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Condensed consolidating financial information of guarantor and issuers of registered guaranteed securities
 9 Months Ended
Sep. 30, 2012
Notes to Financial Statements [Abstract]  
Schedule Condensed Financial Statements [Text Block]

Note 33 – 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 North America, Inc. (“PNA”) and all other subsidiaries of the Corporation at September 30, 2012 and December 31, 2011, and the results of their operations and cash flows for periods ended September 30, 2012 and 2011.

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 BPNA's 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.

Popular International Bank, Inc. (“PIBI”) is a 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. Since the internal reorganization, PIBI is no longer a bank holding company and is no longer a potential issuer of the Corporation's debt securities. PIBI has no outstanding registered debt securities that would also be guaranteed by PIHC.

A potential source of income for PIHC consists of dividends from BPPR and BPNA. Under existing federal banking regulations any dividend from BPPR or BPNA to the PIHC could be made if the total of all dividends declared by each entity during the calendar year would not 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, 2012, BPPR could have declared a dividend of approximately $371 million (December 31, 2011 - $243 million). 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 payments of any dividends by BPPR to PIHC. Prior approval of the Federal Reserve Bank of New York is also necessary for the payments of any dividends by BPNA to PIHC.

 

 

Condensed Consolidating Statement of Financial Condition         
                
 At September 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 $ 4,177$ 626 $ 477,537 $ (4,998) $ 477,342
Money market investments   18,337  640   907,326   (640)   925,663
Trading account securities, at fair value   -  -   226,918   -   226,918
Investment securities available-for-sale, at               
 fair value   41,193  -   5,096,076   (16,968)   5,120,301
Investment securities held-to-maturity, at               
 amortized cost   185,000  -   122,072   (185,000)   122,072
Other investment securities, at lower of cost              
 or realizable value   10,850  4,492   198,047   -   213,389
Investment in subsidiaries   4,209,097  1,643,820   -   (5,852,917)   -
Loans held-for-sale, at lower of cost or               
 fair value   -  -   337,049   -   337,049
Loans held-in-portfolio:              
 Loans not covered under loss sharing               
  agreements with the FDIC   320,572  -   20,821,269   (290,733)   20,851,108
 Loans covered under loss sharing               
  agreements with the FDIC   -  -   3,903,867   -   3,903,867
 Less - Unearned income   -  -   97,255   -   97,255
  Allowance for loan losses   190  -   760,982   -   761,172
 Total loans held-in-portfolio, net   320,382  -   23,866,899   (290,733)   23,896,548
FDIC loss share asset   -  -   1,559,057   -   1,559,057
Premises and equipment, net   2,661  116   522,956   -   525,733
Other real estate not covered under loss               
 sharing agreements with the FDIC   -  -   252,024   -   252,024
Other real estate covered under loss               
 sharing agreements with the FDIC   -  -   125,514   -   125,514
Accrued income receivable   2,680  31   131,588   (356)   133,943
Mortgage servicing assets, at fair value   -  -   158,367   -   158,367
Other assets   102,847  12,553   1,633,355   (23,828)   1,724,927
Goodwill   -  -   647,757   -   647,757
Other intangible assets   553  -   56,209   -   56,762
Total assets $ 4,897,777$ 1,662,278 $ 36,318,751 $ (6,375,440) $ 36,503,366
Liabilities and Stockholders' Equity           
Liabilities:               
Deposits:               
 Non-interest bearing $ -$ - $$5,409,909 $($5,439) $ 5,404,470
 Interest bearing   -  -   20,936,879   (21,850)   20,915,029
  Total deposits   -  -   26,346,788   (27,289)   26,319,499
Assets sold under agreements to repurchase   -  -   1,944,564   -   1,944,564
Other short-term borrowings   -  1,000   1,470,000   (264,800)   1,206,200
Notes payable   782,474  427,381   656,522   -   1,866,377
Subordinated notes   -  -   185,000   (185,000)   -
Other liabilities   46,319  44,777   1,052,530   (45,884)   1,097,742
Total liabilities   828,793  473,158   31,655,404   (522,973)   32,434,382
Stockholders' equity:               
Preferred stock   50,160  -   -   -   50,160
Common stock   1,031  2   55,628   (55,630)   1,031
Surplus   4,123,154  4,153,208   8,799,459   (12,944,140)   4,131,681
Accumulated deficit   (45,656)  (3,019,127)   (4,129,950)   7,140,550   (54,183)
Treasury stock, at cost   (270)  -   -   -   (270)
Accumulated other comprehensive (loss)              
 income, net of tax   (59,435)  55,037   (61,790)   6,753   (59,435)
Total stockholders' equity   4,068,984  1,189,120   4,663,347   (5,852,467)   4,068,984
Total liabilities and stockholders' equity $ 4,897,777$ 1,662,278 $ 36,318,751 $ (6,375,440) $ 36,503,366

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 Statement of Operations (Unaudited)            
                 
    Quarter ended September 30, 2012
        All other       
   Popular, Inc.PNAsubsidiaries andEliminationPopular, Inc.
(In thousands) Holding Co.Holding Co.eliminationsentriesConsolidated
Interest income:                
 Loans $ 1,759 $ - $ 386,922 $ (1,300) $ 387,381
 Money market investments   -   3   862   (3)   862
 Investment securities   4,052   81   39,028   (3,216)   39,945
 Trading account securities   -   -   5,815   -   5,815
  Total interest income   5,811   84   432,627   (4,519)   434,003
Interest expense:               
 Deposits   -   -   43,025   (25)   43,000
 Short-term borrowings   -   2   10,761   (887)   9,876
 Long-term debt   24,118   8,067   8,427   (2,911)   37,701
  Total interest expense   24,118   8,069   62,213   (3,823)   90,577
Net interest (expense) income    (18,307)   (7,985)   370,414   (696)   343,426
Provision for loan losses- non-covered loans   (82)   -   83,671   -   83,589
Provision for loan losses- covered loans   -   -   22,619   -   22,619
Net interest (expense) income                
 after provision for loan losses   (18,225)   (7,985)   264,124   (696)   237,218
Service charges on deposit accounts   -   -   45,858   -   45,858
Other service fees   -   -   68,385   (3,601)   64,784
Net gain on sale and valuation adjustments of                
 investment securities   -   -   64   -   64
Trading account loss   -   -   (2,266)   -   (2,266)
Net gain on sale of loans, including valuation                
 adjustments on loans held-for-sale   -   -   18,495   -   18,495
Adjustments (expense) to indemnity reserves                
 on loans sold   -   -   (8,717)   -   (8,717)
FDIC loss share expense   -   -   (6,707)   -   (6,707)
Other operating income (loss)   103   (1,149)   18,036   (12,792)   4,198
  Total non-interest income (loss)   103   (1,149)   133,148   (16,393)   115,709
Operating expenses:               
Personnel costs   6,675   -   104,875   -   111,550
Net occupancy expenses   844   -   22,772   793   24,409
Equipment expenses   1,021   -   10,426   -   11,447
Other taxes   368   -   12,298   -   12,666
Professional fees   3,647   3   67,875   (18,113)   53,412
Communications   114   -   6,386   -   6,500
Business promotion   425   -   14,499   -   14,924
FDIC deposit insurance   -   -   24,173   -   24,173
Loss on early extinguishment of debt   -   -   43   -   43
Other real estate owned (OREO) expenses    -   -   5,896   -   5,896
Other operating expenses   (12,468)   110   35,755   (543)   22,854
Amortization of intangibles   -   -   2,481   -   2,481
  Total operating expenses   626   113   307,479   (17,863)   290,355
(Loss) income before income tax                
 and equity in earnings of subsidiaries   (18,748)   (9,247)   89,793   774   62,572
Income tax expense   72   -   15,103   209   15,384
(Loss) income before equity in                
 earnings of subsidiaries   (18,820)   (9,247)   74,690   565   47,188
Equity in undistributed earnings of               
 subsidiaries   66,008   5,203   -   (71,211)   -
Net Income (Loss) $ 47,188 $ (4,044) $ 74,690 $ (70,646) $ 47,188
Comprehensive income (loss), net of tax $ 44,336 $ (4,082) $ 71,037 $ (66,955) $ 44,336

Condensed Consolidating Statement of Operations             
                 
    Nine months ended September 30, 2012
        All other      
   Popular, Inc.PNAsubsidiaries andEliminationPopular, Inc.
(In thousands) Holding Co.Holding Co.eliminationsentriesConsolidated
Interest and Dividend Income:                
 Dividend income from subsidiaries $ 5,000 $ - $ - $ (5,000) $ -
 Loans   4,966   -   1,163,409  ($3,710)   1,164,665
 Money market investments   13   25   2,773   (37)   2,774
 Investment securities   12,240   242   125,978   (9,632)   128,828
 Trading account securities   -   -   17,669   -   17,669
  Total interest and dividend income   22,219   267   1,309,829   (18,379)   1,313,936
Interest Expense:               
 Deposits   -   -   143,321   (128)   143,193
 Short-term borrowings   -   144   38,883   (2,524)   36,503
 Long-term debt   71,462   24,223   25,083   (8,736)   112,032
  Total interest expense   71,462   24,367   207,287   (11,388)   291,728
Net interest (expense) income    (49,243)   (24,100)   1,102,542   (6,991)   1,022,208
Provision for loan losses- non-covered loans   267   -   247,579   -   247,846
Provision for loan losses- covered loans   -   -   78,284   -   78,284
Net interest (expense) income                
 after provision for loan losses   (49,510)   (24,100)   776,679   (6,991)   696,078
Service charges on deposit accounts   -   -   138,577   -   138,577
Other service fees   -   -   203,571   (10,721)   192,850
Net loss on sale and valuation adjustments of                
 investment securities   -   -   (285)   -   (285)
Trading account loss   -   -   (11,692)   -   (11,692)
Net gain on sale of loans, including valuation                
 adjustments on loans held-for-sale   -   -   18,569   -   18,569
Adjustments (expense) to indemnity reserves                
 on loans sold   -   -   (17,990)   -   (17,990)
FDIC loss share expense   -   -   (19,387)   -   (19,387)
Other operating income   4,540   380   66,846   (39,067)   32,699
  Total non-interest income   4,540   380   378,209   (49,788)   333,341
Operating Expenses:               
Personnel costs   22,028   -   327,349   -   349,377
Net occupancy expenses   2,577   2   68,564   2,391   73,534
Equipment expenses   2,802   -   30,886   -   33,688
Other taxes   1,796   -   36,382   -   38,178
Professional fees   8,519   9   198,867   (53,751)   153,644
Communications   340   -   19,936   -   20,276
Business promotion   1,326   -   43,428   -   44,754
FDIC deposit insurance   -   -   72,006   -   72,006
Loss on early extinguishment of debt   -   -   25,184   -   25,184
Other real estate owned (OREO) expenses    -   -   22,441   -   22,441
Other operating expenses   (37,138)   331   112,059   (1,538)   73,714
Amortization of intangibles   -   -   7,605   -   7,605
  Total operating expenses   2,250   342   964,707   (52,898)   914,401
(Loss) income before income tax                
 and equity in earnings of subsidiaries   (47,220)   (24,062)   190,181   (3,881)   115,018
Income tax benefit   (1,185)   -   (45,395)   263   (46,317)
(Loss) income before equity in                
 earnings of subsidiaries   (46,035)   (24,062)   235,576   (4,144)   161,335
Equity in undistributed earnings of                
 subsidiaries   207,370   18,417   -   (225,787)   -
Net Income (Loss) $ 161,335 $ (5,645) $ 235,576 $ (229,931) $ 161,335
Comprehensive income (loss), net of tax $ 144,448 $ (7,555) $ 216,930 $ (209,375) $ 144,448

Condensed Statement of Operations (Unaudited)            
                 
    Quarter ended September 30, 2011
        All other       
  Popular, Inc.PNAsubsidiaries andEliminationPopular, Inc.
(In thousands)Holding Co.Holding Co.eliminationsentriesConsolidated
Interest income:               
 Loans $ 1,915 $ - $ 428,469 $($1,385) $ 428,999
 Money market investments   -   1   886   (1)   886
 Investment securities   4,031   81   50,194   (3,221)   51,085
 Trading account securities   -   -   10,788   -   10,788
  Total interest income   5,946   82   490,337   (4,607)   491,758
Interest expense:               
 Deposits   -   -   65,935   (67)   65,868
 Short-term borrowings   -   138   14,575   (969)   13,744
 Long-term debt   22,983   8,054   14,711   (2,913)   42,835
  Total interest expense   22,983   8,192   95,221   (3,949)   122,447
Net interest (expense) income   (17,037)   (8,110)   395,116   (658)   369,311
Provision for loan losses- non-covered loans   -   -   150,703   -   150,703
Provision for loan losses- covered loans   -   -   25,573   -   25,573
Net interest (expense) income               
 after provision for loan losses   (17,037)   (8,110)   218,840   (658)   193,035
Service charges on deposit accounts   -   -   46,346   -   46,346
Other service fees   -   -   66,306   (3,642)   62,664
Net gain on sale and valuation adjustments of    -   -   8,134   -   8,134
 investment securities          
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)   (306)   12,104   (12,289)   (2,314)
  Total non-interest (loss) income    (1,823)   (306)   140,450   (15,931)   122,390
Operating expenses:               
Personnel costs   8,280   -   103,444   -   111,724
Net occupancy expenses   802   1   24,227   855   25,885
Equipment expenses   831   -   9,686   -   10,517
Other taxes   803   -   11,588   -   12,391
Professional fees   2,658   3   63,894   (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)   111   35,771   (608)   22,541
Amortization of intangibles   -   -   2,463   -   2,463
  Total operating expenses   1,146   116   298,645   (17,552)   282,355
(Loss) income before income tax                
 and equity in earnings of subsidiaries   (20,006)   (8,532)   60,645   963   33,070
Income tax (benefit) expense    (642)   (23)   5,878   324   5,537
(Loss) income before equity in                
 earnings of subsidiaries   (19,364)   (8,509)   54,767   639   27,533
Equity in undistributed earnings               
 of subsidiaries   46,897   5,424   -   (52,321)   -
Net Income (Loss) $ 27,533 $ (3,085) $ 54,767 $ (51,682) $ 27,533
Comprehensive income, net of tax $ 48,337 $ 13,487 $ 76,389 $ (89,876) $ 48,337

Condensed Consolidating Statement of Operations             
                 
    Nine months ended September 30, 2011
        All other      
   Popular, Inc.PNAsubsidiaries andEliminationPopular, Inc.
(In thousands) Holding Co.Holding Co.eliminationsentriesConsolidated
Interest Income:                
 Loans $ 6,973 $ - $ 1,293,123 $ (5,262) $ 1,294,834
 Money market investments   5   4   2,809   (59)   2,759
 Investment securities   12,192   242   154,412   (9,663)   157,183
 Trading account securities   -   -   29,332   -   29,332
  Total interest income   19,170   246   1,479,676   (14,984)   1,484,108
Interest Expense:               
 Deposits   -   -   213,687   (268)   213,419
 Short-term borrowings   50   694   44,685   (3,951)   41,478
 Long-term debt   71,315   23,341   56,079   (8,736)   141,999
  Total interest expense   71,365   24,035   314,451   (12,955)   396,896
Net interest (expense) income   (52,195)   (23,789)   1,165,225   (2,029)   1,087,212
Provision for loan losses- non-covered loans   -   -   306,177   -   306,177
Provision for loan losses- covered loans   -   -   89,735   -   89,735
Net interest (expense) income               
 after provision for loan losses   (52,195)   (23,789)   769,313   (2,029)   691,300
Service charges on deposit accounts   -   -   138,778   -   138,778
Other service fees   -   -   191,339   (11,716)   179,623
Net gain on sale and valuation adjustments of                
 investment securities   -   -   8,044   -   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   1,082   57,039   (38,302)   38,350
  Total non-interest income   18,531   1,082   441,323   (50,018)   410,918
Operating Expenses:               
Personnel costs   22,142   -   306,681   -   328,823
Net occupancy expenses   2,506   2   71,299   2,621   76,428
Equipment expenses   2,411   -   30,903   -   33,314
Other taxes   1,465   -   37,521   -   38,986
Professional fees   9,330   9   190,213   (54,629)   144,923
Communications   309   10   20,879   -   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)   332   103,178   (1,705)   63,555
Amortization of intangibles   -   -   6,973   -   6,973
  Total operating expenses   9,151   353   883,413   (53,713)   839,204
(Loss) income before income tax                
 and equity in earnings of subsidiaries   (42,815)   (23,060)   327,223   1,666   263,014
Income tax expense (benefit)   2,495   (287)   111,831   625   114,664
(Loss) income before equity in                
 earnings of subsidiaries   (45,310)   (22,773)   215,392   1,041   148,350
Equity in undistributed earnings of subsidiaries   193,660   25,868   -   (219,528)   -
Net Income $ 148,350 $ 3,095 $ 215,392 $ (218,487) $ 148,350
Comprehensive income, net of tax $ 209,886 $ 37,499 $ 275,961 $ (313,460) $ 209,886

Condensed Consolidating Statement of Cash Flows (Unaudited)

 

      Nine months ended September 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)$ 161,335$ (5,645)$ 235,576$ (229,931)$ 161,335
               
Adjustments to reconcile net income (loss) to net           
 cash provided by (used in) operating activities:          
 Equity in undistributed earnings of subsidiaries  (207,370)  (18,417)  -  225,787  -
 Provision for loan losses   267  -  325,863  -  326,130
 Amortization of intangibles  -  -  7,605  -  7,605
 Depreciation and amortization of premises and          
  equipment  484  2  34,467  -  34,953
 Net accretion of discounts and amortization          
  of premiums and deferred fees   21,624  84  (43,339)  (487)  (22,118)
 Fair value adjustments on mortgage servicing rights  -  -  7,217  -  7,217
 FDIC loss share expense  -  -  19,387  -  19,387
 Amortization of prepaid FDIC assessment  -  -  30,157  -  30,157
 Adjustments (expense) to indemnity reserves on           
  loans sold  -  -  17,990  -  17,990
 (Earnings) losses from investments under the           
  equity method  (3,079)  (379)  (25,821)  39,067  9,788
 Deferred income tax benefit  (14,755)  -  (135,709)  263  (150,201)
 Loss (gain) on:          
   Disposition of premises and equipment  1  -  (8,254)  -  (8,253)
   Early extinguishment of debt  -  -  24,950  -  24,950
   Sale and valuation adjustments of investment          
    securities   -  -  285  -  285
   Sale of loans, including valuation adjustments           
    on loans held for sale  -  -  (18,569)  -  (18,569)
   Sale of other assets  -  -  (2,545)  -  (2,545)
 Acquisitions of loans held-for-sale  -  -  (288,844)  -  (288,844)
 Proceeds from sale of loans held-for-sale  -  -  242,088  -  242,088
 Net disbursements on loans held-for-sale  -  -  (860,804)  -  (860,804)
 Net (increase) decrease in:          
   Trading securities  -  -  849,304  -  849,304
   Accrued income receivable  (1,168)  81  (7,728)  80  (8,735)
   Other assets  134,437  1,049  (23,830)  (45,712)  65,944
 Net increase (decrease) in:          
   Interest payable  -  2,527  (10,114)  34  (7,553)
   Pension and other postretirement benefits           
    obligations  -  -  24,156  -  24,156
   Other liabilities  (1,347)  (20)  (47,787)  1,092  (48,062)
Total adjustments  (70,906)  (15,073)  110,125  220,124  244,270
Net cash provided by (used in) operating activities  90,429  (20,718)  345,701  (9,807)  405,605
               
Cash flows from investing activities:          
 Net decrease (increase) in money market investments   24,008  (88)  450,564  (23,973)  450,511
 Purchases of investment securities:          
   Available-for-sale  -  -  (1,284,834)  -  (1,284,834)
   Held-to-maturity  -  -  (250)  -  (250)
   Other  -  -  (152,607)  -  (152,607)
 Proceeds from calls, paydowns, maturities and          
  redemptions of investment securities:          
   Available-for-sale  -  -  1,166,618  -  1,166,618
   Held-to-maturity  -  -  4,398  -  4,398
   Other  -  -  119,098  -  119,098
 Proceeds from sale of investment securities:          
   Available for sale  -  -  8,031  -  8,031
 Net (disbursements) repayments on loans   (71,042)  -  687,866  70,758  687,582
 Proceeds from sale of loans  -  -  51,677  -  51,677
 Acquisition of loan portfolios   -  -  (1,051,588)  -  (1,051,588)
 Payments received from FDIC under loss           
  sharing agreements  -  -  327,739  -  327,739
 Capital contribution to subsidiary  (50,000)  -  -  50,000  -
 Mortgage servicing rights purchased  -  -  (1,620)  -  (1,620)
 Acquisition of premises and equipment  (637)  -  (33,699)  -  (34,336)
 Proceeds from sale of:          
   Premises and equipment  24  -  20,588  -  20,612
   Other productive assets  -  -  1,026  -  1,026
   Foreclosed assets  -  -  142,019  -  142,019
Net cash (used in) provided by investing activities  (97,647)  (88)  455,026  96,785  454,076
               
Cash flows from financing activities:          
 Net increase (decrease) in:          
   Deposits  -  -  (1,631,309)  6,675  (1,624,634)
   Federal funds purchased and assets sold under           
    agreements to repurchase  -  -  (220,593)  24,060  (196,533)
   Other short-term borrowings  -  (29,500)  1,010,400  (70,900)  910,000
 Payments of notes payable   -  -  (72,815)  -  (72,815)
 Proceeds from issuance of notes payable  -  -  61,331  -  61,331
 Proceeds from issuance of common stock  7,788  -  -  -  7,788
 Dividends paid to parent company  -  -  (5,000)  5,000  -
 Dividends paid  (2,482)  -  -  -  (2,482)
 Treasury stock acquired  (276)  -  -  -  (276)
 Capital contribution from parent  -  50,000  -  (50,000)  -
Net cash provided by (used in) financing activities  5,030  20,500  (857,986)  (85,165)  (917,621)
Net decrease in cash and due from banks  (2,188)  (306)  (57,259)  1,813  (57,940)
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$ 4,177$ 626$ 477,537$ (4,998)$ 477,342

Condensed Consolidating Statement of Cash Flows (Unaudited)

 

 

      Nine months ended September 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$ 148,350$ 3,095$ 215,392$ (218,487)$ 148,350
               
Adjustments to reconcile net income to net cash          
 (used in) provided by operating activities:          
 Equity in undistributed earnings of subsidiaries  (193,660)  (25,868)  -  219,528  -
 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 and 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 on 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)
 Amortization of prepaid FDIC assessment  -  -  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)  (1,082)  (14,699)  38,302  11,250
 Deferred income tax expense (benefit)  3,555  (264)  40,692  625  44,608
 Loss (gain) on:          
   Disposition of premises and equipment  7  -  (2,026)  -  (2,019)
   Sale and valuation adjustments of investment          
    securities   -  -  (8,044)  -  (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)  80  15,467  63  14,924
   Other assets  4,134  1,406  (1,089)  (30,027)  (25,576)
 Net increase (decrease) in:          
   Interest payable  (3,467)  3,048  (6,969)  44  (7,344)
   Pension and other postretirement benefits           
    obligations  -  -  (128,802)  -  (128,802)
   Other liabilities  (72,709)  (2,349)  (36,398)  2,301  (109,155)
Total adjustments  (260,611)  (24,878)  (50,143)  230,349  (105,283)
Net cash (used in) provided by operating activities  (112,261)  (21,783)  165,249  11,862  43,067
               
Cash flows from investing activities:          
 Net increase in money market investments   (5,921)  (22)  (283,923)  22  (289,844)
 Purchases of investment securities:          
   Available-for-sale  -  -  (1,198,613)  -  (1,198,613)
   Held-to-maturity  (37,093)  -  (28,265)  -  (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  -  4,004  -  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  -  1,008,880  (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  (22)  483,934  (170,730)  521,585
               
Cash flows from financing activities:          
 Net increase (decrease) in:          
   Deposits  -  -  1,201,464  (8,812)  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)  20,500  (533,570)  159,488  (449,884)
Net (decrease) increase in cash and due from banks  (160)  (1,305)  115,613  620  114,768
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$ 1,478$ 271$ 567,336$ (1,944)$ 567,141