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

9 Months Ended

Sep. 30, 2019

Table Text Block

Condensed Balance Sheet

Condensed Consolidating Statement of Financial Condition (Unaudited)
		At September 30, 2019
							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			$	114,897	$	-	$	502,058	$	(114,895)	$	502,060
Money market investments				141,513		12,657		5,168,072		(153,657)		5,168,585
Trading account debt securities, at fair value				-		-		36,303		-		36,303
Debt securities available-for-sale, at fair value				-		-		16,479,110		-		16,479,110
Debt securities held-to-maturity, at amortized cost				8,726		2,835		86,146		-		97,707
Equity securities				9,918		20		150,702		(182)		160,458
Investment in subsidiaries				6,150,826		1,794,752		-		(7,945,578)		-
Loans held-for-sale, at lower of cost or fair value				-		-		56,370		-		56,370
Loans held-in-portfolio				32,163		-		27,143,123		5,955		27,181,241
	Less - Unearned income			-		-		173,266		-		173,266
	Allowance for loan losses			412		-		511,953		-		512,365
	Total loans held-in-portfolio, net			31,751		-		26,457,904		5,955		26,495,610
Premises and equipment, net				3,583		-		543,480		-		547,063
Other real estate				146		-		117,782		-		117,928
Accrued income receivable				277		17		164,596		(112)		164,778
Mortgage servicing assets, at fair value				-		-		150,652		-		150,652
Other assets				91,858		24,432		1,713,547		(18,647)		1,811,190
Goodwill				-		-		671,123		(1)		671,122
Other intangible assets				6,488		-		14,991		-		21,479
Total assets			$	6,559,983	$	1,834,713	$	52,312,836	$	(8,227,117)	$	52,480,415
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
	Non-interest bearing		$	-	$	-	$	8,886,865	$	(114,895)	$	8,771,970
	Interest bearing			-		-		35,547,882		(153,657)		35,394,225
	Total deposits			-		-		44,434,747		(268,552)		44,166,195
Assets sold under agreements to repurchase				-		-		213,097		-		213,097
Notes payable				585,802		94,084		486,784		-		1,166,670
Other liabilities				65,802		1,651		977,742		(19,190)		1,026,005
Total liabilities				651,604		95,735		46,112,370		(287,742)		46,571,967
Stockholders' equity:
Preferred stock				50,160		-		-		-		50,160
Common stock				1,044		2		56,307		(56,309)		1,044
Surplus				4,308,851		4,173,120		5,782,145		(9,946,560)		4,317,556
Retained earnings (accumulated deficit)				2,079,725		(2,437,754)		494,889		1,934,338		2,071,198
Treasury stock, at cost				(392,521)		-		-		(109)		(392,630)
Accumulated other comprehensive loss,net of tax				(138,880)		3,610		(132,875)		129,265		(138,880)
Total stockholders' equity				5,908,379		1,738,978		6,200,466		(7,939,375)		5,908,448
Total liabilities and stockholders' equity			$	6,559,983	$	1,834,713	$	52,312,836	$	(8,227,117)	$	52,480,415

Condensed Consolidating Statement of Financial Condition (Unaudited)
		At December 31, 2018
							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			$	68,022	$	-	$	394,035	$	(68,022)	$	394,035
Money market investments				176,256		15,288		4,170,792		(191,288)		4,171,048
Trading account debt securities, at fair value				-		-		37,787		-		37,787
Debt securities available-for-sale, at fair value				-		-		13,300,184		-		13,300,184
Debt securities held-to-maturity, at amortized cost				8,726		2,835		90,014		-		101,575
Equity securities				6,693		20		149,012		(141)		155,584
Investment in subsidiaries				5,704,119		1,700,082		-		(7,404,201)		-
Loans held-for-sale, at lower of cost or fair value				-		-		51,422		-		51,422
Loans held-in-portfolio				32,678		-		26,625,080		5,955		26,663,713
	Less - Unearned income			-		-		155,824		-		155,824
	Allowance for loan losses			155		-		569,193		-		569,348
	Total loans held-in-portfolio, net			32,523		-		25,900,063		5,955		25,938,541
Premises and equipment, net				3,394		-		566,414		-		569,808
Other real estate				146		-		136,559		-		136,705
Accrued income receivable				284		116		165,767		(145)		166,022
Mortgage servicing assets, at fair value				-		-		169,777		-		169,777
Other assets				76,073		27,639		1,626,119		(15,697)		1,714,134
Goodwill				-		-		671,123		(1)		671,122
Other intangible assets				6,559		-		20,274		-		26,833
Total assets			$	6,082,795	$	1,745,980	$	47,449,342	$	(7,673,540)	$	47,604,577
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
	Non-interest bearing		$	-	$	-	$	9,217,058	$	(68,022)	$	9,149,036
	Interest bearing			-		-		30,752,291		(191,288)		30,561,003
	Total deposits			-		-		39,969,349		(259,310)		39,710,039
Assets sold under agreements to repurchase				-		-		281,529		-		281,529
Other short-term borrowings				-		-		42		-		42
Notes payable				584,851		94,063		577,188		-		1,256,102
Other liabilities				62,799		3,287		871,733		(16,011)		921,808
Total liabilities				647,650		97,350		41,699,841		(275,321)		42,169,520
Stockholders' equity:
Preferred stock				50,160		-		-		-		50,160
Common stock				1,043		2		56,307		(56,309)		1,043
Surplus				4,357,079		4,172,983		5,790,324		(9,954,780)		4,365,606
Retained earnings (accumulated deficit)				1,660,258		(2,479,503)		327,713		2,143,263		1,651,731
Treasury stock, at cost				(205,421)		-		-		(88)		(205,509)
Accumulated other comprehensive loss,net of tax				(427,974)		(44,852)		(424,843)		469,695		(427,974)
Total stockholders' equity				5,435,145		1,648,630		5,749,501		(7,398,219)		5,435,057
Total liabilities and stockholders' equity			$	6,082,795	$	1,745,980	$	47,449,342	$	(7,673,540)	$	47,604,577

Condensed Income Statement

Condensed Consolidating Statement of Operations (Unaudited)
			Quarter ended September 30, 2019
							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	$	102,000		$	-		$	-		$	(102,000)		$	-
	Loans		576			-			452,739			-			453,315
	Money market investments		758			55			19,120			(814)			19,119
	Investment securities		160			46			99,336			-			99,542
	Total interest and dividend income		103,494			101			571,195			(102,814)			571,976
Interest expense:
	Deposits		-			-			79,574			(814)			78,760
	Short-term borrowings		-			-			1,572			-			1,572
	Long-term debt		9,632			1,556			3,465			-			14,653
	Total interest expense		9,632			1,556			84,611			(814)			94,985
Net interest income (expense)			93,862			(1,455)			486,584			(102,000)			476,991
Provision (reversal) for loan losses- non-covered loans			(2)			-			36,541			-			36,539
Net interest income (expense) after provision (reversal) for loan losses			93,864			(1,455)			450,043			(102,000)			440,452
Service charges on deposit accounts			-			-			40,969			-			40,969
Other service fees			-			-			71,393			(84)			71,309
Mortgage banking activities			-			-			10,492			-			10,492
Net gain, including impairment on equity securities			64			-			148			1			213
Net loss on sale of debt securities			-			-			(20)			-			(20)
Net profit on trading account debt securities			-			-			295			-			295
Indemnity reserves on loans sold expense			-			-			(3,411)			-			(3,411)
Other operating income (expense)			4,626			(350)			18,610			(21)			22,865
	Total non-interest income		4,690			(350)			138,476			(104)			142,712
Operating expenses:
Personnel costs			14,207			-			133,475			-			147,682
Net occupancy expenses			1,006			-			23,589			-			24,595
Equipment expenses			917			1			20,678			-			21,596
Other taxes			61			-			13,967			-			14,028
Professional fees			6,370			13			92,263			(85)			98,561
Communications			150			-			5,731			-			5,881
Business promotion			754			-			17,611			-			18,365
FDIC deposit insurance			-			-			2,923			-			2,923
Other real estate owned (OREO) expenses			-			-			(185)			-			(185)
Other operating expenses			(24,112)			14			65,418			(690)			40,630
Amortization of intangibles			24			-			2,375			-			2,399
	Total operating expenses		(623)			28			377,845			(775)			376,475
Income (loss) before income tax and equity in (losses) earnings of subsidiaries			99,177			(1,833)			210,674			(101,329)			206,689
Income tax (benefit) expense			-			(385)			41,494			261			41,370

Income (loss) before equity in (losses) earnings of subsidiaries		99,177		(1,448)		169,180		(101,590)		165,319
Equity in undistributed earnings of subsidiaries		66,142		18,210		-		(84,352)		-
Net income	$	165,319	$	16,762	$	169,180	$	(185,942)	$	165,319
Comprehensive income, net of tax	$	217,652	$	25,872	$	222,592	$	(248,464)	$	217,652

Condensed Consolidating Statement of Operations (Unaudited)
			Nine months ended September 30, 2019
							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	$	356,300		$	-		$	-		$	(356,300)		$	-
	Loans		1,661			-			1,353,571			-			1,355,232
	Money market investments		2,498			161			70,873			(2,659)			70,873
	Investment securities		473			139			274,207			-			274,819
	Total interest and dividend income		360,932			300			1,698,651			(358,959)			1,700,924
Interest expense:
	Deposits		-			-			230,694			(2,659)			228,035
	Short-term borrowings		-			-			4,828			-			4,828
	Long-term debt		28,896			4,671			10,224			-			43,791
	Total interest expense		28,896			4,671			245,746			(2,659)			276,654
Net interest income (expense)			332,036			(4,371)			1,452,905			(356,300)			1,424,270
Provision for loan losses- non-covered loans			257			-			118,298			-			118,555
Net interest income (expense) after provision (reversal) for loan losses			331,779			(4,371)			1,334,607			(356,300)			1,305,715
Service charges on deposit accounts			-			-			119,277			-			119,277
Other service fees			2			-			211,565			(1,920)			209,647
Mortgage banking activities			-			-			18,645			-			18,645
Net loss on sale of debt securities			-			-			(20)			-			(20)
Net gain, including impairment on equity securities			934			-			1,261			(21)			2,174
Net gain on trading account debt securities			-			-			977			-			977
Indemnity reserves on loans sold expense			-			-			(1,664)			-			(1,664)
Other operating income (expense)			13,431			(984)			56,026			(41)			68,432
	Total non-interest income (expense)		14,367			(984)			406,067			(1,982)			417,468
Operating expenses:
Personnel costs			46,910			-			385,388			-			432,298
Net occupancy expenses			3,231			-			68,243			(43)			71,431
Equipment expenses			2,616			3			60,005			-			62,624
Other taxes			185			1			38,081			-			38,267
Professional fees			13,780			68			267,841			(414)			281,275
Communications			483			-			17,202			-			17,685
Business promotion			2,435			-			49,723			-			52,158
FDIC deposit insurance			-			-			13,007			-			13,007
Other real estate owned (OREO) expenses			-			-			3,729			-			3,729
Other operating expenses			(69,904)			43			179,123			(1,908)			107,354
Amortization of intangibles			73			-			7,009			-			7,082
	Total operating expenses		(191)			115			1,089,351			(2,365)			1,086,910
Income (loss) before income tax and equity (losses) in earnings of subsidiaries			346,337			(5,470)			651,323			(355,917)			636,273
Income tax (benefit) expense			-			(1,149)			132,932			140			131,923

Income (loss) before equity in earnings of subsidiaries		346,337		(4,321)		518,391		(356,057)		504,350
Equity in undistributed earnings of subsidiaries		158,013		41,248		-		(199,261)		-
Net income	$	504,350	$	36,927	$	518,391	$	(555,318)	$	504,350
Comprehensive income, net of tax	$	793,444	$	85,389	$	810,359	$	(895,748)	$	793,444

Condensed Consolidating Statement of Operations (Unaudited)
				Quarter ended September 30, 2018
								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		$	52,000		$	-		$	-		$	(52,000)		$	-
	Loans			537			-			430,122			(22)			430,637
	Money market investments			2,429			16			27,582			(2,446)			27,581
	Investment securities			150			72			69,925			-			70,147
	Total interest and dividend income			55,116			88			527,629			(54,468)			528,365
Interest expense:
	Deposits			-			-			57,580			(2,446)			55,134
	Short-term borrowings			-			22			1,622			(22)			1,622
	Long-term debt			14,045			2,390			3,705			-			20,140
	Total interest expense			14,045			2,412			62,907			(2,468)			76,896
Net interest income (expense)				41,071			(2,324)			464,722			(52,000)			451,469
Provision (reversal) for loan losses- non-covered loans				(34)			-			54,421			-			54,387
Net interest income (expense) after provision (reversal) for loan losses				41,105			(2,324)			410,301			(52,000)			397,082
Service charges on deposit accounts				-			-			38,147			-			38,147
Other service fees				-			-			64,382			(66)			64,316
Mortgage banking activities				-			-			11,269			-			11,269
Net gain, including impairment on equity securities				172			-			216			(18)			370
Net loss on trading account debt securities				-			-			(122)			-			(122)
Indemnity reserves on loans sold expense				-			-			(3,029)			-			(3,029)
Other operating income (expense)				3,643			(118)			36,551			(6)			40,070
	Total non-interest income (expense)			3,815			(118)			147,414			(90)			151,021
Operating expenses:
Personnel costs				15,803			-			123,954			-			139,757
Net occupancy expenses				984			-			17,618			-			18,602
Equipment expenses				1,037			-			17,266			-			18,303
Other taxes				71			-			11,852			-			11,923
Professional fees				3,889			20			80,017			(66)			83,860
Communications				144			-			5,910			-			6,054
Business promotion				520			-			14,958			-			15,478
FDIC deposit insurance				-			-			8,610			-			8,610
Other real estate owned (OREO) expenses				-			-			7,950			-			7,950
Other operating expenses				(23,600)			13			76,754			(591)			52,576
Amortization of intangibles				-			-			2,324			-			2,324
	Total operating expenses			(1,152)			33			367,213			(657)			365,437
Income (loss) before income tax and equity in earnings (losses) of subsidiaries				46,072			(2,475)			190,502			(51,433)			182,666
Income tax (benefit) expense				-			(520)			42,310			228			42,018

Income (loss) before equity in earnings (losses) of subsidiaries		46,072		(1,955)		148,192		(51,661)		140,648
Equity in undistributed earnings of subsidiaries		94,576		19,722		-		(114,298)		-
Net income	$	140,648	$	17,767	$	148,192	$	(165,959)	$	140,648
Comprehensive income, net of tax	$	103,251	$	11,770	$	111,369	$	(123,139)	$	103,251

Condensed Consolidating Statement of Operations (Unaudited)
			Nine months ended September 30, 2018
							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	$	402,000		$	-		$	-		$	(402,000)		$	-
	Loans		1,601			-			1,188,946			(49)			1,190,498
	Money market investments		4,267			18			86,258			(4,285)			86,258
	Investment securities		447			233			184,857			-			185,537
	Total interest and dividend income		408,315			251			1,460,061			(406,334)			1,462,293
Interest expense:
	Deposits		-			-			143,335			(4,285)			139,050
	Short-term borrowings		-			49			5,387			(49)			5,387
	Long-term debt		40,280			7,773			11,151			-			59,204
	Total interest expense		40,280			7,822			159,873			(4,334)			203,641
Net interest income (expense)			368,035			(7,571)			1,300,188			(402,000)			1,258,652
Provision (reversal) for loan losses- non-covered loans			(75)			-			183,849			-			183,774
Provision for loan losses- covered loans			-			-			1,730			-			1,730
Net interest income (expense) after provision (reversal) for loan losses			368,110			(7,571)			1,114,609			(402,000)			1,073,148
Service charges on deposit accounts			-			-			111,704			-			111,704
Other service fees			-			-			189,253			(1,459)			187,794
Mortgage banking activities			-			-			33,408			-			33,408
Net gain (loss), including impairment on equity securities			176			-			(170)			(48)			(42)
Net loss on trading account debt securities			-			-			(299)			-			(299)
Indemnity reserves on loans sold expense			-			-			(6,482)			-			(6,482)
FDIC loss-share income			-			-			94,725			-			94,725
Other operating income			11,139			278			67,133			(31)			78,519
	Total non-interest income		11,315			278			489,272			(1,538)			499,327
Operating expenses:
Personnel costs			43,365			-			346,576			-			389,941
Net occupancy expenses			3,081			-			60,748			-			63,829
Equipment expenses			2,581			2			50,701			-			53,284
Other taxes			168			1			33,532			-			33,701
Professional fees			13,245			128			247,764			(389)			260,748
Communications			380			-			16,962			-			17,342
Business promotion			1,323			-			42,942			-			44,265
FDIC deposit insurance			-			-			22,534			-			22,534
Other real estate owned (OREO) expenses			-			-			21,028			-			21,028
Other operating expenses			(64,352)			67			177,543			(1,796)			111,462
Amortization of intangibles			-			-			6,973			-			6,973
	Total operating expenses		(209)			198			1,027,303			(2,185)			1,025,107
Income (loss) before income tax and equity (losses) in earnings of subsidiaries			379,634			(7,491)			576,578			(401,353)			547,368
Income tax expense (benefit)			-			372			34,970			271			35,613

Income (loss) before equity in earnings of subsidiaries		379,634		(7,863)		541,608		(401,624)		511,755
Equity in undistributed earnings of subsidiaries		132,121		45,772		-		(177,893)		-
Net income	$	511,755	$	37,909	$	541,608	$	(579,517)	$	511,755
Comprehensive income, net of tax	$	328,218	$	3,755	$	358,368	$	(362,123)	$	328,218

Condensed Cash Flow Statement

Condensed Consolidating Statement of Cash Flows

				Nine months ended September 30, 2019
								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			$	504,350	$	36,927	$	518,391	$	(555,318)	$	504,350
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
	Equity in earnings of subsidiaries, net of dividends or distributions			(158,013)		(41,248)		-		199,261		-
	Provision for loan losses			257		-		118,298		-		118,555
	Amortization of intangibles			73		-		7,009		-		7,082
	Depreciation and amortization of premises and equipment			559		-		42,369		-		42,928
	Net accretion of discounts and amortization of premiums and deferred fees			933		20		(127,501)		-		(126,548)
	Share-based compensation			7,517		-		3,901		-		11,418
	Impairment losses on long-lived assets			-		-		2,591		-		2,591
	Fair value adjustments on mortgage servicing rights			-		-		25,853		-		25,853
	Indemnity reserves on loans sold expense			-		-		1,664		-		1,664
	(Earnings) losses from investments under the equity method, net of dividends or distributions			(11,683)		984		(7,762)		-		(18,461)
	Deferred income tax (benefit) expense			-		(1,149)		111,067		140		110,058
	Loss (gain) on:
		Disposition of premises and equipment and other productive assets		39		-		(5,172)		-		(5,133)
		Sale of debt securities		-		-		20		-		20
		Sale of loans, including valuation adjustments on loans held for sale and mortgage banking activities		-		-		(11,360)		-		(11,360)
		Sale of foreclosed assets, including write-downs		-		-		(15,858)		-		(15,858)
	Acquisitions of loans held-for-sale			-		-		(157,993)		-		(157,993)
	Proceeds from sale of loans held-for-sale			-		-		51,067		-		51,067
	Net originations on loans held-for-sale			-		-		(208,875)		-		(208,875)
	Net decrease (increase) in:
		Trading debt securities		-		-		333,013		-		333,013
		Equity securities		(3,225)		-		(3,257)		-		(6,482)
		Accrued income receivable		7		99		7,651		(33)		7,724
		Other assets		(1,559)		43		(14,130)		2,809		(12,837)
	Net decrease in:
		Interest payable		(4,594)		(1,551)		(788)		33		(6,900)
		Pension and other postretirement benefits obligations		-		-		(4,979)		-		(4,979)
		Other liabilities		(681)		(85)		(98,071)		(3,212)		(102,049)
Total adjustments				(170,370)		(42,887)		48,757		198,998		34,498
Net cash provided by (used in) operating activities				333,980		(5,960)		567,148		(356,320)		538,848
Cash flows from investing activities:
	Net decrease (increase) in money market investments			35,000		2,631		(1,000,840)		(37,631)		(1,000,840)
	Purchases of investment securities:
		Available-for-sale		-		-		(13,579,074)		-		(13,579,074)
		Equity		-		-		(15,515)		41		(15,474)
	Proceeds from calls, paydowns, maturities and redemptions of investment securities:
		Available-for-sale		-		-		10,671,630		-		10,671,630
		Held-to-maturity		-		-		5,325		-		5,325
	Proceeds from sale of investment securities:
		Available for sale		-		-		99,445		-		99,445
		Equity		-		-		17,083		-		17,083
	Net repayments (disbursements) on loans			533		-		(325,012)		-		(324,479)
	Proceeds from sale of loans			-		-		77,327		-		77,327
	Acquisition of loan portfolios			-		-		(421,482)		-		(421,482)
	Payments to acquire other intangible			-		-		(793)		-		(793)
	Return of capital from equity method investments			-		3,329		(582)		-		2,747
	Capital contribution to subsidiary			(4,000)		-		-		4,000		-
	Return of capital from wholly-owned subsidiaries			13,000		-		-		(13,000)		-
	Acquisition of premises and equipment			(791)		-		(45,170)		-		(45,961)

	Proceeds from sale of:
		Premises and equipment and other productive assets		3		-		17,183		-		17,186
		Foreclosed assets		-		-		83,848		-		83,848
Net cash provided by (used in) investing activities				43,745		5,960		(4,416,627)		(46,590)		(4,413,512)
Cash flows from financing activities:
	Net increase (decrease) in:
		Deposits		-		-		4,463,708		(9,242)		4,454,466
		Assets sold under agreements to repurchase		-		-		(68,433)		-		(68,433)
		Other short-term borrowings		-		-		(41)		-		(41)
	Payments of notes payable			-		-		(144,991)		-		(144,991)
	Principal payments of finance leases			-		-		(1,269)		-		(1,269)
	Proceeds from issuance of notes payable			-		-		75,000		-		75,000
	Proceeds from issuance of common stock			11,256		-		(4,733)		-		6,523
	Dividends paid to parent company			-		-		(356,300)		356,300		-
	Dividends paid			(85,863)		-		-		-		(85,863)
	Net payments for repurchase of common stock			(250,566)		-		13		(21)		(250,574)
	Return of capital to parent company			-		-		(13,000)		13,000		-
	Capital contribution from parent			-		-		4,000		(4,000)		-
	Payments related to tax withholding for share-based compensation			(5,420)		-		(12)		-		(5,432)
Net cash (used in) provided by financing activities				(330,593)		-		3,953,942		356,037		3,979,386
Net increase in cash and due from banks, and restricted cash				47,132		-		104,463		(46,873)		104,722
Cash and due from banks, and restricted cash at beginning of period				68,278		-		402,995		(68,022)		403,251
Cash and due from banks, and restricted cash at end of period			$	115,410	$	-	$	507,458	$	(114,895)	$	507,973

Condensed Consolidating Statement of Cash Flows (Unaudited)

				Nine months ended September 30, 2018
								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			$	511,755	$	37,909	$	541,608	$	(579,517)	$	511,755
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
	Equity in earnings of subsidiaries, net of dividends or distributions			(132,121)		(45,772)		-		177,893		-
	Provision (reversal) for loan losses			(75)		-		185,579		-		185,504
	Amortization of intangibles			-		-		6,973		-		6,973
	Depreciation and amortization of premises and equipment			548		-		38,535		-		39,083
	Net accretion of discounts and amortization of premiums and deferred fees			1,624		20		(45,177)		-		(43,533)
	Share-based compensation			4,149		-		1,813		-		5,962
	Impairment losses on long-lived assets			-		-		272		-		272
	Fair value adjustments on mortgage servicing rights			-		-		13,123		-		13,123
	FDIC loss-share income			-		-		(94,725)		-		(94,725)
	Adjustments to indemnity reserves on loans sold			-		-		6,482		-		6,482
	Earnings from investments under the equity method, net of dividends or distributions			(10,557)		(278)		(3,937)		-		(14,772)
	Deferred income tax benefit			-		(1,453)		(96,525)		270		(97,708)
	Loss (gain) on:
		Disposition of premises and equipment and other productive assets		15		-		17,679		-		17,694
		Proceeds from insurance claims		-		-		(14,411)		-		(14,411)
		Sale of loans, including valuation adjustments on loans held for sale and mortgage banking activities		-		-		(6,734)		-		(6,734)
		Sale of foreclosed assets, including write-downs		-		-		(638)		-		(638)
	Acquisitions of loans held-for-sale			-		-		(173,644)		-		(173,644)
	Proceeds from sale of loans held-for-sale			-		-		51,131		-		51,131
	Net originations on loans held-for-sale			-		-		(186,063)		-		(186,063)
	Net decrease (increase) in:
		Trading debt securities		-		-		346,556		(101)		346,455
		Equity securities		(1,779)		-		(701)		-		(2,480)
		Accrued income receivable		(411)		90		51,779		410		51,868
		Other assets		(2,352)		52		237,585		(449)		234,836
	Net (decrease) increase in:
		Interest payable		(7,007)		(3,441)		925		(410)		(9,933)
		Pension and other postretirement benefits obligations		-		-		3,392		-		3,392
		Other liabilities		2,160		9		(198,958)		(246)		(197,035)
Total adjustments				(145,806)		(50,773)		140,311		177,367		121,099
Net cash provided by (used in) operating activities				365,949		(12,864)		681,919		(402,150)		632,854
Cash flows from investing activities:
	Net (increase) decrease in money market investments			(395,000)		(7,230)		647,519		402,230		647,519
	Purchases of investment securities:
		Available-for-sale		-		-		(6,968,920)		-		(6,968,920)
		Equity		-		-		(11,456)		152		(11,304)
	Proceeds from calls, paydowns, maturities and redemptions of investment securities:
		Available-for-sale		-		-		3,925,362		-		3,925,362
		Held-to-maturity		-		1,637		5,547		-		7,184
	Proceeds from sale of investment securities:
		Equity		-		-		20,925		-		20,925
	Net repayments (disbursements) on loans			395		-		(15,999)		-		(15,604)
	Proceeds from sale of loans			-		-		1,354		-		1,354
	Acquisition of loan portfolios			-		-		(461,117)		-		(461,117)
	Net payments (to) from FDIC under loss-sharing agreements			-		-		(25,012)		-		(25,012)
	Payments to acquire businesses, net of cash acquired			-		-		(1,830,050)		-		(1,830,050)
	Return of capital from equity method investments			-		497		2,004		-		2,501
	Capital contribution to subsidiary			(82,000)		-		-		82,000		-
	Return of capital from wholly-owned subsidiaries			13,000		-		-		(13,000)		-

	Acquisition of premises and equipment			(755)		-		(52,389)		-		(53,144)
	Proceeds from insurance claims			-		-		14,411		-		14,411
	Proceeds from sale of:
		Premises and equipment and other productive assets		195		-		6,796		-		6,991
		Foreclosed assets		-		-		85,622		-		85,622
Net cash used in investing activities				(464,165)		(5,096)		(4,655,403)		471,382		(4,653,282)
Cash flows from financing activities:
	Net increase (decrease) in:
		Deposits		-		-		4,596,970		(403,111)		4,193,859
		Assets sold under agreements to repurchase		-		-		(90,805)		-		(90,805)
		Other short-term borrowings		-		-		(95,008)		-		(95,008)
	Payments of notes payable			-		(54,502)		(172,474)		-		(226,976)
	Proceeds from issuance of notes payable			294,706		-		140,000		-		434,706
	Proceeds from issuance of common stock			11,441		-		(589)		-		10,852
	Dividends paid to parent company			-		-		(402,000)		402,000		-
	Dividends paid			(79,115)		-		-		-		(79,115)
	Net payments for repurchase of common stock			(125,323)		-		-		(3)		(125,326)
	Return of capital to parent company			-		-		(13,000)		13,000		-
	Capital contribution from parent			-		72,000		10,000		(82,000)		-
	Payments related to tax withholding for share-based compensation			(2,162)		-		(43)		-		(2,205)
Net cash (used in) provided by financing activities				99,547		17,498		3,973,051		(70,114)		4,019,982
Net increase (decrease) in cash and due from banks, and restricted cash				1,331		(462)		(433)		(882)		(446)
Cash and due from banks, and restricted cash at beginning of period				48,120		462		412,225		(48,178)		412,629
Cash and due from banks, and restricted cash at end of period			$	49,451	$	-	$	411,792	$	(49,060)	$	412,183