INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes [Abstract]

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

		Year Ended December 31,
		2014		2013		2012
		(In thousands)
Current income tax expense	$	(5,361)	$	(7,947)	$	(5,357)
Deferred income tax benefit (expense)		306,010		2,783		(575)
Total income tax benefit (expense)	$	300,649	$	(5,164)	$	(5,932)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	The differences between the income tax expense applicable to income before the provision for income taxes and the
	amount computed by applying the statutory tax rate in Puerto Rico were as follows:
		Year Ended December 31,
		2014				2013				2012
		Amount		% of Pretax Income		Amount		% of Pretax Income		Amount		% of Pretax Income
		(Dollars in thousands)
Computed income tax at
statutory rate		$	(35,738)		(39.0)%	$	62,136		39.0%	$	(10,714)		(30.0)%
Federal and state taxes			(117)		(0.1)%		(136)		(0.0)%		-		-
Adjustment in deferred tax due
to change in tax rate			(346)		(0.4)%		106,717		67.0%		-		-
Benefit of net exempt income			15,202		17.0%		(13,320)		(8.4)%		(3,627)		(10.1)%
National receipts tax, net			628		0.7%		552		0.3%		-		-
Nontax deductible expenses			(193)		(0.2)%		(146)		(0.1)%		(2,417)		(6.8)%
(Decrease) increase in
unrecognized tax benefits,
including interest			1,763		2.0%		(3,218)		(2.0)%		(238)		(0.7)%
Recognition of unrecognized tax
Deferred tax valuation allowance			318,380		347.0%		(157,449)		(98.8)%		9,602		26.9%
Other-net			1,070		1.2%		(300)		(0.2)%		1,462		4.1%
Total income tax
benefit (expense)		$	300,649		328.2%	$	(5,164)		(3.2)%	$	(5,932)		(16.6)%

Schedule of significant components Deferred Tax Assets and Liabilities [Table Text Block]

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Significant components of the Corporation's deferred tax assets and liabilities as of December 31, 2014 and 2013 were as follows:
		December 31,
		2014		2013
		(In thousands)
Deferred tax asset:
Net operating loss and charitable contribution carryforward available	$	387,388	$	373,253
Allowance for loan and lease losses		85,048		108,811
Tax credits available for carryforward		11,659		7,616
Unrealized loss on OREO valuation		11,517		13,104
Unrealized net loss on equity investment		7,752		12,273
Settlement payment-closing agreement		7,313		7,313
Legal reserve		3,239		3,285
Impairment on investment		3,212		2,409
Reserve for insurance premium cancellations		560		687
Unrealized losses on derivatives activities		58		1,415
Unrealized loss on available-for-sale securities, net		-		337
Other		9,848		8,736
Gross deferred tax assets		527,594		539,239
Less: Valuation allowance		(204,587)		(522,708)
Total deferred tax assets, net of valuation allowance		323,007		16,531
Deferred tax liabilities:
Unrealized gain on available-for-sale securities, net		1,091		-
Differences between the assigned values and tax bases of asset
and liabilities recognized in purchase business combinations		811		1,034
Unrealized gain on other investments		468		625
Other		7,593		7,228
Gross deferred tax liabilities		9,963		8,887
Net deferred tax assets	$	313,044	$	7,644

Schedule of reconciliation of change in Unrecognized Tax Benefits [Table Text Block]

The following table reconciles the balance of UTBs:
		2014		2013		2012
		(In thousands)
Balance at January 1,	$	4,310	$	2,374	$	2,374
(Decrease) increase related to positions taken during
prior years		(1,763)		1,936		-
Decrease related to settlement with taxing authorities		(2,547)		-		-
Balance at December 31,	$	-	$	4,310	$	2,374