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

Exhibit 99.1

Popular, Inc. Announces First Quarter Financial Results

• Reports net income of $74.8 million for the quarter and adjusted net income of $90.3 million
• Net interest margin of 4.57% in Q1 2015 vs. adjusted net interest margin of 4.70% in Q4 2014
• On February 27, 2015, completed acquisition of certain assets and assumption of all deposits (other than certain brokered deposits) from the FDIC as receiver for Doral Bank
• Credit Quality (excluding covered loans):
  • Non-performing loans held-in-portfolio (NPLs) increased by $34.5 million from Q4 2014; Quarter over Quarter increase includes $16.6 million attributable to loans previously serviced by Doral and $11.3 million in acquired loans that became NPLs; NPLs to loans ratio at 3.2% vs. 3.3% in Q4 2014;
  • Net charge-offs (NCOs) were 0.72% of average loans held-in-portfolio vs. 1.04% in Q4 2014; NCOs decreased by $14.3 million quarter over quarter;
  • Allowance for loan losses of $516.2 million vs. $519.7 million in Q4 2014; Allowance for loan losses to loans held-in-portfolio at 2.46% vs. 2.68% in Q4 2014.
• Common Equity Tier 1 ratio of 15.82% and Tangible Book Value per Share of $36.33 at March 31, 2015

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--April 27, 2015--Popular, Inc. (the “Corporation” or “Popular”) (NASDAQ:BPOP) reported net income of $74.8 million and adjusted net income of $90.3 million for the quarter ended March 31, 2015, compared to net income of $48.9 million and an adjusted net income of $76.8 million for the quarter ended December 31, 2014.

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

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

Significant events

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

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

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

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

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

	Quarter ended
(Unaudited)	31-Mar-15
(In thousands)	Actual Results (US GAAP)			BPNA Reorganization [2]			Doral Acquisition [3]			Adjusted Results (Non-GAAP)
Net interest income	$	343,195		$	-		$	-		$	343,195
Provision for loan losses – non-covered loans		29,711			-			-			29,711
Provision (reversal of provision) for loan losses – covered loans [1]		10,324			-			-			10,324
Net interest income (expense) after provision for loan losses		303,160			-			-			303,160
Net loss on sale of loans, including valuation adjustments on loans held-for-sale		(79	)		-			-			(79	)
FDIC loss share income		4,139			-			-			4,139
Other non-interest income		111,175			-			1,121			110,054
Personnel costs		116,458			-			2,432			114,026
Net occupancy expenses		21,709						643			21,066
Professional fees		75,528			-			6,997			68,531
Restructuring costs		10,753			10,753			-			-
Other operating expenses		87,894			-			-			87,894
Income from continuing operations before income tax		106,053			(10,753	)		(8,951	)		125,757
Income tax expense		32,568			-			(2,896	)		35,464
Income from continuing operations	$	73,485		$	(10,753	)	$	(6,055	)	$	90,293
Income from discontinued operations, net of tax	$	1,341		$	1,341		$	-		$	-
Net income	$	74,826		$	(9,412	)	$	(6,055	)	$	90,293

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

[2] Represents restructuring charges associated with the reorganization of BPNA.

[3] Includes $1.1 million on fees charged for services provided to the alliance co-bidders, including loan servicing and other interim services, personnel costs related to Doral employees retained on a temporary basis and non-recurring incentive compensation for an aggregate of $2.4 million, building rent expense of Doral’s administrative offices for $0.6 million and professional and legal fees directly associated with the Doral acquisition for $7.0 million.

	Quarter ended
(Unaudited)	31-Dec-14
(In thousands)	Actual Results (US GAAP)			BPNA Reorganization [2]			Other Adjustments			Adjusted Results (Non-GAAP)
Net interest income	$	326,861		$	(18,591	)	$	-		$	345,452
Provision for loan losses – non-covered loans		51,637			878			-			50,759
Reversal of provision for loan losses – covered loans [1]		(3,646	)		-			-			(3,646	)
Net interest income after provision for loan losses		278,870			(19,469	)		-			298,339
Net gain on sale of loans, including valuation adjustments on loans held-for-sale		10,946			1,684			-			9,262
FDIC loss share expense		(18,693	)		-			-			(18,693	)
Other non-interest income		111,111			-			-			111,111
Personnel costs		110,736			-		2,974[3]				107,762
Net occupancy expenses		23,877			-		1,895[4]				21,982
Professional fees		80,383			-			-			80,383
Loss on early extinguishment of debt		532			532			-			-
Restructuring costs		13,861			13,861			-			-
Other operating expenses		100,617			-			-			100,617
Income from continuing operations before income tax		52,228			(32,178	)		(4,869	)		89,275
Income tax expense		12,472			-			-			12,472
Income from continuing operations	$	39,756		$	(32,178	)	$	(4,869	)	$	76,803
Income from discontinued operations, net of tax	$	9,086		$	9,086		$	-		$	-
Net income	$	48,842		$	(23,092	)	$	(4,869	)	$	76,803

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

[2] Includes loss on the refinancing of structured repos for $18.6 million recorded as interest expense, impact on provision for loan losses related to NPL sales of $878 thousand, gain on bulk sales of NPLs of $1.7 million and restructuring cost of $13.9 million.

[3] Represents the impact of the compensation package granted upon separation of an officer of the Corporation equal to approximately $3.0 million.

[4] Represents the net loss on the early cancellation of a lease at BPNA of $1.9 million.

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

Net interest income

• For the quarter ended March 31, 2015, the Corporation had a net interest income of $343.2 million, compared to an adjusted net interest income of $345.5 million for the fourth quarter of 2014, which excludes the impact of the $18.6 million expense related to the refinancing of structured repos at PCB. The net interest margin was 4.57%, a decrease of 13 basis points from the adjusted previous quarter’s net interest margin. The impact of having two less days in the quarter ended March 31, 2015 resulted in a reduction of approximately $4.9 million in net interest income when compared to the previous quarter.
  
  The decrease of $2.3 million in the adjusted net interest income is mainly related to:
  • A decrease in income from commercial loans of $1.0 million, or 4 basis points, due to the impact of fewer days in the quarter and lower interest collected on resolution of non-performing loans at BPNA, partially offset by higher volume and yields from Doral Bank.
  • A decrease of $3.9 million, or 17 basis points, on income from covered loans due to a lower volume of loans as part of the normal portfolio run-off and lower yields, reflecting the impact of the quarterly recast process. Refer to Table O for a schedule of the accretable yield for covered loans accounted for under ASC 310-30.
    
    These negative variances in net interest income were offset in part by:
  • Higher interest income from construction loans by $2.3 million due to higher volume related to loans acquired from Doral Bank in the US.
  • An increase in income from mortgage loans of $1.8 million mostly due to higher volumes in Puerto Rico related to the Doral Acquisition
• The Doral Acquisition on February 27, 2015 added approximately $9.8 million in net interest income for the first quarter of 2015. This was comprised mainly of interest income of $11.0 million from loans and investments with an average yield of 6.50% and interest expense of $1.3 million from deposits with an average yield of 0.91%.

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

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

Non-interest income

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

• Favorable variance in the FDIC loss-share expense by $22.8 million driven by a positive variance in the mirror accounting on credit impairment losses by $11.5 million, a positive variance in the fair value of the true-up payment obligation by $7.0 million, and higher mirror accounting on reimbursable expenses by $2.8 million. See additional details about covered portfolio and FDIC indemnity asset in Table O.
• Favorable variance in adjustments to indemnity reserves by $8.8 million due to lower provision on loans previously sold with recouse and the reversal of $3.2 million in the indemnity reserve related to the bulk sale of non-performing assets completed during the first quarter of 2013.
• Higher mortgage banking activities income by $4.1 million mainly due to higher mortgage servicing fees by $2.9 million and a favorable variance in the valuation adjustment on mortgage servicing rights of $1.3 million at the BPPR segment. Refer to Table F for additional details on mortgage banking activities.

These positive variances were partially offset by:

• Unfavorable variance in net gain/(loss) on sale of loans, including valuation adjustments on loans held-for-sale by $9.3 million mostly at BPNA due to individual commercial NPLs sales during the fourth quarter of 2014, as part of workout activities.
• Lower other service fees by $7.5 million mostly at the BPPR segment due to lower contingent insurance commission revenues, which were realized during the fourth quarter of 2014, lower credit card fees and lower fees from the sale and administration of investment products due to lower transaction volumes in the first quarter of 2015. Refer to Table F for a breakdown of other service fees.
• Negative variance in other operating income by $5.0 million mainly due to lower aggregated net earnings from investments accounted under the equity method.

Refer to Table B for further details.

Financial Impact of FDIC-Assisted Transaction
(Unaudited)	Quarters ended
(In thousands)	31-Mar-15		31-Dec-14			31-Mar-14
Income Statement
Interest income on covered loans	$	57,431	$	61,285		$	81,098
Total FDIC loss share income (expense)		4,139		(18,693	)		(24,206	)
Provision for loan losses		10,324		(3,646	)		25,714
Total revenues less provision for loan losses	$	51,246	$	46,238		$	31,178
Balance Sheet
Loans covered under loss-sharing agreements with FDIC	$	2,456,552	$	2,542,662		$	2,870,054
FDIC loss share asset		409,844		542,454			833,721
FDIC true-up payment obligation		125,140		129,304			126,345

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

Operating expenses

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

• Lower professional fees by $11.9 million, mainly due to legal fees incurred in connection with the FDIC arbitration proceedings and other corporate matters during the previous quarter.
• Lower other operating taxes by $5.8 million, mainly due to elimination of the Puerto Rico gross tax and lower municipal license tax, partially offset by an increase of personal property tax.
• Lower other operating expenses by $4.5 million, mainly due to lower sundry losses and legal reserves.
• Lower FDIC deposit insurance by $2.9 million, mainly driven by improvements in the asset quality and earnings trends.
• Lower business promotion by $2.7 million, mainly as a result of lower seasonal advertising expense at BPPR.
• Lower net occupancy expense by $0.9 million, mainly at BPNA as a result of lower rent expense.

These decreases were partially offset by:

• Higher personnel cost by $6.3 million, mainly at BPPR due to pension and postretirement expense related to adjustments to the mortality table and discount rate used for actuarial assumptions; higher incentives and salaries and higher social security and unemployment expenses as a portion of these taxes had reached their limit for the fourth quarter of 2014.
• Higher other real estate owned expenses by $3.1 million, mainly at BPPR due to higher property taxes and higher write-downs.

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

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

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

Income taxes

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

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

Credit Quality

The following table presents information on non-performing assets:

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

Credit Quality

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

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

• Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $64.5 million, as the fourth quarter of 2014 included the addition of the previously disclosed $75.0 million public sector borrower. Excluding this impact from the prior quarter, NPLs inflows increased by $10.6 million, mainly due to mortgage inflows related to the addition to NPL status of $16.6 million of loans previously serviced by Doral Bank under a servicing agreement that required Doral to advance principal and interest payments irrespective of borrower delinquencies.
• Non-performing loans held-in-portfolio increased by $34.5 million during the quarter ended March 31, 2015, of which $27.9 million were attributable to Doral Bank’s failure and acquisition. BPPR mortgage NPLs includes the aforementioned $16.6 million of loans previously serviced by Doral, and the BPNA segment includes $7.4 million of acquired commercial loans placed in NPL status following the acquisition. At March 31, 2015, NPLs represented 3.2% of total loans held-in-portfolio, compared to 3.3% in December 31, 2014. The decrease was due mainly to the impact of the Doral portfolio on the total loan base.
• Net charge-offs, excluding write-downs/(recoveries), totaled $35.9 million, or an annualized 0.72% of average non-covered loans held-in-portfolio in the first quarter of 2015, compared to $50.2 million, or 1.04%, in the fourth quarter of 2014. The decrease of $14.3 million was primarily driven by a decline of $15.8 million in the BPPR segment, mainly lower commercial NCOs. Refer to Table J for further information on net charge-offs and related ratios.
• The allowance for loan losses remained essentially flat decreasing by $3.5 million from the fourth quarter of 2014, mainly driven by the BPPR commercial portfolio. The general and specific reserves related to non-covered loans totaled $377.2 million and $139.0 million, respectively, at quarter-end, compared with $379.6 million and $140.1 million, respectively, as of December 31, 2014. The ratio of the allowance for loan losses to loans held-in-portfolio decreased to 2.46% in the first quarter of 2015, compared to 2.68% in the previous quarter, mostly due to impact of the Doral portfolio on the total loan base. Excluding Doral Bank portfolio, allowance to loans ratio was 2.66%.
• The ratio of the allowance for loan losses to NPLs held-in-portfolio stood at 77.6%, compared to 82.4% in the previous quarter. Excluding the impact of Doral related NPLs, ALLL to NPLs ratio remained relatively flat at 81.0%.
• The provision for loan losses for the first quarter of 2015 amounted to $29.7 million, a decline of $21.9 million from the previous quarter stemming from lower NCO activity in the BPPR segment, as mentioned above. The provision for the first quarter of 2015 represented 82.8% of net charge-offs.

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

BPPR Segment

• Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $70.1 million from the fourth quarter of 2014, mostly driven by lower commercial inflows of $85.3 million, primarily associated with the addition of a $75.0 million public sector borrower in the prior quarter. This decrease was in part offset by an increase in the mortgage NPL inflows of $15.4 million from the previous quarter, mainly driven by the addition of $16.6 million of loans previously serviced by Doral, as mentioned above and $2.1 million of acquired loans. Excluding this impact, mortgage NPL inflows decreased by $3.3 million.
• Total non-performing loans held-in-portfolio increased by $26.6 million from the fourth quarter of 2014, mainly driven by higher mortgage NPLs of $24.5 million. Mortgage NPLs include the above mentioned $16.6 million impact of loans previously serviced by Doral. At March 31, 2015, NPLs to total loans held-in-portfolio was unchanged at 3.8%, compared to the fourth quarter of 2014.
• Net charge-offs were $36.8 million, decreasing by $15.8 million from the fourth quarter of 2014, reflecting lower NCOs in all portfolios, including commercial, construction and consumer NCOs by $9.1 million, $2.6 million and $2.3 million, respectively. The ratio of net charge-offs to average loans held-in-portfolio decreased to 0.92% on an annualized basis from 1.33% in the previous quarter.
• The allowance for loan losses was $484.3 million, a decrease of $4.9 million from the fourth quarter of 2014. The allowance for loan losses was 2.9% of loans held-in-portfolio, compared to 3.1% in the previous quarter. The ratio of the allowance for loan losses to NPLs held-in-portfolio stood at 75.9%, compared to 80.0% in the previous quarter. Excluding the impact of Doral related NPLs, ALLL to NPLs ratio remained relatively flat at 78.4%.
• The provision for loan losses for the first quarter of 2015 amounted to $31.9 million, decreasing by $20.3 million from the previous quarter, predominantly driven by the aforementioned decline in NCO activity. The provision for the first quarter represented 86.8% of net charge-offs.

BPNA Segment

• Total NPLs held-in-portfolio increased by $7.8 million of which $7.4 million were related to commercial loans acquired in the Doral Acquisition. NPL to total loans held-in-portfolio was 0.61%, compared to 0.55% in the fourth quarter of 2014. Excluding Doral loans that were placed in NPL status following the acquisition, NPL to loans ratio was 0.54%.
• Net charge-offs, excluding write-downs related to loans transfered to held for sale amounted to recoveries of $0.9 million, compared to recoveries of $2.3 million in the fourth quarter of 2014. The ratio of net charge-offs to average loans held-in-portfolio was a recovery of 9 basis points on an annualized basis, compared to a recovery of 27 basis points in the previous quarter.
• The allowance for loan losses increased slightly to $31.9 million from $30.6 million in the previous quarter, mainly due to loan growth. The allowance for loan losses as a percentage of loans held-in-portfolio decreased to 0.72% from 0.88% in the previous quarter. The ratio of allowance for loan losses to NPLs held-in-portfolio stood at 118.6%, compared to 160.1% in the previous quarter. The decrease in allowance coverage ratios was mainly related to the impact of the Doral portfolio. Excluding Doral, the previously referred ratios stood at 0.90% and 167.1%, respectively.
• The provision for loan losses in the first quarter of 2015 amounted to a provision release of $2.2 million, primarily due to a $2.7 million recovery from bulk loan sales.

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

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

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

• An increase of $485 million in money market investments due mostly to increases in liquidity at BPPR of $256 million and BPNA of $229 million.
• An increase of $63 million in investment securities available-for-sale mainly due to a $125 million increase at BPPR mostly from MBS and government securities, which were partially offset by a decrease of $62 million at BPNA due to sales of agency securities and CMOs.
  
  These increases were partially offset by:

• A decrease of $133 million in the FDIC loss share asset mainly due to amortization, collections from the FDIC and recoveries on covered assets subject to reimbursement to the FDIC. Refer to Table O for the activity in the carrying amount of the FDIC indemnity asset
• A decrease of $86 million in loans covered under loss sharing agreements with the FDIC due to the normal run-off of the portfolio.

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

• An increase of $439 million in deposits from both BPPR and BPNA. Refer to Table G for additional information on deposits.
  
  offset by:

• A decrease of $139 million in federal funds purchased and assets sold under agreements to repurchase, largely at BPNA by $215 million, which was partially offset by an increase at BPPR of $76 million.

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

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

Forward-Looking Statements

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

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

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

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

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

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

Popular, Inc.

Financial Supplement to First Quarter 2015 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER

Table E - Intentionally Left Blank (Consolidated Average Balances and Yield / Rate Analysis - YTD)

Table F - Mortgage Banking Activities & Other Service Fees

Table G - Loans and Deposits

Table H - Non-Performing Assets

Table I - Activity in Non-Performing Loans

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

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

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

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

Table N - Reconciliation to GAAP Financial Measures

Table O - Financial Information - Westernbank Covered Loans

Table P - Restructuring Charges

POPULAR, INC.
Financial Supplement to First Quarter 2015 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
	Quarters ended
	31-Mar-15	31-Dec-14	31-Mar-14
Basic EPS from continuing operations	$ 0.71	$ 0.38	$ 0.64
Basic EPS from discontinued operations	$ 0.01	$ 0.09	$ 0.19
Total Basic EPS	$ 0.72	$ 0.47	$ 0.83
Diluted EPS from continuing operations	$ 0.71	$ 0.37	$ 0.64
Diluted EPS from discontinued operations	$ 0.01	$ 0.09	$ 0.19
Total Diluted EPS	$ 0.72	$ 0.46	$ 0.83
Average common shares outstanding	102,939,928	102,859,416	102,799,752
Average common shares outstanding - assuming dilution	103,136,309	103,166,349	103,198,102
Common shares outstanding at end of period	103,486,927	103,476,847	103,455,535
Market value per common share	$34.39	$34.05	$30.99
Market capitalization - (In millions)	$3,559	$3,523	$3,206
Return on average assets	0.90%	0.58%	0.97%
	.
Return on average common equity	7.02%	4.41%	7.39%
Net interest margin [1]	4.57%	4.70%	4.70%
Common equity per share	$41.81	$40.76	$45.39
Tangible common book value per common share (non-GAAP)	$36.33	$35.89	$38.71
Tangible common equity to tangible assets (non-GAAP)	10.72%	11.39%	11.11%
Tier 1 capital [2]	16.19%	18.13%	19.35%
Total capital [2]	18.79%	19.41%	20.62%
Tier 1 leverage [2]	11.84%	11.94%	13.07%
Common equity Tier 1 capital [2] [3]	15.82%	15.89%	15.07%

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

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

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

POPULAR, INC.
Financial Supplement to First Quarter 2015 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
	Quarters ended						Variance			Quarter ended			Variance
(In thousands, except per share information)	31-Mar-15			31-Dec-14			Q1 2015 vs. Q4 2014			31-Mar-14			Q1 2015 vs. Q1 2014
Interest income:
Loans	$	355,631		$	357,570		$	(1,939	)	$	377,602		$	(21,971	)
Money market investments		1,446			1,113			333			973			473
Investment securities		30,301			30,361			(60	)		35,127			(4,826	)
Trading account securities		2,696			2,891			(195	)		5,257			(2,561	)
Total interest income		390,074			391,935			(1,861	)		418,959			(28,885	)
Interest expense:
Deposits		25,864			25,473			391			26,858			(994	)
Short-term borrowings		1,734			20,489			(18,755	)		9,040			(7,306	)
Long-term debt		19,281			19,112			169			31,890			(12,609	)
Total interest expense		46,879			65,074			(18,195	)		67,788			(20,909	)
Net interest income		343,195			326,861			16,334			351,171			(7,976	)
Provision for loan losses - non-covered loans		29,711			51,637			(21,926	)		54,122			(24,411	)
Provision (recovery of provision) for loan losses - covered loans		10,324			(3,646	)		13,970			25,714			(15,390	)
Net interest income after provision for loan losses		303,160			278,870			24,290			271,335			31,825
Service charges on deposit accounts		39,017			39,456			(439	)		39,359			(342	)
Other service fees		53,626			61,140			(7,514	)		52,818			808
Mortgage banking activities		12,852			8,747			4,105			3,678			9,174
Net gain (loss) and valuation adjustments on investment securities		-			893			(893	)		-			-
Trading account profit (loss)		414			586			(172	)		1,977			(1,563	)
Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale		(79	)		10,946			(11,025	)		4,393			(4,472	)
Adjustments (expense) to indemnity reserves on loans sold		(4,526	)		(13,348	)		8,822			(10,347	)		5,821
FDIC loss share income (expense)		4,139			(18,693	)		22,832			(24,206	)		28,345
Other operating income		9,792			13,637			(3,845	)		28,360			(18,568	)
Total non-interest income		115,235			103,364			11,871			96,032			19,203
Operating expenses:
Personnel costs
Salaries		72,394			71,899			495			69,038			3,356
Commissions, incentives and other bonuses		18,458			18,439			19			13,099			5,359
Pension, postretirement and medical insurance		12,013			6,901			5,112			8,701			3,312
Other personnel costs, including payroll taxes		13,593			13,497			96			13,463			130
Total personnel costs		116,458			110,736			5,722			104,301			12,157
Net occupancy expenses		21,709			23,877			(2,168	)		21,360			349
Equipment expenses		13,411			13,091			320			11,412			1,999
Other taxes		8,574			14,343			(5,769	)		13,663			(5,089	)
Professional fees		75,528			80,383			(4,855	)		66,999			8,529
Communications		6,176			6,119			57			6,685			(509	)
Business promotion		10,813			13,530			(2,717	)		11,386			(573	)
FDIC deposit insurance		6,398			9,338			(2,940	)		10,978			(4,580	)
Loss on early extinguishment of debt		-			532			(532	)		-			-
Other real estate owned (OREO) expenses		23,069			20,016			3,053			6,440			16,629
Credit and debit card processing, volume, interchange and other expenses		4,821			5,093			(272	)		5,196			(375	)
Other operating expenses		12,528			17,004			(4,476	)		17,153			(4,625	)
Amortization of intangibles		2,104			2,083			21			2,026			78
Restructuring costs		10,753			13,861			(3,108	)		-			10,753
Total operating expenses		312,342			330,006			(17,664	)		277,599			34,743
Income from continuing operations before income tax		106,053			52,228			53,825			89,768			16,285
Income tax expense		32,568			12,472			20,096			23,264			9,304
Income from continuing operations		73,485			39,756			33,729			66,504			6,981
Income from discontinued operations, net of tax		1,341			9,086			(7,745	)		19,905			(18,564	)
Net income	$	74,826		$	48,842		$	25,984		$	86,409		$	(11,583	)
Net income applicable to common stock	$	73,895		$	47,911		$	25,984		$	85,478		$	(11,583	)
Net income per common share - basic:
Net income from continuing operations	$	0.71		$	0.38		$	0.33		$	0.64		$	0.07
Net income from discontinued operations	$	0.01		$	0.09		$	(0.08	)	$	0.19		$	(0.18	)
Net income per common share - basic	$	0.72		$	0.47		$	0.25		$	0.83		$	(0.11	)
Net income per common share - diluted:
Net income from continuing operations	$	0.71		$	0.37		$	0.34		$	0.64		$	0.07
Net income from discontinued operations	$	0.01		$	0.09		$	(0.08	)	$	0.19		$	(0.18	)
Net income per common share - diluted	$	0.72		$	0.46		$	0.26		$	0.83		$	(0.11	)

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

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

Popular, Inc.

Financial Supplement to First Quarter 2015 Earnings Release

Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE

[THIS PAGE INTENTIONALLY LEFT BLANK]

Popular, Inc.

Financial Supplement to First Quarter 2015 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)

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

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table G - Loans and Deposits
(Unaudited)
Loans - Ending Balances
							Variance
(In thousands)	31-Mar-15		31-Dec-14		31-Mar-14		Q1 2015 vs. Q4 2014			Q1 2015 vs. Q1 2014
Loans not covered under FDIC loss sharing agreements:
Commercial	$	8,653,561	$	8,134,267	$	10,014,721	$	519,294		$	(1,361,160	)
Construction		690,728		251,820		176,766		438,908			513,962
Legacy [1]		77,675		80,818		197,164		(3,143	)		(119,489	)
Lease financing		581,119		564,389		546,880		16,730			34,239
Mortgage		7,189,227		6,502,886		6,669,376		686,341			519,851
Consumer		3,820,620		3,870,271		4,006,870		(49,651	)		(186,250	)
Total non-covered loans held-in-portfolio	$	21,012,930	$	19,404,451	$	21,611,777	$	1,608,479		$	(598,847	)
Loans covered under FDIC loss sharing agreements		2,456,552		2,542,662		2,870,054		(86,110	)		(413,502	)
Total loans held-in-portfolio	$	23,469,482	$	21,947,113	$	24,481,831	$	1,522,369		$	(1,012,349	)
Loans held-for-sale:
Commercial	$	8,240	$	309	$	-	$	7,931		$	8,240
Legacy [1]		-		319		-		(319	)		-
Mortgage		152,362		100,166		94,877		52,196			57,485
Consumer		-		5,310		-		(5,310	)		-
Total loans held-for-sale	$	160,602	$	106,104	$	94,877	$	54,498		$	65,725
Total loans	$	23,630,084	$	22,053,217	$	24,576,708	$	1,576,867		$	(946,624	)
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.
Deposits - Ending Balances
							Variance
(In thousands)	31-Mar-15		31-Dec-14		31-Mar-14		Q1 2015 vs. Q4 2014			Q1 2015 vs. Q1 2014
Demand deposits [1]	$	7,163,635	$	6,606,060	$	7,020,844	$	557,575		$	142,791
Savings, NOW and money market deposits (non-brokered)		10,932,870		10,320,782		11,420,642		612,088			(487,772	)
Savings, NOW and money market deposits (brokered)		409,113		406,248		581,562		2,865			(172,449	)
Time deposits (non-brokered)		7,243,414		5,960,401		6,474,430		1,283,013			768,984
Time deposits (brokered CDs)		1,524,657		1,514,044		1,768,173		10,613			(243,516	)
Total deposits	$	27,273,689	$	24,807,535	$	27,265,651	$	2,466,154		$	8,038
[1] Includes interest and non-interest bearing demand deposits.

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table H - Non-Performing Assets
(Unaudited)
													Variance
(Dollars in thousands)	31-Mar-15		As a % of loans HIP by category		31-Dec-14		As a % of loans HIP by category		31-Mar-14		As a % of loans HIP by category		Q1 2015 vs. Q4 2014			Q1 2015 vs. Q1 2014
Non-accrual loans:
Commercial	$	274,438	3.2	%	$	260,225	3.2	%	$	306,929	3.1	%	$	14,213		$	(32,491	)
Construction		13,214	1.9			13,812	5.5			22,464	12.7			(598	)		(9,250	)
Legacy [1]		2,288	2.9			1,545	1.9			11,608	5.9			743			(9,320	)
Lease financing		2,506	0.4			3,102	0.5			3,050	0.6			(596	)		(544	)
Mortgage		328,615	4.6			304,913	4.7			252,021	3.8			23,702			76,594
Consumer		43,892	1.1			46,886	1.2			39,262	1.0			(2,994	)		4,630
Total non-performing loans held-in-
portfolio, excluding covered loans		664,953	3.2	%		630,483	3.3	%		635,334	2.9	%		34,470			29,619
Non-performing loans held-for-sale [2]		8,404				18,899				789				(10,495	)		7,615
Other real estate owned (“OREO”),
excluding covered OREO		128,170				135,500				136,965				(7,330	)		(8,795	)
Total non-performing assets,
excluding covered assets		801,527				784,882				773,088				16,645			28,439
Covered loans and OREO		133,211				148,099				182,659				(14,888	)		(49,448	)
Total non-performing assets	$	934,738			$	932,981			$	955,747			$	1,757		$	(21,009	)
Accruing loans past due 90 days or more [3]	$	454,681			$	447,990			$	409,460			$	6,691		$	45,221
Ratios excluding covered loans:
Non-performing loans held-in-portfolio
to loans held-in-portfolio		3.16	%			3.25	%			2.94	%
Allowance for loan losses to loans
held-in-portfolio		2.46				2.68				2.51
Allowance for loan losses to
non-performing loans, excluding loans
held-for-sale		77.63				82.43				85.40
Ratios including covered loans:
Non-performing assets to total assets		2.62	%			2.82	%			2.60	%
Non-performing loans held-in-portfolio
to loans held-in-portfolio		2.92				2.95				2.69
Allowance for loan losses to loans
held-in-portfolio		2.51				2.74				2.62
Allowance for loan losses to non-performing
loans, excluding loans held-for-sale		85.99				92.82				97.13

[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.

[2] Non-performing loans held-for-sale as of March 31, 2015 consisted of $225 thousand in mortgage loans and $8.2 million in commercial loans (December 31, 2014 - $14.0 million in mortgage loans, $309 thousand in commercial loans and $4.5 million in consumer loans; March 31, 2014 - $789 thousand in mortgage loans).

[3] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These balances include $134 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2015 (December 31, 2014 - $125 million; March 31, 2014 - $117 million). Furthermore, the Corporation has approximately $69 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (December 31, 2014 - $66 million; March 31, 2014 - $52 million).

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table I - Activity in Non-Performing Loans
(Unaudited)
Commercial loans held-in-portfolio:
		Quarter ended									Quarter ended
		31-Mar-15									31-Dec-14
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	257,910		$	2,315		$	260,225		$	244,425		$	7,906		$	252,331
Plus:
	New non-performing loans[1]		27,426			8,030			35,456			112,769			1,245			114,014
Less:
	Non-performing loans transferred to OREO		(1,069	)		-			(1,069	)		(2,072	)		-			(2,072	)
	Non-performing loans charged-off		(8,375	)		(426	)		(8,801	)		(17,492	)		(1,298	)		(18,790	)
	Loans returned to accrual status / loan collections		(11,261	)		(112	)		(11,373	)		(79,720	)		(2,895	)		(82,615	)
	Loans transferred to held-for-sale		-			-			-			-			(3,025	)		(3,025	)
	Non-performing loans transferred from (to) discontinued operations		-			-			-			-			382			382
Ending balance NPLs		$	264,631		$	9,807		$	274,438		$	257,910		$	2,315		$	260,225
[1] New non-performing loans includes $1.2 million at BPPR and $7.4 million at BPNA from Doral Acquisition.
Construction loans held-in-portfolio:
		Quarter ended									Quarter ended
		31-Mar-15									31-Dec-14
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	13,812		$	-		$	13,812		$	19,148		$	-		$	19,148
Plus:
	New non-performing loans		456			-			456			573			-			573
Less:
	Non-performing loans charged-off		-			-			-			(244	)		-			(244	)
	Loans returned to accrual status / loan collections		(1,054	)		-			(1,054	)		(5,665	)		-			(5,665	)
Ending balance NPLs		$	13,214		$	-		$	13,214		$	13,812		$	-		$	13,812

Mortgage loans held-in-portfolio:
		Quarter ended									Quarter ended
		31-Mar-15									31-Dec-14
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	295,629		$	9,284		$	304,913		$	283,433		$	11,692		$	295,125
Plus:
	New non-performing loans[1]		107,385			6,232			113,617			91,977			8,159			100,136
Less:
	Non-performing loans transferred to OREO		(4,845	)		-			(4,845	)		(1,051	)		-			(1,051	)
	Non-performing loans charged-off		(8,158	)		(123	)		(8,281	)		(8,951	)		(96	)		(9,047	)
	Loans returned to accrual status / loan collections		(69,857	)		(8,970	)		(78,827	)		(69,779	)		(4,309	)		(74,088	)
	Loans transferred to held-for-sale		-			2,038			2,038			-			(6,162	)		(6,162	)
Ending balance NPLs		$	320,154		$	8,461		$	328,615		$	295,629		$	9,284		$	304,913
[1] New non-performing loans includes $16.6 million of loans previously serviced by Doral.
Legacy loans held-in-portfolio:
		Quarter ended									Quarter ended
		31-Mar-15									31-Dec-14
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	-		$	1,545		$	1,545		$	-		$	5,648		$	5,648
Plus:
	New non-performing loans		-			1,000			1,000			-			213			213
	Advances on existing non-performing loans		-			33			33			-			97			97
Less:
	Non-performing loans charged-off		-			(141	)		(141	)		-			(744	)		(744	)
	Loans returned to accrual status / loan collections		-			(149	)		(149	)		-			(2,791	)		(2,791	)
	Loans transferred to held-for-sale		-			-			-			-			(878	)		(878	)
Ending balance NPLs		$	-		$	2,288		$	2,288		$	-		$	1,545		$	1,545
Total non-performing loans held-in-portfolio (excluding consumer loans):
		Quarter ended									Quarter ended
		31-Mar-15									31-Dec-14
(In thousands)		BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs		$	567,351		$	13,144		$	580,495		$	547,006		$	25,246		$	572,252
Plus:
	New non-performing loans		135,267			15,262			150,529			205,319			9,617			214,936
	Advances on existing non-performing loans		-			33			33			-			97			97
Less:
	Non-performing loans transferred to OREO		(5,914	)		-			(5,914	)		(3,123	)		-			(3,123	)
	Non-performing loans charged-off		(16,533	)		(690	)		(17,223	)		(26,687	)		(2,138	)		(28,825	)
	Loans returned to accrual status / loan collections		(82,172	)		(9,231	)		(91,403	)		(155,164	)		(9,995	)		(165,159	)
	Loans transferred to held-for-sale		-			2,038			2,038			-			(10,065	)		(10,065	)
	Non-performing loans transferred from (to) discontinued operations		-			-			-			-			382			382
Ending balance NPLs		$	597,999		$	20,556		$	618,555		$	567,351		$	13,144		$	580,495

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

[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.

[2] Excluding provision for loan losses and net write-down related to loans sold or reclassified to held-for-sale during the quarter ended December 31, 2014.

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

N.M. - Not meaningful.

Popular, Inc.
Financial Supplement to First Quarter 2015 Earnings Release
Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED
(Unaudited)
31-Mar-15
(Dollars in thousands)		Commercial		Construction		Legacy [3]		Mortgage		Lease financing		Consumer		Total	[2]
Specific ALLL		$ 69,946		$ 158		$ -		$ 42,570		$ 687		$ 25,604		$ 138,965
Impaired loans	[1]	$ 417,377		$ 9,838		$ -		$ 450,612		$ 2,924		$ 116,464		$ 997,215
Specific ALLL to impaired loans	[1]	16.76	%	1.61	%	-	%	9.45	%	23.50	%	21.98	%	13.94	%
General ALLL		$ 135,946		$ 3,286		$ 2,962		$ 86,271		$ 6,521		$ 142,273		$ 377,259
Loans held-in-portfolio, excluding impaired loans	[1]	$ 8,236,184		$ 680,890		$ 77,675		$ 6,738,615		$ 578,195		$ 3,704,156		$ 20,015,715
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]	1.65	%	0.48	%	3.81	%	1.28	%	1.13	%	3.84	%	1.88	%
Total ALLL		$ 205,892		$ 3,444		$ 2,962		$ 128,841		$ 7,208		$ 167,877		$ 516,224
Total non-covered loans held-in-portfolio	[1]	$ 8,653,561		$ 690,728		$ 77,675		$ 7,189,227		$ 581,119		$ 3,820,620		$ 21,012,930
ALLL to loans held-in-portfolio	[1]	2.38	%	0.50	%	3.81	%	1.79	%	1.24	%	4.39	%	2.46	%
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of March 31, 2015 the general allowance on the covered loans amounted to $71.0 million, while the specific reserve amounted to $1.5 million.
[3] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.
31-Dec-14
(Dollars in thousands)		Commercial		Construction		Legacy [3]		Mortgage		Lease financing		Consumer		Total	[2]
Specific ALLL		$ 64,736		$ 363		$ -		$ 46,111		$ 770		$ 28,161		$ 140,141
Impaired loans	[1]	$ 357,161		$ 13,268		$ -		$ 435,824		$ 3,023		$ 117,732		$ 927,008
Specific ALLL to impaired loans	[1]	18.13	%	2.74	%	-	%	10.58	%	25.47	%	23.92	%	15.12	%
General ALLL		$ 146,501		$ 6,307		$ 2,944		$ 77,211		$ 6,361		$ 140,254		$ 379,578
Loans held-in-portfolio, excluding impaired loans	[1]	$ 7,777,106		$ 238,552		$ 80,818		$ 6,067,062		$ 561,366		$ 3,752,539		$ 18,477,443
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]	1.88	%	2.64	%	3.64	%	1.27	%	1.13	%	3.74	%	2.05	%
Total ALLL		$ 211,237		$ 6,670		$ 2,944		$ 123,322		$ 7,131		$ 168,415		$ 519,719
Total non-covered loans held-in-portfolio	[1]	$ 8,134,267		$ 251,820		$ 80,818		$ 6,502,886		$ 564,389		$ 3,870,271		$ 19,404,451
ALLL to loans held-in-portfolio	[1]	2.60	%	2.65	%	3.64	%	1.90	%	1.26	%	4.35	%	2.68	%
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of December 31, 2014 the general allowance on the covered loans amounted to $82.1 million, while the specific reserve amounted to $5 thousand.
[3] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.
Variance
(Dollars in thousands)		Commercial		Construction		Legacy		Mortgage		Lease financing		Consumer		Total
Specific ALLL		$ 5,210		$ (205)		$ -		$ (3,541)		$ (83)		$ (2,557)		$ (1,176)
Impaired loans		$ 60,216		$ (3,430)		$ -		$ 14,788		$ (99)		$ (1,268)		$ 70,207
General ALLL		$ (10,555)		$ (3,021)		$ 18		$ 9,060		$ 160		$ 2,019		$ (2,319)
Loans held-in-portfolio, excluding impaired loans		$ 459,078		$ 442,338		$ (3,143)		$ 671,553		$ 16,829		$ (48,383)		$ 1,538,272
Total ALLL		$ (5,345)		$ (3,226)		$ 18		$ 5,519		$ 77		$ (538)		$ (3,495)
Total non-covered loans held-in-portfolio		$ 519,294		$ 438,908		$ (3,143)		$ 686,341		$ 16,730		$ (49,651)		$ 1,608,479

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

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

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

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

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

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

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