NEW YORK (Associated Press) - Shares of Popular Inc. fell sharply Monday after the parent of Banco Popular reported a 13 percent drop in first-quarter earnings on higher reserves for bad loans.

Popular shares dropped $1.12, or 9.1 percent, to close at $11.15. In the past year, the stock has ranged from $8.41 to $17.51.

Keefe, Bruyette & Woods analyst Brian Slack called the results "another very messy quarter," and cut his earnings estimates for 2008.

Popular recorded an increase in charge-offs _ loans written off as not being repaid _ primarily across its commercial and consumer lending portfolios. The bank expects to see continued strain on its credit quality, especially among its commercial and construction and U.S. consumer lending portfolios due to weakening in the economy.

Audrey Snell of Kaufman Bros. said the bank's home market of Puerto Rico remains weak and that loan growth will be "sluggish."

She said the company's stock remains a good value though, because it is likely that Puerto Rico's economy will pick up and the bank is in good position to take advantage.