Schedule Condensed Financial Statements [Text Block] | Note 31 – Condensed consolidating financial information of guarantor and issuers of registered guaranteed securities The following condensed consolidating financial information presents the financial position of Popular, Inc. Holding Company (“PIHC”) (parent only), Popular International Bank, Inc. (“PIBI”), Popular North America, Inc. (“PNA”) and all other subsidiaries of the Corporation at September 30, 2011, December 31, 2010 and September 30, 2010, and the results of their operations and cash flows for periods ended September 30, 2011 and 2010. PIBI is an operating subsidiary of PIHC and is the holding company of its wholly-owned subsidiaries: Popular Insurance V.I., Inc; Tarjetas y Transacciones en Red Tranred, C.A.; and PNA. Prior to the internal reorganization and sale of the ownership interest in EVERTEC, ATH Costa Rica S.A., and T.I.I. Smart Solutions Inc. were also wholly-owned subsidiaries of PIBI. PNA is an operating subsidiary of PIBI and is the holding company of its wholly-owned subsidiaries: Equity One, Inc.; and Banco Popular North America (“BPNA”), including its wholly-owned subsidiaries Popular Equipment Finance, Inc., Popular Insurance Agency, U.S.A., and E-LOAN, Inc. PIHC fully and unconditionally guarantees all registered debt securities issued by PNA. A source of income for PIHC consists of dividends from BPPR. Under the existing federal banking regulations, the prior approval of the Federal Reserve System is required for any dividend from BPPR or BPNA to the PIHC if the total of all dividends declared by each entity during the calendar year would exceed the total of its net income for that year, as defined by the Federal Reserve Board, combined with its retained net income for the preceding two years, less any required transfers to surplus or to a fund for the retirement of any preferred stock. Under this test, at September 30, 2011, BPPR could have declared a dividend of approximately $237 million (September 30, 2010 - $100 million; December 31, 2010 - $78 million). However, on July 25, 2011, PIHC and BPPR entered into a Memorandum of Understanding with the Federal Reserve Bank of New York and the Office of the Commissioner of Financial Institutions of Puerto Rico that requires the prior approval of these entities prior to the payment of any dividends by BPPR to PIHC. BPNA could not declare any dividends without the approval of the Federal Reserve Board. Condensed Consolidated Statement of Condition (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At September 30, 2011 | | | | | | | | | All other | | | | | | | | Popular Inc. | PIBI | PNA | | subsidiaries and | | Elimination | | Popular, Inc. | (In thousands) | | Holding Co. | Holding Co. | Holding Co. | | eliminations | | entries | | Consolidated | ASSETS | | | | | | | | | | | | | | | | | Cash and due from banks | | $ | 1,478 | $ | 299 | $ | 271 | | $ | 567,336 | | $ | (2,243) | | $ | 567,141 | Money market investments | | | 5,922 | | 14,692 | | 283 | | | 1,263,125 | | | (14,883) | | | 1,269,139 | Trading account securities, at fair value | | | - | | - | | - | | | 272,939 | | | - | | | 272,939 | Investment securities available-for-sale, at | | | | | | | | | | | | | | | | | | fair value | | | 36,400 | | 2,621 | | - | | | 5,205,308 | | | (17,800) | | | 5,226,529 | Investment securities held-to-maturity, at | | | | | | | | | | | | | | | | | | amortized cost | | | 197,364 | | 1,000 | | - | | | 115,182 | | | (185,000) | | | 128,546 | Other investment securities, at lower of cost | | | | | | | | | | | | | | | | | | or realizable value | | | 10,850 | | 1 | | 4,492 | | | 158,226 | | | - | | | 173,569 | Investment in subsidiaries | | | 4,088,974 | | 1,166,194 | | 1,636,768 | | | - | | | (6,891,936) | | | - | Loans held-for-sale, at lower of cost or | | | | | | | | | | | | | | | | | | fair value | | | - | | - | | - | | | 368,777 | | | - | | | 368,777 | Loans held-in-portfolio: | | | | | | | | | | | | | | | | | | Loans not covered under loss sharing | | | | | | | | | | | | | | | | | | agreements with the FDIC | | | 264,056 | | - | | - | | | 20,744,111 | | | ($232,930) | | | 20,775,237 | | Loans covered under loss sharing | | | | | | | | | | | | | | | | | | agreements with the FDIC | | | - | | - | | - | | | 4,512,423 | | | - | | | 4,512,423 | | Less - Unearned income | | | - | | - | | - | | | 101,351 | | | - | | | 101,351 | | Allowance for loan losses | | | 8 | | - | | - | | | 772,913 | | | - | | | 772,921 | | Total loans held-in-portfolio, net | | | 264,048 | | - | | - | | | 24,382,270 | | | (232,930) | | | 24,413,388 | FDIC loss share asset | | | - | | - | | - | | | 1,798,339 | | | - | | | 1,798,339 | Premises and equipment, net | | | 2,723 | | - | | 119 | | | 533,687 | | | - | | | 536,529 | Other real estate not covered under loss | | | | | | | | | | | | | | | | | | sharing agreements with the FDIC | | | - | | - | | - | | | 175,785 | | | - | | | 175,785 | Other real estate covered under loss | | | | | | | | | | | | | | | | | | sharing agreements with the FDIC | | | - | | - | | - | | | 75,339 | | | - | | | 75,339 | Accrued income receivable | | | 2,196 | | 22 | | 31 | | | 132,160 | | | (146) | | | 134,263 | Mortgage servicing assets, at fair value | | | - | | - | | - | | | 157,226 | | | - | | | 157,226 | Other assets | | | 219,133 | | 74,779 | | 15,045 | | | 1,890,872 | | | (31,300) | | | 2,168,529 | Goodwill | | | - | | - | | - | | | 648,353 | | | - | | | 648,353 | Other intangible assets | | | 554 | | - | | - | | | 63,658 | | | - | | | 64,212 | Total assets | | $ | 4,829,642 | $ | 1,259,608 | $ | 1,657,009 | | $ | 37,808,582 | | $ | (7,376,238) | | $ | 38,178,603 | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | Deposits: | | | | | | | | | | | | | | | | | | Non-interest bearing | | $ | - | $ | - | $ | - | | $ | 5,557,943 | | $ | (30,493) | | $ | 5,527,450 | | Interest bearing | | | - | | - | | - | | | 22,440,926 | | | (15,036) | | | 22,425,890 | | Total deposits | | | - | | - | | - | | | 27,998,869 | | | (45,529) | | | 27,953,340 | Federal funds purchased and assets sold | | | | | | | | | | | | | | | | | | under agreements to repurchase | | | - | | - | | - | | | 2,601,606 | | | - | | | 2,601,606 | Other short-term borrowings | | | - | | - | | 19,000 | | | 354,100 | | | (206,900) | | | 166,200 | Notes payable | | | 754,202 | | - | | 427,270 | | | 1,369,273 | | | - | | | 2,550,745 | Subordinated notes | | | - | | - | | - | | | 185,000 | | | (185,000) | | | - | Other liabilities | | | 62,839 | | 6,142 | | 45,376 | | | 826,495 | | | (46,741) | | | 894,111 | Total liabilities | | | 817,041 | | 6,142 | | 491,646 | | | 33,335,343 | | | (484,170) | | | 34,166,002 | Stockholders' equity: | | | | | | | | | | | | | | | | | Preferred stock | | | 50,160 | | - | | - | | | - | | | - | | | 50,160 | Common stock | | | 10,249 | | 4,066 | | 2 | | | 51,564 | | | (55,632) | | | 10,249 | Surplus | | | 4,090,852 | | 4,092,743 | | 4,103,208 | | | 5,857,287 | | | (14,044,711) | | | 4,099,379 | Accumulated deficit | | | (193,243) | | (2,874,262) | | (2,997,586) | | | (1,518,816) | | | 7,382,137 | | | (201,770) | Treasury stock, at cost | | | (992) | | - | | - | | | - | | | - | | | (992) | Accumulated other comprehensive | | | | | | | | | | | | | | | | | | income, net of tax | | | 55,575 | | 30,919 | | 59,739 | | | 83,204 | | | (173,862) | | | 55,575 | Total stockholders' equity | | | 4,012,601 | | 1,253,466 | | 1,165,363 | | | 4,473,239 | | | (6,892,068) | | | 4,012,601 | Total liabilities and stockholders' equity | | $ | 4,829,642 | $ | 1,259,608 | $ | 1,657,009 | | $ | 37,808,582 | | $ | (7,376,238) | | $ | 38,178,603 |
Condensed Consolidated Statement of Condition (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2010 | | | | | | | | All other | | | | | | | | Popular, Inc. | PIBI | PNA | | subsidiaries and | | Elimination | | Popular, Inc. | (In thousands) | | Holding Co. | Holding Co. | Holding Co. | | eliminations | | entries | | Consolidated | ASSETS | | | | | | | | | | | | | | | | | Cash and due from banks | | $ | 1,638 | $ | 618 | $ | 1,576 | | $ | 451,723 | | $ | (3,182) | | $ | 452,373 | Money market investments | | | 1 | | 7,512 | | 261 | | | 979,232 | | | (7,711) | | | 979,295 | Trading account securities, at fair value | | | - | | - | | - | | | 546,713 | | | - | | | 546,713 | Investment securities available-for-sale, at | | | | | | | | | | | | | | | | | | fair value | | | 35,263 | | 3,863 | | - | | | 5,216,013 | | | (18,287) | | | 5,236,852 | Investment securities held-to-maturity, at | | | | | | | | | | | | | | | | | | amortized cost | | | 210,872 | | 1,000 | | - | | | 95,482 | | | (185,000) | | | 122,354 | Other investment securities, at lower of cost | | | | | | | | | | | | | | | | | | or realizable value | | | 10,850 | | 1 | | 4,492 | | | 148,170 | | | - | | | 163,513 | Investment in subsidiaries | | | 3,836,258 | | 1,096,907 | | 1,578,986 | | | - | | | (6,512,151) | | | - | Loans held-for-sale, at lower of cost or | | | | | | | | | | | | | | | | | | fair value | | | - | | - | | - | | | 893,938 | | | - | | | 893,938 | Loans held-in-portfolio: | | | | | | | | | | | | | | | | | | Loans not covered under loss sharing | | | | | | | | | | | | | | | | | | agreements with the FDIC | | | 476,082 | | 1,285 | | - | | | 20,798,876 | | | (441,967) | | | 20,834,276 | | Loans covered under loss sharing | | | | | | | | | | | | | | | | | | agreements with the FDIC | | | - | | - | | - | | | 4,836,882 | | | - | | | 4,836,882 | | Less - Unearned income | | | - | | - | | - | | | 106,241 | | | - | | | 106,241 | | Allowance for loan losses | | | 60 | | - | | - | | | 793,165 | | | - | | | 793,225 | | Total loans held-in-portfolio, net | | | 476,022 | | 1,285 | | - | | | 24,736,352 | | | (441,967) | | | 24,771,692 | FDIC loss share asset | | | - | | - | | - | | | 2,318,183 | | | - | | | 2,318,183 | Premises and equipment, net | | | 2,830 | | - | | 122 | | | 542,501 | | | - | | | 545,453 | Other real estate not covered under loss | | | | | | | | | | | | | | | | | | sharing agreements with the FDIC | | | - | | - | | - | | | 161,496 | | | - | | | 161,496 | Other real estate covered under loss | | | | | | | | | | | | | | | | | | sharing agreements with the FDIC | | | - | | - | | - | | | 57,565 | | | - | | | 57,565 | Accrued income receivable | | | 1,510 | | 33 | | 111 | | | 149,101 | | | (97) | | | 150,658 | Mortgage servicing assets, at fair value | | | - | | - | | - | | | 166,907 | | | - | | | 166,907 | Other assets | | | 246,209 | | 86,116 | | 15,105 | | | 1,127,870 | | | (25,413) | | | 1,449,887 | Goodwill | | | - | | - | | - | | | 647,387 | | | - | | | 647,387 | Other intangible assets | | | 554 | | - | | - | | | 58,142 | | | - | | | 58,696 | Total assets | | $ | 4,822,007 | $ | 1,197,335 | $ | 1,600,653 | | $ | 38,296,775 | | $ | (7,193,808) | | $ | 38,722,962 | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | Deposits: | | | | | | | | | | | | | | | | | | Non-interest bearing | | $ | - | $ | - | $ | - | | $ | 4,961,417 | | $ | (22,096) | | $ | 4,939,321 | | Interest bearing | | | - | | - | | - | | | 21,830,669 | | | (7,790) | | | 21,822,879 | | Total deposits | | | - | | - | | - | | | 26,792,086 | | | (29,886) | | | 26,762,200 | Federal funds purchased and assets sold | | | | | | | | | | | | | | | | | | under agreements to repurchase | | | - | | - | | - | | | 2,412,550 | | | - | | | 2,412,550 | Other short-term borrowings | | | - | | - | | 32,500 | | | 743,922 | | | (412,200) | | | 364,222 | Notes payable | | | 835,793 | | - | | 430,121 | | | 2,905,554 | | | (1,285) | | | 4,170,183 | Subordinated notes | | | - | | - | | - | | | 185,000 | | | (185,000) | | | - | Other liabilities | | | 185,683 | | 3,921 | | 47,169 | | | 1,028,614 | | | (52,111) | | | 1,213,276 | Total liabilities | | | 1,021,476 | | 3,921 | | 509,790 | | | 34,067,726 | | | (680,482) | | | 34,922,431 | Stockholders' equity: | | | | | | | | | | | | | | | | | Preferred stock | | | 50,160 | | - | | - | | | - | | | - | | | 50,160 | Common stock | | | 10,229 | | 4,066 | | 2 | | | 51,633 | | | (55,701) | | | 10,229 | Surplus | | | 4,085,478 | | 4,158,157 | | 4,066,208 | | | 5,862,091 | | | (14,077,929) | | | 4,094,005 | Accumulated deficit | | | (338,801) | | (2,958,347) | | (3,000,682) | | | (1,714,659) | | | 7,665,161 | | | (347,328) | Treasury stock, at cost | | | (574) | | - | | - | | | - | | | - | | | (574) | Accumulated other comprehensive | | | | | | | | | | | | | | | | | | (loss) income, net of tax | | | (5,961) | | (10,462) | | 25,335 | | | 29,984 | | | (44,857) | | | (5,961) | Total stockholders' equity | | | 3,800,531 | | 1,193,414 | | 1,090,863 | | | 4,229,049 | | | (6,513,326) | | | 3,800,531 | Total liabilities and stockholders' equity | | $ | 4,822,007 | $ | 1,197,335 | $ | 1,600,653 | | $ | 38,296,775 | | $ | (7,193,808) | | $ | 38,722,962 |
Condensed Consolidated Statement of Condition (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At September 30, 2010 | | | | | | | | | | | All other | | | | | | | | | | Popular, Inc. | PIBI | PNA | | subsidiaries and | | Elimination | | Popular, Inc. | (In thousands) | | Holding Co. | Holding Co. | Holding Co. | | eliminations | | entries | | Consolidated | ASSETS | | | | | | | | | | | | | | | | | Cash and due from banks | | $ | 1,652 | $ | 368 | $ | 734 | | $ | 580,530 | | $ | (2,473) | | $ | 580,811 | Money market investments | | | 164,852 | | 5,907 | | 306 | | | 2,023,840 | | | (170,956) | | | 2,023,949 | Trading account securities, at fair value | | | - | | - | | - | | | 483,192 | | | - | | | 483,192 | Investment securities available-for-sale, at | | | | | | | | | | | | | | | | | | fair value | | | 35,000 | | 3,487 | | - | | | 5,721,445 | | | (18,449) | | | 5,741,483 | Investment securities held-to-maturity, at | | | | | | | | | | | | | | | | | | amortized cost | | | 210,812 | | 1,000 | | - | | | 187,340 | | | (185,000) | | | 214,152 | Other investment securities, at lower of cost | | | | | | | | | | | | | | | | | | or realizable value | | | 10,850 | | 1 | | 4,492 | | | 142,966 | | | - | | | 158,309 | Investment in subsidiaries | | | 3,879,282 | | 1,033,087 | | 1,507,550 | | | - | | | (6,419,919) | | | - | Loans held-for-sale, at lower of cost or | | | | | | | | | | | | | | | | | | fair value | | | - | | - | | - | | | 115,088 | | | - | | | 115,088 | Loans held-in-portfolio: | | | | | | | | | | | | | | | | | | Loans not covered under loss sharing | | | | | | | | | | | | | | | | | | agreements with the FDIC | | | 590,826 | | 1,516 | | - | | | 22,211,004 | | | (555,234) | | | 22,248,112 | | Loans covered under loss sharing | | | | | | | | | | | | | | | | | | agreements with the FDIC | | | - | | - | | - | | | 4,953,195 | | | - | | | 4,953,195 | | Less - Unearned income | | | - | | - | | - | | | 106,685 | | | - | | | 106,685 | | Allowance for loan losses | | | 60 | | - | | - | | | 1,243,934 | | | - | | | 1,243,994 | | Total loans held-in-portfolio, net | | | 590,766 | | 1,516 | | - | | | 25,813,580 | | | (555,234) | | | 25,850,628 | FDIC loss share asset | | | - | | - | | - | | | 2,324,978 | | | - | | | 2,324,978 | Premises and equipment, net | | | 3,076 | | - | | 122 | | | 528,651 | | | - | | | 531,849 | Other real estate not covered under loss | | | | | | | | | | | | | | | | | | sharing agreements with the FDIC | | | - | | - | | - | | | 168,823 | | | - | | | 168,823 | Other real estate covered under loss | | | | | | | | | | | | | | | | | | sharing agreements with the FDIC | | | - | | - | | - | | | 56,368 | | | - | | | 56,368 | Accrued income receivable | | | 179 | | 8 | | 31 | | | 160,016 | | | (67) | | | 160,167 | Mortgage servicing assets, at fair value | | | - | | - | | - | | | 165,947 | | | - | | | 165,947 | Other assets | | | 208,317 | | 81,142 | | 15,533 | | | 1,162,461 | | | (24,295) | | | 1,443,158 | Goodwill | | | - | | - | | - | | | 645,944 | | | - | | | 645,944 | Other intangible assets | | | 554 | | - | | - | | | 59,884 | | | - | | | 60,438 | Total assets | | $ | 5,105,340 | $ | 1,126,516 | $ | 1,528,768 | | $ | 40,341,053 | | $ | (7,376,393) | | $ | 40,725,284 | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | Deposits: | | | | | | | | | | | | | | | | | | Non-interest bearing | | $ | - | $ | - | $ | - | | $ | 5,397,313 | | $ | (25,874) | | $ | 5,371,439 | | Interest bearing | | | - | | - | | - | | | 22,374,886 | | | (6,281) | | | 22,368,605 | | Total deposits | | | - | | - | | - | | | 27,772,199 | | | (32,155) | | | 27,740,044 | Federal funds purchased and assets sold | | | | | | | | | | | | | | | | | | under agreements to repurchase | | | - | | - | | - | | | 2,522,939 | | | (164,800) | | | 2,358,139 | Other short-term borrowings | | | - | | - | | 25,200 | | | 691,342 | | | (525,200) | | | 191,342 | Notes payable | | | 830,134 | | - | | 430,052 | | | 3,886,482 | | | (1,516) | | | 5,145,152 | Subordinated notes | | | - | | - | | - | | | 185,000 | | | (185,000) | | | - | Other liabilities | | | 155,074 | | 3,183 | | 45,886 | | | 1,013,775 | | | (47,442) | | | 1,170,476 | Total liabilities | | | 985,208 | | 3,183 | | 501,138 | | | 36,071,737 | | | (956,113) | | | 36,605,153 | Stockholders' equity: | | | | | | | | | | | | | | | | | Preferred stock | | | 50,160 | | - | | - | | | - | | | - | | | 50,160 | Common stock | | | 10,229 | | 4,066 | | 2 | | | 51,633 | | | (55,701) | | | 10,229 | Surplus | | | 4,085,775 | | 3,908,157 | | 3,816,208 | | | 5,612,091 | | | (13,327,929) | | | 4,094,302 | Accumulated deficit | | | (111,349) | | (2,786,574) | | (2,821,556) | | | (1,515,934) | | | 7,115,536 | | | (119,877) | Treasury stock, at cost | | | (545) | | - | | - | | | - | | | - | | | (545) | Accumulated other comprehensive | | | | | | | | | | | | | | | | | | income (loss), net of tax | | | 85,862 | | (2,316) | | 32,976 | | | 121,526 | | | (152,186) | | | 85,862 | Total stockholders' equity | | | 4,120,132 | | 1,123,333 | | 1,027,630 | | | 4,269,316 | | | (6,420,280) | | | 4,120,131 | Total liabilities and stockholders' equity | | $ | 5,105,340 | $ | 1,126,516 | $ | 1,528,768 | | $ | 40,341,053 | | $ | (7,376,393) | | $ | 40,725,284 |
Condensed Statement of Operations (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Quarter ended September 30, 2011 | | | | | | | | | | | | All other | | | | | | | | | | Popular, Inc. | PIBI | PNA | subsidiaries and | Elimination | Popular, Inc. | (In thousands) | | Holding Co. | Holding Co. | Holding Co. | eliminations | entries | Consolidated | INTEREST INCOME: | | | | | | | | | | | | | | | | | | | | Loans | | $ | 1,915 | | $ | - | | $ | - | | $ | 428,473 | | $ | (1,389) | | $ | 428,999 | | Money market investments | | | - | | | 24 | | | 1 | | | 886 | | | (25) | | | 886 | | Investment securities | | | 4,031 | | | 16 | | | 81 | | | 50,178 | | | (3,221) | | | 51,085 | | Trading account securities | | | - | | | - | | | - | | | 10,788 | | | - | | | 10,788 | | Total interest income | | | 5,946 | | | 40 | | | 82 | | | 490,325 | | | (4,635) | | | 491,758 | INTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | Deposits | | | - | | | - | | | - | | | 65,960 | | | (92) | | | 65,868 | | Short-term borrowings | | | - | | | - | | | 138 | | | 14,575 | | | (969) | | | 13,744 | | Long-term debt | | | 22,983 | | | - | | | 8,054 | | | 14,714 | | | (2,916) | | | 42,835 | | Total interest expense | | | 22,983 | | | - | | | 8,192 | | | 95,249 | | | (3,977) | | | 122,447 | Net interest (expense) income | | | (17,037) | | | 40 | | | (8,110) | | | 395,076 | | | (658) | | | 369,311 | Provision for loan losses | | | - | | | - | | | - | | | 176,276 | | | - | | | 176,276 | Net interest (expense) income | | | | | | | | | | | | | | | | | | | | after provision for loan losses | | | (17,037) | | | 40 | | | (8,110) | | | 218,800 | | | (658) | | | 193,035 | Service charges on deposit accounts | | | - | | | - | | | - | | | 46,346 | | | - | | | 46,346 | Other service fees | | | - | | | - | | | - | | | 66,306 | | | (3,642) | | | 62,664 | Net (loss) gain on sale and valuation adjustments of | | | | | | | | | | | | | | | | | | | | investment securities | | | - | | | (88) | | | - | | | 8,222 | | | - | | | 8,134 | Trading account profit | | | - | | | - | | | - | | | 2,912 | | | - | | | 2,912 | Net gain on sale of loans, including valuation | | | | | | | | | | | | | | | | | | | | adjustments on loans held-for-sale | | | - | | | - | | | - | | | 20,294 | | | - | | | 20,294 | Adjustments (expense) to indemnity reserves | | | | | | | | | | | | | | | | | | | | on loans sold | | | - | | | - | | | - | | | (10,285) | | | - | | | (10,285) | FDIC loss share expense | | | - | | | - | | | - | | | (5,361) | | | - | | | (5,361) | Other operating (loss) income | | | (1,823) | | | 2,911 | | | (306) | | | 9,193 | | | (12,289) | | | (2,314) | | Total non-interest (loss) income | | | (1,823) | | | 2,823 | | | (306) | | | 137,627 | | | (15,931) | | | 122,390 | OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | Personnel costs | | | 8,280 | | | 88 | | | - | | | 103,356 | | | - | | | 111,724 | Net occupancy expenses | | | 802 | | | 7 | | | 1 | | | 24,220 | | | 855 | | | 25,885 | Equipment expenses | | | 831 | | | 1 | | | - | | | 9,685 | | | - | | | 10,517 | Other taxes | | | 803 | | | - | | | - | | | 11,588 | | | - | | | 12,391 | Professional fees | | | 2,658 | | | 9 | | | 3 | | | 63,885 | | | (17,799) | | | 48,756 | Communications | | | 75 | | | - | | | 1 | | | 6,724 | | | - | | | 6,800 | Business promotion | | | 430 | | | - | | | - | | | 14,220 | | | - | | | 14,650 | FDIC deposit insurance | | | - | | | - | | | - | | | 23,285 | | | - | | | 23,285 | Loss on early extinguishment of debt | | | - | | | - | | | - | | | 109 | | | - | | | 109 | Other real estate owned (OREO) expenses | | | - | | | - | | | - | | | 3,234 | | | - | | | 3,234 | Other operating expenses | | | (12,733) | | | (2,771) | | | 111 | | | 38,542 | | | (608) | | | 22,541 | Amortization of intangibles | | | - | | | - | | | - | | | 2,463 | | | - | | | 2,463 | | Total operating expenses | | | 1,146 | | | (2,666) | | | 116 | | | 301,311 | | | (17,552) | | | 282,355 | (Loss) income before income tax | | | | | | | | | | | | | | | | | | | | and equity in earnings (losses) of subsidiaries | | | (20,006) | | | 5,529 | | | (8,532) | | | 55,116 | | | 963 | | | 33,070 | Income tax (benefit) expense | | | (642) | | | 1,226 | | | (23) | | | 4,652 | | | 324 | | | 5,537 | (Loss) income before equity in | | | | | | | | | | | | | | | | | | | | earnings (losses) of subsidiaries | | | (19,364) | | | 4,303 | | | (8,509) | | | 50,464 | | | 639 | | | 27,533 | Equity in undistributed earnings (losses) of | | | | | | | | | | | | | | | | | | | | subsidiaries | | | 46,897 | | | (3,825) | | | 5,424 | | | - | | | (48,496) | | | - | NET INCOME (LOSS) | | $ | 27,533 | | $ | 478 | | $ | (3,085) | | $ | 50,464 | | $ | (47,857) | | $ | 27,533 |
Condensed Statement of Operations (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, 2011 | | | | | | | | | | | | All other | | | | | | | | | | Popular, Inc. | PIBI | PNA | subsidiaries and | Elimination | Popular, Inc. | (In thousands) | | Holding Co. | Holding Co. | Holding Co. | eliminations | entries | Consolidated | INTEREST INCOME: | | | | | | | | | | | | | | | | | | | | Loans | | $ | 6,973 | | $ | 16 | | $ | - | | $ | 1,293,139 | | $ | (5,294) | | $ | 1,294,834 | | Money market investments | | | 5 | | | 71 | | | 4 | | | 2,809 | | | (130) | | | 2,759 | | Investment securities | | | 12,192 | | | 38 | | | 242 | | | 154,374 | | | (9,663) | | | 157,183 | | Trading account securities | | | - | | | - | | | - | | | 29,332 | | | - | | | 29,332 | | Total interest income | | | 19,170 | | | 125 | | | 246 | | | 1,479,654 | | | (15,087) | | | 1,484,108 | INTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | Deposits | | | - | | | - | | | - | | | 213,758 | | | (339) | | | 213,419 | | Short-term borrowings | | | 50 | | | - | | | 694 | | | 44,685 | | | (3,951) | | | 41,478 | | Long-term debt | | | 71,315 | | | - | | | 23,341 | | | 56,111 | | | (8,768) | | | 141,999 | | Total interest expense | | | 71,365 | | | - | | | 24,035 | | | 314,554 | | | (13,058) | | | 396,896 | Net interest (expense) income | | | (52,195) | | | 125 | | | (23,789) | | | 1,165,100 | | | (2,029) | | | 1,087,212 | Provision for loan losses | | | - | | | - | | | - | | | 395,912 | | | - | | | 395,912 | Net interest (expense) income | | | | | | | | | | | | | | | | | | | | after provision for loan losses | | | (52,195) | | | 125 | | | (23,789) | | | 769,188 | | | (2,029) | | | 691,300 | Service charges on deposit accounts | | | - | | | - | | | - | | | 138,778 | | | - | | | 138,778 | Other service fees | | | - | | | - | | | - | | | 191,339 | | | (11,716) | | | 179,623 | Net (loss) gain on sale and valuation adjustments of | | | | | | | | | | | | | | | | | | | | investment securities | | | - | | | (88) | | | - | | | 8,132 | | | - | | | 8,044 | Trading account profit | | | - | | | - | | | - | | | 3,287 | | | - | | | 3,287 | Net gain on sale of loans, including valuation | | | | | | | | | | | | | | | | | | | | adjustments on loans held-for-sale | | | - | | | - | | | - | | | 14,756 | | | - | | | 14,756 | Adjustments (expense) to indemnity reserves | | | | | | | | | | | | | | | | | | | | on loans sold | | | - | | | - | | | - | | | (29,587) | | | - | | | (29,587) | FDIC loss share income | | | - | | | - | | | - | | | 49,344 | | | - | | | 49,344 | Fair value change in equity appreciation instrument | | | - | | | - | | | - | | | 8,323 | | | - | | | 8,323 | Other operating income | | | 18,531 | | | 28,159 | | | 1,082 | | | 28,880 | | | (38,302) | | | 38,350 | | Total non-interest income | | | 18,531 | | | 28,071 | | | 1,082 | | | 413,252 | | | (50,018) | | | 410,918 | OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | Personnel costs | | | 22,142 | | | 261 | | | - | | | 306,420 | | | - | | | 328,823 | Net occupancy expenses | | | 2,506 | | | 24 | | | 2 | | | 71,275 | | | 2,621 | | | 76,428 | Equipment expenses | | | 2,411 | | | 4 | | | - | | | 30,899 | | | - | | | 33,314 | Other taxes | | | 1,465 | | | - | | | - | | | 37,521 | | | - | | | 38,986 | Professional fees | | | 9,330 | | | 126 | | | 9 | | | 190,087 | | | (54,629) | | | 144,923 | Communications | | | 309 | | | 5 | | | 10 | | | 20,874 | | | - | | | 21,198 | Business promotion | | | 1,238 | | | - | | | - | | | 34,604 | | | - | | | 35,842 | FDIC deposit insurance | | | - | | | - | | | - | | | 68,640 | | | - | | | 68,640 | Loss on early extinguishment of debt | | | 8,000 | | | - | | | - | | | 637 | | | - | | | 8,637 | Other real estate owned (OREO) expenses | | | - | | | - | | | - | | | 11,885 | | | - | | | 11,885 | Other operating expenses | | | (38,250) | | | 5,797 | | | 332 | | | 97,381 | | | (1,705) | | | 63,555 | Amortization of intangibles | | | - | | | - | | | - | | | 6,973 | | | - | | | 6,973 | | Total operating expenses | | | 9,151 | | | 6,217 | | | 353 | | | 877,196 | | | (53,713) | | | 839,204 | (Loss) income before income tax | | | | | | | | | | | | | | | | | | | | and equity in earnings of subsidiaries | | | (42,815) | | | 21,979 | | | (23,060) | | | 305,244 | | | 1,666 | | | 263,014 | Income tax expense (benefit) | | | 2,495 | | | 5,688 | | | (287) | | | 106,143 | | | 625 | | | 114,664 | (Loss) income before equity in | | | | | | | | | | | | | | | | | | | | earnings of subsidiaries | | | (45,310) | | | 16,291 | | | (22,773) | | | 199,101 | | | 1,041 | | | 148,350 | Equity in undistributed earnings of subsidiaries | | | 193,660 | | | 3,894 | | | 25,868 | | | - | | | (223,422) | | | - | NET INCOME | | $ | 148,350 | | $ | 20,185 | | $ | 3,095 | | $ | 199,101 | | $ | (222,381) | | $ | 148,350 |
Condensed Statement of Operations (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Quarter ended September 30, 2010 | | | | | | | | | | | | All other | | | | | | | | | Popular, Inc. | PIBI | PNA | subsidiaries and | Elimination | Popular, Inc. | (In thousands) | Holding Co. | Holding Co. | Holding Co. | eliminations | entries | Consolidated | INTEREST AND DIVIDEND INCOME: | | | | | | | | | | | | | | | | | | | | Dividend income from subsidiaries | | $ | 80,700 | | $ | - | | $ | - | | $ | - | | $ | (80,700) | | $ | - | | Loans | | | 1,217 | | | - | | | - | | | 455,477 | | | (1,063) | | | 455,631 | | Money market investments | | | 2 | | | 15 | | | - | | | 1,391 | | | (17) | | | 1,391 | | Investment securities | | | 5,673 | | | 7 | | | 81 | | | 56,848 | | | (5,332) | | | 57,277 | | Trading account securities | | | - | | | - | | | - | | | 7,136 | | | - | | | 7,136 | | Total interest and dividend income | | | 87,592 | | | 22 | | | 81 | | | 520,852 | | | (87,112) | | | 521,435 | INTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | Deposits | | | - | | | - | | | - | | | 86,346 | | | (16) | | | 86,330 | | Short-term borrowings | | | 8 | | | - | | | 185 | | | 15,816 | | | (1,064) | | | 14,945 | | Long-term debt | | | 26,485 | | | - | | | 7,635 | | | 34,756 | | | (5,494) | | | 63,382 | | Total interest expense | | | 26,493 | | | - | | | 7,820 | | | 136,918 | | | (6,574) | | | 164,657 | Net interest income (expense) | | | 61,099 | | | 22 | | | (7,739) | | | 383,934 | | | (80,538) | | | 356,778 | Provision for loan losses | | | - | | | - | | | - | | | 215,013 | | | - | | | 215,013 | Net interest income (expense) | | | | | | | | | | | | | | | | | | | | after provision for loan losses | | | 61,099 | | | 22 | | | (7,739) | | | 168,921 | | | (80,538) | | | 141,765 | Service charges on deposit accounts | | | - | | | - | | | - | | | 48,608 | | | - | | | 48,608 | Other service fees | | | - | | | - | | | - | | | 100,029 | | | 793 | | | 100,822 | Net gain on sale and valuation adjustments of | | | | | | | | | | | | | | | | | | | | investment securities | | | - | | | - | | | - | | | 3,732 | | | - | | | 3,732 | Trading account profit | | | - | | | - | | | - | | | 5,860 | | | - | | | 5,860 | Net gain on sale of loans, including valuation | | | | | | | | | | | | | | | | | | | | adjustments on loans held-for-sale | | | - | | | - | | | - | | | 4,250 | | | - | | | 4,250 | Adjustments (expense) to indemnity reserves | | | | | | | | | | | | | | | | | | | | on loans sold | | | - | | | - | | | - | | | (5,823) | | | - | | | (5,823) | FDIC loss share expense | | | - | | | - | | | - | | | (7,668) | | | - | | | (7,668) | Fair value change in equity appreciation instrument | | | - | | | - | | | - | | | 10,641 | | | - | | | 10,641 | Gain on sale of processing and technology business | | | 640,802 | | | - | | | - | | | - | | | - | | | 640,802 | Other operating (loss) income | | | (18) | | | 3,370 | | | (2,166) | | | 25,874 | | | (2,390) | | | 24,670 | | Total non-interest income (loss) | | | 640,784 | | | 3,370 | | | (2,166) | | | 185,503 | | | (1,597) | | | 825,894 | OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | Personnel costs | | | 3,547 | | | 102 | | | - | | | 137,556 | | | - | | | 141,205 | Net occupancy expenses | | | 689 | | | 8 | | | 1 | | | 27,727 | | | - | | | 28,425 | Equipment expenses | | | 708 | | | 1 | | | - | | | 24,723 | | | - | | | 25,432 | Other taxes | | | 513 | | | - | | | - | | | 13,359 | | | - | | | 13,872 | Professional fees | | | 19,151 | | | 3 | | | 3 | | | 29,645 | | | (578) | | | 48,224 | Communications | | | 127 | | | 5 | | | 5 | | | 9,377 | | | - | | | 9,514 | Business promotion | | | 221 | | | - | | | - | | | 11,039 | | | - | | | 11,260 | FDIC deposit insurance | | | - | | | - | | | - | | | 17,183 | | | - | | | 17,183 | Loss on early extinguishment of debt | | | 15,750 | | | - | | | - | | | 9,698 | | | - | | | 25,448 | Other real estate owned (OREO) expenses | | | 2 | | | - | | | - | | | 6,995 | | | - | | | 6,997 | Other operating expenses | | | (2,910) | | | (100) | | | 108 | | | 44,881 | | | (409) | | | 41,570 | Amortization of intangibles | | | - | | | - | | | - | | | 2,411 | | | - | | | 2,411 | | Total operating expenses | | | 37,798 | | | 19 | | | 117 | | | 334,594 | | | (987) | | | 371,541 | Income (loss) before income tax | | | | | | | | | | | | | | | | | | | | and equity in losses of subsidiaries | | | 664,085 | | | 3,373 | | | (10,022) | | | 19,830 | | | (81,148) | | | 596,118 | Income tax expense (benefit) | | | 84,664 | | | 1,335 | | | (297) | | | 16,139 | | | 191 | | | 102,032 | Income (loss) before equity in | | | | | | | | | | | | | | | | | | | | losses of subsidiaries | | | 579,421 | | | 2,038 | | | (9,725) | | | 3,691 | | | (81,339) | | | 494,086 | Equity in undistributed losses of subsidiaries | | | (85,335) | | | (24,235) | | | (14,330) | | | - | | | 123,900 | | | - | NET INCOME (LOSS) | | $ | 494,086 | | $ | (22,197) | | $ | (24,055) | | $ | 3,691 | | $ | 42,561 | | $ | 494,086 |
Condensed Statement of Operations (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, 2010 | | | | | | | | | | | | All other | | | | | | | | | | Popular, Inc. | PIBI | PNA | subsidiaries and | Elimination | Popular, Inc. | (In thousands) | | Holding Co. | Holding Co. | Holding Co. | eliminations | entries | Consolidated | INTEREST AND DIVIDEND INCOME: | | | | | | | | | | | | | | | | | | | | Dividend income from subsidiaries | | $ | 168,100 | | $ | 7,500 | | $ | - | | $ | - | | $ | (175,600) | | $ | - | | Loans | | | 4,301 | | | - | | | - | | | 1,230,774 | | | (3,785) | | | 1,231,290 | | Money market investments | | | 52 | | | 237 | | | 1 | | | 4,326 | | | (290) | | | 4,326 | | Investment securities | | | 19,113 | | | 24 | | | 242 | | | 183,761 | | | (18,022) | | | 185,118 | | Trading account securities | | | - | | | - | | | - | | | 20,313 | | | - | | | 20,313 | | Total interest and dividend income | | | 191,566 | | | 7,761 | | | 243 | | | 1,439,174 | | | (197,697) | | | 1,441,047 | INTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | Deposits | | | - | | | - | | | - | | | 270,157 | | | (238) | | | 269,919 | | Short-term borrowings | | | 46 | | | - | | | 307 | | | 49,225 | | | (3,822) | | | 45,756 | | Long-term debt | | | 86,231 | | | - | | | 22,960 | | | 94,415 | | | (18,524) | | | 185,082 | | Total interest expense | | | 86,277 | | | - | | | 23,267 | | | 413,797 | | | (22,584) | | | 500,757 | Net interest income (expense) | | | 105,289 | | | 7,761 | | | (23,024) | | | 1,025,377 | | | (175,113) | | | 940,290 | Provision for loan losses | | | - | | | - | | | - | | | 657,471 | | | - | | | 657,471 | Net interest income (expense) | | | | | | | | | | | | | | | | | | | | after provision for loan losses | | | 105,289 | | | 7,761 | | | (23,024) | | | 367,906 | | | (175,113) | | | 282,819 | Service charges on deposit accounts | | | - | | | - | | | - | | | 149,865 | | | - | | | 149,865 | Other service fees | | | - | | | - | | | - | | | 307,677 | | | (1,810) | | | 305,867 | Net gain on sale and valuation adjustments of | | | | | | | | | | | | | | | | | | | | investment securities | | | - | | | - | | | - | | | 4,210 | | | - | | | 4,210 | Trading account profit | | | - | | | - | | | - | | | 8,101 | | | - | | | 8,101 | Net gain on sale of loans, including valuation | | | | | | | | | | | | | | | | | | | | adjustments on loans held-for-sale | | | - | | | - | | | - | | | 14,396 | | | - | | | 14,396 | Adjustments (expense) to indemnity reserves | | | | | | | | | | | | | | | | | | | | on loans sold | | | - | | | - | | | - | | | (37,502) | | | - | | | (37,502) | FDIC loss share expense | | | - | | | - | | | - | | | (22,705) | | | - | | | (22,705) | Fair value change in equity appreciation instrument | | | - | | | - | | | - | | | 35,035 | | | - | | | 35,035 | Gain on sale of processing and technology business | | | 640,802 | | | - | | | - | | | - | | | - | | | 640,802 | Other operating income (loss) | | | 1,198 | | | 14,931 | | | (3,640) | | | 75,641 | | | (3,612) | | | 84,518 | | Total non-interest income (loss) | | | 642,000 | | | 14,931 | | | (3,640) | | | 534,718 | | | (5,422) | | | 1,182,587 | OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | Personnel costs | | | 16,080 | | | 321 | | | - | | | 384,167 | | | (399) | | | 400,169 | Net occupancy expenses | | | 2,096 | | | 26 | | | 2 | | | 84,235 | | | - | | | 86,359 | Equipment expenses | | | 2,148 | | | 1 | | | - | | | 72,082 | | | - | | | 74,231 | Other taxes | | | 1,337 | | | - | | | - | | | 37,298 | | | - | | | 38,635 | Professional fees | | | 26,103 | | | 10 | | | 9 | | | 85,194 | | | (1,818) | | | 109,498 | Communications | | | 360 | | | 16 | | | 10 | | | 31,242 | | | - | | | 31,628 | Business promotion | | | 663 | | | - | | | - | | | 29,096 | | | - | | | 29,759 | FDIC deposit insurance | | | - | | | - | | | - | | | 49,894 | | | - | | | 49,894 | Loss on early extinguishment of debt | | | 15,750 | | | - | | | - | | | 10,676 | | | - | | | 26,426 | Other real estate owned (OREO) expenses | | | 21 | | | - | | | - | | | 26,301 | | | - | | | 26,322 | Other operating expenses | | | (25,977) | | | (299) | | | 324 | | | 128,345 | | | (1,359) | | | 101,034 | Amortization of intangibles | | | - | | | - | | | - | | | 6,915 | | | - | | | 6,915 | | Total operating expenses | | | 38,581 | | | 75 | | | 345 | | | 945,445 | | | (3,576) | | | 980,870 | Income (loss) before income tax | | | | | | | | | | | | | | | | | | | | and equity in losses of subsidiaries | | | 708,708 | | | 22,617 | | | (27,009) | | | (42,821) | | | (176,959) | | | 484,536 | Income tax expense (benefit) | | | 83,025 | | | 3,136 | | | (297) | | | 33,757 | | | 373 | | | 119,994 | Income (loss) before equity in | | | | | | | | | | | | | | | | | | | | losses of subsidiaries | | | 625,683 | | | 19,481 | | | (26,712) | | | (76,578) | | | (177,332) | | | 364,542 | Equity in undistributed losses of subsidiaries | | | (261,141) | | | (200,353) | | | (167,324) | | | - | | | 628,818 | | | - | NET INCOME (LOSS) | | $ | 364,542 | | $ | (180,872) | | $ | (194,036) | | $ | (76,578) | | $ | 451,486 | | $ | 364,542 |
Condensed Consolidating Statement of Cash Flows (Unaudited) | | | | | | For the nine months ended September 30, 2011 | | | | | | | | | | | | | All other | | | | | | | | | | | Popular, Inc. | | PIBI | | PNA | | subsidiaries | | Elimination | | Popular, Inc. | (In thousands) | | Holding Co. | | Holding Co. | | Holding Co. | | and eliminations | | entries | | Consolidated | | | | | | | | | | | | | | | | | | Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net income | $ | 148,350 | $ | 20,185 | $ | 3,095 | $ | 199,101 | $ | (222,381) | $ | 148,350 | | | | | | | | | | | | | | | | | | Adjustments to reconcile net income to net cash | | | | | | | | | | | | | | (used in) provided by operating activities: | | | | | | | | | | | | | | Equity in undistributed earnings of subsidiaries | | (193,660) | | (3,894) | | (25,868) | | - | | 223,422 | | - | | Provision for loan losses | | - | | - | | - | | 395,912 | | - | | 395,912 | | Amortization of intangibles | | - | | - | | - | | 6,973 | | - | | 6,973 | | Depreciation and amortization of premises and | | | | | | | | | | | | | | | equipment | | 582 | | - | | 2 | | 34,280 | | - | | 34,864 | | Net (accretion of discounts) amortization of | | | | | | | | | | | | | | | premiums and deferred fees | | 18,397 | | - | | 149 | | (115,727) | | (487) | | (97,668) | | Impairment losses on net assets to be disposed of | | - | | 6,085 | | - | | - | | - | | 6,085 | | Fair value adjustments of mortgage servicing rights | | - | | - | | - | | 26,373 | | - | | 26,373 | | Fair value change in equity appreciation instrument | | - | | - | | - | | (8,323) | | - | | (8,323) | | FDIC loss share income | | - | | - | | - | | (49,344) | | - | | (49,344) | | FDIC deposit insurance expense | | - | | - | | - | | 68,640 | | - | | 68,640 | | Adjustments (expense) to indemnity reserves on | | | | | | | | | | | | | | | loans sold | | - | | - | | - | | 29,587 | | - | | 29,587 | | (Earnings) losses from investments under the | | | | | | | | | | | | | | | equity method | | (11,271) | | (14,699) | | (1,082) | | - | | 38,302 | | 11,250 | | Deferred income tax expense | | 3,555 | | 2,330 | | (264) | | 38,362 | | 625 | | 44,608 | | Loss (gain) on: | | | | | | | | | | | | | | | | Disposition of premises and equipment | | 7 | | - | | - | | (2,026) | | - | | (2,019) | | | | Sale and valuation adjustment of investment | | | | | | | | | | | | | | | | | securities | | - | | 88 | | - | | (8,132) | | - | | (8,044) | | | | Sale of loans, including valuation adjustments | | | | | | | | | | | | | | | | | on loans held for sale | | - | | - | | - | | (14,756) | | - | | (14,756) | | | | Sale of equity method investments | | (5,493) | | (11,414) | | - | | - | | - | | (16,907) | | Acquisitions of loans held-for-sale | | - | | - | | - | | (253,401) | | - | | (253,401) | | Proceeds from sale of loans held-for-sale | | - | | - | | - | | 101,549 | | - | | 101,549 | | Net disbursements on loans held-for-sale | | - | | - | | - | | (617,591) | | - | | (617,591) | | Net (increase) decrease in: | | | | | | | | | | | | | | | | Trading securities | | - | | - | | - | | 492,882 | | - | | 492,882 | | | | Accrued income receivable | | (686) | | (23) | | 80 | | 15,504 | | 49 | | 14,924 | | | | Other assets | | 4,134 | | 9,250 | | 1,406 | | (9,751) | | (30,615) | | (25,576) | | Net increase (decrease) in: | | | | | | | | | | | | | | | | Interest payable | | (3,467) | | - | | 3,048 | | (6,964) | | 39 | | (7,344) | | | | Pension and other postretirement benefits | | | | | | | | | | | | | | | | | obligations | | - | | - | | - | | (128,802) | | - | | (128,802) | | | | Other liabilities | | (72,709) | | (4,919) | | (2,349) | | (32,086) | | 2,908 | | (109,155) | Total adjustments | | (260,611) | | (17,196) | | (24,878) | | (36,841) | | 234,243 | | (105,283) | Net cash (used in) provided by operating activities | | (112,261) | | 2,989 | | (21,783) | | 162,260 | | 11,862 | | 43,067 | | | | | | | | | | | | | | | | | | Cash flows from investing activities: | | | | | | | | | | | | | | Net (increase) decrease in money market | | | | | | | | | | | | | | | investments | | (5,921) | | (7,180) | | (22) | | (283,893) | | 7,172 | | (289,844) | | Purchases of investment securities: | | | | | | | | | | | | | | | | Available-for-sale | | - | | - | | - | | (1,198,613) | | - | | (1,198,613) | | | | Held-to-maturity | | (37,093) | | (1,000) | | - | | (27,265) | | - | | (65,358) | | | | Other | | - | | - | | - | | (116,582) | | - | | (116,582) | | Proceeds from calls, paydowns, maturities and | | | | | | | | | | | | | | | redemptions of investment securities: | | | | | | | | | | | | | | | | Available-for-sale | | - | | - | | - | | 979,868 | | - | | 979,868 | | | | Held-to-maturity | | 50,613 | | 1,000 | | - | | 3,004 | | - | | 54,617 | | | | Other | | - | | - | | - | | 104,231 | | - | | 104,231 | | Proceeds from sale of investment securities: | | | | | | | | | | | | | | | | Available for sale | | - | | - | | - | | 35,099 | | - | | 35,099 | | | | Other | | - | | - | | - | | 2,294 | | - | | 2,294 | | Net repayments on loans | | 211,975 | | 193 | | - | | 1,008,687 | | (207,752) | | 1,013,103 | | Proceeds from sale of loans | | - | | - | | - | | 290,119 | | - | | 290,119 | | Acquisition of loan portfolios | | - | | - | | - | | (985,675) | | - | | (985,675) | | Payments received from FDIC under loss | | | | | | | | | | | | | | | sharing agreements | | - | | - | | - | | 561,111 | | - | | 561,111 | | Cash paid related to business acquisitions | | - | | - | | - | | (500) | | - | | (500) | | Net proceeds from sale of equity method | | | | | | | | | | | | | | | investments | | (10,690) | | 42,193 | | - | | - | | - | | 31,503 | | Capital contribution to subsidiary | | - | | (37,000) | | - | | - | | 37,000 | | - | | Mortgage servicing rights purchased | | - | | - | | - | | (1,251) | | - | | (1,251) | | Acquisition of premises and equipment | | (500) | | - | | - | | (37,368) | | - | | (37,868) | | Proceeds from sale of: | | | | | | | | | | | | | | | | Premises and equipment | | 19 | | - | | - | | 12,295 | | - | | 12,314 | | | | Foreclosed assets | | - | | - | | - | | 133,017 | | - | | 133,017 | Net cash provided by (used in) investing activities | | 208,403 | | (1,794) | | (22) | | 478,578 | | (163,580) | | 521,585 | | | | | | | | | | | | | | | | | | Cash flows from financing activities: | | | | | | | | | | | | | | Net increase (decrease) in: | | | | | | | | | | | | | | | | Deposits | | - | | - | | - | | 1,208,295 | | (15,643) | | 1,192,652 | | | | Federal funds purchased and assets sold under | | | | | | | | | | | | | | | | | agreements to repurchase | | - | | - | | - | | 189,056 | | - | | 189,056 | | | | Other short-term borrowings | | - | | - | | (13,500) | | (389,822) | | 205,300 | | (198,022) | | Payments of notes payable | | (100,000) | | - | | (3,000) | | (1,952,254) | | - | | (2,055,254) | | Proceeds from issuance of notes payable | | - | | - | | - | | 419,500 | | - | | 419,500 | | Proceeds from issuance of common stock | | 5,394 | | - | | - | | - | | - | | 5,394 | | Dividends paid | | (2,792) | | - | | - | | - | | - | | (2,792) | | Treasury stock acquired | | (418) | | - | | - | | - | | - | | (418) | | Return of capital | | 1,514 | | (1,514) | | - | | - | | - | | - | | Capital contribution from parent | | - | | - | | 37,000 | | - | | (37,000) | | - | Net cash (used in) provided by financing activities | | (96,302) | | (1,514) | | 20,500 | | (525,225) | | 152,657 | | (449,884) | Net (decrease) increase in cash and due from banks | | (160) | | (319) | | (1,305) | | 115,613 | | 939 | | 114,768 | Cash and due from banks at beginning of period | | 1,638 | | 618 | | 1,576 | | 451,723 | | (3,182) | | 452,373 | Cash and due from banks at end of period | $ | 1,478 | $ | 299 | $ | 271 | $ | 567,336 | $ | (2,243) | $ | 567,141 |
Condensed Consolidating Statement of Cash Flows (Unaudited) | | | | | | For the nine months ended September 30, 2010 | | | | | | | | | | | | | All other | | | | | | | | | | | Popular, Inc. | | PIBI | | PNA | | subsidiaries | | Elimination | | Popular, Inc. | (In thousands) | | Holding Co. | | Holding Co. | | Holding Co. | | and eliminations | | entries | | Consolidated | | | | | | | | | | | | | | | | | | Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net income (loss) | $ | 364,542 | $ | (180,872) | $ | (194,036) | $ | (76,578) | $ | 451,486 | $ | 364,542 | | | | | | | | | | | | | | | | | | Adjustments to reconcile net income to net cash | | | | | | | | | | | | | | provided by (used in) operating activities: | | | | | | | | | | | | | | Equity in undistributed earnings of subsidiaries | | 261,141 | | 200,353 | | 167,324 | | - | | (628,818) | | - | | Provision for loan losses | | - | | - | | - | | 657,471 | | - | | 657,471 | | Amortization of intangibles | | - | | - | | - | | 6,915 | | - | | 6,915 | | Depreciation and amortization of premises and | | | | | | | | | | | | | | | equipment | | 587 | | - | | 2 | | 46,495 | | - | | 47,084 | | Net (accretion of discounts) amortization of | | | | | | | | | | | | | | | premiums and deferred fees | | 15,636 | | - | | 206 | | (171,411) | | (487) | | (156,056) | | Fair value adjustments of mortgage servicing rights | | - | | - | | - | | 19,959 | | - | | 19,959 | | Fair value change in equity appreciation instrument | | - | | - | | - | | (35,035) | | - | | (35,035) | | FDIC loss share expense | | - | | - | | - | | 22,705 | | - | | 22,705 | | FDIC deposit insurance expense | | - | | - | | - | | 49,894 | | - | | 49,894 | | Adjustments (expense) to indemnity reserves on | | | | | | | | | | | | | | | loans sold | | - | | - | | - | | 37,502 | | - | | 37,502 | | (Earnings) losses from investments under the | | | | | | | | | | | | | | | equity method | | (1,198) | | (14,931) | | 3,640 | | (2,354) | | (1,301) | | (16,144) | | Deferred income tax expense | | 11,411 | | - | | - | | (4,470) | | 2,410 | | 9,351 | | Loss (gain) on: | | | | | | | | | | | | | | | | Disposition of premises and equipment | | 8 | | - | | - | | (2,001) | | - | | (1,993) | | | | Early extinguishment of debt | | 15,750 | | - | | - | | 10,676 | | - | | 26,426 | | | | Sale and valuation adjustment of investment | | | | | | | | | | | | | | | | | securities | | - | | - | | - | | (4,210) | | - | | (4,210) | | | | Sale of loans, including valuation adjustments | | | | | | | | | | | | | | | | | on loans held for sale | | - | | - | | - | | (14,396) | | - | | (14,396) | | | | Sale of processing and technology business, | | | | | | | | | | | | | | | | | net of transaction costs | | (616,186) | | - | | - | | - | | - | | (616,186) | | Acquisitions of loans held-for-sale | | - | | - | | - | | (213,897) | | - | | (213,897) | | Proceeds from sale of loans held-for-sale | | - | | - | | - | | 57,831 | | - | | 57,831 | | Net disbursements on loans held-for-sale | | - | | - | | - | | (494,312) | | - | | (494,312) | | Net (increase) decrease in: | | | | | | | | | | | | | | | | Trading securities | | - | | - | | - | | 565,611 | | - | | 565,611 | | | | Accrued income receivable | | (59) | | 118 | | 102 | | 1,733 | | (88) | | 1,806 | | | | Other assets | | 2,918 | | 5,669 | | 1,987 | | (29,902) | | (25,052) | | (44,380) | | Net increase (decrease) in: | | | | | | | | | | | | | | | | Interest payable | | (3,778) | | - | | 2,082 | | (32,951) | | 88 | | (34,559) | | | | Pension and other postretirement benefits | | | | | | | | | | | | | | | | | obligations | | - | | - | | - | | 1,825 | | - | | 1,825 | | | | Other liabilities | | 52,804 | | 3,144 | | (1,743) | | 17,794 | | 2,462 | | 74,461 | Total adjustments | | (260,966) | | 194,353 | | 173,600 | | 491,472 | | (650,786) | | (52,327) | Net cash provided by (used in) operating activities | | 103,576 | | 13,481 | | (20,436) | | 414,894 | | (199,300) | | 312,215 | | | | | | | | | | | | | | | | | | Cash flows from investing activities: | | | | | | | | | | | | | | Net (increase) decrease in money market | | | | | | | | | | | | | | | investments | | (164,801) | | 50,237 | | (68) | | (924,899) | | 114,618 | | (924,913) | | Purchases of investment securities: | | | | | | | | | | | | | | | | Available-for-sale | | (34,500) | | - | | - | | (671,328) | | 17,150 | | (688,678) | | | | Held-to-maturity | | (26,927) | | - | | - | | (25,271) | | - | | (52,198) | | | | Other | | - | | - | | - | | (44,021) | | - | | (44,021) | | Proceeds from calls, paydowns, maturities and | | | | | | | | | | | | | | | redemptions of investment securities: | | | | | | | | | | | | | | | | Available-for-sale | | - | | - | | - | | 1,329,390 | | - | | 1,329,390 | | | | Held-to-maturity | | 271,928 | | 250 | | - | | 23,889 | | (245,000) | | 51,067 | | | | Other | | - | | - | | - | | 108,470 | | - | | 108,470 | | Proceeds from sale of investment securities: | | | | | | | | | | | | | | | | Available for sale | | - | | - | | - | | 396,676 | | - | | 396,676 | | Net (disbursements) repayments on loans | | (481,194) | | - | | - | | 1,347,236 | | 426,893 | | 1,292,935 | | Proceeds from sale of loans | | - | | - | | - | | 15,908 | | - | | 15,908 | | Acquisition of loan portfolios | | - | | - | | - | | (130,488) | | - | | (130,488) | | Cash received from acquisitions | | - | | - | | - | | 261,311 | | - | | 261,311 | | Net proceeds from sale of processing and | | | | | | | | | | | | | | | technology business | | 617,976 | | - | | - | | 24,346 | | - | | 642,322 | | Capital contribution to subsidiary | | (1,095,000) | | (495,000) | | (495,000) | | - | | 2,085,000 | | - | | Mortgage servicing rights purchased | | - | | - | | - | | (598) | | - | | (598) | | Acquisition of premises and equipment | | (878) | | - | | - | | (39,458) | | - | | (40,336) | | Proceeds from sale of: | | | | | | | | | | | | | | | | Premises and equipment | | 116 | | - | | - | | 13,387 | | - | | 13,503 | | | | Foreclosed assets | | 74 | | - | | - | | 120,338 | | - | | 120,412 | Net cash (used in) provided by investing activities | | (913,206) | | (444,513) | | (495,068) | | 1,804,888 | | 2,398,661 | | 2,350,762 | | | | | | | | | | | | | | | | | | Cash flows from financing activities: | | | | | | | | | | | | | | Net increase (decrease) in: | | | | | | | | | | | | | | | | Deposits | | - | | - | | - | | (601,350) | | 26,611 | | (574,739) | | | | Federal funds purchased and assets sold under | | | | | | | | | | | | | | | | | agreements to repurchase | | - | | - | | - | | (109,851) | | (164,800) | | (274,651) | | | | Other short-term borrowings | | (24,225) | | - | | 24,500 | | 584,116 | | (400,375) | | 184,016 | | Prepayment penalties on early cancellation of debt | | (15,750) | | - | | - | | (9,725) | | - | | (25,475) | | Payments of notes payable | | (250,000) | | - | | (4,000) | | (3,274,449) | | 247,000 | | (3,281,449) | | Proceeds from issuance of notes payable | | - | | - | | - | | 111,101 | | - | | 111,101 | | Net proceeds from issuance of depository shares | | 1,100,613 | | - | | - | | - | | 1,618 | | 1,102,231 | | Dividends paid to parent company | | - | | (63,900) | | - | | (111,700) | | 175,600 | | - | | Treasury stock acquired | | (530) | | - | | - | | - | | - | | (530) | | Capital contribution from parent | | - | | 495,000 | | 495,000 | | 1,095,000 | | (2,085,000) | | - | Net cash provided by (used in) financing activities | | 810,108 | | 431,100 | | 515,500 | | (2,316,858) | | (2,199,346) | | (2,759,496) | Net increase (decrease) in cash and due from banks | | 478 | | 68 | | (4) | | (97,076) | | 15 | | (96,519) | Cash and due from banks at beginning of period | | 1,174 | | 300 | | 738 | | 677,606 | | (2,488) | | 677,330 | Cash and due from banks at end of period | $ | 1,652 | $ | 368 | $ | 734 | $ | 580,530 | $ | (2,473) | $ | 580,811 |
|