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

Exhibit 99.1

Popular, Inc. Announces Second Quarter Financial Results

• Reports net loss of $511.3 million and adjusted net income of $86.2 million, which excludes a $414.1 million expense due to the repayment of TARP and a $186.5 million goodwill write-down related to the sale of three U.S. regions
• The continuing operations reflected a net loss of $329.6 million and adjusted net income of $74.5 million
• The discontinued operations reflected a net loss of $181.7 million for the quarter ended June 30, 2014 and adjusted net income of $11.6 million
• Adjusted net interest margin of 4.68% in Q2 2014 vs. 4.70% in Q1 2014; actual net interest margin of (0.77)% due to the impact of TARP repayment
• Credit Quality (excluding covered loans):

• Non-performing loan inflows, excluding consumer loans, were down by $54.2 million from Q1 2014; Q1 2014 included the previously disclosed inflow of a single credit relationship for $51.6 million;
• Non-performing loans held-in-portfolio (NPLs) flat quarter over quarter, increasing slightly by $4.4 million; NPLs to loans ratio increased to 3.3% from 2.9% in Q1 2014, primarily reflecting the reduction in loan balances from the reclassification to the discontinued operations;
• Net charge-offs (NCOs) increased slightly by $3.0 million quarter over quarter, as Q1 2014 results included significant recoveries; NCOs were 0.94% of average loans held-in-portfolio vs. 0.80% in Q1 2014;
• Allowance for loan losses of $526.2 million vs. $542.6 million in Q1 2014; Allowance for loan losses to loans held-in-portfolio at 2.68% vs. 2.51% in Q1 2014.

• Entered into definitive agreements to sell regional operations in California, Illinois and Central Florida to three different buyers
• Repaid TARP funds on July 2, 2014
• Common Equity Tier 1 ratio of 13.5% and Tangible Book Value per Share of $35.84 at June 30, 2014; capital exceeds well-capitalized threshold by $2.0 billion. Pro-forma, post-TARP Common Equity Tier 1 Capital ratio of 13.8% as of June 30, 2014

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--July 24, 2014--Popular, Inc. (the “Corporation” or “Popular”) (NASDAQ:BPOP) reported a net loss of $511.3 million and adjusted net income of $86.2 million for the quarter ended June 30, 2014, compared to net income of $86.4 million for the quarter ended March 31, 2014.

Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said: "Popular achieved two key milestones this quarter in our TARP repayment and the restructuring of the US mainland operations, further strengthening our franchise. The company continues to report strong capital and stable credit results, in spite of the economic headwinds facing Puerto Rico. We maintain our focus on strategic initiatives to create additional shareholder value."

Earnings Highlights
(Unaudited)
	Quarters ended			Six months ended
(Dollars in thousands, except per share information)	30-Jun-14	31-Mar-14	30-Jun-13	30-Jun-14	30-Jun-13
Net interest (expense) income	$ (59,381)	$ 351,171	$ 334,411	$ 291,790	$ 659,055
Provision for loan losses – non-covered loans	50,074	54,122	228,975	104,196	438,068
Provision for loan losses – covered loans [1]	11,604	25,714	25,500	37,318	43,056
Net interest (expense) income after provision for loan losses	(121,059)	271,335	79,936	150,276	177,931
FDIC loss share expense	(55,261)	(24,206)	(3,755)	(79,467)	(30,021)
Other non-interest income	118,050	120,238	292,473	238,288	349,049
Operating expenses	275,439	277,599	293,864	553,038	609,089
(Loss) income from continuing operations before income tax	(333,709)	89,768	74,790	(243,941)	(112,130)
Income tax (benefit) expense	(4,124)	23,264	(237,380)	19,140	(294,257)
(Loss) income from continuing operations	$ (329,585)	$ 66,504	$ 312,170	$ (263,081)	$ 182,127
(Loss) income from discontinued operations, net of tax	$ (181,729)	$ 19,905	$ 15,298	$ (161,824)	$ 25,034
Net (loss) income	$ (511,314)	$ 86,409	$ 327,468	$ (424,905)	$ 207,161
Net (loss) income applicable to common stock	$ (512,245)	$ 85,478	$ 326,537	$ (426,767)	$ 205,300
Net (loss) income per common share from continuing operations - Basic	$ (3.21)	$ 0.64	$ 3.03	$ (2.58)	$ 1.76
Net (loss) income per common share from continuing operations - Diluted	$ (3.21)	$ 0.64	$ 3.02	$ (2.58)	$ 1.75
Net (loss) income per common share from discontinued operations - Basic	$ (1.77)	$ 0.19	$ 0.15	$ (1.57)	$ 0.24
Net (loss) income per common share from discontinued operations - Diluted	$ (1.77)	$ 0.19	$ 0.15	$ (1.57)	$ 0.24
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.

Significant events

• On July 2, 2014, the Corporation completed the repayment of TARP funds to the U.S. Treasury through the repurchase of $935 million of trust capital securities issued to the U.S. Treasury under the TARP Capital Purchase Program. The Corporation funded the repurchase through a combination of available cash and approximately $400 million from the proceeds of the issuance of its $450 million aggregate principal amount of 7% Senior Notes due on 2019 issued on July 1, 2014.

On July 23, 2014, the Corporation also completed the repurchase of the outstanding warrant initially issued to the U.S. Treasury under the TARP Capital Purchase Program in 2008. The warrant represented the right to purchase 2,093,284 shares of the Corporation’s common stock at an exercise price of $67 per share with an original term of 10 years. The Corporation and the U.S. Treasury agreed upon a repurchase price of $3.0 million for the warrant. With the completion of this transaction, the Corporation completed its exit from the TARP Capital Purchase Program.

In connection with the repayment of TARP on July 2, 2014, the Corporation accelerated the related amortization of the discount and deferred costs amounting to $414.1 million during the second quarter of 2014, which is reflected as part of interest expense in the consolidated statement of operations.

• On April 22, 2014, the Corporation entered into definitive agreements to sell the California, Illinois and Central Florida regional operations of Popular Community Bank (“PCB”) to three different buyers. The transactions are expected to be completed by the end of the fourth quarter of 2014. In connection with these transactions, the Corporation intends to centralize certain back office operations in Puerto Rico and New York. The decision to sell these businesses resulted in the discontinuance of each of these respective operations.

During the quarter ended June 30, 2014, the Corporation recorded a non-cash goodwill impairment charge of $186.5 million, related to the goodwill asset allocated to these regions. This non-cash charge had no impact on the Corporation’s tangible capital or regulatory capital ratios.

The Corporation expects to realize a net pre-tax gain estimated at approximately $19 million, upon the closing of these transactions.

In connection with the reorganization plan, the Corporation estimates that it will incur restructuring charges of approximately $54 million, comprised of $32 million in severance and retention payments and $22 million in operational set-up costs and lease cancelations, of which $4.6 million were incurred during the second quarter of 2014. The remaining costs consisting of severance payments and other employee benefits, lease and other contract termination expenses will be recognized during the third and fourth quarter of 2014 as well as early 2015, as incurred. Also, in early 2015, annual operating expenses are expected to be reduced by approximately $45 million, after the reorganization is complete. This decrease in expenses is expected to offset the reduction in revenues that will result from the sale of the regional operations.

As required by US GAAP, current and prior periods presented in the consolidated statement of operations as well as financial information covering income and expense amounts presented in this earnings release has been retrospectively adjusted for the impact of the discontinued operations for comparative purposes. The consolidated statement of financial condition and related financial information for prior periods included in this earnings release do not reflect the reclassification of PCB’s assets and liabilities to discontinued operations. Refer to Table P for a detail of the net loss, assets and liabilities from the discontinued operations. Also, refer to Table Q for details of the restructuring charges incurred during the quarter ended June 30, 2014.

The following table reflects the results of operations for the second quarter of 2014, with adjustments to exclude the impact of significant events.

	Quarter ended
(Unaudited)	30-Jun-14
(In thousands)	Actual Results (US GAAP)			TARP repayment discount amortization and Income Tax adjustments [2]			Goodwill impairment and Restructuring charges [3]			Adjusted Results (Non-GAAP)
Net interest (expense) income	$	(59,381	)	$	(414,068	)	$	-		$	354,687
Provision for loan losses – non-covered loans		50,074			-			-			50,074
Provision for loan losses – covered loans [1]		11,604			-			-			11,604
Net interest (expense) income after provision for loan losses		(121,059	)		(414,068	)		-			293,009
FDIC loss share expense		(55,261	)		-			-			(55,261	)
Other non-interest income		118,050			-			-			118,050
Operating expenses		275,439			-			4,574			270,865
(Loss) income from continuing operations before income tax		(333,709	)		(414,068	)		(4,574	)		84,933
Income tax (benefit) expense		(4,124	)		(14,524	)		-			10,400
(Loss) income from continuing operations	$	(329,585	)	$	(399,544	)	$	(4,574	)	$	74,533
(Loss) income from discontinued operations, net of tax	$	(181,729	)	$	-		$	(193,363	)	$	11,634
Net (loss) income	$	(511,314	)	$	(399,544	)	$	(197,937	)	$	86,167
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.
[2] Income tax adjustments include a benefit of approximately $23.4 million related to a Closing Agreement with the PR Department of Treasury, completed during the second quarter of 2014 and the negative impact of the deferred tax asset valuation allowance of approximately $8.9 million recorded at the Holding Company, due to the difference in the tax treatment of the interest expense related to the TARP funds and the newly issued $450 million senior notes. Refer to Income taxes section for further details.
[3] Adjustments included within Loss from discontinued operations include approximately $186.5 million of goodwill impairment charge and $6.9 million in transaction costs, which include severance payment expenses, legal and other professional services, incurred in connection with the agreements to sell the U.S. regional operations. Refer to Table P for a detail of the net loss from discontinued operations. Adjustments within operating expenses are related to restructuring charges incurred in connection with the reorganization of PCB. Refer to Table Q for a detail of restructuring charges.

	Quarters ended
(Unaudited)	Adjusted Results Non-GAAP			GAAP as reported
(In thousands)	30-Jun-14			31-Mar-14			Variance
Net interest income	$	354,687		$	351,171		$	3,516
Provision for loan losses – non-covered loans		50,074			54,122			(4,048	)
Provision for loan losses – covered loans [1]		11,604			25,714			(14,110	)
Net interest income after provision for loan losses		293,009			271,335			21,674
FDIC loss share expense		(55,261	)		(24,206	)		(31,055	)
Other non-interest income		118,050			120,238			(2,188	)
Operating expenses		270,865			277,599			(6,734	)
Income (loss) from continuing operations before income tax		84,933			89,768			(4,835	)
Income tax expense (benefit)		10,400			23,264			(12,864	)
Income from continuing operations	$	74,533		$	66,504		$	8,029
Income (loss) from discontinued operations, net of tax		11,634			19,905		$	(8,271	)
Net income (loss)	$	86,167		$	86,409		$	(242	)
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.

Net interest income

For the quarter ended June 30, 2014, the Corporation had a net interest expense of $59.4 million. Excluding the impact of the accelerated amortization of the discount and deferred costs of $414.1 million associated with the TARP trust preferred securities, net interest income was $354.7 million, an increase of $3.5 million from the previous quarter. Net interest margin was negative 0.77% for the second quarter of 2014. Excluding the above mentioned accelerated amortization, the net interest margin for the second quarter of 2014 was 4.68%, a decline of two basis points when compared with the first quarter of 2014. The main drivers of the adjusted increase in the net interest income were:

• An increase of $4.1 million, or four basis points, on income from consumer loans, mainly related to the purchase of approximately $90 million in consumer loans near the end of the first quarter of 2014, as well as higher volume of auto loans and higher yield from the credit cards portfolio
• An increase of $1.9 million, or sixty five basis points, on the covered loan portfolio mainly related to the resolution of a particular loan pool, which generated a one-time accretion income of approximately $4.9 million during the second quarter, partially offset by lower volume in the portfolio as part of its normal amortization
• A decrease of $0.7 million, or three basis points, on interest expense on deposits due mainly to certificates of deposits in individual retirement accounts which were re-priced at lower rates during the second quarter

These positive variances were partially offset by:

• A decrease of $2.4 million, or approximately five hundred basis points, on income from construction loans due to higher interest collected on non accruing loans in BPNA during the first quarter of 2014.

BPPR’s net interest margin was 5.50%, an increase of one basis point from the previous quarter. Net interest income amounted to $334.0 million for the quarter ended June 30, 2014, compared with $327.9 million for the previous quarter. The increase in the net interest income was mainly due to the above mentioned increase in interest income from covered loans and the acquisition of consumer loans at the end of the first quarter of 2014.

BPNA earned $48.7 million in net interest income for the quarter ended June 30, 2014, compared with $51.4 million in the previous quarter. The decrease in net interest margin of sixteen basis points to 3.25% was mainly related to lower yields from construction loans associated to the previously mentioned interest collections from loans previously in non accruing status during the first quarter.

Non-interest income

Non-interest income was $62.8 million for the second quarter of 2014, a decrease of $33.2 million when compared with the first quarter. This decline was driven primarily by the following items:

• Higher FDIC loss-share expense by $31.1 million due mainly to a higher amortization of the indemnification asset by $23.2 million. During the second quarter, the Corporation revised its analysis of expected cash flows which resulted in a net decrease of approximately $102.9 million in estimated credit losses, which was driven mainly by certain commercial loan pools. Though this will have a positive impact on the Corporation’s interest accretion in future periods, the carrying value of the indemnification asset was amortized to reflect lower levels of expected losses. This amortization is recognized over the shorter of the remaining life of the loan pools, which had an average life of approximately six years, or the indemnification asset, which as of June 30, 2014 is one year for commercial, construction and consumer loans and of six years for single-family residential mortgage loans. Additionally, lower mirror accounting of credit impairment losses by $4.7 million and an unfavorable variance in the fair value adjustment of the true-up payment obligation of $2.4 million for the second quarter, when compared with the first quarter of 2014, also contributed to the higher expense. See additional details about covered portfolio and FDIC indemnity asset in Table O.
• Lower other operating income by $13.1 million due to lower net earnings on the portfolio of investments under the equity method by $9.5 million, primarily due to the net gain of $6.5 million recorded during the first quarter as a result of an acquisition completed by the Corporation’s equity method investee based in the Dominican Republic, Centro Financiero BHD. Also, during the first quarter of 2014, there was a release of escrow reserves of approximately $2.3 million associated with the bulk sale of non-performing loans completed during the first quarter of 2013.

These negative variances were partially offset by:

• Higher other service fees by $3.7 million due to higher volume of credit and debit card transaction fees, higher commission income from the insurance and broker dealer business at the BPPR segment as well as higher insurance commissions at the BPNA segment. See additional details about other service fees in Table F.
• Higher net gain on sale of loans, including valuation adjustments on loans held-for-sale by $5.3 million, mainly at BPNA due to higher gains on sales of non-performing commercial loans.
• Lower provision for indemnity reserves by $2.9 million related primarily to loans subject to credit recourse and customary representations and warranties, at both BPPR and BPNA, partially offset by a partial release of the reserve recognized during the first quarter of 2014, for the indemnification provision related to the sale of non-performing assets completed during the first quarter of 2013.

Refer to Table B for further details.

Financial Impact of FDIC-Assisted Transaction
(Unaudited)	Quarters ended									Six months ended
(In thousands)	30-Jun-14			31-Mar-14			30-Jun-13			30-Jun-14			30-Jun-13
Income Statement
Interest income on covered loans	$	82,975		$	81,098		$	70,136		$	164,073		$	142,320
Total FDIC loss share expense		(55,261	)		(24,206	)		(3,755	)		(79,467	)		(30,021	)
Other non-interest income		-			-			242			-			484
Provision for loan losses		11,604			25,714			25,500			37,318			43,056
Total revenues less provision for loan losses	$	16,110		$	31,178		$	41,123		$	47,288		$	69,727
Balance Sheet
Loans covered under loss-sharing agreements with FDIC	$	2,736,102		$	2,870,054		$	3,199,998
FDIC loss share asset		751,553			833,721			1,379,342
FDIC true-up payment obligation		127,551			126,345			118,770

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

Operating expenses

Operating expenses decreased by $2.2 million when compared with the first quarter of 2014, driven primarily by:

• Lower personnel costs by $5.2 million mostly due to lower payroll tax resulting from lower taxable salaries during the quarter ended June 30, 2014, accompanied by lower medical plan expenses by $1.2 million.
• Lower net occupancy expense by $1.1 million resulting from a negative adjustment to the outstanding deferred rent liability for operating leases in BPNA, recorded during the first quarter of 2014, and lower utility expenses in BPPR driven by a reduction in consumption.
• Lower other real estate owned (OREO) expenses by $3.0 million due to higher gains on sale of commercial OREOs in BPNA.
• Lower other operating expenses by $2.3 million as a result of a sundry reserve release of approximately $1.4 million at BPNA, a release of $2.4 million in other contingency reserves in the Puerto Rico Operations, and lower LSA reimbursable expenses by $2.4 million due to property tax payments made during the first quarter of 2014; partially offset by higher provision for unused commitments in BPPR by $4.5 million.

These decreases were partially offset by:

• Higher business promotion expense by $4.7 million, mainly in BPPR due to higher advertising fees, and higher credit cards rewards expense.
• Higher restructuring costs by $4.6 million as a result of the PCB strategic reorganization. Refer to Table Q for a detail of restructuring charges.

Non-personnel credit-related costs, which include collections, appraisals, credit related fees, and OREO expenses, amounted to $10.1 million for the second quarter of 2014, compared with $12.8 million for the first quarter of 2014. The decrease was principally due to lower loan restructuring and collection expenses, mainly for covered loans, and higher gains on sales of OREO’s at BPNA.

Full-time equivalent employees (“FTEs”), including discontinued operations, were 8,032 as of June 30, 2014, compared with 8,053 as of March 31, 2014, and 8,117 as of June 30, 2013.

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

Income taxes

Income tax benefit for the second quarter of 2014 amounted to $4.1 million, compared to an income tax expense of $23.3 million for the first quarter of 2014. The variance in income tax expense is mainly due to a tax benefit recorded during the second quarter of 2014 of approximately $23.4 million due to a reduction in the deferred tax liability associated with the Westernbank loan portfolio as a result of a Closing Agreement entered into with the Puerto Rico Department of the Treasury (“PR Treasury”) during the quarter, offset by the negative impact of the deferred tax asset valuation allowance of approximately $8.9 million recorded at the Holding Company, due to the difference in the tax treatment of interest expense related to the TARP funds and the newly issued $450 million senior notes. The Closing Agreement, among other matters, was related to the income tax treatment of certain charge-offs related to the loans acquired from Westernbank as part of the FDIC assisted transaction in the year 2010. In connection with this closing agreement, the Corporation disbursed an estimated income tax payment of $45 million which will be used as a credit to offset future income tax liabilities.

On July 1, 2014, the Government of Puerto Rico approved an amendment to the Internal Revenue Code, which, among other things, changed the income tax rate for capital gains from 15% to 20%. As a result, the Corporation expects to recognize an income tax expense of approximately $20.0 million during the third quarter of 2014, mainly related to the deferred tax liability associated with the portfolio acquired from Westernbank.

Credit Quality

The following table presents non-performing assets information:

Non-Performing Assets
(Unaudited)
(In thousands)	30-Jun-14			31-Mar-14			30-Jun-13
Total non-performing loans held-in-portfolio, excluding covered loans	$	639,735		$	635,334		$	613,867
Non-performing loans held-for-sale		4,426			789			10,697
Other real estate owned (“OREO”), excluding covered OREO		139,420			136,965			158,920
Total non-performing assets, excluding covered assets		783,581			773,088			783,484
Covered loans and OREO		171,955			182,659			210,903
Total non-performing assets	$	955,536		$	955,747		$	994,387
Net charge-offs for the quarter (excluding covered loans)	$	46,201		$	43,246		$	79,145
Ratios (excluding covered loans):
Non-covered loans held-in-portfolio (1)	$	19,635,224		$	21,611,777		$	21,521,659
Non-performing loans held-in-portfolio to loans held-in-portfolio (1)		3.26	%		2.94	%		2.85	%
Allowance for loan losses to loans held-in-portfolio		2.68			2.51			2.46
Allowance for loan losses to non-performing loans, excluding loans held-for-sale		82.26			85.40			86.14
[1] During the quarter ended June 30, 2014, approximately $1.8 billion in loans held-in-portfolio were reclassified to the discontinued operations, of which $9.5 million were in non-performing status.
Refer to Table H for additional information.

Provision for Loan Losses
(Unaudited)	Quarters ended								Six months ended
(In thousands)	30-Jun-14			31-Mar-14		30-Jun-13			30-Jun-14			30-Jun-13
Provision (reversal) for loan losses - non-covered loans:
BPPR	$	74,860		$	53,915	$	230,464		$	128,775		$	434,753
BPNA		(24,786	)		207		(1,489	)		(24,579	)		3,315
Total provision for loan losses - non-covered loans		50,074			54,122		228,975			104,196			438,068
Provision for loan losses - covered loans		11,604			25,714		25,500			37,318			43,056
Total provision for loan losses	$	61,678		$	79,836	$	254,475		$	141,514		$	481,124

Credit Quality

The Corporation’s overall asset quality remained relatively stable when compared to the first quarter of 2014. The BPNA segment continued to reflect strong credit quality led by the improved risk profile of its loan portfolios. Nevertheless, challenging economic and fiscal conditions in Puerto Rico continued to influence credit quality results in the BPPR segment.

The following presents credit quality performance for the second quarter of 2014 for the Corporation’s non-covered portfolios. Unless otherwise noted, all credit metrics for the second quarter of 2014 are from continuing operations.

• Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $54.2 million, or 26.3%, from the previous quarter. The first quarter of 2014 included the impact of a single $51.6 million commercial borrower in BPPR, which continues to be current, despite its non-performing classification. Excluding this impact from the prior quarter, inflows decreased by $2.6 million.
• Non-performing loans held-in-portfolio increased slightly by $4.4 million from the first quarter of 2014. This increase was driven by an increase of $41.6 million in the BPPR segment mostly related to higher mortgage NPLs, offset in part by an improvement of $37.2 million in the BPNA segment.
• Net charge-offs for the second quarter of 2014 amounted to $46.2 million, or an annualized 0.94% of average non-covered loans held-in-portfolio, compared to $43.2 million, or 0.80% in the first quarter of 2014. The increase of $3.0 million primarily reflects the impact of significant recoveries from the BPNA segment in the previous quarter. The NCO ratio increase reflects the impact of the reclassification of the discontinued operations loan portfolios. Refer to Table J for further information on net charge-offs and related ratios.
• The allowance for loan losses decreased by $16.3 million from the first quarter of 2014, mainly driven by a $47.9 million reserve release in BPNA prompted by continued improvements in credit quality trends and the reclassification of $20.2 million attributable to the discontinued operations, offset in part by higher reserves for the BPPR segment of $31.5 million. The general and specific reserves related to non-covered loans totaled $405.2 million and $121.0 million, respectively, at quarter-end, compared with $427.5 million and $115.1 million, respectively, as of March 31, 2014. The ratio of the allowance for loan losses to loans held-in-portfolio increased at 2.68% in the second quarter of 2014, compared to 2.51% in the previous quarter.
• The provision for loan losses for the second quarter of 2014 amounted to $50.1 million, compared to $54.1 million in the first quarter of 2014, reflecting a higher provision in Puerto Rico and a release in the US operations.

Credit Quality by Segment
(Unaudited)
(In thousands)	Quarters ended
BPPR		30-Jun-14			31-Mar-14			30-Jun-13
Provision for loan losses		$	74,860		$	53,915		$	230,464
Net charge-offs			43,335			45,950		61,404[1]
Total non-performing loans held-in-portfolio, excluding covered loans			573,806			532,223			419,427
Allowance / non-covered loans held-in-portfolio			2.94	%		2.72	%		2.51	%
[1] For the quarter ended June 30, 2013, excludes net write-downs of $199.5 million related to the NPL's bulk sale.
	Quarters ended
BPNA		30-Jun-14			31-Mar-14			30-Jun-13
Provision for loan losses (reversal of provision) - Continuing operations		$	(24,786	)	$	207		$	(1,489	)
Provision for loan losses (reversal of provision) - Discontinued operations			-			(6,764	)		(5,067	)
Net charge-offs (recoveries) - Continuing operations			2,866			2,841			8,840
Net charge-offs (recoveries) - Discontinued operations			-			(5,545	)		8,901
Total non-performing loans held-in-portfolio			65,929			103,111			194,440
Allowance / non-covered loans held-in-portfolio			1.59	%		1.91	%		2.32	%

BPPR Segment

• Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $47.0 million, or 25.7%, from the first quarter of 2014, as the prior quarter included the impact of the aforementioned $51.6 million commercial relationship. Excluding this impact from the prior quarter, inflows reflect an increase of $4.6 million, mainly from the mortgage portfolio.
• Total NPLs held-in-portfolio increased by $41.6 million from the first quarter of 2014, largely driven by higher mortgage and commercial NPLs of $32.6 million and $7.6 million, respectively. Mortgage NPL inflows continue outpacing outflows, driving mortgage NPLs upward after the NPL bulk sale completed during the second quarter of 2013.
• Net charge-offs were $43.3 million, decreasing by $2.6 million, or 5.7%, from the first quarter of 2014, primarily reflecting lower net charge-offs in the commercial portfolio. The ratio of net charge-offs to average loans held-in-portfolio decreased to 1.09% on an annualized basis, from 1.16% in the previous quarter.
• The allowance for loan losses increased by $31.5 million from the first quarter of 2014. The increase in the allowance was mostly driven by: (1) environmental adjustments accounting for prevailing macroeconomic conditions in Puerto Rico and the public sector utilities exposures, (2) the effect of downgrades in the internal risk ratings of certain large corporate and public sector relationships, and (3) higher specific reserves for commercial loans. These increases were partially offset by a $14.9 million reserve release as part of the annual review of the components of the ALLL models. The allowance for loan losses as a percentage of loans held-in-portfolio increased to 2.94% compared to 2.72% in the first quarter of 2014.
• The provision for loan losses for the second quarter of 2014 amounted to $74.9 million, increasing by $20.9 million from the previous quarter, predominantly driven by the aforementioned allowance increase.

BPNA Segment

• Total NPLs held-in-portfolio decreased by $37.2 million, or 36.1%, from the first quarter of 2014, primarily driven by a $28.4 million reduction in commercial NPLs, reflecting the impact of sales and credit quality improvements, and $9.5 million attributed to the reclassification of the discontinued operations. Total inflows of non-performing loans held-in-portfolio, excluding consumer loans, decreased by $7.2 million, or 31.6%, from the first quarter of 2014.
• Net charge-offs amounted to $2.9 million, increasing by $5.6 million from the previous quarter of 2014, as the first quarter included the effect of significant recoveries in the commercial and legacy portfolios. The ratio of net charge-offs to average loans held-in-portfolio was 30 basis points on an annualized basis, compared to a net recovery of 19 basis points in the previous quarter.

• The allowance for loan losses decreased by $47.9 million from the first quarter of 2014, primarily reflective of the continued improvements in credit quality trends, the reclassification of $20.2 million attributable to the discontinued operations, and a $3.8 million reserve release as part of the annual review of the components of the ALLL models. In light of these improvements, the provision for loan losses in the second quarter of 2014 resulted in a provision release of $24.8 million. The allowance for loan losses as a percentage of loans held-in-portfolio decreased to 1.59% from 1.91% in the first quarter of 2014.

Financial Condition Highlights
(Unaudited)
(In thousands)	30-Jun-14		31-Mar-14		30-Jun-13
Money market, trading and investment securities	$	7,949,164	$	8,056,145	$	6,840,871
Loans not covered under loss sharing agreements with the FDIC		19,635,224		21,611,777		21,521,659
Loans covered under loss sharing agreements with the FDIC		2,736,102		2,870,054		3,199,998
Assets from discontinued operations		1,828,382		-		-
Total assets		36,587,902		36,744,162		36,684,594
Deposits		24,901,152		27,265,651		26,759,428
Borrowings		4,465,965		3,715,821		4,694,671
Liabilities from discontinued operations		2,079,742		-		-
Total liabilities		32,327,461		31,998,415		32,489,558
Stockholders’ equity		4,260,441		4,745,747		4,195,036

During the quarter ended June 30, 2014, the Corporation reclassified $1.8 billion in assets and $2.1 billion in liabilities to discontinued operations in the statement of financial condition as part of the reorganization of PCB. Refer to Table P for details of discontinued operations.

Total assets decreased by $156.3 million from the first quarter of 2014, driven by:

• A decrease of $114.9 million in investment securities available-for-sale mainly due to a decrease of $85.1 million in federal agency CMOs due to maturities and paydowns in BPPR and BPNA during the second quarter of 2014, accompanied by a decrease of $61.9 million in MBS resulting from principal paydowns, partially offset by an increase of $32.1 million in US agency obligations.
• A decrease of $172.4 million in non-covered loans held-in-portfolio, excluding the reclassification of $1.8 billion in loans to discontinued operations, mainly in the BPPR commercial loan portfolio primarily as a result of a reduction of $210.6 million in the public sector, accompanied by a decrease in the BPNA loan portfolio due to the continued resolution of non-performing loans.
• The covered loan portfolio decreased by $134.0 million due to the continuation of loan resolutions and the normal portfolio run-off.
• A decrease of $82.2 million in FDIC loss share asset mainly due to collections and the amortization of the asset, which was impacted by the revised estimates of expected cash flows, as discussed in the Non-interest income section.
• A decrease of $186.5 million in goodwill due to the non-cash write-down of the goodwill allocated, on a relative fair value basis, to the discontinued U.S. businesses. This write-down had no impact on tangible or regulatory capital.

These decreases were partially offset by:

• An increase in other assets by $544.7 million mainly due to $450.0 million in trade receivables due to the issuance of senior notes raised near the end of the second quarter with a settlement date of July 1, 2014, to partially fund the repayment of the $935 million in trust preferred securities under TARP.

Total liabilities increased by $329.0 million from the first quarter of 2014, driven by:

• An increase of $853.7 million in notes payable mainly resulting from the accelerated amortization of the $414.1 million discount and deferred costs of the TARP related trust preferred securities, as well as the issuance of $450.0 million in senior notes. This increase was accompanied by higher other short-term borrowings by $30.0 million in BPNA , partially offset by a decrease in federal funds purchased and assets sold under agreements to repurchase by $133.5 million, as part of the Corporation’s funding strategies.

This increase was partially offset by:

• A decrease in deposits of $306.2 million, excluding the reclassification of $2.1 billion in deposits to discontinued operations, mainly in demand deposits, primarily due to funds received at the end of the first quarter of 2014 at BPPR, related to the Puerto Rico Government’s $3.5 billion debt issuance, temporarily deposited in trust and to be disbursed to pay bond holders.
• A decrease of $136.3 million in other liabilities mainly due to unsettled trades payable of $218.7 million at March 31, 2014.

Stockholders’ equity decreased by $485.3 million from the first quarter of 2014, mainly as a result of the net loss for the quarter of $511.3 million, principally triggered by the acceleration of the amortization of the TARP Notes discount, partially offset by a decrease of $26.3 million in net unrealized loss on investment securities available-for-sale. Refer to Table A for capital ratios.

Refer to Table C for the Statements of Financial Condition.

Regulatory Capital

On April 22, 2014 the Corporation’s U.S. bank subsidiary declared a $250 million cash dividend to the Bank Holding Company (“BHC”), $100 million of which was contributed as additional common equity by the BHC to the Puerto Rico banking subsidiary.

On July 2, 2014, the Corporation completed the repayment TARP funds to the U.S. Treasury through the repurchase of $935 million of trust capital securities issued to the U.S. Treasury under the TARP Capital repurchase program.

Popular’s regulatory capital ratios and that of its banking subsidiaries remained in excess of “well capitalized” regulatory requirements at June 30, 2014. The estimated common equity Tier 1 (“CET1”) ratio was 13.5% at June 30, 2014 compared to 15.1% at March 31, 2014. After taking into account the repayment of TARP, pro-forma estimated Common Equity Tier 1, Tier 1 Capital and total Capital ratios as of June 30, 2014 would have been 13.8%, 15.8% and 17.1%, respectively.

Forward-Looking Statements

The information included in this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in forward-looking statements. Factors that might cause such a difference include, but are not limited to (i) the rate of growth in the economy and employment levels, as well as general business and economic conditions; (ii) changes in interest rates, as well as the magnitude of such changes; (iii) the fiscal and monetary policies of the federal government and its agencies; (iv) changes in federal bank regulatory and supervisory policies, including required levels of capital and the impact of proposed capital standards on our capital ratios; (v) the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on our businesses, business practices and cost of operations; (vi) regulatory approvals that may be necessary to undertake certain actions or consummate strategic transactions such as acquisitions and dispositions; (vii) the relative strength or weakness of the consumer and commercial credit sectors and of the real estate markets in Puerto Rico and the other markets in which borrowers are located; (viii) the performance of the stock and bond markets; (ix) competition in the financial services industry; (x) additional Federal Deposit Insurance Corporation assessments; and (xi) possible legislative, tax or regulatory changes. 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, 2013, as well as its filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, the Corporation assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks among the top 50 U.S. banks by assets. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey, 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, July 24, 2014 at 11 a.m. Eastern Standard Time. The call will be broadcast live over the Internet and can be accessed through the investor relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-888-317-6016 or 1-412-317-6016.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Friday, August 1, 2014 at 9:00 a.m. Eastern Standard Time, at 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10048288.

Popular, Inc.

Financial Supplement to Second Quarter 2014 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 - Mortgage Banking Activities and Other Service Fees

Table G - Loans and Deposits

Table H - Non-Performing Assets

Table I - Activity in Non-Performing Loans

Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios

Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED

Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS

Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS

Table N - Reconciliation to GAAP Financial Measures

Table O - Financial Information - Westernbank Covered Loans

Table P - Financial Information from Discontinued Operations

Table Q - Restructuring Charges

POPULAR, INC.
Financial Supplement to Second Quarter 2014 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
	Quarters ended									Six months ended
	30-Jun-14			31-Mar-14			30-Jun-13			30-Jun-14			30-Jun-13
Basic EPS from continuing operations	$	(3.21	)	$	0.64		$	3.03		$	(2.58	)	$	1.76
Basic EPS from discontinued operations	$	(1.77	)	$	0.19		$	0.15		$	(1.57	)	$	0.24
Total Basic EPS	$	(4.98	)	$	0.83		$	3.18		$	(4.15	)	$	2.00
Diluted EPS from continuing operations	$	(3.21	)	$	0.64		$	3.02		$	(2.58	)	$	1.75
Diluted EPS from discontinued operations	$	(1.77	)	$	0.19		$	0.15		$	(1.57	)	$	0.24
Total Diluted EPS	$	(4.98	)	$	0.83		$	3.17		$	(4.15	)	$	1.99
Average common shares outstanding		102,781,438			102,799,752			102,620,295			102,790,545			102,642,329
Average common shares outstanding - assuming dilution		102,781,438			103,198,102			102,917,347			102,790,545			102,957,736
Common shares outstanding at end of period		103,472,979			103,455,535			103,276,131			103,472,979			103,276,131
Market value per common share	$	34.18		$	30.99		$	30.37		$	34.18		$	30.37
Market capitalization - (In millions)	$	3,537		$	3,206		$	3,136		$	3,537		$	3,136
Return on average assets		(5.66	)%		0.97	%		3.60	%		(2.37	)%		1.15	%
Return on average common equity		(43.04	)%		7.39	%		32.77	%		(18.19	)%		10.47	%
Net interest margin [2]		4.68	%		4.70	%		4.47	%		4.69	%		4.43	%
Common equity per share	$	40.69		$	45.39		$	40.13		$	40.69		$	40.13
Tangible common book value per common share (non-GAAP) [1]	$	35.84		$	38.71		$	33.38		$	35.84		$	33.38
Tangible common equity to tangible assets (non-GAAP) [1]		10.28	%		11.11	%		9.58	%		10.28	%		9.58	%
Tier 1 risk-based capital [3]		19.42	%		19.35	%		17.30	%		19.42	%		17.30	%
Total risk-based capital [3]		20.69	%		20.62	%		18.58	%		20.69	%		18.58	%
Tier 1 leverage [3]		13.20	%		13.07	%		11.46	%		13.20	%		11.46	%
Tier 1 common equity to risk-weighted assets (non-GAAP) [1] [3]		13.51	%		15.07	%		13.04	%		13.51	%		13.04	%
[1] Refer to Table N for Non-GAAP reconciliations.
[2] Not on a taxable equivalent basis. For June 30, 2014, excludes the impact of the $414.1 million TARP discount amortization. US GAAP Net interest margin was (0.77)%. Refer to Tables D & E for reconciliation.
[3] Capital ratios for the current quarter are estimated.

POPULAR, INC.
Financial Supplement to Second Quarter 2014 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
		Quarters ended						Variance			Quarter ended			Variance			Six months ended
(In thousands, except per share information)		30-Jun-14			31-Mar-14			Q2 2014 vs.Q1 2014			30-Jun-13			Q2 2014 vs.Q2 2013			30-Jun-14			30-Jun-13
Interest income:
	Loans	$	380,986		$	377,602		$	3,384		$	370,298		$	10,688		$	758,588		$	730,814
	Money market investments		1,131			973			158			829			302			2,104			1,784
	Investment securities		33,989			35,127			(1,138	)		36,106			(2,117	)		69,116			73,929
	Trading account securities		5,344			5,257			87			5,456			(112	)		10,601			10,970
	Total interest income		421,450			418,959			2,491			412,689			8,761			840,409			817,497
Interest expense:
	Deposits		26,223			26,858			(635	)		32,445			(6,222	)		53,081			67,061
	Short-term borrowings		8,892			9,040			(148	)		9,767			(875	)		17,932			19,548
	Long-term debt		445,716			31,890			413,826			36,066			409,650			477,606			71,833
	Total interest expense		480,831			67,788			413,043			78,278			402,553			548,619			158,442
Net interest (expense) income			(59,381	)		351,171			(410,552	)		334,411			(393,792	)		291,790			659,055
Provision for loan losses - non-covered loans			50,074			54,122			(4,048	)		228,975			(178,901	)		104,196			438,068
Provision for loan losses - covered loans			11,604			25,714			(14,110	)		25,500			(13,896	)		37,318			43,056
Net interest (expense) income after provision for loan losses			(121,059	)		271,335			(392,394	)		79,936			(200,995	)		150,276			177,931
Service charges on deposit accounts			39,237			39,359			(122	)		41,378			(2,141	)		78,596			82,539
Other service fees			56,468			52,818			3,650			57,279			(811	)		109,286			112,223
Mortgage banking activities			3,788			3,678			110			18,081			(14,293	)		7,466			38,378
Net gain and valuation adjustments on investment securities			-			-			-			5,856			(5,856	)		-			5,856
Trading account profit (loss)			1,055			1,977			(922	)		(4,345	)		5,400			3,032			(5,329	)
Net gain (loss) on sale of loans, including valuation adjustments on loans held-for-sale			9,659			4,393			5,266			4,291			5,368			14,052			(58,428	)
Adjustments (expense) to indemnity reserves on loans sold			(7,454	)		(10,347	)		2,893			(11,632	)		4,178			(17,801	)		(27,775	)
FDIC loss share (expense) income			(55,261	)		(24,206	)		(31,055	)		(3,755	)		(51,506	)		(79,467	)		(30,021	)
Other operating income			15,297			28,360			(13,063	)		181,565			(166,268	)		43,657			201,585
	Total non-interest income		62,789			96,032			(33,243	)		288,718			(225,929	)		158,821			319,028
Operating expenses:
Personnel costs
	Salaries		69,149			69,038			111			68,585			564			138,187			136,207
	Commissions, incentives and other bonuses		12,862			13,099			(237	)		14,704			(1,842	)		25,961			29,477
	Pension, postretirement and medical insurance		7,532			8,701			(1,169	)		13,911			(6,379	)		16,233			28,224
	Other personnel costs, including payroll taxes		9,557			13,463			(3,906	)		9,159			398			23,020			20,032
	Total personnel costs		99,100			104,301			(5,201	)		106,359			(7,259	)		203,401			213,940
Net occupancy expenses			20,267			21,360			(1,093	)		21,059			(792	)		41,627			41,551
Equipment expenses			12,044			11,412			632			11,485			559			23,456			23,105
Other taxes			13,543			13,663			(120	)		15,225			(1,682	)		27,206			26,753
Professional fees			67,024			66,999			25			67,015			9			134,023			134,752
Communications			6,425			6,685			(260	)		6,395			30			13,110			12,946
Business promotion			16,038			11,386			4,652			15,357			681			27,424			27,942
FDIC deposit insurance			10,480			10,978			(498	)		18,557			(8,077	)		21,458			26,913
Other real estate owned (OREO) expenses			3,410			6,440			(3,030	)		7,657			(4,247	)		9,850			53,524
Credit and debit card processing, volume, interchange and other expenses			5,640			5,196			444			5,096			544			10,836			9,801
Other operating expenses			14,869			17,153			(2,284	)		17,670			(2,801	)		32,022			33,883
Amortization of intangibles			2,025			2,026			(1	)		1,989			36			4,051			3,979
Restructuring costs			4,574			-			4,574			-			4,574			4,574			-
	Total operating expenses		275,439			277,599			(2,160	)		293,864			(18,425	)		553,038			609,089
(Loss) income from continuing operations before income tax			(333,709	)		89,768			(423,477	)		74,790			(408,499	)		(243,941	)		(112,130	)
Income tax (benefit) expense			(4,124	)		23,264			(27,388	)		(237,380	)		233,256			19,140			(294,257	)
(Loss) income from continuing operations			(329,585	)		66,504			(396,089	)		312,170			(641,755	)		(263,081	)		182,127
(Loss) income from discontinued operations, net of tax			(181,729	)		19,905			(201,634	)		15,298			(197,027	)		(161,824	)		25,034
Net (loss) income		$	(511,314	)	$	86,409		$	(597,723	)	$	327,468		$	(838,782	)	$	(424,905	)	$	207,161
Net (loss) income applicable to common stock		$	(512,245	)	$	85,478		$	(597,723	)	$	326,537		$	(838,782	)	$	(426,767	)	$	205,300
Net (loss) income per common share - basic:
	Net (loss) income from continuing operations	$	(3.21	)	$	0.64		$	(3.85	)	$	3.03		$	(6.24	)	$	(2.58	)	$	1.76
	Net (loss) income from discontinued operations	$	(1.77	)	$	0.19		$	(1.96	)	$	0.15		$	(1.92	)	$	(1.57	)	$	0.24
	Net (loss) income per common share - basic	$	(4.98	)	$	0.83		$	(5.81	)	$	3.18		$	(8.16	)	$	(4.15	)	$	2.00
Net (loss) income per common share - diluted:
	Net (loss) income from continuing operations	$	(3.21	)	$	0.64		$	(3.85	)	$	3.02		$	(6.23	)	$	(2.58	)	$	1.75
	Net (loss) income from discontinued operations	$	(1.77	)	$	0.19		$	(1.96	)	$	0.15		$	(1.92	)	$	(1.57	)	$	0.24
	Net (loss) income per common share - diluted	$	(4.98	)	$	0.83		$	(5.81	)	$	3.17		$	(8.15	)	$	(4.15	)	$	1.99

Popular, Inc.
Financial Supplement to Second Quarter 2014 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
												Variance
												Q2 2014 vs.
(In thousands)			30-Jun-14			31-Mar-14			30-Jun-13			Q1 2014
Assets:
Cash and due from banks			$	362,572		$	387,917		$	388,041		$	(25,345	)
Money market investments				1,666,944			1,622,433			1,071,939			44,511
Trading account securities, at fair value				345,823			359,247			294,082			(13,424	)
Investment securities available-for-sale, at fair value				5,653,992			5,768,890			5,114,636			(114,898	)
Investment securities held-to-maturity, at amortized cost				114,280			139,019			141,632			(24,739	)
Other investment securities, at lower of cost or realizable value				168,125			166,556			218,582			1,569
Loans held-for-sale, at lower of cost or fair value				97,010			94,877			190,852			2,133
Loans held-in-portfolio:
		Loans not covered under loss sharing agreements with the FDIC		19,726,234			21,703,050			21,615,754			(1,976,816	)
		Loans covered under loss sharing agreements with the FDIC		2,736,102			2,870,054			3,199,998			(133,952	)
		Less: Unearned income		91,010			91,273			94,095			(263	)
		Allowance for loan losses		624,911			640,348			635,219			(15,437	)
		Total loans held-in-portfolio, net		21,746,415			23,841,483			24,086,438			(2,095,068	)
FDIC loss share asset				751,553			833,721			1,379,342			(82,168	)
Premises and equipment, net				492,382			513,855			527,014			(21,473	)
Other real estate not covered under loss sharing agreements with the FDIC				139,420			136,965			158,920			2,455
Other real estate covered under loss sharing agreements with the FDIC				155,805			158,747			183,225			(2,942	)
Accrued income receivable				119,520			125,895			143,905			(6,375	)
Mortgage servicing assets, at fair value				151,951			156,529			153,444			(4,578	)
Other assets				2,292,360			1,747,646			1,935,426			544,714
Goodwill				461,246			647,757			647,757			(186,511	)
Other intangible assets				40,122			42,625			49,359			(2,503	)
Assets from discontinued operations				1,828,382			-			-			1,828,382
Total assets			$	36,587,902		$	36,744,162		$	36,684,594		$	(156,260	)
Liabilities and Stockholders’ Equity:
Liabilities:
	Deposits:
		Non-interest bearing	$	5,666,685		$	6,326,596		$	5,856,066		$	(659,911	)
		Interest bearing		19,234,467			20,939,055			20,903,362			(1,704,588	)
		Total deposits		24,901,152			27,265,651			26,759,428			(2,364,499	)
Federal funds purchased and assets sold under agreements to repurchase				2,074,676			2,208,213			1,672,705			(133,537	)
Other short-term borrowings				31,200			1,200			1,226,200			30,000
Notes payable				2,360,089			1,506,408			1,795,766			853,681
Other liabilities				880,602			1,016,943			1,035,459			(136,341	)
Liabilities from discontinued operations				2,079,742			-			-			2,079,742
Total liabilities				32,327,461			31,998,415			32,489,558			329,046
Stockholders’ equity:
Preferred stock				50,160			50,160			50,160			-
Common stock				1,035			1,035			1,033			-
Surplus				4,173,616			4,171,817			4,153,525			1,799
Retained earnings				167,663			679,908			217,126			(512,245	)
Treasury stock				(1,742	)		(898	)		(769	)		(844	)
Accumulated other comprehensive loss				(130,291	)		(156,275	)		(226,039	)		25,984
		Total stockholders’ equity		4,260,441			4,745,747			4,195,036			(485,306	)
Total liabilities and stockholders’ equity			$	36,587,902		$	36,744,162		$	36,684,594		$	(156,260	)

Popular, Inc.
Financial Supplement to Second Quarter 2014 Earnings Release
Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER
(Unaudited)
			Quarter ended						Quarter ended						Quarter ended						Variance						Variance
($ amounts in millions; yields not on a taxable equivalent basis)			30-Jun-14						31-Mar-14						30-Jun-13						Q2 2014 vs. Q1 2014						Q2 2014 vs. Q2 2013
			Average balance		Income / Expense		Yield / Rate		Average balance		Income / Expense		Yield / Rate		Average balance		Income / Expense		Yield / Rate		Average balance		Income / Expense		Yield / Rate		Average balance		Income / Expense		Yield / Rate
Assets:
Interest earning assets:
	Money market, trading and investment securities		$	7,839	$	40.4	2.07	%	$	7,566	$	41.4	2.19	%	$	6,943	$	42.4	2.44	%	$	273		($1.0)	(0.12)	%	$	896		($2.0)	(0.37)	%
	Loans not covered under loss sharing agreements with the FDIC:
		Commercial		8,446		102.2	4.86			8,487		100.7	4.81			8,206		99.9	4.88			(41)		1.5	0.05			240		2.3	(0.02)
		Construction		175		2.4	5.55			186		4.8	10.54			312		3.5	4.52			(11)		(2.4)	(4.99)			(137)		(1.1)	1.03
		Mortgage		6,691		85.3	5.10			6,691		86.9	5.20			7,019		91.2	5.20			-		(1.6)	(0.10)			(328)		(5.9)	(0.10)
		Consumer		3,894		97.9	10.08			3,761		93.8	10.12			3,720		94.7	10.20			133		4.1	(0.04)			174		3.2	(0.12)
		Lease financing		546		10.2	7.43			544		10.3	7.57			542		10.9	8.02			2		(0.1)	(0.14)			4		(0.7)	(0.59)
		Total loans not covered under loss sharing agreements with the FDIC		19,752		298.0	6.05			19,669		296.5	6.09			19,799		300.2	6.07			83		1.5	(0.04)			(47)		(2.2)	(0.02)
	Loans covered under loss sharing agreements with the FDIC			2,811		83.0	11.83			2,934		81.1	11.18			3,269		70.1	8.60			(123)		1.9	0.65			(458)		12.9	3.23
	Total loans			22,563		381.0	6.77			22,603		377.6	6.75			23,068		370.3	6.43			(40)		3.4	0.02			(505)		10.7	0.34
	Total interest earning assets			30,402	$	421.4	5.56	%		30,169	$	419.0	5.61	%		30,011	$	412.7	5.51	%		233	$	2.4	(0.05)	%		391	$	8.7	0.05	%
		Allowance for loan losses		(627)						(617)						(629)						(10)						2
		Other non-interest earning assets		4,598						4,689						5,113						(91)						(515)
		Assets from discontinued operations		1,863						1,955						2,007						(92)						(144)
	Total average assets		$	36,236					$	36,196					$	36,502					$	40					$	(266)
Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$	4,897	$	3.8	0.32	%	$	4,736	$	3.8	0.32	%	$	4,736	$	4.2	0.35	%	$	161	$	-	-	%	$	161		($0.4)	(0.03)	%
		Savings		6,713		3.6	0.22			6,691		3.6	0.22			6,538		4.0	0.25			22		-	-			175		(0.4)	(0.03)
		Time deposits		7,709		18.8	0.98			7,538		19.5	1.05			8,073		24.3	1.21			171		(0.7)	(0.07)			(364)		(5.5)	(0.23)
		Total interest bearing deposits		19,319		26.2	0.54			18,965		26.9	0.57			19,347		32.5	0.67			354		(0.7)	(0.03)			(28)		(6.3)	(0.13)
	Borrowings[1]			3,614		40.5	4.49			3,868		40.9	4.25			4,486		45.8	4.09			(254)		(0.4)	0.24			(872)		(5.3)	0.40
		Total interest bearing liabilities		22,933		66.7	1.17			22,833		67.8	1.20			23,833		78.3	1.32			100		(1.1)	(0.03)			(900)		(11.6)	(0.15)
		Net interest spread					4.39	%					4.41	%					4.19	%					(0.02)	%					0.20	%
	Non-interest bearing deposits			5,451						5,584						5,388						(133)						63
	Other liabilities			915						894						1,006						21						(91)
	Liabilities from discontinued operations			2,113						2,146						2,228						(33)						(115)
	Stockholders' equity			4,824						4,739						4,047						85						777
		Total average liabilities and stockholders' equity	$	36,236					$	36,196					$	36,502					$	40					$	(266)
Adjusted net interest income / margin non-taxable equivalent basis					$	354.7	4.68	%			$	351.2	4.70	%			$	334.4	4.47	%			$	3.5	(0.02)	%			$	20.3	0.21	%
Accelerated amortization TARP discount and related deferred costs						414.1
Net interest income (expense) / margin non-taxable equivalent basis						($59.4)	(0.77)	%
(1) Including the impact of the accelerated amortization, the total cost of borrowings for the second quarter 2014 would have been 50.31%.

Popular, Inc.
Financial Supplement to Second Quarter 2014 Earnings Release
Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE
(Unaudited)
			Six months ended						Six months ended
($ amounts in millions; yields not on a taxable equivalent basis)			30-Jun-14						30-Jun-13						Variance
			Average balance		Income / Expense		Yield / Rate		Average balance		Income / Expense		Yield / Rate		Average balance		Income / Expense		Yield / Rate
Assets:
Interest earning assets:
	Money market, trading and investment securities		$	7,703	$	81.8	2.13	%	$	6,957	$	86.7	2.50	%	$	746		($4.9)	(0.37)	%
	Loans not covered under loss sharing agreements with the FDIC:
		Commercial		8,467		202.8	4.83			8,224		195.9	4.80			243		6.9	0.03
		Construction		180		7.3	8.11			338		7.0	4.18			(158)		0.3	3.93
		Mortgage		6,691		172.2	5.15			6,716		174.5	5.20			(25)		(2.3)	(0.05)
		Consumer		3,828		191.7	10.10			3,723		188.9	10.23			105		2.8	(0.13)
		Lease financing		545		20.5	7.50			542		22.2	8.19			3		(1.7)	(0.69)
		Total loans not covered under loss sharing agreements with the FDIC		19,711		594.5	6.07			19,543		588.5	6.06			168		6.0	0.01
	Loans covered under loss sharing agreements with the FDIC			2,872		164.1	11.50			3,391		142.3	8.45			(519)		21.8	3.05
	Total loans			22,583		758.6	6.76			22,934		730.8	6.41			(351)		27.8	0.35
	Total interest earning assets			30,286	$	840.4	5.58	%		29,891	$	817.5	5.50	%		395	$	22.9	0.08	%
		Allowance for loan losses		(622)						(619)						(3)
		Other non-interest earning assets		4,643						5,142						(499)
		Assets from discontinued operations		1,909						2,018						(109)
	Total average assets		$	36,216					$	36,432						($216)
Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$	4,817	$	7.6	0.32	%	$	4,666	$	8.6	0.37	%	$	151		($1.0)	(0.05)	%
		Savings		6,702		7.2	0.22			6,530		8.1	0.25			172		(0.9)	(0.03)
		Time deposits		7,624		38.3	1.01			8,172		50.3	1.24			(548)		(12.0)	(0.23)
		Total interest bearing deposits		19,143		53.1	0.56			19,368		67.0	0.70			(225)		(13.9)	(0.14)
	Borrowings [1]			3,740		81.4	4.37			4,489		91.4	4.08			(749)		(10.0)	0.29
		Total interest bearing liabilities		22,883		134.5	1.18			23,857		158.4	1.33			(974)		(23.9)	(0.15)
		Net interest spread					4.40	%					4.17	%					0.23	%
	Non-interest bearing deposits			5,517						5,315						202
	Other liabilities			905						1,036						(131)
	Liabilities from discontinued operations			2,129						2,221						(92)
	Stockholders' equity			4,782						4,003						779
		Total average liabilities and stockholders' equity	$	36,216					$	36,432						($216)
Adjusted net interest income / margin non-taxable equivalent basis					$	705.9	4.69	%			$	659.1	4.43	%			$	46.8	0.26	%
Accelerated amortization of TARP discount
and related deferred costs						414.1
Net interest income/margin non-taxable equivalent basis					$	291.8	1.95	%
(1) Including the impact of the accelerated amortization, the total cost of borrowings for the six months ended June 30, 2014 would have been 26.51%.

Popular, Inc.
Financial Supplement to Second Quarter 2014 Earnings Release
Table F - Mortgage Banking Activities and Other Service Fees
(Unaudited)
Mortgage Banking Activities											Variance
		Quarters ended									Q2 2014 vs.			Q2 2014 vs.			Six months ended						Variance
(In thousands)		30-Jun-14			31-Mar-14			30-Jun-13			Q1 2014			Q2 2013			30-Jun-14			30-Jun-13			2014 vs. 2013
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$	10,558		$	10,748		$	11,313		$	(190	)	$	(755	)	$	21,306		$	22,556		$	(1,250	)
	Mortgage servicing rights fair value adjustments		(7,740	)		(8,096	)		(5,126	)		356			(2,614	)		(15,836	)		(10,741	)		(5,095	)
Total mortgage servicing fees, net of fair value adjustments			2,818			2,652			6,187			166			(3,369	)		5,470			11,815			(6,345	)
Net gain (loss) on sale of loans, including valuation on loans held-for-sale			8,189			7,176			(351	)		1,013			8,540			15,365			13,409			1,956
Trading account (loss) profit:
	Unrealized gains (losses) on outstanding derivative positions		22			(760	)		622			782			(600	)		(738	)		600			(1,338	)
	Realized (losses) gains on closed derivative positions		(7,241	)		(5,390	)		11,623			(1,851	)		(18,864	)		(12,631	)		12,554			(25,185	)
Total trading account (loss) profit			(7,219	)		(6,150	)		12,245			(1,069	)		(19,464	)		(13,369	)		13,154			(26,523	)
Total mortgage banking activities		$	3,788		$	3,678		$	18,081		$	110		$	(14,293	)	$	7,466		$	38,378		$	(30,912	)

Other Service Fees								Variance
		Quarters ended						Q2 2014 vs.		Q2 2014 vs.			Six months ended				Variance
(In thousands)		30-Jun-14		31-Mar-14		30-Jun-13		Q1 2014		Q2 2013			30-Jun-14		30-Jun-13		2014 vs. 2013
Other service fees:
	Debit card fees	$	11,000	$	10,544	$	10,395	$	456	$	605		$	21,544	$	20,460	$	1,084
	Insurance fees		12,406		11,719		11,550		687		856			24,125		23,157		968
	Credit card fees		16,985		16,083		16,265		902		720			33,068		31,819		1,249
	Sale and administration of investment products		7,456		6,457		10,243		999		(2,787	)		13,913		18,960		(5,047	)
	Trust fees		4,566		4,463		4,154		103		412			9,029		8,612		417
	Other fees		4,055		3,552		4,672		503		(617	)		7,607		9,215		(1,608	)
Total other service fees		$	56,468	$	52,818	$	57,279	$	3,650	$	(811	)	$	109,286	$	112,223	$	(2,937	)

Popular, Inc.
Financial Supplement to Second Quarter 2014 Earnings Release
Table G - Loans and Deposits
(Unaudited)
Loans - Ending Balances
							Variance
(In thousands)	30-Jun-14		31-Mar-14		30-Jun-13		Q2 2014 vs. Q1 2014			Q2 2014 vs. Q2 2013
Loans not covered under FDIC loss sharing agreements:
Commercial	$	8,155,547	$	10,014,721	$	9,917,840	$	(1,859,174	)	$	(1,762,293	)
Construction		179,059		176,766		297,010		2,293			(117,951	)
Legacy [1]		162,941		197,164		262,228		(34,223	)		(99,287	)
Lease financing		546,868		546,880		538,348		(12	)		8,520
Mortgage		6,664,448		6,669,376		6,603,587		(4,928	)		60,861
Consumer		3,926,361		4,006,870		3,902,646		(80,509	)		23,715
Total non-covered loans held-in-portfolio	$	19,635,224	$	21,611,777	$	21,521,659	$	(1,976,553	)	$	(1,886,435	)
Loans covered under FDIC loss sharing agreements		2,736,102		2,870,054		3,199,998		(133,952	)		(463,896	)
Total loans held-in-portfolio	$	22,371,326	$	24,481,831	$	24,721,657	$	(2,110,505	)	$	(2,350,331	)
Loans held-for-sale:
Commercial	$	2,895	$	-	$	2,594	$	2,895		$	301
Construction		949		-		-		949			949
Legacy [1]		-		-		1,680		-			(1,680	)
Mortgage		93,166		94,877		186,578		(1,711	)		(93,412	)
Total loans held-for-sale	$	97,010	$	94,877	$	190,852	$	2,133		$	(93,842	)
Total loans	$	22,468,336	$	24,576,708	$	24,912,509	$	(2,108,372	)	$	(2,444,173	)
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.
Note: Loans from discontinued operations as of June 30, 2014 are presented as part of “Assets from discontinued operations” in the Consolidated Statement of Financial Condition.
Deposits - Ending Balances
							Variance
(In thousands)	30-Jun-14		31-Mar-14		30-Jun-13		Q2 2014 vs. Q1 2014			Q2 2014 vs. Q2 2013
Demand deposits [1]	$	6,412,632	$	7,020,844	$	6,655,895	$	(608,212	)	$	(243,263	)
Savings, NOW and money market deposits (non-brokered)		10,276,715		11,420,642		11,253,707		(1,143,927	)		(976,992	)
Savings, NOW and money market deposits (brokered)		543,032		581,562		509,415		(38,530	)		33,617
Time deposits (non-brokered)		5,790,324		6,474,430		6,299,760		(684,106	)		(509,436	)
Time deposits (brokered CDs)		1,878,449		1,768,173		2,040,651		110,276			(162,202	)
Total deposits	$	24,901,152	$	27,265,651	$	26,759,428	$	(2,364,499	)	$	(1,858,276	)
[1] Includes interest and non-interest demand bearing deposits.
Note: Deposits from discontinued operations as of June 30, 2014 are presented as part of “Liabilities from discontinued operations” in the Consolidated Statement of Financial Condition.

Popular, Inc.
Financial Supplement to Second Quarter 2014 Earnings Release
Table H - Non-Performing Assets
(Unaudited)
																Variance
(Dollars in thousands)	30-Jun-14			As a % of loans HIP by category		31-Mar-14			As a % of loans HIP by category		30-Jun-13			As a % of loans HIP by category		Q2 2014 vs. Q1 2014			Q2 2014 vs. Q2 2013
Non-accrual loans:
Commercial	$	278,133		3.4	%	$	306,929		3.1	%	$	323,155		3.3	%	$	(28,796	)	$	(45,022	)
Construction		21,456		12.0			22,464		12.7			44,878		15.1			(1,008	)		(23,422	)
Legacy [1]		8,323		5.1			11,608		5.9			28,434		10.8			(3,285	)		(20,111	)
Lease financing		2,873		0.5			3,050		0.6			4,511		0.8			(177	)		(1,638	)
Mortgage		286,320		4.3			252,021		3.8			171,822		2.6			34,299			114,498
Consumer		42,630		1.1			39,262		1.0			41,067		1.1			3,368			1,563
Total non-performing loans held-in-
portfolio, excluding covered loans [2]		639,735		3.3	%		635,334		2.9	%		613,867		2.9	%		4,401			25,868
Non-performing loans held-for-sale [3]		4,426					789					10,697					3,637			(6,271	)
Other real estate owned (“OREO”),
excluding covered OREO		139,420					136,965					158,920					2,455			(19,500	)
Total non-performing assets,
excluding covered assets		783,581					773,088					783,484					10,493			97
Covered loans and OREO		171,955					182,659					210,903					(10,704	)		(38,948	)
Total non-performing assets	$	955,536				$	955,747				$	994,387				$	(211	)	$	(38,851	)
Accruing loans past due 90 days or more [4]	$	420,251				$	409,460				$	414,055				$	10,791		$	6,196
Ratios excluding covered loans:
Non-performing loans held-in-portfolio
to loans held-in-portfolio		3.26	%				2.94	%				2.85	%
Allowance for loan losses to loans
held-in-portfolio		2.68					2.51					2.46
Allowance for loan losses to
non-performing loans, excluding loans
held-for-sale		82.26					85.40					86.14
Ratios including covered loans:
Non-performing assets to total assets		2.61	%				2.60	%				2.71	%
Non-performing loans held-in-portfolio
to loans held-in-portfolio		2.93					2.69					2.60
Allowance for loan losses to loans
held-in-portfolio		2.79					2.62					2.57
Allowance for loan losses to non-performing
loans, excluding loans held-for-sale		95.28					97.13					99.01
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.
[2] Total non-performing loans held-in-portfolio, excluding covered loans, excludes $9.5 million in discontinued operations as of June 30, 2014.
[3] Non-performing loans held-for-sale as of June 30, 2014 consisted of $582 thousand in mortgage loans, $3 million in commercial loans and $1 million in construction loans (March 31, 2014 - $789 thousand in mortgage loans; June 30, 2013 - $3 million in commercial loans, $2 million in legacy loans and $6 million in mortgage loans).
[4] 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 $124 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2014 (March 31, 2014 - $117 million; June 30, 2013 - $101 million).

Popular, Inc.
Financial Supplement to Second Quarter 2014 Earnings Release
Table I - Activity in Non-Performing Loans
(Unaudited)
Commercial loans held-in-portfolio:
		Quarter ended									Quarter ended
		30-Jun-14									31-Mar-14
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	245,931		$	60,998		$	306,929		$	186,097		$	92,956		$	279,053
Plus:
	New non-performing loans		30,068			7,726			37,794			86,045			17,156			103,201
	Advances on existing non-performing loans		-			951			951			-			6			6
Less:
	Non-performing loans transferred to OREO		(4,103	)		-			(4,103	)		(3,700	)		-			(3,700	)
	Non-performing loans charged-off		(14,377	)		(5,470	)		(19,847	)		(10,278	)		(4,092	)		(14,370	)
	Loans returned to accrual status / loan collections		(3,967	)		(15,475	)		(19,442	)		(12,233	)		(14,934	)		(27,167	)
	Loans transferred to held-for-sale		-			(16,130	)		(16,130	)		-			(30,094	)		(30,094	)
	Non-performing loans transferred to discontinued operations		-			(8,019	)		(8,019	)		-			-			-
Ending balance NPLs		$	253,552		$	24,581		$	278,133		$	245,931		$	60,998		$	306,929
Construction loans held-in-portfolio:
		Quarter ended									Quarter ended
		30-Jun-14									31-Mar-14
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	22,464		$	-		$	22,464		$	18,108		$	5,663		$	23,771
Plus:
	New non-performing loans		952			-			952			7,960			-			7,960
Less:
	Non-performing loans charged-off		(42	)		-			(42	)		(416	)		-			(416	)
	Loans returned to accrual status / loan collections		(1,918	)		-			(1,918	)		(3,188	)		(5,663	)		(8,851	)
Ending balance NPLs		$	21,456		$	-		$	21,456		$	22,464		$	-		$	22,464
Mortgage loans held-in-portfolio:
		Quarter ended									Quarter ended
		30-Jun-14									31-Mar-14
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	229,801		$	22,220		$	252,021		$	206,389		$	26,292		$	232,681
Plus:
	New non-performing loans		105,113			4,677			109,790			89,142			3,920			93,062
Less:
	Non-performing loans transferred to OREO		(2,845	)		(661	)		(3,506	)		(1,751	)		(1,195	)		(2,946	)
	Non-performing loans charged-off		(8,266	)		(649	)		(8,915	)		(6,693	)		(867	)		(7,560	)
	Loans returned to accrual status / loan collections		(61,447	)		(1,623	)		(63,070	)		(57,286	)		(5,930	)		(63,216	)
Ending balance NPLs		$	262,356		$	23,964		$	286,320		$	229,801		$	22,220		$	252,021
Legacy loans held-in-portfolio:
		Quarter ended									Quarter ended
		30-Jun-14									31-Mar-14
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	-		$	11,608		$	11,608		$	-		$	15,050		$	15,050
Plus:
	New non-performing loans		-			2,201			2,201			-			1,738			1,738
	Advances on existing non-performing loans		-			49			49			-			5			5
Less:
	Non-performing loans charged-off		-			(816	)		(816	)		-			(2,568	)		(2,568	)
	Loans returned to accrual status / loan collections		-			(2,227	)		(2,227	)		-			(2,617	)		(2,617	)
	Loans transferred to held-for-sale		-			(1,272	)		(1,272	)		-			-			-
	Non-performing loans transferred to discontinued operations		-			(1,220	)		(1,220	)		-			-			-
Ending balance NPLs		$	-		$	8,323		$	8,323		$	-		$	11,608		$	11,608
Total non-performing loans held-in-portfolio (excluding consumer loans):
		Quarter ended									Quarter ended
		30-Jun-14									31-Mar-14
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	498,196		$	94,826		$	593,022		$	410,594		$	139,961		$	550,555
Plus:
	New non-performing loans		136,133			14,604			150,737			183,147			22,814			205,961
	Advances on existing non-performing loans		-			1,000			1,000			-			11			11
Less:
	Non-performing loans transferred to OREO		(6,948	)		(661	)		(7,609	)		(5,451	)		(1,195	)		(6,646	)
	Non-performing loans charged-off		(22,685	)		(6,935	)		(29,620	)		(17,387	)		(7,527	)		(24,914	)
	Loans returned to accrual status / loan collections		(67,332	)		(19,325	)		(86,657	)		(72,707	)		(29,144	)		(101,851	)
	Loans transferred to held-for-sale		-			(17,402	)		(17,402	)		-			(30,094	)		(30,094	)
	Non-performing loans transferred to discontinued operations		-			(9,239	)		(9,239	)		-			-			-
Ending balance NPLs		$	537,364		$	56,868		$	594,232		$	498,196		$	94,826		$	593,022

Popular, Inc.
Financial Supplement to Second Quarter 2014 Earnings Release
Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)
	Quarter ended								Quarter ended								Quarter ended
	30-Jun-14								31-Mar-14								30-Jun-13
(Dollars in thousands)	Non-covered loans			Covered loans		Total			Non-covered loans			Covered loans		Total			Non-covered loans			Covered loans		Total
Balance at beginning of period	$	542,575		$	97,773	$	640,348		$	538,463		$	102,092	$	640,555		$	583,501		$	99,867	$	683,368
Provision for loan losses - Continuing operations		50,074			11,604		61,678			54,122			25,714		79,836			228,975			25,500		254,475
Provision for loan losses - Discontinued operations		-			-		-			(6,764)			-		(6,764)			(5,067)			-		(5,067)
		592,649			109,377		702,026			585,821			127,806		713,627			807,409			125,367		932,776
Net loans charged-off (recovered):
BPPR
Commercial		9,309			5,438		14,747			15,173			7,648		22,821			29,968			1,108		31,076
Construction		(615)			3,700		3,085			(1,378)			21,092		19,714			(2,294)			15,702		13,408
Lease financing		1,144			1		1,145			656			-		656			1,213			-		1,213
Mortgage		9,926			2,251		12,177			8,516			1,656		10,172			12,589			2,255		14,844
Consumer		23,571			(678)		22,893			22,983			(363)		22,620			19,928			(155)		19,773
Total BPPR		43,335			10,712		54,047			45,950			30,033		75,983			61,404			18,910		80,314
BPNA
Commercial		910			-		910			1,987			-		1,987			2,144			-		2,144
Construction		-			-		-			(176)			-		(176)			-			-		-
Legacy [1]		(1,205)			-		(1,205)			(4,209)			-		(4,209)			(1,465)			-		(1,465)
Mortgage		393			-		393			870			-		870			3,018			-		3,018
Consumer		2,768			-		2,768			4,369			-		4,369			5,143			-		5,143
Discontinued operations		-			-		-			(5,545)			-		(5,545)			8,901			-		8,901
Total BPNA		2,866			-		2,866			(2,704)			-		(2,704)			17,741			-		17,741
Total loans charged-off (recovered) - Popular, Inc.		46,201			10,712		56,913			43,246			30,033		73,279			79,145			18,910		98,055
Net write-downs [3]		-			-		-			-			-		-			(199,502)			-		(199,502)
Net write-downs related to loans transferred to discontinued operations		(20,202)			-		(20,202)			-			-		-			-			-		-
Balance at end of period	$	526,246		$	98,665	$	624,911		$	542,575		$	97,773	$	640,348		$	528,762		$	106,457	$	635,219
POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio		0.94	%				1.01	%		0.80	%				1.20	%		1.47	%				1.58	%
Provision for loan losses to net charge-offs [2]		1.08	x				1.08	x		1.10	x				1.00	x		0.69	x				0.82	x
BPPR
Annualized net charge-offs to average loans held-in-portfolio		1.09	%				1.16	%		1.16	%				1.62	%		1.55	%				1.68	%
Provision for loan losses to net charge-offs [2]		1.73	x				1.60	x		1.17	x				1.05	x		1.00	x				1.08	x
BPNA
Annualized net charge-offs (recoveries) to average loans held-in-portfolio							0.30	%							(0.19)	%							1.24	%
Provision for loan losses to net charge-offs						N.M.								N.M.								N.M.
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.
[2] Excluding provision for loan losses and net write-down related to the asset sale during the quarter ended June 30, 2013.
[3] Net write-downs for the quarter ended June 30, 2013 are related to loans sold.
N.M. - Not meaningful.

Popular, Inc.
Financial Supplement to Second Quarter 2014 Earnings Release
Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED
(Unaudited)
30-Jun-14
(Dollars in thousands)		Commercial			Construction			Legacy [3]			Mortgage			Lease financing			Consumer			Total		[2]
Specific ALLL		$	36,597		$	883		$	-		$	53,815		$	688		$	29,043		$	121,026
Impaired loans	[1]	$	317,746		$	21,094		$	2,536		$	466,243		$	2,653		$	122,106		$	932,378
Specific ALLL to impaired loans	[1]		11.52	%		4.19	%		-	%		11.54	%		25.93	%		23.79	%		12.98	%
General ALLL		$	165,912		$	4,459		$	9,343		$	84,113		$	5,271		$	136,122		$	405,220
Loans held-in-portfolio, excluding impaired loans	[1]	$	7,837,801		$	157,965		$	160,405		$	6,198,205		$	544,215		$	3,804,255		$	18,702,846
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]		2.12	%		2.82	%		5.82	%		1.36	%		0.97	%		3.58	%		2.17	%
Total ALLL		$	202,509		$	5,342		$	9,343		$	137,928		$	5,959		$	165,165		$	526,246
Total non-covered loans held-in-portfolio	[1]	$	8,155,547		$	179,059		$	162,941		$	6,664,448		$	546,868		$	3,926,361		$	19,635,224
ALLL to loans held-in-portfolio	[1]		2.48	%		2.98	%		5.73	%		2.07	%		1.09	%		4.21	%		2.68	%
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of June 30, 2014 the general allowance on the covered loans amounted to $98.7 million, while the specific reserve amounted to $8 thousand.
[3] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.
31-Mar-14
(Dollars in thousands)		Commercial			Construction			Legacy [3]			Mortgage			Lease financing			Consumer			Total		[2]
Specific ALLL		$	30,892		$	243		$	-		$	53,916		$	672		$	29,413		$	115,136
Impaired loans	[1]	$	334,975		$	22,011		$	3,710		$	458,513		$	2,455		$	124,836		$	946,500
Specific ALLL to impaired loans	[1]		9.22	%		1.10	%		-	%		11.76	%		27.37	%		23.56	%		12.16	%
General ALLL		$	141,122		$	5,059		$	13,272		$	109,047		$	9,811		$	149,128		$	427,439
Loans held-in-portfolio, excluding impaired loans	[1]	$	9,679,746		$	154,755		$	193,454		$	6,210,863		$	544,425		$	3,882,034		$	20,665,277
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]		1.46	%		3.27	%		6.86	%		1.76	%		1.80	%		3.84	%		2.07	%
Total ALLL		$	172,014		$	5,302		$	13,272		$	162,963		$	10,483		$	178,541		$	542,575
Total non-covered loans held-in-portfolio	[1]	$	10,014,721		$	176,766		$	197,164		$	6,669,376		$	546,880		$	4,006,870		$	21,611,777
ALLL to loans held-in-portfolio	[1]		1.72	%		3.00	%		6.73	%		2.44	%		1.92	%		4.46	%		2.51	%
[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, 2014 the general allowance on the covered loans amounted to $97.7 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	$ 5,705	$ 640	$ -	$ (101)	$ 16	$ (370)	$ 5,890
Impaired loans	$ (17,229)	$ (917)	$ (1,174)	$ 7,730	$ 198	$ (2,730)	$ (14,122)
General ALLL	$ 24,790	$ (600)	$ (3,929)	$ (24,934)	$ (4,540)	$ (13,006)	$ (22,219)
Loans held-in-portfolio, excluding impaired loans	$ (1,841,945)	$ 3,210	$ (33,049)	$ (12,658)	$ (210)	$ (77,779)	$ (1,962,431)
Total ALLL	$ 30,495	$ 40	$ (3,929)	$ (25,035)	$ (4,524)	$ (13,376)	$ (16,329)
Total non-covered loans held-in-portfolio	$ (1,859,174)	$ 2,293	$ (34,223)	$ (4,928)	$ (12)	$ (80,509)	$ (1,976,553)

Popular, Inc.
Financial Supplement to Second Quarter 2014 Earnings Release
Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS
(Unaudited)
30-Jun-14
Puerto Rico
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$	36,597		$	883		$	39,341		$	688		$	28,458		$	105,967
	General ALLL non-covered loans		147,638			4,308			81,058			5,271			122,024			360,299
ALLL - non-covered loans			184,235			5,191			120,399			5,959			150,482			466,266
	Specific ALLL covered loans		8			-			-			-			-			8
	General ALLL covered loans		46,685			8,996			38,941			-			4,035			98,657
ALLL - covered loans			46,693			8,996			38,941			-			4,035			98,665
Total ALLL		$	230,928		$	14,187		$	159,340		$	5,959		$	154,517		$	564,931
Loans held-in-portfolio:
	Impaired non-covered loans	$	307,762		$	21,094		$	414,636		$	2,653		$	119,604		$	865,749
	Non-covered loans held-in-portfolio, excluding impaired loans		5,991,218			114,589			5,043,936			544,215			3,296,245			14,990,203
Non-covered loans held-in-portfolio			6,298,980			135,683			5,458,572			546,868			3,415,849			15,855,952
	Impaired covered loans		2,823			2,419			-			-			-			5,242
	Covered loans held-in-portfolio, excluding impaired loans		1,743,144			80,344			867,075			-			40,297			2,730,860
Covered loans held-in-portfolio			1,745,967			82,763			867,075			-			40,297			2,736,102
Total loans held-in-portfolio		$	8,044,947		$	218,446		$	6,325,647		$	546,868		$	3,456,146		$	18,592,054
31-Mar-14
Puerto Rico
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$	30,892		$	243		$	36,322		$	672		$	29,170		$	97,299
	General ALLL non-covered loans		93,242			4,836			101,474			9,811			128,078			337,441
ALLL - non-covered loans			124,134			5,079			137,796			10,483			157,248			434,740
	Specific ALLL covered loans		-			-			-			-			-			-
	General ALLL covered loans		38,589			15,966			38,848			-			4,370			97,773
ALLL - covered loans			38,589			15,966			38,848			-			4,370			97,773
Total ALLL		$	162,723		$	21,045		$	176,644		$	10,483		$	161,618		$	532,513
Loans held-in-portfolio:
	Impaired non-covered loans	$	304,531		$	22,011		$	406,053		$	2,455		$	122,291		$	857,341
	Non-covered loans held-in-portfolio, excluding impaired loans		6,138,467			119,592			5,018,808			544,425			3,284,286			15,105,578
Non-covered loans held-in-portfolio			6,442,998			141,603		��	5,424,861			546,880			3,406,577			15,962,919
	Impaired covered loans		5,540			-			-			-			-			5,540
	Covered loans held-in-portfolio, excluding impaired loans		1,786,145			127,444			907,069			-			43,856			2,864,514
Covered loans held-in-portfolio			1,791,685			127,444			907,069			-			43,856			2,870,054
Total loans held-in-portfolio		$	8,234,683		$	269,047		$	6,331,930		$	546,880		$	3,450,433		$	18,832,973
Variance
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$	5,705		$	640		$	3,019		$	16		$	(712	)	$	8,668
	General ALLL non-covered loans		54,396			(528	)		(20,416	)		(4,540	)		(6,054	)		22,858
ALLL - non-covered loans			60,101			112			(17,397	)		(4,524	)		(6,766	)		31,526
	Specific ALLL covered loans		8			-			-			-			-			8
	General ALLL covered loans		8,096			(6,970	)		93			-			(335	)		884
ALLL - covered loans			8,104			(6,970	)		93			-			(335	)		892
Total ALLL		$	68,205		$	(6,858	)	$	(17,304	)	$	(4,524	)	$	(7,101	)	$	32,418
Loans held-in-portfolio:
	Impaired non-covered loans	$	3,231		$	(917	)	$	8,583		$	198		$	(2,687	)	$	8,408
	Non-covered loans held-in-portfolio, excluding impaired loans		(147,249	)		(5,003	)		25,128			(210	)		11,959			(115,375	)
Non-covered loans held-in-portfolio			(144,018	)		(5,920	)		33,711			(12	)		9,272			(106,967	)
	Impaired covered loans		(2,717	)		2,419			-			-			-			(298	)
	Covered loans held-in-portfolio, excluding impaired loans		(43,001	)		(47,100	)		(39,994	)		-			(3,559	)		(133,654	)
Covered loans held-in-portfolio			(45,718	)		(44,681	)		(39,994	)		-			(3,559	)		(133,952	)
Total loans held-in-portfolio		$	(189,736	)	$	(50,601	)	$	(6,283	)	$	(12	)	$	5,713		$	(240,919	)

Popular, Inc.
Financial Supplement to Second Quarter 2014 Earnings Release
Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS
(Unaudited)
30-Jun-14
U.S. Mainland
(In thousands)		Commercial			Construction			Legacy			Mortgage			Consumer			Total
Allowance for credit losses:
	Specific ALLL	$	-		$	-		$	-		$	14,474		$	585		$	15,059
	General ALLL		18,274			151			9,343			3,055			14,098			44,921
Total ALLL		$	18,274		$	151		$	9,343		$	17,529		$	14,683		$	59,980
Loans held-in-portfolio:
	Impaired loans	$	9,984		$	-		$	2,536		$	51,607		$	2,502		$	66,629
	Loans held-in-portfolio, excluding impaired loans		1,846,583			43,376			160,405			1,154,269			508,010			3,712,643
Total loans held-in-portfolio		$	1,856,567		$	43,376		$	162,941		$	1,205,876		$	510,512		$	3,779,272
31-Mar-14
U.S. Mainland
(In thousands)		Commercial			Construction			Legacy			Mortgage			Consumer			Total
Allowance for credit losses:
	Specific ALLL	$	-		$	-		$	-		$	17,594		$	243		$	17,837
	General ALLL		47,880			223			13,272			7,573			21,050			89,998
Total ALLL		$	47,880		$	223		$	13,272		$	25,167		$	21,293		$	107,835
Loans held-in-portfolio:
	Impaired loans	$	30,444		$	-		$	3,710		$	52,460		$	2,545		$	89,159
	Loans held-in-portfolio, excluding impaired loans		3,541,279			35,163			193,454			1,192,055			597,748			5,559,699
Total loans held-in-portfolio		$	3,571,723		$	35,163		$	197,164		$	1,244,515		$	600,293		$	5,648,858
Variance
(In thousands)		Commercial			Construction			Legacy			Mortgage			Consumer			Total
Allowance for credit losses:
	Specific ALLL	$	-		$	-		$	-		$	(3,120	)	$	342		$	(2,778	)
	General ALLL		(29,606	)		(72	)		(3,929	)		(4,518	)		(6,952	)		(45,077	)
Total ALLL		$	(29,606	)	$	(72	)	$	(3,929	)	$	(7,638	)	$	(6,610	)	$	(47,855	)
Loans held-in-portfolio:
	Impaired loans	$	(20,460	)	$	-		$	(1,174	)	$	(853	)	$	(43	)	$	(22,530	)
	Loans held-in-portfolio, excluding impaired loans		(1,694,696	)		8,213			(33,049	)		(37,786	)		(89,738	)		(1,847,056	)
Total loans held-in-portfolio		$	(1,715,156	)	$	8,213		$	(34,223	)	$	(38,639	)	$	(89,781	)	$	(1,869,586	)

Popular, Inc.
Financial Supplement to Second Quarter 2014 Earnings Release
Table N - Reconciliation to GAAP Financial Measures
(Unaudited)
(In thousands, except share or per share information)	30-Jun-14			31-Mar-14			30-Jun-13
Total stockholders’ equity	$	4,260,441		$	4,745,747		$	4,195,036
Less: Preferred stock		(50,160	)		(50,160	)		(50,160	)
Less: Goodwill		(461,246	)		(647,757	)		(647,757	)
Less: Other intangibles		(40,122	)		(42,625	)		(49,359	)
Total tangible common equity	$	3,708,913		$	4,005,205		$	3,447,760
Total assets	$	36,587,902		$	36,744,162		$	36,684,594
Less: Goodwill		(461,246	)		(647,757	)		(647,757	)
Less: Other intangibles		(40,122	)		(42,625	)		(49,359	)
Total tangible assets	$	36,086,534		$	36,053,780		$	35,987,478
Tangible common equity to tangible assets		10.28	%		11.11	%		9.58	%
Common shares outstanding at end of period		103,472,979			103,455,535			103,276,131
Tangible book value per common share	$	35.84		$	38.71		$	33.38
(In thousands)	30-Jun-14			31-Mar-14			30-Jun-13
Common stockholders’ equity	$	4,210,281		$	4,695,587		$	4,144,876
Less: Unrealized losses (gains) on available-for-sale securities, net of tax[1]		(4,071	)		22,255			(23,990	)
Less: Disallowed deferred tax assets[2]		(636,081	)		(624,364	)		(647,010	)
Less: Disallowed goodwill and other intangible assets, net of deferred tax liability		(447,182	)		(639,158	)		(650,452	)
Less: Aggregate adjusted carrying value of all non-financial equity investments		(1,381	)		(1,499	)		(1,357	)
Add: Adjustment of pension and postretirement benefit plans and unrealized gains
(losses) on cash flow hedges, net of tax[3]		103,263			103,524			216,823
Total Tier 1 common equity	$	3,224,829		$	3,556,345		$	3,038,890
Tier 1 common equity to risk-weighted assets		13.51	%		15.07	%		13.04	%
[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 $159 million of the Corporation’s $789 million of net deferred tax assets included as “Other assets” in the consolidated statement of financial condition at June 30, 2014 (March 31, 2014 - $154 million and $774 million, respectively; June 30, 2013 - $178 million and $864 million, respectively), were included without limitation in regulatory capital pursuant to the risk-based capital guidelines, while approximately $636 million of such assets at June 30, 2014 (March 31, 2014 - $624 million; June 30, 2013 - $647 million) exceeded the limitation imposed by these guidelines and, as “disallowed deferred tax assets”, were deducted in arriving at Tier 1 capital. The remaining $(6) million of the Corporation’s other net deferred tax assets at June 30, 2014 (March 31, 2014 - $(4) million; June 30, 2013 - $39 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 liabilities 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 Second Quarter 2014 Earnings Release
Table O - Financial Information - Westernbank Covered Loans
(Unaudited)
Revenues
		Quarters ended
(In thousands)		30-Jun-14			31-Mar-14			Variance
Interest income on covered loans		$	82,975		$	81,098		$	1,877
FDIC loss share expense:
Amortization of indemnification asset			(72,095	)		(48,946	)		(23,149	)
80% mirror accounting on credit impairment losses [1]			10,372			15,090			(4,718	)
80% mirror accounting on reimbursable expenses			11,085			12,745			(1,660	)
80% mirror accounting on recoveries on covered assets,
including rental income on OREOs,
subject to reimbursement to the FDIC			(3,557	)		(4,392	)		835
Change in true-up payment obligation			(1,206	)		1,168			(2,374	)
Other			140			129			11
	Total FDIC loss share expense		(55,261	)		(24,206	)		(31,055	)
Total revenues			27,714			56,892			(29,178	)
Provision for loan losses			11,604			25,714			(14,110	)
Total revenues less provision for loan losses		$	16,110		$	31,178		$	(15,068	)
[1] Reductions in expected cash flows for ASC 310-30 loans, which may impact the provision for loan losses, may consider reductions in both principal and interest cash flow expectations. The amount covered under the FDIC loss sharing agreements for interest not collected from borrowers is limited under the agreements (approximately 90 days); accordingly, these amounts are not subject fully to the 80% mirror accounting.
Non-personnel operating expenses
		Quarters ended
(In thousands)		30-Jun-14			31-Mar-14			Variance
Professional fees		$	4,726		$	4,798		$	(72	)
OREO expenses			5,249			4,029			1,220
Other operating expenses			2,868			4,796			(1,928	)
Total operating expenses		$	12,843		$	13,623		$	(780	)
Expense reimbursements from the FDIC may be recorded with a time lag, since these are claimed upon the event of loss or charge-off of the loans which may occur in a subsequent period.
Quarterly average assets
		Quarters ended
(In millions)		30-Jun-14			31-Mar-14			Variance
Covered loans		$	2,811		$	2,934		$	(123	)
FDIC loss share asset			792			899			(107	)

Activity in the carrying amount and accretable yield of covered loans accounted for under ASC 310-30
		Quarters ended
		30-Jun-14						31-Mar-14
(In thousands)		Accretable yield			Carrying amount of loans			Accretable yield			Carrying amount of loans
Beginning balance		$	1,218,212		$	2,733,122		$	1,309,205		$	2,827,947
Accretion			(79,863	)		79,863			(79,118	)		79,118
Changes in expected cash flows			142,409			-			(11,875	)		-
Collections / charge-offs			-			(202,321	)		-			(173,943	)
Ending balance			1,280,758			2,610,664			1,218,212			2,733,122
	Allowance for loan losses - ASC 310-30 covered loans		-			(90,892	)		-			(90,371	)
Ending balance, net of allowance for loan losses		$	1,280,758		$	2,519,772		$	1,218,212		$	2,642,751
Activity in the carrying amount of the FDIC indemnity asset
					Quarters ended
(In thousands)					30-Jun-14						31-Mar-14
Balance at beginning of period					$	833,721					$	948,608
Amortization						(72,095	)					(48,946	)
Credit impairment losses to be covered under loss sharing agreements						10,372						15,090
Reimbursable expenses to be covered under loss sharing agreements						11,085						12,745
Net payments to (from) FDIC under loss sharing agreements						(31,530	)					(81,327	)
Other adjustments attributable to FDIC loss sharing agreements						-						(12,449	)
Balance at end of period					$	751,553					$	833,721
Activity in the remaining FDIC loss share asset amortization
					Quarters ended
(In thousands)					30-Jun-14						31-Mar-14
Balance at beginning of period					$	71,634					$	103,691
Amortization						(72,095	)					(48,946	)
Impact of lower projected losses						106,400						16,889
Balance at end of period					$	105,939					$	71,634

POPULAR, INC.
Financial Supplement to Second Quarter 2014 Earnings Release
Table P - Financial Information from Discontinued Operations
(Unaudited)
Assets and Liabilities from Discontinued Operations
(In thousands)														30-Jun-14
Cash													$	18,923
Loans held-for-sale														1,783,998
Premises and equipment, net														17,553
Other assets														7,908
Total assets													$	1,828,382 *
Deposits													$	2,058,309
Short-term borrowings														2,998
Other liabilities														18,435
Total liabilities													$	2,079,742 *
Net liabilities													$	(251,360	)
* Assets and liabilities from discontinued operations are mostly held for sale
Components of Net (Loss) Income from Discontinued Operations
		Quarters ended									Six months ended
(In thousands)		30-Jun-14			31-Mar-14			30-Jun-13			30-Jun-14			30-Jun-13
Net interest income	$	19,092		$	21,797		$	21,308		$	40,889		$	42,977
Provision (reversal) for loan losses		-			(6,764	)		(5,067	)		(6,764	)		(7,860	)
Non-interest income		9,388			10,533			4,645			19,921			8,392
Personnel costs		12,117			8,852			8,320			20,969			16,728
Net occupancy expenses		2,845			4,331			3,049			7,176			6,030
Professional fees		5,903			2,793			2,949			8,696			5,709
Goodwill impairment charge		186,511			-			-			186,511			-
Other operating expenses		2,833			3,213			1,404			6,046			5,728
Net (loss) income from discontinued operations	$	(181,729	)	$	19,905		$	15,298		$	(161,824	)	$	25,034

POPULAR, INC.
Financial Supplement to Second Quarter 2014 Earnings Release
Table Q - Restructuring Charges
(Unaudited)
Restructuring Charges
		Quarter ended
(In thousands)		30-Jun-14
Personnel costs	$	3,630
Net occupancy expenses		271
Equipment expenses		190
Professional fees		448
Other operating expenses		35
Total restructuring costs	$	4,574

CONTACT:
Popular, Inc.
Investor Relations:
Brett Scheiner, 212-417-6721
Investor Relations Officer
or
Media Relations:
Teruca Rullán, 787-281-5170
Mobile: 917-679-3596
Senior Vice President, Corporate Communications