SAN JUAN, Puerto Rico--(BUSINESS WIRE)--January 22, 2015--Popular, Inc. (the “Corporation” or “Popular”) (NASDAQ:BPOP) reported net income of $52.9 million for the quarter. Net income for continued operations of $43.8 million and adjusted net income of $80.8 million for the quarter ended December 31, 2014, compared to net income from continuing operations of $32.8 million and adjusted net income of $81.7 million for the quarter ended September 30, 2014.

Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said, "While there were a number of significant transactions that impacted these results, we are satisfied that our top line remains strong and our credit metrics continue to head in the right direction in spite of the challenging economic conditions in our principal market. The sale of our California operations in the period caps a transformational year for the Corporation which included the restructuring of our US operations and the repayment of our TARP funds without issuing additional equity. We continue to focus on improving our operational and financial metrics and are well positioned for an eventual improvement in the Puerto Rico economy."

Earnings Highlights

(Unaudited)	Quarters ended									Years ended
(Dollars in thousands, except per share information)	31-Dec-14			30-Sep-14			31-Dec-13			31-Dec-14			31-Dec-13
Net interest income	$	326,861		$	326,421		$	354,507		$	945,072		$	1,344,574
Provision for loan losses – non-covered loans		51,637			68,166			49,927			223,999			536,710
Provision (reversal of provision) for loan losses – covered loans [1]		(3,646	)		12,463			8,907			46,135			69,396
Net interest income after provision for loan losses		278,870			245,792			295,673			674,938			738,468
FDIC loss share expense		(18,693	)		(4,864	)		(37,164	)		(103,024	)		(82,051	)
Other non-interest income		128,588			129,194			222,440			496,070			873,064
Operating expenses		330,006			310,640			304,609			1,193,684			1,221,990
Income (loss) from continuing operations before income tax		58,759			59,482			176,340			(125,700	)		307,491
Income tax expense (benefit)		14,995			26,667			25,162			60,802			(251,327	)
Income (loss) from continuing operations	$	43,764		$	32,815		$	151,178		$	(186,502	)	$	558,818
Income (loss) from discontinued operations, net of tax	$	9,086		$	29,758		$	11,853		$	(122,980	)	$	40,509
Net income (loss)	$	52,850		$	62,573		$	163,031		$	(309,482	)	$	599,327
Net income (loss) applicable to common stock	$	51,919		$	61,643		$	162,100		$	(313,205	)	$	595,604
Net income (loss) per common share from continuing operations - Basic	$	0.41		$	0.31		$	1.46		$	(1.85	)	$	5.41
Net income (loss) per common share from continuing operations - Diluted	$	0.41		$	0.31		$	1.46		$	(1.85	)	$	5.39
Net income (loss) per common share from discontinued operations - Basic	$	0.09		$	0.29		$	0.12		$	(1.20	)	$	0.39
Net income (loss) per common share from discontinued operations - Diluted	$	0.09		$	0.29		$	0.11		$	(1.20	)	$	0.39

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

The Corporation continues its strategy of relocating certain back office operations of BPNA to Puerto Rico and New York. The Corporation incurred $13.9 million in restructuring charges during the fourth quarter of 2014 and a total of $26.7 million during the year ended December 31, 2014. Additional restructuring charges amounting to approximately $22.0 million are expected to be incurred in the year 2015, comprised of $13.0 million in personnel related costs and $9.0 million in lease cancelations and other restructuring costs.

During the third quarter of 2014, the Corporation refinanced approximately $638 million in long term structured repos in the U.S. with a yield of 4.41% and replaced them with lower cost short term repos of a similar amount. As previously disclosed, the fees associated with the refinancing of these repos were $39.7 million, of which $20.7 million were recorded as interest expense during the third quarter of 2014, and approximately $19.0 million were recorded during the fourth quarter of 2014.

The decision to sell three of its U.S. regional operations resulted in the discontinuance of each of these respective operations. As required by US GAAP, current and prior periods presented in the consolidated statement of operations as well as financial information covering income and expense amounts presented in this earnings release has been retrospectively adjusted for the impact of the discontinued operations for comparative purposes. The consolidated statement of financial condition and related financial information for prior periods included in this earnings release do not reflect the reclassification of BPNA’s assets and liabilities to discontinued operations. Refer to Table P for a detail of the net loss, assets and liabilities from the discontinued operations. Also, refer to Table Q for details of the restructuring charges incurred during the quarter ended December 31, 2014.


	Quarter ended
(Unaudited)	31-Dec-14
(In thousands)	Actual Results (US GAAP)			BPNA Reorganization [2]			Other Adjustments			Adjusted Results (Non-GAAP)
Net interest income	$	326,861		$	(18,591	)	$	-		$	345,452
Provision for loan losses – non-covered loans		51,637			878			-			50,759
Provision (reversal of provision) for loan losses – covered loans [1]		(3,646	)		-			-			(3,646	)
Net interest income (expense) after provision for loan losses		278,870			(19,469	)		-			298,339
Net gain (loss) on sale of loans, including valuation adjustments on loans held-for-sale		10,946			1,684			-			9,262
FDIC loss share expense		(18,693	)		-			-			(18,693	)
Other non-interest income		117,642			-			-			117,642
Personnel costs		110,736			-			2,974^[3]			107,762
Net occupancy expenses		23,877						1,895^[4]			21,982
Loss on early extinguishment of debt		532			532			-			-
Restructuring costs		13,861			13,861			-			-
Other operating expenses		181,000			-			-			181,000
Income (loss) from continuing operations before income tax		58,759			(32,178	)		(4,869	)		95,806
Income tax expense		14,995			-			-			14,995
Income (loss) from continuing operations	$	43,764		$	(32,178	)	$	(4,869	)	$	80,811

[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.
[2] Includes loss on the refinancing of structured repos for $18.6 million recorded as interest expense, impact on provision for loan losses related to NPL sales of $878 thousand, gain on bulk sales of NPLs of $1.7 million and restructuring cost of $13.9 million.
[3] Represents the impact of the compensation package granted upon separation of an officer of the Corporation equal to approximately $3.0 million.
[4] Represents the net loss on the early cancellation of a lease at BPNA of $1.9 million.


	Quarter ended
(Unaudited)	30-Sep-14
(In thousands)	Actual Results (US GAAP)			BPNA Reorganization [2]			Income Tax Adjustments [3]			Indemnification Asset Adjustment [4]		Adjusted Results (Non-GAAP)
Net interest (expense) income	$	326,421		$	(20,663	)	$	-		$	-	$	347,084
Provision for loan losses – non-covered loans		68,166			11,950			-			-		56,216
Provision for loan losses – covered loans [1]		12,463			-			-			-		12,463
Net interest (expense) income after provision for loan losses		245,792			(32,613	)		-			-		278,405
Net gain (loss) on sale of loans, including valuation adjustments on loans held-for-sale		15,593			-			-			-		15,593
FDIC loss share expense		(4,864	)		-			-			15,046		(19,910	)
Other non-interest income		113,601			-			-			-		113,601
Personnel costs		104,542			-								104,542
Net occupancy expenses		21,203			-								21,203
Loss on early extinguishment of debt		-			-			-			-		-
Restructuring costs		8,290			8,290			-			-		-
Other operating expenses		176,605			-			-			-		176,605
Income (loss) from continuing operations before income tax		59,482			(40,903	)		-			15,046		85,339
Income tax (benefit) expense		26,667			-			20,048			3,009		3,610
Income (loss) from continuing operations	$	32,815		$	(40,903	)	$	(20,048	)	$	12,037	$	81,729

[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.
[2] Includes losses on bulk sales and reclassifications to loans held-for-sale of classified and legacy loans for an aggregated net loss $12.0 million, loss on the refinancing of structured repos for $20.7 million recorded as interest expense and restructuring cost of $8.3 million.
[3] On July 1, 2014, the Government of Puerto Rico approved an amendment to the Internal Revenue Code, which, among other things, changed the income tax rate for capital gains from 15% to 20%. As a result, the Corporation recognized an income tax expense of $20.0 million, mainly related to the deferred tax liability associated with the portfolio acquired from Westernbank.
[4] The FDIC indemnity asset amortization included a positive adjustment of $15.0 million to reverse the impact of accelerated amortization expense recorded in prior periods.


	Quarters ended
(Unaudited)	Adjusted Results Non-GAAP
(In thousands)	31-Dec-14			30-Sep-14			Variance
Net interest income	$	345,452		$	347,084		$	(1,632	)
Provision for loan losses – non-covered loans		50,759			56,216			(5,457	)
Provision (reversal of provision) for loan losses – covered loans [1]		(3,646	)		12,463			(16,109	)
Net interest income after provision for loan losses		298,339			278,405			19,934
Net gain (loss) on sale of loans, including valuation adjustments on loans held-for-sale		9,262			15,593			(6,331	)
FDIC loss share expense		(18,693	)		(19,910	)		1,217
Other non-interest income		117,642			113,601			4,041
Personnel costs		107,762			104,542			3,220
Net occupancy expenses		21,982			21,203			779
Loss on early extinguishment of debt		-			-			-
Restructuring costs		-			-			-
Other operating expenses		181,000			176,605			4,395
Income from continuing operations before income tax		95,806			85,339			10,467
Income tax expense		14,995			3,610			11,385
Income from continuing operations	$	80,811		$	81,729		$	(918	)

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

For the quarter ended December 31, 2014, the Corporation had a net interest income of $326.9 million. Excluding the impact of the $18.6 million expense related to the refinancing of structured repos, the adjusted net interest income was $345.5 million compared to an adjusted net interest income of $347.1 million for the previous quarter. Net interest margin was 4.45% for the fourth quarter of 2014. The adjusted net interest margin was 4.70%, compared to an adjusted net interest margin of 4.64% for the third quarter of 2014. While net interest income decreased $1.6 million, the net interest margin reflects an increase of six basis points. The increase in net interest margin is mainly related to:

BPPR’s net interest margin was 5.15%, a decrease of ten basis points from the previous quarter. Net interest income amounted to $311.2 million for the quarter ended December 31, 2014, compared with $315.7 million for the previous quarter. The decrease in the net interest income was mainly due to the above mentioned decrease in interest income from covered loans and lower interest income from investment securities, partially offset by higher income from commercial loans.

BPNA earned $31.2 million in net interest income for the quarter ended December 31, 2014. Excluding the impact of the structured repos refinancing, the net interest income was $49.8 million, compared with an adjusted net interest income of $47.1 million in the previous quarter. The net interest margin was 2.40% for the quarter. The adjusted net interest margin, excluding the impact of the structured repos refinancing, for the quarter was 3.82%, compared to an adjusted net interest margin of 3.23% in the previous quarter. The increase in net interest income was mostly the result of a lower cost of borrowings due to the refinancing of structured repos, discussed above, partially offset by lower income from investment securities.

Non-interest income was $109.9 million for the fourth quarter of 2014, a decrease of $14.4 million when compared with the third quarter. Excluding the $1.7 million impact of the gain on bulk sales of NPLs during the fourth quarter as part of the BPNA reorganization, and the effect of the FDIC indemnity asset amortization adjustment of $15.0 million during the third quarter, non-interest income decreased by $1.1 million when compared to the third quarter of 2014, driven primarily by the following:

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

Operating expenses increased by $19.4 million when compared with the third quarter. Excluding the impact of the significant events detailed in the Adjusted Results (Non-GAAP) tables above, operating expenses increased by $8.4 million compared to the third quarter of 2014, driven primarily by:

Non-personnel credit-related costs, which include collections, appraisals, credit related fees, and OREO expenses, amounted to $27.2 million for the fourth quarter of 2014, compared with $25.8 million for the third quarter of 2014. The increase was principally due to higher collections expenses at BPPR.

Full-time equivalent employees (“FTEs”), including discontinued operations, were 7,752 as of December 31, 2014, compared with 7,848 as of September 30, 2014, and 8,059 as of December 31, 2013.

Income tax expense amounted to $15.0 million for the fourth quarter of 2014, compared to $26.7 million, or $3.6 million on an adjusted basis, for the previous quarter. The effective income tax rate for the fourth quarter of 2014, on an adjusted basis, was 16%. Refer to earnings highlights section above for a description of adjusted results.

On July 1, 2014, the Government of Puerto Rico approved an amendment to the Internal Revenue Code, which, among other things, changed the income tax rate for capital gains from 15% to 20%. As a result, the Corporation recognized an income tax expense of approximately $20.0 million during the third quarter of 2014, mainly related to the deferred tax liability associated with the portfolio acquired from Westernbank.

During the third quarter of 2014, the Corporation recorded a favorable adjustment of approximately $6.1 million in connection with filing its tax returns for the year 2013. Also, the Corporation reversed approximately $3.6 million of reserves for uncertain tax positions due to the expiration of the statute of limitations in the Puerto Rico operations. Excluding these adjustments, the adjusted income tax expense would have been $13.3 million, for an effective tax rate of approximately 16% on the adjusted pre-tax income.

Non-Performing Assets

(Unaudited)
(In thousands)	31-Dec-14			30-Sep-14			31-Dec-13
Total non-performing loans held-in-portfolio, excluding covered loans	$	625,338		$	621,945		$	597,948
Non-performing loans held-for-sale		18,899			19,728			1,092
Other real estate owned (“OREO”), excluding covered OREO		135,500			135,256			135,501
Total non-performing assets, excluding covered assets		779,737			776,929			734,541
Covered loans and OREO		148,099			166,533			197,388
Total non-performing assets	$	927,836		$	943,462		$	931,929
Net charge-offs for the quarter (excluding covered loans)	$	50,187		$	40,469		$	35,366


Ratios (excluding covered loans):
Non-covered loans held-in-portfolio ⁽¹⁾	$	19,404,451		$	19,359,216		$	21,611,866
Non-performing loans held-in-portfolio to loans held-in-portfolio ⁽¹⁾		3.22	%		3.21	%		2.77	%
Allowance for loan losses to loans held-in-portfolio		2.68			2.69			2.49
Allowance for loan losses to non-performing loans, excluding loans held-for-sale		83.11			83.88			90.05
[1] During the quarter ended June 30, 2014 approximately $1.8 billion in loans held-in-portfolio were reclassified to the discontinued operations, of which $48 thousand were in non-performing status as of September 30, 2014.

Refer to Table H for additional information.

The Corporation’s credit quality trends during the fourth quarter of 2014 were stable with the US regions exhibiting continued improvements and the Puerto Rico region remaining in line with the prior quarter. The BPNA segment continued to reflect strong performance led by the improved risk profile of its loan portfolios, further strengthened by the sale of certain non-performing and legacy assets. Notwithstanding, Puerto Rico’s fiscal and economic conditions continue to present a challenging operating environment.

The following presents credit quality performance for the fourth quarter of 2014 for the Corporation’s non-covered portfolios:

Total assets decreased by $1.0 billion from the third quarter of 2014, driven by:

Total liabilities decreased by $1.0 billion from the third quarter of 2014, driven by:

Stockholders’ equity decreased by $27.0 million from the third quarter of 2014, mainly as a result of an increase of $79.8 million in accumulated other comprehensive loss, which was partially offset by net income for the quarter of $52.9 million. The other comprehensive loss includes an increase of approximately $103.0 million in the adjustment of pension and post retirement plans, net of tax, which was partially offset by an increase in unrealized gains from securities available for sale of $25.3 million. Refer to Table A for capital ratios.

The following table presents the preliminary regulatory capital ratios based on the current Basel I regulatory capital framework and under the Basel III Transitional Capital Rules for non-advanced approach banking organizations in effect as of January 1, 2015.

The reduction of 127 basis points in Tier 1 risk-based capital under Basel III relates mainly to the impact of the phase-out provisions of the New Capital Rules on the Corporation’s $427 million in trust preferred securities. Under Basel III, only 25% of the outstanding balance of these securities is allowed as Tier 1, with the remaining balance included in Total risk-based capital.

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, 2013, 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 top 50 U.S. banks by assets. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey and Florida.

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 22, 2015, at 10:00 a.m. Eastern Standard 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 1-866-235-1201 or 1-412-902-4127.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Friday, January 30, 2015. The replay dial in is 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10058189.

Popular, Inc.

Financial Supplement to Fourth Quarter 2014 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 - Financial Information from Discontinued Operations

Table Q - Restructuring Charges

Table R - Adjusted Consolidated Statement of Operations for the Year Ended December 31, 2014 (Non-GAAP)


POPULAR, INC.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)


	Quarters ended									Years ended
	31-Dec-14			30-Sep-14			31-Dec-13			31-Dec-14			31-Dec-13
Basic EPS from continuing operations	$	0.41		$	0.31		$	1.46		$	(1.85	)	$	5.41
Basic EPS from discontinued operations	$	0.09		$	0.29		$	0.12		$	(1.20	)	$	0.39
Total Basic EPS	$	0.50		$	0.60		$	1.58		$	(3.05	)	$	5.80
Diluted EPS from continuing operations	$	0.41		$	0.31		$	1.46		$	(1.85	)	$	5.39
Diluted EPS from discontinued operations	$	0.09		$	0.29		$	0.11		$	(1.20	)	$	0.39
Total Diluted EPS	$	0.50		$	0.60		$	1.57		$	(3.05	)	$	5.78
Average common shares outstanding		102,859,416			102,953,328			102,774,144			102,848,792			102,693,685
Average common shares outstanding - assuming dilution		103,166,349			103,152,916			103,081,417			102,848,792			103,061,475
Common shares outstanding at end of period		103,476,847			103,448,206			103,397,699			103,476,847			103,397,699
Market value per common share	$	34.05		$	29.44		$	28.73		$	34.05		$	28.73
Market capitalization - (In millions)	$	3,523		$	3,046		$	2,971		$	3,523		$	2,971
Return on average assets		0.63	%		0.71	%		1.79	%		(0.88	)%		1.65	%
Return on average common equity		4.78	%		5.75	%		14.59	%		(6.95	)%		14.43	%
Net interest margin [2]		4.70	%		4.64	%		4.75	%		4.67	%		4.52	%
Common equity per share	$	40.79		$	41.07		$	44.26		$	40.79		$	44.26
Tangible common book value per common share (non-GAAP) [1]	$	35.93		$	36.24		$	37.56		$	35.93		$	37.56
Tangible common equity to tangible assets (non-GAAP) [1]		11.41	%		11.16	%		11.08	%		11.41	%		11.08	%
Tier 1 risk-based capital [3]		18.17	%		16.86	%		19.15	%		18.17	%		19.15	%
Total risk-based capital [3]		19.45	%		18.14	%		20.42	%		19.45	%		20.42	%
Tier 1 leverage [3]		11.96	%		11.14	%		12.85	%		11.96	%		12.85	%
Tier 1 common equity to risk-weighted assets (non-GAAP) [1] [3]		15.92	%		14.74	%		14.83	%		15.92	%		14.83	%

[1] Refer to Table N for Non-GAAP reconciliations.
[2] Not on a taxable equivalent basis. For the quarter ended December 31, 2014 and September 30, 2014, excludes the impact of $18.6 million and $20.7 million fees, respectively, related to repos refinancing. US GAAP Net interest margin was 4.45% for the fourth quarter, compared to 4.36% for the previous quarter. For the year ended December 31, 2014, excludes the impact of $39.2 million and $414.1 million, respectively, related to repos refinancing and the accelerated amortization of the TARP discount. The US GAAP Net interest margin was 3.16% for the year ended December 31, 2014. Refer to Tables D & E for reconciliation.
[3] Capital ratios for the current quarter are preliminary.


POPULAR, INC.
Financial Supplement to Fourth Quarter 2014 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-14			30-Sep-14			Q4 2014 vs. Q3 2014			31-Dec-13			Q4 2014 vs. Q4 2013			31-Dec-14			31-Dec-13
Interest income:
Loans	$	357,570		$	362,592		$	(5,022	)	$	384,015		$	(26,445	)	$	1,478,750		$	1,481,096
Money market investments		1,113			1,007			106			832			281			4,224			3,464
Investment securities		30,361			33,154			(2,793	)		34,317			(3,956	)		132,631			141,807
Trading account securities		2,891			4,446			(1,555	)		5,361			(2,470	)		17,938			21,573
Total interest income		391,935			401,199			(9,264	)		424,525			(32,590	)		1,633,543			1,647,940
Interest expense:
Deposits		25,473			26,533			(1,060	)		28,681			(3,208	)		105,087			124,857
Short-term borrowings		20,489			28,955			(8,466	)		9,319			11,170			67,376			38,430
Long-term debt		19,112			19,290			(178	)		32,018			(12,906	)		516,008			140,079
Total interest expense		65,074			74,778			(9,704	)		70,018			(4,944	)		688,471			303,366
Net interest income (expense)		326,861			326,421			440			354,507			(27,646	)		945,072			1,344,574
Provision for loan losses - non-covered loans		51,637			68,166			(16,529	)		49,927			1,710			223,999			536,710
Provision (recovery of provision) for loan losses - covered loans		(3,646	)		12,463			(16,109	)		8,907			(12,553	)		46,135			69,396
Net interest income (expense) after provision for loan losses		278,870			245,792			33,078			295,673			(16,803	)		674,938			738,468
Service charges on deposit accounts		39,456			40,585			(1,129	)		39,814			(358	)		158,637			162,870
Other service fees		61,140			54,839			6,301			60,087			1,053			225,265			229,351
Mortgage banking activities		8,747			14,402			(5,655	)		14,387			(5,640	)		30,615			71,657
Net (loss) gain and valuation adjustments on investment securities		893			(1,763	)		2,656			2,110			(1,217	)		(870	)		7,966
Trading account profit (loss)		586			740			(154	)		(1,547	)		2,133			4,358			(13,483	)
Net gain (loss) on sale of loans, including valuation adjustments on loans held-for-sale		10,946			15,593			(4,647	)		3,346			7,600			40,591			(52,708	)
Adjustments (expense) to indemnity reserves on loans sold		(6,817	)		(9,480	)		2,663			(6,892	)		75			(34,098	)		(37,054	)
FDIC loss share (expense) income		(18,693	)		(4,864	)		(13,829	)		(37,164	)		18,471			(103,024	)		(82,051	)
Other operating income		13,637			14,278			(641	)		111,135			(97,498	)		71,572			504,465
Total non-interest income		109,895			124,330			(14,435	)		185,276			(75,381	)		393,046			791,013
Operating expenses:
Personnel costs
Salaries		71,899			71,166			733			69,391			2,508			281,252			276,072
Commissions, incentives and other bonuses		18,439			14,738			3,701			13,523			4,916			59,138			57,060
Pension, postretirement and medical insurance		6,901			9,282			(2,381	)		13,138			(6,237	)		32,416			55,106
Other personnel costs, including payroll taxes		13,497			9,356			4,141			10,353			3,144			45,873			40,459
Total personnel costs		110,736			104,542			6,194			106,405			4,331			418,679			428,697
Net occupancy expenses		23,877			21,203			2,674			23,714			163			86,707			86,651
Equipment expenses		13,091			12,370			721			11,536			1,555			48,917			46,028
Other taxes		14,343			15,369			(1,026	)		13,595			748			56,918			58,028
Professional fees		80,383			67,649			12,734			74,138			6,245			282,055			278,127
Communications		6,119			6,455			(336	)		6,149			(30	)		25,684			25,385
Business promotion		13,530			13,062			468			16,702			(3,172	)		54,016			59,453
FDIC deposit insurance		9,338			9,511			(173	)		14,672			(5,334	)		40,307			56,728
Loss on early extinguishment of debt		532			-			532			-			532			532			3,388
Other real estate owned (OREO) expenses		20,016			19,745			271			9,502			10,514			49,611			79,658
Credit and debit card processing, volume, interchange and other expenses		5,093			5,659			(566	)		5,284			(191	)		21,588			19,901
Other operating expenses		17,004			24,759			(7,755	)		20,910			(3,906	)		73,785			71,975
Amortization of intangibles		2,083			2,026			57			2,002			81			8,160			7,971
Restructuring costs		13,861			8,290			5,571			-			13,861			26,725			-
Total operating expenses		330,006			310,640			19,366			304,609			25,397			1,193,684			1,221,990
Income (loss) from continuing operations before income tax		58,759			59,482			(723	)		176,340			(117,581	)		(125,700	)		307,491
Income tax expense (benefit)		14,995			26,667			(11,672	)		25,162			(10,167	)		60,802			(251,327	)
Income (loss) from continuing operations		43,764			32,815			10,949			151,178			(107,414	)		(186,502	)		558,818
Income (loss) from discontinued operations, net of tax		9,086			29,758			(20,672	)		11,853			(2,767	)		(122,980	)		40,509
Net income (loss)	$	52,850		$	62,573		$	(9,723	)	$	163,031		$	(110,181	)	$	(309,482	)	$	599,327
Net income (loss) applicable to common stock	$	51,919		$	61,643		$	(9,724	)	$	162,100		$	(110,181	)	$	(313,205	)	$	595,604
Net income (loss) per common share - basic:
Net income (loss) from continuing operations	$	0.41		$	0.31		$	0.10		$	1.46		$	(1.05	)	$	(1.85	)	$	5.41
Net income (loss) from discontinued operations	$	0.09		$	0.29		$	(0.20	)	$	0.12		$	(0.03	)	$	(1.20	)	$	0.39
Net income (loss) per common share - basic	$	0.50		$	0.60		$	(0.10	)	$	1.58		$	(1.08	)	$	(3.05	)	$	5.80
Net income (loss) per common share - diluted:
Net income (loss) from continuing operations	$	0.41		$	0.31		$	0.10		$	1.46		$	(1.05	)	$	(1.85	)	$	5.39
Net income (loss) from discontinued operations	$	0.09		$	0.29		$	(0.20	)	$	0.11		$	(0.02	)	$	(1.20	)	$	0.39
Net income (loss) per common share - diluted	$	0.50		$	0.60		$	(0.10	)	$	1.57		$	(1.07	)	$	(3.05	)	$	5.78


Popular, Inc.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)

										Variance
										Q4 2014 vs.
(In thousands)	31-Dec-14			30-Sep-14			31-Dec-13			Q3 2014
Assets:
Cash and due from banks	$	447,011		$	321,914		$	423,211		$	125,097
Money market investments		1,756,470			1,053,121			858,453			703,349
Trading account securities, at fair value		138,527			145,343			339,743			(6,816	)
Investment securities available-for-sale, at fair value		5,315,159			5,727,766			5,294,800			(412,607	)
Investment securities held-to-maturity, at amortized cost		103,170			112,893			140,496			(9,723	)
Other investment securities, at lower of cost or realizable value		161,906			161,168			181,752			738
Loans held-for-sale, at lower of cost or fair value		106,104			178,008			110,426			(71,904	)
Loans held-in-portfolio:
Loans not covered under loss sharing agreements with the FDIC		19,498,286			19,450,677			21,704,010			47,609
Loans covered under loss sharing agreements with the FDIC		2,542,662			2,654,263			2,984,427			(111,601	)
Less: Unearned income		93,835			91,461			92,144			2,374
Allowance for loan losses		601,792			611,375			640,555			(9,583	)
Total loans held-in-portfolio, net		21,345,321			21,402,104			23,955,738			(56,783	)
FDIC loss share asset		542,454			681,106			948,608			(138,652	)
Premises and equipment, net		494,581			497,111			519,516			(2,530	)
Other real estate not covered under loss sharing agreements with the FDIC		135,500			135,256			135,501			244
Other real estate covered under loss sharing agreements with the FDIC		130,266			151,382			168,007			(21,116	)
Accrued income receivable		121,818			116,746			131,536			5,072
Mortgage servicing assets, at fair value		148,694			152,282			161,099			(3,588	)
Other assets		1,643,920			1,634,819			1,687,558			9,101
Goodwill		465,676			461,246			647,757			4,430
Other intangible assets		37,595			37,777			45,132			(182	)
Assets from discontinued operations		-			1,129,053			-			(1,129,053	)
Total assets	$	33,094,172		$	34,099,095		$	35,749,333		$	(1,004,923	)
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing	$	5,783,748		$	5,521,415		$	5,922,682		$	262,333
Interest bearing		19,023,787			18,944,690			20,788,463			79,097
Total deposits		24,807,535			24,466,105			26,711,145			341,430
Federal funds purchased and assets sold under agreements to repurchase		1,271,657			1,650,712			1,659,292			(379,055	)
Other short-term borrowings		21,200			1,200			401,200			20,000
Notes payable		1,711,828			1,723,573			1,584,754			(11,745	)
Other liabilities		1,005,498			852,351			766,792			153,147
Liabilities from discontinued operations		5,064			1,106,762			-			(1,101,698	)
Total liabilities		28,822,782			29,800,703			31,123,183			(977,921	)
Stockholders’ equity:
Preferred stock		50,160			50,160			50,160			-
Common stock		1,036			1,036			1,034			-
Surplus		4,196,458			4,171,890			4,170,152			24,568
Retained earnings		257,725			229,306			594,430			28,419
Treasury stock		(4,117	)		(3,933	)		(881	)		(184	)
Accumulated other comprehensive loss		(229,872	)		(150,067	)		(188,745	)		(79,805	)
Total stockholders’ equity		4,271,390			4,298,392			4,626,150			(27,002	)
Total liabilities and stockholders’ equity	$	33,094,172		$	34,099,095		$	35,749,333		$	(1,004,923	)


Popular, Inc.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER
(Unaudited)

	Quarter ended							Quarter ended							Quarter ended							Variance								Variance
	31-Dec-14							30-Sep-14							31-Dec-13							Q4 2014 vs. Q3 2014								Q4 2014 vs. Q4 2013
($ 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	$	7,220		$	34.4	1.90	%	$	7,501		$	38.6	2.06	%	$	7,038		$	40.5	2.30	%		($281	)		($4.2	)	(0.16	)%	$	182			($6.1	)	(0.40	)%
Loans not covered under loss sharing agreements with the FDIC:
Commercial		8,219			101.9	4.92			8,239			99.6	4.80			8,356			100.7	4.78			(20	)		2.3		0.12			(137	)		1.2		0.14
Construction		233			3.8	6.41			201			2.5	4.86			285			4.4	6.15			32			1.3		1.55			(52	)		(0.6	)	0.26
Mortgage		6,538			84.1	5.15			6,646			84.0	5.05			6,688			87.1	5.21			(108	)		0.1		0.10			(150	)		(3.0	)	(0.06	)
Consumer		3,884			96.6	9.86			3,905			98.4	10.00			3,742			94.5	10.02			(21	)		(1.8	)	(0.14	)		142			2.1		(0.16	)
Lease financing		555			9.9	7.11			545			9.8	7.20			538			10.5	7.79			10			0.1		(0.09	)		17			(0.6	)	(0.68	)
Total loans not covered under loss sharing agreements with the FDIC		19,429			296.3	6.07			19,536			294.3	5.99			19,609			297.2	6.03			(107	)		2.0		0.08			(180	)		(0.9	)	0.04
Loans covered under loss sharing agreements with the FDIC		2,615			61.3	9.31			2,727			68.3	9.95			3,017			86.8	11.43			(112	)		(7.0	)	(0.64	)		(402	)		(25.5	)	(2.12	)
Total loans		22,044			357.6	6.45			22,263			362.6	6.48			22,626			384.0	6.75			(219	)		(5.0	)	(0.03	)		(582	)		(26.4	)	(0.30	)
Total interest earning assets		29,264		$	392.0	5.33	%		29,764		$	401.2	5.36	%		29,664		$	424.5	5.69	%		(500	)		($9.2	)	(0.03	)%		(400	)		($32.5	)	(0.36	)%
Allowance for loan losses		(618	)						(629	)						(602	)						11								(16	)
Other non-interest earning assets		4,171							4,416							4,997							(245	)							(826	)
Assets from discontinued operations		491							1,473							1,976							(982	)							(1,485	)
Total average assets	$	33,308						$	35,024						$	36,035						$	(1,716	)						$	(2,727	)

Liabilities and Stockholders' Equity:
Interest bearing deposits:
NOW and money market	$	4,788		$	4.0	0.33	%	$	4,876		$	3.9	0.32	%	$	4,629		$	3.7	0.32	%	$	(88	)	$	0.1		0.01	%	$	159		$	0.3		0.01	%
Savings		6,788			3.8	0.22			6,740			3.7	0.22			6,663			3.7	0.22			48			0.1		-			125			0.1		-
Time deposits		7,409			17.7	0.95			7,569			18.9	0.99			7,790			21.3	1.08			(160	)		(1.2	)	(0.04	)		(381	)		(3.6	)	(0.13	)
Total interest bearing deposits		18,985			25.5	0.53			19,185			26.5	0.55			19,082			28.7	0.60			(200	)		(1.0	)	(0.02	)		(97	)		(3.2	)	(0.07	)
Borrowings^[1]		2,992			21.0	2.80			3,591			27.6	3.06			3,794			41.3	4.35			(599	)		(6.6	)	(0.26	)		(802	)		(20.3	)	(1.55	)
Total interest bearing liabilities		21,977			46.5	0.84			22,776			54.1	0.94			22,876			70.0	1.22			(799	)		(7.6	)	(0.10	)		(899	)		(23.5	)	(0.38	)
Net interest spread						4.49	%						4.42	%						4.47	%							0.07	%							0.02	%
Non-interest bearing deposits		5,636							5,464							5,468							172								168
Other liabilities		849							860							1,039							(11	)							(190	)
Liabilities from discontinued operations		486							1,618							2,193							(1,132	)							(1,707	)
Stockholders' equity		4,360							4,306							4,459							54								(99	)
Total average liabilities and stockholders' equity	$	33,308						$	35,024						$	36,035						$	(1,716	)						$	(2,727	)

Adjusted net interest income / margin non-taxable equivalent basis				$	345.5	4.70	%				$	347.1	4.64	%				$	354.5	4.75	%					($1.6	)	0.06	%					($9.0	)	(0.05	)%
Impact of fees related to repos refinancing				$	18.6						$	20.7
Net interest income (expense)/margin non-taxable equivalent basis				$	326.9	4.45	%				$	326.4	4.36	%				$	354.5	4.75	%

(1) Borrowing expense for the fourth and third quarters, including the fees related to repos refinancing, was 5.27% and 5.34%, respectively.


Popular, Inc.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE
(Unaudited)

	Year ended							Year ended
	31-Dec-14							31-Dec-13							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	$	7,530		$	154.8	2.06	%	$	6,941		$	166.8	2.40	%	$	589			($12.0	)	(0.34	)%
Loans not covered under loss sharing agreements with the FDIC:
Commercial		8,347			404.4	4.85			8,284			399.3	4.82			63			5.1		0.03
Construction		199			13.5	6.78			319			15.1	4.73			(120	)		(1.6	)	2.05
Mortgage		6,641			340.4	5.12			6,688			343.3	5.13			(47	)		(2.9	)	(0.01	)
Consumer		3,861			386.7	10.01			3,741			379.2	10.13			120			7.5		(0.12	)
Lease financing		548			40.1	7.33			540			43.5	8.07			8			(3.4	)	(0.74	)
Total loans not covered under loss sharing agreements with the FDIC		19,596			1,185.1	6.05			19,572			1,180.4	6.03			24			4.7		0.02
Loans covered under loss sharing agreements with the FDIC		2,771			293.6	10.60			3,228			300.7	9.32			(457	)		(7.1	)	1.28
Total loans		22,367			1,478.7	6.61			22,800			1,481.1	6.50			(433	)		(2.4	)	0.11
Total interest earning assets		29,897		$	1,633.5	5.46	%		29,741		$	1,647.9	5.54	%		156			($14.4	)	(0.08	)%
Allowance for loan losses		(623	)						(610	)						(13	)
Other non-interest earning assets		4,466							5,139							(673	)
Assets from discontinued operations		1,442							1,997							(555	)
Total average assets	$	35,182						$	36,267							($1,085	)

Liabilities and Stockholders' Equity:
Interest bearing deposits:
NOW and money market	$	4,824		$	15.5	0.32	%	$	4,658		$	15.7	0.34	%	$	166			($0.2	)	(0.02	)%
Savings		6,733			14.7	0.22			6,585			15.4	0.23			148			(0.7	)	(0.01	)
Time deposits		7,556			74.9	0.99			7,957			93.8	1.18			(401	)		(18.9	)	(0.19	)
Total interest bearing deposits		19,113			105.1	0.55			19,200			124.9	0.65			(87	)		(19.8	)	(0.10	)
Borrowings ^[1]		3,514			130.0	3.70			4,292			178.5	4.16			(778	)		(48.5	)	(0.46	)
Total interest bearing liabilities		22,627			235.1	1.04			23,492			303.4	1.29			(865	)		(68.3	)	(0.25	)
Net interest spread						4.42	%						4.25	%							0.17	%
Non-interest bearing deposits		5,534							5,371							163
Other liabilities		879							1,019							(140	)
Liabilities from discontinued operations		1,586							2,209							(623	)
Stockholders' equity		4,556							4,176							380
Total average liabilities and stockholders' equity	$	35,182						$	36,267							($1,085	)

Adjusted net interest income / margin non-taxable equivalent basis				$	1,398.4	4.67	%				$	1,344.5	4.52	%				$	53.9		0.15	%
Impact of fees related to repos refinancing				$	39.2
Accelerated amortization of TARP discount and related deferred costs					414.1
Net interest income/margin non-taxable equivalent basis				$	945.1	3.16	%

(1) Borrowing expense including the fees related to repos refinancing and the impact of the accelerated TARP amortization was 16.60%.


Popular, Inc.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table F - Mortgage Banking Activities and Other Service Fees
(Unaudited)

Mortgage Banking Activities										Variance
	Quarters ended									Q4 2014 vs.			Q4 2014 vs.			Years ended						Variance
(In thousands)	31-Dec-14			30-Sep-14			31-Dec-13			Q3 2014			Q4 2013			31-Dec-14			31-Dec-13			2014 vs. 2013
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees	$	9,364		$	11,091		$	11,366		$	(1,727	)	$	(2,002	)	$	41,761		$	45,465		$	(3,704	)
Mortgage servicing rights fair value adjustments		(6,259	)		(2,588	)		(4,541	)		(3,671	)		(1,718	)		(24,683	)		(11,403	)		(13,280	)
Total mortgage servicing fees, net of fair value adjustments		3,105			8,503			6,825			(5,398	)		(3,720	)		17,078			34,062			(16,984	)
Net gain on sale of loans, including valuation on loans held-for-sale		8,382			7,466			9,751			916			(1,369	)		31,213			26,719			4,494
Trading account (loss) profit:
Unrealized (losses) gains on outstanding derivative positions		(1	)		13			1,011			(14	)		(1,012	)		(726	)		746			(1,472	)
Realized (losses) gains on closed derivative positions		(2,739	)		(1,580	)		(3,200	)		(1,159	)		461			(16,950	)		10,130			(27,080	)
Total trading account (loss) profit		(2,740	)		(1,567	)		(2,189	)		(1,173	)		(551	)		(17,676	)		10,876			(28,552	)
Total mortgage banking activities	$	8,747		$	14,402		$	14,387		$	(5,655	)	$	(5,640	)	$	30,615		$	71,657		$	(41,042	)


Popular, Inc.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table G - Loans and Deposits
(Unaudited)

Loans - Ending Balances
							Variance
(In thousands)	31-Dec-14		30-Sep-14		31-Dec-13		Q4 2014 vs. Q3 2014			Q4 2014 vs. Q4 2013
Loans not covered under FDIC loss sharing agreements:
Commercial	$	8,134,267	$	8,058,714	$	10,037,184	$	75,553		$	(1,902,917	)
Construction		251,820		211,850		206,084		39,970			45,736
Legacy [1]		80,818		91,015		211,135		(10,197	)		(130,317	)
Lease financing		564,389		550,514		543,761		13,875			20,628
Mortgage		6,502,886		6,555,337		6,681,476		(52,451	)		(178,590	)
Consumer		3,870,271		3,891,786		3,932,226		(21,515	)		(61,955	)
Total non-covered loans held-in-portfolio	$	19,404,451	$	19,359,216	$	21,611,866	$	45,235		$	(2,207,415	)
Loans covered under FDIC loss sharing agreements		2,542,662		2,654,263		2,984,427		(111,601	)		(441,765	)
Total loans held-in-portfolio	$	21,947,113	$	22,013,479	$	24,596,293	$	(66,366	)	$	(2,649,180	)
Loans held-for-sale:
Commercial	$	309	$	33,658	$	603	$	(33,349	)	$	(294	)
Legacy [1]		319		31,823		-		(31,504	)		319
Mortgage		100,166		106,832		109,823		(6,666	)		(9,657	)
Consumer		5,310		5,695		-		(385	)		5,310
Total loans held-for-sale	$	106,104	$	178,008	$	110,426	$	(71,904	)	$	(4,322	)
Total loans	$	22,053,217	$	22,191,487	$	24,706,719	$	(138,270	)	$	(2,653,502	)

[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.
Note: Loans from discontinued operations as of September 30,2014 are presented as part of “Assets from discontinued operations” in the Consolidated Statement of Financial Condition.

Deposits - Ending Balances
							Variance
(In thousands)	31-Dec-14		30-Sep-14		31-Dec-13		Q4 2014 vs. Q3 2014			Q4 2014 vs. Q4 2013
Demand deposits [1]	$	6,606,060	$	6,326,220	$	6,590,963	$	279,840		$	15,097
Savings, NOW and money market deposits (non-brokered)		10,320,782		10,251,602		11,255,309		69,180			(934,527	)
Savings, NOW and money market deposits (brokered)		406,248		386,573		553,521		19,675			(147,273	)
Time deposits (non-brokered)		5,960,401		5,636,443		6,478,103		323,958			(517,702	)
Time deposits (brokered CDs)		1,514,044		1,865,267		1,833,249		(351,223	)		(319,205	)
Total deposits	$	24,807,535	$	24,466,105	$	26,711,145	$	341,430		$	(1,903,610	)

[1] Includes interest and non-interest demand bearing deposits.
Note: Deposits from discontinued operations as of September 30, 2014 are presented as part of “Liabilities from discontinued operations” in the Consolidated Statement of Financial Condition.


Popular, Inc.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table H - Non-Performing Assets
(Unaudited)

																Variance
(Dollars in thousands)	31-Dec-14			As a % of loans HIP by category		30-Sep-14			As a % of loans HIP by category		31-Dec-13			As a % of loans HIP by category		Q4 2014 vs. Q3 2014			Q4 2014 vs. Q4 2013
Non-accrual loans:
Commercial	$	259,527		3.2	%	$	252,331		3.1	%	$	279,053		2.8	%	$	7,196		$	(19,526	)
Construction		13,812		5.5			19,148		9.0			23,771		11.5			(5,336	)		(9,959	)
Legacy [1]		1,545		1.9			5,648		6.2			15,050		7.1			(4,103	)		(13,505	)
Lease financing		3,102		0.5			3,168		0.6			3,495		0.6			(66	)		(393	)
Mortgage		300,466		4.6			295,125		4.5			232,681		3.5			5,341			67,785
Consumer		46,886		1.2			46,525		1.2			43,898		1.1			361			2,988
Total non-performing loans held-in-portfolio, excluding covered loans [2]		625,338		3.2	%		621,945		3.2	%		597,948		2.8	%		3,393			27,390
Non-performing loans held-for-sale [3]		18,899					19,728					1,092					(829	)		17,807
Other real estate owned (“OREO”), excluding covered OREO		135,500					135,256					135,501					244			(1	)
Total non-performing assets, excluding covered assets		779,737					776,929					734,541					2,808			45,196
Covered loans and OREO		148,099					166,533					197,388					(18,434	)		(49,289	)
Total non-performing assets	$	927,836				$	943,462				$	931,929				$	(15,626	)	$	(4,093	)
Accruing loans past due 90 days or more [4]	$	447,990				$	426,459				$	418,028				$	21,531		$	29,962
Ratios excluding covered loans:
Non-performing loans held-in-portfolio to loans held-in-portfolio		3.22	%				3.21	%				2.77	%
Allowance for loan losses to loans held-in-portfolio		2.68					2.69					2.49
Allowance for loan losses to non-performing loans, excluding loans held-for-sale		83.11					83.88					90.05
Ratios including covered loans:
Non-performing assets to total assets		2.80	%				2.77	%				2.61	%
Non-performing loans held-in-portfolio to loans held-in-portfolio		2.93					2.89					2.55
Allowance for loan losses to loans held-in-portfolio		2.74					2.78					2.60
Allowance for loan losses to non-performing loans, excluding loans held-for-sale		93.57					95.96					102.11

[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] Total non-performing loans held-in-portfolio, excluding covered loans, excludes $48 thousand in discontinued operations as of September 30, 2014.
[3] Non-performing loans held-for-sale as of December 31, 2014, consisted of $14.0 million in mortgage loans, $309 thousand in commercial loans and $4.5 million in consumer loans (September 30, 2014 - consisted of $14.7 million in mortgage loans, $427 thousand in commercial loans and $4.6 million in consumer loans and $10 thousand in legacy loans; December 31, 2013 - $603 thousand in legacy loans and $489 thousand in mortgage loans).
[4] 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 non-performing since the principal repayment is insured. These balances include $125 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2014 (September 30, 2014 - $125 million; December 31, 2013 - $115 million).


Popular, Inc.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table I - Activity in Non-Performing Loans
(Unaudited)


Commercial loans held-in-portfolio:
	Quarter ended									Quarter ended
	31-Dec-14									30-Sep-14
(In thousands)	BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs	$	244,425		$	7,906		$	252,331		$	253,552		$	24,581		$	278,133
Plus:
New non-performing loans		112,071			1,245			113,316			23,410			4,541			27,951
Less:
Non-performing loans transferred to OREO		(2,072	)		-			(2,072	)		(2,706	)		-			(2,706	)
Non-performing loans charged-off		(17,492	)		(1,298	)		(18,790	)		(10,085	)		(3,103	)		(13,188	)
Loans returned to accrual status / loan collections		(79,720	)		(2,895	)		(82,615	)		(19,746	)		(2,649	)		(22,395	)
Loans transferred to held-for-sale		-			(3,025	)		(3,025	)		-			(22,967	)		(22,967	)
Non-performing loans transferred from (to) discontinued operations		-			382			382			-			7,503			7,503
Ending balance NPLs	$	257,212		$	2,315		$	259,527		$	244,425		$	7,906		$	252,331


Construction loans held-in-portfolio:
	Quarter ended									Quarter ended
	31-Dec-14									30-Sep-14
(In thousands)	BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs	$	19,148		$	-		$	19,148		$	21,456		$	-		$	21,456
Plus:
New non-performing loans		573			-			573			-			-			-
Less:
Non-performing loans charged-off		(244	)		-			(244	)		(985	)		-			(985	)
Loans returned to accrual status / loan collections		(5,665	)		-			(5,665	)		(1,323	)		-			(1,323	)
Ending balance NPLs	$	13,812		$	-		$	13,812		$	19,148		$	-		$	19,148


Mortgage loans held-in-portfolio:
	Quarter ended									Quarter ended
	31-Dec-14									30-Sep-14
(In thousands)	BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs	$	283,433		$	11,692		$	295,125		$	262,356		$	23,964		$	286,320
Plus:
New non-performing loans		88,983			8,159			97,142			95,207			2,802			98,009
Less:
Non-performing loans transferred to OREO		(1,051	)		-			(1,051	)		(3,062	)		(870	)		(3,932	)
Non-performing loans charged-off		(8,951	)		(96	)		(9,047	)		(11,309	)		(395	)		(11,704	)
Loans returned to accrual status / loan collections		(71,232	)		(4,309	)		(75,541	)		(53,003	)		(686	)		(53,689	)
Loans transferred to held-for-sale		-			(6,162	)		(6,162	)		-			(13,123	)		(13,123	)
Reclassification to consumer loans		-			-			-			(6,756	)		-			(6,756	)
Ending balance NPLs	$	291,182		$	9,284		$	300,466		$	283,433		$	11,692		$	295,125


Legacy loans held-in-portfolio:
	Quarter ended									Quarter ended
	31-Dec-14									30-Sep-14
(In thousands)	BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs	$	-		$	5,648		$	5,648		$	-		$	8,323		$	8,323
Plus:
New non-performing loans		-			213			213			-			1,852			1,852
Advances on existing non-performing loans		-			97			97			-			149			149
Less:
Non-performing loans transferred to OREO		-			-			-			-			(189	)		(189	)
Non-performing loans charged-off		-			(744	)		(744	)		-			(2,109	)		(2,109	)
Loans returned to accrual status / loan collections		-			(2,791	)		(2,791	)		-			(975	)		(975	)
Loans transferred to held-for-sale		-			(878	)		(878	)		-			(2,529	)		(2,529	)
Non-performing loans transferred from (to) discontinued operations		-			-			-			-			1,126			1,126
Ending balance NPLs	$	-		$	1,545		$	1,545		$	-		$	5,648		$	5,648


Total non-performing loans held-in-portfolio (excluding consumer loans):
	Quarter ended									Quarter ended
	31-Dec-14									30-Sep-14
(In thousands)	BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs	$	547,006		$	25,246		$	572,252		$	537,364		$	56,868		$	594,232
Plus:
New non-performing loans		201,627			9,617			211,244			118,617			9,195			127,812
Advances on existing non-performing loans		-			97			97			-			149			149
Less:
Non-performing loans transferred to OREO		(3,123	)		-			(3,123	)		(5,768	)		(1,059	)		(6,827	)
Non-performing loans charged-off		(26,687	)		(2,138	)		(28,825	)		(22,379	)		(5,607	)		(27,986	)
Loans returned to accrual status / loan collections		(156,617	)		(9,995	)		(166,612	)		(74,072	)		(4,310	)		(78,382	)
Loans transferred to held-for-sale		-			(10,065	)		(10,065	)		-			(38,619	)		(38,619	)
Non-performing loans transferred from (to) discontinued operations		-			382			382			-			8,629			8,629
Reclassification to consumer loans		-			-			-			(6,756	)		-			(6,756	)
Ending balance NPLs	$	562,206		$	13,144		$	575,350		$	547,006		$	25,246		$	572,252


Popular, Inc.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)


	Quarter ended									Quarter ended									Quarter ended
	31-Dec-14									30-Sep-14									31-Dec-13
(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	$	521,687		$	89,688		$	611,375		$	526,246		$	98,665		$	624,911		$	526,100		$	116,828		$	642,928
Provision for loan losses - Continuing operations		51,637			(3,646	)		47,991			68,166			12,463			80,629			49,927			8,907			58,834
Provision for loan losses - Discontinued operations		-			-			-			-			-			-			(2,198	)		-			(2,198	)
		573,324			86,042			659,366			594,412			111,128			705,540			573,829			125,735			699,564
Net loans charged-off (recovered):
BPPR
Commercial		13,890			3,230			17,120			1,011			16,590			17,601			15,177			13,433			28,610
Construction		(279	)		(1,172	)		(1,451	)		(1,237	)		4,066			2,829			(1,796	)		6,067			4,271
Lease financing		751			(6	)		745			1,410			(1	)		1,409			838			-			838
Mortgage		12,228			2,725			14,953			13,330			1,809			15,139			6,981			4,729			11,710
Consumer		25,933			(808	)		25,125			24,168			(1,024	)		23,144			14,056			(586	)		13,470
Total BPPR		52,523			3,969			56,492			38,682			21,440			60,122			35,256			23,643			58,899

BPNA
Commercial		(900	)		-			(900	)		(893	)		-			(893	)		1,089			-			1,089
Construction		(2	)		-			(2	)		(59	)		-			(59	)		-			-			-
Legacy [1]		(3,877	)		-			(3,877	)		221			-			221			(5,817	)		-			(5,817	)
Mortgage		(93	)		-			(93	)		26			-			26			660			-			660
Consumer		2,536			-			2,536			2,492			-			2,492			3,465			-			3,465
Discontinued operations		-			-			-			-			-			-			713			-			713
Total BPNA		(2,336	)		-			(2,336	)		1,787			-			1,787			110			-			110
Total loans charged-off (recovered) - Popular, Inc.		50,187			3,969			54,156			40,469			21,440			61,909			35,366			23,643			59,009
Net write-downs [3]		(3,418	)		-			(3,418	)		(32,256	)		-			(32,256	)		-			-			-
Net write-downs related to loans transferred to discontinued operations		-			-			-			-			-			-			-			-			-
Balance at end of period	$	519,719		$	82,073		$	601,792		$	521,687		$	89,688		$	611,375		$	538,463		$	102,092		$	640,555

POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio		1.04	%					0.99	%		0.83	%					1.12	%		0.66	%					0.97	%
Provision for loan losses to net charge-offs [2]		0.99x						0.85x			1.39x						1.11x			1.35x						0.96x

BPPR
Annualized net charge-offs to average loans held-in-portfolio		1.33	%					1.22	%		0.98	%					1.30	%		0.90	%					1.26	%
Provision for loan losses to net charge-offs [2]		0.99x						0.86x			1.60x						1.24x			1.78x						1.22x

BPNA
Annualized net charge-offs (recoveries) to average loans held-in-portfolio								(0.27	)%								0.19	%								0.01	%
Provision for loan losses to net charge-offs								N.M.									N.M.									(135.72)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 loans sold or reclassified to held-for-sale during the quarter ended December 31, 2014 and September 30, 2014.
[3] Net write-downs for the quarters ended December 31, 2014 and September 30, 2014 are related to loans sold or reclassified to held-for-sale.
N.M. - Not meaningful.


	Year ended									Year ended
(Dollars in thousands)	31-Dec-14									31-Dec-13
	Non-covered loans			Covered loans			Total			Non-covered loans			Covered loans		Total
Balance at beginning of period	$	538,463		$	102,092		$	640,555		$	621,701		$	108,906	$	730,607
Provision for loan losses - Continuing operations		223,999			46,135			270,134			536,710			69,396		606,106
Provision for loan losses - Discontinued operations		(6,764	)		-			(6,764	)		(3,543	)		-		(3,543	)
		755,698			148,227			903,925			1,154,868			178,302		1,333,170
Net loans charged-off (recovered):
BPPR
Commercial		39,382			32,906			72,288			85,601			27,607		113,208
Construction		(3,509	)		27,686			24,177			(8,642	)		34,108		25,466
Lease financing		3,961			(7	)		3,954			3,506			-		3,506
Mortgage		44,000			8,442			52,442			47,736			10,614		58,350
Consumer		96,655			(2,873	)		93,782			75,560			3,881		79,441
Total BPPR		180,489			66,154			246,643			203,761			76,210		279,971

BPNA
Commercial		1,105			-			1,105			9,184			-		9,184
Construction		(237	)		-			(237	)		-			-		-
Legacy [1]		(9,070	)		-			(9,070	)		(3,897	)		-		(3,897	)
Mortgage		1,196			-			1,196			7,803			-		7,803
Consumer		12,165			-			12,165			18,004			-		18,004
Discontinued operations		(5,545	)		-			(5,545	)		18,905			-		18,905
Total BPNA		(386	)		-			(386	)		49,999			-		49,999
Total loans charged-off (recovered) - Popular, Inc.		180,103			66,154			246,257			253,760			76,210		329,970
Net write-downs [3]		(35,674	)		-			(35,674	)		(362,645	)		-		(362,645	)
Net write-downs related to loans transferred to discontinued operations		(20,202	)		-			(20,202	)		-			-		-
Balance at end of period	$	519,719		$	82,073		$	601,792		$	538,463		$	102,092	$	640,555

POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio		0.92	%					1.10	%		1.19	%				1.34	%
Provision for loan losses to net charge-offs [2]		1.17x						1.04x			0.85x					0.86x

BPPR
Annualized net charge-offs to average loans held-in-portfolio		1.14	%					1.33	%		1.30	%				1.49	%
Provision for loan losses to net charge-offs [2]		1.38x						1.20x			1.13x					1.07x

BPNA
Annualized net charge-offs to average loans held-in-portfolio								(0.01	)%							0.87	%
Provision (reversal) for loan losses to net charge-offs								102.57x								(0.29)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 loans sold or reclassified to held-for-sale during the quarter ended December 31, 2014 and December 31, 2013.
[3] Net write-downs for the year ended December 31, 2014 and 2013 are related to loans sold or reclassified to held-for-sale.


Popular, Inc.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED
(Unaudited)


31-Dec-14
(Dollars in thousands)		Commercial			Construction			Legacy [3]			Mortgage			Lease financing			Consumer			Total [2]
Specific ALLL		$	64,736		$	363		$	-		$	46,111		$	770		$	28,161		$	140,141
Impaired loans	[1]	$	357,161		$	13,268		$	-		$	435,824		$	3,023		$	117,732		$	927,008
Specific ALLL to impaired loans	[1]		18.13	%		2.74	%		-	%		10.58	%		25.47	%		23.92	%		15.12	%
General ALLL		$	146,501		$	6,307		$	2,944		$	77,211		$	6,361		$	140,254		$	379,578
Loans held-in-portfolio, excluding impaired loans	[1]	$	7,777,106		$	238,552		$	80,818		$	6,067,062		$	561,366		$	3,752,539		$	18,477,443
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]		1.88	%		2.64	%		3.64	%		1.27	%		1.13	%		3.74	%		2.05	%
Total ALLL		$	211,237		$	6,670		$	2,944		$	123,322		$	7,131		$	168,415		$	519,719
Total non-covered loans held-in-portfolio	[1]	$	8,134,267		$	251,820		$	80,818		$	6,502,886		$	564,389		$	3,870,271		$	19,404,451
ALLL to loans held-in-portfolio	[1]		2.60	%		2.65	%		3.64	%		1.90	%		1.26	%		4.35	%		2.68	%

[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, 2014 the general allowance on the covered loans amounted to $82.1 million, while the specific reserve amounted to $5 thousand.
[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-14
(Dollars in thousands)		Commercial			Construction			Legacy [3]			Mortgage			Lease financing			Consumer			Total [2]
Specific ALLL		$	64,750		$	133		$	-		$	38,207		$	698		$	28,166		$	131,954
Impaired loans	[1]	$	373,501		$	18,894		$	2,311		$	431,720		$	2,709		$	116,830		$	945,965
Specific ALLL to impaired loans	[1]		17.34	%		0.70	%		-	%		8.85	%		25.77	%		24.11	%		13.95	%
General ALLL		$	151,681		$	6,375		$	4,001		$	83,314		$	6,673		$	137,689		$	389,733
Loans held-in-portfolio, excluding impaired loans	[1]	$	7,685,213		$	192,956		$	88,704		$	6,123,617		$	547,805		$	3,774,956		$	18,413,251
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]		1.97	%		3.30	%		4.51	%		1.36	%		1.22	%		3.65	%		2.12	%
Total ALLL		$	216,431		$	6,508		$	4,001		$	121,521		$	7,371		$	165,855		$	521,687
Total non-covered loans held-in-portfolio	[1]	$	8,058,714		$	211,850		$	91,015		$	6,555,337		$	550,514		$	3,891,786		$	19,359,216
ALLL to loans held-in-portfolio	[1]		2.69	%		3.07	%		4.40	%		1.85	%		1.34	%		4.26	%		2.69	%

[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, 2014 the general allowance on the covered loans amounted to $89.7 million, while the specific reserve amounted to $4 thousand.
[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.


Popular, Inc.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS
(Unaudited)

31-Dec-14
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
Specific ALLL non-covered loans	$	64,736		$	363		$	45,838		$	770		$	27,796		$	139,503
General ALLL non-covered loans		136,853			5,120			75,022			6,361			126,276			349,632
ALLL - non-covered loans		201,589			5,483			120,860			7,131			154,072			489,135
Specific ALLL covered loans		5			-			-			-			-			5
General ALLL covered loans		30,866			7,202			40,948			-			3,052			82,068
ALLL - covered loans		30,871			7,202			40,948			-			3,052			82,073
Total ALLL	$	232,460		$	12,685		$	161,808		$	7,131		$	157,124		$	571,208
Loans held-in-portfolio:
Impaired non-covered loans	$	356,911		$	13,268		$	431,569		$	3,023		$	115,759		$	920,530
Non-covered loans held-in-portfolio, excluding impaired loans		6,017,892			146,116			5,018,932			561,366			3,273,278			15,017,584
Non-covered loans held-in-portfolio		6,374,803			159,384			5,450,501			564,389			3,389,037			15,938,114
Impaired covered loans		4,487			2,419			-			-			-			6,906
Covered loans held-in-portfolio, excluding impaired loans		1,610,294			67,917			822,986			-			34,559			2,535,756
Covered loans held-in-portfolio		1,614,781			70,336			822,986			-			34,559			2,542,662
Total loans held-in-portfolio	$	7,989,584		$	229,720		$	6,273,487		$	564,389		$	3,423,596		$	18,480,776


30-Sep-14
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
Specific ALLL non-covered loans	$	64,750		$	133		$	37,491		$	698		$	27,723		$	130,795
General ALLL non-covered loans		140,906			5,534			81,728			6,673			123,816			358,657
ALLL - non-covered loans		205,656			5,667			119,219			7,371			151,539			489,452
Specific ALLL covered loans		4			-			-			-			-			4
General ALLL covered loans		36,411			7,193			42,524			-			3,556			89,684
ALLL - covered loans		36,415			7,193			42,524			-			3,556			89,688
Total ALLL	$	242,071		$	12,860		$	161,743		$	7,371		$	155,095		$	579,140
Loans held-in-portfolio:
Impaired non-covered loans	$	373,049		$	18,894		$	424,336		$	2,709		$	114,850		$	933,838
Non-covered loans held-in-portfolio, excluding impaired loans		5,896,673			129,889			5,028,786			547,805			3,286,492			14,889,645
Non-covered loans held-in-portfolio		6,269,722			148,783			5,453,122			550,514			3,401,342			15,823,483
Impaired covered loans		2,765			2,419			-			-			-			5,184
Covered loans held-in-portfolio, excluding impaired loans		1,693,886			72,049			846,472			-			36,672			2,649,079
Covered loans held-in-portfolio		1,696,651			74,468			846,472			-			36,672			2,654,263
Total loans held-in-portfolio	$	7,966,373		$	223,251		$	6,299,594		$	550,514		$	3,438,014		$	18,477,746


Variance
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
Specific ALLL non-covered loans	$	(14	)	$	230		$	8,347		$	72		$	73		$	8,708
General ALLL non-covered loans		(4,053	)		(414	)		(6,706	)		(312	)		2,460			(9,025	)
ALLL - non-covered loans		(4,067	)		(184	)		1,641			(240	)		2,533			(317	)
Specific ALLL covered loans		1			-			-			-			-			1
General ALLL covered loans		(5,545	)		9			(1,576	)		-			(504	)		(7,616	)
ALLL - covered loans		(5,544	)		9			(1,576	)		-			(504	)		(7,615	)
Total ALLL	$	(9,611	)	$	(175	)	$	65		$	(240	)	$	2,029		$	(7,932	)
Loans held-in-portfolio:
Impaired non-covered loans	$	(16,138	)	$	(5,626	)	$	7,233		$	314		$	909		$	(13,308	)
Non-covered loans held-in-portfolio, excluding impaired loans		121,219			16,227			(9,854	)		13,561			(13,214	)		127,939
Non-covered loans held-in-portfolio		105,081			10,601			(2,621	)		13,875			(12,305	)		114,631
Impaired covered loans		1,722			-			-			-			-			1,722
Covered loans held-in-portfolio, excluding impaired loans		(83,592	)		(4,132	)		(23,486	)		-			(2,113	)		(113,323	)
Covered loans held-in-portfolio		(81,870	)		(4,132	)		(23,486	)		-			(2,113	)		(111,601	)
Total loans held-in-portfolio	$	23,211		$	6,469		$	(26,107	)	$	13,875		$	(14,418	)	$	3,030


Popular, Inc.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS
(Unaudited)

31-Dec-14
U.S. Mainland
(In thousands)	Commercial			Construction		Legacy			Mortgage			Consumer			Total
Allowance for credit losses:
Specific ALLL	$	-		$	-	$	-		$	273		$	365		$	638
General ALLL		9,648			1,187		2,944			2,189			13,978			29,946
Total ALLL	$	9,648		$	1,187	$	2,944		$	2,462		$	14,343		$	30,584
Loans held-in-portfolio:
Impaired loans	$	250		$	-	$	-		$	4,255		$	1,973		$	6,478
Loans held-in-portfolio, excluding impaired loans		1,759,214			92,436		80,818			1,048,130			479,261			3,459,859
Total loans held-in-portfolio	$	1,759,464		$	92,436	$	80,818		$	1,052,385		$	481,234		$	3,466,337


30-Sep-14
U.S. Mainland
(In thousands)	Commercial			Construction		Legacy			Mortgage			Consumer			Total
Allowance for credit losses:
Specific ALLL	$	-		$	-	$	-		$	716		$	443		$	1,159
General ALLL		10,775			841		4,001			1,586			13,873			31,076
Total ALLL	$	10,775		$	841	$	4,001		$	2,302		$	14,316		$	32,235
Loans held-in-portfolio:
Impaired loans	$	452		$	-	$	2,311		$	7,384		$	1,980		$	12,127
Loans held-in-portfolio, excluding impaired loans		1,788,540			63,067		88,704			1,094,831			488,464			3,523,606
Total loans held-in-portfolio	$	1,788,992		$	63,067	$	91,015		$	1,102,215		$	490,444		$	3,535,733


Variance
(In thousands)	Commercial			Construction		Legacy			Mortgage			Consumer			Total
Allowance for credit losses:
Specific ALLL	$	-		$	-	$	-		$	(443	)	$	(78	)	$	(521	)
General ALLL		(1,127	)		346		(1,057	)		603			105			(1,130	)
Total ALLL	$	(1,127	)	$	346	$	(1,057	)	$	160		$	27		$	(1,651	)
Loans held-in-portfolio:
Impaired loans	$	(202	)	$	-	$	(2,311	)	$	(3,129	)	$	(7	)	$	(5,649	)
Loans held-in-portfolio, excluding impaired loans		(29,326	)		29,369		(7,886	)		(46,701	)		(9,203	)		(63,747	)
Total loans held-in-portfolio	$	(29,528	)	$	29,369	$	(10,197	)	$	(49,830	)	$	(9,210	)	$	(69,396	)


Popular, Inc.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table N - Reconciliation to GAAP Financial Measures
(Unaudited)


(In thousands, except share or per share information)	31-Dec-14			30-Sep-14			31-Dec-13
Total stockholders’ equity	$	4,271,390		$	4,298,392		$	4,626,150
Less: Preferred stock		(50,160	)		(50,160	)		(50,160	)
Less: Goodwill		(465,676	)		(461,246	)		(647,757	)
Less: Other intangibles		(37,595	)		(37,777	)		(45,132	)
Total tangible common equity	$	3,717,959		$	3,749,209		$	3,883,101
Total assets	$	33,094,172		$	34,099,095		$	35,749,333
Less: Goodwill		(465,676	)		(461,246	)		(647,757	)
Less: Other intangibles		(37,595	)		(37,777	)		(45,132	)
Total tangible assets	$	32,590,901		$	33,600,072		$	35,056,444
Tangible common equity to tangible assets		11.41	%		11.16	%		11.08	%
Common shares outstanding at end of period		103,476,847			103,448,206			103,397,699
Tangible book value per common share	$	35.93		$	36.24		$	37.56


(In thousands)	31-Dec-14			30-Sep-14			31-Dec-13
Common stockholders’ equity	$	4,221,230		$	4,248,232		$	4,575,990
Less: Unrealized losses (gains) on available-for-sale securities, net of tax^[1]		(8,465	)		16,787			48,344
Less: Disallowed deferred tax assets^[2]		(589,518	)		(618,141	)		(626,570	)
Less: Disallowed goodwill and other intangible assets, net of deferred tax liability		(447,770	)		(444,759	)		(643,185	)
Less: Aggregate adjusted carrying value of all non-financial equity investments		(1,299	)		(1,462	)		(1,442	)
Add: Adjustment of pension and postretirement benefit plans and unrealized gains (losses) on cash flow hedges, net of tax^[3]		205,505			102,279			104,302
Total Tier 1 common equity	$	3,379,683		$	3,302,936		$	3,457,439
Tier 1 common equity to risk-weighted assets		15.92	%		14.74	%		14.83	%

[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 $162 million of the Corporation’s $810 million of net deferred tax assets included as “Other assets” in the consolidated statement of financial condition at December 31, 2014 (September 30, 2014 - $147 million and $758 million, respectively; December 31, 2013 - $167 million and $762 million, respectively), were included without limitation in regulatory capital pursuant to the risk-based capital guidelines, while approximately $590 million of such assets at December 31, 2014 (September 30, 2014 - $618 million; December 31, 2013 - $627 million) exceeded the limitation imposed by these guidelines and, as “disallowed deferred tax assets”, were deducted in arriving at Tier 1 capital. The remaining $58 million of the Corporation’s other net deferred tax assets at December 31, 2014 (September 30, 2014 - $(7) million; December 31, 2013 - $(32) 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 liabilities 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 2014 Earnings Release
Table O - Financial Information - Westernbank Covered Loans
(Unaudited)

Revenues
	Quarters ended
(In thousands)	31-Dec-14			30-Sep-14			Variance
Interest income on covered loans	$	61,285		$	68,251		$	(6,966	)
FDIC loss share expense:
Amortization of indemnification asset		(28,948	)		(42,524	)		13,576
Reversal of accelerated amortization in prior periods		-			15,046			(15,046	)
80% mirror accounting on credit impairment losses [1]		(3,287	)		9,863			(13,150	)
80% mirror accounting on reimbursable expenses		18,742			15,545			3,197
80% mirror accounting on recoveries on covered assets, including rental income on OREOs, subject to reimbursement to the FDIC		(2,542	)		(2,633	)		91
Change in true-up payment obligation		(2,831	)		1,078			(3,909	)
Other		173			(1,239	)		1,412
Total FDIC loss share expense		(18,693	)		(4,864	)		(13,829	)
Total revenues		42,592			63,387			(20,795	)
Provision for loan losses		(3,646	)		12,463			(16,109	)
Total revenues less provision for loan losses	$	46,238		$	50,924		$	(4,686	)

[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-14			30-Sep-14			Variance
Professional fees	$	7,167		$	5,164		$	2,003
OREO expenses		13,116			11,661			1,455
Other operating expenses		2,668			3,160			(492	)
Total operating expenses	$	22,951		$	19,985		$	2,966
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-14			30-Sep-14			Variance
Covered loans	$	2,615		$	2,727		$	(112	)
FDIC loss share asset		616			687			(71	)


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

	Quarters ended
	31-Dec-14						30-Sep-14
(In thousands)	Accretable yield			Carrying amount of loans			Accretable yield			Carrying amount of loans
Beginning balance	$	1,312,521		$	2,528,433		$	1,280,758		$	2,610,664
Accretion		(59,474	)		59,474			(66,017	)		66,017
Changes in expected cash flows		18,290			-			97,780			-
Collections / charge-offs		-			(143,735	)		-			(148,248	)
Ending balance		1,271,337			2,444,172			1,312,521			2,528,433
Allowance for loan losses - ASC 310-30 covered loans		-			(78,846	)		-			(85,640	)
Ending balance, net of allowance for loan losses	$	1,271,337		$	2,365,326		$	1,312,521		$	2,442,793


Activity in the carrying amount of the FDIC indemnity asset

				Quarters ended
(In thousands)				31-Dec-14						30-Sep-14
Balance at beginning of period				$	681,106					$	751,553
Amortization					(28,948	)					(42,524	)
Reversal of accelerated amortization in prior periods					-						15,046
Credit impairment losses to be covered under loss sharing agreements					(3,287	)					9,863
Reimbursable expenses to be covered under loss sharing agreements					18,742						15,545
Payments from FDIC under loss sharing agreements					(83,434	)					(73,106	)
Recoveries on covered assets, including rental income on OREOs, subject to reimbursement to the FDIC					7,527						4,729
Balance at end of period					591,706						681,106
Balance due to the FDIC for recoveries on covered assets					(49,252	)					(44,775	)
Net balance of indemnity asset and amounts due from the FDIC				$	542,454					$	636,331


Activity in the remaining FDIC loss share asset amortization

				Quarters ended
(In thousands)				31-Dec-14						30-Sep-14
Balance at beginning of period				$	66,562					$	105,939
Amortization					(28,948	)					(42,524	)
Impact of lower projected losses					15,481						3,147
Balance at end of period				$	53,095					$	66,562


POPULAR, INC.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table P - Financial Information from Discontinued Operations
(Unaudited)

Assets and Liabilities from Discontinued Operations

(In thousands)							31-Dec-14			30-Sep-14			Variance

Cash							$	-		$	9,500		$	(9,500	)
Loans held-for-sale								-			1,099,673			(1,099,673	)
Premises and equipment, net								-			8,596			(8,596	)
Other assets								-			11,284			(11,284	)
Total assets							$	-		$	1,129,053		$	(1,129,053	)

Deposits							$	-		$	1,089,046		$	(1,089,046	)
Other liabilities								5,064			17,716			(12,652	)
Total liabilities							$	5,064		$	1,106,762		$	(1,101,698	)
Net (liabilities) assets							$	(5,064	)	$	22,291		$	(27,355	)


Components of Net Income (Loss) from Discontinued Operations

	Quarters ended									Years ended
(In thousands)	31-Dec-14			30-Sep-14			31-Dec-13			31-Dec-14			31-Dec-13

Net interest income	$	4,441		$	16,022		$	21,834		$	61,352		$	88,006
Provision (reversal) for loan losses		-			-			(2,198	)		(6,764	)		(3,543	)
Net gain on sale of regions		8,054			25,775			-			33,829			-
Other non-interest income		1,335			6,567			5,914			27,823			19,556
Total non-interest income		9,389			32,342			5,914			61,652			19,556
Operating expenses:
Personnel costs		3,765			11,941			7,955			36,675			33,170
Net occupancy expenses		(2,785	)		(1,305	)		3,325			3,086			12,680
Professional fees		2,030			4,916			2,642			15,642			11,153
Goodwill impairment charge		-			-			-			186,511			-
Other operating expenses		1,734			3,054			4,171			10,834			13,593
Total operating expenses		4,744			18,606			18,093			252,748			70,596
Net income (loss) from discontinued operations	$	9,086		$	29,758		$	11,853		$	(122,980	)	$	40,509


Popular, Inc.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table R - Adjusted Consolidated Statement of Operations for the Year Ended December 31, 2014 (Non-GAAP)
(Unaudited)

	Year ended
	31-Dec-14
				2nd QTR						3rd QTR								4th QTR
(In thousands)	Actual Results (US GAAP)			TARP repayment discount amortization and Income Tax adjustments [2]			BPNA Reorganization [3]			BPNA Reorganization [3]			Income Tax Adjustments [4]			Indemnification Assets Adjustment [5]		BPNA Reorganization [3]			Other Adjustments			Adjusted Results (Non-GAAP)
Net interest income	$	945,072		$	(414,068	)	$	-		$	(20,663	)	$	-		$	-	$	(18,591	)	$	-		$	1,398,394
Provision for loan losses – non-covered loans		223,999			-			-			11,950			-			-		878			-			211,171
Provision for loan losses – covered loans [1]		46,135			-			-			-			-			-		-			-			46,135
Net interest income after provision for loan losses		674,938			(414,068	)		-			(32,613	)		-			-		(19,469	)		-			1,141,088
Service charges on deposit accounts and other service fees		383,902			-			-			-			-			-		-			-			383,902
Mortgage banking activities		30,615			-			-			-			-			-		-			-			30,615
Net loss and valuation adjustments on investments securities		(870	)		-			-			-			-			-		-			-			(870	)
Trading account profit		4,358			-			-			-			-			-		-			-			4,358
Net gain (loss) on sale of loans, including valuation adjustments on loans held-for-sale		40,591			-			-			-			-			-		1,684			-			38,907
Adjustments (expense) to indemnity reserves on loans sold		(34,098	)		-			-			-			-			-		-			-			(34,098	)
FDIC loss share expense		(103,024	)		-			-			-			-			12,492		-			-			(115,516	)
Other non-interest income		71,572			-			-			-			-			-		-			-			71,572
Total non-interest income		393,046			-			-			-			-			12,492		1,684			-			378,870
Personnel costs		418,679			-			-			-			-			-		-		2,974^[6]				415,705
Net occupancy expenses		86,707			-			-			-			-			-		-		1,895^[7]				84,812
Other taxes		56,918			-			-			-			-			-		-			-			56,918
Loss on early extinguishment of debt		532			-			-			-			-			-		532			-			-
Professional fees		282,055			-			-			-			-			-		-			-			282,055
OREO expense		49,611			-			-			-			-			-		-			-			49,611
Restructuring costs		26,725			-			4,574			8,290			-			-		13,861			-			-
Other operating expenses		272,457			-			-			-			-			-		-			-			272,457
Total operating expenses		1,193,684			-			4,574			8,290			-			-		14,393			4,869			1,161,558
(Loss) income from continuing operations before income tax		(125,700	)		(414,068	)		(4,574	)		(40,903	)		-			12,492		(32,178	)		(4,869	)		358,400
Income tax expense (benefit)		60,802			(15,393	)		-			-			20,048			2,498		-			-			53,649
(Loss) income from continuing operations	$	(186,502	)	$	(398,675	)	$	(4,574	)	$	(40,903	)	$	(20,048	)	$	9,994	$	(32,178	)	$	(4,869	)	$	304,751

[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.
[2] Income tax adjustments include a benefit of approximately $23.4 million related to a Closing Agreement with the PR Department of Treasury, completed during the second quarter of 2014 and the negative impact of the deferred tax asset valuation allowance of approximately $8.0 million recorded at the Holding Company, due to the difference in the tax treatment of the interest expense related to the TARP funds and the newly issued $450 million senior notes.
[3] Includes the aggregated impact of $39.8 million refinancing fees of structured repos, net loss of $11.1 million in bulk loan sales and $26.7 million in restructuring incurred in connection with the reorganization of PCB.
[4] On July 1, 2014, the Government of Puerto Rico approved an amendment to the Internal Revenue Code, which, among things, changed the income tax rate for capital gains from 15% to 20%. As a result, the Corporation recognized an income tax expense of $20.0 million, mainly related to the deferred tax liability associated with the portfolio acquired from Westernbank.
[5] The FDIC indemnity assets amortization included a positive adjustment of $12.5 million to reverse the impact of accelerated amortization expense recorded in prior periods.
[6] Represents the impact of the compensation package granted upon separation of an officer of the Corporation equal to approximately $3.0 million.
[7] Represents the net loss on the early cancellation of a lease at BPNA of $1.9 million.

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


Credit Quality by Segment

(Unaudited)
(In thousands)	Quarters ended
BPPR	31-Dec-14			30-Sep-14			31-Dec-13
Provision for loan losses	$	52,206		$	61,868		$	62,658
Net charge-offs		52,523			38,682			35,256
Total non-performing loans held-in-portfolio, excluding covered loans		606,238			592,229			447,255
Allowance / non-covered loans held-in-portfolio		3.07	%		3.09	%		2.69	%

	Quarters ended
BPNA	31-Dec-14			30-Sep-14			31-Dec-13
Provision for loan losses (reversal of provision) - Continuing operations	$	(569	)	$	6,298		$	(12,731	)
Provision for loan losses (reversal of provision) - Discontinued operations		-			-			(2,198	)
Net charge-offs (recoveries) - Continuing operations		(2,336	)		1,787			(603	)
Net charge-offs (recoveries) - Discontinued operations		-			-			713
Total non-performing loans held-in-portfolio		19,100			29,716			150,693
Allowance / non-covered loans held-in-portfolio		0.88	%		0.91	%		1.95	%


Other Service Fees							Variance
	Quarters ended						Q4 2014 vs.			Q4 2014 vs.			Years ended				Variance
(In thousands)	31-Dec-14		30-Sep-14		31-Dec-13		Q3 2014			Q4 2013			31-Dec-14		31-Dec-13		2014 vs. 2013
Other service fees:
Debit card fees	$	10,929	$	10,673	$	10,785	$	256		$	144		$	43,146	$	41,912	$	1,234
Insurance fees		17,711		12,322		16,743		5,389			968			54,158		52,309		1,849
Credit card fees		17,493		17,078		17,174		415			319			67,639		65,727		1,912
Sale and administration of investment products		7,193		6,605		7,331		588			(138	)		27,711		35,272		(7,561	)
Trust fees		4,469		4,711		4,525		(242	)		(56	)		18,209		17,285		924
Other fees		3,345		3,450		3,529		(105	)		(184	)		14,402		16,846		(2,444	)
Total other service fees	$	61,140	$	54,839	$	60,087	$	6,301		$	1,053		$	225,265	$	229,351	$	(4,086	)

Financial Impact of FDIC-Assisted Transaction

(Unaudited)	Quarters ended									Years ended
(In thousands)	31-Dec-14			30-Sep-14			31-Dec-13			31-Dec-14			31-Dec-13

Income Statement
Interest income on covered loans	$	61,285		$	68,251		$	86,794		$	293,609		$	300,745
Total FDIC loss share expense		(18,693	)		(4,864	)		(37,164	)		(103,024	)		(82,051	)
Other non-interest income		-			-			-			-			593
Provision for loan losses		(3,646	)		12,463			8,907			46,135			69,396
Total revenues less provision for loan losses	$	46,238		$	50,924		$	40,723		$	144,450		$	149,891

Balance Sheet
Loans covered under loss-sharing agreements with FDIC	$	2,542,662		$	2,654,263		$	2,984,427
FDIC loss share asset		542,454			681,106			948,608
FDIC true-up payment obligation		129,304			126,473			127,513


Provision for Loan Losses

(Unaudited)	Quarters ended								Years ended
(In thousands)	31-Dec-14			30-Sep-14		31-Dec-13			31-Dec-14			31-Dec-13
Provision (reversal) for loan losses - non-covered loans:
BPPR	$	52,206		$	61,868	$	62,658		$	242,849		$	547,886
BPNA		(569	)		6,298		(12,731	)		(18,850	)		(11,176	)
Total provision for loan losses - non-covered loans		51,637			68,166		49,927			223,999			536,710
Provision for loan losses - covered loans		(3,646	)		12,463		8,907			46,135			69,396
Total provision for loan losses	$	47,991		$	80,629	$	58,834		$	270,134		$	606,106


Financial Condition Highlights

(Unaudited)
(In thousands)	31-Dec-14		30-Sep-14		31-Dec-13
Money market, trading and investment securities	$	7,475,232	$	7,200,291	$	6,815,244
Loans not covered under loss sharing agreements with the FDIC		19,404,451		19,359,216		21,611,866
Loans covered under loss sharing agreements with the FDIC		2,542,662		2,654,263		2,984,427
Assets from discontinued operations		-		1,129,053		-
Total assets		33,094,172		34,099,095		35,749,333
Deposits		24,807,535		24,466,105		26,711,145
Borrowings		3,004,685		3,375,485		3,645,246
Liabilities from discontinued operations		5,064		1,106,762		-
Total liabilities		28,822,782		29,800,703		31,123,183
Stockholders’ equity		4,271,390		4,298,392		4,626,150

Ratios as of December 31, 2014	Basel I		Basel III		Variance
Tier 1 risk-based capital	18.17	%	16.90	%	(1.27)	%
Total risk-based capital	19.45	%	19.58	%	0.13	%
Tier 1 leverage	11.96	%	11.78	%	(0.18)	%
Common equity tier 1 ratio	15.92	%	16.51	%	0.59	%


POPULAR, INC.
Financial Supplement to Fourth Quarter 2014 Earnings Release
Table Q - Restructuring Charges
(Unaudited)

Restructuring Charges
	Quarters ended
(In thousands)	31-Dec-14		30-Sep-14		Variance

Personnel costs	$	7,692	$	6,194	$	1,498
Net occupancy expenses		3,482		152		3,330
Equipment expenses		126		141		(15	)
Professional fees		1,254		1,431		(177	)
Communications		128		14		114
Other operating expenses		1,179		358		821
Total restructuring costs	$	13,861	$	8,290	$	5,571