INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

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

The components of income tax expense (benefit) are summarized below for the indicated periods:

		Year Ended December 31,
		2020		2019		2018
(In thousands)
Current income tax expense	$	18,421	$	16,986	$	14,073
Deferred income tax expense (benefit):
Adjustment for enacted changes in tax law		-		-		15,402
Reversal of deferred tax asset valuation allowance		(8,000)		-		(63,228)
Other deferred income tax expense		3,629		55,009		22,783
Total income tax expense (benefit)	$	14,050	$	71,995	$	(10,970)

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 for the indicated periods:
		Year Ended December 31,
		2020					2019					2018
		Amount		% of Pretax Income			Amount		% of Pretax Income			Amount		% of Pretax Income
(Dollars in thousands)
Computed income tax at statutory rate		$	43,621		37.5	%	$	89,764		37.5	%	$	74,349		39.0	%
Federal and state taxes			4,944		4.2	%		4,467		1.6	%		3,768		2.0	%
Benefit of net exempt income			(26,780)		(23.0)	%		(24,811)		(10.4)	%		(22,782)		(12.0)	%
Disallowed NOL carryforward resulting from
	net exempt income		9,054		7.8	%		15,887		6.6	%		14,904		7.8	%
Deferred tax valuation allowance			(12,095)		(10.4)	%		(14,108)		(5.9)	%		(90,521)		(47.5)	%
Adjustments in net deferred tax assets due to changes
	in enacted tax rates		-		-	%		-		-	%		15,402		8.1	%
Share-based compensation windfall			157		0.1	%		(1,165)		(0.5)	%		(1,595)		(0.8)	%
Nondeductible expenses
	and other permanent differences		(387)		(0.3)	%		(1,712)		(0.7)	%		(839)		(0.4)	%
Tax return to provision adjustments			597		0.5	%		1,846		0.8	%		4		-	%
Other-net			(5,061)		(4.3)	%		1,827		1.1	%		(3,660)		(1.9)	%
Total income tax expense (benefit)		$	14,050		12.1	%	$	71,995		30.1	%	$	(10,970)		(5.7)	%

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, 2020 and 2019 were as follows:
		December 31,
		2020		2019
(In thousands)
Deferred tax asset:
NOL carryforward	$	220,496	$	259,717
Allowance for credit losses		151,586		58,793
Alternative Minimum Tax credits available for carryforward		27,396		13,813
Unrealized loss on OREO valuation		13,426		13,963
Settlement payment-closing agreement		7,031		7,031
Legal and other reserves		4,120		2,791
Reserve for insurance premium cancellations		941		613
Differences between the assigned values and tax bases of assets and
liabilities recognized in purchase business combinations		11,956		-
Other		8,647		9,722
Total gross deferred tax assets	$	445,599	$	366,443
Deferred tax liabilities:
Differences between the assigned values and tax bases of assets
and liabilities recognized in purchase business combinations		-		3,823
Servicing assets		9,571		8,906
Unrealized gain on available-for-sale securities, net		4,730		1,808
Other		53		511
Total gross deferred tax liabilities		14,354		15,048
Valuation allowance		(101,984)		(86,553)
Net deferred tax asset	$	329,261	$	264,842