Condensed consolidating financial information of guarantor and issuers of registered guaranteed securities (Tables)

6 Months Ended

Jun. 30, 2012

Condensed Consolidating Balance Sheet [Text Block]

Condensed Consolidating Statement of Financial Condition
		At June 30, 2012
							All other
			Popular Inc.		PNA		subsidiaries and		Elimination		Popular, Inc.
(In thousands)			Holding Co.		Holding Co.		eliminations		entries		Consolidated
Assets
Cash and due from banks			$	9,269	$	628	$	515,541	$	(10,100)	$	515,338
Money market investments				18,321		4,892		931,507		(4,892)		949,828
Trading account securities, at fair value				-		-		417,469		-		417,469
Investment securities available-for-sale, at
	fair value			40,251		-		5,053,684		(17,138)		5,076,797
Investment securities held-to-maturity, at
	amortized cost			185,000		-		124,646		(185,000)		124,646
Other investment securities, at lower of cost
	or realizable value			10,850		4,492		158,945		-		174,287
Investment in subsidiaries				4,146,742		1,638,655		-		(5,785,397)		-
Loans held-for-sale, at lower of cost or
	fair value			-		-		364,537		-		364,537
Loans held-in-portfolio:
	Loans not covered under loss sharing
	agreements with the FDIC			324,468		-		20,733,740		(294,598)		20,763,610
	Loans covered under loss sharing
	agreements with the FDIC			-		-		4,016,330		-		4,016,330
	Less - Unearned income			-		-		97,801		-		97,801
	Allowance for loan losses			357		-		765,673		-		766,030
	Total loans held-in-portfolio, net			324,111		-		23,886,596		(294,598)		23,916,109
FDIC loss share asset				-		-		1,631,594		-		1,631,594
Premises and equipment, net				2,558		117		524,352		-		527,027
Other real estate not covered under loss
	sharing agreements with the FDIC			-		-		226,629		-		226,629
Other real estate covered under loss
	sharing agreements with the FDIC			-		-		125,093		-		125,093
Accrued income receivable				1,190		112		121,112		(94)		122,320
Mortgage servicing assets, at fair value				-		-		155,711		-		155,711
Other assets				104,263		13,869		1,473,264		(13,602)		1,577,794
Goodwill				-		-		647,757		-		647,757
Other intangible assets				553		-		58,690		-		59,243
Total assets			$	4,843,108	$	1,662,765	$	36,417,127	$	(6,310,821)	$	36,612,179
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
	Non-interest bearing		$	-	$	-	$	$5,588,700	$	($10,213)	$	5,578,487
	Interest bearing			-		-		21,851,788		(15,495)		21,836,293
	Total deposits			-		-		27,440,488		(25,708)		27,414,780
Assets sold under agreements to repurchase				-		-		1,426,636		-		1,426,636
Other short-term borrowings				-		-		584,900		(268,700)		316,200
Notes payable				774,974		427,353		675,256		-		1,877,583
Subordinated notes				-		-		185,000		(185,000)		-
Other liabilities				46,897		42,210		1,512,537		(45,901)		1,555,743
Total liabilities				821,871		469,563		31,824,817		(525,309)		32,590,942
Stockholders' equity:
Preferred stock				50,160		-		-		-		50,160
Common stock				1,028		2		55,628		(55,630)		1,028
Surplus				4,118,689		4,153,208		8,799,459		(12,944,140)		4,127,216
Accumulated deficit				(91,913)		(3,015,083)		(4,204,640)		7,211,196		(100,440)
Treasury stock, at cost				(144)		-		-		-		(144)
Accumulated other comprehensive (loss)
	income, net of tax			(56,583)		55,075		(58,137)		3,062		(56,583)
Total stockholders' equity				4,021,237		1,193,202		4,592,310		(5,785,512)		4,021,237
Total liabilities and stockholders' equity			$	4,843,108	$	1,662,765	$	36,417,127	$	(6,310,821)	$	36,612,179

Condensed Consolidating Statement of Financial Condition
		At December 31, 2011
							All other
			Popular, Inc.		PNA		subsidiaries and		Elimination		Popular, Inc.
(In thousands)			Holding Co.		Holding Co.		eliminations		entries		Consolidated
Assets
Cash and due from banks			$	6,365	$	932	$	534,796	$	(6,811)	$	535,282
Money market investments				42,239		552		1,357,996		(24,613)		1,376,174
Trading account securities, at fair value				-		-		436,331		-		436,331
Investment securities available-for-sale, at
	fair value			35,700		-		4,991,760		(17,637)		5,009,823
Investment securities held-to-maturity, at
	amortized cost			185,000		-		125,383		(185,000)		125,383
Other investment securities, at lower of cost
	or realizable value			10,850		4,492		164,538		-		179,880
Investment in subsidiaries				3,987,287		1,627,313		-		(5,614,600)		-
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		113		123,859		(275)		125,209
Mortgage servicing assets, at fair value				-		-		151,323		-		151,323
Other assets				217,877		13,222		1,261,324		(30,030)		1,462,393
Goodwill				-		-		648,350		-		648,350
Other intangible assets				554		-		63,400		-		63,954
Total assets			$	4,739,524	$	1,646,742	$	37,061,107	$	(6,098,941)	$	37,348,432
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
	Non-interest bearing		$	-	$	-	$	5,688,643	$	($33,169)	$	5,655,474
	Interest bearing			-		-		22,287,448		(795)		22,286,653
	Total deposits			-		-		27,976,091		(33,964)		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		$42,269		1,138,702		(47,010)		1,193,883
Total liabilities				820,771		500,066		32,592,776		(483,934)		33,429,679
Stockholders' equity:
Preferred stock				50,160		-		-		-		50,160
Common stock				1,026		2		55,627		(55,629)		1,026
Surplus				4,115,371		4,103,208		5,859,773		(9,954,454)		4,123,898
Accumulated deficit				(204,199)		(3,013,481)		(1,403,925)		4,408,879		(212,726)
Treasury stock, at cost				(1,057)		-		-		-		(1,057)
Accumulated other comprehensive
	(loss) income, net of tax			(42,548)		56,947		(43,144)		(13,803)		(42,548)
Total stockholders' equity				3,918,753		1,146,676		4,468,331		(5,615,007)		3,918,753
Total liabilities and stockholders' equity			$	4,739,524	$	1,646,742	$	37,061,107	$	(6,098,941)	$	37,348,432

Condensed Consolidating Statement Of Operations [Text Block]

Condensed Statement of Operations (Unaudited)
			Quarter ended June 30, 2012
							All other
		Popular, Inc.		PNA			subsidiaries and			Elimination			Popular, Inc.
(In thousands)		Holding Co.		Holding Co.			eliminations			entries			Consolidated
Interest income:
	Dividend income from subsidiaries	$	5,000		$	-		$	-		$	(5,000)		$	-
	Loans		1,516			-			388,991			(1,165)			389,342
	Money market investments		1			14			964			(15)			964
	Investment securities		4,146			80			42,782			(3,195)			43,813
	Trading account securities		-			-			5,963			-			5,963
	Total interest income		10,663			94			438,700			(9,375)			440,082
Interest expense:
	Deposits		-			-			48,555			(41)			48,514
	Short-term borrowings		-			(1)			13,830			(785)			13,044
	Long-term debt		23,817			8,079			8,341			(2,913)			37,324
	Total interest expense		23,817			8,078			70,726			(3,739)			98,882
Net interest (expense) income			(13,154)			(7,984)			367,974			(5,636)			341,200
Provision for loan losses- non-covered loans			209			-			81,534			-			81,743
Provision for loan losses- covered loans			-			-			37,456			-			37,456
Net interest (expense) income
	after provision for loan losses		(13,363)			(7,984)			248,984			(5,636)			222,001
Service charges on deposit accounts			-			-			46,130			-			46,130
Other service fees			-			-			66,224			(4,197)			62,027
Net loss on sale and valuation adjustments of
	investment securities		-			-			(349)			-			(349)
Trading account loss			-			-			(7,283)			-			(7,283)
Net loss on sale of loans, including valuation
	adjustments on loans held-for-sale		-			-			(15,397)			-			(15,397)
Adjustments (expense) to indemnity reserves
	on loans sold		-			-			(5,398)			-			(5,398)
FDIC loss share income			-			-			2,575			-			2,575
Other operating income			1,485			1,698			21,166			(12,930)			11,419
	Total non-interest income		1,485			1,698			107,668			(17,127)			93,724
Operating expenses:
Personnel costs			7,449			-			108,887			-			116,336
Net occupancy expenses			872			1			23,316			774			24,963
Equipment expenses			901			-			9,999			-			10,900
Other taxes			715			-			11,359			-			12,074
Professional fees			2,881			3			66,863			(17,620)			52,127
Communications			93			-			6,552			-			6,645
Business promotion			490			-			16,490			-			16,980
FDIC deposit insurance			-			-			22,907			-			22,907
Loss on early extinguishment of debt			-			-			25,072			-			25,072
Other real estate owned (OREO) expenses			-			-			2,380			-			2,380
Other operating expenses			(12,390)			111			47,761			(518)			34,964
Amortization of intangibles			-			-			2,531			-			2,531
	Total operating expenses		1,011			115			344,117			(17,364)			327,879
(Loss) income before income tax
	and equity in earnings of subsidiaries		(12,889)			(6,401)			12,535			(5,399)			(12,154)
Income tax benefit			(1,929)			-			(75,819)			(145)			(77,893)
(Loss) income before equity in
	earnings of subsidiaries		(10,960)			(6,401)			88,354			(5,254)			65,739
Equity in undistributed earnings of
	subsidiaries		76,699			7,208			-			(83,907)			-
Net income		$	65,739		$	807		$	88,354		$	(89,161)		$	65,739
Comprehensive income (loss), net of tax		$	52,941		$	(1,385)		$	76,872		$	(75,487)		$	52,941

Condensed Consolidating Statement of Operations
			Six months ended June 30, 2012
							All other
		Popular, Inc.		PNA			subsidiaries and			Elimination			Popular, Inc.
(In thousands)		Holding Co.		Holding Co.			eliminations			entries			Consolidated
Interest and Dividend Income:
	Dividend income from subsidiaries	$	5,000		$	-		$	-		$	(5,000)		$	-
	Loans		3,207			-			776,487			($2,410)			777,284
	Money market investments		13			22			1,911			(34)			1,912
	Investment securities		8,188			161			86,950			(6,416)			88,883
	Trading account securities		-			-			11,854			-			11,854
	Total interest and dividend income		16,408			183			877,202			(13,860)			879,933
Interest Expense:
	Deposits		-			-			100,296			(103)			100,193
	Short-term borrowings		-			142			28,122			(1,637)			26,627
	Long-term debt		47,344			16,156			16,656			(5,825)			74,331
	Total interest expense		47,344			16,298			145,074			(7,565)			201,151
Net interest (expense) income			(30,936)			(16,115)			732,128			(6,295)			678,782
Provision for loan losses- non-covered loans			349			-			163,908			-			164,257
Provision for loan losses- covered loans			-			-			55,665			-			55,665
Net interest (expense) income
	after provision for loan losses		(31,285)			(16,115)			512,555			(6,295)			458,860
Service charges on deposit accounts			-			-			92,719			-			92,719
Other service fees			-			-			135,186			(7,120)			128,066
Net loss on sale and valuation adjustments of
	investment securities		-			-			(349)			-			(349)
Trading account loss			-			-			(9,426)			-			(9,426)
Net gain on sale of loans, including valuation
	adjustments on loans held-for-sale		-			-			74			-			74
Adjustments (expense) to indemnity reserves
	on loans sold		-			-			(9,273)			-			(9,273)
FDIC loss share expense			-			-			(12,680)			-			(12,680)
Other operating income			4,437			1,529			48,810			(26,275)			28,501
	Total non-interest income		4,437			1,529			245,061			(33,395)			217,632
Operating Expenses:
Personnel costs			15,353			-			222,474			-			237,827
Net occupancy expenses			1,733			2			45,792			1,598			49,125
Equipment expenses			1,781			-			20,460			-			22,241
Other taxes			1,428			-			24,084			-			25,512
Professional fees			4,872			6			130,992			(35,638)			100,232
Communications			226			-			13,550			-			13,776
Business promotion			901			-			28,929			-			29,830
FDIC deposit insurance			-			-			47,833			-			47,833
Loss on early extinguishment of debt			-			-			25,141			-			25,141
Other real estate owned (OREO) expenses			-			-			16,545			-			16,545
Other operating expenses			(24,670)			221			76,304			(995)			50,860
Amortization of intangibles			-			-			5,124			-			5,124
	Total operating expenses		1,624			229			657,228			(35,035)			624,046
(Loss) income before income tax
	and equity in earnings of subsidiaries		(28,472)			(14,815)			100,388			(4,655)			52,446
Income tax benefit			(1,257)			-			(60,498)			54			(61,701)
(Loss) income before equity in
	earnings of subsidiaries		(27,215)			(14,815)			160,886			(4,709)			114,147
Equity in undistributed earnings of
	subsidiaries		141,362			13,214			-			(154,576)			-
Net Income (Loss)		$	114,147		$	(1,601)		$	160,886		$	(159,285)		$	114,147
Comprehensive income (loss), net of tax		$	100,112		$	(3,473)		$	145,893		$	(142,420)		$	100,112

Condensed Statement of Operations (Unaudited)
				Quarter ended June 30, 2011
								All other
		Popular, Inc.			PNA			subsidiaries and			Elimination			Popular, Inc.
(In thousands)		Holding Co.			Holding Co.			eliminations			entries			Consolidated
Interest income:
	Loans		$	2,038		$	-		$	441,928		$	($1,506)		$	442,460
	Money market investments			5			2			954			(35)			926
	Investment securities			4,031			80			52,832			(3,220)			53,723
	Trading account securities			-			-			9,790			-			9,790
	Total interest income			6,074			82			505,504			(4,761)			506,899
Interest expense:
	Deposits			-			-			70,728			(56)			70,672
	Short-term borrowings			28			242			14,554			(1,105)			13,719
	Long-term debt			22,784			7,687			20,406			(2,911)			47,966
	Total interest expense			22,812			7,929			105,688			(4,072)			132,357
Net interest (expense) income				(16,738)			(7,847)			399,816			(689)			374,542
Provision for loan losses- non-covered loans				-			-			95,712			-			95,712
Provision for loan losses- covered loans				-			-			48,605			-			48,605
Net interest (expense) income
	after provision for loan losses			(16,738)			(7,847)			255,499			(689)			230,225
Service charges on deposit accounts				-			-			46,802			-			46,802
Other service fees				-			-			62,993			(4,686)			58,307
Net loss on sale and valuation adjustments of				-			-			(90)			-			(90)
	investment securities
Trading account profit				-			-			874			-			874
Net loss on sale of loans, including valuation
	adjustments on loans held-for-sale			-			-			(12,782)			-			(12,782)
Adjustments (expense) to indemnity reserves
	on loans sold			-			-			(9,454)			-			(9,454)
FDIC loss share income				-			-			38,670			-			38,670
Fair value change in equity appreciation instrument				-			-			578			-			578
Other operating income (loss)				2,169			(308)			12,116			(12,722)			1,255
	Total non-interest income (loss)			2,169			(308)			139,707			(17,408)			124,160
Operating expenses:
Personnel costs				7,006			-			103,953			-			110,959
Net occupancy expenses				898			-			24,178			881			25,957
Equipment expenses				808			-			9,953			-			10,761
Other taxes				332			-			14,291			-			14,623
Professional fees				3,846			4			63,870			(18,241)			49,479
Communications				112			4			7,072			-			7,188
Business promotion				385			-			10,947			-			11,332
FDIC deposit insurance				-			-			27,682			-			27,682
Loss on early extinguishment of debt				-			-			289			-			289
Other real estate owned (OREO) expenses				-			-			6,440						6,440
Other operating expenses				(14,036)			111			29,356			(596)			14,835
Amortization of intangibles				-			-			2,255			-			2,255
	Total operating expenses			(649)			119			300,286			(17,956)			281,800
(Loss) income before income tax
	and equity in earnings (losses) of subsidiaries			(13,920)			(8,274)			94,920			(141)			72,585
Income tax expense (benefit)				1,111			-			(39,208)			(3)			(38,100)
(Loss) income before equity in
	earnings (losses) of subsidiaries			(15,031)			(8,274)			134,128			(138)			110,685
Equity in undistributed earnings (losses)
	of subsidiaries			125,716			(955)			-			(124,761)			-
Net income (loss)			$	110,685		$	(9,229)		$	134,128		$	(124,899)		$	110,685
Comprehensive income, net of tax			$	158,458		$	11,380		$	181,901		$	(193,281)		$	158,458

Condensed Consolidating Statement of Operations
			Six months ended June 30, 2011
							All other
		Popular, Inc.		PNA			subsidiaries and			Elimination			Popular, Inc.
(In thousands)		Holding Co.		Holding Co.			eliminations			entries			Consolidated
Interest and Dividend Income:
	Loans	$	5,058		$	-		$	864,654		$	(3,877)		$	865,835
	Money market investments		5			3			1,923			(58)			1,873
	Investment securities		8,161			161			104,218			(6,442)			106,098
	Trading account securities		-			-			18,544			-			18,544
	Total interest and dividend income		13,224			164			989,339			(10,377)			992,350
Interest Expense:
	Deposits		-			-			147,752			(201)			147,551
	Short-term borrowings		50			556			30,110			(2,982)			27,734
	Long-term debt		48,332			15,287			41,368			(5,823)			99,164
	Total interest expense		48,382			15,843			219,230			(9,006)			274,449
Net interest (expense) income			(35,158)			(15,679)			770,109			(1,371)			717,901
Provision for loan losses- non-covered loans			-			-			155,474			-			155,474
Provision for loan losses- covered loans			-			-			64,162			-			64,162
Net interest (expense) income
	after provision for loan losses		(35,158)			(15,679)			550,473			(1,371)			498,265
Service charges on deposit accounts			-			-			92,432			-			92,432
Other service fees			-			-			125,033			(8,074)			116,959
Net loss on sale and valuation adjustments of
	investment securities		-			-			(90)			-			(90)
Trading account profit			-			-			375			-			375
Net loss on sale of loans, including valuation
	adjustments on loans held-for-sale		-			-			(5,538)			-			(5,538)
Adjustments (expense) to indemnity reserves
	on loans sold		-			-			(19,302)			-			(19,302)
FDIC loss share income			-			-			54,705			-			54,705
Fair value change in equity appreciation instrument			-			-			8,323			-			8,323
Other operating income			20,354			1,388			44,935			(26,013)			40,664
	Total non-interest income		20,354			1,388			300,873			(34,087)			288,528
Operating Expenses:
Personnel costs			13,862			-			203,237			-			217,099
Net occupancy expenses			1,704			1			47,072			1,766			50,543
Equipment expenses			1,580			-			21,217			-			22,797
Other taxes			662			-			25,933			-			26,595
Professional fees			6,672			6			126,319			(36,830)			96,167
Communications			234			9			14,155			-			14,398
Business promotion			808			-			20,384			-			21,192
FDIC deposit insurance			-			-			45,355			-			45,355
Loss on early extinguishment of debt			8,000			-			528			-			8,528
Other real estate owned (OREO) expenses			-			-			8,651			-			8,651
Other operating expenses			(25,517)			221			67,407			(1,097)			41,014
Amortization of intangibles			-			-			4,510			-			4,510
	Total operating expenses		8,005			237			584,768			(36,161)			556,849
(Loss) income before income tax
	and equity in earnings of subsidiaries		(22,809)			(14,528)			266,578			703			229,944
Income tax expense (benefit)			3,137			(264)			105,953			301			109,127
(Loss) income before equity in
	earnings of subsidiaries		(25,946)			(14,264)			160,625			402			120,817
Equity in undistributed earnings of subsidiaries			$146,763			$20,444			-			(167,207)			-
Net Income		$	120,817		$	6,180		$	160,625		$	(166,805)		$	120,817
Comprehensive income, net of tax		$	161,549		$	24,012		$	199,572		$	(223,584)		$	161,549

Condensed Consolidating Statement Of Cash Flows [Text Block]

						Six months ended June 30, 2012
										All other
						Popular, Inc.		PNA		subsidiaries		Elimination		Popular, Inc.
(In thousands)						Holding Co.		Holding Co.		and eliminations		entries		Consolidated
Cash flows from operating activities:
Net income (loss)					$	114,147	$	(1,601)	$	160,886	$	(159,285)	$	114,147
Adjustments to reconcile net income (loss) to net
	cash provided by (used in) operating activities:
	Equity in undistributed earnings of subsidiaries					(141,362)		(13,214)		-		154,576		-
	Provision for loan losses					349		-		219,573		-		219,922
	Amortization of intangibles					-		-		5,124		-		5,124
	Depreciation and amortization of premises and
		equipment				321		2		22,959		-		23,282
	Net accretion of discounts and amortization
		of premiums and deferred fees				14,124		56		(29,532)		(325)		(15,677)
	Fair value adjustments on mortgage servicing rights					-		-		4,791		-		4,791
	FDIC loss share expense					-		-		12,680		-		12,680
	FDIC deposit insurance expense					-		-		47,833		-		47,833
	Adjustments (expense) to indemnity reserves on
		loans sold				-		-		9,273		-		9,273
	(Earnings) losses from investments under the
		equity method				(2,975)		(1,528)		(17,554)		26,274		4,217
	Deferred income tax benefit					(14,479)		-		(140,262)		55		(154,686)
	Loss (gain) on:
			Disposition of premises and equipment			(1)		-		(6,863)		-		(6,864)
			Early extinguishment of debt			-		-		24,950		-		24,950
			Sale and valuation adjustments of investment
				securities		-		-		349		-		349
			Sale of loans, including valuation adjustments
				on loans held for sale		-		-		(74)		-		(74)
			Sale of other assets			-		-		(2,545)		-		(2,545)
	Acquisitions of loans held-for-sale					-		-		(174,632)		-		(174,632)
	Proceeds from sale of loans held-for-sale					-		-		145,588		-		145,588
	Net disbursements on loans held-for-sale					-		-		(542,282)		-		(542,282)
	Net (increase) decrease in:
			Trading securities			-		-		543,077		-		543,077
			Accrued income receivable			323		-		2,746		(180)		2,889
			Other assets			132,782		881		(80,179)		(42,931)		10,553
	Net increase (decrease) in:
			Interest payable			-		(46)		(4,496)		43		(4,499)
			Pension and other postretirement benefits
				obligations		-		-		16,165		-		16,165
			Other liabilities			(769)		(15)		11,082		1,066		11,364
Total adjustments						(11,687)		(13,864)		67,771		138,578		180,798
Net cash provided by (used in) operating activities						102,460		(15,465)		228,657		(20,707)		294,945
Cash flows from investing activities:
	Net decrease (increase) in money market investments					24,024		(4,339)		426,382		(19,721)		426,346
	Purchases of investment securities:
			Available-for-sale			-		-		(890,777)		-		(890,777)
			Held-to-maturity			-		-		(250)		-		(250)
			Other			-		-		(76,033)		-		(76,033)
	Proceeds from calls, paydowns, maturities and
		redemptions of investment securities:
			Available-for-sale			-		-		780,832		-		780,832
			Held-to-maturity			-		-		1,548		-		1,548
			Other			-		-		81,626		-		81,626
	Net (disbursements) repayments on loans					(74,853)		-		539,407		74,623		539,177
	Proceeds from sale of loans					-		-		41,476		-		41,476
	Acquisition of loan portfolios					-		-		(705,819)		-		(705,819)
	Payments received from FDIC under loss
		sharing agreements				-		-		262,807		-		262,807
	Capital contribution to subsidiary					(50,000)		-		-		50,000		-
	Mortgage servicing rights purchased					-		-		(1,018)		-		(1,018)
	Acquisition of premises and equipment					(366)		-		(21,561)		-		(21,927)
	Proceeds from sale of:
			Premises and equipment			20		-		15,590		-		15,610
			Other productive assets			-		-		1,026		-		1,026
			Foreclosed assets			-		-		93,480		-		93,480
Net cash (used in) provided by investing activities						(101,175)		(4,339)		548,716		104,902		548,104
Cash flows from financing activities:
	Net increase (decrease) in:
			Deposits			-		-		(536,764)		8,256		(528,508)
			Federal funds purchased and assets sold under
				agreements to repurchase		-		-		(387,414)		24,060		(363,354)
			Other short-term borrowings			-		(30,500)		125,300		(74,800)		20,000
	Payments of notes payable					-		-		(22,552)		-		(22,552)
	Proceeds from issuance of notes payable					-		-		29,802		-		29,802
	Proceeds from issuance of common stock					3,320		-		-		-		3,320
	Dividends paid to parent company					-		-		(5,000)		5,000		-
	Dividends paid					(1,551)		-		-		-		(1,551)
	Treasury stock acquired					(150)		-		-		-		(150)
	Capital contribution from parent					-		50,000		-		(50,000)		-
Net cash provided by (used in) financing activities						1,619		19,500		(796,628)		(87,484)		(862,993)
Net increase (decrease) in cash and due from banks						2,904		(304)		(19,255)		(3,289)		(19,944)
Cash and due from banks at beginning of period						6,365		932		534,796		(6,811)		535,282
Cash and due from banks at end of period					$	9,269	$	628	$	515,541	$	(10,100)	$	515,338

						Six months ended June 30, 2011
										All other
						Popular, Inc.		PNA		subsidiaries		Elimination		Popular, Inc.
(In thousands)						Holding Co.		Holding Co.		and eliminations		entries		Consolidated
Cash flows from operating activities:
Net income					$	120,817	$	6,180	$	160,625	$	(166,805)	$	120,817
Adjustments to reconcile net income to net cash
	(used in) provided by operating activities:
	Equity in undistributed (earnings) losses of subsidiaries					(146,763)		(20,444)		-		167,207		-
	Provision for loan losses					-		-		219,636		-		219,636
	Amortization of intangibles					-		-		4,510		-		4,510
	Depreciation and amortization of premises and
		equipment				395		2		23,053		-		23,450
	Net accretion of discounts and amortization
		of premiums and deferred fees				12,015		122		(76,310)		(325)		(64,498)
	Impairment losses on net assets to be disposed of					-		-		8,743		-		8,743
	Fair value adjustments on mortgage servicing rights					-		-		16,249		-		16,249
	Fair value change in equity appreciation instrument					-		-		(8,323)		-		(8,323)
	FDIC loss share income					-		-		(54,705)		-		(54,705)
	FDIC deposit insurance expense					-		-		45,355		-		45,355
	Adjustments (expense) to indemnity reserves on
		loans sold				-		-		19,302		-		19,302
	(Earnings) losses from investments under the equity
		method				(12,619)		(1,388)		(11,788)		26,013		218
	Deferred income tax expense					4,198		-		17,256		301		21,755
	Loss (gain) on:
			Disposition of premises and equipment			(1)		-		(1,991)		-		(1,992)
			Sale and valuation adjustments of investment
				securities		-		-		90		-		90
			Sale of loans, including valuation adjustments
				on loans held for sale		-		-		5,538		-		5,538
			Sale of equity method investments			(5,493)		-		(11,414)		-		(16,907)
	Acquisitions of loans held-for-sale					-		-		(173,549)		-		(173,549)
	Proceeds from sale of loans held-for-sale					-		-		65,667		-		65,667
	Net disbursements on loans held-for-sale					-		-		(417,220)		-		(417,220)
	Net (increase) decrease in:
			Trading securities			-		-		319,024		-		319,024
			Accrued income receivable			252		-		8,465		(41)		8,676
			Other assets			(2,003)		1,201		(2,431)		(29,426)		(32,659)
	Net increase (decrease) in:
			Interest payable			(3,467)		459		1,999		60		(949)
			Pension and other postretirement benefits
				obligations		-		-		(123,084)		-		(123,084)
			Other liabilities			(54,790)		(2,335)		(10,685)		2,427		(65,383)
Total adjustments						(208,276)		(22,383)		(136,613)		166,216		(201,056)
Net cash (used in) provided by operating activities						(87,459)		(16,203)		24,012		(589)		(80,239)
Cash flows from investing activities:
	Net increase in money market investments					(62)		(1)		(404,536)		1		(404,598)
	Purchases of investment securities:
			Available-for-sale			-		-		(856,543)		-		(856,543)
			Held-to-maturity			(37,093)		-		(27,265)		-		(64,358)
			Other			-		-		(69,504)		-		(69,504)
	Proceeds from calls, paydowns, maturities and
		redemptions of investment securities:
			Available-for-sale			-		-		707,567		-		707,567
			Held-to-maturity			50,613		-		1,460		-		52,073
			Other			-		-		56,162		-		56,162
	Proceeds from sale of investment securities:
			Available for sale			-		-		19,143		-		19,143
			Other			-		-		2,294		-		2,294
	Net repayments on loans					184,638		-		775,381		(180,413)		779,606
	Proceeds from sale of loans					-		-		225,698		-		225,698
	Acquisition of loan portfolios					-		-		(744,390)		-		(744,390)
	Payments received from FDIC under loss
		sharing agreements				-		-		15,694		-		15,694
	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					-		-		(860)		-		(860)
	Acquisition of premises and equipment					(316)		-		(25,232)		-		(25,548)
	Proceeds from sale of:
			Premises and equipment			11		-		9,836		-		9,847
			Foreclosed assets			-		-		94,759		-		94,759
Net cash provided by (used in) investing activities						187,101		(1)		(215,143)		(143,412)		(171,455)
Cash flows from financing activities:
	Net increase (decrease) in:
			Deposits			-		-		1,197,947		305		1,198,252
			Federal funds purchased and assets sold under
				agreements to repurchase		-		-		157,772		-		157,772
			Other short-term borrowings			-		(19,100)		(371,820)		178,000		(212,920)
	Payments of notes payable					(100,000)		(3,000)		(1,074,306)		-		(1,177,306)
	Proceeds from issuance of notes payable					-		-		419,500		-		419,500
	Proceeds from issuance of common stock					3,917		-		-		-		3,917
	Dividends paid					(1,861)		-		-		-		(1,861)
	Treasury stock acquired					(68)		-		-		-		(68)
	Return of capital					1,514		-		(1,514)		-		-
	Capital contribution from parent					-		37,000		-		(37,000)		-
Net cash (used in) provided by financing activities						(96,498)		14,900		327,579		141,305		387,286
Net increase (decrease) in cash and due from banks						3,144		(1,304)		136,448		(2,696)		135,592
Cash and due from banks at beginning of period						1,638		1,576		451,723		(2,564)		452,373
Cash and due from banks at end of period					$	4,782	$	272	$	588,171	$	(5,260)	$	587,965