BPOP Popular Inc

SAN JUAN, Puerto Rico, May 21 /PRNewswire-FirstCall/ -- Popular, Inc. (NASDAQ:BPOP), the leading financial institution in Puerto Rico, said today it reached an agreement to sell six branches in New Jersey and approximately $250 million in deposits to Investors Bancorp. The transaction is structured as an asset purchase for cash at a premium over the deposits and subject to regulatory approval and other customary closing conditions. Closing of the transaction is expected to occur within the third quarter of 2009. In addition to the sale, Popular also plans to close its in-store branch network in California which represents 22 of its 46 branches in the state. Excluding the branches mentioned above, Popular operates 41 branches in the New York and New Jersey region, 16 branches in Illinois, 24 branches in Southern California and 23 branches in Florida. Popular operates 177 branches in Puerto Rico, where it holds the No. 1 market share in total deposits, and eight branches in the U.S. and British Virgin Islands. "We continue to consolidate our U.S. footprint to create a more nimble organization and focus on core banking activities in strategic markets," said Popular, Inc. Chairman and CEO Richard L. Carrion. "The sale allows us to better allocate our resources at the New York region, where we have operated since 1961." As previously announced, Popular is reducing the size of its U.S. banking operations to achieve a leaner and more efficient U.S. business model and integrating both banking subsidiaries under one management to help counter the economic environment and prepare businesses for future growth. "Both banks are now integrated under one management. We have moved forward our plan to restructure our branch network. These actions reduce costs and create synergies that maximize productivity in what continues to be a difficult economic scenario," said Popular, Inc. President and Chief Operating Officer David H. Chafey, Jr. "We are confident that with this restructured branch network we can continue to serve and fulfill the banking needs of the clients in our main banking regions of New York/New Jersey, Southern and Central Florida, Illinois and southern California." In conjunction with its business strategy, Popular has adapted an aggressive cost-efficiency program across the Corporation, as it helps spur economic recovery in its communities through sound lending. Popular has generated $34 million in annual savings through cost-efficiency measures and approved more than $1.8 billion in new, renewed and restructured credit during the first three months of 2009. Popular, Inc. is a full service financial services provider based in Puerto Rico with operations in Puerto Rico, the United States, the Caribbean and Latin America. As the leading financial institution in Puerto Rico, with 177 branches and offices, the Corporation offers retail and commercial banking services through its principal banking subsidiary, Banco Popular de Puerto Rico, as well as auto and equipment leasing and financing, mortgage loans, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the United States, the Corporation operates Banco Popular North America (BPNA), including its wholly-owned subsidiary E-LOAN. BPNA is a community bank providing a broad range of financial services and products to the communities it serves. BPNA operates branches in New York, California, Illinois, New Jersey and Florida. E-LOAN markets deposit accounts under its name for the benefit of BPNA and offers loan customers the option of being referred to a trusted consumer lending partner. The Corporation, through its transaction processing company, EVERTEC, continues to use its expertise in technology as a competitive advantage in its expansion throughout the Caribbean and Latin America, as well as internally servicing many of its subsidiaries' system infrastructures and transactional processing businesses. The Corporation is exporting its 115 years of experience through these regions while continuing its commitment to meet the needs of retail and business clients through innovation and to foster growth in the communities it serves. DATASOURCE: Popular, Inc. CONTACT: Investor Relations: Jorge A. Junquera, Chief Financial Officer, Senior Executive Vice President, +1-787-754-1685; or Media Relations: Teruca Rullan, Senior Vice President, Corporate Communications, +1-787-281-5170, +1-917-679-3596 (mobile), both of Popular, Inc.

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