Popular Inc. in San Juan, Puerto Rico, on Wednesday reported a decline in quarterly earnings due to fewer one-time gains and an increase it credit costs.
Popular earnings fell 75% from the second quarter and 94% from a year earlier, to $27.5 million. The company's second-quarter results included a $59.6 million tax benefit tied to the timing of loan chargeoffs, while the third quarter of 2010 featured a $640.8 million gain from the sale of a stake in another business.
During the third quarter of 2011, the $38.2 billion-asset company reported a $4.7 million pretax gain after selling a number of mostly nonperforming construction and commercial real estate loans. Popular also booked an $8.1 million gain from the sale of investment securities, which mostly consisted of Federal Home Loan Bank notes.
The loan-loss provision rose 22% from the second quarter, to $176 million, due to a $55 million increase in the $38.2 billion-asset company's provision for noncovered loans.