Banco Popular de Puerto Rico and the Federal Deposit Insurance Corp. terminated all shared-loss agreements connected with the acquisition of certain assets and assumption of certain liabilities of failed Westernbank Puerto Rico through an FDIC-assisted transaction in 2010.
The Popular Inc. unit paid the FDIC about $23.7 million for the early termination of the agreements.
The termination agreement will result in a pretax gain of approximately $95.0 million for Popular. Together with a 2012 tax closing agreement, which was entered into by the Puerto Rico Department of the Treasury and Popular that clarifies the tax treatment related to the loans acquired in the 2010 FDIC transaction, the termination agreement will contribute $161.2 million to Popular's net income.
