INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

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

The components of income tax (benefit) expense are summarized below:

		Year Ended December 31,
		2018		2017		2016
(In thousands)
Current income tax expense	$	14,073	$	8,179	$	13,151
Deferred income tax expense (benefit):
Adjustment for enacted changes in tax law		15,402		138		(20)
Reversal of deferred tax asset valuation allowance		(63,228)		(1,792)		-
Other deferred income tax expense (benefit)		22,783		(11,498)		23,899
Total income tax (benefit) expense	$	(10,970)	$	(4,973)	$	37,030

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,
		2018					2017					2016
		Amount		% of Pretax Income			Amount		% of Pretax Income			Amount		% of Pretax Income
(Dollars in thousands)
Computed income tax at statutory rate		$	74,349		39.0	%	$	24,173		39.0	%	$	50,801		39.0	%
Federal and state taxes			3,768		2.0	%		2,335		3.8	%		-		-	%
Benefit of net exempt income			(22,782)		(12.0)	%		(16,596)		(26.8)	%		(14,995)		(11.5)	%
Disallowed NOL carryforward resulting from
	net exempt income		14,904		7.8	%		5,091		8.2	%		6,396		4.9	%
Deferred tax valuation allowance			(90,521)		(47.5)	%		(10,037)		(16.2)	%		(5,976)		(4.6)	%
Adjustments in net deferred tax assets due to changes
	in enacted tax rates		15,402		8.1	%		138		0.2	%		(20)		-	%
Change in tax status of subsidiaries			-		-	%		(13,161)		(21.2)	%		-		-	%
Share-based compensation windfall			(1,595)		(0.8)	%		(40)		-	%		92		0.1	%
Effect of capital losses subject to preferential rates			-		-	%		2,102		3.4	%		727		0.6	%
Non deductible expenses
	and other permanent differences		(839)		(0.4)	%		(470)		(0.8)	%		(1,720)		(1.2)	%
Tax return to provision adjustments			4		-	%		607		1.0	%		434		0.3	%
Other-net			(3,660)		(1.9)	%		885		1.4	%		1,291		1.0	%
Total income tax (benefit) expense		$	(10,970)		(5.7)	%	$	(4,973)		(8.0)	%	$	37,030		28.6	%

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, 2018 and 2017 were as follows:
		December 31,
		2018		2017
(In thousands)
Deferred tax asset:
Net operating loss carryforward	$	316,059	$	376,423
Allowance for loan and lease losses		75,010		94,111
Alternative Minimum Tax credits available for carryforward		9,238		6,598
Unrealized loss on OREO valuation		15,405		14,784
Unrealized loss on available-for-sale securities, net		189		-
Settlement payment-closing agreement		7,031		7,313
Legal and other reserves		3,293		2,333
Reserve for insurance premium cancellations		610		635
Other		7,526		8,326
Total gross deferred tax assets		434,361		510,523
Deferred tax liabilities:
Differences between the assigned values and tax bases of assets
and liabilities recognized in purchase business combinations		4,192		5,143
Servicing assets		9,143		8,625
Unrealized gain on available-for-sale securities, net		-		1,306
Other		514		9,457
Total gross deferred tax liabilities		13,849		24,531
Valuation allowance		(100,661)		(191,183)
Net deferred tax asset	$	319,851	$	294,809