Popular (BPOP) 8-K Popular, Inc. Announces First Quarter Financial Results

Exhibit 99.1

Popular, Inc. Announces First Quarter Financial Results

• Reports net loss of $ 120.3 million for the quarter ended March 31, 2013, reflecting a $180.6 million after-tax loss on bulk asset sale and valuation adjustments
• Adjusted net income of $60.3 million, excluding the effect of asset sale and valuation adjustments
• Completed sale of assets with book value of $509.0 million, of which $500.6 million were in non-performing status

• Significant progress in credit quality (metrics exclude covered loans):

Including the impact of the bulk sale:

• Non-performing assets declined by $565.2 million, or 32%, quarter over quarter;

• Non-performing loans held-in-portfolio declined by $374.5 million or 26% from Q4 2012, and decreased by 55% from Q3 2010 peak to reach lowest level since 2008;
• Inflows of non-performing loans held-in-portfolio, excluding consumer loans, declined by $60.3 million, or 25%, from Q4 2012;
• OREO decreased by $112.1 million, or 42%, quarter over quarter.

Excluding the impact of the bulk sale:

• Non-performing assets declined by $64.6 million, or 4%, quarter over quarter;
• Non-performing loans held-in-portfolio declined by $41.8 million from Q4 2012;
• Net charge-offs decreased by $19.5 million from Q4 2012; NCO ratio decreased to 1.55%, reaching lowest level since 2008.

• Net interest margin of 4.39% in Q1 2013, vs. 4.41% in Q4 2012
• Common Equity Tier 1 ratio of 12.36% and Tangible Book Value per Share of $31.21 at March 31, 2013; capital exceeds well-capitalized threshold by $1.7 billion

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--April 18, 2013--Popular, Inc. (the “Corporation” or “Popular”) (NASDAQ:BPOP) reported a net loss of $120.3 million for the quarter ended March 31, 2013, compared to net income of $83.9 million for the quarter ended December 31, 2012.

Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said: “We delivered a good underlying performance in the quarter and two important transactions were completed in recent weeks. The non-performing asset sale, the successful IPO of EVERTEC and the continuing organic improvements in our credit quality build on our efforts to derisk our balance sheet, build capital and continue to drive value for our shareholders.”

Earnings Highlights
(Unaudited)	Quarters ended
(Dollars in thousands, except per share information)	31-Mar-13			31-Dec-12			31-Mar-12
Net interest income	$	345,347		$	350,411		$	337,582
Provision for loan losses – non-covered loans		206,300			86,256			82,514
Provision for loan losses – covered loans [1]		17,556			(3,445	)		18,209
Net interest income after provision for loan losses		121,491			267,600			236,859
FDIC loss share expense		(26,266	)		(36,824	)		(15,255	)
Other non-interest income [2]		43,841			169,825			139,163
Operating expenses		316,250			296,747			296,167
(Loss) income before income tax		(177,184	)		103,854			64,600
Income tax (benefit) expense		(56,877	)		19,914			16,192
Net (loss) income	$	(120,307	)	$	83,940		$	48,408
Net (loss) income applicable to common stock	$	(121,237	)	$	83,009		$	47,477
Net (loss) income per common share - basic and diluted [3]	$	(1.18	)	$	0.81		$	0.46
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.
[2] Other non-interest income for the fourth quarter of 2012 includes $31.6 million related to the Corporation’s proportionate share of a tax benefit from a tax grant received by EVERTEC from the Puerto Rico Government.
[3] Per share data has been adjusted to retroactively reflect the 1-for-10 reverse stock split effected on May 29, 2012.

Recent significant events

• On April 12, 2013 EVERTEC, Inc. (“EVERTEC” or the “Company”) completed an initial public offering (“IPO”) of 25.3 million shares, raising approximately $505.3 million. In connection with the IPO, EVERTEC sold 6.3 million of newly issued common stock in the offering and Apollo Global Management LLC (“Apollo”) and Popular respectively sold 10.2 million and 8.8 million shares of the Company retaining a stake of 33.6% and 33.5%, respectively. If the underwriters exercise their overallotment option in full, Popular and Apollo would own 33.5% and 28.8% of the outstanding common stock of EVERTEC, respectively.

Following the IPO, EVERTEC is refinancing all of its outstanding debt. As part of this refinancing, Popular will receive payment in full for its portion of the EVERTEC debt held by it. As a result of these transactions, Popular will recognize an after tax gain of approximately $169.4 million during the second quarter of 2013, comprised of the following:

• $130.4 million gain on the sale of its previously held EVERTEC common stock
• $45.9 million gain on its investment in EVERTEC resulting from the issuance of the new common stock by EVERTEC
• An estimated $4.2 million gain from the repayment of the debt
• An estimated $5.7 million from the accelerated payment of contractual consulting fees
• A loss of approximately $16.8 million from Popular’s proportionate share of EVERTEC’s debt prepayment penalty, consulting fees and other related costs

After the transaction, Popular’s investment in EVERTEC will have a book value of $74.9 million. Total cash proceeds received by Popular from the sale of the shares and repayment of the debt will be $254.3 million.

• On March 25, 2013, Banco Popular de Puerto Rico (“BPPR”) completed a sale of assets with a book value of $509.0 million, of which $500.6 million were in non-performing status, comprised of commercial and construction loans, and commercial and single-family real estate owned, with a combined unpaid principal balance on loans and appraised value of other real estate owned of approximately $987 million to a newly created joint venture. BPPR retained a 24.9% equity interest in the joint venture. BPPR provided seller financing for approximately $182.4 million to fund a portion of the purchase price and certain closing costs. In addition, BPPR provided financing of $65.0 million to cover cost-to-complete amounts and expenses of certain assets, as well as certain expenses of the purchasing entity. This transaction resulted in an after tax loss of $174.4 million.

The following table presents the results of operations for the quarter ended March 31, 2013, excluding the impact of the sale of non-performing assets and valuation adjustments.

	Quarters ended
(Unaudited)	31-Mar-13									31-Dec-12 (US GAAP)			Variance
(In thousands)	Actual Results (US GAAP)			Impact of Sale of NPAs			Adjusted Results (Non GAAP)
Net interest income	$	345,347		$	-		$	345,347		$	350,411		$	(5,064	)
Provision for loan losses – non-covered loans		206,300			148,823			57,477			86,256			(28,779	)
Provision for loan losses – covered loans [1]		17,556			-			17,556			(3,445	)		21,001
Net interest income after provision for loan losses		121,491			(148,823	)		270,314			267,600			2,714
FDIC loss share expense		(26,266	)		-			(26,266	)		(36,824	)		10,558
Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale [2]		(48,959	)		(61,387	)		12,428			30,196			(17,768	)
Other non-interest income [3]		92,800			(10,700	)		103,500			139,629			(36,129	)
OREO expense		46,741			37,046			9,695			1,079			8,616
Other operating expenses		269,509			5			269,504			295,668			(26,164	)
(Loss) income before income tax		(177,184	)		(257,961	)		80,777			103,854			(23,077	)
Income tax (benefit) expense		(56,877	)		(77,388	)		20,511			19,914			597
Net (loss) income	$	(120,307	)	$	(180,573	)	$	60,266		$	83,940		$	(23,674	)
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.
[2] Net (loss) gain on sale of loans, includes $8.8 million of negative valuation adjustments on loans held for sale which were transferred to held-in-portfolio subsequent to the sale.
[3] Other non-interest income for the fourth quarter of 2012 includes $31.6 million related to the Corporation’s proportionate share of a tax benefit from a tax grant received by EVERTEC from the Puerto Rico Government.

Financial Impact of FDIC-Assisted Transaction
(Unaudited)
(In thousands)	31-Mar-13			31-Dec-12			31-Mar-12
Income Statement
Interest income on covered loans	$	72,184		$	76,998		$	74,764
Total FDIC loss share (expense)		(26,266	)		(36,824	)		(15,255	)
Other non-interest income		242			281			310
Provision for loan losses		17,556			(3,445	)		18,209
Total revenues less provision for loan losses	$	28,604		$	43,900		$	41,610
Balance Sheet
Loans covered under loss-sharing agreements with FDIC	$	3,362,446		$	3,755,972		$	4,221,788
FDIC loss share asset		1,380,592			1,399,098			1,880,357
FDIC true-up payment obligation		118,294			111,519			99,962

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

Net interest income

Net interest margin for the first quarter of 2013 decreased 2 basis points to 4.39% when compared with the fourth quarter of 2012. Net interest income reached $345.3 million, a decrease of $5.0 million from the previous quarter. The main drivers of the decrease in net interest margin are:

• Nearly all of the nominal decrease in net interest income was due to the impact of having two fewer days in the first quarter of 2013 than in the fourth quarter of 2012 and the proportion of loans with interest accrued on actual/actual basis.
• Decrease of $3.5 million, or 2 basis points, in interest income on non-covered loans, primarily commercial loans in Puerto Rico, mainly due to fewer days.
• Decrease of $4.8 million in interest income on the covered loan portfolio. During the fourth quarter of 2012, the covered portfolio reflected higher nominal income mainly from the resolution of certain commercial loans in excess of their book value during that quarter. The yield on the covered commercial loan portfolio for the first quarter of 2013 was 8.31%, or 30 basis points higher than the fourth quarter of 2012, mainly as a result of higher expected cash flows which are reflected in the accretable yield and recognized over the life of the loans.
• Decrease of approximately $2.5 million, or 4 basis points, in interest expense on deposits, $0.9 million of which was due to fewer days in the first quarter of 2013 with the remaining improvement related to continuing progress in repricing the deposit base, which partially offset the decrease in interest income.

• Banco Popular de Puerto Rico’s (BPPR) net interest margin remained stable from the previous quarter at 5.18%. Net interest income amounted to $304.9 million for the quarter ended March 31, 2013, compared with $309.1 million for the previous quarter. The decrease was mainly related to the impact of fewer days on the commercial loans and the previously discussed effect of the covered loan portfolio. This decrease was partially offset by a 5 basis points reduction in the cost of interest-bearing deposits.
• Banco Popular North America (BPNA), our U.S. banking subsidiary that does business as Popular Community Bank, earned $68.0 million in net interest income for the quarter ended March 31, 2013, compared with $68.5 million in the previous quarter. The decrease in the net interest margin of 3 basis points to 3.48% was mainly caused by a decrease in the yield of commercial, mortgage and consumer loans, and of investment securities. This decrease was partially offset by a 2 basis points reduction in the cost of interest-bearing deposits.

Provision for Loan Losses
	Quarters ended
(In thousands)	31-Mar-13		31-Dec-12			31-Mar-12
Provision for loan losses - non-covered loans:
BPPR	$	204,289	$	78,092		$	67,788
BPNA		2,011		8,164			14,726
Total provision for loan losses - non-covered loans		206,300		86,256			82,514
Provision (reversal) for loan losses - covered loans		17,556		(3,445	)		18,209
Total provision for loan losses	$	223,856	$	82,811		$	100,723

The provision for loan losses for the first quarter of 2013 amounted to $223.9 million, an increase of $141.0 million versus the previous quarter, mainly related to the $148.8 million impact of the bulk loan sale. Excluding the impact of the sale, the provision for the first quarter of 2013 was $75.1 million, declining by $7.7 million from the fourth quarter of 2012.

• The provision for loan losses for the non-covered loan portfolio increased by $120.0 million from the fourth quarter of 2012, mainly due to the impact of the sale. Excluding the impact of the sale, the provision for the first quarter of 2013 was $57.5 million, decreasing by $28.8 million, reflecting improvements in credit quality, as underlying losses and NPLs continue to trend downwards at BPPR and BPNA.

• The provision for loan losses for non-covered loans at BPPR decreased by $22.6 million from the fourth quarter of 2012, excluding the impact of the sale.
• The provision for loan losses at BPNA decreased by $6.2 million from the fourth quarter of 2012.

• The provision for loan losses on the covered loan portfolio increased by $21.0 million from the previous quarter.

• The provision for loan losses for loans accounted under ASC 310-30 increased by $12.5 million from the fourth quarter of 2012, mostly due to certain commercial and construction loan pools, which reflected higher expected loss estimates for the first quarter of 2013. 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 increased by $8.5 million from the previous quarter, driven by a provision reversal of $5.0 million in the fourth quarter of 2012, which was primarily due to a reduction in the specific reserve of a particular commercial loan relationship.

Non-interest income

Non-interest income decreased by $115.4 million compared with the fourth quarter of 2012, driven primarily by the following items:

• A $79.2 million decrease in net gain on sale of loans. This decrease was principally driven by the loss of $61.4 million related to the bulk sale of non-performing commercial and construction loans, which includes unfavorable valuation adjustment on loans held-for-sale transferred to held-in-portfolio of approximately $8.8 million. Excluding the effect of the NPA sale, the gain on sale of loans declined by $17.8 million due to a securitization and higher loan sale activity recorded by BPPR’s mortgage division in the fourth quarter of 2012.
• An increase of $12.9 million in adjustments to the indemnity reserves on loans sold, mainly as a result of $10.7 million recorded in connection with the bulk sale of non-performing loans.
• A $35.6 million decrease in other operating income, principally due to $31.6 million of income recorded during the fourth quarter of 2012 related to the Corporation’s proportionate share of a tax benefit from a tax grant received by EVERTEC from the Puerto Rico Government.
• A decrease of $4.9 million in other service fees, mainly related to contingent insurance commissions which are typically recognized during the fourth quarter.

These increases were partially offset by:

• A decrease of $10.6 million in FDIC loss-share expense mainly due to higher mirror accounting on credit impairment losses. 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 $19.5 million versus the fourth quarter of 2012, driven primarily by:

• An increase of $45.7 million in other real estate owned (OREO) expenses, due mainly to the loss of $37.0 million incurred as a result of the bulk sale of commercial and single-family real estate owned and higher gain on sales of commercial OREOs at both BPPR and BPNA, which offset OREO expenses during the fourth quarter of 2012.

This increase was partially offset by:

• A decrease of $6.1 million in professional fees mainly due to lower attorney collection fees at BPPR and lower technology service fees.
• Lower FDIC deposit insurance expenses of $4.4 million, driven mainly by an incremental assessment credit of $6.2 million recognized during the first quarter of 2013 as a result of revisions in the deposit-insurance premium calculation and efficiencies achieved from the internal reorganization of Popular Mortgage into BPPR during the fourth quarter of 2012.
• A decrease of $9.3 million in other operating expenses due largely to lower provision for operational losses by $4.5 million, both in BPPR and BPNA, and lower other general operating expenses.

Excluding the impact of the bulk sale, operating expenses declined by $17.5 million.

Non-personnel credit-related costs, which include collections, appraisals, credit related fees, and OREO expenses, but excluding the impact of the transaction, amounted to $20.3 million for the first quarter of 2013, compared with $14.1 million for the fourth quarter of 2012. The increase was principally due to higher gain on sales of commercial OREOs at both BPPR and BPNA, which offset OREO expenses during the fourth quarter of 2012.

Full-time equivalent employees (“FTEs”) were 8,144 as of March 31, 2013, compared with 8,072 as of December 31, 2012, and 8,074 as of March 31, 2012. The increase of 72 FTEs from the fourth quarter of 2012, which includes some temporary personnel, is related to the addition of resources in the retail banking and individual credit divisions to supplement the demand in the mortgage business, as well as support for certain of the Corporation’s initiatives.

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

Income taxes

For the quarter ended March 31, 2013, the Corporation recorded an income tax benefit of $56.9 million, reflecting the net operating loss generated by the sale of non-performing assets, compared with an income tax expense of $19.9 million for the fourth quarter of 2012.

Credit Quality

The following table presents non-performing assets information and the effect that the bulk sale had on these balances.

Non-Performing Assets
(Unaudited)
	31-Mar-12			31-Dec-12			31-Mar-13
(In thousands)							Net inflows/ (outflows)			Sale of NPAs			Total
Total non-performing loans held-in-portfolio, excluding covered loans[1]	$	1,681,803		$	1,425,133		$	(41,773	)	$	(332,752	)	$	1,050,608
Non-performing loans held-for-sale		232,293			96,320			(19,129	)		(59,449	)		17,742
Other real estate owned (“OREO”), excluding covered OREO		193,768			266,844			(3,709	)		(108,436	)		154,699
Total non-performing assets, excluding covered assets		2,107,864			1,788,297			(64,610	)		(500,637	)		1,223,049
Covered loans and OREO		203,254			213,469			(16,752	)		-			196,717
Total non-performing assets	$	2,311,118		$	2,001,766		$	(81,362	)	$	(500,637	)	$	1,419,766
Net charge-offs for the quarter (excluding covered loans)	$	108,109		$	100,854		$	(81,357	)	$ (163,143)[2]			$	(244,500	)
[1] The bulk sale of assets included $8.4 million in performing loans.
[2] Net write-downs related to loans sold.
Ratios (excluding covered loans):
Non-performing loans held-in-portfolio to loans held-in-portfolio		8.21	%		6.79	%								4.86	%
Allowance for loan losses to loans held-in-portfolio		3.25			2.96									2.70
Allowance for loan losses to non-performing loans, excluding loans held-for-sale		39.53			43.62									55.54

Credit quality continues to improve as a result of key strategies implemented to reduce non-performing loans, as well as stabilizing economic conditions and improvements in the underlying quality of the loan portfolios.

• Non-performing loans (NPL) held-in-portfolio decreased by $374.5 million, or 26%, from the fourth quarter of 2012, and 55% from peak levels in the third quarter of 2010. This reduction reflects the impact of the sale of NPLs with book value of approximately $332.8 million. Excluding the impact of the bulk loan sale, NPLs decreased by $41.8 million.
• Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $60.3 million, or 25%, from the previous quarter. This reduction was principally attributed to a decrease of $57.0 million in mortgage NPL inflows in Puerto Rico.

• OREO, excluding covered OREO, decreased by $112.1 million from the fourth quarter of 2012, primarily as a result of the sale of $58.6 million and $49.9 million in commercial and single family OREO, respectively, during the quarter.
• Net charge-offs for the first quarter were $244.5 million, or 4.66% of average non-covered loans held-in-portfolio on an annualized basis, compared with $100.9 million, or 1.94%, for the previous quarter. The bulk loan sale added $163.1 million in charge-offs at BPPR operations. Excluding the impact of the bulk loan sale, net charge-offs were $81.4 million or 1.55% of average non-covered loans-held-in portfolio, decreasing by $19.5 million from the fourth quarter of 2012. This decline was driven by improvements in the underlying credit performance. Refer to Table J for further information on net charge-offs and related ratios.
• The ratio of the allowance for loan losses to loans held-in-portfolio, excluding covered loans, stood at 2.70% as of March 31, 2013, compared with 2.96% as of December 31, 2012. The general and specific reserves related to non-covered loans totaled $459.8 million and $123.7 million, respectively, at quarter-end, compared with $510.6 million and $111.1 million, respectively, as of December 31, 2012. The decrease in the allowance for loan losses was primarily due to continued improvements in credit quality trends.

Credit Quality by Segment
(In thousands)	Quarters ended
BPPR		31-Mar-13			31-Dec-12			31-Mar-12
Provision for loan losses		$	204,289		$	78,092		$	67,788
Net charge-offs (excludes NPLs sale)			62,424			78,050			73,658
Total non-performing loans held-in-portfolio,
excluding covered loans			837,943			1,191,982			1,343,480
Allowance/non-covered loans held-in-portfolio			2.66	%		2.92	%		3.01	%
	Quarters ended
BPNA		31-Mar-13			31-Dec-12			31-Mar-12
Provision for loan losses		$	2,011		$	8,164		$	14,726
Net charge-offs			18,933			22,804			34,451
Total non-performing loans held-in-portfolio,
excluding covered loans			212,665			233,151			338,323
Allowance/non-covered loans held-in-portfolio			2.80	%		3.07	%		3.87	%

BPPR Segment

• The provision for loan losses for the non-covered loan portfolio increased by $126.2 million from the fourth quarter of 2012, mainly due to the incremental provision of $148.8 million as a result of the bulk loan sale. Excluding the impact of the sale, the provision for loan losses declined by $22.6 million to $55.5 million for the first quarter of 2013, due to positive trends in credit quality.
• Net charge-offs, excluding covered loans, increased by $147.5 million from the fourth quarter of 2012, principally related to incremental charge-offs of $163.1 million associated with the bulk loan sale. Excluding the impact of the sale, net charge-offs were $62.4 million or 1.64% of average non-covered loans-held-in portfolio on an annualized basis, decreasing by $15.6 million from the fourth quarter of 2012, primarily due to reductions in the commercial portfolio.
• Total NPLs held-in-portfolio, excluding covered loans, decreased by $354.0 million, or 30%, from the fourth quarter of 2012. The decrease in NPLs reflects both the impact of the sale and the reduction of $23.4 million in mortgage NPLs.
• Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $52.1 million, or 25%, from the previous quarter. This reduction was principally driven by a decline of $57.0 million in mortgage NPL inflows, as a result of collection efforts greater economic stability and a benefit from the treatment of $23.6 million in purchase of impaired loans under ASC 310-30 in the first quarter.
• The allowance for loan losses for non-covered loans held-in-portfolio decreased by $21.3 million from the previous quarter. The allowance for loan losses as a percentage of non-covered loans held-in-portfolio decreased to 2.66% from 2.92% in the fourth quarter of 2012.
• The allowance for loans losses to non-performing loans for non-covered loans held-in-portfolio increased to 50.60% from 37.36% in the previous quarter. The increase is mostly driven by the effect of the NPL sale.

BPNA Segment

• The provision for loan losses in the first quarter of 2013 decreased by $6.2 million. The allowance for loan losses as a percentage of loans held-in-portfolio decreased to 2.80% from 3.07% in the fourth quarter of 2012. Sustained improvements in credit quality trends continue to drive the reductions in the provision and the allowance.
• Net charge-offs decreased by $3.9 million from the fourth quarter of 2012, mainly driven by improvements across most portfolios. The net charge-offs to average loans held-in-portfolio was 1.33% on an annualized basis, down from 1.60% in the previous quarter.
• Total non-performing loans held-in-portfolio decreased by $20.5 million from the fourth quarter of 2012, reflecting lower inflows to non-performing loans and loan resolutions. Total inflows of non-performing loans held-in-portfolio, excluding consumer loans, decreased by $8.2 million, or 24%, from the fourth quarter of 2012.

Financial Condition Highlights
(Unaudited)
(In thousands)	31-Mar-13		31-Dec-12		31-Mar-12
Total assets	$	36,942,714	$	36,507,535	$	37,049,221
Total loans held-in-portfolio (net)		24,312,823		24,008,557		23,897,198
Deposits		27,013,217		27,000,613		27,197,736
Borrowings		4,969,344		4,430,673		4,708,511
Stockholders’ equity		3,971,143		4,110,000		3,967,071

Total assets increased by approximately $435.2 million from December 31, 2012 driven by:

• A $61.6 million increase in cash and money market accounts due mainly to balances held with the Federal Reserve Bank
• A $237.0 million increase in securities available-for-sale, mainly due to purchase of agency collateralized mortgage obligations and obligations from U.S. Government sponsored entities
• A $650.6 million increase in non-covered loans held-in-portfolio mainly due to:

• an increase of $795.4 million in mortgage loans during the first quarter of 2013. The increase was driven by the purchase of mortgage loans, with an unpaid principal balance $860.3 million in Puerto Rico. These opportunistic purchases are part of the Corporation’s strategy to supplement origination volume and leverage the scale of our loan servicing platform; and
• an increase in construction loans of $18.6 million, mainly as a result of loans reclassified from the held-for-sale category amounting to $14.1 million, which were offset in part by $3.5 million in non-performing loans sold; offset by;
• a decrease in commercial loans of $107.8 million, mainly as a result of the bulk sale of non-performing assets, which reduced commercial loans by $337.6 million and loans charged-off or transferred to OREO of $49.5 million, offset by new loan originations, including the loan to the newly created joint venture which acquired the non-performing assets of $182.4 million; and
• a decrease in legacy loans of $31.7 million, as this portfolio continues its normal run-off.

• An increase in covered OREO of $33.3 million as the Corporation continues to resolve non-performing loans
• An increase in other assets of $81.7 million mainly due to the deferred tax asset related to the loss on the sale of non performing assets

These increases were partially offset by:

• A decrease in loans held-for-sale of $153.0 million as a result of the bulk sale of non-performing assets, which reduced construction and commercial loans held-for-sale by approximately $49.7 million and $9.7 million, respectively and the reclassification of the remaining balance of these loans to the held-for-investment portfolio and net outflows from secondary market transactions of the mortgage division

• The Loss-Sharing-Agreement (LSA) indemnification asset was reduced by $18.5 million during the quarter, mainly due to the amortization of the indemnification asset, reflecting reduced estimated losses on the covered portfolio, offset by credit impairment losses to be covered under the loss sharing agreement
• The covered loan portfolio balance decreased by approximately $393.5 million due to the resolution of a large relationship and the normal portfolio run-off
• Other real estate owned (“OREO”) non-covered decreased by approximately $112.1 million, mainly as a result of the bulk sale of non-performing assets during the quarter, which reduced OREOs by $108.5 million.

Total liabilities increased by $574.0 million from December 31, 2012, driven by:

• Increase in repurchase agreements of $248.9 million and other short-term borrowings of $315.0 million, mainly FHLB of NY advances, which were used in part to fund mortgage loan purchases and investment securities during the quarter.

Stockholders’ equity decreased by $138.9 million from December 31, 2012, mainly as a result of the net loss for the quarter and a decrease of $24.0 million in unrealized gains on securities available-for-sale. Refer to Table A for capital ratios and Table N for Non-GAAP reconciliations. Refer to Table C for the Statements of Financial 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, 2012, 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 37th 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, April 18, 2013 at 2:00 p.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 866-515-2909 or 617-399-5123. The conference code is 37994014.

A replay of the webcast will be archived in Popular’s website during the respective period. A telephone replay will be available from 4:00 p.m. on Thursday, April 18, 2013 to 11:59 p.m. on Thursday, April 25, 2013, at 888-286-8010 or 617-801-6888. The replay passcode is 24810804.

Popular, Inc.

Financial Supplement to First Quarter 2013 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 - 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 First Quarter 2013 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
	Quarters ended
	31-Mar-13			31-Dec-12			31-Mar-12
Net (loss) income per common share:
Basic and diluted [1]		($1.18	)	$	0.81		$	0.46
Average common shares outstanding [1]		102,664,608			102,628,274			102,341,805
Average common shares outstanding - assuming dilution [1]		103,013,204			102,801,581			102,494,500
Common shares outstanding at end of period [1]		103,228,615			103,169,806			102,711,707
Market value per common share [1]	$	27.60		$	20.79		$	20.50
Market capitalization - (In millions)	$	2,849		$	2,145		$	2,106
Return on average assets		(1.34	)%		0.92	%		0.53	%
Return on average common equity		(12.58	)%		8.50	%		5.16	%
Net interest margin [2]		4.39	%		4.41	%		4.27	%
Common equity per share [1]	$	37.98		$	39.35		$	38.14
Tangible common book value per common share (non-GAAP) [1]	$	31.21		$	32.55		$	31.23
Tangible common equity to tangible assets (non-GAAP)		8.89	%		9.38	%		8.83	%
Tier 1 risk-based capital [3]		16.52	%		17.35	%		16.51	%
Total risk-based capital [3]		17.80	%		18.63	%		17.79	%
Tier 1 leverage [3]		11.07	%		11.52	%		11.10	%
Tier 1 common equity to risk-weighted assets (non-GAAP) [3]		12.36	%		13.18	%		12.53	%
[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 First Quarter 2013 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
		Quarters ended						Variance			Quarter ended			Variance
(In thousands, except per share information)		31-Mar-13			31-Dec-12			Q1 2013 vs.Q4 2012			31-Mar-12			Q1 2013 vs.Q1 2012
Interest income:
	Loans	$	385,414		$	393,732		$	(8,318	)	$	387,942		$	(2,528	)
	Money market investments		955			929			26			948			7
	Investment securities		37,356			37,953			(597	)		45,070			(7,714	)
	Trading account securities		5,514			5,155			359			5,891			(377	)
	Total interest income		429,239			437,769			(8,530	)		439,851			(10,612	)
Interest expense:
	Deposits		38,343			40,896			(2,553	)		51,679			(13,336	)
	Short-term borrowings		9,782			10,302			(520	)		13,583			(3,801	)
	Long-term debt		35,767			36,160			(393	)		37,007			(1,240	)
	Total interest expense		83,892			87,358			(3,466	)		102,269			(18,377	)
Net interest income			345,347			350,411			(5,064	)		337,582			7,765
Provision for loan losses - non-covered loans			206,300			86,256			120,044			82,514			123,786
Provision for loan losses - covered loans			17,556			(3,445	)		21,001			18,209			(653	)
Net interest income after provision for loan losses			121,491			267,600			(146,109	)		236,859			(115,368	)
Service charges on deposit accounts			43,722			44,449			(727	)		46,589			(2,867	)
Other service fees			58,803			63,695			(4,892	)		66,039			(7,236	)
Net loss on sale and valuation adjustments of investment securities			-			(1,422	)		1,422			-			-
Trading account loss			(75	)		(5,990	)		5,915			(2,143	)		2,068
Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale			(48,959	)		30,196			(79,155	)		15,471			(64,430	)
Adjustments (expense) to indemnity reserves on loans sold			(16,143	)		(3,208	)		(12,935	)		(3,875	)		(12,268	)
FDIC loss share expense			(26,266	)		(36,824	)		10,558			(15,255	)		(11,011	)
Other operating income			6,493			42,105			(35,612	)		17,082			(10,589	)
	Total non-interest income		17,575			133,001			(115,426	)		123,908			(106,333	)
Operating expenses:
Personnel costs
	Salaries		73,345			74,846			(1,501	)		76,899			(3,554	)
	Commissions, incentives and other bonuses		15,475			14,817			658			12,726			2,749
	Pension, postretirement and medical insurance		15,238			16,453			(1,215	)		18,425			(3,187	)
	Other personnel costs, including payroll taxes		11,931			10,209			1,722			13,441			(1,510	)
	Total personnel costs		115,989			116,325			(336	)		121,491			(5,502	)
Net occupancy expenses			24,288			26,918			(2,630	)		24,162			126
Equipment expenses			11,950			11,602			348			11,341			609
Other taxes			11,586			11,942			(356	)		13,438			(1,852	)
Professional fees			52,135			58,246			(6,111	)		48,105			4,030
Communications			6,832			6,558			274			7,131			(299	)
Business promotion			12,917			16,822			(3,905	)		12,850			67
FDIC deposit insurance			9,280			13,691			(4,411	)		24,926			(15,646	)
Loss on early extinguishment of debt			-			12			(12	)		69			(69	)
Other real estate owned (OREO) expenses			46,741			1,079			45,662			14,165			32,576
Credit and debit card processing, volume, interchange and other expenses			4,975			4,646			329			4,681			294
Other operating expenses			17,089			26,439			(9,350	)		11,215			5,874
Amortization of intangibles			2,468			2,467			1			2,593			(125	)
	Total operating expenses		316,250			296,747			19,503			296,167			20,083
(Loss) income before income tax			(177,184	)		103,854			(281,038	)		64,600			(241,784	)
Income tax (benefit) expense			(56,877	)		19,914			(76,791	)		16,192			(73,069	)
Net (loss) income		$	(120,307	)	$	83,940		$	(204,247	)	$	48,408		$	(168,715	)
Net (loss) income applicable to common stock		$	(121,237	)	$	83,009		$	(204,246	)	$	47,477		$	(168,714	)
Net (loss) income per common share - basic [1]		$	(1.18	)	$	0.81		$	(1.99	)	$	0.46		$	(1.64	)
Net (loss) income per common share - diluted [1]		$	(1.18	)	$	0.81		$	(1.99	)	$	0.46		$	(1.64	)
[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 First Quarter 2013 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
												Variance
												Q1 2013 vs.
(In thousands)			31-Mar-13			31-Dec-12			31-Mar-12			Q4 2012
Assets:
Cash and due from banks			$	242,290		$	439,363		$	472,806		$	(197,073	)
Money market investments				1,344,244			1,085,580			1,304,263			258,664
Trading account securities, at fair value				299,773			314,525			404,293			(14,752	)
Investment securities available-for-sale, at fair value				5,321,231			5,084,201			5,138,616			237,030
Investment securities held-to-maturity, at amortized cost				141,518			142,817			124,372			(1,299	)
Other investment securities, at lower of cost or realizable value				198,577			185,443			195,708			13,134
Loans held-for-sale, at lower of cost or fair value				201,495			354,468			361,596			(152,973	)
Loans held-in-portfolio:
		Loans not covered under loss sharing agreements with the FDIC		21,729,882			21,080,005			20,577,995			649,877
		Loans covered under loss sharing agreements with the FDIC		3,362,446			3,755,972			4,221,788			(393,526	)
		Less: Unearned income		96,137			96,813			99,321			(676	)
		Allowance for loan losses		683,368			730,607			803,264			(47,239	)
		Total loans held-in-portfolio, net		24,312,823			24,008,557			23,897,198			304,266
FDIC loss share asset				1,380,592			1,399,098			1,880,357			(18,506	)
Premises and equipment, net				532,785			535,793			533,545			(3,008	)
Other real estate not covered under loss sharing agreements with the FDIC				154,699			266,844			193,768			(112,145	)
Other real estate covered under loss sharing agreements with the FDIC				172,378			139,058			110,559			33,320
Accrued income receivable				135,542			125,728			126,568			9,814
Mortgage servicing assets, at fair value				153,949			154,430			156,331			(481	)
Other assets				1,651,234			1,569,578			1,439,532			81,656
Goodwill				647,757			647,757			647,911			-
Other intangible assets				51,827			54,295			61,798			(2,468	)
Total assets			$	36,942,714		$	36,507,535		$	37,049,221		$	435,179
Liabilities and Stockholders’ Equity:
Liabilities:
	Deposits:
		Non-interest bearing	$	5,613,701		$	5,794,629		$	5,366,420		$	(180,928	)
		Interest bearing		21,399,516			21,205,984			21,831,316			193,532
		Total deposits		27,013,217			27,000,613			27,197,736			12,604
Assets sold under agreements to repurchase				2,265,675			2,016,752			2,113,557			248,923
Other short-term borrowings				951,200			636,200			751,200			315,000
Notes payable				1,752,469			1,777,721			1,843,754			(25,252	)
Other liabilities				989,010			966,249			1,175,903			22,761
Total liabilities				32,971,571			32,397,535			33,082,150			574,036
Stockholders’ equity:
Preferred stock				50,160			50,160			50,160			-
Common stock				1,033			1,032			1,028			1
Surplus				4,151,838			4,150,294			4,125,958			1,544
(Accumulated deficit) retained earnings				(109,411	)		11,826			(165,249	)		(121,237	)
Treasury stock				(469	)		(444	)		(1,041	)		(25	)
Accumulated other comprehensive loss				(122,008	)		(102,868	)		(43,785	)		(19,140	)
		Total stockholders’ equity		3,971,143			4,110,000			3,967,071			(138,857	)
Total liabilities and stockholders’ equity			$	36,942,714		$	36,507,535		$	37,049,221		$	435,179

Popular, Inc.
Financial Supplement to First Quarter 2013 Earnings Release
Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER
(Unaudited)
			Quarter ended							Quarter ended							Quarter ended							Variance								Variance
			31-Mar-13							31-Dec-12							31-Mar-12							Q1 2013 vs. Q4 2012								Q1 2013 vs. Q1 2012
($ 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		$	6,971		$	43.8	2.52	%	$	6,693		$	44.1	2.63	%	$	6,761		$	52.0	3.07	%	$	278		($0.3	)	(0.11	)	%	$	210			($8.2	)	(0.55	)	%
	Loans not covered under loss sharing agreements with the FDIC:
		Commercial		10,078			119.3	4.80			10,200			123.5	4.82			10,444			126.5	4.87			(122	)	(4.2	)	(0.02	)			(366	)		(7.2	)	(0.07	)
		Construction		369			3.6	3.92			386			3.3	3.44			523			6.5	5.03			(17	)	0.3		0.48				(154	)		(2.9	)	(1.11	)
		Mortgage		6,410			83.2	5.19			6,169			81.0	5.25			5,464			75.5	5.53			241		2.2		(0.06	)			946			7.7		(0.34	)
		Consumer		3,853			95.8	10.08			3,835			97.5	10.11			3,661			92.6	10.17			18		(1.7	)	(0.03	)			192			3.2		(0.09	)
		Lease financing		543			11.3	8.36			540			11.4	8.48			555			12.0	8.67			3		(0.1	)	(0.12	)			(12	)		(0.7	)	(0.31	)
		Total loans not covered under loss sharing agreements with the FDIC		21,253			313.2	5.95			21,130			316.7	5.97			20,647			313.1	6.09			123		(3.5	)	(0.02	)			606			0.1		(0.14	)
	Loans covered under loss sharing agreements with the FDIC			3,514			72.2	8.31			3,832			77.0	8.01			4,292			74.8	7.00			(318	)	(4.8	)	0.30				(778	)		(2.6	)	1.31
	Total loans			24,767			385.4	6.29			24,962			393.7	6.28			24,939			387.9	6.25			(195	)	(8.3	)	0.01				(172	)		(2.5	)	0.04
	Total interest earning assets			31,738		$	429.2	5.46	%		31,655		$	437.8	5.51	%		31,700		$	439.9	5.57	%		83		($8.6	)	(0.05	)	%		38			($10.7	)	(0.11	)	%
		Allowance for loan losses		(659	)						(754	)						(802	)						95								143
		Other non-interest earning assets		5,283							5,400							5,658							(117	)							(375	)
	Total average assets		$	36,362						$	36,301						$	36,556						$	61								($194	)
Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$	5,696		$	5.8	0.41	%	$	5,707		$	6.1	0.43	%	$	5,246		$	6.1	0.47	%		($11	)	($0.3	)	(0.02	)	%	$	450			($0.3	)	(0.06	)	%
		Savings		6,718			4.3	0.26			6,654			4.8	0.29			6,507			6.3	0.39			64		(0.5	)	(0.03	)			211			(2.0	)	(0.13	)
		Time deposits		8,832			28.2	1.30			8,650			30.0	1.38			10,291			39.3	1.54			182		(1.8	)	(0.08	)			(1,459	)		(11.1	)	(0.24	)
		Total interest bearing deposits		21,246			38.3	0.73			21,011			40.9	0.77			22,044			51.7	0.94			235		(2.6	)	(0.04	)			(798	)		(13.4	)	(0.21	)
	Borrowings			4,492			45.6	4.07			4,704			46.5	3.94			4,365			50.6	4.65			(212	)	(0.9	)	0.13				127			(5.0	)	(0.58	)
		Total interest bearing liabilities		25,738			83.9	1.31			25,715			87.4	1.35			26,409			102.3	1.55			23		(3.5	)	(0.04	)			(671	)		(18.4	)	(0.24	)
		Net interest spread						4.15	%						4.16	%						4.02	%						(0.01	)	%							0.13		%
	Non-interest bearing deposits			5,591							5,583							5,213							8								378
	Other liabilities			1,074							1,067							1,181							7								(107	)
	Stockholders' equity			3,959							3,936							3,753							23								206
		Total average liabilities and stockholders' equity	$	36,362						$	36,301						$	36,556						$	61								($194	)
Net interest income / margin non-taxable equivalent basis						$	345.3	4.39	%				$	350.4	4.41	%				$	337.6	4.27	%				($5.1	)	(0.02	)	%				$	7.7		0.12		%

Popular, Inc.

Financial Supplement to First Quarter 2013 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 2013 Earnings Release
Table F - Other Service Fees
(Unaudited)
								Variance
		Quarters ended						Q1 2013 vs.			Q1 2013 vs.
(In thousands)		31-Mar-13		31-Dec-12		31-Mar-12		Q4 2012			Q1 2012
Other service fees:
	Debit card fees	$	8,470	$	9,439	$	9,165	$	(969	)	$	(695	)
	Insurance fees		12,073		17,050		12,390		(4,977	)		(317	)
	Credit card fees		14,691		16,148		12,559		(1,457	)		2,132
	Sale and administration of investment products		8,717		9,721		8,889		(1,004	)		(172	)
	Mortgage servicing fees, net of fair value adjustments		5,631		1,647		12,931		3,984			(7,300	)
	Trust fees		4,458		4,226		4,081		232			377
	Processing fees		-		1,511		1,774		(1,511	)		(1,774	)
	Other fees		4,763		3,953		4,250		810			513
Total other service fees		$	58,803	$	63,695	$	66,039	$	(4,892	)	$	(7,236	)

Popular, Inc.
Financial Supplement to First Quarter 2013 Earnings Release
Table G - Loans and Deposits
(Unaudited)
Loans - Ending Balances
							Variance
(In thousands)	31-Mar-13		31-Dec-12		31-Mar-12		Q1 2013 vs. Q4 2012			Q1 2013 vs. Q1 2012
Loans not covered under FDIC loss sharing agreements:
Commercial	$	9,750,428	$	9,858,202	$	9,868,242	$	(107,774	)	$	(117,814	)
Construction		271,498		252,857		236,579		18,641			34,919
Legacy [1]		352,512		384,217		603,874		(31,705	)		(251,362	)
Lease financing		543,572		540,523		543,314		3,049			258
Mortgage		6,873,910		6,078,507		5,591,745		795,403			1,282,165
Consumer		3,841,825		3,868,886		3,634,920		(27,061	)		206,905
Total non-covered loans held-in-portfolio	$	21,633,745	$	20,983,192	$	20,478,674	$	650,553		$	1,155,071
Loans covered under FDIC loss sharing agreements		3,362,446		3,755,972		4,221,788		(393,526	)		(859,342	)
Total loans held-in-portfolio	$	24,996,191	$	24,739,164	$	24,700,462	$	257,027		$	295,729
Loans held-for-sale:
Commercial	$	-	$	16,047	$	24,879	$	(16,047	)	$	(24,879	)
Construction		-		78,140		206,246		(78,140	)		(206,246	)
Legacy [1]		1,681		2,080		1,115		(399	)		566
Mortgage		199,814		258,201		129,356		(58,387	)		70,458
Total loans held-for-sale		201,495		354,468		361,596		(152,973	)		(160,101	)
Total loans	$	25,197,686	$	25,093,632	$	25,062,058	$	104,054		$	135,628
[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-Mar-13		31-Dec-12		31-Mar-12		Q1 2013 vs. Q4 2012			Q1 2013 vs. Q1 2012
Demand deposits [1]	$	6,265,796	$	6,442,739	$	6,013,009	$	(176,943	)	$	252,787
Savings, NOW and money market deposits (non-brokered)		11,357,130		11,190,335		11,048,140		166,795			308,990
Savings, NOW and money market deposits (brokered)		498,833		456,830		212,996		42,003			285,837
Time deposits (non-brokered)		6,427,320		6,541,660		7,186,826		(114,340	)		(759,506	)
Time deposits (brokered CDs)		2,464,138		2,369,049		2,736,765		95,089			(272,627	)
Total deposits	$	27,013,217	$	27,000,613	$	27,197,736	$	12,604		$	(184,519	)
[1] Includes interest and non-interest demand bearing deposits.

Popular, Inc.
Financial Supplement to First Quarter 2013 Earnings Release
Table H - Non-Performing Assets
(Unaudited)
																Variance
(Dollars in thousands)	31-Mar-13			As a % of loans HIP by category		31-Dec-12			As a % of loans HIP by category		31-Mar-12			As a % of loans HIP by category		Q1 2013 vs. Q4 2012			Q1 2013 vs. Q1 2012
Non-accrual loans:
Commercial	$	320,787		3.3	%	$	665,289		6.7	%	$	818,678		8.3	%	$	(344,502	)	$	(497,891	)
Construction		50,920		18.8			43,350		17.1			69,470		29.4			7,570			(18,550	)
Legacy [1]		35,830		10.2			40,741		10.6			79,077		13.1			(4,911	)		(43,247	)
Lease financing		4,005		0.7			4,865		0.9			5,673		1.0			(860	)		(1,668	)
Mortgage		600,724		8.7			630,130		10.4			667,217		11.9			(29,406	)		(66,493	)
Consumer		38,342		1.0			40,758		1.1			41,688		1.1			(2,416	)		(3,346	)
Total non-performing loans held-in-
portfolio, excluding covered loans		1,050,608		4.9	%		1,425,133		6.8	%		1,681,803		8.2	%		(374,525	)		(631,195	)
Non-performing loans held-for-sale [2]		17,742					96,320					232,293					(78,578	)		(214,551	)
Other real estate owned (“OREO”), excluding covered OREO		154,699					266,844					193,768					(112,145	)		(39,069	)
Total non-performing assets, excluding covered assets
		1,223,049					1,788,297					2,107,864					(565,248	)		(884,815	)
Covered loans and OREO		196,717					213,469					203,254					(16,752	)		(6,537	)
Total non-performing assets	$	1,419,766				$	2,001,766				$	2,311,118				$	(582,000	)	$	(891,352	)
Accruing loans past due 90 days or more [3]	$	410,835				$	388,712				$	328,757				$	22,123		$	82,078
Ratios excluding covered loans:
Non-performing loans held-in-portfolio to loans held-in-portfolio
		4.86	%				6.79	%				8.21	%
Allowance for loan losses to loans held-in-portfolio
		2.70					2.96					3.25
Allowance for loan losses to non-performing loans, excluding held-for-sale		55.54					43.62					39.53
Ratios including covered loans:
Non-performing assets to total assets		3.84	%				5.48	%				6.24	%
Non-performing loans held-in-portfolio to loans held-in-portfolio
		4.30					6.06					7.18
Allowance for loan losses to loans held-in-portfolio
		2.73					2.95					3.25
Allowance for loan losses to non-performing loans, excluding held-for-sale		63.57					48.72					45.27
[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 March 31, 2013 consisted of $2 million in legacy loans and $16 million in mortgage loans (December 31, 2012- $78 million in construction loans, $16 million in commercial loans, $2 million in legacy loans and $53 thousand in mortgage loans; March 31, 2012 - $206 million in construction loans, $25 million in commercial loans, $1 million in legacy loans and $53 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 $99 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2013.

Popular, Inc.
Financial Supplement to First Quarter 2013 Earnings Release
Table I - Activity in Non-Performing Loans
(Unaudited)
Commercial loans held-in-portfolio:
		Quarter ended									Quarter ended
		31-Mar-13									31-Dec-12
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	522,733		$	142,556		$	665,289		$	612,781		$	159,436		$	772,217
Plus:
	New non-performing loans		47,735			15,111			62,846			40,585			16,601			57,186
	Advances on existing non-performing loans		-			-			-			-			163			163
	Loans transferred from held-for-sale		790			-			790			-			-			-
Less:
	Non-performing loans transferred to OREO		(9,198	)		(1,558	)		(10,756	)		(14,694	)		(6,580	)		(21,274	)
	Non-performing loans charged-off		(28,850	)		(9,881	)		(38,731	)		(45,682	)		(11,745	)		(57,427	)
	Loans returned to accrual status / loan collections		(17,134	)		(12,249	)		(29,383	)		(66,957	)		(13,645	)		(80,602	)
	Loans transferred to held-for-sale		-			-			-			-			(1,674	)		(1,674	)
	Other		-			-			-			(3,300	)		-			(3,300	)
	Non-performing loans sold[1]		(329,268	)		-			(329,268	)		-			-			-
Ending balance NPLs		$	186,808		$	133,979		$	320,787		$	522,733		$	142,556		$	665,289
[1] Includes write-downs of $161,297 of loans sold.
Construction loans held-in-portfolio:
		Quarter ended									Quarter ended
		31-Mar-13									31-Dec-12
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	37,390		$	5,960		$	43,350		$	37,793		$	12,140		$	49,933
Plus:
	New non-performing loans		-			-			-			2,255			-			2,255
	Loans transferred from held-for-sale		14,152			-			14,152			-			-			-
	Other		-			-			-			3,300			-			3,300
Less:
	Non-performing loans transferred to OREO		-			-			-			-			(3,605	)		(3,605	)
	Non-performing loans charged-off		(1,082	)		-			(1,082	)		(839	)		(264	)		(1,103	)
	Loans returned to accrual status / loan collections		(1,940	)		(76	)		(2,016	)		(5,119	)		(2,311	)		(7,430	)
	Non-performing loans sold[1]		(3,484	)		-			(3,484	)		-			-			-
Ending balance NPLs		$	45,036		$	5,884		$	50,920		$	37,390		$	5,960		$	43,350
[1] Includes write-downs of $1,846 of loans sold.

Mortgage loans held-in-portfolio:
		Quarter ended									Quarter ended
		31-Mar-13									31-Dec-12
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	596,106		$	34,024		$	630,130		$	598,523		$	33,529		$	632,052
Plus:
	New non-performing loans		109,816			4,507			114,323			166,768			8,104			174,872
Less:
	Non-performing loans transferred to OREO		(18,110	)		(747	)		(18,857	)		(21,693	)		(989	)		(22,682	)
	Non-performing loans charged-off		(14,608	)		(3,093	)		(17,701	)		(15,523	)		(2,936	)		(18,459	)
	Loans returned to accrual status / loan collections		(100,473	)		(6,698	)		(107,171	)		(131,969	)		(3,684	)		(135,653	)
Ending balance NPLs		$	572,731		$	27,993		$	600,724		$	596,106		$	34,024		$	630,130
Legacy loans held-in-portfolio:
		Quarter ended									Quarter ended
		31-Mar-13									31-Dec-12
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	-		$	40,741		$	40,741		$	-		$	48,735		$	48,735
Plus:
	New non-performing loans		-			6,388			6,388			-			9,337			9,337
	Advances on existing non-performing loans		-			4			4			-			-			-
	Loans transferred to held-for-sale		-			400			400			-			-			-
Less:
	Non-performing loans transferred to OREO		-			-			-			-			(50	)		(50	)
	Non-performing loans charged-off		-			(5,315	)		(5,315	)		-			(7,313	)		(7,313	)
	Loans returned to accrual status / loan collections		-			(6,388	)		(6,388	)		-			(7,099	)		(7,099	)
	Loans transferred to held-for-sale		-			-			-			-			(2,869	)		(2,869	)
Ending balance NPLs		$	-		$	35,830		$	35,830		$	-		$	40,741		$	40,741
Total non-performing loans held-in-portfolio (excluding consumer loans):
		Quarter ended									Quarter ended
		31-Mar-13									31-Dec-12
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	1,156,229		$	223,281		$	1,379,510		$	1,249,097		$	253,840		$	1,502,937
Plus:
	New non-performing loans		157,551			26,006			183,557			209,608			34,042			243,650
	Advances on existing non-performing loans		-			4			4			-			163			163
	Loans transferred from held-for-sale		14,942			400			15,342			-			-			-
	Other		-			-			-			3,300			-			3,300
Less:
	Non-performing loans transferred to OREO		(27,308	)		(2,305	)		(29,613	)		(36,387	)		(11,224	)		(47,611	)
	Non-performing loans charged-off		(44,540	)		(18,289	)		(62,829	)		(62,044	)		(22,258	)		(84,302	)
	Loans returned to accrual status / loan collections		(119,547	)		(25,411	)		(144,958	)		(204,045	)		(26,739	)		(230,784	)
	Loans transferred to held-for-sale		-			-			-			-			(4,543	)		(4,543	)
	Other		-			-			-			(3,300	)		-			(3,300	)
	Non-performing loans sold[1]		(332,752	)		-			(332,752	)		-			-			-
Ending balance NPLs		$	804,575		$	203,686		$	1,008,261		$	1,156,229		$	223,281		$	1,379,510
[1] Includes write-downs of $163,143 of loans sold.

Popular, Inc.
Financial Supplement to First Quarter 2013 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-Mar-13								31-Dec-12									31-Mar-12
	Non-covered loans			Covered loans		Total			Non-covered loans			Covered loans			Total			Non-covered loans			Covered loans		Total
Balance at beginning of period	$	621,701		$	108,906	$	730,607		$	636,299		$	124,873		$	761,172		$	690,363		$	124,945	$	815,308
Provision for loan losses		206,300			17,556		223,856			86,256			(3,445	)		82,811			82,514			18,209		100,723
		828,001			126,462		954,463			722,555			121,428			843,983			772,877			143,154		916,031
Net loans charged-off (recovered):
BPPR
Commercial		24,311			10,535		34,846			41,540			492			42,032			37,518			4,102		41,620
Construction		355			9,445		9,800			(2,371	)		7,561			5,190			(371	)		264		(107	)
Lease financing		984			-		984			516			-			516			154			-		154
Mortgage		16,773			2,051		18,824			17,310			885			18,195			12,226			203		12,429
Consumer		20,001			4,564		24,565			21,055			3,584			24,639			24,131			89		24,220
Total BPPR		62,424			26,595		89,019			78,050			12,522			90,572			73,658			4,658		78,316
BPNA
Commercial		8,104			-		8,104			7,044			-			7,044			16,865			-		16,865
Construction		-			-		-			239			-			239			166			-		166
Legacy [1]		1,886			-		1,886			3,369			-			3,369			3,558			-		3,558
Mortgage		2,790			-		2,790			3,023			-			3,023			5,228			-		5,228
Consumer		6,153			-		6,153			9,129			-			9,129			8,634			-		8,634
Total BPNA		18,933			-		18,933			22,804			-			22,804			34,451			-		34,451
Total loans charged-off (recovered) - Popular, Inc.		81,357			26,595		107,952			100,854			12,522			113,376			108,109			4,658		112,767
Net write-downs related to loans sold		(163,143	)		-		(163,143	)		-			-			-			-			-		-
Balance at end of period	$	583,501		$	99,867	$	683,368		$	621,701		$	108,906		$	730,607		$	664,768		$	138,496	$	803,264
POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio		1.55	%				1.76	%		1.94	%					1.84	%		2.13	%				1.83	%
Provision for loan losses to net charge-offs [2]	0.71x					0.70x			0.86x						0.73x			0.76x					0.89x
BPPR
Annualized net charge-offs to average loans held-in-portfolio		1.64	%				1.90	%		2.07	%					1.91	%		2.01	%				1.65	%
Provision for loan losses to net charge-offs [2]	0.89x					0.82x			1.00x						0.82x			0.92x					1.10x
BPNA
Annualized net charge-offs to average loans held-in-portfolio							1.33	%								1.60	%							2.43	%
Provision for loan losses to net charge-offs						0.11x									0.36x								0.43x
[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] Excluding provision for loan losses and net write-down related to the asset sale.

Popular, Inc.
Financial Supplement to First Quarter 2013 Earnings Release
Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED
(Unaudited)
31-Mar-13
(Dollars in thousands)		Commercial			Construction			Legacy [3]			Mortgage			Lease financing			Consumer			Total [2]
Specific ALLL		$	21,776		$	135		$	-		$	75,697		$	1,662		$	24,472		$	123,742
Impaired loans	[1]	$	301,939		$	49,398		$	15,031		$	631,663		$	4,358		$	112,394		$	1,114,783
Specific ALLL to impaired loans	[1]		7.21	%		0.27	%		-	%		11.98	%		38.14	%		21.77	%		11.10	%
General ALLL		$	207,094		$	7,304		$	30,777		$	86,248		$	2,233		$	126,103		$	459,759
Loans held-in-portfolio, excluding impaired loans	[1]	$	9,448,489		$	222,100		$	337,481		$	6,242,247		$	539,214		$	3,729,431		$	20,518,962
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]		2.19	%		3.29	%		9.12	%		1.38	%		0.41	%		3.38	%		2.24	%
Total ALLL		$	228,870		$	7,439		$	30,777		$	161,945		$	3,895		$	150,575		$	583,501
Total non-covered loans held-in-portfolio	[1]	$	9,750,428		$	271,498		$	352,512		$	6,873,910		$	543,572		$	3,841,825		$	21,633,745
ALLL to loans held-in-portfolio	[1]		2.35	%		2.74	%		8.73	%		2.36	%		0.72	%		3.92	%		2.70	%
[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, 2013, the general allowance on the covered loans amounted to $98 million, while the specific reserve amounted to $1 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-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.
Variance
(Dollars in thousands)		Commercial			Construction			Legacy			Mortgage			Lease financing			Consumer			Total
Specific ALLL		$	4,428		$	15		$	-		$	1,030		$	596		$	6,586		$	12,655
Impaired loans		$	(225,725)		$	7,589		$	(3,713)		$	20,433		$	(523)		$	(20,983)		$	(222,922)
General ALLL		$	(73,240)		$	(5)		$	(2,325)		$	11,540		$	405		$	12,770		$	(50,855)
Loans held-in-portfolio, excluding impaired loans		$	117,951		$	11,052		$	(27,992)		$	774,970		$	3,572		$	(6,078)		$	873,475
Total ALLL		$	(68,812)		$	10		$	(2,325)		$	12,570		$	1,001		$	19,356		$	(38,200)
Total non-covered loans held-in-portfolio		$	(107,774)		$	18,641		$	(31,705)		$	795,403		$	3,049		$	(27,061)		$	650,553

Popular, Inc.
Financial Supplement to First Quarter 2013 Earnings Release
Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS
(Unaudited)
31-Mar-13
Puerto Rico
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$	21,770		$	135		$	58,206		$	1,662		$	24,379		$	106,152
	General ALLL non-covered loans		139,113			6,268			72,260			2,233			97,995			317,869
ALLL - non-covered loans			160,883			6,403			130,466			3,895			122,374			424,021
	Specific ALLL covered loans		1,417			-			-			-			-			1,417
	General ALLL covered loans		66,264			6,293			20,673			-			5,220			98,450
ALLL - covered loans			67,681			6,293			20,673			-			5,220			99,867
Total ALLL		$	228,564		$	12,696		$	151,139		$	3,895		$	127,594		$	523,888
Loans held-in-portfolio:
	Impaired non-covered loans	$	231,986		$	43,514		$	578,471		$	4,358		$	109,718		$	968,047
	Non-covered loans held-in-portfolio, excluding impaired loans		5,968,604			197,773			5,158,122			539,214			3,113,816			14,977,529
Non-covered loans held-in-portfolio			6,200,590			241,287			5,736,593			543,572			3,223,534			15,945,576
	Impaired covered loans		23,412			-			-			-			-			23,412
	Covered loans held-in-portfolio, excluding impaired loans		1,921,397			306,550			1,045,564			-			65,523			3,339,034
Covered loans held-in-portfolio			1,944,809			306,550			1,045,564			-			65,523			3,362,446
Total loans held-in-portfolio		$	8,145,399		$	547,837		$	6,782,157		$	543,572		$	3,289,057		$	19,308,022
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
Variance
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$	4,447		$	15		$	(366	)	$	596		$	6,600		$	11,292
	General ALLL non-covered loans		(61,179	)		526			11,805			405			15,875			(32,568	)
ALLL - non-covered loans			(56,732	)		541			11,439			1,001			22,475			(21,276	)
	Specific ALLL covered loans		(7,088	)		-			-			-			-			(7,088	)
	General ALLL covered loans		2,709			(3,653	)		(241	)		-			(766	)		(1,951	)
ALLL - covered loans			(4,379	)		(3,653	)		(241	)		-			(766	)		(9,039	)
Total ALLL		$	(61,111	)	$	(3,112	)	$	11,198		$	1,001		$	21,709		$	(30,315	)
Loans held-in-portfolio:
	Impaired non-covered loans	$	(215,793	)	$	7,665		$	21,334		$	(523	)	$	(20,945	)	$	(208,262	)
	Non-covered loans held-in-portfolio, excluding impaired loans		120,099			21,355			766,335			3,572			10,150			921,511
Non-covered loans held-in-portfolio			(95,694	)		29,020			787,669			3,049			(10,795	)		713,249
	Impaired covered loans		(85,829	)		-			-			-			-			(85,829	)
	Covered loans held-in-portfolio, excluding impaired loans		(214,009	)		(54,846	)		(31,166	)		-			(7,676	)		(307,697	)
Covered loans held-in-portfolio			(299,838	)		(54,846	)		(31,166	)		-			(7,676	)		(393,526	)
Total loans held-in-portfolio		$	(395,532	)	$	(25,826	)	$	756,503		$	3,049		$	(18,471	)	$	319,723

Popular, Inc.
Financial Supplement to First Quarter 2013 Earnings Release
Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS
(Unaudited)
31-Mar-13
U.S. Mainland
(In thousands)		Commercial			Construction			Legacy			Mortgage			Consumer			Total
Allowance for credit losses:
	Specific ALLL	$	6		$	-		$	-		$	17,491		$	93		$	17,590
	General ALLL		67,981			1,036			30,777			13,988			28,108			141,890
Total ALLL		$	67,987		$	1,036		$	30,777		$	31,479		$	28,201		$	159,480
Loans held-in-portfolio:
	Impaired loans	$	69,953		$	5,884		$	15,031		$	53,192		$	2,676		$	146,736
	Loans held-in-portfolio, excluding impaired loans		3,479,885			24,327			337,481			1,084,125			615,615			5,541,433
Total loans held-in-portfolio		$	3,549,838		$	30,211		$	352,512		$	1,137,317		$	618,291		$	5,688,169
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
Variance
(In thousands)		Commercial			Construction			Legacy			Mortgage			Consumer			Total
Allowance for credit losses:
	Specific ALLL	$	(19	)	$	-		$	-		$	1,396		$	(14	)	$	1,363
	General ALLL		(12,061	)		(531	)		(2,325	)		(265	)		(3,105	)		(18,287	)
Total ALLL		$	(12,080	)	$	(531	)	$	(2,325	)	$	1,131		$	(3,119	)	$	(16,924	)
Loans held-in-portfolio:
	Impaired loans	$	(9,932	)	$	(76	)	$	(3,713	)	$	(901	)	$	(38	)	$	(14,660	)
	Loans held-in-portfolio, excluding impaired loans		(2,148	)		(10,303	)		(27,992	)		8,635			(16,228	)		(48,036	)
Total loans held-in-portfolio		$	(12,080	)	$	(10,379	)	$	(31,705	)	$	7,734		$	(16,266	)	$	(62,696	)

Popular, Inc.
Financial Supplement to First Quarter 2013 Earnings Release
Table N - Reconciliation to GAAP Financial Measures
(Unaudited)
(In thousands, except share or per share information)	31-Mar-13		31-Dec-12		31-Mar-12
Total stockholders’ equity	$ 3,971,143		$ 4,110,000		$ 3,967,071
Less: Preferred stock	(50,160)		(50,160)		(50,160)
Less: Goodwill	(647,757)		(647,757)		(647,911)
Less: Other intangibles	(51,827)		(54,295)		(61,798)
Total tangible common equity	$ 3,221,399		$ 3,357,788		$ 3,207,202
Total assets	$ 36,942,714		$ 36,507,535		$ 37,049,221
Less: Goodwill	(647,757)		(647,757)		(647,911)
Less: Other intangibles	(51,827)		(54,295)		(61,798)
Total tangible assets	$ 36,243,130		$ 35,805,483		$ 36,339,512
Tangible common equity to tangible assets	8.89	%	9.38	%	8.83	%
Common shares outstanding at end of period [1]	103,228,615		103,169,806		102,711,707
Tangible book value per common share [1]	$ 31.21		$ 32.55		$ 31.23
[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-Mar-13		31-Dec-12		31-Mar-12
Common stockholders’ equity	$ 3,920,983		$ 4,059,840		$ 3,916,911
Less: Unrealized gains on available-for-sale securities, net of tax[1]	(130,562)		(154,568)		(196,878)
Less: Disallowed deferred tax assets[2]	(433,543)		(385,060)		(257,440)
Less: Intangible assets:
Goodwill	(647,757)		(647,757)		(647,911)
Other disallowed intangibles	(10,626)		(14,444)		(26,149)
Less: Aggregate adjusted carrying value of non-financial equity investments	(1,331)		(1,160)		(1,175)
Add: Pension liability adjustment, net of tax and accumulated net gains
(losses) on cash flow hedges[3]	222,016		226,159		211,747
Total Tier 1 common equity	$ 2,919,180		$ 3,083,010		$ 2,999,105
Tier 1 common equity to risk-weighted assets	12.36	%	13.18	%	12.53	%
[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 $135 million of the Corporation’s $608 million of net deferred tax assets at March 31, 2013 (December 31, 2012 - $118 million and $541 million, respectively; March 31, 2012 - $138 million and $424 million, respectively), were included without limitation in regulatory capital pursuant to the risk-based capital guidelines, while approximately $434 million of such assets at March 31, 2013 (December 31, 2012 - $385 million; March 31, 2012 - $257 million) exceeded the limitation imposed by these guidelines and, as “disallowed deferred tax assets”, were deducted in arriving at Tier 1 capital. The remaining $39 million of the Corporation’s other net deferred tax assets at March 31, 2013 (December 31, 2012 - $38 million; March 31, 2012 - $29 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 First Quarter 2013 Earnings Release
Table O - Financial Information - Westernbank Covered Loans
(Unaudited)
Revenues
		Quarters ended
(In thousands)		31-Mar-13	31-Dec-12	Variance
Interest income on covered loans		$ 72,184	$ 76,998	$ (4,814)
FDIC loss share expense:
Amortization of indemnification asset		(40,204)	(33,704)	(6,500)
80% mirror accounting on credit impairment losses [1]		14,045	(2,756)	16,801
80% mirror accounting on discount accretion on unfunded commitments		(193)	(225)	32
80% mirror accounting on reimbursable expenses		7,783	10,152	(2,369)
Change in true-up payment obligation		(6,775)	(8,329)	1,554
Other		(922)	(1,962)	1,040
	Total FDIC loss share expense	(26,266)	(36,824)	10,558
Other non-interest income		242	281	(39)
Total revenues		46,160	40,455	5,705
Provision for loan losses		17,556	(3,445)	21,001
Total revenues less provision for loan losses		$ 28,604	$ 43,900	$ (15,296)
[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-Mar-13	31-Dec-12	Variance
Covered loans		$ 3,513	$ 3,832	$ (319)
FDIC loss share asset		1,394	1,540	(146)
Activity in the carrying amount and accretable yield of covered loans accounted for under ASC 310-30
		Quarters ended
		31-Mar-13		31-Dec-12
(In thousands)		Accretable yield	Carrying amount of loans	Accretable yield	Carrying amount of loans
Beginning balance		$ 1,451,669	$ 3,491,759	$ 1,470,882	$ 3,627,209
Accretion		(64,990)	64,990	(71,103)	71,103
Changes in expected cash flows		(14,544)	-	51,890	-
Collections / charge-offs		-	(399,086)	-	(206,553)
Ending balance		1,372,135	3,157,663	1,451,669	3,491,759
	Allowance for loan losses - ASC 310-30 covered loans	-	(91,573)	-	(95,407)
Ending balance, net of allowance for loan losses		$ 1,372,135	$ 3,066,090	$ 1,451,669	$ 3,396,352
Activity in the carrying amount of the FDIC indemnity asset
			Quarters ended
(In thousands)			31-Mar-13		31-Dec-12
Balance at beginning of period			$ 1,399,098		$ 1,559,057
Amortization			(40,204)		(33,704)
Credit impairment losses to be covered under loss sharing agreements			14,045		(2,756)
Decrease due to reciprocal accounting on the discount accretion on unfunded commitments			(193)		(225)
Reimbursable expenses to be covered under loss sharing agreements			7,783		10,152
Net payments to (from) FDIC under loss sharing agreements			107		(134,277)
Other adjustments attributable to FDIC loss sharing agreements			(44)		851
Balance at end of period			$ 1,380,592		$ 1,399,098
Activity in the remaining FDIC loss share asset amortization
			Quarters ended
(In thousands)			31-Mar-13		31-Dec-12
Balance at beginning of period			$ 141,800		$ 96,424
Amortization			(40,204)		(33,704)
Impact of lower projected losses			27,086		79,080
Balance at end of period			$ 128,682		$ 141,800

CONTACT:
Popular, Inc.
Investor Relations:
Carlos Vázquez, 787-756-3982
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