Popular (BPOP) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Popular, Inc. Reports Net Income of $83.9 million for the Fourth Quarter and $245.3 million for the Year Ended December 31, 2012

• Significant progress in credit quality (excluding covered loans):
  • Non-performing loans held-in-portfolio declined by $125.4 million or 8% from Q3 2012, and down 39% from Q3 2010 peak; lowest level since Q2 2009;
  • Inflows of commercial, construction and legacy non-performing loans held-in-portfolio for Q4 2012 down by $72.9 million, or 51%, from Q3 2012, and down $401.9 million, or 47%, year over year;
  • Non-performing assets decreased by $384.4 million, or 18%, year over year;
  • Net charge-offs of $100.9 million for Q4 2012, vs. $95.8 million for Q3 2012, and $126.0 million for Q4 2011;
  • Net charge-offs declined $131.3 million, or 25%, year over year.
• Net interest margin increased to 4.41% in Q4 2012
• Average balance of non-covered loans grew by $361.1 million in Q4 2012, reflecting strong mortgage and commercial originations in Puerto Rico and purchases of high-quality U.S. mortgages
• Common Equity Tier 1 ratio of 13.18% and Tangible Book Value per Share of $32.55 at December 31, 2012; capital exceeds well-capitalized threshold by $1.9 billion

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--January 24, 2013--Popular, Inc. (“the Corporation” or “Popular”) (NASDAQ:BPOP) reported net income of $83.9 million for the quarter ended December 31, 2012, compared with net income of $47.2 million for the quarter ended September 30, 2012.

Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said: “Our fourth quarter results reflect the strength of our core businesses and market positions, significant further declines in non-performing loans and increases in our already strong capital ratios. In 2013, we remain focused on driving value through further progress on all these fronts and continuing to increase our strategic and financial flexibility.”

Significant events for the quarter ended December 31, 2012

• During the month of December 2012, the Corporation received a $24.2 million cash dividend from its investment in EVERTEC’s parent company. Also, the Corporation recorded pre-tax income of approximately $31.6 million related to its proportionate share of a tax benefit from a tax grant received by EVERTEC from the Puerto Rico Government. The Corporation’s equity investment balance in the entity stands at $73.9 million as of year-end. The Corporation’s participation interest in the entity was 48.5% as of December 31, 2012.

Earnings Highlights
	Quarters ended			Years ended
(Dollars in thousands, except per share information)	31-Dec-12	30-Sep-12	31-Dec-11	31-Dec-12	31-Dec-11
Net interest income	$ 350,411	$ 343,426	$ 344,780	$ 1,372,619	$ 1,431,992
Provision for loan losses – non-covered loans	86,256	83,589	123,908	334,102	430,085
Provision for loan losses – covered loans [1]	(3,445)	22,619	55,900	74,839	145,635
Net interest income after provision for loan losses	267,600	237,218	164,972	963,678	856,272
FDIC loss share (expense) income	(36,824)	(6,707)	17,447	(56,211)	66,791
Other non-interest income	169,825	122,416	131,912	522,553	493,486
Operating expenses	296,747	290,355	311,093	1,211,148	1,150,297
Income before income tax	103,854	62,572	3,238	218,872	266,252
Income tax expense (benefit)	19,914	15,384	263	(26,403)	114,927
Net income	$ 83,940	$ 47,188	$ 2,975	$ 245,275	$ 151,325
Net income applicable to common stock	$ 83,009	$ 46,257	$ 2,044	$ 241,552	$ 147,602
Net income per common share - basic and diluted [2]	$ 0.81	$ 0.45	$ 0.02	$ 2.35	$ 1.44
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.
[2] Per share data has been adjusted to retroactively reflect the 1-for-10 reverse stock split effected on May 29, 2012.

Financial Impact of FDIC-Assisted Transaction
	Quarters ended			Years ended
(In thousands)	31-Dec-12	30-Sep-12	31-Dec-11	31-Dec-12	31-Dec-11
Income Statement
Interest income on covered loans	$ 76,998	$ 70,584	$ 88,424	$ 301,441	$ 412,678
Total FDIC loss share (expense) income	(36,824)	(6,707)	17,447	(56,211)	66,791
Other non-interest income	281	310	1,092	1,211	12,810
Provision for loan losses	(3,445)	22,619	55,900	74,839	145,635
Total revenues less provision for loan losses	$ 43,900	$ 41,568	$ 51,063	$ 171,602	$ 346,644
Balance Sheet
Loans covered under loss-sharing agreements with FDIC	$ 3,755,972	$ 3,903,867	$ 4,348,703
FDIC loss share asset	1,399,098	1,559,057	1,915,128
FDIC true-up payment obligation	111,519	103,189	98,340

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

Net interest income

Net interest margin for the fourth quarter of 2012 increased 4 basis points to 4.41% when compared with the third quarter of 2012. Net interest income reached $350.4 million, an increase of $7.0 million from the third quarter. The main drivers of the improvement in net interest margin are:

• Increase of $6.4 million in interest income on the covered loan portfolio. The higher yield of the covered loan portfolio was mainly the result of a substantial reduction in expected losses and the resolution of certain commercial loans in excess of their book value.
• Decrease of approximately $2.1 million, or 3 basis points, in interest expense on deposits, reflecting continuing progress in repricing the deposit base and a decrease in the average balance of deposits, mainly in brokered and non-brokered certificates of deposit.
• Decrease of approximately $1.8 million, or 24 basis points in interest expense on notes payable, driven by replacing long-term FHLB advances with brokered certificates of deposit and repurchase agreements at a lower cost.

• Banco Popular de Puerto Rico’s (BPPR) net interest margin increased 7 basis points from 5.11% in the third quarter to 5.18% in the fourth quarter. Net interest income amounted to $309.1 million for the quarter ended December 31, 2012, compared with $300.9 million for the previous quarter. The improvement was mainly the result of higher interest income from covered loans and a lower cost of borrowings as mentioned above.
• Banco Popular North America (BPNA) earned $68.5 million in net interest income for the quarter ended December 31, 2012 compared with $69.6 million in the previous quarter. The decrease in the net interest margin of 6 basis points to 3.51% was mainly caused by a decrease in the yield of commercial and mortgage loans and of investment securities due to prepayments, partially offset by a 12 basis point reduction in the cost of interest-bearing deposits.

Provision for Loan Losses
	Quarters ended							Years ended
(In thousands)	31-Dec-12			30-Sep-12		31-Dec-11		31-Dec-12		31-Dec-11
Provision for loan losses - non-covered loans
BPPR	$	78,092		$	69,738	$	88,128	$	282,061	$	341,596
BPNA		8,164			13,851		35,780		52,041		88,489
Total provision for loan losses- non-covered loans		86,256			83,589		123,908		334,102		430,085
Provision (reversal) for loan losses - covered loans		(3,445	)		22,619		55,900		74,839		145,635
Total provision for loan losses	$	82,811		$	106,208	$	179,808	$	408,941	$	575,720

The provision for loan losses for the fourth quarter of 2012 amounted to $82.8 million, a decrease of $23.4 million versus the previous quarter, mainly driven by lower provision for the covered loan portfolio.

• The provision for loan losses for the non-covered loan portfolio increased by $2.7 million from third quarter 2012.
  • The provision for loan losses for non-covered loans at BPPR increased by $8.4 million from the third quarter of 2012, primarily reflecting higher net charge-offs in the commercial loan portfolio mainly related to one particular relationship.
  • The provision for loan losses at BPNA operations decreased by $5.7 million from the third quarter of 2012, primarily due to continued improvements in credit trends.
• The provision for loan losses on the covered loan portfolio decreased by $26.1 million from the third quarter 2012, driven primarily by loans accounted for pursuant to ASC 310-30.
  • The provision for loan losses for loans accounted under ASC 310-30 was $1.6 million for the fourth quarter of 2012, compared with $17.9 million for the previous quarter. The $16.3 million decrease was mostly due to certain commercial and construction loan pools, which reflected lower expected loss estimates for the fourth quarter of 2012. Overall expected losses on the covered portfolio continue to be lower than originally estimated.
  • The provision for loan losses on covered loans accounted under ASC 310-20 declined by $9.8 million from the previous quarter, primarily driven by a reduction in the specific reserve of a particular commercial loan relationship.

Non-interest income

Non-interest income increased by $17.3 million versus the third quarter, driven primarily by the following items:

• A $37.9 million increase in other operating income principally due to $31.6 million of income recorded from the Corporation’s interest in EVERTEC during the fourth quarter related to its proportionate share of a tax benefit from a tax grant received by EVERTEC from the Puerto Rico Government.
• An $11.7 million increase in net gain on sale of loans as a result of higher gains on securitization transactions at BPPR and sales of U.S. commercial loans held-for-sale.
• Reduction of $5.5 million in adjustments to the indemnity reserves on loans sold, mainly as a result of improvements in delinquency trends of mortgage loans serviced subject to credit recourse as well as a declining portfolio and lower provision in the representations and warranties reserve in the U.S. mainland. The Corporation stopped selling loans subject to credit recourse in 2009.

These increases were partially offset by:

• An increase of $3.7 million in trading account losses mainly driven by lower gain on sale of trading securities. During the third quarter the Corporation sold approximately $140.7 million in trading mortgage-backed securities which resulted in a gain on sale of approximately $3.4 million, net of hedging costs. Also, during the fourth quarter there were higher unrealized losses on trading mortgage-backed securities due to higher prepayment rates and higher realized and unrealized losses of local municipal bonds due to rating downgrades of municipal agencies in Puerto Rico.

• An increase of $30.1 million in FDIC loss-share expense, principally caused by higher amortization of the loss-share asset due to lower expected losses, a release of allowance for loan and lease losses during the fourth quarter and higher unfavorable fair value adjustments of $5.3 million in the true-up payment obligation. See additional details about covered portfolio and FDIC indemnity asset in Table O.

Refer to table B for further details.

Operating expenses

Operating expenses increased by $6.4 million versus the third quarter, driven primarily by the following items:

• An increase of $4.8 million in personnel costs, driven mainly by sales incentives, retail commissions, training expenses and other compensation costs.
• An increase of $2.5 million in net occupancy expenses related to higher expenses at BPNA for property maintenance and repair and rent and higher real property taxes in the Puerto Rico and U.S. operations.
• An increase of $4.8 million in professional fees mainly due to appraisal and programming costs, processing fees, and other technology costs related to services from EVERTEC.
• An increase of $1.9 million in business promotion expenses tied to year-end institutional campaigns in Puerto Rico and higher expenses in customer affinity programs.
• An increase of $9.0 million in other operating expenses due mainly to higher costs associated with the Westernbank covered loan portfolio, of which 80% are reimbursable by the FDIC, and higher provision for operational losses in the Puerto Rico and US operations. These costs were partially offset by a lower provision for unused commitments at BPPR.

These increases were partially offset by:

• Lower FDIC deposit insurance expenses of $10.5 million, driven mainly by revisions in the deposit insurance premium calculation and efficiencies achieved from the internal reorganization of Popular Mortgage into BPPR.
• A $4.8 million decrease in other real estate owned (OREO) expenses, driven mainly by higher gains on sales of commercial properties at both BPPR and BPNA. This decrease was partially offset by an increase in fair value adjustments for commercial properties in BPPR.

Non-personnel credit-related costs, which include collections, appraisals, credit related fees, and OREO expenses, amounted to $14.1 million for the fourth quarter of 2012, compared with $18.1 million for the third quarter of 2012. The decrease was principally due to higher gains on sales of commercial OREOs at both BPPR and BPNA, partially offset by an increase in unfavorable fair value adjustments for commercial properties at BPPR.

Full-time equivalent employees (“FTEs”) were 8,072 as of December 31, 2012, compared with 8,074 as of September 30, 2012 and 8,329 as of December 31, 2011. The decline in FTEs is largely due to the retirement window for qualifying employees that was announced in October 2011 and implemented during the first quarter of 2012. When compared with the fourth quarter of 2011, salary expenses are down $2.2 million, or approximately $8.8 million on an annualized basis.

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

Income taxes

Income tax expense amounted to $19.9 million for the quarter ended December 31, 2012, compared with an income tax expense of $15.4 million for the third quarter of 2012.

Credit Quality:

Non-Performing Assets
(In thousands)	31-Dec-12			30-Sep-12			31-Dec-11
Total non-performing loans held-in-portfolio, excluding covered loans	$	1,425,133		$	1,550,500		$	1,737,850
Non-performing loans held-for-sale		96,320			108,886			262,302
Other real estate owned (“OREO”), excluding covered OREO		266,844			252,024			172,497
Total non-performing assets, excluding covered assets		1,788,297			1,911,410			2,172,649
Covered loans and OREO		213,469			208,235			192,771
Total non-performing assets	$	2,001,766		$	2,119,645		$	2,365,420
Net charge-offs for the quarter (excluding covered loans)	$	100,854		$	95,791		$	126,045
Ratios (excluding covered loans):
Non-performing loans held-in-portfolio to loans held-in-portfolio		6.79	%		7.47	%		8.44	%
Allowance for loan losses to loans held-in-portfolio		2.96			3.07			3.35
Allowance for loan losses to non-performing loans, excluding loans held-for-sale		43.62			41.04			39.73

Credit quality continues to improve as the Company addresses its non-performing loan balances and manages asset exposures.

• Non-performing loans (NPL) held-in-portfolio declined by $125.4 million, or 8%, from the third quarter of 2012 and were 39% lower than peak levels in the third quarter of 2010. The reduction in NPLs was principally attributed to a decrease of $90.0 million in Puerto Rico commercial NPLs.
• Inflows of commercial, construction and legacy non-performing loans held-in-portfolio decreased by $72.9 million, or 51%, from the third quarter as underlying credit performance continues to improve due to successful efforts in managing early delinquency and greater economic stability.
• OREO, excluding covered OREO, increased by $14.8 million from the third quarter, as a result of continuing efforts to aggressively resolve non-performing loans.
• Net charge-offs for the fourth quarter were $100.9 million, compared with $95.8 million for the previous quarter. The increase was principally driven by higher commercial and mortgage net charge-offs of $4.5 million and $4.9 million at BPPR, respectively, offset in part by lower losses in BPNA loan portfolios. Refer to Table J for further information on net charge-offs and related ratios.
• The ratio of allowance for loan losses to loans held-in-portfolio, excluding covered loans, stood at 2.96% as of December 31, 2012, compared with 3.07% as of September 30, 2012. The general and specific reserves related to non-covered loans totaled $510.6 million and $111.1 million at quarter-end, compared with $528.9 million and $107.4 million, respectively, as of September 30, 2012. The decrease in the allowance for loan losses is driven by the improvement in credit quality and stability in net charge-offs.

Credit Quality by Segment
(In thousands)	Quarters ended
BPPR		31-Dec-12			30-Sep-12			31-Dec-11
Provision for loan losses		$	78,092		$	69,738		$	88,128
Net charge-offs			78,050			71,041			78,309
Total non-performing loans held-in-portfolio,
excluding covered loans			1,191,982			1,284,026			1,371,242
Allowance/ non-covered loans held-in-portfolio			2.92	%		2.96	%		3.06	%

	Quarters ended
BPNA		31-Dec-12			30-Sep-12			31-Dec-11
Provision for loan losses		$	8,164		$	13,851		$	35,780
Net charge-offs			22,804			24,750			47,736
Total non-performing loans held-in-portfolio,
excluding covered loans			233,151			266,474			366,608
Allowance/ non-covered loans held-in-portfolio			3.07	%		3.35	%		4.11	%

BPPR Segment

• The provision for loan losses for the non-covered loan portfolio increased by $8.4 million from the third quarter 2012, mainly due to higher net charge-offs in the commercial loan portfolio.
• Net charge-offs, excluding covered loans, increased by $7.0 million from the third quarter 2012, principally due to increases in commercial loans net charge-offs of $4.5 million, mainly due to one particular relationship, and $4.9 million increase in mortgage loans net charge-offs.
• Total non-performing loans held in portfolio, excluding covered loans, decreased by $92.0 million from the third quarter 2012. This decrease was mainly driven by a decline in commercial NPLs of $90.0 million. Continued aggressive collection and loss-mitigation efforts have led to lower inflows of non-performing loans and higher volume of loans returning to accrual status after assessing borrower’s willingness and capacity of debt repayment.
• Inflows of commercial non-performing loans held-in-portfolio decreased by $55.3 million, or 58%, from the third quarter reflecting stronger underlying credit performance.
• The allowance for loan losses for non-covered loans held-in-portfolio remained unchanged at $445.3 million from the third quarter of 2012. The allowance for loan losses as a percentage of non-covered loans held in portfolio decreased to 2.92% from 2.96% in third quarter 2012.

BPNA Segment

• The provision for loan losses in the third quarter of 2012 decreased by $5.7 million. The allowance for loan losses as a percentage of loans held in portfolio decreased to 3.07% from 3.35% in the third quarter 2012. Sustained improvements in credit quality trends drove the reduction in both the provision and the allowance.
• Net charge-offs decreased by $1.9 million from the third quarter of 2012, mainly driven by reductions from the commercial loan portfolio. The annualized net charge-offs to average loans held-in-portfolio was 1.60% in the fourth quarter of 2012, down from 1.74% in the previous quarter.
• Total non-performing loans held in portfolio decreased by $33.3 million from the third quarter of 2012, mainly related to overall improvements in credit performance across most loan portfolios.
• Inflows of commercial, construction, and legacy non-performing loans held-in-portfolio decreased by $16.0 million, or 38%, from the third quarter of 2012.

Financial Condition Highlights
(In thousands)	31-Dec-12		30-Sep-12		31-Dec-11
Total assets	$	36,507,535	$	36,503,366	$	37,348,432
Total loans held-in-portfolio (net)		24,008,557		23,896,548		24,135,991
Deposits		27,000,613		26,319,499		27,942,127
Borrowings		4,430,673		5,017,141		4,293,669
Stockholders’ equity		4,110,000		4,068,984		3,918,753

Total assets increased by approximately $4.2 million from September 30, 2012 driven by:

• A $121.9 million increase in cash and money market accounts due mainly to excess balances held with the Federal Reserve Bank.
• An $87.6 million increase in trading securities, mainly due to mortgage-backed securities.
• A $229.3 million increase in non-covered loans held in portfolio mostly due to:
  • mortgage loan growth of $56.1 million during the fourth quarter of 2012, with the BPPR segment originating approximately $446.0 million in residential mortgage loans, the highest levels since 2005; and
  • growth in commercial loans of $229.6 million,
  • partially offset by a decrease in legacy loans of $81.6 million.
• Other real estate owned (covered and non-covered) increased by approximately $28.4 million, due mainly to the continuing efforts to aggressively resolve non-performing loans.

These increases were partially offset by:

• Decrease in other assets of $155.4 million driven by receivables from securities sold, not yet delivered. During the third quarter of 2012, a sale of approximately $140.7 million in trading securities was executed but not settled at the end of the quarter.
• Federal Home Loan Bank stock decreased by $28.1 million driven by lower balances of advances with the FHLB of NY.
• The Loss-Sharing-Agreement (LSA) indemnification asset was reduced by $160.0 million during the quarter, driven by collections from the FDIC, while reduced estimated losses on the covered portfolio drove higher amortization of the indemnification asset.
• The covered loan portfolio balance decreased by approximately $147.9 million.

Total liabilities decreased by $36.8 million from September 2012, driven by:

• Decreases in notes payable and other borrowings of $586.5 million, resulting from decreases in FHLB of NY advances. These advances were replaced with brokered CDs and repurchase agreements.
• Other liabilities decreased by $131.5 million, mainly due to a decrease of $66 million in liabilities for unsettled purchases of trading securities and a decrease of approximately $20.5 million in the pension plan liability, reflecting a contribution of $58.0 million, net of an actuarial valuation adjustment.

The decrease was partially offset by:

• A $681.1 million increase in deposits, particularly brokered CDs and retail deposits. Table G presents a breakdown of deposits by major categories.

Stockholders’ equity increased by $41.0 million from September 30, 2012, mainly as a result of the net income for the quarter, partially offset by a decrease in unrealized gains on securities available-for-sale and an increase in the underfunding of the pension plan liability. Refer to Table A for capital ratios and Table N for Non-GAAP reconciliations.

Refer to Table C for the Statements of Condition.

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; (v) 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; (vi) the performance of the stock and bond markets; (vii) competition in the financial services industry; (viii) possible legislative, tax or regulatory changes; (ix) the impact of the Dodd-Frank Act on our businesses, business practice and cost of operations; and (x) additional Federal Deposit Insurance Corporation assessments. 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, 2011, 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 36th by assets among U.S. banks. In the United States, Popular has established a community-banking franchise, doing business as Popular Community Bank, providing a broad range of financial services and products with branches in New York, New Jersey, Illinois, Florida and California.

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 Thursday, January 24, 2013 at 10:30 a.m. Eastern 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 866-700-6293 or 617-213-8835. The conference code is 31838169.

A replay of the webcast will be archived in Popular’s website during the respective period. A telephone replay will be available from 12:30 p.m. on Thursday, January 24, 2013 to 11:59 p.m. on Thursday, January 31, 2013, at 888-286-8010 or 617-801-6888. The replay passcode is 79338243.

Popular will hold an Investor Day on Friday, March 1 at Popular Center in San Juan, Puerto Rico. You can find the link to the webcast in the investor-relations section of our website. For further information, please contact us via email at investor-relations@bppr.com.

Popular, Inc.

Financial Supplement to Fourth Quarter 2012 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 - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE

Table F - 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

POPULAR, INC.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
	Quarters ended									Years ended
	31-Dec-12			30-Sep-12			31-Dec-11			31-Dec-12			31-Dec-11
Net income per common share:
Basic and diluted [1]	$	0.81		$	0.45		$	0.02		$	2.35		$	1.44
Average common shares outstanding [1]		102,628,274			102,451,410			102,274,180			102,429,755			102,179,393
Average common shares outstanding - assuming dilution [1]		102,801,581			102,484,960			102,274,180			102,653,610			102,289,496
Common shares outstanding at end of period [1]		103,169,806			103,097,143			102,590,457			103,169,806			102,590,457
Market value per common share [1]	$	20.79		$	17.45		$	13.90		$	20.79		$	13.90
Market Capitalization --- (In millions)	$	2,145		$	1,799		$	1,426		$	2,145		$	1,426
Return on average assets		0.92	%		0.52	%		0.03	%		0.68	%		0.40	%
Return on average common equity		8.50	%		4.81	%		0.21	%		6.37	%		4.01	%
Net interest margin [2]		4.41	%		4.37	%		4.30	%		4.35	%		4.34	%
Common equity per share [1]	$	39.35		$	38.98		$	37.71		$	39.35		$	37.71
Tangible common book value per common share (non-GAAP) [1]	$	32.55		$	32.15		$	30.77		$	32.55		$	30.77
Tangible common equity to tangible assets (non-GAAP)		9.38	%		9.26	%		8.62	%		9.38	%		8.62	%
Tier 1 risk-based capital [3]		17.35	%		16.81	%		15.97	%		17.35	%		15.97	%
Total risk-based capital [3]		18.63	%		18.09	%		17.25	%		18.63	%		17.25	%
Tier 1 leverage [3]		11.52	%		11.40	%		10.90	%		11.52	%		10.90	%
Tier 1 common equity to risk-weighted assets (non-GAAP) [3]		13.18	%		12.72	%		12.10	%		13.18	%		12.10	%
[1] All share and per share data has been adjusted to retroactively reflect the 1-for-10 reverse stock split effected on May 29, 2012.
[2] Not on a taxable equivalent basis.
[3] Capital ratios for the current quarter are estimated.

POPULAR, INC.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
								Variance			Quarter			Variance
		Quarters ended						Q4 2012			ended			Q4 2012			Years ended
(In thousands, except per share information)		31-Dec-12			30-Sep-12			vs.Q3 2012			31-Dec-11			vs.Q4 2011			31-Dec-12			31-Dec-11
Interest income:
	Loans	$	393,732		$	387,381		$	6,351		$	399,523		$	(5,791	)	$	1,558,397		$	1,694,357
	Money market investments		929			862			67			837			92			3,703			3,596
	Investment securities		37,953			39,945			(1,992	)		46,758			(8,805	)		166,781			203,941
	Trading account securities		5,155			5,815			(660	)		6,275			(1,120	)		22,824			35,607
	Total interest income		437,769			434,003			3,766			453,393			(15,624	)		1,751,705			1,937,501
Interest expense:
	Deposits		40,896			43,000			(2,104	)		56,068			(15,172	)		184,089			269,487
	Short-term borrowings		10,302			9,876			426			13,780			(3,478	)		46,805			55,258
	Long-term debt		36,160			37,701			(1,541	)		38,765			(2,605	)		148,192			180,764
	Total interest expense		87,358			90,577			(3,219	)		108,613			(21,255	)		379,086			505,509
Net interest income			350,411			343,426			6,985			344,780			5,631			1,372,619			1,431,992
Provision for loan losses - non-covered loans			86,256			83,589			2,667			123,908			(37,652	)		334,102			430,085
Provision for loan losses - covered loans			(3,445	)		22,619			(26,064	)		55,900			(59,345	)		74,839			145,635
Net interest income after provision for loan losses			267,600			237,218			30,382			164,972			102,628			963,678			856,272
Service charges on deposit accounts			44,449			45,858			(1,409	)		46,162			(1,713	)		183,026			184,940
Other service fees			63,695			64,784			(1,089	)		60,097			3,598			256,545			239,720
Net (loss) gain on sale and valuation adjustments of investment securities			(1,422	)		64			(1,486	)		2,800			(4,222	)		(1,707	)		10,844
Trading account (loss) profit			(5,990	)		(2,266	)		(3,724	)		2,610			(8,600	)		(17,682	)		5,897
Net gain on sale of loans, including valuation adjustments on loans held-for-sale			30,196			18,495			11,701			16,135			14,061			48,765			30,891
Adjustments (expense) to indemnity reserves on loans sold			(3,208	)		(8,717	)		5,509			(3,481	)		273			(21,198	)		(33,068	)
FDIC loss share (expense) income			(36,824	)		(6,707	)		(30,117	)		17,447			(54,271	)		(56,211	)		66,791
Fair value change in equity appreciation instrument			-			-			-			-			-			-			8,323
Other operating income			42,105			4,198			37,907			7,589			34,516			74,804			45,939
	Total non-interest income		133,001			115,709			17,292			149,359			(16,358	)		466,342			560,277
Operating expenses:
Personnel costs
	Salaries		74,846			74,339			507			77,074			(2,228	)		301,965			305,018
	Commissions, incentives and other bonuses		14,817			12,800			2,017			10,873			3,944			54,702			44,421
	Pension, postretirement and medical insurance		16,453			15,984			469			26,039			(9,586	)		66,976			62,219
	Other personnel costs, including payroll taxes		10,209			8,427			1,782			10,561			(352	)		42,059			41,712
	Total personnel costs		116,325			111,550			4,775			124,547			(8,222	)		465,702			453,370
Net occupancy expenses			26,918			24,409			2,509			25,891			1,027			100,452			102,319
Equipment expenses			11,602			11,447			155			10,526			1,076			45,290			43,840
Other taxes			11,942			12,666			(724	)		12,899			(957	)		50,120			51,885
Professional fees			58,246			53,412			4,834			50,019			8,227			211,890			194,942
Communications			6,558			6,500			58			5,917			641			26,834			27,115
Business promotion			16,822			14,924			1,898			19,225			(2,403	)		61,576			55,067
FDIC deposit insurance			13,691			24,173			(10,482	)		25,088			(11,397	)		85,697			93,728
Loss on early extinguishment of debt			12			43			(31	)		56			(44	)		25,196			8,693
Other real estate owned (OREO) expenses			1,079			5,896			(4,817	)		9,893			(8,814	)		23,520			21,778
Credit and debit card processing, volume, interchange and other			4,646			5,442			(796	)		3,974			672			19,729			17,539
Other operating expenses			26,439			17,412			9,027			20,377			6,062			85,070			70,367
Amortization of intangibles			2,467			2,481			(14	)		2,681			(214	)		10,072			9,654
	Total operating expenses		296,747			290,355			6,392			311,093			(14,346	)		1,211,148			1,150,297
Income before income tax			103,854			62,572			41,282			3,238			100,616			218,872			266,252
Income tax expense (benefit)			19,914			15,384			4,530			263			19,651			(26,403	)		114,927
Net income		$	83,940		$	47,188		$	36,752		$	2,975		$	80,965		$	245,275		$	151,325
Net income applicable to common stock		$	83,009		$	46,257		$	36,752		$	2,044		$	80,965		$	241,552		$	147,602
Net income per common share - basic [1]		$	0.81		$	0.45		$	0.36		$	0.02		$	0.79		$	2.35		$	1.44
Net income per common share - diluted [1]		$	0.81		$	0.45		$	0.36		$	0.02		$	0.79		$	2.35		$	1.44
[1] Per share data has been adjusted to retroactively reflect the 1-for-10 reverse stock split effected on May 29, 2012.

Popular, Inc.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
												Variance
												Q4 2012 vs.
(In thousands)			31-Dec-12			30-Sep-12			31-Dec-11			Q3 2012
Assets:
Cash and due from banks			$	530,363		$	477,342		$	535,282		$	53,021
Money market investments				994,580			925,663			1,376,174			68,917
Trading account securities, at fair value				314,525			226,918			436,331			87,607
Investment securities available-for-sale, at fair value				5,084,201			5,120,301			5,009,823			(36,100	)
Investment securities held-to-maturity, at amortized cost				142,817			122,072			125,383			20,745
Other investment securities, at lower of cost or realizable value				185,443			213,389			179,880			(27,946	)
Loans held-for-sale, at lower of cost or fair value				354,468			337,049			363,093			17,419
Loans held-in-portfolio:
		Loans not covered under loss sharing agreements with the FDIC		21,080,005			20,851,108			20,703,192			228,897
		Loans covered under loss sharing agreements with the FDIC		3,755,972			3,903,867			4,348,703			(147,895	)
		Less: Unearned income		96,813			97,255			100,596			(442	)
		Allowance for loan losses		730,607			761,172			815,308			(30,565	)
		Total loans held-in-portfolio, net		24,008,557			23,896,548			24,135,991			112,009
FDIC loss share asset				1,399,098			1,559,057			1,915,128			(159,959	)
Premises and equipment, net				535,793			525,733			538,486			10,060
Other real estate not covered under loss sharing agreements with the FDIC				266,844			252,024			172,497			14,820
Other real estate covered under loss sharing agreements with the FDIC				139,058			125,514			109,135			13,544
Accrued income receivable				125,728			133,943			125,209			(8,215	)
Mortgage servicing assets, at fair value				154,430			158,367			151,323			(3,937	)
Other assets				1,569,578			1,724,927			1,462,393			(155,349	)
Goodwill				647,757			647,757			648,350			-
Other intangible assets				54,295			56,762			63,954			(2,467	)
Total assets			$	36,507,535		$	36,503,366		$	37,348,432		$	4,169
Liabilities and Stockholders’ Equity:
Liabilities:
	Deposits:
		Non-interest bearing	$	5,794,629		$	5,404,470		$	5,655,474		$	390,159
		Interest bearing		21,205,984			20,915,029			22,286,653			290,955
		Total deposits		27,000,613			26,319,499			27,942,127			681,114
Assets sold under agreements to repurchase				2,016,752			1,944,564			2,141,097			72,188
Other short-term borrowings				636,200			1,206,200			296,200			(570,000	)
Notes payable				1,777,721			1,866,377			1,856,372			(88,656	)
Other liabilities				966,249			1,097,742			1,193,883			(131,493	)
Total liabilities				32,397,535			32,434,382			33,429,679			(36,847	)
Stockholders’ equity:
Preferred stock				50,160			50,160			50,160			-
Common stock				1,032			1,031			1,026			1
Surplus				4,150,294			4,131,681			4,123,898			18,613
Retained earnings (accumulated deficit)				11,826			(54,183	)		(212,726	)		66,009
Treasury stock				(444	)		(270	)		(1,057	)		(174	)
Accumulated other comprehensive loss				(102,868	)		(59,435	)		(42,548	)		(43,433	)
		Total stockholders’ equity		4,110,000			4,068,984			3,918,753			41,016
Total liabilities and stockholders’ equity			$	36,507,535		$	36,503,366		$	37,348,432		$	4,169

Popular, Inc.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER
(Unaudited)
			Quarter ended							Quarter ended							Quarter ended							Variance									Variance
			31-Dec-12							30-Sep-12							31-Dec-11							Q4 2012 vs. Q3 2012									Q4 2012 vs. Q4 2011
($ 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		$	6,693		$	44.1	2.63	%	$	6,625		$	46.6	2.81	%	$	6,635		$	53.9	3.24	%	$	68			($2.5	)	(0.18	)	%	$	58			($9.8	)	(0.61	)	%
	Loans not covered under loss sharing agreements with the FDIC:
		Commercial		10,200			123.5	4.82			10,024			123.2	4.89			10,596			131.4	4.92			176			0.3		(0.07	)			(396	)		(7.9	)	(0.10	)
		Construction		386			3.3	3.44			435			3.3	3.02			564			2.3	1.59			(49	)		-		0.42				(178	)		1.0		1.85
		Mortgage		6,169			81.0	5.25			5,915			80.7	5.46			5,402			70.5	5.22			254			0.3		(0.21	)			767			10.5		0.03
		Consumer		3,835			97.5	10.11			3,855			97.9	10.10			3,680			95.0	10.25			(20	)		(0.4	)	0.01				155			2.5		(0.14	)
		Lease financing		540			11.4	8.48			540			11.7	8.67			562			11.9	8.44			-			(0.3	)	(0.19	)			(22	)		(0.5	)	0.04
		Total loans not covered under loss sharing agreements with the FDIC		21,130			316.7	5.97			20,769			316.8	6.08			20,804			311.1	5.95			361			(0.1	)	(0.11	)			326			5.6		0.02
	Loans covered under loss sharing agreements with the FDIC			3,832			77.0	8.01			3,952			70.6	7.12			4,401			88.4	7.99			(120	)		6.4		0.89				(569	)		(11.4	)	0.02
	Total loans			24,962			393.7	6.28			24,721			387.4	6.24			25,205			399.5	6.30			241			6.3		0.04				(243	)		(5.8	)	(0.02	)
	Total interest earning assets			31,655		$	437.8	5.51	%		31,346		$	434.0	5.52	%		31,840		$	453.4	5.66	%		309		$	3.8		(0.01	)	%		(185	)		($15.6	)	(0.15	)	%
		Allowance for loan losses		(754	)						(757	)						(751	)						3									(3	)
		Other non-interest earning assets		5,400							5,396							5,655							4									(255	)
	Total average assets		$	36,301						$	35,985						$	36,744						$	316									($443	)
Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$	5,707		$	6.1	0.43	%	$	5,709		$	6.2	0.43	%	$	5,199		$	6.4	0.49	%		($2	)		($0.1	)	-		%	$	508			($0.3	)	(0.06	)	%
		Savings		6,654			4.8	0.29			6,561			4.5	0.27			6,475			6.4	0.39			93			0.3		0.02				179			(1.6	)	(0.10	)
		Time deposits		8,650			30.0	1.38			9,003			32.3	1.43			10,685			43.3	1.61			(353	)		(2.3	)	(0.05	)			(2,035	)		(13.3	)	(0.23	)
		Total interest bearing deposits		21,011			40.9	0.77			21,273			43.0	0.80			22,359			56.1	0.99			(262	)		(2.1	)	(0.03	)			(1,348	)		(15.2	)	(0.22	)
	Borrowings			4,704			46.5	3.94			4,426			47.6	4.29			4,507			52.5	4.65			278			(1.1	)	(0.35	)			197			(6.0	)	(0.71	)
		Total interest bearing liabilities		25,715			87.4	1.35			25,699			90.6	1.40			26,866			108.6	1.61			16			(3.2	)	(0.05	)			(1,151	)		(21.2	)	(0.26	)
		Net interest spread						4.16	%						4.12	%						4.05	%							0.04		%							0.11		%
	Non-interest bearing deposits			5,583							5,319							5,165							264									418
	Other liabilities			1,067							1,090							895							(23	)								172
	Stockholders' equity			3,936							3,877							3,818							59									118
		Total average liabilities and stockholders' equity	$	36,301						$	35,985						$	36,744						$	316									($443	)
Net interest income / margin non-taxable equivalent basis						$	350.4	4.41	%				$	343.4	4.37	%				$	344.8	4.30	%				$	7.0		0.04		%				$	5.6		0.11		%

Popular, Inc.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE
(Unaudited)
			Year ended							Year ended
			31-Dec-12							31-Dec-11							Variance
			Average			Income /		Yield/		Average			Income/		Yield/		Average			Income/		Yield/
($ amounts in millions; yields not on a taxable equivalent basis)			balance			Expense		Rate		balance			Expense		Rate		balance			Expense		Rate
Assets:
Interest earning assets:
	Money market, trading and investment securities		$	6,724		$	193.3	2.87	%	$	7,314		$	243.1	3.32	%		($590	)	($49.8	)	(0.45	)	%
	Loans not covered under loss sharing agreements with the FDIC:
		Commercial		10,226			499.4	4.88			10,889			541.9	4.98			(663	)	(42.5	)	(0.10	)
		Construction		459			16.6	3.61			731			10.8	1.48			(272	)	5.8		2.13
		Mortgage		5,817			314.9	5.41			5,153			302.0	5.86			664		12.9		(0.45	)
		Consumer		3,748			379.1	10.11			3,654			376.2	10.30			94		2.9		(0.19	)
		Lease financing		545			47.0	8.62			577			50.8	8.81			(32	)	(3.8	)	(0.19	)
		Total loans not covered under loss sharing agreements with the FDIC		20,795			1,257.0	6.04			21,004			1,281.7	6.10			(209	)	(24.7	)	(0.06	)
	Loans covered under loss sharing agreements with the FDIC			4,051			301.4	7.44			4,613			412.7	8.95			(562	)	(111.3	)	(1.51	)
	Total loans			24,846			1,558.4	6.27			25,617			1,694.4	6.61			(771	)	(136.0	)	(0.34	)
	Total interest earning assets			31,570		$	1,751.7	5.55	%		32,931		$	1,937.5	5.88	%		(1,361	)	($185.8	)	(0.33	)	%
		Allowance for loan losses		(772	)						(746	)						(26	)
		Other non-interest earning assets		5,466							5,881							(415	)
	Total average assets		$	36,264						$	38,066							($1,802	)
Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$	5,555		$	24.6	0.44	%	$	5,204		$	31.0	0.60	%	$	351		($6.4	)	(0.16	)	%
		Savings		6,571			21.7	0.33			6,321			37.5	0.59			250		(15.8	)	(0.26	)
		Time deposits		9,421			137.8	1.46			10,920			201.0	1.84			(1,499	)	(63.2	)	(0.38	)
		Total interest bearing deposits		21,547			184.1	0.85			22,445			269.5	1.20			(898	)	(85.4	)	(0.35	)
	Borrowings			4,416			195.0	4.42			5,847			236.0	4.04			(1,431	)	(41.0	)	0.38
		Total interest bearing liabilities		25,963			379.1	1.46			28,292			505.5	1.79			(2,329	)	(126.4	)	(0.33	)
		Net interest spread						4.09	%						4.09	%						-		%
	Non-interest bearing deposits			5,357							5,058							299
	Other liabilities			1,100							983							117
	Stockholders' equity			3,844							3,733							111
		Total average liabilities and stockholders' equity	$	36,264						$	38,066							($1,802	)
Net interest income / margin non-taxable equivalent basis						$	1,372.6	4.35	%				$	1,432.0	4.34	%				($59.4	)	0.01		%

Popular, Inc.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table F - Other Service Fees
(Unaudited)
									Variance			Variance
		Quarters ended							Q4 2012 vs.			Q4 2012 vs.
(In thousands)		31-Dec-12		30-Sep-12		31-Dec-11			Q3 2012			Q4 2011
Other service fees:
	Debit card fees	$	9,439	$	8,772	$	9,664		$	667		$	(225	)
	Insurance fees		17,050		12,322		16,471			4,728			579
	Credit card fees		16,148		14,576		12,943			1,572			3,205
	Sale and administration of investment products		9,721		9,511		9,686			210			35
	Mortgage servicing fees, net of fair value adjustments		1,647		9,857		1,449			(8,210	)		198
	Trust fees		4,226		3,977		3,722			249			504
	Processing fees		1,511		1,406		1,718			105			(207	)
	Other fees		3,953		4,363		4,444			(410	)		(491	)
Total other service fees		$	63,695	$	64,784	$	60,097		$	(1,089	)	$	3,598
						Variance
		Years ended				2012 vs.
(In thousands)		31-Dec-12		31-Dec-11			2011
Other service fees:
	Debit card fees	$	36,787	$	49,459	$	(12,672	)
	Insurance fees		53,825		54,390		(565	)
	Credit card fees		57,551		49,049		8,502
	Sale and administration of investment products		37,766		34,388		3,378
	Mortgage servicing fees, net of fair value adjustments		30,770		12,098		18,672
	Trust fees		16,353		15,333		1,020
	Processing fees		6,330		6,839		(509	)
	Other fees		17,163		18,164		(1,001	)
Total other service fees		$	256,545	$	239,720	$	16,825

Popular, Inc.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table G - Loans and Deposits
(Unaudited)
Loans - Ending Balances
							Variance
(In thousands)	31-Dec-12		30-Sep-12		31-Dec-11		Q4 2012 vs. Q3 2012			Q4 2012 vs. Q4 2011
Loans not covered under FDIC loss sharing agreements:
Commercial	$	9,858,202	$	9,628,631	$	9,973,327	$	229,571		$	(115,125	)
Construction		252,857		258,453		239,939		(5,596	)		12,918
Legacy [1]		384,217		465,848		648,409		(81,631	)		(264,192	)
Lease financing		540,523		538,014		548,706		2,509			(8,183	)
Mortgage		6,078,507		6,022,422		5,518,460		56,085			560,047
Consumer		3,868,886		3,840,485		3,673,755		28,401			195,131
Total non-covered loans held-in-portfolio	$	20,983,192	$	20,753,853	$	20,602,596	$	229,339		$	380,596
Loans covered under FDIC loss sharing agreements		3,755,972		3,903,867		4,348,703		(147,895	)		(592,731	)
Total loans held-in-portfolio	$	24,739,164	$	24,657,720	$	24,951,299	$	81,444		$	(212,135	)
Loans held-for-sale:
Commercial	$	16,047	$	17,696	$	25,730	$	(1,649	)	$	(9,683	)
Construction		78,140		88,030		236,045		(9,890	)		(157,905	)
Legacy [1]		2,080		3,107		468		(1,027	)		1,612
Mortgage		258,201		228,216		100,850		29,985			157,351
Total loans held-for-sale		354,468		337,049		363,093		17,419			(8,625	)
Total loans	$	25,093,632	$	24,994,769	$	25,314,392	$	98,863		$	(220,760	)
[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 reportable segment.
Deposits - Ending Balances
							Variance
(In thousands)	31-Dec-12		30-Sep-12		31-Dec-11		Q4 2012 vs. Q3 2012			Q4 2012 vs. Q4 2011
Demand deposits [1]	$	6,442,739	$	6,091,400	$	6,256,530	$	351,339		$	186,209
Savings, NOW and money market deposits (non-brokered)		11,190,335		11,046,595		10,762,869		143,740			427,466
Savings, NOW and money market deposits (brokered)		456,830		455,309		212,688		1,521			244,142
Time deposits (non-brokered)		6,541,660		6,614,153		7,552,434		(72,493	)		(1,010,774	)
Time deposits (brokered CDs)		2,369,049		2,112,042		3,157,606		257,007			(788,557	)
Total deposits	$	27,000,613	$	26,319,499	$	27,942,127	$	681,114		$	(941,514	)
[1] Includes interest and non-interest demand bearing deposits.

Popular, Inc.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table H - Non-Performing Assets
(Unaudited)
													Variance
(Dollars in thousands)	31-Dec-12		As a percentage of loans HIP by category		30-Sep-12		As a percentage of loans HIP by category		31-Dec-11		As a percentage of loans HIP by category		Q4 2012 vs. Q3 2012			Q4 2012 vs. Q4 2011
Non-accrual loans:
Commercial	$	665,289	6.7	%	$	772,217	8.0	%	$	830,092	8.3	%	$	(106,928	)	$	(164,803	)
Construction		43,350	17.1			49,933	19.3			96,286	40.1			(6,583	)		(52,936	)
Legacy [1]		40,741	10.6			48,735	10.5			75,660	11.7			(7,994	)		(34,919	)
Lease financing		4,865	0.9			4,837	0.9			5,642	1.0			28			(777	)
Mortgage		630,130	10.4			632,052	10.5			686,502	12.4			(1,922	)		(56,372	)
Consumer		40,758	1.1			42,726	1.1			43,668	1.2			(1,968	)		(2,910	)
Total non-performing loans held-in-
portfolio, excluding covered loans		1,425,133	6.8	%		1,550,500	7.5	%		1,737,850	8.4	%		(125,367	)		(312,717	)
Non-performing loans held-for-sale [2]		96,320				108,886				262,302				(12,566	)		(165,982	)
Other real estate owned (“OREO”),
excluding covered OREO		266,844				252,024				172,497				14,820			94,347
Total non-performing assets,
excluding covered assets		1,788,297				1,911,410				2,172,649				(123,113	)		(384,352	)
Covered loans and OREO		213,469				208,235				192,771				5,234			20,698
Total non-performing assets	$	2,001,766			$	2,119,645			$	2,365,420			$	(117,879	)	$	(363,654	)
Accruing loans past due 90 days or more [3]	$	388,712			$	379,051			$	316,614			$	9,661		$	72,098
Ratios excluding covered loans:
Non-performing loans held-in-portfolio
to loans held-in-portfolio		6.79	%			7.47	%			8.44	%
Allowance for loan losses to loans
held-in-portfolio		2.96				3.07				3.35
Allowance for loan losses to
non-performing loans, excluding
held-for-sale		43.62				41.04				39.73
Ratios including covered loans:
Non-performing loans held-in-portfolio
to loans held-in-portfolio		6.06	%			6.63	%			7.30	%
Allowance for loan losses to loans
held-in-portfolio		2.95				3.09				3.27
Allowance for loan losses to non-performing loans, excluding held-for-sale		48.72				46.61				44.76
[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 reportable segment.
[2] Non-performing loans held-for-sale as of December 31, 2012 consisted of $78 million in construction loans, $16 million in commercial loans, $2 million in legacy loans and $53 thousand in mortgage loans (September 30, 2012 - $88 million in construction loans, $18 million in commercial loans, $3 million in legacy loans and $53 thousand in mortgage loans; December 31, 2011 - $236 million in construction loans, $26 million in commercial loans, $468 thousand in legacy loans and $59 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 nonperforming since the principal repayment is insured. These balances include $86 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2012.

Popular, Inc.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table I - Activity in Non-Performing Loans
(Unaudited)
Commercial loans held-in-portfolio:
		Quarter ended									Quarter ended
		31-Dec-12									30-Sep-12
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	612,781		$	159,436		$	772,217		$	591,792		$	176,148		$	767,940
Plus:
	New non-performing loans		40,585			16,601			57,186			95,836			32,395			128,231
	Advances on existing non-performing loans		-			163			163			-			525			525
	Other		-			-			-			1,139			-			1,139
Less:
	Non-performing loans transferred to OREO		(14,694	)		(6,580	)		(21,274	)		(4,217	)		(10,558	)		(14,775	)
	Non-performing loans charged-off		(45,682	)		(11,745	)		(57,427	)		(43,711	)		(9,261	)		(52,972	)
	Loans returned to accrual status / loan collections		(66,957	)		(13,645	)		(80,602	)		(28,058	)		(25,561	)		(53,619	)
	Loans transferred to held-for-sale		-			(1,674	)		(1,674	)		-			(4,252	)		(4,252	)
	Other		(3,300	)		-			(3,300	)		-			-			-
Ending balance NPLs		$	522,733		$	142,556		$	665,289		$	612,781		$	159,436		$	772,217
Construction loans held-in-portfolio:
		Quarter ended									Quarter ended
		31-Dec-12									30-Sep-12
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	37,793		$	12,140		$	49,933		$	55,534		$	12,004		$	67,538
Plus:
	New non-performing loans		2,255			-			2,255			3,917			-			3,917
	Advances on existing non-performing loans		-			-			-			-			136			136
	Other		3,300			-			3,300			-			-			-
Less:
	Non-performing loans transferred to OREO		-			(3,605	)		(3,605	)		(280	)		-			(280	)
	Non-performing loans charged-off		(839	)		(264	)		(1,103	)		(1,366	)		-			(1,366	)
	Loans returned to accrual status / loan collections		(5,119	)		(2,311	)		(7,430	)		(18,873	)		-			(18,873	)
	Other		-			-			-			(1,139	)		-			(1,139	)
Ending balance NPLs		$	37,390		$	5,960		$	43,350		$	37,793		$	12,140		$	49,933

Mortgage loans held-in-portfolio:
		Quarter ended									Quarter ended
		31-Dec-12									30-Sep-12
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	598,523		$	33,529		$	632,052		$	600,082		$	32,817		$	632,899
Plus:
	New non-performing loans		166,768			8,104			174,872			157,114			9,457			166,571
Less:
	Non-performing loans transferred to OREO		(21,693	)		(989	)		(22,682	)		(19,522	)		(1,858	)		(21,380	)
	Non-performing loans charged-off		(15,523	)		(2,936	)		(18,459	)		(12,811	)		(2,541	)		(15,352	)
	Loans returned to accrual status / loan collections		(131,969	)		(3,684	)		(135,653	)		(126,340	)		(4,346	)		(130,686	)
Ending balance NPLs		$	596,106		$	34,024		$	630,130		$	598,523		$	33,529		$	632,052
Legacy loans held-in-portfolio:
		Quarter ended									Quarter ended
		31-Dec-12									30-Sep-12
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	-		$	48,735		$	48,735		$	-		$	54,730		$	54,730
Plus:
	New non-performing loans		-			9,337			9,337			-			9,011			9,011
Less:
	Non-performing loans transferred to OREO		-			(50	)		(50	)		-			-			-
	Non-performing loans charged-off		-			(7,313	)		(7,313	)		-			(7,900	)		(7,900	)
	Loans returned to accrual status / loan collections		-			(7,099	)		(7,099	)		-			(4,405	)		(4,405	)
	Loans transferred to held-for-sale		-			(2,869	)		(2,869	)		-			(2,701	)		(2,701	)
Ending balance NPLs		$	-		$	40,741		$	40,741		$	-		$	48,735		$	48,735

Popular, Inc.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)
	Quarter ended										Quarter ended										Quarter ended
(Dollars in thousands)	31-Dec-12										30-Sep-12										31-Dec-11
	Non-covered loans				Covered loans			Total			Non-covered loans				Covered loans		Total				Non-covered loans			Covered loans		Total
Balance at beginning of period	$	636,299			$	124,873		$	761,172		$	648,535			$	117,495	$	766,030			$	692,500		$	80,421	$	772,921
Provision for loan losses		86,256				(3,445	)		82,811			83,589				22,619		106,208				123,908			55,900		179,808
		722,555				121,428			843,983			732,124				140,114		872,238				816,408			136,321		952,729
Net loans charged-off (recovered):
BPPR
Commercial		41,540				492			42,032			37,019				7,013		44,032				48,428			10,526		58,954
Construction		(2,371	)			7,561			5,190			(527	)			7,483		6,956				3,820			8		3,828
Lease financing		516				-			516			265				-		265				1,233			-		1,233
Mortgage		17,310				885			18,195			12,431				736		13,167				5,236			746		5,982
Consumer		21,055				3,584			24,639			21,853				9		21,862				19,592			96		19,688
Total BPPR		78,050				12,522			90,572			71,041				15,241		86,282				78,309			11,376		89,685
BPNA
Commercial		7,044				-			7,044			9,611				-		9,611				23,104			-		23,104
Construction		239				-			239			-				-		-				1,102			-		1,102
Legacy [1]		3,369				-			3,369			3,952				-		3,952				5,821			-		5,821
Mortgage		3,023				-			3,023			3,541				-		3,541				3,501			-		3,501
Consumer		9,129				-			9,129			7,646				-		7,646				14,208			-		14,208
Total BPNA		22,804				-			22,804			24,750				-		24,750				47,736			-		47,736
Total loans charged-off (recovered) - Popular, Inc.		100,854				12,522			113,376			95,791				15,241		111,032				126,045			11,376		137,421
Net (write-downs) recoveries related to loans transferred to loans held-for-sale		-				-			-			(34	)			-		(34	)			-			-		-
Balance at end of period	$	621,701			$	108,906		$	730,607		$	636,299			$	124,873	$	761,172			$	690,363		$	124,945	$	815,308
POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio		1.94		%					1.84	%		1.87		%				1.82		%		2.46	%				2.21	%
Provision for loan losses to net charge-offs		0.86		x					0.73	x		0.87		x				0.96		x		0.98	x				1.31	x
BPPR
Annualized net charge-offs to average loans held-in-portfolio		2.07		%					1.91	%		1.92		%				1.84		%		2.14	%				1.88	%
Provision for loan losses to net charge-offs		1.00		x					0.82	x		0.98		x				1.07		x		1.13	x				1.61	x
BPNA
Annualized net charge-offs to average loans held-in-portfolio									1.60	%								1.74		%							3.27	%
Provision for loan losses to net charge-offs									0.36	x								0.56		x							0.75	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 reportable segment.

	Year ended					Year ended
(Dollars in thousands)	31-Dec-12					31-Dec-11
	Non-covered loans		Covered loans	Total		Non-covered loans		Covered loans	Total
Balance at beginning of period	$ 690,363		$ 124,945	$ 815,308		$ 793,225		$ -	$ 793,225
Provision for loan losses	334,102		74,839	408,941		430,085		145,635	575,720
	1,024,465		199,784	1,224,249		1,223,310		145,635	1,368,945
BPPR
Commercial	144,640		46,259	190,899		195,388		13,774	209,162
Construction	(2,283)		30,495	28,212		5,816		2,853	8,669
Lease financing	943		-	943		3,444		-	3,444
Mortgage	56,777		5,909	62,686		27,624		811	28,435
Consumer	90,095		8,215	98,310		98,647		3,252	101,899
Total BPPR	290,172		90,878	381,050		330,919		20,690	351,609
BPNA
Commercial	44,653		-	44,653		76,557		-	76,557
Construction	400		-	400		2,943		-	2,943
Legacy [1]	16,338		-	16,338		52,324		-	52,324
Mortgage	15,163		-	15,163		14,187		-	14,187
Consumer	36,004		-	36,004		57,118		-	57,118
Total BPNA	112,558		-	112,558		203,129		-	203,129
Total loans charged-off (recovered) - Popular, Inc.	402,730		90,878	493,608		534,048		20,690	554,738
Net (write-downs) recoveries related to loans transferred to loans held-for-sale	(34)		-	(34)		1,101		-	1,101
Balance at end of period	$ 621,701		$ 108,906	$ 730,607		$ 690,363		$ 124,945	$ 815,308
POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio	1.97	%		2.01	%	2.61	%		2.21	%
Provision for loan losses to net charge-offs	0.83	x		0.83	x	0.81	x		1.04	x
BPPR
Annualized net charge-offs to average loans held-in-portfolio	1.96	%		2.02	%	2.31	%		1.86	%
Provision for loan losses to net charge-offs	0.97	x		0.94	x	1.03	x		1.39	x
BPNA
Annualized net charge-offs to average loans held-in-portfolio				1.98	%				3.28	%
Provision for loan losses to net charge-offs				0.46	x				0.44	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 reportable segment.

Popular, Inc.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED
(Unaudited)
31-Dec-12
(Dollars in thousands)		Commercial		Construction		Legacy [3]		Mortgage		Lease financing		Consumer		Total	[2]
Specific ALLL		$ 17,348		$ 120		$ -		$ 74,667		$ 1,066		$ 17,886		$ 111,087
Impaired loans	[1]	$ 527,664		$ 41,809		$ 18,744		$ 611,230		$ 4,881		$ 133,377		$ 1,337,705
Specific ALLL to impaired loans	[1]	3.29	%	0.29	%	-	%	12.22	%	21.84	%	13.41	%	8.30	%
General ALLL		$ 280,334		$ 7,309		$ 33,102		$ 74,708		$ 1,828		$ 113,333		$ 510,614
Loans held-in-portfolio, excluding impaired loans	[1]	$ 9,330,538		$ 211,048		$ 365,473		$ 5,467,277		$ 535,642		$ 3,735,509		$ 19,645,487
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]	3.00	%	3.46	%	9.06	%	1.37	%	0.34	%	3.03	%	2.60	%
Total ALLL		$ 297,682		$ 7,429		$ 33,102		$ 149,375		$ 2,894		$ 131,219		$ 621,701
Total non-covered loans held-in-portfolio	[1]	$ 9,858,202		$ 252,857		$ 384,217		$ 6,078,507		$ 540,523		$ 3,868,886		$ 20,983,192
ALLL to loans held-in-portfolio	[1]	3.02	%	2.94	%	8.62	%	2.46	%	0.54	%	3.39	%	2.96	%
[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, 2012, the general allowance on the covered loans amounted to $100 million, while the specific reserve amounted to $9 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.
30-Sep-12
(Dollars in thousands)		Commercial		Construction		Legacy [3]		Mortgage		Lease financing		Consumer		Total	[2]
Specific ALLL		$ 22,239		$ 191		$ -		$ 62,823		$ 978		$ 21,193		$ 107,424
Impaired loans	[1]	$ 497,224		$ 47,897		$ 24,276		$ 560,441		$ 4,933		$ 135,204		$ 1,269,975
Specific ALLL to impaired loans	[1]	4.47	%	0.40	%	-	%	11.21	%	19.83	%	15.67	%	8.46	%
General ALLL		$ 263,769		$ 8,945		$ 39,871		$ 92,009		$ 1,603		$ 122,678		$ 528,875
Loans held-in-portfolio, excluding impaired loans	[1]	$ 9,131,407		$ 210,556		$ 441,572		$ 5,461,981		$ 533,081		$ 3,705,281		$ 19,483,878
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]	2.89	%	4.25	%	9.03	%	1.68	%	0.30	%	3.31	%	2.71	%
Total ALLL		$ 286,008		$ 9,136		$ 39,871		$ 154,832		$ 2,581		$ 143,871		$ 636,299
Total non-covered loans held-in-portfolio	[1]	$ 9,628,631		$ 258,453		$ 465,848		$ 6,022,422		$ 538,014		$ 3,840,485		$ 20,753,853
ALLL to loans held-in-portfolio	[1]	2.97	%	3.53	%	8.56	%	2.57	%	0.48	%	3.75	%	3.07	%
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of September 30, 2012, the general allowance on the covered loans amounted to $110 million, while the specific reserve amounted to $15 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.
Variance
(Dollars in thousands)		Commercial		Construction		Legacy		Mortgage		Lease financing		Consumer		Total
Specific ALLL		$ (4,891)		$ (71)		$ -		$ 11,844		$ 88		$ (3,307)		$ 3,663
Impaired loans		$ 30,440		$ (6,088)		$ (5,532)		$ 50,789		$ (52)		$ (1,827)		$ 67,730
General ALLL		$ 16,565		$ (1,636)		$ (6,769)		$ (17,301)		$ 225		$ (9,345)		$ (18,261)
Loans held-in-portfolio, excluding impaired loans		$ 199,131		$ 492		$ (76,099)		$ 5,296		$ 2,561		$ 30,228		$ 161,609
Total ALLL		$ 11,674		$ (1,707)		$ (6,769)		$ (5,457)		$ 313		$ (12,652)		$ (14,598)
Total non-covered loans held-in-portfolio		$ 229,571		$ (5,596)		$ (81,631)		$ 56,085		$ 2,509		$ 28,401		$ 229,339

Popular, Inc.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS
(Unaudited)
31-Dec-12
Puerto Rico
(In thousands)		Commercial		Construction		Mortgage		Lease financing		Consumer		Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$	17,323	$	120	$	58,572	$	1,066	$	17,779	$	94,860
	General ALLL non-covered loans		200,292		5,742		60,455		1,828		82,120		350,437
ALLL - non-covered loans			217,615		5,862		119,027		2,894		99,899		445,297
	Specific ALLL covered loans		8,505		-		-		-		-		8,505
	General ALLL covered loans		63,555		9,946		20,914		-		5,986		100,401
ALLL - covered loans			72,060		9,946		20,914		-		5,986		108,906
Total ALLL		$	289,675	$	15,808	$	139,941	$	2,894	$	105,885	$	554,203
Loans held-in-portfolio:
	Impaired non-covered loans	$	447,779	$	35,849	$	557,137	$	4,881	$	130,663	$	1,176,309
	Non-covered loans held-in-portfolio, excluding impaired loans		5,848,505		176,418		4,391,787		535,642		3,103,666		14,056,018
Non-covered loans held-in-portfolio			6,296,284		212,267		4,948,924		540,523		3,234,329		15,232,327
	Impaired covered loans		109,241		-		-		-		-		109,241
	Covered loans held-in-portfolio, excluding impaired loans		2,135,406		361,396		1,076,730		-		73,199		3,646,731
Covered loans held-in-portfolio			2,244,647		361,396		1,076,730		-		73,199		3,755,972
Total loans held-in-portfolio		$	8,540,931	$	573,663	$	6,025,654	$	540,523	$	3,307,528	$	18,988,299
30-Sep-12
Puerto Rico
(In thousands)		Commercial		Construction		Mortgage		Lease financing		Consumer		Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$	21,246	$	191	$	47,523	$	978	$	21,070	$	91,008
	General ALLL non-covered loans		180,178		7,208		77,567		1,603		87,690		354,246
ALLL - non-covered loans			201,424		7,399		125,090		2,581		108,760		445,254
	Specific ALLL covered loans		15,294		-		-		-		-		15,294
	General ALLL covered loans		64,326		27,223		12,886		-		5,144		109,579
ALLL - covered loans			79,620		27,223		12,886		-		5,144		124,873
Total ALLL		$	281,044	$	34,622	$	137,976	$	2,581	$	113,904	$	570,127
Loans held-in-portfolio:
	Impaired non-covered loans	$	404,375	$	35,757	$	506,723	$	4,933	$	132,472	$	1,084,260
	Non-covered loans held-in-portfolio, excluding impaired loans		5,779,440		174,999		4,412,162		533,081		3,059,817		13,959,499
Non-covered loans held-in-portfolio			6,183,815		210,756		4,918,885		538,014		3,192,289		15,043,759
	Impaired covered loans		120,510		-		-		-		-		120,510
	Covered loans held-in-portfolio, excluding impaired loans		2,203,852		393,101		1,106,851		-		79,553		3,783,357
Covered loans held-in-portfolio			2,324,362		393,101		1,106,851		-		79,553		3,903,867
Total loans held-in-portfolio		$	8,508,177	$	603,857	$	6,025,736	$	538,014	$	3,271,842	$	18,947,626

Variance
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$	(3,923	)	$	(71	)	$	11,049		$	88		$	(3,291	)	$	3,852
	General ALLL non-covered loans		20,114			(1,466	)		(17,112	)		225			(5,570	)		(3,809	)
ALLL - non-covered loans			16,191			(1,537	)		(6,063	)		313			(8,861	)		43
	Specific ALLL covered loans		(6,789	)		-			-			-			-			(6,789	)
	General ALLL covered loans		(771	)		(17,277	)		8,028			-			842			(9,178	)
ALLL - covered loans			(7,560	)		(17,277	)		8,028			-			842			(15,967	)
Total ALLL		$	8,631		$	(18,814	)	$	1,965		$	313		$	(8,019	)	$	(15,924	)
Loans held-in-portfolio:
	Impaired non-covered loans	$	43,404		$	92		$	50,414		$	(52	)	$	(1,809	)	$	92,049
	Non-covered loans held-in-portfolio, excluding impaired loans		69,065			1,419			(20,375	)		2,561			43,849			96,519
Non-covered loans held-in-portfolio			112,469			1,511			30,039			2,509			42,040			188,568
	Impaired covered loans		(11,269	)		-			-			-			-			(11,269	)
	Covered loans held-in-portfolio, excluding impaired loans		(68,446	)		(31,705	)		(30,121	)		-			(6,354	)		(136,626	)
Covered loans held-in-portfolio			(79,715	)		(31,705	)		(30,121	)		-			(6,354	)		(147,895	)
Total loans held-in-portfolio		$	32,754		$	(30,194	)	$	(82	)	$	2,509		$	35,686		$	40,673

Popular, Inc.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS
(Unaudited)
31-Dec-12
U.S. Mainland
(In thousands)		Commercial	Construction	Legacy	Mortgage	Consumer	Total
Allowance for credit losses:
	Specific ALLL	$ 25	$ -	$ -	$ 16,095	$ 107	$ 16,227
	General ALLL	80,042	1,567	33,102	14,253	31,213	160,177
Total ALLL		$ 80,067	$ 1,567	$ 33,102	$ 30,348	$ 31,320	$ 176,404
Loans held-in-portfolio:
	Impaired loans	$ 79,885	$ 5,960	$ 18,744	$ 54,093	$ 2,714	$ 161,396
	Loans held-in-portfolio, excluding impaired loans	3,482,033	34,630	365,473	1,075,490	631,843	5,589,469
Total loans held-in-portfolio		$ 3,561,918	$ 40,590	$ 384,217	$ 1,129,583	$ 634,557	$ 5,750,865
30-Sep-12
U.S. Mainland
(In thousands)		Commercial	Construction	Legacy	Mortgage	Consumer	Total
Allowance for credit losses:
	Specific ALLL	$ 993	$ -	$ -	$ 15,300	$ 123	$ 16,416
	General ALLL	83,591	1,737	39,871	14,442	34,988	174,629
Total ALLL		$ 84,584	$ 1,737	$ 39,871	$ 29,742	$ 35,111	$ 191,045
Loans held-in-portfolio:
	Impaired loans	$ 92,849	$ 12,140	$ 24,276	$ 53,718	$ 2,732	$ 185,715
	Loans held-in-portfolio, excluding impaired loans	3,351,967	35,557	441,572	1,049,819	645,464	5,524,379
Total loans held-in-portfolio		$ 3,444,816	$ 47,697	$ 465,848	$ 1,103,537	$ 648,196	$ 5,710,094
Variance
(In thousands)		Commercial	Construction	Legacy	Mortgage	Consumer	Total
Allowance for credit losses:
	Specific ALLL	$ (968)	$ -	$ -	$ 795	$ (16)	$ (189)
	General ALLL	(3,549)	(170)	(6,769)	(189)	(3,775)	(14,452)
Total ALLL		$ (4,517)	$ (170)	$ (6,769)	$ 606	$ (3,791)	$ (14,641)
Loans held-in-portfolio:
	Impaired loans	$ (12,964)	$ (6,180)	$ (5,532)	$ 375	$ (18)	$ (24,319)
	Loans held-in-portfolio, excluding impaired loans	130,066	(927)	(76,099)	25,671	(13,621)	65,090
Total loans held-in-portfolio		$ 117,102	$ (7,107)	$ (81,631)	$ 26,046	$ (13,639)	$ 40,771

Popular, Inc.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table N - Reconciliation to GAAP Financial Measures
(Unaudited)
(In thousands, except share or per share information)	31-Dec-12				30-Sep-12				31-Dec-11
Total stockholders’ equity	$	4,110,000			$	4,068,984			$	3,918,753
Less: Preferred stock		(50,160	)			(50,160	)			(50,160	)
Less: Goodwill		(647,757	)			(647,757	)			(648,350	)
Less: Other intangibles		(54,295	)			(56,762	)			(63,954	)
Total tangible common equity	$	3,357,788			$	3,314,305			$	3,156,289
Total assets	$	36,507,535			$	36,503,366			$	37,348,432
Less: Goodwill		(647,757	)			(647,757	)			(648,350	)
Less: Other intangibles		(54,295	)			(56,762	)			(63,954	)
Total tangible assets	$	35,805,483			$	35,798,847			$	36,636,128
Tangible common equity to tangible assets		9.38		%		9.26		%		8.62		%
Common shares outstanding at end of period [1]		103,169,806				103,097,143				102,590,457
Tangible book value per common share [1]	$	32.55			$	32.15			$	30.77
[1] All share and per share data has been adjusted to retroactively reflect the 1-for-10 reverse stock split effected on May 29, 2012.
(In thousands)	31-Dec-12				30-Sep-12				31-Dec-11
Common stockholders’ equity	$	4,059,840			$	4,018,824			$	3,868,593
Less: Unrealized gains on available-for-sale securities, net of tax[1]		(154,568	)			(175,769	)			(203,078	)
Less: Disallowed deferred tax assets[2]		(385,060	)			(365,954	)			(249,325	)
Less: Intangible assets:
Goodwill		(647,757	)			(647,757	)			(648,350	)
Other disallowed intangibles		(14,444	)			(18,409	)			(29,655	)
Less: Aggregate adjusted carrying value of all non-financial equity investments		(1,160	)			(1,154	)			(1,189	)
Add: Pension liability adjustment, net of tax and accumulated net gains
(losses) on cash flow hedges[3]		226,159				205,309				216,798
Total Tier 1 common equity	$	3,083,010			$	3,015,090			$	2,953,794
[1] In accordance with regulatory risk-based capital guidelines, Tier 1 capital excludes net unrealized gains (losses) on available-for-sale debt securities and net unrealized gains on available-for-sale equity securities with readily determinable fair values. In arriving at Tier 1 capital, institutions are required to deduct net unrealized losses on available-for-sale equity securities with readily determinable fair values, net of tax.
[2] Approximately $118 million of the Corporation’s $541 million of net deferred tax assets at December 31, 2012 (September 30, 2012 - $153 million and $546 million, respectively; December 31, 2011 - $150 million and $430 million, respectively), were included without limitation in regulatory capital pursuant to the risk-based capital guidelines, while approximately $385 million of such assets at December 31, 2012 (September 30, 2012 - $366 million; December 31, 2011 - $249 million) exceeded the limitation imposed by these guidelines and, as “disallowed deferred tax assets”, were deducted in arriving at Tier 1 capital. The remaining $38 million of the Corporation’s other net deferred tax assets at December 31, 2012 (September 30, 2012 - $27 million; December 31, 2011 - $31 million) represented primarily the following items (a) the deferred tax effects of unrealized gains and losses on available-for-sale debt securities, which are permitted to be excluded prior to deriving the amount of net deferred tax assets subject to limitation under the guidelines; (b) the deferred tax asset corresponding to the pension liability adjustment recorded as part of accumulated other comprehensive income; and (c) the deferred tax liability associated with goodwill and other intangibles.
[3] The Federal Reserve Bank has granted interim capital relief for the impact of pension liability adjustment.

Popular, Inc.
Financial Supplement to Fourth Quarter 2012 Earnings Release
Table O - Financial Information - Westernbank Covered Loans
(Unaudited)
Revenues
		Quarters ended
(In thousands)		31-Dec-12			30-Sep-12			Variance
Interest income on covered loans		$	76,998		$	70,584		$	6,414
FDIC loss share expense:
Amortization of indemnification asset			(33,704	)		(29,184	)		(4,520	)
80% mirror accounting on credit impairment losses [1]			(2,756	)		18,095			(20,851	)
80% mirror accounting on discount accretion on unfunded commitments			(225	)		(248	)		23
80% mirror accounting on reimbursable expenses			10,152			7,577			2,575
Change in true-up payment obligation			(8,329	)		(2,991	)		(5,338	)
Other			(1,962	)		44			(2,006	)
	Total FDIC loss share expense		(36,824	)		(6,707	)		(30,117	)
Other non-interest income			281			310			(29	)
Total revenues			40,455			64,187			(23,732	)
Provision for loan losses			(3,445	)		22,619			(26,064	)
Total revenues less provision for loan losses		$	43,900		$	41,568		$	2,332
[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.
Quarterly average assets
		Quarters ended
(In millions)		31-Dec-2012			30-Sep-2012			Variance
Covered loans		$	3,832		$	3,952		$	(120	)
FDIC loss share asset			1,540			1,578			(38	)
Activity in the carrying amount and accretable yield of covered loans accounted for under ASC 310-30
		Quarters ended
		31-Dec-2012						30-Sep-2012
(In thousands)		Accretable yield			Carrying amount of loans			Accretable yield			Carrying amount of loans
Beginning balance		$	1,470,882		$	3,627,209		$	1,574,850		$	3,729,489
Accretion			(71,103	)		71,103			(66,168	)		66,168
Changes in expected cash flows			51,890			-			(37,800	)		-
Collections / charge-offs			-			(206,553	)		-			(168,448	)
Ending balance			1,451,669			3,491,759			1,470,882			3,627,209
	Allowance for loan losses - ASC 310-30 covered loans		-			(95,407	)		-			(103,547	)
Ending balance, net of allowance for loan losses		$	1,451,669		$	3,396,352		$	1,470,882		$	3,523,662
Activity in the carrying amount of the FDIC indemnity asset
					Quarters ended
(In thousands)					31-Dec-2012						30-Sep-2012
Balance at beginning of period					$	1,559,057					$	1,631,594
Amortization						(33,704	)					(29,184	)
Credit impairment losses to be covered under loss sharing agreements						(2,756	)					18,095
Decrease due to reciprocal accounting on the discount accretion on unfunded commitments						(225	)					(248	)
Reimbursable expenses to be covered under loss sharing agreements						10,152						7,577
Payments received from FDIC under loss sharing agreements						(134,277	)					(64,932	)
Other adjustments attributable to FDIC loss sharing agreements						851						(3,845	)
Balance at end of period					$	1,399,098					$	1,559,057
Activity in the remaining FDIC loss share asset amortization
					Quarters ended
(In thousands)					31-Dec-2012						30-Sep-2012
Balance at beginning of period					$	96,424					$	121,308
Amortization						(33,704	)					(29,184	)
Impact of lower projected losses						79,080						4,300
Balance at end of period					$	141,800					$	96,424

CONTACT:
Popular, Inc.
Investor Relations:
Jorge A. Junquera, 787-754-1685
Chief Financial Officer, Senior Executive Vice President
or
Media Relations:
Teruca Rullán, 787-281-5170 or 917-679-3596/mobile
Senior Vice President, Corporate Communications