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Income taxes (Tables)

12 Months Ended

Dec. 31, 2018

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

(In thousands)		2018		2017		2016
Current income tax expense:
Puerto Rico	$	126,700	$	17,356	$	11,031
Federal and States		6,841		6,046		7,059
Subtotal		133,541		23,402		18,090
Deferred income tax expense (benefit):
Puerto Rico		(62,601)		31,132		36,423
Federal and States		20,953		7,938		24,271
Adjustment for enacted changes in income tax laws		27,686		168,358		-
Subtotal		(13,962)		207,428		60,694
Total income tax expense	$	119,579	$	230,830	$	78,784

Schedule Of Deferred Tax Assets And Liabilities Table Text Block

			December 31, 2018
(In thousands)			PR		US		Total
Deferred tax assets:
Tax credits available for carryforward		$	15,900	$	7,757	$	23,657
Net operating loss and other carryforward available			116,154		720,933		837,087
Postretirement and pension benefits			83,390		-		83,390
Deferred loan origination fees			3,216		(1,280)		1,936
Allowance for loan losses			516,643		18,612		535,255
Deferred gains			-		2,551		2,551
Accelerated depreciation			1,963		5,786		7,749
FDIC-assisted transaction			95,851		-		95,851
Intercompany deferred (loss) gains			1,518		-		1,518
Difference in outside basis from pass-through entities			20,209		-		20,209
Other temporary differences			24,957		7,522		32,479
	Total gross deferred tax assets		879,801		761,881		1,641,682
Deferred tax liabilities:
Indefinite-lived intangibles			34,081		39,597		73,678
Unrealized net gain (loss) on trading and available-for-sale securities			23,823		(12,783)		11,040
Other temporary differences			10,579		1,109		11,688
	Total gross deferred tax liabilities		68,483		27,923		96,406
Valuation allowance			89,852		406,455		496,307
Net deferred tax asset		$	721,466	$	327,503	$	1,048,969
			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 Operating Loss Carryforwards [Table Text Block]

(In thousands)
2019	$	662
2024		10,125
2025		13,516
2026		11,126
2027		29,021
2028		327,166
2029		99,182
2030		105,048
2031		94,434
2032		16,694
2033		96
2034		78,632
2037		7,489
2038		1,642
	$	794,833

Summary Of Income Tax Contingencies Text Block

(In millions)
Balance at January 1, 2017	$	7.4
Additions for tax positions related to 2017		1.1
Reduction as a result of lapse of statute of limitations		(0.9)
Reduction as a result of settlements		(0.3)
Balance at December 31, 2017	$	7.3
Additions for tax positions related to 2018		1.1
Reduction as a result of lapse of statute of limitations		(1.2)
Balance at December 31, 2018	$	7.2

PUERTO RICO

Schedule Of Effective Income Tax Rate Reconciliation Table Text Block

			2018				2017				2016
(In thousands)			Amount	% of pre-tax income			Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax at statutory rates		$	287,717	39	%	$	132,020	39	%	$	114,792	39	%
Benefit of net tax exempt interest income			(97,199)	(13)			(76,815)	(23)			(63,053)	(22)
Effect of income subject to preferential tax rate[1]			(111,738)	(15)			(13,104)	(4)			11,155	4
Deferred tax asset valuation allowance			27,336	4			20,882	6			16,585	6
Difference in tax rates due to multiple jurisdictions			(16,324)	(3)			(2,217)	(1)			(4,092)	(1)
Adjustment in net deferred tax due to change in tax law			27,686	4			168,358	50			-	-
Unrecognized tax benefits			(1,621)	-			(1,185)	-			(4,442)	(2)
State and local taxes			8,772	1			4,123	1			9,081	3
Others			(5,050)	(1)			(1,232)	-			(1,242)	-
Income tax expense		$	119,579	16	%	$	230,830	68	%	$	78,784	27	%
[1] For the year ended December 31,2018, includes the impact of the Tax Closing Agreement entered into in connection with the Westernbank FDIC-assisted Transaction.

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- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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