The Corporation has an investment in EVERTEC, Inc. (“EVERTEC”), which provides various processing and information technology services to the Corporation and its subsidiaries and gives BPPR access to the ATH network owned and operated by EVERTEC. As of June 30, 2014, the Corporation's stake in EVERTEC is of 14.8%. The investment in EVERTEC is accounted for under the equity method and is evaluated for impairment if events or circumstances indicate that a decrease in value of the investment has occurred that is other than temporary. Refer to Note 31 “Related party transactions” to the consolidated financial statements included in the Corporation's 2013 Annual Report for details.

The Corporation received $ 2.3 million in dividend distributions during the six months ended June 30, 2014 from its investments in EVERTEC's holding company and none during the six months ended June 30, 2013. The Corporation's equity in EVERTEC is presented in the table which follows and is included as part of “other assets” in the consolidated statements of financial condition.

The Corporation had the following financial condition balances outstanding with EVERTEC at June 30, 2014 and December 31, 2013. Items that represent liabilities to the Corporation are presented with parenthesis.

(In thousands)	June 30, 2014				December 31, 2013
Accounts receivable (Other assets)		3,730		8,634
Deposits		(16,971)		(14,289)
Accounts payable (Other liabilities)		(16,594)		(15,862)
Net total	$	(29,835)	$	(21,517)

The Corporation's proportionate share of income or loss from EVERTEC is included in other operating income in the consolidated statements of operations. The following table presents the Corporation's proportionate share of EVERTEC's income (loss) and changes in stockholders' equity for the quarters and six months ended June 30, 2014 and 2013.

		Quarter ended		Six months ended
(In thousands)		June 30, 2014		June 30, 2014
Share of income from the investment in EVERTEC	$	2,553	$	5,332
Share of other changes in EVERTEC's stockholders' equity		83		321
Share of EVERTEC's changes in equity recognized in income	$	2,636	$	5,653

		Quarter ended		Six months ended
(In thousands)		June 30, 2013		June 30, 2013
Share of loss from the investment in EVERTEC		(18,652)		(17,545)
Share of other changes in EVERTEC's stockholders' equity		37,722		36,067
Share of EVERTEC's changes in equity recognized in income	$	19,070	$	18,522

The following tables present the transactions and service payments between the Corporation and EVERTEC (as an affiliate) and their impact on the results of operations for the quarters and six months ended June 30, 2014 and 2013. Items that represent expenses to the Corporation are presented with parenthesis.


		Quarter ended		Six months ended
(In thousands)	June 30, 2014				June 30, 2014		Category
Interest expense on deposits			(19)			(39)	Interest expense
ATH and credit cards interchange income from services to EVERTEC			6,709			13,128	Other service fees
Rental income charged to EVERTEC			1,750			3,427	Net occupancy
Processing fees on services provided by EVERTEC			(38,877)			(77,639)	Professional fees
Other services provided to EVERTEC			233			454	Other operating expenses
Total		$	(30,204)		$	(60,669)


	Quarter ended		Six months ended
(In thousands)	June 30, 2013		June 30, 2013			Category
Interest income on loan to EVERTEC	$	1,638		$	2,491	Interest income
Interest income on investment securities issued by EVERTEC		306			1,269	Interest income
Interest expense on deposits		(30)			(57)	Interest expense
ATH and credit cards interchange income from services to EVERTEC		6,364			12,389	Other service fees
Debt prepayment penalty paid by EVERTEC		5,856			5,856	Net gain (loss) and valuation adjustments on investment securities
Consulting agreements fees paid by EVERTEC		9,854			9,854	Other operating income
Rental income charged to EVERTEC		1,683			3,364	Net occupancy
Processing fees on services provided by EVERTEC		(38,399)			(76,275)	Professional fees
Other services provided to EVERTEC		226			430	Other operating expenses
Total	$	(12,502)		$	(40,679)

EVERTEC has a letter of credit issued by BPPR, for an amount of $ 3.6 million at June 30, 2014 (December 31, 2013 - $ 3.6 million). The Corporation also agreed to maintain outstanding this letter of credit for a 5-year period which expires on September 30, 2015. EVERTEC and the Corporation entered into a Reimbursement Agreement, in which EVERTEC will reimburse the Corporation for any losses incurred by the Corporation in connection with the performance bonds and the letter of credit. Possible losses resulting from these agreements are considered insignificant.

As indicated in Note 25 to the consolidated financial statements, the Corporation holds a 24.9% equity interest in PRLP 2011 Holdings LLC and currently provides certain financing to the joint venture as well as holds certain deposits from the entity.

The Corporation's equity in PRLP 2011 Holdings, LLC is presented in the table which follows and is included as part of “other assets” in the consolidated statements of financial condition.

The Corporation had the following financial condition balances outstanding with PRLP 2011 Holdings, LLC at June 30, 2014 and December 31, 2013.

(In thousands)	June 30, 2014				December 31, 2013
Loans	$	7,910	$	19,647
Accrued interest receivable		30		65
Deposits (non-interest bearing)		(3,596)		(3,621)
Net total	$	4,344	$	16,091

The Corporation's proportionate share of income or loss from PRLP 2011 Holdings, LLC is included in other operating income in the consolidated statements of operations. The following table presents the Corporation's proportionate share of income (loss) from PRLP 2011 Holdings, LLC for the quarters ended June 30, 2014 and 2013.

		Quarter ended	Six months ended
(In thousands)		June 30, 2014		June 30, 2014
Share of loss from the equity investment in PRLP 2011 Holdings, LLC	$	(32)	$	(1,778)


		Quarter ended	Six months ended
(In thousands)		June 30, 2013		June 30, 2013
Share of income from the equity investment in PRLP 2011 Holdings, LLC	$	733	$	2,730

The following table presents transactions between the Corporation and PRLP 2011 Holdings, LLC and their impact on the Corporation's results of operations for the quarters and six months ended June 30, 2014 and 2013.

As indicated in Note 25 to the consolidated financial statements, effective March 2013 the Corporation holds a 24.9% equity interest in PR Asset Portfolio 2013-1 International, LLC and currently provides certain financing to the joint venture as well as holds certain deposits from the entity.

The Corporation's equity in PR Asset Portfolio 2013-1 International, LLC is presented in the table which follows and is included as part of “other assets” in the consolidated statements of financial condition.

The Corporation had the following financial condition balances outstanding with PR Asset Portfolio 2013-1 International, LLC, at June 30, 2014 and December 31, 2013.

(In thousands)	June 30, 2014		December 31, 2013
Loans	$	130,603	$	160,283
Accrued interest receivable		362		436
Deposits		(20,871)		(20,808)
Net total	$	110,094	$	139,911

The Corporation's proportionate share of income or loss from PR Asset Portfolio 2013-1 International, LLC is included in other operating income in the consolidated statements of operations. The following table presents the Corporation's proportionate share of income (loss) from PR Asset Portfolio 2013-1 International, LLC for the quarter and six months ended June 30, 2014 and 2013.

		Quarter ended		Six months ended
(In thousands)		June 30, 2014		June 30, 2014
Share of income from the equity investment in PR Asset Portfolio 2013-1 International, LLC	$	161	$	1,450


		Quarter ended		Six months ended
(In thousands)		June 30, 2013		June 30, 2013
Share of loss from the equity investment in PR Asset Portfolio 2013-1 International, LLC	$	(2,303)	$	(2,303)

The following table presents transactions between the Corporation and PR Asset Portfolio 2013-1 International, LLC and their impact on the Corporation's results of operations for the quarter ended June 30, 2014 and 2013.

		Quarter ended	Six months ended
(In thousands)		June 30, 2014	June 30, 2014		Category
Interest income on loan to PR Asset Portfolio 2013-1 International, LLC	$	1,082	$	2,344	Interest income
Servicing fee paid by PR Asset Portfolio 2013-1 International, LLC		-		70	Other service fees
Total	$	1,082	$	2,414

		Quarter ended	Six months ended
(In thousands)		June 30, 2013	June 30, 2013		Category
Interest income on loan to PR Asset Portfolio 2013-1 International, LLC	$	116	$	116	Interest income
Servicing fee paid by PR Asset Portfolio 2013-1 International, LLC		45		45	Other service fees
Total	$	161	$	161