Condensed consolidating financial information of guarantor and issuers of registered guaranteed securities

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Schedule Condensed Financial Statements [Text Block]

Note 32 – 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 March 31, 2012, December 31, 2011 and March 31,2011, and the results of their operations and cash flows for periods ended March 31,2012 and 2011.

PIBI is an operating, wholly-owned subsidiary of PIHC and is the holding company of its wholly-owned subsidiaries: Popular Insurance V.I., Inc. and Tarjetas y Transacciones en Red Tranred, C.A. Effective January 1, 2012, PNA, which was a wholly-owned subsidiary of PIBI prior to that date, became a direct wholly-owned subsidiary of PIHC after an internal reorganization.

Following the reorganization, PNA is an operating, wholly-owned subsidiary of PIHC 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. As of March 31, 2012 and 2011, and December 31, 2011, PIBI has no outstanding registered debt securities that would also be guaranteed by PIHC.

A source of income for PIHC consists of dividends from BPPR. Currently, the prior approval of the Federal Reserve Bank of New York and the Office of the Commissioner of Financial Institutions in Puerto Rico is necessary for the payment of any dividends by BPPR to PIHC. Furthermore, under 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 March 31,2012, BPPR could have declared a dividend of approximately $239million (March 31,2011- $70 million; December 31, 2011 - $243 million); however, the prior approval continues to be necessary. BPNA could not have declared any dividends without the prior approval of the Federal Reserve Bank of New York.

Condensed Consolidating Statement of Financial Condition
		At March 31, 2012
									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			$	4,460	$	936	$	930	$	473,020	$	(6,540)	$	472,806
Money market investments				18,298		16,100		14,526		1,285,964		(30,625)		1,304,263
Trading account securities, at fair value				-		-		-		404,293		-		404,293
Investment securities available-for-sale, at
	fair value			41,798		-		-		5,114,293		(17,475)		5,138,616
Investment securities held-to-maturity, at
	amortized cost			185,000		1,000		-		123,372		(185,000)		124,372
Other investment securities, at lower of cost
	or realizable value			10,850		1		4,492		180,365		-		195,708
Investment in subsidiaries				4,081,525		944		1,633,640		-		(5,716,109)		-
Loans held-for-sale, at lower of cost or
	fair value			-		-		-		361,596		-		361,596
Loans held-in-portfolio:
	Loans not covered under loss sharing
	agreements with the FDIC			212,602		-		-		20,548,313		(182,920)		20,577,995
	Loans covered under loss sharing
	agreements with the FDIC			-		-		-		4,221,788		-		4,221,788
	Less - Unearned income			-		-		-		99,321		-		99,321
	Allowance for loan losses			148		-		-		803,116		-		803,264
	Total loans held-in-portfolio, net			212,454		-		-		23,867,664		(182,920)		23,897,198
FDIC loss share asset				-		-		-		1,880,357		-		1,880,357
Premises and equipment, net				2,563		-		118		530,864		-		533,545
Other real estate not covered under loss
	sharing agreements with the FDIC			-		-		-		193,768		-		193,768
Other real estate covered under loss
	sharing agreements with the FDIC			-		-		-		110,559		-		110,559
Accrued income receivable				2,156		6		37		124,471		(102)		126,568
Mortgage servicing assets, at fair value				-		-		-		156,331		-		156,331
Other assets				232,648		71,068		12,954		1,163,764		(40,902)		1,439,532
Goodwill				-		-		-		647,912		(1)		647,911
Other intangible assets				554		-		-		61,244		-		61,798
Total assets			$	4,792,306	$	90,055	$	1,666,697	$	36,679,837	$	(6,179,674)	$	37,049,221
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
	Non-interest bearing		$	-	$	-	$	-	$	5,374,587	$	(8,167)	$	5,366,420
	Interest bearing			-		-		-		21,899,143		(67,827)		21,831,316
	Total deposits			-		-		-		27,273,730		(75,994)		27,197,736
Assets sold under agreements to repurchase				-		-		-		2,113,557		-		2,113,557
Other short-term borrowings				-		-		-		908,000		(156,800)		751,200
Notes payable				767,769		-		427,325		648,660		-		1,843,754
Subordinated notes				-		-		-		185,000		(185,000)		-
Other liabilities				57,466		4,707		44,784		1,114,857		(45,911)		1,175,903
Total liabilities				825,235		4,707		472,109		32,243,804		(463,705)		33,082,150
Stockholders' equity:
Preferred stock				50,160		-		-		-		-		50,160
Common stock				10,276		4,066		2		51,564		(55,632)		10,276
Surplus				4,108,183		2,929,370		4,153,208		5,870,137		(12,944,188)		4,116,710
Accumulated deficit				(156,721)		(2,819,171)		(3,015,889)		(1,467,930)		7,294,462		(165,249)
Treasury stock, at cost				(1,041)		-		-		-		-		(1,041)
Accumulated other comprehensive (loss)
	income, net of tax			(43,786)		(28,917)		57,267		(17,738)		(10,611)		(43,785)
Total stockholders' equity				3,967,071		85,348		1,194,588		4,436,033		(5,715,969)		3,967,071
Total liabilities and stockholders' equity			$	4,792,306	$	90,055	$	1,666,697	$	36,679,837	$	(6,179,674)	$	37,049,221

Condensed Consolidated Statement of Financial Condition (Unaudited)
		At March 31, 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			$	1,836	$	40,583	$	675	$	464,790	$	(43,329)	$	464,555
Money market investments				2		7,266		1,323		961,497		(8,523)		961,565
Trading account securities, at fair value				-		-		-		634,799		-		634,799
Investment securities available-for-sale, at
	fair value			37,363		3,898		-		5,663,205		(18,125)		5,686,341
Investment securities held-to-maturity, at
	amortized cost			209,734		1,000		-		116,372		(185,000)		142,106
Other investment securities, at lower of cost
	or realizable value			10,850		1		4,492		159,587		-		174,930
Investment in subsidiaries				3,846,966		1,104,183		1,595,118		-		(6,546,267)		-
Loans held-for-sale, at lower of cost or
	fair value			-		-		-		569,678		-		569,678
Loans held-in-portfolio:
	Loans not covered under loss sharing
	agreements with the FDIC			330,208		-		-		20,746,496		(295,155)		20,781,549
	Loans covered under loss sharing
	agreements with the FDIC			-		-		-		4,729,550		-		4,729,550
	Less - Unearned income			-		-		-		104,760		-		104,760
	Allowance for loan losses			60		-		-		736,445		-		736,505
	Total loans held-in-portfolio, net			330,148		-		-		24,634,841		(295,155)		24,669,834
FDIC loss share asset				-		-		-		2,426,305		-		2,426,305
Premises and equipment, net				2,818		-		121		540,638		-		543,577
Other real estate not covered under loss
	sharing agreements with the FDIC			-		-		-		156,888		-		156,888
Other real estate covered under loss
	sharing agreements with the FDIC			-		-		-		65,562		-		65,562
Accrued income receivable				2,347		14		31		145,365		(87)		147,670
Mortgage servicing assets, at fair value				-		-		-		167,416		-		167,416
Other assets				257,598		73,935		15,669		993,319		(25,782)		1,314,739
Goodwill				-		-		-		647,387		-		647,387
Other intangible assets				554		-		-		55,887		-		56,441
Total assets			$	4,700,216	$	1,230,880	$	1,617,429	$	38,403,536	$	(7,122,268)	$	38,829,793
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
	Non-interest bearing		$	-	$	-	$	-	$	4,981,103	$	(68,094)	$	4,913,009
	Interest bearing			-		-		-		22,292,338		(8,673)		22,283,665
	Total deposits			-		-		-		27,273,441		(76,767)		27,196,674
Assets sold under agreements to repurchase				-		-		-		2,642,800		-		2,642,800
Other short-term borrowings				-		-		42,400		514,902		(267,000)		290,302
Notes payable				741,684		-		427,189		2,625,782		-		3,794,655
Subordinated notes				-		-		-		185,000		(185,000)		-
Other liabilities				153,626		7,636		44,345		941,449		(46,600)		1,100,456
Total liabilities				895,310		7,636		513,934		34,183,374		(575,367)		35,024,887
Stockholders' equity:
Preferred stock				50,160		-		-		-		-		50,160
Common stock				10,236		4,066		2		51,564		(55,632)		10,236
Surplus				4,087,718		4,092,743		4,066,208		5,857,287		(14,007,711)		4,096,245
Accumulated deficit				(329,599)		(2,869,853)		(2,985,273)		(1,699,949)		7,546,548		(338,126)
Treasury stock, at cost				(607)		-		-		-		-		(607)
Accumulated other comprehensive
	(loss) income, net of tax			(13,002)		(3,712)		22,558		11,260		(30,106)		(13,002)
Total stockholders' equity				3,804,906		1,223,244		1,103,495		4,220,162		(6,546,901)		3,804,906
Total liabilities and stockholders' equity			$	4,700,216	$	1,230,880	$	1,617,429	$	38,403,536	$	(7,122,268)	$	38,829,793

Condensed Consolidating Statement of Financial Condition
		At December 31, 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			$	6,365	$	391	$	932	$	534,796	$	(7,202)	$	535,282
Money market investments				42,239		15,456		552		1,357,890		(39,963)		1,376,174
Trading account securities, at fair value				-		-		-		436,331		-		436,331
Investment securities available-for-sale, at
	fair value			35,700		3,370		-		4,988,390		(17,637)		5,009,823
Investment securities held-to-maturity, at
	amortized cost			185,000		1,000		-		124,383		(185,000)		125,383
Other investment securities, at lower of cost
	or realizable value			10,850		1		4,492		164,537		-		179,880
Investment in subsidiaries				3,987,287		1,147,617		1,627,313		-		(6,762,217)		-
Loans held-for-sale, at lower of cost or
	fair value			-		-		-		363,093		-		363,093
Loans held-in-portfolio:
	Loans not covered under loss sharing
	agreements with the FDIC			249,615		-		-		20,673,552		(219,975)		20,703,192
	Loans covered under loss sharing
	agreements with the FDIC			-		-		-		4,348,703		-		4,348,703
	Less - Unearned income			-		-		-		100,596		-		100,596
	Allowance for loan losses			8		-		-		815,300		-		815,308
	Total loans held-in-portfolio, net			249,607		-		-		24,106,359		(219,975)		24,135,991
FDIC loss share asset				-		-		-		1,915,128		-		1,915,128
Premises and equipment, net				2,533		-		118		535,835		-		538,486
Other real estate not covered under loss
	sharing agreements with the FDIC			-		-		-		172,497		-		172,497
Other real estate covered under loss
	sharing agreements with the FDIC			-		-		-		109,135		-		109,135
Accrued income receivable				1,512		15		113		123,858		(289)		125,209
Mortgage servicing assets, at fair value				-		-		-		151,323		-		151,323
Other assets				217,877		78,221		13,222		1,183,103		(30,030)		1,462,393
Goodwill				-		-		-		648,350		-		648,350
Other intangible assets				554		-		-		63,400		-		63,954
Total assets			$	4,739,524	$	1,246,071	$	1,646,742	$	36,978,408	$	(7,262,313)	$	37,348,432
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
	Non-interest bearing		$	-	$	-	$	-	$	5,689,034	$	(33,560)	$	5,655,474
	Interest bearing			-		-		-		22,302,798		(16,145)		22,286,653
	Total deposits			-		-		-		27,991,832		(49,705)		27,942,127
Assets sold under agreements to repurchase				-		-		-		2,165,157		(24,060)		2,141,097
Other short-term borrowings				-		-		30,500		459,600		(193,900)		296,200
Notes payable				760,849		-		427,297		668,226		-		1,856,372
Subordinated notes				-		-		-		185,000		(185,000)		-
Other liabilities				59,922		4,901		42,269		1,133,815		(47,024)		1,193,883
Total liabilities				820,771		4,901		500,066		32,603,630		(499,689)		33,429,679
Stockholders' equity:
Preferred stock				50,160		-		-		-		-		50,160
Common stock				10,263		4,066		2		51,564		(55,632)		10,263
Surplus				4,106,134		4,092,743		4,103,208		5,870,287		(14,057,711)		4,114,661
Accumulated deficit				(204,199)		(2,883,705)		(3,013,481)		(1,532,810)		7,421,469		(212,726)
Treasury stock, at cost				(1,057)		-		-		-		-		(1,057)
Accumulated other comprehensive
	(loss) income, net of tax			(42,548)		28,066		56,947		(14,263)		(70,750)		(42,548)
Total stockholders' equity				3,918,753		1,241,170		1,146,676		4,374,778		(6,762,624)		3,918,753
Total liabilities and stockholders' equity			$	4,739,524	$	1,246,071	$	1,646,742	$	36,978,408	$	(7,262,313)	$	37,348,432

Condensed Statement of Operations (Unaudited)
			Quarter ended March 31, 2012
										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	$	1,691		$	-		$	-		$	387,548		$	(1,297)		$	387,942
	Money market investments		12			20			8			946			(38)			948
	Investment securities		4,042			4			81			44,164			(3,221)			45,070
	Trading account securities		-			-			-			5,891			-			5,891
	Total interest income		5,745			24			89			438,549			(4,556)			439,851
Interest expense:
	Deposits		-			-			-			51,760			(81)			51,679
	Short-term borrowings		-			-			143			14,292			(852)			13,583
	Long-term debt		23,527			-			8,077			8,367			(2,964)			37,007
	Total interest expense		23,527			-			8,220			74,419			(3,897)			102,269
Net interest (expense) income			(17,782)			24			(8,131)			364,130			(659)			337,582
Provision for loan losses			140			-			-			100,583			-			100,723
Net interest (expense) income
	after provision for loan losses		(17,922)			24			(8,131)			263,547			(659)			236,859
Service charges on deposit accounts			-			-			-			46,589			-			46,589
Other service fees			-			-			-			68,962			(2,923)			66,039
Trading account loss			-			-			-			(2,143)			-			(2,143)
Net gain on sale of loans, including valuation
	adjustments on loans held-for-sale		-			-			-			15,471			-			15,471
Adjustments (expense) to indemnity reserves
	on loans sold		-			-			-			(3,875)			-			(3,875)
FDIC loss share expense			-			-			-			(15,255)			-			(15,255)
Other operating income (loss)			2,952			6,109			(169)			21,535			(13,345)			17,082
	Total non-interest income (loss)		2,952			6,109			(169)			131,284			(16,268)			123,908
Operating expenses:
Personnel costs			7,904			150			-			113,437			-			121,491
Net occupancy expenses			861			8			1			22,468			824			24,162
Equipment expenses			880			-			-			10,461			-			11,341
Other taxes			713			-			-			12,725			-			13,438
Professional fees			1,991			40			3			64,089			(18,018)			48,105
Communications			133			-			-			6,998			-			7,131
Business promotion			411			-			-			12,439			-			12,850
FDIC deposit insurance			-			-			-			24,926			-			24,926
Loss on early extinguishment of debt			-			-			-			69			-			69
Other real estate owned (OREO) expenses			-			-			-			14,165			-			14,165
Other operating expenses			(12,280)			(4,399)			110			32,942			(477)			15,896
Amortization of intangibles			-			-			-			2,593			-			2,593
	Total operating expenses		613			(4,201)			114			317,312			(17,671)			296,167
(Loss) income before income tax
	and equity in earnings (losses) of subsidiaries		(15,583)			10,334			(8,414)			77,519			744			64,600
Income tax expense (benefit)			672			(393)			-			15,714			199			16,192
(Loss) income before equity in
	earnings (losses) of subsidiaries		(16,255)			10,727			(8,414)			61,805			545			48,408
Equity in undistributed earnings (losses) of
	subsidiaries		64,663			(3,141)			6,006			-			(67,528)			-
Net income (loss)		$	48,408		$	7,586		$	(2,408)		$	61,805		$	(66,983)		$	48,408
Comprehensive income (loss), net of tax		$	47,171		$	(49,397)		$	(2,088)		$	58,330		$	(6,845)		$	47,171

Condensed Statement of Operations (Unaudited)
				Quarter ended March 31, 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			3,020			16			-			422,726			(2,387)			423,375
	Money market investments			-			16			1			969			(39)			947
	Investment securities			4,130			7			81			51,379			(3,222)			52,375
	Trading account securities			-			-			-			8,754			-			8,754
	Total interest income			7,150			39			82			483,828			(5,648)			485,451
Interest expense:
	Deposits			-			-			-			77,040			(161)			76,879
	Short-term borrowings			22			-			314			15,556			(1,877)			14,015
	Long-term debt			25,548			-			7,600			20,978			(2,928)			51,198
	Total interest expense			25,570			-			7,914			113,574			(4,966)			142,092
Net interest (expense) income				(18,420)			39			(7,832)			370,254			(682)			343,359
Provision for loan losses				-			-			-			75,319			-			75,319
Net interest (expense) income
	after provision for loan losses			(18,420)			39			(7,832)			294,935			(682)			268,040
Service charges on deposit accounts				-			-			-			45,630			-			45,630
Other service fees				-			-			-			62,040			(3,388)			58,652
Trading account loss				-			-			-			(499)			-			(499)
Net gain on sale of loans, including valuation
	adjustments on loans held-for-sale			-			-			-			7,244			-			7,244
Adjustments (expense) to indemnity reserves
	on loans sold			-			-			-			(9,848)			-			(9,848)
FDIC loss share income				-			-			-			16,035			-			16,035
Fair value change in equity appreciation instrument				-			-			-			7,745			-			7,745
Other operating income				18,185			19,944			1,696			12,875			(13,291)			39,409
	Total non-interest income			18,185			19,944			1,696			141,222			(16,679)			164,368
Operating expenses:
Personnel costs				6,856			84			-			99,200			-			106,140
Net occupancy expenses				806			8			1			22,886			885			24,586
Equipment expenses				772			2			-			11,262			-			12,036
Other taxes				330			-			-			11,642			-			11,972
Professional fees				2,826			25			2			62,424			(18,589)			46,688
Communications				122			5			5			7,078			-			7,210
Business promotion				423			-			-			9,437			-			9,860
FDIC deposit insurance				-			-			-			17,673			-			17,673
Loss on early extinguishment of debt				8,000			-			-			239			-			8,239
Other real estate owned (OREO) expenses				-			-			-			2,211			-			2,211
Other operating expenses				(11,481)			8,468			110			29,583			(501)			26,179
Amortization of intangibles				-			-			-			2,255			-			2,255
	Total operating expenses			8,654			8,592			118			275,890			(18,205)			275,049
(Loss) income before income tax
	and equity in earnings of subsidiaries			(8,889)			11,391			(6,254)			160,267			844			157,359
Income tax expense (benefit)				2,026			3,462			(264)			141,699			304			147,227
(Loss) income before equity in
	earnings of subsidiaries			(10,915)			7,929			(5,990)			18,568			540			10,132
Equity in undistributed earnings of subsidiaries				21,047			16,665			21,399			-			(59,111)			-
Net income			$	10,132		$	24,594		$	15,409		$	18,568		$	(58,571)		$	10,132
Comprehensive income, net of tax			$	3,091		$	31,344		$	12,632		$	(159)		$	(43,817)		$	3,091

Condensed ConsolidatingStatementof Cash Flows(Unaudited)

						Quarter ended March 31, 2012
												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)					$	48,408	$	7,586	$	(2,408)	$	61,805	$	(66,983)	$	48,408
Adjustments to reconcile net income (loss) to net
	cash (used in) provided by operating activities:
	Equity in undistributed (earnings) losses of subsidiaries					(64,663)		3,141		(6,006)		-		67,528		-
	Provision for loan losses					140		-		-		100,583		-		100,723
	Amortization of intangibles					-		-		-		2,593		-		2,593
	Depreciation and amortization of premises and
		equipment				161		-		1		11,594		-		11,756
	Net accretion of discounts and amortization
		of premiums and deferred fees				6,920		-		28		(10,863)		(162)		(4,077)
	Fair value adjustments on mortgage servicing rights					-		-		-		(784)		-		(784)
	FDIC loss share income					-		-		-		15,255		-		15,255
	FDIC deposit insurance expense					-		-		-		24,926		-		24,926
	Adjustments (expense) to indemnity reserves on
		loans sold				-		-		-		3,875		-		3,875
	(Earnings) losses from investments under the
		equity method				(2,952)		(6,109)		170		(6,706)		13,345		(2,252)
	Deferred income tax expense (benefit)					468		(871)		-		4,622		199		4,418
	Loss (gain) on:
			Disposition of premises and equipment			-		-		-		(6,284)		-		(6,284)
			Early extinguishment of debt			-		-		-		69		-		69
			Sale of loans, including valuation adjustments
				on loans held for sale		-		-		-		(15,471)		-		(15,471)
	Acquisitions of loans held-for-sale					-		-		-		(76,118)		-		(76,118)
	Proceeds from sale of loans held-for-sale					-		-		-		63,460		-		63,460
	Net disbursements on loans held-for-sale					-		-		-		(223,500)		-		(223,500)
	Net (increase) decrease in:
			Trading securities			-		-		-		270,691		-		270,691
			Accrued income receivable			(643)		9		73		(609)		(187)		(1,357)
			Other assets			719		(2,664)		99		27,474		(2,672)		22,956
	Net increase (decrease) in:
			Interest payable			-		-		2,525		(4,828)		54		(2,249)
			Pension and other postretirement benefits
				obligations		-		-		-		4,720		-		4,720
			Other liabilities			(2,766)		203		(11)		(908)		1,061		(2,421)
Total adjustments						(62,616)		(6,291)		(3,121)		183,791		79,166		190,929
Net cash (used in) provided by operating activities						(14,208)		1,295		(5,529)		245,596		12,183		239,337
Cash flows from investing activities:
	Net decrease (increase) in money market investments					24,046		(750)		(13,973)		71,925		(9,337)		71,911
	Purchases of investment securities:
			Available-for-sale			-		-		-		(529,445)		-		(529,445)
			Held-to-maturity			-		-		-		(250)		-		(250)
			Other			-		-		-		(47,629)		-		(47,629)
	Proceeds from calls, paydowns, maturities and
		redemptions of investment securities:
			Available-for-sale			-		-		-		388,472		-		388,472
			Held-to-maturity			-		-		-		1,539		-		1,539
			Other			-		-		-		31,800		-		31,800
	Net repayments on loans					37,014		-		-		191,114		(37,055)		191,073
	Proceeds from sale of loans					-		-		-		21,304		-		21,304
	Acquisition of loan portfolios					-		-		-		(140,005)		-		(140,005)
	Payments received from FDIC under loss
		sharing agreements				-		-		-		20,896		-		20,896
	Capital contribution to subsidiary					(50,000)		-		-		-		50,000		-
	Mortgage servicing rights purchased					-		-		-		(474)		-		(474)
	Acquisition of premises and equipment					(199)		-		-		(12,099)		-		(12,298)
	Proceeds from sale of:
			Premises and equipment			6		-		-		11,940		-		11,946
			Foreclosed assets			-		-		-		25,923		-		25,923
Net cash provided by (used in) investing activities						10,867		(750)		(13,973)		35,011		3,608		34,763
Cash flows from financing activities:
	Net increase (decrease) in:
			Deposits			-		-		-		(719,617)		(26,289)		(745,906)
			Federal funds purchased and assets sold under
				agreements to repurchase		-		-		-		(51,601)		24,060		(27,541)
			Other short-term borrowings			-		-		(30,500)		448,400		37,100		455,000
	Payments of notes payable					-		-		-		(22,284)		-		(22,284)
	Proceeds from issuance of notes payable					-		-		-		2,719		-		2,719
	Proceeds from issuance of common stock					2,062		-		-		-		-		2,062
	Dividends paid					(620)		-		-		-		-		(620)
	Treasury stock acquired					(6)		-		-		-		-		(6)
	Capital contribution from parent					-		-		50,000		-		(50,000)		-
Net cash provided by (used in) financing activities						1,436		-		19,500		(342,383)		(15,129)		(336,576)
Net (decrease) increase in cash and due from banks						(1,905)		545		(2)		(61,776)		662		(62,476)
Cash and due from banks at beginning of period						6,365		391		932		534,796		(7,202)		535,282
Cash and due from banks at end of period					$	4,460	$	936	$	930	$	473,020	$	(6,540)	$	472,806

Condensed Consolidating Statementof Cash Flows

						Quarter ended March 31, 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					$	10,132	$	24,594	$	15,409	$	18,568	$	(58,571)	$	10,132
Adjustments to reconcile net income to net cash
	used in operating activities:
	Equity in undistributed earnings of subsidiaries					(21,047)		(16,665)		(21,399)		-		59,111		-
	Provision for loan losses					-		-		-		75,319		-		75,319
	Amortization of intangibles					-		-		-		2,255		-		2,255
	Depreciation and amortization of premises and
		equipment				196		-		1		11,863		-		12,060
	Net accretion of discounts and amortization
		of premiums and deferred fees				5,885		-		69		(94,119)		(162)		(88,327)
	Impairment losses on net assets to be disposed of					-		8,564		-		-		-		8,564
	Fair value adjustments on mortgage servicing rights					-		-		-		6,171		-		6,171
	Fair value change in equity appreciation instrument					-		-		-		(7,745)		-		(7,745)
	FDIC loss share income					-		-		-		(13,621)		-		(13,621)
	FDIC deposit insurance expense					-		-		-		17,673		-		17,673
	Adjustments (expense) to indemnity reserves on
		loans sold				-		-		-		9,848		-		9,848
	Earnings from investments under the equity
		method				(11,881)		(6,540)		(1,695)		-		13,290		(6,826)
	Deferred income tax expense					3,100		37		-		137,474		304		140,915
	Loss (gain) on:
			Disposition of premises and equipment			-		-		-		(1,412)		-		(1,412)
			Sale of loans, including valuation adjustments
				on loans held for sale		-		-		-		(7,244)		-		(7,244)
			Sale of equity method investments			(5,308)		(11,358)		-		-		-		(16,666)
	Acquisitions of loans held-for-sale					-		-		-		(90,780)		-		(90,780)
	Proceeds from sale of loans held-for-sale					-		-		-		45,448		-		45,448
	Net disbursements on loans held-for-sale					-		-		-		(184,641)		-		(184,641)
	Net (increase) decrease in:
			Trading securities			-		-		-		206,222		-		206,222
			Accrued income receivable			(838)		(15)		80		3,770		(9)		2,988
			Other assets			(251)		397		1,131		4,922		(10,801)		(4,602)
	Net increase (decrease) in:
			Interest payable			(3,467)		-		2,003		(2,955)		9		(4,410)
			Pension and other postretirement benefits
				obligations		-		-		-		(123,957)		-		(123,957)
			Other liabilities			(15,200)		203		(2,338)		(23,946)		3,078		(38,203)
Total adjustments						(48,811)		(25,377)		(22,148)		(29,455)		64,820		(60,971)
Net cash used in operating activities						(38,679)		(783)		(6,739)		(10,887)		6,249		(50,839)
Cash flows from investing activities:
	Net decrease (increase) in money market
		investments				-		246		(1,062)		17,734		812		17,730
	Purchases of investment securities:
			Available-for-sale			-		-		-		(752,479)		-		(752,479)
			Held-to-maturity			(24,734)		-		-		(27,264)		-		(51,998)
			Other			-		-		-		(38,305)		-		(38,305)
	Proceeds from calls, paydowns, maturities and
		redemptions of investment securities:
			Available-for-sale			-		-		-		278,274		-		278,274
			Held-to-maturity			25,879		-		-		1,456		-		27,335
			Other			-		-		-		27,050		-		27,050
	Net repayments on loans					145,874		193		-		427,082		(145,527)		427,622
	Proceeds from sale of loans					-		-		-		200,387		-		200,387
	Acquisition of loan portfolios					-		-		-		(348,226)		-		(348,226)
	Payments received from FDIC under loss
		sharing agreements				-		-		-		583		-		583
	Net proceeds from sale of equity method
		investments				(10,755)		41,823		-		-		-		31,068
	Mortgage servicing rights purchased					-		-		-		(383)		-		(383)
	Acquisition of premises and equipment					(185)		-		-		(18,414)		-		(18,599)
	Proceeds from sale of:
			Premises and equipment			-		-		-		7,763		-		7,763
			Foreclosed assets			-		-		-		44,648		-		44,648
Net cash provided by (used in) investing activities						136,079		42,262		(1,062)		(180,094)		(144,715)		(147,530)
Cash flows from financing activities:
	Net increase (decrease) in:
			Deposits			-		-		-		480,386		(46,881)		433,505
			Federal funds purchased and assets sold under
				agreements to repurchase		-		-		-		230,250		-		230,250
			Other short-term borrowings			-		-		9,900		(229,020)		145,200		(73,920)
	Payments of notes payable					(100,000)		-		(3,000)		(519,568)		-		(622,568)
	Proceeds from issuance of notes payable					-		-		-		242,000		-		242,000
	Proceeds from issuance of common stock					2,247		-		-		-		-		2,247
	Dividends paid					(930)		-		-		-		-		(930)
	Treasury stock acquired					(33)		-		-		-		-		(33)
	Return of capital					1,514		(1,514)		-		-		-		-
Net cash (used in) provided by financing activities						(97,202)		(1,514)		6,900		204,048		98,319		210,551
Net increase (decrease) in cash and due from banks						198		39,965		(901)		13,067		(40,147)		12,182
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					$	1,836	$	40,583	$	675	$	464,790	$	(43,329)	$	464,555