Popular, Inc. Reports Net Income of $151.3 million for the Year and $3.0 million for the Quarter ended December 31, 2011

• One-time expense of $15.6 million due to implementation of employee retirement window; 369 employees signed up; estimated annual savings of $15 million going forward
• Net interest income decreases $24.5 million, mainly interest on covered loans; net interest margin at 4.30% for Q4
• Provision for non-covered loans falls $26.8 million to $123.9 million in Q4 vs. Q3; ALLL for non-covered loans stable at 3.35%
• Commercial non-performing loan inflows at BPPR for Q4 decreased by $109 million vs. Q3
• Gross revenues stable at $494.1 million in Q4, vs. $491.7 million in Q3
• Net income of $151.3 million for year 2011 vs. $137.4 million for year 2010
• Net income per common share of $0.14 for year 2011
• Provision for loan losses of $575.7 million in 2011 vs. $1.0 billion in 2010

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Popular, Inc. (“the Corporation” or “Popular”) (NASDAQ: BPOP) reported net income of $3.0 million for the quarter ended December 31, 2011, compared with net income of $27.5 million for the quarter ended September 30, 2011, and a net loss of $227.1 million for the quarter ended December 31, 2010.

The Corporation’s net income for the year ended December 31, 2011 amounted to $151.3 million, compared with $137.4 million in 2010.

Refer to the accompanying “Financial Supplement to Fourth Quarter 2011 Earnings Release” for detailed financial information and key performance ratios.

Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said, “The year 2011 was a turnaround year for us. We were able to achieve operational profitability for the first time since 2006 by maintaining strong margins, producing strong and stable top line revenue, and continuing to reduce credit costs. We believe we can build on these results and make further progress in 2012. Based on our current credit trends and our current economic outlook for Puerto Rico and the U.S., we believe that we can continue to reduce credit costs and achieve net income of between $185 million and $200 million during 2012.”

Earnings Highlights – Fourth Quarter 2011 compared to Third Quarter 2011

	Quarter ended		$ Variance		Quarter ended
(Dollars in thousands)	December 31, 2011	September 30, 2011	Q4 vs. Q3 2011		December 31, 2010
Net interest income	$344,780	$369,311	($24,531	)	$	354,575
Provision for loan losses – non-covered loans	123,908	150,703	(26,795	)		354,409
Provision for loan losses – covered loans [1]	55,900	25,573	30,327			-
Net interest income after provision for loan losses	164,972	193,035	(28,063	)		166
Non-interest income	149,359	122,390	26,969			105,606
Operating expenses	311,093	282,355	28,738			344,677
Income before income tax	3,238	33,070	(29,832	)		(238,905	)
Income tax expense (benefit)	263	5,537	(5,274	)		(11,764	)
Net income (loss)	$2,975	$27,533	($24,558	)		($227,141	)
Net income (loss) applicable to common stock	$2,044	$26,602	($24,558	)		($227,451	)
Net income (loss) per common share - basic and diluted	$ -	$0.03	($0.03	)		($0.22	)
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.

Net interest income

• The net interest margin was 4.30% for the fourth quarter of 2011, compared with 4.45% for the third quarter of 2011. The decrease in net interest income of $24.5 million for the fourth quarter of 2011, compared with the third quarter of 2011, was principally due to a reduction in loan yields, mainly in mortgage loans and the covered loan portfolio, and to a lower volume of investment and trading securities, partially offset by a reduction in the cost of deposits and the volume of borrowings. Refer to Tables D and E for detailed information on average financial condition balances and an analysis of yield / rates by main categories.
• The principal variance in interest income on loans was a reduction in the interest derived from covered loans by $17.4 million, or 124 basis points. This reduction can be attributed primarily to increases in cash flows, assessed in prior periods, for certain loan pools that have a shorter average life than the remaining portfolio. The additional cash flows generated a benefit that based on the pool’s cash flow expectations mainly impacted the results for the second and third quarters of 2011.
• The decline in interest income derived from mortgage loans was $8.2 million, or a reduction in yield of 69 basis points, which was mostly influenced by the partial reversal of the interest receivable on delinquent residential mortgage loans insured by FHA or guaranteed by the VA that are over 18-months past due. The principal repayment on these loans is fully insured.
• The Corporation’s interest expense on deposits decreased by $9.8 million, while their cost went down 17 basis points, reaching 0.99% for the fourth quarter of 2011 and reflecting the continuing progress in repricing the Corporation’s deposit base.
• Interest expense related to borrowings also declined by $4.1 million mainly due to the full repayment of the note payable to the FDIC, which was issued as part of the Westernbank FDIC-assisted transaction.

Provision for loan losses

• The provision for loan losses for the quarter ended December 31, 2011 increased by $3.5 million compared with the third quarter of 2011. There was an increase of $30.3 million in the provision for loan losses on the covered loans, partially offset by a decrease of $26.8 million in the provision for loan losses on the non-covered loans. The increase in the provision for loan losses on the covered loan portfolio was impacted mainly by two particular credit relationships accounted for pursuant to ASC 310-20 which required specific reserves of $28.2 million during the fourth quarter, of which $10.9 million was charged-off during the same quarter. The decrease related to non-covered loans was due to lower provision for loan losses in the Banco Popular de Puerto Rico (“BPPR”) reportable segment by $42.9 million, partially offset by an increase in the Banco Popular North America (“BPNA”) reportable segment of $16.1 million. Refer to the Credit Quality section for the main factors that influenced these variances.

Non-interest income

• FDIC loss share income of $17.4 million was recognized in the fourth quarter of 2011, compared with FDIC loss share expense of $5.4 million for the third quarter of 2011. Refer to Table O for financial information on the covered loans and the composition of the FDIC loss share income. The increase in FDIC loss share income was principally associated with the increase in the provision for loan losses on covered loans.
• Adjustments to indemnity reserves on loans sold or serviced impacted non-interest income with a net unfavorable impact of $3.5 million (expense) during the fourth quarter of 2011, compared with a net expense of $10.3 million for the third quarter of 2011. The main drivers for the reduction of $6.8 million in the expense was the net impact of (1) a reduction of $4.4 million in the representation and warranty reserve adjustment for the BPNA reportable segment since the Corporation reached global settlements with two of the largest counterparties and has seen reduced activity from the remaining parties; and (2) a decrease of $5.8 million in the representation and warranties reserve at the BPPR reportable segment as a result of refinement in estimates based on historical claims and loss expectations, partially offset by (3) an increase in the adjustment to the reserve for residential mortgage loans serviced with recourse of $3.4 million, which reflects lower expected prepayment rates on the serviced portfolio.
• Other operating income increased by $9.9 million mostly due to higher income from investments accounted for under the equity method by approximately $4.3 million and gains of $3.0 million on the sale of former bank premises in the Puerto Rico operations, among the principal factors.

The above favorable variances in non-interest income were partially offset by the following categories:

• Gains on the sale of investment securities available-for-sale amounted to $2.8 million for the fourth quarter of 2011, compared with $8.1 million for the third quarter of 2011, driven by lower volume of securities sold.
• Net gain on sale of loans, including valuation adjustments on loans held-for-sale, amounted to $16.1 million for the fourth quarter of 2011, compared with a net gain of $20.3 million for the third quarter of 2011. The gains recognized during the fourth quarter of 2011 were mainly from the securitization of residential mortgage loans in Puerto Rico. The results for the third quarter of 2011 included the gain on the sale of commercial and construction loans, which contributed with a favorable impact to non-interest income of $17.4 million during that quarter.
• Other service fees decreased by $2.6 million, mostly due to lower debit fees associated in part with a decrease in interchange fees due to the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which was implemented in October 2011 and which limits transactional fees. This reduction in other service fees was partially offset by higher insurance fees in the fourth quarter of 2011, mostly as a result of an increase in contingent commissions driven by business production for the year in the dwelling and flood insurance businesses. Refer to Table F in the Financial Supplement for a breakdown of other service fees.

Operating expenses

• Operating expenses increased by $28.7 million for the fourth quarter of 2011 compared with the third quarter of 2011, principally due to the recognition in December 2011 of $15.6 million in pension costs related to employees that were eligible and signed up for the retirement program. A total of 369 employees will retire effective January 31, 2012. Annual cost savings from this reduction in headcount are estimated to be approximately $15 million. Other categories of operating expenses which had increases were business promotion expense by $4.6 million, mainly due to advertising campaigns related to credit cards and client relationship marketing campaigns during the holidays, as well as from marketing costs associated with the continued BPNA rebranding initiative in Florida and California; and other real estate expenses by $6.7 million, mainly from maintenance costs related to repossessed construction projects. Refer to Table B which provides a breakdown of operating expenses by main categories.

Credit Quality

• Excluding covered loans, the allowance for loan losses to loans held-in-portfolio ratio stood at 3.35% at December 31, 2011, unchanged when compared with September 30, 2011. The general and specific reserves amounted to $635 million and $56 million, respectively, as of December 31, 2011, compared with $634 million and $58 million, respectively, as of September 30, 2011. Refer to Tables H through M for detailed credit quality information, including the activity in the allowance for loan losses.
• Non-performing loans, excluding loans held-for-sale and covered loans, increased $6 million from September 30, 2011 to December 31, 2011, driven principally by an increase in non-performing residential mortgage loans at the BPPR reportable segment, mainly due to loans repurchased under recourse arrangements, partially offset by a reduction in non-performing construction loans held-in-portfolio at the BPPR and BPNA reportable segments. The Corporation has reduced significantly its construction loan portfolio; therefore, the level of problem loans remaining at both reportable segments has declined, driven by the resolution of existing exposures. Refer to Table I for the activity in non-performing commercial and construction loans, excluding covered loans and loans held-for-sale, for the fourth quarter of 2011.
• Excluding covered loans, net charge-offs for the fourth quarter of 2011 declined by $9.1 million, compared with the quarter ended September 30, 2011. The reduction was due to a decrease in net charge-offs in the BPPR reportable segment by $11.4 million, mainly due to lower losses in the BPPR commercial loan portfolio, partially offset by a slight increase in the BPNA reportable segment of $2.2 million. There was an increase of $9.1 million in the net charge-offs on the covered loans, driven principally by one particular credit relationship that was charged-off during the fourth quarter. Refer to Table J for further information on the Corporation’s net charge-offs and related ratios.

Refer to the section below for explanations on the main variances.

BPPR Reportable Segment

• Excluding the impact of the provision for loan losses for the covered loan portfolio, the provision for loan losses for non-covered loans of the BPPR reportable segment totaled $88.1 million for the fourth quarter of 2011, compared with $131.1 million for the third quarter of 2011. The decrease was attributable to lower net charge-offs in the commercial, mortgage and consumer loan portfolios, coupled with an improved outlook in net charge-offs for the consumer loan portfolio due to better macro-economic indicators. These improvements were partially offset by higher reserve requirements for consumer loans restructured under loss mitigation programs. In addition, $12.7 million of the decrease was associated with write-downs on commercial loans transferred from the held-in-portfolio to the held-for-sale category during the third quarter of 2011. These loans were part of the loan sale executed in September 2011.

• Annualized net charge-offs to average non-covered loans held-in-portfolio ratio for the BPPR reportable segment decreased 35 basis points, from 2.49% for the quarter ended September 30, 2011 to 2.14% for the quarter ended December 31, 2011. The decrease was driven by lower net charge-offs in the commercial, consumer and mortgage loan portfolios.

• Non-performing loans of the BPPR reportable segment, excluding loans held-for-sale and covered loans, amounted to $1.4 billion at December 31, 2011, compared with $1.3 billion at September 30, 2011. Non-performing loans of the BPPR residential mortgage loan portfolio increased by $69 million, mainly due to loan repurchases under credit recourse arrangements. This increase was partially offset by reductions in the non-performing commercial and construction loans held-in-portfolio of $22 million and $11 million, respectively.

• Refer to Table L for information on the allowance for loan losses of the Corporation’s Puerto Rico operations. The increase in the allowance for loan losses from September 30, 2011 to December 31, 2011 reflects a higher general reserve component for the commercial and mortgage loan portfolios mostly driven by: (i) higher loss trend mainly observed during the second half of the year on the commercial loan portfolio and (ii) the deterioration in the credit quality of the mortgage loan portfolio. These increases were partially offset by a reduction in the general reserve for the consumer loan portfolio primarily due to stable credit quality performance, which was partially offset by higher specific reserve requirements for consumer loans restructured under loss mitigation programs.

BPNA Reportable Segment

• The provision for loan losses for the BPNA reportable segment amounted to $35.8 million, or 75.0% of net charge-offs, for the fourth quarter of 2011, compared with $19.6 million or 43.2% of net charge-offs for the third quarter of 2011. The increase in the provision for loan losses in the BPNA reportable segment was mainly due to lower release of reserves in the fourth quarter of 2011 compared with the third quarter, principally in the commercial loan portfolio.
• Annualized net charge-offs to average loans held-in-portfolio ratio for the BPNA reportable segment increased 27 basis points, from 3.00% for the quarter ended September 30, 2011 to 3.27% for the quarter ended December 31, 2011. Net charge-offs present a slight increase mostly observed in the commercial and consumer loan segments, partially offset by lower levels in the mortgage loan portfolio. The increase in net charge-offs in the commercial loan portfolio of $3.1 million was the net effect of reduced commercial loan recoveries by $5.3 million and lower charge-offs of $2.2 million.
• Non-performing loans held-in-portfolio of the BPNA reportable segment amounted to $367 million as of December 31, 2011, compared with $395 million as of September 30, 2011. Non-performing construction loans declined $48 million, while non-performing consumer loans declined $2 million. The reduction in non-performing construction loans was mainly due to the resolution of certain existing exposures. The non-performing consumer loan portfolio continues to reflect a decreasing trend and signs of stabilization in the U.S. operations. Non-performing commercial loans increased by $22 million from September 30, 2011, driven principally by one commercial loan relationship with an outstanding balance of approximately $25 million as of December 31, 2011. This particular commercial loan relationship was subject to a $2.3 million charge-off during the fourth quarter of 2011, and did not require a valuation allowance as of year-end.
• Refer to Table M for information on the allowance for loan losses of the BPNA reportable segment. The decline in the allowance for loan losses from September 30, 2011 to December 31, 2011 reflects an overall decrease in the general reserve component, partially offset by an increase in the specific reserve for non-conventional mortgage loans restructured under loss mitigation programs.

Financial Condition Highlights – December 31, 2011 compared to September 30, 2011

• Total assets amounted to $37.3 billion as of December 31, 2011, compared with $38.3 billion as of September 30, 2011. Refer to Table C for a detailed presentation of the Corporation’s Consolidated Statements of Condition.

• Total investment securities, including trading securities and other investment securities, amounted to $5.8 billion as of December 31, 2011 and September 30, 2011.
• Total loans held-in-portfolio declined $235 million from September 30, 2011 to December 31, 2011. Refer to Table G for a breakdown by loan categories. The decline was mostly in covered loans which declined by $164 million from September 30, 2011 to December 31, 2011, principally due to collections.
• Commercial and construction non-covered loans held-in-portfolio decreased $101 million from September 30, 2011 to December 31, 2011, which consisted of a decline of $155 million in the BPNA reportable segment, partially offset by an increase of $54 million in the Puerto Rico operations. The increase in BPPR was mostly from the public and corporate sectors, while the reduction in the BPNA reportable segment was principally due to portfolio runoff of the discontinued lending business, loan amortization and reclassification to other real estate exceeding new and renewal originations. The decline in the consolidated commercial and construction loan portfolio was offset by a greater volume of mortgage loans held-in-portfolio in the Corporation’s Puerto Rico operations, mainly due to loan repurchases under credit recourse agreements.
• Deposits amounted to $27.9 billion as of December 31, 2011, compared with $28.0 billion as of September 30, 2011. Table G presents a breakdown of deposits by major categories.
• The Corporation’s borrowings amounted to $4.3 billion as of December 31, 2011, compared with $5.3 billion as of September 30, 2011. The decrease in borrowings was mostly related to a reduction in principal of $714 million on the note issued to the FDIC as it was fully repaid during the fourth quarter.
• Stockholders’ equity was $3.9 billion as of December 31, 2011, compared with $4.0 billion as of September 30, 2011. Refer to Table A for capital ratios and Table N for Non-GAAP reconciliations.

Forward-Looking Statements

The information included in this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in forward-looking statements. Factors that might cause such a difference include, but are not limited to (i) the rate of growth in the economy and employment levels, as well as general business and economic conditions; (ii) changes in interest rates, as well as the magnitude of such changes; (iii) the fiscal and monetary policies of the federal government and its agencies; (iv) changes in federal bank regulatory and supervisory policies, including required levels of capital; (v) the relative strength or weakness of the consumer and commercial credit sectors and of the real estate markets in Puerto Rico and the other markets in which borrowers are located; (vi) the performance of the stock and bond markets; (vii) competition in the financial services industry; (viii) possible legislative, tax or regulatory changes; (ix) the impact of the Dodd-Frank Act on our businesses, business practice and cost of operations; and (x) additional Federal Deposit Insurance Corporation assessments. For a discussion of such factors and certain risks and uncertainties to which the Corporation is subject, see the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2010, as well as its filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, the Corporation assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks 36th by assets among U.S. banks. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey, Illinois, Florida and California.

An electronic version of this press release can be found at the Corporation’s website, www.popular.com.

POPULAR, INC.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
	Quarter ended		Quarter ended		Quarter ended		Year ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2011		2011		2010		2011		2010
Net income (loss) per common share:
Basic and diluted	$0.00		$0.03		($0.22	)	$0.14		($0.06	)
Average common shares outstanding	1,022,741,800		1,021,660,038		1,021,527,855		1,021,793,932		885,154,040
Average common shares outstanding - assuming dilution	1,022,741,800		1,021,660,038		1,021,527,855		1,022,894,962		885,154,040
Common shares outstanding at end of period	1,025,904,567		1,024,475,398		1,022,727,802		1,025,904,567		1,022,727,802
Market value per common share	$1.39		$1.50		$3.14		$1.39		$3.14
Market Capitalization --- (In millions)	$1,426		$1,537		$3,211		$1,426		$3,211
Return on average assets	0.03	%	0.29	%	-2.29	%	0.40	%	0.36	%
Return on average common equity	0.21	%	2.81	%	-23.51	%	4.01	%	4.37	%
Net interest margin [1]	4.30	%	4.45	%	4.10	%	4.34	%	3.79	%
Common equity per share	$3.77		$3.87		$3.67		$3.77		$3.67
Tangible common book value per common share (non-GAAP)	$3.08		$3.17		$2.98		$3.08		$2.98
Tangible common equity to tangible assets (non-GAAP)	8.62	%	8.65	%	7.99	%	8.62	%	7.99	%
Tier 1 risk-based capital [2]	15.97	%	15.79	%	14.52	%	15.97	%	14.52	%
Total risk-based capital [2]	17.25	%	17.07	%	15.79	%	17.25	%	15.79	%
Tier 1 leverage [2]	10.90	%	10.56	%	9.70	%	10.90	%	9.70	%
Tier 1 common equity to risk-weighted assets (non-GAAP) [2]	12.10	%	12.00	%	10.94	%	12.10	%	10.94	%
[1] Not on a taxable equivalent basis.
[2] Capital ratios for the current quarter are estimated.

POPULAR, INC.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
	Quarter ended			Quarter ended			Variance			Quarter ended			Year ended			Year ended
	December 31,			September 30,			Q4 2011 vs.			December 31,			December 31,			December 31,
(In thousands, except per share information)	2011			2011			Q3 2011			2010			2011			2010
Interest income:
Loans	$	399,523		$	428,999		$	(29,476	)	$	445,444		$	1,694,357		$	1,676,734
Money market investments		837			886			(49	)		1,058			3,596			5,384
Investment securities		46,758			51,085			(4,327	)		53,092			203,941			238,210
Trading account securities		6,275			10,788			(4,513	)		7,605			35,607			27,918
Total interest income		453,393			491,758			(38,365	)		507,199			1,937,501			1,948,246
Interest expense:
Deposits		56,068			65,868			(9,800	)		80,962			269,487			350,881
Short-term borrowings		13,780			13,744			36			14,522			55,258			60,278
Long-term debt		38,765			42,835			(4,070	)		57,140			180,764			242,222
Total interest expense		108,613			122,447			(13,834	)		152,624			505,509			653,381
Net interest income		344,780			369,311			(24,531	)		354,575			1,431,992			1,294,865
Provision for loan losses		179,808			176,276			3,532			354,409			575,720			1,011,880
Net interest income after provision for loan losses		164,972			193,035			(28,063	)		166			856,272			282,985
Service charges on deposit accounts		46,162			46,346			(184	)		45,938			184,940			195,803
Other service fees		60,097			62,664			(2,567	)		71,637			239,720			377,504
Net gain (loss) on sale and valuation adjustments of investment securities		2,800			8,134			(5,334	)		(218	)		10,844			3,992
Trading account profit		2,610			2,912			(302	)		8,303			5,897			16,404
Net gain (loss) on sale of loans, including valuation adjustments
on loans held-for-sale		16,135			20,294			(4,159	)		1,478			30,891			15,874
Adjustments (expense) to indemnity reserves on loans sold		(3,481	)		(10,285	)		6,804			(34,511	)		(33,068	)		(72,013	)
FDIC loss share income (expense)		17,447			(5,361	)		22,808			(3,046	)		66,791			(25,751	)
Fair value change in equity appreciation instrument		-			-			-			7,520			8,323			42,555
Gain on sale of processing and technology business		-			-			-			-			-			640,802
Other operating income		7,589			(2,314	)		9,903			8,505			45,939			93,023
Total non-interest income		149,359			122,390			26,969			105,606			560,277			1,288,193
Operating expenses:
Personnel costs
Salaries		77,074			77,455			(381	)		77,206			305,018			352,139
Commissions, incentives and other bonuses		10,873			11,630			(757	)		12,167			44,421			53,837
Pension, postretirement and medical insurance		26,039			11,385			14,654			14,838			62,219			61,294
Other personnel costs, including payroll taxes		10,561			11,254			(693	)		9,818			41,712			46,928
Total personnel costs		124,547			111,724			12,823			114,029			453,370			514,198
Net occupancy expenses		25,891			25,885			6			29,844			102,319			116,203
Equipment		10,526			10,517			9			11,620			43,840			85,851
Other taxes		12,899			12,391			508			11,973			51,885			50,608
Professional fees		50,019			48,756			1,263			56,607			194,942			166,105
Communications		5,917			6,800			(883	)		7,277			27,115			38,905
Business promotion		19,225			14,650			4,575			16,912			55,067			46,671
FDIC deposit insurance		25,088			23,285			1,803			17,750			93,728			67,644
Loss on early extinguishment of debt		56			109			(53	)		12,361			8,693			38,787
Other real estate owned (OREO)		9,893			3,234			6,659			20,467			21,778			46,789
Credit and debit card processing, volume, interchange and other		3,974			5,416			(1,442	)		3,865			17,539			42,613
Other operating expenses		20,377			17,125			3,252			39,714			70,367			102,000
Amortization of intangibles		2,681			2,463			218			2,258			9,654			9,173
Total operating expenses		311,093			282,355			28,738			344,677			1,150,297			1,325,547
Income before income tax		3,238			33,070			(29,832	)		(238,905	)		266,252			245,631
Income tax expense (benefit)		263			5,537			(5,274	)		(11,764	)		114,927			108,230
Net income (loss)	$	2,975		$	27,533		$	(24,558	)	$	(227,141	)	$	151,325		$	137,401
Net income (loss) applicable to common stock	$	2,044		$	26,602		$	(24,558	)	$	(227,451	)	$	147,602		$	(54,576	)
Net income (loss) per common share - basic	$	-		$	0.03		$	(0.03	)	$	(0.22	)	$	0.14		$	(0.06	)
Net income (loss )per common share - diluted	$	-		$	0.03		$	(0.03	)	$	(0.22	)	$	0.14		$	(0.06	)

Popular, Inc.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table C - Consolidated Statement of Condition
(Unaudited)
										Variance
	December 31,			September 30,			December 31,			Q4 2011 vs.
(In thousands)	2011			2011			2010			Q3 2011
Assets:
Cash and due from banks	$	535,282		$	567,141		$	452,373		$	(31,859	)
Money market investments		1,376,174			1,269,139			979,295			107,035
Trading account securities, at fair value		436,331			272,939			546,713			163,392
Investment securities available-for-sale, at fair value		5,009,823			5,226,529			5,236,852			(216,706	)
Investment securities held-to-maturity, at amortized cost		125,383			128,546			122,354			(3,163	)
Other investment securities, at lower of cost or realizable value		179,880			173,569			163,513			6,311
Loans held-for-sale, at lower of cost or fair value		363,093			368,777			893,938			(5,684	)
Loans held-in-portfolio:
Loans not covered under loss sharing agreements with the FDIC		20,602,596			20,673,886			20,728,035			(71,290	)
Loans covered under loss sharing agreements with the FDIC		4,348,703			4,512,423			4,836,882			(163,720	)
Less - Allowance for loan losses		(815,308	)		(772,921	)		(793,225	)		(42,387	)
Total loans held-in-portfolio, net		24,135,991			24,413,388			24,771,692			(277,397	)
FDIC loss share asset		1,915,128			1,895,059			2,410,219			20,069
Premises and equipment, net		538,486			536,529			545,453			1,957
Other real estate not covered under loss sharing agreements with the FDIC		172,497			166,285			161,496			6,212
Other real estate covered under loss sharing agreements with the FDIC		109,135			84,839			57,565			24,296
Accrued income receivable		125,209			134,263			150,658			(9,054	)
Mortgage servicing assets, at fair value		151,323			157,226			166,907			(5,903	)
Other assets		1,462,393			2,168,529			1,449,887			(706,136	)
Goodwill		648,350			648,353			647,387			(3	)
Other intangible assets		63,954			64,212			58,696			(258	)
Total assets	$	37,348,432		$	38,275,323		$	38,814,998		$	(926,891	)
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing	$	5,655,474		$	5,527,450		$	4,939,321		$	128,024
Interest bearing		22,286,653			22,425,890			21,822,879			(139,237	)
Total deposits		27,942,127			27,953,340			26,762,200			(11,213	)
Federal funds purchased and assets sold under agreements to repurchase		2,141,097			2,601,606			2,412,550			(460,509	)
Other short-term borrowings		296,200			166,200			364,222			130,000
Notes payable		1,856,372			2,550,745			4,170,183			(694,373	)
Other liabilities		1,193,883			990,831			1,305,312			203,052
Total liabilities		33,429,679			34,262,722			35,014,467			(833,043	)
Stockholders’ equity:
Preferred stock		50,160			50,160			50,160			-
Common stock		10,263			10,249			10,229			14
Surplus		4,101,661			4,099,379			4,094,005			2,282
Accumulated deficit		(199,726	)		(201,770	)		(347,328	)		2,044
Treasury stock		(1,057	)		(992	)		(574	)		(65	)
Accumulated other comprehensive (loss) income		(42,548	)		55,575			(5,961	)		(98,123	)
Total stockholders’ equity		3,918,753			4,012,601			3,800,531			(93,848	)
Total liabilities and stockholders’ equity	$	37,348,432		$	38,275,323		$	38,814,998		$	(926,891	)

Popular, Inc.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER
(Unaudited)
Quarter	Quarter ended							Quarter ended							Quarter ended							Variance							Variance
	December 31, 2011							September 30, 2011							December 31, 2010							Q4 2011 vs Q3 2011							Q4 2011 vs Q4 2010
	Average			Income /		Yield /		Average			Income /		Yield /		Average			Income /		Yield /		Average		Income /		Yield /			Average			Income /		Yield /
($ amounts in millions; yields not on a taxable equivalent basis)	balance			Expense		Rate		balance			Expense		Rate		balance			Expense		Rate		balance		Expense		Rate			balance			Expense		Rate
Assets:
Interest earning assets:
Money market, trading and investment securities	$	6,635		$	53.9	3.24	%	$	7,540		$	62.8	3.32	%	$	7,654		$	61.8	3.22	%	($905	)	($8.9	)	(0.08	)	%		($1,019	)	($7.9	)	0.02		%
Loans not covered under loss sharing agreements with the FDIC:
Commercial		10,596			131.4	4.92			10,690			134.1	4.98			11,532			147.0	5.06		(94	)	(2.7	)	(0.06	)			(936	)	(15.6	)	(0.14	)
Construction		564			2.3	1.59			698			2.5	1.45			1,208			6.3	2.05		(134	)	(0.2	)	0.14				(644	)	(4.0	)	(0.46	)
Mortgage		5,402			70.5	5.22			5,326			78.7	5.91			4,743			70.1	5.91		76		(8.2	)	(0.69	)			659		0.4		(0.69	)
Consumer		3,680			95.0	10.25			3,656			95.1	10.32			3,726			97.9	10.43		24		(0.1	)	(0.07	)			(46	)	(2.9	)	(0.18	)
Lease financing		562			11.9	8.44			572			12.8	8.93			601			13.4	8.94		(10	)	(0.9	)	(0.49	)			(39	)	(1.5	)	(0.50	)
Total loans not covered under loss sharing agreements with the FDIC		20,804			311.1	5.95			20,942			323.2	6.14			21,810			334.7	6.10		(138	)	(12.1	)	(0.19	)			(1,006	)	(23.6	)	(0.15	)
Loans covered under loss sharing agreements with the FDIC		4,401			88.4	7.99			4,557			105.8	9.23			4,974			110.7	8.84		(156	)	(17.4	)	(1.24	)			(573	)	(22.3	)	(0.85	)
Total loans		25,205			399.5	6.30			25,499			429.0	6.69			26,784			445.4	6.61		(294	)	(29.5	)	(0.39	)			(1,579	)	(45.9	)	(0.31	)
Total interest earning assets		31,840		$	453.4	5.66	%		33,039		$	491.8	5.92	%		34,438		$	507.2	5.86	%	(1,199	)	($38.4	)	(0.26	)	%		(2,598	)	($53.8	)	(0.20	)	%
Allowance for loan losses		(751	)						(749	)						(1,188	)					(2	)							437
Other non-interest earning assets		5,655							5,704							6,177						(49	)							(522	)
Total average assets	$	36,744						$	37,994						$	39,427						($1,250	)							($2,683	)
Liabilities and Stockholders' Equity:
Interest bearing deposits:
NOW and money market	$	5,199		$	6.4	0.49	%	$	5,284		$	7.3	0.55	%	$	4,933		$	9.1	0.74	%	($85	)	($0.9	)	(0.06	)	%	$	266		($2.7	)	(0.25	)	%
Savings		6,475			6.4	0.39			6,307			8.6	0.54			6,234			13.7	0.87		168		(2.2	)	(0.15	)			241		(7.3	)	(0.48	)
Time deposits		10,685			43.3	1.61			10,876			50.0	1.82			10,966			58.1	2.10		(191	)	(6.7	)	(0.21	)			(281	)	(14.8	)	(0.49	)
Total interest bearing deposits		22,359			56.1	0.99			22,467			65.9	1.16			22,133			80.9	1.45		(108	)	(9.8	)	(0.17	)			226		(24.8	)	(0.46	)
Borrowings		4,507			52.5	4.65			5,675			56.6	3.98			7,224			71.7	3.96		(1,168	)	(4.1	)	0.67				(2,717	)	(19.2	)	0.69
Total interest bearing liabilities		26,866			108.6	1.61			28,142			122.5	1.73			29,357			152.6	2.07		(1,276	)	(13.9	)	(0.12	)			(2,491	)	(44.0	)	(0.46	)
Net interest spread						4.05	%						4.19	%						3.79	%					(0.14	)	%						0.26		%
Non-interest bearing deposits		5,165							5,095							5,011						70								154
Other liabilities		895							956							1,175						(61	)							(280	)
Stockholders' equity		3,818							3,801							3,884						17								(66	)
Total average liabilities and stockholders' equity	$	36,744						$	37,994						$	39,427						($1,250	)							($2,683	)
Net interest income / margin non-taxable equivalent basis				$	344.8	4.30	%				$	369.3	4.45	%				$	354.6	4.10	%			($24.5	)	(0.15	)	%				($9.8	)	0.20		%

Popular, Inc.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE
(Unaudited)
Year-to-date	Year ended							Year ended							Variance
	December 31, 2011							December 31, 2010							YTD 2011 vs. 2010
	Average			Income /		Yield /		Average			Income /		Yield /		Average			Income /			Yield /
($ amounts in millions; yields not on a taxable equivalent basis)	balance			Expense		Rate		balance			Expense		Rate		balance			Expense			Rate
Assets:
Interest earning assets:
Money market, trading and investment securities	$	7,314		$	243.1	3.32	%	$	8,332		$	271.5	3.26	%		($1,018	)		($28.4	)	0.06		%
Loans not covered under loss sharing agreements with the FDIC:
Commercial		10,889			541.9	4.98			11,889			613.8	5.16			(1,000	)		(71.9	)	(0.18	)
Construction		731			10.8	1.48			1,458			29.5	2.03			(727	)		(18.7	)	(0.55	)
Mortgage		5,153			302.0	5.86			4,627			274.5	5.93			526			27.5		(0.07	)
Consumer		3,654			376.2	10.30			3,854			400.7	10.40			(200	)		(24.5	)	(0.10	)
Lease financing		577			50.8	8.81			629			55.1	8.77			(52	)		(4.3	)	0.04
Total loans not covered under loss sharing agreements with the FDIC		21,004			1,281.7	6.10			22,457			1,373.6	6.12			(1,453	)		(91.9	)	(0.02	)
Loans covered under loss sharing agreements with the FDIC		4,613			412.7	8.95			3,365			303.1	9.01			1,248			109.6		(0.06	)
Total loans		25,617			1,694.4	6.61			25,822			1,676.7	6.49			(205	)		17.7		0.12
Total interest earning assets		32,931		$	1,937.5	5.88	%		34,154		$	1,948.2	5.70	%		(1,223	)		($10.7	)	0.18		%
Allowance for loan losses		(746	)						(1,236	)						490
Other non-interest earning assets		5,881							5,461							420
Total average assets	$	38,066						$	38,379							($313	)
Liabilities and Stockholders' Equity:
Interest bearing deposits:
NOW and money market	$	5,204		$	31.0	0.60	%	$	4,981		$	39.8	0.80	%	$	223			($8.8	)	(0.20	)	%
Savings		6,321			37.5	0.59			5,970			54.0	0.90			351			(16.5	)	(0.31	)
Time deposits		10,920			201.0	1.84			10,967			257.1	2.34			(47	)		(56.1	)	(0.50	)
Total interest bearing deposits		22,445			269.5	1.20			21,918			350.9	1.60			527			(81.4	)	(0.40	)
Borrowings		5,847			236.0	4.04			7,448			302.4	4.06			(1,601	)		(66.4	)	(0.02	)
Total interest bearing liabilities		28,292			505.5	1.79			29,366			653.3	2.22			(1,074	)		(147.8	)	(0.43	)
Net interest spread						4.09	%						3.48	%							0.61		%
Non-interest bearing deposits		5,058							4,732							326
Other liabilities		983							1,022							(39	)
Stockholders' equity		3,733							3,259							474
Total average liabilities and stockholders' equity	$	38,066						$	38,379							($313	)
Net interest income / margin non-taxable equivalent basis				$	1,432.0	4.34	%				$	1,294.9	3.79	%				$	137.1		0.55		%

Popular, Inc.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table F - Breakdown of Other Service Fees
(Unaudited)
	Quarters ended							Variance			Variance
	December 31,		September 30,		December 31,			Q4 2011 vs.			Q4 2011 vs.
(In thousands)	2011		2011		2010			Q3 2011			Q4 2010
Other service fees:
Debit card fees	$	9,664	$	13,075	$	17,159		$	(3,411	)	$	(7,495	)
Insurance fees		16,471		13,785		14,839			2,686			1,632
Credit card fees and discounts		12,943		13,738		11,094			(795	)		1,849
Sale and administration of investment products		9,686		9,915		8,992			(229	)		694
Mortgage servicing fees, net of fair value adjustments		1,449		2,120		9,314			(671	)		(7,865	)
Trust fees		3,722		4,006		4,049			(284	)		(327	)
Processing fees		1,718		1,684		1,665			34			53
Other fees		4,444		4,341		4,525			103			(81	)
Total other service fees	$	60,097	$	62,664	$	71,637		$	(2,567	)	$	(11,540	)
	Year ended
	December 31,		December 31,		Variance
(In thousands)	2011		2010		2011 vs. 2010
Other service fees:
Debit card fees	$	49,459	$	100,639	$	(51,180	)
Insurance fees		54,390		49,768		4,622
Credit card fees and discounts		49,049		84,786		(35,737	)
Sale and administration of investment products		34,388		37,783		(3,395	)
Mortgage servicing fees, net of fair value adjustments		12,098		24,801		(12,703	)
Trust fees		15,333		14,217		1,116
Processing fees		6,839		45,055		(38,216	)
Other fees		18,164		20,455		(2,291	)
Total other service fees	$	239,720	$	377,504	$	(137,784	)

Popular, Inc.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table G - Loans and Deposits
(Unaudited)
Loans - Ending Balances
							Variance
(in thousands)	December 31, 2011		September 30, 2011		December 31, 2010		Q4 2011 vs. Q3 2011			Q4 2011 vs. Q4 2010
Loans not covered under FDIC loss sharing agreements:
Commercial	$	10,534,886	$	10,588,919	$	11,393,485	$	(54,033	)	$	(858,599	)
Construction		311,628		358,060		500,851		(46,432	)		(189,223	)
Lease financing		563,867		571,068		602,993		(7,201	)		(39,126	)
Mortgage		5,518,460		5,466,503		4,524,722		51,957			993,738
Consumer		3,673,755		3,689,336		3,705,984		(15,581	)		(32,229	)
Total non-covered loans held-in-portfolio	$	20,602,596	$	20,673,886	$	20,728,035	$	(71,290	)	$	(125,439	)
Loans covered under FDIC loss sharing agreements		4,348,703		4,512,423		4,836,882		(163,720	)		(488,179	)
Total loans held-in-portfolio	$	24,951,299	$	25,186,309	$	25,564,917	$	(235,010	)	$	(613,618	)
Loans held-for-sale:
Commercial	$	26,198	$	24,191	$	60,528	$	2,007		$	(34,330	)
Construction		236,045		234,336		412,744		1,709			(176,699	)
Mortgage		100,850		110,250		420,666		(9,400	)		(319,816	)
Total loans held-for-sale		363,093		368,777		893,938		(5,684	)		(530,845	)
Total loans	$	25,314,392	$	25,555,086	$	26,458,855	$	(240,694	)	$	(1,144,463	)
Deposits - Ending Balances
							Variance
(In thousands)	December 31, 2011		September 30, 2011		December 31, 2010		Q4 2011 vs. Q3 2011			Q4 2011 vs. Q4 2010
Demand deposits [1]	$	6,256,530	$	6,149,514	$	5,501,430	$	107,016		$	755,100
Savings, NOW and money market deposits (non-brokered)		10,762,869		10,787,782		10,371,580		(24,913	)		391,289
Savings, NOW and money market deposits (brokered)		212,688		100,002		-		112,686			212,688
Time deposits (non-brokered)		7,552,434		8,005,247		8,594,759		(452,813	)		(1,042,325	)
Time deposits (brokered CDs)		3,157,606		2,910,795		2,294,431		246,811			863,175
Total deposits	$	27,942,127	$	27,953,340	$	26,762,200	$	(11,213	)	$	1,179,927
[1] Includes interest and non-interest bearing deposits.

Popular, Inc.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table H - Non-Performing Assets
(Unaudited)
																Variance
(Dollars in thousands)	December 31, 2011			As a percentage of loans HIP by category		September 30, 2011			As a percentage of loans HIP by category		December 31, 2010			As a percentage of loans HIP by category		Q4 2011 vs. Q3 2011			Q4 2011 vs. Q4 2010
Commercial	$	872,873		8.3	%	$	872,581		8.2	%	$	725,027		6.4	%	$	292		$	147,846
Construction		128,999		41.4			187,914		52.5			238,554		47.6			(58,915	)		(109,555	)
Lease financing		5,808		1.0			4,194		0.7			5,937		1.0			1,614			(129	)
Mortgage		686,502		12.4			617,723		11.3			542,033		12.0			68,779			144,469
Consumer		43,668		1.2			49,259		1.3			60,302		1.6			(5,591	)		(16,634	)
Total non-performing loans held-in-
portfolio, excluding covered loans		1,737,850		8.4	%		1,731,671		8.4	%		1,571,853		7.6	%		6,179			165,997
Non-performing loans held-for-sale [1]		262,302					259,776					671,757					2,526			(409,455	)
Other real estate owned (“OREO”),
excluding covered OREO		172,497					166,285					161,496					6,212			11,001
Total non-performing assets,
excluding covered assets		2,172,649					2,157,732					2,405,106					14,917			(232,457	)
Covered loans and OREO		192,771					95,801					83,539					96,970			109,232
Total non-performing assets	$	2,365,420				$	2,253,533				$	2,488,645				$	111,887		$	(123,225	)
Accruing loans past due 90 days or more [2]	$	316,614				$	329,473				$	338,359				$	(12,859	)	$	(21,745	)
Ratios excluding covered loans:
Non-performing loans held-in-portfolio
to loans held-in-portfolio		8.44	%				8.38	%				7.58	%
Allowance for loan losses to loans
held-in-portfolio		3.35					3.35					3.83
Allowance for loan losses to
non-performing loans, excluding
held-for-sale		39.73					39.99					50.46
Ratios including covered loans:
Non-performing loans held-in-portfolio
to loans held-in-portfolio		7.30	%				6.92	%				6.25	%
Allowance for loan losses to loans
held-in-portfolio		3.27					3.07					3.10
Allowance for loan losses to non-performing
loans, excluding held-for-sale		44.76					44.35					49.64
[1] Non-performing loans held-for-sale as of December 31, 2011 consisted of $236 million in construction loans, $26 million in commercial loans and none in mortgage loans (September 30, 2011 - $235 million, $24 million and $1 million, respectively; December 31, 2010 - $412 million, $61 million, and $199 million, respectively).
[2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to nonperforming since the principal repayment is insured. These balances include $51 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2011.

Popular, Inc.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table I - Activity in Non-performing Loans
(Unaudited)
Commercial loans held-in-portfolio:
	Quarter ended			Quarter ended			Quarter ended
	December 31, 2011			December 31, 2011			December 31, 2011
(In thousands)	BPPR			BPNA			Popular, Inc.
Beginning Balance NPLs - September 30, 2011	$	652,937		$	219,644		$	872,581
Plus:
New non-performing loans		93,404			76,627			170,031
Advances on existing non-performing loans		-			34			34
Less:
Non-performing loans transferred to OREO		(4,685	)		(3,378	)		(8,063	)
Non-performing loans charged-off		(50,281	)		(33,350	)		(83,631	)
Loans returned to accrual status / loan collections		(60,204	)		(12,399	)		(72,603	)
Loans transferred to held-for-sale		-			(5,476	)		(5,476	)
Ending balance NPLs - December 31, 2011	$	631,171		$	241,702		$	872,873
Construction loans held-in-portfolio:
	Quarter ended			Quarter ended			Quarter ended
	December 31, 2011			December 31, 2011			December 31, 2011
(In thousands)	BPPR			BPNA			Popular, Inc.
Beginning Balance NPLs - September 30, 2011	$	64,971		$	122,943		$	187,914
Plus:
New non-performing loans		7,385			-			7,385
Advances on existing non-performing loans		-			34			34
Less:
Non-performing loans transferred to OREO		-			(13,149	)		(13,149	)
Non-performing loans charged-off		(3,689	)		(7,905	)		(11,594	)
Loans returned to accrual status / loan collections		(14,808	)		(19,239	)		(34,047	)
Loans transferred to held-for-sale		-			(7,544	)		(7,544	)
Ending balance NPLs - December 31, 2011	$	53,859		$	75,140		$	128,999
Commercial loans held-in-portfolio:
	Quarter ended			Quarter ended			Quarter ended
	September 30, 2011			September 30, 2011			September 30, 2011
(In thousands)	BPPR			BPNA			Popular, Inc.
Beginning Balance NPLs - June 30, 2011	$	557,421		$	227,166		$	784,587
Plus:
New non-performing loans		197,365			68,810			266,175
Advances on existing non-performing loans		4,864			226			5,090
Less:
Non-performing loans transferred to OREO		(2,171	)		(4,604	)		(6,775	)
Non-performing loans charged-off		(58,510	)		(36,055	)		(94,565	)
Loans returned to accrual status / loan collections		(22,165	)		(35,899	)		(58,064	)
Loans transferred to held-for-sale		(23,867	)		-			(23,867	)
Ending balance NPLs - September 30, 2011	$	652,937		$	219,644		$	872,581
Construction loans held-in-portfolio:
	Quarter ended			Quarter ended			Quarter ended
	September 30, 2011			September 30, 2011			September 30, 2011
(In thousands)	BPPR			BPNA			Popular, Inc.
Beginning Balance NPLs - June 30, 2011	$	58,691		$	139,544		$	198,235
Plus:
New non-performing loans		14,324			7,829			22,153
Advances on existing non-performing loans		2,116			101			2,217
Less:
Non-performing loans transferred to OREO		-			(2,824	)		(2,824	)
Non-performing loans charged-off		(563	)		(8,554	)		(9,117	)
Loans returned to accrual status / loan collections		(9,597	)		(13,153	)		(22,750	)
Loans transferred to held-for-sale		-			-			-
Ending balance NPLs - September 30, 2011	$	64,971		$	122,943		$	187,914

Popular, Inc.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)
	Quarter ended								Quarter ended								Quarter ended
	December 31,								September 30,								December 31,
(Dollars in thousands)	2011			2011		2011			2011			2011		2011			2010
	Non-covered loans			Covered loans		Total			Non-covered loans			Covered loans		Total			Total [1]
Balance at beginning of period	$	692,500		$	80,421	$	772,921		$	689,678		$	57,169	$	746,847		$	1,243,994
Provision for loan losses		123,908			55,900		179,808			150,703			25,573		176,276			354,409
		816,408			136,321		952,729			840,381			82,742		923,123			1,598,403
Net loans charged-off (recovered):
Commercial BPPR		48,428			10,526		58,954			58,509			1,278		59,787			109,348
Commercial BPNA		26,019			-		26,019			22,892			-		22,892			78,398
Construction BPPR		3,820			8		3,828			(81)			(1,500)		(1,581)			176,449
Construction BPNA		4,044			-		4,044			3,664			-		3,664			43,098
Lease financing BPPR		1,233			-		1,233			401			-		401			1,097
Lease financing BPNA		(36)			-		(36)			25			-		25			326
Mortgage BPPR		5,236			746		5,982			7,560			65		7,625			7,169
Mortgage BPNA		3,501			-		3,501			6,086			-		6,086			11,596
Consumer BPPR		19,592			96		19,688			23,278			2,478		25,756			31,757
Consumer BPNA		14,208			-		14,208			12,841			-		12,841			18,733
		126,045			11,376		137,421			135,175			2,321		137,496			477,971
Net write-downs (recoveries) related to loans transferred to loans held-for-sale		-			-		-			12,706			-		12,706			327,207
Balance at end of period	$	690,363		$	124,945	$	815,308		$	692,500		$	80,421	$	772,921		$	793,225
Ratios:
Annualized net charge-offs to average loans
held-in-portfolio		2.46	%				2.21	%		2.64	%				2.20	%		7.17	%
Provision for loan losses to net charge-offs		0.98	x				1.31	x		1.11	x				1.28	x		0.74	x
[1] There was no allowance for loan losses on covered loans as of December 31, 2010. The ratio of annualized net charge-offs to average loans held-in-portfolio, excluding covered loans, was 8.82% for the quarter ended December 31, 2010.
	Year ended								Year ended
	December 31,								December 31,
(Dollars in thousands)	2011			2011		2011			2010
	Non-covered loans			Covered loans		Total			Total [1]
Balance at beginning of period	$	793,225		$	-	$	793,225		$	1,261,204
Provision for loan losses		430,085			145,635		575,720			1,011,880
		1,223,310			145,635		1,368,945			2,273,084
Net loans charged-off (recovered):
Commercial BPPR		195,388			13,774		209,162			231,133
Commercial BPNA		114,214			-		114,214			207,163
Construction BPPR		5,816			2,853		8,669			289,150
Construction BPNA		17,443			-		17,443			105,837
Lease financing BPPR		3,444			-		3,444			6,459
Lease financing BPNA		167			-		167			3,968
Mortgage BPPR		27,624			811		28,435			21,712
Mortgage BPNA		14,187			-		14,187			73,067
Consumer BPPR		98,647			3,252		101,899			131,783
Consumer BPNA		57,118			-		57,118			82,380
		534,048			20,690		554,738			1,152,652
Net write-downs (recoveries) related to loans transferred to loans held-for-sale		(1,101)			-		(1,101)			327,207
Balance at end of period	$	690,363		$	124,945	$	815,308		$	793,225
Ratios:
Net charge-offs to average loans held-in-portfolio		2.61	%				2.21	%		4.48	%
Provision for loan losses to net charge-offs		0.81	x				1.04	x		0.88	x
[1] There was no allowance for loan losses on covered loans as of December 31, 2010. The ratio of annualized net charge-offs to average loans held-in-portfolio, excluding covered loans, was 5.15% for the year ended December 31, 2010.

Popular, Inc.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table K - Allowance for Loan Losses - Breakdown of general and specific reserves - CONSOLIDATED
(Unaudited)
December 31, 2011
(Dollars in thousands)		Commercial				Construction				Lease Financing				Mortgage				Consumer				Total			[2]
Specific ALLL		$	8,874			$	-			$	793			$	29,063			$	17,046			$	55,776
Impaired loans	[1]	$	530,498			$	120,580			$	6,104			$	382,880			$	140,108			$	1,180,170
Specific ALLL to impaired loans	[1]		1.67		%		-		%		12.99		%		7.59		%		12.17		%		4.73		%
General ALLL		$	401,414			$	13,613			$	4,098			$	73,198			$	142,264			$	634,587
Loans held-in-portfolio, excluding impaired loans	[1]	$	10,004,388			$	191,048			$	557,763			$	5,135,580			$	3,533,647			$	19,422,426
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]		4.01		%		7.13		%		0.73		%		1.43		%		4.03		%		3.27		%
Total ALLL		$	410,288			$	13,613			$	4,891			$	102,261			$	159,310			$	690,363
Total non-covered loans held-in-portfolio	[1]	$	10,534,886			$	311,628			$	563,867			$	5,518,460			$	3,673,755			$	20,602,596
ALLL to loans held-in-portfolio	[1]		3.89		%		4.37		%		0.87		%		1.85		%		4.34		%		3.35		%
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of December 31, 2011, the general allowance on the covered loans amounted to $98 million, while the specific reserve amounted to $27 million.
September 30, 2011
(Dollars in thousands)		Commercial				Construction				Lease Financing				Mortgage				Consumer				Total			[2]
Specific ALLL		$	21,240			$	1,335			$	46			$	28,192			$	7,665			$	58,478
Impaired loans	[1]	$	519,827			$	180,694			$	6,568			$	313,951			$	147,053			$	1,168,093
Specific ALLL to impaired loans	[1]		4.09		%		0.74		%		0.70		%		8.98		%		5.21		%		5.01		%
General ALLL		$	383,907			$	13,900			$	4,703			$	67,689			$	163,823			$	634,022
Loans held-in-portfolio, excluding impaired loans	[1]	$	10,069,092			$	177,366			$	564,500			$	5,152,552			$	3,542,283			$	19,505,793
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]		3.81		%		7.84		%		0.83		%		1.31		%		4.62		%		3.25		%
Total ALLL		$	405,147			$	15,235			$	4,749			$	95,881			$	171,488			$	692,500
Total non-covered loans held-in-portfolio	[1]	$	10,588,919			$	358,060			$	571,068			$	5,466,503			$	3,689,336			$	20,673,886
ALLL to loans held-in-portfolio	[1]		3.83		%		4.25		%		0.83		%		1.75		%		4.65		%		3.35		%
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of September 30, 2011, the general allowance on the covered loans amounted to $79 million, while the specific reserve amounted to $1 million.
Variance December 31, 2011 versus September 30, 2011
(Dollars in thousands)		Commercial				Construction				Lease Financing				Mortgage				Consumer				Total
Specific ALLL		$	(12,366	)		$	(1,335	)		$	747			$	871			$	9,381			$	(2,702	)
Impaired loans		$	10,671			$	(60,114	)		$	(464	)		$	68,929			$	(6,945	)		$	12,077
General ALLL		$	17,507			$	(287	)		$	(605	)		$	5,509			$	(21,559	)		$	565
Loans held-in-portfolio, excluding impaired loans		$	(64,704	)		$	13,682			$	(6,737	)		$	(16,972	)		$	(8,636	)		$	(83,367	)
Total ALLL		$	5,141			$	(1,622	)		$	142			$	6,380			$	(12,178	)		$	(2,137	)
Total non-covered loans held-in-portfolio		$	(54,033	)		$	(46,432	)		$	(7,201	)		$	51,957			$	(15,581	)		$	(71,290	)
December 31, 2010
(Dollars in thousands)		Commercial				Construction				Lease Financing				Mortgage				Consumer				Total			[2]
Specific ALLL		$	8,550			$	216			$	-			$	5,004			$	-			$	13,770
Impaired loans	[1]	$	445,968			$	231,322			$	-			$	121,209			$	-			$	798,499
Specific ALLL to impaired loans	[1]		1.92		%		0.09		%		-		%		4.13		%		-		%		1.72		%
General ALLL		$	453,841			$	47,508			$	13,153			$	65,864			$	199,089			$	779,455
Loans held-in-portfolio, excluding impaired loans	[1]	$	10,947,517			$	269,529			$	602,993			$	4,403,513			$	3,705,984			$	19,929,536
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]		4.15		%		17.63		%		2.18		%		1.50		%		5.37		%		3.91		%
Total ALLL		$	462,391			$	47,724			$	13,153			$	70,868			$	199,089			$	793,225
Total non-covered loans held-in-portfolio	[1]	$	11,393,485			$	500,851			$	602,993			$	4,524,722			$	3,705,984			$	20,728,035
ALLL to loans held-in-portfolio	[1]		4.06		%		9.53		%		2.18		%		1.57		%		5.37		%		3.83		%
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of December 31, 2010, there was no allowance on these covered loans.

Popular, Inc.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table L - Allowance for Loan Losses - Breakdown of general and specific reserves - PUERTO RICO OPERATIONS
(Unaudited)
As of December 31, 2011
Puerto Rico
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$	7,486		$	-		$	14,944		$	793		$	16,915		$	40,138
	General ALLL non-covered loans		247,967			5,850			57,378			3,858			98,211			413,264
ALLL - non-covered loans			255,453			5,850			72,322			4,651			115,126			453,402
	Specific ALLL covered loans		27,086			-			-			-			-			27,086
	General ALLL covered loans		67,386			20,435			5,310			-			4,728			97,859
ALLL - covered loans			94,472			20,435			5,310			-			4,728			124,945
Total ALLL		$	349,925		$	26,285		$	77,632		$	4,651		$	119,854		$	578,347
Loans held-in-portfolio:
	Impaired non-covered loans	$	358,910		$	48,075		$	333,346		$	6,104		$	137,582		$	884,017
	Non-covered loans held-in-portfolio, excluding impaired loans		6,111,672			112,866			4,356,137			542,602			2,832,845			13,956,122
Non-covered loans held-in-portfolio			6,470,582			160,941			4,689,483			548,706			2,970,427			14,840,139
	Impaired covered loans		76,798			-			-			-			-			76,798
	Covered loans held-in-portfolio, excluding impaired loans		2,435,944			546,826			1,172,954			-			116,181			4,271,905
Covered loans held-in-portfolio			2,512,742			546,826			1,172,954			-			116,181			4,348,703
Total loans held-in-portfolio		$	8,983,324		$	707,767		$	5,862,437		$	548,706		$	3,086,608		$	19,188,842
As of September 30, 2011
Puerto Rico
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$	20,941		$	569		$	16,682		$	46		$	7,546		$	45,784
	General ALLL non-covered loans		224,807			4,438			48,747			3,858			115,954			397,804
ALLL - non-covered loans			245,748			5,007			65,429			3,904			123,500			443,588
	Specific ALLL covered loans		1,634			-			-			-			-			1,634
	General ALLL covered loans		61,840			9,926			2,296			-			4,725			78,787
ALLL - covered loans			63,474			9,926			2,296			-			4,725			80,421
Total ALLL		$	309,222		$	14,933		$	67,725		$	3,904		$	128,225		$	524,009
Loans held-in-portfolio:
	Impaired non-covered loans	$	378,180		$	61,750		$	282,402		$	6,568		$	142,438		$	871,338
	Non-covered loans held-in-portfolio, excluding impaired loans		6,035,309			102,164			4,350,938			546,557			2,822,057			13,857,025
Non-covered loans held-in-portfolio			6,413,489			163,914			4,633,340			553,125			2,964,495			14,728,363
	Impaired covered loans		2,675			-			-			-			-			2,675
	Covered loans held-in-portfolio, excluding impaired loans		2,571,401			599,990			1,217,434			-			120,923			4,509,748
Covered loans held-in-portfolio			2,574,076			599,990			1,217,434			-			120,923			4,512,423
Total loans held-in-portfolio		$	8,987,565		$	763,904		$	5,850,774		$	553,125		$	3,085,418		$	19,240,786
Variance December 31, 2011 versus September 30, 2011
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$	(13,455	)	$	(569	)	$	(1,738	)	$	747		$	9,369		$	(5,646	)
	General ALLL non-covered loans		23,160			1,412			8,631			-			(17,743	)		15,460
ALLL - non-covered loans			9,705			843			6,893			747			(8,374	)		9,814
	Specific ALLL covered loans		25,452			-			-			-			-			25,452
	General ALLL covered loans		5,546			10,509			3,014			-			3			19,072
ALLL - covered loans			30,998			10,509			3,014			-			3			44,524
Total ALLL		$	40,703		$	11,352		$	9,907		$	747		$	(8,371	)	$	54,338
Loans held-in-portfolio:
	Impaired non-covered loans	$	(19,270	)	$	(13,675	)	$	50,944		$	(464	)	$	(4,856	)	$	12,679
	Non-covered loans held-in-portfolio, excluding impaired loans		76,363			10,702			5,199			(3,955	)		10,788			99,097
Non-covered loans held-in-portfolio			57,093			(2,973	)		56,143			(4,419	)		5,932			111,776
	Impaired covered loans		74,123			-			-			-			-			74,123
	Covered loans held-in-portfolio, excluding impaired loans		(135,457	)		(53,164	)		(44,480	)		-			(4,742	)		(237,843	)
Covered loans held-in-portfolio			(61,334	)		(53,164	)		(44,480	)		-			(4,742	)		(163,720	)
Total loans held-in-portfolio		$	(4,241	)	$	(56,137	)	$	11,663		$	(4,419	)	$	1,190		$	(51,944	)
As of December 31, 2010
Puerto Rico
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
	Specific ALLL non-covered loans	$	8,550		$	216		$	5,004		$	-		$	-		$	13,770
	General ALLL non-covered loans		248,093			15,858			37,025			7,154			133,531			441,661
ALLL - non-covered loans			256,643			16,074			42,029			7,154			133,531			455,431
ALLL - covered loans			-			-			-			-			-			-
Total ALLL		$	256,643		$	16,074		$	42,029		$	7,154		$	133,531		$	455,431
Loans held-in-portfolio:
	Impaired non-covered loans	$	310,582		$	65,698		$	121,209		$	-		$	-		$	497,489
	Non-covered loans held-in-portfolio, excluding impaired loans		6,406,434			102,658			3,528,491			572,787			2,897,835			13,508,205
Non-covered loans held-in-portfolio			6,717,016			168,356			3,649,700			572,787			2,897,835			14,005,694
	Impaired covered loans		-			-			-			-			-			-
	Covered loans held-in-portfolio, excluding impaired loans		2,771,987			635,892			1,259,253			-			169,750			4,836,882
Covered loans held-in-portfolio			2,771,987			635,892			1,259,253			-			169,750			4,836,882
Total loans held-in-portfolio		$	9,489,003		$	804,248		$	4,908,953		$	572,787		$	3,067,585		$	18,842,576

Popular, Inc.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table M - Allowance for Loan Losses - Breakdown of general and specific reserves - U.S. MAINLAND OPERATIONS
(Unaudited)
As of December 31, 2011
U.S. Mainland
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
	Specific ALLL	$	1,388		$	-		$	14,119		$	-		$	131		$	15,638
	General ALLL		153,447			7,763			15,820			240			44,053			221,323
Total ALLL			154,835			7,763			29,939			240			44,184			236,961
Loans held-in-portfolio:
	Impaired loans		171,588			72,505			49,534			-			2,526			296,153
	Loans held-in-portfolio, excluding impaired loans		3,892,716			78,182			779,443			15,161			700,802			5,466,304
Total loans held-in-portfolio		$	4,064,304		$	150,687		$	828,977		$	15,161		$	703,328		$	5,762,457
As of September 30, 2011
U.S. Mainland
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
	Specific ALLL	$	299		$	766		$	11,510		$	-		$	119		$	12,694
	General ALLL		159,100			9,462			18,942			845			47,869			236,218
Total ALLL			159,399			10,228			30,452			845			47,988			248,912
Loans held-in-portfolio:
	Impaired loans		141,647			118,944			31,549			-			4,615			296,755
	Loans held-in-portfolio, excluding impaired loans		4,033,783			75,202			801,614			17,943			720,226			5,648,768
Total loans held-in-portfolio		$	4,175,430		$	194,146		$	833,163		$	17,943		$	724,841		$	5,945,523
Variance December 31, 2011 versus September 30, 2011
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
	Specific ALLL	$	1,089		$	(766	)	$	2,609		$	-		$	12		$	2,944
	General ALLL		(5,653	)		(1,699	)		(3,122	)		(605	)		(3,816	)		(14,895	)
Total ALLL			(4,564	)		(2,465	)		(513	)		(605	)		(3,804	)		(11,951	)
Loans held-in-portfolio:
	Impaired loans		29,941			(46,439	)		17,985			-			(2,089	)		(602	)
	Loans held-in-portfolio, excluding impaired loans		(141,067	)		2,980			(22,171	)		(2,782	)		(19,424	)		(182,464	)
Total loans held-in-portfolio		$	(111,126	)	$	(43,459	)	$	(4,186	)	$	(2,782	)	$	(21,513	)	$	(183,066	)
As of December 31, 2010
U.S. Mainland
(In thousands)		Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
	Specific ALLL	$	-		$	-		$	-		$	-		$	-		$	-
	General ALLL		205,748			31,650			28,839			5,999			65,558			337,794
Total ALLL			205,748			31,650			28,839			5,999			65,558			337,794
Loans held-in-portfolio:
	Impaired loans		135,386			165,624			-			-			-			301,010
	Loans held-in-portfolio, excluding impaired loans		4,541,083			166,871			875,022			30,206			808,149			6,421,331
Total loans held-in-portfolio		$	4,676,469		$	332,495		$	875,022		$	30,206		$	808,149		$	6,722,341

Popular, Inc.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table N - Reconciliation to GAAP Financial Measures
(Unaudited)
(In thousands, except share or per share information)		December 31, 2011			September 30, 2011			December 31, 2010
Total stockholders’ equity		$	3,918,753		$	4,012,601		$	3,800,531
Less: Preferred stock			(50,160)			(50,160)			(50,160)
Less: Goodwill			(648,350)			(648,353)			(647,387)
Less: Other intangibles			(63,954)			(64,212)			(58,696)
Total tangible common equity		$	3,156,289		$	3,249,876		$	3,044,288
Total assets		$	37,348,432		$	38,275,323		$	38,814,998
Less: Goodwill			(648,350)			(648,353)			(647,387)
Less: Other intangibles			(63,954)			(64,212)			(58,696)
Total tangible assets		$	36,636,128		$	37,562,758		$	38,108,915
Tangible common equity to tangible assets			8.62	%		8.65	%		7.99	%
Common shares outstanding at end of period			1,025,904,567			1,024,475,398			1,022,727,802
Tangible book value per common share		$	3.08		$	3.17		$	2.98
(In thousands)		December 31, 2011			September 30, 2011			December 31, 2010
Common stockholders’ equity		$	3,868,593		$	3,962,441		$	3,750,371
Less: Unrealized gains on available-for-sale securities, net of tax	[1]		(203,078)			(209,120)			(159,700)
Less: Disallowed deferred tax assets	[2]		(249,325)			(222,601)			(231,475)
Less: Intangible assets:
Goodwill			(648,350)			(648,353)			(647,387)
Other disallowed intangibles			(29,655)			(31,272)			(26,749)
Less: Aggregate adjusted carrying value of all non-financial equity investments			(1,189)			(1,525)			(1,538)
Add: Pension liability adjustment, net of tax and accumulated net gains (losses) on cash flow hedges	[3]		216,798			125,004			129,511
Total Tier 1 common equity		$	2,953,794		$	2,974,574		$	2,813,033
[1] In accordance with regulatory risk-based capital guidelines, Tier 1 capital excludes net unrealized gains (losses) on available-for-sale debt securities and net unrealized gains on available-for-sale equity securities with readily determinable fair values. In arriving at Tier 1 capital, institutions are required to deduct net unrealized losses on available-for-sale equity securities with readily determinable fair values, net of tax.
[2] Approximately $150 million of the Corporation’s $430 million of net deferred tax assets at December 31, 2011 (September 30, 2011 - $126 million and $342 million, respectively; December 31, 2010 - $144 million and $388 million, respectively), were included without limitation in regulatory capital pursuant to the risk-based capital guidelines, while approximately $249 million of such assets at December 31, 2011 (September 30, 2011 - $223 million; December 31, 2010 - $231 million) exceeded the limitation imposed by these guidelines and, as “disallowed deferred tax assets”, were deducted in arriving at Tier 1 capital. The remaining $31 million of the Corporation’s other net deferred tax assets at December 31, 2011 (September 30, 2011 - $7 million; December 31, 2010 - $13 million) represented primarily the following items (a) the deferred tax effects of unrealized gains and losses on available-for-sale debt securities, which are permitted to be excluded prior to deriving the amount of net deferred tax assets subject to limitation under the guidelines; (b) the deferred tax asset corresponding to the pension liability adjustment recorded as part of accumulated other comprehensive income; and (c) the deferred tax liability associated with goodwill and other intangibles.
[3] The Federal Reserve Bank has granted interim capital relief for the impact of pension liability adjustment.

Popular, Inc.
Financial Supplement to Fourth Quarter 2011 Earnings Release
Table O - Financial Information - Westernbank Covered Loans
(Unaudited)
	Quarter ended
(In thousands)	December 31, 2011			September 30, 2011			Variance
Interest income:
Interest income on covered loans, except for discount accretion on ASC 310-20 covered loans
	$	88,424		$	102,308		$	(13,884	)
Discount accretion on ASC 310-20 covered loans		-			3,501			(3,501	)
Total interest income		88,424			105,809			(17,385	)
FDIC loss share (expense) income:
(Amortization) accretion of indemnification asset		(24,217	)		(21,072	)		(3,145	)
80% mirror accounting on provision for loan losses for reductions in expected cash flows that are reimbursable by the FDIC [1]
		38,670			20,458			18,212
80% mirror accounting on discount accretion on loans and unfunded commitments accounted for under ASC 310-20
		(302	)		(2,916	)		2,614
Other		3,296			(1,831	)		5,127
Total FDIC loss share income (expense)		17,447			(5,361	)		22,808
Other non-interest income		1,092			-			1,092
Total revenues		106,963			100,448			6,515
Provision for loan losses		55,900			25,573			30,327
Total revenues less provision for loan losses	$	51,063		$	74,875		$	(23,812	)
[1] Reductions in expected cash flows for ASC 310-30 loans, which may impact the provision for loan losses, may consider reductions in both principal and interest cash flow expectations. The amount covered under the FDIC loss sharing agreements for interest not collected from borrowers is limited under the agreements (approximately 90 days); accordingly, these amounts are not subject fully to the 80% mirror accounting.
Quarterly average assets:	Quarter ended
(In millions)	December 31, 2011			September 30, 2011			Variance
Covered loans	$	4,401		$	4,557		$	(156	)
FDIC loss share asset		1,893			1,991			(98	)
Note issued to the FDIC		344			1,057			(713	)
Activity in the carrying amount and accretable yield of covered loans accounted for under ASC 310-30
	Quarter						Quarter
	December 31, 2011						September 30, 2011
(In thousands)	Accretable yield			Carrying amount of loans			Accretable yield			Carrying amount of loans
Beginning balance	$	1,496,565		$	4,076,913		$	1,616,919		$	4,216,808
Accretion		(82,866	)		82,866			(96,418	)		96,418
Changes in expected cash flows		56,560						(23,936	)
Collections					(123,308	)					(173,867	)
Ending balance		1,470,259			4,036,471			1,496,565			4,139,359
Allowance for loan losses - ASC 310-30 covered loans					(83,477	)					(62,446	)
Ending balance, net of allowance for loan losses	$	1,470,259		$	3,952,994		$	1,496,565		$	4,076,913