Popular, Inc. (Holding company only) financial information

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Note 47 -Popular, Inc. (holding company only) financial information

The following condensed financial information presents the financial position of Popular, Inc. Holding Company only at December 31, 2014and 2013, and the results of its operations and cash flows for each of the three years in the period ended December 31, 2014.

Condensed Statements of Condition
		December 31,
(In thousands)		2014		2013
ASSETS
Cash and due from banks (includes $20,269 due from bank subsidiary (2013 - $10,411))	$	20,448	$	10,595
Money market investments		19,747		18,721
Trading account securities		1,640		1,353
Investment securities available-for-sale, at fair value		231		204
Investment securities held-to-maturity, at amortized cost (2012 - includes $185,000 in subordinated
Other investment securities, at lower of cost or realizable value (includes $8,725 in common
securities from statutory trusts (2013 - $9,725))[1]		9,850		10,850
Investment in BPPR and subsidiaries, at equity		3,389,529		3,127,745
Investment in Popular North America and subsidiaries, at equity		1,221,670		1,511,335
Investment in other non-bank subsidiaries, at equity		267,667		217,486
Advances to subsidiaries		53,769		519,500
Loans to affiliates		-		-
Other loans		1,717		1,592
Less - Allowance for loan losses		41		304
Premises and equipment		2,512		2,135
Investment in equity method investees		47,837		41,248
Other assets (includes $867 due from subsidiaries and affiliate (2013 - $1,085))		20,845		25,947
Total assets	$	5,057,421	$	5,488,407
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable	$	740,812	$	822,351
Other liabilities (includes $4,583 due to subsidiaries and affiliate (2013 - $929))		49,226		39,906
Stockholders’ equity		4,267,383		4,626,150
Total liabilities and stockholders’ equity	$	5,057,421	$	5,488,407
[1] Refer to Note 26 to the consolidated financial statements for information on the statutory trusts.

Condensed Statements of Operations
			Years ended December 31,
(In thousands)			2014		2013		2012
Income:
	Dividends from subsidiaries	$	-	$	37,000	$	5,000
	Interest income (includes $1,829 due from subsidiaries and affiliates (2013 - $17,551;
	2012 - $22,891))		1,931		17,793		23,038
	Earnings from investments in equity method investees		12,291		17,308		40,505
	Other operating income		-		425,968		1,461
	Gain on sale and valuation adjustment of investment securities		-		7,966		-
	Trading account (loss) profit		(40)		161		214
Total income			14,182		506,196		70,218
Expenses:
	Interest expense		492,657		101,245		95,898
	(Reversal of provision) provision for loan losses		(200)		398		404
	Operating expenses (include expenses for services provided by subsidiaries and affiliate
	of $6,882 (2013 - $8,412; 2012 - $9,487)), net of reimbursement by subsidiaries for services
	provided by parent of $67,021 (2013 - $60,402; 2012 - $58,577)		1,633		700		1,705
Total expenses			494,090		102,343		98,007
(Loss) income before income taxes and equity in undistributed
	earnings of subsidiaries		(479,908)		403,853		(27,789)
Income taxes			5,580		1,412		1,702
(Loss) income before equity in undistributed earnings of subsidiaries			(485,488)		402,441		(29,491)
Equity in undistributed earnings of subsidiaries			294,978		156,377		236,948
(Loss) income from continuing operations			(190,510)		558,818		207,457
Equity in undistributed (losses) earnings of discontinued operations			(122,980)		40,509		37,818
Net (loss) income		$	(313,490)	$	599,327	$	245,275
Comprehensive (loss) income, net of tax		$	(354,617)	$	513,450	$	184,955

Condensed Statements of Cash Flows
				Year ended December 31,
(In thousands)				2014		2013		2012
Cash flows from operating activities:
Net (loss) income			$	(313,490)	$	599,327	$	245,275
Adjustments to reconcile net (loss) income to net cash used in
	operating activities:
	Equity in undistributed earnings of subsidiaries
		and dividends from subsidiaries		(171,998)		(196,886)		(274,766)
	(Reversal of provision) provision for loan losses			(200)		398		404
	Net accretion of discounts and amortization of premiums and deferred fees			404,461		30,467		29,058
	Earnings from investments under the equity method			(12,291)		(17,308)		(40,505)
	Deferred income tax (benefit) expense			8,203		(10,937)		(14,109)
	(Gain) loss on:
		Sale and valuation adjustments of investment securities		-		(2,110)		-
		Sale of stock in equity method investee		-		(416,113)		-
	Net (increase) decrease in:
		Trading securities		(288)		(94)		(1,259)
		Other assets		4,736		7,747		9,351
	Net increase (decrease) in:
		Interest payable		7,066		2,704		-
		Other liabilities		(180)		(5,507)		2,581
Total adjustments				239,509		(607,639)		(289,245)
Net cash used in operating activities				(73,981)		(8,312)		(43,970)
Cash flows from investing activities:
	Net (increase) decrease in money market investments			(1,026)		(147)		23,665
	Proceeds from calls, paydowns, maturities and redemptions of investment securities:
		Available-for-sale		-		35,000		-
		Other		1,000		-		-
	Proceeds from sale of investment securities:
		Available-for-sale		-		5,438		-
	Capital contribution to subsidiaries			(100,000)		(272,500)		(103,500)
	Net decrease (increase) in advances to subsidiaries and affiliates			465,731		(234,014)		(36,400)
	Net (originations) repayments on other loans			(279)		269		138
	Return of capital from equity method investments			210,000		-		150,194
	Proceeds from sale of stock in equity method investee			-		481,377		-
	Acquisition of premises and equipment			(1,075)		(352)		(691)
	Proceeds from sale of:
		Premises and equipment		48		33		73
Net cash provided by investing activities				574,399		15,104		33,479
Cash flows from financing activities:
	Payments of notes payable and subordinated notes			(936,000)		-		-
	Proceeds from issuance of notes payable			450,000		-		-
	Proceeds from issuance of common stock			5,394		6,860		9,402
	Dividends paid			(3,723)		(3,723)		(3,723)
	Repurchase of TARP-related warrants			(3,000)		-		-
	Net payments for repurchase of common stock			(3,236)		(437)		(450)
Net cash (used in) provided by financing activities				(490,565)		2,700		5,229
Net increase (decrease) in cash and due from banks				9,853		9,492		(5,262)
Cash and due from banks at beginning of period				10,595		1,103		6,365
Cash and due from banks at end of period			$	20,448	$	10,595	$	1,103

Popular, Inc. (parent company only) received dividend distributions from its direct equity method investees amounting to $4.7 million for the year ended December 31, 2014 (2013 - $4 million).

Notes payable include junior subordinated debentures issued by the Corporation that are associated to capital securities issued by the Popular Capital Trust I, Popular Capital Trust II and Popular Capital Trust III and medium-term notes. Refer to Note 26 for a description of significant provisions related to these junior subordinated debentures. The following table presents the aggregate amounts by contractual maturities of notes payable at December 31, 2014:

Year		(In thousands)
2015	$	-
2016		-
2017		-
2018		-
2019		450,000
Later years		290,812
Subtotal		740,812
Total	$	740,812