Popular Announces Termination of Negotiations to Sell Portfolio of Non-performing Construction and Commercial Real Estate Loans

Popular, Inc. BPOP announced today that Banco Popular de Puerto Rico, its principal banking subsidiary, and a financial group led by an unrelated real estate investment and asset management firm had terminated negotiations regarding the sale by BPPR of a portfolio of non-performing construction and commercial real estate loans to a new joint venture entity to be sponsored by the financial group. The negotiations were terminated as a result of the parties being unable to agree on the final terms and conditions of the definitive documentation. On January 31, 2011, the Corporation had announced the execution of a non-binding letter of intent regarding this transaction.