XML 87 R43.htm IDEA: XBRL DOCUMENT v2.4.0.8
Subsequent events
3 Months Ended
Mar. 31, 2014
Notes to Financial Statements [Abstract]  
Subsequent events [Text Block]

Note 35Subsequent events

Subsequent events are events and transactions that occur after the balance sheet date but before the financial statements are issued. The effects of subsequent events and transactions are recognized in the financial statements when they provide additional evidence about conditions that existed at the balance sheet date. The Corporation has evaluated events and transactions occurring subsequent to March 31, 2014.

On April 22, 2014, the Corporation entered into definitive agreements to sell its regional operations in California, Illinois and Central Florida with three different buyers. In connection with these transactions, the Corporation intends to centralize certain back office operations previously conducted in these regions, in Puerto Rico and New York. The combined transactions are expected to result in an aggregate loss within a range of $134 million to $194 million, consisting of an estimated pre-tax gain of approximately $26 million and an estimated noncash goodwill write-down within a range of $160 million to $220 million. The amount of the goodwill charge is based on a preliminary estimate and may be materially different depending on the final fair value distribution analysis. However, this non-cash charge will have no impact on the Corporation's tangible capital or regulatory capital ratios. An estimated restructuring charge of approximately $54 million will be taken by the Corporation, comprised of $32 million in severance and retention payments and $22 million in operational set-up costs and lease cancelations. The transactions are expected to be completed during the fourth quarter of 2014.

On April 22, 2014 the Corporation's U.S. bank subsidiary, Popular Community Bank, declared a $250 million cash dividend to the Bank Holding Company, (“BHC”), $100 million of which was contributed by the BHC to the Puerto Rico banking subsidiary, BPPR.