Income taxes (Tables) |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Differences Between Income Tax Expense (Benefit) Applicable to Income Before Income Taxes and Amount Computed by Applying the Statutory Tax Rate in Puerto Rico | Quarters ended March 31, 2025 March 31, 2024 (In thousands) Amount % of pre-tax income Amount % of pre-tax income Computed income tax expense at statutory rates $ 83,462 38 % $ 59,569 38 % Net benefit of tax exempt interest income (39,955) (18) (28,759) (18) Effect of income subject to preferential tax rate (913) - (1,420) (1) Deferred tax asset valuation allowance 3,882 1 2,563 1 Difference in tax rates due to multiple jurisdictions (2,975) (1) (673) - Tax on intercompany distributions [1] - - 24,325 16 State and local taxes 4,036 1 1,036 - Others (2,474) (1) (1,073) (1) Income tax expense $ 45,063 20 % $ 55,568 35 % [1] Includes $ 16.5 |
| Components of Deferred Tax Assets and Liabilities | March 31, 2025 PR US Total Deferred tax assets: Tax credits available for carryforward $ 4,861 $ 27,774 $ 32,635 Net operating loss and other carryforward available 58,060 603,736 661,796 Postretirement and pension benefits 28,190 - 28,190 Allowance for credit losses 244,976 27,014 271,990 Depreciation 7,700 7,381 15,081 FDIC-assisted transaction 152,665 - 152,665 Lease liability 26,658 15,218 41,876 Unrealized net loss on investment securities 221,538 17,007 238,545 Difference in outside basis from pass-through entities 53,381 - 53,381 Mortgage Servicing Rights 14,815 - 14,815 Other temporary differences 38,635 8,870 47,505 Total gross deferred tax assets 851,479 707,000 1,558,479 Deferred tax liabilities: Intangibles 89,280 56,710 145,990 Right of use assets 24,190 13,371 37,561 Deferred loan origination fees/cost (1,154) 2,607 1,453 Loans acquired 17,907 - 17,907 Other temporary differences 6,826 429 7,255 Total gross deferred tax liabilities 137,049 73,117 210,166 Valuation allowance 75,598 386,913 462,511 Net deferred tax asset $ 638,832 $ 246,970 $ 885,802 PR US Total Deferred tax assets: Tax credits available for carryforward $ 4,861 $ 24,728 $ 29,589 Net operating loss and other carryforward available 52,211 610,279 662,490 Postretirement and pension benefits 27,786 - 27,786 Allowance for credit losses 247,153 24,415 271,568 Depreciation 7,700 7,229 14,929 FDIC-assisted transaction 152,665 - 152,665 Lease liability 25,167 16,451 41,618 Unrealized net loss on investment securities 252,411 20,996 273,407 Difference in outside basis from pass-through entities 50,144 - 50,144 Mortgage Servicing Rights 14,475 - 14,475 Other temporary differences 41,127 9,072 50,199 Total gross deferred tax assets 875,700 713,170 1,588,870 Deferred tax liabilities: Intangibles 88,351 55,926 144,277 Right of use assets 22,784 14,454 37,238 Deferred loan origination fees/cost (1,880) 2,085 205 Loans acquired 18,415 - 18,415 Other temporary differences 6,799 429 7,228 Total gross deferred tax liabilities 134,469 72,894 207,363 Valuation allowance 69,837 386,914 456,751 Net deferred tax asset $ 671,394 $ 253,362 $ 924,756 |
| Reconciliation of Unrecognized Tax Benefits | The reconciliation of unrecognized tax benefits, excluding interest, was as follows: (In millions) 2025 2024 Balance at January 1 $ 1.5 $ 1.5 Balance at March 31 $ 1.5 $ 1.5 |