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

Exhibit 99.1

Popular, Inc. Announces Fourth Quarter Financial Results

• Net income of $137.4 million and adjusted net income of $98.3 million for the fourth quarter
• Net income of $895.3 million and adjusted net income of $374.8 million for the year ended December 31, 2015
• Net interest margin for the quarter of 4.42% and adjusted net interest margin of 4.39%, flat when compared to Q3 2015
• Credit Quality (excluding covered loans):
  • Non-performing loans held-in-portfolio (NPLs) decreased by $33.1 million from Q3 2015; NPLs to loans ratio at 2.7% vs. 2.8% in Q3 2015;
  • Net charge-offs (NCOs) were 1.48% of average loans held-in-portfolio vs. 0.83% in Q3 2015; NCOs increased by $36.6 million quarter over quarter;
  • Allowance for loan losses of $502.9 million vs. $536.0 million in Q3 2015; Allowance for loan losses to loans held-in-portfolio at 2.25% vs. 2.38% in Q3 2015;
  • Allowance for loan losses to NPLs at 83.6% vs. 84.4% in Q3 2015.
• Common Equity Tier 1 ratio of 16.21% and Tangible Book Value per Share of $42.18 at December 31, 2015

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--January 26, 2016--Popular, Inc. (the “Corporation” or “Popular”) (NASDAQ:BPOP) reported net income of $137.4 million and adjusted net income of $98.3 million for the quarter ended December 31, 2015, compared to net income of $85.6 million and an adjusted net income of $93.4 million for the quarter ended September 30, 2015.

Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said: “In 2015 we achieved several key milestones such as the Doral transactions and the completion of the restructuring of our U.S. operations. At the same time, we consistently delivered strong financial results despite the continued weakness of the Puerto Rico economy. The reinstatement of the quarterly dividend on our common stock demonstrates our confidence in our capital position and our revenue generation capacity going forward."

Earnings Highlights
(Unaudited)	Quarters ended						Years ended
(Dollars in thousands, except per share information)	31-Dec-15		30-Sep-15		31-Dec-14		31-Dec-15		31-Dec-14
Net interest income	$352,500		$350,735		$326,861		$1,408,983		$945,072
Provision for loan losses	57,711		69,568		51,637		217,458		223,999
Provision (reversal) for loan losses - covered loans [1]	820		(2,890	)	(3,646	)	24,020		46,135
Net interest income after provision for loan losses	293,969		284,057		278,870		1,167,505		674,938
FDIC loss-share income (expense)	(4,359	)	1,207		(18,693	)	20,062		(103,024	)
Other non-interest income	136,797		129,902		122,057		499,479		489,539
Operating expenses	305,808		306,897		330,006		1,288,221		1,193,684
Income (loss) from continuing operations before income tax	120,599		108,269		52,228		398,825		(132,231	)
Income tax expense (benefit)	(16,827	)	22,620		12,472		(495,172	)	58,279
Income (loss) from continuing operations	137,426		85,649		39,756		893,997		(190,510	)
(Loss) income from discontinued operations, net of tax	-		(9	)	9,086		1,347		(122,980	)
Net income (loss)	$137,426		$85,640		$48,842		$895,344		$(313,490	)
Net income (loss) applicable to common stock	$136,495		$84,709		$47,911		$891,621		$(317,213	)
Net income (loss) per common share from continuing operations - Basic	$1.32		$0.82		$0.38		$8.65		$(1.88	)
Net income (loss) per common share from continuing operations - Diluted	$1.32		$0.82		$0.37		$8.64		$(1.88	)
Net income (loss) per common share from discontinued operations - Basic	$-		$-		$0.09		$0.01		$(1.20	)
Net income (loss) per common share from discontinued operations - Diluted	$-		$-		$0.09		$0.01		$(1.20	)
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under an FDIC loss-sharing agreement.

Doral Bank Transaction

During the fourth quarter of 2015, retrospective adjustments were made to the estimated fair values of the assets acquired and liabilities assumed from the FDIC as receiver for Doral Bank, during the first quarter of 2015 (the “Doral Bank Transaction”), to reflect new information obtained during the measurement period that existed as of the acquisition date, as defined by U.S. GAAP. This process led to a lower fair value of the assets acquired and to a corresponding increase in goodwill.

Refer to the following table for details of the above mentioned retrospective adjustments.

		February 27, 2015		February 27, 2015
		As recasted[a]		As previously
(In thousands)				reported[b]		Change
Assets:
Loans	$	1,518,574	$	1,665,756	$	(147,182	)
Goodwill		163,097		41,633		121,464
Core deposit intangible		12,810		23,572		(10,762	)
Receivable from the FDIC		480,137 [c]		441,721		38,416
Other assets		626,177		626,177		-
Total assets	$	2,800,795	$	2,798,859	$	1,936
Liabilities:
Deposits	$	2,203,391	$	2,201,455	$	1,936
Advances from the Federal Home Loan Bank		547,187		547,187		-
Other liabilities		50,217		50,217		-
Total liabilities	$	2,800,795	$	2,798,859	$	1,936
[a] Amounts reported include retrospective adjustments during the measurement period, in accordance with U.S. GAAP, related to the Doral Bank Transaction.
[b] Amounts are presented as previously reported in the Form 10-Q as of September 30, 2015.
[c] Balances recasted include a reclassification of approximately $38.4 million of loans that were subsequently determined to be excluded from the Doral Bank Transaction and repurchased by the FDIC, to the Receivable from the FDIC.

The decline in the fair value of the loans is mainly attributed to higher estimated credit losses on the portfolio of taxi medallion loans acquired by BPNA, which had an unpaid principal balance of $248.6 million and a revised fair value of $154.9 million. This remeasurement resulted in a negative adjustment of approximately $76.9 million to this portfolio. The main factors that influenced the revised estimated credit losses included borrower concentration in the portfolio, review of collateral values and borrowers’ payment capacity after a more thorough due diligence process.

Adjusted results – Non GAAP

The following tables reflect the results of operations for the fourth and third quarters of 2015, with adjustments to exclude the impact of certain events.

	Quarter ended
(Unaudited)	31-Dec-15
(In thousands)	Actual Results (U.S. GAAP)		BPNA Reorganization [2]		Doral Transaction Remeasurement [3]		Bulk Loan Sale [4]		Impairment of Loans Under Proposed Portfolio Sale [5]		Reversal of DTA – U.S. Operations [6]		Adjusted Results (Non-GAAP)
Net interest income	$352,500		$-		$1,952		$-		$-		$-		$350,548
Provision for loan losses – non-covered loans	57,711		-		-		5,852		5,064		-		46,795
Provision (reversal) for loan losses – covered loans [1]	820		-		-		-		-		-		820
Net interest income after provision for loan losses	293,969		-		1,952		(5,852	)	(5,064	)	-		302,933
Mortgage banking activities	23,430		-		833		-		-		-		22,597
FDIC loss-share (expense) income	(4,359	)	-		-		-		-				(4,359	)
Other non-interest income	113,367		-		-		-		-		-		113,367
Total non-interest income	132,438		-		833		-		-		-		131,605
Personnel costs	119,221		-		-		-		-		-		119,221
Net occupancy expenses	20,616		-		-		-		-		-		20,616
Equipment expenses	16,035		-		-		-		-		-		16,035
Professional fees	77,854		-		-		-		-		-		77,854
Communications	6,759		-		-		-		-		-		6,759
Business promotion	15,162		-		-		-		-		-		15,162
Other real estate owned (OREO) expenses	9,997		-		-		-		-		-		9,997
Amortization of intangibles	2,522		-		(628	)	-		-		-		3,150
Restructuring costs	1,004		1,004		-		-		-		-		-
Other operating expenses	36,638		-		-		-		-		-		36,638
Total operating expenses	305,808		1,004		(628	)	-		-		-		305,432
Income before income tax	120,599		(1,004	)	3,413		(5,852	)	(5,064	)	-		129,106
Income tax (benefit) expense	(16,827	)	-		731		(2,282	)	(1,975	)	(44,103	)	30,802
Net income	$137,426		$(1,004	)	$2,682		$(3,570	)	$(3,089	)	$44,103		$98,304
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under an FDIC loss-sharing agreement.
[2] Represents restructuring charges associated with the reorganization of BPNA.
[3] Represents the impact of the fair value adjustments, identified during the remeasurement period as defined by U.S. GAAP, related to the Doral Bank Transaction. The remeasurement adjustments impacted the fair value of the loan portfolio, deposit premium and the core deposit intangible, all of which were recorded against goodwill. During the fourth quarter of 2015, the related amortization of the loan discounts, deposit premium and the core deposit intangible were adjusted to reflect the balance as if the revised estimates of fair value were applied as of the Doral Bank Transaction date.
[4] Represents the impact of a bulk sale of loans at the BPPR segment, which had a book value of approximately $34.4 million.
[5] Represents additional impairment based on the estimated fair value of loans in the Westernbank transaction, that the Corporation has the intent to sell and are subject to the ongoing arbitration with the FDIC.
[6] Represents the partial reversal of the valuation allowance of a portion of the deferred tax asset at the U.S. operations. Refer to additional details on the Income Taxes section of this earnings release.

	Quarter ended
(Unaudited)	30-Sep-15
(In thousands)	Actual Results (U.S. GAAP)		BPNA Reorganization [2]		Doral Transaction [3]		MSRs Acquired [4]	Impairment of Loans Under Proposed Portfolio Sale [5]		Adjusted Results (Non-GAAP)
Net interest income	$350,735		$-		$-		$-	$-		$350,735
Provision for loan losses	69,568		-		-		-	10,126		59,442
Provision (reversal) for loan losses – covered loans [1]	(2,890	)	-		-		-	-		(2,890	)
Net interest income after provision for loan losses	284,057		-		-		-	(10,126	)	294,183
Mortgage banking activities	24,195		-		844		4,378	-		18,973
FDIC loss-share income	1,207		-		-		-	-		1,207
Other non-interest income	105,707		-		(10	)	-	-		105,717
Total non-interest income	131,109		-		834		4,378	-		125,897
Personnel costs	120,863		-		806		-	-		120,057
Net occupancy expenses	21,277		-		1,151		-	-		20,126
Equipment expenses	14,739		-		-		-	-		14,739
Professional fees	77,154		-		3,599		-	-		73,555
Communications	6,058		-		-		-	-		6,058
Business promotion	12,325		-		100		-	-		12,225
Other real estate owned (OREO) expenses	7,686		-		-		-	-		7,686
Amortization of intangibles	3,512		-		-		-	-		3,512
Restructuring costs	481		481		-		-	-		-
Other operating expenses	42,802		-		-		-	-		42,802
Total operating expenses	306,897		481		5,656		-	-		300,760
Income from continuing operations before income tax	108,269		(481	)	(4,822	)	4,378	(10,126	)	119,320
Income tax expense	22,620		-		(1,050	)	1,707	(3,949	)	25,912
Income from continuing operations	$85,649		$(481	)	$(3,772	)	$2,671	$(6,177	)	$93,408
Income from discontinued operations, net of tax	$(9	)	$(9	)	$-		$-	$-		$-
Net income	$85,640		$(490	)	$(3,772	)	$2,671	$(6,177	)	$93,408
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under an FDIC loss-sharing agreement.
[2] Represents restructuring charges associated with the reorganization of BPNA.
[3] Includes approximately $0.8 million of fees charged for loan servicing cost to the FDIC, personnel costs related to former Doral Bank employees retained on a temporary basis and incentive compensation for an aggregate of $0.8 million, building rent expense of Doral Bank’s administrative offices for $1.2 million and professional fees and business promotion expenses directly associated with the Doral Bank Transaction and systems conversion for $3.7 million.
[4] Represents the fair value of mortgage servicing rights acquired for a portfolio previously serviced by Doral Bank, for which the Corporation acted as a backup servicer, under a pre-existing contract.
[5] Represents impairment based on the estimated fair value of loans acquired in the Westernbank transaction, that the Corporation has the intent to sell and are subject to the ongoing arbitration with the FDIC.

	Quarters ended
(Unaudited)	Adjusted Results Non-GAAP
(In thousands)	31-Dec-15		30-Sep-15		Variance
Net interest income	$350,548		$350,735		$(187	)
Provision for loan losses – non-covered loans	46,795		59,442		(12,647	)
Provision (reversal) for loan losses – covered loans [1]	820		(2,890	)	3,710
Net interest income after provision for loan losses	302,933		294,183		8,750
Mortgage banking activities	22,597		18,973		3,624
FDIC loss-share income (expense)	(4,359	)	1,207		(5,566	)
Other non-interest income	113,367		105,717		7,650
Total non-interest income	131,605		125,897		5,708
Personnel costs	119,221		120,057		(836	)
Net occupancy expenses	20,616		20,126		490
Equipment expenses	16,035		14,739		1,296
Professional fees	77,854		73,555		4,299
Communications	6,759		6,058		701
Business promotion	15,162		12,225		2,937
Other real estate owned (OREO) expenses	9,997		7,686		2,311
Amortization of intangibles	3,150		3,512		(362	)
Other operating expenses	36,638		42,802		(6,164	)
Total operating expenses	305,432		300,760		4,672
Income from continuing operations before income tax	129,106		119,320		9,786
Income tax expense	30,802		25,912		4,890
Income from continuing operations	$98,304		$93,408		$4,896
Net income	$98,304		$93,408		$4,896
[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 December 31 2015, the Corporation had net interest income of $352.5 million, compared to net interest income of $350.7 million for the previous quarter. The adjusted net interest income was $350.6 million, flat compared to the previous quarter. The net interest margin was 4.42% for the quarter. The adjusted net interest margin was 4.39%, also flat when compared to the previous quarter. Refer to the Adjusted Results – Non GAAP section for additional information on the adjusted net interest income.

The decrease of $0.1 million in the adjusted net interest income is mainly related to:

• Lower income from commercial loans by $2.2 million, or 19 basis points, mainly due to lower yields at BPPR and BPNA impacted by payoffs of public sector loans in BPPR and higher loan originations at lower rates in the U.S.
• Lower income from construction loans by $1.0 million, or 42 basis points, mainly at BPPR driven by past due interest recoveries recorded during the third quarter

These negative variances in net interest income were offset in part by:

• Higher income from mortgage loans by $1.8 million due to the reversal during the third quarter of 2015 of $3.8 million of income from FHA-guaranteed loans at BPPR as part of the Corporation’s review of its interest income accrual policy for this portfolio, partially offset by lower average volume of mortgages at both BPPR and BPNA
• Higher income from consumer loans by $0.4 million, mainly due to higher volume at BPNA as a result of its consumer loans acquisition strategy
• Higher income from the leasing portfolio by $0.6 million mainly due to higher volume at the BPPR segment
• Lower borrowing costs by $0.3 million due mainly to lower volume of repurchase agreements at the BPPR segment

BPPR’s net interest income amounted to $305.1 million for the quarter ended December 31, 2015. The adjusted net interest income was $304.3 million, a decrease of $0.5 million when compared to the previous quarter. The impact of lower income from commercial and construction loans was offset by higher income from mortgage loans and lower borrowing costs, as discussed above, and lower expense on equity indexed IRA accounts. Net interest margin was 4.82%. The adjusted net interest margin was 4.80%, an increase of 5 basis points compared to 4.75% for the previous quarter, mainly due to lower borrowing costs.

BPNA’s net interest income was $62.9 million. The adjusted net interest income was of $61.7 million, compared with $62.4 million for the previous quarter. The decrease of $0.7 million in the net interest income is mainly driven by lower yields in the commercial portfolio and lower volumes of mortgage loans, as discussed above, which was partially offset by higher income from consumer loans by $1.4 million. Also, higher interest expense on deposits by $1.3 million, mainly for higher volume of non-brokered client related time deposits, contributed to the decrease in net interest income. Net interest margin was 3.86%. The adjusted net interest margin was of 3.79% compared to 3.91% for the previous quarter, a decrease of 12 basis points, mainly due to lower yields from commercial loans and higher cost of interest bearing deposits.

Non-interest income

Non-interest income was $132.4 million for the fourth quarter of 2015, an increase of $1.3 million when compared with the third quarter of 2015. Excluding the impact of the transactions detailed in the Adjusted Results Non-GAAP tables above, non-interest income increased by $5.7 million when compared to the third quarter of 2015, driven primarily by the following:

• Higher other service fees by $10.8 million mostly due to higher annual contingent insurance commission revenues, including approximately $3.7 million from the portfolio acquired from the Doral insurance agency. Refer to Table F for a breakdown of other service fees.
• Higher mortgage banking activities by $3.6 million mainly due to lower losses on related derivatives. Refer to Table F for a breakdown of mortgage banking activities.

These increases were partially offset by:

• Unfavorable variance in adjustments to indemnity reserves by $2.8 million mostly due to higher provision for loans previously sold with credit recourse.
• Unfavorable variance in the FDIC loss-share income (expense) by $5.6 million mostly due to higher recoveries on assets to be shared with the FDIC under the recovery period by $6.0 million and lower mirror accounting on reimbursable expenses, partially offset by a positive variance in the fair value of the true-up payment obligation.

Refer to Table B for further details.

Financial Impact of the 2010 FDIC-Assisted Transaction
(Unaudited)	Quarters ended					Years ended
(In thousands)	31-Dec-15		30-Sep-15	31-Dec-14		31-Dec-15	31-Dec-14
Income Statement
Interest income on WB loans	$47,870		$47,982	$61,285		$208,779	$293,610
Total FDIC loss-share (expense) income	(4,359	)	1,207	(18,693	)	20,062	(103,024	)
Provision for loan losses	7,817		20,206	(3,646	)	54,113	46,135
Total revenues less provision for loan losses	$35,694		$28,983	$46,238		$174,728	$144,451
Balance Sheet
Loans covered under loss-sharing agreements with FDIC	$646,115		$665,428	$2,542,662
FDIC loss-share asset	310,221		311,946	542,454
FDIC true-up payment obligation	119,745		122,527	129,304
See additional details on accounting for the 2010 FDIC-Assisted transaction in Table O.

Operating expenses

Operating expenses of $305.8 million for the quarter decreased by $1.1 million when compared with the third quarter of 2015. Excluding the impact of the transactions detailed in the Adjusted Results Non-GAAP tables above, operating expenses increased by $4.7 million compared to the third quarter of 2015, driven primarily by:

• Higher professional fees expense by $4.3 million mainly due to higher application processing and hosting expenses and the result of the recently enacted business-to-business sales tax in Puerto Rico.
• Higher business promotion expenses by $3.0 million mainly at BPPR due to higher advertising expense and higher customer affinities program expense.
• Higher OREO expenses by $2.3 million mainly due to higher commercial and construction write-downs at both BPPR and BPNA and higher mortgage write-downs at BPPR.
• Higher equipment expense by $1.3 million mainly due to software and maintenance expenses at BPPR.

These increases were partially offset by:

• Lower other operating expenses by $3.8 million mainly due to lower sundry losses from mortgage servicing at BPPR.
• Lower FDIC deposit insurance by $1.9 million due to improvements in the risk profile of the Corporation.

Non-personnel credit-related costs, which include collections, appraisals, credit related fees, and OREO expenses, amounted to $14.4 million for the fourth quarter of 2015, compared with $12.7 million for the third quarter of 2015. The increase was principally due to higher OREO write-downs, as mentioned above.

Full-time equivalent employees were 7,810 as of December 31, 2015, compared with 7,840 as of September 30, 2015, and 7,752 as of December 31, 2014.

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

Income taxes

For the quarter ended December 31, 2015, the Corporation recorded an income tax benefit of $16.8 million, compared to an income tax expense of $22.6 million for the previous quarter. During the fourth quarter of 2015, the Corporation recorded a partial reversal of the valuation allowance on its deferred tax assets from the U.S. operations for approximately $44.1 million. This adjustment was incremental to the partial reversal of $544.9 million recorded during the second quarter of 2015 and was mainly related to a change in the estimate of the realizability of state and city deferred tax assets, as new information was considered after having completed the U.S. reorganization and the sources of income of the business acquired in connection with the Doral Bank Transaction. On an adjusted basis, the income tax expense for the fourth quarter of 2015 was $30.8 million, compared to $25.9 million for the previous quarter.

The effective income tax rate for the fourth quarter of 2015, on an adjusted basis, was 24%, compared to 22% for the previous quarter. The effective tax rate is impacted by the composition and source of the taxable income. In 2016, after taking effect for the partial deferred tax asset valuation reversal, the Corporation expects that the effective tax rate for the U.S. operations will be approximately 44%. Adjusting to an effective tax rate of 44% for the U.S. operations, and assuming the same earnings composition of this quarter, the adjusted effective income tax rate for the Corporation’s consolidated results for the fourth quarter of 2015 would have been 30%.

Credit Quality

Overall, the Corporation continued to exhibit a stable credit performance in a challenging operating environment given the continuing weakness in the Puerto Rico economy. During the fourth quarter of 2015, credit metrics were impacted by a few specific large borrowers and the bulk sale of commercial loans amounting to $34.4 million. The Corporation continues to closely monitor the performance of its portfolios and is focused in taking measures to minimize risks.

• Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $86.7 million quarter over quarter, mainly driven by lower commercial inflows of $72.4 million and reduction of $8.6 million in NPL inflows at BPPR. The decrease in commercial inflows was impacted by the addition of a small number of large commercial loans in the BPPR segment in the third quarter of 2015, most significantly a $49.2 million credit relationship.
• Non-performing loans held-in-portfolio decreased by $33.1 million during the fourth quarter of 2015, mainly driven by lower commercial NPLs of $57.6 million, offset by higher consumer and mortgage NPLs of $17.0 million and $8.1 million, respectively. The commercial NPLs decrease was mainly driven by $31.1 million in charge-offs related to BPPR loans that were specifically reserved in prior periods, combined with the sale of loans with book value of $34.4 million, of which approximately $21.3 million were non-accruing. The aggregate write-down on the commercial loans bulk sale during the quarter was $7.9 million, of which $2.1 million was previously reserved. The consumer NPLs increase was related to one particular loan collateralized by Puerto Rico securities. At December 31, 2015, NPLs represented 2.7% of total loans held-in-portfolio, compared to 2.8% in September 30, 2015.
• Excluding the $7.9 million write-down related to the bulk sale of commercial loans, net charge-offs increased by $36.6 million from the third quarter of 2015, mostly driven by higher commercial NCOs of $33.7 million in BPPR. Commercial NCOs were impacted by $31.1 million in charge-offs related to five relationships for which reserves were recorded in prior periods. The ratio of net charge-off to average non-covered loans held-in-portfolio increased to 1.48% on an annualized basis from 0.83% in the third quarter of 2015. Refer to Table J for further information on net charge-offs and related ratios.
• The allowance for loan losses decreased by $33.1 million from the third quarter of 2015 to $502.9 million, primarily driven by the above mentioned charge-offs of commercial loans fully reserved in prior periods. The general and specific reserves related to non-covered loans totaled $384.8 million and $118.1 million, respectively, at quarter-end, compared with $379.2 million and $156.8 million, respectively, as of September 30, 2015. The ratio of the allowance for loan losses to loans held-in-portfolio was 2.25% in the fourth quarter of 2015, compared to 2.38% in the previous quarter.
• The ratio of the allowance for loan losses to NPLs held-in-portfolio stood at 83.6%, compared to 84.4% in the previous quarter.
• The provision for loan losses for the fourth quarter amounted to $57.7 million, decreasing by $11.9 million, as the previous quarter included $10.1 million impairment related to Westernbank loans the Corporation has the intent to sell. Excluding the $5.8 million provision impact related to the commercial loans sold and $5.1 million additional impairment on the Westernbank loans, the provision for the fourth quarter amounted to $46.8 million, compared to $59.5 million in the third quarter. The provision for the quarter decreased by $12.7 million as the third quarter considered incremental reserves related to certain large relationships. The provision to net charge-off ratio decreased to 69.6%, or 56.5% on an adjusted basis, from 150.2%, or 128.4% on an adjusted basis, in the third quarter of 2015. The decrease in the ratio was mostly due to the aforementioned $31.1 million in charge-offs of previously reserved commercial loans. Excluding this impact from the total net charge-off base, the provision for the fourth quarter represented 90.3% of net charge-offs.

Non-Performing Assets
(Unaudited)
(In thousands)	31-Dec-15		30-Sep-15		31-Dec-14
Total non-performing loans held-in-portfolio, excluding covered loans	$601,799		$634,902		$630,483
Non-performing loans held-for-sale	45,169		47,681		18,899
Other real estate owned (“OREO”), excluding covered OREO	155,231		155,826		135,500
Total non-performing assets, excluding covered assets	802,199		838,409		784,882
Covered loans and OREO	40,571		39,888		148,099
Total non-performing assets	$842,770		$878,297		$932,981
Net charge-offs for the quarter (excluding covered loans)	$82,870		$46,302		$50,187
Ratios (excluding covered loans):
Non-covered loans held-in-portfolio	$22,346,115		$22,498,066		$19,404,451
Non-performing loans held-in-portfolio to loans held-in-portfolio	2.69	%	2.82	%	3.25	%
Allowance for loan losses to loans held-in-portfolio	2.25		2.38		2.68
Allowance for loan losses to non-performing loans, excluding loans held-for-sale	83.57		84.42		82.43
Refer to Table H for additional information.

Provision for Loan Losses
(Unaudited)	Quarters ended					Years ended
(In thousands)	31-Dec-15	30-Sep-15		31-Dec-14		31-Dec-15	31-Dec-14
Provision (reversal) for loan losses:
BPPR	$55,635	$68,755		$52,206		$216,832	$242,849
BPNA	2,076	813		(569	)	626	(18,850	)
Total provision for loan losses	$57,711	$69,568		$51,637		$217,458	$223,999
Provision (reversal) for loan losses - covered loans	820	(2,890	)	(3,646	)	24,020	46,135
Total provision for loan losses	$58,531	$66,678		$47,991		$241,478	$270,134

Credit Quality by Segment
(Unaudited)
(In thousands)	Quarters ended
BPPR	31-Dec-15		30-Sep-15		31-Dec-14
Provision for loan losses	$55,635		$68,755		$52,206
Net charge-offs	82,011		47,245		52,523
Total non-performing loans held-in-portfolio, excluding covered loans	574,834		609,469		611,383
Allowance / non-covered loans held-in-portfolio	2.67	%	2.83	%	3.07	%
	Quarters ended
BPNA	31-Dec-15		30-Sep-15		31-Dec-14
Provision (reversal) for loan losses	$2,076		$813		$(569	)
Net charge-offs (recoveries)	859		(943	)	(2,336	)
Total non-performing loans held-in-portfolio	26,965		25,433		19,100
Allowance / non-covered loans held-in-portfolio	0.69	%	0.68	%	0.88	%

Financial Condition Highlights
(Unaudited)
(In thousands)	31-Dec-15	30-Sep-15	31-Dec-14
Money market, trading and investment securities	$8,587,894	$8,321,397	$7,541,148
Loans not covered under loss-sharing agreements with the FDIC	22,346,115	22,498,066	19,404,451
Loans covered under loss-sharing agreements with the FDIC	646,115	665,428	2,542,662
Total assets	35,769,534	35,530,794	33,096,695
Deposits	27,209,723	26,713,206	24,807,535
Borrowings	2,433,654	2,761,476	3,004,685
Liabilities from discontinued operations	1,815	1,800	5,064
Total liabilities	30,664,210	30,481,158	28,829,313
Stockholders’ equity	5,105,324	5,049,636	4,267,382

Total assets increased by $238.7 million from the third quarter of 2015 driven by:

• An increase of $562.1 million in investment securities available-for-sale mainly at BPPR mostly due to purchases of mortgage-backed agency pools and U.S. Treasury securities

This increase was partially offset by:

• A decrease of $228.5 million in money market investments principally due to a decrease in excess cash balance held with the Federal Reserve of $218.9 million at BPPR.
• A decrease of approximately $48.0 million in non-covered loans held-in-portfolio, excluding the impact of the Doral Bank Transaction remeasurement adjustments, mainly due to a decrease of mortgage loans principally at BPPR resulting from reduced origination activity, partially offset by an increase in commercial loan originations in the U.S.

Total liabilities increased by $183.0 million from the third quarter of 2015, driven by:

• An increase of $496.5 million in deposits principally in non-brokered time deposits at BPPR and BPNA and in checking accounts of both commercial and retail customers at BPPR, partially offset by a decline in brokered certificates of deposit mainly at BPPR. Refer to Table G for additional information on deposits.

This increase was partially offset by:

• A decrease of $323.6 million in federal funds purchased and assets sold under agreements to repurchase mainly due to a net decrease in repurchase agreements principally at BPPR.

Stockholders’ equity increased by approximately $55.7 million from the third quarter of 2015, mainly as a result of net income for the quarter of $137.4 million, net of a reduction of $15.5 million related to the quarterly cash dividend of $0.15 per share declared on the outstanding common stock and preferred dividends of $0.9 million, and an increase in accumulated other comprehensive loss of $67.1 million, principally due to higher unrealized losses on securities available-for-sale by $52.4 million and $16.0 million related to the adjustment of pension and postretirement benefit plans, net of tax.

Common equity tier-1 ratio and tangible book value per share were 16.21% and $42.18, respectively, at December 31, 2015 compared to 16.21% and $42.71 at September 30, 2015. The re-measurement of goodwill on the Doral Bank Transaction reduced tangible book value per share by $1.06. Refer to Table A for capital ratios.

Refer to Table C for the Statements of Financial Condition.

Forward-Looking Statements

The information contained in this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that may cause the Corporation's actual results to differ materially from any future results expressed or implied by such forward-looking statements. Please refer to our Annual Report on Form 10-K for the year ended December 31, 2014, the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2015, June 30, 2015 and September 30, 2015 and our other filings with the SEC for a discussion of those factors that could impact our future results. Other than to the extent required by applicable law, the Corporation undertakes no obligation to publicly update or revise any forward-looking statement to reflect 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 Tuesday, January 26, 2016 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 Friday, February 26, 2016. The replay dial in is 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10077993.

Popular, Inc.

Financial Supplement to Fourth 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 - 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 Loans

Table P - Restructuring Charges

Table Q - Adjusted Consolidated Statement of Operations for the Years Ended December 31, 2015 and 2014 (Non-GAAP)

POPULAR, INC.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
	Quarters ended						Years ended
	31-Dec-15		30-Sep-15		31-Dec-14		31-Dec-15		31-Dec-14
Basic EPS from continuing operations	$1.32		$0.82		$0.38		$8.65		$(1.88	)
Basic EPS from discontinued operations	$-		$-		$0.09		$0.01		$(1.20	)
Total Basic EPS	$1.32		$0.82		$0.47		$8.66		$(3.08	)
Diluted EPS from continuing operations	$1.32		$0.82		$0.37		$8.64		$(1.88	)
Diluted EPS from discontinued operations	$-		$-		$0.09		$0.01		$(1.20	)
Total Diluted EPS	$1.32		$0.82		$0.46		$8.65		$(3.08	)
Average common shares outstanding	103,098,249		102,969,214		102,859,416		102,967,186		102,848,792
Average common shares outstanding - assuming dilution	103,259,503		103,150,482		103,166,349		103,124,309		102,848,792
Common shares outstanding at end of period	103,618,976		103,556,285		103,476,847		103,618,976		103,476,847
Market value per common share	$28.34		$30.23		$34.05		$28.34		$34.05
Market capitalization - (In millions)	$2,937		$3,131		$3,523		$2,937		$3,523
Return on average assets	1.53	%	0.95	%	0.58	%	2.54	%	(0.89	)%
	.
Return on average common equity	10.77	%	6.79	%	4.41	%	19.16	%	(7.04	)%
Net interest margin [1]	4.39	%	4.39	%	4.70	%	4.48	%	4.67	%
Common equity per share	$48.79		$48.28		$40.76		$48.79		$40.76
Tangible common book value per common share (non-GAAP)	$42.18		$42.71		$35.89		$42.18		$35.89
Tangible common equity to tangible assets (non-GAAP)	12.46	%	12.65	%	11.39	%	12.46	%	11.39	%
Tier 1 capital [2]	16.21	%	16.21	%	18.13	%	16.21	%	18.13	%
Total capital [2]	18.78	%	18.78	%	19.41	%	18.78	%	19.41	%
Tier 1 leverage [2]	11.82	%	11.75	%	11.94	%	11.82	%	11.94	%
Common equity to Tier 1 capital [2]	16.21	%	16.21	%	15.89	%	16.21	%	15.89	%
[1] Not on a taxable equivalent basis. For the quarter ended December 31, 2015 excludes the impact of $1.9 million of Doral fair value remeasurement adjustment. U.S. GAAP net interest margin was 4.42% for the fourth quarter, compared with 4.39% for the previous quarter. For the quarter ended December 31, 2014 excludes the impact of $18.6 million fees related to repos refinancing at BPNA. U.S. GAAP net interest margin was 4.45% for the fourth quarter of 2014. For the year ended December 31, 2014, excludes the impact of $39.2 million and $414.1 million, respectively, related to repos refinancing at BPNA and the accelerated amortization of the TARP discount. The U.S. GAAP net interest margin was 3.16% for the year ended December 31, 2014. Refer to Tables D & E for reconciliation.
[2] Ratios for the quarters ending December 31, 2015 and September 30, 2015 were calculated based on Basel III Rules, while ratios for the previous periods were calculated based on the then applicable Basel I rules. Capital ratios for the current quarter are preliminary.

POPULAR, INC.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
		Quarters ended				Variance		Quarter ended		Variance		Years ended
(In thousands, except per share information)		31-Dec-15		30-Sep-15		Q4 2015 vs. Q3 2015		31-Dec-14		Q4 2015 vs. Q4 2014		31-Dec-15		31-Dec-14
Interest income:
	Loans	$364,484		$364,458		$26		$357,570		$6,914		$1,458,706		$1,478,750
	Money market investments	1,949		2,003		(54	)	1,113		836		7,243		4,224
	Investment securities	32,795		31,671		1,124		30,361		2,434		126,064		132,631
	Trading account securities	2,129		3,150		(1,021	)	2,891		(762	)	11,001		17,938
	Total interest income	401,357		401,282		75		391,935		9,422		1,603,014		1,633,543
Interest expense:
	Deposits	27,054		28,357		(1,303	)	25,473		1,581		107,533		105,087
	Short-term borrowings	1,693		2,222		(529	)	20,489		(18,796	)	7,512		67,376
	Long-term debt	20,110		19,968		142		19,112		998		78,986		516,008
	Total interest expense	48,857		50,547		(1,690	)	65,074		(16,217	)	194,031		688,471
Net interest income		352,500		350,735		1,765		326,861		25,639		1,408,983		945,072
Provision for loan losses - non-covered loans		57,711		69,568		(11,857	)	51,637		6,074		217,458		223,999
Provision (reversal) for loan losses - covered loans		820		(2,890	)	3,710		(3,646	)	4,466		24,020		46,135
Net interest income after provision for loan losses		293,969		284,057		9,912		278,870		15,099		1,167,505		674,938
Service charges on deposit accounts		39,993		40,960		(967	)	39,456		537		160,108		158,637
Other service fees		66,928		56,115		10,813		61,140		5,788		236,090		225,265
Mortgage banking activities		23,430		24,195		(765	)	8,747		14,683		81,802		30,615
Net gain (loss) and valuation adjustments on investment securities		-		136		(136	)	893		(893	)	141		(870	)
Other-than-temporary impairment losses on investment securities		-		-		-		-		-		(14,445	)	-
Trading account (loss) profit		(1,631	)	(398	)	(1,233	)	586		(2,217	)	(4,723	)	4,358
Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale		(60	)	-		(60	)	10,946		(11,006	)	542		40,591
Adjustments (expense) to indemnity reserves on loans sold		(8,647	)	(5,874	)	(2,773	)	(13,348	)	4,701		(18,628	)	(40,629	)
FDIC loss-share (expense) income		(4,359	)	1,207		(5,566	)	(18,693	)	14,334		20,062		(103,024	)
Other operating income		16,784		14,768		2,016		13,637		3,147		58,592		71,572
	Total non-interest income	132,438		131,109		1,329		103,364		29,074		519,541		386,515
Operating expenses:
Personnel costs
	Salaries	77,578		78,193		(615	)	71,899		5,679		304,618		281,252
	Commissions, incentives and other bonuses	18,015		18,618		(603	)	18,439		(424	)	79,305		59,138
	Pension, postretirement and medical insurance	10,393		12,578		(2,185	)	6,901		3,492		44,059		32,416
	Other personnel costs, including payroll taxes	13,235		11,474		1,761		13,497		(262	)	49,537		45,873
	Total personnel costs	119,221		120,863		(1,642	)	110,736		8,485		477,519		418,679
Net occupancy expenses		20,616		21,277		(661	)	23,877		(3,261	)	86,888		86,707
Equipment expenses		16,035		14,739		1,296		13,091		2,944		60,110		48,917
Other taxes		10,159		9,951		208		14,343		(4,184	)	39,797		56,918
Professional fees		77,854		77,154		700		80,383		(2,529	)	308,985		282,055
Communications		6,759		6,058		701		6,119		640		25,146		25,684
Business promotion		15,162		12,325		2,837		13,530		1,632		52,076		54,016
FDIC deposit insurance		5,386		7,300		(1,914	)	9,338		(3,952	)	27,626		40,307
Loss on early extinguishment of debt		-		-		-		532		(532	)	-		532
Other real estate owned (OREO) expenses		9,997		7,686		2,311		20,016		(10,019	)	85,568		49,611
Credit and debit card processing, volume, interchange and other expenses		5,822		6,449		(627	)	5,093		729		22,854		21,588
Other operating expenses		15,271		19,102		(3,831	)	17,004		(1,733	)	72,221		73,785
Amortization of intangibles		2,522		3,512		(990	)	2,083		439		11,019		8,160
Restructuring costs		1,004		481		523		13,861		(12,857	)	18,412		26,725
	Total operating expenses	305,808		306,897		(1,089	)	330,006		(24,198	)	1,288,221		1,193,684
Income (loss) from continuing operations before income tax		120,599		108,269		12,330		52,228		68,371		398,825		(132,231	)
Income tax (benefit) expense		(16,827	)	22,620		(39,447	)	12,472		(29,299	)	(495,172	)	58,279
Income (loss) from continuing operations		137,426		85,649		51,777		39,756		97,670		893,997		(190,510	)
(Loss) income from discontinued operations, net of tax		-		(9	)	9		9,086		(9,086	)	1,347		(122,980	)
Net income (loss)		$137,426		$85,640		$51,786		$48,842		$88,584		$895,344		$(313,490	)
Net income (loss) applicable to common stock		$136,495		$84,709		$51,786		$47,911		$88,584		$891,621		$(317,213	)
Net income (loss) per common share - basic:
	Net income (loss) from continuing operations	$1.32		$0.82		$0.50		$0.38		$0.94		$8.65		$(1.88	)
	Net income (loss) from discontinued operations	-		-		-		0.09		(0.09	)	0.01		(1.20	)
	Net income (loss) per common share - basic	$1.32		$0.82		$0.50		$0.47		$0.85		$8.66		$(3.08	)
Net income (loss) per common share - diluted:
	Net income (loss) from continuing operations	$1.32		$0.82		$0.50		$0.37		$0.95		$8.64		$(1.88	)
	Net income (loss) from discontinued operations	-		-		-		0.09		(0.09	)	0.01		(1.20	)
	Net income (loss) per common share - diluted	$1.32		$0.82		$0.50		$0.46		$0.86		$8.65		$(3.08	)
Dividends Declared per Common Share		$0.15		$0.15		$-		$-		$0.15		$0.30		$-

Popular, Inc.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
									Variance
									Q4 2015 vs.
(In thousands)			31-Dec-15		30-Sep-15		31-Dec-14		Q3 2015
Assets:
Cash and due from banks			$363,674		$320,555		$381,095		$43,119
Money market investments			2,180,092		2,408,571		1,822,386		(228,479	)
Trading account securities, at fair value			71,659		137,943		138,527		(66,284	)
Investment securities available-for-sale, at fair value			6,062,992		5,500,931		5,315,159		562,061
Investment securities held-to-maturity, at amortized cost			100,903		100,295		103,170		608
Other investment securities, at lower of cost or realizable value			172,248		173,657		161,906		(1,409	)
Loans held-for-sale, at lower of cost or fair value			137,000		171,019		106,104		(34,019	)
Loans held-in-portfolio:
		Loans not covered under loss-sharing agreements with the FDIC	22,453,813		22,601,271		19,498,286		(147,458	)
		Loans covered under loss-sharing agreements with the FDIC	646,115		665,428		2,542,662		(19,313	)
		Less: Unearned income	107,698		103,205		93,835		4,493
		Allowance for loan losses	537,111		570,514		601,792		(33,403	)
		Total loans held-in-portfolio, net	22,455,119		22,592,980		21,345,321		(137,861	)
FDIC loss-share asset			310,221		311,946		542,454		(1,725	)
Premises and equipment, net			502,611		495,103		494,581		7,508
Other real estate not covered under loss-sharing agreements with the FDIC			155,231		155,826		135,500		(595	)
Other real estate covered under loss-sharing agreements with the FDIC			36,685		35,701		130,266		984
Accrued income receivable			124,234		118,044		121,818		6,190
Mortgage servicing assets, at fair value			211,405		210,851		148,694		554
Other assets			2,200,963		2,221,054		1,646,443		(20,091	)
Goodwill			626,388		504,925		465,676		121,463
Other intangible assets			58,109		71,393		37,595		(13,284	)
Total assets			$35,769,534		$35,530,794		$33,096,695		$238,740
Liabilities and Stockholders’ Equity:
Liabilities:
	Deposits:
		Non-interest bearing	$6,401,515		$6,070,719		$5,783,748		$330,796
		Interest bearing	20,808,208		20,642,487		19,023,787		165,721
		Total deposits	27,209,723		26,713,206		24,807,535		496,517
Federal funds purchased and assets sold under agreements to repurchase			762,145		1,085,765		1,271,657		(323,620	)
Other short-term borrowings			1,200		1,200		21,200		-
Notes payable			1,670,309		1,674,511		1,711,828		(4,202	)
Other liabilities			1,019,018		1,004,676		1,012,029		14,342
Liabilities from discontinued operations			1,815		1,800		5,064		15
Total liabilities			30,664,210		30,481,158		28,829,313		183,052
Stockholders’ equity:
Preferred stock			50,160		50,160		50,160		-
Common stock			1,038		1,037		1,036		1
Surplus			4,229,156		4,200,805		4,196,458		28,351
Retained earnings			1,087,957		993,309		253,717		94,648
Treasury stock			(6,101	)	(5,869	)	(4,117	)	(232	)
Accumulated other comprehensive loss			(256,886	)	(189,806	)	(229,872	)	(67,080	)
		Total stockholders’ equity	5,105,324		5,049,636		4,267,382		55,688
Total liabilities and stockholders’ equity			$35,769,534		$35,530,794		$33,096,695		$238,740

Popular, Inc.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER
(Unaudited)
			Quarter ended					Quarter ended					Quarter ended					Variance							Variance
			31-Dec-15					30-Sep-15					31-Dec-14					Q4 2015 vs. Q3 2015							Q4 2015 vs. Q4 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		$8,602		$36.9	1.71	%	$8,667		$36.8	1.70	%	$7,220		$34.4	1.90	%	($65	)	$0.1		0.01		%	$1,382		$2.5		(0.19	)	%
	Loans not covered under loss-sharing agreements with the FDIC:
		Commercial	8,936		107.4	4.77		8,769		109.6	4.96		8,219		101.9	4.92		167		(2.2	)	(0.19	)		717		5.5		(0.15	)
		Construction	662		9.8	5.88		681		10.8	6.30		233		3.8	6.41		(19	)	(1.0	)	(0.42	)		429		6.0		(0.53	)
		Mortgage	6,947		90.6	5.22		7,072		88.8	5.02		6,538		84.1	5.15		(125	)	1.8		0.20			409		6.5		0.07
		Consumer	3,819		97.6	10.13		3,811		97.2	10.12		3,884		96.6	9.86		8		0.4		0.01			(65	)	1.0		0.27
		Lease financing	611		10.6	6.97		594		10.0	6.75		555		9.9	7.11		17		0.6		0.22			56		0.7		(0.14	)
		Total loans (excluding WB loans)	20,975		316.0	5.99		20,927		316.4	6.02		19,429		296.3	6.07		48		(0.4	)	(0.03	)		1,546		19.7		(0.08	)
	WB loans		2,156		47.9	8.82		2,221		48.0	8.59		2,615		61.3	9.31		(65	)	(0.1	)	0.23			(459	)	(13.4	)	(0.49	)
	Total loans		23,131		363.9	6.26		23,148		364.4	6.26		22,044		357.6	6.45		(17	)	(0.5	)	-			1,087		6.3		(0.19	)
	Total interest earning assets		31,733		$400.8	5.02	%	31,815		$401.2	5.02	%	29,264		$392.0	5.33	%	(82	)	($0.4	)	-		%	2,469		$8.8		(0.31	)	%
		Allowance for loan losses	(573	)				(559	)				(618	)				(14	)						45
		Other non-interest earning assets	4,416					4,584					4,171					(168	)						245
		Assets from discontinued operations	-					-					491					-							(491	)
	Total average assets		$35,576					$35,840					$33,308					$(264	)						$2,268
Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$5,547		$5.1	0.36	%	$5,742		$4.9	0.34	%	$4,788		$4.0	0.33	%	$(195	)	$0.2		0.02		%	$759		$1.1		0.03		%
		Savings	7,119		4.1	0.23		7,055		4.1	0.23		6,788		3.8	0.22		64		-		-			331		0.3		0.01
		Time deposits	8,192		19.2	0.93		8,158		19.4	0.94		7,409		17.7	0.95		34		(0.2	)	(0.01	)		783		1.5		(0.02	)
		Total interest bearing deposits	20,858		28.4	0.54		20,955		28.4	0.54		18,985		25.5	0.53		(97	)	-		-			1,873		2.9		0.01
	Borrowings[1]		2,439		21.8	3.57		2,861		22.1	3.09		2,992		21.0	2.80		(422	)	(0.3	)	0.48			(553	)	0.8		0.77
		Total interest bearing liabilities	23,297		50.2	0.86		23,816		50.5	0.84		21,977		46.5	0.84		(519	)	(0.3	)	0.02			1,320		3.7		0.02
		Net interest spread				4.16	%				4.18	%				4.49	%					(0.02	)	%					(0.33	)	%
	Non-interest bearing deposits		6,246					6,144					5,636					102							610
	Other liabilities		953					876					849					77							104
	Liabilities from discontinued operations		2					2					486					-							(484	)
	Stockholders' equity		5,078					5,002					4,360					76							718
		Total average liabilities and stockholders' equity	$35,576					$35,840					$33,308					$(264	)						$2,268
Adjusted net interest income / margin non-taxable equivalent basis					$350.6	4.39	%			$350.7	4.39	%			$345.5	4.70	%			($0.1	)	-		%			$5.1		(0.31	)	%
Doral fair value remeasurement adjustment					1.9					-					-					1.9							1.9
Impact of fees related to repos refinancing					-					-					18.6					-							(18.6	)
Net interest income / margin non-taxable equivalent basis					$352.5	4.42	%			$350.7	4.39	%			$326.9	4.45	%			$1.8		0.03		%			$25.6		(0.03	)	%
(1) Borrowing expense for the fourth quarter of 2014, including the fees related to repos financing, was 5.27%.

Popular, Inc.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE
(Unaudited)
			Year ended					Year ended
			31-Dec-15					31-Dec-14					Variance
			Average		Income /	Yield /		Average		Income /	Yield /		Average		Income /		Yield /
($ amounts in millions; yields not on a taxable equivalent basis)			balance		Expense	Rate		balance		Expense	Rate		balance		Expense		Rate
Assets:
Interest earning assets:
	Money market, trading and investment securities		$8,406		$144.3	1.72	%	$7,530		$154.8	2.06	%	$876		($10.5	)	(0.34	)	%
	Loans not covered under loss-sharing agreements with the FDIC:
		Commercial	8,705		424.8	4.88		8,347		404.4	4.85		358		20.4		0.03
		Construction	616		36.7	5.96		199		13.5	6.78		417		23.2		(0.82	)
		Mortgage	6,978		360.4	5.16		6,641		340.4	5.12		337		20.0		0.04
		Consumer	3,824		387.2	10.13		3,861		386.7	10.01		(37	)	0.5		0.12
		Lease financing	589		40.8	6.91		548		40.1	7.33		41		0.7		(0.42	)
		Total loans (excluding WB loans)	20,712		1,249.9	6.03		19,596		1,185.1	6.05		1,116		64.8		(0.02	)
	WB loans		2,333		208.8	8.95		2,771		293.6	10.60		(438	)	(84.8	)	(1.65	)
	Total loans		23,045		1,458.7	6.33		22,367		1,478.7	6.61		678		(20.0	)	(0.28	)
	Total interest earning assets		31,451		$1,603.0	5.10	%	29,897		$1,633.5	5.46	%	1,554		($30.5	)	(0.36	)	%
		Allowance for loan losses	(585	)				(623	)				38
		Other non-interest earning assets	4,320					4,466					(146	)
		Assets from discontinued operations	-					1,442					(1,442	)
	Total average assets		$35,186					$35,182					$4
Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$5,447		$19.0	0.35	%	$4,824		$15.5	0.32	%	$623		$3.5		0.03		%
		Savings	7,027		16.2	0.23		6,733		14.7	0.22		294		1.5		0.01
		Time deposits	8,158		72.3	0.89		7,556		74.9	0.99		602		(2.6	)	(0.10	)
		Total interest bearing deposits	20,632		107.5	0.52		19,113		105.1	0.55		1,519		2.4		(0.03	)
	Borrowings [1]		2,757		86.5	3.14		3,514		130.0	3.70		(757	)	(43.5	)	(0.56	)
		Total interest bearing liabilities	23,389		194.0	0.83		22,627		235.1	1.04		762		(41.1	)	(0.21	)
		Net interest spread				4.27	%				4.42	%					(0.15	)	%
	Non-interest bearing deposits		6,147					5,534					613
	Other liabilities		944					879					65
	Liabilities from discontinued operations		2					1,586					(1,584	)
	Stockholders' equity		4,704					4,556					148
		Total average liabilities and stockholders' equity	$35,186					$35,182					$4
Adjusted net interest income / margin non-taxable equivalent basis					$1,409.0	4.48	%			$1,398.4	4.67	%			$10.6		(0.19	)	%
Impact of fees related to repos refinancing					-					39.2					(39.2	)
Accelerated amortization TARP discount and related deferred costs					-					414.1					(414.1	)
Net interest income / margin non-taxable equivalent basis					$1,409.0	4.48	%			$945.1	3.16	%			$463.9		1.32		%
(1) Borrowing expense for 2014 including the fees related to repo refinancing and the impact of the accelerated TARP amortization was 16.60%.

Popular, Inc.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table F - Mortgage Banking Activities and Other Service Fees
(Unaudited)
Mortgage Banking Activities								Variance
		Quarters ended						Q4 2015 vs.		Q4 2015 vs.		Years ended				Variance
(In thousands)		31-Dec-15		30-Sep-15		31-Dec-14		Q3 2015		Q4 2014		31-Dec-15		31-Dec-14		2015 vs. 2014
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$15,504		$17,020		$9,364		$(1,516	)	$6,140		$59,461		$41,761		$17,700
	Mortgage servicing rights fair value adjustments	(2,096	)	1,038		(6,259	)	(3,134	)	4,163		(7,904	)	(24,683	)	16,779
Total mortgage servicing fees, net of fair value adjustments		13,408		18,058		3,105		(4,650	)	10,303		51,557		17,078		34,479
Net gain on sale of loans, including valuation on loans held-for-sale		10,337		9,698		8,382		639		1,955		35,336		31,213		4,123
Trading account loss:
	Unrealized gains (losses) on outstanding derivative positions	27		(69	)	(1	)	96		28		17		(726	)	743
	Realized (losses) gains on closed derivative positions	(342	)	(3,492	)	(2,739	)	3,150		2,397		(5,108	)	(16,950	)	11,842
Total trading account loss		(315	)	(3,561	)	(2,740	)	3,246		2,425		(5,091	)	(17,676	)	12,585
Total mortgage banking activities		$23,430		$24,195		$8,747		$(765	)	$14,683		$81,802		$30,615		$51,187
Other Service Fees								Variance
		Quarters ended						Q4 2015 vs.		Q4 2015 vs.		Years ended				Variance
(In thousands)		31-Dec-15		30-Sep-15		31-Dec-14		Q3 2015		Q4 2014		31-Dec-15		31-Dec-14		2015 vs. 2014
Other service fees:
	Debit card fees	$11,768		$11,288		$10,929		$480		$839		$46,176		$43,146		$3,030
	Insurance fees	23,813		14,517		17,711		9,296		6,102		63,976		54,158		9,818
	Credit card fees	17,528		16,879		17,493		649		35		68,166		67,639		527
	Sale and administration of investment products	5,578		5,737		7,193		(159	)	(1,615	)	23,846		27,711		(3,865	)
	Trust fees	4,947		4,403		4,469		544		478		18,866		18,209		657
	Other fees	3,294		3,291		3,345		3		(51	)	15,060		14,402		658
Total other service fees		$66,928		$56,115		$61,140		$10,813		$5,788		$236,090		$225,265		$10,825

Popular, Inc.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table G - Loans and Deposits
(Unaudited)
Loans - Ending Balances
				Variance
(In thousands)	31-Dec-15	30-Sep-15	31-Dec-14	Q4 2015 vs. Q3 2015		Q4 2015 vs. Q4 2014
Loans not covered under FDIC loss-sharing agreements:
Commercial	$10,099,163	$10,130,424	$8,134,267	$(31,261	)	$1,964,896
Construction	681,106	692,492	251,820	(11,386	)	429,286
Legacy [1]	64,436	67,974	80,818	(3,538	)	(16,382	)
Lease financing	627,650	606,927	564,389	20,723		63,261
Mortgage	7,036,081	7,165,479	6,502,886	(129,398	)	533,195
Consumer	3,837,679	3,834,770	3,870,271	2,909		(32,592	)
Total non-covered loans held-in-portfolio	$22,346,115	$22,498,066	$19,404,451	$(151,951	)	$2,941,664
Loans covered under FDIC loss-sharing agreements	646,115	665,428	2,542,662	(19,313	)	(1,896,547	)
Total loans held-in-portfolio	$22,992,230	$23,163,494	$21,947,113	$(171,264	)	$1,045,117
Loans held-for-sale:
Commercial	$45,074	$47,447	$309	$(2,373	)	$44,765
Construction	95	10	-	85		95
Legacy [1]	-	-	319	-		(319	)
Mortgage	91,831	123,562	100,166	(31,731	)	(8,335	)
Consumer	-	-	5,310	-		(5,310	)
Total loans held-for-sale	$137,000	$171,019	$106,104	$(34,019	)	$30,896
Total loans	$23,129,230	$23,334,513	$22,053,217	$(205,283	)	$1,076,013
[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-Dec-15	30-Sep-15	31-Dec-14	Q4 2015 vs. Q3 2015		Q4 2015 vs. Q4 2014
Demand deposits [1]	$7,221,238	$7,027,672	$6,606,060	$193,566		$615,178
Savings, NOW and money market deposits (non-brokered)	11,440,693	11,178,357	10,320,782	262,336		1,119,911
Savings, NOW and money market deposits (brokered)	382,424	405,903	406,248	(23,479	)	(23,824	)
Time deposits (non-brokered)	7,274,157	6,870,816	5,960,401	403,341		1,313,756
Time deposits (brokered CDs)	891,211	1,230,458	1,514,044	(339,247	)	(622,833	)
Total deposits	$27,209,723	$26,713,206	$24,807,535	$496,517		$2,402,188
[1] Includes interest and non-interest bearing demand deposits.

Popular, Inc.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table H - Non-Performing Assets
(Unaudited)
													Variance
(Dollars in thousands)	31-Dec-15		As a % of loans HIP by category		30-Sep-15		As a % of loans HIP by category		31-Dec-14		As a % of loans HIP by category		Q4 2015 vs. Q3 2015		Q4 2015 vs. Q4 2014
Non-accrual loans:
Commercial	$181,816		1.8	%	$239,397		2.4	%	$260,225		3.2	%	$(57,581	)	$(78,409	)
Construction	3,550		0.5		3,605		0.5		13,812		5.5		(55	)	(10,262	)
Legacy [1]	3,649		5.7		4,059		6.0		1,545		1.9		(410	)	2,104
Lease financing	3,009		0.5		3,091		0.5		3,102		0.5		(82	)	(93	)
Mortgage	351,471		5.0		343,410		4.8		304,913		4.7		8,061		46,558
Consumer	58,304		1.5		41,340		1.1		46,886		1.2		16,964		11,418
Total non-performing loans held-in-portfolio, excluding covered loans	601,799		2.7	%	634,902		2.8	%	630,483		3.3	%	(33,103	)	(28,684	)
Non-performing loans held-for-sale [2]	45,169				47,681				18,899				(2,512	)	26,270
Other real estate owned (“OREO”), excluding covered OREO	155,231				155,826				135,500				(595	)	19,731
Total non-performing assets, excluding covered assets	802,199				838,409				784,882				(36,210	)	17,317
Covered loans and OREO	40,571				39,888				148,099				683		(107,528	)
Total non-performing assets	$842,770				$878,297				$932,981				$(35,527	)	$(90,211	)
Accruing loans past due 90 days or more [3]	$446,419				$443,497				$447,990				$2,922		$(1,571	)
Ratios excluding covered loans:
Non-performing loans held-in-portfolio to loans held-in-portfolio	2.69	%			2.82	%			3.25	%
Allowance for loan losses to loans held-in-portfolio	2.25				2.38				2.68
Allowance for loan losses to non-performing loans, excluding loans held-for-sale	83.57				84.42				82.43
Ratios including covered loans:
Non-performing assets to total assets	2.36	%			2.47	%			2.82	%
Non-performing loans held-in-portfolio to loans held-in-portfolio	2.63				2.76				2.95
Allowance for loan losses to loans held-in-portfolio	2.34				2.46				2.74
Allowance for loan losses to non-performing loans, excluding loans held-for-sale	88.68				89.27				92.82
[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 December 31, 2015 consisted of $45 million in commercial loans and $95 thousand in construction loan (September 30, 2015 - $47 million in commercial loans, $10 thousand in construction loan and $224 thousand in mortgage loans; December 31, 2014 - $14.0 million in mortgage loans, $309 thousand in commercial loans and $4.5 million in consumer 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 $164 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2015 (September 30, 2015 - $159 million; December 31, 2014 - $125 million). Furthermore, the Corporation has approximately $70 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 (September 30, 2015 - $71 million; December 31, 2014 - $66 million).

Popular, Inc.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table I - Activity in Non-Performing Loans
(Unaudited)
Commercial loans held-in-portfolio:
		Quarter ended						Quarter ended
		31-Dec-15						30-Sep-15
(In thousands)		BPPR		BPNA		Popular, Inc.		BPPR		BPNA		Popular, Inc.
Beginning balance NPLs		$235,895		$3,502		$239,397		$179,399		$10,895		$190,294
Plus:
	New non-performing loans	17,771		3,339		21,110		91,393		2,125		93,518
	Advances on existing non-performing loans	-		-		-		-		6		6
Less:
	Non-performing loans transferred to OREO	(852	)	-		(852	)	(853	)	-		(853	)
	Non-performing loans charged-off	(44,423	)	(232	)	(44,655	)	(13,999	)	(229	)	(14,228	)
	Loans returned to accrual status / loan collections	(9,144	)	(2,222	)	(11,366	)	(20,045	)	(1,525	)	(21,570	)
	Loans transferred to held-for-sale	-		(473	)	(473	)	-		-		-
	Non-performing loans sold	(21,345	)	-		(21,345	)	-		-		-
	Other transfers out of non-performing	-		-		-		-		(7,770	)	(7,770	)
Ending balance NPLs		$177,902		$3,914		$181,816		$235,895		$3,502		$239,397
Construction loans held-in-portfolio:
		Quarter ended						Quarter ended
		31-Dec-15						30-Sep-15
(In thousands)		BPPR		BPNA		Popular, Inc.		BPPR		BPNA		Popular, Inc.
Beginning balance NPLs		$3,605		$-		$3,605		$4,756		$671		$5,427
Plus:
	New non-performing loans	30		1,106		1,136		-		7,745		7,745
Less:
	Non-performing loans charged-off	(47	)	-		(47	)	(91	)	-		(91	)
	Loans returned to accrual status / loan collections	(38	)	(1,106	)	(1,144	)	(1,060	)	(8,416	)	(9,476	)
Ending balance NPLs		$3,550		$-		$3,550		$3,605		$-		$3,605
Mortgage loans held-in-portfolio:
		Quarter ended						Quarter ended
		31-Dec-15						30-Sep-15
(In thousands)		BPPR		BPNA		Popular, Inc.		BPPR		BPNA		Popular, Inc.
Beginning balance NPLs		$331,022		$12,388		$343,410		$318,773		$12,048		$330,821
Plus:
	New non-performing loans	85,208		7,208		92,416		93,768		5,816		99,584
Less:
	Non-performing loans transferred to OREO	(8,860	)	(452	)	(9,312	)	(8,450	)	-		(8,450	)
	Non-performing loans charged-off	(9,142	)	(300	)	(9,442	)	(15,212	)	(517	)	(15,729	)
	Loans returned to accrual status / loan collections	(60,295	)	(5,306	)	(65,601	)	(57,857	)	(4,959	)	(62,816	)
Ending balance NPLs		$337,933		$13,538		$351,471		$331,022		$12,388		$343,410
Legacy loans held-in-portfolio:
		Quarter ended						Quarter ended
		31-Dec-15						30-Sep-15
(In thousands)		BPPR		BPNA		Popular, Inc.		BPPR		BPNA		Popular, Inc.
Beginning balance NPLs		$-		$4,059		$4,059		$-		$4,686		$4,686
Plus:
	New non-performing loans	-		247		247		-		649		649
	Advances on existing non-performing loans	-		9		9		-		89		89
Less:
	Non-performing loans charged-off	-		(151	)	(151	)	-		(721	)	(721	)
	Loans returned to accrual status / loan collections	-		(515	)	(515	)	-		(644	)	(644	)
Ending balance NPLs		$-		$3,649		$3,649		$-		$4,059		$4,059
Total non-performing loans held-in-portfolio (excluding consumer and covered loans):
		Quarter ended						Quarter ended
		31-Dec-15						30-Sep-15
(In thousands)		BPPR		BPNA		Popular, Inc.		BPPR		BPNA		Popular, Inc.
Beginning balance NPLs		$570,522		$19,949		$590,471		$502,928		$28,300		$531,228
Plus:
	New non-performing loans	103,009		11,900		114,909		185,161		16,335		201,496
	Advances on existing non-performing loans	-		9		9		-		95		95
Less:
	Non-performing loans transferred to OREO	(9,712	)	(452	)	(10,164	)	(9,303	)	-		(9,303	)
	Non-performing loans charged-off	(53,612	)	(683	)	(54,295	)	(29,302	)	(1,467	)	(30,769	)
	Loans returned to accrual status / loan collections	(69,477	)	(9,149	)	(78,626	)	(78,962	)	(15,544	)	(94,506	)
	Loans transferred to held-for-sale	-		(473	)	(473	)	-		-		-
	Non-performing loans sold	(21,345	)	-		(21,345	)	-		-		-
	Other transfers out of non-performing	-		-		-		-		(7,770	)	(7,770	)
Ending balance NPLs		$519,385		$21,101		$540,486		$570,522		$19,949		$590,471

Popular, Inc.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)
	Quarter ended								Quarter ended								Quarter ended
	31-Dec-15								30-Sep-15								31-Dec-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	$536,005			$34,509		$570,514			$512,739			$38,074		$550,813			$521,687			$89,688		$611,375
Provision for loan losses - Continuing operations	57,711			820		58,531			69,568			(2,890	)	66,678			51,637			(3,646	)	47,991
	593,716			35,329		629,045			582,307			35,184		617,491			573,324			86,042		659,366
Net loans charged-off (recovered):
BPPR
Commercial	42,857			-		42,857			9,172			-		9,172			13,890			3,230		17,120
Construction	2,966			-		2,966			(2,648	)		-		(2,648	)		(279	)		(1,172	)	(1,451	)
Lease financing	667			-		667			894			-		894			751			-		751
Mortgage	14,255			1,168		15,423			15,524			601		16,125			12,228			2,725		14,953
Consumer	21,266			(15	)	21,251			24,303			74		24,377			25,933			(814	)	25,119
Total BPPR	82,011			1,153		83,164			47,245			675		47,920			52,523			3,969		56,492
BPNA
Commercial	(525	)		-		(525	)		(1,959	)		-		(1,959	)		(900	)		-		(900	)
Construction	-			-		-			-			-		-			(2	)		-		(2	)
Legacy [1]	(359	)		-		(359	)		(603	)		-		(603	)		(3,877	)		-		(3,877	)
Mortgage	162			-		162			787			-		787			(93	)		-		(93	)
Consumer	1,581			-		1,581			832			-		832			2,536			-		2,536
Total BPNA	859			-		859			(943	)		-		(943	)		(2,336	)		-		(2,336	)
Total loans charged-off - Popular, Inc.	82,870			1,153		84,023			46,302			675		46,977			50,187			3,969		54,156
Net (write-downs) recoveries [2]	(7,911	)		-		(7,911	)		-			-		-			(3,418	)		-		(3,418	)
Balance at end of period	$502,935			$34,176		$537,111			$536,005			$34,509		$570,514			$519,719			$82,073		$601,792
POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio	1.48		%			1.46		%	0.83		%			0.82		%	1.04		%			0.99		%
Provision for loan losses to net charge-offs [3]	0.70		x			0.70		x	1.50		x			1.42		x	0.99		x			0.85		x
BPPR
Annualized net charge-offs to average loans held-in-portfolio	1.86		%			1.82		%	1.07		%			1.04		%	1.33		%			1.22		%
Provision for loan losses to net charge-offs [3]	0.68		x			0.68		x	1.46		x			1.37		x	0.99		x			0.86		x
BPNA
Annualized net charge-offs (recoveries) to average loans held-in-portfolio						0.07		%						(0.08	)	%						(0.27	)	%
Provision for loan losses to net charge-offs						2.42								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] Net write-downs are related to loans sold or reclassified to held-for-sale.
[3] Excluding provision for loan losses and net write-down related to loans sold or reclassified to held-for-sale.
N.M. - Not meaningful.

	Year ended								Year ended
(Dollars in thousands)	31-Dec-15								31-Dec-14
	Non-covered loans			Covered loans		Total			Non-covered loans			Covered loans		Total
Balance at beginning of period	$519,719			$82,073		$601,792			$538,463			$102,092		$640,555
Provision for loan losses - Continuing operations	217,458			24,020		241,478			223,999			46,135		270,134
Provision (reversal of provision) for loan losses - Discontinued operations	-			-		-			(6,764	)		-		(6,764	)
	737,177			106,093		843,270			755,698			148,227		903,925
Net loans charged-off (recovered):
BPPR
Commercial	73,890			31,432		105,322			39,382			32,906		72,288
Construction	(886	)		20,386		19,500			(3,509	)		27,686		24,177
Lease financing	3,303			-		3,303			3,961			-		3,961
Mortgage	50,991			5,228		56,219			44,000			8,442		52,442
Consumer	83,876			11		83,887			96,655			(2,880	)	93,775
Total BPPR	211,174			57,057		268,231			180,489			66,154		246,643
BPNA
Commercial	(3,842	)		-		(3,842	)		1,105			-		1,105
Construction	-			-		-			(237	)		-		(237	)
Legacy [1]	(2,760	)		-		(2,760	)		(9,070	)		-		(9,070	)
Mortgage	1,279			-		1,279			1,196			-		1,196
Consumer	5,649			-		5,649			12,165			-		12,165
Discontinued operations	-			-		-			(5,545	)		-		(5,545	)
Total BPNA	326			-		326			(386	)		-		(386	)
Total loans charged-off (recovered) - Popular, Inc.	211,500			57,057		268,557			180,103			66,154		246,257
Balance transferred from covered to non-covered loans	13,037			(13,037	)	-			-			-		-
Net write-downs [3]	(35,779	)		(1,823	)	(37,602	)		(35,674	)		-		(35,674	)
Net write-downs related to loans transferred to discontinued operations	-			-		-			(20,202	)		-		(20,202	)
Balance at end of period	$502,935			$34,176		$537,111			$519,719			$82,073		$601,792
POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio	0.98		%			1.17		%	0.90		%			1.08		%
Provision for loan losses to net charge-offs [2]	1.03		x			0.90		x	1.17		x			1.04		x
BPPR
Annualized net charge-offs to average loans held-in-portfolio	1.24		%			1.45		%	1.14		%			1.33		%
Provision for loan losses to net charge-offs [2]	1.03		x			0.90		x	1.38		x			1.20		x
BPNA
Annualized net charge-offs to average loans held-in-portfolio						0.01		%						(0.01	)	%
Provision (reversal) for loan losses to net charge-offs						1.92		x						102.57		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 years ended December 31, 2015 and December 31, 2014.
[3] Net write-downs for the years ended December 31, 2015 and 2014 are related to loans sold or reclassified to held-for-sale.

Popular, Inc.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED
(Unaudited)
31-Dec-15
(Dollars in thousands)		Commercial			Construction			Legacy [3]			Mortgage			Lease financing			Consumer			Total [2]
Specific ALLL		$49,243			$264			$-			$44,029			$573			$23,963			$118,072
Impaired loans	[1]	$337,133			$2,481			$-			$471,932			$2,404			$111,836			$925,786
Specific ALLL to impaired loans	[1]	14.61		%	10.64		%	-		%	9.33		%	23.84		%	21.43		%	12.75		%
General ALLL		$147,590			$8,605			$2,687			$89,283			$10,420			$126,278			$384,863
Loans held-in-portfolio, excluding impaired loans	[1]	$9,762,030			$678,625			$64,436			$6,564,149			$625,246			$3,725,843			$21,420,329
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]	1.51		%	1.27		%	4.17		%	1.36		%	1.67		%	3.39		%	1.80		%
Total ALLL		$196,833			$8,869			$2,687			$133,312			$10,993			$150,241			$502,935
Total non-covered loans held-in-portfolio	[1]	$10,099,163			$681,106			$64,436			$7,036,081			$627,650			$3,837,679			$22,346,115
ALLL to loans held-in-portfolio	[1]	1.95		%	1.30		%	4.17		%	1.89		%	1.75		%	3.91		%	2.25		%
[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, 2015 the general allowance on the covered loans amounted to $34.2 million.
[3] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.
30-Sep-15
(Dollars in thousands)		Commercial			Construction			Legacy [3]			Mortgage			Lease financing			Consumer			Total [2]
Specific ALLL		$83,615			$358			$-			$47,545			$634			$24,696			$156,848
Impaired loans	[1]	$391,066			$2,536			$1,188			$462,806			$2,645			$113,865			$974,106
Specific ALLL to impaired loans	[1]	21.38		%	14.12		%	-		%	10.27		%	23.97		%	21.69		%	16.10		%
General ALLL		$146,846			$14,393			$2,805			$86,955			$8,457			$119,701			$379,157
Loans held-in-portfolio, excluding impaired loans	[1]	$9,739,358			$689,956			$66,786			$6,702,673			$604,282			$3,720,905			$21,523,960
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]	1.51		%	2.09		%	4.20		%	1.30		%	1.40		%	3.22		%	1.76		%
Total ALLL		$230,461			$14,751			$2,805			$134,500			$9,091			$144,397			$536,005
Total non-covered loans held-in-portfolio	[1]	$10,130,424			$692,492			$67,974			$7,165,479			$606,927			$3,834,770			$22,498,066
ALLL to loans held-in-portfolio	[1]	2.27		%	2.13		%	4.13		%	1.88		%	1.50		%	3.77		%	2.38		%
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of September 30, 2015 the general allowance on the covered loans amounted to $34.5 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.
Variance
(Dollars in thousands)		Commercial			Construction			Legacy			Mortgage			Lease financing			Consumer			Total
Specific ALLL		$(34,372	)		$(94	)		$-			$(3,516	)		$(61	)		$(733	)		$(38,776	)
Impaired loans		$(53,933	)		$(55	)		$(1,188	)		$9,126			$(241	)		$(2,029	)		$(48,320	)
General ALLL		$744			$(5,788	)		$(118	)		$2,328			$1,963			$6,577			$5,706
Loans held-in-portfolio, excluding impaired loans		$22,672			$(11,331	)		$(2,350	)		$(138,524	)		$20,964			$4,938			$(103,631	)
Total ALLL		$(33,628	)		$(5,882	)		$(118	)		$(1,188	)		$1,902			$5,844			$(33,070	)
Total non-covered loans held-in-portfolio		$(31,261	)		$(11,386	)		$(3,538	)		$(129,398	)		$20,723			$2,909			$(151,951	)

Popular, Inc.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS
(Unaudited)
31-Dec-15
Puerto Rico
(In thousands)		Commercial		Construction		Mortgage		Lease financing		Consumer		Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$49,243		$264		$42,965		$573		$23,478		$116,523
	General ALLL non-covered loans	137,682		4,693		85,362		10,420		115,243		353,400
ALLL - non-covered loans		186,925		4,957		128,327		10,993		138,721		469,923
	Specific ALLL covered loans	-		-		-		-		-		-
	General ALLL covered loans	-		-		33,967		-		209		34,176
ALLL - covered loans		-		-		33,967		-		209		34,176
Total ALLL		$186,925		$4,957		$162,294		$10,993		$138,930		$504,099
Loans held-in-portfolio:
	Impaired non-covered loans	$337,133		$2,481		$465,117		$2,404		$109,660		$916,795
	Non-covered loans held-in-portfolio, excluding impaired loans	7,031,086		98,467		5,662,374		625,246		3,236,642		16,653,815
Non-covered loans held-in-portfolio		7,368,219		100,948		6,127,491		627,650		3,346,302		17,570,610
	Impaired covered loans	-		-		-		-		-		-
	Covered loans held-in-portfolio, excluding impaired loans	-		-		627,102		-		19,013		646,115
Covered loans held-in-portfolio		-		-		627,102		-		19,013		646,115
Total loans held-in-portfolio		$7,368,219		$100,948		$6,754,593		$627,650		$3,365,315		$18,216,725
30-Sep-15
Puerto Rico
(In thousands)		Commercial		Construction		Mortgage		Lease financing		Consumer		Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$83,615		$358		$46,956		$634		$24,221		$155,784
	General ALLL non-covered loans	137,352		11,223		83,109		8,457		108,285		348,426
ALLL - non-covered loans		220,967		11,581		130,065		9,091		132,506		504,210
	Specific ALLL covered loans	-		-		-		-		-		-
	General ALLL covered loans	-		-		34,334		-		175		34,509
ALLL - covered loans		-		-		34,334		-		175		34,509
Total ALLL		$220,967		$11,581		$164,399		$9,091		$132,681		$538,719
Loans held-in-portfolio:
	Impaired non-covered loans	$391,066		$2,536		$457,631		$2,645		$111,683		$965,561
	Non-covered loans held-in-portfolio, excluding impaired loans	7,130,678		106,142		5,762,764		604,282		3,249,213		16,853,079
Non-covered loans held-in-portfolio		7,521,744		108,678		6,220,395		606,927		3,360,896		17,818,640
	Impaired covered loans	-		-		-		-		-		-
	Covered loans held-in-portfolio, excluding impaired loans	-		-		645,663		-		19,765		665,428
Covered loans held-in-portfolio		-		-		645,663		-		19,765		665,428
Total loans held-in-portfolio		$7,521,744		$108,678		$6,866,058		$606,927		$3,380,661		$18,484,068
Variance
(In thousands)		Commercial		Construction		Mortgage		Lease financing		Consumer		Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$(34,372	)	$(94	)	$(3,991	)	$(61	)	$(743	)	$(39,261	)
	General ALLL non-covered loans	330		(6,530	)	2,253		1,963		6,958		4,974
ALLL - non-covered loans		(34,042	)	(6,624	)	(1,738	)	1,902		6,215		(34,287	)
	Specific ALLL covered loans	-		-		-		-		-		-
	General ALLL covered loans	-		-		(367	)	-		34		(333	)
ALLL - covered loans		-		-		(367	)	-		34		(333	)
Total ALLL		$(34,042	)	$(6,624	)	$(2,105	)	$1,902		$6,249		$(34,620	)
Loans held-in-portfolio:
	Impaired non-covered loans	$(53,933	)	$(55	)	$7,486		$(241	)	$(2,023	)	$(48,766	)
	Non-covered loans held-in-portfolio, excluding impaired loans	(99,592	)	(7,675	)	(100,390	)	20,964		(12,571	)	(199,264	)
Non-covered loans held-in-portfolio		(153,525	)	(7,730	)	(92,904	)	20,723		(14,594	)	(248,030	)
	Impaired covered loans	-		-		-		-		-		-
	Covered loans held-in-portfolio, excluding impaired loans	-		-		(18,561	)	-		(752	)	(19,313	)
Covered loans held-in-portfolio		-		-		(18,561	)	-		(752	)	(19,313	)
Total loans held-in-portfolio		$(153,525	)	$(7,730	)	$(111,465	)	$20,723		$(15,346	)	$(267,343	)

Popular, Inc.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS
(Unaudited)
31-Dec-15
U.S. Mainland
(In thousands)		Commercial	Construction		Legacy		Mortgage		Consumer		Total
Allowance for credit losses:
	Specific ALLL	$-	$-		$-		$1,064		$485		$1,549
	General ALLL	9,908	3,912		2,687		3,921		11,035		31,463
Total ALLL		$9,908	$3,912		$2,687		$4,985		$11,520		$33,012
Loans held-in-portfolio:
	Impaired loans	$-	$-		$-		$6,815		$2,176		$8,991
	Loans held-in-portfolio, excluding impaired loans	2,730,944	580,158		64,436		901,775		489,201		4,766,514
Total loans held-in-portfolio		$2,730,944	$580,158		$64,436		$908,590		$491,377		$4,775,505
30-Sep-15
U.S. Mainland
(In thousands)		Commercial	Construction		Legacy		Mortgage		Consumer		Total
Allowance for credit losses:
	Specific ALLL	$-	$-		$-		$589		$475		$1,064
	General ALLL	9,494	3,170		2,805		3,846		11,416		30,731
Total ALLL		$9,494	$3,170		$2,805		$4,435		$11,891		$31,795
Loans held-in-portfolio:
	Impaired loans	$-	$-		$1,188		$5,175		$2,182		$8,545
	Loans held-in-portfolio, excluding impaired loans	2,608,680	583,814		66,786		939,909		471,692		4,670,881
Total loans held-in-portfolio		$2,608,680	$583,814		$67,974		$945,084		$473,874		$4,679,426
Variance
(In thousands)		Commercial	Construction		Legacy		Mortgage		Consumer		Total
Allowance for credit losses:
	Specific ALLL	$-	$-		$-		$475		$10		$485
	General ALLL	414	742		(118	)	75		(381	)	732
Total ALLL		$414	$742		$(118	)	$550		$(371	)	$1,217
Loans held-in-portfolio:
	Impaired loans	$-	$-		$(1,188	)	$1,640		$(6	)	$446
	Loans held-in-portfolio, excluding impaired loans	122,264	(3,656	)	(2,350	)	(38,134	)	17,509		95,633
Total loans held-in-portfolio		$122,264	$(3,656	)	$(3,538	)	$(36,494	)	$17,503		$96,079

Popular, Inc.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table N - Reconciliation to GAAP Financial Measures
(Unaudited)
(In thousands, except share or per share information)	31-Dec-15			30-Sep-15			31-Dec-14
Total stockholders’ equity	$5,105,324			$5,049,636			$4,267,382
Less: Preferred stock	(50,160	)		(50,160	)		(50,160	)
Less: Goodwill	(626,388	)		(504,925	)		(465,676	)
Less: Other intangibles	(58,109	)		(71,393	)		(37,595	)
Total tangible common equity	$4,370,667			$4,423,158			$3,713,951
Total assets	$35,769,534			$35,530,794			$33,096,695
Less: Goodwill	(626,388	)		(504,925	)		(465,676	)
Less: Other intangibles	(58,109	)		(71,393	)		(37,595	)
Total tangible assets	$35,085,037			$34,954,476			$32,593,424
Tangible common equity to tangible assets	12.46		%	12.65		%	11.39		%
Common shares outstanding at end of period	103,618,976			103,556,285			103,476,847
Tangible book value per common share	$42.18			$42.71			$35.89

Popular, Inc.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table O - Financial Information - Westernbank Loans
(Unaudited)
Revenues
		Quarters ended
(In thousands)		31-Dec-15		30-Sep-15		Variance
Interest income on WB loans		$47,870		$47,982		$(112	)
FDIC loss-share (expense) income:
Amortization of indemnification asset		(3,926	)	(3,931	)	5
80% mirror accounting on credit impairment losses (reversal) [1]		(52	)	(183	)	131
80% mirror accounting on reimbursable expenses		2,654		6,276		(3,622	)
80% mirror accounting on recoveries on covered assets, including rental income on OREOs, subject to reimbursement to the FDIC		(6,014	)	-		(6,014	)
Change in true-up payment obligation		2,782		(1,058	)	3,840
Other		197		103		94
	Total FDIC loss-share (expense) income	(4,359	)	1,207		(5,566	)
Total revenues		43,511		49,189		(5,678	)
Provision for loan losses		7,817		20,206		(12,389	)
Total revenues less provision for loan losses		$35,694		$28,983		$6,711
[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 [2]
(In thousands)		[1] 31-Dec-15		30-Sep-15		Variance
Professional fees		$6,315		$4,606		$1,709
OREO expenses		1,911		2,033		(122	)
Other operating expenses		2,603		3,842		(1,239	)
Total operating expenses		$10,829		$10,481		$348
[1]	Includes expenses related to loans subject to the FDIC loss-sharing agreement and loans not subject to the FDIC loss-sharing agreement.
[2]	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-Dec-15		30-Sep-15		Variance
Loans		$2,156		$2,221		$(65	)
FDIC loss-share asset		303		330		(27	)

Activity in the carrying amount and accretable yield of loans accounted for under ASC 310-30
		Quarters ended
		31-Dec-15				30-Sep-15
(In thousands)		Accretable yield		Carrying amount of loans		Accretable yield		Carrying amount of loans
Beginning balance		$1,145,449		$2,076,012		$1,245,924		$2,137,078
Accretion		(46,582	)	46,582		(46,693	)	46,693
Changes in expected cash flows		13,591		-		(53,782	)	-
Collections / charge-offs		-		(148,093	)	-		(107,759	)
Ending balance		1,112,458		1,974,501		1,145,449		2,076,012
	Allowance for loan losses - ASC 310-30 loans	-		(63,563	)	-		(64,583	)
Ending balance, net of allowance for loan losses		$1,112,458		$1,910,938		$1,145,449		$2,011,429
The carrying amount of loans acquired from Westernbank and accounted for under ASC 310-30 which remain subject to the loss-sharing agreement with the FDIC amounted to approximately $636 million as of December 31, 2015.
Activity in the carrying amount of the FDIC indemnity asset
				Quarters ended
(In thousands)				31-Dec-15				30-Sep-15
Balance at beginning of period				$311,946				$392,947
Amortization				(3,926	)			(3,931	)
Credit impairment losses (reversal) to be covered under loss-sharing agreements				(52	)			(183	)
Reimbursable expenses to be covered under loss-sharing agreements				2,654				6,276
Net payments from FDIC under loss-sharing agreements				(2,560	)			(80,993	)
Other adjustments attributable to FDIC loss-sharing agreements				2,159				(2,170	)
Balance at end of period				$310,221				$311,946
Activity in the remaining FDIC loss-share asset amortization
				Quarters ended
(In thousands)				31-Dec-15				30-Sep-15
Balance at beginning of period				$27,367				$28,493
Amortization				(3,926	)			(3,931	)
Impact of lower projected losses				2,659				2,805
Balance at end of period				$26,100				$27,367

POPULAR, INC.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table P - Restructuring Charges
(Unaudited)
Restructuring Charges
		Quarters ended
(In thousands)		31-Dec-15		30-Sep-15			Variance
Personnel costs	$	209	$	496		$	(287	)
Net occupancy expenses		222		208			14
Equipment expenses		8		15			(7	)
Professional fees		349		(406	)		755
Other operating expenses		216		168			48
Total restructuring costs	$	1,004	$	481		$	523

Popular, Inc.
Financial Supplement to Fourth Quarter 2015 Earnings Release
Table Q - Adjusted Consolidated Statement of Operations for the Years Ended December 31, 2015 and 2014 (Non-GAAP)
(Unaudited)
	Year ended
	31-Dec-15
(In thousands)	Actual Results (U.S. GAAP)		BPNA Reorganization [2]		Doral Transaction [3]		OTTI [4]		Reversal of DTA – U.S. Operations [5]		Loss on Bulk Sale of Covered OREOs [6]		Adjustment to FDIC Indemnification Assets [7]		MSRs Acquired [8]	Impairment of Loans Under Proposed Portfolio Sale [9]		Bulk Sale [10]		Adjusted Results (Non-GAAP)
Net interest income	$1,408,983		$-		$-		$-		$-		$-		$-		$-	$-		$-		$1,408,983
Provision for loan losses – non-covered loans	217,458		-		-		-		-		-		-		-	15,190		5,852		196,416
Provision for loan losses – covered loans [1]	24,020		-		-		-		-		-		-		-	-		-		24,020
Net interest income after provision for loan losses	1,167,505		-		-		-		-		-		-		-	(15,190	)	(5,852	)	1,188,547
Mortgage banking activities	81,802		-		844		-		-		-		-		4,378	-		-		76,580
Other-than-temporary impairment losses on investment securities	(14,445	)	-		-		(14,445	)	-		-		-		-	-		-		-
FDIC loss-share (expense) income	20,062		-		-		-		-		17,566		(10,887	)	-	-		-		13,383
Other non-interest income	432,122		-		2,072		-		-		-		-			-		-		430,050
Total non-interest income	519,541		-		2,916		(14,445	)	-		17,566		(10,887	)	4,378	-		-		520,013
Personnel costs	477,519		-		7,103		-		-		-		-		-	-		-		470,416
Net occupancy expenses	86,888		-		4,103		-		-		-		-		-	-		-		82,785
Equipment expenses	60,110		-		725		-		-		-		-		-	-		-		59,385
Professional fees	308,985		-		15,481		-		-		-		-		-	-		-		293,504
Communications	25,146		-		70		-		-		-		-		-	-		-		25,076
Business promotion	52,076		-		501		-		-		-		-		-	-		-		51,575
Other real estate owned (OREO) expenses	85,568		-		-		-		-		21,957		-		-	-		-		63,611
Amortization of intangibles	11,019		-		-		-		-		-		-		-	-		-		11,019
Restructuring costs	18,412		18,412		-		-		-		-		-		-	-		-		-
Other operating expenses	162,498		-		509		-		-		-		-		-	-		-		161,989
Total operating expenses	1,288,221		18,412		28,492		-		-		21,957		-		-	-		-		1,219,360
Income (loss) from continuing operations before income tax	398,825		(18,412	)	(25,576	)	(14,445	)	-		(4,391	)	(10,887	)	4,378	(15,190	)	(5,852	)	489,200
Income tax (benefit) expense	(495,172	)	-		(7,690	)	(2,486	)	(589,030	)	(1,712	)	(2,177	)	1,707	(5,924	)	(2,282	)	114,422
Income (loss) from continuing operations	$893,997		$(18,412	)	$(17,886	)	$(11,959	)	$589,030		$(2,679	)	$(8,710	)	$2,671	$(9,266	)	$(3,570	)	$374,778
Income from discontinued operations, net of tax	$1,347		$1,347		$-		$-		$-		$-		$-		$-	$-		$-		-
Net income (loss)	$895,344		$(17,065	)	$(17,886	)	$(11,959	)	$589,030		$(2,679	)	$(8,710	)	$2,671	$(9,266	)	$(3,570	)	$374,778
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under an FDIC loss-sharing agreement.
[2] Represents restructuring charges associated with the reorganization of BPNA.
[3] Includes approximately $0.8 million of fees charged for loan servicing cost to the FDIC, $2.1 million of fees charged for services provided to the alliance co-bidders, personnel costs related to former Doral Bank employees retained on a temporary basis and incentive compensation for an aggregate of $7.1 million, building rent expense of Doral Bank’s administrative offices for $4.1 million, professional fees and business promotion expenses directly associated with the Doral Bank Transaction and systems conversion for $16.0 million and other expenses, including equipment, business promotions and communications, of $1.3 million.
[4] Represents an other than temporary impairment (“OTTI”) recorded on Puerto Rico government investment securities available-for-sale. These securities had an amortized cost of approximately $41.1 million and a market value of $26.6 million. Based on the fiscal and economic situation in Puerto Rico, together with the government’s announcements regarding its ability to pay its debt, the Corporation determined that the unrealized loss, a portion of which had been in an unrealized loss for a period exceeding twelve months, was other than temporary.
[5] Represents the partial reversal of the valuation allowance of a portion of the deferred tax asset amounting to approximately $1.2 billion, at the U.S. operations.
[6] Represents the loss on a bulk sale of covered OREOs completed in the second quarter and the related mirror accounting of the 80% reimbursable from the FDIC.
[7] The quarter’s negative amortization of the FDIC’s Indemnification Asset included a $10.9 million expense related to losses incurred by the corporation that were not claimed to the FDIC before the expiration of the loss-share portion of the agreement on June 30, 2015, and that are not subject to the ongoing arbitrations.
[8] Represents the fair value of mortgage servicing rights acquired for a portfolio previously serviced by Doral Bank, for which the Corporation acted as a backup servicer, under a pre-existing contract.
[9] Represents impairment based on the estimated fair value of loans acquired from Westernbank, that the Corporation has the intent to sell and are subject to the ongoing arbitration with the FDIC.
[10] Represents the impact of a bulk sale of loans at the BPPR segment, which had a book value of approximately $34.4 million.

Year ended
31-Dec-14
(In thousands)	Actual Results (U.S. GAAP)		TARP repayment discount amortization and Income Tax adjustments [2]		BPNA Reorganization [3]		Income Tax Adjustments [4]		Indemnification Asset Adjustment [5]	Other Adjustments [6]		Adjusted Results (Non-GAAP)
Net interest income	$945,072		$(414,068	)	$(39,254	)	$-		$-	$-		$1,398,394
Provision for loan losses – non-covered loans	223,999		-		12,828		-		-	-		211,171
Provision for loan losses – covered loans [1]	46,135		-		-		-		-	-		46,135
Net interest income after provision for loan losses	674,938		(414,068	)	(52,082	)	-		-	-		1,141,088
Mortgage banking activities	30,615		-		-		-		-	-		30,615
Net gain on sale of loans, including valuation adjustments on loans held-for-sale	40,591		-		1,684		-		-	-		38,907
FDIC loss-share income (expense)	(103,024	)	-		-		-		12,492	-		(115,516	)
Other non-interest income	418,333		-		-		-		-	-		418,333
Total non-interest income	386,515		-		1,684		-		12,492	-		372,339
Personnel costs	418,679		-		-		-		-	2,974		415,705
Net occupancy expenses	86,707		-		-		-		-	1,895		84,812
Equipment expenses	48,917		-		-		-		-	-		48,917
Loss on early extinguishment of debt	532		-		532		-		-	-		-
Professional fees	282,055		-		-		-		-	-		282,055
Communications	25,684		-		-		-		-	-		25,684
Business promotion	54,016		-		-		-		-	-		54,016
Other real estate owned (OREO) expenses	49,611		-		-		-		-	-		49,611
Restructuring costs	26,725		-		26,725		-		-	-		-
Other operating expenses	200,758		-		-		-		-	-		200,758
Total operating expenses	1,193,684		-		27,257		-		-	4,869		1,161,558
(Loss) income from continuing operations before income tax	(132,231	)	(414,068	)	(77,655	)	-		12,492	(4,869	)	351,869
Income tax expense	58,279		(15,393	)	-		20,048		2,498	-		51,126
(Loss) income from continuing operations	$(190,510	)	$(398,675	)	$(77,655	)	$(20,048	)	$9,994	$(4,869	)	$300,743
(Loss) income from discontinued operations, net of tax	$(122,980	)	$-		$(122,980	)	$-		$-	$-		$-
Net (loss) income	$(313,490	)	$(398,675	)	$(200,635	)	$(20,048	)	$9,994	$(4,869	)	$300,743
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under an FDIC loss-sharing agreement.
[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 $8.0 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.
[3] Includes the aggregated impact of $39.8 million refinancing fees of structured repos, net loss of $11.1 million in bulk loan sales and $26.7 million in restructuring incurred in connection with the reorganization of PCB.
[4] 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 for 15% to 20%. As a result, the Corporation recognized an income tax expense of $20.0 million, mainly related to the deferred tax liability associated with the portfolio acquired from Westernbank.
[5] The FDIC indemnity asset amortization included a positive adjustment of $12.5 million to reverse the impact of accelerated amortization expense recorded in prior periods.
[6] Represents the impact of the compensation package granted upon separation of an officer of the Corporation equal to approximately $3.0 million and represents the net loss on the early cancellation of a lease at BPNA $1.9 million.

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