INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of income tax expense are summarized below for the indicated periods:

Year Ended December 31,

2022

2021

2020

(In thousands)

Current income tax expense

$

88,296

$

28,469

$

18,421

Deferred income tax expense:

 Reversal of deferred tax asset valuation allowance

-

-

(8,000)

 Other deferred income tax expense

54,216

118,323

3,629

Total income tax expense

$

142,512

$

146,792

$

14,050

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The differences between the income tax expense applicable to income before the provision for income taxes and the amount

computed by applying the statutory tax rate in Puerto Rico were as follows for the indicated periods:

Year Ended December 31, 

2022

2021

2020

Amount

% of Pretax

Income

Amount

% of Pretax

Income

Amount

% of Pretax

Income

(Dollars in thousands)

Computed income tax at statutory rate

$

167,844

37.5

%

$

160,431

37.5

%

$

43,621

37.5

%

Federal and state taxes

10,268

2.2

%

7,014

1.6

%

4,944

4.2

%

Benefit of net exempt income

(31,266)

(7.0)

%

(20,717)

(4.8)

%

(26,780)

(23.0)

%

Disallowed NOL carryforward resulting from net exempt income

14,221

3.2

%

8,791

2.0

%

9,054

7.8

%

Deferred tax valuation allowance

(8,410)

(1.9)

%

(13,572)

(3.2)

%

(12,095)

(10.4)

%

Share-based compensation windfall

(1,492)

(0.3)

%

(1,044)

(0.2)

%

157

0.1

%

Other permanent differences

(7,647)

(1.7)

%

(1,185)

(0.3)

%

(387)

(0.3)

%

Tax return to provision adjustments

(519)

(0.1)

%

(406)

(0.1)

%

597

0.5

%

Other-net

(487)

(0.1)

%

7,480

1.7

%

(5,061)

(4.3)

%

 Total income tax expense 

$

142,512

31.8

%

$

146,792

34.2

%

$

14,050

12.1

%

Schedule of significant components Deferred Tax Assets and Liabilities [Table Text Block]

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for

financial reporting purposes and their tax bases. Significant components of the Corporation's deferred tax assets and liabilities as of

December 31, 2022 and 2021 were as follows:

December 31, 

2022

2021

(In thousands)

Deferred tax asset:

 NOL and capital losses carryforward 

$

72,485

$

137,860

 Allowance for credit losses

104,014

105,917

 Alternative Minimum Tax credits available for carryforward

40,823

37,361

 Unrealized loss on OREO valuation

6,462

7,703

 Settlement payment-closing agreement

7,031

7,031

 Legal and other reserves

6,345

4,576

 Reserve for insurance premium cancellations

781

881

 Differences between the assigned values and tax bases of assets

 and liabilities recognized in purchase business combinations

5,665

8,926

 Unrealized loss on available-for-sale debt securities, net

100,776

14,181

 Other

7,722

4,420

 Total gross deferred tax assets

$

352,104

$

328,856

Deferred tax liabilities:

 Servicing assets

9,786

10,510

 Pension Plan assets

719

2,035

 Other

509

506

 Total gross deferred tax liabilities

11,014

13,051

Valuation allowance

(185,506)

(107,323)

 Net deferred tax asset

$

155,584

$

208,482