INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

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

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

Year Ended December 31,

2021

2020

2019

(In thousands)

Current income tax expense

$

28,469

$

18,421

$

16,986

Deferred income tax expense (benefit):

 Reversal of deferred tax asset valuation allowance

-

(8,000)

-

 Other deferred income tax expense

118,323

3,629

55,009

Total income tax expense

$

146,792

$

14,050

$

71,995

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, 

2021

2020

2019

Amount

% of Pretax

Income

Amount

% of Pretax

Income

Amount

% of Pretax

Income

(Dollars in thousands)

Computed income tax at statutory rate

$

160,431

37.5

%

$

43,621

37.5

%

$

89,764

37.5

%

Federal and state taxes

7,014

1.6

%

4,944

4.2

%

4,467

1.6

%

Benefit of net exempt income

(20,717)

(4.8)

%

(26,780)

(23.0)

%

(24,811)

(10.4)

%

Disallowed NOL carryforward resulting from 

net exempt income

8,791

2.0

%

9,054

7.8

%

15,887

6.6

%

Deferred tax valuation allowance

(13,572)

(3.2)

%

(12,095)

(10.4)

%

(14,108)

(5.9)

%

Share-based compensation windfall

(1,044)

(0.2)

%

157

0.1

%

(1,165)

(0.5)

%

Other permanent differences

(1,185)

(0.3)

%

(387)

(0.3)

%

(1,712)

(0.7)

%

Tax return to provision adjustments

(406)

(0.1)

%

597

0.5

%

1,846

0.8

%

Other-net

7,480

1.7

%

(5,061)

(4.3)

%

1,827

1.1

%

 Total income tax expense 

$

146,792

34.2

%

$

14,050

12.1

%

$

71,995

30.1

%

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, 2021 and 2020 were as follows:

December 31, 

2021

2020

(In thousands)

Deferred tax asset:

 NOL and capital losses carryforward 

$

137,860

$

220,496

 Allowance for credit losses

105,917

151,586

 Alternative Minimum Tax credits available for carryforward

37,361

27,396

 Unrealized loss on OREO valuation

7,703

13,426

 Settlement payment-closing agreement

7,031

7,031

 Legal and other reserves

4,576

4,120

 Reserve for insurance premium cancellations

881

941

 Differences between the assigned values and tax bases of assets

 and liabilities recognized in purchase business combinations

8,926

11,956

 Unrealized loss on available-for-sale securities, net

14,181

-

 Other

4,420

8,647

 Total gross deferred tax assets

$

328,856

$

445,599

Deferred tax liabilities:

 Servicing assets

10,510

9,571

 Pension Plan assets

2,035

-

 Unrealized gain on available-for-sale securities, net

-

4,730

 Other

506

53

 Total gross deferred tax liabilities

13,051

14,354

Valuation allowance

(107,323)

(101,984)

 Net deferred tax asset

$

208,482

$

329,261