Basis of presentation (Policies)

9 Months Ended

Sep. 30, 2024

Basis of presentation [Abstract]

Basis of presentation

Basis of Presentation

The (unaudited) interim Consolidated Financial Statements are, in the opinion of management, a fair statement of the results for the

periods reported and include all necessary adjustments, all of a normal recurring nature, for a fair statement of such results. The

consolidated statement of financial condition presented as of December 31, 2023 was derived from audited Consolidated Financial

Statements of the Corporation for the year ended December 31, 2023.

Certain information and notes to the financial statements disclosures which would normally be included in financial statements

prepared in accordance with Accounting Principles Generally Accepted in the United States of America (US GAAP), have been

condensed or omitted from the unaudited financial statements pursuant to the rules and regulations of the Securities and Exchange

Commission. Accordingly, these financial statements should be read in conjunction with the audited Consolidated Financial

Statements of the Corporation for the year ended December 31, 2023, included in the 2023 Form 10-K. Operating results for the

interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.

Income taxes

Tax impact on Intercompany Distributions 

The net income for the nine months ended September 30, 2024 included $

22.9

 million of expenses, of which $

16.5

 million was

reflected in income tax expense and $

6.4

 million was reflected in other operating expenses, related to an out-of-period adjustment

associated with the Corporation’s U.S. subsidiary’s non-payment of taxes on certain intercompany distributions to the Bank Holding

Company (BHC) in Puerto Rico, a foreign corporation for U.S. tax purposes. The adjustment corrected errors for income tax

expense that should have been recognized of $

5.5

 million and $

5.4

 million in the years 2023 and 2022, respectively, and an

aggregate of $

5.6

 million, in the years prior to 2022. The $

6.4

 million recognized as other operating expense corresponded to

interest due up to March 31, 2024 on the related late payment of the withholding tax, of which approximately $

3.0

 million correspond

to years prior to 2022. As a result of this adjustment, the deferred tax asset related to NOL of the BHC and its related valuation

allowance was reduced by $

53.7

 million. The Corporation evaluated the impact of the out-of-period adjustment and concluded it was

not material to any previously issued interim or annual consolidated financial statements and the adjustment is not expected to be

material to the year ending December 31, 2024.

Use of estimates in the preparation of financial statements

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America

requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent

assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the

reporting period. Actual results could differ from those estimates.