Condensed consolidating financial information of guarantor and issuers of registered guaranteed securities (Tables)

12 Months Ended

Dec. 31, 2015

Table Text Block

Schedule of Condensed Balance Sheet [Table Text Block]

Condensed Consolidating Statement of Financial Condition
		At December 31, 2015
							All other
			Popular Inc.		PNA		subsidiaries and		Elimination		Popular, Inc.
(In thousands)			Holding Co.		Holding Co.		eliminations		entries		Consolidated
Assets:
Cash and due from banks			$	24,298	$	600	$	363,620	$	(24,844)	$	363,674
Money market investments				262,204		23,931		2,179,887		(285,930)		2,180,092
Trading account securities, at fair value				2,020		-		69,639		-		71,659
Investment securities available-for-sale, at
	fair value			216		-		6,062,776		-		6,062,992
Investment securities held-to-maturity, at
	amortized cost			-		-		100,903		-		100,903
Other investment securities, at lower of cost
	or realizable value			9,850		4,492		157,906		-		172,248
Investment in subsidiaries				5,539,325		1,789,512		-		(7,328,837)		-
Loans held-for-sale, at lower of cost or
	fair value			-		-		137,000		-		137,000
Loans held-in-portfolio:
	Loans not covered under loss-sharing
	agreements with the FDIC			1,176		-		22,452,637		-		22,453,813
	Loans covered under loss-sharing
	agreements with the FDIC			-		-		646,115		-		646,115
	Less - Unearned income			-		-		107,698		-		107,698
	Allowance for loan losses			3		-		537,108		-		537,111
	Total loans held-in-portfolio, net			1,173		-		22,453,946		-		22,455,119
FDIC loss share-asset				-		-		310,221		-		310,221
Premises and equipment, net				2,823		-		499,788		-		502,611
Other real estate not covered under loss-
	sharing agreements with the FDIC			532		-		154,699		-		155,231
Other real estate covered under loss-
	sharing agreements with the FDIC			-		-		36,685		-		36,685
Accrued income receivable				85		115		124,070		(36)		124,234
Mortgage servicing assets, at fair value				-		-		211,405		-		211,405
Other assets				62,204		24,101		2,132,616		(17,958)		2,200,963
Goodwill				-		-		626,388		-		626,388
Other intangible assets				554		-		57,555		-		58,109
Total assets			$	5,905,284	$	1,842,751	$	35,679,104	$	(7,657,605)	$	35,769,534
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
	Non-interest bearing		$	-	$	-	$	6,426,359	$	(24,844)	$	6,401,515
	Interest bearing			-		-		21,094,138		(285,930)		20,808,208
	Total deposits			-		-		27,520,497		(310,774)		27,209,723
Federal funds purchased and assets
	sold under agreements to repurchase			-		-		762,145		-		762,145
Other short-term borrowings				-		-		1,200		-		1,200
Notes payable				740,812		148,988		780,509		-		1,670,309
Other liabilities				59,148		6,659		971,429		(18,218)		1,019,018
Liabilities from discontinued operations				-		-		1,815		-		1,815
Total liabilities				799,960		155,647		30,037,595		(328,992)		30,664,210
Stockholders' equity:
Preferred stock				50,160		-		-		-		50,160
Common stock				1,038		2		56,307		(56,309)		1,038
Surplus				4,220,629		4,111,208		5,712,635		(9,815,316)		4,229,156
Retained earnings (accumulated deficit)				1,096,484		(2,416,251)		128,459		2,279,265		1,087,957
Treasury stock, at cost				(6,101)		-		-		-		(6,101)
Accumulated other comprehensive loss,
	net of tax			(256,886)		(7,855)		(255,892)		263,747		(256,886)
Total stockholders' equity				5,105,324		1,687,104		5,641,509		(7,328,613)		5,105,324
Total liabilities and stockholders' equity			$	5,905,284	$	1,842,751	$	35,679,104	$	(7,657,605)	$	35,769,534

Condensed Consolidating Statement of Financial Condition
		At December 31, 2014
							All other
			Popular, Inc.		PNA		subsidiaries and		Elimination		Popular, Inc.
(In thousands)			Holding Co.		Holding Co.		eliminations		entries		Consolidated
Assets:
Cash and due from banks			$	20,448	$	608	$	380,890	$	(20,851)	$	381,095
Money market investments				19,747		357		1,803,639		(1,357)		1,822,386
Trading account securities, at fair value				1,640		-		136,887		-		138,527
Investment securities available-for-sale, at
	fair value			231		-		5,314,928		-		5,315,159
Investment securities held-to-maturity, at
	amortized cost			-		-		103,170		-		103,170
Other investment securities, at lower of cost
	or realizable value			9,850		4,492		147,564		-		161,906
Investment in subsidiaries				4,878,866		1,353,616		-		(6,232,482)		-
Loans held-for-sale, at lower of cost or
	fair value			-		-		106,104		-		106,104
Loans held-in-portfolio:
	Loans not covered under loss-sharing
	agreements with the FDIC			55,486		-		19,496,569		(53,769)		19,498,286
	Loans covered under loss-sharing
	agreements with the FDIC			-		-		2,542,662		-		2,542,662
	Less - Unearned income			-		-		93,835		-		93,835
	Allowance for loan losses			41		-		601,751		-		601,792
	Total loans held-in-portfolio, net			55,445		-		21,343,645		(53,769)		21,345,321
FDIC loss-share asset				-		-		542,454		-		542,454
Premises and equipment, net				2,512		-		492,069		-		494,581
Other real estate not covered under loss-
	sharing agreements with the FDIC			90		-		135,410		-		135,500
Other real estate covered under loss-
	sharing agreements with the FDIC			-		-		130,266		-		130,266
Accrued income receivable				75		112		121,657		(26)		121,818
Mortgage servicing assets, at fair value				-		-		148,694		-		148,694
Other assets				67,962		26,514		1,570,094		(18,127)		1,646,443
Goodwill				-		-		465,677		(1)		465,676
Other intangible assets				555		-		37,040		-		37,595
Total assets			$	5,057,421	$	1,385,699	$	32,980,188	$	(6,326,613)	$	33,096,695
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
	Non-interest bearing		$	-	$	-	$	5,804,599	$	(20,851)	$	5,783,748
	Interest bearing			-		-		19,025,144		(1,357)		19,023,787
	Total deposits			-		-		24,829,743		(22,208)		24,807,535
Federal funds purchased and assets sold
	under agreements to repurchase			-		-		1,271,657		-		1,271,657
Other short-term borrowings				-		8,169		66,800		(53,769)		21,200
Notes payable				740,812		148,988		822,028		-		1,711,828
Other liabilities				49,226		6,872		974,147		(18,216)		1,012,029
Liabilities from discontinued operations				-		-		5,064		-		5,064
Total liabilities				790,038		164,029		27,969,439		(94,193)		28,829,313
Stockholders' equity:
Preferred stock				50,160		-		-		-		50,160
Common stock				1,036		2		56,307		(56,309)		1,036
Surplus				4,187,931		4,269,208		5,931,161		(10,191,842)		4,196,458
Retained earnings (accumulated deficit)				262,244		(3,043,476)		(747,702)		3,782,651		253,717
Treasury stock, at cost				(4,116)		-		(1)		-		(4,117)
Accumulated other comprehensive
	loss, net of tax			(229,872)		(4,064)		(229,016)		233,080		(229,872)
Total stockholders' equity				4,267,383		1,221,670		5,010,749		(6,232,420)		4,267,382
Total liabilities and stockholders' equity			$	5,057,421	$	1,385,699	$	32,980,188	$	(6,326,613)	$	33,096,695

Schedule of Condensed Income Statement [Table Text Block]

Condensed Consolidating Statement of Operations
			Year ended December 31, 2015
							All other
		Popular, Inc.		PNA			subsidiaries and			Elimination			Popular, Inc.
(In thousands)		Holding Co.		Holding Co.			eliminations			entries			Consolidated
Interest and dividend income:
	Dividend income from subsidiaries	$	41,350		$	-		$	-		$	(41,350)		$	-
	Loans		673			3			1,458,613			(583)			1,458,706
	Money market investments		40			8			7,245			(50)			7,243
	Investment securities		619			322			125,123			-			126,064
	Trading account securities		-			-			11,001			-			11,001
	Total interest and dividend income		42,682			333			1,601,982			(41,983)			1,603,014
Interest expense:
	Deposits		-			-			107,583			(50)			107,533
	Short-term borrowings		-			502			7,593			(583)			7,512
	Long-term debt		52,470			10,779			15,737			-			78,986
	Total interest expense		52,470			11,281			130,913			(633)			194,031
Net interest (expense) income			(9,788)			(10,948)			1,471,069			(41,350)			1,408,983
Provision for loan losses- non-covered loans			35			-			217,423			-			217,458
Provision for loan losses- covered loans			-			-			24,020			-			24,020
Net interest (expense) income
	after provision for loan losses		(9,823)			(10,948)			1,229,626			(41,350)			1,167,505
Service charges on deposit accounts			-			-			160,108			-			160,108
Other service fees			-			-			238,566			(2,476)			236,090
Mortgage banking activities			-			-			81,802			-			81,802
Net loss and valuation adjustments on
	investment securities		-			-			141			-			141
Other-than-temporary impairment losses on investment securities			-			-			(14,445)			-			(14,445)
Trading account loss			(187)			-			(4,536)			-			(4,723)
Net gain on sale of loans, including valuation
	adjustments on loans held-for-sale		-			-			542			-			542
Adjustments (expense) to indemnity reserves
	on loans sold		-			-			(18,628)			-			(18,628)
FDIC loss-share income			-			-			20,062			-			20,062
Other operating income			13,710			(244)			45,173			(47)			58,592
	Total non-interest income		13,523			(244)			508,785			(2,523)			519,541
Operating expenses:
Personnel costs			49,112			-			428,407			-			477,519
Net occupancy expenses			3,591			-			83,297			-			86,888
Equipment expenses			2,240			-			57,870			-			60,110
Other taxes			(822)			-			40,619			-			39,797
Professional fees			11,384			504			297,392			(295)			308,985
Communications			519			-			24,627			-			25,146
Business promotion			1,868			-			50,208			-			52,076
FDIC deposit insurance			-			-			27,626			-			27,626
Other real estate owned (OREO) expenses			-			-			85,568			-			85,568
Other operating expenses			(69,185)			463			166,289			(2,492)			95,075
Amortization of intangibles			-			-			11,019			-			11,019
Restructuring costs			-			-			18,412			-			18,412
	Total operating expenses		(1,293)			967			1,291,334			(2,787)			1,288,221
Income (loss) before income tax
	and equity in earnings of subsidiaries		4,993			(12,159)			447,077			(41,086)			398,825
Income tax (benefit) expense			(186)			305			(495,394)			103			(495,172)
Income (loss) before equity in
	earnings of subsidiaries		5,179			(12,464)			942,471			(41,189)			893,997
Equity in undistributed earnings of
	subsidiaries		888,818			638,341			-			(1,527,159)			-
Income from continuing operations			893,997			625,877			942,471			(1,568,348)			893,997
Income from discontinued operations, net of tax			-			-			1,347			-			1,347
Equity in undistributed earnings of
	discontinued operations		1,347			1,347			-			(2,694)			-
Net Income		$	895,344		$	627,224		$	943,818		$	(1,571,042)		$	895,344
Comprehensive income, net of tax		$	868,330		$	623,433		$	916,942		$	(1,540,375)		$	868,330

Condensed Consolidating Statement of Operations
			Year ended December 31, 2014
							All other
		Popular, Inc.		PNA			subsidiaries and			Elimination			Popular, Inc.
(In thousands)		Holding Co.		Holding Co.			eliminations			entries			Consolidated
Interest income:
	Loans	$	1,294		$	-		$	1,478,658		$	(1,202)		$	1,478,750
	Money market investments		20			7			4,219			(22)			4,224
	Investment securities		617			322			131,692			-			132,631
	Trading account securities		-			-			17,938			-			17,938
	Total interest income		1,931			329			1,632,507			(1,224)			1,633,543
Interest expense:
	Deposits		-			-			105,095			(8)			105,087
	Short-term borrowings		-			405			68,187			(1,216)			67,376
	Long-term debt		492,657			10,826			12,525			-			516,008
	Total interest expense		492,657			11,231			185,807			(1,224)			688,471
Net interest (expense) income			(490,726)			(10,902)			1,446,700			-			945,072
Provision (reversal) for loan losses-
	non-covered loans		(200)			-			224,199			-			223,999
Provision for loan losses- covered loans			-			-			46,135			-			46,135
Net interest (expense) income
	after provision for loan losses		(490,526)			(10,902)			1,176,366			-			674,938
Service charges on deposit accounts			-			-			158,637			-			158,637
Other service fees			-			-			228,006			(2,741)			225,265
Mortgage banking activities			-			-			30,615			-			30,615
Net loss and valuation adjustments on
	investment securities		-			-			(870)			-			(870)
Trading account (loss) profit			(40)			-			4,398			-			4,358
Net gain on sale of loans, including valuation
	adjustments on loans held-for-sale		-			-			40,591			-			40,591
Adjustments (expense) to indemnity reserves
	on loans sold		-			-			(40,629)			-			(40,629)
FDIC loss-share expense			-			-			(103,024)			-			(103,024)
Other operating income (loss)			12,291			(16)			59,306			(9)			71,572
	Total non-interest income (loss)		12,251			(16)			377,030			(2,750)			386,515
Operating expenses:
Personnel costs			39,457			-			379,222			-			418,679
Net occupancy expenses			3,952			-			82,755			-			86,707
Equipment expenses			3,764			-			45,153			-			48,917
Other taxes			1,019			-			55,899			-			56,918
Professional fees			14,963			1,119			266,202			(229)			282,055
Communications			496			-			25,188			-			25,684
Business promotion			1,731			-			52,285			-			54,016
FDIC deposit insurance			-			-			40,307			-			40,307
Loss on early extinguishment of debt			-			-			532			-			532
Other real estate owned (OREO) expenses			6			-			49,605			-			49,611
Other operating expenses			(63,755)			435			161,216			(2,523)			95,373
Amortization of intangibles			-			-			8,160			-			8,160
Restructuring costs			-			-			26,725			-			26,725
	Total operating expenses		1,633			1,554			1,193,249			(2,752)			1,193,684
(Loss) income before income tax
	and equity in earnings of subsidiaries		(479,908)			(12,472)			360,147			2			(132,231)
Income tax expense			5,580			-			52,698			1			58,279
(Loss) income before equity in
	earnings of subsidiaries		(485,488)			(12,472)			307,449			1			(190,510)
Equity in undistributed earnings of subsidiaries			294,978			32,484			-			(327,462)			-
(Loss) income from continuing operations			(190,510)			20,012			307,449			(327,461)			(190,510)
Loss from discontinued operations, net of tax			-			-			(122,980)			-			(122,980)
Equity in undistributed losses of
	discontinued operations		(122,980)			(122,980)			-			245,960			-
Net (Loss) Income		$	(313,490)		$	(102,968)		$	184,469		$	(81,501)		$	(313,490)
Comprehensive (loss) income, net of tax		$	(354,617)		$	(79,665)			144,355		$	(64,690)		$	(354,617)

Condensed Consolidating Statement of Operations
			Year ended December 31, 2013
							All other
		Popular, Inc.		PNA			subsidiaries and			Elimination			Popular, Inc.
(In thousands)		Holding Co.		Holding Co.			eliminations			entries			Consolidated
Interest and Dividend Income:
	Dividend income from subsidiaries	$	37,000		$	-		$	-		$	(37,000)		$	-
	Loans		4,543			-			1,478,526			(1,973)			1,481,096
	Money market investments		127			5			3,462			(130)			3,464
	Investment securities		13,123			322			139,427			(11,065)			141,807
	Trading account securities		-			-			21,573			-			21,573
	Total interest and dividend income		54,793			327			1,642,988			(50,168)			1,647,940
Interest Expense:
	Deposits		-			-			124,862			(5)			124,857
	Short-term borrowings		-			974			39,555			(2,099)			38,430
	Long-term debt		101,245			24,249			25,650			(11,065)			140,079
	Total interest expense		101,245			25,223			190,067			(13,169)			303,366
Net interest (expense) income			(46,452)			(24,896)			1,452,921			(36,999)			1,344,574
Provision for loan losses- non-covered loans			398			-			536,312			-			536,710
Provision for loan losses- covered loans			-			-			69,396			-			69,396
Net interest (expense) income
	after provision for loan losses		(46,850)			(24,896)			847,213			(36,999)			738,468
Service charges on deposit accounts			-			-			162,870			-			162,870
Other service fees			-			-			232,148			(2,797)			229,351
Mortgage banking activities			-			-			71,657			-			71,657
Net gain and valuation adjustments on
	investment securities		7,966			-			-			-			7,966
Trading account profit (loss)			161			-			(13,644)			-			(13,483)
Net loss on sale of loans, including valuation
	adjustments on loans held-for-sale		-			-			(52,708)			-			(52,708)
Adjustments (expense) to indemnity reserves
	on loans sold		-			-			(37,054)			-			(37,054)
FDIC loss-share expense			-			-			(82,051)			-			(82,051)
Other operating income			443,276			4,012			57,177			-			504,465
	Total non-interest income		451,403			4,012			338,395			(2,797)			791,013
Operating expenses:
Personnel costs			31,086			-			397,611			-			428,697
Net occupancy expenses			3,685			2			82,964			-			86,651
Equipment expenses			4,084			-			41,944			-			46,028
Other taxes			413			-			57,615			-			58,028
Professional fees			13,099			72			265,181			(225)			278,127
Communications			421			-			24,964			-			25,385
Business promotion			1,838			-			57,615			-			59,453
FDIC deposit insurance			-			-			56,728			-			56,728
Loss on early extinguishment of debt			-			3,388			-			-			3,388
Other real estate owned (OREO) expenses			-			-			79,658			-			79,658
Other operating expenses			(53,926)			434			147,923			(2,555)			91,876
Amortization of intangibles			-			-			7,971			-			7,971
	Total operating expenses		700			3,896			1,220,174			(2,780)			1,221,990
Income (loss) before income tax and
	equity in earnings of subsidiaries		403,853			(24,780)			(34,566)			(37,016)			307,491
Income tax expense (benefit)			1,412			(1,710)			(250,887)			(142)			(251,327)
Income (loss) before equity in
	earnings of subsidiaries		402,441			(23,070)			216,321			(36,874)			558,818
Equity in undistributed earnings
	of subsidiaries		156,377			54,417			-			(210,794)			-
Income from continuing operations		$	558,818		$	31,347		$	216,321		$	(247,668)		$	558,818
Income from discontinued operations, net of tax			-			-			40,509			-			40,509
Equity in undistributed earnings of
	discontinued operations		40,509			40,509			-			(81,018)			-
Net income			599,327			71,856			256,830			(328,686)			599,327
Comprehensive income (loss), net of tax		$	513,450	$		(5,897)		$	173,754		$	(167,857)		$	513,450

Schedule of Condensed Cash Flow Statement [Table Text Block]

						Year ended December 31, 2015
										All other
						Popular, Inc.		PNA		subsidiaries		Elimination		Popular, Inc.
(In thousands)						Holding Co.		Holding Co.		and eliminations		entries		Consolidated
Cash flows from operating activities:
Net income					$	895,344	$	627,224	$	943,818	$	(1,571,042)	$	895,344
Adjustments to reconcile net income to net
	cash (used in) provided by operating activities:
	Equity in undistributed earnings of subsidiaries					(890,165)		(639,688)		-		1,529,853		-
	Provision for loan losses					35		-		241,443		-		241,478
	Amortization of intangibles					-		-		11,019		-		11,019
	Depreciation and amortization of premises and
		equipment				761		-		46,713		-		47,474
	Net accretion of discounts and amortization
		of premiums and deferred fees				2		-		(73,498)		-		(73,496)
	Other-than-temporary impairment on investment securities					-		-		14,445		-		14,445
	Fair value adjustments on mortgage servicing rights					-		-		7,904		-		7,904
	FDIC loss share income					-		-		(20,062)		-		(20,062)
	Adjustments (expense) to indemnity reserves on
		loans sold				-		-		18,628		-		18,628
	Earnings from investments under the
		equity method				(13,710)		244		(10,907)		-		(24,373)
	Deferred income tax benefit					(186)		-		(519,045)		103		(519,128)
	(Gain) loss on:
			Disposition of premises and equipment			(2)		-		(3,627)		-		(3,629)
			Sale and valuation adjustments of investment
				securities		-		-		(141)		-		(141)
			Sale of loans, including valuation adjustments on
				loans held for sale and mortgage banking activities		-		-		(35,013)		-		(35,013)
			Sale of foreclosed assets, including write-downs			-		-		60,378		-		60,378
	Acquisitions of loans held-for-sale					-		-		(401,991)		-		(401,991)
	Proceeds from sale of loans held-for-sale					-		-		124,111		-		124,111
	Net originations on loans held-for-sale					-		-		(792,821)		-		(792,821)
	Net (increase) decrease in:
			Trading securities			(380)		-		1,084,063		-		1,083,683
			Accrued income receivable			(10)		(3)		5,395		10		5,392
			Other assets			8,032		342		92,032		(273)		100,133
	Net (decrease) increase in:
			Interest payable			-		(26)		564		(10)		528
			Pension and other postretirement benefits
				obligations		-		-		3,252		-		3,252
			Other liabilities			(5,622)		(187)		(67,180)		9		(72,980)
Total adjustments						(901,245)		(639,318)		(214,338)		1,529,692		(225,209)
Net cash (used in) provided by operating activities						(5,901)		(12,094)		729,480		(41,350)		670,135
Cash flows from investing activities:
	Net increase in money market investments					(242,457)		(23,574)		(376,248)		284,573		(357,706)
	Purchases of investment securities:
			Available-for-sale			-		-		(2,014,315)		-		(2,014,315)
			Held-to-maturity			-		-		(750)		-		(750)
			Other			-		-		(40,847)		-		(40,847)
	Proceeds from calls, paydowns, maturities and
		redemptions of investment securities:
			Available-for-sale			-		-		1,362,712		-		1,362,712
			Held-to-maturity			-		-		4,856		-		4,856
			Other			-		-		46,341		-		46,341
	Proceeds from sale of investment securities:
			Available for sale			-		-		96,760		-		96,760
			Other			-		-		14,950		-		14,950
	Net repayments on loans					53,793		350		431,302		(53,769)		431,676
	Proceeds from sale of loans					-		-		30,160		-		30,160
	Acquisition of loan portfolios					-		(350)		(338,097)		-		(338,447)
	Acquisition of trademark					-		-		(50)		-		(50)
	Net payments from FDIC under loss-sharing
		agreements				-		-		247,976		-		247,976
	Net cash received and acquired from business combination					-		-		731,279		-		731,279
	Acquisition of servicing assets					-		-		(61,304)		-		(61,304)
	Cash paid related to business acquisitions					-		-		(17,250)		-		(17,250)
	Return of capital from equity method investments					11,500		1,829		-		-		13,329
	Return of capital from wholly-owned subsidiaries					203,000		200,000		-		(403,000)		-
	Mortgage servicing rights purchased					-		-		(2,400)		-		(2,400)
	Acquisition of premises and equipment					(1,079)		-		(61,577)		-		(62,656)
	Proceeds from sale of:
			Premises and equipment			9		-		12,871		-		12,880
			Foreclosed assets			-		-		141,145		-		141,145
Net cash provided by investing activities						24,766		178,255		207,514		(172,196)		238,339
Cash flows from financing activities:
	Net (decrease) increase in:
			Deposits			-		-		495,904		(288,566)		207,338
			Federal funds purchased and assets sold
				under agreements to repurchase		-		-		(509,512)		-		(509,512)
			Other short-term borrowings			-		-		(201,984)		53,769		(148,215)
	Payments of notes payable					-		(8,169)		(729,720)		-		(737,889)
	Proceeds from issuance of notes payable					-		-		277,398		-		277,398
	Proceeds from issuance of common stock					6,226		-		-		-		6,226
	Dividends paid to parent company					-		-		(41,350)		41,350		-
	Dividends paid					(19,257)		-		-		-		(19,257)
	Net payments for repurchase of common stock					(1,984)		-		-		-		(1,984)
	Return of capital to parent company					-		(158,000)		(245,000)		403,000		-
Net cash (used in) provided by financing activities						(15,015)		(166,169)		(954,264)		209,553		(925,895)
Net increase (decrease) in cash and due from banks						3,850		(8)		(17,270)		(3,993)		(17,421)
Cash and due from banks at beginning of period						20,448		608		380,890		(20,851)		381,095
Cash and due from banks at end of period					$	24,298	$	600	$	363,620	$	(24,844)	$	363,674
The Condensed Consolidating Statements of Cash Flows include the cash flows from operating, investing and financing activities associated with discontinued operations.

						Year ended December 31, 2014
										All other
						Popular, Inc.		PNA		subsidiaries		Elimination		Popular, Inc.
(In thousands)						Holding Co.		Holding Co.		and eliminations		entries		Consolidated
Cash flows from operating activities:
Net (loss) income					$	(313,490)	$	(102,968)	$	184,469	$	(81,501)	$	(313,490)
Adjustments to reconcile net (loss) income to net
		cash (used in) provided by operating activities:
	Equity in undistributed (earnings) losses of subsidiaries					(171,998)		90,496		-		81,502		-
	Provision (reversal) for loan losses					(200)		-		263,569		-		263,369
	Goodwill impairment losses					-		-		186,511		-		186,511
	Amortization of intangibles					-		-		9,434		-		9,434
	Depreciation and amortization of premises and
		equipment				648		-		46,489		-		47,137
	Net accretion of discounts and amortization
		of premiums and deferred fees				404,461		-		(125,885)		-		278,576
	Fair value adjustments on mortgage servicing rights					-		-		24,683		-		24,683
	FDIC loss-share expense					-		-		103,024		-		103,024
	Adjustments (expense) to indemnity reserves on
		loans sold				-		-		40,629		-		40,629
	Earnings from investments under the
		equity method				(12,291)		16		(27,303)		-		(39,578)
	Deferred income tax expense					8,203		-		35,308		1		43,512
	Loss (gain) on:
			Disposition of premises and equipment			1		-		(1,717)		-		(1,716)
			Sale and valuation adjustments of investment
				securities		-		-		870		-		870
			Sale of loans, including valuation adjustments on
				loans held for sale and mortgage banking activities		-		-		(88,724)		-		(88,724)
			Sale of foreclosed assets, including write-downs			-		-		28,005		-		28,005
			Disposal of discontinued business			-		-		(38,355)		-		(38,355)
	Acquisitions of loans held-for-sale					-		-		(308,600)		-		(308,600)
	Proceeds from sale of loans held-for-sale					-		-		123,375		-		123,375
	Net originations on loans held-for-sale					-		-		(753,312)		-		(753,312)
	Net (increase) decrease in:
			Trading securities			(288)		-		1,105,662		-		1,105,374
			Accrued income receivable			(12)		2		9,712		17		9,719
			Other assets			4,099		(7,124)		158,585		(23,060)		132,500
	Net increase (decrease) in:
			Interest payable			7,066		20		(7,776)		(17)		(707)
			Pension and other postretirement benefits
				obligations		-		-		(10,171)		-		(10,171)
			Other liabilities			(180)		(32,391)		40,449		23,059		30,937
Total adjustments						239,509		51,019		814,462		81,502		1,186,492
Net cash (used in) provided by operating activities						(73,981)		(51,949)		998,931		1		873,002
Cash flows from investing activities:
	Net (increase) decrease in money market investments					(1,026)		4,447		(963,907)		(3,447)		(963,933)
	Purchases of investment securities:
			Available-for-sale			-		-		(2,001,940)		-		(2,001,940)
			Held-to-maturity			-		-		(1,000)		-		(1,000)
			Other			-		-		(110,010)		-		(110,010)
	Proceeds from calls, paydowns, maturities and
		redemptions of investment securities:
			Available-for-sale			-		-		1,722,650		-		1,722,650
			Held-to-maturity			-		-		39,962		-		39,962
			Other			1,000		-		91,752		-		92,752
	Proceeds from sale of investment securities:
			Available for sale			-		-		310,210		-		310,210
			Other			-		-		37,104		-		37,104
	Net repayments on loans					465,452		-		776,179		(465,731)		775,900
	Proceeds from sale of loans					-		-		355,145		-		355,145
	Acquisition of loan portfolios					-		-		(389,067)		-		(389,067)
	Net payments from FDIC under loss-sharing
		agreements				-		-		256,498		-		256,498
	Cash paid related to business acquisitions					-		-		(6,330)		-		(6,330)
	Capital contribution to subsidiary					(100,000)		-		-		100,000		-
	Return of capital from wholly-owned subsidiaries					210,000		250,000		-		(460,000)		-
	Net cash disbursed from disposal of discontinued business					-		-		(205,895)		-		(205,895)
	Acquisition of premises and equipment					(1,075)		-		(49,971)		-		(51,046)
	Proceeds from sale of:
			Premises and equipment			48		-		14,289		-		14,337
			Foreclosed assets			-		-		150,115		-		150,115
Net cash provided by investing activities						574,399		254,447		25,784		(829,178)		25,452
Cash flows from financing activities:
	Net increase (decrease) in:
			Deposits			-		-		115,453		(6,438)		109,015
			Federal funds purchased and assets sold
				under agreements to repurchase		-		-		(387,635)		-		(387,635)
			Other short-term borrowings			-		8,169		(853,900)		465,731		(380,000)
	Payments of notes payable					(936,000)		(675)		(122,615)		-		(1,059,290)
	Proceeds from issuance of notes payable					450,000		-		331,905		-		781,905
	Proceeds from issuance of common stock					5,394		-		-		-		5,394
	Dividends paid					(3,723)		-		-		-		(3,723)
	Repurchase of TARP-related warrants					(3,000)		-		-		-		(3,000)
	Net payments for repurchase of common stock					(3,236)		-		-		-		(3,236)
	Return of capital to parent company					-		(210,000)		(250,000)		460,000		-
	Capital contribution from parent					-		-		100,000		(100,000)		-
Net cash used in financing activities						(490,565)		(202,506)		(1,066,792)		819,293		(940,570)
Net increase (decrease) in cash and due from banks						9,853		(8)		(42,077)		(9,884)		(42,116)
Cash and due from banks at beginning of period						10,595		616		422,967		(10,967)		423,211
Cash and due from banks at end of period					$	20,448	$	608	$	380,890	$	(20,851)	$	381,095
The Condensed Consolidating Statements of Cash Flows include the cash flows from operating, investing and financing activities associated with discontinued operations.