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Popular, Inc. Announces First Quarter Financial Results

April 27, 2015 8:01 AM

SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- Popular, Inc. (the “Corporation” or “Popular”) (NASDAQ: BPOP) reported net income of $74.8 million and adjusted net income of $90.3 million for the quarter ended March 31, 2015, compared to net income of $48.9 million and an adjusted net income of $76.8 million for the quarter ended December 31, 2014.

Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said: "We are pleased to report that we started the year on solid footing, with strong results and stable credit metrics, notwithstanding the difficult macroeconomic environment in our principal market, Puerto Rico. We are especially encouraged by the trends we are seeing at Popular Community Bank, which experienced organic commercial loan growth of 6% in the quarter. The acquisition of approximately $2.3 billion of Doral Bank’s assets further boosts our position, as it strengthens our Puerto Rico franchise and provides additional momentum to our U.S. operations."

Earnings Highlights
(Unaudited) Quarters ended
(Dollars in thousands, except per share information) 31-Mar-15 31-Dec-14 31-Mar-14
Net interest income $ 343,195 $ 326,861 $ 351,171
Provision for loan losses – non-covered loans 29,711 51,637 54,122
Provision (reversal of provision) for loan losses – covered loans [1] 10,324 (3,646 ) 25,714
Net interest income after provision for loan losses 303,160 278,870 271,335
FDIC loss share income (expense) 4,139 (18,693 ) (24,206 )
Other non-interest income 111,096 122,057 120,238
Operating expenses 312,342 330,006 277,599
Income from continuing operations before income tax 106,053 52,228 89,768
Income tax expense 32,568 12,472 23,264
Income from continuing operations 73,485 39,756 66,504
Income from discontinued operations, net of tax 1,341 9,086 19,905
Net income $ 74,826 $ 48,842 $ 86,409
Net income applicable to common stock $ 73,895 $ 47,911 $ 85,478
Net income per common share from continuing operations - Basic $ 0.71 $ 0.38 $ 0.64
Net income per common share from continuing operations - Diluted $ 0.71 $ 0.37 $ 0.64
Net income per common share from discontinued operations - Basic $ 0.01 $ 0.09 $ 0.19
Net income per common share from discontinued operations - Diluted $ 0.01 $ 0.09 $ 0.19

[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.

Significant events

On February 27, 2015, the Corporation’s Puerto Rico banking subsidiary, Banco Popular de Puerto Rico (“BPPR”), in an alliance with co-bidders, including the Corporation’s U.S. mainland banking subsidiary, Banco Popular North America, doing business as Popular Community Bank (“PCB”), acquired certain assets and all deposits (other than certain brokered deposits) of Doral Bank (“Doral”) from the Federal Deposit Insurance Corporation (FDIC), as receiver (the "Doral Acquisition").

Under the FDIC’s bidding format, BPPR was the lead bidder and party to the purchase and assumption agreement with the FDIC covering all assets and deposits acquired by it and its alliance co-bidders. BPPR entered into back to back purchase and assumption agreements with the alliance co-bidders for the transferred assets and deposits. The other co-bidders which formed part of the alliance led by BPPR were First Bank Puerto Rico, Centennial Bank and a vehicle formed by J.C. Flowers III L.P. BPPR has entered into transition service agreements with each of the alliance co-bidders.

After taking into account the transfers to the unaffiliated alliance co-bidders, BPPR and PCB assumed deposits amounting to approximately $2.2 billion and acquired commercial and residential loans amounting to approximately $1.7 billion, substantially all of which were in performing status. Additionally, the acquisition included approximately $0.6 billion in investment securities, cash and other assets. There is no loss-sharing arrangement with the FDIC on the acquired assets.

On February 27, 2015, the FDIC, as receiver for Doral Bank, accepted BPPR's bid for the purchase of the mortgage servicing rights on three pools of residential mortgage loans of approximately $5.0 billion in unpaid principal balance, for a purchase price currently estimated at $48.6 million. The transfers of the mortgage servicing rights are subject to a number of specified closing conditions, including the consent of each of Ginnie Mae, Fannie Mae and Freddie Mac in a form acceptable to BPPR, and other customary closing conditions. On April 23, 2015, BPPR closed the acquisition of approximately $2.7 billion in Ginnie Mae mortgage servicing rights. BPPR is in negotiations for the transfers of the Fannie Mae and Freddie Mac mortgage servicing rights which are expected to be completed during the second quarter of 2015.

As a result of the Doral Acquisition, the Corporation recorded goodwill of approximately $43 million and a core deposit intangible asset of approximately $24 million. Refer to the statement of condition section of this earnings release for a detail of the assets and liabilities of the business acquired from Doral Bank, as part of the FDIC assisted transaction, as of March 31, 2015.

Quarter ended
(Unaudited) 31-Mar-15
(In thousands)

Actual Results

(US GAAP)

BPNA

Reorganization [2]

Doral Acquisition [3]

Adjusted

Results

(Non-GAAP)

Net interest income $ 343,195 $ - $ - $ 343,195
Provision for loan losses – non-covered loans 29,711 - - 29,711
Provision (reversal of provision) for loan losses – covered loans [1] 10,324 - - 10,324
Net interest income (expense) after provision for loan losses 303,160 - - 303,160
Net loss on sale of loans, including valuation adjustments on loans held-for-sale (79 ) - - (79 )
FDIC loss share income 4,139 - - 4,139
Other non-interest income 111,175 - 1,121 110,054
Personnel costs 116,458 - 2,432 114,026
Net occupancy expenses 21,709 643 21,066
Professional fees 75,528 - 6,997 68,531
Restructuring costs 10,753 10,753 - -
Other operating expenses 87,894 - - 87,894
Income from continuing operations before income tax 106,053 (10,753 ) (8,951 ) 125,757
Income tax expense 32,568 - (2,896 ) 35,464
Income from continuing operations $ 73,485 $ (10,753 ) $ (6,055 ) $ 90,293
Income from discontinued operations, net of tax $ 1,341 $ 1,341 $ - $ -
Net income $ 74,826 $ (9,412 ) $ (6,055 ) $ 90,293
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.
[2] Represents restructuring charges associated with the reorganization of BPNA.
[3] Includes $1.1 million on fees charged for services provided to the alliance co-bidders, including loan servicing and other interim services, personnel costs related to Doral employees retained on a temporary basis and non-recurring incentive compensation for an aggregate of $2.4 million, building rent expense of Doral’s administrative offices for $0.6 million and professional and legal fees directly associated with the Doral acquisition for $7.0 million.

Quarter ended
(Unaudited) 31-Dec-14
(In thousands)

Actual Results

(US GAAP)

BPNA

Reorganization [2]

Other

Adjustments

Adjusted

Results

(Non-GAAP)

Net interest income $ 326,861 $ (18,591 ) $ - $ 345,452
Provision for loan losses – non-covered loans 51,637 878 - 50,759
Reversal of provision for loan losses – covered loans [1] (3,646 ) - - (3,646 )
Net interest income after provision for loan losses 278,870 (19,469 ) - 298,339
Net gain on sale of loans, including valuation adjustments on loans held-for-sale 10,946 1,684 - 9,262
FDIC loss share expense (18,693 ) - - (18,693 )
Other non-interest income 111,111 - - 111,111
Personnel costs 110,736 - 2,974[3] 107,762
Net occupancy expenses 23,877 - 1,895[4] 21,982
Professional fees 80,383 - - 80,383
Loss on early extinguishment of debt 532 532 - -
Restructuring costs 13,861 13,861 - -
Other operating expenses 100,617 - - 100,617
Income from continuing operations before income tax 52,228 (32,178 ) (4,869 ) 89,275
Income tax expense 12,472 - - 12,472
Income from continuing operations $ 39,756 $ (32,178 ) $ (4,869 ) $ 76,803
Income from discontinued operations, net of tax $ 9,086 $ 9,086 $ - $ -
Net income $ 48,842 $ (23,092 ) $ (4,869 ) $ 76,803
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.
[2] Includes loss on the refinancing of structured repos for $18.6 million recorded as interest expense, impact on provision for loan losses related to NPL sales of $878 thousand, gain on bulk sales of NPLs of $1.7 million and restructuring cost of $13.9 million.
[3] Represents the impact of the compensation package granted upon separation of an officer of the Corporation equal to approximately $3.0 million.
[4] Represents the net loss on the early cancellation of a lease at BPNA of $1.9 million.

Quarters ended
(Unaudited) Adjusted Results Non-GAAP
(In thousands) 31-Mar-15 31-Dec-14 Variance
Net interest income $ 343,195 $ 345,452 $ (2,257 )
Provision for loan losses – non-covered loans 29,711 50,759 (21,048 )
Provision (reversal of provision) for loan losses – covered loans [1] 10,324 (3,646 ) 13,970
Net interest income after provision for loan losses 303,160 298,339 4,821
Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale (79 ) 9,262 (9,341 )
FDIC loss share income (expense) 4,139 (18,693 ) 22,832
Other non-interest income 110,054 111,111 (1,057 )
Personnel costs 114,026 107,762 6,264
Net occupancy expenses 21,066 21,982 (916 )
Professional fees 68,531 80,383 (11,852 )
Other operating expenses 87,894 100,617 (12,723 )
Income from continuing operations before income tax 125,757 89,275 36,482
Income tax expense 35,464 12,472 22,992
Income from continuing operations $ 90,293 $ 76,803 $ 13,490
Net income $ 90,293 $ 76,803 $ 13,490
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.

Net interest income

BPPR’s net interest margin for the quarter was 5.00%, a decrease of 15 basis points from the previous quarter. Net interest income amounted to $306.6 million for the quarter ended March 31, 2015 compared with $311.2 million for the previous quarter. The decrease in the net interest income was mainly due to the above mentioned decrease in interest income from covered and commercial loans mostly due to fewer days in the quarter, partially offset by higher interest income from mortgage loan portfolios, net of related funding. The contribution from the Doral Acquisition to BPPR’s net interest income was approximately $5.1 million. Cost of interest bearing deposits in Puerto Rico were flat at 53 basis points, even after the impact of Doral’s acquired deposits.

BPNA’s net interest margin was 3.82%, compared to 2.40% for the previous quarter, mainly driven by the previously mentioned repo refinancing during the fourth quarter of 2014. Excluding the impact of the repos refinancing, net interest margin was flat when compared to the previous quarter. BPNA’s loan portfolio increased by approximately $76 million, excluding the impact of the Doral Acquisition, mainly driven by commercial loans which grew by approximately $107.4 million, or 6%. The net interest income was $52.1 million, compared with $49.8 million for the fourth quarter of 2014, excluding the impact of the previously mentioned repos refinancing. The contribution from the Doral Aquisition to BPNA’s net interest income was $4.7 million.

Non-interest income

Non-interest income was $115.2 million for the first quarter of 2015, an increase of $11.9 million when compared with the fourth quarter of 2014. Excluding the $1.1 million in other income related to servicing the Doral Acquisition's co-bidders assets during this quarter and the $1.7 million impact of the gain on bulk sales of NPLs during the fourth quarter of 2014 as part of the BPNA reorganization, non-interest income increased by $12.4 million when compared to the fourth quarter of 2014, driven primarily by the following:

These positive variances were partially offset by:

Refer to Table B for further details.

Financial Impact of FDIC-Assisted Transaction
(Unaudited) Quarters ended
(In thousands) 31-Mar-15 31-Dec-14 31-Mar-14

Income Statement

Interest income on covered loans $ 57,431 $ 61,285 $ 81,098
Total FDIC loss share income (expense) 4,139 (18,693 ) (24,206 )
Provision for loan losses 10,324 (3,646 ) 25,714
Total revenues less provision for loan losses $ 51,246 $ 46,238 $ 31,178

Balance Sheet

Loans covered under loss-sharing agreements with FDIC $ 2,456,552 $ 2,542,662 $ 2,870,054
FDIC loss share asset 409,844 542,454 833,721
FDIC true-up payment obligation 125,140 129,304 126,345

See additional details on accounting for FDIC-Assisted transaction in Table O.

Operating expenses

Operating expenses decreased by $17.7 million when compared with the fourth quarter of 2014. Excluding the impact of the significant events detailed in the Adjusted Results (Non-GAAP) tables above, operating expenses decreased by $19.2 million compared to the fourth quarter of 2014, driven primarily by:

These decreases were partially offset by:

Non-personnel credit-related costs, which include collections, appraisals, credit related fees, and OREO expenses, amounted to $29.0 million for the first quarter of 2015, compared with $27.2 million for the fourth quarter of 2014. The increase was principally due to higher OREO expenses from the covered portfolio at BPPR.

Full-time equivalent employees (“FTEs”), including discontinued operations, were 8,203 as of March 31, 2015, compared with 7,752 as of December 31, 2014, and 8,053 as of March 31, 2014. The increase is due to the Doral Acquisition.

For a breakdown of operating expenses by category refer to table B.

Income taxes

Income tax expense amounted to $32.6 million for first quarter of 2015, or $35.5 million on an adjusted basis, compared to $12.5 million for the previous quarter. The effective income tax rate for the first quarter of 2015, on an adjusted basis, was 28%, compared to 14% for the fourth quarter of 2014. The increase in the effective tax rate was driven by the composition and source of taxable income for the quarter. Refer to earnings highlights section above for a description of adjusted results.

While the current impact on taxable income of the U.S. reorganization and the integration of the Doral Acquisition continue to support a full valuation of the deferred tax asset at the U.S. mainland operations, the incremental earnings expected to be generated after stabilization would be considered additional positive evidence in our analysis that could result in the eventual realization of a portion of this asset.

Credit Quality

The following table presents information on non-performing assets:

Non-Performing Assets
(Unaudited)
(In thousands) 31-Mar-15 31-Dec-14 31-Mar-14
Total non-performing loans held-in-portfolio, excluding covered loans $ 664,953 $ 630,483 $ 635,334
Non-performing loans held-for-sale 8,404 18,899 789
Other real estate owned (“OREO”), excluding covered OREO 128,170 135,500 136,965
Total non-performing assets, excluding covered assets 801,527 784,882 773,088
Covered loans and OREO 133,211 148,099 182,659
Total non-performing assets $ 934,738 $ 932,981 $ 955,747
Net charge-offs for the quarter (excluding covered loans) $ 35,886 $ 50,187 $ 43,246
Ratios (excluding covered loans):
Non-covered loans held-in-portfolio (1) $ 21,012,930 $ 19,404,451 $ 21,611,777
Non-performing loans held-in-portfolio to loans held-in-portfolio (1) 3.16 % 3.25 % 2.94 %
Allowance for loan losses to loans held-in-portfolio 2.46 2.68 2.51
Allowance for loan losses to non-performing loans, excluding loans held-for-sale 77.63 82.43 85.40
Refer to Table H for additional information.
Provision for Loan Losses
(Unaudited) Quarters ended
(In thousands) 31-Mar-15 31-Dec-14 31-Mar-14
Provision (reversal) for loan losses - non-covered loans:
BPPR $ 31,913 $ 52,206 $ 53,915
BPNA (2,202 ) (569 ) 207
Total provision for loan losses - non-covered loans 29,711 51,637 54,122
Provision (reversal) for loan losses - covered loans 10,324 (3,646 ) 25,714
Total provision for loan losses $ 40,035 $ 47,991 $ 79,836

Credit Quality

The Corporation maintained stable credit quality during the first quarter of 2015, in spite of the challenging economic conditions that persist in Puerto Rico, reflecting of the improved risk profile of the loan portfolios and the result of strategic initiatives executed by the Corporation over the past several years. These results were impacted by the addition of certain non-performing loans due to the failure and related loan acquisition of Doral Bank. The US region continued to exhibit strong asset quality during the quarter, with low levels of delinquencies and charge-offs.

The credit quality performance for the first quarter of 2015 for the Corporation’s non-covered portfolios, including $1.6 billion as of March 31, 2015, of loans acquired in the Doral Acquisition was as follows:

Credit Quality by Segment
(Unaudited)
(In thousands) Quarters ended
BPPR 31-Mar-15 31-Dec-14 31-Mar-14
Provision for loan losses $ 31,913 $ 52,206 $ 53,915
Net charge-offs 36,772 52,523 45,950
Total non-performing loans held-in-portfolio, excluding covered loans 638,017 611,383 532,223
Allowance / non-covered loans held-in-portfolio 2.92 % 3.07 % 2.72 %
Quarters ended
BPNA 31-Mar-15 31-Dec-14 31-Mar-14
Provision for loan losses (reversal of provision) - Continuing operations $ (2,202 ) $ (569 ) $ 207
Provision for loan losses (reversal of provision) - Discontinued operations - - (6,764 )
Net charge-offs (recoveries) - Continuing operations (886 ) (2,336 ) 2,841
Net charge-offs (recoveries) - Discontinued operations - - (5,545 )
Total non-performing loans held-in-portfolio 26,936 19,100 103,111
Allowance / non-covered loans held-in-portfolio 0.72 % 0.88 % 1.91 %

BPPR Segment

BPNA Segment

Financial Condition Highlights
(Unaudited)
(In thousands) 31-Mar-15 31-Dec-14 31-Mar-14
Money market, trading and investment securities $ 8,254,845 $ 7,541,148 $ 8,056,145
Loans not covered under loss sharing agreements with the FDIC 21,012,930 19,404,451 21,611,777
Loans covered under loss sharing agreements with the FDIC 2,456,552 2,542,662 2,870,054
Total assets 35,624,840 33,096,695 36,744,162
Deposits 27,273,689 24,807,535 27,265,651
Borrowings 2,891,156 3,004,685 3,715,821
Liabilities from discontinued operations 1,930 5,064 -
Total liabilities 31,247,720 28,829,313 31,998,415
Stockholders’ equity 4,377,120 4,267,382 4,745,747

Impact of Assets and Liabilities Acquired from Doral Bank at March 31, 2015
(Unaudited)
(In thousands) 31-Mar-15 (1)
Cash and due from banks $ 111,492
Investment securities available-for-sale 170,340
Loans held-for-sale 24,483
Loans held-in-portfolio 1,641,930
Premises and equipment, net 2,559
Other real estate 1,007
Accrued income receivable 9,017
Other assets 183,114
Goodwill 42,634
Other intangible assets 23,376
Total assets $ 2,209,952
Deposits $ 2,026,835
Other liabilities 72,538
Total liabilities $ 2,099,373
Net assets $ 110,579
(1) These balances are preliminary and are subject to customary purchase accounting adjustments.

Excluding approximately $2.2 billion in assets acquired from Doral Bank, total assets increased by $318 million from the fourth quarter of 2014, driven by:

Excluding approximately $2.1 billion in liabilities acquired from Doral, total liabilities increased by $319 million from the fourth quarter of 2014, driven by:

Stockholders’ equity increased by $110 million from the fourth quarter of 2014, mainly as a result of net income for the quarter of $75 million, and a decrease in accumulated other comprehensive loss of $35 million.

Common equity tier-1 ratio and tangible book value per share were 15.82% and $36.33, respectively, at March 31, 2015 compared to 15.89% and $35.89 at December 31, 2014. Refer to Table A for capital ratios.

Forward-Looking Statements

The information included in this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in forward-looking statements. Factors that might cause such a difference include, but are not limited to (i) the rate of growth in the economy and employment levels, as well as general business and economic conditions; (ii) changes in interest rates, as well as the magnitude of such changes; (iii) the fiscal and monetary policies of the federal government and its agencies; (iv) changes in federal bank regulatory and supervisory policies, including required levels of capital and the impact of proposed capital standards on our capital ratios; (v) the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on our businesses, business practices and cost of operations; (vi) regulatory approvals that may be necessary to undertake certain actions or consummate strategic transactions such as acquisitions and dispositions; (vii) the relative strength or weakness of the consumer and commercial credit sectors and of the real estate markets in Puerto Rico and the other markets in which borrowers are located; (viii) the performance of the stock and bond markets; (ix) competition in the financial services industry; (x) additional Federal Deposit Insurance Corporation assessments; (xi) possible legislative, tax or regulatory changes; and (xii) risks related to the Doral Acquisition, including (a) our ability to maintain customer relationships, including managing any potential customer confusion caused by the alliance structure, (b) risks associated with the limited amount of diligence able to be conducted by a buyer in an FDIC transaction and (c) difficulties in converting or integrating the Doral branches or difficulties in providing transition support to alliance co-bidders. For a discussion of such factors and certain risks and uncertainties to which the Corporation is subject, see the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2014, as well as its filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, the Corporation assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks among the top 50 U.S. banks by assets. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey and Florida.

An electronic version of this press release can be found at the Corporation’s website: www.popular.com.

Popular will hold a conference call to discuss the financial results today Monday, April 27, 2015 at 10:00 a.m. Eastern Standard Time. The call will be broadcast live over the Internet and can be accessed through the investor relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-866-235-1201 or 1-412-902-4127.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Tuesday, May 5, 2015. The replay dial in is 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10062799.

Popular, Inc.

Financial Supplement to First Quarter 2015 Earnings Release
Table A - Selected Ratios and Other Information
Table B - Consolidated Statement of Operations
Table C - Consolidated Statement of Financial Condition
Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER
Table E - Intentionally Left Blank (Consolidated Average Balances and Yield / Rate Analysis - YTD)
Table F - Mortgage Banking Activities & Other Service Fees
Table G - Loans and Deposits
Table H - Non-Performing Assets
Table I - Activity in Non-Performing Loans
Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios
Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED
Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS
Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS
Table N - Reconciliation to GAAP Financial Measures
Table O - Financial Information - Westernbank Covered Loans
Table P - Restructuring Charges

POPULAR, INC.
Financial Supplement to First Quarter 2015 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
Quarters ended
31-Mar-15 31-Dec-14 31-Mar-14
Basic EPS from continuing operations $ 0.71 $ 0.38 $ 0.64
Basic EPS from discontinued operations $ 0.01 $ 0.09 $ 0.19
Total Basic EPS $ 0.72 $ 0.47 $ 0.83
Diluted EPS from continuing operations $ 0.71 $ 0.37 $ 0.64
Diluted EPS from discontinued operations $ 0.01 $ 0.09 $ 0.19
Total Diluted EPS $ 0.72 $ 0.46 $ 0.83
Average common shares outstanding 102,939,928 102,859,416 102,799,752
Average common shares outstanding - assuming dilution 103,136,309 103,166,349 103,198,102
Common shares outstanding at end of period 103,486,927 103,476,847 103,455,535
Market value per common share $34.39 $34.05 $30.99
Market capitalization - (In millions) $3,559 $3,523 $3,206
Return on average assets 0.90% 0.58% 0.97%
.
Return on average common equity 7.02% 4.41% 7.39%

Net interest margin [1]

4.57% 4.70% 4.70%
Common equity per share $41.81 $40.76 $45.39

Tangible common book value per common share (non-GAAP)

$36.33 $35.89 $38.71

Tangible common equity to tangible assets (non-GAAP)

10.72% 11.39% 11.11%

Tier 1 capital [2]

16.19%

18.13% 19.35%

Total capital [2]

18.79%

19.41% 20.62%

Tier 1 leverage [2]

11.84%

11.94% 13.07%

Common equity Tier 1 capital [2] [3]

15.82%

15.89% 15.07%

[1] Not on a taxable equivalent basis. For the quarter ended December 31, 2014, excludes the impact of $18.6 million fees, related to repos refinancing. US GAAP Net interest margin was 4.45% for the fourth quarter. Refer to Tables D for reconciliation.

[2] Ratios for the quarter ending March 31, 2015 were calculated based on Basel III Rules, while ratios for the previous periods were calculated based on the then applicable Basel I rules.

[3] Capital ratios for the current quarter are preliminary.

POPULAR, INC.
Financial Supplement to First Quarter 2015 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
Quarters ended Variance Quarter ended Variance
(In thousands, except per share information) 31-Mar-15 31-Dec-14

Q1 2015

vs. Q4 2014

31-Mar-14

Q1 2015

vs. Q1 2014

Interest income:
Loans $ 355,631 $ 357,570 $ (1,939 ) $ 377,602 $ (21,971 )
Money market investments 1,446 1,113 333 973 473
Investment securities 30,301 30,361 (60 ) 35,127 (4,826 )
Trading account securities 2,696 2,891 (195 ) 5,257 (2,561 )
Total interest income 390,074 391,935 (1,861 ) 418,959 (28,885 )
Interest expense:
Deposits 25,864 25,473 391 26,858 (994 )
Short-term borrowings 1,734 20,489 (18,755 ) 9,040 (7,306 )
Long-term debt 19,281 19,112 169 31,890 (12,609 )
Total interest expense 46,879 65,074 (18,195 ) 67,788 (20,909 )
Net interest income 343,195 326,861 16,334 351,171 (7,976 )
Provision for loan losses - non-covered loans 29,711 51,637 (21,926 ) 54,122 (24,411 )
Provision (recovery of provision) for loan losses - covered loans 10,324 (3,646 ) 13,970 25,714 (15,390 )
Net interest income after provision for loan losses 303,160 278,870 24,290 271,335 31,825
Service charges on deposit accounts 39,017 39,456 (439 ) 39,359 (342 )
Other service fees 53,626 61,140 (7,514 ) 52,818 808
Mortgage banking activities 12,852 8,747 4,105 3,678 9,174
Net gain (loss) and valuation adjustments on investment securities - 893 (893 ) - -
Trading account profit (loss) 414 586 (172 ) 1,977 (1,563 )
Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale (79 ) 10,946 (11,025 ) 4,393 (4,472 )
Adjustments (expense) to indemnity reserves on loans sold (4,526 ) (13,348 ) 8,822 (10,347 ) 5,821
FDIC loss share income (expense) 4,139 (18,693 ) 22,832 (24,206 ) 28,345
Other operating income 9,792 13,637 (3,845 ) 28,360 (18,568 )
Total non-interest income 115,235 103,364 11,871 96,032 19,203
Operating expenses:
Personnel costs
Salaries 72,394 71,899 495 69,038 3,356
Commissions, incentives and other bonuses 18,458 18,439 19 13,099 5,359
Pension, postretirement and medical insurance 12,013 6,901 5,112 8,701 3,312
Other personnel costs, including payroll taxes 13,593 13,497 96 13,463 130
Total personnel costs 116,458 110,736 5,722 104,301 12,157
Net occupancy expenses 21,709 23,877 (2,168 ) 21,360 349
Equipment expenses 13,411 13,091 320 11,412 1,999
Other taxes 8,574 14,343 (5,769 ) 13,663 (5,089 )
Professional fees 75,528 80,383 (4,855 ) 66,999 8,529
Communications 6,176 6,119 57 6,685 (509 )
Business promotion 10,813 13,530 (2,717 ) 11,386 (573 )
FDIC deposit insurance 6,398 9,338 (2,940 ) 10,978 (4,580 )
Loss on early extinguishment of debt - 532 (532 ) - -
Other real estate owned (OREO) expenses 23,069 20,016 3,053 6,440 16,629
Credit and debit card processing, volume, interchange and other expenses 4,821 5,093 (272 ) 5,196 (375 )
Other operating expenses 12,528 17,004 (4,476 ) 17,153 (4,625 )
Amortization of intangibles 2,104 2,083 21 2,026 78
Restructuring costs 10,753 13,861 (3,108 ) - 10,753
Total operating expenses 312,342 330,006 (17,664 ) 277,599 34,743
Income from continuing operations before income tax 106,053 52,228 53,825 89,768 16,285
Income tax expense 32,568 12,472 20,096 23,264 9,304
Income from continuing operations 73,485 39,756 33,729 66,504 6,981
Income from discontinued operations, net of tax 1,341 9,086 (7,745 ) 19,905 (18,564 )
Net income $ 74,826 $ 48,842 $ 25,984 $ 86,409 $ (11,583 )
Net income applicable to common stock $ 73,895 $ 47,911 $ 25,984 $ 85,478 $ (11,583 )
Net income per common share - basic:
Net income from continuing operations $ 0.71 $ 0.38 $ 0.33 $ 0.64 $ 0.07
Net income from discontinued operations $ 0.01 $ 0.09 $ (0.08 ) $ 0.19 $ (0.18 )
Net income per common share - basic $ 0.72 $ 0.47 $ 0.25 $ 0.83 $ (0.11 )
Net income per common share - diluted:
Net income from continuing operations $ 0.71 $ 0.37 $ 0.34 $ 0.64 $ 0.07
Net income from discontinued operations $ 0.01 $ 0.09 $ (0.08 ) $ 0.19 $ (0.18 )
Net income per common share - diluted $ 0.72 $ 0.46 $ 0.26 $ 0.83 $ (0.11 )

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
Variance
Q1 2015 vs.
(In thousands) 31-Mar-15 31-Dec-14 31-Mar-14 Q4 2014
Assets:
Cash and due from banks $ 495,776 $ 381,095 $ 387,917 $ 114,681
Money market investments 2,307,215 1,822,386 1,622,433 484,829
Trading account securities, at fair value 134,294 138,527 359,247 (4,233 )
Investment securities available-for-sale, at fair value 5,548,703 5,315,159 5,768,890 233,544
Investment securities held-to-maturity, at amortized cost 101,595 103,170 139,019 (1,575 )
Other investment securities, at lower of cost or realizable value 163,038 161,906 166,556 1,132
Loans held-for-sale, at lower of cost or fair value 160,602 106,104 94,877 54,498
Loans held-in-portfolio:
Loans not covered under loss sharing agreements with the FDIC 21,110,147 19,498,286 21,703,050 1,611,861
Loans covered under loss sharing agreements with the FDIC 2,456,552 2,542,662 2,870,054 (86,110 )
Less: Unearned income 97,217 93,835 91,273 3,382
Allowance for loan losses 588,697 601,792 640,348 (13,095 )
Total loans held-in-portfolio, net 22,880,785 21,345,321 23,841,483 1,535,464
FDIC loss share asset 409,844 542,454 833,721 (132,610 )
Premises and equipment, net 492,291 494,581 513,855 (2,290 )
Other real estate not covered under loss sharing agreements with the FDIC 128,170 135,500 136,965 (7,330 )
Other real estate covered under loss sharing agreements with the FDIC 113,557 130,266 158,747 (16,709 )
Accrued income receivable 129,639 121,818 125,895 7,821
Mortgage servicing assets, at fair value 149,024 148,694 156,529 330
Other assets 1,842,934 1,646,443 1,747,646 196,491
Goodwill 508,310 465,676 647,757 42,634
Other intangible assets 59,063 37,595 42,625 21,468
Total assets $ 35,624,840 $ 33,096,695 $ 36,744,162 $ 2,528,145
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing $ 6,285,202 $ 5,783,748 $ 6,326,596 $ 501,454
Interest bearing 20,988,487 19,023,787 20,939,055 1,964,700
Total deposits 27,273,689 24,807,535 27,265,651 2,466,154
Federal funds purchased and assets sold under agreements to repurchase 1,132,643 1,271,657 2,208,213 (139,014 )
Other short-term borrowings 1,200 21,200 1,200 (20,000 )
Notes payable 1,757,313 1,711,828 1,506,408 45,485
Other liabilities 1,080,945 1,012,029 1,016,943 68,916
Liabilities from discontinued operations 1,930 5,064 - (3,134 )
Total liabilities 31,247,720 28,829,313 31,998,415 2,418,407
Stockholders’ equity:
Preferred stock 50,160 50,160 50,160 -
Common stock 1,037 1,036 1,035 1
Surplus 4,197,932 4,196,458 4,171,817 1,474
Retained earnings 327,613 253,717 679,908 73,896
Treasury stock (5,222 ) (4,117 ) (898 ) (1,105 )
Accumulated other comprehensive loss (194,400 ) (229,872 ) (156,275 ) 35,472
Total stockholders’ equity 4,377,120 4,267,382 4,745,747 109,738
Total liabilities and stockholders’ equity $ 35,624,840 $ 33,096,695 $ 36,744,162 $ 2,528,145

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER
(Unaudited)
Quarter ended Quarter ended Quarter ended Variance Variance
31-Mar-15 31-Dec-14 31-Mar-14 Q1 2015 vs. Q4 2014 Q1 2015 vs. Q1 2014
($ amounts in millions; yields not on a taxable equivalent basis) Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate Average balance Income / Expense Yield / Rate
Assets:
Interest earning assets:
Money market, trading and investment securities $ 7,767 $ 34.4 1.78 % $ 7,220 $ 34.4 1.90 % $ 7,566 $ 41.4 2.19 % $ 547 $ 0.0 (0.12 )% $ 201 ($7.0 ) (0.41 ) %
Loans not covered under loss sharing agreements with the FDIC:
Commercial 8,383 100.9 4.88 8,219 101.9 4.92 8,487 100.7 4.81 164 (1.0 ) (0.04 ) (104 ) 0.2 0.07
Construction 435 6.1 5.67 233 3.8 6.41 186 4.8 10.54 202 2.3 (0.74 ) 249 1.3 (4.87 )
Mortgage 6,733 85.9 5.10 6,538 84.1 5.15 6,691 86.9 5.20 195 1.8 (0.05 ) 42 (1.0 ) (0.10 )
Consumer 3,845 95.4 10.07 3,884 96.6 9.86 3,761 93.8 10.12 (39 ) (1.2 ) 0.21 84 1.6 (0.05 )
Lease financing 569 10.0 7.01 555 9.9 7.11 544 10.3 7.57 14 0.1 (0.10 ) 25 (0.3 ) (0.56 )
Total loans not covered under loss sharing agreements with the FDIC 19,965 298.3 6.03 19,429 296.3 6.07 19,669 296.5 6.09 536 2.0 (0.04 ) 296 1.8 (0.06 )
Loans covered under loss sharing agreements with the FDIC 2,540 57.4 9.14 2,615 61.3 9.31 2,934 81.1 11.18 (75 ) (3.9 ) (0.17 ) (394 ) (23.7 ) (2.04 )
Total loans 22,505 355.7 6.38 22,044 357.6 6.45 22,603 377.6 6.75 461 (1.9 ) (0.07 ) (98 ) (21.9 ) (0.37 )
Total interest earning assets 30,272 $ 390.1 5.20 % 29,264 $ 392.0 5.33 % 30,169 $ 419.0 5.61 % 1,008 ($1.9 ) (0.13 )% 103 ($28.9 ) (0.41 ) %
Allowance for loan losses (609 ) (618 ) (617 ) 9 8
Other non-interest earning assets 4,143 4,171 4,689 (28 ) (546 )
Assets from discontinued operations - 491 1,955 (491 ) (1,955 )
Total average assets $ 33,806 $ 33,308 $ 36,196 $ 498 $ (2,390 )
Liabilities and Stockholders' Equity:
Interest bearing deposits:
NOW and money market $ 4,983 $ 4.2 0.34 % $ 4,788 $ 4.0 0.33 % $ 4,736 $ 3.8 0.32 % $ 195 $ 0.2 0.01 % $ 247 $ 0.4 0.02 %
Savings 6,892 3.9 0.23 6,788 3.8 0.22 6,691 3.6 0.22 104 0.1 0.01 201 0.3 0.01
Time deposits 7,747 17.8 0.93 7,409 17.7 0.95 7,538 19.5 1.05 338 0.1 (0.02 ) 209 (1.7 ) (0.12 )
Total interest bearing deposits 19,622 25.9 0.53 18,985 25.5 0.53 18,965 26.9 0.57 637 0.4 - 657 (1.0 ) (0.04 )
Borrowings[1] 2,877 21.0 2.93 2,992 21.0 2.80 3,868 40.9 4.25 (115 ) - 0.13 (991 ) (19.9 ) (1.32 )
Total interest bearing liabilities 22,499 46.9 0.84 21,977 46.5 0.84 22,833 67.8 1.20 522 0.4 - (334 ) (20.9 ) (0.36 )
Net interest spread 4.36 % 4.49 % 4.41 % (0.13 )% (0.05 ) %
Non-interest bearing deposits 5,963 5,636 5,584 327 379
Other liabilities 1,021 849 894 172 127
Liabilities from discontinued operations 3 486 2,146 (483 ) (2,143 )
Stockholders' equity 4,320 4,360 4,739 (40 ) (419 )
Total average liabilities and stockholders' equity $ 33,806 $ 33,308 $ 36,196 $ 498 $ (2,390 )
Adjusted net interest income / margin non-taxable equivalent basis $ 343.2 4.57 % $ 345.5 4.70 % $ 351.2 4.70 % ($2.3 ) (0.13 )% ($8.0 ) (0.13 ) %
Impact of fees related to repos refinancing $ 18.6
Net interest income (expense)/margin non-taxable equivalent basis $ 343.2 4.57 % $ 326.9 4.45 % $ 351.2 4.70 %
(1) Borrowing cost for the fourth quarter of 2014, including the fees related to repo restructuring, was 5.27%.

Popular, Inc.

Financial Supplement to First Quarter 2015 Earnings Release
Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE

[THIS PAGE INTENTIONALLY LEFT BLANK]

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table F - Mortgage Banking Activities and Other Service Fees
(Unaudited)
Mortgage Banking Activities Variance
Quarters ended Q1 2015 vs. Q1 2015 vs.
(In thousands) 31-Mar-15 31-Dec-14 31-Mar-14 Q4 2014 Q1 2014
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees $ 12,248 $ 9,364 $ 10,748 $ 2,884 $ 1,500
Mortgage servicing rights fair value adjustments (4,929 ) (6,259 ) (8,096 ) 1,330 3,167
Total mortgage servicing fees, net of fair value adjustments 7,319 3,105 2,652 4,214 4,667
Net gain on sale of loans, including valuation on loans held-for-sale 7,280 8,382 7,176 (1,102 ) 104
Trading account (loss) profit:
Unrealized gains (losses) on outstanding derivative positions 17 (1 ) (760 ) 18 777
Realized (losses) on closed derivative positions (1,764 ) (2,739 ) (5,390 ) 975 3,626
Total trading account (loss) (1,747 ) (2,740 ) (6,150 ) 993 4,403
Total mortgage banking activities $ 12,852 $ 8,747 $ 3,678 $ 4,105 $ 9,174
Other Service Fees Variance
Quarters ended Q1 2015 vs. Q1 2015 vs.
(In thousands) 31-Mar-15 31-Dec-14 31-Mar-14 Q4 2014 Q1 2014
Other service fees:
Debit card fees $ 11,125 $ 10,929 $ 10,544 $ 196 $ 581
Insurance fees 12,041 17,711 11,719 (5,670 ) 322
Credit card fees 16,149 17,493 16,083 (1,344 ) 66
Sale and administration of investment products 5,930 7,193 6,457 (1,263 ) (527 )
Trust fees 4,602 4,469 4,463 133 139
Other fees 3,779 3,345 3,552 434 227
Total other service fees $ 53,626 $ 61,140 $ 52,818 $ (7,514 ) $ 808

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table G - Loans and Deposits
(Unaudited)
Loans - Ending Balances
Variance
(In thousands) 31-Mar-15 31-Dec-14 31-Mar-14

Q1 2015

vs. Q4 2014

Q1 2015

vs. Q1 2014

Loans not covered under FDIC loss sharing agreements:
Commercial $ 8,653,561 $ 8,134,267 $ 10,014,721 $ 519,294 $ (1,361,160 )
Construction 690,728 251,820 176,766 438,908 513,962
Legacy [1] 77,675 80,818 197,164 (3,143 ) (119,489 )
Lease financing 581,119 564,389 546,880 16,730 34,239
Mortgage 7,189,227 6,502,886 6,669,376 686,341 519,851
Consumer 3,820,620 3,870,271 4,006,870 (49,651 ) (186,250 )
Total non-covered loans held-in-portfolio $ 21,012,930 $ 19,404,451 $ 21,611,777 $ 1,608,479 $ (598,847 )
Loans covered under FDIC loss sharing agreements 2,456,552 2,542,662 2,870,054 (86,110 ) (413,502 )
Total loans held-in-portfolio $ 23,469,482 $ 21,947,113 $ 24,481,831 $ 1,522,369 $ (1,012,349 )
Loans held-for-sale:
Commercial $ 8,240 $ 309 $ - $ 7,931 $ 8,240
Legacy [1] - 319 - (319 ) -
Mortgage 152,362 100,166 94,877 52,196 57,485
Consumer - 5,310 - (5,310 ) -
Total loans held-for-sale $ 160,602 $ 106,104 $ 94,877 $ 54,498 $ 65,725
Total loans $ 23,630,084 $ 22,053,217 $ 24,576,708 $ 1,576,867 $ (946,624 )
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.
Deposits - Ending Balances
Variance
(In thousands) 31-Mar-15 31-Dec-14 31-Mar-14

Q1 2015

vs. Q4 2014

Q1 2015

vs. Q1 2014

Demand deposits [1] $ 7,163,635 $ 6,606,060 $ 7,020,844 $ 557,575 $ 142,791
Savings, NOW and money market deposits (non-brokered) 10,932,870 10,320,782 11,420,642 612,088 (487,772 )
Savings, NOW and money market deposits (brokered) 409,113 406,248 581,562 2,865 (172,449 )
Time deposits (non-brokered) 7,243,414 5,960,401 6,474,430 1,283,013 768,984
Time deposits (brokered CDs) 1,524,657 1,514,044 1,768,173 10,613 (243,516 )
Total deposits $ 27,273,689 $ 24,807,535 $ 27,265,651 $ 2,466,154 $ 8,038
[1] Includes interest and non-interest bearing demand deposits.

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table H - Non-Performing Assets
(Unaudited)
Variance
(Dollars in thousands) 31-Mar-15

As a % of

loans HIP by

category

31-Dec-14

As a % of

loans HIP by

category

31-Mar-14

As a % of

loans HIP by

category

Q1 2015

vs. Q4 2014

Q1 2015

vs. Q1 2014

Non-accrual loans:
Commercial $ 274,438 3.2 % $ 260,225 3.2 % $ 306,929 3.1 % $ 14,213 $ (32,491 )
Construction 13,214 1.9 13,812 5.5 22,464 12.7 (598 ) (9,250 )
Legacy [1] 2,288 2.9 1,545 1.9 11,608 5.9 743 (9,320 )
Lease financing 2,506 0.4 3,102 0.5 3,050 0.6 (596 ) (544 )
Mortgage 328,615 4.6 304,913 4.7 252,021 3.8 23,702 76,594
Consumer 43,892 1.1 46,886 1.2 39,262 1.0 (2,994 ) 4,630
Total non-performing loans held-in-
portfolio, excluding covered loans 664,953 3.2 % 630,483 3.3 % 635,334 2.9 % 34,470 29,619
Non-performing loans held-for-sale [2] 8,404 18,899 789 (10,495 ) 7,615
Other real estate owned (“OREO”),
excluding covered OREO 128,170 135,500 136,965 (7,330 ) (8,795 )
Total non-performing assets,
excluding covered assets 801,527 784,882 773,088 16,645 28,439
Covered loans and OREO 133,211 148,099 182,659 (14,888 ) (49,448 )
Total non-performing assets $ 934,738 $ 932,981 $ 955,747 $ 1,757 $ (21,009 )
Accruing loans past due 90 days or more [3] $ 454,681 $ 447,990 $ 409,460 $ 6,691 $ 45,221
Ratios excluding covered loans:
Non-performing loans held-in-portfolio
to loans held-in-portfolio 3.16 % 3.25 % 2.94 %
Allowance for loan losses to loans
held-in-portfolio 2.46 2.68 2.51
Allowance for loan losses to
non-performing loans, excluding loans
held-for-sale 77.63 82.43 85.40
Ratios including covered loans:
Non-performing assets to total assets 2.62 % 2.82 % 2.60 %
Non-performing loans held-in-portfolio
to loans held-in-portfolio 2.92 2.95 2.69
Allowance for loan losses to loans
held-in-portfolio 2.51 2.74 2.62
Allowance for loan losses to non-performing
loans, excluding loans held-for-sale 85.99 92.82 97.13
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.
[2] Non-performing loans held-for-sale as of March 31, 2015 consisted of $225 thousand in mortgage loans and $8.2 million in commercial loans (December 31, 2014 - $14.0 million in mortgage loans, $309 thousand in commercial loans and $4.5 million in consumer loans; March 31, 2014 - $789 thousand in mortgage loans).
[3] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These balances include $134 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2015 (December 31, 2014 - $125 million; March 31, 2014 - $117 million). Furthermore, the Corporation has approximately $69 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (December 31, 2014 - $66 million; March 31, 2014 - $52 million).

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table I - Activity in Non-Performing Loans
(Unaudited)
Commercial loans held-in-portfolio:
Quarter ended Quarter ended
31-Mar-15 31-Dec-14
(In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc.
Beginning balance NPLs $ 257,910 $ 2,315 $ 260,225 $ 244,425 $ 7,906 $ 252,331
Plus:
New non-performing loans[1] 27,426 8,030 35,456 112,769 1,245 114,014
Less:
Non-performing loans transferred to OREO (1,069 ) - (1,069 ) (2,072 ) - (2,072 )
Non-performing loans charged-off (8,375 ) (426 ) (8,801 ) (17,492 ) (1,298 ) (18,790 )
Loans returned to accrual status / loan collections (11,261 ) (112 ) (11,373 ) (79,720 ) (2,895 ) (82,615 )
Loans transferred to held-for-sale - - - - (3,025 ) (3,025 )
Non-performing loans transferred from (to) discontinued operations - - - - 382 382
Ending balance NPLs $ 264,631 $ 9,807 $ 274,438 $ 257,910 $ 2,315 $ 260,225

[1] New non-performing loans includes $1.2 million at BPPR and $7.4 million at BPNA from Doral Acquisition.

Construction loans held-in-portfolio:
Quarter ended Quarter ended
31-Mar-15 31-Dec-14
(In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc.
Beginning balance NPLs $ 13,812 $ - $ 13,812 $ 19,148 $ - $ 19,148
Plus:
New non-performing loans 456 - 456 573 - 573
Less:
Non-performing loans charged-off - - - (244 ) - (244 )
Loans returned to accrual status / loan collections (1,054 ) - (1,054 ) (5,665 ) - (5,665 )
Ending balance NPLs $ 13,214 $ - $ 13,214 $ 13,812 $ - $ 13,812

Mortgage loans held-in-portfolio:
Quarter ended Quarter ended
31-Mar-15 31-Dec-14
(In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc.
Beginning balance NPLs $ 295,629 $ 9,284 $ 304,913 $ 283,433 $ 11,692 $ 295,125
Plus:
New non-performing loans[1] 107,385 6,232 113,617 91,977 8,159 100,136
Less:
Non-performing loans transferred to OREO (4,845 ) - (4,845 ) (1,051 ) - (1,051 )
Non-performing loans charged-off (8,158 ) (123 ) (8,281 ) (8,951 ) (96 ) (9,047 )
Loans returned to accrual status / loan collections (69,857 ) (8,970 ) (78,827 ) (69,779 ) (4,309 ) (74,088 )
Loans transferred to held-for-sale - 2,038 2,038 - (6,162 ) (6,162 )
Ending balance NPLs $ 320,154 $ 8,461 $ 328,615 $ 295,629 $ 9,284 $ 304,913

[1] New non-performing loans includes $16.6 million of loans previously serviced by Doral.

Legacy loans held-in-portfolio:
Quarter ended Quarter ended
31-Mar-15 31-Dec-14
(In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc.
Beginning balance NPLs $ - $ 1,545 $ 1,545 $ - $ 5,648 $ 5,648
Plus:
New non-performing loans - 1,000 1,000 - 213 213
Advances on existing non-performing loans - 33 33 - 97 97
Less:
Non-performing loans charged-off - (141 ) (141 ) - (744 ) (744 )
Loans returned to accrual status / loan collections - (149 ) (149 ) - (2,791 ) (2,791 )
Loans transferred to held-for-sale - - - - (878 ) (878 )
Ending balance NPLs $ - $ 2,288 $ 2,288 $ - $ 1,545 $ 1,545
Total non-performing loans held-in-portfolio (excluding consumer loans):
Quarter ended Quarter ended
31-Mar-15 31-Dec-14
(In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc.
Beginning balance NPLs $ 567,351 $ 13,144 $ 580,495 $ 547,006 $ 25,246 $ 572,252
Plus:
New non-performing loans 135,267 15,262 150,529 205,319 9,617 214,936
Advances on existing non-performing loans - 33 33 - 97 97
Less:
Non-performing loans transferred to OREO (5,914 ) - (5,914 ) (3,123 ) - (3,123 )
Non-performing loans charged-off (16,533 ) (690 ) (17,223 ) (26,687 ) (2,138 ) (28,825 )
Loans returned to accrual status / loan collections (82,172 ) (9,231 ) (91,403 ) (155,164 ) (9,995 ) (165,159 )
Loans transferred to held-for-sale - 2,038 2,038 - (10,065 ) (10,065 )
Non-performing loans transferred from (to) discontinued operations - - - - 382 382
Ending balance NPLs $ 597,999 $ 20,556 $ 618,555 $ 567,351 $ 13,144 $ 580,495

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)
Quarter ended Quarter ended Quarter ended
31-Mar-15 31-Dec-14 31-Mar-14
(Dollars in thousands) Non-covered loans Covered loans Total Non-covered loans Covered loans Total Non-covered loans Covered loans Total
Balance at beginning of period $ 519,719 $ 82,073 $ 601,792 $ 521,687 $ 89,688 $ 611,375 $ 538,463 $ 102,092 $ 640,555
Provision for loan losses - Continuing operations 29,711 10,324 40,035 51,637 (3,646 ) 47,991 54,122 25,714 79,836
Provision (reversal of provision) for loan losses - Discontinued operations - - - - - - (6,764 ) - (6,764 )
549,430 92,397 641,827 573,324 86,042 659,366 585,821 127,806 713,627
Net loans charged-off (recovered):
BPPR
Commercial 4,802 11,599 16,401 13,890 3,230 17,120 15,173 7,648 22,821
Construction (2,925 ) 5,771 2,846 (279 ) (1,172 ) (1,451 ) (1,378 ) 21,092 19,714
Lease financing 769 - 769 751 (6 ) 745 656 - 656
Mortgage 10,473 3,281 13,754 12,228 2,725 14,953 8,516 1,656 10,172
Consumer 23,653 (727 ) 22,926 25,933 (808 ) 25,125 22,983 (363 ) 22,620
Total BPPR 36,772 19,924 56,696 52,523 3,969 56,492 45,950 30,033 75,983
BPNA
Commercial (479 ) - (479 ) (900 ) - (900 ) 1,987 - 1,987
Construction - - - (2 ) - (2 ) (176 ) - (176 )
Legacy [1] (1,828 ) - (1,828 ) (3,877 ) - (3,877 ) (4,209 ) - (4,209 )
Mortgage 154 - 154 (93 ) - (93 ) 870 - 870
Consumer 1,267 - 1,267 2,536 - 2,536 4,369 - 4,369
Discontinued operations - - - - - - (5,545 ) - (5,545 )
Total BPNA (886 ) - (886 ) (2,336 ) - (2,336 ) (2,704 ) - (2,704 )
Total loans charged-off (recovered) - Popular, Inc. 35,886 19,924 55,810 50,187 3,969 54,156 43,246 30,033 73,279
Net recoveries (write-downs) [3] 2,680 - 2,680 (3,418 ) - (3,418 ) - - -
Balance at end of period $ 516,224 $ 72,473 $ 588,697 $ 519,719 $ 82,073 $ 601,792 $ 542,575 $ 97,773 $ 640,348
POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio 0.72 % 1.00 % 1.04 % 0.99 % 0.80 % 1.20 %
Provision for loan losses to net charge-offs [2] 0.83 x 0.72 x 0.99 x 0.85 x 1.10 x 1.00 x
BPPR
Annualized net charge-offs to average loans held-in-portfolio 0.92 % 1.22 % 1.33 % 1.22 % 1.16 % 1.62 %
Provision for loan losses to net charge-offs [2] 0.87 x 0.74 x 0.99 x 0.86 x 1.17 x 1.05 x
BPNA
Annualized net charge-offs (recoveries) to average loans held-in-portfolio (0.09 ) % (0.27 ) % (0.19 ) %
Provision for loan losses to net charge-offs N.M. N.M. N.M. x
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.
[2] Excluding provision for loan losses and net write-down related to loans sold or reclassified to held-for-sale during the quarter ended December 31, 2014.

[3] Net write-downs for the quarter ended March 31, 2015 and December 31, 2014 are related to loans sold or reclassified to held-for-sale.

N.M. - Not meaningful.

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED
(Unaudited)
31-Mar-15
(Dollars in thousands) Commercial Construction Legacy [3] Mortgage

Lease

financing

Consumer Total [2]
Specific ALLL $ 69,946 $ 158 $ - $ 42,570 $ 687 $ 25,604 $ 138,965
Impaired loans [1] $ 417,377 $ 9,838 $ - $ 450,612 $ 2,924 $ 116,464 $ 997,215
Specific ALLL to impaired loans [1] 16.76 % 1.61 % - % 9.45 % 23.50 % 21.98 % 13.94 %
General ALLL $ 135,946 $ 3,286 $ 2,962 $ 86,271 $ 6,521 $ 142,273 $ 377,259
Loans held-in-portfolio, excluding impaired loans [1] $ 8,236,184 $ 680,890 $ 77,675 $ 6,738,615 $ 578,195 $ 3,704,156 $ 20,015,715
General ALLL to loans held-in-portfolio, excluding impaired loans [1] 1.65 % 0.48 % 3.81 % 1.28 % 1.13 % 3.84 % 1.88 %
Total ALLL $ 205,892 $ 3,444 $ 2,962 $ 128,841 $ 7,208 $ 167,877 $ 516,224
Total non-covered loans held-in-portfolio [1] $ 8,653,561 $ 690,728 $ 77,675 $ 7,189,227 $ 581,119 $ 3,820,620 $ 21,012,930
ALLL to loans held-in-portfolio [1] 2.38 % 0.50 % 3.81 % 1.79 % 1.24 % 4.39 % 2.46 %
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of March 31, 2015 the general allowance on the covered loans amounted to $71.0 million, while the specific reserve amounted to $1.5 million.
[3] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.
31-Dec-14
(Dollars in thousands) Commercial Construction Legacy [3] Mortgage

Lease

financing

Consumer Total [2]
Specific ALLL $ 64,736 $ 363 $ - $ 46,111 $ 770 $ 28,161 $ 140,141
Impaired loans [1] $ 357,161 $ 13,268 $ - $ 435,824 $ 3,023 $ 117,732 $ 927,008
Specific ALLL to impaired loans [1] 18.13 % 2.74 % - % 10.58 % 25.47 % 23.92 % 15.12 %
General ALLL $ 146,501 $ 6,307 $ 2,944 $ 77,211 $ 6,361 $ 140,254 $ 379,578
Loans held-in-portfolio, excluding impaired loans [1] $ 7,777,106 $ 238,552 $ 80,818 $ 6,067,062 $ 561,366 $ 3,752,539 $ 18,477,443
General ALLL to loans held-in-portfolio, excluding impaired loans [1] 1.88 % 2.64 % 3.64 % 1.27 % 1.13 % 3.74 % 2.05 %
Total ALLL $ 211,237 $ 6,670 $ 2,944 $ 123,322 $ 7,131 $ 168,415 $ 519,719
Total non-covered loans held-in-portfolio [1] $ 8,134,267 $ 251,820 $ 80,818 $ 6,502,886 $ 564,389 $ 3,870,271 $ 19,404,451
ALLL to loans held-in-portfolio [1] 2.60 % 2.65 % 3.64 % 1.90 % 1.26 % 4.35 % 2.68 %
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of December 31, 2014 the general allowance on the covered loans amounted to $82.1 million, while the specific reserve amounted to $5 thousand.
[3] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.
Variance
(Dollars in thousands) Commercial Construction Legacy Mortgage Lease financing Consumer Total
Specific ALLL $ 5,210 $ (205) $ - $ (3,541) $ (83) $ (2,557) $ (1,176)
Impaired loans $ 60,216 $ (3,430) $ - $ 14,788 $ (99) $ (1,268) $ 70,207
General ALLL $ (10,555) $ (3,021) $ 18 $ 9,060 $ 160 $ 2,019 $ (2,319)
Loans held-in-portfolio, excluding impaired loans $ 459,078 $ 442,338 $ (3,143) $ 671,553 $ 16,829 $ (48,383) $ 1,538,272
Total ALLL $ (5,345) $ (3,226) $ 18 $ 5,519 $ 77 $ (538) $ (3,495)
Total non-covered loans held-in-portfolio $ 519,294 $ 438,908 $ (3,143) $ 686,341 $ 16,730 $ (49,651) $ 1,608,479

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS
(Unaudited)
31-Mar-15
Puerto Rico
(In thousands) Commercial Construction Mortgage Lease financing Consumer Total
Allowance for credit losses:
Specific ALLL non-covered loans $ 69,946 $ 158 $ 42,229 $ 687 $ 25,223 $ 138,243
General ALLL non-covered loans 125,520 1,437 84,350 6,521 128,205 346,033
ALLL - non-covered loans 195,466 1,595 126,579 7,208 153,428 484,276
Specific ALLL covered loans 1,473 - - - - 1,473
General ALLL covered loans 19,794 7,707 40,469 - 3,030 71,000
ALLL - covered loans 21,267 7,707 40,469 - 3,030 72,473
Total ALLL $ 216,733 $ 9,302 $ 167,048 $ 7,208 $ 156,458 $ 556,749
Loans held-in-portfolio:
Impaired non-covered loans $ 417,377 $ 9,838 $ 445,506 $ 2,924 $ 114,416 $ 990,061
Non-covered loans held-in-portfolio, excluding impaired loans 5,984,132 88,868 5,725,741 578,195 3,237,790 15,614,726
Non-covered loans held-in-portfolio 6,401,509 98,706 6,171,247 581,119 3,352,206 16,604,787
Impaired covered loans 8,394 2,336 - - - 10,730
Covered loans held-in-portfolio, excluding impaired loans 1,562,753 55,489 795,477 - 32,103 2,445,822
Covered loans held-in-portfolio 1,571,147 57,825 795,477 - 32,103 2,456,552
Total loans held-in-portfolio $ 7,972,656 $ 156,531 $ 6,966,724 $ 581,119 $ 3,384,309 $ 19,061,339
31-Dec-14
Puerto Rico
(In thousands) Commercial Construction Mortgage Lease financing Consumer Total
Allowance for credit losses:
Specific ALLL non-covered loans $ 64,736 $ 363 $ 45,838 $ 770 $ 27,796 $ 139,503
General ALLL non-covered loans 136,853 5,120 75,022 6,361 126,276 349,632
ALLL - non-covered loans 201,589 5,483 120,860 7,131 154,072 489,135
Specific ALLL covered loans 5 - - - - 5
General ALLL covered loans 30,866 7,202 40,948 - 3,052 82,068
ALLL - covered loans 30,871 7,202 40,948 - 3,052 82,073
Total ALLL $ 232,460 $ 12,685 $ 161,808 $ 7,131 $ 157,124 $ 571,208
Loans held-in-portfolio:
Impaired non-covered loans $ 356,911 $ 13,268 $ 431,569 $ 3,023 $ 115,759 $ 920,530
Non-covered loans held-in-portfolio, excluding impaired loans 6,017,892 146,116 5,018,932 561,366 3,273,278 15,017,584
Non-covered loans held-in-portfolio 6,374,803 159,384 5,450,501 564,389 3,389,037 15,938,114
Impaired covered loans 4,487 2,419 - - - 6,906
Covered loans held-in-portfolio, excluding impaired loans 1,610,294 67,917 822,986 - 34,559 2,535,756
Covered loans held-in-portfolio 1,614,781 70,336 822,986 - 34,559 2,542,662
Total loans held-in-portfolio $ 7,989,584 $ 229,720 $ 6,273,487 $ 564,389 $ 3,423,596 $ 18,480,776
Variance
(In thousands) Commercial Construction Mortgage Lease financing Consumer Total
Allowance for credit losses:
Specific ALLL non-covered loans $ 5,210 $ (205 ) $ (3,609 ) $ (83 ) $ (2,573 ) $ (1,260 )
General ALLL non-covered loans (11,333 ) (3,683 ) 9,328 160 1,929 (3,599 )
ALLL - non-covered loans (6,123 ) (3,888 ) 5,719 77 (644 ) (4,859 )
Specific ALLL covered loans 1,468 - - - - 1,468
General ALLL covered loans (11,072 ) 505 (479 ) - (22 ) (11,068 )
ALLL - covered loans (9,604 ) 505 (479 ) - (22 ) (9,600 )
Total ALLL $ (15,727 ) $ (3,383 ) $ 5,240 $ 77 $ (666 ) $ (14,459 )
Loans held-in-portfolio:
Impaired non-covered loans $ 60,466 $ (3,430 ) $ 13,937 $ (99 ) $ (1,343 ) $ 69,531
Non-covered loans held-in-portfolio, excluding impaired loans (33,760 ) (57,248 ) 706,809 16,829 (35,488 ) 597,142
Non-covered loans held-in-portfolio 26,706 (60,678 ) 720,746 16,730 (36,831 ) 666,673
Impaired covered loans 3,907 (83 ) - - - 3,824
Covered loans held-in-portfolio, excluding impaired loans (47,541 ) (12,428 ) (27,509 ) - (2,456 ) (89,934 )
Covered loans held-in-portfolio (43,634 ) (12,511 ) (27,509 ) - (2,456 ) (86,110 )
Total loans held-in-portfolio $ (16,928 ) $ (73,189 ) $ 693,237 $ 16,730 $ (39,287 ) $ 580,563

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS
(Unaudited)
31-Mar-15
U.S. Mainland
(In thousands) Commercial Construction Legacy Mortgage Consumer Total
Allowance for credit losses:
Specific ALLL $ - $ - $ - $ 341 $ 381 $ 722
General ALLL 10,426 1,849 2,962 1,921 14,068 31,226
Total ALLL $ 10,426 $ 1,849 $ 2,962 $ 2,262 $ 14,449 $ 31,948
Loans held-in-portfolio:
Impaired loans $ - $ - $ - $ 5,106 $ 2,048 $ 7,154
Loans held-in-portfolio, excluding impaired loans 2,252,052 592,022 77,675 1,012,874 466,366 4,400,989
Total loans held-in-portfolio $ 2,252,052 $ 592,022 $ 77,675 $ 1,017,980 $ 468,414 $ 4,408,143
31-Dec-14
U.S. Mainland
(In thousands) Commercial Construction Legacy Mortgage Consumer Total
Allowance for credit losses:
Specific ALLL $ - $ - $ - $ 273 $ 365 $ 638
General ALLL 9,648 1,187 2,944 2,189 13,978 29,946
Total ALLL $ 9,648 $ 1,187 $ 2,944 $ 2,462 $ 14,343 $ 30,584
Loans held-in-portfolio:
Impaired loans $ 250 $ - $ - $ 4,255 $ 1,973 $ 6,478
Loans held-in-portfolio, excluding impaired loans 1,759,214 92,436 80,818 1,048,130 479,261 3,459,859
Total loans held-in-portfolio $ 1,759,464 $ 92,436 $ 80,818 $ 1,052,385 $ 481,234 $ 3,466,337
Variance
(In thousands) Commercial Construction Legacy Mortgage Consumer Total
Allowance for credit losses:
Specific ALLL $ - $ - $ - $ 68 $ 16 $ 84
General ALLL 778 662 18 (268 ) 90 1,280
Total ALLL $ 778 $ 662 $ 18 $ (200 ) $ 106 $ 1,364
Loans held-in-portfolio:
Impaired loans $ (250 ) $ - $ - $ 851 $ 75 $ 676
Loans held-in-portfolio, excluding impaired loans 492,838 499,586 (3,143 ) (35,256 ) (12,895 ) 941,130
Total loans held-in-portfolio $ 492,588 $ 499,586 $ (3,143 ) $ (34,405 ) $ (12,820 ) $ 941,806

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table N - Reconciliation to GAAP Financial Measures
(Unaudited)
(In thousands, except share or per share information) 31-Mar-15 31-Dec-14 31-Mar-14
Total stockholders’ equity $ 4,377,120 $ 4,267,382 $ 4,745,747
Less: Preferred stock (50,160 ) (50,160 ) (50,160 )
Less: Goodwill (508,310 ) (465,676 ) (647,757 )
Less: Other intangibles (59,063 ) (37,595 ) (42,625 )
Total tangible common equity $ 3,759,587 $ 3,713,951 $ 4,005,205
Total assets $ 35,624,840 $ 33,096,695 $ 36,744,162
Less: Goodwill (508,310 ) (465,676 ) (647,757 )
Less: Other intangibles (59,063 ) (37,595 ) (42,625 )
Total tangible assets $ 35,057,467 $ 32,593,424 $ 36,053,780
Tangible common equity to tangible assets 10.72 % 11.39 % 11.11 %
Common shares outstanding at end of period 103,486,927 103,476,847 103,455,535
Tangible book value per common share $ 36.33 $ 35.89 $ 38.71

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table O - Financial Information - Westernbank Covered Loans
(Unaudited)
Revenues
Quarters ended
(In thousands) 31-Mar-15 31-Dec-14 Variance
Interest income on covered loans $ 57,431 $ 61,285 $ (3,854 )
FDIC loss share income (expense):
Amortization of indemnification asset (27,316 ) (28,948 ) 1,632
80% mirror accounting on credit impairment losses [1] 8,246 (3,287 ) 11,533
80% mirror accounting on reimbursable expenses 21,545 18,742 2,803
80% mirror accounting on recoveries on covered assets, including rental income on OREOs,
subject to reimbursement to the FDIC (2,619 ) (2,542 ) (77 )
Change in true-up payment obligation 4,164 (2,831 ) 6,995
Other 119 173 (54 )
Total FDIC loss share income (expense) 4,139 (18,693 ) 22,832
Total revenues 61,570 42,592 18,978
Provision for loan losses 10,324 (3,646 ) 13,970
Total revenues less provision for loan losses $ 51,246 $ 46,238 $ 5,008
[1] Reductions in expected cash flows for ASC 310-30 loans, which may impact the provision for loan losses, may consider reductions in both principal and interest cash flow expectations. The amount covered under the FDIC loss sharing agreements for interest not collected from borrowers is limited under the agreements (approximately 90 days); accordingly, these amounts are not subject fully to the 80% mirror accounting.
Non-personnel operating expenses
Quarters ended
(In thousands) 31-Mar-15 31-Dec-14 Variance
Professional fees $ 3,225 $ 7,167 $ (3,942 )
OREO expenses 13,823 13,116 707
Other operating expenses 2,461 2,668 (207 )
Total operating expenses $ 19,509 $ 22,951 $ (3,442 )
Expense reimbursements from the FDIC may be recorded with a time lag, since these are claimed upon the event of loss or charge-off of the loans which may occur in a subsequent period.
Quarterly average assets
Quarters ended
(In millions) 31-Mar-15 31-Dec-14 Variance
Covered loans $ 2,540 $ 2,615 $ (75 )
FDIC loss share asset 429 616 (187 )

Activity in the carrying amount and accretable yield of covered loans accounted for under ASC 310-30
Quarters ended
31-Mar-15 31-Dec-14
(In thousands) Accretable yield

Carrying amount

of loans

Accretable yield

Carrying amount

of loans

Beginning balance $ 1,271,337 $ 2,444,172 $ 1,312,521 $ 2,528,433
Accretion (55,697 ) 55,697 (59,474 ) 59,474
Changes in expected cash flows 43,308 - 18,290 -
Collections / charge-offs - (132,773 ) - (143,735 )
Ending balance 1,258,948 2,367,096 1,271,337 2,444,172
Allowance for loan losses - ASC 310-30 covered loans - (68,386 ) - (78,846 )
Ending balance, net of allowance for loan losses $ 1,258,948 $ 2,298,710 $ 1,271,337 $ 2,365,326
Activity in the carrying amount of the FDIC indemnity asset
Quarters ended
(In thousands) 31-Mar-15 31-Dec-14
Balance at beginning of period $ 542,454 $ 636,331
Amortization (27,316 ) (28,948 )
Credit impairment losses to be covered under loss sharing agreements 8,246 (3,287 )
Reimbursable expenses to be covered under loss sharing agreements 21,545 18,742
Net payments from FDIC under loss sharing agreements (132,265 ) (77,697 )
Other adjustments attributable to FDIC loss sharing agreements (2,820 ) (2,687 )
Balance at end of period 409,844 542,454
Activity in the remaining FDIC loss share asset amortization
Quarters ended
(In thousands) 31-Mar-15 31-Dec-14
Balance at beginning of period $ 53,095 $ 66,562
Amortization (27,316 ) (28,948 )
Impact of lower projected losses 12,908 15,481
Balance at end of period $ 38,687 $ 53,095

POPULAR, INC.
Financial Supplement to First Quarter 2015 Earnings Release
Table P - Restructuring Charges
(Unaudited)
Restructuring Charges
Quarters ended
(In thousands) 31-Mar-15 31-Dec-14 Variance
Personnel costs $ 9,366 $ 7,692 $ 1,674
Net occupancy expenses 386 3,482 (3,096)
Equipment expenses 158 126 32
Professional fees 466 1,254 (788)
Other operating expenses 377 1,307 (930)
Total restructuring costs $ 10,753 $ 13,861 $ (3,108)

Popular, Inc.

Investor Relations:

Brett Scheiner, 212-417-6721

Investor Relations Officer

or

Media Relations:

Teruca Rullán, 787-281-5170

Mobile: 917-679-3596

Senior Vice President, Corporate Communications

Source: Popular, Inc.

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