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

6 Months Ended

Jun. 30, 2016

Disclosure Text Block

Condensed Consolidating Financial Information of Guarantor and Issuers of Registeres Guranteed Securities

Note 36 – 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 June 30,2016 and December 31, 2015, and the results of their operations and cash flows for periods ended June 30, 2016 and 2015.

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.

Condensed Consolidating Statement of Financial Condition (Unaudited)
		At June 30, 2016
							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			$	37,306	$	595	$	365,034	$	(37,627)	$	365,308
Money market investments				262,285		18,488		2,785,215		(280,488)		2,785,500
Trading account securities, at fair value				2,271		-		70,349		(90)		72,530
Investment securities available-for-sale, at
	fair value			258		-		7,242,418		-		7,242,676
Investment securities held-to-maturity, at
	amortized cost			-		-		99,525		-		99,525
Other investment securities, at lower of cost
	or realizable value			9,850		4,492		154,221		-		168,563
Investment in subsidiaries				5,775,328		1,838,488		-		(7,613,816)		-
Loans held-for-sale, at lower of cost or
	fair value			-		-		122,338		-		122,338
Loans held-in-portfolio:
	Loans not covered under loss-sharing
	agreements with the FDIC			1,159		-		22,654,718		-		22,655,877
	Loans covered under loss-sharing
	agreements with the FDIC			-		-		607,170		-		607,170
	Less - Unearned income			-		-		115,216		-		115,216
	Allowance for loan losses			34		-		548,686		-		548,720
	Total loans held-in-portfolio, net			1,125		-		22,597,986		-		22,599,111
FDIC loss-share asset				-		-		214,029		-		214,029
Premises and equipment, net				3,077		-		532,788		-		535,865
Other real estate not covered under loss-
	sharing agreements with the FDIC			283		-		176,742		-		177,025
Other real estate covered under loss-
	sharing agreements with the FDIC			-		-		37,984		-		37,984
Accrued income receivable				103		145		120,819		(88)		120,979
Mortgage servicing assets, at fair value				-		-		203,577		-		203,577
Other assets				57,937		23,292		2,113,461		(15,630)		2,179,060
Goodwill				-		-		631,095		-		631,095
Other intangible assets				554		-		50,429		-		50,983
Total assets			$	6,150,377	$	1,885,500	$	37,518,010	$	(7,947,739)	$	37,606,148
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
	Non-interest bearing		$	-	$	-	$	6,568,735	$	(37,627)	$	6,531,108
	Interest bearing			-		-		22,487,236		(280,488)		22,206,748
	Total deposits			-		-		29,055,971		(318,115)		28,737,856
Federal funds purchased and assets
	sold under agreements to repurchase			-		-		821,604		-		821,604
Other short-term borrowings				-		-		31,200		-		31,200
Notes payable				734,557		148,498		692,893		-		1,575,948
Other liabilities				55,898		6,262		1,031,686		(15,952)		1,077,894
Liabilities from discontinued operations				-		-		1,815		-		1,815
Total liabilities				790,455		154,760		31,635,169		(334,067)		32,246,317
Stockholders' equity:
Preferred stock				50,160		-		-		-		50,160
Common stock				1,040		2		56,306		(56,309)		1,039
Surplus				4,224,309		4,111,207		5,698,606		(9,801,287)		4,232,835
Retained earnings (accumulated deficit)				1,237,505		(2,400,493)		271,530		2,120,437		1,228,979
Treasury stock, at cost				(7,480)		-		-		(90)		(7,570)
Accumulated other comprehensive loss,
	net of tax			(145,612)		20,024		(143,601)		123,577		(145,612)
Total stockholders' equity				5,359,922		1,730,740		5,882,841		(7,613,672)		5,359,831
Total liabilities and stockholders' equity			$	6,150,377	$	1,885,500	$	37,518,010	$	(7,947,739)	$	37,606,148

Condensed Consolidating Statement of Financial Condition (Unaudited)
		At December 31, 2015
							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			$	24,298	$	600	$	363,620	$	(24,844)	$	363,674
Money market investments				262,204		23,931		2,179,887		(285,930)		2,180,092
Trading account securities, at fair value				2,020		-		69,639		-		71,659
Investment securities available-for-sale, at
	fair value			216		-		6,062,776		-		6,062,992
Investment securities held-to-maturity, at
	amortized cost			-		-		100,903		-		100,903
Other investment securities, at lower of cost
	or realizable value			9,850		4,492		157,906		-		172,248
Investment in subsidiaries				5,539,325		1,789,512		-		(7,328,837)		-
Loans held-for-sale, at lower of cost or
	fair value			-		-		137,000		-		137,000
Loans held-in-portfolio:
	Loans not covered under loss-sharing
	agreements with the FDIC			1,176		-		22,452,637		-		22,453,813
	Loans covered under loss-sharing
	agreements with the FDIC			-		-		646,115		-		646,115
	Less - Unearned income			-		-		107,698		-		107,698
	Allowance for loan losses			3		-		537,108		-		537,111
	Total loans held-in-portfolio, net			1,173		-		22,453,946		-		22,455,119
FDIC loss-share asset				-		-		310,221		-		310,221
Premises and equipment, net				2,823		-		499,788		-		502,611
Other real estate not covered under loss-
	sharing agreements with the FDIC			532		-		154,699		-		155,231
Other real estate covered under loss-
	sharing agreements with the FDIC			-		-		36,685		-		36,685
Accrued income receivable				85		115		124,070		(36)		124,234
Mortgage servicing assets, at fair value				-		-		211,405		-		211,405
Other assets				54,908		23,596		2,132,616		(17,958)		2,193,162
Goodwill				-		-		626,388		-		626,388
Other intangible assets				554		-		57,555		-		58,109
Total assets			$	5,897,988	$	1,842,246	$	35,679,104	$	(7,657,605)	$	35,761,733
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
	Non-interest bearing		$	-	$	-	$	6,426,359	$	(24,844)	$	6,401,515
	Interest bearing			-		-		21,094,138		(285,930)		20,808,208
	Total deposits			-		-		27,520,497		(310,774)		27,209,723
Federal funds purchased and assets sold
	under agreements to repurchase			-		-		762,145		-		762,145
Other short-term borrowings				-		-		1,200		-		1,200
Notes payable				733,516		148,483		780,509		-		1,662,508
Other liabilities				59,148		6,659		971,429		(18,218)		1,019,018
Liabilities from discontinued operations				-		-		1,815		-		1,815
Total liabilities				792,664		155,142		30,037,595		(328,992)		30,656,409
Stockholders' equity:
Preferred stock				50,160		-		-		-		50,160
Common stock				1,038		2		56,307		(56,309)		1,038
Surplus				4,220,629		4,111,208		5,712,635		(9,815,316)		4,229,156
Retained earnings (accumulated deficit)				1,096,484		(2,416,251)		128,459		2,279,265		1,087,957
Treasury stock, at cost				(6,101)		-		-		-		(6,101)
Accumulated other comprehensive
	loss, net of tax			(256,886)		(7,855)		(255,892)		263,747		(256,886)
Total stockholders' equity				5,105,324		1,687,104		5,641,509		(7,328,613)		5,105,324
Total liabilities and stockholders' equity			$	5,897,988	$	1,842,246	$	35,679,104	$	(7,657,605)	$	35,761,733

Condensed Consolidating Statement of Operations (Unaudited)
			Quarter ended June 30, 2016
							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	$	24,200		$	-		$	-		$	(24,200)		$	-
	Loans		20			-			369,701			-			369,721
	Money market investments		323			30			3,889			(353)			3,889
	Investment securities		143			81			36,501			-			36,725
	Trading account securities		-			-			1,875			-			1,875
	Total interest and dividend income		24,686			111			411,966			(24,553)			412,210
Interest expense:
	Deposits		-			-			30,952			(353)			30,599
	Short-term borrowings		-			-			2,058			-			2,058
	Long-term debt		13,118			2,692			3,192			-			19,002
	Total interest expense		13,118			2,692			36,202			(353)			51,659
Net interest income (expense)			11,568			(2,581)			375,764			(24,200)			360,551
Provision for loan losses- non-covered loans			31			-			39,637			-			39,668
Provision for loan losses- covered loans			-			-			804			-			804
Net interest income (expense)
	after provision for loan losses		11,537			(2,581)			335,323			(24,200)			320,079
Service charges on deposit accounts			-			-			40,296			-			40,296
Other service fees			-			-			58,224			(1,279)			56,945
Mortgage banking activities			-			-			16,227			-			16,227
Net gain on sale of investment securities			1,583			-			-			-			1,583
Other-than-temporary impairment losses on investment securities			-			-			(209)			-			(209)
Trading account profit			35			-			1,082			-			1,117
Adjustments (expense) to indemnity reserves
	on loans sold		-			-			(5,746)			-			(5,746)
FDIC loss-share expense			-			-			(12,576)			-			(12,576)
Other operating income			1,812			(1,636)			12,701			(11)			12,866
	Total non-interest income		3,430			(1,636)			109,999			(1,290)			110,503
Operating expenses:
Personnel costs			10,634			-			106,074			-			116,708
Net occupancy expenses			845			-			20,869			-			21,714
Equipment expenses			643			-			14,618			-			15,261
Other taxes			47			-			10,123			-			10,170
Professional fees			2,331			30			78,491			(227)			80,625
Communications			140			-			5,872			-			6,012
Business promotion			486			-			13,219			-			13,705
FDIC deposit insurance			-			-			5,362			-			5,362
Other real estate owned (OREO) expenses			68			-			12,912			-			12,980
Other operating expenses			(15,950)			4			39,998			(537)			23,515
Amortization of intangibles			-			-			3,097			-			3,097
	Total operating expenses		(756)			34			310,635			(764)			309,149
Income (loss) before income tax and equity in
	earnings of subsidiaries		15,723			(4,251)			134,687			(24,726)			121,433
Income tax (benefit) expense			-			(1,488)			34,140			(206)			32,446
Income (loss) before equity in earnings of
	subsidiaries		15,723			(2,763)			100,547			(24,520)			88,987
Equity in undistributed earnings of
	subsidiaries		73,264			12,176			-			(85,440)			-
Net Income		$	88,987		$	9,413		$	100,547		$	(109,960)		$	88,987
Comprehensive income, net of tax		$	125,125		$	16,343		$	137,225		$	(153,568)		$	125,125

Condensed Consolidating Statement of Operations (Unaudited)
			Six months ended June 30, 2016
							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	$	53,900		$	-		$	-		$	(53,900)		$	-
	Loans		39			-			732,879			-			732,918
	Money market investments		578			51			6,752			(629)			6,752
	Investment securities		381			161			72,454			-			72,996
	Trading account securities		-			-			3,564			-			3,564
	Total interest and dividend income		54,898			212			815,649			(54,529)			816,230
Interest expense:
	Deposits		-			-			61,102			(629)			60,473
	Short-term borrowings		-			-			3,919			-			3,919
	Long-term debt		26,235			5,385			7,255			-			38,875
	Total interest expense		26,235			5,385			72,276			(629)			103,267
Net interest income (expense)			28,663			(5,173)			743,373			(53,900)			712,963
Provision for loan losses- non-covered loans			(3)			-			87,611			-			87,608
Provision for loan losses- covered loans			-			-			(2,301)			-			(2,301)
Net interest income (expense)
	after provision for loan losses		28,666			(5,173)			658,063			(53,900)			627,656
Service charges on deposit accounts			-			-			80,158			-			80,158
Other service fees			-			-			111,663			(1,336)			110,327
Mortgage banking activities			-			-			26,778			-			26,778
Net gain on sale of investment securities			1,583			-			-			-			1,583
Other-than-temporary impairment losses on investment securities			-			-			(209)			-			(209)
Trading account profit			59			-			896			-			955
Net loss on sale of loans, including valuation
	adjustments on loans held-for-sale		-			-			(304)			-			(304)
Adjustments (expense) to indemnity reserves
	on loans sold		-			-			(9,844)			-			(9,844)
FDIC loss-share expense			-			-			(15,722)			-			(15,722)
Other operating income			5,068			(2,939)			26,300			(18)			28,411
	Total non-interest income		6,710			(2,939)			219,716			(1,354)			222,133
Operating expenses:
Personnel costs			26,055			-			217,744			-			243,799
Net occupancy expenses			1,761			-			40,383			-			42,144
Equipment expenses			1,088			-			28,721			-			29,809
Other taxes			94			-			20,271			-			20,365
Professional fees			5,212			60			151,096			(284)			156,084
Communications			277			-			12,055			-			12,332
Business promotion			951			-			23,864			-			24,815
FDIC deposit insurance			-			-			12,732			-			12,732
Other real estate owned (OREO) expenses			68			-			22,053			-			22,121
Other operating expenses			(36,378)			43			78,104			(1,089)			40,680
Amortization of intangibles			-			-			6,211			-			6,211
	Total operating expenses		(872)			103			613,234			(1,373)			611,092
Income (loss) before income tax
	and equity in earnings of subsidiaries		36,248			(8,215)			264,545			(53,881)			238,697
Income tax expense (benefit)			3			(2,875)			67,576			7			64,711
Income (loss) before equity in
	earnings of subsidiaries		36,245			(5,340)			196,969			(53,888)			173,986
Equity in undistributed earnings of
	subsidiaries		137,741			21,099			-			(158,840)			-
Net Income		$	173,986		$	15,759		$	196,969		$	(212,728)		$	173,986
Comprehensive income, net of tax		$	285,260		$	43,638		$	309,260			(352,898)		$	285,260

Condensed Consolidating Statement of Operations (Unaudited)
				Quarter ended June 30, 2015
								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		$	1,500		$	-		$	-		$	(1,500)		$	-
	Loans			169			2			374,109			(147)			374,133
	Money market investments			2			1			1,844			(2)			1,845
	Investment securities			190			80			31,027			-			31,297
	Trading account securities			-			-			3,026			-			3,026
	Total interest and dividend income			1,861			83			410,006			(1,649)			410,301
Interest expense:
	Deposits			-			-			26,260			(2)			26,258
	Short-term borrowings			-			127			1,883			(147)			1,863
	Long-term debt			13,117			2,695			3,815			-			19,627
	Total interest expense			13,117			2,822			31,958			(149)			47,748
Net interest (expense) income				(11,256)			(2,739)			378,048			(1,500)			362,553
Provision for loan losses- non-covered loans				227			-			60,241			-			60,468
Provision for loan losses- covered loans				-			-			15,766			-			15,766
Net interest (expense) income
	after provision for loan losses			(11,483)			(2,739)			302,041			(1,500)			286,319
Service charges on deposit accounts				-			-			40,138			-			40,138
Other service fees				-			-			60,661			(1,240)			59,421
Mortgage banking activities				-			-			21,325			-			21,325
Net gain on sale of investment securities				-			-			5			-			5
Other-than-temporary impairment losses on
	investment securities			-			-			(14,445)			-			(14,445)
Trading account loss				(18)			-			(3,090)			-			(3,108)
Net gain on sale of loans, including valuation
	adjustments on loans held-for-sale			-			-			681			-			681
Adjustments (expense) to indemnity reserves
	on loans sold			-			-			419			-			419
FDIC loss-share income				-			-			19,075			-			19,075
Other operating income				3,423			524			13,315			(14)			17,248
	Total non-interest income			3,405			524			138,084			(1,254)			140,759
Operating expenses:
Personnel costs				14,470			-			106,507			-			120,977
Net occupancy expenses				787			-			22,499			-			23,286
Equipment expenses				472			-			15,453			-			15,925
Other taxes				652			-			10,461			-			11,113
Professional fees				2,323			32			76,154			(60)			78,449
Communications				108			-			6,045			-			6,153
Business promotion				408			-			13,368			-			13,776
FDIC deposit insurance				-			-			8,542			-			8,542
Other real estate owned (OREO) expenses				-			-			44,816			-			44,816
Other operating expenses				(15,184)			109			46,795			(638)			31,082
Amortization of intangibles				-			-			2,881			-			2,881
Restructuring cost				-			-			6,174			-			6,174
	Total operating expenses			4,036			141			359,695			(698)			363,174
(Loss) income before income tax
	and equity in earnings of subsidiaries			(12,114)			(2,356)			80,430			(2,056)			63,904
Income tax benefit				(47)			-			(533,270)			(216)			(533,533)
(Loss) income before equity in earnings of subsidiaries				(12,067)			(2,356)			613,700			(1,840)			597,437
Equity in undistributed earnings
	of subsidiaries			609,504			559,026			-			(1,168,530)			-
Income from continuing operations				597,437			556,670			613,700			(1,170,370)			597,437
Income from discontinued operations, net of tax				-			-			15			-			15
Equity in undistributed earnings of
	discontinued operations			15			15			-			(30)			-
Net Income			$	597,452		$	556,685		$	613,715		$	(1,170,400)		$	597,452
Comprehensive income, net of tax			$	572,821		$	545,987		$	589,116		$	(1,135,103)		$	572,821

Condensed Consolidating Statement of Operations (Unaudited)
			Six months ended June 30, 2015
							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	$	3,000		$	-		$	-		$	(3,000)		$	-
	Loans		309			2			729,722			(269)			729,764
	Money market investments		4			3			3,288			(4)			3,291
	Investment securities		333			161			61,104			-			61,598
	Trading account securities		-			-			5,722			-			5,722
	Total interest and dividend income		3,646			166			799,836			(3,273)			800,375
Interest expense:
	Deposits		-			-			52,126			(4)			52,122
	Short-term borrowings		-			228			3,638			(269)			3,597
	Long-term debt		26,235			5,390			7,283			-			38,908
	Total interest expense		26,235			5,618			63,047			(273)			94,627
Net interest (expense) income			(22,589)			(5,452)			736,789			(3,000)			705,748
Provision for loan losses- non-covered loans			227			-			89,952			-			90,179
Provision for loan losses- covered loans			-			-			26,090			-			26,090
Net interest (expense) income
	after provision for loan losses		(22,816)			(5,452)			620,747			(3,000)			589,479
Service charges on deposit accounts			-			-			79,155			-			79,155
Other service fees			-			-			114,375			(1,328)			113,047
Mortgage banking activities			-			-			34,177			-			34,177
Net gain on sale of investment securities			-			-			5			-			5
Other-than temporary impairment losses on
	Investment securities		-			-			(14,445)			-			(14,445)
Trading account profit (loss)			22			-			(2,716)			-			(2,694)
Net gain on sale of loans, including valuation
	adjustments on loans held-for-sale		-			-			602			-			602
Adjustments (expense) to indemnity reserves
	on loans sold		-			-			(4,107)			-			(4,107)
FDIC loss-share expense			-			-			23,214			-			23,214
Other operating income (loss)			6,391			(305)			20,984			(30)			27,040
	Total non-interest income (loss)		6,413			(305)			251,244			(1,358)			255,994
Operating expenses:
Personnel costs			26,378			-			211,057			-			237,435
Net occupancy expenses			1,767			-			43,228			-			44,995
Equipment expenses			1,017			-			28,319			-			29,336
Other taxes			(806)			-			20,493			-			19,687
Professional fees			5,097			442			148,586			(148)			153,977
Communications			225			-			12,104			-			12,329
Business promotion			844			-			23,745			-			24,589
FDIC deposit insurance			-			-			14,940			-			14,940
Other real estate owned (OREO) expenses			-			-			67,885			-			67,885
Other operating expenses			(32,119)			218			81,614			(1,283)			48,430
Amortization of intangibles			-			-			4,985			-			4,985
Restructuring costs			-			-			16,927			-			16,927
	Total operating expenses		2,403			660			673,883			(1,431)			675,515
(Loss) income before income tax
	and equity in earnings of subsidiaries		(18,806)			(6,417)			198,108			(2,927)			169,958
Income tax (benefit) expense			-			-			(500,993)			29			(500,964)
(Loss) income before equity in
	earnings of subsidiaries		(18,806)			(6,417)			699,101			(2,956)			670,922
Equity in undistributed earnings of subsidiaries			689,728			560,295			-			(1,250,023)			-
Income from continuing operations			670,922			553,878			699,101			(1,252,979)			670,922
Income from discontinued operations, net of tax			-			-			1,356			-			1,356
Equity in undistributed earnings of
	discontinued operations		1,356			1,356			-			(2,712)			-
Net Income		$	672,278		$	555,234		$	700,457		$	(1,255,691)		$	672,278
Comprehensive income, net of tax		$	683,119		$	557,827		$	711,194		$	(1,269,021)		$	683,119

Condensed Consolidating Statement of Cash Flows (Unaudited)

						Six months ended June 30,2016
										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					$	173,986	$	15,759	$	196,969	$	(212,728)	$	173,986
Adjustments to reconcile net income to net
	cash (used in) provided by operating activities:
	Equity in undistributed earnings of subsidiaries					(137,741)		(21,099)		-		158,840		-
	Provision (reversal) for loan losses					(3)		-		85,310		-		85,307
	Amortization of intangibles					-		-		6,211		-		6,211
	Depreciation and amortization of premises and
		equipment				353		-		22,788		-		23,141
	Net accretion of discounts and amortization
		of premiums and deferred fees				1,043		15		(25,782)		-		(24,724)
	Other-than-temporary impairment on investment securities					-		-		209		-		209
	Fair value adjustments on mortgage servicing rights					-		-		12,817		-		12,817
	FDIC loss-share expense					-		-		15,722		-		15,722
	Adjustments (expense) to indemnity reserves on
		loans sold				-		-		9,844		-		9,844
	(Earnings) losses from investments under the
		equity method				(5,069)		2,939		(11,551)		-		(13,681)
	Deferred income tax expense (benefit)					3		(2,875)		52,180		8		49,316
	(Gain) loss on:
			Disposition of premises and equipment and other
				productive assets		(1)		-		2,425		-		2,424
			Sale and valuation adjustments of investment
				securities		(1,583)		-		-		-		(1,583)
			Sale of loans, including valuation adjustments on
				loans held for sale and mortgage banking activities		-		-		(15,577)		-		(15,577)
			Sale of foreclosed assets, including write-downs			68		-		9,503		-		9,571
	Acquisitions of loans held-for-sale					-		-		(148,725)		-		(148,725)
	Proceeds from sale of loans held-for-sale					-		-		43,110		-		43,110
	Net originations on loans held-for-sale					-		-		(247,287)		-		(247,287)
	Net (increase) decrease in:
			Trading securities			(251)		-		393,339		90		393,178
			Accrued income receivable			(17)		(30)		3,252		50		3,255
			Other assets			839		35		(19,889)		(2,336)		(21,351)
	Net (decrease) increase in:
			Interest payable			-		-		(1,158)		(50)		(1,208)
			Pension and other postretirement benefits
				obligations		-		-		2,300		-		2,300
			Other liabilities			(3,244)		(397)		7,635		2,316		6,310
Total adjustments						(145,603)		(21,412)		196,676		158,918		188,579
Net cash provided by (used in) operating activities						28,383		(5,653)		393,645		(53,810)		362,565
Cash flows from investing activities:
	Net (increase) decrease in money market investments					(82)		5,442		(605,325)		(5,442)		(605,407)
	Purchases of investment securities:
			Available-for-sale			-		-		(1,682,199)		-		(1,682,199)
			Other			-		-		(70,302)		-		(70,302)
	Proceeds from calls, paydowns, maturities and
		redemptions of investment securities:
			Available-for-sale			-		-		632,284		-		632,284
			Held-to-maturity			-		-		2,209		-		2,209
			Other			-		-		47,859		-		47,859
	Proceeds from sale of investment securities:
			Other			1,583		-		26,127		-		27,710
	Net repayments (disbursements) on loans					17		-		(61,216)		-		(61,199)
	Proceeds from sale of loans					-		-		95,940		-		95,940
	Acquisition of loan portfolios					-		-		(308,949)		-		(308,949)
	Net payments from FDIC under loss-sharing
		agreements				-		-		88,588		-		88,588
	Return of capital from equity method investments					118		206		-		-		324
	Return of capital from wholly-owned subsidiaries					14,000		-		-		(14,000)		-
	Acquisition of premises and equipment					(651)		-		(60,093)		-		(60,744)
	Proceeds from sale of:
			Premises and equipment and other productive assets			46		-		2,793		-		2,839
			Foreclosed assets			216		-		28,679		-		28,895
Net cash provided by (used in) investing activities						15,247		5,648		(1,863,605)		(19,442)		(1,862,152)
Cash flows from financing activities:
	Net increase (decrease) in:
			Deposits			-		-		1,537,432		(7,341)		1,530,091
			Federal funds purchased and assets sold
				under agreements to repurchase		-		-		59,460		-		59,460
			Other short-term borrowings			-		-		30,000		-		30,000
	Payments of notes payable					-		-		(216,501)		-		(216,501)
	Proceeds from issuance of notes payable					-		-		128,883		-		128,883
	Proceeds from issuance of common stock					3,710		-		-		-		3,710
	Dividends paid to parent company					-		-		(53,900)		53,900		-
	Dividends paid					(32,953)		-		-		-		(32,953)
	Net payments for repurchase of common stock					(1,379)		-		-		(90)		(1,469)
	Return of capital to parent company					-		-		(14,000)		14,000		-
Net cash (used in) provided by financing activities						(30,622)		-		1,471,374		60,469		1,501,221
Net increase (decrease) in cash and due from banks						13,008		(5)		1,414		(12,783)		1,634
Cash and due from banks at beginning of period						24,298		600		363,620		(24,844)		363,674
Cash and due from banks at end of period					$	37,306	$	595	$	365,034	$	(37,627)	$	365,308
During the six months ended June 30, 2016 there have not been any cash flows associated with discontinued operations.

Condensed Consolidating Statement of Cash Flows (Unaudited)

						Six months ended June 30, 2015
										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					$	672,278	$	555,234	$	700,457	$	(1,255,691)	$	672,278
Adjustments to reconcile net income to net cash
		(used in) provided by operating activities:
	Equity in undistributed earnings of subsidiaries					(691,084)		(561,651)		-		1,252,735		-
	Provision for loan losses					227		-		116,042		-		116,269
	Amortization of intangibles					-		-		4,985		-		4,985
	Depreciation and amortization of premises and
		equipment				374		-		23,575		-		23,949
	Net accretion of discounts and amortization
		of premiums and deferred fees				-		-		(42,167)		-		(42,167)
	Other-than-temporary impairment on investment securities					-		-		14,445		-		14,445
	Fair value adjustments on mortgage servicing rights					-		-		6,846		-		6,846
	FDIC loss-share income					-		-		(23,214)		-		(23,214)
	Adjustments (expense) to indemnity reserves on
		loans sold				-		-		4,107		-		4,107
	(Earnings) losses from investments under the
		equity method				(6,391)		305		(3,720)		-		(9,806)
	Deferred income tax benefit					-		-		(511,157)		29		(511,128)
	(Gain) loss on:
			Disposition of premises and equipment			(1)		-		(1,428)		-		(1,429)
			Sale and valuation adjustments of investment
				securities		-		-		(5)		-		(5)
			Sale of loans, including valuation adjustments on
				loans held for sale and mortgage banking activities		-		-		(15,034)		-		(15,034)
			Sale of foreclosed assets, including write-downs			-		-		54,711		-		54,711
	Acquisitions of loans held-for-sale					-		-		(249,059)		-		(249,059)
	Proceeds from sale of loans held-for-sale					-		-		51,062		-		51,062
	Net originations on loans held-for-sale					-		-		(379,264)		-		(379,264)
	Net (increase) decrease in:
			Trading securities			(117)		-		481,388		-		481,271
			Accrued income receivable			(183)		(1)		(655)		183		(656)
			Other assets			2,298		55		31,314		(115)		33,552
	Net increase (decrease) in:
			Interest payable			-		183		475		(183)		475
			Pension and other postretirement benefits
				obligations		-		-		1,641		-		1,641
			Other liabilities			(10,443)		(61)		(30,976)		42		(41,438)
Total adjustments						(705,320)		(561,170)		(466,088)		1,252,691		(479,887)
Net cash (used in) provided by operating activities						(33,042)		(5,936)		234,369		(3,000)		192,391
Cash flows from investing activities:
	Net decrease (increase) in money market investments					18,481		(933)		(1,451,033)		933		(1,432,552)
	Purchases of investment securities:
			Available-for-sale			-		-		(985,427)		-		(985,427)
			Held-to-maturity			-		-		(250)		-		(250)
			Other			-		-		(12,805)		-		(12,805)
	Proceeds from calls, paydowns, maturities and
		redemptions of investment securities:
			Available-for-sale			-		-		867,168		-		867,168
			Held-to-maturity			-		-		2,389		-		2,389
			Other			-		-		31,592		-		31,592
	Proceeds from sale of investment securities:
			Available for sale			-		-		70,005		-		70,005
			Other			-		-		8,399		-		8,399
	Net repayments on loans					22,400		1		374,209		(22,386)		374,224
	Proceeds from sale of loans					-		-		27,780		-		27,780
	Acquisition of loan portfolios					-		(350)		(140,492)		171		(140,671)
	Net payments from FDIC under loss-sharing
		agreements				-		-		164,423		-		164,423
	Net cash received and acquired from business combination					-		-		738,296		-		738,296
	Acquisition of servicing assets					-		-		(3,897)		-		(3,897)
	Cash paid related to business acquisitions					-		-		(17,250)		-		(17,250)
	Mortgage servicing rights purchased					-		-		(2,400)		-		(2,400)
	Acquisition of premises and equipment					(677)		-		(30,140)		-		(30,817)
	Proceeds from sale of:
			Premises and equipment			4		-		7,897		-		7,901
			Foreclosed assets			-		-		98,287		-		98,287
Net cash provided by (used in) investing activities						40,208		(1,282)		(253,249)		(21,282)		(235,605)
Cash flows from financing activities:
	Net increase (decrease) in:
			Deposits			-		-		752,959		(7,172)		745,787
			Federal funds purchased and assets sold
				under agreements to repurchase		-		-		(150,413)		-		(150,413)
			Other short-term borrowings			-		7,214		(77,815)		22,386		(48,215)
	Payments of notes payable					-		-		(430,003)		-		(430,003)
	Proceeds from issuance of notes payable					-		-		103,231		-		103,231
	Proceeds from issuance of common stock					2,536		-		-		-		2,536
	Dividends paid to parent company					-		-		(3,000)		3,000		-
	Dividends paid					(1,861)		-		-		-		(1,861)
	Net payments for repurchase of common stock					(1,696)		-		1		-		(1,695)
	Return of capital to parent company					-		-		171		(171)		-
Net cash (used in) provided by financing activities						(1,021)		7,214		195,131		18,043		219,367
Net increase (decrease) in cash and due from banks						6,145		(4)		176,251		(6,239)		176,153
Cash and due from banks at beginning of period						20,448		608		380,890		(20,851)		381,095
Cash and due from banks at end of period					$	26,593	$	604	$	557,141	$	(27,090)	$	557,248
The Condensed Consolidating Statements of Cash Flows include the cash flows from operating, investing and financing activities associated with discontinued operations.