Income taxes (Tables)

9 Months Ended

Sep. 30, 2017

Schedule Of Deferred Tax Assets And Liabilities Table Text Block

			September 30, 2017
(In thousands)			PR		US		Total
Deferred tax assets:
Tax credits available for carryforward		$	16,069	$	1,958	$	18,027
Net operating loss and other carryforward available			117,273		1,106,550		1,223,823
Postretirement and pension benefits			83,925		-		83,925
Deferred loan origination fees			3,768		1,480		5,248
Allowance for loan losses			616,572		38,524		655,096
Deferred gains			-		4,262		4,262
Accelerated depreciation			1,325		10,280		11,605
Intercompany deferred (loss) gains			(31)		-		(31)
Difference between the assigned values and the tax basis of assets and
	liabilities recognized in purchase business combinations		17,107		-		17,107
Other temporary differences			22,750		13,512		36,262
	Total gross deferred tax assets		878,758		1,176,566		2,055,324
Deferred tax liabilities:
FDIC-assisted transaction			58,009		-		58,009
Indefinite-lived intangibles			31,083		48,414		79,497
Unrealized net gain on trading and available-for-sale securities			31,127		(7,537)		23,590
Other temporary differences			9,429		585		10,014
	Total gross deferred tax liabilities		129,648		41,462		171,110
Valuation allowance			62,213		615,873		678,086
Net deferred tax asset		$	686,897	$	519,231	$	1,206,128
			December 31, 2016
(In thousands)			PR		US		Total
Deferred tax assets:
Tax credits available for carryforward		$	16,552	$	1,958	$	18,510
Net operating loss and other carryforward available			112,929		1,125,293		1,238,222
Postretirement and pension benefits			94,741		-		94,741
Deferred loan origination fees			4,335		2,287		6,622
Allowance for loan losses			628,127		20,980		649,107
Deferred gains			-		4,884		4,884
Accelerated depreciation			605		9,223		9,828
Intercompany deferred (loss) gains			2,496		-		2,496
Difference between the assigned values and the tax basis of assets and
	liabilities recognized in purchase business combinations		13,160		-		13,160
Other temporary differences			16,417		14,710		31,127
	Total gross deferred tax assets		889,362		1,179,335		2,068,697
Deferred tax liabilities:
FDIC-assisted transaction			58,363		-		58,363
Indefinite-lived intangibles			28,412		45,562		73,974
Unrealized net gain on trading and available-for-sale securities			30,334		(8,999)		21,335
Other temporary differences			7,892		585		8,477
	Total gross deferred tax liabilities		125,001		37,148		162,149
Valuation allowance			46,951		617,336		664,287
Net deferred tax asset		$	717,410	$	524,851	$	1,242,261

Summary Of Income Tax Contingencies Text Block

(In millions)		2017		2016
Balance at January 1	$	7.4	$	9.0
Additions for tax positions - January through March		0.2		0.2
Additions for tax positions taken in prior years - January through March		-		0.2
Balance at March 31	$	7.6	$	9.4
Additions for tax positions - April through June		0.3		0.3
Reduction as a result of settlements - April through June		(0.3)		-
Balance at June 30	$	7.6	$	9.7
Additions for tax positions - July through September		0.3		0.3
Additions for tax positions taken in prior years - July through September		-		0.1
Reduction as a result of lapse of statute of limitations - July through September		(0.9)		(3.0)
Balance at September 30	$	7.0	$	7.1

PUERTO RICO

Schedule Of Effective Income Tax Rate Reconciliation Table Text Block

		Quarters ended
		September 30, 2017				September 30, 2016
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax expense at statutory rates	$	272	39	%	$	24,434	39	%
Net benefit of tax exempt interest income		(19,563)	(2,803)			(15,620)	(25)
Deferred tax asset valuation allowance		5,142	737			5,698	9
Difference in tax rates due to multiple jurisdictions		189	27			(897)	(1)
Effect of income subject to preferential tax rate		(3,313)	(475)			6,364	10
Unrecognized tax benefits		(1,185)	(170)			(4,442)	(7)
State and local taxes		(64)	(9)			1,557	2
Others		(1,444)	(207)			(1,255)	(2)
Income tax (benefit) expense	$	(19,966)	(2,861)	%	$	15,839	25	%

		Nine months ended
		September 30, 2017				September 30, 2016
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax expense at statutory rates	$	100,857	39	%	$	117,525	39	%
Net benefit of tax exempt interest income		(56,408)	(22)			(47,094)	(16)
Deferred tax asset valuation allowance		15,262	6			14,407	5
Difference in tax rates due to multiple jurisdictions		(1,601)	(1)			(2,874)	(1)
Effect of income subject to preferential tax rate		(9,825)	(4)			(1,772)	(1)
Unrecognized tax benefits		(1,185)	-			(4,442)	(1)
State and local taxes		2,800	1			6,642	2
Others		(1,128)	-			(1,842)	(1)
Income tax expense	$	48,772	19	%	$	80,550	26	%