Popular, Inc. (Holding company only) financial information

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Note 43 -Popular, Inc. (holding company only) financial information

The following condensed financial information presents the financial position of Popular, Inc. Holding Company only at December 31, 2012and 2011, and the results of its operations and cash flows for each of the three years in the period ended December 31, 2012.

Condensed Statements of Condition
		December 31,
(In thousands)		2012		2011
ASSETS
Cash and due from banks (includes $915 due from bank subsidiary (2011 - $6,172))	$	1,103	$	6,365
Money market investments (2011 - includes $24,061 due from bank subsidiary)		18,574		42,239
Trading account securities		1,259		-
Investment securities available-for-sale, at fair value (includes $38,675 in securities from affiliate
at fair value (2011 - $35,700))[1]		42,383		35,700
Investment securities held-to-maturity, at amortized cost (includes $185,000 in subordinated
notes from BPPR)		185,000		185,000
Other investment securities, at lower of cost or realizable value (includes $9,725 in common
securities from statutory trusts)[2]		10,850		10,850
Investment in BPPR and subsidiaries, at equity		2,809,521		2,626,951
Investment in Popular North America and subsidiaries, at equity		1,244,732		1,146,676
Investment in other non-bank subsidiaries, at equity		231,704		213,660
Advances to subsidiaries		230,300		193,900
Loans to affiliates[1]		53,589		53,214
Other loans		2,191		2,501
Less - Allowance for loan losses		241		8
Premises and equipment		2,495		2,533
Investment in equity method investees[1]		93,128		195,193
Other assets (includes $2,007 due from subsidiaries and affiliate (2011 - $3,237))[1]		21,876		24,750
Total assets	$	4,948,464	$	4,739,524
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable	$	$790,282	$	$760,849
Other liabilities (includes $1,558 due to subsidiaries and affiliate (2011 - $2,023))[1]		48,182		59,922
Stockholders’ equity		4,110,000		3,918,753
Total liabilities and stockholders’ equity	$	4,948,464	$	4,739,524
[1] Refer to Note 30 to the consolidated financial statements for the effect of eliminations on transactions with EVERTEC, Inc. (affiliate).
[2] Refer to Note 22 to the consolidated financial statements for information on the statutory trusts.

Condensed Statements of Operations
			Year ended December 31,
(In thousands)			2012		2011		2010
Income:
	Dividends from subsidiaries	$	5,000	$	20,000	$	168,100
	Interest income (includes $22,891 due from subsidiaries and affiliates (2011 - $24,800;
	2010 - $30,543))[1]		23,038		25,145		31,261
	Gain on sale of processing and technology business		-		-		640,802
	Earnings from investments in equity method investees[1]		40,505		14,186		3,402
	Other operating income (loss)		1,461		8,959		(120)
	Trading account profit		214		-		-
Total income			70,218		68,290		843,445
Expenses:
	Interest expense		95,898		94,615		111,809
	Provision for loan losses		404		-		-
	Loss on early extinguishment of debt		-		8,000		15,750
	Operating expenses (include expenses for services provided by subsidiaries and affiliate
	of $9,487 (2011 - $8,459; 2010 - $7,339)), net of reimbursement by subsidiaries for services
	provided by parent of $58,577 (2011 - $56,671; 2010 - $49,556)		1,705		1,066		35,923
Total expenses			98,007		103,681		163,482
(Loss) income before income taxes and equity in undistributed
	earnings (losses) of subsidiaries		(27,789)		(35,391)		679,963
Income taxes			1,702		2,786		80,444
(Loss) income before equity in undistributed earnings (losses) of subsidiaries			(29,491)		(38,177)		599,519
Equity in undistributed earnings (losses) of subsidiaries			274,766		189,502		(462,118)
Net income		$	245,275	$	151,325	$	137,401
Comprehensive income, net of tax		$	184,955	$	114,738	$	160,649

Condensed Statements of Cash Flows
				Year ended December 31,
(In thousands)				2012		2011		2010
Cash flows from operating activities:
Net income			$	245,275	$	151,325	$	137,401
Adjustments to reconcile net income to net cash (used in) provided
	by operating activities:
	Equity in undistributed (earnings) losses of subsidiaries
		and dividends from subsidiaries		(274,766)		(189,502)		462,118
	Provision for loan losses			404		-		-
	Net accretion of discounts and amortization of premiums and deferred fees			29,058		25,042		21,282
	Earnings from investments under the equity method			(40,505)		(14,186)		(3,402)
	Deferred income tax (benefit) expense			(14,109)		13,965		8,831
	(Gain) loss on:
		Sale of equity method investments		-		(5,493)		-
		Sale of processing and technology business, net of transaction costs		-		-		(616,186)
	Net (increase) decrease in:
		Trading securities		(1,259)		-		-
		Other assets		9,351		7,563		7,263
	Net increase (decrease) in:
		Interest payable		-		(3,467)		(528)
		Other liabilities		2,581		(84,434)		42,578
Total adjustments				(289,245)		(250,512)		(78,044)
Net cash (used in) provided by operating activities				(43,970)		(99,187)		59,357
Cash flows from investing activities:
	Net decrease (increase) in money market investments			23,665		(42,237)		49
	Purchases of investment securities:
		Available-for-sale		-		-		(35,000)
		Held-to-maturity		-		(37,093)		(52,796)
	Proceeds from calls, paydowns, maturities and redemptions of investment securities:
		Held-to-maturity		-		62,980		297,747
	Capital contribution to subsidiaries			(103,500)		-		(1,345,000)
	Net (increase) decrease in advances to subsidiaries and affiliates			(36,400)		226,546		(366,394)
	Net repayments (disbursements) on other loans			138		(131)		(56)
	Return of capital from equity method investments			150,194		-		-
	Net proceeds from sale of equity method investments			-		(10,690)		-
	Net proceeds from sale of processing and technology business			-		-		617,976
	Acquisition of premises and equipment			(691)		(594)		(890)
	Proceeds from sale of:
		Premises and equipment		73		135		183
		Foreclosed assets		-		-		74
Net cash provided by (used in) investing activities				33,479		198,916		(884,107)
Cash flows from financing activities:
	Net increase (decrease) in:
		Other short-term borrowings		-		-		(24,225)
	Payments of notes payable and subordinated notes			-		(100,000)		(250,000)
	Proceeds from issuance of common stock			9,402		7,690		153
	Net proceeds from issuance of depositary shares			-		-		1,100,155
	Dividends paid			(3,723)		(3,723)		(310)
	Treasury stock acquired			(450)		(483)		(559)
	Return of capital			-		1,514		-
Net cash provided by (used in) financing activities				5,229		(95,002)		825,214
Net (decrease) increase in cash and due from banks				(5,262)		4,727		464
Cash and due from banks at beginning of period				6,365		1,638		1,174
Cash and due from banks at end of period			$	1,103	$	6,365	$	1,638

Popular, Inc. (parent company only) received net capital distributions from its direct equity method investees amounting to $155 million for the year ended December 31, 2012, which included dividend distributions of $5 million.

Notes payable represent junior subordinated debentures issued by the Corporation that are associated to capital securities issued by the Popular Capital Trust I, Popular Capital Trust II and Popular Capital Trust III. Refer to Note 22 for a description of significant provisions related to these junior subordinated debentures. The following table presents the aggregate amounts by contractual maturities of notes payable at December 31, 2012:

Year		(In thousands)
2013	$	-
2014		-
2015		-
2016		-
2017		-
Later years		290,812
No stated maturity		936,000
Subtotal		1,226,812
Less: Discount		(436,530)
Total	$	790,282