Income taxes (Tables)

6 Months Ended

Jun. 30, 2012

Schedule Of Deferred Tax Assets And Liabilities Table Text Block

(In thousands)			June 30, 2012		December 31, 2011
Deferred tax assets:
Tax credits available for carryforward		$	2,447	$	3,459
Net operating loss and other carryforward available			1,194,341		1,174,488
Postretirement and pension benefits			103,059		104,663
Deferred loan origination fees			6,931		6,788
Allowance for loan losses			600,478		605,105
Deferred gains			11,145		11,763
Accelerated depreciation			5,711		5,527
Intercompany deferred gains			4,099		4,344
Other temporary differences			34,019		27,341
	Total gross deferred tax assets		1,962,230		1,943,478
Deferred tax liabilities:
Differences between the assigned values and the tax bases of assets and liabilities
	recognized in purchase business combinations		34,709		32,293
Difference in outside basis between financial and tax reporting on sale of a business			8,155		20,721
FDIC-assisted transaction			28,153		142,000
Unrealized net gain on trading and available-for-sale securities			56,592		73,991
Deferred loan origination costs			4,303		4,277
Other temporary differences			7,345		6,187
	Total gross deferred tax liabilities		139,257		279,469
Valuation allowance			1,260,597		1,259,358
Net deferred tax asset		$	562,376	$	404,651

Summary Of Income Tax Contingencies Text Block

(In millions)		2012		2011
Balance at January 1	$	19.5	$	26.3
Additions for tax positions - January through March		0.7		2.2
Reduction as a result of settlements - January through March		-		(4.4)
Balance at March 31	$	20.2	$	24.1
Additions for tax positions - April through June		-		0.8
Additions for tax positions taken in prior years - April through June		-		2.1
Reduction for tax positions - April through June		(0.2)		-
Reduction for tax positions taken in prior years - April through June		(0.7)		-
Balance at June 30	$	19.3	$	27.0

PUERTO RICO

Schedule Of Effective Income Tax Rate Reconciliation Table Text Block

		Quarters ended
		June 30, 2012				June 30, 2011
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax at statutory rates	$	(3,646)	30	%	$	21,776	30	%
Net benefit of net tax exempt interest income		(3,739)	31			(15,206)	(21)
Deferred tax asset valuation allowance		(48)	-			3,945	5
Non-deductible expenses		5,726	(47)			5,400	7
Difference in tax rates due to multiple jurisdictions		(1,149)	9			(1,866)	(2)
Recognition of tax benefits from previous years[1]		-	-			(53,615)	(74)
Effect of income subject to preferential tax rate[2]		(73,298)	603			(100)	-
State taxes and others		(1,739)	14			1,566	2
Income tax (benefit) expense	$	(77,893)	640	%	$	(38,100)	(53)	%
[1] Represents the impact of the Ruling and Closing Agreement with the P.R. Treasury signed in June 2011.
[2] Includes the impact of the Closing Agreement with the P.R. Treasury signed in June 2012.

		Six months ended
		June 30, 2012				June 30, 2011
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax at statutory rates	$	15,734	30	%	$	68,984	30	%
Net benefit of net tax exempt interest income		(10,753)	(21)			(17,613)	(8)
Deferred tax asset valuation allowance		1,119	2			(1,360)	(1)
Non-deductible expenses		11,365	22			10,726	5
Difference in tax rates due to multiple jurisdictions		(4,356)	(8)			(4,344)	(2)
Initial adjustment in deferred tax due to change in tax rate		-	-			103,287	45
Recognition of tax benefits from previous years[1]		-	-			(53,615)	(23)
Effect of income subject to preferential tax rate[2]		(74,269)	(142)			(332)	-
State taxes and others		(541)	(1)			3,394	1
Income tax (benefit) expense	$	(61,701)	(118)	%	$	109,127	47	%
[1] Represents the impact of the Ruling and Closing Agreement with the P.R. Treasury signed in June 2011.
[2] Includes the impact of the Closing Agreement with the P.R. Treasury signed in June 2012.

		Six months ended
		June 30, 2012				June 30, 2011
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax at statutory rates	$	15,734	30	%	$	68,984	30	%
Net benefit of net tax exempt interest income		(10,753)	(21)			(17,613)	(8)
Deferred tax asset valuation allowance		1,119	2			(1,360)	(1)
Non-deductible expenses		11,365	22			10,726	5
Difference in tax rates due to multiple jurisdictions		(4,356)	(8)			(4,344)	(2)
Initial adjustment in deferred tax due to change in tax rate		-	-			103,287	45
Recognition of tax benefits from previous years[1]		-	-			(53,615)	(23)
Effect of income subject to preferential tax rate[2]		(74,269)	(142)			(332)	-
State taxes and others		(541)	(1)			3,394	1
Income tax (benefit) expense	$	(61,701)	(118)	%	$	109,127	47	%
[1] Represents the impact of the Ruling and Closing Agreement with the P.R. Treasury signed in June 2011.
[2] Includes the impact of the Closing Agreement with the P.R. Treasury signed in June 2012.