INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes [Abstract]

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

		Year Ended December 31,
		2016		2015		2014
(In thousands)
Current income tax expense	$	(13,151)	$	(6,339)	$	(5,361)
Deferred income tax (expense) benefit		(23,879)		(80)		306,010
Total income tax (expense) benefit	$	(37,030)	$	(6,419)	$	300,649

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,
		2016					2015					2014
		Amount		% of Pretax Income			Amount		% of Pretax Income			Amount		% of Pretax Income
(Dollars in thousands)
Computed income tax at
statutory rate		$	(50,801)		(39.0)	%	$	(10,810)		(39.0)	%	$	(35,738)		(39.0)	%
Federal and state taxes			-		-	%		(190)		(0.7)	%		(117)		(0.1)	%
Adjustment in deferred tax due
to change in tax rate			-		-	%		-		-	%		(346)		(0.4)	%
Benefit of net exempt income			14,995		11.5	%		9,780		35.3	%		15,202		17.0	%
National receipts tax, net			-		-	%		-		-	%		628		0.7	%
Effect of capital losses subject to preferential rates			(727)		(0.6)	%		(3,019)		(10.9)	%		-		-	%
Disallowed NOL carryforward resulting from
	net exempt income		(6,396)		(4.9)	%		(7,717)		(27.8)	%		-		-	%
Nontax deductible expenses			(212)		(0.2)	%		365		1.3	%		(193)		(0.2)	%
(Decrease) increase in
unrecognized tax benefits,
including interest			-		-	%		-		-	%		1,763		2.0	%
Return to provision adjustments			(434)		(0.3)	%		1,174		4.2	%		-		-	%
Deferred tax valuation allowance			5,976		4.6	%		2,881		10.4	%		318,380		347.0	%
Other-net			569		0.3	%		1,117		4.0	%		1,070		1.2	%
Total income tax
(expense) benefit		$	(37,030)		(28.6)	%	$	(6,419)		(23.2)	%	$	300,649		328.2	%

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, 2016 and 2015 were as follows:
		December 31,
		2016		2015
(In thousands)
Deferred tax asset:
Net operating loss carryforward	$	374,091	$	378,160
Allowance for loan and lease losses		79,330		87,769
Tax credits available for carryforward		8,006		10,714
Unrealized loss on OREO valuation		11,467		11,633
Unrealized net loss on equity investment		187		6,236
Settlement payment-closing agreement		7,313		7,313
Legal reserve		1,807		2,953
Impairment on investment		4,438		3,178
Unrealized loss on available-for-sale securities, net		502		739
Reserve for insurance premium cancellations		724		631
Unrealized losses on derivatives activities		78		48
Other		15,642		17,993
Gross deferred tax assets		503,585		527,367
Less: Valuation allowance		(207,216)		(201,706)
Total deferred tax assets, net of valuation allowance		296,369		325,661
Deferred tax liabilities:
Differences between the assigned values and tax bases of assets
and liabilities recognized in purchase business combinations		5,247		5,712
Unrealized gain on other investments		468		468
Servicing assets		8,997		8,218
Gross deferred tax liabilities		14,712		14,398
Net deferred tax assets	$	281,657	$	311,263

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

The following table reconciles the balance of UTBs:
		2016		2015		2014
(In thousands)
Balance at January 1,	$	-	$	-	$	4,310
(Decrease) increase related to positions taken during
prior years		-		-		(1,763)
Decrease related to settlement with taxing authorities		-		-		(2,547)
Balance at December 31,	$	-	$	-	$	-