,857 Provision for loan losses - - Balance at the end of period $ 11,251 $ 6,857 |
ALLOWANCE FOR LOAN AND LEASE 39
ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Changes in Allowance for Loan and Lease Losses | The changes in the allowance for loan and lease losses were as follows: (In thousands) Residential Mortgage Loans Commercial Mortgage Loans Commercial & Industrial Loans Construction Loans Consumer Loans Total Quarter ended March 31, 2018 Allowance for loan and lease losses: Beginning balance $ 58,975 $ 48,493 $ 48,871 $ 4,522 $ 70,982 $ 231,843 Charge-offs (3,371) (6,810) (1,930) (5,177) (12,072) (29,360) Recoveries 335 49 62 13 2,370 2,829 Provision 447 8,661 656 4,764 6,016 20,544 Ending balance $ 56,386 $ 50,393 $ 47,659 $ 4,122 $ 67,296 $ 225,856 Ending balance: specific reserve for impaired loans $ 22,546 $ 13,451 $ 14,375 $ 1,484 $ 5,074 $ 56,930 Ending balance: purchased credit-impaired loans (1) $ 10,873 $ 378 $ - $ - $ - $ 11,251 Ending balance: general allowance $ 22,967 $ 36,564 $ 33,284 $ 2,638 $ 62,222 $ 157,675 Loans held for investment: Ending balance $ 3,267,868 $ 1,552,503 $ 2,061,773 $ 79,150 $ 1,734,596 $ 8,695,890 Ending balance: impaired loans $ 417,610 $ 162,126 $ 119,778 $ 12,067 $ 34,699 $ 746,280 Ending balance: purchased credit- impaired loans $ 151,067 $ 4,214 $ - $ - $ - $ 155,281 Ending balance: loans with general allowance $ 2,699,191 $ 1,386,163 $ 1,941,995 $ 67,083 $ 1,699,897 $ 7,794,329 (In thousands) Residential Mortgage Loans Commercial Mortgage Loans Commercial & Industrial Loans Construction Loans Consumer Loans Total Quarter ended March 31, 2017 Allowance for loan and lease losses: Beginning balance $ 33,980 $ 57,261 $ 61,953 $ 2,562 $ 49,847 $ 205,603 Charge-offs (8,225) (1,362) (12,052) (63) (11,192) (32,894) Recoveries 749 30 875 445 2,981 5,080 Provision (release) 9,271 12,539 (4,806) 942 7,496 25,442 Ending balance $ 35,775 $ 68,468 $ 45,970 $ 3,886 $ 49,132 $ 203,231 Ending balance: specific reserve for impaired loans $ 8,551 $ 36,638 $ 12,711 $ 2,835 $ 5,576 $ 66,311 Ending balance: purchased credit-impaired loans (1) $ 6,545 $ 312 $ - $ - $ - $ 6,857 Ending balance: general allowance $ 20,679 $ 31,518 $ 33,259 $ 1,051 $ 43,556 $ 130,063 Loans held for investment: Ending balance $ 3,272,598 $ 1,596,176 $ 2,108,532 $ 137,887 $ 1,707,156 $ 8,822,349 Ending balance: impaired loans $ 432,798 $ 193,035 $ 86,059 $ 51,801 $ 43,505 $ 807,198 Ending balance: purchased credit- impaired loans $ 158,940 $ 4,160 $ - $ - $ - $ 163,100 Ending balance: loans with general allowance $ 2,680,860 $ 1,398,981 $ 2,022,473 $ 86,086 $ 1,663,651 $ 7,852,051 (1) Refer to Note 7 - 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) | 3 Months Ended |
Mar. 31, 2018 | |
Portfolio of Loans Held for Sale | As of March 31, 2018 December 31, 2017 (In thousands) Residential mortgage loans $ 26,430 $ 24,690 Construction loans (1) 37,732 8,290 Commercial mortgage loans (1) 27,213 - Total (1) $ 91,375 $ 32,980 (1) During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sales consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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: March 31, December 31, 2018 2017 (In thousands) OREO OREO balances, carrying value: Residential (1) $ 60,240 $ 54,381 Commercial 83,911 82,871 Construction 10,488 10,688 Total $ 154,639 $ 147,940 (1) Excludes $17.8 million and $21.3 million as of March 31, 2018 and December 31, 2017, respectively, of foreclosures that meet the conditions of ASC 310-40 and are presented as a receivable (other assets) in the statement of financial condition. |
DERIVATIVE INSTRUMENTS AND HE42
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notional Amounts of All Derivative Instruments | The following table summarizes the notional amounts of all derivative instruments: Notional Amounts (1) As of As of March 31, December 31, (In thousands) 2018 2017 Undesignated economic hedges: Interest rate contracts: Written interest rate cap agreements $ 90,510 $ 91,010 Purchased interest rate cap agreements 90,510 91,010 Forward Contracts: Sale of TBA GNMA MBS pools 25,000 26,000 $ 206,020 $ 208,020 (1) Notional amounts are presented on a gross basis with no netting of offsetting exposure positions. |
Summary of Fair Value of Derivative Instruments and Location in Statement of Financial Condition | The following table summarizes for derivative instruments their fair values and location in the consolidated statements of financial condition: Asset Derivatives Liability Derivatives Statement of March 31, December 31, March 31, December 31, Financial 2018 2017 2018 2017 Condition Location Fair Value Fair Value Statement of Financial Condition Location Fair Value Fair Value (In thousands) Undesignated economic hedges: Interest rate contracts: Written interest rate cap agreements Other assets $ - $ - Accounts payable and other liabilities $ 668 $ 305 Purchased interest rate cap agreements Other assets 668 305 Accounts payable and other liabilities - - Forward Contracts: Sales of TBA GNMA MBS pools Other assets 3 7 Accounts payable and other liabilities 67 19 $ 671 $ 312 $ 735 $ 324 |
Effect of Derivative Instruments on Statement of Income (Loss) | The following table summarizes the effect of derivative instruments on the statement of income: (Loss) Location of Loss Quarter Ended Recognized in Statement March 31, of Income on Derivatives 2018 2017 (In thousands) UNDESIGNATED ECONOMIC HEDGES: Interest rate contracts: Written and purchased interest rate cap agreements Interest income - Loans $ - $ (1) Forward contracts: Sales of TBA GNMA MBS pools Mortgage Banking Activities (52) (56) Total loss on derivatives $ (52) $ (57) |
OFFSETTING OF ASSETS AND LIAB43
OFFSETTING OF ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Offsetting of assets and liabilties | Offsetting of Financial Assets and Derivative Assets As of March 31, 2018 Gross Amounts Not Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Financial Instruments Cash Collateral (In thousands) Net Amount Description Derivatives $ 668 $ - $ 668 $ (45) $ (623) $ - Securities purchased under agreements to resell 200,000 (200,000) - - - - Total $ 200,668 $ (200,000) $ 668 $ (45) $ (623) $ - As of December 31, 2017 Gross Amounts Not Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Financial Instruments Cash Collateral Net Amount (In thousands) Description Derivatives $ 305 $ - $ 305 $ (305) $ - $ - Securities purchased under agreements to resell 200,000 (200,000) - - - - Total $ 200,305 $ (200,000) $ 305 $ (305) $ - $ - Offsetting of Financial Liabilities and Derivative Liabilities As of March 31, 2018 Gross Amounts Not Offset in the Statement of Financial Position Net Amounts of Liabilities Presented in the Statement of Financial Position Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Financial Instruments Cash Collateral (In thousands) Net Amount Description Securities sold under agreements to repurchase $ 400,000 $ (200,000) $ 200,000 $ (200,000) $ - $ - As of December 31, 2017 Gross Amounts Not Offset in the Statement of Financial Position Net Amounts of Liabilities Presented in the Statement of Financial Position Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Financial Instruments Cash Collateral Net Amount (In thousands) Description Securities sold under agreements to repurchase $ 500,000 $ (200,000) $ 300,000 $ (300,000) $ - $ - |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Gross Amount and Accumulated Amortization of Other Intangible Assets | The following table shows the gross amount and accumulated amortization of the Corporation’s intangible assets recognized as part of Other Assets in the consolidated statements of financial condition: As of As of March 31, December 31, 2018 2017 (Dollars in thousands) Core deposit intangible: Gross amount, beginning of period $ 51,664 $ 51,664 Accumulated amortization (1) (46,580) (46,186) Net carrying amount $ 5,084 $ 5,478 Remaining amortization period 6.8 years 7.0 years Purchased credit card relationship intangible: Gross amount $ 24,465 $ 24,465 Accumulated amortization (2) (17,039) (16,465) Net carrying amount $ 7,426 $ 8,000 Remaining amortization period 3.6 years 3.9 years Insurance customer relationship intangible: Gross amount $ 1,067 $ 1,067 Accumulated amortization (3) (330) (292) Net carrying amount $ 737 $ 775 Remaining amortization period 4.7 years 5.0 years (1) For the quarters ended March 31, 2018 and 2017, the amortization expense of core deposit intangibles amounted to $0.4 million and $0.5 million, respectively. (2) For each of the quarters ended March 31, 2018 and 2017, the amortization expense of the purchased credit card relationship intangible amounted to $0.6 million. (3) For each of the quarters ended March 31, 2018 and 2017, the amortization expense of the insurance customer relationship intangible amounted to $38 thousand. The estimated aggregate annual amortization expense related to the intangible assets for future periods is as follows: Amount (In thousands) 2018 $ 2,585 2019 3,088 2020 2,851 2021 2,658 2020 915 2023 and after 1,150 |
NON-CONSOLIDATED VARIABLE INT45
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Changes in Servicing Assets | The changes in servicing assets are shown below: Quarter ended March 31, March 31, 2018 2017 (In thousands) Balance at beginning of period $ 25,255 $ 26,244 Capitalization of servicing assets 887 875 Amortization (737) (788) Adjustment to fair value 713 (160) Other (1) 17 159 Balance at end of period $ 26,135 $ 26,330 (1) Amount represents the adjustment to fair value related to the repurchase of loans serviced for others. |
Changes in Impairment Allowance | Changes in the impairment allowance were as follows: Quarter ended March 31, March 31, 2018 2017 (In thousands) Balance at beginning of period $ 1,451 $ 461 Temporary impairment charges 17 160 OTTI of servicing assets (65) (621) Recoveries (730) - Balance at end of period $ 673 $ - |
Components of Net Servicing Income | The components of net servicing income are shown below: Quarter ended March 31, March 31, 2018 2017 (In thousands) Servicing fees $ 2,120 $ 2,024 Late charges and prepayment penalties 120 99 Adjustment for loans repurchased 17 159 Other - (7) Servicing income, gross 2,257 2,275 Amortization and impairment of servicing assets (24) (948) Servicing income, net $ 2,233 $ 1,327 |
Weighted-Averages of Key Economic Assumptions in Valuation Model | (Dollars in thousands) Carrying amount of servicing assets $ 26,135 Fair value $ 30,720 Weighted-average expected life (in years) 8.56 Constant prepayment rate (weighted-average annual rate) 5.89% Decrease in fair value due to 10% adverse change $ 725 Decrease in fair value due to 20% adverse change $ 1,421 Discount rate (weighted-average annual rate) 11.23% Decrease in fair value due to 10% adverse change $ 1,503 Decrease in fair value due to 20% adverse change $ 2,876 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Deposit Balances | The following table summarizes deposit balances as of the dates indicated: March 31, December 31, 2018 2017 (In thousands) Type of account: Non-interest bearing checking accounts $ 2,019,823 $ 1,833,665 Savings accounts 2,413,446 2,401,385 Interest-bearing checking accounts 1,242,957 1,207,511 Certificates of deposit 2,434,162 2,429,585 Brokered certificates of deposit (CDs) 956,077 1,150,485 $ 9,066,465 $ 9,022,631 |
Brokered Certificates Of Deposit Mature | Brokered CDs mature as follows: March 31, 2018 (In thousands) Three months or less $ 133,119 Over three months to six months 149,170 Over six months to one year 265,986 Over one year but less than three years 316,191 Three to five years 90,231 Over five years 1,380 Total $ 956,077 |
Components of Interest Expense on Deposits | The following are the components of interest expense on deposits: Quarter Ended March 31, March 31, 2018 2017 (In thousands) Interest expense on deposits $ 16,607 $ 15,468 Accretion of premium from acquisition (3) (23) Amortization of broker placement fees 367 527 Interest expense on deposits $ 16,971 $ 15,972 |
SECURITIES SOLD UNDER AGREEME47
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Securities Sold Under Agreements to Repurchase | Securities sold under agreements to repurchase (repurchase agreements) consisted of the following: March, 31 December 31, 2018 2017 (Dollars in thousands) Short-term fixed-rate repurchase agreement with a rate of 1.53% $ - $ 100,000 Long-term fixed-rate repurchase agreements, interest ranging from 1.96% to 2.26% (1)(2) 200,000 200,000 $ 200,000 $ 300,000 (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 March 31, 2018, includes $200 million with an average rate of 2.11% that lenders have the right to call before their contractual maturities at various dates beginning on May 6, 2018. Subsequent to March 31, 2018, no lender has exercised its call option on repurchase agreements. |
Schedule of Repurchase Agreement Maturity | Repurchase agreements mature as follows: March 31, 2018 (In thousands) Three to four years 200,000 Total $ 200,000 |
Repurchase Agreements Grouped by Counterparty | Repurchase agreements as of March 31, 2018, grouped by counterparty, were as follows: (Dollars in thousands) Weighted-Average Counterparty Amount Maturity (In Months) JP Morgan Chase $ 200,000 46 |
ADVANCES FROM THE FEDERAL HOM48
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Advances from FHLB | The following is a summary of the advances from the FHLB: March 31, December 31, 2018 2017 (In thousands) Long-term fixed-rate advances from FHLB, with a weighted-average interest rate of 1.91% $ 715,000 $ 715,000 |
Advances from FHLB Mature | Advances from FHLB mature as follows: March 31, 2018 (In thousands) Over three months to six months $ 25,000 Over six months to one year 70,000 Over one to three years 300,000 Over three to five years 320,000 Total $ 715,000 |
OTHER BORROWINGS (Tables)
OTHER BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Components of Other Borrowings | March 31, December 31, 2018 2017 (In thousands) Junior subordinated debentures due in 2034, interest-bearing at a floating rate of 2.75% over 3-month LIBOR (4.92% as of March 31, 2018 and 4.35% as of December 31, 2017) (1) $ 65,593 $ 90,078 Junior subordinated debentures due in 2034, interest-bearing at a floating rate of 2.50% over 3-month LIBOR (4.70% as of March 31, 2018 and 4.12% as of December 31, 2017) 118,557 118,557 $ 184,150 $ 208,635 (1) Refer to Note 14, - "Non-Consolidated Variable Interest Entities and Servicing Assets-Trust Preferred Securities," for additional information about the Corporation repurchase and cancellation in the first quarter of 2018 of $23.8 million in trust-preferred securities associated with these junior subordinated debentures. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: As of March 31, 2018 As of December 31, 2017 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 (1) $ - $ - $ - $ - $ 418 $ - $ - $ 418 U.S. Treasury Securities 57,169 - - 57,169 7,401 - - 7,401 Noncallable U.S. agency debt - 329,170 - 329,170 - 361,971 - 361,971 Callable U.S. agency debt and MBS - 1,406,283 - 1,406,283 - 1,497,253 - 1,497,253 Puerto Rico government obligations - 4,074 2,734 6,808 - 4,118 2,695 6,813 Private label MBS - - 16,074 16,074 - - 17,060 17,060 Other investments - - - - - - 100 100 Equity securities (1) 413 - - 413 - - - - Derivatives, included in assets: Purchased interest rate cap agreements - 668 - 668 - 305 - 305 Forward contracts - 3 - 3 - 7 - 7 Liabilities: Derivatives, included in liabilities: Written interest rate cap agreement - 668 - 668 - 305 - 305 Forward contracts - 67 - 67 - 19 - 19 (1) As of January 1, 2018, the Corporation adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment securities to other investment securities. As of December 31, 2017, equity securities had a net unrealized loss of $6 thousand. |
Fair Value of Assets and Liabilities Measured on Recurring Basis | Quarter ended March 31, 2018 2017 Level 3 Instruments Only Securities Securities (In thousands) Available For Sale (1) Available For Sale (1) Beginning balance $ 19,855 22,914 Total gains (losses) (realized/unrealized): Included in other comprehensive income 472 518 Principal repayments and amortization (1,519) (2,050) Ending balance $ 18,808 $ 21,382 (1) Amounts mostly related to private label MBS. |
Impairment or Valuation Adjustments were Recorded for Assets Recognized at Fair Value | As of March 31, 2018, impairment or valuation adjustments were recorded for assets recognized at fair value on a non-recurring basis as shown in the following table: Carrying value as of March 31, 2018 (Losses) Gains recorded for the Quarter Ended March 31, 2018 Level 1 Level 2 Level 3 (In thousands) Loans receivable (1) $ - $ - $ 392,493 $ (4,224) Other real estate owned (2) - - 154,639 (287) Mortgage servicing rights (3) - - 26,135 713 Loans held for sale (4) - - 64,945 (6,203) (1) Consists mainly of impaired commercial and construction loans. The impairments were generally measured based on the fair value of the collateral. The fair values were derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable. (2) The fair values were derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. (3) Fair value adjustments to mortgage servicing rights were mainly due to assumptions associated with mortgage prepayment rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate 5.89%, Discount Rate 11.23%. (4) The value of these loans was primarily derived from external appraisals, adjusted for specific characteristics of the loans. As of March 31, 2017, impairment or valuation adjustments were recorded for assets recognized at fair value on a non-recurring basis as shown in the following table: Carrying value as of March 31, 2017 (Losses) recorded for the Quarter Ended March 31, 2017 Level 1 Level 2 Level 3 (In thousands) Loans receivable (1) $ - $ - $ 430,162 $ (15,211) Other real estate owned (2) - - 137,784 (4,180) Mortgage servicing rights (3) - - 26,330 (160) (1) Consists mainly of impaired commercial and construction loans. The impairments were generally measured based on the fair value of the underlying collateral. The fair values were derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable. (2) The fair values were derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. (3) Fair value adjustments to mortgage servicing rights were mainly due to assumptions associated with mortgage 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 6.17%, Discount Rate 11.20%. |
Estimated Fair Value and Carrying Value of Financial Instruments | The following tables present the carrying value, estimated fair value and estimated fair value level of the hierarchy of financial instruments as of March 31, 2018 and December 31, 2017: Total Carrying Amount in Statement of Financial Condition March 31, 2018 Fair Value Estimate March 31, 2018 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments (amortized cost) $ 843,824 $ 843,824 $ 843,824 $ - $ - Investment securities available for sale (fair value) 1,815,504 1,815,504 57,169 1,739,527 18,808 Investment securities held to maturity (amortized cost) 150,486 134,856 - - 134,856 Equity Securities (fair value) 413 413 413 - - Other investment securities (amortized cost) 43,119 43,119 - 43,119 - Loans held for sale (lower of cost or market) 91,375 91,736 - 26,791 64,945 Loans held for investment (amortized cost) 8,695,890 Less: allowance for loan and lease losses (225,856) Loans held for investment, net of allowance $ 8,470,034 8,262,128 - - 8,262,128 Derivatives, included in assets (fair value) 668 668 - 668 - Liabilities: Deposits (amortized cost) 9,066,465 9,070,024 - 9,070,024 - Securities sold under agreements to repurchase (amortized cost) 200,000 226,076 - 226,076 - Advances from FHLB (amortized cost) 715,000 701,079 - 701,079 - Other borrowings (amortized cost) 184,150 171,378 - - 171,378 Derivatives, included in liabilities (fair value) 735 735 - 735 - Total Carrying Amount in Statement of Financial Condition December 31, 2017 Fair Value Estimate December 31, 2017 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments (amortized cost) $ 716,395 $ 716,395 $ 716,395 $ - $ - Investment securities available for sale (fair value) 1,891,016 1,891,016 7,819 1,863,342 19,855 Investment securities held to maturity (amortized cost) 150,627 131,032 - - 131,032 Other investment securities (amortized cost) 43,119 43,119 - 43,119 - Loans held for sale (lower of cost or market) 32,980 34,979 - 25,237 9,742 Loans held for investment (amortized cost) 8,850,476 - - - - Less: allowance for loan and lease losses (231,843) - - - - Loans held for investment, net of allowance $ 8,618,633 8,372,865 - - 8,372,865 Derivatives, included in assets (fair value) 312 312 - 312 - Liabilities: Deposits (amortized cost) 9,022,631 9,026,600 - 9,026,600 - Securities sold under agreements to repurchase (amortized cost) 300,000 325,913 - 325,913 - Advances from FHLB (amortized cost) 715,000 707,272 - 707,272 - Other borrowings (amortized cost) 208,635 189,424 - - 189,424 Derivatives, included in liabilities (fair value) 324 324 - 324 - |
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: March 31, 2018 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 5.89%; weighted average discount rate of 11.23% |
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 March 31, 2018: March 31, 2018 (In thousands) Fair Value Valuation Technique Unobservable Input Range Investment securities available-for-sale: Private label MBS $ 16,074 Discounted cash flows Discount rate 14.5% Prepayment rate 7.5% - 24.5% (Weighted Average 15.2%) Projected Cumulative Loss Rate 0.00% - 9.0% (Weighted Average 4.0%) Puerto Rico government obligations 2,734 Discounted cash flows Discount rate 6.24% Prepayment rate 3.00% |
REVENUE FROM CONTRACTS WITH C51
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disaggregation Of Revenue Table [TextBlock] | (In thousands) Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Treasury and Investments United States Operations Virgin Islands Operations Total For the quarter ended March 31, 2018: Net interest income (1) $ 21,205 $ 51,049 $ 18,920 $ 12,518 $ 13,392 $ 7,609 $ 124,693 Service charges and fees on deposit accounts - 3,165 1,092 - 134 697 5,088 Insurance commissions - 3,144 - - 12 199 3,355 Merchant-related income - 645 161 - - 185 991 Credit and debit card fees - 4,169 255 - 128 542 5,094 Other service charges and fees 33 800 300 - 1,039 82 2,254 Not in scope of Topic 606 (1) 4,051 7 (549) 2,378 95 20 6,002 Total non-interest income 4,084 11,930 1,259 2,378 1,408 1,725 22,784 Total Revenue $ 25,289 $ 62,979 $ 20,179 $ 14,896 $ 14,800 $ 9,334 $ 147,477 (1) Most of the Corporation’s revenue is not within the scope of ASU No. 2014-09, Revenue from Contracts with Customers . The guidance explicitly excludes net interest income from financial assets and liabilities, as well as other noninterest income from loans, leases, investment securities and derivative financial instruments. |
SUPPLEMENTAL CASH FLOW INFORM52
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Information | Quarter Ended March 31, 2018 2017 (In thousands) Cash paid for: Interest on borrowings $ 24,353 $ 22,001 Non-cash investing and financing activities: Additions to OREO 15,867 13,597 Additions to auto and other repossessed assets 17,508 11,516 Capitalization of servicing assets 887 875 Loan securitizations 54,382 60,525 Loans held for investment transferred to held for sale 67,937 - Property plant and equipment transferred to other assets - 1,185 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Information about the Reportable Segments | The following table presents information about the reportable segments: (In thousands) Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Treasury and Investments United States Operations Virgin Islands Operations Total For the quarter ended March 31, 2018: Interest income $ 32,321 $ 42,550 $ 32,337 $ 14,254 $ 19,527 $ 8,429 $ 149,418 Net (charge) credit for transfer of funds (11,116) 15,222 (13,417) 9,974 (663) - - Interest expense - (6,723) - (11,710) (5,472) (820) (24,725) Net interest income 21,205 51,049 18,920 12,518 13,392 7,609 124,693 Provision for loan and lease losses (381) (5,793) (6,800) - (1,459) (6,111) (20,544) Non-interest income 4,084 11,930 1,259 2,378 1,408 1,725 22,784 Direct non-interest expenses (7,720) (26,901) (6,714) (948) (7,956) (7,622) (57,861) Segment income (loss) $ 17,188 $ 30,285 $ 6,665 $ 13,948 $ 5,385 $ (4,399) $ 69,072 Average earnings assets $ 2,293,482 $ 1,566,795 $ 2,632,220 $ 2,470,830 $ 1,709,918 $ 571,199 $ 11,244,444 (In thousands) Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Treasury and Investments United States Operations Virgin Islands Operations Total For the quarter ended March 31, 2017: Interest income $ 33,958 $ 42,917 $ 29,411 $ 13,757 $ 15,789 $ 9,396 $ 145,228 Net (charge) credit for transfer of funds (11,698) 4,909 (9,318) 16,233 (126) - - Interest expense - (5,900) - (11,806) (4,195) (778) (22,679) Net interest income 22,260 41,926 20,093 18,184 11,468 8,618 122,549 (Provision) release for loan and lease losses (8,936) (7,142) (8,055) - 35 (1,344) (25,442) Non-interest income (loss) 3,586 13,379 1,237 (12,170) 505 1,706 8,243 Direct non-interest expenses (9,879) (27,418) (9,367) (1,207) (7,859) (6,750) (62,480) Segment income $ 7,031 $ 20,745 $ 3,908 $ 4,807 $ 4,149 $ 2,230 $ 42,870 Average earnings assets $ 2,500,750 $ 1,775,931 $ 2,548,936 $ 2,157,882 $ 1,393,215 $ 617,820 $ 10,994,534 |
Reconciliation of the Reportable Segment Financial Information | The following table presents a reconciliation of the reportable segment financial information to the consolidated totals: Quarter Ended March 31, 2018 2017 Net income: Total income for segments and other $ 69,072 $ 42,870 Other operating expenses (1) (28,166) (25,402) Income before income taxes 40,906 17,468 Income tax (expense) benefit (7,758) 8,073 Total consolidated net income $ 33,148 $ 25,541 Average assets: Total average earning assets for segments $ 11,244,444 $ 10,994,534 Average non-earning assets 947,460 886,492 Total consolidated average assets $ 12,191,904 $ 11,881,026 (1) Expenses pertaining to corporate administrative functions that support the operating segment but are not specifically attributable to or managed by any segment are not included in the reported financial results of the operating segments. The unallocated corporate expenses include certain general and administrative expenses and related depreciation and amortization expenses. |
REGULATORY MATTERS, COMMITMEN54
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule Of Compliance With Regulatory Capital Requirements Under Banking Regulations [Text Block] | The Corporation's and its banking subsidiary's regulatory capital positions as of March 31, 2018 and December 31, 2017 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) As of March 31, 2018 Total Capital (to Risk-Weighted Assets) First BanCorp. $ 1,990,146 22.98% $ 692,691 8.0% N/A N/A FirstBank $ 1,950,261 22.52% $ 692,671 8.0% $ 865,838 10.0% Common Equity Tier 1 Capital (to Risk-Weighted Assets) First BanCorp. $ 1,665,842 19.24% $ 389,639 4.5% N/A N/A FirstBank $ 1,532,690 17.70% $ 389,627 4.5% $ 562,795 6.5% Tier I Capital (to Risk-Weighted Assets) First BanCorp. $ 1,701,946 19.66% $ 519,518 6.0% N/A N/A FirstBank $ 1,840,690 21.26% $ 519,503 6.0% $ 692,671 8.0% Leverage ratio First BanCorp. $ 1,701,946 14.18% $ 480,078 4.0% N/A N/A FirstBank $ 1,840,690 15.35% $ 479,527 4.0% $ 599,408 5.0% As of December 31, 2017 Total Capital (to Risk-Weighted Assets) First BanCorp. $ 1,989,873 22.53% $ 706,432 8.0% N/A N/A FirstBank $ 1,947,627 22.06% $ 706,218 8.0% $ 882,772 10.0% Common Equity Tier 1 Capital (to Risk-Weighted Assets) First BanCorp. $ 1,674,164 18.96% $ 397,368 4.5% N/A N/A FirstBank $ 1,562,431 17.70% $ 397,248 4.5% $ 573,802 6.5% Tier I Capital (to Risk-Weighted Assets) First BanCorp. $ 1,675,282 18.97% $ 529,824 6.0% N/A N/A FirstBank $ 1,835,445 20.79% $ 529,663 6.0% $ 706,218 8.0% Leverage ratio First BanCorp. $ 1,675,282 14.03% $ 477,643 4.0% N/A N/A FirstBank $ 1,835,445 15.39% $ 477,056 4.0% $ 596,320 5.0% |
FIRST BANCORP. (Holding Compa55
FIRST BANCORP. (Holding Company Only) Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Statements of Financial Condition | Statements of Financial Condition As of March 31, As of December 31, 2018 2017 (In thousands) Assets Cash and due from banks $ 16,866 $ 20,864 Money market investments 6,111 6,111 Other investment securities 285 285 Loans held for investment, net 178 191 Investment in First Bank Puerto Rico, at equity 2,015,111 2,028,641 Investment in First Bank Insurance Agency, at equity 14,933 12,400 Investment in FBP Statutory Trust I 1,963 2,698 Investment in FBP Statutory Trust II 3,561 3,561 Other assets 5,671 3,799 Total assets $ 2,064,679 $ 2,078,550 Liabilities and Stockholders' Equity Liabilities: Other borrowings $ 184,150 $ 208,635 Accounts payable and other liabilities 3,425 818 Total liabilities 187,575 209,453 Stockholders' equity 1,877,104 1,869,097 Total liabilities and stockholders' equity $ 2,064,679 $ 2,078,550 |
Statements of Income (Loss) | Statements of Income Quarter Ended March 31, March 31, 2018 2017 (In thousands) Income: Interest income on money market investments $ 5 $ 5 Dividends from banking subsidiary 21,584 1,930 Other income 63 62 21,652 1,997 Expense: Other borrowings 2,085 1,963 Other operating expenses 596 967 2,681 2,930 Gain on early extinguishment of debt 2,316 - Income (loss) income before income taxes and equity in undistributed earnings of subsidiaries 21,287 (933) Equity in undistributed earnings of subsidiaries 11,861 26,474 Net income $ 33,148 $ 25,541 Other comprehensive (loss) income, net of tax (24,047) 10,696 Comprehensive income $ 9,101 $ 36,237 |
BASIS OF PRESENTATION AND SIG56
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Significant Accounting Policies [Line Items] | |
Callable Debt Securities Held At Premium | $ 4,300 |
Callable Debt Securities Unamortized Premium | $ 50 |
UPDATE ON IMPACTS OF NATURAL 57
UPDATE ON IMPACTS OF NATURAL DISASTERS- Additional information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Liability For Catastrophe Claims Line [Items] | |||||
Financing Receivable Allowance For Credit Losses | $ 225,856 | $ 203,231 | $ 231,843 | $ 205,603 | |
Loans And Leases Receivable Impaired Nonperforming Nonaccrual Of Interest | [1],[2],[3] | 411,977 | 489,554 | ||
Marketing And Advertising Expense | 2,576 | 3,281 | |||
Financing Receivable Allowance For Credit Losses Write Offs | 29,360 | $ 32,894 | |||
Hurricane [Member] | |||||
Liability For Catastrophe Claims Line [Items] | |||||
Financing Receivable Allowance For Credit Losses | 62,100 | ||||
Loss And Expenses Catastrophic Events | 1,600 | ||||
Disaster Response Plan Costs | 9,400 | ||||
Net Loan Loss Reserve Release | 6,400 | ||||
Insurance Claim Receivable | 5,300 | ||||
Increase Decrease In Deposits Excluding Brokered Certificates Of Deposits | $ 238,300 | ||||
Percentage Of Non Interest Bearing Demand Deposits | 10.00% | ||||
Increase Decrease In Non Interest Bearing Demand Deposits | $ 186,200 | ||||
Increase Decrease In Non Interest Bearing Deposits From September | $ 433,700 | ||||
Percentage Of Non Interest Bearing Demand Deposits From September | 27.00% | ||||
Increase Decrease In Deposits Excluding Brokered Certificates Of DepositsFrom September | $ 599,800 | ||||
Residential Mortgage [Member] | |||||
Liability For Catastrophe Claims Line [Items] | |||||
Loans And Leases Receivable Impaired Nonperforming Nonaccrual Of Interest | 171,380 | 178,291 | |||
Consumer Loan [Member] | |||||
Liability For Catastrophe Claims Line [Items] | |||||
Loans And Leases Receivable Impaired Nonperforming Nonaccrual Of Interest | 8,603 | $ 5,370 | |||
Construction Loans [Member] | Hurricane [Member] | |||||
Liability For Catastrophe Claims Line [Items] | |||||
Financing Receivable Allowance For Credit Losses Write Offs | $ 2,800 | ||||
[1] | Amount excludes purchased-credit impaired ("PCI") loans with a carrying value of approximately $155.3 million and $158.2 million as of March 31, 2018 and December 31, 2017, 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] | Excludes $64.9 million and $8.3 million of non-performing loans held for sale as of March 31, 2018 and December 31, 2017, respectively. | ||||
[3] | Non-performing loans exclude $366.4 million and $374.7 million of Troubled Debt Restructuring ("TDR") loans that are in compliance with the modified terms and in accrual status as of March 31, 2018 and December 31, 2017, respectively. |
BUSINESS COMBINATION- Additiona
BUSINESS COMBINATION- Additional information (Detail) - USD ($) $ in Thousands | 1 Months Ended | ||
Feb. 27, 2015 | Mar. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Branches Doral | 10 | ||
Contractually outstanding principal and interest at acquisition | $ 192,000 | $ 196,600 | |
Callable Debt Securities Held At Premium | 4,300 | ||
Callable Debt Securities Unamortized Premium | $ 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 | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net Income (Loss): | ||
Net income | $ 33,148 | $ 25,541 |
Dividends on preferred stock | (669) | (669) |
Net income (loss) attributable to common stockholders | $ 32,479 | $ 24,872 |
Weighted-Average Shares: | ||
Basic weighted-average common shares outstanding | 214,646 | 213,340 |
Average potential common shares | 1,648 | 4,033 |
Diluted weighted-average number of common shares outstanding | 216,294 | 217,373 |
Income (loss) per common share: | ||
Basic | $ 0.15 | $ 0.12 |
Diluted | $ 0.15 | $ 0.11 |
Retained Earnings [Member] | ||
Net Income (Loss): | ||
Net income | $ 33,148 | $ 25,541 |
Dividends on preferred stock | $ (669) | $ (669) |
EARNINGS PER COMMON SHARE - Add
EARNINGS PER COMMON SHARE - Additional Information (Detail) | Dec. 31, 2017shares |
Earnings Per Share Diluted [Line Items] | |
Unvested shares of restricted stock | 1,816,968 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 29, 2008 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted shares of restricted stock | 341,189 | |||
Vested | [1] | 1,061,476 | ||
Stock based compensation expense unrecognized related to nonvested shares of restricted stock | $ 3.9 | |||
Period for cost recognition not yet recognized | 1 year 8 months 12 days | |||
Weighted-Average Grant Date Fair Value of Stocks | $ 6.29 | |||
Holding Period By The Us Treasury Of Outstanding Common Stock | 2 years | 2 years | ||
Repurchased of common stock | 383,087 | 98,300 | ||
U S Treasury And Government [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Class Of Warrant Or Right Outstanding | 1,285,899 | |||
Percentage of forfeited stock | 50.00% | |||
Senior Executives | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted shares | 154,187 | 135,692 | ||
Share based compensation cost | $ 0.8 | |||
Weighted-Average Grant Date Fair Value of Stocks | $ 5.8 | $ 6.31 | ||
Repurchased of common stock | 56,131 | 45,710 | ||
Management [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted shares of restricted stock | 949,332 | |||
Restricted stock vesting period | 2 years | 2 years | ||
Omnibus Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Authorized granting up shares | 14,169,807 | |||
Restricted stock available for issuance | 7,063,074 | |||
Troubled Asset Relief Program [Member] | Senior Management [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of Share vested during period | 50.00% | |||
Restricted Stock Forfeitures Percentage | 50.00% | |||
Troubled Asset Relief Program [Member] | Management [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted shares of restricted stock | 838,332 | |||
Fair Value Of Restricted Stock Granted | $ 2.71 | |||
Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based compensation cost | $ 1.1 | $ 0.9 | ||
Repurchased of common stock | 326,956 | 52,590 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeited In Period | 2,370,571 | |||
Retirement Eligible Shares | 20,447 | |||
Performance Shares [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based compensation cost | $ 0.2 | |||
Stock based compensation expense unrecognized related to nonvested shares of restricted stock | $ 1.7 | |||
Performance Shares [Member] | Omnibus Plan [Member] | Executive Officers [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted shares | 304,408 | |||
Retirement Eligible Shares | 29,171 | |||
Restricted Stock Vesting After Two Years Member [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of Share vested during period | 50.00% | |||
Restricted Stock Vesting After Three Years Member [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of Share vested during period | 50.00% | |||
Performance Shares Vesting After Minimum Threshold [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Performance Share Based Awards Percentage | 50.00% | |||
Minimum performance threshold [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Performance Share Based Awards Percentage | 80.00% | |||
[1] |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Activity Under Omnibus Plan (Detail) | 3 Months Ended | |
Mar. 31, 2018$ / sharesshares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of non-vested shares of restricted stock, beginning of period | shares | 1,816,968 | |
Granted shares of restricted stock | shares | 341,189 | |
Vested | shares | (1,061,476) | [1] |
Weighted-Average Grant Date Fair Value, beginning of period | $ / shares | $ 2.76 | |
Weighted-Average Grant Date Fair Value of Stocks | $ / shares | 6.29 | |
Weighted-Averages Grant Date Fair Value, Vested | $ / shares | 2.02 | [1] |
Weighted-Average Grant Date Fair Value, end of period | $ / shares | $ 4.58 | |
Omnibus Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of non-vested shares of restricted stock, end of period | shares | 1,096,681 | |
[1] |
INVESTMENT SECURITIES - Investm
INVESTMENT SECURITIES - Investment Securities Available for Sale (Detail) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 1,852,413,000 | $ 1,903,878,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 5,235,000 | 5,731,000 | |
Gross unrealized gain | 7,562,000 | 11,309,000 | |
Gross unrealized loss | 39,236,000 | 18,440,000 | |
Fair value | $ 1,815,504,000 | $ 1,891,016,000 | |
Weighted average yield | 2.32% | 2.27% | |
United States And Puerto Rico Government Obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 619,955,000 | $ 621,664,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 48,000 | 193,000 | |
Gross unrealized loss | 9,624,000 | 5,856,000 | |
Fair value | $ 610,379,000 | $ 616,001,000 | |
Weighted average yield | 1.76% | 1.70% | |
Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 1,232,458,000 | $ 1,281,690,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 5,235,000 | 5,731,000 | |
Gross unrealized gain | 7,514,000 | 11,116,000 | |
Gross unrealized loss | 29,612,000 | 12,578,000 | |
Fair value | $ 1,205,125,000 | $ 1,274,497,000 | |
Weighted average yield | 2.60% | 2.54% | |
Federal Home Loan Mortgage Corporation Certificates And Obligations F H L M C [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 305,971,000 | $ 316,391,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 12,000 | 231,000 | |
Gross unrealized loss | 9,684,000 | 4,916,000 | |
Fair value | $ 296,299,000 | $ 311,706,000 | |
Weighted average yield | 2.23% | 2.23% | |
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 | $ 205,548,000 | $ 214,809,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 5,178,000 | 7,155,000 | |
Gross unrealized loss | 1,123,000 | 334,000 | |
Fair value | $ 209,603,000 | $ 221,630,000 | |
Weighted average yield | 3.57% | 3.56% | |
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 | $ 656,857,000 | $ 683,894,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 1,995,000 | 3,474,000 | |
Gross unrealized loss | 18,794,000 | 7,328,000 | |
Fair value | $ 640,058,000 | $ 680,040,000 | |
Weighted average yield | 2.40% | 2.39% | |
Collateralized Mortgage Obligations Issued And Guaranteed By Fhlmc Fnma And Gnma [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 42,773,000 | $ 43,805,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 329,000 | 256,000 | |
Gross unrealized loss | 11,000 | 0 | |
Fair value | $ 43,091,000 | $ 44,061,000 | |
Weighted average yield | 2.53% | 2.22% | |
Due Within One Year [Member] | U S Treasury Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 49,799,000 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 0 | ||
Gross unrealized loss | 22,000 | ||
Fair value | $ 49,777,000 | ||
Weighted average yield | 1.55% | ||
Due Within One Year [Member] | US Government Sponsored Enterprises Debt Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 72,484,000 | $ 122,471,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 242,000 | 319,000 | |
Fair value | $ 72,242,000 | $ 122,152,000 | |
Weighted average yield | 1.08% | 1.06% | |
After One To Five Years [Member] | U S Treasury Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 7,465,000 | $ 7,458,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 73,000 | 57,000 | |
Fair value | $ 7,392,000 | $ 7,401,000 | |
Weighted average yield | 1.29% | 1.29% | |
After One To Five Years [Member] | US Government Sponsored Enterprises Debt Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 309,459,000 | $ 309,472,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 0 | 28,000 | |
Gross unrealized loss | 4,996,000 | 3,735,000 | |
Fair value | $ 304,463,000 | $ 305,765,000 | |
Weighted average yield | 1.42% | 1.42% | |
After One To Five Years [Member] | Puerto Rico Government obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Weighted average yield | 0.00% | ||
After One To Five Years [Member] | Other Available For Sale Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 100,000 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 0 | ||
Gross unrealized loss | 0 | ||
Fair value | $ 100,000 | ||
Weighted average yield | 1.48% | ||
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 | $ 136,000 | $ 81,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 3,000 | 1,000 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 139,000 | $ 82,000 | |
Weighted average yield | 2.77% | 3.23% | |
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 | $ 15,735,000 | $ 20,831,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 177,000 | 294,000 | |
Gross unrealized loss | 195,000 | 109,000 | |
Fair value | $ 15,717,000 | $ 21,016,000 | |
Weighted average yield | 2.89% | 2.69% | |
After One To Five Years [Member] | Collateralized Mortgage Obligations Issued And Guaranteed By Fhlmc Fnma And Gnma [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 8,154,000 | $ 5,918,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 8,000 | 14,000 | |
Gross unrealized loss | 11,000 | 0 | |
Fair value | $ 8,151,000 | $ 5,932,000 | |
Weighted average yield | 2.53% | 2.21% | |
After Five To Ten Years [Member] | US Government Sponsored Enterprises Debt Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 133,471,000 | $ 133,451,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 26,000 | 117,000 | |
Gross unrealized loss | 2,736,000 | 319,000 | |
Fair value | $ 130,761,000 | $ 133,249,000 | |
Weighted average yield | 2.74% | 2.72% | |
After Five To Ten Years [Member] | Puerto Rico Government obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 4,052,000 | $ 4,071,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 22,000 | 47,000 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 4,074,000 | $ 4,118,000 | |
Weighted average yield | 3.14% | 3.14% | |
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 | $ 43,037,000 | $ 18,658,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 12,000 | 14,000 | |
Gross unrealized loss | 1,305,000 | 63,000 | |
Fair value | $ 41,744,000 | $ 18,609,000 | |
Weighted average yield | 1.96% | 2.14% | |
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 | $ 65,098,000 | $ 69,661,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 683,000 | 1,244,000 | |
Gross unrealized loss | 137,000 | 0 | |
Fair value | $ 65,644,000 | $ 70,905,000 | |
Weighted average yield | 3.04% | 3.05% | |
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 | $ 109,562,000 | $ 49,934,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 4,279,000 | 818,000 | |
Fair value | $ 105,283,000 | $ 49,116,000 | |
Weighted average yield | 1.76% | 1.83% | |
After Five To Ten Years [Member] | Collateralized Mortgage Obligations Issued And Guaranteed By Fhlmc Fnma And Gnma [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 2,556,000 | ||
Noncredit Loss Component of OTTI Recorded in OCI | 0 | ||
Gross unrealized gain | 11,000 | ||
Gross unrealized loss | 0 | ||
Fair value | $ 2,567,000 | ||
Weighted average yield | 2.23% | ||
After Ten Years [Member] | US Government Sponsored Enterprises Debt Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 39,190,000 | $ 40,769,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 0 | 1,000 | |
Gross unrealized loss | 254,000 | 149,000 | |
Fair value | $ 38,936,000 | $ 40,621,000 | |
Weighted average yield | 2.07% | 1.84% | |
After Ten Years [Member] | Puerto Rico Government obligations [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 4,035,000 | $ 3,972,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 1,301,000 | 1,277,000 | |
Fair value | $ 2,734,000 | $ 2,695,000 | |
Weighted average yield | 6.97% | 6.97% | |
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 | $ 262,934,000 | $ 297,733,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 0 | 217,000 | |
Gross unrealized loss | 8,379,000 | 4,853,000 | |
Fair value | $ 254,555,000 | $ 293,097,000 | |
Weighted average yield | 2.28% | 2.23% | |
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 | $ 140,314,000 | $ 145,067,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 4,492,000 | 5,910,000 | |
Gross unrealized loss | 986,000 | 334,000 | |
Fair value | $ 143,820,000 | $ 150,643,000 | |
Weighted average yield | 3.81% | 3.81% | |
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 | $ 531,560,000 | $ 613,129,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 1,818,000 | 3,180,000 | |
Gross unrealized loss | 14,320,000 | 6,401,000 | |
Fair value | $ 519,058,000 | $ 609,908,000 | |
Weighted average yield | 2.52% | 2.43% | |
After Ten Years [Member] | Collateralized Mortgage Obligations Issued And Guaranteed By Fhlmc Fnma And Gnma [Member] | Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 34,619,000 | $ 35,331,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 0 | 0 | |
Gross unrealized gain | 321,000 | 231,000 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 34,940,000 | $ 35,562,000 | |
Weighted average yield | 2.53% | 2.22% | |
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 | $ 21,309,000 | $ 22,791,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | 5,235,000 | 5,731,000 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 0 | 0 | |
Fair value | $ 16,074,000 | $ 17,060,000 | |
Weighted average yield | 4.49% | 2.44% | |
Equity Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | [1] | $ 424,000 | |
Noncredit Loss Component of OTTI Recorded in OCI | [1] | 0 | |
Gross unrealized gain | [1] | 0 | |
Gross unrealized loss | [1] | 6,000 | |
Fair value | [1] | $ 418,000 | |
Weighted average yield | [1] | 2.11% | |
[1] | As of January 1, 2018, the Corporation adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment securities to other investment securities. |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | May 17, 2017 | Dec. 31, 2016 | |
Schedule Of Investments [Line Items] | ||||||
Percentage Of Debt Securities Government And Government Sponsored Agencies | 98.00% | |||||
Maximum loan to value ratio | 80.00% | |||||
Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities | $ 100,195 | $ 53,830 | ||||
Total investment securities available for sale | 1,815,504 | $ 1,891,016 | ||||
Fair value | 1,815,504 | 1,891,016 | ||||
Amortized cost | $ 1,852,413 | $ 1,903,878 | ||||
Weighted average yield | 2.32% | 2.27% | ||||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Portion Recognized in Earnings, Net, Qualitative Disclosures, Default Rate | 100.00% | |||||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net | $ 0 | $ 12,231 | ||||
Interest Receivable | 44,093 | $ 57,172 | ||||
Other Than Temporary Impairment Credit Losses Recognized In Earnings Credit Losses On Debt Securities Held | $ 41,212 | $ 28,981 | ||||
Maximum [Member] | ||||||
Schedule Of Investments [Line Items] | ||||||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Portion Recognized in Earnings, Net, Qualitative Disclosures, Recovery Rate | 80.00% | |||||
Minimum [Member] | ||||||
Schedule Of Investments [Line Items] | ||||||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Portion Recognized in Earnings, Net, Qualitative Disclosures, Recovery Rate | 15.00% | |||||
Weighted Average [Member] | ||||||
Schedule Of Investments [Line Items] | ||||||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Portion Recognized in Earnings, Net, Qualitative Disclosures, Recovery Rate | 41.00% | |||||
Mortgage Backed Securities Issued By Private Enterprises [Member] | ||||||
Schedule Of Investments [Line Items] | ||||||
Other Than Temporary Impairment Credit Losses Recognized In Earnings Credit Losses On Debt Securities Held | $ 6,792 | $ 6,792 | $ 6,792 | 6,792 | ||
Puerto Rico Government obligations [Member] | ||||||
Schedule Of Investments [Line Items] | ||||||
Proceeds from sale of available-for-sale securities | $ 23,400 | |||||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net | 12,200 | |||||
Percentage Of Held To Maturity Securities | 70.00% | |||||
Other Than Temporary Impairment Credit Losses Recognized In Earnings Credit Losses On Debt Securities Held | $ 34,400 | $ 34,420 | $ 22,189 | |||
Puerto Rico Government obligations [Member] | Puerto Rico Government Debt Securities Other Than Temporary Impairment [Member] | ||||||
Schedule Of Investments [Line Items] | ||||||
Amortized cost | $ 23,000 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narratives (Detail) | Mar. 31, 2018minimumcreditscore |
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 | Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Fair Value Less than 12 months | $ 805,707 | $ 456,477 | |
Unrealized Losses Less than 12 months | 15,046 | 3,123 | |
Fair Value 12 months or more | 795,780 | 823,506 | |
Unrealized Losses 12 months or more | 29,425 | 21,048 | |
Total Fair Value | 1,601,487 | 1,279,983 | |
Total Unrealized Losses | 44,471 | 24,171 | |
Equity Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Fair Value Less than 12 months | [1] | 0 | |
Unrealized Losses Less than 12 months | [1] | 0 | |
Fair Value 12 months or more | [1] | 407 | |
Unrealized Losses 12 months or more | [1] | 6 | |
Total Fair Value | [1] | 407 | |
Total Unrealized Losses | [1] | 6 | |
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 | 2,734 | 2,695 | |
Unrealized Losses 12 months or more | 1,301 | 1,277 | |
Total Fair Value | 2,734 | 2,695 | |
Total Unrealized Losses | 1,301 | 1,277 | |
Debt Securities [Member] | US States And Political Subdivisions Member [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Fair Value Less than 12 months | 238,248 | 136,459 | |
Unrealized Losses Less than 12 months | 3,306 | 494 | |
Fair Value 12 months or more | 360,298 | 362,050 | |
Unrealized Losses 12 months or more | 5,017 | 4,085 | |
Total Fair Value | 598,546 | 498,509 | |
Total Unrealized Losses | 8,323 | 4,579 | |
Mortgage Backed Securities [Member] | Collateralized Mortgage Obligations Member | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Fair Value Less than 12 months | 5,907 | ||
Unrealized Losses Less than 12 months | 11 | ||
Fair Value 12 months or more | 0 | ||
Unrealized Losses 12 months or more | 0 | ||
Total Fair Value | 5,907 | ||
Total Unrealized Losses | 11 | ||
Mortgage Backed Securities [Member] | Other-mortgage pass-through trust certificates [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Fair Value Less than 12 months | 0 | 0 | |
Unrealized Losses Less than 12 months | 0 | 0 | |
Fair Value 12 months or more | 16,074 | 17,060 | |
Unrealized Losses 12 months or more | 5,235 | 5,731 | |
Total Fair Value | 16,074 | 17,060 | |
Total Unrealized Losses | 5,235 | 5,731 | |
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 | 68,490 | 39,145 | |
Unrealized Losses Less than 12 months | 1,123 | 334 | |
Fair Value 12 months or more | 0 | 0 | |
Unrealized Losses 12 months or more | 0 | 0 | |
Total Fair Value | 68,490 | 39,145 | |
Total Unrealized Losses | 1,123 | 334 | |
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 | 354,552 | 189,699 | |
Unrealized Losses Less than 12 months | 7,690 | 1,705 | |
Fair Value 12 months or more | 259,076 | 274,963 | |
Unrealized Losses 12 months or more | 11,104 | 5,623 | |
Total Fair Value | 613,628 | 464,662 | |
Total Unrealized Losses | 18,794 | 7,328 | |
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 | 138,510 | 91,174 | |
Unrealized Losses Less than 12 months | 2,916 | 590 | |
Fair Value 12 months or more | 157,598 | 166,331 | |
Unrealized Losses 12 months or more | 6,768 | 4,326 | |
Total Fair Value | 296,108 | 257,505 | |
Total Unrealized Losses | $ 9,684 | $ 4,916 | |
[1] | As of January 1, 2018, the Corporation adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment securities to other investment securities. |
INVESTMENT SECURITIES - OTTI Lo
INVESTMENT SECURITIES - OTTI Losses on Available-for-Sale Debt Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Schedule Of Available For Sale Securities [Line Items] | |||
Total other-than-temporary impairment losses | $ 0 | $ (12,231) | |
Net impairment losses recognized in earnings | 0 | (12,231) | |
Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Total other-than-temporary impairment losses | 0 | (12,231) | |
Portion of loss previously recognized in other comprehensive income | [1] | 0 | 0 |
Net impairment losses recognized in earnings | [1] | $ 0 | (12,231) |
US States And Political Subdivisions Member [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Net impairment losses recognized in earnings | $ (12,200) | ||
[1] | Credit losses on Puerto Rico government debt securities, recorded in the first quarter of 2017. |
INVESTMENT SECURITIES - Roll-Fo
INVESTMENT SECURITIES - Roll-Forward of Credit Losses on Debt Securities Held by Corporation (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items] | ||
Beginning balance of credit losses on debt securities held for which a portion of an OTTI was recognized in OCI | $ 28,981 | |
Additions: | ||
Credit losses on debt securities for which an OTTI was previously recognized | 12,231 | |
Reductions: | ||
Ending balance of credit losses on debt securities held for which a portion of an OTTI was recognized in OCI | 41,212 | |
Mortgage Backed Securities Issued By Private Enterprises [Member] | ||
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items] | ||
Beginning balance of credit losses on debt securities held for which a portion of an OTTI was recognized in OCI | $ 6,792 | 6,792 |
Additions: | ||
Credit losses on debt securities for which an OTTI was previously recognized | 0 | 0 |
Reductions: | ||
Ending balance of credit losses on debt securities held for which a portion of an OTTI was recognized in OCI | 6,792 | 6,792 |
US States And Political Subdivisions Member [Member] | ||
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items] | ||
Beginning balance of credit losses on debt securities held for which a portion of an OTTI was recognized in OCI | 22,189 | |
Additions: | ||
Credit losses on debt securities for which an OTTI was previously recognized | 12,231 | |
Reductions: | ||
Ending balance of credit losses on debt securities held for which a portion of an OTTI was recognized in OCI | $ 34,400 | $ 34,420 |
INVESTMENT SECURITIES - Signifi
INVESTMENT SECURITIES - Significant Assumptions in Valuation of Private Label MBS (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Investments [Line Items] | ||
Fair Value Inputs Discount Rate | 14.50% | 14.00% |
Fair Value Inputs Prepayment Rate | 15.20% | 16.40% |
Weighted Average, Projected Cumulative Loss Rate | 4.00% | 3.00% |
Minimum [Member] | ||
Schedule Of Investments [Line Items] | ||
Fair Value Inputs Discount Rate | 12.88% | |
Fair Value Inputs Prepayment Rate | 7.50% | 12.00% |
Weighted Average, Projected Cumulative Loss Rate | 0.00% | 0.00% |
Maximum [Member] | ||
Schedule Of Investments [Line Items] | ||
Fair Value Inputs Discount Rate | 14.43% | |
Fair Value Inputs Prepayment Rate | 24.50% | 29.00% |
Weighted Average, Projected Cumulative Loss Rate | 9.00% | 6.80% |
INVESTMENT SECURITIES - Inves70
INVESTMENT SECURITIES - Investment Securities Held to Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule Of Held To Maturity Securities [Line Items] | ||
Held To Maturity Securities | $ 150,627 | |
Held To Maturity Securities Fair Value | $ 134,856 | 131,032 |
US States And Political Subdivisions Member [Member] | P R | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held To Maturity Securities | 150,486 | 150,627 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 0 | 0 |
Held To Maturity Securities Accumulated Unrecognized Holding Loss | 15,630 | 19,595 |
Held To Maturity Securities Fair Value | $ 134,856 | $ 131,032 |
Held To Maturity Securities Debt Maturities Average Yield | 5.25% | 5.03% |
US States And Political Subdivisions Member [Member] | After One To Five Years [Member] | P R | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held To Maturity Securities | $ 3,712 | $ 3,853 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 0 | 0 |
Held To Maturity Securities Accumulated Unrecognized Holding Loss | 161 | 173 |
Held To Maturity Securities Fair Value | $ 3,551 | $ 3,680 |
Held To Maturity Securities Debt Maturities Average Yield | 5.39% | 5.38% |
US States And Political Subdivisions Member [Member] | After Five To Ten Years [Member] | P R | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held To Maturity Securities | $ 39,523 | $ 39,523 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 0 | 0 |
Held To Maturity Securities Accumulated Unrecognized Holding Loss | 2,703 | 3,048 |
Held To Maturity Securities Fair Value | $ 36,820 | $ 36,475 |
Held To Maturity Securities Debt Maturities Average Yield | 5.35% | 5.28% |
US States And Political Subdivisions Member [Member] | After Ten Years [Member] | P R | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held To Maturity Securities | $ 107,251 | $ 107,251 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 0 | 0 |
Held To Maturity Securities Accumulated Unrecognized Holding Loss | 12,766 | 16,374 |
Held To Maturity Securities Fair Value | $ 94,485 | $ 90,877 |
Held To Maturity Securities Debt Maturities Average Yield | 5.21% | 4.93% |
INVESTMENT SECURITIES - Inves71
INVESTMENT SECURITIES - Investment Securities Held to Maturity (Securities in continuous unrealized loss position) (Detail) - US States And Political Subdivisions Member [Member] - P R - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule Of Held To Maturity Securities [Line Items] | ||
Held to maturity less than twelve months fair value | $ 0 | $ 0 |
Held to maturity less than twelve months unrealized losses | 0 | 0 |
Held to maturity securities twelve months or longer fair value | 134,856 | 131,032 |
Held to maturity securities twelve month or longer unrealized losses | 15,630 | 19,595 |
Held to maturity unrealized loss position fair value | 134,856 | 131,032 |
Held to maturity unrealized loss position aggregate losses | $ 15,630 | $ 19,595 |
OTHER EQUITY SECURITIES - Addit
OTHER EQUITY SECURITIES - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Schedule Of Other Assets [Line Items] | |||
Capital stock par value | $ 100 | ||
Book value of investment in FHLB stock | $ 40,900 | $ 40,900 | |
Dividend income from FHLB stock | 700 | $ 500 | |
Carrying value of other equity security | 2,200 | $ 2,200 | |
Other Equity Securities Fair Value | 400 | ||
Market to Market loss on equity securities reclassified as per ASU201601 | $ 7 |
LOAN PORTFOLIO - Loan Portfolio
LOAN PORTFOLIO - Loan Portfolio Held for Investment (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Financial Information [Line Items] | ||||
Loans held for investment | $ 8,695,890 | [1] | $ 8,850,476 | $ 8,822,349 |
Less: allowance for loan and lease losses | (225,856) | (231,843) | ||
Loans held for investment, net | 8,470,034 | 8,618,633 | ||
Construction Loans [Member] | ||||
Financial Information [Line Items] | ||||
Loans held for investment | 79,150 | [2] | 111,397 | |
Residential Mortgage [Member] | ||||
Financial Information [Line Items] | ||||
Loans held for investment | 3,267,868 | 3,290,957 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Financial Information [Line Items] | ||||
Loans held for investment | 1,552,503 | [2] | 1,614,972 | |
Commercial Portfolio Segment [Member] | ||||
Financial Information [Line Items] | ||||
Loans held for investment | 3,693,426 | 3,809,622 | ||
Commercial And Industrial Sector [Member] | ||||
Financial Information [Line Items] | ||||
Loans held for investment | 2,061,773 | [1] | 2,083,253 | |
Other Consumer Loans [Member] | ||||
Financial Information [Line Items] | ||||
Loans held for investment | 1,471,733 | 1,492,435 | ||
Finance Leases [Member] | ||||
Financial Information [Line Items] | ||||
Loans held for investment | $ 262,863 | $ 257,462 | ||
[1] | As of March 31, 2018 and December 31, 2017, includes $823.2 million and $833.5 million, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. | |||
[2] | During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). |
LOAN PORTFOLIO - Loan Portfol74
LOAN PORTFOLIO - Loan Portfolio Held for Investment (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Financial Information [Line Items] | ||
Commercian Loans Collaterized By Real Estate | $ 823.2 | $ 833.5 |
LOAN PORTFOLIO - Loans Held for
LOAN PORTFOLIO - Loans Held for Investment on Which Accrual of Interest Income had been Discontinued (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | ||
Non-performing loans: | ||||
Total non-performing loans held for investment | [1],[2],[3] | $ 411,977 | $ 489,554 | |
Residential Mortgage [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 171,380 | 178,291 | ||
Commercial Mortgage [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 115,179 | [4] | 156,493 | |
Commercial And Industrial [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 85,325 | 85,839 | ||
Consumer Auto Loans [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 13,453 | 10,211 | ||
Finance Leases [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 1,801 | 1,237 | ||
Consumer Retail Banking [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 8,603 | 5,370 | ||
Residential Construction [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 1,287 | 1,987 | ||
Commercial Construction [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | 0 | [4] | 35,100 | |
Land Construction [Member] | ||||
Non-performing loans: | ||||
Total non-performing loans held for investment | $ 14,949 | $ 15,026 | ||
[1] | Amount excludes purchased-credit impaired ("PCI") loans with a carrying value of approximately $155.3 million and $158.2 million as of March 31, 2018 and December 31, 2017, 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] | Excludes $64.9 million and $8.3 million of non-performing loans held for sale as of March 31, 2018 and December 31, 2017, respectively. | |||
[3] | Non-performing loans exclude $366.4 million and $374.7 million of Troubled Debt Restructuring ("TDR") loans that are in compliance with the modified terms and in accrual status as of March 31, 2018 and December 31, 2017, respectively. | |||
[4] | During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). |
LOAN PORTFOLIO - Loans Held f76
LOAN PORTFOLIO - Loans Held for Investment on Which Accrual of Interest Income had been Discontinued (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans held for sale | [1] | $ 91,375 | $ 32,980 |
Credit Impaired Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Purchased credit impaired loans, fair value | $ 155,300 | $ 158,200 | |
[1] | During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). |
LOAN PORTFOLIO - Corporation's
LOAN PORTFOLIO - Corporation's Aging of Loans Held for Investment Portfolio (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | ||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | $ 738,986 | $ 848,763 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 155,281 | 158,174 | $ 163,100 | $ 165,818 | ||
Financing Receivable, Current | 7,801,623 | 7,843,539 | ||||
Loans held for investment | 8,695,890 | [1] | 8,850,476 | $ 8,822,349 | ||
90 days past due and still accruing | 132,786 | 131,420 | [2],[3],[4] | |||
Financing Receivables 60 To 89 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 129,104 | 139,933 | ||||
Financing Receivables 30 To 59 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 65,119 | 87,856 | ||||
Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 544,763 | [5] | 620,974 | [6] | ||
Fha Va And Other Government Guaranteed Loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 111,358 | [7],[8] | 109,607 | [2],[3],[4] | ||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | [7],[8] | 0 | [2],[3],[4] | ||
Financing Receivable, Current | 35,927 | [7],[8] | 29,332 | [2],[3],[4] | ||
Loans held for investment | 147,285 | [7],[8] | 138,939 | [2],[3],[4] | ||
90 days past due and still accruing | 107,693 | [7],[8] | 102,815 | [2],[3],[4] | ||
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 | 3,665 | [7],[8] | 6,792 | [2],[3],[4] | ||
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 | [7],[8] | 0 | [2],[3],[4] | ||
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 | 107,693 | [5],[7],[8] | 102,815 | [2],[3],[4],[6] | ||
Residential Mortgage [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 151,067 | [7] | 153,991 | [2] | ||
Loans held for investment | 3,267,868 | 3,290,957 | ||||
Commercial And Industrial [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 101,651 | 97,703 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | 0 | ||||
Financing Receivable, Current | 1,960,122 | 1,985,550 | ||||
Loans held for investment | 2,061,773 | 2,083,253 | ||||
90 days past due and still accruing | 770 | 2,317 | [4] | |||
Commercial And Industrial [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 2,419 | 576 | ||||
Commercial And Industrial [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 13,137 | 8,971 | ||||
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 | 86,095 | [5] | 88,156 | [6] | ||
Commercial Mortgage Loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 168,963 | [7] | 170,705 | [2] | ||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 4,214 | [7] | 4,183 | [2] | ||
Financing Receivable, Current | 1,379,326 | [7] | 1,440,084 | [2] | ||
Loans held for investment | 1,552,503 | [7] | 1,614,972 | [2] | ||
90 days past due and still accruing | 3,977 | [7] | 6,687 | [2],[3],[4] | ||
Commercial Mortgage Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 49,807 | [7] | 7,525 | [2] | ||
Commercial Mortgage Loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 0 | [7] | 0 | [2] | ||
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 | 119,156 | [5],[7] | 163,180 | [2],[6] | ||
Construction Loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 79,150 | [9] | 111,397 | |||
Auto loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 53,782 | 91,554 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | 0 | ||||
Financing Receivable, Current | 784,711 | 752,777 | ||||
Loans held for investment | 838,493 | 844,331 | ||||
90 days past due and still accruing | 0 | 0 | [4] | |||
Auto loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 7,891 | 23,783 | ||||
Auto loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 32,438 | 57,560 | ||||
Auto loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 13,453 | [5] | 10,211 | [6] | ||
Finance Leases [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 9,860 | 15,270 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | 0 | ||||
Financing Receivable, Current | 253,003 | 242,192 | ||||
Loans held for investment | 262,863 | 257,462 | ||||
90 days past due and still accruing | 0 | 0 | [4] | |||
Finance Leases [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 2,216 | 3,484 | ||||
Finance Leases [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 5,843 | 10,549 | ||||
Finance Leases [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 1,801 | [5] | 1,237 | [6] | ||
Consumer Loan [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 28,712 | 25,189 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | 0 | ||||
Financing Receivable, Current | 604,528 | 622,915 | ||||
Loans held for investment | 633,240 | 648,104 | ||||
90 days past due and still accruing | 1,831 | 3,991 | [4] | |||
Consumer Loan [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 4,577 | 5,052 | ||||
Consumer Loan [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 13,701 | 10,776 | ||||
Consumer Loan [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 10,434 | [5] | 9,361 | [6] | ||
Commercial Construction [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 1,012 | 35,100 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | 0 | ||||
Financing Receivable, Current | 45,227 | 41,456 | ||||
Loans held for investment | 46,239 | 76,556 | ||||
90 days past due and still accruing | 0 | 0 | [4] | |||
Commercial Construction [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 1,012 | 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 Equal To Greater Than 90 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 0 | [5] | 35,100 | [6] | ||
Residential Construction [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 2,488 | [7] | 2,082 | [2] | ||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | [7] | 0 | [2] | ||
Financing Receivable, Current | 3,973 | [7] | 5,828 | [2] | ||
Loans held for investment | 6,461 | [7] | 7,910 | [2] | ||
90 days past due and still accruing | 1,201 | [7] | 0 | [2],[4] | ||
Residential Construction [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 0 | [7] | 95 | [2] | ||
Residential Construction [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 0 | [7] | 0 | [2] | ||
Residential Construction [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 2,488 | [5],[7] | 1,987 | [2],[6] | ||
Land Construction [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 17,120 | [7] | 15,301 | [2] | ||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | [7] | 0 | [2] | ||
Financing Receivable, Current | 9,330 | [7] | 11,630 | [2] | ||
Loans held for investment | 26,450 | [7] | 26,931 | [2] | ||
90 days past due and still accruing | 2,159 | [7] | 151 | [2],[3],[4] | ||
Land Construction [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 12 | [7] | 124 | [2] | ||
Land Construction [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 0 | [7] | 0 | [2] | ||
Land Construction [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 17,108 | [5],[7] | 15,177 | [2],[6] | ||
Other Residential Mortgage Loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 244,040 | [7] | 286,252 | [2] | ||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 151,067 | [7] | 153,991 | [2] | ||
Financing Receivable, Current | 2,725,476 | [7] | 2,711,775 | [2] | ||
Loans held for investment | 3,120,583 | [7] | 3,152,018 | [2] | ||
90 days past due and still accruing | 15,155 | [7] | 15,459 | [2] | ||
Other Residential Mortgage Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total Past Due | 57,505 | [7] | 92,502 | [2] | ||
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 | [7] | 0 | [2] | ||
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 | $ 186,535 | [5],[7] | $ 193,750 | [2],[6] | ||
[1] | As of March 31, 2018 and December 31, 2017, includes $823.2 million and $833.5 million, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. | |||||
[2] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA and other government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, and land loans past due 30-59 days as of December 31, 2017 amounted to $6.0 million, $224.0 million, $9.0 million, and $2.5 million, respectively. | |||||
[3] | As of December 31, 2017, includes $62.1 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] | 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 $29.9 million of residential mortgage loans insured by the FHA or guaranteed by the VA that are over 15 months delinquent, and are no longer accruing interest as of December 31, 2017. | |||||
[5] | 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. | |||||
[6] | 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. | |||||
[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 March 31, 2018 amounted to $6.8 million, $122.0 million, $5.2 million, $0.6 million, and $0.2 million respectively. | |||||
[8] | As of March 31, 2018, includes $73.3 million of defaulted loans collateralizing Government National Mortgage Association ("GNMA") securities for which the Corporation has an unconditional option (but not an obligation) to repurchase the defaulted loans. | |||||
[9] | During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). |
LOAN PORTFOLIO - Corporation'78
LOAN PORTFOLIO - Corporation's Aging of Loans Held for Investment Portfolio (Parenthetical) (Detail) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)numberofpayments | Dec. 31, 2017USD ($)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 | $ 73.3 | $ 62.1 |
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 | $ 30.6 | $ 29.9 |
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 | $ 6.8 | $ 6 |
Residential Mortgage [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | 122 | 224 |
Commercial Mortgage Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | 5.2 | 9 |
Residential Construction [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | 0.2 | |
Land Construction [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-59 Days past due Mortgages | $ 0.6 | $ 2.5 |
LOAN PORTFOLIO - Corporation'79
LOAN PORTFOLIO - Corporation's Credit Quality Indicators by Loan (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable Recorded Investment [Line Items] | |||
Commercial mortgage loans | $ 1,552,503 | $ 1,614,972 | |
Commercial and Industrial loans | 2,061,773 | 2,083,253 | |
Land | 26,450 | 26,931 | |
Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 6,461 | 7,910 | |
Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 46,239 | 76,556 | |
Substandard [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Commercial mortgage loans | 269,926 | 257,503 | |
Commercial and Industrial loans | 144,205 | 154,416 | |
Land | 15,971 | 15,971 | |
Substandard [Member] | Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 1,287 | 1,987 | |
Substandard [Member] | Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | 0 | 35,100 | |
Doubtful [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Commercial mortgage loans | 2,117 | 4,166 | |
Commercial and Industrial loans | 7,745 | 3,854 | |
Land | 391 | 490 | |
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 | 729 | 676 | |
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] | 272,043 | 261,669 |
Commercial and Industrial loans | [1] | 152,679 | 158,946 |
Land | [1] | 16,362 | 16,461 |
Total Adversely Classified [Member] | Residential Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | [1] | 1,287 | 1,987 |
Total Adversely Classified [Member] | Commercial Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Construction loans | [1] | $ 0 | $ 35,100 |
[1] | Excludes non-peforming loans held for sale of $64.9 million ($27.2 million commercial mortgage, $30.0 million construction-commercial, and $7.7 million construction-land) and $8.3 million (construction-land) as of March 31, 2018 and December 31, 2017, respectively. |
LOAN PORTFOLIO - Credit Risk Pa
LOAN PORTFOLIO - Credit Risk Payment Activity (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | ||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | $ 8,695,890 | [1] | $ 8,850,476 | $ 8,822,349 | |
Other Residential Mortgage Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 3,120,583 | [2] | 3,152,018 | [3] | |
Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 838,493 | 844,331 | |||
Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 262,863 | 257,462 | |||
Other Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 1,471,733 | 1,492,435 | |||
Residential Real Estate [Member] | Fhava Guaranteed Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 147,285 | [4] | 138,939 | [5] | |
Residential Real Estate [Member] | Other Residential Mortgage Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 3,120,583 | 3,152,018 | |||
Residential Real Estate [Member] | Performing Financing Receivable [Member] | Fhava Guaranteed Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 147,285 | [4] | 138,939 | [5] | |
Residential Real Estate [Member] | Performing Financing Receivable [Member] | Other Residential Mortgage Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 2,798,136 | 2,819,736 | |||
Residential Real Estate [Member] | Purchased Credit Impaired [Member] | Fhava Guaranteed Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 0 | [4],[6] | 0 | [5],[7] | |
Residential Real Estate [Member] | Purchased Credit Impaired [Member] | Other Residential Mortgage Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 151,067 | [6] | 153,991 | [7] | |
Residential Real Estate [Member] | Nonperforming Financing Receivable [Member] | Fhava Guaranteed Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 0 | [4] | 0 | [5] | |
Residential Real Estate [Member] | Nonperforming Financing Receivable [Member] | Other Residential Mortgage Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 171,380 | 178,291 | |||
Consumer [Member] | Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 838,493 | 844,331 | |||
Consumer [Member] | Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 262,863 | 257,462 | |||
Consumer [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 633,240 | 648,104 | |||
Consumer [Member] | Performing Financing Receivable [Member] | Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 825,040 | 834,120 | |||
Consumer [Member] | Performing Financing Receivable [Member] | Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 261,062 | 256,225 | |||
Consumer [Member] | Performing Financing Receivable [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 624,637 | 642,734 | |||
Consumer [Member] | Purchased Credit Impaired [Member] | Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 0 | [6] | 0 | [7] | |
Consumer [Member] | Purchased Credit Impaired [Member] | Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 0 | [6] | 0 | [7] | |
Consumer [Member] | Purchased Credit Impaired [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 0 | [6] | 0 | [7] | |
Consumer [Member] | Nonperforming Financing Receivable [Member] | Auto loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 13,453 | 10,211 | |||
Consumer [Member] | Nonperforming Financing Receivable [Member] | Finance Leases [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | 1,801 | 1,237 | |||
Consumer [Member] | Nonperforming Financing Receivable [Member] | Other Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans And Leases Receivable Gross Carrying Amount | $ 8,603 | $ 5,370 | |||
[1] | As of March 31, 2018 and December 31, 2017, includes $823.2 million and $833.5 million, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. | ||||
[2] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two or more monthly payments. FHA/VA 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 March 31, 2018 amounted to $6.8 million, $122.0 million, $5.2 million, $0.6 million, and $0.2 million respectively. | ||||
[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 on two or more monthly payments. FHA/VA and other government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, and land loans past due 30-59 days as of December 31, 2017 amounted to $6.0 million, $224.0 million, $9.0 million, and $2.5 million, respectively. | ||||
[4] | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as 90 days past-due loans and still accruing as opposed to non-performing loans since the principal repayment is insured. This balance includes $30.6 million of residential mortgage loans insured by the FHA or guaranteed by the VA, which are over 15 months delinquent, and are no longer accruing interest as of March 31, 2018. | ||||
[5] | It is the Corporation's policy to report delinquent residential mortgage loans insured by the FHA or guaranteed by the VA as 90 days past due loans and still accruing as opposed to non-performing loans since the principal repayment is insured. This balance includes $29.9 million of residential mortgage loans insured by the FHA or guaranteed by the VA that are over 15 months delinquent, and are no longer accruing interest as of December 31, 2017. | ||||
[6] | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analyses. | ||||
[7] | PCI loans are excluded from non-performing statistics due to the application of the accretion method, under which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analyses. |
LOAN PORTFOLIO - Credit Risk 81
LOAN PORTFOLIO - Credit Risk Payment Activity (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | ||
Financing Receivable Recorded Investment [Line Items] | |||
Residential mortgage loans insured by FHA or guaranteed by the VA | $ 30,600 | $ 29,900 | |
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 held for sale | [1] | $ 91,375 | $ 32,980 |
[1] | During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). |
LOAN PORTFOLIO - Impaired loans
LOAN PORTFOLIO - Impaired loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | $ 182,993 | $ 213,046 | ||
Unpaid Principal Balance with no Related Allowance | 257,626 | 289,918 | ||
Average Recorded Investment No Related Allowance | 184,265 | 238,454 | ||
Interest Income with no Related Allowance Accrual Basis | 1,082 | |||
Interest Income with No Related Allowance Cash Basis | 235 | |||
Recorded Investment with Related Allowance | 563,287 | 577,262 | ||
Unpaid Principal Balance with Related Allowance | 647,034 | 680,648 | ||
Related Allowance | 56,930 | $ 66,311 | 51,410 | $ 64,421 |
Average Recorded Investment With Related Allowance | 563,726 | 593,701 | ||
Interest Income with Related Allowance Accrual Basis | 5,357 | |||
Interest Income with Realted Allowance Cash Basis | 333 | |||
Recorded Investment | 746,280 | 807,198 | 790,308 | $ 887,905 |
Unpaid Principal Balance | 904,660 | 970,566 | ||
Average Recorded Investments | 747,991 | 832,155 | ||
Interest Income on Impaired Loans Accrual Basis | 6,439 | 6,400 | ||
Interest Income on Impaired Loans Cash Basis | 568 | 500 | ||
Fhava Guaranteed Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 0 | 0 | ||
Unpaid Principal Balance with no Related Allowance | 0 | 0 | ||
Average Recorded Investment No Related Allowance | 0 | 0 | ||
Interest Income with no Related Allowance Accrual Basis | 0 | |||
Interest Income with No Related Allowance Cash Basis | 0 | |||
Recorded Investment with Related Allowance | 0 | 0 | ||
Unpaid Principal Balance with Related Allowance | 0 | 0 | ||
Related Allowance | 0 | 0 | ||
Average Recorded Investment With Related Allowance | 0 | 0 | ||
Interest Income with Related Allowance Accrual Basis | 0 | |||
Interest Income with Realted Allowance Cash Basis | 0 | |||
Recorded Investment | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | ||
Average Recorded Investments | 0 | 0 | ||
Interest Income on Impaired Loans Accrual Basis | 0 | |||
Interest Income on Impaired Loans Cash Basis | 0 | |||
Other Residential Mortgage Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 94,817 | 116,818 | ||
Unpaid Principal Balance with no Related Allowance | 126,672 | 154,048 | ||
Average Recorded Investment No Related Allowance | 95,274 | 120,241 | ||
Interest Income with no Related Allowance Accrual Basis | 723 | |||
Interest Income with No Related Allowance Cash Basis | 170 | |||
Recorded Investment with Related Allowance | 322,793 | 316,616 | ||
Unpaid Principal Balance with Related Allowance | 359,048 | 349,284 | ||
Related Allowance | 22,546 | 22,086 | ||
Average Recorded Investment With Related Allowance | 324,110 | 318,606 | ||
Interest Income with Related Allowance Accrual Basis | 3,654 | |||
Interest Income with Realted Allowance Cash Basis | 231 | |||
Recorded Investment | 417,610 | 433,434 | ||
Unpaid Principal Balance | 485,720 | 503,332 | ||
Average Recorded Investments | 419,384 | 438,847 | ||
Interest Income on Impaired Loans Accrual Basis | 4,377 | |||
Interest Income on Impaired Loans Cash Basis | 401 | |||
Commercial Mortgage Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 60,811 | 65,100 | ||
Unpaid Principal Balance with no Related Allowance | 99,837 | 100,612 | ||
Average Recorded Investment No Related Allowance | 61,445 | 86,563 | ||
Interest Income with no Related Allowance Accrual Basis | 82 | |||
Interest Income with No Related Allowance Cash Basis | 37 | |||
Recorded Investment with Related Allowance | 101,315 | 87,814 | ||
Unpaid Principal Balance with Related Allowance | 117,838 | 124,084 | ||
Related Allowance | 13,451 | 9,783 | ||
Average Recorded Investment With Related Allowance | 102,304 | 93,720 | ||
Interest Income with Related Allowance Accrual Basis | 661 | |||
Interest Income with Realted Allowance Cash Basis | 47 | |||
Recorded Investment | 162,126 | 152,914 | ||
Unpaid Principal Balance | 217,675 | 224,696 | ||
Average Recorded Investments | 163,749 | 180,283 | ||
Interest Income on Impaired Loans Accrual Basis | 743 | |||
Interest Income on Impaired Loans Cash Basis | 84 | |||
Commercial And Industrial Loan [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 24,712 | 28,292 | ||
Unpaid Principal Balance with no Related Allowance | 27,679 | 31,254 | ||
Average Recorded Investment No Related Allowance | 24,825 | 28,567 | ||
Interest Income with no Related Allowance Accrual Basis | 246 | |||
Interest Income with No Related Allowance Cash Basis | 11 | |||
Recorded Investment with Related Allowance | 95,066 | 90,008 | ||
Unpaid Principal Balance with Related Allowance | 117,400 | 112,005 | ||
Related Allowance | 14,375 | 12,359 | ||
Average Recorded Investment With Related Allowance | 92,382 | 92,666 | ||
Interest Income with Related Allowance Accrual Basis | 302 | |||
Interest Income with Realted Allowance Cash Basis | 20 | |||
Recorded Investment | 119,778 | 118,300 | ||
Unpaid Principal Balance | 145,079 | 143,259 | ||
Average Recorded Investments | 117,207 | 121,233 | ||
Interest Income on Impaired Loans Accrual Basis | 548 | |||
Interest Income on Impaired Loans Cash Basis | 31 | |||
Construction Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Related Allowance | 1,484 | 2,835 | ||
Recorded Investment | 12,067 | $ 51,801 | ||
Consumer Auto Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 387 | 267 | ||
Unpaid Principal Balance with no Related Allowance | 387 | 267 | ||
Average Recorded Investment No Related Allowance | 394 | 290 | ||
Interest Income with no Related Allowance Accrual Basis | 2 | |||
Interest Income with No Related Allowance Cash Basis | 0 | |||
Recorded Investment with Related Allowance | 20,424 | 22,338 | ||
Unpaid Principal Balance with Related Allowance | 20,424 | 22,338 | ||
Related Allowance | 3,379 | 3,665 | ||
Average Recorded Investment With Related Allowance | 20,943 | 24,328 | ||
Interest Income with Related Allowance Accrual Basis | 397 | |||
Interest Income with Realted Allowance Cash Basis | 0 | |||
Recorded Investment | 20,811 | 22,605 | ||
Unpaid Principal Balance | 20,811 | 22,605 | ||
Average Recorded Investments | 21,337 | 24,618 | ||
Interest Income on Impaired Loans Accrual Basis | 399 | |||
Interest Income on Impaired Loans Cash Basis | 0 | |||
Finance Leases [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 0 | 0 | ||
Unpaid Principal Balance with no Related Allowance | 0 | 0 | ||
Average Recorded Investment No Related Allowance | 0 | 0 | ||
Interest Income with no Related Allowance Accrual Basis | 0 | |||
Interest Income with No Related Allowance Cash Basis | 0 | |||
Recorded Investment with Related Allowance | 1,876 | 2,184 | ||
Unpaid Principal Balance with Related Allowance | 1,876 | 2,184 | ||
Related Allowance | 84 | 104 | ||
Average Recorded Investment With Related Allowance | 1,958 | 2,428 | ||
Interest Income with Related Allowance Accrual Basis | 35 | |||
Interest Income with Realted Allowance Cash Basis | 0 | |||
Recorded Investment | 1,876 | 2,184 | ||
Unpaid Principal Balance | 1,876 | 2,184 | ||
Average Recorded Investments | 1,958 | 2,428 | ||
Interest Income on Impaired Loans Accrual Basis | 35 | |||
Interest Income on Impaired Loans Cash Basis | 0 | |||
Other Consumer Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 2,266 | 2,521 | ||
Unpaid Principal Balance with no Related Allowance | 3,051 | 3,688 | ||
Average Recorded Investment No Related Allowance | 2,327 | 2,745 | ||
Interest Income with no Related Allowance Accrual Basis | 29 | |||
Interest Income with No Related Allowance Cash Basis | 17 | |||
Recorded Investment with Related Allowance | 9,746 | 11,084 | ||
Unpaid Principal Balance with Related Allowance | 10,092 | 11,830 | ||
Related Allowance | 1,611 | 1,396 | ||
Average Recorded Investment With Related Allowance | 9,913 | 11,579 | ||
Interest Income with Related Allowance Accrual Basis | 283 | |||
Interest Income with Realted Allowance Cash Basis | 27 | |||
Recorded Investment | 12,012 | 13,605 | ||
Unpaid Principal Balance | 13,143 | 15,518 | ||
Average Recorded Investments | 12,240 | 14,324 | ||
Interest Income on Impaired Loans Accrual Basis | 312 | |||
Interest Income on Impaired Loans Cash Basis | 44 | |||
Commercial Construction [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 0 | 0 | ||
Unpaid Principal Balance with no Related Allowance | 0 | 0 | ||
Average Recorded Investment No Related Allowance | 0 | 0 | ||
Interest Income with no Related Allowance Accrual Basis | 0 | |||
Interest Income with No Related Allowance Cash Basis | 0 | |||
Recorded Investment with Related Allowance | 0 | 35,101 | ||
Unpaid Principal Balance with Related Allowance | 0 | 38,595 | ||
Related Allowance | 0 | 560 | ||
Average Recorded Investment With Related Allowance | 0 | 35,996 | ||
Interest Income with Related Allowance Accrual Basis | 0 | |||
Interest Income with Realted Allowance Cash Basis | 0 | |||
Recorded Investment | 0 | 35,101 | ||
Unpaid Principal Balance | 0 | 38,595 | ||
Average Recorded Investments | 0 | 35,996 | ||
Interest Income on Impaired Loans Accrual Basis | 0 | |||
Interest Income on Impaired Loans Cash Basis | 0 | |||
Residential Construction [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 0 | 0 | ||
Unpaid Principal Balance with no Related Allowance | 0 | 0 | ||
Average Recorded Investment No Related Allowance | 0 | 0 | ||
Interest Income with no Related Allowance Accrual Basis | 0 | |||
Interest Income with No Related Allowance Cash Basis | 0 | |||
Recorded Investment with Related Allowance | 252 | 252 | ||
Unpaid Principal Balance with Related Allowance | 355 | 355 | ||
Related Allowance | 52 | 55 | ||
Average Recorded Investment With Related Allowance | 252 | 252 | ||
Interest Income with Related Allowance Accrual Basis | 0 | |||
Interest Income with Realted Allowance Cash Basis | 0 | |||
Recorded Investment | 252 | 252 | ||
Unpaid Principal Balance | 355 | 355 | ||
Average Recorded Investments | 252 | 252 | ||
Interest Income on Impaired Loans Accrual Basis | 0 | |||
Interest Income on Impaired Loans Cash Basis | 0 | |||
Land Construction [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Recorded Investment with no Related Allowance | 0 | 48 | ||
Unpaid Principal Balance with no Related Allowance | 0 | 49 | ||
Average Recorded Investment No Related Allowance | 0 | 48 | ||
Interest Income with no Related Allowance Accrual Basis | 0 | |||
Interest Income with No Related Allowance Cash Basis | 0 | |||
Recorded Investment with Related Allowance | 11,815 | 11,865 | ||
Unpaid Principal Balance with Related Allowance | 20,001 | 19,973 | ||
Related Allowance | 1,432 | 1,402 | ||
Average Recorded Investment With Related Allowance | 11,864 | 14,126 | ||
Interest Income with Related Allowance Accrual Basis | 25 | |||
Interest Income with Realted Allowance Cash Basis | 8 | |||
Recorded Investment | 11,815 | 11,913 | ||
Unpaid Principal Balance | 20,001 | 20,022 | ||
Average Recorded Investments | 11,864 | $ 14,174 | ||
Interest Income on Impaired Loans Accrual Basis | 25 | |||
Interest Income on Impaired Loans Cash Basis | $ 8 |
LOAN PORTFOLIO - Additional Inf
LOAN PORTFOLIO - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||||||||
Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2015 | |||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Interest Income Impaired Loans | $ 6,900 | |||||||||
Interest Income on Impaired Loans Accrual Basis | $ 6,439 | 6,400 | ||||||||
Contractually outstanding principal and interest at acquisition | 192,000 | $ 196,600 | ||||||||
Financing Receivable Significant Purchases | 14,500 | |||||||||
Securitization of mortgage loans into mortgage backed securities | 54,400 | |||||||||
Total gross loans held for investment portfolio | 8,695,890 | [1] | 8,822,349 | 8,850,476 | ||||||
Total TDR loans | 572,376 | [2] | 602,364 | 587,219 | $ 647,048 | |||||
Outstanding unfunded commitments on TDR loans | 1,900 | |||||||||
Provsion of PCI Loans | 0 | 0 | ||||||||
Loans held for sale | [3] | 91,375 | 32,980 | |||||||
Proceeds From Sale Of Loans Held For Investment | 13,274 | 53,245 | ||||||||
Government Guaranteed Residential Mortgage Loans Indirect Exposure | 115,900 | |||||||||
Puerto Rico Housing Finance Authority Restricted Net Position | $ 77,400 | |||||||||
Threshold Mortgage Loans Principal Amount Puerto Rico Housing Financing Authority | 75,000 | $ 552,000 | ||||||||
Interest Paid | 24,353 | 22,001 | ||||||||
Financing Receivable Allowance For Credit Losses Write Offs Impaired Loans | 17,213 | [4] | 17,404 | [5] | ||||||
Impaired Financing Receivable Related Allowance | 56,930 | 66,311 | 51,410 | $ 64,421 | ||||||
Mortgage Loans In Process Of Foreclosure Amount | 152,300 | |||||||||
Provision For Loan Lease And Other Losses | 20,544 | 25,442 | ||||||||
Financing Receivable Allowance For Credit Losses Write Offs | 29,360 | 32,894 | ||||||||
Proceeds From Principal Repayments On Loans And Leases Held For Investment | 590,753 | 669,615 | ||||||||
Charge Offs Taken On Previosuly Established Reserve | 4,100 | |||||||||
Puerto Rico Tourism Development Fund [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Outstanding of credit facilities granted | 116,200 | 120,200 | ||||||||
Financing Receivable Commercial Governments Book Value | 61,600 | 70,800 | ||||||||
Proceeds From Principal Repayments On Loans And Leases Held For Investment | 4,000 | $ 7,600 | ||||||||
Puerto Rico Electric PowerAuthority [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Classified and non-performing loans sold | 64,000 | |||||||||
Reserves allocated to bulk sale | 10,200 | |||||||||
Incremental losses | 600 | |||||||||
Allowance For Loan And Lease Losses Write Offs Net Loans Sold | 10,700 | |||||||||
Proceeds From Sale Of NonPerforming Assets Sold | 53,200 | |||||||||
Classified an non performing loan sold | 75,000 | |||||||||
GNMA | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Loans repurchased | 1,100 | 10,700 | ||||||||
FNMA and FHLMC | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Financing Receivable Significant Sales | 20,100 | |||||||||
Loans repurchased | 3 | 6 | ||||||||
Residential Mortgage [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Total gross loans held for investment portfolio | 3,267,868 | 3,272,598 | ||||||||
Impaired Financing Receivable Related Allowance | 22,546 | 8,551 | ||||||||
Provision For Loan Lease And Other Losses | 447 | 9,271 | ||||||||
Financing Receivable Allowance For Credit Losses Write Offs | 3,371 | 8,225 | ||||||||
Government Guaranteed Loans [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Total TDR loans | 62,100 | 62,100 | ||||||||
Mortgage Loans In Process Of Foreclosure Amount | 22,700 | |||||||||
Loans in trial [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Total TDR loans | 500 | |||||||||
Non Accrual [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Total TDR loans | 205,954 | [6],[7] | 212,524 | [8] | ||||||
Loans held for sale | 64,900 | 8,300 | ||||||||
Troubled Debt Restructurings [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Loans held for sale | 30,000 | |||||||||
Loans Split [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Total TDR loans | 35,553 | 36,564 | ||||||||
Financing receivable loans restructured recorded investment accruals | 3,100 | |||||||||
Non Fha Va Residential Mortgage Loans [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Total TDR loans | 349,980 | 363,930 | ||||||||
Commercial And Industrial Loan [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Interest Income on Impaired Loans Accrual Basis | 548 | |||||||||
Total TDR loans | 96,265 | 94,112 | ||||||||
Impaired Financing Receivable Related Allowance | 14,375 | 12,359 | ||||||||
Commercial Mortgage Loans [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Interest Income on Impaired Loans Accrual Basis | 743 | |||||||||
Total TDR loans | 85,834 | 50,812 | ||||||||
Charge-offs of loans transferred to loans held for sale | 4,600 | |||||||||
Book value of loans transferred to held for sale | 27,200 | |||||||||
Impaired Financing Receivable Related Allowance | 13,451 | 9,783 | ||||||||
Commercial Mortgage Loans [Member] | Non Accrual [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Loans held for sale | 27,200 | |||||||||
Commercial Mortgage Loans [Member] | Puerto Rico Tourism Development Fund [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Book value of loans transferred to held for sale | 27,200 | |||||||||
Outstanding Balance Of Loans Transferred To Held For Sale | 50,400 | |||||||||
Construction Loans [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Total gross loans held for investment portfolio | 79,150 | 137,887 | ||||||||
Total TDR loans | 6,600 | |||||||||
Charge-offs of loans transferred to loans held for sale | 5,100 | |||||||||
Book value of loans transferred to held for sale | 30,000 | |||||||||
Impaired Financing Receivable Related Allowance | 1,484 | 2,835 | ||||||||
Provision For Loan Lease And Other Losses | 4,764 | 942 | ||||||||
Financing Receivable Allowance For Credit Losses Write Offs | 5,177 | 63 | ||||||||
Consumer Loan [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Total gross loans held for investment portfolio | 1,734,596 | 1,707,156 | ||||||||
Total TDR loans | 33,700 | |||||||||
Impaired Financing Receivable Related Allowance | 5,074 | 5,576 | ||||||||
Provision For Loan Lease And Other Losses | 6,016 | 7,496 | ||||||||
Financing Receivable Allowance For Credit Losses Write Offs | 12,072 | $ 11,192 | ||||||||
Commercial Construction [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Interest Income on Impaired Loans Accrual Basis | 0 | |||||||||
Total TDR loans | 0 | [2] | 35,100 | |||||||
Impaired Financing Receivable Related Allowance | 0 | 560 | ||||||||
Commercial Construction [Member] | Non Accrual [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Loans held for sale | 30,000 | |||||||||
Residential Construction [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Interest Income on Impaired Loans Accrual Basis | 0 | |||||||||
Total TDR loans | 217 | 217 | ||||||||
Impaired Financing Receivable Related Allowance | 52 | 55 | ||||||||
Land Construction [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Interest Income on Impaired Loans Accrual Basis | 25 | |||||||||
Total TDR loans | 6,378 | 6,476 | ||||||||
Impaired Financing Receivable Related Allowance | 1,432 | 1,402 | ||||||||
Land Construction [Member] | Non Accrual [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Loans held for sale | 7,700 | 8,300 | ||||||||
Loans Tranferred To Held For Sale [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Charge-offs of loans transferred to loans held for sale | 9,700 | |||||||||
Additional losses loans transferred to loans held for sale | 5,600 | |||||||||
Book value of loans transferred to held for sale | $ 57,200 | |||||||||
P R | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Credit risk concentration | 75.00% | |||||||||
Outstanding of credit facilities granted | $ 54,800 | 55,900 | ||||||||
P R | Puerto Rico Government and Political Subdivisions [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Outstanding of credit facilities granted | 33,100 | |||||||||
P R | Public Corporations [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Outstanding of credit facilities granted | 15,000 | |||||||||
P R | Government [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Outstanding of credit facilities granted | 6,700 | |||||||||
P R | Commercial And Industrial Loan [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Charge-offs of loans sold | 1,300 | |||||||||
Classified an non performing loan sold | $ 5,600 | |||||||||
V I | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Credit risk concentration | 6.00% | |||||||||
Outstanding of credit facilities granted | $ 76,700 | 70,400 | ||||||||
V I | Public Corporations [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Outstanding of credit facilities granted | 53,500 | |||||||||
V I | Government [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Outstanding of credit facilities granted | $ 23,200 | |||||||||
U S | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Credit risk concentration | 19.00% | |||||||||
U S | Commercial And Industrial Loan [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Proceeds From Sale Of Loans Held For Investment | $ 9,200 | |||||||||
Credit Impaired Loans [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Purchased credit impaired loans, fair value | 155,300 | 158,200 | ||||||||
Mortgage Loans In Process Of Foreclosure Amount | 18,200 | |||||||||
Credit Impaired Loans [Member] | Residential Mortgage [Member] | ||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||
Financing Receivable Recorded Investment 30 To 59 Days Past Due Mortgage | $ 13,500 | $ 28,100 | ||||||||
[1] | As of March 31, 2018 and December 31, 2017, includes $823.2 million and $833.5 million, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. | |||||||||
[2] | Excludes TDRs held for sale amounting to $30.0 million as of March 31, 2018. | |||||||||
[3] | During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). | |||||||||
[4] | The first quarter of 2018 includes charge-offs totaling $9.7 million associated with the $57.2 million in non-performing loans transferred to held for sale. | |||||||||
[5] | The first quarter of 2017 includes a charge-off of $10.7 million related to the sale of the PREPA credit line as further discussed below. | |||||||||
[6] | Excludes a $30.0 million non-performing construction loans transferred to held for sale during the first quarter of 2018. | |||||||||
[7] | Included in non-accrual loans are $53.2 million in loans that are performing under the terms of the restructuring agreement but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance under the revised terms for reinstatement to accrual status and are deemed fully collectible. | |||||||||
[8] | Included in non-accrual loans are $88.6 million in loans that are performing under the terms of the restructuring agreement but are reported in non-accrual status until the restructured loans meet the criteria of sustained payment performance under the revised terms for reinstatement to accrual status and are deemed fully collectible. |
LOAN PORTFOLIO - Activity for I
LOAN PORTFOLIO - Activity for Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Impaired Loans: | ||||
Balance at beginning of period | $ 790,308 | $ 887,905 | ||
Loans determined impaired during the period | 61,408 | 19,628 | ||
Charge-offs | (17,213) | [1] | (17,404) | [2] |
Loans sold, net charge-offs | (4,121) | (53,245) | ||
Increases to impaired loans (disbursements) | 6,998 | 541 | ||
Foreclosures | (11,675) | (9,457) | ||
Loans no longer considered impaired | (1,507) | (892) | ||
Paid in full or partial payments | (20,705) | (19,878) | ||
Transfer Of Impaired Loans Held For Sale To Portfolio Loans | (57,213,000) | 0 | ||
Balance at end of period | $ 746,280 | $ 807,198 | ||
[1] | The first quarter of 2018 includes charge-offs totaling $9.7 million associated with the $57.2 million in non-performing loans transferred to held for sale. | |||
[2] | The first quarter of 2017 includes a charge-off of $10.7 million related to the sale of the PREPA credit line as further discussed below. |
LOAN PORTFOLIO - Activity for S
LOAN PORTFOLIO - Activity for Specific Reserve (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Specific Reserve: | ||
Balance at beginning of period | $ 51,410 | $ 64,421 |
Provision for loan losses | 22,703 | 18,862 |
Financing Receivable Allowance For Credit Losses Net Write Offs Impaired Loans | (17,183) | (16,972) |
Balance at end of period | $ 56,930 | $ 66,311 |
LOAN PORTFOLIO- Carrying Value
LOAN PORTFOLIO- Carrying Value of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | ||
Financing Receivable Impaired [Line Items] | ||||||
Purchased Credit Impaired Loans | $ 155,281 | $ 158,174 | $ 163,100 | $ 165,818 | ||
Allowance for loan losses Purchased Credit Impaired | (11,251) | (11,251) | (6,857) | $ (6,857) | ||
Purchased Credit Impaired Loans, Net | 144,030 | 146,923 | $ 156,243 | |||
Residential Mortgage Loans [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Purchased Credit Impaired Loans | 151,067 | [1] | 153,991 | [2] | ||
Commercial Mortgage Loans [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Purchased Credit Impaired Loans | $ 4,214 | [1] | $ 4,183 | [2] | ||
[1] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears two or more monthly payments. FHA/VA 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 March 31, 2018 amounted to $6.8 million, $122.0 million, $5.2 million, $0.6 million, and $0.2 million respectively. | |||||
[2] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA and other government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, and land loans past due 30-59 days as of December 31, 2017 amounted to $6.0 million, $224.0 million, $9.0 million, and $2.5 million, respectively. |
LOAN PORTFOLIO- Corporation's A
LOAN PORTFOLIO- Corporation's Aging of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | ||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | $ 738,986 | $ 848,763 | |||
Financing Receivable, Current | 7,801,623 | 7,843,539 | |||
Loans held for investment | 8,695,890 | [1] | 8,850,476 | $ 8,822,349 | |
90 days past due and still accruing | 132,786 | 131,420 | [2],[3],[4] | ||
Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 129,104 | 139,933 | |||
Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 65,119 | 87,856 | |||
Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 544,763 | [5] | 620,974 | [6] | |
Purchased Credit Impaired Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 38,550 | 46,260 | |||
Financing Receivable, Current | 116,731 | 111,914 | |||
Loans held for investment | 155,281 | 158,174 | |||
Purchased Credit Impaired Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 8,291 | 16,955 | |||
Purchased Credit Impaired Loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | 0 | |||
Purchased Credit Impaired Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 30,259 | 29,305 | |||
Residential Mortgage [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for investment | 3,267,868 | 3,290,957 | |||
30-59 Days past due Mortgages | 122,000 | 224,000 | |||
Residential Mortgage [Member] | Purchased Credit Impaired Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 35,316 | [7] | 43,071 | [8] | |
Financing Receivable, Current | 115,751 | [7] | 110,920 | [8] | |
Loans held for investment | 151,067 | [7] | 153,991 | [8] | |
Residential Mortgage [Member] | Purchased Credit Impaired Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 8,291 | [7] | 16,600 | [8] | |
Residential Mortgage [Member] | Purchased Credit Impaired Loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | [7] | 0 | [8] | |
Residential Mortgage [Member] | Purchased Credit Impaired Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 27,025 | [7] | 26,471 | [8] | |
Commercial Mortgage Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 168,963 | [9] | 170,705 | [2] | |
Financing Receivable, Current | 1,379,326 | [9] | 1,440,084 | [2] | |
Loans held for investment | 1,552,503 | [9] | 1,614,972 | [2] | |
90 days past due and still accruing | 3,977 | [9] | 6,687 | [2],[3],[4] | |
30-59 Days past due Mortgages | 5,200 | 9,000 | |||
Commercial Mortgage Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 49,807 | [9] | 7,525 | [2] | |
Commercial Mortgage Loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | [9] | 0 | [2] | |
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 | 119,156 | [5],[9] | 163,180 | [2],[6] | |
Commercial Mortgage Loans [Member] | Purchased Credit Impaired Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 3,234 | [7] | 3,189 | [8] | |
Financing Receivable, Current | 980 | [7] | 994 | [8] | |
Loans held for investment | 4,214 | [7] | 4,183 | [8] | |
30-59 Days past due Mortgages | 200 | 200 | |||
Commercial Mortgage Loans [Member] | Purchased Credit Impaired Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | [7] | 355 | [8] | |
Commercial Mortgage Loans [Member] | Purchased Credit Impaired Loans [Member] | Financing Receivables 30 To 59 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | 0 | [7] | 0 | [8] | |
Commercial Mortgage Loans [Member] | Purchased Credit Impaired Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total Past Due | $ 3,234 | [7] | $ 2,834 | [8] | |
[1] | As of March 31, 2018 and December 31, 2017, includes $823.2 million and $833.5 million, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. | ||||
[2] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA and other government-guaranteed loans, other residential mortgage loans, commercial mortgage loans, and land loans past due 30-59 days as of December 31, 2017 amounted to $6.0 million, $224.0 million, $9.0 million, and $2.5 million, respectively. | ||||
[3] | As of December 31, 2017, includes $62.1 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] | 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 $29.9 million of residential mortgage loans insured by the FHA or guaranteed by the VA that are over 15 months delinquent, and are no longer accruing interest as of December 31, 2017. | ||||
[5] | 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. | ||||
[6] | 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. | ||||
[7] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage and commercial mortgage loans are considered past due when the borrower is in arrears two or more monthly payments. PCI residential mortgage loans and commercial mortgage loans past due 30-59 days as of March 31, 2018 amounted to $13.5 million and $0.2 million, respectively. | ||||
[8] | According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage and commercial mortgage loans are considered past due when the borrower is in arrears two or more monthly payments. PCI residential mortgage loans and commercial mortgage loans past due 30-59 days as of December 31, 2017 amounted to $28.1 million and $0.2 million, respectively | ||||
[9] | 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 March 31, 2018 amounted to $6.8 million, $122.0 million, $5.2 million, $0.6 million, and $0.2 million respectively. |
LOAN PORTFOLIO - Accretable Yie
LOAN PORTFOLIO - Accretable Yield Related to Purchased Credit Impaired Loans (Detail) - Class Of Loans [Domain] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accretable Yield [Line Items] | ||
Accretable yield at acquisition | $ 103,682 | $ 116,462 |
Accretion recognized in earnings | (2,623) | (2,797) |
Accretable yield at the end of the period | $ 101,059 | $ 113,665 |
LOAN PORTFOLIO -Changes in Carr
LOAN PORTFOLIO -Changes in Carrying Amount Of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable Impaired [Line Items] | ||||
Beggining balance: purchased credit-impaired loans | $ 158,174 | $ 165,818 | ||
Accretion | 2,623 | 2,797 | ||
Purchased Credit Impaired Loans Foreclosures | (2,120) | (922) | ||
Sop Collections | (3,396) | (4,593) | ||
Ending balance: purchased credit-impaired loans | 155,281 | 163,100 | ||
Allowance for loan losses Purchased Credit Impaired | (11,251) | (6,857) | $ (11,251) | $ (6,857) |
Ending balance: purchased credit-impaired loans, net | $ 144,030 | $ 156,243 |
LOAN PORTFOLIO -Changes in the
LOAN PORTFOLIO -Changes in the allowance for loan losses related to purchased credit impaired doans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Abstract] | ||
Allowance for loan losses Purchased Credit Impaired | $ 11,251 | $ 6,857 |
Provsion of PCI Loans | 0 | 0 |
Allowance for loan losses Purchased Credit Impaired | $ 11,251 | $ 6,857 |
LOAN PORTFOLIO - Selected Infor
LOAN PORTFOLIO - Selected Information on TDRs Includes Recorded Investment by Loan Class and Modification Type (Detail) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | ||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 572,376,000 | [1] | $ 587,219,000 | $ 602,364,000 | $ 647,048,000 | |
Interest Rate Below Market [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 34,374,000 | [1] | 35,947,000 | |||
Maturity of Term Extension [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 72,321,000 | [1] | 38,683,000 | |||
Combination of reduction in interest rate and extension of maturity [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 325,332,000 | [1] | 340,753,000 | |||
Forgiveness of principal and/or interest [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 166,000 | [1] | 35,317,000 | |||
Foberance Agrrements [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 5,217,000 | [1] | 6,623,000 | |||
Other [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 134,966,000 | [1],[2] | 129,896,000 | [3] | ||
Non Fha Va Residential Mortgage Loans [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 349,980,000 | 363,930,000 | ||||
Non Fha Va Residential Mortgage Loans [Member] | Interest Rate Below Market [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 24,390,000 | 25,964,000 | ||||
Non Fha Va Residential Mortgage Loans [Member] | Maturity of Term Extension [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 8,396,000 | 8,318,000 | ||||
Non Fha Va Residential Mortgage Loans [Member] | Combination of reduction in interest rate and extension of maturity [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 255,731,000 | 267,578,000 | ||||
Non Fha Va Residential Mortgage Loans [Member] | Forgiveness of principal and/or interest [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Non Fha Va Residential Mortgage Loans [Member] | Foberance Agrrements [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Non Fha Va Residential Mortgage Loans [Member] | Other [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 61,463,000 | [2] | 62,070,000 | [3] | ||
Commercial Mortgage Loans [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 85,834,000 | 50,812,000 | ||||
Commercial Mortgage Loans [Member] | Interest Rate Below Market [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 6,518,000 | 6,563,000 | ||||
Commercial Mortgage Loans [Member] | Maturity of Term Extension [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 36,411,000 | 2,094,000 | ||||
Commercial Mortgage Loans [Member] | Combination of reduction in interest rate and extension of maturity [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 30,739,000 | 31,870,000 | ||||
Commercial Mortgage Loans [Member] | Forgiveness of principal and/or interest [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | [1] | 0 | |||
Commercial Mortgage Loans [Member] | Foberance Agrrements [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 2,020,000 | 0 | ||||
Commercial Mortgage Loans [Member] | Other [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 10,146,000 | [2] | 10,285,000 | [3] | ||
Commercial And Industrial Loan [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 96,265,000 | 94,112,000 | ||||
Commercial And Industrial Loan [Member] | Interest Rate Below Market [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 2,497,000 | 2,510,000 | ||||
Commercial And Industrial Loan [Member] | Maturity of Term Extension [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 20,448,000 | 20,648,000 | ||||
Commercial And Industrial Loan [Member] | Combination of reduction in interest rate and extension of maturity [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 15,705,000 | 16,049,000 | ||||
Commercial And Industrial Loan [Member] | Forgiveness of principal and/or interest [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Commercial And Industrial Loan [Member] | Foberance Agrrements [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 3,197,000 | 6,623,000 | ||||
Commercial And Industrial Loan [Member] | Other [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 54,418,000 | [2] | 48,282,000 | [3] | ||
Construction Loans [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 6,600,000 | |||||
Consumer Auto Loans [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 20,811,000 | 22,605,000 | ||||
Consumer Auto Loans [Member] | Interest Rate Below Market [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Consumer Auto Loans [Member] | Maturity of Term Extension [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 1,235,000 | 1,347,000 | ||||
Consumer Auto Loans [Member] | Combination of reduction in interest rate and extension of maturity [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 12,944,000 | 14,233,000 | ||||
Consumer Auto Loans [Member] | Forgiveness of principal and/or interest [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Consumer Auto Loans [Member] | Foberance Agrrements [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Consumer Auto Loans [Member] | Other [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 6,632,000 | [2] | 7,025,000 | [3] | ||
Finance Leases [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 1,876,000 | 2,184,000 | ||||
Finance Leases [Member] | Interest Rate Below Market [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Finance Leases [Member] | Maturity of Term Extension [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 196,000 | 238,000 | ||||
Finance Leases [Member] | Combination of reduction in interest rate and extension of maturity [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 1,680,000 | 1,946,000 | ||||
Finance Leases [Member] | Forgiveness of principal and/or interest [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Finance Leases [Member] | Foberance Agrrements [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Finance Leases [Member] | Other [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | [2] | 0 | [3] | ||
Other Consumer Loans [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 11,015,000 | 11,783,000 | ||||
Other Consumer Loans [Member] | Interest Rate Below Market [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 952,000 | 892,000 | ||||
Other Consumer Loans [Member] | Maturity of Term Extension [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 1,775,000 | 2,097,000 | ||||
Other Consumer Loans [Member] | Combination of reduction in interest rate and extension of maturity [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 6,356,000 | 6,891,000 | ||||
Other Consumer Loans [Member] | Forgiveness of principal and/or interest [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 166,000 | 217,000 | ||||
Other Consumer Loans [Member] | Foberance Agrrements [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Other Consumer Loans [Member] | Other [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 1,766,000 | [2] | 1,686,000 | [3] | ||
Commercial Construction [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | [1] | 35,100,000 | |||
Commercial Construction [Member] | Interest Rate Below Market [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | [1] | 0 | |||
Commercial Construction [Member] | Maturity of Term Extension [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | [1] | 0 | |||
Commercial Construction [Member] | Combination of reduction in interest rate and extension of maturity [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | [1] | 0 | |||
Commercial Construction [Member] | Forgiveness of principal and/or interest [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | [1] | 35,100,000 | |||
Commercial Construction [Member] | Foberance Agrrements [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | [1] | 0 | |||
Commercial Construction [Member] | Other [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | [1],[2] | 0 | [3] | ||
Residential Construction [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 217,000 | 217,000 | ||||
Residential Construction [Member] | Interest Rate Below Market [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Residential Construction [Member] | Maturity of Term Extension [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Residential Construction [Member] | Combination of reduction in interest rate and extension of maturity [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Residential Construction [Member] | Forgiveness of principal and/or interest [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Residential Construction [Member] | Foberance Agrrements [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Residential Construction [Member] | Other [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 217,000 | [2] | 217,000 | [3] | ||
Land Construction [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 6,378,000 | 6,476,000 | ||||
Land Construction [Member] | Interest Rate Below Market [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 17,000 | 18,000 | ||||
Land Construction [Member] | Maturity of Term Extension [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 3,860,000 | 3,941,000 | ||||
Land Construction [Member] | Combination of reduction in interest rate and extension of maturity [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 2,177,000 | 2,186,000 | ||||
Land Construction [Member] | Forgiveness of principal and/or interest [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Land Construction [Member] | Foberance Agrrements [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Land Construction [Member] | Other [Member] | ||||||
Financing Receivable Impaired [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 324,000 | [2] | $ 331,000 | [3] | ||
[1] | Excludes TDRs held for sale amounting to $30.0 million as of March 31, 2018. | |||||
[2] | Other concessions granted by the Corporation included deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of the concessions listed in the table. | |||||
[3] | Other concessions granted by the Corporation included deferral of principal and/or interest payments for a period longer than what would be considered insignificant, payment plans under judicial stipulation, or a combination of the concessions listed in the table. |
LOAN PORTFOLIO - Corporation'92
LOAN PORTFOLIO - Corporation's TDR Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Schedule Of Financing Receivables [Line Items] | ||||
Beginning Balance of TDRs | $ 587,219 | $ 647,048 | ||
New TDRs | 43,419 | 40,899 | ||
Increases to existing TDRs (disbursements) | 6,771 | 424 | ||
Charge-offs post modification | (9,171) | [1] | (14,662) | [2] |
Sales | 0 | (53,245) | ||
Foreclosures | (7,043) | (4,371) | ||
TDRs transferred to loans held for sale | (30,000) | 0 | ||
Paid-off and partial payments | (18,819) | (13,729) | ||
Ending balance of TDRs | $ 572,376 | [3] | $ 602,364 | |
[1] | The first quarter of 2018 includes a charge-off of $5.1 million associated with a $30.0 million construction loan transferred to held for sale. | |||
[2] | The first quarter of 2017 includes a charge-off of $10.7 million related to the sale of the PREPA credit line as further discussed below. | |||
[3] | Excludes TDRs held for sale amounting to $30.0 million as of March 31, 2018. |
LOAN PORTFOLIO - Breakdown Betw
LOAN PORTFOLIO - Breakdown Between Accrual and Nonaccrual Status of TDRs (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | ||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 572,376 | [1] | $ 587,219 | $ 602,364 | $ 647,048 | |
Non Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 205,954 | [2],[3] | 212,524 | [4] | ||
Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 366,422 | 374,695 | ||||
Non Fha Va Residential Mortgage Loans [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 349,980 | 363,930 | ||||
Non Fha Va Residential Mortgage Loans [Member] | Non Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 77,321 | [2],[3] | 83,201 | [4] | ||
Non Fha Va Residential Mortgage Loans [Member] | Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 272,659 | 280,729 | ||||
Commercial Mortgage Loans [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 85,834 | 50,812 | ||||
Commercial Mortgage Loans [Member] | Non Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 61,824 | [2],[3] | 27,483 | [4] | ||
Commercial Mortgage Loans [Member] | Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 24,010 | 23,329 | ||||
Commercial And Industrial Loan [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 96,265 | 94,112 | ||||
Commercial And Industrial Loan [Member] | Non Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 53,014 | [2],[3] | 52,576 | [4] | ||
Commercial And Industrial Loan [Member] | Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 43,251 | 41,536 | ||||
Consumer Auto Loans [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 20,811 | 22,605 | ||||
Consumer Auto Loans [Member] | Non Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 6,729 | [2],[3] | 7,057 | [4] | ||
Consumer Auto Loans [Member] | Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 14,082 | 15,548 | ||||
Finance Leases [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 1,876 | 2,184 | ||||
Finance Leases [Member] | Non Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 223 | [2],[3] | 216 | [4] | ||
Finance Leases [Member] | Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 1,653 | 1,968 | ||||
Other Consumer Loans [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 11,015 | 11,783 | ||||
Other Consumer Loans [Member] | Non Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 1,445 | [2],[3] | 1,489 | [4] | ||
Other Consumer Loans [Member] | Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 9,570 | 10,294 | ||||
Commercial Construction [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | [2] | 35,100 | |||
Commercial Construction [Member] | Non Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | [2],[3] | 35,100 | [4] | ||
Commercial Construction [Member] | Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | [2] | 0 | |||
Residential Construction [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 217 | [2],[3] | 217 | |||
Residential Construction [Member] | Non Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 217 | [3] | 217 | [4] | ||
Residential Construction [Member] | Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||
Land Construction [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 6,378 | 6,476 | ||||
Land Construction [Member] | Non Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 5,181 | [2],[3] | 5,185 | [4] | ||
Land Construction [Member] | Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 1,197 | $ 1,291 | ||||
[1] | Excludes TDRs held for sale amounting to $30.0 million as of March 31, 2018. | |||||
[2] | Excludes a $30.0 million non-performing construction loans transferred to held for sale during the first quarter of 2018. | |||||
[3] | Included in non-accrual loans are $53.2 million in loans that are performing under the terms of the restructuring agreement but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance under the revised terms for reinstatement to accrual status and are deemed fully collectible. | |||||
[4] | Included in non-accrual loans are $88.6 million in loans that are performing under the terms of the restructuring agreement but are reported in non-accrual status until the restructured loans meet the criteria of sustained payment performance under the revised terms for reinstatement to accrual status and are deemed fully collectible. |
LOAN PORTFOLIO - Breakdown Be94
LOAN PORTFOLIO - Breakdown Between Accrual and Nonaccrual Status of TDRs (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | ||
Financing Receivable Modifications [Line Items] | ||||||
Total TDR loans | $ 572,376 | [1] | $ 587,219 | $ 602,364 | $ 647,048 | |
Non Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Total TDR loans | 205,954 | [2],[3] | 212,524 | [4] | ||
Performing Financing Receivable [Member] | Non Accrual [Member] | ||||||
Financing Receivable Modifications [Line Items] | ||||||
Total TDR loans | $ 53,200 | $ 88,600 | ||||
[1] | Excludes TDRs held for sale amounting to $30.0 million as of March 31, 2018. | |||||
[2] | Excludes a $30.0 million non-performing construction loans transferred to held for sale during the first quarter of 2018. | |||||
[3] | Included in non-accrual loans are $53.2 million in loans that are performing under the terms of the restructuring agreement but are reported in nonaccrual status until the restructured loans meet the criteria of sustained payment performance under the revised terms for reinstatement to accrual status and are deemed fully collectible. | |||||
[4] | Included in non-accrual loans are $88.6 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. |
LOAN PORTFOLIO - Loan Modificat
LOAN PORTFOLIO - Loan Modifications are Considered TDRs (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)numberofcontracts | Mar. 31, 2017USD ($)numberofcontracts | |
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | numberofcontracts | 211 | 420 |
Pre-Modification Outstanding Recorded Investment | $ 43,416 | $ 41,263 |
Post-Modification Outstanding Recorded Investment | $ 43,419 | $ 40,899 |
Non Fha Va Residential Mortgage Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | numberofcontracts | 24 | 40 |
Pre-Modification Outstanding Recorded Investment | $ 2,608 | $ 4,650 |
Post-Modification Outstanding Recorded Investment | $ 2,614 | $ 4,508 |
Commercial Mortgage Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | numberofcontracts | 3 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 36,746 | $ 22,438 |
Post-Modification Outstanding Recorded Investment | $ 36,758 | $ 22,198 |
Commercial And Industrial Loan [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | numberofcontracts | 3 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 2,597 | $ 10,748 |
Post-Modification Outstanding Recorded Investment | $ 2,582 | $ 10,748 |
Consumer Auto Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | numberofcontracts | 45 | 152 |
Pre-Modification Outstanding Recorded Investment | $ 680 | $ 2,247 |
Post-Modification Outstanding Recorded Investment | $ 680 | $ 2,247 |
Finance Leases [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | numberofcontracts | 8 | |
Pre-Modification Outstanding Recorded Investment | $ 186 | |
Post-Modification Outstanding Recorded Investment | $ 186 | |
Other Consumer Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | numberofcontracts | 136 | 210 |
Pre-Modification Outstanding Recorded Investment | $ 785 | $ 969 |
Post-Modification Outstanding Recorded Investment | $ 785 | $ 984 |
Land Construction [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | numberofcontracts | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 25 | |
Post-Modification Outstanding Recorded Investment | $ 28 |
LOAN PORTFOLIO - Loan Modific96
LOAN PORTFOLIO - Loan Modifications Considered Troubled Debt Restructurings Defaulted (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)numberofcontracts | Mar. 31, 2017USD ($)numberofcontracts | |
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | numberofcontracts | 18 | 25 |
Recorded Investment | $ | $ 486 | $ 456 |
Non Fha Va Residential Mortgage Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | numberofcontracts | 4 | 3 |
Recorded Investment | $ | $ 387 | $ 277 |
Commercial Mortgage Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | numberofcontracts | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 57 |
Consumer Auto Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | numberofcontracts | 2 | 4 |
Recorded Investment | $ | $ 23 | $ 61 |
Other Consumer Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | numberofcontracts | 11 | 17 |
Recorded Investment | $ | $ 54 | $ 61 |
Finance Leases [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | numberofcontracts | 1 | 0 |
Recorded Investment | $ | $ 22 | $ 0 |
LOAN PORTFOLIO - Loan Restructu
LOAN PORTFOLIO - Loan Restructuring and Effect on Allowance for Loan and Lease Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $ 572,376 | [1] | $ 602,364 | $ 587,219 | $ 647,048 |
Charges to the provision for loan losses | 20,544 | 25,442 | |||
Allowance for loan losses at the end of the period | 225,856 | 231,843 | |||
Loans Split [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | 35,553 | 36,564 | |||
Amount charged-off | 0 | 0 | |||
Charges to the provision for loan losses | 1,412 | 915 | |||
Allowance for loan losses at the end of the period | 5,258 | $ 6,056 | |||
Accrual [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $ 366,422 | $ 374,695 | |||
[1] | Excludes TDRs held for sale amounting to $30.0 million as of March 31, 2018. |
LOAN PORTFOLIO - Narratives (De
LOAN PORTFOLIO - Narratives (Detail) | 1 Months Ended |
Feb. 27, 2015 | |
Disclosure Loan Portfolio Additional Information [Abstract] | |
Branches Doral | 10 |
ALLOWANCE FOR LOAN AND LEASE 99
ALLOWANCE FOR LOAN AND LEASE LOSSES - Changes in Allowance for Loan and Lease Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Beginning balance | $ 231,843 | $ 205,603 | |||
Charge-offs | (29,360) | (32,894) | |||
Recoveries | 2,829 | 5,080 | |||
Provision For Loan Lease And Other Losses | 20,544 | 25,442 | |||
Ending balance | 225,856 | 203,231 | |||
Balance at end of period | 56,930 | 66,311 | |||
Allowance for loan losses Purchased Credit Impaired | 11,251 | 6,857 | |||
Ending balance: general allowance | 157,675 | 130,063 | |||
Ending balance | 8,695,890 | [1] | 8,822,349 | ||
Ending balance: impaired loans | 746,280 | 807,198 | $ 790,308 | $ 887,905 | |
Ending balance: purchased credit-impaired loans | 155,281 | 163,100 | |||
Ending balance: loans with general allowance | 7,794,329 | 7,852,051 | |||
Purchased Credit Impaired [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Allowance for loan losses Purchased Credit Impaired | 11,251 | [2] | 6,857 | ||
Ending balance: purchased credit-impaired loans | 155,281 | 163,100 | |||
Residential Mortgage [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Beginning balance | 58,975 | 33,980 | |||
Charge-offs | (3,371) | (8,225) | |||
Recoveries | 335 | 749 | |||
Provision For Loan Lease And Other Losses | 447 | 9,271 | |||
Ending balance | 56,386 | 35,775 | |||
Balance at end of period | 22,546 | 8,551 | |||
Ending balance: general allowance | 22,967 | 20,679 | |||
Ending balance | 3,267,868 | 3,272,598 | |||
Ending balance: impaired loans | 417,610 | 432,798 | |||
Ending balance: loans with general allowance | 2,699,191 | 2,680,860 | |||
Residential Mortgage [Member] | Purchased Credit Impaired [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Allowance for loan losses Purchased Credit Impaired | 10,873 | [2] | 6,545 | ||
Ending balance: purchased credit-impaired loans | 151,067 | 158,940 | |||
Commercial Mortgage [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Beginning balance | 48,493 | 57,261 | |||
Charge-offs | (6,810) | (1,362) | |||
Recoveries | 49 | 30 | |||
Provision For Loan Lease And Other Losses | 8,661 | 12,539 | |||
Ending balance | 50,393 | 68,468 | |||
Balance at end of period | 13,451 | 36,638 | |||
Ending balance: general allowance | 36,564 | 31,518 | |||
Ending balance | 1,552,503 | 1,596,176 | |||
Ending balance: impaired loans | 162,126 | 193,035 | |||
Ending balance: loans with general allowance | 1,386,163 | 1,398,981 | |||
Commercial Mortgage [Member] | Purchased Credit Impaired [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Allowance for loan losses Purchased Credit Impaired | 378 | [2] | 312 | ||
Ending balance: purchased credit-impaired loans | 4,214 | 4,160 | |||
Commercial And Industrial Loans [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Beginning balance | 48,871 | 61,953 | |||
Charge-offs | (1,930) | (12,052) | |||
Recoveries | 62 | 875 | |||
Provision For Loan Lease And Other Losses | 656 | (4,806) | |||
Ending balance | 47,659 | 45,970 | |||
Balance at end of period | 14,375 | 12,711 | |||
Ending balance: general allowance | 33,284 | 33,259 | |||
Ending balance | 2,061,773 | 2,108,532 | |||
Ending balance: impaired loans | 119,778 | 86,059 | |||
Ending balance: loans with general allowance | 1,941,995 | 2,022,473 | |||
Commercial And Industrial Loans [Member] | Purchased Credit Impaired [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Allowance for loan losses Purchased Credit Impaired | 0 | [2] | 0 | ||
Ending balance: purchased credit-impaired loans | 0 | 0 | |||
Construction Loans [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Beginning balance | 4,522 | 2,562 | |||
Charge-offs | (5,177) | (63) | |||
Recoveries | 13 | 445 | |||
Provision For Loan Lease And Other Losses | 4,764 | 942 | |||
Ending balance | 4,122 | 3,886 | |||
Balance at end of period | 1,484 | 2,835 | |||
Ending balance: general allowance | 2,638 | 1,051 | |||
Ending balance | 79,150 | 137,887 | |||
Ending balance: impaired loans | 12,067 | 51,801 | |||
Ending balance: loans with general allowance | 67,083 | 86,086 | |||
Construction Loans [Member] | Purchased Credit Impaired [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Allowance for loan losses Purchased Credit Impaired | 0 | [2] | 0 | ||
Ending balance: purchased credit-impaired loans | 0 | 0 | |||
Consumer Loan [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Beginning balance | 70,982 | 49,847 | |||
Charge-offs | (12,072) | (11,192) | |||
Recoveries | 2,370 | 2,981 | |||
Provision For Loan Lease And Other Losses | 6,016 | 7,496 | |||
Ending balance | 67,296 | 49,132 | |||
Balance at end of period | 5,074 | 5,576 | |||
Ending balance: general allowance | 62,222 | 43,556 | |||
Ending balance | 1,734,596 | 1,707,156 | |||
Ending balance: impaired loans | 34,699 | 43,505 | |||
Ending balance: loans with general allowance | 1,699,897 | 1,663,651 | |||
Consumer Loan [Member] | Purchased Credit Impaired [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Allowance for loan losses Purchased Credit Impaired | 0 | [2] | 0 | ||
Ending balance: purchased credit-impaired loans | $ 0 | $ 0 | |||
[1] | As of March 31, 2018 and December 31, 2017, includes $823.2 million and $833.5 million, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. | ||||
[2] | Refer to Note 7 - Loans Held for Investment-PCI Loans for a detail of changes in the allowance for loan losses related to PCI loans. |
ALLOWANCE FOR LOAN AND LEASE100
ALLOWANCE FOR LOAN AND LEASE LOSSES - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Reserve for unfunded loan commitments | $ 600 | $ 700 | ||
Loans And Leases Receivable Gross Carrying Amount | 8,695,890 | [1] | $ 8,822,349 | 8,850,476 |
Provision For Loan And Lease Losses | $ 20,544 | 25,442 | ||
P R | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Concentration Risk Percentage 1 | 75.00% | |||
V I | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Concentration Risk Percentage 1 | 6.00% | |||
Commercial And Industrial [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loans And Leases Receivable Gross Carrying Amount | $ 2,061,773 | 2,083,253 | ||
Construction Loans [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loans And Leases Receivable Gross Carrying Amount | 79,150 | [2] | 111,397 | |
Commercial Portfolio Segment [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loans And Leases Receivable Gross Carrying Amount | 3,693,426 | 3,809,622 | ||
Residential Mortgage [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loans And Leases Receivable Gross Carrying Amount | 3,267,868 | 3,290,957 | ||
Consumer Loan [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loans And Leases Receivable Gross Carrying Amount | 633,240 | 648,104 | ||
Commercial And Industrial Sector [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loans And Leases Receivable Gross Carrying Amount | 2,061,773 | [1] | 2,083,253 | |
Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loans And Leases Receivable Gross Carrying Amount | 1,552,503 | [2] | $ 1,614,972 | |
Residential Mortgage [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loans And Leases Receivable Gross Carrying Amount | $ 3,267,868 | $ 3,272,598 | ||
[1] | As of March 31, 2018 and December 31, 2017, includes $823.2 million and $833.5 million, respectively, of commercial loans that are secured by real estate but are not dependent upon the real estate for repayment. | |||
[2] | During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). |
LOANS HELD FOR SALE - Portfolio
LOANS HELD FOR SALE - Portfolio of Loans Held for Sale (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Total | [1] | $ 91,375 | $ 32,980 |
Residential Mortgage [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Residential mortgage loans | 26,430 | 24,690 | |
Construction Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Construction loans | [1] | 37,732 | 8,290 |
Commercial Mortgage [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Commercial Mortgage loans | [1] | $ 27,213 | $ 0 |
[1] | During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). |
LOANS HELD FOR SALE - Additiona
LOANS HELD FOR SALE - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans held for sale | [1] | $ 91,375 | $ 32,980 |
[1] | During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). |
OTHER REAL ESTATE OWNED- Other
OTHER REAL ESTATE OWNED- Other real estate owned (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Other Real Estate And Foreclosed Assets [Line Items] | |||
Other real estate owned | $ 154,639 | $ 147,940 | |
Residential Real Estate [Member] | |||
Other Real Estate And Foreclosed Assets [Line Items] | |||
Other real estate owned | [1] | 60,240 | 54,381 |
Commercial Real Estate [Member] | |||
Other Real Estate And Foreclosed Assets [Line Items] | |||
Other real estate owned | 83,911 | 82,871 | |
Construction Real Estate [Member] | |||
Other Real Estate And Foreclosed Assets [Line Items] | |||
Other real estate owned | $ 10,488 | $ 10,688 | |
[1] | Excludes $17.8 million and $21.3 million as of March 31, 2018 and December 31, 2017, respectively, of foreclosures that meet the conditions of ASC 310-40 and are presented as a receivable (other assets) in the statement of financial condition. |
OTHER REAL ESTATE OWNED- Additi
OTHER REAL ESTATE OWNED- Additional information (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Other Real Estate And Foreclosed Assets [Abstract] | ||
Transfers From Loans to Other Receivable | $ 17.8 | $ 21.3 |
DERIVATIVE INSTRUMENTS AND H105
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amounts of All Derivative Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Economic undesignated hedges: | |||
Notional amount of derivatives | [1] | $ 206,020 | $ 208,020 |
Nondesignated [Member] | Interest Rate Cap [Member] | Purchase | |||
Economic undesignated hedges: | |||
Notional amount of derivatives | [1] | 90,510 | 91,010 |
Nondesignated [Member] | Interest Rate Cap [Member] | Written | |||
Economic undesignated hedges: | |||
Notional amount of derivatives | [1] | 90,510 | 91,010 |
Nondesignated [Member] | Forward Contracts [Member] | |||
Economic undesignated hedges: | |||
Notional amount of derivatives | [1] | $ 25,000 | $ 26,000 |
[1] | (1) Notional amounts are presented on a gross basis with no netting of offsetting exposure positions. |
DERIVATIVE INSTRUMENTS AND H106
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Fair Value of Derivative Instruments and Location in Statement of Financial Condition (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in assets | $ 671 | $ 312 |
Other Assets [Member] | Interest Rate Cap [Member] | Purchase | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in assets | 668 | 305 |
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 | 3 | 7 |
Other Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in liabilities | 735 | 324 |
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 | 668 | 305 |
Other Liabilities [Member] | Forward Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivatives, included in liabilities | $ 67 | $ 19 |
DERIVATIVE INSTRUMENTS AND H107
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Derivative Instruments on Statement of Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Economic undesignated hedges: | ||
Total gain (loss) on derivatives | $ (52) | $ (57) |
Interest Income Loans [Member] | Interest Rate Swap [Member] | ||
Economic undesignated hedges: | ||
Total gain (loss) on derivatives | 0 | (1) |
Mortgage Banking Activities [Member] | Forward Contracts [Member] | ||
Economic undesignated hedges: | ||
Total gain (loss) on derivatives | $ (52) | $ (56) |
DERIVATIVE INSTRUMENTS AND H108
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Interest Rate Swaps (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Pay fixed/receive floating : | |||
Notional amount | [1] | $ 206,020 | $ 208,020 |
[1] | (1) Notional amounts are presented on a gross basis with no netting of offsetting exposure positions. |
OFFESTTING OF ASSETS AND LIABIL
OFFESTTING OF ASSETS AND LIABILITIES - Offsetting of financial assets and liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Offsetting [Abstract] | ||
Gross amount recognized of derivative asset | $ 668 | $ 305 |
Gross amount of derivatives assets offset | 0 | 0 |
Net asset amount of assets presented in the Statement of Financial Condition | 668 | 305 |
Obligation to return Financial instrument, derivatives assets | (45) | (305) |
Obligation to return Cash Collateral, derivative assets | 623 | 0 |
Net derivative asset amount not offset | 0 | 0 |
Gross amount recognized of derivative liabilities | 0 | |
Gross amount of derivative liabilities offset | 0 | |
Net derivative liability amount offset presented | 0 | |
Right to claim Cash Collateral, derivatives liabilities | 0 | |
Net derivatives liability amount not offset | 0 | |
Gross amount recognized of repurchase agreements | 400,000 | 500,000 |
Gross amount of repurchase agreements offset | (200,000) | (200,000) |
Net repurchase agreements amount offset presented | 200,000 | 300,000 |
Right to claim Financial instrument, repurchase agreements | (200,000) | (300,000) |
Right to claim Cash Collateral, repurchase agreements | 0 | 0 |
Net repurchase agreements amount not offset | 0 | 0 |
Gross amount recognized of liabilities | 500,000 | |
Net liabilities amount offset presented | 300,000 | |
Right to claim Cash Collateral, liabilties | 0 | |
Net liability amount not offset | 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 | 200,668 | 200,305 |
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 | 668 | 305 |
Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Collateral Obligation To Return Securities | (45) | (305) |
Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Collateral Obligation To Return Cash | (623) | 0 |
Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Amount Offset Against Collateral | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBL110
GOODWILL AND OTHER INTANGIBLES - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Jun. 30, 2012 | |
Finite Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 28,100,000 | $ 28,100,000 | ||
Amortization expense | 1,006,000 | $ 1,121,000 | ||
Purchased Credit Card Relationship Intangible [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Purchase credit card relationship intangible amount | $ 24,465,000 | $ 24,465,000 | $ 24,500,000 | |
Amortization period of purchased credit card relationship intangible | 3 years 7 months 6 days | 3 years 10 months 24 days | ||
Amortization expense | $ 600,000 | 600,000 | ||
Core Deposits [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Purchase credit card relationship intangible amount | $ 51,664,000 | $ 51,664,000 | ||
Amortization period of purchased credit card relationship intangible | 6 years 9 months 18 days | 7 years | ||
Amortization expense | $ 400,000 | 500,000 | ||
Business Combination Finite Lived Intangible Assets Net | 3,600,000 | |||
Customer Related Intangible Assets [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Purchase credit card relationship intangible amount | $ 1,067,000 | $ 1,067,000 | ||
Amortization period of purchased credit card relationship intangible | 4 years 8 months 12 days | 5 years | ||
Amortization expense | $ 38,000 | $ 38,000 |
GOODWILL AND OTHER INTANGIBL111
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, 2018 | Dec. 31, 2017 | Jun. 30, 2012 | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Finite Lived Intangible Assets Amortization Expense Year Two | $ 3,088 | |||
Finite Lived Intangible Assets Amortization Expense Year Three | 2,851 | |||
Finite Lived Intangible Assets Amortization Expense Year Four | 2,658 | |||
Finite Lived Intangible Assets Amortization Expense After Year Five | 1,150 | |||
Finite Lived Intangible Assets Amortization Expense Remainder Of Fiscal Year | 2,585 | |||
Finite Lived Intangible Assets Amortization Expense Year Five | 915 | |||
Core Deposits [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Gross amount | 51,664 | $ 51,664 | ||
Accumulated amortization | [1] | (46,580) | (46,186) | |
Net carrying amount | $ 5,084 | $ 5,478 | ||
Remaining amortization period | 6 years 9 months 18 days | 7 years | ||
Purchased Credit Card Relationship Intangible [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Gross amount | $ 24,465 | $ 24,465 | $ 24,500 | |
Accumulated amortization | [2] | (17,039) | (16,465) | |
Net carrying amount | $ 7,426 | $ 8,000 | ||
Remaining amortization period | 3 years 7 months 6 days | 3 years 10 months 24 days | ||
Customer Related Intangible Assets [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Gross amount | $ 1,067 | $ 1,067 | ||
Accumulated amortization | [3] | (330) | (292) | |
Net carrying amount | $ 737 | $ 775 | ||
Remaining amortization period | 4 years 8 months 12 days | 5 years | ||
[1] | (1) For the quarters ended March 31, 2018 and 2017, the amortization expense of core deposit intangibles amounted to $0.4 million and $0.5 million, respectively. | |||
[2] | (2) For each of the quarters ended March 31, 2018 and 2017, the amortization expense of the purchased credit card relationship intangible amounted to $0.6 million. | |||
[3] | (3) For each of the quarters ended March 31, 2018 and 2017, the amortization expense of the insurance customer relationship intangible amounted to $38 thousand. |
NON-CONSOLIDATED VARIABLE IN112
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Feb. 16, 2011 | Sep. 30, 2004 | Apr. 30, 2004 | Mar. 31, 2018 | Jun. 30, 2016 | |
Servicing Liabilities At Fair Value [Line Items] | |||||
Principal amount of corporation serviced loans securitized through GNMA | $ 1,700 | ||||
Balance of amortization with third party | 21.3 | ||||
Carrying value with third party | $ 16.1 | ||||
Percentage of weighted average yield with third party | 4.49% | ||||
Maturity period of loan acquired | 7 years | ||||
Percentage of priority interest to be received on invested capital | 12.00% | ||||
Payment to be made on pro rata basis | 65.00% | ||||
Percentage of variation in assumptions | 10.00% | ||||
Debt Instrument Description Of Variable Rate Basis | 90-day LIBOR | ||||
Interest Expense Accrued Trust Preferred Securities | $ 31.2 | ||||
Trust Preferred Securities Repurchases | $ 23.8 | ||||
Trust Preferred Securties Discount | 10.00% | ||||
Trust Preferred Securities Winning Bid | 90.00% | ||||
Maximum [Member] | |||||
Servicing Liabilities At Fair Value [Line Items] | |||||
Percentage of variation in assumptions | 20.00% | ||||
Minimum [Member] | |||||
Servicing Liabilities At Fair Value [Line Items] | |||||
Percentage of variation in assumptions | 10.00% | ||||
Fbp Statutory Trust One [Member] | |||||
Servicing Liabilities At Fair Value [Line Items] | |||||
Variable rate trust preferred securities | $ 100 | ||||
Proceeds of the issuance, together with proceeds of the purchase | 3.1 | ||||
Principal amount of corporation's junior subordinated deferrable debentures | $ 103.1 | ||||
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 | ||||
Proceeds of the issuance, together with proceeds of the purchase | 3.9 | ||||
Principal amount of corporation's junior subordinated deferrable debentures | $ 128.9 | ||||
Subordinated Borrowing Due Date | Sep. 20, 2034 | ||||
Cpg Gs [Member] | |||||
Servicing Liabilities At Fair Value [Line Items] | |||||
Loans Sold to CPG | $ 269.3 | ||||
Cash realized on sale of loan | 88.5 | ||||
Loans acquired on exchange of loan held for sale | $ 136.1 | ||||
Description of loan | 30-day LIBOR plus 300 basis points | ||||
Carrying amount of loan provided | $ 4.1 | ||||
Line of credit facility provided to fund unfunded commitments | $ 80 | ||||
Working capital line of credit to fund certain expenses | $ 20 | ||||
Revolver agreement of credit facility provided amount outstanding | $ 6.8 | ||||
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] | |||||
Acquired Equity interest on disposal of loans held for sale | 35.00% |
NON-CONSOLIDATED VARIABLE IN113
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Income Statement Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Revenues | $ 147,477 | |
Net income | $ 33,148 | $ 25,541 |
NON-CONSOLIDATED VARIABLE IN114
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Changes in Servicing Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Servicing Assets At Amortized Value [Line Items] | |||
Balance at beginning of period | $ 25,255 | $ 26,244 | |
Capitalization of servicing assets | 887 | 875 | |
Amortization | (737) | (788) | |
Adjustment To Servicing Assets For Loans Repurchased | [1] | 17 | 159 |
Adjustment to fair value | 713 | (160) | |
Balance at end of period | $ 26,135 | $ 26,330 | |
[1] | Amount represents the adjustment to fair value related to the repurchase of loans serviced for others. |
NON-CONSOLIDATED VARIABLE IN115
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Changes in Impairment Allowance (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Valuation Allowance For Impairment Of Recognized Servicing Assets [Line Items] | ||
Balance at beginning of period | $ 1,451 | $ 461 |
Temporary impairment charges | 17 | 160 |
OTTI of servicing assets | (65) | (621) |
Recoveries | (730) | 0 |
Balance at end of period | $ 673 | $ 0 |
NON-CONSOLIDATED VARIABLE IN116
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Components of Net Servicing Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Servicing fees | $ 2,120 | $ 2,024 | |
Late charges and prepayment penalties | 120 | 99 | |
All Other Fees | 0 | (7) | |
Adjustment To Servicing Assets For Loans Repurchased | [1] | 17 | 159 |
Servicing income, gross | 2,257 | 2,275 | |
Amortization and impairment of servicing assets | (24) | (948) | |
Servicing income, net | $ 2,233 | $ 1,327 | |
[1] | Amount represents the adjustment to fair value related to the repurchase of loans serviced for others. |
NON-CONSOLIDATED VARIABLE IN117
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Key Economic Assumptions Used in Determining Fair Value at Time of Sale of Loans (Detail) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Government Guaranteed Mortgage Loans [Member] | ||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | ||
Constant prepayment rate | 5.60% | 6.00% |
Discount rate | 12.00% | 12.00% |
Conventional Loan [Member] | ||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | ||
Constant prepayment rate | 6.20% | 6.30% |
Discount rate | 10.00% | 10.00% |
Conventional Non Conforming Mortgage Loans [Member] | ||
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items] | ||
Constant prepayment rate | 9.10% | 9.50% |
Discount rate | 14.30% | 14.30% |
NON-CONSOLIDATED VARIABLE IN118
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Weighted-Averages of Key Economic Assumptions in Valuation Model (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Carrying amount of servicing assets | $ 26,135 | $ 25,255 | $ 26,330 | $ 26,244 |
Fair value | $ 30,720 | |||
Weighted-average expected life | 8 years 6 months | |||
Constant prepayment rate | 5.89% | |||
Decrease in fair value due to 10% adverse change | $ 725 | |||
Decrease in fair value due to 20% adverse change | $ 1,421 | |||
Discount rate | 11.23% | |||
Decrease in fair value due to 10% adverse change | $ 1,503 | |||
Decrease in fair value due to 20% adverse change | $ 2,876 |
DEPOSITS - Summary of Deposit B
DEPOSITS - Summary of Deposit Balances (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Deposits [Line Items] | ||
Non-interest bearing checking accounts | $ 2,019,823 | $ 1,833,665 |
Savings accounts | 2,413,446 | 2,401,385 |
Interest-bearing checking accounts | 1,242,957 | 1,207,511 |
Certificates of deposit | 2,434,162 | 2,429,585 |
Brokered certificates of deposit | 956,077 | 1,150,485 |
Total deposits | $ 9,066,465 | $ 9,022,631 |
DEPOSITS - Brokered Certificate
DEPOSITS - Brokered Certificates Of Deposit Mature (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | $ 956,077 | $ 1,150,485 |
One to ninety days | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 133,119 | |
Over three month to six months | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 149,170 | |
Over six months to one year | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 265,986 | |
One to three year | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 316,191 | |
Three to five years | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | 90,231 | |
Over five years | ||
Deposits [Line Items] | ||
Interest Bearing Domestic Deposit Brokered | $ 1,380 |
DEPOSITS - Components of Intere
DEPOSITS - Components of Interest Expense on Deposits (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Deposits [Line Items] | ||
Interest expense on deposits | $ 16,607 | $ 15,468 |
Accretion Of Premium From Acquisitions | (3) | (23) |
Amortization of broker placement fees | 367 | 527 |
Interest expense on deposits | $ 16,971 | $ 15,972 |
SECURITIES SOLD UNDER AGREEM122
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities Sold Under Agreements to Repurchase (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Repurchase agreements | $ 200,000 | $ 300,000 | |
long term debt [member] | |||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Repurchase agreements | [1],[2] | 200,000 | 200,000 |
short term debt [member] | |||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Repurchase agreements | $ 0 | $ 100,000 | |
[1] | As of March 31, 2018, includes $200 million with an average rate of 2.11% that lenders have the right to call before their contractual maturities at various dates beginning on May 6, 2018. Subsequent to March 31, 2018, no lender has exercised its call option on repurchase agreements. | ||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
SECURITIES SOLD UNDER AGREEM123
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities Sold Under Agreements to Repurchase (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Securities sold under agreements to repurchase | $ 200,000 | $ 300,000 | |
long term debt [member] | |||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Securities sold under agreements to repurchase | [1],[2] | $ 200,000 | 200,000 |
short term debt [member] | |||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Assets sold under agreements to repurchase interest rate | 1.53% | ||
Securities sold under agreements to repurchase | $ 0 | $ 100,000 | |
Callable Repurchase Agreements [Member] | |||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Securities sold under agreements to repurchase | $ 200,000 | ||
Maximum [Member] | long term debt [member] | |||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Assets sold under agreements to repurchase interest rate | 2.26% | ||
Minimum [Member] | long term debt [member] | |||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Assets sold under agreements to repurchase interest rate | 1.96% | ||
Weighted Average [Member] | Callable Repurchase Agreements [Member] | |||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items] | |||
Assets sold under agreements to repurchase interest rate | 2.11% | ||
[1] | As of March 31, 2018, includes $200 million with an average rate of 2.11% that lenders have the right to call before their contractual maturities at various dates beginning on May 6, 2018. Subsequent to March 31, 2018, no lender has exercised its call option on repurchase agreements. | ||
[2] | Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11. |
SECURITIES SOLD UNDER AGREEM124
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Schedule of Repurchase Agreement Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Repurchase Agreement [Line Items] | ||
Securities Sold Under Agreements To Repurchase | $ 200,000 | $ 300,000 |
Maturity Over Four to Five Years [Member] | ||
Repurchase Agreement [Line Items] | ||
Securities Sold Under Agreements To Repurchase | $ 200,000 |
SECURITIES SOLD UNDER AGREEM125
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Schedule of Repurchase Agreement Maturity (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Repurchase Agreement [Line Items] | ||
Securities Sold Under Agreements To Repurchase | $ 200,000 | $ 300,000 |
SECURITIES SOLD UNDER AGREEM126
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Repurchase Agreements Grouped by Counterparty (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Repurchase Agreement Counterparty [Line Items] | ||
Repurchase agreements, interest ranging from 2.45% to 3.39% (December 31, 2011 - 2.50% to 4.40%) (1) | $ 200,000 | $ 300,000 |
Jp Morgan Chase [Member] | ||
Repurchase Agreement Counterparty [Line Items] | ||
Repurchase agreements, interest ranging from 2.45% to 3.39% (December 31, 2011 - 2.50% to 4.40%) (1) | $ 200,000 | |
Weighted-Average Maturity | 46 years | |
Dean Witter Morgan Stanley [Member] | ||
Repurchase Agreement Counterparty [Line Items] | ||
Weighted-Average Maturity | 6 months 29 days |
ADVANCES FROM THE FEDERAL HO127
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Summary of Advances from FHLB (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
long term debt [member] | ||
Short Term Debt [Line Items] | ||
Fixed-rate advances from FHLB | $ 715,000 | $ 715,000 |
ADVANCES FROM THE FEDERAL HO128
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Summary of Advances from FHLB (Parenthetical) (Detail) | Mar. 31, 2018 | Dec. 31, 2017 |
Weighted Average [Member] | long term debt [member] | ||
Short Term Debt [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Interest Rate at Period End | 1.91% | 1.91% |
ADVANCES FROM THE FEDERAL HO129
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Advances from FHLB Mature (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Federal Home Loan Bank Advances Maturity [Domain] | |
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | |
Federal Home Loan Bank Advances | $ 715,000 |
Over six months to one year | |
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | |
Federal Home Loan Bank Advances | 70,000 |
Over one to three years | |
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | |
Federal Home Loan Bank Advances | 300,000 |
Over three months to six months | |
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | |
Federal Home Loan Bank Advances | 25,000 |
Over three years to five years | |
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | |
Federal Home Loan Bank Advances | $ 320,000 |
ADVANCES FROM THE FEDERAL HO130
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) - Additional Information (Detail) $ in Millions | Mar. 31, 2018USD ($) |
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items] | |
Credit facility based on collateral pledged | $ 689.5 |
OTHER BORROWINGS - Components o
OTHER BORROWINGS - Components of Other Borrowings (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Junior subordinated debentures due in 2034 | $ 184,150 | $ 208,635 | |
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Seventy Five [Member] | |||
Debt Instrument [Line Items] | |||
Junior subordinated debentures due in 2034 | 65,593 | [1] | 90,078 |
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Fifty Percent [Member] | |||
Debt Instrument [Line Items] | |||
Junior subordinated debentures due in 2034 | $ 118,557 | $ 118,557 | |
[1] | (1) Refer to Note 14, - "Non-Consolidated Variable Interest Entities and Servicing Assets-Trust Preferred Securities," for additional information about the Corporation repurchase and cancellation in the first quarter of 2018 of $23.8 million in trust-preferred securities associated with these junior subordinated debentures. |
OTHER BORROWINGS - Component132
OTHER BORROWINGS - Components of Other Borrowings (Parenthetical) (Detail) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Seventy Five [Member] | ||
Debt Instrument [Line Items] | ||
Floating Interest rate on junior subordinated debentures | 4.92% | 4.35% |
Subordinated Borrowing Due Date | Jun. 17, 2034 | |
Callable step-rate notes rate | 2.75% | |
Junior Subordinated Debentures Bearing Interest At Floating Rate Of Two Point Fifty Percent [Member] | ||
Debt Instrument [Line Items] | ||
Floating Interest rate on junior subordinated debentures | 4.70% | 4.12% |
Subordinated Borrowing Due Date | Sep. 20, 2034 | |
Callable step-rate notes rate | 2.50% |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2018USD ($)numberofstocks$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2017shares | |
Class Of Stock [Line Items] | |||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | |
Common stock, par value | $ / shares | $ 0.1 | $ 0.1 | |
Common stock, shares issued | 220,877,719 | 220,382,343 | |
Common stock, shares outstanding | 216,390,329 | 216,278,040 | |
Granted shares of restricted stock | 341,189 | ||
Corporation has authorized shares of preferred stock | 50,000,000 | 50,000,000 | |
Preferred stock, par value | $ / shares | $ 1 | ||
Number of preferred stock series | numberofstocks | 5 | ||
Stock repurchase plan treasury stock | 4,487,390 | 4,104,303 | |
Repurchased of common stock | 383,087 | 98,300 | |
Liquidation value per share | $ / shares | $ 25 | ||
Legal surplus reserve amount | $ | $ 59,693,000 | $ 59,693,000 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number | 1,816,968 | ||
Legal Surplus Amount Additions | $ | $ 7,300,000 | ||
Omnibus Plan [Member] | |||
Class Of Stock [Line Items] | |||
Restricted stock available for issuance | 7,063,074 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number | 1,096,681 | ||
Restricted Stock [Member] | |||
Class Of Stock [Line Items] | |||
Repurchased of common stock | 326,956 | 52,590 | |
FirstBank [Member] | |||
Class Of Stock [Line Items] | |||
Legal surplus reserve rate | 10.00% | ||
Original amount contributed in percentage | 20.00% | ||
Series A Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 7.125% | ||
Series B Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 8.35% | ||
Series C Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 7.40% | ||
Series D Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 7.25% | ||
Series E Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock dividend rate percentage | 7.00% |
STOCKHOLDERS' EQUITY - Exchange
STOCKHOLDERS' EQUITY - Exchange offer with respect to Series A through E preferred stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | ||
Liquidation value per share | $ 25 | |
Preferred stock, shares outstanding | 1,444,146 | 1,444,146 |
Preferred Stock Value | $ 36,104 | $ 36,104 |
Series A Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Preferred stock dividend rate percentage | 7.125% | |
Series B Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Preferred stock dividend rate percentage | 8.35% | |
Series C Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Preferred stock dividend rate percentage | 7.40% | |
Series D Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Preferred stock dividend rate percentage | 7.25% | |
Series E Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Preferred stock dividend rate percentage | 7.00% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Valuation allowance | $ 186,100 | ||
Percentage of dividend received deduction from controlled subsidiaries | 100.00% | ||
Percentage of dividend received from other taxable domestic corporations | 85.00% | ||
Income tax expense | $ 7,758 | $ (8,073) | |
Deferred Tax Assets Net | $ 289,300 | ||
Minimum percentage of bank net taxable income for paying Income tax at normal rate | 20.00% | ||
Effective Tax Rate Pretax Losses | 27.00% | 24.00% | |
Effective Income Tax Rate Continuing Operations | 19.00% | 13.00% | |
Effective Income Tax Rate Excluding Discrete Items | 23.00% | 25.00% | |
Corporate tax rate | 35.00% | ||
Tax Reform Corporate Tax Rate | 21.00% | ||
Tax Reform Tax Rate Repatriation Of Liquid Assets | 15.50% | ||
Tax Reform Tax Rate On Base Erotions Payments | 10.00% | ||
Tax Reform Tax Rate Global Intangible Low Tax Income | 10.50% | ||
Change in tax rate | 21.00% | ||
Puerto Rico [Member] | |||
Income Tax Contingency [Line Items] | |||
Statute of limitations under income tax act | 4 years | ||
United States [Member] | |||
Income Tax Contingency [Line Items] | |||
Income tax expense | $ 1,600 | ||
Statute of limitations under income tax act | 3 years | ||
Virgin Islands [Member] | |||
Income Tax Contingency [Line Items] | |||
Statute of limitations under income tax act | 3 years | ||
FirstBank [Member] | |||
Income Tax Contingency [Line Items] | |||
Valuation allowance | $ 150,000 | $ 294,700 | |
Deferred Tax Assets Net | 289,200 | $ 150,700 | |
Valuation Allowance Deferred Tax Asset Change In Amount | 13,900 | ||
FirstBank Insurance [Member] | |||
Income Tax Contingency [Line Items] | |||
Deferred Tax Asset Change In Amount | $ 700 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Securities available for sale | |||
Investment securities available for sale | $ 1,815,504 | $ 1,891,016 | |
Forward Contracts [Member] | |||
Derivatives, included in liabilities: | |||
Derivatives, included in liabilities | 67 | 19 | |
Equity Securities [Member] | |||
Securities available for sale | |||
Investment securities available for sale | [1] | 0 | 418 |
U S Treasury Securities [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 57,169 | 7,401 | |
Us Government Agencies Debt Securities Noncallable [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 329,170 | 361,971 | |
Us Government Agencies Debt Securities Callable [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 1,406,283 | 1,497,253 | |
US States And Political Subdivisions Member [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 6,808 | 6,813 | |
Private Label Mbs [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 16,074 | 17,060 | |
Interest Rate Cap [Member] | Purchase | |||
Derivatives, included in assets: | |||
Derivatives, included in assets | 668 | 305 | |
Interest Rate Cap [Member] | Written | |||
Derivatives, included in liabilities: | |||
Derivatives, included in liabilities | 668 | 305 | |
Forward And Future Contracts [Member] | |||
Derivatives, included in assets: | |||
Derivatives, included in assets | 3 | 7 | |
Other Available For Sale Securities [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 0 | 100 | |
Other investments [Member] | |||
other investment | |||
Other investments | [1] | 413 | 0 |
Fair Value Inputs Level 1 [Member] | |||
other investment | |||
Other investments | 413 | ||
Fair Value Inputs Level 1 [Member] | Forward Contracts [Member] | |||
Derivatives, included in liabilities: | |||
Derivatives, included in liabilities | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Equity Securities [Member] | |||
Securities available for sale | |||
Investment securities available for sale | [1] | 0 | 418 |
Fair Value Inputs Level 1 [Member] | U S Treasury Securities [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 57,169 | 7,401 | |
Fair Value Inputs Level 1 [Member] | Us Government Agencies Debt Securities Noncallable [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Us Government Agencies Debt Securities Callable [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | US States And Political Subdivisions Member [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Private Label Mbs [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Interest Rate Cap [Member] | Purchase | |||
Derivatives, included in assets: | |||
Derivatives, included in assets | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Interest Rate Cap [Member] | Written | |||
Derivatives, included in liabilities: | |||
Derivatives, included in liabilities | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Forward And Future Contracts [Member] | |||
Derivatives, included in assets: | |||
Derivatives, included in assets | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Other Available For Sale Securities [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Other investments [Member] | |||
other investment | |||
Other investments | [1] | 413 | 0 |
Fair Value Inputs Level 2 [Member] | |||
other investment | |||
Other investments | 0 | ||
Fair Value Inputs Level 2 [Member] | Forward Contracts [Member] | |||
Derivatives, included in liabilities: | |||
Derivatives, included in liabilities | 67 | 19 | |
Fair Value Inputs Level 2 [Member] | Equity Securities [Member] | |||
Securities available for sale | |||
Investment securities available for sale | [1] | 0 | 0 |
Fair Value Inputs Level 2 [Member] | U S Treasury Securities [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 0 | 0 | |
Fair Value Inputs Level 2 [Member] | Us Government Agencies Debt Securities Noncallable [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 329,170 | 361,971 | |
Fair Value Inputs Level 2 [Member] | Us Government Agencies Debt Securities Callable [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 1,406,283 | 1,497,253 | |
Fair Value Inputs Level 2 [Member] | US States And Political Subdivisions Member [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 4,074 | 4,118 | |
Fair Value Inputs Level 2 [Member] | Private Label Mbs [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 0 | 0 | |
Fair Value Inputs Level 2 [Member] | Interest Rate Cap [Member] | Purchase | |||
Derivatives, included in assets: | |||
Derivatives, included in assets | 668 | 305 | |
Fair Value Inputs Level 2 [Member] | Interest Rate Cap [Member] | Written | |||
Derivatives, included in liabilities: | |||
Derivatives, included in liabilities | 668 | 305 | |
Fair Value Inputs Level 2 [Member] | Forward And Future Contracts [Member] | |||
Derivatives, included in assets: | |||
Derivatives, included in assets | 3 | 7 | |
Fair Value Inputs Level 2 [Member] | Other Available For Sale Securities [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 0 | 0 | |
Fair Value Inputs Level 2 [Member] | Other investments [Member] | |||
other investment | |||
Other investments | [1] | 0 | 0 |
Fair Value Inputs Level 3 [Member] | |||
other investment | |||
Other investments | 0 | ||
Fair Value Inputs Level 3 [Member] | Forward Contracts [Member] | |||
Derivatives, included in liabilities: | |||
Derivatives, included in liabilities | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Equity Securities [Member] | |||
Securities available for sale | |||
Investment securities available for sale | [1] | 0 | 0 |
Fair Value Inputs Level 3 [Member] | U S Treasury Securities [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Us Government Agencies Debt Securities Noncallable [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Us Government Agencies Debt Securities Callable [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | US States And Political Subdivisions Member [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 2,734 | 2,695 | |
Fair Value Inputs Level 3 [Member] | Private Label Mbs [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 16,074 | 17,060 | |
Fair Value Inputs Level 3 [Member] | Interest Rate Cap [Member] | Purchase | |||
Derivatives, included in assets: | |||
Derivatives, included in assets | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Interest Rate Cap [Member] | Written | |||
Derivatives, included in liabilities: | |||
Derivatives, included in liabilities | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Forward And Future Contracts [Member] | |||
Derivatives, included in assets: | |||
Derivatives, included in assets | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Other Available For Sale Securities [Member] | |||
Securities available for sale | |||
Investment securities available for sale | 0 | 100 | |
Fair Value Inputs Level 3 [Member] | Other investments [Member] | |||
other investment | |||
Other investments | [1] | $ 0 | $ 0 |
[1] | As of January 1, 2018, the Corporation adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment securities to other investment securities. As of December 31, 2017, equity securities had a net unrealized loss of $6 thousand. |
FAIR VALUE - Fair Value of Asse
FAIR VALUE - Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Total gains or (losses) (realized/unrealized): | |||
Principal Repayments | [1] | $ (1,519) | $ (2,050) |
Available for Sale Securities | |||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | [1] | 19,855 | 22,914 |
Total gains or (losses) (realized/unrealized): | |||
Included in earnings | [1] | 0 | 0 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Other Comprehensive Income Loss | [1] | 472 | 518 |
Ending balance | [1] | $ 18,808 | $ 21,382 |
[1] | Amounts mostly related to private label MBS. |
FAIR VALUE - Assets and Liab138
FAIR VALUE - Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Discount rate used for calculation of mortgage servicing rights value | 14.50% | 14.00% |
Fair value input prepayment rate | 15.20% | 16.40% |
Private Label Mbs [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 16,074 | |
Discount rate used for calculation of mortgage servicing rights value | 14.48% | |
US States And Political Subdivisions Member [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 2,734 | |
Unobservable input prepayment rate | 3.00% | |
Available for sale Securities [Member] | US States And Political Subdivisions Member [Member] | Discounted Cash Flow [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Discount rate used for calculation of mortgage servicing rights value | 6.24% | |
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 | 7.50% | 12.00% |
Minimum [Member] | Private Label Mbs [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value input prepayment rate | 7.50% | |
Fair value projected Cumulative Loss Rate | 0.00% | |
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 | 24.50% | 29.00% |
Maximum [Member] | Private Label Mbs [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value input prepayment rate | 24.50% | |
Fair value projected Cumulative Loss Rate | 9.00% | |
Weighted Average [Member] | Private Label Mbs [Member] | Discounted Cash Flow [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Unobservable input prepayment rate | 15.20% | |
Fair value projected Cumulative Loss Rate | 4.00% |
FAIR VALUE - Change in unrealiz
FAIR VALUE - Change in unrealized losses included in earnings (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Available for Sale Securities | |||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Included in earnings | [1] | $ 0 | $ 0 |
[1] | Amounts mostly related to private label MBS. |
FAIR VALUE - Impairment of Valu
FAIR VALUE - Impairment of Valuation Adjustments were Recorded for Assets Recognized at Fair Value (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Mortgage servicing rights | $ 26,135 | $ 26,330 | $ 25,255 | $ 26,244 | |||
Loans Receivable [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Assets Fair Value Adjustment | [1] | (15,211) | |||||
Other Real Estate Owned [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Assets Fair Value Adjustment | [2] | (4,180) | |||||
Mortgage Servicing Rights [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Assets Fair Value Adjustment | [3] | (160) | |||||
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 | [4] | (4,224) | |||||
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 | [5] | (287) | |||||
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 | [6] | 713 | |||||
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 | [7] | (6,203) | |||||
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 | [4] | 0 | [1] | |||
Other Real Estate Owned | 0 | [5] | 0 | [2] | |||
Mortgage servicing rights | 0 | [6] | 0 | [3] | |||
Loans held for sale | [7] | 0 | |||||
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 | [4] | 0 | [1] | |||
Other Real Estate Owned | 0 | [5] | 0 | [2] | |||
Mortgage servicing rights | 0 | [6] | 0 | [3] | |||
Loans held for sale | [7] | 0 | |||||
Fair Value Inputs Level 3 [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Loans receivable | [1] | 430,162 | |||||
Other Real Estate Owned | [2] | 137,784 | |||||
Mortgage servicing rights | [3] | $ 26,330 | |||||
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 | [4] | 392,493 | |||||
Other Real Estate Owned | [5] | 154,639 | |||||
Mortgage servicing rights | [6] | 26,135 | |||||
Loans held for sale | [7] | $ 64,945 | |||||
[1] | Consists mainly of impaired commercial and construction loans. The impairments were generally measured based on the fair value of the underlying collateral. The fair values were derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable. | ||||||
[2] | The fair values were derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. | ||||||
[3] | Fair value adjustments to mortgage servicing rights were mainly due to assumptions associated with mortgage 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 6.17%, Discount Rate 11.20%. | ||||||
[4] | Consists mainly of impaired commercial and construction loans. The impairments were generally measured based on the fair value of the collateral. The fair values were derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable. | ||||||
[5] | The fair values were derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. | ||||||
[6] | Fair value adjustments to mortgage servicing rights were mainly due to assumptions associated with mortgage prepayment rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate 5.89%, Discount Rate 11.23%. | ||||||
[7] | The value of these loans was primarily derived from external appraisals, adjusted for specific characteristics of the loans. |
FAIR VALUE - Impairment of V141
FAIR VALUE - Impairment of Valuation Adjustments were Recorded for Assets Recognized at Fair Value (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Repayment rate used for the calculation of mortgage servicing rights value | 15.20% | 16.40% | ||
Discount rate used for calculation of mortgage servicing rights value | 14.50% | 14.00% | ||
Loans held for sale | [1] | $ 91,375 | $ 32,980 | |
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 | 5.89% | 6.17% | ||
Discount rate used for calculation of mortgage servicing rights value | 11.23% | 11.20% | ||
[1] | During the first quarter of 2018, the Corporation transferred $57.2 million (net of fair value write-downs of $9.7 million) in non-performing loans to held for sale. Loans transferred to held for sale consisted of a $30.0 million non-performing construction loan (net of a $5.1 million fair value write-down) and two non-performing commercial mortgage loans totaling $27.2 million (net of fair value write-downs of $4.6 million). |
FAIR VALUE - Fair Value (Detail
FAIR VALUE - Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Assets: | ||||
Investment securities available for sale | $ 1,815,504 | $ 1,891,016 | ||
Held To Maturity Securities | 150,627 | |||
Other equity securities | 400 | |||
Less: allowance for loan and lease losses | (225,856) | (231,843) | ||
Liabilities: | ||||
Other borrowings | 184,150 | 208,635 | ||
Fair Value Inputs Level 1 [Member] | ||||
Assets: | ||||
Other investments | 413 | |||
Fair Value Inputs Level 2 [Member] | ||||
Assets: | ||||
Other investments | 0 | |||
Fair Value Inputs Level 3 [Member] | ||||
Assets: | ||||
Loans held for investment, net of allowance | [1] | $ 430,162 | ||
Other investments | 0 | |||
Carrying Reported Amount Fair Value Disclosure [Member] | ||||
Assets: | ||||
Cash and due from banks and money market investments | 843,824 | 716,395 | ||
Investment securities available for sale | 1,815,504 | 1,891,016 | ||
Held To Maturity Securities | 150,486 | 150,627 | ||
Other equity securities | 43,119 | 43,119 | ||
Loans held for sale | 91,375 | 32,980 | ||
Loans, held for investment | 8,695,890 | 8,850,476 | ||
Less: allowance for loan and lease losses | (225,856) | (231,843) | ||
Loans held for investment, net of allowance | 8,470,034 | 8,618,633 | ||
Derivatives, included in assets | 668 | 312 | ||
Other investments | 413 | |||
Liabilities: | ||||
Deposits | 9,066,465 | 9,022,631 | ||
Securities sold under agreements to repurchase | 200,000 | 300,000 | ||
Advances from FHLB | 715,000 | 715,000 | ||
Other borrowings | 184,150 | 208,635 | ||
Derivatives, included in liabilities | 735 | 324 | ||
Estimate Of Fair Value Fair Value Disclosure [Member] | ||||
Assets: | ||||
Cash and due from banks and money market investments | 843,824 | 716,395 | ||
Investment securities available for sale | 1,815,504 | 1,891,016 | ||
Held To Maturity Securities | 134,856 | 131,032 | ||
Other equity securities | 43,119 | 43,119 | ||
Loans held for sale | 91,736 | 34,979 | ||
Loans held for investment, net of allowance | 8,262,128 | 8,372,865 | ||
Derivatives, included in assets | 668 | 312 | ||
Other investments | 413 | |||
Liabilities: | ||||
Deposits | 9,070,024 | 9,026,600 | ||
Securities sold under agreements to repurchase | 226,076 | 325,913 | ||
Advances from FHLB | 701,079 | 707,272 | ||
Other borrowings | 171,378 | 189,424 | ||
Derivatives, included in liabilities | 735 | 324 | ||
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 1 [Member] | ||||
Assets: | ||||
Cash and due from banks and money market investments | 843,824 | 716,395 | ||
Investment securities available for sale | 57,169 | 7,819 | ||
Held To Maturity Securities | 0 | 0 | ||
Other equity securities | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Loans held for investment, net of allowance | 0 | 0 | ||
Derivatives, included in assets | 0 | 0 | ||
Liabilities: | ||||
Deposits | 0 | 0 | ||
Securities sold under agreements to repurchase | 0 | 0 | ||
Advances from FHLB | 0 | 0 | ||
Other borrowings | 0 | 0 | ||
Derivatives, included in liabilities | 0 | 0 | ||
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 2 [Member] | ||||
Assets: | ||||
Cash and due from banks and money market investments | 0 | 0 | ||
Investment securities available for sale | 1,739,527 | 1,863,342 | ||
Held To Maturity Securities | 0 | 0 | ||
Other equity securities | 43,119 | 43,119 | ||
Loans held for sale | 26,791 | 25,237 | ||
Loans held for investment, net of allowance | 0 | 0 | ||
Derivatives, included in assets | 668 | 312 | ||
Liabilities: | ||||
Deposits | 9,070,024 | 9,026,600 | ||
Securities sold under agreements to repurchase | 226,076 | 325,913 | ||
Advances from FHLB | 701,079 | 707,272 | ||
Other borrowings | 0 | 0 | ||
Derivatives, included in liabilities | 735 | 324 | ||
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 | 18,808 | 19,855 | ||
Held To Maturity Securities | 134,856 | 131,032 | ||
Other equity securities | 0 | 0 | ||
Loans held for sale | 64,945 | 9,742 | ||
Loans held for investment, net of allowance | 8,262,128 | 8,372,865 | ||
Derivatives, included in assets | 0 | 0 | ||
Liabilities: | ||||
Deposits | 0 | 0 | ||
Securities sold under agreements to repurchase | 0 | 0 | ||
Advances from FHLB | 0 | 0 | ||
Other borrowings | 171,378 | 189,424 | ||
Derivatives, included in liabilities | $ 0 | $ 0 | ||
[1] | Consists mainly of impaired commercial and construction loans. The impairments were generally measured based on the fair value of the underlying collateral. The fair values were derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable. |
REVENUE FROM CONTRACT WITH CUST
REVENUE FROM CONTRACT WITH CUSTOMERS (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |||
Segment Reporting Information [Line Items] | |||||
Interest Income Expense Net | $ 124,693 | [1] | $ 122,549 | ||
Service Charges And Fees On Deposits | 5,088 | ||||
Insurance commission income | 3,355 | ||||
Other fees and commissions credit cards | 5,094 | ||||
Other fees | 2,254 | ||||
Other income not in scope of Topic 606 | [1] | 6,002 | |||
Merchant Related Income | 991 | ||||
Total non interest income | 22,784 | 8,243 | |||
Revenues | 147,477 | ||||
contract liability | $ 2,300 | $ 2,400 | |||
Term Of Contract | 10 years | ||||
Mortgage Banking [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest Income Expense Net | $ 21,205 | [1] | 22,260 | ||
Service Charges And Fees On Deposits | 0 | ||||
Insurance commission income | 0 | ||||
Other fees and commissions credit cards | 0 | ||||
Other fees | 33 | ||||
Other income not in scope of Topic 606 | [1] | 4,051 | |||
Merchant Related Income | 0 | ||||
Total non interest income | 4,084 | 3,586 | |||
Revenues | 25,289 | ||||
Consumer Retail Banking [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest Income Expense Net | [1] | 51,049 | |||
Service Charges And Fees On Deposits | 3,165 | ||||
Insurance commission income | 3,144 | ||||
Other fees and commissions credit cards | 4,169 | ||||
Other fees | 800 | ||||
Other income not in scope of Topic 606 | [1] | 7 | |||
Merchant Related Income | 645 | ||||
Total non interest income | 11,930 | ||||
Revenues | 62,979 | ||||
Commercial And Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest Income Expense Net | 18,920 | [1] | 20,093 | ||
Service Charges And Fees On Deposits | 1,092 | ||||
Insurance commission income | 0 | ||||
Other fees and commissions credit cards | 255 | ||||
Other fees | 300 | ||||
Other income not in scope of Topic 606 | [1] | (549) | |||
Merchant Related Income | 161 | ||||
Total non interest income | 1,259 | 1,237 | |||
Revenues | 20,179 | ||||
Treasury And Investments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest Income Expense Net | 12,518 | [1] | 18,184 | ||
Service Charges And Fees On Deposits | 0 | ||||
Insurance commission income | 0 | ||||
Other fees and commissions credit cards | 0 | ||||
Other fees | 0 | ||||
Other income not in scope of Topic 606 | [1] | 2,378 | |||
Merchant Related Income | 0 | ||||
Total non interest income | 2,378 | (12,170) | |||
Revenues | 14,896 | ||||
United States Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest Income Expense Net | 13,392 | [1] | 11,468 | ||
Service Charges And Fees On Deposits | 134 | ||||
Insurance commission income | 12 | ||||
Other fees and commissions credit cards | 128 | ||||
Other fees | 1,039 | ||||
Other income not in scope of Topic 606 | [1] | 95 | |||
Merchant Related Income | 0 | ||||
Total non interest income | 1,408 | 505 | |||
Revenues | 14,800 | ||||
Virgin Islands Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest Income Expense Net | 7,609 | [1] | 8,618 | ||
Service Charges And Fees On Deposits | 697 | ||||
Insurance commission income | 199 | ||||
Other fees and commissions credit cards | 542 | ||||
Other fees | 82 | ||||
Other income not in scope of Topic 606 | [1] | 20 | |||
Merchant Related Income | 185 | ||||
Total non interest income | 1,725 | $ 1,706 | |||
Revenues | $ 9,334 | ||||
[1] | Most of the Corporation’s revenue is not within the scope of ASU No. 2014-09, Revenue from Contracts with Customers. The guidance explicitly excludes net interest income from financial assets and liabilities, as well as other noninterest income from loans, leases, investment securities and derivative financial instruments. |
REVENUE FROM CONTACTS WITH CUST
REVENUE FROM CONTACTS WITH CUSTOMERS - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
entity wide | ||
contract liability | $ 2,300 | $ 2,400 |
Term Of Contract | 10 years | |
Decrease in contract liability | $ 100 | |
Revenues | 147,477 | |
insurance commission income [Member] | ||
entity wide | ||
Revenues | $ 2,100 |
SUPPLEMENTAL CASH FLOW INFOR145
SUPPLEMENTAL CASH FLOW INFORMATION - Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash paid for: | ||
Interest on borrowings | $ 24,353 | $ 22,001 |
Income tax | 0 | 0 |
Non-cash investing and financing activities: | ||
Additions to other real estate owned | 15,867 | 13,597 |
Additions to auto repossesions | 17,508 | 11,516 |
Loan securitizations | 54,382 | 60,525 |
Capitalization of servicing assets | 887 | 875 |
Loans held for investment transferred to held for sale | 67,937 | 0 |
Property Plant And Equipment Transferred To Other Assets | $ 0 | $ 1,185 |
SEGMENT INFORMATIO - Informatio
SEGMENT INFORMATIO - Information about reportable segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||
Interest income | $ 149,418 | $ 145,228 | |
Net (charge) credit for transfer of funds | 0 | 0 | |
Interest expense | (24,725) | (22,679) | |
Net interest income | 124,693 | [1] | 122,549 |
(Provision) release for loan and lease losses | (20,544) | (25,442) | |
Non-interest income (loss) | 22,784 | 8,243 | |
Direct non-interest expenses | (57,861) | (62,480) | |
Segment income | 69,072 | 42,870 | |
Average earnings assets | 11,244,444 | 10,994,534 | |
Mortgage Banking [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 32,321 | 33,958 | |
Net (charge) credit for transfer of funds | (11,116) | (11,698) | |
Interest expense | 0 | 0 | |
Net interest income | 21,205 | [1] | 22,260 |
(Provision) release for loan and lease losses | (381) | (8,936) | |
Non-interest income (loss) | 4,084 | 3,586 | |
Direct non-interest expenses | (7,720) | (9,879) | |
Segment income | 17,188 | 7,031 | |
Average earnings assets | 2,293,482 | 2,500,750 | |
Consumer Retail Banking [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 42,550 | 42,917 | |
Net (charge) credit for transfer of funds | 15,222 | 4,909 | |
Interest expense | (6,723) | (5,900) | |
Net interest income | 51,049 | 41,926 | |
(Provision) release for loan and lease losses | (5,793) | (7,142) | |
Non-interest income (loss) | 11,930 | 13,379 | |
Direct non-interest expenses | (26,901) | (27,418) | |
Segment income | 30,285 | 20,745 | |
Average earnings assets | 1,566,795 | 1,775,931 | |
Commercial And Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 32,337 | 29,411 | |
Net (charge) credit for transfer of funds | (13,417) | (9,318) | |
Interest expense | 0 | 0 | |
Net interest income | 18,920 | [1] | 20,093 |
(Provision) release for loan and lease losses | (6,800) | (8,055) | |
Non-interest income (loss) | 1,259 | 1,237 | |
Direct non-interest expenses | (6,714) | (9,367) | |
Segment income | 6,665 | 3,908 | |
Average earnings assets | 2,632,220 | 2,548,936 | |
Treasury And Investments [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 14,254 | 13,757 | |
Net (charge) credit for transfer of funds | 9,974 | 16,233 | |
Interest expense | (11,710) | (11,806) | |
Net interest income | 12,518 | [1] | 18,184 |
(Provision) release for loan and lease losses | 0 | 0 | |
Non-interest income (loss) | 2,378 | (12,170) | |
Direct non-interest expenses | (948) | (1,207) | |
Segment income | 13,948 | 4,807 | |
Average earnings assets | 2,470,830 | 2,157,882 | |
United States Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 19,527 | 15,789 | |
Net (charge) credit for transfer of funds | (663) | (126) | |
Interest expense | (5,472) | (4,195) | |
Net interest income | 13,392 | [1] | 11,468 |
(Provision) release for loan and lease losses | (1,459) | 35 | |
Non-interest income (loss) | 1,408 | 505 | |
Direct non-interest expenses | (7,956) | (7,859) | |
Segment income | 5,385 | 4,149 | |
Average earnings assets | 1,709,918 | 1,393,215 | |
Virgin Islands Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest income | 8,429 | 9,396 | |
Net (charge) credit for transfer of funds | 0 | 0 | |
Interest expense | (820) | (778) | |
Net interest income | 7,609 | [1] | 8,618 |
(Provision) release for loan and lease losses | (6,111) | (1,344) | |
Non-interest income (loss) | 1,725 | 1,706 | |
Direct non-interest expenses | (7,622) | (6,750) | |
Segment income | (4,399) | 2,230 | |
Average earnings assets | $ 571,199 | $ 617,820 | |
[1] | Most of the Corporation’s revenue is not within the scope of ASU No. 2014-09, Revenue from Contracts with Customers. The guidance explicitly excludes net interest income from financial assets and liabilities, as well as other noninterest income from loans, leases, investment securities and derivative financial instruments. |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Reportable Segment Financial Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Net Income (Loss): | |||
Segment income | $ 69,072 | $ 42,870 | |
Other operating expenses | [1] | (28,166) | (25,402) |
(Loss) income before income taxes | 40,906 | 17,468 | |
Income tax benefit (expense) | (7,758) | 8,073 | |
Net income | 33,148 | 25,541 | |
Average assets: | |||
Total average earning assets for segments | 11,244,444 | 10,994,534 | |
Average non-earning assets | 947,460 | 886,492 | |
Total consolidated average assets | $ 12,191,904 | $ 11,881,026 | |
[1] | Expenses pertaining to corporate administrative functions that support the operating segment but are not specifically attributable to or managed by any segment are not included in the reported financial results of the operating segments. The unallocated corporate expenses include certain general and administrative expenses and related depreciation and amortization expenses. |
REGULATORY MATTERS, COMMITME148
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jul. 31, 2013 | Mar. 31, 2018 | Dec. 31, 2017 | Nov. 21, 2017 | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Commitments | $ 1,200 | |||
Banking Organizations Basel Advanced Approach Asset Requirement | $ 250,000 | |||
Foreign Subsidiaries Basel Advanced Approach Asset Requirement | $ 10,000 | |||
Credit Cards [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Commitments | 650.5 | |||
Commercial And Financial Standby Letters Of Credit [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Commitments | $ 43.3 | |||
Basel III [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Capital Conservation Buffer | 2.50% | |||
Common Equity Tier1 Capital To Risk Weight Assets Ratio | 4.50% | |||
Common Equity Tier 1 Capital To Risk Weight Assets Ratio Plus Common Equity Tier 1 Capital Conservation Buffer | 7.00% | |||
Total Tier 1 Capital To Risk Weight Assets Ratio | 6.00% | |||
Total Tier 1 Capital To Risk Weight Assets Ratio Plus Common Equity Tier 1 Capital Conservation Buffer | 8.50% | |||
Total Tier 1 Capital And Tier 2 Capital To Risk Weight Assets Ratio | 8.00% | |||
Total Tier 1 Capital And Tier 2 Capital To Risk Weight Assets Ratio Plus Common Equity Tier 1 Capital Conservation Buffer | 10.50% | |||
Leverage Ratio | 4.00% | |||
Common Equity Tier 1 Capital Conservation Buffer First Year | 0.625% | |||
FirstBank [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Leverage ratio | 15.35% | 15.39% | ||
Tier 1 risk based capital ratio | 21.26% | 20.79% | ||
Total Risk Based Capital Ratio | 22.52% | 22.06% | ||
Tier 1 risk based capital ratio to be considered well capitalzed under PCA | 8.00% | 8.00% | ||
Total risk based capital to be considered well capitalized under PCA | 10.00% | 10.00% | ||
Leverage ratio to be considered well capitalized under PCA | 5.00% | 5.00% | ||
Common Equity Tier1 Capital To Risk Weight Assets Ratio | 17.70% | 17.70% |
REGULATORY MATTERS, COMMITME149
REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES- Regulatory Capital Positions (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Holding Company [Member] | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital | $ 1,990,146 | $ 1,989,873 |
Tier One Risk Based Capital | 1,701,946 | 1,675,282 |
Tier One Leverage Capital | 1,701,946 | 1,675,282 |
Capital Required For Capital Adequacy | 692,691 | 706,432 |
Tier One Risk Based Capital Required For Capital Adequacy | 519,518 | 529,824 |
Tier One Leverage Capital Required For Capital Adequacy | $ 480,078 | $ 477,643 |
Capital To Risk Weighted Assets | 22.98% | 22.53% |
Tier One Risk Based Capital To Risk Weighted Assets | 19.66% | 18.97% |
Tier One Leverage Capital To Average Assets | 14.18% | 14.03% |
Capital Required For Capital Adequacy To Risk Weighted Assets | 8.00% | 8.00% |
Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 6.00% | 6.00% |
Tier One Leverage Capital Required For Capital Adequacy To Average Assets | 4.00% | 4.00% |
Common Equity Tier1 Capital To Risk Weight Assets Ratio | 19.24% | 18.96% |
Common Equity Tier 1 Capital To Risk Weight Assets | $ 1,665,842 | $ 1,674,164 |
Common Equity Tier 1 Capital To Risk Weight Assets Ratio Capital Adequacy | 4.50% | 4.50% |
Common Equity Tier 1 Capital To Risk Weight Assets Capital Adequacy | $ 389,639 | $ 397,368 |
FirstBank [Member] | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital | 1,950,261 | 1,947,627 |
Tier One Risk Based Capital | 1,840,690 | 1,835,445 |
Tier One Leverage Capital | 1,840,690 | 1,835,445 |
Capital Required For Capital Adequacy | 692,671 | 706,218 |
Tier One Risk Based Capital Required For Capital Adequacy | 519,503 | 529,663 |
Tier One Leverage Capital Required For Capital Adequacy | 479,527 | 477,056 |
Capital Required To Be Well Capitalized | 865,838 | 882,772 |
Tier One Risk Based Capital Required To Be Well Capitalized | $ 692,671 | $ 706,218 |
Capital To Risk Weighted Assets | 22.52% | 22.06% |
Tier One Risk Based Capital To Risk Weighted Assets | 21.26% | 20.79% |
Tier One Leverage Capital To Average Assets | 15.35% | 15.39% |
Capital Required For Capital Adequacy To Risk Weighted Assets | 8.00% | 8.00% |
Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 6.00% | 6.00% |
Tier One Leverage Capital Required For Capital Adequacy To Average Assets | 4.00% | 4.00% |
Capital Required To Be Well Capitalized To Risk Weighted Assets | 10.00% | 10.00% |
Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets | 8.00% | 8.00% |
Tier One Leverage Capital Required To Be Well Capitalized To Average Assets | 5.00% | 5.00% |
Tier One Leverage Capital Required To Be Well Capitalized | $ 599,408 | $ 596,320 |
Common Equity Tier1 Capital To Risk Weight Assets Ratio | 17.70% | 17.70% |
Common Equity Tier 1 Capital To Risk Weight Assets | $ 1,532,690 | $ 1,562,431 |
Common Equity Tier 1 Capital To Risk Weight Assets Ratio Capital Adequacy | 4.50% | 4.50% |
Common Equity Tier 1 Capital To Risk Weight Assets Capital Adequacy | $ 389,627 | $ 397,248 |
Common Equity Tier 1 Capital To Risk Weight Assets Well Capitalized | $ 562,795 | $ 573,802 |
Common Equity Tier 1 Capital To Risk Weight Assets Ratio Well Capitalized | 6.50% | 6.50% |
FIRST BANCORP. (Holding Comp150
FIRST BANCORP. (Holding Company Only) Financial Information - Statements of Financial Condition (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
ASSETS | |||
Cash and due from banks | $ 743,409 | $ 705,980 | $ 414,034 |
Money market investments | 100,415 | 10,415 | 10,088 |
Investment securities available for sale, at market: | |||
Other investment securities | 1,572,766 | 1,540,893 | |
Carrying Value Of Other Equity Security | 2,200 | 2,200 | |
Loans Receivable, net | 8,561,409 | 8,651,613 | |
Other assets | 443,784 | 461,491 | |
Total assets | 12,200,386 | 12,261,268 | |
Liabilities: | |||
Other borrowings | 184,150 | 208,635 | |
Accounts payable and other liabilities | 157,667 | 145,905 | |
Total liabilities | 10,323,282 | 10,392,171 | |
Stockholders Equity | 1,877,104 | 1,869,097 | $ 1,823,017 |
Total liabilities and stockholders' equity | 12,200,386 | 12,261,268 | |
Holding Company [Member] | |||
ASSETS | |||
Cash and due from banks | 16,866 | 20,864 | |
Money market investments | 6,111 | 6,111 | |
Investment securities available for sale, at market: | |||
Carrying Value Of Other Equity Security | 285 | 285 | |
Loans Receivable, net | 178 | 191 | |
Other assets | 5,671 | 3,799 | |
Total assets | 2,064,679 | 2,078,550 | |
Liabilities: | |||
Other borrowings | 184,150 | 208,635 | |
Accounts payable and other liabilities | 3,425 | 818 | |
Total liabilities | 187,575 | 209,453 | |
Stockholders Equity | 1,877,104 | 1,869,097 | |
Total liabilities and stockholders' equity | 2,064,679 | 2,078,550 | |
Holding Company [Member] | Investment In Banking Subsidiary [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | 2,015,111 | 2,028,641 | |
Holding Company [Member] | Non Banking Subsidiary [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | 14,933 | 12,400 | |
Holding Company [Member] | Statutory Trust One [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | 1,963 | 2,698 | |
Holding Company [Member] | Statutory Trust Two [Member] | |||
Investment securities available for sale, at market: | |||
Equity Method Investments | $ 3,561 | $ 3,561 |
FIRST BANCORP. (Holding Comp151
FIRST BANCORP. (Holding Company Only) Financial Information - Statements of Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income: | ||
Interest income on investment securities | $ 13,987 | $ 13,302 |
Other Interest And Dividend Income | 2,256 | 484 |
Expense: | ||
Gains Losses On Extinguishment Of Debt | 2,316 | 0 |
Segment income | 69,072 | 42,870 |
Income tax benefit (expense) | (7,758) | 8,073 |
Net income | 33,148 | 25,541 |
Other comprehensive income (loss), net of tax | (24,047) | 10,696 |
Comprehensive (loss) income | 9,101 | 36,237 |
Holding Company [Member] | ||
Income: | ||
Other Interest And Dividend Income | 5 | 5 |
Other income | 63 | 62 |
Total interest income | 21,652 | 1,997 |
Expense: | ||
Notes payable and other borrowings | 2,085 | 1,963 |
Other operating expenses | 596 | 967 |
Total operating expenses | 2,681 | 2,930 |
Gains Losses On Extinguishment Of Debt | 2,316 | 0 |
Segment income | 21,287 | (933) |
Equity in undistributed earnings (losses) of subsidiaries | 11,861 | 26,474 |
Net income | 33,148 | 25,541 |
Other comprehensive income (loss), net of tax | (24,047) | 10,696 |
Comprehensive (loss) income | 9,101 | 36,237 |
Investment In Banking Subsidiary [Member] | Holding Company [Member] | ||
Income: | ||
Dividend Income From Subsidiaries | $ 21,584 | $ 1,930 |