Popular, Inc. (“the Corporation” or “Popular”) (NASDAQ:BPOP) reported net income of $47.2 million for the quarter ended September 30, 2012, compared with net income of $65.7 million for the quarter ended June 30, 2012.
Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said: “Third quarter results reflected continued strength and stability in our revenues, further declines in non-performing loans and charge-offs, and increases in our already strong capital ratios. Our number one priority is continuing to reduce non-performing assets, which will improve returns and increase our strategic and financial flexibility.”
Earnings Highlights – Third Quarter 2012
|(Dollars in thousands, except per share information)||30-Sep-12||30-Jun-12||30-Sep-11|
|Net interest income||$ 343,426||$ 341,200||$ 369,311|
|Provision for loan losses – non-covered loans||83,589||81,743||150,703|
|Provision for loan losses – covered loans ||22,619||37,456||25,573|
|Net interest income after provision for loan losses||237,218||222,001||193,035|
|FDIC loss share (expense) income||(6,707)||2,575||(5,361)|
|Other non-interest income||122,416||91,149||127,751|
|Income (loss) before income tax||62,572||(12,154)||33,070|
|Income tax expense (benefit)||15,384||(77,893)||5,537|
|Net income||$ 47,188||$ 65,739||$ 27,533|
|Net income applicable to common stock||$ 46,257||$ 64,809||$ 26,602|
|Net income per common share - basic and diluted ||$0.45||$0.63||$0.26|
| Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.  Per share data has been adjusted to retroactively reflect the 1-for-10 reverse stock split effected on May 29, 2012.|
|Financial Impact of FDIC-Assisted Transaction|
|Interest income on covered loans||$ 70,584||$ 79,094||$ 105,809|
|Total FDIC loss share (expense) income||(6,707)||2,575||(5,361)|
|Other non-interest income||310||310||-|
|Provision for loan losses||22,619||37,456||25,573|
|Total revenues less provision for loan losses||$ 41,568||$ 44,523||$ 74,875|
|Loans covered under loss-sharing agreement with FDIC||$ 3,903,867||$ 4,016,330||$ 4,512,423|
|FDIC loss share asset||1,559,057||1,631,594||1,895,059|
|FDIC true-up payment obligation||103,189||100,198||96,720|
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