POPULAR, INC. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - POPULAR, INC. 8-K - POPULAR, INC.	a50788618.htm

Exhibit 99.1

Popular, Inc. Announces Fourth Quarter Financial Results

Reports net income of $163.0 million for the quarter ended December 31, 2013; Net interest margin of 4.74% in Q4 2013, vs. 4.49% in Q3 2013
- Sale of EVERTEC shares in connection with their Q4 2013 secondary public offering, resulted in an after-tax gain of $99.4 million for Popular
- Adjusted net income of $74.6 million, excluding the effect of the EVERTEC secondary public offering
Net income for the year ended December 31, 2013 was $599.3 million
Continued progress in credit quality (excluding covered loans):
- Non-performing assets declined by $20.6 million, or 2.7%, compared to Q3 2013; and $1.1 billion, or 58.9%, year over year;
- Non-performing loans held-in-portfolio declined by $19.6 million, or 3.2%, compared to Q3 2013; and $827.2 million, or 58.0%, year over year;
- Inflows of non-performing loans held-in-portfolio, excluding consumer loans, for Q4 2013 declined by $20.5 million, or 12.6%, from Q3 2013, and down $492.3 million, or 42.1%, year over year;
- Net charge-offs decreased by $22.5 million, or 38.9%, from Q3 2013; NCO ratio decreased to 0.66% from 1.08% in Q3 2013, lowest level in over seven years;
- Net charge-offs, excluding the impact of the bulk loan sales, declined $149.0 million, or 37.0%, year over year.
Common Equity Tier 1 ratio of 15.0% and Tangible Book Value per Share of $37.56 at December 31, 2013; capital exceeds well-capitalized threshold by $2.3 billion

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--January 23, 2014--Popular, Inc. (the “Corporation” or “Popular”) (NASDAQ:BPOP) reported net income of $163.0 million for the quarter ended December 31, 2013, compared to net income of $229.1 million for the quarter ended September 30, 2013.

Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said: “The earnings for the fourth quarter demonstrate how the strength of our franchise continues to produce positive results even in a challenging operating environment. Over the last few years, we have executed a number of strategic initiatives that have improved our operational and financial metrics and will position us to further increase profitability once the economy in Puerto Rico begins to improve.”

Earnings Highlights
(Unaudited)
	Quarters ended			Years ended
(Dollars in thousands, except per share information)	31-Dec-13	30-Sep-13	31-Dec-12	31-Dec-13	31-Dec-12
Net interest income	$ 376,342	$ 354,206	$ 351,417	$ 1,432,580	$ 1,376,633
Provision for loan losses – non-covered loans	47,729	55,230	86,256	533,167	334,102
Provision (reversal) for loan losses – covered loans [1]	8,907	17,433	(3,445)	69,396	74,839
Net interest income after provision for loan losses	319,706	281,543	268,606	830,017	967,692
FDIC loss share expense	(37,164)	(14,866)	(36,824)	(82,051)	(56,211)
Other non-interest income	228,354	306,825	187,304	892,620	587,423
Operating expenses	322,703	326,599	315,232	1,292,586	1,280,032
Income before income tax	188,193	246,903	103,854	348,000	218,872
Income tax expense (benefit)	25,162	17,768	19,914	(251,327)	(26,403)
Net income	$ 163,031	$ 229,135	$ 83,940	$ 599,327	$ 245,275
Net income applicable to common stock	$ 162,100	$ 228,204	$ 83,009	$ 595,604	$ 241,552
Net income per common share - basic	$ 1.58	$ 2.22	$ 0.81	$ 5.80	$ 2.36
Net income per common share - diluted	$ 1.57	$ 2.22	$ 0.81	$ 5.78	$ 2.35

[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.

Recent significant events

On December 13, 2013, the Corporation completed the sale of 5,800,000 shares of common stock of EVERTEC, resulting in an after-tax gain of $99.4 million. The shares were sold to the public as part of an underwritten public offering of 15,233,273 shares of EVERTEC’s common stock at a price of $20.60 per share. The selling stockholders included an affiliate of Apollo Global Management, LLC (“Apollo”), Popular, Inc., and certain officers and employees of EVERTEC. Apollo sold 9,205,743 shares of EVERTEC, with the offering. Following the sale, Popular retained a stake of 14.9% in EVERTEC.

As part of the transaction, EVERTEC repurchased from the underwriters 3,690,036 shares of its common stock being sold by the selling stockholders in the offering, resulting in a reduction in its capital of approximately $75.0 million. Popular’s share of approximately $11.0 million was reflected as a reduction in its investment in EVERTEC.

Total cash proceeds received by Popular from the sale of the shares were approximately $117.9 million, net of underwriting discounts. The combined effect of the sale of shares by Popular and the repurchase of shares by EVERTEC resulted in a net after tax gain of approximately $88.4 million during the fourth quarter of 2013.

The following tables reflect the results of operations for the fourth and third quarters of 2013, excluding the effect of the gains related to EVERTEC’s secondary public offerings.

	Quarter ended
(Unaudited)	31-Dec-13
(In thousands)	Actual Results (US GAAP)			Impact of EVERTEC's SPO		Adjusted Results (Non-GAAP)
Net interest income	$	376,342		$	-	$	376,342
Provision for loan losses – non-covered loans		47,729			-		47,729
Provision for loan losses – covered loans [1]		8,907			-		8,907
Net interest income after provision for loan losses		319,706			-		319,706
FDIC loss share income (expense)		(37,164	)		-		(37,164	)
Other non-interest income		228,354			92,358		135,996
Operating expenses		322,703			-		322,703
Income before income tax		188,193			92,358		95,835
Income tax expense		25,162			3,945		21,217
Net income	$	163,031		$	88,413	$	74,618
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.

	Quarter ended
(Unaudited)	30-Sep-13
(In thousands)	Actual Results (US GAAP)			Impact of EVERTEC's SPO		Adjusted Results (Non-GAAP)
Net interest income	$	354,206		$	-	$	354,206
Provision for loan losses – non-covered loans		55,230			-		55,230
Provision for loan losses – covered loans [1]		17,433			-		17,433
Net interest income after provision for loan losses		281,543			-		281,543
FDIC loss share income (expense)		(14,866	)		-		(14,866	)
Other non-interest income		306,825			175,867		130,958
Operating expenses		326,599			250		326,349
Income before income tax		246,903			175,617		71,286
Income tax expense		17,768			7,789		9,979
Net income	$	229,135		$	167,828	$	61,307
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.

	Quarters ended
(Unaudited)	Adjusted Results Non-GAAP
(In thousands)	31-Dec-13			30-Sep-13			Variance
Net interest income	$	376,342		$	354,206		$	22,136
Provision for loan losses – non-covered loans		47,729			55,230			(7,501	)
Provision for loan losses – covered loans [1]		8,907			17,433			(8,526	)
Net interest income after provision for loan losses		319,706			281,543			38,163
FDIC loss share expense		(37,164	)		(14,866	)		(22,298	)
Other non-interest income		135,996			130,958			5,038
Operating expenses		322,703			326,349			(3,646	)
Income before income tax		95,835			71,286			24,549
Income tax expense		21,217			9,979			11,238
Net income	$	74,618		$	61,307		$	13,311
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.

Net interest income

Net interest margin for the fourth quarter of 2013 increased 25 basis points to 4.74% when compared with the third quarter of 2013. Net interest income for the quarter was $376.3 million, an increase of $22.1 million from the previous quarter. During the third quarter the Corporation reversed interest income of approximately $5.9 million related to a portion of a portfolio of reverse mortgages at BPPR for which interest had been accrued in excess of the amount insured by FHA. The main drivers of the increase in the net interest margin were:

An increase in interest from covered loans of $15.2 million, or 230 basis points, due to an increase in the portfolio yield to 11.43% mainly as a result of certain construction loan pools for which the estimated timing of cash flows was accelerated to reflect actual and expected resolution of the loans, and higher expected cash flows which are reflected in the accretable yield and recognized over the life of the loans, partially offset by lower loan balances as the portfolio continues to run-off.
An increase in interest income from residential mortgage loans of $5.4 million due to the above mentioned reversal of $5.9 million in interest income from reverse mortgages recorded during the third quarter.
A decrease in interest expense from borrowings of $4.5 million due to the early repayment of $233.2 million in senior notes during the third quarter, at the Corporate level, and lower levels of borrowings.

These positive variances were partially offset by:

A decrease in interest income from commercial loans of $3.4 million due to the partial repayment of a large commercial relationship at BPNA during the third quarter.

BPPR’s net interest margin was 5.59%, an increase of 33 basis points from the previous quarter. Net interest income amounted to $330.8 million for the quarter ended December 31, 2013, compared with $309.9 million for the previous quarter. The increase in the net interest income was mainly due to the above mentioned increase in the yield from the covered portfolio, higher income from residential mortgage loans and lower cost of borrowings due to decreased levels.
BPNA earned $71.2 million in net interest income for the quarter ended December 31, 2013, compared with $73.2 million in the previous quarter. The decrease in the net interest margin of 11 basis points to 3.55% was mainly related to lower income from commercial loans due to the partial repayment of one large relationship, partially offset by lower cost of funds.

Non-interest income

Non-interest income decreased by $100.8 million compared with the third quarter of 2013. Excluding the impact of the gain on sale of EVERTEC shares mentioned above, non-interest income decreased by $17.3 million quarter over quarter, driven primarily by the following items:

An increase of $22.3 million in FDIC loss-share expense mainly due to lower mirror accounting on reimbursable expenses and credit impairment losses, higher amortization of the FDIC loss share asset due to a decrease in expected losses, offset by lower recoveries on covered assets, including rental income on OREOs, 80% of which are reimbursed to the FDIC and the impact of fair value adjustments in the true-up payment obligation. See additional details about covered portfolio and FDIC indemnity asset in Table O.
Lower income from mortgage banking activities by $4.5 million due to a negative variance of $8.4 million in the fair value adjustments of mortgage servicing rights, and higher trading account losses by $2.1 million from derivative positions, partially offset by securitization activity resulting in higher gain on sale of loans by $6.2 million. See additional details about mortgage banking activities in Table F.
Higher provision related to indemnity reserves on loans sold by $4.5 million mainly due to reserves release at the BPNA and BPPR segments due to the portfolio amortization and revisions to the loss assumptions in the reserve models during the third quarter, which did not occur in the fourth quarter of 2013.

These negative variances were partially offset by:

Lower trading account loss by $5.1 million mainly at the BPPR segment due to losses recorded on Puerto Rico government obligations during the third quarter of 2013.
Higher other service fees by $3.0 million mainly due to higher contingent insurance commission revenue, which is realized during the fourth quarter.
Higher other operating income by $2.9 million mainly due to higher net earnings on the portfolio of investments under the equity method.
Higher net gain on sale of loans, including valuation adjustments on loans held-for-sale, by $1.9 million mostly due to workout activity and sales of non-performing loans resulting in higher gains at the BPNA segment.

Refer to table B for further details.

Financial Impact of FDIC-Assisted Transaction

(Unaudited)	Quarters ended									Years ended
(In thousands)	31-Dec-13			30-Sep-13			31-Dec-12			31-Dec-13			31-Dec-12

Income Statement
Interest income on covered loans	$	86,794		$	71,631		$	76,998		$	300,746		$	301,441
Total FDIC loss share (expense) income		(37,164	)		(14,866	)		(36,824	)		(82,051	)		(56,211	)
Other non-interest income		-			109			281			593			1,211
Provision for loan losses		8,907			17,433			(3,445	)		69,397			74,839
Total revenues less provision for loan losses	$	40,723		$	39,441		$	43,900		$	149,891		$	171,602

Balance Sheet
Loans covered under loss-sharing agreements with FDIC	$	2,984,427		$	3,076,009		$	3,755,972
FDIC loss share asset		948,608			1,324,711			1,399,098
FDIC true-up payment obligation		127,513			124,092			111,519

See additional details on accounting for FDIC-Assisted transaction in Table O.

Operating expenses

Excluding the impact of professional services expenses incurred in connection with the sale of EVERTEC’s shares during the third quarter, operating expenses decreased by $3.6 million when compared with the third quarter of 2013, driven primarily by:

Lower other real estate owned (OREO) expenses by $6.6 million due mainly to lower fair value adjustments related to commercial and construction OREO, consisting primarily of covered assets which are subject to 80% reimbursement from the FDIC, partially offset by higher net losses on sale of commercial and construction OREO’s.
Lower other taxes by $4.1 million related to the 1% gross receipts tax enacted earlier in the year in Puerto Rico, with a corresponding income tax credit of one half percent. During the third quarter the Corporation reclassified the year to date income tax credit from the operating expenses line to income taxes.
Lower loss on early extinguishment of debt of $3.4 million as a result of an early cancellation of $233.2 million in senior notes during the third quarter.
Lower personnel costs by $2.5 million due to lower incentive compensation at BPPR, higher deferred salaries mainly at BPNA due to higher commercial loan originations and lower health and life insurance expenses at both reportable segments due to lower claims activity.

These decreases were partially offset by:

Higher professional services by $5.0 million mainly at BPPR due to higher technology consulting and programming services by $1.6 million, higher legal expenses primarily for the restructuring of covered loans, subject to 80% reimbursement from the FDIC, expenses related to the ongoing arbitration proceedings related to certain loss-share claims under the commercial loss share agreement with the FDIC and higher collection expenses.
Higher other operating expenses by $3.8 million mostly due to higher provision for unused commitments and sundry losses at BPPR.
Higher net occupancy expenses by $2.3 million due to an adjustment related to rent expense reserves at BPNA.
Higher business promotion by $2.0 million mainly at BPPR principally related to various institutional campaigns and customer relationship activities during the holiday season.

Non-personnel credit-related costs, which include collections, appraisals, credit related fees, and OREO expenses, amounted to $20.8 million for the fourth quarter of 2013, compared with $25.2 million for the third quarter of 2013. The decrease was principally due to lower covered OREO expenses as mentioned above.

Full-time equivalent employees (“FTEs”) were 8,059 as of December 31, 2013, compared with 8,094 as of September 30, 2013, and 8,072 as of December 31, 2012. The decrease of 35 FTE’s from the third quarter of 2013 was mainly at the BPPR Retail Banking Division.

For a breakdown of operating expenses by category refer to table B.

Income taxes

Excluding the effect of the sale of EVERTEC shares discussed above, the income tax expense amounted to $21.2 million, for an effective tax rate of 22%, compared to $10.0 million for the third quarter. During the third quarter, the Corporation reclassified $3.3 million of income tax credit related to the gross receipt tax enacted earlier in the year from the operating expenses line to income taxes. Also, during the third quarter the Corporation recorded favorable adjustments which had a combined effect of approximately $15.4 million related to the treatment in its tax return of distributions received from EVERTEC during 2012 and the reversal of uncertain tax positions due to the expiration of the statute of limitations in the Puerto Rico operations. Excluding the impact of these adjustments, the income tax expense for the third quarter would have been $28.7 million, for an effective tax rate of 40%.

Excluding the impact of the adjustments amounting to $15.4 million during the third quarter, the effective tax rate for the year ended December 31, 2013, considering the adjusted pre-tax income as detailed in Table P, was 30%.

Credit Quality

The following table presents non-performing assets information:

Non-Performing Assets
(Unaudited)
(In thousands)	31-Dec-13			30-Sep-13			31-Dec-12
Total non-performing loans held-in-portfolio, excluding covered loans	$	597,948		$	617,573		$	1,425,133
Non-performing loans held-for-sale		1,092			2,099			96,320
Other real estate owned (“OREO”), excluding covered OREO		135,501			135,502			266,844
Total non-performing assets, excluding covered assets		734,541			755,174			1,788,297
Covered loans and OREO		187,261			188,353			213,469
Total non-performing assets	$	921,802		$	943,527		$	2,001,766
Net charge-offs for the quarter (excluding covered loans)	$	35,366		$	57,892		$	100,854


Ratios (excluding covered loans):
Non-performing loans held-in-portfolio to loans held-in-portfolio		2.77	%		2.88	%		6.79	%
Allowance for loan losses to loans held-in-portfolio		2.49			2.46			2.96
Allowance for loan losses to non-performing loans, excluding loans held-for-sale		90.05			85.19			43.62

Refer to Table H for additional information.

Provision for Loan Losses

(Unaudited)	Quarters ended								Years ended
(In thousands)	31-Dec-13			30-Sep-13		31-Dec-12			31-Dec-13			31-Dec-12
Provision (reversal) for loan losses - non-covered loans:
BPPR	$	62,658		$	50,475	$	78,092		$	547,886		$	282,061
BPNA		(14,929	)		4,755		8,164			(14,719	)		52,041
Total provision for loan losses - non-covered loans		47,729			55,230		86,256			533,167			334,102
Provision (reversal) for loan losses - covered loans		8,907			17,433		(3,445	)		69,396			74,839
Total provision for loan losses	$	56,636		$	72,663	$	82,811		$	602,563		$	408,941

Asset quality continued to steadily improve during the fourth quarter of 2013, including further decreases in non-performing loans and net charge-offs, both of which reached new record lows in over five years. These improvements are particularly driven by the US portfolios, as the overall credit quality of the portfolios in the BPPR segment remained stable. The following presents credit quality performance for the fourth quarter of 2013 for the Corporation’s non-covered portfolio.

Non-performing loans held-in-portfolio decreased by $19.6 million, or 3.2%, from the previous quarter, led by declines in the commercial, legacy and construction NPLs, partially offset by higher mortgage NPLs in the BPPR segment. The mortgage NPL increase at BPPR mainly arises from the significant reduction in NPL balances as a result of the bulk sale completed in the second quarter of 2013, which has led to reduced levels of outflows.
Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $20.5 million, or 12.6%, from the previous quarter, principally driven by improvements in the commercial NPL inflows at both the BPPR and BPNA segments. Mortgage NPL inflows remained flat quarter over quarter.

Net charge-offs for the fourth quarter amounted to $35.4 million, or 0.66% of average non-covered loans held-in-portfolio (on an annualized basis), compared to $57.9 million, or 1.08% in the third quarter 2013. The decrease of $22.5 million is mainly driven by higher recoveries of $16.5 million, which include an $8.9 million recovery associated with an opportunistic sale of a portfolio of previously charged-off credit cards and personal loans in the BPPR segment. Excluding the effect of the previously charged-off consumer loans in BPPR, the net charge-offs ratio was 0.83%, an improvement of 25 basis points compared to the third quarter. Refer to Table J for further information on net charge-offs and related ratios.
The allowance for loan losses increased by $12.4 million from the third quarter of 2013, mainly driven by higher reserves in the BPPR segment. The general and specific reserves related to non-covered loans totaled $435.0 million and $103.5 million, respectively, at quarter-end, compared with $418.0 million and $108.1 million, respectively, as of September 30, 2013. The ratio of the allowance for loan losses to loans held-in-portfolio stood at 2.49% in the fourth quarter of 2013, compared to 2.46% on the previous quarter.
The ratio of allowance for loan losses to non-performing loans held-in-portfolio increased to 90.1% from 85.2% in the previous quarter.
The provision for loan losses for the fourth quarter of 2013 declined by $7.5 million, or 13.6%, versus the previous quarter mainly driven by the continued improvements in the credit quality of the US portfolios.

Credit Quality by Segment
(Unaudited)
(In thousands)	Quarters ended
BPPR		31-Dec-13			30-Sep-13			31-Dec-12
Provision for loan losses		$	62,658		$	50,475		$	78,092
Net charge-offs (excludes NPLs sale)			35,256			44,678			78,050
Total non-performing loans held-in-portfolio,
excluding covered loans			447,255			441,253			1,191,982
Allowance/ non-covered loans held-in-portfolio			2.69	%		2.55	%		2.92	%

	Quarters ended
BPNA		31-Dec-13			30-Sep-13			31-Dec-12
Provision for loan losses (reversal of provision)		$	(14,929	)	$	4,755		$	8,164
Net charge-offs			110			13,214			22,804
Total non-performing loans held-in-portfolio,
excluding covered loans			150,693			176,320			233,151
Allowance/ non-covered loans held-in-portfolio			1.95	%		2.20	%		3.07	%

BPPR Segment

Total NPLs held-in-portfolio increased by $6.0 million from the third quarter of 2013, largely driven by higher residential mortgage NPLs of $28.6 million, offset in part by reductions in the commercial and construction NPLs of $18.5 million and $4.9 million, respectively. Although mortgage NPL inflows remained flat, the NPL upward trend stems from reduced level of outflows, reflective of the significant reduction in the NPL balances, which fell to their lowest level in the credit cycle as a result of the bulk sale during the second quarter of 2013.
Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $9.8 million, or 7.2%, from the third quarter of 2013, driven by improvements in the commercial inflows, as the portfolio continues to show improving credit trends.
Net charge-offs decreased by $9.4 million, or 21.1%, from the third quarter of 2013 primarily related to recoveries associated with the sale during the fourth quarter of 2013 of a portfolio of previously charged-off credit cards and personal loans. The ratio of net charge-offs to average loans held-in-portfolio fell to 0.90% on an annualized basis, from 1.15% in the previous quarter. Excluding the effect of the sale, the net charge-off ratio decreased slightly to 1.12% during the fourth quarter.
The allowance for loan losses increased by $27.4 million from the third quarter of 2013. The increase in the ALLL was mostly influenced by the environmental factors adjustment in the allowance methodology considering prevailing economic conditions in Puerto Rico. The allowance for loan losses as a percentage of loans held-in-portfolio increased to 2.69% from 2.55% in the third quarter of 2013.
The ratio of allowance for loan losses to non-performing loans held-in-portfolio increased to 95.4% from 90.5% in the previous quarter.

The provision for loan losses for the fourth quarter of 2013 amounted to $62.7 million, increasing by $12.2 million from the previous quarter.

BPNA Segment

Total NPLs loans held-in-portfolio decreased by $25.6 million, or 14.5%, from the third quarter of 2013, reflective of sustained improvements in credit performance and loan resolutions. Total inflows of non-performing loans held-in-portfolio, excluding consumer loans, decreased by $10.7 million, or 40.2%, from the third quarter of 2013.
Net charge-offs decreased by $13.1 million, or 99.2%, from the previous quarter of 2013, primarily due to lower gross charge-offs in all loan categories, coupled with an increase in recoveries of $7.6 million, or 52.3%, from the third quarter of 2013, both most significantly in the commercial and legacy portfolios. The ratio of net charge-offs to average loans held-in-portfolio dipped to 0.01% on an annualized basis, compared to 0.91% in the previous quarter.
The allowance for loan losses decreased by $15.0 million from the third quarter of 2013 driven by continued credit quality improvements. The allowance for loan losses as a percentage of loans held-in-portfolio decreased to 1.95% from 2.20% in the third quarter of 2013. In light of these improvements, the provision for loan losses in the third quarter of 2013 resulted in a provision release of $14.9 million, resulting in a lower provision by $19.7 million compared to the previous quarter.

Financial Condition Highlights

(Unaudited)
(In thousands)	31-Dec-13		30-Sep-13		31-Dec-12
Total loans held-in-portfolio (net)	$	23,955,738	$	23,860,264	$	24,008,557
Total assets		35,749,298		36,052,116		36,507,535
Deposits		26,711,145		26,395,054		27,000,613
Borrowings		3,645,246		4,164,104		4,430,673
Total liabilities		31,123,093		31,658,231		32,397,535
Stockholders’ equity		4,626,205		4,393,885		4,110,000

Total assets decreased by approximately $302.8 million from the third quarter of 2013 driven by:

A decrease in the covered loan portfolio balance of $91.6 million due to the continuation of loan resolutions and the normal portfolio run-off.
A decrease in the FDIC loss share asset of $376.1 million mainly due to collections and the amortization of the asset, reflecting a decrease in estimated losses during the quarter.
Other assets decreased by $116.0 million due mainly to a reduction in the deferred tax asset of $101.2 million largely related to a positive adjustment in the pension plan liability and a $22.4 million decrease in the investment in EVERTEC, reflecting the impact of their previously mentioned secondary offering during the month of December .

These decreases were partially offset by:

An increase of $158.2 million in investment securities available for sale, primarily due to the purchase of US Agency positions at both BPPR and BPNA, offset by a decrease in CMOs and mortgage backed securities, mainly due to prepayments.
An increase of $183.2 million in non-covered loans held-in-portfolio mainly due to commercial and mortgage loans, offset by a decrease in construction loans at BPPR.

Total liabilities decreased by $535.1 million from the third quarter of 2013, driven by:

A decrease in repurchase agreements and other short-term borrowings of $558.9 million, as part of the Corporation’s normal funding activities.
A decrease of $332.4 million in other liabilities mainly due to $157.9 million in unsettled purchases of trading securities and a decrease of approximately $139.6 million in the pension plan liability resulting from a positive actuarial valuation adjustment.

These decreases were partially offset by:

An increase of $316.1 million in deposits, primarily due to non-brokered time deposits and demand deposits, offset by a decrease in savings and brokered certificates of deposits. Refer to Table G for details of deposit accounts.

Stockholders’ equity increased by $232.3 million from the third quarter of 2013, mainly as a result of the net income for the quarter of $163.0 million and a decrease of $68.3 million in other comprehensive loss due to the net effect of the above mentioned decrease in the pension plan liability, partially offset by net unrealized losses on investment securities available-for-sale. Refer to Table A for capital ratios.

Refer to Table C for the Statements of Financial Condition.

Forward-Looking Statements

The information included in this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in forward-looking statements. Factors that might cause such a difference include, but are not limited to (i) the rate of growth in the economy and employment levels, as well as general business and economic conditions; (ii) changes in interest rates, as well as the magnitude of such changes; (iii) the fiscal and monetary policies of the federal government and its agencies; (iv) changes in federal bank regulatory and supervisory policies, including required levels of capital and the impact of proposed capital standards on our capital ratios; (v) the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on our businesses, business practices and cost of operations; (vi) regulatory approvals that may be necessary to undertake certain actions or consummate strategic transactions such as acquisitions and dispositions; (vii) the relative strength or weakness of the consumer and commercial credit sectors and of the real estate markets in Puerto Rico and the other markets in which borrowers are located; (viii) the performance of the stock and bond markets; (ix) competition in the financial services industry; (x) additional Federal Deposit Insurance Corporation assessments; and (xi) possible legislative, tax or regulatory changes. For a discussion of such factors and certain risks and uncertainties to which the Corporation is subject, see the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2012, as well as its filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, the Corporation assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks among the 40 largest U.S. banks by assets. In the United States, Popular has established a community-banking franchise, doing business as Popular Community Bank, providing a broad range of financial services and products with branches in New York, New Jersey, Illinois, Florida and California.

An electronic version of this press release can be found at the Corporation’s website: www.popular.com.

Popular will hold a conference call to discuss the financial results today Thursday, January 23, 2014 at 10:00 a.m. Eastern time. The call will be broadcast live over the Internet and can be accessed through the investor relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 866-202-3048 or 617-213-8843. The conference code is 59936852.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available from 4:00 p.m. on Thursday, January 23, 2014 to 11:59 p.m. on Thursday, January 30, 2014, at 888-286-8010 or 617-801-6888. The replay passcode is 48357719.

Popular, Inc.

Financial Supplement to Fourth Quarter 2013 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER

Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE

Table F - Mortgage Banking Activities and Other Service Fees

Table G - Loans and Deposits

Table H - Non-Performing Assets

Table I - Activity in Non-Performing Loans

Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios

Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED

Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS

Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS

Table N - Reconciliation to GAAP Financial Measures

Table O - Financial Information - Westernbank Covered Loans

Table P - Adjusted Consolidated Statement of Operations for the Year Ended December 31, 2013 (Non-GAAP)

POPULAR, INC.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)


	Quarters ended									Years ended
	31-Dec-13			30-Sep-13			31-Dec-12			31-Dec-13			31-Dec-12
Net income per common share:

Basic	$	1.58		$	2.22		$	0.81		$	5.80		$	2.36

Diluted	$	1.57		$	2.22		$	0.81		$	5.78		$	2.35

Average common shares outstanding		102,774,144			102,714,262			102,628,274			102,693,685			102,429,755

Average common shares outstanding - assuming dilution		103,081,417			103,017,443			102,801,581			103,061,475			102,653,610

Common shares outstanding at end of period		103,397,699			103,327,146			103,169,806			103,397,699			103,169,806

Market value per common share	$	28.73		$	26.25		$	20.79		$	28.73		$	20.79

Market capitalization - (In millions)	$	2,971		$	2,712		$	2,145		$	2,971		$	2,145

Return on average assets		1.79	%		2.51	%		0.92	%		1.65	%		0.68	%

Return on average common equity		14.59	%		21.64	%		8.50	%		14.43	%		6.37	%

Net interest margin [2]		4.74	%		4.49	%		4.42	%		4.52	%		4.36	%

Common equity per share	$	44.26		$	42.04		$	39.35		$	44.26		$	39.35

Tangible common book value per common share (non-GAAP) [1]	$	37.56		$	35.32		$	32.55		$	37.56		$	32.55

Tangible common equity to tangible assets (non-GAAP) [1]		11.08	%		10.32	%		9.38	%		11.08	%		9.38	%

Tier 1 risk-based capital [3]		19.41	%		18.54	%		17.35	%		19.41	%		17.35	%

Total risk-based capital [3]		20.69	%		19.82	%		18.63	%		20.69	%		18.63	%

Tier 1 leverage [3]		12.85	%		12.26	%		11.52	%		12.85	%		11.52	%

Tier 1 common equity to risk-weighted assets (non-GAAP) [1] [3]		15.03	%		14.20	%		13.18	%		15.03	%		13.18	%
[1] Refer to Table N for Non-GAAP reconciliations.

[2] Not on a taxable equivalent basis.

[3] Capital ratios for the current quarter are estimated.

POPULAR, INC.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
		Quarters ended						Variance			Quarter ended			Variance			Years ended
(In thousands, except per share information)		31-Dec-13			30-Sep-13			Q4 2013 vs.Q3 2013			31-Dec-12			Q4 2013 vs.Q4 2012			31-Dec-13			31-Dec-12
Interest income:
	Loans	$	408,566		$	392,195		$	16,371		$	394,294		$	14,272		$	1,581,612		$	1,560,687
	Money market investments		832			848			(16	)		929			(97	)		3,464			3,703
	Investment securities		34,317			33,561			756			38,420			(4,103	)		141,807			168,632
	Trading account securities		5,361			5,242			119			5,155			206			21,573			22,824
	Total interest income		449,076			431,846			17,230			438,798			10,278			1,748,456			1,755,846
Interest expense:
	Deposits		31,396			31,848			(452	)		40,919			(9,523	)		137,364			184,216
	Short-term borrowings		9,320			9,564			(244	)		10,302			(982	)		38,433			46,805
	Long-term debt		32,018			36,228			(4,210	)		36,160			(4,142	)		140,079			148,192
	Total interest expense		72,734			77,640			(4,906	)		87,381			(14,647	)		315,876			379,213
Net interest income			376,342			354,206			22,136			351,417			24,925			1,432,580			1,376,633
Provision for loan losses - non-covered loans			47,729			55,230			(7,501	)		86,256			(38,527	)		533,167			334,102
Provision for loan losses - covered loans			8,907			17,433			(8,526	)		(3,445	)		12,352			69,396			74,839
Net interest income after provision for loan losses			319,706			281,543			38,163			268,606			51,100			830,017			967,692
Service charges on deposit accounts			42,154			43,096			(942	)		44,449			(2,295	)		172,909			183,026
Other service fees			61,566			58,584			2,982			65,283			(3,717	)		235,125			237,865
Mortgage banking activities			14,392			18,896			(4,504	)		24,373			(9,981	)		71,673			84,791
Net gain (loss) and valuation adjustments on investment securities			2,110			-			2,110			(1,422	)		3,532			7,966			(1,707	)
Trading account (loss) profit			(1,547	)		(6,607	)		5,060			(1,562	)		15			(13,483	)		4,478
Net gain (loss) on sale of loans, including valuation adjustments on loans held-for-sale			5,402			3,454			1,948			3,043			2,359			(49,130	)		(27,416	)
Adjustments (expense) to indemnity reserves on loans sold			(6,892	)		(2,387	)		(4,505	)		(3,208	)		(3,684	)		(37,054	)		(21,198	)
FDIC loss share (expense) income			(37,164	)		(14,866	)		(22,298	)		(36,824	)		(340	)		(82,051	)		(56,211	)
Other operating income			111,169			191,789			(80,620	)		56,348			54,821			504,614			127,584
	Total non-interest income		191,190			291,959			(100,769	)		150,480			40,710			810,569			531,212
Operating expenses:
Personnel costs
	Salaries		75,310			76,735			(1,425	)		74,846			464			299,782			301,965
	Commissions, incentives and other bonuses		13,965			14,457			(492	)		14,817			(852	)		59,437			54,702
	Pension, postretirement and medical insurance		13,948			14,724			(776	)		16,453			(2,505	)		58,658			66,976
	Other personnel costs, including payroll taxes		11,137			10,923			214			10,209			928			43,990			42,059
	Total personnel costs		114,360			116,839			(2,479	)		116,325			(1,965	)		461,867			465,702
Net occupancy expenses			27,039			24,711			2,328			26,116			923			99,331			97,259
Equipment expenses			11,922			11,768			154			11,602			320			47,483			45,290
Other taxes			13,663			17,749			(4,086	)		11,942			1,721			58,286			50,120
Professional fees			76,780			72,039			4,741			77,633			(853	)		289,280			284,325
Communications			6,260			6,558			(298	)		6,558			(298	)		26,294			26,834
Business promotion			17,015			14,982			2,033			16,822			193			60,476			61,576
FDIC deposit insurance			15,630			16,100			(470	)		13,691			1,939			60,513			85,697
Loss on early extinguishment of debt			-			3,388			(3,388	)		12			(12	)		3,388			25,196
Other real estate owned (OREO) expenses			10,558			17,175			(6,617	)		1,079			9,479			80,236			23,520
Credit and debit card processing, volume, interchange and other expenses			5,409			5,076			333			4,646			763			20,812			19,729
Other operating expenses			21,587			17,746			3,841			26,339			(4,752	)		74,737			84,712
Amortization of intangibles			2,480			2,468			12			2,467			13			9,883			10,072
	Total operating expenses		322,703			326,599			(3,896	)		315,232			7,471			1,292,586			1,280,032
Income before income tax			188,193			246,903			(58,710	)		103,854			84,339			348,000			218,872
Income tax expense (benefit)			25,162			17,768			7,394			19,914			5,248			(251,327	)		(26,403	)
Net income		$	163,031		$	229,135		$	(66,104	)	$	83,940		$	79,091		$	599,327		$	245,275
Net income applicable to common stock		$	162,100		$	228,204		$	(66,104	)	$	83,009		$	79,091		$	595,604		$	241,552
Net income per common share - basic		$	1.58		$	2.22		$	(0.64	)	$	0.81		$	0.77		$	5.80		$	2.36
Net income per common share - diluted		$	1.57		$	2.22		$	(0.65	)	$	0.81		$	0.76		$	5.78		$	2.35

Popular, Inc.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
												Variance
												Q4 2013 vs.
(In thousands)			31-Dec-13			30-Sep-13			31-Dec-12			Q3 2013
Assets:
Cash and due from banks			$	423,211		$	368,590		$	439,363		$	54,621
Money market investments				858,453			961,788			1,085,580			(103,335	)
Trading account securities, at fair value				339,743			338,848			314,525			895
Investment securities available-for-sale, at fair value				5,294,800			5,136,618			5,084,201			158,182
Investment securities held-to-maturity, at amortized cost				140,496			140,355			142,817			141
Other investment securities, at lower of cost or realizable value				181,752			198,864			185,443			(17,112	)
Loans held-for-sale, at lower of cost or fair value				110,426			124,532			354,468			(14,106	)
Loans held-in-portfolio:
		Loans not covered under loss sharing agreements with the FDIC		21,704,010			21,520,054			21,080,005			183,956
		Loans covered under loss sharing agreements with the FDIC		2,984,427			3,076,009			3,755,972			(91,582	)
		Less: Unearned income		92,144			92,871			96,813			(727	)
		Allowance for loan losses		640,555			642,928			730,607			(2,373	)
		Total loans held-in-portfolio, net		23,955,738			23,860,264			24,008,557			95,474
FDIC loss share asset				948,608			1,324,711			1,399,098			(376,103	)
Premises and equipment, net				519,516			519,623			535,793			(107	)
Other real estate not covered under loss sharing agreements with the FDIC				135,501			135,502			266,844			(1	)
Other real estate covered under loss sharing agreements with the FDIC				168,007			159,968			139,058			8,039
Accrued income receivable				131,536			122,881			125,728			8,655
Mortgage servicing assets, at fair value				161,099			161,445			154,430			(346	)
Other assets				1,687,523			1,803,478			1,569,578			(115,955	)
Goodwill				647,757			647,757			647,757			-
Other intangible assets				45,132			46,892			54,295			(1,760	)
Total assets			$	35,749,298		$	36,052,116		$	36,507,535		$	(302,818	)
Liabilities and Stockholders’ Equity:
Liabilities:
	Deposits:
		Non-interest bearing	$	5,922,682		$	5,762,554		$	5,794,629		$	160,128
		Interest bearing		20,788,463			20,632,500			21,205,984			155,963
		Total deposits		26,711,145			26,395,054			27,000,613			316,091
Federal funds purchased and assets sold under agreements to repurchase				1,659,292			1,793,208			2,016,752			(133,916	)
Other short-term borrowings				401,200			826,200			636,200			(425,000	)
Notes payable				1,584,754			1,544,696			1,777,721			40,058
Other liabilities				766,702			1,099,073			966,249			(332,371	)
Total liabilities				31,123,093			31,658,231			32,397,535			(535,138	)
Stockholders’ equity:
Preferred stock				50,160			50,160			50,160			-
Common stock				1,034			1,034			1,032			-
Surplus				4,170,152			4,155,244			4,150,294			14,908
Retained earnings				594,430			445,330			11,826			149,100
Treasury stock				(880	)		(877	)		(444	)		(3	)
Accumulated other comprehensive loss				(188,691	)		(257,006	)		(102,868	)		68,315
		Total stockholders’ equity		4,626,205			4,393,885			4,110,000			232,320
Total liabilities and stockholders’ equity			$	35,749,298		$	36,052,116		$	36,507,535		$	(302,818	)

Popular, Inc.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER
(Unaudited)

			Quarter ended				Quarter ended				Quarter ended				Variance				Variance
			31-Dec-13				30-Sep-13				31-Dec-12				Q4 2013 vs. Q3 2013				Q4 2013 vs. Q4 2012
($ amounts in millions; yields not on a taxable equivalent basis)			Average balance	Income / Expense	Yield / Rate		Average balance	Income/ Expense	Yield / Rate		Average balance	Income / Expense	Yield / Rate		Average balance	Income / Expense	Yield / Rate		Average balance	Income / Expense	Yield / Rate
Assets:
Interest earning assets:
	Money market, trading and investment securities		$7,038	$40.5	2.30	%	$6,813	$39.7	2.32	%	$6,693	$44.5	2.66	%	$225	$0.8	(0.02)	%	$345	($4.0)	(0.36)	%
	Loans not covered under loss sharing agreements with the FDIC:
		Commercial	10,097	122.6	4.82		10,107	126.0	4.95		10,200	124.1	4.84		(10)	(3.4)	(0.13)		(103)	(1.5)	(0.02)
		Construction	291	4.8	6.58		319	4.3	5.30		386	3.3	3.44		(28)	0.5	1.28		(95)	1.5	3.14
		Mortgage	6,688	87.1	5.21		6,633	81.7	4.93		6,169	81.0	5.25		55	5.4	0.28		519	6.1	(0.04)
		Consumer	3,906	96.7	9.82		3,906	97.6	9.91		3,835	97.5	10.11		-	(0.9)	(0.09)		71	(0.8)	(0.29)
		Lease financing	538	10.5	7.79		537	10.9	8.08		540	11.4	8.48		1	(0.4)	(0.29)		(2)	(0.9)	(0.69)
		Total loans not covered under loss sharing agreements with the FDIC	21,520	321.7	5.95		21,502	320.5	5.93		21,130	317.3	5.98		18	1.2	0.02		390	4.4	(0.03)
	Loans covered under loss sharing agreements with the FDIC		3,017	86.8	11.43		3,119	71.6	9.13		3,832	77.0	8.01		(102)	15.2	2.30		(815)	9.8	3.42
	Total loans		24,537	408.5	6.62		24,621	392.1	6.33		24,962	394.3	6.29		(84)	16.4	0.29		(425)	14.2	0.33
	Total interest earning assets		31,575	$449.0	5.66	%	31,434	$431.8	5.47	%	31,655	$438.8	5.52	%	141	$17.2	0.19	%	(80)	$10.2	0.14	%
		Allowance for loan losses	(632)				(632)				(754)				-				122
		Other non-interest earning assets	5,092				5,372				5,400				(280)				(308)
	Total average assets		$36,035				$36,174				$36,301				($139)				($266)

Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$5,653	$4.4	0.31	%	$5,766	$4.1	0.29	%	$5,707	$6.1	0.43	%	($113)	$0.3	0.02	%	($54)	($1.7)	(0.12)	%
		Savings	6,872	3.8	0.22		6,828	3.7	0.21		6,654	4.8	0.29		44	0.1	0.01		218	(1.0)	(0.07)
		Time deposits	8,381	23.2	1.10		8,231	24.0	1.16		8,650	30.0	1.38		150	(0.8)	(0.06)		(269)	(6.8)	(0.28)
		Total interest bearing deposits	20,906	31.4	0.60		20,825	31.8	0.61		21,011	40.9	0.77		81	(0.4)	(0.01)		(105)	(9.5)	(0.17)
	Borrowings		3,795	41.3	4.35		4,404	45.8	4.15		4,704	46.5	3.94		(609)	(4.5)	0.20		(909)	(5.2)	0.41
		Total interest bearing liabilities	24,701	72.7	1.17		25,229	77.6	1.23		25,715	87.4	1.35		(528)	(4.9)	(0.06)		(1,014)	(14.7)	(0.18)
		Net interest spread			4.49	%			4.24	%			4.17	%			0.25	%			0.32	%
	Non-interest bearing deposits		5,829				5,741				5,583				88				246
	Other liabilities		1,046				969				1,067				77				(21)
	Stockholders' equity		4,459				4,235				3,936				224				523
		Total average liabilities and stockholders' equity	$36,035				$36,174				$36,301				($139)				($266)

Net interest income / margin non-taxable equivalent basis				$376.3	4.74	%		$354.2	4.49	%		$351.4	4.42	%		$22.1	0.25	%		$24.9	0.32	%

Popular, Inc.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE
(Unaudited)

			Year ended				Year ended
			31-Dec-13				31-Dec-12				Variance
			Average	Income /	Yield /		Average	Income /	Yield /		Average	Income /	Yield /
($ amounts in millions; yields not on a taxable equivalent basis)			balance	Expense	Rate		balance	Expense	Rate		balance	Expense	Rate
Assets:
Interest earning assets:
	Money market, trading and investment securities		$6,941	$166.8	2.40	%	$6,724	$195.1	2.90	%	$217	($28.3)	(0.50)	%
	Loans not covered under loss sharing agreements with the FDIC:
		Commercial	10,077	491.5	4.88		10,226	501.7	4.91		(149)	(10.2)	(0.03)
		Construction	323	16.3	5.04		459	16.6	3.61		(136)	(0.3)	1.43
		Mortgage	6,688	343.4	5.13		5,817	314.9	5.41		871	28.5	(0.28)
		Consumer	3,879	386.3	9.96		3,749	379.1	10.11		130	7.2	(0.15)
		Lease financing	540	43.5	8.07		545	47.0	8.62		(5)	(3.5)	(0.55)
		Total loans not covered under loss sharing agreements with the FDIC	21,507	1,281.0	5.96		20,796	1,259.3	6.06		711	21.7	(0.10)
	Loans covered under loss sharing agreements with the FDIC		3,228	300.7	9.32		4,050	301.4	7.44		(822)	(0.7)	1.88
	Total loans		24,735	1,581.7	6.39		24,846	1,560.7	6.28		(111)	21.0	0.11
	Total interest earning assets		31,676	$1,748.5	5.52	%	31,570	$1,755.8	5.56	%	106	($7.3)	(0.04)	%
		Allowance for loan losses	(649)				(772)				123
		Other non-interest earning assets	5,240				5,466				(226)
	Total average assets		$36,267				$36,264				$3

Liabilities and Stockholders' Equity:
	Interest bearing deposits:
		NOW and money market	$5,738	$19.5	0.34	%	$5,555	$24.6	0.44	%	$183	($5.1)	(0.10)	%
		Savings	6,792	16.0	0.24		6,571	21.8	0.33		221	(5.8)	(0.09)
		Time deposits	8,514	101.9	1.20		9,421	137.8	1.46		(907)	(35.9)	(0.26)
		Total interest bearing deposits	21,044	137.4	0.65		21,547	184.2	0.85		(503)	(46.8)	(0.20)
	Borrowings		4,293	178.5	4.16		4,416	195.0	4.42		(123)	(16.5)	(0.26)
		Total interest bearing liabilities	25,337	315.9	1.25		25,963	379.2	1.46		(626)	(63.3)	(0.21)
		Net interest spread			4.27	%			4.10	%			0.17	%
	Non-interest bearing deposits		5,728				5,357				371
	Other liabilities		1,026				1,100				(74)
	Stockholders' equity		4,176				3,844				332
		Total average liabilities and stockholders' equity	$36,267				$36,264				$3

Net interest income / margin non-taxable equivalent basis				$1,432.6	4.52	%		$1,376.6	4.36	%		$56.0	0.16	%

Popular, Inc.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table F - Mortgage Banking Activities and Other Service Fees
(Unaudited)

Mortgage Banking Activities					Variance
		Quarters ended			Q4 2013 vs.	Q4 2013 vs.	Years ended		Variance
(In thousands)		31-Dec-13	30-Sep-13	31-Dec-12	Q3 2013	Q4 2012	31-Dec-13	31-Dec-12	2013 vs. 2012
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$ 11,371	$ 11,547	$ 11,837	$ (176)	$ (466)	$ 45,481	$ 48,176	$ (2,695)
	Mortgage servicing rights fair value adjustments	(4,541)	3,879	(10,189)	(8,420)	5,648	(11,403)	(17,406)	6,003
Total mortgage servicing fees, net of fair value adjustments		6,830	15,426	1,648	(8,596)	5,182	34,078	30,770	3,308
Net gain (loss) on sale of loans, including valuation on loans		9,751	3,559	27,153	6,192	(17,402)	26,719	76,181	(49,462)
Trading account (loss) profit:
	Unrealized gain (losses) on outstanding derivative positions	1,011	(865)	458	1,876	553	746	304	442
	Realized gain (losses) on closed derivative positions	(3,200)	776	(4,886)	(3,976)	1,686	10,130	(22,464)	32,594
Total trading account (loss) profit		(2,189)	(89)	(4,428)	(2,100)	2,239	10,876	(22,160)	33,036
Total mortgage banking activities		$ 14,392	$ 18,896	$ 24,373	$ (4,504)	$ (9,981)	$ 71,673	$ 84,791	$ (13,118)


Other Service Fees					Variance
		Quarters ended			Q4 2013 vs.	Q4 2013 vs.	Years ended		Variance
(In thousands)		31-Dec-13	30-Sep-13	31-Dec-12	Q3 2013	Q4 2012	31-Dec-13	31-Dec-12	2013 vs. 2012
Other service fees:
	Debit card fees	$ 11,124	$ 11,005	$ 11,629	$ 119	$ (505)	$ 43,262	$ 44,852	$ (1,590)
	Insurance fees	17,530	13,255	17,050	4,275	480	55,323	53,825	1,498
	Credit card fees	17,328	16,890	17,193	438	135	66,309	61,576	4,733
	Sale and administration of investment products	7,331	8,981	9,721	(1,650)	(2,390)	35,272	37,766	(2,494)
	Trust fees	4,525	4,148	4,226	377	299	17,285	16,353	932
	Processing fees	-	-	1,511	-	(1,511)	-	6,330	(6,330)
	Other fees	3,728	4,305	3,953	(577)	(225)	17,674	17,163	511
Total other service fees		$ 61,566	$ 58,584	$ 65,283	$ 2,982	$ (3,717)	$ 235,125	$ 237,865	$ (2,740)

Popular, Inc.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table G - Loans and Deposits
(Unaudited)

Loans - Ending Balances
				Variance
(In thousands)	31-Dec-13	30-Sep-13	31-Dec-12	Q4 2013 vs. Q3 2013	Q4 2013 vs. Q4 2012
Loans not covered under FDIC loss sharing agreements:
Commercial	$ 10,037,184	$ 9,845,477	$ 9,858,202	$ 191,707	$ 178,982
Construction	206,084	293,220	252,857	(87,136)	(46,773)
Legacy [1]	211,135	235,645	384,217	(24,510)	(173,082)
Lease financing	543,761	539,290	540,523	4,471	3,238
Mortgage	6,681,476	6,613,133	6,078,507	68,343	602,969
Consumer	3,932,226	3,900,418	3,868,886	31,808	63,340
Total non-covered loans held-in-portfolio	$ 21,611,866	$ 21,427,183	$ 20,983,192	$ 184,683	$ 628,674
Loans covered under FDIC loss sharing agreements	2,984,427	3,076,009	3,755,972	(91,582)	(771,545)
Total loans held-in-portfolio	$ 24,596,293	$ 24,503,192	$ 24,739,164	$ 93,101	$ (142,871)
Loans held-for-sale:
Commercial	$ 603	$ -	$ 16,047	$ 603	$ (15,444)
Construction	-	-	78,140	-	(78,140)
Legacy [1]	-	1,680	2,080	(1,680)	(2,080)
Mortgage	109,823	122,852	258,201	(13,029)	(148,378)
Total loans held-for-sale	$ 110,426	$ 124,532	$ 354,468	$ (14,106)	$ (244,042)
Total loans	$ 24,706,719	$ 24,627,724	$ 25,093,632	$ 78,995	$ (386,913)
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.

Deposits - Ending Balances
				Variance
(In thousands)	31-Dec-13	30-Sep-13	31-Dec-12	Q4 2013 vs. Q3 2013	Q4 2013 vs. Q4 2012
Demand deposits [1]	$ 6,590,963	$ 6,410,458	$ 6,442,739	$ 180,505	$ 148,224
Savings, NOW and money market deposits (non-brokered)	11,255,309	11,335,441	11,190,335	(80,132)	64,974
Savings, NOW and money market deposits (brokered)	553,521	552,053	456,830	1,468	96,691
Time deposits (non-brokered)	6,478,103	6,181,676	6,541,660	296,427	(63,557)
Time deposits (brokered CDs)	1,833,249	1,915,426	2,369,049	(82,177)	(535,800)
Total deposits	$ 26,711,145	$ 26,395,054	$ 27,000,613	$ 316,091	$ (289,468)
[1] Includes interest and non-interest demand bearing deposits.

Popular, Inc.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table H - Non-Performing Assets
(Unaudited)
										Variance
(Dollars in thousands)	31-Dec-13	As a % of loans HIP by category		30-Sep-13	As a % of loans HIP by category		31-Dec-12	As a % of loans HIP by category		Q4 2013 vs. Q3 2013	Q4 2013 vs. Q4 2012
Non-accrual loans:
Commercial	$ 279,053	2.8	%	$ 316,040	3.2	%	$ 665,289	6.7	%	$ (36,987)	$ (386,236)
Construction	23,771	11.5		28,782	9.8		43,350	17.1		(5,011)	(19,579)
Legacy [1]	15,050	7.1		24,206	10.3		40,741	10.6		(9,156)	(25,691)
Lease financing	3,495	0.6		3,716	0.7		4,865	0.9		(221)	(1,370)
Mortgage	232,681	3.5		203,208	3.1		630,130	10.4		29,473	(397,449)
Consumer	43,898	1.1		41,621	1.1		40,758	1.1		2,277	3,140
Total non-performing loans held-in-
portfolio, excluding covered loans	597,948	2.8	%	617,573	2.9	%	1,425,133	6.8	%	(19,625)	(827,185)
Non-performing loans held-for-sale [2]	1,092			2,099			96,320			(1,007)	(95,228)
Other real estate owned (“OREO”),
excluding covered OREO	135,501			135,502			266,844			(1)	(131,343)
Total non-performing assets,
excluding covered assets	734,541			755,174			1,788,297			(20,633)	(1,053,756)
Covered loans and OREO	187,261			188,353			213,469			(1,092)	(26,208)
Total non-performing assets	$ 921,802			$ 943,527			$ 2,001,766			$ (21,725)	$ (1,079,964)
Accruing loans past due 90 days or more [3]	$ 418,028			$ 414,189			$ 388,712			$ 3,839	$ 29,316
Ratios excluding covered loans:
Non-performing loans held-in-portfolio
to loans held-in-portfolio	2.77	%		2.88	%		6.79	%
Allowance for loan losses to loans
held-in-portfolio	2.49			2.46			2.96
Allowance for loan losses to
non-performing loans, excluding loans
held-for-sale	90.05			85.19			43.62
Ratios including covered loans:
Non-performing assets to total assets	2.58	%		2.62	%		5.48	%
Non-performing loans held-in-portfolio
to loans held-in-portfolio	2.51			2.64			6.06
Allowance for loan losses to loans
held-in-portfolio	2.60			2.62			2.95
Allowance for loan losses to non-performing
loans, excluding loans held-for-sale	103.78			99.53			48.72
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.

[2] Non-performing loans held-for-sale as of December 31, 2013 consisted of $603 thousand in commercial loans and $489 thousand in mortgage loans (September 30, 2013 - $1.7 million in legacy loans and $0.4 million in mortgage loans; December 31, 2012 - $78 million in construction loans, $16 million in commercial loans, $2 million in legacy loans and $53 thousand in mortgage loans).

[3] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to nonperforming since the principal repayment is insured. These balances include $111 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2013.

Popular, Inc.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table I - Activity in Non-Performing Loans
(Unaudited)

Commercial loans held-in-portfolio:
		Quarter ended			Quarter ended
		31-Dec-13			30-Sep-13
(In thousands)		BPPR	BPNA	Popular, Inc.	BPPR	BPNA	Popular, Inc.
Beginning balance NPLs		$ 204,569	$ 111,471	$ 316,040	$ 199,720	$ 123,435	$ 323,155
Plus:
	New non-performing loans	31,649	7,905	39,554	40,257	17,898	58,155
	Advances on existing non-performing loans	-	5	5	-	304	304
Less:
	Non-performing loans transferred to OREO	(4,800)	(505)	(5,305)	(811)	(1,036)	(1,847)
	Non-performing loans charged-off	(21,548)	(10,359)	(31,907)	(17,773)	(9,572)	(27,345)
	Loans returned to accrual status / loan collections	(23,773)	(14,682)	(38,455)	(16,824)	(19,073)	(35,897)
	Loans transferred to held-for-sale	-	(879)	(879)	-	(485)	(485)
Ending balance NPLs		$ 186,097	$ 92,956	$ 279,053	$ 204,569	$ 111,471	$ 316,040

Construction loans held-in-portfolio:
		Quarter ended			Quarter ended
		31-Dec-13			30-Sep-13
(In thousands)		BPPR	BPNA	Popular, Inc.	BPPR	BPNA	Popular, Inc.
Beginning balance NPLs		$ 23,019	$ 5,763	$ 28,782	$ 39,044	$ 5,834	$ 44,878
Plus:
	New non-performing loans	-	-	-	2,000	-	2,000
Less:
	Non-performing loans transferred to OREO	-	-	-	(775)	-	(775)
	Non-performing loans charged-off	(1,511)	-	(1,511)	(1,442)	-	(1,442)
	Loans returned to accrual status / loan collections	(3,400)	(100)	(3,500)	(15,808)	(71)	(15,879)
Ending balance NPLs		$ 18,108	$ 5,663	$ 23,771	$ 23,019	$ 5,763	$ 28,782

Mortgage loans held-in-portfolio:
		Quarter ended			Quarter ended
		31-Dec-13			30-Sep-13
(In thousands)		BPPR	BPNA	Popular, Inc.	BPPR	BPNA	Popular, Inc.
Beginning balance NPLs		$ 177,835	$ 25,373	$ 203,208	$ 144,717	$ 27,105	$ 171,822
Plus:
	New non-performing loans	94,721	5,593	100,314	93,867	5,265	99,132
Less:
	Non-performing loans transferred to OREO	(3,691)	(710)	(4,401)	(3,161)	(1,236)	(4,397)
	Non-performing loans charged-off	(5,787)	(825)	(6,612)	(5,539)	(1,791)	(7,330)
	Loans returned to accrual status / loan collections	(56,689)	(3,139)	(59,828)	(52,049)	(3,970)	(56,019)
Ending balance NPLs		$ 206,389	$ 26,292	$ 232,681	$ 177,835	$ 25,373	$ 203,208

Legacy loans held-in-portfolio:
		Quarter ended			Quarter ended
		31-Dec-13			30-Sep-13
(In thousands)		BPPR	BPNA	Popular, Inc.	BPPR	BPNA	Popular, Inc.
Beginning balance NPLs		$ -	$ 24,206	$ 24,206	$ -	$ 28,434	$ 28,434
Plus:
	New non-performing loans	-	2,449	2,449	-	3,168	3,168
	Advances on existing non-performing loans	-	45	45	-	97	97
Less:
	Non-performing loans charged-off	-	(3,740)	(3,740)	-	(5,013)	(5,013)
	Loans returned to accrual status / loan collections	-	(7,910)	(7,910)	-	(2,480)	(2,480)
Ending balance NPLs		$ -	$ 15,050	$ 15,050	$ -	$ 24,206	$ 24,206

Total non-performing loans held-in-portfolio (excluding consumer loans):
		Quarter ended			Quarter ended
		31-Dec-13			30-Sep-13
(In thousands)		BPPR	BPNA	Popular, Inc.	BPPR	BPNA	Popular, Inc.
Beginning balance NPLs		$ 405,423	$ 166,813	$ 572,236	$ 383,481	$ 184,808	$ 568,289
Plus:
	New non-performing loans	126,370	15,947	142,317	136,124	26,331	162,455
	Advances on existing non-performing loans	-	50	50	-	401	401
Less:
	Non-performing loans transferred to OREO	(8,491)	(1,215)	(9,706)	(4,747)	(2,272)	(7,019)
	Non-performing loans charged-off	(28,846)	(14,924)	(43,770)	(24,754)	(16,376)	(41,130)
	Loans returned to accrual status / loan collections	(83,862)	(25,831)	(109,693)	(84,681)	(25,594)	(110,275)
	Loans transferred to held-for-sale	-	(879)	(879)	-	(485)	(485)
Ending balance NPLs		$ 410,594	$ 139,961	$ 550,555	$ 405,423	$ 166,813	$ 572,236

Popular, Inc.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)


	Quarter ended					Quarter ended					Quarter ended
	31-Dec-13					30-Sep-13					31-Dec-12
(Dollars in thousands)	Non-covered loans		Covered loans	Total		Non-covered loans		Covered loans	Total		Non-covered loans		Covered loans	Total
Balance at beginning of period	$ 526,100		$ 116,828	$ 642,928		$ 528,762		$ 106,457	$ 635,219		$ 636,299		$ 124,873	$ 761,172
Provision for loan losses	47,729		8,907	56,636		55,230		17,433	72,663		86,256		(3,445)	82,811
	573,829		125,735	699,564		583,992		123,890	707,882		722,555		121,428	843,983
Net loans charged-off (recovered):
BPPR
Commercial	15,177		13,433	28,610		16,145		2,533	18,678		41,540		492	42,032
Construction	(1,796)		6,067	4,271		(4,906)		2,893	(2,013)		(2,371)		7,561	5,190
Lease financing	838		-	838		470		-	470		516		-	516
Mortgage	6,981		4,729	11,710		11,393		1,579	12,972		17,310		885	18,195
Consumer	14,056		(586)	13,470		21,576		57	21,633		21,055		3,584	24,639
Total BPPR	35,256		23,643	58,899		44,678		7,062	51,740		78,050		12,522	90,572

BPNA
Commercial	159		-	159		4,543		-	4,543		7,044		-	7,044
Construction	-		-	-		-		-	-		239		-	239
Legacy [1]	(5,118)		-	(5,118)		2,321		-	2,321		3,369		-	3,369
Mortgage	660		-	660		1,334		-	1,334		3,023		-	3,023
Consumer	4,409		-	4,409		5,016		-	5,016		9,129		-	9,129
Total BPNA	110		-	110		13,214		-	13,214		22,804		-	22,804
Total loans charged-off (recovered) - Popular, Inc.	35,366		23,643	59,009		57,892		7,062	64,954		100,854		12,522	113,376
Balance at end of period	$ 538,463		$ 102,092	$ 640,555		$ 526,100		$ 116,828	$ 642,928		$ 621,701		$ 108,906	$ 730,607

POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio	0.66	%		0.97	%	1.08	%		1.06	%	1.94	%		1.84	%
Provision for loan losses to net charge-offs [2]	1.35	x		0.96	x	0.95	x		1.12	x	0.86	x		0.73	x

BPPR
Annualized net charge-offs to average loans held-in-portfolio	0.90	%		1.26	%	1.15	%		1.11	%	2.07	%		1.91	%
Provision for loan losses to net charge-offs [2]	1.78	x		1.22	x	1.13	x		1.31	x	1.00	x		0.82	x

BPNA
Annualized net charge-offs to average loans held-in-portfolio				0.01	%				0.91	%				1.60	%
Provision (reversal) for loan losses to net charge-offs				(135.72)	x				0.36	x				0.36	x
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.


	Year ended					Year ended
(Dollars in thousands)	31-Dec-13					31-Dec-12
	Non-covered loans		Covered loans	Total		Non-covered loans		Covered loans	Total
Balance at beginning of period	$ 621,701		$ 108,906	$ 730,607		$ 690,363		$ 124,945	$ 815,308
Provision for loan losses	533,167		69,396	602,563		334,102		74,839	408,941
	1,154,868		178,302	1,333,170		1,024,465		199,784	1,224,249
BPPR
Commercial	85,601		27,607	113,208		144,640		46,259	190,899
Construction	(8,642)		34,108	25,466		(2,283)		30,495	28,212
Lease financing	3,506		-	3,506		943		-	943
Mortgage	47,736		10,614	58,350		56,777		5,909	62,686
Consumer	75,560		3,881	79,441		90,095		8,215	98,310
Total BPPR	203,761		76,210	279,971		290,172		90,878	381,050

BPNA
Commercial	23,368		-	23,368		44,653		-	44,653
Construction	-		-	-		400		-	400
Legacy [1]	(2,583)		-	(2,583)		16,338		-	16,338
Mortgage	7,803		-	7,803		15,163		-	15,163
Consumer	21,411		-	21,411		36,004		-	36,004
Total BPNA	49,999		-	49,999		112,558		-	112,558
Total loans charged-off (recovered) - Popular, Inc.	253,760		76,210	329,970		402,730		90,878	493,608
Net write-downs [3]	(362,645)		-	(362,645)		(34)		-	(34)
Balance at end of period	$ 538,463		$ 102,092	$ 640,555		$ 621,701		$ 108,906	$ 730,607

POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio	1.19	%		1.34	%	1.97	%		2.01	%
Provision for loan losses to net charge-offs [2]	0.85	x		0.86	x	0.83	x		0.83	x

BPPR
Annualized net charge-offs to average loans held-in-portfolio	1.30	%		1.49	%	1.96	%		2.02	%
Provision for loan losses to net charge-offs [2]	1.13	x		1.07	x	0.97	x		0.94	x

BPNA
Annualized net charge-offs to average loans held-in-portfolio				0.87	%				1.98	%
Provision (reversal) for loan losses to net charge-offs				(0.29)	x				0.46	x
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.

[2] Excluding provision for loan losses and net write-down related to the asset sale during the year ended December 31, 2013.

[3] Net write-downs for the year ended December 31, 2013 are related to loans sold.

Popular, Inc.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED
(Unaudited)


31-Dec-13
(Dollars in thousands)		Commercial		Construction		Legacy [3]		Mortgage		Lease financing		Consumer		Total	[2]
Specific ALLL		$ 16,409		$ 177		$ -		$ 55,667		$ 1,053		$ 30,200		$ 103,506
Impaired loans	[1]	$ 297,516		$ 22,486		$ 6,045		$ 452,073		$ 2,893		$ 127,703		$ 908,716
Specific ALLL to impaired loans	[1]	5.52	%	0.79	%	-	%	12.31	%	36.40	%	23.65	%	11.39	%
General ALLL		$ 158,573		$ 5,165		$ 13,704		$ 101,262		$ 9,569		$ 146,684		$ 434,957
Loans held-in-portfolio, excluding impaired loans	[1]	$ 9,739,669		$ 183,598		$ 205,090		$ 6,229,403		$ 540,868		$ 3,804,523		$ 20,703,151
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]	1.63	%	2.81	%	6.68	%	1.63	%	1.77	%	3.86	%	2.10	%
Total ALLL		$ 174,982		$ 5,342		$ 13,704		$ 156,929		$ 10,622		$ 176,884		$ 538,463
Total non-covered loans held-in-portfolio	[1]	$ 10,037,185		$ 206,084		$ 211,135		$ 6,681,476		$ 543,761		$ 3,932,226		$ 21,611,867
ALLL to loans held-in-portfolio	[1]	1.74	%	2.59	%	6.49	%	2.35	%	1.95	%	4.50	%	2.49	%
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.

[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of December 31, 2013 the general allowance on the covered loans amounted to $101.8 million, while the specific reserve amounted to $0.3 million.

[3] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.

30-Sep-13
(Dollars in thousands)		Commercial		Construction		Legacy [3]		Mortgage		Lease financing		Consumer		Total	[2]
Specific ALLL		$ 20,836		$ 588		$ -		$ 53,782		$ 1,197		$ 31,662		$ 108,065
Impaired loans	[1]	$ 338,829		$ 27,492		$ 11,597		$ 443,186		$ 3,159		$ 129,859		$ 954,122
Specific ALLL to impaired loans	[1]	6.15	%	2.14	%	-	%	12.14	%	37.89	%	24.38	%	11.33	%
General ALLL		$ 136,476		$ 9,032		$ 16,696		$ 107,941		$ 9,494		$ 138,396		$ 418,035
Loans held-in-portfolio, excluding impaired loans	[1]	$ 9,506,648		$ 265,728		$ 224,048		$ 6,169,947		$ 536,131		$ 3,770,559		$ 20,473,061
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]	1.44	%	3.40	%	7.45	%	1.75	%	1.77	%	3.67	%	2.04	%
Total ALLL		$ 157,312		$ 9,620		$ 16,696		$ 161,723		$ 10,691		$ 170,058		$ 526,100
Total non-covered loans held-in-portfolio	[1]	$ 9,845,477		$ 293,220		$ 235,645		$ 6,613,133		$ 539,290		$ 3,900,418		$ 21,427,183
ALLL to loans held-in-portfolio	[1]	1.60	%	3.28	%	7.09	%	2.45	%	1.98	%	4.36	%	2.46	%
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.

[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of September 30, 2013, the general allowance on the covered loans amounted to $113 million, while the specific reserve amounted to $4 million.

[3] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.



Variance
(Dollars in thousands)	Commercial	Construction	Legacy	Mortgage	Lease financing	Consumer	Total
Specific ALLL	$ (4,427)	$ (411)	$ -	$ 1,885	$ (144)	$ (1,462)	$ (4,559)
Impaired loans	$ (41,313)	$ (5,006)	$ (5,552)	$ 8,887	$ (266)	$ (2,156)	$ (45,406)
General ALLL	$ 22,097	$ (3,867)	$ (2,992)	$ (6,679)	$ 75	$ 8,288	$ 16,922
Loans held-in-portfolio, excluding impaired loans	$ 233,021	$ (82,130)	$ (18,958)	$ 59,456	$ 4,737	$ 33,964	$ 230,090
Total ALLL	$ 17,670	$ (4,278)	$ (2,992)	$ (4,794)	$ (69)	$ 6,826	$ 12,363
Total non-covered loans held-in-portfolio	$ 191,708	$ (87,136)	$ (24,510)	$ 68,343	$ 4,471	$ 31,808	$ 184,684

Popular, Inc.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS
(Unaudited)

31-Dec-13
Puerto Rico
(In thousands)		Commercial	Construction	Mortgage	Lease financing	Consumer	Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$ 16,409	$ 177	$ 38,034	$ 1,053	$ 29,920	$ 85,593
	General ALLL non-covered loans	111,741	4,918	92,296	9,569	122,658	341,182
ALLL - non-covered loans		128,150	5,095	130,330	10,622	152,578	426,775
	Specific ALLL covered loans	153	140	-	-	-	293
	General ALLL covered loans	42,045	19,351	36,006	-	4,397	101,799
ALLL - covered loans		42,198	19,491	36,006	-	4,397	102,092
Total ALLL		$ 170,348	$ 24,586	$ 166,336	$ 10,622	$ 156,975	$ 528,867
Loans held-in-portfolio:
	Impaired non-covered loans	$ 245,380	$ 16,823	$ 399,347	$ 2,893	$ 125,342	$ 789,785
	Non-covered loans held-in-portfolio, excluding impaired loans	6,220,210	144,348	5,001,332	540,868	3,191,296	15,098,054
Non-covered loans held-in-portfolio		6,465,590	161,171	5,400,679	543,761	3,316,638	15,887,839
	Impaired covered loans	27,342	-	-	-	-	27,342
	Covered loans held-in-portfolio, excluding impaired loans	1,785,462	190,127	934,373	-	47,123	2,957,085
Covered loans held-in-portfolio		1,812,804	190,127	934,373	-	47,123	2,984,427
Total loans held-in-portfolio		$ 8,278,394	$ 351,298	$ 6,335,052	$ 543,761	$ 3,363,761	$ 18,872,266

30-Sep-13
Puerto Rico
(In thousands)		Commercial	Construction	Mortgage	Lease financing	Consumer	Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$ 20,836	$ 588	$ 36,227	$ 1,197	$ 31,338	$ 90,186
	General ALLL non-covered loans	82,468	8,718	95,668	9,494	112,839	309,187
ALLL - non-covered loans		103,304	9,306	131,895	10,691	144,177	399,373
	Specific ALLL covered loans	1,683	1,944	-	-	-	3,627
	General ALLL covered loans	56,813	16,674	32,175	-	7,539	113,201
ALLL - covered loans		58,496	18,618	32,175	-	7,539	116,828
Total ALLL		$ 161,800	$ 27,924	$ 164,070	$ 10,691	$ 151,716	$ 516,201
Loans held-in-portfolio:
	Impaired non-covered loans	$ 276,824	$ 21,729	$ 390,319	$ 3,159	$ 127,389	$ 819,420
	Non-covered loans held-in-portfolio, excluding impaired loans	5,978,200	230,141	4,953,363	536,131	3,147,132	14,844,967
Non-covered loans held-in-portfolio		6,255,024	251,870	5,343,682	539,290	3,274,521	15,664,387
	Impaired covered loans	35,264	-	-	-	-	35,264
	Covered loans held-in-portfolio, excluding impaired loans	1,818,587	201,437	965,779	-	54,942	3,040,745
Covered loans held-in-portfolio		1,853,851	201,437	965,779	-	54,942	3,076,009
Total loans held-in-portfolio		$ 8,108,875	$ 453,307	$ 6,309,461	$ 539,290	$ 3,329,463	$ 18,740,396


Variance
(In thousands)		Commercial	Construction	Mortgage	Lease financing	Consumer	Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$ (4,427)	$ (411)	$ 1,807	$ (144)	$ (1,418)	$ (4,593)
	General ALLL non-covered loans	29,273	(3,800)	(3,372)	75	9,819	31,995
ALLL - non-covered loans		24,846	(4,211)	(1,565)	(69)	8,401	27,402
	Specific ALLL covered loans	(1,530)	(1,804)	-	-	-	(3,334)
	General ALLL covered loans	(14,768)	2,677	3,831	-	(3,142)	(11,402)
ALLL - covered loans		(16,298)	873	3,831	-	(3,142)	(14,736)
Total ALLL		$ 8,548	$ (3,338)	$ 2,266	$ (69)	$ 5,259	$ 12,666
Loans held-in-portfolio:
	Impaired non-covered loans	$ (31,444)	$ (4,906)	$ 9,028	$ (266)	$ (2,047)	$ (29,635)
	Non-covered loans held-in-portfolio, excluding impaired loans	242,010	(85,793)	47,969	4,737	44,164	253,087
Non-covered loans held-in-portfolio		210,566	(90,699)	56,997	4,471	42,117	223,452
	Impaired covered loans	(7,922)	-	-	-	-	(7,922)
	Covered loans held-in-portfolio, excluding impaired loans	(33,125)	(11,310)	(31,406)	-	(7,819)	(83,660)
Covered loans held-in-portfolio		(41,047)	(11,310)	(31,406)	-	(7,819)	(91,582)
Total loans held-in-portfolio		$ 169,519	$ (102,009)	$ 25,591	$ 4,471	$ 34,298	$ 131,870

Popular, Inc.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS
(Unaudited)

31-Dec-13
U.S. Mainland
(In thousands)		Commercial	Construction	Legacy	Mortgage	Consumer	Total
Allowance for credit losses:
	Specific ALLL	$ -	$ -	$ -	$ 17,633	$ 280	$ 17,913
	General ALLL	46,832	247	13,704	8,966	24,026	93,775
Total ALLL		$ 46,832	$ 247	$ 13,704	$ 26,599	$ 24,306	$ 111,688
Loans held-in-portfolio:
	Impaired loans	$ 52,136	$ 5,663	$ 6,045	$ 52,726	$ 2,361	$ 118,931
	Loans held-in-portfolio, excluding impaired loans	3,519,459	39,250	205,090	1,228,071	613,227	5,605,097
Total loans held-in-portfolio		$ 3,571,595	$ 44,913	$ 211,135	$ 1,280,797	$ 615,588	$ 5,724,028


30-Sep-13
U.S. Mainland
(In thousands)		Commercial	Construction	Legacy	Mortgage	Consumer	Total
Allowance for credit losses:
	Specific ALLL	$ -	$ -	$ -	$ 17,555	$ 324	$ 17,879
	General ALLL	54,008	314	16,696	12,273	25,557	108,848
Total ALLL		$ 54,008	$ 314	$ 16,696	$ 29,828	$ 25,881	$ 126,727
Loans held-in-portfolio:
	Impaired loans	$ 62,005	$ 5,763	$ 11,597	$ 52,867	$ 2,470	$ 134,702
	Loans held-in-portfolio, excluding impaired loans	3,528,448	35,587	224,048	1,216,584	623,427	5,628,094
Total loans held-in-portfolio		$ 3,590,453	$ 41,350	$ 235,645	$ 1,269,451	$ 625,897	$ 5,762,796


Variance
(In thousands)		Commercial	Construction	Legacy	Mortgage	Consumer	Total
Allowance for credit losses:
	Specific ALLL	$ -	$ -	$ -	$ 78	$ (44)	$ 34
	General ALLL	(7,176)	(67)	(2,992)	(3,307)	(1,531)	(15,073)
Total ALLL		$ (7,176)	$ (67)	$ (2,992)	$ (3,229)	$ (1,575)	$ (15,039)
Loans held-in-portfolio:
	Impaired loans	$ (9,869)	$ (100)	$ (5,552)	$ (141)	$ (109)	$ (15,771)
	Loans held-in-portfolio, excluding impaired loans	(8,989)	3,663	(18,958)	11,487	(10,200)	(22,997)
Total loans held-in-portfolio		$ (18,858)	$ 3,563	$ (24,510)	$ 11,346	$ (10,309)	$ (38,768)

Popular, Inc.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table N - Reconciliation to GAAP Financial Measures
(Unaudited)


(In thousands, except share or per share information)	31-Dec-13		30-Sep-13		31-Dec-12
Total stockholders’ equity	$ 4,626,205		$ 4,393,885		$ 4,110,000
Less: Preferred stock	(50,160)		(50,160)		(50,160)
Less: Goodwill	(647,757)		(647,757)		(647,757)
Less: Other intangibles	(45,132)		(46,892)		(54,295)
Total tangible common equity	$ 3,883,156		$ 3,649,076		$ 3,357,788
Total assets	$ 35,749,298		$ 36,052,116		$ 36,507,535
Less: Goodwill	(647,757)		(647,757)		(647,757)
Less: Other intangibles	(45,132)		(46,892)		(54,295)
Total tangible assets	$ 35,056,409		$ 35,357,467		$ 35,805,483
Tangible common equity to tangible assets	11.08	%	10.32	%	9.38	%
Common shares outstanding at end of period	103,397,699		103,327,146		103,169,806
Tangible book value per common share	$ 37.56		$ 35.32		$ 32.55



(In thousands)	31-Dec-13		30-Sep-13		31-Dec-12
Common stockholders’ equity	$ 4,576,045		$ 4,343,725		$ 4,059,840
Less: Unrealized losses (gains) on available-for-sale securities, net of tax^[1]	48,344		5,514		(154,568)
Less: Disallowed deferred tax assets^[2]	(626,570)		(643,716)		(385,060)
Less: Disallowed goodwill and other intangible assets	(643,185)		(646,464)		(662,201)
Less: Aggregate adjusted carrying value of all non-financial equity investments	(1,442)		(1,398)		(1,160)
Add: Pension liability adjustment, net of tax and accumulated net gains
(losses) on cash flow hedges^[3]	104,248		216,274		226,159
Total Tier 1 common equity	$ 3,457,440		$ 3,273,935		$ 3,083,010
Tier 1 common equity to risk-weighted assets	15.03	%	14.20	%	13.18	%
[1] In accordance with regulatory risk-based capital guidelines, Tier 1 capital excludes net unrealized gains (losses) on available-for-sale debt securities and net unrealized gains on available-for-sale equity securities with readily determinable fair values. In arriving at Tier 1 capital, institutions are required to deduct net unrealized losses on available-for-sale equity securities with readily determinable fair values, net of tax.

[2] Approximately $167 million of the Corporation’s $762 million of net deferred tax assets at December 31, 2013 (September 30, 2013 - $160 million and $844 million, respectively; December 31, 2012 - $118 million and $541 million, respectively), were included without limitation in regulatory capital pursuant to the risk-based capital guidelines, while approximately $627 million of such assets at December 31, 2013 (September 30, 2013 - $644 million; December 31, 2012 - $385 million) exceeded the limitation imposed by these guidelines and, as “disallowed deferred tax assets”, were deducted in arriving at Tier 1 capital. The remaining $(32) million of the Corporation’s other net deferred tax components at December 31, 2013 (September 30, 2013 - $40 million; December 31, 2012 - $38 million) represented primarily the following items (a) the deferred tax effects of unrealized gains and losses on available-for-sale debt securities, which are permitted to be excluded prior to deriving the amount of net deferred tax assets subject to limitation under the guidelines; (b) the deferred tax asset corresponding to the pension liability adjustment recorded as part of accumulated other comprehensive income; and (c) the deferred tax liability associated with goodwill and other intangibles.

[3] The Federal Reserve Bank has granted interim capital relief for the impact of pension liability adjustment.

Popular, Inc.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table O - Financial Information - Westernbank Covered Loans
(Unaudited)


Revenues
		Quarters ended
(In thousands)		31-Dec-13	30-Sep-13	Variance
Interest income on covered loans		$ 86,794	$ 71,631	$ 15,163
FDIC loss share expense:
Amortization of indemnification asset		(45,193)	(37,681)	(7,512)
80% mirror accounting on credit impairment losses [1]		7,125	13,946	(6,821)
80% mirror accounting on discount accretion on unfunded commitments		-	(87)	87
80% mirror accounting on reimbursable expenses		5,430	25,641	(20,211)
80% mirror accounting on recoveries on covered assets, including rental income on OREOs, subject to reimbursement to the FDIC		(1,255)	(11,533)	10,278
Change in true-up payment obligation		(3,420)	(5,322)	1,902
Other		149	170	(21)
	Total FDIC loss share expense	(37,164)	(14,866)	(22,298)
Other non-interest income		-	109	(109)
Total revenues		49,630	56,874	(7,244)
Provision for loan losses		8,907	17,433	(8,526)
Total revenues less provision for loan losses		$ 40,723	$ 39,441	$ 1,282
[1]	Reductions in expected cash flows for ASC 310-30 loans, which may impact the provision for loan losses, may consider reductions in both principal and interest cash flow expectations. The amount covered under the FDIC loss sharing agreements for interest not collected from borrowers is limited under the agreements (approximately 90 days); accordingly, these amounts are not subject fully to the 80% mirror accounting.


Non-personnel operating expenses
		Quarters ended
(In thousands)		31-Dec-13	30-Sep-13	Variance
Professional fees		$ 5,865	$ 4,043	$ 1,822
OREO expenses		4,206	10,983	(6,777)
Other operating expenses		2,679	3,266	(587)
Total operating expenses		$ 12,750	$ 18,292	$ (5,542)
Expense reimbursements from the FDIC may be recorded with a time lag, since these are claimed upon the event of loss or charge-off of the loans which may occur in a subsequent period.


Quarterly average assets
		Quarters ended
(In millions)		31-Dec-13	30-Sep-13	Variance
Covered loans		$ 3,017	$ 3,119	$ (102)
FDIC loss share asset		1,123	1,348	(225)


Activity in the carrying amount and accretable yield of covered loans accounted for under ASC 310-30

		Quarters ended
		31-Dec-13		30-Sep-13
(In thousands)		Accretable yield	Carrying amount of loans	Accretable yield	Carrying amount of loans
Beginning balance		$ 1,309,618	$ 2,891,049	$ 1,379,612	$ 3,012,866
Accretion		(83,653)	83,653	(68,529)	68,529
Changes in expected cash flows		83,240	-	(1,465)	-
Collections / charge-offs		-	(146,755)	-	(190,346)
Ending balance		1,309,205	2,827,947	1,309,618	2,891,049
	Allowance for loan losses - ASC 310-30 covered loans	-	(93,915)	-	(108,874)
Ending balance, net of allowance for loan losses		$ 1,309,205	$ 2,734,032	$ 1,309,618	$ 2,782,175


Activity in the carrying amount of the FDIC indemnity asset

			Quarters ended
(In thousands)			31-Dec-13		30-Sep-13
Balance at beginning of period			$ 1,324,711		$ 1,379,342
Amortization			(45,193)		(37,681)
Credit impairment losses to be covered under loss sharing agreements			7,125		13,946
Decrease due to reciprocal accounting on the discount accretion on unfunded commitments			-		(87)
Reimbursable expenses to be covered under loss sharing agreements			5,430		25,641
Net payments to (from) FDIC under loss sharing agreements			(343,465)		(52,865)
Other adjustments attributable to FDIC loss sharing agreements			-		(3,585)
Balance at end of period			$ 948,608		$ 1,324,711


Activity in the remaining FDIC loss share asset amortization

			Quarters ended
(In thousands)			31-Dec-13		30-Sep-13
Balance at beginning of period			$ 122,496		$ 122,124
Amortization			(45,193)		(37,681)
Impact of lower projected losses			26,388		38,053
Balance at end of period			$ 103,691		$ 122,496

Popular, Inc.
Financial Supplement to Fourth Quarter 2013 Earnings Release
Table P - Adjusted Consolidated Statement of Operations for the Year Ended December 31, 2013 (Non-GAAP)
(Unaudited)

	Year ended
	31-Dec-13
		1st QTR	2nd QTR			3rd QTR	4th QTR
(In thousands)	Actual Results (US GAAP)	Impact of Sale of NPAs [2]	Impact of Sale of NPLs	Impact of EVERTEC's IPO	Income Tax Adjustment [3]	Impact of EVERTEC's SPO	Impact of EVERTEC's SPO	Adjusted Results (Non-GAAP)
Net interest income	$ 1,432,580	$ -	$ -	$ 1,502	$ -	$ -	$ -	$ 1,431,078
Provision for loan losses – non-covered loans	533,167	148,823	169,248	-	-	-	-	215,096
Provision for loan losses – covered loans [1]	69,396	-	-	-	-	-	-	69,396
Net interest income after provision for loan losses	830,017	(148,823)	(169,248)	1,502	-	-	-	1,146,586
Service charges on deposit accounts and other service fees	408,034	-	-	-	-	-	-	408,034
Mortgage banking activities	71,673	-	-	-	-	-	-	71,673
Net gain and valuation adjustments on investments securities	7,966	-	-	5,856	-	-	-	2,110
Trading account loss	(13,483)	-	-	-	-	-	-	(13,483)
Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale	(49,130)	(61,387)	(3,865)	-	-	-	-	16,122
Adjustments (expense) to indemnity reserves on loans sold	(37,054)	(10,700)	(3,047)	-	-	-	-	(23,307)
FDIC loss share expense	(82,051)	-	-	-	-	-	-	(82,051)
Other non-interest income	504,614	-	-	162,091	-	175,867	92,358	74,298
Total non-interest income	810,569	(72,087)	(6,912)	167,947	-	175,867	92,358	453,396
Other taxes	58,286	-	-	-		-	-	58,286
Professional fees	289,280	5	-	856	-	250	-	288,169
OREO expense	80,236	37,046	-	-	-	-	-	43,190
Other operating expenses	864,784	-	-	-	-	-	-	864,784
Total operating expenses	1,292,586	37,051	-	856	-	250	-	1,254,429
Income (loss) before income tax	348,000	(257,961)	(176,160)	168,593	-	175,617	92,358	345,553
Income tax (benefit) expense	(251,327)	(77,388)	(68,987)	11,988	(218,035)	7,789	3,945	89,361
Net income (loss)	$ 599,327	$ (180,573)	$ (107,173)	$ 156,605	$ 218,035	$ 167,828	$ 88,413	$ 256,192
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.

[2] Net (loss) gain on sale of loans for the first quarter includes $8.8 million of negative valuation adjustments on loans held for sale which were transferred to held-in-portfolio subsequent to the sale.

[3] Represents the net benefit of $215.6 million for the increase on the net deferred tax asset from the change of the corporate tax rate from 30% to 39%, $7.9 million resulting from the adjustment in tax rate for distributions from EVERTEC from 15% to 4%, offset by an adjustment of $5.5 million on the deferred tax liability related to the covered loans portfolio.

CONTACT:
Popular, Inc.
Investor Relations:
Brett Scheiner, 212-417-6721
Investor Relations Officer
or
Media Relations:
Teruca Rullán, 787-281-5170 or Mobile: 917-679-3596
Senior Vice President, Corporate Communications

POPULAR, INC. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - January 23, 2014

Attached files