Income taxes (Tables)

9 Months Ended

Sep. 30, 2019

Schedule Of Deferred Tax Assets And Liabilities Table Text Block

			September 30, 2019
(In thousands)			PR		US		Total
Deferred tax assets:
Tax credits available for carryforward		$	16,442	$	7,757	$	24,199
Net operating loss and other carryforward available			128,899		711,507		840,406
Postretirement and pension benefits			74,833		-		74,833
Allowance for loan losses			425,855		18,680		444,535
Deferred gains			-		2,443		2,443
Accelerated depreciation			1,963		5,626		7,589
FDIC-assisted transaction			85,609		-		85,609
Intercompany deferred gains			1,377		-		1,377
Difference in outside basis from pass-through entities			18,570		-		18,570
Other temporary differences			28,722		8,189		36,911
	Total gross deferred tax assets		782,270		754,202		1,536,472
Deferred tax liabilities:
Indefinite-lived intangibles			36,578		43,164		79,742
Unrealized net gain (loss) on trading and available-for-sale securities			40,840		1,029		41,869
Deferred loan origination costs			(2,741)		3,027		286
Other temporary differences			12,432		1,109		13,541
	Total gross deferred tax liabilities		87,109		48,329		135,438
Valuation allowance			99,766		392,643		492,409
Net deferred tax asset		$	595,395	$	313,230	$	908,625
			December 31, 2018
(In thousands)			PR		US		Total
Deferred tax assets:
Tax credits available for carryforward		$	15,900	$	7,757	$	23,657
Net operating loss and other carryforward available			116,154		720,933		837,087
Postretirement and pension benefits			83,390		-		83,390
Deferred loan origination fees			3,216		(1,280)		1,936
Allowance for loan losses			516,643		18,612		535,255
Deferred gains			-		2,551		2,551
Accelerated depreciation			1,963		5,786		7,749
FDIC-assisted transaction			95,851		-		95,851
Intercompany deferred gains			1,518		-		1,518
Difference in outside basis from pass-through entities			20,209		-		20,209
Other temporary differences			24,957		7,522		32,479
	Total gross deferred tax assets		879,801		761,881		1,641,682
Deferred tax liabilities:
Indefinite-lived intangibles			34,081		39,597		73,678
Unrealized net gain (loss) on trading and available-for-sale securities			23,823		(12,783)		11,040
Other temporary differences			10,579		1,109		11,688
	Total gross deferred tax liabilities		68,483		27,923		96,406
Valuation allowance			89,852		406,455		496,307
Net deferred tax asset		$	721,466	$	327,503	$	1,048,969

Summary Of Income Tax Contingencies Text Block

(In millions)		2019		2018
Balance at January 1	$	7.2	$	7.3
Additions for tax positions - January through March		0.3		0.2
Balance at March 31	$	7.5	$	7.5
Additions for tax positions - April through June		0.2		0.3
Balance at June 30	$	7.7	$	7.8
Additions for tax positions - July through September		-		0.3
Reduction as a result of lapse of statute of limitations - July through September		-		(1.2)
Balance at September 30	$	7.7	$	6.9

PUERTO RICO

Schedule Of Effective Income Tax Rate Reconciliation Table Text Block

		Quarters ended
		September 30, 2019				September 30, 2018
(In thousands)		Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax expense at statutory rates	$	77,508	38	%	$	71,240	39	%
Net benefit of tax exempt interest income		(38,103)	(18)			(24,941)	(14)
Deferred tax asset valuation allowance		3,170	1			5,606	3
Difference in tax rates due to multiple jurisdictions		(4,233)	(2)			(5,203)	(3)
Effect of income subject to preferential tax rate		(2,243)	(1)			(2,031)	(1)
Unrecognized tax benefits		-	-			(1,621)	(1)
State and local taxes		2,180	1			3,115	2
Others		3,091	1			(4,147)	(2)
Income tax (benefit) expense	$	41,370	20	%	$	42,018	23	%

			Nine months ended
			September 30, 2019				September 30, 2018
(In thousands)			Amount	% of pre-tax income			Amount	% of pre-tax income
Computed income tax expense at statutory rates		$	238,602	38	%	$	213,474	39	%
Net benefit of tax exempt interest income			(95,986)	(15)			(70,341)	(13)
Deferred tax asset valuation allowance			9,915	2			17,018	3
Difference in tax rates due to multiple jurisdictions			(9,851)	(2)			(10,400)	(2)
Effect of income subject to preferential tax rate[1]			(7,458)	(1)			(108,087)	(20)
Unrecognized tax benefits			-	-			(1,621)	-
State and local taxes			5,535	1			6,196	1
Others			(8,834)	(2)			(10,626)	(2)
Income tax (benefit) expense		$	131,923	21	%	$	35,613	6	%
[1]	For the nine months ended September 30, 2018, includes the impact of the Tax Closing Agreement entered into in connection with the FDIC Transaction.