Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2011

Results of Operations and Total Assets

The tables that follow present the results of operations and total assets by reportable segments:

2011

For the quarter ended June 30, 2011
(In thousands)	Banco Popular de Puerto Rico			Banco Popular North America		Intersegment Eliminations
Net interest income	$	325,167		$	74,601	$	—
Provision for loan losses		119,324			24,993		—
Non-interest income		113,144			19,127		—
Amortization of intangibles		1,575			680		—
Depreciation expense		9,101			1,853		—
Loss on early extinguishment of debt		289			—		—
Other operating expenses		205,666			62,708		—
Income tax (benefit) expense		(37,476	)		934		—
Net income	$	139,832		$	2,560	$	—
Segment assets	$	29,790,465		$	8,895,036	$	(53,482	)

For the quarter ended June 30, 2011
(In thousands)	Reportable Segments			Corporate			Eliminations			Total Popular, Inc.
Net interest income (loss)	$	399,768		$	(25,441	)	$	215		$	374,542
Provision for loan losses		144,317			—			—			144,317
Non-interest income		132,271			9,781			(17,892	)		124,160
Amortization of intangibles		2,255			—			—			2,255
Depreciation expense		10,954			436			—			11,390
Loss on early extinguishment of debt		289			—			—			289
Other operating expenses		268,374			17,028			(17,536	)		267,866
Income tax benefit		(36,542	)		(1,556	)		(2	)		(38,100	)
Net income (loss)	$	142,392		$	(31,568	)	$	(139	)	$	110,685
Segment assets	$	38,632,019		$	5,368,602		$	(4,987,279	)	$	39,013,342

For the six months ended June 30, 2011
(In thousands)	Banco Popular de Puerto Rico		Banco Popular North America		Intersegment Eliminations
Net interest income	$	620,612	$	149,415	$	—
Provision for loan losses		186,580		33,056		—
Non-interest income		234,871		36,544		—
Amortization of intangibles		3,150		1,360		—
Depreciation expense		18,733		3,844		—
Loss on early extinguishment of debt		528		—		—
Other operating expenses		394,396		120,935		—
Income tax expense		108,668		1,872		—
Net income	$	143,428	$	24,892	$	—

For the six months ended June 30, 2011
(In thousands)	Reportable Segments		Corporate			Eliminations			Total Popular, Inc.
Net interest income (loss)	$	770,027	$	(52,648	)	$	522		$	717,901
Provision for loan losses		219,636		—			—			219,636
Non-interest income		271,415		52,023			(34,910	)		288,528
Amortization of intangibles		4,510		—			—			4,510
Depreciation expense		22,577		873			—			23,450
Loss on early extinguishment of debt		528		8,000			—			8,528
Other operating expenses		515,331		40,121			(35,091	)		520,361
Income tax expense (benefit)		110,540		(1,714	)		301			109,127
Net income (loss)	$	168,320	$	(47,905	)	$	402		$	120,817

2010

For the quarter ended June 30, 2010
(In thousands)	Banco Popular de Puerto Rico		Banco Popular North America			Intersegment Eliminations
Net interest income	$	267,665	$	75,323		$	—
Provision for loan losses		122,267		79,991			—
Non-interest income		129,283		15,926			—
Amortization of intangibles		1,358		910			—
Depreciation expense		9,158		2,450			—
Loss on early extinguishment of debt		430		—			—
Other operating expenses		209,181		64,923			—
Income tax expense		21,466		798			—
Net income (loss)	$	33,088	$	(57,823	)	$	—
Segment assets	$	32,183,595	$	9,857,865		$	(29,074	)

For the quarter ended June 30, 2010
(In thousands)	Reportable Segments			Corporate			Eliminations			Total Popular, Inc.
Net interest income (loss)	$	342,988		$	(28,556	)	$	163		$	314,595
Provision for loan losses		202,258			—			—			202,258
Non-interest income		145,209			88,900			(35,282	)		198,827
Amortization of intangibles		2,268			187			—			2,455
Depreciation expense		11,608			3,760			—			15,368
Loss on early extinguishment of debt		430			—			—			430
Other operating expenses		274,104			69,671			(33,612	)		310,163
Income tax expense		22,264			4,970			3			27,237
Net loss	$	(24,735	)	$	(18,244	)	$	(1,510	)	$	(44,489	)
Segment assets	$	42,012,386		$	5,160,641		$	(4,825,188	)	$	42,347,839

For the six months ended June 30, 2010
(In thousands)	Banco Popular de Puerto Rico		Banco Popular North America			Intersegment Eliminations
Net interest income	$	486,962	$	154,177		$	—
Provision for loan losses		230,639		211,819			—
Non-interest income		217,952		32,485			—
Amortization of intangibles		2,309		1,820			—
Depreciation expense		18,433		4,881			—
Loss on early extinguishment of debt		978		—			—
Other operating expenses		374,659		128,551			—
Income tax expense		20,557		1,584			—
Net income (loss)	$	57,339	$	(161,993	)	$	—

For the six months ended June 30, 2010
(In thousands)	Reportable Segments			Corporate			Eliminations			Total Popular, Inc.
Net interest income (loss)	$	641,139		$	(57,952	)	$	325		$	583,512
Provision for loan losses		442,458			—			—			442,458
Non-interest income		250,437			174,563			(68,307	)		356,693
Amortization of intangibles		4,129			375			—			4,504
Depreciation expense		23,314			7,445			—			30,759
Loss on early extinguishment of debt		978			—			—			978
Other operating expenses		503,210			137,043			(67,165	)		573,088
Income tax expense (benefit)		22,141			(4,399	)		220			17,962
Net loss	$	(104,654	)	$	(23,853	)	$	(1,037	)	$	(129,544	)

Additional disclosures with respect to the Banco Popular de Puerto Rico reportable segment are as follows:

2011

For the quarter ended June 30, 2011
Banco Popular de Puerto Rico
(In thousands)	Commercial Banking			Consumer and Retail Banking			Other Financial Services		Eliminations			Total Banco Popular de Puerto Rico
Net interest income	$	138,859		$	183,694		$	2,574	$	40		$	325,167
Provision for loan losses		104,291			15,033			—		—			119,324
Non-interest income		41,981			46,507			24,542		114			113,144
Amortization of intangibles		26			1,396			153		—			1,575
Depreciation expense		4,165			4,698			238		—			9,101
Loss on early extinguishment of debt		289			—			—		—			289
Other operating expenses		60,357			130,356			14,996		(43	)		205,666
Income tax (benefit) expense		(18,850	)		(21,481	)		2,778		77			(37,476	)
Net income	$	30,562		$	100,199		$	8,951	$	120		$	139,832
Segment assets	$	14,601,062		$	21,109,988		$	928,437	$	(6,849,022	)	$	29,790,465

For the six months ended June 30, 2011
Banco Popular de Puerto Rico
(In thousands)	Commercial Banking		Consumer and Retail Banking		Other Financial Services		Eliminations			Total Banco Popular de Puerto Rico
Net interest income	$	258,419	$	357,164	$	4,948	$	81		$	620,612
Provision for loan losses		132,186		54,394		—		—			186,580
Non-interest income		87,339		101,408		46,065		59			234,871
Amortization of intangibles		52		2,790		308		—			3,150
Depreciation expense		8,544		9,714		475		—			18,733
Loss on early extinguishment of debt		528		—		—		—			528
Other operating expenses		115,265		248,583		30,646		(98	)		394,396
Income tax expense		57,990		45,363		5,222		93			108,668
Net income	$	31,193	$	97,728	$	14,362	$	145		$	143,428

2010

For the quarter ended June 30, 2010
Banco Popular de Puerto Rico
(In thousands)	Commercial Banking			Consumer and Retail Banking		Other Financial Services		Eliminations			Total Banco Popular de Puerto Rico
Net interest income	$	105,450		$	159,762	$	2,387	$	66		$	267,665
Provision for loan losses		77,546			44,721		—		—			122,267
Non-interest income		40,506			60,485		28,361		(69	)		129,283
Amortization of intangibles		172			1,044		142		—			1,358
Depreciation expense		4,081			4,775		302		—			9,158
Loss on early extinguishment of debt		430			—		—		—			430
Other operating expenses		71,432			121,218		16,600		(69	)		209,181
Income tax (benefit) expense		(2,709	)		19,069		5,079		27			21,466
Net (loss) income	$	(4,996	)	$	29,420	$	8,625	$	39		$	33,088
Segment assets	$	16,376,017		$	23,431,824	$	622,672	$	(8,246,918	)	$	32,183,595

For the six months ended June 30, 2010
Banco Popular de Puerto Rico
(In thousands)	Commercial Banking			Consumer and Retail Banking		Other Financial Services		Eliminations			Total Banco Popular de Puerto Rico
Net interest income	$	176,512		$	305,428	$	4,890	$	132		$	486,962
Provision for loan losses		150,717			79,922		—		—			230,639
Non-interest income		66,030			103,338		48,475		109			217,952
Amortization of intangibles		200			1,828		281		—			2,309
Depreciation expense		8,043			9,783		607		—			18,433
Loss on early extinguishment of debt		978			—		—		—			978
Other operating expenses		117,917			226,049		30,834		(141	)		374,659
Income tax (benefit) expense		(17,521	)		30,032		7,890		156			20,557
Net (loss) income	$	(17,792	)	$	61,152	$	13,753	$	226		$	57,339

Additional disclosures with respect to the Banco Popular North America reportable segments are as follows:

2011

For the quarter ended June 30, 2011
Banco Popular North America
(In thousands)	Banco Popular North America		E-LOAN			Eliminations			Total Banco Popular North America
Net interest income	$	74,201	$	400		$	—		$	74,601
Provision for loan losses		18,306		6,687			—			24,993
Non-interest income		18,354		773			—			19,127
Amortization of intangibles		680		—			—			680
Depreciation expense		1,853		—			—			1,853
Other operating expenses		58,085		4,623			—			62,708
Income tax expense		934		—			—			934
Net income ( loss)	$	12,697	$	(10,137	)	$	—		$	2,560
Segment assets	$	9,578,377	$	451,472		$	(1,134,813	)	$	8,895,036

For the six months ended June 30, 2011
Banco Popular North America
(In thousands)	Banco Popular North America		E-LOAN			Eliminations		Total Banco Popular North America
Net interest income	$	148,501	$	914		$	—	$	149,415
Provision for loan losses		18,911		14,145			—		33,056
Non-interest income		35,728		816			—		36,544
Amortization of intangibles		1,360		—			—		1,360
Depreciation expense		3,844		—			—		3,844
Other operating expenses		114,040		6,895			—		120,935
Income tax expense		1,872		—			—		1,872
Net income ( loss)	$	44,202	$	(19,310	)	$	—	$	24,892

2010

For the quarter ended June 30, 2010
Banco Popular North America
(In thousands)	Banco Popular North America			E-LOAN			Eliminations			Total Banco Popular North America
Net interest income	$	74,664		$	659		$	—		$	75,323
Provision for loan losses		66,285			13,706			—			79,991
Non-interest income (loss)		20,882			(4,956	)		—			15,926
Amortization of intangibles		910			—			—			910
Depreciation expense		2,174			276			—			2,450
Other operating expenses		63,347			1,576			—			64,923
Income tax expense		798			—			—			798
Net loss	$	(37,968	)	$	(19,855	)	$	—		$	(57,823	)
Segment assets	$	10,518,983		$	494,622		$	(1,155,740	)	$	9,857,865

For the six months ended June 30, 2010
Banco Popular North America
(In thousands)	Banco Popular North America			E-LOAN			Eliminations			Total Banco Popular North America
Net interest income	$	152,040		$	2,193		$	(56	)	$	154,177
Provision for loan losses		185,991			25,828			—			211,819
Non-interest income (loss)		39,067			(6,582	)		—			32,485
Amortization of intangibles		1,820			—			—			1,820
Depreciation expense		4,354			527			—			4,881
Other operating expenses		125,068			3,483			—			128,551
Income tax expense		1,584			—			—			1,584
Net loss	$	(127,710	)	$	(34,227	)	$	(56	)	$	(161,993	)

Geographic Information

Geographic Information

	Quarter ended				Six months ended
(In thousands)	June 30, 2011		June 30, 2010		June 30, 2011		June 30, 2010
Revenues:[1]
Puerto Rico	$	387,091	$	397,087	$	783,340	$	705,667
United States		87,809		87,334		176,213		176,972
Other		23,802		29,001		46,876		57,566
Total consolidated revenues	$	498,702	$	513,422	$	1,006,429	$	940,205

[1] Total revenues include net interest income, service charges on deposit accounts, other service fees, net gain on sale and valuation adjustments of investment securities, trading account profit, net gain on sale of loans and valuation adjustments on loans held-for-sale, adjustments to indemnity reserves on loans sold, FDIC loss share income, fair value change in equity appreciation instrument and other operating income.

Selected Balance Sheet Information

Selected Balance Sheet Information:

(In thousands)	June 30, 2011		December 31, 2010		June 30, 2010
Puerto Rico
Total assets	$	28,711,644	$	28,464,243	$	31,111,794
Loans		18,708,521		18,729,654		18,858,989
Deposits		20,393,713		19,149,753		18,784,350
United States
Total assets	$	9,041,616	$	9,087,737	$	9,974,846
Loans		6,240,633		6,978,007		7,921,222
Deposits		6,443,794		6,566,710		7,250,120
Other
Total assets	$	1,260,082	$	1,170,982	$	1,261,199
Loans		834,161		751,194		841,610
Deposits [1]		1,122,922		1,045,737		1,079,103

[1] Represents deposits from BPPR operations located in the US and British Virgin Islands.