Income taxes (Tables)

9 Months Ended

Sep. 30, 2012

Schedule Of Deferred Tax Assets And Liabilities Table Text Block

(In thousands)			September 30, 2012		December 31, 2011
Deferred tax assets:
Tax credits available for carryforward		$	3,633	$	3,459
Net operating loss and other carryforward available			1,195,338		1,174,488
Postretirement and pension benefits			102,796		104,663
Deferred loan origination fees			6,813		6,788
Allowance for loan losses			599,030		605,105
Deferred gains			10,836		11,763
Accelerated depreciation			5,798		5,527
Intercompany deferred gains			3,792		4,344
Other temporary differences			35,972		27,661
	Total gross deferred tax assets		1,964,008		1,943,798
Deferred tax liabilities:
Differences between the assigned values and the tax bases of assets and liabilities
	recognized in purchase business combinations		35,906		32,293
Difference in outside basis between financial and tax reporting on sale of a business			8,155		20,721
FDIC-assisted transaction			57,293		142,000
Unrealized net gain on trading and available-for-sale securities			55,833		73,991
Deferred loan origination costs			3,273		4,277
Other temporary differences			7,252		6,507
	Total gross deferred tax liabilities		167,712		279,789
Valuation allowance			1,261,594		1,259,358
Net deferred tax asset		$	534,702	$	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
Additions for tax positions - July through September		0.2		0.3
Reduction as a result of lapse of statute of limitations - July through September		(6.3)		(6.0)
Balance at September 30	$	13.2	$	21.3

PUERTO RICO

Schedule Of Effective Income Tax Rate Reconciliation Table Text Block

		Quarters ended
		September 30, 2012				September 30, 2011
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax at statutory rates	$	18,772	30	%	$	9,921	30	%
Net benefit of net tax exempt interest income		(7,625)	(12)			(7,779)	(23)
Deferred tax asset valuation allowance		1,611	3			1,473	4
Non-deductible expenses		5,817	9			5,475	17
Difference in tax rates due to multiple jurisdictions		(250)	-			(1,542)	(5)
Effect of income subject to preferential tax rate[1]		7,662	12			(79)	-
Unrecognized tax benefits		(8,985)	(14)			(750)	(2)
Others		(1,618)	(3)			(1,182)	(4)
Income tax expense	$	15,384	25	%	$	5,537	17	%
[1] Includes the adjustment related to the Closing Agreement with the P.R. Treasury signed in June 2012.

		Nine months ended
		September 30, 2012				September 30, 2011
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax at statutory rates	$	34,505	30	%	$	78,904	30	%
Net benefit of net tax exempt interest income		(18,378)	(16)			(25,392)	(10)
Deferred tax asset valuation allowance		2,730	2			113	-
Non-deductible expenses		17,182	15			16,201	6
Difference in tax rates due to multiple jurisdictions		(4,606)	(4)			(5,884)	(2)
Initial adjustment in deferred tax due to change in tax rate		-	-			103,287	39
Recognition of tax benefits from previous years[1]		-	-			(53,615)	(20)
Effect of income subject to preferential tax rate[2]		(66,607)	(58)			(411)	-
Unrecognized tax benefits		(8,985)	(8)			(5,160)	(2)
Others		(2,158)	(1)			6,621	3
Income tax (benefit) expense	$	(46,317)	(40)	%	$	114,664	44	%
[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 as adjusted as of September 30, 2012.

		Quarters ended
		September 30, 2012				September 30, 2011
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax at statutory rates	$	18,772	30	%	$	9,921	30	%
Net benefit of net tax exempt interest income		(7,625)	(12)			(7,779)	(23)
Deferred tax asset valuation allowance		1,611	3			1,473	4
Non-deductible expenses		5,817	9			5,475	17
Difference in tax rates due to multiple jurisdictions		(250)	-			(1,542)	(5)
Effect of income subject to preferential tax rate[1]		7,662	12			(79)	-
Unrecognized tax benefits		(8,985)	(14)			(750)	(2)
Others		(1,618)	(3)			(1,182)	(4)
Income tax expense	$	15,384	25	%	$	5,537	17	%
[1] Includes the adjustment related to the Closing Agreement with the P.R. Treasury signed in June 2012.

		Nine months ended
		September 30, 2012				September 30, 2011
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax at statutory rates	$	34,505	30	%	$	78,904	30	%
Net benefit of net tax exempt interest income		(18,378)	(16)			(25,392)	(10)
Deferred tax asset valuation allowance		2,730	2			113	-
Non-deductible expenses		17,182	15			16,201	6
Difference in tax rates due to multiple jurisdictions		(4,606)	(4)			(5,884)	(2)
Initial adjustment in deferred tax due to change in tax rate		-	-			103,287	39
Recognition of tax benefits from previous years[1]		-	-			(53,615)	(20)
Effect of income subject to preferential tax rate[2]		(66,607)	(58)			(411)	-
Unrecognized tax benefits		(8,985)	(8)			(5,160)	(2)
Others		(2,158)	(1)			6,621	3
Income tax (benefit) expense	$	(46,317)	(40)	%	$	114,664	44	%
[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 as adjusted as of September 30, 2012.