Income taxes (Tables)

9 Months Ended

Sep. 30, 2014

Schedule Of Deferred Tax Assets And Liabilities Table Text Block

(In thousands)			September 30, 2014		December 31, 2013
Deferred tax assets:
Tax credits available for carryforward		$	12,023	$	8,195
Net operating loss and other carryforward available			1,245,909		1,269,523
Postretirement and pension benefits			46,305		51,742
Deferred loan origination fees			6,835		7,164
Allowance for loan losses			728,334		760,956
Deferred gains			8,333		9,313
Accelerated depreciation			7,833		7,577
Intercompany deferred gains			2,767		3,235
Other temporary differences			26,989		34,443
	Total gross deferred tax assets		2,085,328		2,152,148
Deferred tax liabilities:
Differences between the assigned values and the tax basis of assets and liabilities
	recognized in purchase business combinations		34,764		37,938
FDIC-assisted transaction			83,770		79,381
Unrealized net gain on trading and available-for-sale securities			16,290		3,822
Other temporary differences			17,465		13,387
	Total gross deferred tax liabilities		152,289		134,528
Valuation allowance			1,210,780		1,257,977
Net deferred tax asset		$	722,259	$	759,643

Summary Of Income Tax Contingencies Text Block

(In millions)		2014		2013
Balance at January 1	$	9.8	$	13.4
Additions for tax positions - January through March		0.3		0.2
Balance at March 31	$	10.1	$	13.6
Additions for tax positions - April through June		0.2		0.3
Balance at June 30	$	10.3	$	13.9
Additions for tax positions - July through September		0.3		0.3
Reduction as a result of lapse of statute of limitations - July through September		(2.5)		(5.7)
Balance at September 30	$	8.1	$	8.5

PUERTO RICO

Schedule Of Effective Income Tax Rate Reconciliation Table Text Block

		Quarters ended
		September 30, 2014				September 30, 2013
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax expense at statutory rates	$	23,198	39	%	$	94,880	39	%
Net benefit of tax exempt interest income		(12,663)	(21)			(7,608)	(3)
Deferred tax asset valuation allowance		(3,120)	(5)			(2,399)	(1)
Non-deductible expenses		90	-			8,085	3
Difference in tax rates due to multiple jurisdictions		(2,240)	(4)			(2,348)	(1)
Initial adjustment in deferred tax due to change in tax rate		20,048	34			-	-
Effect of income subject to preferential tax rate		(3,385)	(6)			(57,565)	(24)
Unrecognized tax benefits		(3,601)	(6)			(7,727)	(3)
Others		8,340	14			(7,550)	(3)
Income tax expense	$	26,667	45	%	$	17,768	7	%

		Nine months ended
		September 30, 2014				September 30, 2013
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax expense (benefit) at statutory rates	$	(71,939)	39	%	$	51,149	39	%
Net benefit of tax exempt interest income		(37,607)	21			(27,484)	(21)
Deferred tax asset valuation allowance		(17,303)	9			(5,374)	(4)
Non-deductible expenses		178,219	(97)			23,844	18
Difference in tax rates due to multiple jurisdictions		(12,728)	7			(8,296)	(6)
Initial adjustment in deferred tax due to change in tax rate		20,048	(11)			(197,467)	(151)
Effect of income subject to preferential tax rate[1]		(21,940)	12			(102,878)	(78)
Unrecognized tax benefits		(3,601)	2			(7,727)	(6)
Others		12,658	(7)			(2,256)	(2)
Income tax expense (benefit)	$	45,807	(25)	%	$	(276,489)	(211)	%
[1] For 2014, includes the impact of the Closing Agreement with the P.R. Treasury signed in June 2014.

		Quarters ended
		September 30, 2014				September 30, 2013
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax expense at statutory rates	$	23,198	39	%	$	94,880	39	%
Net benefit of tax exempt interest income		(12,663)	(21)			(7,608)	(3)
Deferred tax asset valuation allowance		(3,120)	(5)			(2,399)	(1)
Non-deductible expenses		90	-			8,085	3
Difference in tax rates due to multiple jurisdictions		(2,240)	(4)			(2,348)	(1)
Initial adjustment in deferred tax due to change in tax rate		20,048	34			-	-
Effect of income subject to preferential tax rate		(3,385)	(6)			(57,565)	(24)
Unrecognized tax benefits		(3,601)	(6)			(7,727)	(3)
Others		8,340	14			(7,550)	(3)
Income tax expense	$	26,667	45	%	$	17,768	7	%

		Nine months ended
		September 30, 2014				September 30, 2013
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax expense (benefit) at statutory rates	$	(71,939)	39	%	$	51,149	39	%
Net benefit of tax exempt interest income		(37,607)	21			(27,484)	(21)
Deferred tax asset valuation allowance		(17,303)	9			(5,374)	(4)
Non-deductible expenses		178,219	(97)			23,844	18
Difference in tax rates due to multiple jurisdictions		(12,728)	7			(8,296)	(6)
Initial adjustment in deferred tax due to change in tax rate		20,048	(11)			(197,467)	(151)
Effect of income subject to preferential tax rate[1]		(21,940)	12			(102,878)	(78)
Unrecognized tax benefits		(3,601)	2			(7,727)	(6)
Others		12,658	(7)			(2,256)	(2)
Income tax expense (benefit)	$	45,807	(25)	%	$	(276,489)	(211)	%
[1] For 2014, includes the impact of the Closing Agreement with the P.R. Treasury signed in June 2014.