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Trust preferred securities
9 Months Ended
Sep. 30, 2014
Notes to Financial Statements [Abstract]  
Trust Preferred Securities Disclosure [Text Block]

Note 20 Trust preferred securities

At September 30, 2014 and December 31, 2013, statutory trusts established by the Corporation (BanPonce Trust I, Popular Capital Trust I, Popular North America Capital Trust I and Popular Capital Trust II) had issued trust preferred securities (also referred to as “capital securities”) to the public. The proceeds from such issuances, together with the proceeds of the related issuances of common securities of the trusts (the “common securities”), were used by the trusts to purchase junior subordinated deferrable interest debentures (the “junior subordinated debentures”) issued by the Corporation. In August 2009, the Corporation established the Popular Capital Trust III for the purpose of exchanging the shares of Series C preferred stock held by the U.S. Treasury at the time for trust preferred securities issued by this trust. In connection with this exchange, the trust used the Series C preferred stock, together with the proceeds of issuance and sale of common securities of the trust, to purchase junior subordinated debentures issued by the Corporation. As further explained below, the Popular Capital Trust III was dissolved following the repurchase of their capital securities on July 2, 2014.

The sole assets of the trusts consisted of the junior subordinated debentures of the Corporation and the related accrued interest receivable. These trusts are not consolidated by the Corporation pursuant to accounting principles generally accepted in the United States of America.

The junior subordinated debentures are included by the Corporation as notes payable in the consolidated statements of financial condition, while the common securities issued by the issuer trusts are included as other investment securities. The common securities of each trust are wholly-owned, or indirectly wholly-owned, by the Corporation.

The following table presents financial data pertaining to the different trusts at September 30, 2014 and December 31, 2013.

(Dollars in thousands) As of September 30, 2014
          Popular       
  BanPonce   Popular  North America   Popular   
IssuerTrust I Capital Trust I Capital Trust I Capital Trust Il  
                  
Capital securities$ 52,865  $ 181,063  $ 91,651  $ 101,023  
Distribution rate  8.327%   6.700%   6.564%   6.125% 
                  
                  
                  
                  
Common securities$ 1,637  $ 5,601  $ 2,835  $ 3,125  
Junior subordinated debentures                 
 aggregate liquidation amount$ 54,502  $ 186,664  $ 94,486  $ 104,148  
Stated maturity dateFebruary  November  September  December  
  2027  2033  2034  2034  
Reference notes [1],[3],[6]   [2],[4],[5]   [1],[3],[5]   [2],[4],[5]  

(Dollars in thousands) As of December 31, 2013
          Popular         
  BanPonce   Popular  North America   Popular   Popular
IssuerTrust I Capital Trust I Capital Trust I Capital Trust Il  Capital Trust III
                    
Capital securities$ 52,865  $ 181,063  $ 91,651  $ 101,023  $ 935,000
Distribution rate  8.327%   6.700%   6.564%   6.125%  5.000% until,
                  but excluding
                   December 5,
                   2013 and
                   9.000% thereafter
Common securities$ 1,637  $ 5,601  $ 2,835  $ 3,125  $ 1,000
Junior subordinated debentures                   
 aggregate liquidation amount$ 54,502  $ 186,664  $ 94,486  $ 104,148  $ 936,000
Stated maturity dateFebruary  November  September  December  Perpetual
  2027  2033  2034  2034    
Reference notes [1],[3],[6]   [2],[4],[5]   [1],[3],[5]   [2],[4],[5]   [2],[4],[7],[8]

[1] Statutory business trust that is wholly-owned by Popular North America and indirectly wholly-owned by the Corporation.

[2] Statutory business trust that is wholly-owned by the Corporation.

[3] The obligations of PNA under the junior subordinated debentures and its guarantees of the capital securities under the trust are fully and unconditionally guaranteed on a subordinated basis by the Corporation to the extent set forth in the applicable guarantee agreement.

[4] These capital securities are fully and unconditionally guaranteed on a subordinated basis by the Corporation to the extent set forth in the applicable guarantee agreement.

[5] The Corporation has the right, subject to any required prior approval from the Federal Reserve, to redeem after certain dates or upon the occurrence of certain events mentioned below, the junior subordinated debentures at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest to the date of redemption. The maturity of the junior subordinated debentures may be shortened at the option of the Corporation prior to their stated maturity dates (i) on or after the stated optional redemption dates stipulated in the agreements, in whole at any time or in part from time to time, or (ii) in whole, but not in part, at any time within 90 days following the occurrence and during the continuation of a tax event, an investment company event or a capital treatment event as set forth in the indentures relating to the capital securities, in each case subject to regulatory approval.

[6] Same as [5] above, except that the investment company event does not apply for early redemption.

[7] The debentures are perpetual and may be redeemed by Popular at any time, subject to the consent of the Board of Governors of the Federal Reserve System.

[8] Carrying value of junior subordinated debentures of $ 532 million at December 31, 2013 ($ 936 million aggregate liquidation amount, net of $ 404 million discount).