Income taxes (Tables)

6 Months Ended

Jun. 30, 2018

Schedule Of Deferred Tax Assets And Liabilities Table Text Block

			June 30, 2018
(In thousands)			PR		US		Total
Deferred tax assets:
Tax credits available for carryforward		$	16,500	$	7,859	$	24,359
Net operating loss and other carryforward available			119,578		739,724		859,302
Postretirement and pension benefits			82,886		-		82,886
Deferred loan origination fees			3,583		(348)		3,235
Allowance for loan losses			586,457		23,741		610,198
Deferred gains			-		2,733		2,733
Accelerated depreciation			1,300		7,461		8,761
FDIC-assisted transaction			108,327		-		108,327
Intercompany deferred (loss) gains			1,512		-		1,512
Difference in outside basis from pass-through entities			28,257		-		28,257
Other temporary differences			27,869		6,978		34,847
	Total gross deferred tax assets		976,269		788,148		1,764,417
Deferred tax liabilities:
Indefinite-lived intangibles			33,713		38,199		71,912
Unrealized net gain (loss) on trading and available-for-sale securities			15,949		(16,861)		(912)
Other temporary differences			10,735		845		11,580
	Total gross deferred tax liabilities		60,397		22,183		82,580
Valuation allowance			78,676		419,408		498,084
Net deferred tax asset		$	837,196	$	346,557	$	1,183,753
			December 31, 2017
(In thousands)			PR		US		Total
Deferred tax assets:
Tax credits available for carryforward		$	16,069	$	7,979	$	24,048
Net operating loss and other carryforward available			115,512		708,158		823,670
Postretirement and pension benefits			85,488		-		85,488
Deferred loan origination fees			3,669		958		4,627
Allowance for loan losses			603,462		20,708		624,170
Deferred gains			-		2,670		2,670
Accelerated depreciation			1,300		7,083		8,383
Intercompany deferred (loss) gains			224		-		224
Difference in outside basis from pass-through entities			30,424		-		30,424
Other temporary differences			25,084		6,901		31,985
	Total gross deferred tax assets		881,232		754,457		1,635,689
Deferred tax liabilities:
FDIC-assisted transaction			60,402		-		60,402
Indefinite-lived intangibles			31,973		33,009		64,982
Unrealized net gain (loss) on trading and available-for-sale securities			26,364		(7,961)		18,403
Other temporary differences			9,876		386		10,262
	Total gross deferred tax liabilities		128,615		25,434		154,049
Valuation allowance			67,263		380,561		447,824
Net deferred tax asset		$	685,354	$	348,462	$	1,033,816

Summary Of Income Tax Contingencies Text Block

(In millions)		2018		2017
Balance at January 1	$	7.3	$	7.4
Additions for tax positions - January through March		0.2		0.2
Balance at March 31	$	7.5	$	7.6
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	$	7.8	$	7.6

PUERTO RICO

Schedule Of Effective Income Tax Rate Reconciliation Table Text Block

		Quarters ended
		June 30, 2018				June 30, 2017
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax expense at statutory rates	$	97,977	39	%	$	51,464	39	%
Net benefit of tax exempt interest income		(22,407)	(9)			(18,841)	(14)
Deferred tax asset valuation allowance		4,186	2			5,064	4
Difference in tax rates due to multiple jurisdictions		(2,238)	(1)			(831)	(1)
Effect of income subject to preferential tax rate[1]		(103,008)	(41)			(3,493)	(3)
State and local taxes		1,718	1			1,585	1
Others		(4,788)	(2)			784	1
Income tax (benefit) expense	$	(28,560)	(11)	%	$	35,732	27	%
[1] For the quarter ended June 30, 2018, includes the impact of the Tax Closing Agreement entered into in connection with the Westernbank FDIC-assisted Transaction.

		Six months ended
		June 30, 2018				June 30, 2017
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax expense at statutory rates	$	142,234	39	%	$	100,585	39	%
Net benefit of tax exempt interest income		(45,400)	(12)			(36,845)	(14)
Deferred tax asset valuation allowance		11,412	3			10,120	4
Difference in tax rates due to multiple jurisdictions		(5,197)	(2)			(1,790)	(1)
Effect of income subject to preferential tax rate[1]		(106,056)	(29)			(6,512)	(2)
State and local taxes		3,081	1			2,864	1
Others		(6,479)	(2)			316	-
Income tax (benefit) expense	$	(6,405)	(2)	%	$	68,738	27	%
[1] For the six months ended June 30, 2018, includes the impact of the Tax Closing Agreement entered into in connection with the Westernbank FDIC-assisted Transaction.