Good morning and welcome to the Popular, Inc. First Quarter 2014 Conference Call. All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded. And now, I will turn the call over to the Investor Relations Officer at Popular, Inc., Brett Scheiner.

Good morning and thank you for joining us on today’s call. Today, I’m joined by our Chairman and CEO, Richard Carrión; our CFO, Carlos Vázquez and our CRO, Lidio Soriano who will review our first quarter results and then answer your questions. They will be joined in the Q&A session by other members of our management team. Before we start, I would like to remind you that on today’s call, we may make forward-looking statements that are based on management’s current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements are set forth within today’s earnings press release and are detailed in our SEC filings, our financial quarterly release and supplements. You may find today’s press release and our SEC filings on our webpage at popular.com. I will now turn the call over to Mr. Richard Carrión. Richard L. Carrión: Thank you. Good morning and thank you all for joining the call. I’d like to first address the highlights and key events of the first quarter, discuss the details of our U.S. reorganization plan announced this morning and provide some updates regarding the economic situation in Puerto Rico. Carlos will then go into greater detail on the quarter’s financial results and Lidio will provide an update of credit trends and metrics. So please turn to the second slide. In the first quarter, Popular earned net income of $86 million, well ahead of adjusted results for last quarter and last year’s first quarter. We continue to generate strong revenues with capital levels above peer averages. Our net income drove tangible book value per share to $38.71, up from $37.56 last quarter. Our margin of 4.70% declined slightly from last quarter’s 4.74% as continued improvements in funding costs; partially offset…

Thank you, Carlos, and good morning. Before we begin, looking at some of the specifics of the Corporation’s credit indicators for the first quarter of the year let me make a few general comments related to trends from our loans portfolios. In the U.S. we continue to benefit from our improving economy and the results of our de-risking strategies. In first quarter, the pace of improvement accelerated, as we were able to resolve a number of non-performing commercial relationships. U.S. NPLs and NPAs decreased by 32% and 28% respectively, mainly driven by loan resolution and loan sales. Two important milestones were reached during the quarter. The NPL ratio decreased below 2% to 1.8% and this all remaining non-performing construction relationship was resolved during the quarter. U.S. net charge-offs we a net recovery of $2.7 million in the current quarter, compared to a net loss of $111,000 during the fourth quarter. In Puerto Rico, the classification to non-performing of one borrowing relationship of $52 million affected the credit metrics for the quarter. Excluding this relationship credit metrics this quarter were stable. I will note that this new non-performing relationship is current and paying and despite it’s classification we expect continued performance. Puerto Rico non-performing loans increased by $85 million for the fourth quarter of 2013 largely driven by increases in commercial and mortgage NPLs. The increasing commercial NPLs is mainly driven by that previously mentioned single credit relationship. The Puerto Rico net charge-off ratio increase to 1.16% from 90 basis point in the previous quarter which benefited from the sales of previously written off consumer loan. Excluding these recoveries net charge-off remains stable during the first quarter of 2014. Turn to Slide number seven to go into the details. Non-performing assets increased by $24 million on a link-quarter basis, primarily driven…

(Operator Instructions) Our first question comes from Brian Klock at Keefe, Bruyette & Woods. Brian Klock – Keefe, Bruyette & Woods, Inc.: Good morning, gentlemen. Carlos J. Vázquez: Greetings, good morning. Brian Klock – Keefe, Bruyette & Woods, Inc.: So interesting, I think the last comments you made, Richard, were kind of pretty significant when you look at capital levels, the risk profile of the Company changing, concentrating the mainland operations into New York and to Central Florida. Capital ratios there are significantly higher than just about any mainland peer you can kind of come up with. So it feels like you guys are in a really good position to get out of TARP. I know you won't comment on the TARP, but maybe you can just remind us, with $680 million of cash at the holding company, what are the sort of debt service requirements again at the holding company? Carlos J. Vázquez: Well have… Richard L. Carrión: We had this – I’m Richard Carrión. Brian, we currently have about $680 million in cash, which is enough to cover roughly five years of debt service right now before a TARP repayment. Obviously in the context of a repayment of TARP, in all probability, our debt service requirements would come down significantly. Brian Klock – Keefe, Bruyette & Woods, Inc.: Right, right. So there is a lot of that cash that could be available to be used to repay TARP. Richard L. Carrión: Absolutely. Most of it, in fact. Brian Klock – Keefe, Bruyette & Woods, Inc.: And I guess maybe a second question related to that is once you get out of TARP, I guess, maybe talk about the thought process of having all that significant capital and I guess your plans to utilize it in the mainland and/or…

The next question comes from Ken Zerbe of Morgan Stanley. Kenneth Zerbe – Morgan Stanley & Co. LLC: Hey, thanks. I think I will actually ask more detail on the branch sales. My question, just I guess a two-part on this one. Just to be super clear, you mentioned that expenses are going to offset revenues. I just want to make sure that what you truly mean is that the net income impact is going to be zero going forward of selling these branches and then if that is the case, why? Carlos J. Vázquez: Well, yes, that is what we mean. In fact, it should be slightly positive, not meaningfully so. So we expect to generate the same amount of income with a much lower asset base. Why? Because we expect to reduce expenses by the same amount of that the income is going to be reduced. Kenneth Zerbe – Morgan Stanley: So you are keeping – I guess I am just trying to think of like – because if the U.S. is profitable today, obviously you are able to maintain the same level of profitability without the branches, without the infrastructure. Is that solely because you are just becoming more efficient in the U.S.? Richard L. Carrión: The nominal income number would look similar at the end of the day, Ken, but it is a much smaller operation with a much lower – we hope – an adjusted – a quarterly-adjusted level of capital. So the return on the capital will be much higher. Kenneth Zerbe – Morgan Stanley: Got it. Okay. All right. Second question I had, just it looks like you had some interest recoveries in the U.S. business that boosted NIM a fair bit. Could you quantify that benefit? Richard L. Carrión: This quarter, I…

The next question comes from Gerard Cassidy at RBC. Gerard S. Cassidy – RBC Capital Markets LLC: Thank you. Good morning guys. Richard L. Carrión: Good morning. Carlos J. Vázquez: Good morning. Gerard S. Cassidy – RBC Capital Markets LLC: In the remaining portion of the franchise that’s left in Florida and New York, I think you guys mentioned there will be about 49 branches. How does that breakout between New York, New Jersey versus South Florida? Richard L. Carrión: I think South Florida is nine or 10 million… Carlos J. Vázquez: (Indiscernible) Gerard S. Cassidy – RBC Capital Markets LLC: Is the nine or ten in South Florida enough of economies of scale or do you need to grow that or what is the view in southern Florida? Richard L. Carrión: Well, I think part of the idea is precisely to focus on smaller number of markets and we probably want to add more branches there. Gerard S. Cassidy – RBC Capital Markets LLC: And just one last question on the branch divestiture. I think you mentioned in the press release you are expecting to close it by the end of the year. There seems to be just a long drawn out period for these types of transactions. Are you real confident it can happen by year-end or it's hard to say? Richard L. Carrión: We are, but again all of these are three separate deals. It was non-frivolous, we used to say, to land them all on the same date. They need to go through regulatory approvals and there is significant outbound conversions and we hope we can get it done by the third quarter, but there are really factors beyond our control. Gerard S. Cassidy – RBC Capital Markets LLC: Sure, understandable. Shifting gears, coming back to…

(Operator Instructions) Our next question comes from Taylor Brodarick at Guggenheim Securities. Taylor Warren Brodarick – Guggenheim Securities LLC: Thank you. I think everybody else has hit most of them, but one question on I guess the FDIC loss share expense. As we get closer to the five-year anniversary of Westernbank, any additional detail or color on how you are thinking that line item might trend over the next four quarters, five quarters? Richard L. Carrión: That that line will continue to depend on our recast of the Westernbank portfolio that we do on a quarterly basis and the changes in the credit profile of all the pools within that portfolio. So it is very hard to give you more color on it. Carlos J. Vázquez: It’s pretty (indiscernible) Taylor Warren Brodarick – Guggenheim Securities LLC: Okay Richard L. Carrión: It seem to be take note of is that as we get closer to that end any changes in the estimated cash flows that would reduce the losses will – will be proportionally accelerated in the recognition of that impact. Taylor Warren Brodarick – Guggenheim Securities LLC: Exactly. Okay. And then also, Carlos, from the $305 million to $310 million kind of range you were talking about, did you roll OREO expense into that as well? Richard L. Carrión: Yeah. Taylor Warren Brodarick – Guggenheim Securities LLC: Okay, great. Okay, thanks very much. Richard L. Carrión: Thank you.

(Operator Instructions) There are no further questions at this time. Would you like to make any closing remarks? Richard L. Carrión: Well, I say thank you all for joining the call. We look forward to talking again. Thank you.

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.