false 0000763901 0000763901 2023-07-26 2023-07-26 0000763901 us-gaap:CommonStockMember 2023-07-26 2023-07-26 0000763901 us-gaap:CumulativePreferredStockMember 2023-07-26 2023-07-26
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 26, 2023
POPULAR, INC.
(Exact name of registrant as specified in its charter)
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Puerto Rico |
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001-34084 |
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66-0667416 |
(State or other jurisdiction of incorporation or organization) |
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(Commission File Number) |
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(IRS Employer Identification Number) |
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209 Muñoz Rivera Avenue Hato Rey, Puerto Rico |
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00918 |
(Address of principal executive offices) |
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(Zip code) |
(787) 765-9800
(Registrant’s telephone number, including area code)
NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
Common Stock ($0.01 par value) |
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BPOP |
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The NASDAQ Stock Market |
6.125% Cumulative Monthly Income Trust Preferred Securities |
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BPOPM |
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The NASDAQ Stock Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On July 26, 2023, Popular, Inc. (the “Corporation”) issued a press release announcing its unaudited financial results for the quarter ended June 30, 2023, a copy of which is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference into any of the Corporation’s filings under the Securities Act of 1933, as amended, unless otherwise expressly stated in such filing.
Item 7.01. Regulation FD Disclosure.
The Corporation is furnishing information regarding its conference call to discuss its financial results for the quarter ended June 30, 2023. A copy of the presentation to be used by the Corporation on the conference call is attached hereto as Exhibit 99.2.
The information furnished pursuant to this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2, shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference into any of the Corporation’s filings under the Securities Act of 1933, as amended, unless otherwise expressly stated in such filing.
Item 9.01. Financial Statements and Exhibits.
Exhibits 99.1 and 99.2 shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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POPULAR, INC. (Registrant) |
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Date: July 26, 2023 |
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By: |
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/s/ Jorge J. García |
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Jorge J. García |
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Senior Vice President and Corporate Comptroller |
Exhibit 99.1
Popular, Inc. Announces Second Quarter 2023 Financial Results
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Net income of $151.2 million in Q2 2023, compared to net income of $159.0 million in Q1 2023.
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Net interest margin of 3.14% in Q2 2023, compared to 3.22% in Q1 2023; net interest margin on a taxable
equivalent basis of 3.29% in Q2 2023, compared to 3.46% in Q1 2023. |
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Non-performing loans held-in-portfolio (NPLs) decreased by $26.9 million from Q1 2023; NPLs to loans ratio at 1.2% vs. 1.3% in Q1 2023; |
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Net charge-offs (NCOs) decreased by $8.8 million from Q1 2023; annualized NCOs at 0.29% of
average loans held-in-portfolio vs. 0.41% in Q1 2023; |
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Allowance for credit losses (ACL) to loans held-in-portfolio at 2.12% vs. 2.13% in Q1 2023; and |
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ACL to NPLs at 181.6% vs. 167.1% in Q1 2023. |
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Loans increased by $692.5 million and by $630.4 million in average quarterly balances, from Q1 2023.
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Ending deposit balances increased by $3.1 billion and average quarterly balances increased by
$1.0 billion, from Q1 2023. |
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Total borrowings at Q2 2023 were $1.4 billion, flat compared to Q1 2023. |
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Common Equity Tier 1 ratio of 16.87%, Common Equity per Share of $63.00 and Tangible Book Value per Share of
$51.37 at June 30, 2023. |
SAN JUAN, Puerto Rico (BUSINESS WIRE) Popular, Inc. (the Corporation,
Popular, we, us, our) (NASDAQ:BPOP) reported net income of $151.2 million for the quarter ended June 30, 2023, compared to net income of $159.0 million for the quarter ended
March 31, 2023.
Ignacio Alvarez, President and Chief Executive Officer, said: Popular achieved another strong quarter, with net income of
$151 million. We are particularly pleased by the growth in our loan portfolios, both in Puerto Rico and the United States, which allowed us to maintain our net interest income stable despite higher deposit costs. Our deposit base remained
strong and well-diversified. Our results were further bolstered by positive credit quality trends and healthy non-interest income. We continued investing in areas such as people, regulatory compliance and
technology, confident that they will contribute to our long-term success. We are encouraged by the resiliency of the U.S. economy and sustained economic activity in Puerto Rico. Our strong levels of capital and liquidity position us well to support
such activity and serve the evolving needs of our growing customer base.
1
Significant Events
Redemption of Senior Notes
On
March 13, 2023, the Corporation issued $400 million aggregate principal amount of 7.25% Senior Notes due 2028 (the 2028 Notes) in an underwritten public offering. On July 14, 2023, the Corporation announced that it will
use a portion of the net proceeds of the 2028 Notes offering to redeem, on August 14, 2023, the outstanding $300 million aggregate principal amount of its 6.125% Senior Notes due September 2023. The redemption price will be equal to 100%
of the principal amount plus accrued and unpaid interest through the redemption date.
Refer to Table I for further details of liquidity sources.
Earnings Highlights
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(Unaudited) |
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Quarters ended |
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Six months ended |
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(Dollars in thousands, except per share information) |
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30-Jun-23 |
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31-Mar-23 |
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30-Jun-22 |
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30-Jun-23 |
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30-Jun-22 |
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Net interest income |
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$ |
531,668 |
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$ |
531,656 |
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$ |
533,862 |
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$ |
1,063,324 |
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$ |
1,028,174 |
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Provision for credit losses (benefit) |
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37,192 |
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47,637 |
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9,362 |
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84,829 |
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(6,138 |
) |
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Net interest income after provision for credit losses |
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494,476 |
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484,019 |
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524,500 |
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978,495 |
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1,034,312 |
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Other non-interest income |
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160,471 |
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161,961 |
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157,411 |
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322,432 |
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312,103 |
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Operating expenses |
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460,284 |
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440,687 |
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406,278 |
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900,971 |
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808,617 |
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Income before income tax |
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194,663 |
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205,293 |
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275,633 |
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399,956 |
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537,798 |
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Income tax expense |
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43,503 |
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46,314 |
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64,212 |
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89,817 |
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114,691 |
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Net income |
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$ |
151,160 |
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$ |
158,979 |
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$ |
211,421 |
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$ |
310,139 |
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$ |
423,107 |
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Net income applicable to common stock |
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$ |
150,807 |
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$ |
158,626 |
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$ |
211,068 |
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$ |
309,433 |
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$ |
422,401 |
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Net income per common share-basic |
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$ |
2.10 |
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$ |
2.22 |
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$ |
2.77 |
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$ |
4.32 |
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$ |
5.46 |
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Net income per common share-diluted |
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$ |
2.10 |
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$ |
2.22 |
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$ |
2.77 |
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$ |
4.32 |
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$ |
5.46 |
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Net interest income on a taxable equivalent basis Non-GAAP financial
measure
Net interest income, on a taxable equivalent basis, is presented with its different components in Tables D and E for the quarter ended
June 30, 2023 and Table F for the six-month periods ended June 30, 2023 and 2022. Net interest income on a taxable equivalent basis is a non-GAAP financial
measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.
Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.
Net interest income for the quarter ended June 30, 2023 was
$531.7 million, flat over the previous quarter. Net interest income on a taxable equivalent basis for the second quarter of 2023 was $558.4 million compared to $570.4 million in the previous quarter, a decrease of $12.0 million.
The decrease in the taxable equivalent net interest income is related to a lower volume of exempt investments and higher disallowed interest expense in the Puerto Rico tax computation. The latter results from the increase in the Corporations
cost of deposits that is attributable to the tax-exempt income. Refer to the income taxes discussion for further information.
Net interest margin for the quarter was 3.14%, compared to 3.22% in the first quarter of 2023, a decrease of eight basis points. On a taxable equivalent
basis, net interest margin for the second quarter of 2023 was 3.29%, compared to 3.46% for the prior quarter. The main variances in net interest income on a taxable equivalent basis were:
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higher interest expense on deposits by $50.3 million due to the increase in rates, mainly from the increase
in volume and cost of Puerto Rico government deposits, and a higher cost in most deposit categories in both Banco Popular de Puerto Rico (BPPR) and Popular Bank (PB or Popular U.S. Operations);
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2
partially offset by:
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higher interest income from loans by $30.4 million resulting from an increase in average loans by
$635 million, reflecting increases in both BPPR and PB and across all major lending segments. Loan origination in a higher interest rate environment and the repricing of adjustable-rate loans resulted in a higher yield on loans by 18 basis
points. The categories with the highest impact were commercial loans, which increased by $18.5 million in interest income, or 20 basis points, and consumer loans which increased by $5.6 million, or 36 basis points; and
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higher interest income from investment securities, trading and money market investments by $12.6 million
driven mainly by a higher volume of money market investments, which reflects a 50 basis points increase in yield related to the increase in the Federal funds rate, partially offset by a lower volume of investment securities. |
Net interest income for the BPPR segment amounted to $453.1 million for the second quarter of 2023, $3.3 million higher than the first quarter of
2023. Net interest margin decreased three basis points to 3.21% compared to 3.24% in the first quarter of 2023. The decrease in net interest margin was due to a higher volume of deposits and to a shift in the mix of BPPR deposits towards higher
yielding Puerto Rico government deposits. The increase in net interest income at the BPPR segment can be attributed to a higher volume of loans and overnight Fed funds reserves. Earning assets yield at the BPPR segment improved to 4.57%, an increase
of 22 basis points from the prior quarter. The average volume of earning assets at the BPPR segment increased $521 million while the average volume of total deposits increased by $539 million, mainly P.R. public sector deposits. Public
sector deposits were $1.2 billion higher on average than during Q1 2023 and were partially offset by decreases in commercial interest-bearing deposits. The cost of interest-bearing deposits at BPPR increased 34 basis points to 1.95% from 1.61%
the previous quarter. The increase in the cost of deposits at BPPR was mainly impacted by the repricing of public funds. Total deposit costs in the second quarter of 2023 were 1.44%, compared to 1.18% in the quarter ended March 31, 2023, an
increase of 26 basis points. Excluding the increase in public deposit costs, total commercial and retail deposits at BPPR increased by 14 basis points during the quarter.
Net interest income for PB was $87.5 million for the quarter ended June 30, 2023, compared to $90.1 million during the previous quarter, a
decrease of $2.6 million. Net interest margin decreased by 33 basis points in the quarter to 3.01%, compared to 3.34% in the first quarter of 2023. The decrease in net interest margin was mostly driven by a higher cost of deposits, partially
offset by a higher volume of loans and the repricing of adjustable-rate loans. The cost of interest-bearing deposits was 3.02%, compared to 2.47% during the first quarter of 2023, or an increase of 55 basis points, while total deposit cost was 2.55%
compared to 2.01% in the previous quarter.
Non-interest income
Non-interest income amounted to $160.5 million for the quarter ended June 30, 2023, a decrease of
$1.5 million when compared to $162.0 million for the quarter ended March 31, 2023. The main factors that contributed to the variance in non-interest income were:
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lower income from mortgage banking activities by $5.1 million, mainly related to an unfavorable variance of
$4.8 million related to the fair value adjustments of mortgage servicing rights (MSRs), including the impact of portfolio runoff; and |
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lower other operating income by $2.6 million mainly due to $7.0 million recognized in income during the
first quarter of 2023 from successful insurance claim reimbursements related to prior period legal matters, partially offset by higher earnings from the portfolio of equity method investments; |
partially offset by:
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higher service charges on deposit accounts by $3.1 million, mainly due to $2.9 million in non-balance compensation fees related to cash management services on commercial customer accounts; and |
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higher other service fees by $4.2 million, mainly due to higher credit card and debit card fees due to
higher volume of transactions and higher merchant acquiring fees from the revenue sharing agreement with Evertec Inc. |
3
Refer to Table B for further details.
Operating expenses
Operating expenses for the
second quarter of 2023 totaled $460.3 million, an increase of $19.6 million when compared to the first quarter of 2023. The variance in operating expenses was driven primarily by:
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higher professional fees by $16.7 million mainly due to higher advisory services by $12.9 million
related to corporate initiatives focused on regulatory, compliance and cyber security efforts, the impact of the grant in May 2023 of $1.9 million in directors share based payment, and an increase in audit fees by $1.1 million;
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higher technology and software expenses by $3.8 million mainly due to an increase in information technology
professional and consulting fees by $2.1 million and higher software amortization expense by $1.1 million; |
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higher processing and transactional services expenses by $3.9 million mainly due to broad based retail
customers debit card replacement costs incurred during the second quarter of 2023 of $3.4 million; and |
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higher business promotion expenses by $6.2 million mainly due to higher customer reward program expenses in
our credit card business by $4.3 million and higher advertising and sponsorship expense by $1.8 million; |
partially offset by:
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lower personnel costs by $7.3 million, mainly due to a decrease in performance shares and restricted stock
expenses by $4.8 million, and lower other compensation expenses by $5.0 million due to the impact of the minimum salary increase on vacations accruals and incentive payments adjustments, both recorded in the first quarter, and payroll
taxes that are traditionally higher in the first quarter of the year; partially offset by an increase in health insurance costs by $2.3 million; and |
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lower FDIC deposit insurance expense by $2.1 million due to a decrease in the assessment rate driven by the
adoption of the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-02 during the first quarter of 2023, which eliminated
the accounting guidance for trouble debt restructures (TDRs). |
Full-time equivalent employees were 9,124 as of
June 30, 2023, compared to 8,975 as of March 31, 2023.
For a breakdown of operating expenses by category refer to Table B.
Income taxes
For the quarter ended June 30,
2023, the Corporation recorded an income tax expense of $43.5 million compared to an income tax expense of $46.3 million for the previous quarter. The favorable variance in income tax expense was mainly attributable to lower income before
tax. The effective tax rate (ETR) for the second quarter of 2023 was 22.4% while the ETR for the first quarter was 22.6%.
The ETR of the
Corporation is impacted by the composition and source of its taxable income. The Corporation expects the ETR for the year 2023 to be within a range from 22% to 25%.
4
Credit Quality
During the second quarter of 2023, the Corporation continued to reflect strong credit quality metrics with low levels of net charge offs (NCOs) and
decreasing non-performing loans (NPLs). We continue to closely monitor changes in the macroeconomic environment and on borrower performance, given inflationary pressures and geopolitical risks.
However, management believes that the improvement over recent years in the risk profile of the Corporations loan portfolios positions Popular to continue to operate successfully under the current environment.
The following presents credit quality results for the second quarter of 2023:
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At June 30, 2023, total non-performing loans held-in-portfolio decreased by $26.9 million from March 31, 2023. BPPRs NPLs decreased by $26.6 million, mostly driven by lower mortgage NPLs by
$29.9 million, in part offset by higher construction NPLs due to a single $9.3 million relationship. PBs NPLs remained flat quarter-over-quarter. At June 30, 2023, the ratio of NPLs to total loans
held-in-portfolio was 1.2%, compared to 1.3% in the first quarter of 2023. |
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Inflows of NPLs
held-in-portfolio, excluding consumer loans, decreased by $10.0 million quarter-over-quarter. In BPPR, total inflows decreased by $10.6 million, mainly driven
by lower commercial and mortgage NPLs by $13.4 million and $6.5 million, respectively, in part offset by the abovementioned construction relationship inflow. PB inflows remained flat quarter-over-quarter. |
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NCOs amounted to $24.0 million, decreasing by $8.8 million when compared to the first quarter of 2023.
BPPRs NCOs decreased by $12.8 million quarter-over-quarter, mainly driven by lower consumer NCOs by $14.5 million, due to a $10.5 million line of credit charge-off in the prior quarter,
coupled with lower auto loan NCOs by $4.7 million during the quarter. PBs NCOs increased by $4.0 million due to a fully reserved commercial loan charged-off during the quarter. During the
second quarter of 2023, the Corporations ratio of annualized NCOs to average loans held-in-portfolio was 0.29%, compared to 0.41% in the first quarter of 2023.
Refer to Table O for further information on NCOs and related ratios. |
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At June 30, 2023, the allowance for credit losses (ACL) increased by $11.1 million from the
first quarter of 2023 to $700.2 million. In BPPR and PB, the ACL increased by $9.1 million and $2.0 million, respectively. These increases were mostly driven by specific reserves for collateral dependent U.S. commercial and P.R.
construction loans, changes in macroeconomic scenarios, higher loan volumes and migration of P.R. consumer credit scores, partially offset by changes in the assignments of probability weights to macroeconomic scenarios, as discussed below, and
reductions in qualitative reserves. |
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The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States. Given that any one
economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. During the second quarter 2023, due to positive trends the Corporation lowered the probability weights assigned to the pessimistic scenario
and increased the probability weight assigned to the baseline scenario, prompting a reserve release of $5.8 million. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario, and then the
optimistic scenario. |
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The 2023 annualized GDP growth in the baseline scenario stands at 1.5% and 1.6% for Puerto Rico and the United
States, respectively, compared to 2.1% and 1.3% in the previous quarter. The 2023 forecasted average unemployment rate for Puerto Rico improved to 6.3% from 6.9% in the previous forecast, while in the United States unemployment levels remained
stable at 3.6%, compared to 3.5% in the previous forecast. |
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The Corporations ratio of the ACL to loans
held-in-portfolio was 2.12% in the second quarter of 2023, compared to 2.13% in the previous quarter. The ratio of the ACL to NPLs held-in-portfolio stood at 181.6%, compared to 167.1% in the previous quarter. |
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The provision for credit losses for the loan portfolios for the second quarter of 2023 was an expense of
$35.7 million, compared to an expense of $47.1 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was an expense of $28.4 million,
compared to an expense of $45.2 million in the previous quarter, while the provision for PB was an expense of $7.3 million, compared to an expense of $1.9 million in the previous quarter. |
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The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and
provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations. |
5
Non-Performing Assets
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(Unaudited) |
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(In thousands) |
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30-Jun-23 |
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31-Mar-23 |
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30-Jun-22 |
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Non-performing loans held-in-portfolio |
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$ |
385,504 |
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$ |
412,383 |
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$ |
477,924 |
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Other real estate owned (OREO) |
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86,216 |
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91,721 |
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92,137 |
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Total non-performing assets |
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$ |
471,720 |
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$ |
504,104 |
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$ |
570,061 |
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Net charge-offs (recoveries) for the quarter |
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$ |
23,990 |
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$ |
32,813 |
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$ |
6,073 |
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Ratios: |
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Loans
held-in-portfolio |
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$ |
33,030,922 |
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$ |
32,338,373 |
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$ |
30,370,936 |
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Non-performing loans held-in-portfolio to loans held-in-portfolio |
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1.17 |
% |
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1.28 |
% |
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1.57 |
% |
Allowance for credit losses to loans held-in-portfolio |
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2.12 |
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2.13 |
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2.24 |
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Allowance for credit losses to non-performing loans,
excluding loans held-for-sale |
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181.63 |
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167.11 |
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142.65 |
|
Refer to Table M for additional information.
Provision for Credit Losses (Benefit) - Loan Portfolios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
Quarters ended |
|
|
Six months ended |
|
(In thousands) |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
30-Jun-22 |
|
|
30-Jun-23 |
|
|
30-Jun-22 |
|
Provision for credit losses (benefit) - loan portfolios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BPPR |
|
$ |
28,379 |
|
|
$ |
45,203 |
|
|
$ |
9,128 |
|
|
$ |
73,582 |
|
|
$ |
(3,533 |
) |
Popular U.S. |
|
|
7,282 |
|
|
|
1,943 |
|
|
|
733 |
|
|
|
9,225 |
|
|
|
(1,011 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total provision for credit losses (benefit) - loan portfolios |
|
$ |
35,661 |
|
|
$ |
47,146 |
|
|
$ |
9,861 |
|
|
$ |
82,807 |
|
|
$ |
(4,544 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
Credit Quality by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
(In thousands) |
|
Quarters ended |
|
BPPR |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
30-Jun-22 |
|
Provision for credit losses - loan portfolios |
|
$ |
28,379 |
|
|
$ |
45,203 |
|
|
$ |
9,128 |
|
Net charge-offs |
|
|
18,687 |
|
|
|
31,464 |
|
|
|
5,332 |
|
Total non-performing loans
held-in-portfolio |
|
|
352,339 |
|
|
|
378,979 |
|
|
|
444,831 |
|
Allowance / loans
held-in-portfolio |
|
|
2.58 |
% |
|
|
2.57 |
% |
|
|
2.70 |
% |
Allowance / non-performing loans held-in-portfolio |
|
|
169.19 |
% |
|
|
154.89 |
% |
|
|
130.52 |
% |
|
|
|
|
Quarters ended |
|
Popular U.S. |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
30-Jun-22 |
|
Provision for credit losses - loan portfolios |
|
$ |
7,282 |
|
|
$ |
1,943 |
|
|
$ |
733 |
|
Net charge-offs |
|
|
5,303 |
|
|
|
1,349 |
|
|
|
741 |
|
Total non-performing loans
held-in-portfolio |
|
|
33,165 |
|
|
|
33,404 |
|
|
|
33,093 |
|
Allowance / loans
held-in-portfolio |
|
|
1.05 |
% |
|
|
1.07 |
% |
|
|
1.14 |
% |
Allowance / non-performing loans held-in-portfolio |
|
|
313.86 |
% |
|
|
305.69 |
% |
|
|
305.72 |
% |
Financial Condition Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
(In thousands) |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
30-Jun-22 |
|
Cash and money market investments |
|
$ |
9,070,118 |
|
|
$ |
6,560,301 |
|
|
$ |
10,215,946 |
|
Investment securities |
|
|
25,874,316 |
|
|
|
25,951,936 |
|
|
|
28,138,453 |
|
Loans |
|
|
33,030,922 |
|
|
|
32,338,373 |
|
|
|
30,370,936 |
|
Total assets |
|
|
70,838,266 |
|
|
|
67,675,759 |
|
|
|
71,501,931 |
|
Deposits |
|
|
64,004,818 |
|
|
|
60,953,888 |
|
|
|
65,327,664 |
|
Borrowings |
|
|
1,427,254 |
|
|
|
1,402,626 |
|
|
|
959,135 |
|
Total liabilities |
|
|
66,273,257 |
|
|
|
63,205,034 |
|
|
|
67,208,582 |
|
Stockholders equity |
|
|
4,565,009 |
|
|
|
4,470,725 |
|
|
|
4,293,349 |
|
7
Total assets amounted to $70.8 billion at June 30, 2023, an increase of $3.2 billion from the
first quarter of 2023, driven by:
|
|
|
an increase in overnight FED fund balances of $2.5 billion, mainly due to higher deposits as discussed
below; |
|
|
|
an increase in securities
available-for-sale (AFS) of $69.1 million, mainly due to a net increase of $333.2 million in U.S. Treasury Securities balances, offset by repayment
and maturities of mortgage-backed securities and collateralized mortgage obligations and higher unrealized losses in the portfolio; and |
|
|
|
an increase in loans
held-in-portfolio of $692.5 million reflected across all portfolios in BPPR, net of a transfer to held for sale of a $45.9 million private label credit card
portfolio, and an increase in commercial and construction loans at PB, offset in part by a decrease in its mortgage and consumer loans portfolio; |
partially offset by:
|
|
|
a decrease in securities
held-to-maturity (HTM) of $151.8 million driven by a decrease of $200.0 million in U.S. Treasury securities as a result of maturities, partially
offset by the amortization of $42.9 million of the discount related to U.S. Treasury securities previously reclassified from the available-for-sale to HTM, which
has an offsetting unrealized loss included within other comprehensive income that is also being accreted, resulting in a neutral effect to earnings. |
Total liabilities increased by $3.1 billion from the first quarter of 2023, driven by:
|
|
|
an increase of $3.1 billion in deposits, mainly in Puerto Rico public sector accounts and time deposits and
savings accounts at PB, partially offset by a decrease in non-interest bearing deposits. |
Stockholders equity increased by $94.3 million from the first quarter of 2023, principally due to net income for the quarter of $151.2 million
and the amortization of the unrealized losses from the securities reclassified to HTM of $34.3 million, partially offset by the after-tax impact of the increase in net unrealized losses in the portfolio
of AFS securities of $69.9 million and dividends to common stockholders during the quarter.
Common Equity Tier - 1 ratio (CET1), common
equity per share and tangible book value per share were 16.87%, $63.00 and $51.37, respectively, at June 30, 2023, compared to 16.73%, $61.82 and $50.15 at March 31, 2023. Refer to Table A for capital ratios.
During the second quarter of 2023, the Corporations available liquidity increased to $20.1 billion from $18.3 billion on March 31, 2023.
Refer to Table I for additional information on the Corporations liquidity sources.
8
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including
without limitation those regarding Populars business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on managements current
expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporations control, could cause actual results to differ materially from those expressed in, or
implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends,
market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings, new accounting standards on the Corporations financial condition and results of
operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect
impact of the pandemic on Popular, our customers, service providers and third parties. Other potential factors include Populars ability to successfully execute its transformation initiative, including, but not limited to, achieving projected
earnings, efficiencies and return on tangible common equity and accurately anticipating costs and expenses associated therewith, imposition of FDIC special assessments, changes to regulatory capital, liquidity and resolution-related requirements
applicable to financial institutions in response to recent developments affecting the banking sector and the impact of bank failures or adverse developments at other banks and related negative media coverage of the banking industry in general on
investor and depositor sentiment regarding the stability and liquidity of banks. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words anticipate, believe,
continues, expect, estimate, intend, project and similar expressions, and future or conditional verbs such as will, would, should, could,
might, can, may or similar expressions, are generally intended to identify forward-looking statements.
More
information on the risks and important factors that could affect the Corporations future results and financial condition is included in our Form 10-K for the year ended December 31, 2022, in our
Form 10-Q for the quarter ended March 31, 2023 and in our Form 10-Q for the quarter ended June 30, 2023 to be filed with the Securities and Exchange
Commission. Our filings are available on the Corporations website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any
forward-looking statements or information which speak as of their respective dates.
About Popular, Inc.
Popular, Inc. (NASDAQ: BPOP) is the leading financial institution in Puerto Rico, by both assets and deposits, and ranks among the top 50 U.S. bank holding
companies by assets. Founded in 1893, Banco Popular de Puerto Rico, Populars principal subsidiary, provides retail, mortgage and commercial banking services in Puerto Rico and the U.S. Virgin Islands. Popular also offers in Puerto Rico
auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the mainland United States, Popular provides retail, mortgage and commercial banking services through its New
York-chartered banking subsidiary, Popular Bank, which has branches located in New York, New Jersey and Florida.
Conference Call
Popular will hold a conference call to discuss its financial results today, Wednesday, July 26, 2023 at 11:00 a.m. Eastern Time. The call will be
broadcast live over the Internet and can be accessed through the Investor Relations section of the Corporations website: www.popular.com.
Listeners
are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-833-470-1428 (Toll Free) or
1-404-975-4839 (Local). The dial-in access code is 974981.
A replay of the webcast will be archived in Populars website. A telephone replay will be available one hour after the end of the conference call through
Friday, August 25, 2023. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 254603.
An electronic version of
this press release can be found at the Corporations website: www.popular.com.
9
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table A - Selected Ratios and Other Information
Table B -
Consolidated Statement of Operations
Table C - Consolidated Statement of Financial Condition
Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER
Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER
Table F - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE
Table G - Mortgage Banking Activities and Other Service Fees
Table
H - Loans and Deposits
Table I - Liquidity Sources, Deposits and Borrowings
Table J - Loan Delinquency - BPPR Operations
Table K - Loan
Delinquency - Popular U.S. Operations
Table L - Loan Delinquency - Consolidated
Table M - Non-Performing Assets
Table N - Activity in
Non-Performing Loans
Table O - Allowance for Credit Losses, Net Charge-offs and Related Ratios
Table P - Allowance for Credit Losses ACL - Loan Portfolios - Consolidated
Table Q - Allowance for Credit Losses ACL - Loan Portfolios - BPPR Operations
Table R - Allowance for Credit Losses ACL - Loan Portfolios - Popular U.S. Operations
Table S - Reconciliation to GAAP Financial Measures
10
POPULAR, INC.
Financial Supplement to Second Quarter 2023 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters ended |
|
|
Six months ended |
|
|
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
30-Jun-22 |
|
|
30-Jun-23 |
|
|
30-Jun-22 |
|
Basic EPS |
|
$ |
2.10 |
|
|
$ |
2.22 |
|
|
$ |
2.77 |
|
|
$ |
4.32 |
|
|
$ |
5.46 |
|
Diluted EPS |
|
$ |
2.10 |
|
|
$ |
2.22 |
|
|
$ |
2.77 |
|
|
$ |
4.32 |
|
|
$ |
5.46 |
|
Average common shares outstanding |
|
|
71,690,396 |
|
|
|
71,541,778 |
|
|
|
76,171,784 |
|
|
|
71,616,498 |
|
|
|
77,301,469 |
|
Average common shares outstandingassuming dilution |
|
|
71,709,203 |
|
|
|
71,606,196 |
|
|
|
76,286,883 |
|
|
|
71,664,303 |
|
|
|
77,426,274 |
|
Common shares outstanding at end of period |
|
|
72,103,969 |
|
|
|
71,965,984 |
|
|
|
76,576,397 |
|
|
|
72,103,969 |
|
|
|
76,576,397 |
|
Market value per common share |
|
$ |
60.52 |
|
|
$ |
57.41 |
|
|
$ |
76.93 |
|
|
$ |
60.52 |
|
|
$ |
76.93 |
|
Market capitalization(In millions) |
|
$ |
4,364 |
|
|
$ |
4,132 |
|
|
$ |
5,891 |
|
|
$ |
4,364 |
|
|
$ |
5,891 |
|
Return on average assets |
|
|
0.85 |
% |
|
|
0.93 |
% |
|
|
1.17 |
% |
|
|
0.89 |
% |
|
|
1.15 |
% |
Return on average common equity |
|
|
9.26 |
% |
|
|
10.00 |
% |
|
|
14.58 |
% |
|
|
9.63 |
% |
|
|
14.48 |
% |
Net interest margin (non-taxable equivalent
basis) |
|
|
3.14 |
% |
|
|
3.22 |
% |
|
|
3.09 |
% |
|
|
3.18 |
% |
|
|
2.92 |
% |
Net interest margin (taxable equivalent basis) -non-GAAP |
|
|
3.29 |
% |
|
|
3.46 |
% |
|
|
3.45 |
% |
|
|
3.37 |
% |
|
|
3.24 |
% |
Common equity per share |
|
$ |
63.00 |
|
|
$ |
61.82 |
|
|
$ |
55.78 |
|
|
$ |
63.00 |
|
|
$ |
55.78 |
|
Tangible common book value per common share (non-GAAP)
[1] |
|
$ |
51.37 |
|
|
$ |
50.15 |
|
|
$ |
46.18 |
|
|
$ |
51.37 |
|
|
$ |
46.18 |
|
Tangible common equity to tangible assets (non-GAAP)
[1] |
|
|
5.29 |
% |
|
|
5.40 |
% |
|
|
5.00 |
% |
|
|
5.29 |
% |
|
|
5.00 |
% |
Return on average tangible common equity [1] |
|
|
10.63 |
% |
|
|
11.51 |
% |
|
|
16.70 |
% |
|
|
11.06 |
% |
|
|
16.55 |
% |
Tier 1 capital |
|
|
16.93 |
% |
|
|
16.79 |
% |
|
|
16.46 |
% |
|
|
16.93 |
% |
|
|
16.46 |
% |
Total capital |
|
|
18.74 |
% |
|
|
18.61 |
% |
|
|
18.29 |
% |
|
|
18.74 |
% |
|
|
18.29 |
% |
Tier 1 leverage |
|
|
8.40 |
% |
|
|
8.37 |
% |
|
|
7.56 |
% |
|
|
8.40 |
% |
|
|
7.56 |
% |
Common Equity Tier 1 capital |
|
|
16.87 |
% |
|
|
16.73 |
% |
|
|
16.39 |
% |
|
|
16.87 |
% |
|
|
16.39 |
% |
[1] |
Refer to Table S for reconciliation to GAAP financial measures. |
11
POPULAR, INC.
Financial Supplement to Second Quarter 2023 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters ended |
|
|
Variance |
|
|
Quarter ended |
|
|
Variance |
|
|
Six months ended |
|
|
|
|
|
|
|
|
|
Q2 2023 |
|
|
|
|
|
Q2 2023 |
|
|
|
|
|
|
|
(In thousands, except per share information) |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
vs. Q1 2023 |
|
|
30-Jun-22 |
|
|
vs. Q2 2022 |
|
|
30-Jun-23 |
|
|
30-Jun-22 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
570,120 |
|
|
$ |
541,210 |
|
|
$ |
28,910 |
|
|
$ |
446,245 |
|
|
$ |
123,875 |
|
|
$ |
1,111,330 |
|
|
$ |
873,036 |
|
Money market investments |
|
|
100,775 |
|
|
|
65,724 |
|
|
|
35,051 |
|
|
|
23,742 |
|
|
|
77,033 |
|
|
|
166,499 |
|
|
|
30,206 |
|
Investment securities |
|
|
123,112 |
|
|
|
132,088 |
|
|
|
(8,976 |
) |
|
|
101,774 |
|
|
|
21,338 |
|
|
|
255,200 |
|
|
|
198,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
|
794,007 |
|
|
|
739,022 |
|
|
|
54,985 |
|
|
|
571,761 |
|
|
|
222,246 |
|
|
|
1,533,029 |
|
|
|
1,101,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
243,488 |
|
|
|
193,215 |
|
|
|
50,273 |
|
|
|
27,827 |
|
|
|
215,661 |
|
|
|
436,703 |
|
|
|
52,610 |
|
Short-term borrowings |
|
|
1,624 |
|
|
|
2,885 |
|
|
|
(1,261 |
) |
|
|
248 |
|
|
|
1,376 |
|
|
|
4,509 |
|
|
|
328 |
|
Long-term debt |
|
|
17,227 |
|
|
|
11,266 |
|
|
|
5,961 |
|
|
|
9,824 |
|
|
|
7,403 |
|
|
|
28,493 |
|
|
|
20,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
|
262,339 |
|
|
|
207,366 |
|
|
|
54,973 |
|
|
|
37,899 |
|
|
|
224,440 |
|
|
|
469,705 |
|
|
|
73,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
531,668 |
|
|
|
531,656 |
|
|
|
12 |
|
|
|
533,862 |
|
|
|
(2,194 |
) |
|
|
1,063,324 |
|
|
|
1,028,174 |
|
Provision for credit losses (benefit) |
|
|
37,192 |
|
|
|
47,637 |
|
|
|
(10,445 |
) |
|
|
9,362 |
|
|
|
27,830 |
|
|
|
84,829 |
|
|
|
(6,138 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for credit losses (benefit) |
|
|
494,476 |
|
|
|
484,019 |
|
|
|
10,457 |
|
|
|
524,500 |
|
|
|
(30,024 |
) |
|
|
978,495 |
|
|
|
1,034,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
37,781 |
|
|
|
34,678 |
|
|
|
3,103 |
|
|
|
41,809 |
|
|
|
(4,028 |
) |
|
|
72,459 |
|
|
|
82,522 |
|
Other service fees |
|
|
94,265 |
|
|
|
90,076 |
|
|
|
4,189 |
|
|
|
81,451 |
|
|
|
12,814 |
|
|
|
184,341 |
|
|
|
158,585 |
|
Mortgage banking activities |
|
|
2,316 |
|
|
|
7,400 |
|
|
|
(5,084 |
) |
|
|
13,575 |
|
|
|
(11,259 |
) |
|
|
9,716 |
|
|
|
26,440 |
|
Net gain (loss), including impairment, on equity securities |
|
|
1,384 |
|
|
|
1,100 |
|
|
|
284 |
|
|
|
(4,109 |
) |
|
|
5,493 |
|
|
|
2,484 |
|
|
|
(6,203 |
) |
Net gain (loss) on trading account debt securities |
|
|
35 |
|
|
|
378 |
|
|
|
(343 |
) |
|
|
51 |
|
|
|
(16 |
) |
|
|
413 |
|
|
|
(672 |
) |
Adjustments to indemnity reserves on loans sold |
|
|
(456 |
) |
|
|
612 |
|
|
|
(1,068 |
) |
|
|
170 |
|
|
|
(626 |
) |
|
|
156 |
|
|
|
(575 |
) |
Other operating income |
|
|
25,146 |
|
|
|
27,717 |
|
|
|
(2,571 |
) |
|
|
24,464 |
|
|
|
682 |
|
|
|
52,863 |
|
|
|
52,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest income |
|
|
160,471 |
|
|
|
161,961 |
|
|
|
(1,490 |
) |
|
|
157,411 |
|
|
|
3,060 |
|
|
|
322,432 |
|
|
|
312,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
|
|
124,901 |
|
|
|
125,393 |
|
|
|
(492 |
) |
|
|
101,847 |
|
|
|
23,054 |
|
|
|
250,294 |
|
|
|
200,520 |
|
Commissions, incentives and other bonuses |
|
|
27,193 |
|
|
|
31,162 |
|
|
|
(3,969 |
) |
|
|
38,589 |
|
|
|
(11,396 |
) |
|
|
58,355 |
|
|
|
74,110 |
|
Pension, postretirement and medical insurance |
|
|
17,508 |
|
|
|
15,378 |
|
|
|
2,130 |
|
|
|
13,730 |
|
|
|
3,778 |
|
|
|
32,886 |
|
|
|
26,513 |
|
Other personnel costs, including payroll taxes |
|
|
21,866 |
|
|
|
26,827 |
|
|
|
(4,961 |
) |
|
|
14,622 |
|
|
|
7,244 |
|
|
|
48,693 |
|
|
|
34,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total personnel costs |
|
|
191,468 |
|
|
|
198,760 |
|
|
|
(7,292 |
) |
|
|
168,788 |
|
|
|
22,680 |
|
|
|
390,228 |
|
|
|
335,784 |
|
Net occupancy expenses |
|
|
27,165 |
|
|
|
26,039 |
|
|
|
1,126 |
|
|
|
26,214 |
|
|
|
951 |
|
|
|
53,204 |
|
|
|
50,937 |
|
Equipment expenses |
|
|
9,561 |
|
|
|
8,412 |
|
|
|
1,149 |
|
|
|
8,674 |
|
|
|
887 |
|
|
|
17,973 |
|
|
|
17,063 |
|
Other taxes |
|
|
16,409 |
|
|
|
16,291 |
|
|
|
118 |
|
|
|
15,780 |
|
|
|
629 |
|
|
|
32,700 |
|
|
|
31,495 |
|
Professional fees |
|
|
50,132 |
|
|
|
33,431 |
|
|
|
16,701 |
|
|
|
38,430 |
|
|
|
11,702 |
|
|
|
83,563 |
|
|
|
75,222 |
|
Technology and software expenses |
|
|
72,354 |
|
|
|
68,559 |
|
|
|
3,795 |
|
|
|
74,761 |
|
|
|
(2,407 |
) |
|
|
140,913 |
|
|
|
145,296 |
|
Processing and transactional services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit and debit cards |
|
|
11,584 |
|
|
|
12,550 |
|
|
|
(966 |
) |
|
|
10,173 |
|
|
|
1,411 |
|
|
|
24,134 |
|
|
|
21,645 |
|
Other processing and transactional services |
|
|
25,217 |
|
|
|
21,359 |
|
|
|
3,858 |
|
|
|
20,864 |
|
|
|
4,353 |
|
|
|
46,576 |
|
|
|
40,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total processing and transactional services |
|
|
36,801 |
|
|
|
33,909 |
|
|
|
2,892 |
|
|
|
31,037 |
|
|
|
5,764 |
|
|
|
70,710 |
|
|
|
61,990 |
|
Communications |
|
|
4,175 |
|
|
|
4,088 |
|
|
|
87 |
|
|
|
3,497 |
|
|
|
678 |
|
|
|
8,263 |
|
|
|
7,170 |
|
Business promotion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rewards and customer loyalty programs |
|
|
16,626 |
|
|
|
12,348 |
|
|
|
4,278 |
|
|
|
13,929 |
|
|
|
2,697 |
|
|
|
28,974 |
|
|
|
23,950 |
|
Other business promotion |
|
|
8,457 |
|
|
|
6,523 |
|
|
|
1,934 |
|
|
|
7,424 |
|
|
|
1,033 |
|
|
|
14,980 |
|
|
|
12,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total business promotion |
|
|
25,083 |
|
|
|
18,871 |
|
|
|
6,212 |
|
|
|
21,353 |
|
|
|
3,730 |
|
|
|
43,954 |
|
|
|
36,436 |
|
FDIC deposit insurance |
|
|
6,803 |
|
|
|
8,865 |
|
|
|
(2,062 |
) |
|
|
6,463 |
|
|
|
340 |
|
|
|
15,668 |
|
|
|
13,835 |
|
Other real estate owned (OREO) income |
|
|
(3,314 |
) |
|
|
(1,694 |
) |
|
|
(1,620 |
) |
|
|
(7,806 |
) |
|
|
4,492 |
|
|
|
(5,008 |
) |
|
|
(10,519 |
) |
Other operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operational losses |
|
|
4,280 |
|
|
|
6,800 |
|
|
|
(2,520 |
) |
|
|
4,061 |
|
|
|
219 |
|
|
|
11,080 |
|
|
|
15,886 |
|
All other |
|
|
18,572 |
|
|
|
17,561 |
|
|
|
1,011 |
|
|
|
14,231 |
|
|
|
4,341 |
|
|
|
36,133 |
|
|
|
26,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other operating expenses |
|
|
22,852 |
|
|
|
24,361 |
|
|
|
(1,509 |
) |
|
|
18,292 |
|
|
|
4,560 |
|
|
|
47,213 |
|
|
|
42,222 |
|
Amortization of intangibles |
|
|
795 |
|
|
|
795 |
|
|
|
|
|
|
|
795 |
|
|
|
|
|
|
|
1,590 |
|
|
|
1,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
460,284 |
|
|
|
440,687 |
|
|
|
19,597 |
|
|
|
406,278 |
|
|
|
54,006 |
|
|
|
900,971 |
|
|
|
808,617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax |
|
|
194,663 |
|
|
|
205,293 |
|
|
|
(10,630 |
) |
|
|
275,633 |
|
|
|
(80,970 |
) |
|
|
399,956 |
|
|
|
537,798 |
|
Income tax expense |
|
|
43,503 |
|
|
|
46,314 |
|
|
|
(2,811 |
) |
|
|
64,212 |
|
|
|
(20,709 |
) |
|
|
89,817 |
|
|
|
114,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
151,160 |
|
|
$ |
158,979 |
|
|
$ |
(7,819 |
) |
|
$ |
211,421 |
|
|
$ |
(60,261 |
) |
|
$ |
310,139 |
|
|
$ |
423,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to common stock |
|
$ |
150,807 |
|
|
$ |
158,626 |
|
|
$ |
(7,819 |
) |
|
$ |
211,068 |
|
|
$ |
(60,261 |
) |
|
$ |
309,433 |
|
|
$ |
422,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share - basic |
|
$ |
2.10 |
|
|
$ |
2.22 |
|
|
$ |
(0.12 |
) |
|
$ |
2.77 |
|
|
$ |
(0.67 |
) |
|
$ |
4.32 |
|
|
$ |
5.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share - diluted |
|
$ |
2.10 |
|
|
$ |
2.22 |
|
|
$ |
(0.12 |
) |
|
$ |
2.77 |
|
|
$ |
(0.67 |
) |
|
$ |
4.32 |
|
|
$ |
5.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared per Common Share |
|
$ |
0.55 |
|
|
$ |
0.55 |
|
|
$ |
|
|
|
$ |
0.55 |
|
|
$ |
|
|
|
$ |
1.10 |
|
|
$ |
1.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance |
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2023 vs. |
|
(In thousands) |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
30-Jun-22 |
|
|
Q1 2023 |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
476,642 |
|
|
$ |
462,013 |
|
|
$ |
528,590 |
|
|
$ |
14,629 |
|
Money market investments |
|
|
8,593,476 |
|
|
|
6,098,288 |
|
|
|
9,687,356 |
|
|
|
2,495,188 |
|
Trading account debt securities, at fair value |
|
|
29,160 |
|
|
|
29,839 |
|
|
|
32,317 |
|
|
|
(679 |
) |
Debt securities
available-for-sale, at fair value |
|
|
17,242,217 |
|
|
|
17,173,128 |
|
|
|
26,266,251 |
|
|
|
69,089 |
|
Debt securities
held-to-maturity, at amortized cost |
|
|
8,410,566 |
|
|
|
8,563,052 |
|
|
|
1,664,015 |
|
|
|
(152,486 |
) |
Less: Allowance for credit losses |
|
|
6,145 |
|
|
|
6,792 |
|
|
|
7,495 |
|
|
|
(647 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt securities
held-to-maturity, net |
|
|
8,404,421 |
|
|
|
8,556,260 |
|
|
|
1,656,520 |
|
|
|
(151,839 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities |
|
|
192,373 |
|
|
|
185,917 |
|
|
|
175,870 |
|
|
|
6,456 |
|
Loans
held-for-sale, at lower of cost or fair value |
|
|
55,421 |
|
|
|
11,181 |
|
|
|
28,546 |
|
|
|
44,240 |
|
Loans
held-in-portfolio |
|
|
33,354,999 |
|
|
|
32,645,023 |
|
|
|
30,643,443 |
|
|
|
709,976 |
|
Less: Unearned income |
|
|
324,077 |
|
|
|
306,650 |
|
|
|
272,507 |
|
|
|
17,427 |
|
Allowance for credit losses |
|
|
700,200 |
|
|
|
689,120 |
|
|
|
681,750 |
|
|
|
11,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
held-in-portfolio, net |
|
|
32,330,722 |
|
|
|
31,649,253 |
|
|
|
29,689,186 |
|
|
|
681,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment, net |
|
|
523,927 |
|
|
|
508,007 |
|
|
|
490,152 |
|
|
|
15,920 |
|
Other real estate |
|
|
86,216 |
|
|
|
91,721 |
|
|
|
92,137 |
|
|
|
(5,505 |
) |
Accrued income receivable |
|
|
239,998 |
|
|
|
239,815 |
|
|
|
216,780 |
|
|
|
183 |
|
Mortgage servicing rights, at fair value |
|
|
121,249 |
|
|
|
127,475 |
|
|
|
129,877 |
|
|
|
(6,226 |
) |
Other assets |
|
|
1,703,662 |
|
|
|
1,703,285 |
|
|
|
1,773,523 |
|
|
|
377 |
|
Goodwill |
|
|
827,428 |
|
|
|
827,428 |
|
|
|
720,293 |
|
|
|
|
|
Other intangible assets |
|
|
11,354 |
|
|
|
12,149 |
|
|
|
14,533 |
|
|
|
(795 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
70,838,266 |
|
|
$ |
67,675,759 |
|
|
$ |
71,501,931 |
|
|
$ |
3,162,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
15,316,552 |
|
|
$ |
15,940,850 |
|
|
$ |
16,663,259 |
|
|
$ |
(624,298 |
) |
Interest bearing |
|
|
48,688,266 |
|
|
|
45,013,038 |
|
|
|
48,664,405 |
|
|
|
3,675,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
|
64,004,818 |
|
|
|
60,953,888 |
|
|
|
65,327,664 |
|
|
|
3,050,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets sold under agreements to repurchase |
|
|
123,205 |
|
|
|
123,499 |
|
|
|
70,925 |
|
|
|
(294 |
) |
Notes payable |
|
|
1,304,049 |
|
|
|
1,279,127 |
|
|
|
888,210 |
|
|
|
24,922 |
|
Other liabilities |
|
|
841,185 |
|
|
|
848,520 |
|
|
|
921,783 |
|
|
|
(7,335 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
66,273,257 |
|
|
|
63,205,034 |
|
|
|
67,208,582 |
|
|
|
3,068,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
22,143 |
|
|
|
22,143 |
|
|
|
22,143 |
|
|
|
|
|
Common stock |
|
|
1,047 |
|
|
|
1,047 |
|
|
|
1,046 |
|
|
|
|
|
Surplus |
|
|
4,795,581 |
|
|
|
4,792,619 |
|
|
|
4,576,478 |
|
|
|
2,962 |
|
Retained earnings |
|
|
4,093,284 |
|
|
|
3,982,140 |
|
|
|
3,311,951 |
|
|
|
111,144 |
|
Treasury stock |
|
|
(2,018,611 |
) |
|
|
(2,025,399 |
) |
|
|
(1,665,253 |
) |
|
|
6,788 |
|
Accumulated other comprehensive loss, net of tax |
|
|
(2,328,435 |
) |
|
|
(2,301,825 |
) |
|
|
(1,953,016 |
) |
|
|
(26,610 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders equity |
|
|
4,565,009 |
|
|
|
4,470,725 |
|
|
|
4,293,349 |
|
|
|
94,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity |
|
$ |
70,838,266 |
|
|
$ |
67,675,759 |
|
|
$ |
71,501,931 |
|
|
$ |
3,162,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP)
For the quarters ended June 30, 2023 and March 31, 2023
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Volume |
|
|
Average Yields / Costs |
|
|
|
|
Interest |
|
|
Variance Attributable to |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
Variance |
|
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
Variance |
|
|
|
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
Variance |
|
|
Rate |
|
|
Volume |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
$ |
7,851 |
|
|
$ |
5,736 |
|
|
$ |
2,115 |
|
|
|
5.15 |
% |
|
|
4.65 |
% |
|
|
0.50 |
% |
|
Money market investments |
|
$ |
100,776 |
|
|
$ |
65,724 |
|
|
$ |
35,052 |
|
|
$ |
8,626 |
|
|
$ |
26,426 |
|
|
27,362 |
|
|
|
28,862 |
|
|
|
(1,500 |
) |
|
|
2.00 |
|
|
|
2.22 |
|
|
|
(0.22 |
) |
|
Investment securities [1] |
|
|
136,408 |
|
|
|
158,914 |
|
|
|
(22,506 |
) |
|
|
(14,842 |
) |
|
|
(7,664 |
) |
|
32 |
|
|
|
31 |
|
|
|
1 |
|
|
|
4.65 |
|
|
|
4.47 |
|
|
|
0.18 |
|
|
Trading securities |
|
|
370 |
|
|
|
338 |
|
|
|
32 |
|
|
|
18 |
|
|
|
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,245 |
|
|
|
34,629 |
|
|
|
616 |
|
|
|
2.70 |
|
|
|
2.63 |
|
|
|
0.07 |
|
|
Total money market, investment and trading securities |
|
|
237,554 |
|
|
|
224,976 |
|
|
|
12,578 |
|
|
|
(6,198 |
) |
|
|
18,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,237 |
|
|
|
15,761 |
|
|
|
476 |
|
|
|
6.52 |
|
|
|
6.32 |
|
|
|
0.20 |
|
|
Commercial |
|
|
263,934 |
|
|
|
245,469 |
|
|
|
18,465 |
|
|
|
10,915 |
|
|
|
7,550 |
|
|
737 |
|
|
|
732 |
|
|
|
5 |
|
|
|
8.95 |
|
|
|
8.40 |
|
|
|
0.55 |
|
|
Construction |
|
|
16,442 |
|
|
|
15,155 |
|
|
|
1,287 |
|
|
|
1,187 |
|
|
|
100 |
|
|
1,632 |
|
|
|
1,588 |
|
|
|
44 |
|
|
|
6.30 |
|
|
|
6.12 |
|
|
|
0.18 |
|
|
Leasing |
|
|
25,711 |
|
|
|
24,282 |
|
|
|
1,429 |
|
|
|
756 |
|
|
|
673 |
|
|
7,409 |
|
|
|
7,388 |
|
|
|
21 |
|
|
|
5.47 |
|
|
|
5.46 |
|
|
|
0.01 |
|
|
Mortgage |
|
|
101,304 |
|
|
|
100,773 |
|
|
|
531 |
|
|
|
243 |
|
|
|
288 |
|
|
3,075 |
|
|
|
3,020 |
|
|
|
55 |
|
|
|
13.21 |
|
|
|
12.85 |
|
|
|
0.36 |
|
|
Consumer |
|
|
101,295 |
|
|
|
95,715 |
|
|
|
5,580 |
|
|
|
3,684 |
|
|
|
1,896 |
|
|
3,593 |
|
|
|
3,559 |
|
|
|
34 |
|
|
|
8.31 |
|
|
|
8.14 |
|
|
|
0.17 |
|
|
Auto |
|
|
74,467 |
|
|
|
71,407 |
|
|
|
3,060 |
|
|
|
2,378 |
|
|
|
682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,683 |
|
|
|
32,048 |
|
|
|
635 |
|
|
|
7.15 |
|
|
|
6.97 |
|
|
|
0.18 |
|
|
Total loans |
|
|
583,153 |
|
|
|
552,801 |
|
|
|
30,352 |
|
|
|
19,163 |
|
|
|
11,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
67,928 |
|
|
$ |
66,677 |
|
|
$ |
1,251 |
|
|
|
4.84 |
% |
|
|
4.72 |
% |
|
|
0.12 |
% |
|
Total earning assets |
|
$ |
820,707 |
|
|
$ |
777,777 |
|
|
$ |
42,930 |
|
|
$ |
12,965 |
|
|
$ |
29,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
24,230 |
|
|
$ |
23,313 |
|
|
$ |
917 |
|
|
|
2.91 |
% |
|
|
2.52 |
% |
|
|
0.39 |
% |
|
NOW and money market [2] |
|
$ |
175,640 |
|
|
$ |
144,970 |
|
|
$ |
30,670 |
|
|
$ |
22,412 |
|
|
$ |
8,258 |
|
|
14,763 |
|
|
|
15,029 |
|
|
|
(266 |
) |
|
|
0.66 |
|
|
|
0.47 |
|
|
|
0.19 |
|
|
Savings |
|
|
24,446 |
|
|
|
17,443 |
|
|
|
7,003 |
|
|
|
7,461 |
|
|
|
(458 |
) |
|
7,715 |
|
|
|
7,099 |
|
|
|
616 |
|
|
|
2.26 |
|
|
|
1.76 |
|
|
|
0.50 |
|
|
Time deposits |
|
|
43,402 |
|
|
|
30,802 |
|
|
|
12,600 |
|
|
|
8,255 |
|
|
|
4,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46,708 |
|
|
|
45,441 |
|
|
|
1,267 |
|
|
|
2.09 |
|
|
|
1.72 |
|
|
|
0.37 |
|
|
Total interest bearing deposits |
|
|
243,488 |
|
|
|
193,215 |
|
|
|
50,273 |
|
|
|
38,128 |
|
|
|
12,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,480 |
|
|
|
15,704 |
|
|
|
(224 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand
deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,188 |
|
|
|
61,145 |
|
|
|
1,043 |
|
|
|
1.57 |
|
|
|
1.28 |
|
|
|
0.29 |
|
|
Total deposits |
|
|
243,488 |
|
|
|
193,215 |
|
|
|
50,273 |
|
|
|
38,128 |
|
|
|
12,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
125 |
|
|
|
247 |
|
|
|
(122 |
) |
|
|
5.19 |
|
|
|
4.74 |
|
|
|
0.45 |
|
|
Short-term borrowings |
|
|
1,624 |
|
|
|
2,885 |
|
|
|
(1,261 |
) |
|
|
341 |
|
|
|
(1,602 |
) |
|
1,299 |
|
|
|
947 |
|
|
|
352 |
|
|
|
5.33 |
|
|
|
4.78 |
|
|
|
0.55 |
|
|
Other medium and long-term debt |
|
|
17,227 |
|
|
|
11,266 |
|
|
|
5,961 |
|
|
|
(372 |
) |
|
|
6,333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48,132 |
|
|
|
46,635 |
|
|
|
1,497 |
|
|
|
2.19 |
|
|
|
1.80 |
|
|
|
0.39 |
|
|
Total interest bearing liabilities (excluding demand deposits) |
|
|
262,339 |
|
|
|
207,366 |
|
|
|
54,973 |
|
|
|
38,097 |
|
|
|
16,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,316 |
|
|
|
4,338 |
|
|
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other sources of funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
67,928 |
|
|
$ |
66,677 |
|
|
$ |
1,251 |
|
|
|
1.55 |
% |
|
|
1.26 |
% |
|
|
0.29 |
% |
|
Total source of funds |
|
|
262,339 |
|
|
|
207,366 |
|
|
|
54,973 |
|
|
|
38,097 |
|
|
|
16,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.29 |
% |
|
|
3.46 |
% |
|
|
(0.17 |
)% |
|
Net interest margin/ income on a taxable equivalent basis
(Non-GAAP) |
|
|
558,368 |
|
|
|
570,411 |
|
|
|
(12,043 |
) |
|
$ |
(25,132 |
) |
|
$ |
13,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.65 |
% |
|
|
2.92 |
% |
|
|
(0.27 |
)% |
|
Net interest spread |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent adjustment |
|
|
26,700 |
|
|
|
38,755 |
|
|
|
(12,055 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.14 |
% |
|
|
3.22 |
% |
|
|
(0.08 |
)% |
|
Net interest margin/ income non-taxable equivalent basis
(GAAP) |
|
$ |
531,668 |
|
|
$ |
531,656 |
|
|
$ |
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the
change in each category.
[1] |
Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity. |
[2] |
Includes interest bearing demand deposits corresponding to certain government entities in Puerto Rico.
|
15
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP)
For the quarters ended June 30, 2023 and June 30, 2022
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Volume |
|
|
Average Yields / Costs |
|
|
|
|
Interest |
|
|
Variance Attributable to |
|
30-Jun-23 |
|
|
30-Jun-22 |
|
|
Variance |
|
|
30-Jun-23 |
|
|
30-Jun-22 |
|
|
Variance |
|
|
|
|
30-Jun-23 |
|
|
30-Jun-22 |
|
|
Variance |
|
|
Rate |
|
|
Volume |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
$ |
7,851 |
|
|
$ |
11,513 |
|
|
$ |
(3,662 |
) |
|
|
5.15 |
% |
|
|
0.83 |
% |
|
|
4.32 |
% |
|
Money market investments |
|
$ |
100,776 |
|
|
$ |
23,742 |
|
|
$ |
77,034 |
|
|
$ |
86,849 |
|
|
$ |
(9,815 |
) |
|
27,362 |
|
|
|
27,748 |
|
|
|
(386 |
) |
|
|
2.00 |
|
|
|
2.18 |
|
|
|
(0.18 |
) |
|
Investment securities [1] |
|
|
136,408 |
|
|
|
150,890 |
|
|
|
(14,482 |
) |
|
|
(12,105 |
) |
|
|
(2,377 |
) |
|
32 |
|
|
|
65 |
|
|
|
(33 |
) |
|
|
4.65 |
|
|
|
6.66 |
|
|
|
(2.01 |
) |
|
Trading securities |
|
|
370 |
|
|
|
1,089 |
|
|
|
(719 |
) |
|
|
(266 |
) |
|
|
(453 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,245 |
|
|
|
39,326 |
|
|
|
(4,081 |
) |
|
|
2.70 |
|
|
|
1.79 |
|
|
|
0.91 |
|
|
Total money market, investment and trading securities |
|
|
237,554 |
|
|
|
175,721 |
|
|
|
61,833 |
|
|
|
74,478 |
|
|
|
(12,645 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,237 |
|
|
|
14,227 |
|
|
|
2,010 |
|
|
|
6.52 |
|
|
|
5.16 |
|
|
|
1.36 |
|
|
Commercial |
|
|
263,934 |
|
|
|
183,042 |
|
|
|
80,892 |
|
|
|
52,659 |
|
|
|
28,233 |
|
|
737 |
|
|
|
781 |
|
|
|
(44 |
) |
|
|
8.95 |
|
|
|
5.71 |
|
|
|
3.24 |
|
|
Construction |
|
|
16,442 |
|
|
|
11,116 |
|
|
|
5,326 |
|
|
|
5,997 |
|
|
|
(671 |
) |
|
1,632 |
|
|
|
1,445 |
|
|
|
187 |
|
|
|
6.30 |
|
|
|
5.91 |
|
|
|
0.39 |
|
|
Leasing |
|
|
25,711 |
|
|
|
21,352 |
|
|
|
4,359 |
|
|
|
1,473 |
|
|
|
2,886 |
|
|
7,409 |
|
|
|
7,294 |
|
|
|
115 |
|
|
|
5.47 |
|
|
|
5.33 |
|
|
|
0.14 |
|
|
Mortgage |
|
|
101,304 |
|
|
|
97,137 |
|
|
|
4,167 |
|
|
|
2,621 |
|
|
|
1,546 |
|
|
3,075 |
|
|
|
2,654 |
|
|
|
421 |
|
|
|
13.21 |
|
|
|
11.33 |
|
|
|
1.88 |
|
|
Consumer |
|
|
101,295 |
|
|
|
74,932 |
|
|
|
26,363 |
|
|
|
13,174 |
|
|
|
13,189 |
|
|
3,593 |
|
|
|
3,499 |
|
|
|
94 |
|
|
|
8.31 |
|
|
|
8.04 |
|
|
|
0.27 |
|
|
Auto |
|
|
74,467 |
|
|
|
70,145 |
|
|
|
4,322 |
|
|
|
2,414 |
|
|
|
1,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,683 |
|
|
|
29,900 |
|
|
|
2,783 |
|
|
|
7.15 |
|
|
|
6.14 |
|
|
|
1.01 |
|
|
Total loans |
|
|
583,153 |
|
|
|
457,724 |
|
|
|
125,429 |
|
|
|
78,338 |
|
|
|
47,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
67,928 |
|
|
$ |
69,226 |
|
|
$ |
(1,298 |
) |
|
|
4.84 |
% |
|
|
3.67 |
% |
|
|
1.17 |
% |
|
Total earning assets |
|
$ |
820,707 |
|
|
$ |
633,445 |
|
|
$ |
187,262 |
|
|
$ |
152,816 |
|
|
$ |
34,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$24,230 |
|
|
$ |
24,897 |
|
|
$ |
(667 |
) |
|
|
2.91 |
% |
|
|
0.13 |
% |
|
|
2.78 |
% |
|
NOW and money market [2] |
|
$ |
175,640 |
|
|
$ |
8,301 |
|
|
$ |
167,339 |
|
|
$ |
168,466 |
|
|
$ |
(1,127 |
) |
|
14,763 |
|
|
|
16,363 |
|
|
|
(1,600 |
) |
|
|
0.66 |
|
|
|
0.17 |
|
|
|
0.49 |
|
|
Savings |
|
|
24,446 |
|
|
|
6,901 |
|
|
|
17,545 |
|
|
|
19,301 |
|
|
|
(1,756 |
) |
|
7,715 |
|
|
|
7,044 |
|
|
|
671 |
|
|
|
2.26 |
|
|
|
0.72 |
|
|
|
1.54 |
|
|
Time deposits |
|
|
43,402 |
|
|
|
12,625 |
|
|
|
30,777 |
|
|
|
25,715 |
|
|
|
5,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46,708 |
|
|
|
48,304 |
|
|
|
(1,596 |
) |
|
|
2.09 |
|
|
|
0.23 |
|
|
|
1.86 |
|
|
Total interest bearing deposits |
|
|
243,488 |
|
|
|
27,827 |
|
|
|
215,661 |
|
|
|
213,482 |
|
|
|
2,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,480 |
|
|
|
16,254 |
|
|
|
(774 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,188 |
|
|
|
64,558 |
|
|
|
(2,370 |
) |
|
|
1.57 |
|
|
|
0.17 |
|
|
|
1.40 |
|
|
Total deposits |
|
|
243,488 |
|
|
|
27,827 |
|
|
|
215,661 |
|
|
|
213,482 |
|
|
|
2,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
125 |
|
|
|
126 |
|
|
|
(1 |
) |
|
|
5.19 |
|
|
|
0.79 |
|
|
|
4.40 |
|
|
Short-term borrowings |
|
|
1,624 |
|
|
|
248 |
|
|
|
1,376 |
|
|
|
1,420 |
|
|
|
(44 |
) |
|
1,299 |
|
|
|
917 |
|
|
|
382 |
|
|
|
5.33 |
|
|
|
4.30 |
|
|
|
1.03 |
|
|
Other medium and long-term debt |
|
|
17,227 |
|
|
|
9,824 |
|
|
|
7,403 |
|
|
|
513 |
|
|
|
6,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48,132 |
|
|
|
49,347 |
|
|
|
(1,215 |
) |
|
|
2.19 |
|
|
|
0.31 |
|
|
|
1.88 |
|
|
Total interest bearing liabilities (excluding demand deposits) |
|
|
262,339 |
|
|
|
37,899 |
|
|
|
224,440 |
|
|
|
215,415 |
|
|
|
9,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,316 |
|
|
|
3,625 |
|
|
|
691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other sources of funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$67,928 |
|
|
$ |
69,226 |
|
|
$ |
(1,298 |
) |
|
|
1.55 |
% |
|
|
0.22 |
% |
|
|
1.33 |
% |
|
Total source of funds |
|
|
262,339 |
|
|
|
37,899 |
|
|
|
224,440 |
|
|
|
215,415 |
|
|
|
9,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.29 |
% |
|
|
3.45 |
% |
|
|
(0.16 |
) % |
|
Net interest margin/ income on a taxable equivalent basis
(Non-GAAP) |
|
|
558,368 |
|
|
|
595,546 |
|
|
|
(37,178 |
) |
|
$ |
(62,599 |
) |
|
$ |
25,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.65 |
% |
|
|
3.36 |
% |
|
|
(0.71
|
) % |
|
Net interest spread |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent adjustment |
|
|
26,700 |
|
|
|
61,684 |
|
|
|
(34,984 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.14 |
% |
|
|
3.09 |
% |
|
|
0.05 |
% |
|
Net interest margin/ income non-taxable equivalent basis
(GAAP) |
|
$ |
531,668 |
|
|
$ |
533,862 |
|
|
$ |
(2,194 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the
change in each category.
[1] |
Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity. |
[2] |
Includes interest bearing demand deposits corresponding to certain government entities in Puerto Rico.
|
16
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table F - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Volume |
|
|
Average Yields / Costs |
|
|
|
|
Interest |
|
|
Variance Attributable to |
|
30-Jun-23 |
|
|
30-Jun-22 |
|
|
Variance |
|
|
30-Jun-23 |
|
|
30-Jun-22 |
|
|
Variance |
|
|
|
|
30-Jun-23 |
|
|
30-Jun-22 |
|
|
Variance |
|
|
Rate |
|
|
Volume |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
$ |
6,800 |
|
|
$ |
13,129 |
|
|
$ |
(6,329 |
) |
|
|
4.94 |
% |
|
|
0.46 |
% |
|
|
4.48 |
% |
|
Money market investments |
|
$ |
166,500 |
|
|
$ |
30,206 |
|
|
$ |
136,294 |
|
|
$ |
157,542 |
|
|
$ |
(21,248 |
) |
|
28,108 |
|
|
|
28,107 |
|
|
|
1 |
|
|
|
2.11 |
|
|
|
2.06 |
|
|
|
0.05 |
|
|
Investment securities [1] |
|
|
295,322 |
|
|
|
288,241 |
|
|
|
7,081 |
|
|
|
8,948 |
|
|
|
(1,867 |
) |
|
31 |
|
|
|
68 |
|
|
|
(37 |
) |
|
|
4.56 |
|
|
|
6.27 |
|
|
|
(1.71 |
) |
|
Trading securities |
|
|
708 |
|
|
|
2,107 |
|
|
|
(1,399 |
) |
|
|
(470 |
) |
|
|
(929 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34,939 |
|
|
|
41,304 |
|
|
|
(6,365 |
) |
|
|
2.67 |
|
|
|
1.56 |
|
|
|
1.11 |
|
|
Total money market, investment and trading securities |
|
|
462,530 |
|
|
|
320,554 |
|
|
|
141,976 |
|
|
|
166,020 |
|
|
|
(24,044 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,000 |
|
|
|
13,986 |
|
|
|
2,014 |
|
|
|
6.42 |
|
|
|
5.12 |
|
|
|
1.30 |
|
|
Commercial |
|
|
509,403 |
|
|
|
355,171 |
|
|
|
154,232 |
|
|
|
98,409 |
|
|
|
55,823 |
|
|
734 |
|
|
|
754 |
|
|
|
(20 |
) |
|
|
8.68 |
|
|
|
5.58 |
|
|
|
3.10 |
|
|
Construction |
|
|
31,598 |
|
|
|
20,874 |
|
|
|
10,724 |
|
|
|
11,283 |
|
|
|
(559 |
) |
|
1,610 |
|
|
|
1,419 |
|
|
|
191 |
|
|
|
6.21 |
|
|
|
5.93 |
|
|
|
0.28 |
|
|
Leasing |
|
|
49,993 |
|
|
|
42,071 |
|
|
|
7,922 |
|
|
|
2,051 |
|
|
|
5,871 |
|
|
7,398 |
|
|
|
7,341 |
|
|
|
57 |
|
|
|
5.46 |
|
|
|
5.28 |
|
|
|
0.18 |
|
|
Mortgage |
|
|
202,076 |
|
|
|
193,905 |
|
|
|
8,171 |
|
|
|
6,637 |
|
|
|
1,534 |
|
|
3,049 |
|
|
|
2,595 |
|
|
|
454 |
|
|
|
13.03 |
|
|
|
11.27 |
|
|
|
1.76 |
|
|
Consumer |
|
|
197,010 |
|
|
|
144,994 |
|
|
|
52,016 |
|
|
|
24,268 |
|
|
|
27,748 |
|
|
3,576 |
|
|
|
3,480 |
|
|
|
96 |
|
|
|
8.23 |
|
|
|
8.08 |
|
|
|
0.15 |
|
|
Auto |
|
|
145,874 |
|
|
|
139,397 |
|
|
|
6,477 |
|
|
|
2,574 |
|
|
|
3,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,367 |
|
|
|
29,575 |
|
|
|
2,792 |
|
|
|
7.06 |
|
|
|
6.10 |
|
|
|
0.96 |
|
|
Total loans |
|
|
1,135,954 |
|
|
|
896,412 |
|
|
|
239,542 |
|
|
|
145,222 |
|
|
|
94,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
67,306 |
|
|
$ |
70,879 |
|
|
$ |
(3,573 |
) |
|
|
4.78 |
% |
|
|
3.45 |
% |
|
|
1.33 |
% |
|
Total earning assets |
|
$ |
1,598,484 |
|
|
$ |
1,216,966 |
|
|
$ |
381,518 |
|
|
$ |
311,242 |
|
|
$ |
70,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
23,774 |
|
|
$ |
26,584 |
|
|
$ |
(2,810 |
) |
|
|
2.72 |
% |
|
|
0.12 |
% |
|
|
2.60 |
% |
|
NOW and money market [2] |
|
$ |
320,610 |
|
|
$ |
15,624 |
|
|
$ |
304,986 |
|
|
$ |
307,891 |
|
|
$ |
(2,905 |
) |
|
14,895 |
|
|
|
16,398 |
|
|
|
(1,503 |
) |
|
|
0.57 |
|
|
|
0.17 |
|
|
|
0.40 |
|
|
Savings |
|
|
41,889 |
|
|
|
13,464 |
|
|
|
28,425 |
|
|
|
31,595 |
|
|
|
(3,170 |
) |
|
7,409 |
|
|
|
6,891 |
|
|
|
518 |
|
|
|
2.02 |
|
|
|
0.69 |
|
|
|
1.33 |
|
|
Time deposits |
|
|
74,204 |
|
|
|
23,522 |
|
|
|
50,682 |
|
|
|
42,149 |
|
|
|
8,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46,078 |
|
|
|
49,873 |
|
|
|
(3,795 |
) |
|
|
1.91 |
|
|
|
0.21 |
|
|
|
1.70 |
|
|
Total interest bearing deposits |
|
|
436,703 |
|
|
|
52,610 |
|
|
|
384,093 |
|
|
|
381,635 |
|
|
|
2,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,592 |
|
|
|
16,198 |
|
|
|
(606 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand
deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
61,670 |
|
|
|
66,071 |
|
|
|
(4,401 |
) |
|
|
1.43 |
|
|
|
0.16 |
|
|
|
1.27 |
|
|
Total deposits |
|
|
436,703 |
|
|
|
52,610 |
|
|
|
384,093 |
|
|
|
381,635 |
|
|
|
2,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
186 |
|
|
|
109 |
|
|
|
77 |
|
|
|
4.89 |
|
|
|
0.61 |
|
|
|
4.28 |
|
|
Short-term borrowings |
|
|
4,509 |
|
|
|
328 |
|
|
|
4,181 |
|
|
|
3,797 |
|
|
|
384 |
|
|
1,124 |
|
|
|
965 |
|
|
|
159 |
|
|
|
5.10 |
|
|
|
4.25 |
|
|
|
0.85 |
|
|
Other medium and long-term debt |
|
|
28,493 |
|
|
|
20,370 |
|
|
|
8,123 |
|
|
|
4,895 |
|
|
|
3,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47,388 |
|
|
|
50,947 |
|
|
|
(3,559 |
) |
|
|
2.00 |
|
|
|
0.29 |
|
|
|
1.71 |
|
|
Total interest bearing liabilities (excluding demand deposits) |
|
|
469,705 |
|
|
|
73,308 |
|
|
|
396,397 |
|
|
|
390,327 |
|
|
|
6,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,326 |
|
|
|
3,734 |
|
|
|
592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other sources of funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
67,306 |
|
|
$ |
70,879 |
|
|
$ |
(3,573 |
) |
|
|
1.41 |
% |
|
|
0.21 |
% |
|
|
1.20 |
% |
|
Total source of funds |
|
|
469,705 |
|
|
|
73,308 |
|
|
|
396,397 |
|
|
|
390,327 |
|
|
|
6,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.37 |
% |
|
|
3.24 |
% |
|
|
0.13 |
% |
|
Net interest margin/ income on a taxable equivalent basis
(Non-GAAP) |
|
|
1,128,779 |
|
|
|
1,143,658 |
|
|
|
(14,879 |
) |
|
$ |
(79,085 |
) |
|
$ |
64,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.78 |
% |
|
|
3.16 |
% |
|
|
(0.38 |
)% |
|
Net interest spread |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent adjustment |
|
|
65,455 |
|
|
|
115,484 |
|
|
|
(50,029 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.18 |
% |
|
|
2.92 |
% |
|
|
0.26 |
% |
|
Net interest margin/ income non-taxable equivalent basis
(GAAP) |
|
$ |
1,063,324 |
|
|
$ |
1,028,174 |
|
|
$ |
35,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the
change in each category.
[1] |
Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity. |
[2] |
Includes interest bearing demand deposits corresponding to certain government entities in Puerto Rico.
|
17
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table G - Mortgage Banking Activities and Other Service Fees
(Unaudited)
Mortgage
Banking Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters ended |
|
|
Variance |
|
|
Six months ended |
|
|
Variance |
|
(In thousands) |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
30-Jun-22 |
|
|
Q2 2023 vs.Q1 2023 |
|
|
Q2 2023 vs.Q2 2022 |
|
|
30-Jun-23 |
|
|
30-Jun-22 |
|
|
2023 vs. 2022 |
|
Mortgage servicing fees, net of fair value adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage servicing fees |
|
$ |
8,369 |
|
|
$ |
8,689 |
|
|
$ |
9,186 |
|
|
$ |
(320 |
) |
|
$ |
(817 |
) |
|
$ |
17,058 |
|
|
$ |
18,509 |
|
|
$ |
(1,451 |
) |
Mortgage servicing rights fair value adjustments |
|
|
(6,216 |
) |
|
|
(1,376 |
) |
|
|
2,257 |
|
|
|
(4,840 |
) |
|
|
(8,473 |
) |
|
|
(7,592 |
) |
|
|
3,345 |
|
|
|
(10,937 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total mortgage servicing fees, net of fair value adjustments |
|
|
2,153 |
|
|
|
7,313 |
|
|
|
11,443 |
|
|
|
(5,160 |
) |
|
|
(9,290 |
) |
|
|
9,466 |
|
|
|
21,854 |
|
|
|
(12,388 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) gain on sale of loans, including valuation on loans held-for-sale |
|
|
(61 |
) |
|
|
263 |
|
|
|
36 |
|
|
|
(324 |
) |
|
|
(97 |
) |
|
|
202 |
|
|
|
(1,498 |
) |
|
|
1,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading account profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (loss) on outstanding derivative positions |
|
|
246 |
|
|
|
(131 |
) |
|
|
(2 |
) |
|
|
377 |
|
|
|
248 |
|
|
|
115 |
|
|
|
|
|
|
|
115 |
|
Realized gains on closed derivative positions |
|
|
111 |
|
|
|
56 |
|
|
|
2,430 |
|
|
|
55 |
|
|
|
(2,319 |
) |
|
|
167 |
|
|
|
6,565 |
|
|
|
(6,398 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total trading account profit (loss) |
|
|
357 |
|
|
|
(75 |
) |
|
|
2,428 |
|
|
|
432 |
|
|
|
(2,071 |
) |
|
|
282 |
|
|
|
6,565 |
|
|
|
(6,283 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses on repurchased loans, including interest advances |
|
|
(133 |
) |
|
|
(101 |
) |
|
|
(332 |
) |
|
|
(32 |
) |
|
|
199 |
|
|
|
(234 |
) |
|
|
(481 |
) |
|
|
247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total mortgage banking activities |
|
$ |
2,316 |
|
|
$ |
7,400 |
|
|
$ |
13,575 |
|
|
$ |
(5,084 |
) |
|
$ |
(11,259 |
) |
|
$ |
9,716 |
|
|
$ |
26,440 |
|
|
$ |
(16,724 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Service Fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters ended |
|
|
Variance |
|
|
Six months ended |
|
|
Variance |
|
(In thousands) |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
30-Jun-22 |
|
|
Q2 2023 vs.Q1 2023 |
|
|
Q2 2023 vs.Q2 2022 |
|
|
30-Jun-23 |
|
|
30-Jun-22 |
|
|
2023 vs. 2022 |
|
Other service fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debit card fees |
|
$ |
13,600 |
|
|
$ |
13,166 |
|
|
$ |
12,882 |
|
|
$ |
434 |
|
|
$ |
718 |
|
|
$ |
26,766 |
|
|
$ |
24,661 |
|
|
$ |
2,105 |
|
Insurance fees |
|
|
14,625 |
|
|
|
13,873 |
|
|
|
12,017 |
|
|
|
752 |
|
|
|
2,608 |
|
|
|
28,498 |
|
|
|
26,173 |
|
|
|
2,325 |
|
Credit card fees |
|
|
42,644 |
|
|
|
40,498 |
|
|
|
38,155 |
|
|
|
2,146 |
|
|
|
4,489 |
|
|
|
83,142 |
|
|
|
71,797 |
|
|
|
11,345 |
|
Sale and administration of investment products |
|
|
6,076 |
|
|
|
6,558 |
|
|
|
6,017 |
|
|
|
(482 |
) |
|
|
59 |
|
|
|
12,634 |
|
|
|
11,808 |
|
|
|
826 |
|
Trust fees |
|
|
6,600 |
|
|
|
5,775 |
|
|
|
6,143 |
|
|
|
825 |
|
|
|
457 |
|
|
|
12,375 |
|
|
|
12,070 |
|
|
|
305 |
|
Other fees |
|
|
10,720 |
|
|
|
10,206 |
|
|
|
6,237 |
|
|
|
514 |
|
|
|
4,483 |
|
|
|
20,926 |
|
|
|
12,076 |
|
|
|
8,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other service fees |
|
$ |
94,265 |
|
|
$ |
90,076 |
|
|
$ |
81,451 |
|
|
$ |
4,189 |
|
|
$ |
12,814 |
|
|
$ |
184,341 |
|
|
$ |
158,585 |
|
|
$ |
25,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table H - Loans and Deposits
(Unaudited)
Loans - Ending Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance |
|
(In thousands) |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
30-Jun-22 |
|
|
Q2 2023 vs. Q1 2023 |
|
|
Q2 2023 vs. Q2 2022 |
|
Loans
held-in-portfolio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
16,368,300 |
|
|
$ |
16,005,261 |
|
|
$ |
14,545,301 |
|
|
$ |
363,039 |
|
|
$ |
1,822,999 |
|
Construction |
|
|
819,903 |
|
|
|
698,996 |
|
|
|
790,920 |
|
|
|
120,907 |
|
|
|
28,983 |
|
Leasing |
|
|
1,661,523 |
|
|
|
1,614,344 |
|
|
|
1,480,222 |
|
|
|
47,179 |
|
|
|
181,301 |
|
Mortgage |
|
|
7,449,078 |
|
|
|
7,405,907 |
|
|
|
7,261,955 |
|
|
|
43,171 |
|
|
|
187,123 |
|
Auto |
|
|
3,565,533 |
|
|
|
3,517,940 |
|
|
|
3,489,976 |
|
|
|
47,593 |
|
|
|
75,557 |
|
Consumer |
|
|
3,166,585 |
|
|
|
3,095,925 |
|
|
|
2,802,562 |
|
|
|
70,660 |
|
|
|
364,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
held-in-portfolio |
|
$ |
33,030,922 |
|
|
$ |
32,338,373 |
|
|
$ |
30,370,936 |
|
|
$ |
692,549 |
|
|
$ |
2,659,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held-for-sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage |
|
$ |
9,509 |
|
|
$ |
11,181 |
|
|
$ |
28,546 |
|
|
$ |
(1,672 |
) |
|
$ |
(19,037 |
) |
Consumer |
|
|
45,912 |
|
|
|
|
|
|
|
|
|
|
|
45,912 |
|
|
|
45,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
held-for-sale |
|
$ |
55,421 |
|
|
$ |
11,181 |
|
|
$ |
28,546 |
|
|
$ |
44,240 |
|
|
$ |
26,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
$ |
33,086,343 |
|
|
$ |
32,349,554 |
|
|
$ |
30,399,482 |
|
|
$ |
736,789 |
|
|
$ |
2,686,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits - Ending Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance |
|
(In thousands) |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
30-Jun-22 |
|
|
Q2 2023 vs. Q1 2023 |
|
|
Q2 2023 vs. Q2 2022 |
|
Demand deposits [1] |
|
$ |
27,690,840 |
|
|
$ |
26,191,672 |
|
|
$ |
27,798,243 |
|
|
$ |
1,499,168 |
|
|
$ |
(107,403 |
) |
Savings, NOW and money market deposits
(non-brokered) |
|
|
27,539,343 |
|
|
|
26,622,020 |
|
|
|
29,672,655 |
|
|
|
917,323 |
|
|
|
(2,133,312 |
) |
Savings, NOW and money market deposits (brokered) |
|
|
772,783 |
|
|
|
734,069 |
|
|
|
761,244 |
|
|
|
38,714 |
|
|
|
11,539 |
|
Time deposits (non-brokered) |
|
|
7,231,840 |
|
|
|
6,891,051 |
|
|
|
6,896,786 |
|
|
|
340,789 |
|
|
|
335,054 |
|
Time deposits (brokered CDs) |
|
|
770,012 |
|
|
|
515,076 |
|
|
|
198,736 |
|
|
|
254,936 |
|
|
|
571,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
$ |
64,004,818 |
|
|
$ |
60,953,888 |
|
|
$ |
65,327,664 |
|
|
$ |
3,050,930 |
|
|
$ |
(1,322,846 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] |
Includes interest and non-interest bearing demand deposits.
|
19
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table I - Liquidity Sources, Deposits and Borrowings
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity Sources |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
(In thousands) |
|
BPPR |
|
|
Popular U.S. |
|
|
Total |
|
|
BPPR |
|
|
Popular U.S. |
|
|
Total |
|
Unpledged securities and unused funding sources: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market (excess funds at the Federal Reserve Bank) |
|
$ |
7,664,753 |
|
|
$ |
922,564 |
|
|
$ |
8,587,317 |
|
|
$ |
5,181,531 |
|
|
$ |
909,613 |
|
|
$ |
6,091,144 |
|
Unpledged securities |
|
|
4,743,373 |
|
|
|
259,038 |
|
|
|
5,002,411 |
|
|
|
7,690,887 |
|
|
|
273,980 |
|
|
|
7,964,867 |
|
FHLB borrowing capacity |
|
|
2,044,073 |
|
|
|
1,376,597 |
|
|
|
3,420,670 |
|
|
|
1,623,246 |
|
|
|
1,127,316 |
|
|
|
2,750,562 |
|
Discount window of the Federal Reserve Bank borrowing capacity |
|
|
1,438,473 |
|
|
|
1,688,795 |
|
|
|
3,127,268 |
|
|
|
1,132,411 |
|
|
|
331,753 |
|
|
|
1,464,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available liquidity |
|
$ |
15,890,672 |
|
|
$ |
4,246,994 |
|
|
$ |
20,137,666 |
|
|
$ |
15,628,075 |
|
|
$ |
2,642,662 |
|
|
$ |
18,270,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-Jun-23 |
|
(In thousands) |
|
BPPR |
|
|
% of Total |
|
|
Popular U.S. |
|
|
% of Total |
|
|
Popular, Inc. (Consolidated) |
|
|
% of Total |
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits balances under $250,000 [1] |
|
$ |
24,393,322 |
|
|
|
44 |
% |
|
$ |
6,454,716 |
|
|
|
64 |
% |
|
$ |
30,848,038 |
|
|
|
48 |
% |
Transactional deposits balances over $250,000 |
|
|
9,263,514 |
|
|
|
17 |
% |
|
|
2,068,584 |
|
|
|
21 |
% |
|
|
11,332,098 |
|
|
|
18 |
% |
Time deposits balances over $250,000 |
|
|
2,089,714 |
|
|
|
4 |
% |
|
|
276,822 |
|
|
|
3 |
% |
|
|
2,366,536 |
|
|
|
4 |
% |
Foreign deposits |
|
|
457,218 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
% |
|
|
457,218 |
|
|
|
1 |
|
Collateralized public funds |
|
|
18,716,276 |
|
|
|
34 |
% |
|
|
284,652 |
|
|
|
3 |
% |
|
|
19,000,928 |
|
|
|
30 |
% |
Intercompany deposits |
|
|
157,213 |
|
|
|
|
% |
|
|
932,834 |
|
|
|
9 |
% |
|
|
|
|
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
$ |
55,077,257 |
|
|
|
100 |
% |
|
$ |
10,017,608 |
|
|
|
100 |
% |
|
$ |
64,004,818 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] |
Includes the first $250,000 in balances of transactional and time deposit accounts with balances in excess of
$250,000. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31-Mar-23 |
|
(In thousands) |
|
BPPR |
|
|
% of Total |
|
|
Popular U.S. |
|
|
% of Total |
|
|
Popular, Inc. (Consolidated) |
|
|
% of Total |
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits balances under $250,000 [1] |
|
$ |
24,823,608 |
|
|
|
47 |
% |
|
$ |
5,979,010 |
|
|
|
62 |
% |
|
$ |
30,802,618 |
|
|
|
51 |
% |
Transactional deposits balances over $250,000 |
|
|
9,503,832 |
|
|
|
18 |
% |
|
|
2,151,732 |
|
|
|
22 |
% |
|
|
11,655,564 |
|
|
|
19 |
% |
Time deposits balances over $250,000 |
|
|
1,869,810 |
|
|
|
4 |
% |
|
|
255,322 |
|
|
|
3 |
% |
|
|
2,125,132 |
|
|
|
3 |
% |
Foreign deposits |
|
|
412,444 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
% |
|
|
412,444 |
|
|
|
1 |
% |
Collateralized public funds |
|
|
15,712,622 |
|
|
|
30 |
% |
|
|
245,508 |
|
|
|
3 |
% |
|
|
15,958,130 |
|
|
|
26 |
% |
Intercompany deposits |
|
|
134,110 |
|
|
|
|
% |
|
|
986,943 |
|
|
|
10 |
% |
|
|
|
|
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
$ |
52,456,426 |
|
|
|
100 |
% |
|
$ |
9,618,515 |
|
|
|
100 |
% |
|
$ |
60,953,888 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] |
Includes the first $250,000 in balances of transactional and time deposit accounts with balances in excess of
$250,000. |
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
(In thousands) |
|
BPPR |
|
|
Popular U.S. |
|
|
All other entities |
|
|
Total |
|
|
BPPR |
|
|
Popular U.S. |
|
|
All other entities |
|
|
Total |
|
Assets sold under agreements to repurchase |
|
$ |
25,538 |
|
|
$ |
97,667 |
|
|
$ |
|
|
|
$ |
123,205 |
|
|
$ |
25,158 |
|
|
$ |
98,341 |
|
|
$ |
|
|
|
$ |
123,499 |
|
FHLB borrowings |
|
|
82,292 |
|
|
|
330,340 |
|
|
|
|
|
|
|
412,632 |
|
|
|
82,292 |
|
|
|
305,990 |
|
|
|
|
|
|
|
388,282 |
|
Federal discount window / bank term funding program (BTFP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured senior debt securities maturing on September 2023 |
|
|
|
|
|
|
|
|
|
|
299,743 |
|
|
|
299,743 |
|
|
|
|
|
|
|
|
|
|
|
299,426 |
|
|
|
299,426 |
|
Unsecured senior debt securities maturing on March 2028 |
|
|
|
|
|
|
|
|
|
|
393,342 |
|
|
|
393,342 |
|
|
|
|
|
|
|
|
|
|
|
393,093 |
|
|
|
393,093 |
|
Junior subordinated deferrable interest debentures |
|
|
|
|
|
|
|
|
|
|
198,332 |
|
|
|
198,332 |
|
|
|
|
|
|
|
|
|
|
|
198,326 |
|
|
|
198,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total borrowings |
|
$ |
107,830 |
|
|
$ |
428,007 |
|
|
$ |
891,417 |
|
|
$ |
1,427,254 |
|
|
$ |
107,450 |
|
|
$ |
404,331 |
|
|
$ |
890,845 |
|
|
$ |
1,402,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table J - Loan Delinquency -BPPR Operations
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-Jun-23 |
|
BPPR |
|
|
|
Past due |
|
|
|
|
|
|
|
|
Past due 90 days or more |
|
(In thousands) |
|
30-59 days |
|
|
60-89 days |
|
|
90 days or more |
|
|
Total past due |
|
|
Current |
|
|
Loans HIP |
|
|
Non-accrual loans |
|
|
Accruing loans |
|
Commercial multi-family |
|
$ |
3,778 |
|
|
$ |
179 |
|
|
$ |
184 |
|
|
$ |
4,141 |
|
|
$ |
292,736 |
|
|
$ |
296,877 |
|
|
$ |
184 |
|
|
$ |
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
|
177 |
|
|
|
512 |
|
|
|
22,942 |
|
|
|
23,631 |
|
|
|
2,882,616 |
|
|
|
2,906,247 |
|
|
|
22,942 |
|
|
|
|
|
Owner occupied |
|
|
1,241 |
|
|
|
700 |
|
|
|
35,832 |
|
|
|
37,773 |
|
|
|
1,390,285 |
|
|
|
1,428,058 |
|
|
|
35,832 |
|
|
|
|
|
Commercial and industrial |
|
|
2,597 |
|
|
|
728 |
|
|
|
32,846 |
|
|
|
36,171 |
|
|
|
4,002,652 |
|
|
|
4,038,823 |
|
|
|
29,758 |
|
|
|
3,088 |
|
Construction |
|
|
|
|
|
|
970 |
|
|
|
9,284 |
|
|
|
10,254 |
|
|
|
163,481 |
|
|
|
173,735 |
|
|
|
9,284 |
|
|
|
|
|
Mortgage |
|
|
221,187 |
|
|
|
88,955 |
|
|
|
449,930 |
|
|
|
760,072 |
|
|
|
5,408,216 |
|
|
|
6,168,288 |
|
|
|
194,219 |
|
|
|
255,711 |
|
Leasing |
|
|
13,160 |
|
|
|
3,811 |
|
|
|
4,743 |
|
|
|
21,714 |
|
|
|
1,639,809 |
|
|
|
1,661,523 |
|
|
|
4,743 |
|
|
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
9,506 |
|
|
|
6,311 |
|
|
|
14,185 |
|
|
|
30,002 |
|
|
|
1,027,370 |
|
|
|
1,057,372 |
|
|
|
|
|
|
|
14,185 |
|
Home equity lines of credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,570 |
|
|
|
2,570 |
|
|
|
|
|
|
|
|
|
Personal |
|
|
14,865 |
|
|
|
11,660 |
|
|
|
17,438 |
|
|
|
43,963 |
|
|
|
1,642,003 |
|
|
|
1,685,966 |
|
|
|
17,438 |
|
|
|
|
|
Auto |
|
|
75,879 |
|
|
|
18,422 |
|
|
|
36,204 |
|
|
|
130,505 |
|
|
|
3,435,028 |
|
|
|
3,565,533 |
|
|
|
36,204 |
|
|
|
|
|
Other |
|
|
512 |
|
|
|
274 |
|
|
|
1,901 |
|
|
|
2,687 |
|
|
|
132,605 |
|
|
|
135,292 |
|
|
|
1,735 |
|
|
|
166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
342,902 |
|
|
$ |
132,522 |
|
|
$ |
625,489 |
|
|
$ |
1,100,913 |
|
|
$ |
22,019,371 |
|
|
$ |
23,120,284 |
|
|
$ |
352,339 |
|
|
$ |
273,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31-Mar-23 |
|
BPPR |
|
|
|
Past due |
|
|
|
|
|
|
|
|
Past due 90 days or more |
|
(In thousands) |
|
30-59 days |
|
|
60-89 days |
|
|
90 days or more |
|
|
Total past due |
|
|
Current |
|
|
Loans HIP |
|
|
Non-accrual loans |
|
|
Accruing loans |
|
Commercial multi-family |
|
$ |
650 |
|
|
$ |
|
|
|
$ |
185 |
|
|
$ |
835 |
|
|
$ |
291,971 |
|
|
$ |
292,806 |
|
|
$ |
185 |
|
|
$ |
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
|
2,739 |
|
|
|
1,584 |
|
|
|
22,856 |
|
|
|
27,179 |
|
|
|
2,858,304 |
|
|
|
2,885,483 |
|
|
|
22,856 |
|
|
|
|
|
Owner occupied |
|
|
21,496 |
|
|
|
|
|
|
|
37,779 |
|
|
|
59,275 |
|
|
|
1,438,228 |
|
|
|
1,497,503 |
|
|
|
37,779 |
|
|
|
|
|
Commercial and industrial |
|
|
17,934 |
|
|
|
793 |
|
|
|
31,847 |
|
|
|
50,574 |
|
|
|
3,883,859 |
|
|
|
3,934,433 |
|
|
|
30,132 |
|
|
|
1,715 |
|
Construction |
|
|
8,081 |
|
|
|
|
|
|
|
|
|
|
|
8,081 |
|
|
|
147,268 |
|
|
|
155,349 |
|
|
|
|
|
|
|
|
|
Mortgage |
|
|
183,187 |
|
|
|
81,729 |
|
|
|
515,752 |
|
|
|
780,668 |
|
|
|
5,336,016 |
|
|
|
6,116,684 |
|
|
|
224,075 |
|
|
|
291,677 |
|
Leasing |
|
|
12,301 |
|
|
|
2,605 |
|
|
|
6,103 |
|
|
|
21,009 |
|
|
|
1,593,335 |
|
|
|
1,614,344 |
|
|
|
6,103 |
|
|
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
7,162 |
|
|
|
5,823 |
|
|
|
12,061 |
|
|
|
25,046 |
|
|
|
1,021,129 |
|
|
|
1,046,175 |
|
|
|
|
|
|
|
12,061 |
|
Home equity lines of credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,865 |
|
|
|
2,865 |
|
|
|
|
|
|
|
|
|
Personal |
|
|
14,131 |
|
|
|
8,990 |
|
|
|
17,427 |
|
|
|
40,548 |
|
|
|
1,572,370 |
|
|
|
1,612,918 |
|
|
|
17,412 |
|
|
|
15 |
|
Auto |
|
|
60,324 |
|
|
|
12,684 |
|
|
|
39,516 |
|
|
|
112,524 |
|
|
|
3,405,416 |
|
|
|
3,517,940 |
|
|
|
39,516 |
|
|
|
|
|
Other |
|
|
1,264 |
|
|
|
49 |
|
|
|
1,091 |
|
|
|
2,404 |
|
|
|
127,608 |
|
|
|
130,012 |
|
|
|
921 |
|
|
|
170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
329,269 |
|
|
$ |
114,257 |
|
|
$ |
684,617 |
|
|
$ |
1,128,143 |
|
|
$ |
21,678,369 |
|
|
$ |
22,806,512 |
|
|
$ |
378,979 |
|
|
$ |
305,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance |
|
|
|
Past due |
|
|
|
|
|
|
|
|
Past due 90 days or more |
|
(In thousands) |
|
30-59 days |
|
|
60-89 days |
|
|
90 days or more |
|
|
Total past due |
|
|
Current |
|
|
Loans HIP |
|
|
Non-accrual loans |
|
|
Accruing loans |
|
Commercial multi-family |
|
$ |
3,128 |
|
|
$ |
179 |
|
|
$ |
(1 |
) |
|
$ |
3,306 |
|
|
$ |
765 |
|
|
$ |
4,071 |
|
|
$ |
(1 |
) |
|
$ |
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
|
(2,562 |
) |
|
|
(1,072 |
) |
|
|
86 |
|
|
|
(3,548 |
) |
|
|
24,312 |
|
|
|
20,764 |
|
|
|
86 |
|
|
|
|
|
Owner occupied |
|
|
(20,255 |
) |
|
|
700 |
|
|
|
(1,947 |
) |
|
|
(21,502 |
) |
|
|
(47,943 |
) |
|
|
(69,445 |
) |
|
|
(1,947 |
) |
|
|
|
|
Commercial and industrial |
|
|
(15,337 |
) |
|
|
(65 |
) |
|
|
999 |
|
|
|
(14,403 |
) |
|
|
118,793 |
|
|
|
104,390 |
|
|
|
(374 |
) |
|
|
1,373 |
|
Construction |
|
|
(8,081 |
) |
|
|
970 |
|
|
|
9,284 |
|
|
|
2,173 |
|
|
|
16,213 |
|
|
|
18,386 |
|
|
|
9,284 |
|
|
|
|
|
Mortgage |
|
|
38,000 |
|
|
|
7,226 |
|
|
|
(65,822 |
) |
|
|
(20,596 |
) |
|
|
72,200 |
|
|
|
51,604 |
|
|
|
(29,856 |
) |
|
|
(35,966 |
) |
Leasing |
|
|
859 |
|
|
|
1,206 |
|
|
|
(1,360 |
) |
|
|
705 |
|
|
|
46,474 |
|
|
|
47,179 |
|
|
|
(1,360 |
) |
|
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
2,344 |
|
|
|
488 |
|
|
|
2,124 |
|
|
|
4,956 |
|
|
|
6,241 |
|
|
|
11,197 |
|
|
|
|
|
|
|
2,124 |
|
Home equity lines of credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(295 |
) |
|
|
(295 |
) |
|
|
|
|
|
|
|
|
Personal |
|
|
734 |
|
|
|
2,670 |
|
|
|
11 |
|
|
|
3,415 |
|
|
|
69,633 |
|
|
|
73,048 |
|
|
|
26 |
|
|
|
(15 |
) |
Auto |
|
|
15,555 |
|
|
|
5,738 |
|
|
|
(3,312 |
) |
|
|
17,981 |
|
|
|
29,612 |
|
|
|
47,593 |
|
|
|
(3,312 |
) |
|
|
|
|
Other |
|
|
(752 |
) |
|
|
225 |
|
|
|
810 |
|
|
|
283 |
|
|
|
4,997 |
|
|
|
5,280 |
|
|
|
814 |
|
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
13,633 |
|
|
$ |
18,265 |
|
|
$ |
(59,128 |
) |
|
$ |
(27,230 |
) |
|
$ |
341,002 |
|
|
$ |
313,772 |
|
|
$ |
(26,640 |
) |
|
$ |
(32,488 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table K - Loan Delinquency - Popular U.S. Operations
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-Jun-23 |
|
Popular U.S. |
|
|
|
Past due |
|
|
|
|
|
|
|
|
Past due 90 days or more |
|
(In thousands) |
|
30-59 days |
|
|
60-89 days |
|
|
90 days or more |
|
|
Total past due |
|
|
Current |
|
|
Loans HIP |
|
|
Non-accrual loans |
|
|
Accruing loans |
|
Commercial multi-family |
|
$ |
3,137 |
|
|
$ |
|
|
|
$ |
418 |
|
|
$ |
3,555 |
|
|
$ |
2,031,067 |
|
|
$ |
2,034,622 |
|
|
$ |
418 |
|
|
$ |
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
|
632 |
|
|
|
|
|
|
|
119 |
|
|
|
751 |
|
|
|
1,837,258 |
|
|
|
1,838,009 |
|
|
|
119 |
|
|
|
|
|
Owner occupied |
|
|
1,806 |
|
|
|
|
|
|
|
5,095 |
|
|
|
6,901 |
|
|
|
1,606,439 |
|
|
|
1,613,340 |
|
|
|
5,095 |
|
|
|
|
|
Commercial and industrial |
|
|
2,464 |
|
|
|
1,738 |
|
|
|
6,155 |
|
|
|
10,357 |
|
|
|
2,201,967 |
|
|
|
2,212,324 |
|
|
|
5,978 |
|
|
|
177 |
|
Construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
646,168 |
|
|
|
646,168 |
|
|
|
|
|
|
|
|
|
Mortgage |
|
|
1,101 |
|
|
|
5,435 |
|
|
|
14,577 |
|
|
|
21,113 |
|
|
|
1,259,677 |
|
|
|
1,280,790 |
|
|
|
14,577 |
|
|
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17 |
|
|
|
17 |
|
|
|
|
|
|
|
|
|
Home equity lines of credit |
|
|
464 |
|
|
|
49 |
|
|
|
4,252 |
|
|
|
4,765 |
|
|
|
61,105 |
|
|
|
65,870 |
|
|
|
4,252 |
|
|
|
|
|
Personal |
|
|
2,766 |
|
|
|
1,725 |
|
|
|
2,726 |
|
|
|
7,217 |
|
|
|
203,411 |
|
|
|
210,628 |
|
|
|
2,726 |
|
|
|
|
|
Other |
|
|
|
|
|
|
154 |
|
|
|
|
|
|
|
154 |
|
|
|
8,716 |
|
|
|
8,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
12,370 |
|
|
$ |
9,101 |
|
|
$ |
33,342 |
|
|
$ |
54,813 |
|
|
$ |
9,855,825 |
|
|
$ |
9,910,638 |
|
|
$ |
33,165 |
|
|
$ |
177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31-Mar-23 |
|
Popular U.S. |
|
|
|
Past due |
|
|
|
|
|
|
|
|
Past due 90 days or more |
|
(In thousands) |
|
30-59 days |
|
|
60-89 days |
|
|
90 days or more |
|
|
Total past due |
|
|
Current |
|
|
Loans HIP |
|
|
Non-accrual loans |
|
|
Accruing loans |
|
Commercial multi-family |
|
$ |
|
|
|
$ |
|
|
|
$ |
421 |
|
|
$ |
421 |
|
|
$ |
2,043,130 |
|
|
$ |
2,043,551 |
|
|
$ |
421 |
|
|
$ |
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
|
16,033 |
|
|
|
|
|
|
|
207 |
|
|
|
16,240 |
|
|
|
1,748,952 |
|
|
|
1,765,192 |
|
|
|
207 |
|
|
|
|
|
Owner occupied |
|
|
18,042 |
|
|
|
|
|
|
|
5,095 |
|
|
|
23,137 |
|
|
|
1,497,947 |
|
|
|
1,521,084 |
|
|
|
5,095 |
|
|
|
|
|
Commercial and industrial |
|
|
13,779 |
|
|
|
3 |
|
|
|
5,570 |
|
|
|
19,352 |
|
|
|
2,045,857 |
|
|
|
2,065,209 |
|
|
|
5,325 |
|
|
|
245 |
|
Construction |
|
|
7,165 |
|
|
|
|
|
|
|
|
|
|
|
7,165 |
|
|
|
536,482 |
|
|
|
543,647 |
|
|
|
|
|
|
|
|
|
Mortgage |
|
|
22,041 |
|
|
|
1,499 |
|
|
|
14,719 |
|
|
|
38,259 |
|
|
|
1,250,964 |
|
|
|
1,289,223 |
|
|
|
14,719 |
|
|
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21 |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
Home equity lines of credit |
|
|
496 |
|
|
|
70 |
|
|
|
4,618 |
|
|
|
5,184 |
|
|
|
61,838 |
|
|
|
67,022 |
|
|
|
4,618 |
|
|
|
|
|
Personal |
|
|
1,900 |
|
|
|
1,259 |
|
|
|
2,505 |
|
|
|
5,664 |
|
|
|
222,487 |
|
|
|
228,151 |
|
|
|
2,505 |
|
|
|
|
|
Other |
|
|
2 |
|
|
|
|
|
|
|
514 |
|
|
|
516 |
|
|
|
8,245 |
|
|
|
8,761 |
|
|
|
514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
79,458 |
|
|
$ |
2,831 |
|
|
$ |
33,649 |
|
|
$ |
115,938 |
|
|
$ |
9,415,923 |
|
|
$ |
9,531,861 |
|
|
$ |
33,404 |
|
|
$ |
245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance |
|
|
|
Past due |
|
|
|
|
|
|
|
|
Past due 90 days or more |
|
(In thousands) |
|
30-59 days |
|
|
60-89 days |
|
|
90 days or more |
|
|
Total past due |
|
|
Current |
|
|
Loans HIP |
|
|
Non-accrual loans |
|
|
Accruing loans |
|
Commercial multi-family |
|
$ |
3,137 |
|
|
$ |
|
|
|
$ |
(3 |
) |
|
$ |
3,134 |
|
|
$ |
(12,063 |
) |
|
$ |
(8,929 |
) |
|
$ |
(3 |
) |
|
$ |
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
|
(15,401 |
) |
|
|
|
|
|
|
(88 |
) |
|
|
(15,489 |
) |
|
|
88,306 |
|
|
|
72,817 |
|
|
|
(88 |
) |
|
|
|
|
Owner occupied |
|
|
(16,236 |
) |
|
|
|
|
|
|
|
|
|
|
(16,236 |
) |
|
|
108,492 |
|
|
|
92,256 |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
(11,315 |
) |
|
|
1,735 |
|
|
|
585 |
|
|
|
(8,995 |
) |
|
|
156,110 |
|
|
|
147,115 |
|
|
|
653 |
|
|
|
(68 |
) |
Construction |
|
|
(7,165 |
) |
|
|
|
|
|
|
|
|
|
|
(7,165 |
) |
|
|
109,686 |
|
|
|
102,521 |
|
|
|
|
|
|
|
|
|
Mortgage |
|
|
(20,940 |
) |
|
|
3,936 |
|
|
|
(142 |
) |
|
|
(17,146 |
) |
|
|
8,713 |
|
|
|
(8,433 |
) |
|
|
(142 |
) |
|
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4 |
) |
|
|
(4 |
) |
|
|
|
|
|
|
|
|
Home equity lines of credit |
|
|
(32 |
) |
|
|
(21 |
) |
|
|
(366 |
) |
|
|
(419 |
) |
|
|
(733 |
) |
|
|
(1,152 |
) |
|
|
(366 |
) |
|
|
|
|
Personal |
|
|
866 |
|
|
|
466 |
|
|
|
221 |
|
|
|
1,553 |
|
|
|
(19,076 |
) |
|
|
(17,523 |
) |
|
|
221 |
|
|
|
|
|
Other |
|
|
(2 |
) |
|
|
154 |
|
|
|
(514 |
) |
|
|
(362 |
) |
|
|
471 |
|
|
|
109 |
|
|
|
(514 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
(67,088 |
) |
|
$ |
6,270 |
|
|
$ |
(307 |
) |
|
$ |
(61,125 |
) |
|
$ |
439,902 |
|
|
$ |
378,777 |
|
|
$ |
(239 |
) |
|
$ |
(68 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table L - Loan Delinquency - Consolidated
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-Jun-23 |
|
Popular, Inc. |
|
|
|
Past due |
|
|
|
|
|
|
|
|
Past due 90 days or more |
|
|
|
30-59 |
|
|
60-89 |
|
|
90 days |
|
|
Total |
|
|
|
|
|
|
|
|
Non-accrual |
|
|
Accruing |
|
(In thousands) |
|
days |
|
|
days |
|
|
or more |
|
|
past due |
|
|
Current |
|
|
Loans HIP |
|
|
loans |
|
|
loans |
|
Commercial multi-family |
|
$ |
6,915 |
|
|
$ |
179 |
|
|
$ |
602 |
|
|
$ |
7,696 |
|
|
$ |
2,323,803 |
|
|
$ |
2,331,499 |
|
|
$ |
602 |
|
|
$ |
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
|
809 |
|
|
|
512 |
|
|
|
23,061 |
|
|
|
24,382 |
|
|
|
4,719,874 |
|
|
|
4,744,256 |
|
|
|
23,061 |
|
|
|
|
|
Owner occupied |
|
|
3,047 |
|
|
|
700 |
|
|
|
40,927 |
|
|
|
44,674 |
|
|
|
2,996,724 |
|
|
|
3,041,398 |
|
|
|
40,927 |
|
|
|
|
|
Commercial and industrial |
|
|
5,061 |
|
|
|
2,466 |
|
|
|
39,001 |
|
|
|
46,528 |
|
|
|
6,204,619 |
|
|
|
6,251,147 |
|
|
|
35,736 |
|
|
|
3,265 |
|
Construction |
|
|
|
|
|
|
970 |
|
|
|
9,284 |
|
|
|
10,254 |
|
|
|
809,649 |
|
|
|
819,903 |
|
|
|
9,284 |
|
|
|
|
|
Mortgage |
|
|
222,288 |
|
|
|
94,390 |
|
|
|
464,507 |
|
|
|
781,185 |
|
|
|
6,667,893 |
|
|
|
7,449,078 |
|
|
|
208,796 |
|
|
|
255,711 |
|
Leasing |
|
|
13,160 |
|
|
|
3,811 |
|
|
|
4,743 |
|
|
|
21,714 |
|
|
|
1,639,809 |
|
|
|
1,661,523 |
|
|
|
4,743 |
|
|
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
9,506 |
|
|
|
6,311 |
|
|
|
14,185 |
|
|
|
30,002 |
|
|
|
1,027,387 |
|
|
|
1,057,389 |
|
|
|
|
|
|
|
14,185 |
|
Home equity lines of credit |
|
|
464 |
|
|
|
49 |
|
|
|
4,252 |
|
|
|
4,765 |
|
|
|
63,675 |
|
|
|
68,440 |
|
|
|
4,252 |
|
|
|
|
|
Personal |
|
|
17,631 |
|
|
|
13,385 |
|
|
|
20,164 |
|
|
|
51,180 |
|
|
|
1,845,414 |
|
|
|
1,896,594 |
|
|
|
20,164 |
|
|
|
|
|
Auto |
|
|
75,879 |
|
|
|
18,422 |
|
|
|
36,204 |
|
|
|
130,505 |
|
|
|
3,435,028 |
|
|
|
3,565,533 |
|
|
|
36,204 |
|
|
|
|
|
Other |
|
|
512 |
|
|
|
428 |
|
|
|
1,901 |
|
|
|
2,841 |
|
|
|
141,321 |
|
|
|
144,162 |
|
|
|
1,735 |
|
|
|
166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
355,272 |
|
|
$ |
141,623 |
|
|
$ |
658,831 |
|
|
$ |
1,155,726 |
|
|
$ |
31,875,196 |
|
|
$ |
33,030,922 |
|
|
$ |
385,504 |
|
|
$ |
273,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31-Mar-23 |
|
Popular, Inc. |
|
|
|
Past due |
|
|
|
|
|
|
|
|
Past due 90 days or more |
|
|
|
30-59 |
|
|
60-89 |
|
|
90 days |
|
|
Total |
|
|
|
|
|
|
|
|
Non-accrual |
|
|
Accruing |
|
(In thousands) |
|
days |
|
|
days |
|
|
or more |
|
|
past due |
|
|
Current |
|
|
Loans HIP |
|
|
loans |
|
|
loans |
|
Commercial multi-family |
|
$ |
650 |
|
|
$ |
|
|
|
$ |
606 |
|
|
$ |
1,256 |
|
|
$ |
2,335,101 |
|
|
$ |
2,336,357 |
|
|
$ |
606 |
|
|
$ |
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
|
18,772 |
|
|
|
1,584 |
|
|
|
23,063 |
|
|
|
43,419 |
|
|
|
4,607,256 |
|
|
|
4,650,675 |
|
|
|
23,063 |
|
|
|
|
|
Owner occupied |
|
|
39,538 |
|
|
|
|
|
|
|
42,874 |
|
|
|
82,412 |
|
|
|
2,936,175 |
|
|
|
3,018,587 |
|
|
|
42,874 |
|
|
|
|
|
Commercial and industrial |
|
|
31,713 |
|
|
|
796 |
|
|
|
37,417 |
|
|
|
69,926 |
|
|
|
5,929,716 |
|
|
|
5,999,642 |
|
|
|
35,457 |
|
|
|
1,960 |
|
Construction |
|
|
15,246 |
|
|
|
|
|
|
|
|
|
|
|
15,246 |
|
|
|
683,750 |
|
|
|
698,996 |
|
|
|
|
|
|
|
|
|
Mortgage |
|
|
205,228 |
|
|
|
83,228 |
|
|
|
530,471 |
|
|
|
818,927 |
|
|
|
6,586,980 |
|
|
|
7,405,907 |
|
|
|
238,794 |
|
|
|
291,677 |
|
Leasing |
|
|
12,301 |
|
|
|
2,605 |
|
|
|
6,103 |
|
|
|
21,009 |
|
|
|
1,593,335 |
|
|
|
1,614,344 |
|
|
|
6,103 |
|
|
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
7,162 |
|
|
|
5,823 |
|
|
|
12,061 |
|
|
|
25,046 |
|
|
|
1,021,150 |
|
|
|
1,046,196 |
|
|
|
|
|
|
|
12,061 |
|
Home equity lines of credit |
|
|
496 |
|
|
|
70 |
|
|
|
4,618 |
|
|
|
5,184 |
|
|
|
64,703 |
|
|
|
69,887 |
|
|
|
4,618 |
|
|
|
|
|
Personal |
|
|
16,031 |
|
|
|
10,249 |
|
|
|
19,932 |
|
|
|
46,212 |
|
|
|
1,794,857 |
|
|
|
1,841,069 |
|
|
|
19,917 |
|
|
|
15 |
|
Auto |
|
|
60,324 |
|
|
|
12,684 |
|
|
|
39,516 |
|
|
|
112,524 |
|
|
|
3,405,416 |
|
|
|
3,517,940 |
|
|
|
39,516 |
|
|
|
|
|
Other |
|
|
1,266 |
|
|
|
49 |
|
|
|
1,605 |
|
|
|
2,920 |
|
|
|
135,853 |
|
|
|
138,773 |
|
|
|
1,435 |
|
|
|
170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
408,727 |
|
|
$ |
117,088 |
|
|
$ |
718,266 |
|
|
$ |
1,244,081 |
|
|
$ |
31,094,292 |
|
|
$ |
32,338,373 |
|
|
$ |
412,383 |
|
|
$ |
305,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance |
|
|
|
Past due |
|
|
|
|
|
|
|
|
Past due 90 days or more |
|
|
|
30-59 |
|
|
60-89 |
|
|
90 days |
|
|
Total |
|
|
|
|
|
|
|
|
Non-accrual |
|
|
Accruing |
|
(In thousands) |
|
days |
|
|
days |
|
|
or more |
|
|
past due |
|
|
Current |
|
|
Loans HIP |
|
|
loans |
|
|
loans |
|
Commercial multi-family |
|
$ |
6,265 |
|
|
$ |
179 |
|
|
$ |
(4 |
) |
|
$ |
6,440 |
|
|
$ |
(11,298 |
) |
|
$ |
(4,858 |
) |
|
$ |
(4 |
) |
|
$ |
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
|
(17,963 |
) |
|
|
(1,072 |
) |
|
|
(2 |
) |
|
|
(19,037 |
) |
|
|
112,618 |
|
|
|
93,581 |
|
|
|
(2 |
) |
|
|
|
|
Owner occupied |
|
|
(36,491 |
) |
|
|
700 |
|
|
|
(1,947 |
) |
|
|
(37,738 |
) |
|
|
60,549 |
|
|
|
22,811 |
|
|
|
(1,947 |
) |
|
|
|
|
Commercial and industrial |
|
|
(26,652 |
) |
|
|
1,670 |
|
|
|
1,584 |
|
|
|
(23,398 |
) |
|
|
274,903 |
|
|
|
251,505 |
|
|
|
279 |
|
|
|
1,305 |
|
Construction |
|
|
(15,246 |
) |
|
|
970 |
|
|
|
9,284 |
|
|
|
(4,992 |
) |
|
|
125,899 |
|
|
|
120,907 |
|
|
|
9,284 |
|
|
|
|
|
Mortgage |
|
|
17,060 |
|
|
|
11,162 |
|
|
|
(65,964 |
) |
|
|
(37,742 |
) |
|
|
80,913 |
|
|
|
43,171 |
|
|
|
(29,998 |
) |
|
|
(35,966 |
) |
Leasing |
|
|
859 |
|
|
|
1,206 |
|
|
|
(1,360 |
) |
|
|
705 |
|
|
|
46,474 |
|
|
|
47,179 |
|
|
|
(1,360 |
) |
|
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
2,344 |
|
|
|
488 |
|
|
|
2,124 |
|
|
|
4,956 |
|
|
|
6,237 |
|
|
|
11,193 |
|
|
|
|
|
|
|
2,124 |
|
Home equity lines of credit |
|
|
(32 |
) |
|
|
(21 |
) |
|
|
(366 |
) |
|
|
(419 |
) |
|
|
(1,028 |
) |
|
|
(1,447 |
) |
|
|
(366 |
) |
|
|
|
|
Personal |
|
|
1,600 |
|
|
|
3,136 |
|
|
|
232 |
|
|
|
4,968 |
|
|
|
50,557 |
|
|
|
55,525 |
|
|
|
247 |
|
|
|
(15 |
) |
Auto |
|
|
15,555 |
|
|
|
5,738 |
|
|
|
(3,312 |
) |
|
|
17,981 |
|
|
|
29,612 |
|
|
|
47,593 |
|
|
|
(3,312 |
) |
|
|
|
|
Other |
|
|
(754 |
) |
|
|
379 |
|
|
|
296 |
|
|
|
(79 |
) |
|
|
5,468 |
|
|
|
5,389 |
|
|
|
300 |
|
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
(53,455 |
) |
|
$ |
24,535 |
|
|
$ |
(59,435 |
) |
|
$ |
(88,355 |
) |
|
$ |
780,904 |
|
|
$ |
692,549 |
|
|
$ |
(26,879 |
) |
|
$ |
(32,556 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table M - Non-Performing Assets
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance |
|
(In thousands) |
|
30-Jun-23 |
|
|
As a % of loans HIP by category |
|
|
31-Mar-23 |
|
|
As a % of loans HIP by category |
|
|
30-Jun-22 |
|
|
As a % of loans HIP by category |
|
|
Q2 2023 vs. Q1 2023 |
|
|
Q2 2023 vs. Q2 2022 |
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
100,326 |
|
|
|
0.6 |
% |
|
$ |
102,000 |
|
|
|
0.6 |
% |
|
$ |
103,939 |
|
|
|
0.7 |
% |
|
$ |
(1,674 |
) |
|
$ |
(3,613 |
) |
Construction |
|
|
9,284 |
|
|
|
1.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,284 |
|
|
|
9,284 |
|
Leasing |
|
|
4,743 |
|
|
|
0.3 |
|
|
|
6,103 |
|
|
|
0.4 |
|
|
|
4,665 |
|
|
|
0.3 |
|
|
|
(1,360 |
) |
|
|
78 |
|
Mortgage |
|
|
208,796 |
|
|
|
2.8 |
|
|
|
238,794 |
|
|
|
3.2 |
|
|
|
304,862 |
|
|
|
4.2 |
|
|
|
(29,998 |
) |
|
|
(96,066 |
) |
Auto |
|
|
36,204 |
|
|
|
1.0 |
|
|
|
39,516 |
|
|
|
1.1 |
|
|
|
28,045 |
|
|
|
0.8 |
|
|
|
(3,312 |
) |
|
|
8,159 |
|
Consumer |
|
|
26,151 |
|
|
|
0.8 |
|
|
|
25,970 |
|
|
|
0.8 |
|
|
|
36,413 |
|
|
|
1.3 |
|
|
|
181 |
|
|
|
(10,262 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing loans
held-in-portfolio |
|
|
385,504 |
|
|
|
1.2 |
% |
|
|
412,383 |
|
|
|
1.3 |
% |
|
|
477,924 |
|
|
|
1.6 |
% |
|
|
(26,879 |
) |
|
|
(92,420 |
) |
Other real estate owned (OREO) |
|
|
86,216 |
|
|
|
|
|
|
|
91,721 |
|
|
|
|
|
|
|
92,137 |
|
|
|
|
|
|
|
(5,505 |
) |
|
|
(5,921 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing assets [1] |
|
$ |
471,720 |
|
|
|
|
|
|
$ |
504,104 |
|
|
|
|
|
|
$ |
570,061 |
|
|
|
|
|
|
$ |
(32,384 |
) |
|
$ |
(98,341 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans past due 90 days or more [2] |
|
$ |
273,327 |
|
|
|
|
|
|
$ |
305,883 |
|
|
|
|
|
|
$ |
407,298 |
|
|
|
|
|
|
$ |
(32,556 |
) |
|
$ |
(133,971 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets to total assets |
|
|
0.67 |
% |
|
|
|
|
|
|
0.74 |
% |
|
|
|
|
|
|
0.80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans held-in-portfolio to loans held-in-portfolio |
|
|
1.17 |
|
|
|
|
|
|
|
1.28 |
|
|
|
|
|
|
|
1.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to loans held-in-portfolio |
|
|
2.12 |
|
|
|
|
|
|
|
2.13 |
|
|
|
|
|
|
|
2.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to non-performing loans,
excluding loans held-for-sale |
|
|
181.63 |
|
|
|
|
|
|
|
167.11 |
|
|
|
|
|
|
|
142.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] |
There were no non-performing loans held-for-sale as of June 30, 2023, March 31, 2023 and June 30, 2022. |
[2] |
It is the Corporations policy to report delinquent residential mortgage loans insured by FHA or
guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $7 million at June 30, 2023,
related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (March 31, 2023 - $7 million; June 30, 2022 - $11
million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected
(rebooked) on the financial statements of BPPR with an offsetting liability. These balances include $133 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2023
(March 31, 2023 - $167 million; June 30, 2022 - $237 million). Furthermore, the Corporation has approximately $39 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the
guaranteed nature of the loans, it is the Corporations policy to exclude these balances from non-performing assets (March 31, 2023 - $40 million; June 30, 2022 - $43 million).
|
28
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table N - Activity in Non-Performing Loans
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans held-in-portfolio: |
|
|
|
|
|
|
Quarter ended |
|
|
Quarter ended |
|
|
|
30-Jun-23 |
|
|
31-Mar-23 |
|
(In thousands) |
|
BPPR |
|
|
Popular U.S. |
|
|
Popular, Inc. |
|
|
BPPR |
|
|
Popular U.S. |
|
|
Popular, Inc. |
|
Beginning balance NPLs |
|
$ |
90,952 |
|
|
$ |
11,048 |
|
|
$ |
102,000 |
|
|
$ |
82,171 |
|
|
$ |
10,868 |
|
|
$ |
93,039 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New non-performing loans |
|
|
3,203 |
|
|
|
4,631 |
|
|
|
7,834 |
|
|
|
16,594 |
|
|
|
5,719 |
|
|
|
22,313 |
|
Advances on existing non-performing loans |
|
|
|
|
|
|
2 |
|
|
|
2 |
|
|
|
|
|
|
|
26 |
|
|
|
26 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans transferred to OREO |
|
|
(21 |
) |
|
|
|
|
|
|
(21 |
) |
|
|
(287 |
) |
|
|
|
|
|
|
(287 |
) |
Non-performing loans
charged-off |
|
|
(595 |
) |
|
|
(2,175 |
) |
|
|
(2,770 |
) |
|
|
(673 |
) |
|
|
(216 |
) |
|
|
(889 |
) |
Loans returned to accrual status / loan collections |
|
|
(4,823 |
) |
|
|
(1,896 |
) |
|
|
(6,719 |
) |
|
|
(6,853 |
) |
|
|
(5,349 |
) |
|
|
(12,202 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance NPLs |
|
$ |
88,716 |
|
|
$ |
11,610 |
|
|
$ |
100,326 |
|
|
$ |
90,952 |
|
|
$ |
11,048 |
|
|
$ |
102,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction loans held-in-portfolio: |
|
|
|
Quarter ended |
|
|
Quarter ended |
|
|
|
30-Jun-23 |
|
|
31-Mar-23 |
|
(In thousands) |
|
BPPR |
|
|
Popular U.S. |
|
|
Popular, Inc. |
|
|
BPPR |
|
|
Popular U.S. |
|
|
Popular, Inc. |
|
Beginning balance NPLs |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New non-performing loans |
|
|
9,284 |
|
|
|
|
|
|
|
9,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance NPLs |
|
$ |
9,284 |
|
|
$ |
|
|
|
$ |
9,284 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans held-in-portfolio: |
|
|
|
|
|
|
Quarter ended |
|
|
Quarter ended |
|
|
|
30-Jun-23 |
|
|
31-Mar-23 |
|
(In thousands) |
|
BPPR |
|
|
Popular U.S. |
|
|
Popular, Inc. |
|
|
BPPR |
|
|
Popular U.S. |
|
|
Popular, Inc. |
|
Beginning balance NPLs |
|
$ |
224,075 |
|
|
$ |
14,719 |
|
|
$ |
238,794 |
|
|
$ |
242,391 |
|
|
$ |
20,488 |
|
|
$ |
262,879 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New non-performing loans |
|
|
27,518 |
|
|
|
4,457 |
|
|
|
31,975 |
|
|
|
34,019 |
|
|
|
2,812 |
|
|
|
36,831 |
|
Advances on existing non-performing loans |
|
|
|
|
|
|
76 |
|
|
|
76 |
|
|
|
|
|
|
|
39 |
|
|
|
39 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans transferred to OREO |
|
|
(9,226 |
) |
|
|
|
|
|
|
(9,226 |
) |
|
|
(10,586 |
) |
|
|
(58 |
) |
|
|
(10,644 |
) |
Non-performing loans
charged-off |
|
|
271 |
|
|
|
|
|
|
|
271 |
|
|
|
(503 |
) |
|
|
|
|
|
|
(503 |
) |
Loans returned to accrual status / loan collections |
|
|
(48,419 |
) |
|
|
(4,675 |
) |
|
|
(53,094 |
) |
|
|
(41,246 |
) |
|
|
(8,562 |
) |
|
|
(49,808 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance NPLs |
|
$ |
194,219 |
|
|
$ |
14,577 |
|
|
$ |
208,796 |
|
|
$ |
224,075 |
|
|
$ |
14,719 |
|
|
$ |
238,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing loans held-in-portfolio (excluding consumer): |
|
|
|
|
|
|
Quarter ended |
|
|
Quarter ended |
|
|
|
30-Jun-23 |
|
|
31-Mar-23 |
|
(In thousands) |
|
BPPR |
|
|
Popular U.S. |
|
|
Popular, Inc. |
|
|
BPPR |
|
|
Popular U.S. |
|
|
Popular, Inc. |
|
Beginning balance NPLs |
|
$ |
315,027 |
|
|
$ |
25,767 |
|
|
$ |
340,794 |
|
|
$ |
324,562 |
|
|
$ |
31,356 |
|
|
$ |
355,918 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New non-performing loans |
|
|
40,005 |
|
|
|
9,088 |
|
|
|
49,093 |
|
|
|
50,613 |
|
|
|
8,531 |
|
|
|
59,144 |
|
Advances on existing non-performing loans |
|
|
|
|
|
|
78 |
|
|
|
78 |
|
|
|
|
|
|
|
65 |
|
|
|
65 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans transferred to OREO |
|
|
(9,247 |
) |
|
|
|
|
|
|
(9,247 |
) |
|
|
(10,873 |
) |
|
|
(58 |
) |
|
|
(10,931 |
) |
Non-performing loans
charged-off |
|
|
(324 |
) |
|
|
(2,175 |
) |
|
|
(2,499 |
) |
|
|
(1,176 |
) |
|
|
(216 |
) |
|
|
(1,392 |
) |
Loans returned to accrual status / loan collections |
|
|
(53,242 |
) |
|
|
(6,571 |
) |
|
|
(59,813 |
) |
|
|
(48,099 |
) |
|
|
(13,911 |
) |
|
|
(62,010 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance NPLs |
|
$ |
292,219 |
|
|
$ |
26,187 |
|
|
$ |
318,406 |
|
|
$ |
315,027 |
|
|
$ |
25,767 |
|
|
$ |
340,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table O - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters ended |
|
( In thousands) |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
30-Jun-22 |
|
Balance at beginning of period - loans held-in-portfolio |
|
$ |
689,120 |
|
|
$ |
720,302 |
|
|
$ |
677,792 |
|
Impact of adopting
ASU-2022-02 |
|
|
|
|
|
|
(45,583 |
) |
|
|
|
|
Provision for credit losses (benefit) |
|
|
35,661 |
|
|
|
47,146 |
|
|
|
9,861 |
|
Initial allowance for credit losses - PCD Loans |
|
|
10 |
|
|
|
68 |
|
|
|
170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
724,791 |
|
|
|
721,933 |
|
|
|
687,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loans charge-off (recovered)- BPPR |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
Commercial real estate non-owner occupied |
|
|
430 |
|
|
|
(135 |
) |
|
|
(663 |
) |
Commercial real estate owner occupied |
|
|
(329 |
) |
|
|
(1,507 |
) |
|
|
(823 |
) |
Commercial and industrial |
|
|
(1,431 |
) |
|
|
442 |
|
|
|
(1,926 |
) |
Total Commercial |
|
|
(1,331 |
) |
|
|
(1,200 |
) |
|
|
(3,412 |
) |
Construction |
|
|
|
|
|
|
|
|
|
|
(395 |
) |
Leasing |
|
|
1,593 |
|
|
|
327 |
|
|
|
667 |
|
Mortgage |
|
|
(3,384 |
) |
|
|
(3,954 |
) |
|
|
(4,451 |
) |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Credit Cards |
|
|
6,502 |
|
|
|
6,287 |
|
|
|
4,077 |
|
HELOCs |
|
|
(25 |
) |
|
|
(36 |
) |
|
|
(73 |
) |
Personal |
|
|
12,641 |
|
|
|
12,045 |
|
|
|
6,356 |
|
Auto |
|
|
2,491 |
|
|
|
7,204 |
|
|
|
2,392 |
|
Other Consumer |
|
|
200 |
|
|
|
10,791 |
|
|
|
171 |
|
Total Consumer |
|
|
21,809 |
|
|
|
36,291 |
|
|
|
12,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net charged-off (recovered) BPPR |
|
$ |
18,687 |
|
|
$ |
31,464 |
|
|
$ |
5,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loans charge-off (recovered) - Popular
U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
Commercial real estate non-owner occupied |
|
|
(66 |
) |
|
|
(1,852 |
) |
|
|
(14 |
) |
Commercial real estate owner occupied |
|
|
156 |
|
|
|
(24 |
) |
|
|
(110 |
) |
Commercial and industrial |
|
|
1,734 |
|
|
|
(469 |
) |
|
|
266 |
|
Total Commercial |
|
|
1,823 |
|
|
|
(2,347 |
) |
|
|
137 |
|
Construction |
|
|
|
|
|
|
|
|
|
|
(4 |
) |
Mortgage |
|
|
(109 |
) |
|
|
(14 |
) |
|
|
63 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Credit Cards |
|
|
|
|
|
|
1 |
|
|
|
(1 |
) |
HELOCs |
|
|
(166 |
) |
|
|
(126 |
) |
|
|
(472 |
) |
Personal |
|
|
3,708 |
|
|
|
3,787 |
|
|
|
978 |
|
Other Consumer |
|
|
47 |
|
|
|
48 |
|
|
|
40 |
|
Total Consumer |
|
|
3,589 |
|
|
|
3,710 |
|
|
|
545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net charged-off (recovered) Popular U.S. |
|
$ |
5,303 |
|
|
$ |
1,349 |
|
|
$ |
741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans charged-off (recovered) - Popular,
Inc. |
|
$ |
23,990 |
|
|
$ |
32,813 |
|
|
$ |
6,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net write- downs [1] |
|
$ |
601 |
|
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of period - loans
held-in-portfolio |
|
$ |
700,200 |
|
|
$ |
689,120 |
|
|
$ |
681,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period - unfunded commitments |
|
$ |
9,415 |
|
|
$ |
8,805 |
|
|
$ |
7,054 |
|
Provision for credit losses (benefit) |
|
|
2,178 |
|
|
|
610 |
|
|
|
(150 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of period - unfunded commitments [2] |
|
$ |
11,593 |
|
|
$ |
9,415 |
|
|
$ |
6,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
POPULAR, INC. |
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs (recoveries) to average loans held-in-portfolio |
|
|
0.29 |
% |
|
|
0.41 |
% |
|
|
0.08 |
% |
Provision for credit losses (benefit) - loan portfolios to net charge-offs |
|
|
148.65 |
% |
|
|
143.68 |
% |
|
|
162.37 |
% |
BPPR |
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs (recoveries) to average loans held-in-portfolio |
|
|
0.33 |
% |
|
|
0.56 |
% |
|
|
0.10 |
% |
Provision for credit losses (benefit) - loan portfolios to net charge-offs |
|
|
151.86 |
% |
|
|
143.67 |
% |
|
|
171.19 |
% |
Popular U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs (recoveries) to average loans held-in-portfolio |
|
|
0.22 |
% |
|
|
0.06 |
% |
|
|
0.03 |
% |
Provision for credit losses (benefit) - loan portfolios to net charge-offs |
|
|
137.32 |
% |
|
|
144.03 |
% |
|
|
98.92 |
% |
[1] |
Net write-downs for the quarter ended June 30, 2023 are related to credit cards loans reclassified to held-for-sale. |
[2] |
Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the
Consolidated Statements of Financial Condition. |
32
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table P - Allowance for Credit Losses ACL- Loan Portfolios - Consolidated
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
30-Jun-23 |
|
(In thousands) |
|
Total ACL |
|
|
Total loans held-in-portfolio |
|
|
ACL to loans held-in-portfolio |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
|
$ |
26,179 |
|
|
$ |
2,331,499 |
|
|
|
1.12 |
% |
Commercial real estate - non-owner occupied |
|
|
71,716 |
|
|
|
4,744,256 |
|
|
|
1.51 |
% |
Commercial real estate - owner occupied |
|
|
51,407 |
|
|
|
3,041,398 |
|
|
|
1.69 |
% |
Commercial and industrial |
|
|
99,651 |
|
|
|
6,251,147 |
|
|
|
1.59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
$ |
248,953 |
|
|
$ |
16,368,300 |
|
|
|
1.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
11,332 |
|
|
|
819,903 |
|
|
|
1.38 |
% |
Mortgage |
|
|
96,093 |
|
|
|
7,449,078 |
|
|
|
1.29 |
% |
Leasing |
|
|
13,927 |
|
|
|
1,661,523 |
|
|
|
0.84 |
% |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
71,408 |
|
|
|
1,057,389 |
|
|
|
6.75 |
% |
Home equity lines of credit |
|
|
2,170 |
|
|
|
68,440 |
|
|
|
3.17 |
% |
Personal |
|
|
115,828 |
|
|
|
1,896,594 |
|
|
|
6.11 |
% |
Auto |
|
|
134,247 |
|
|
|
3,565,533 |
|
|
|
3.77 |
% |
Other consumer |
|
|
6,242 |
|
|
|
144,162 |
|
|
|
4.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consumer |
|
$ |
329,895 |
|
|
$ |
6,732,118 |
|
|
|
4.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
700,200 |
|
|
$ |
33,030,922 |
|
|
|
2.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
31-Mar-23 |
|
(In thousands) |
|
Total ACL |
|
|
Total loans held-in-portfolio |
|
|
ACL to loans held-in-portfolio |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
|
$ |
25,366 |
|
|
$ |
2,336,357 |
|
|
|
1.09 |
% |
Commercial real estate - non-owner occupied |
|
|
71,850 |
|
|
|
4,650,675 |
|
|
|
1.54 |
% |
Commercial real estate - owner occupied |
|
|
54,497 |
|
|
|
3,018,587 |
|
|
|
1.81 |
% |
Commercial and industrial |
|
|
92,266 |
|
|
|
5,999,642 |
|
|
|
1.54 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
$ |
243,979 |
|
|
$ |
16,005,261 |
|
|
|
1.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
4,330 |
|
|
|
698,996 |
|
|
|
0.62 |
% |
Mortgage |
|
|
104,477 |
|
|
|
7,405,907 |
|
|
|
1.41 |
% |
Leasing |
|
|
20,990 |
|
|
|
1,614,344 |
|
|
|
1.30 |
% |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
67,953 |
|
|
|
1,046,196 |
|
|
|
6.50 |
% |
Home equity lines of credit |
|
|
1,953 |
|
|
|
69,887 |
|
|
|
2.79 |
% |
Personal |
|
|
109,729 |
|
|
|
1,841,069 |
|
|
|
5.96 |
% |
Auto |
|
|
130,829 |
|
|
|
3,517,940 |
|
|
|
3.72 |
% |
Other consumer |
|
|
4,880 |
|
|
|
138,773 |
|
|
|
3.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consumer |
|
$ |
315,344 |
|
|
$ |
6,613,865 |
|
|
|
4.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
689,120 |
|
|
$ |
32,338,373 |
|
|
|
2.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance |
|
(In thousands) |
|
Total ACL |
|
|
Total loans held-in-portfolio |
|
|
ACL to loans held-in-portfolio |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
|
$ |
813 |
|
|
$ |
(4,858 |
) |
|
|
0.03 |
% |
Commercial real estate - non-owner occupied |
|
|
(134 |
) |
|
|
93,581 |
|
|
|
(0.03 |
)% |
Commercial real estate - owner occupied |
|
|
(3,090 |
) |
|
|
22,811 |
|
|
|
(0.12 |
)% |
Commercial and industrial |
|
|
7,385 |
|
|
|
251,505 |
|
|
|
0.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
$ |
4,974 |
|
|
$ |
363,039 |
|
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
7,002 |
|
|
|
120,907 |
|
|
|
0.76 |
% |
Mortgage |
|
|
(8,384 |
) |
|
|
43,171 |
|
|
|
(0.12 |
)% |
Leasing |
|
|
(7,063 |
) |
|
|
47,179 |
|
|
|
(0.46 |
)% |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
3,455 |
|
|
|
11,193 |
|
|
|
0.25 |
% |
Home equity lines of credit |
|
|
217 |
|
|
|
(1,447 |
) |
|
|
0.38 |
% |
Personal |
|
|
6,099 |
|
|
|
55,525 |
|
|
|
0.15 |
% |
Auto |
|
|
3,418 |
|
|
|
47,593 |
|
|
|
0.05 |
% |
Other consumer |
|
|
1,362 |
|
|
|
5,389 |
|
|
|
0.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consumer |
|
$ |
14,551 |
|
|
$ |
118,253 |
|
|
|
0.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
11,080 |
|
|
$ |
692,549 |
|
|
|
(0.01 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
34
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table Q - Allowance for Credit Losses ACL- Loan Portfolios - BPPR Operations
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
30-Jun-23 |
|
BPPR |
|
(In thousands) |
|
Total ACL |
|
|
Total loans held-in-portfolio |
|
|
ACL to loans held-in-portfolio |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
|
$ |
4,787 |
|
|
$ |
296,877 |
|
|
|
1.61 |
% |
Commercial real estate - non-owner occupied |
|
|
53,366 |
|
|
|
2,906,247 |
|
|
|
1.84 |
% |
Commercial real estate - owner occupied |
|
|
41,901 |
|
|
|
1,428,058 |
|
|
|
2.93 |
% |
Commercial and industrial |
|
|
81,637 |
|
|
|
4,038,823 |
|
|
|
2.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
$ |
181,691 |
|
|
$ |
8,670,005 |
|
|
|
2.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
9,554 |
|
|
|
173,735 |
|
|
|
5.50 |
% |
Mortgage |
|
|
82,899 |
|
|
|
6,168,288 |
|
|
|
1.34 |
% |
Leasing |
|
|
13,927 |
|
|
|
1,661,523 |
|
|
|
0.84 |
% |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
71,408 |
|
|
|
1,057,372 |
|
|
|
6.75 |
% |
Home equity lines of credit |
|
|
96 |
|
|
|
2,570 |
|
|
|
3.74 |
% |
Personal |
|
|
96,046 |
|
|
|
1,685,966 |
|
|
|
5.70 |
% |
Auto |
|
|
134,247 |
|
|
|
3,565,533 |
|
|
|
3.77 |
% |
Other consumer |
|
|
6,240 |
|
|
|
135,292 |
|
|
|
4.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consumer |
|
$ |
308,037 |
|
|
$ |
6,446,733 |
|
|
|
4.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
596,108 |
|
|
$ |
23,120,284 |
|
|
|
2.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
31-Mar-23 |
|
BPPR |
|
(In thousands) |
|
Total ACL |
|
|
Total loans held-in-portfolio |
|
|
ACL to loans held-in-portfolio |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
|
$ |
4,756 |
|
|
$ |
292,806 |
|
|
|
1.62 |
% |
Commercial real estate - non-owner occupied |
|
|
53,894 |
|
|
|
2,885,483 |
|
|
|
1.87 |
% |
Commercial real estate - owner occupied |
|
|
46,009 |
|
|
|
1,497,503 |
|
|
|
3.07 |
% |
Commercial and industrial |
|
|
77,042 |
|
|
|
3,934,433 |
|
|
|
1.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
$ |
181,701 |
|
|
$ |
8,610,225 |
|
|
|
2.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
3,072 |
|
|
|
155,349 |
|
|
|
1.98 |
% |
Mortgage |
|
|
89,077 |
|
|
|
6,116,684 |
|
|
|
1.46 |
% |
Leasing |
|
|
20,990 |
|
|
|
1,614,344 |
|
|
|
1.30 |
% |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
67,953 |
|
|
|
1,046,175 |
|
|
|
6.50 |
% |
Home equity lines of credit |
|
|
100 |
|
|
|
2,865 |
|
|
|
3.49 |
% |
Personal |
|
|
88,408 |
|
|
|
1,612,918 |
|
|
|
5.48 |
% |
Auto |
|
|
130,829 |
|
|
|
3,517,940 |
|
|
|
3.72 |
% |
Other consumer |
|
|
4,877 |
|
|
|
130,012 |
|
|
|
3.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consumer |
|
$ |
292,167 |
|
|
$ |
6,309,910 |
|
|
|
4.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
587,007 |
|
|
$ |
22,806,512 |
|
|
|
2.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance |
|
(In thousands) |
|
Total ACL |
|
|
Total loans held-in-portfolio |
|
|
ACL to loans held-in-portfolio |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
|
|
31 |
|
|
|
4,071 |
|
|
|
(0.01 |
)% |
Commercial real estate - non-owner occupied |
|
|
(528 |
) |
|
|
20,764 |
|
|
|
(0.03 |
)% |
Commercial real estate - owner occupied |
|
|
(4,108 |
) |
|
|
(69,445 |
) |
|
|
(0.14 |
)% |
Commercial and industrial |
|
|
4,595 |
|
|
|
104,390 |
|
|
|
0.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
$ |
(10 |
) |
|
$ |
59,780 |
|
|
|
(0.01 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
6,482 |
|
|
|
18,386 |
|
|
|
3.52 |
% |
Mortgage |
|
|
(6,178 |
) |
|
|
51,604 |
|
|
|
(0.12 |
)% |
Leasing |
|
|
(7,063 |
) |
|
|
47,179 |
|
|
|
(0.46 |
)% |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
3,455 |
|
|
|
11,197 |
|
|
|
0.25 |
% |
Home equity lines of credit |
|
|
(4 |
) |
|
|
(295 |
) |
|
|
0.25 |
% |
Personal |
|
|
7,638 |
|
|
|
73,048 |
|
|
|
0.22 |
% |
Auto |
|
|
3,418 |
|
|
|
47,593 |
|
|
|
0.05 |
% |
Other consumer |
|
|
1,363 |
|
|
|
5,280 |
|
|
|
0.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consumer |
|
$ |
15,870 |
|
|
$ |
136,823 |
|
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
9,101 |
|
|
$ |
313,772 |
|
|
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
36
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table R - Allowance for Credit Losses ACL- Loan Portfolios - POPULAR U.S. Operations
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
30-Jun-23 |
|
Popular U.S. |
|
(In thousands) |
|
Total ACL |
|
|
Total loans held-in-portfolio |
|
|
ACL to loans held-in-portfolio |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
|
$ |
21,392 |
|
|
$ |
2,034,622 |
|
|
|
1.05 |
% |
Commercial real estate - non-owner occupied |
|
|
18,350 |
|
|
|
1,838,009 |
|
|
|
1.00 |
% |
Commercial real estate - owner occupied |
|
|
9,506 |
|
|
|
1,613,340 |
|
|
|
0.59 |
% |
Commercial and industrial |
|
|
18,014 |
|
|
|
2,212,324 |
|
|
|
0.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
$ |
67,262 |
|
|
$ |
7,698,295 |
|
|
|
0.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
1,778 |
|
|
|
646,168 |
|
|
|
0.28 |
% |
Mortgage |
|
|
13,194 |
|
|
|
1,280,790 |
|
|
|
1.03 |
% |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
|
|
|
|
17 |
|
|
|
|
% |
Home equity lines of credit |
|
|
2,074 |
|
|
|
65,870 |
|
|
|
3.15 |
% |
Personal |
|
|
19,782 |
|
|
|
210,628 |
|
|
|
9.39 |
% |
Other consumer |
|
|
2 |
|
|
|
8,870 |
|
|
|
0.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consumer |
|
$ |
21,858 |
|
|
$ |
285,385 |
|
|
|
7.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
104,092 |
|
|
$ |
9,910,638 |
|
|
|
1.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31-Mar-23 |
|
Popular U.S. |
|
(In thousands) |
|
Total ACL |
|
|
Total loans held-in-portfolio |
|
|
ACL to loans held-in-portfolio |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
|
$ |
20,610 |
|
|
$ |
2,043,551 |
|
|
|
1.01 |
% |
Commercial real estate - non-owner occupied |
|
|
17,956 |
|
|
|
1,765,192 |
|
|
|
1.02 |
% |
Commercial real estate - owner occupied |
|
|
8,488 |
|
|
|
1,521,084 |
|
|
|
0.56 |
% |
Commercial and industrial |
|
|
15,224 |
|
|
|
2,065,209 |
|
|
|
0.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
$ |
62,278 |
|
|
$ |
7,395,036 |
|
|
|
0.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
1,258 |
|
|
|
543,647 |
|
|
|
0.23 |
% |
Mortgage |
|
|
15,400 |
|
|
|
1,289,223 |
|
|
|
1.19 |
% |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
|
|
|
|
21 |
|
|
|
|
% |
Home equity lines of credit |
|
|
1,853 |
|
|
|
67,022 |
|
|
|
2.76 |
% |
Personal |
|
|
21,321 |
|
|
|
228,151 |
|
|
|
9.35 |
% |
Other consumer |
|
|
3 |
|
|
|
8,761 |
|
|
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consumer |
|
$ |
23,177 |
|
|
$ |
303,955 |
|
|
|
7.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
102,113 |
|
|
$ |
9,531,861 |
|
|
|
1.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance |
|
(In thousands) |
|
Total ACL |
|
|
Total loans held-in-portfolio |
|
|
ACL to loans held-in-portfolio |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
|
$ |
782 |
|
|
$ |
(8,929 |
) |
|
|
0.04 |
% |
Commercial real estate - non-owner occupied |
|
|
394 |
|
|
|
72,817 |
|
|
|
(0.02 |
)% |
Commercial real estate - owner occupied |
|
|
1,018 |
|
|
|
92,256 |
|
|
|
0.03 |
% |
Commercial and industrial |
|
|
2,790 |
|
|
|
147,115 |
|
|
|
0.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
$ |
4,984 |
|
|
$ |
303,259 |
|
|
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
520 |
|
|
|
102,521 |
|
|
|
0.05 |
% |
Mortgage |
|
|
(2,206 |
) |
|
|
(8,433 |
) |
|
|
(0.16 |
)% |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
|
|
|
|
(4 |
) |
|
|
|
% |
Home equity lines of credit |
|
|
221 |
|
|
|
(1,152 |
) |
|
|
0.39 |
% |
Personal |
|
|
(1,539 |
) |
|
|
(17,523 |
) |
|
|
0.04 |
% |
Other consumer |
|
|
(1 |
) |
|
|
109 |
|
|
|
(0.01 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consumer |
|
$ |
(1,319 |
) |
|
$ |
(18,570 |
) |
|
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
1,979 |
|
|
$ |
378,777 |
|
|
|
(0.02 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
38
Popular, Inc.
Financial Supplement to Second Quarter 2023 Earnings Release
Table S - Reconciliation to GAAP Financial Measures
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except share or per share information) |
|
30-Jun-23 |
|
|
31-Mar-23 |
|
|
30-Jun-22 |
|
Total stockholders equity |
|
$ |
4,565,009 |
|
|
$ |
4,470,725 |
|
|
$ |
4,293,349 |
|
Less: Preferred stock |
|
|
(22,143 |
) |
|
|
(22,143 |
) |
|
|
(22,143 |
) |
Less: Goodwill |
|
|
(827,428 |
) |
|
|
(827,428 |
) |
|
|
(720,293 |
) |
Less: Other intangibles |
|
|
(11,354 |
) |
|
|
(12,149 |
) |
|
|
(14,533 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total tangible common equity |
|
$ |
3,704,084 |
|
|
$ |
3,609,005 |
|
|
$ |
3,536,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
70,838,266 |
|
|
$ |
67,675,759 |
|
|
$ |
71,501,931 |
|
Less: Goodwill |
|
|
(827,428 |
) |
|
|
(827,428 |
) |
|
|
(720,293 |
) |
Less: Other intangibles |
|
|
(11,354 |
) |
|
|
(12,149 |
) |
|
|
(14,533 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total tangible assets |
|
$ |
69,999,484 |
|
|
$ |
66,836,182 |
|
|
$ |
70,767,105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets |
|
|
5.29 |
% |
|
|
5.40 |
% |
|
|
5.00 |
% |
Common shares outstanding at end of period |
|
|
72,103,969 |
|
|
|
71,965,984 |
|
|
|
76,576,397 |
|
Tangible book value per common share |
|
$ |
51.37 |
|
|
$ |
50.15 |
|
|
$ |
46.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly average |
|
Total stockholders equity [1] |
|
$ |
6,553,488 |
|
|
$ |
6,452,889 |
|
|
$ |
5,827,666 |
|
Less: Preferred Stock |
|
|
(22,143 |
) |
|
|
(22,143 |
) |
|
|
(22,143 |
) |
Less: Goodwill |
|
|
(827,427 |
) |
|
|
(827,427 |
) |
|
|
(720,292 |
) |
Less: Other intangibles |
|
|
(11,875 |
) |
|
|
(12,678 |
) |
|
|
(15,043 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total tangible equity |
|
$ |
5,692,043 |
|
|
$ |
5,590,641 |
|
|
$ |
5,070,188 |
|
Return on average tangible common equity |
|
|
10.63 |
% |
|
|
11.51 |
% |
|
|
16.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] |
Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity. |
CONTACTS:
Popular, Inc.
Investor Relations:
Paul J. Cardillo, 212-417-6721
Senior Vice President and Investor Relations Officer
pcardillo@popular.com
or
Media Relations:
MC González Noguera, 917-804-5253
Executive Vice President and Chief Communications & Public
Affairs Officer
mc.gonzalez@popular.com
39
INVESTOR PRESENTATION Second Quarter
2023 Exhibit 99.2
This presentation contains
“forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance, are based on the current expectations of Popular, Inc.’s (the
“Corporation”) management and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from
those expressed in, or implied by, such forward-looking statements. More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Form 10-K for the year ended
December 31, 2022, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 to be filed with the Securities and Exchange Commission. Our filings are available
on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements which speak as of their respective
dates. Cautionary Note Regarding Forward-Looking Statements
Q2 2023 Highlights Financial
Highlights Highlights: Loans increased $693 million QoQ, net of $46 million transferred to loans held for sale Non-performing loans decreased $26 million; NPL to loans ratio down to 1.17% from 1.28% in Q1 2023 Deposits increased $3.1 billion, mainly
P.R. Government deposits Total borrowings remained flat Available liquidity sources increased $1.9 billion in Q2 2023 Common Equity Tier 1 capital ratio increased 14 basis points to 16.87% Tangible book value per share increased $1.22 to $51.37
driven by quarterly earnings On March 13, 2023, issued $400 million aggregate principal amount of 7.25% Senior Notes due 2028. On August 14, 2023, a portion of the net proceeds of this issuance will be used to redeem, at par value, all
outstanding $300 million aggregate principal amount of its 6.125% Senior Notes due September 2023 1 FTE net interest margin represents a non-GAAP financial measure. See the Corporation's earnings press release, Form 10-Q and Form 10-K filed with the
U.S. Securities and Exchange Commission for the applicable periods for a GAAP to non-GAAP reconciliation. FTE stands for fully taxable-equivalent basis Quarter Highlights Redemption of Senior Notes:
Business Highlights Business Metrics
Earnings 1 Customers who have logged on to Popular’s web and/or mobile platform in the past 30 days BPPR Customer Engagement Popular Bank BPPR BPPR: Loans increased by $314 million across all business segments Continued strong origination
activity in consumer loans: Auto and lease financing increased 29% QoQ Personal loans increased 18% QoQ Mortgage loans were 20% higher than Q2 2022 Deposits, excluding P.R. government deposits, decreased by $388 million from Q1 2023, mainly
non-interest-bearing retail and commercial accounts Total cost of deposits increased 26bps QoQ; 14bps excluding P.R. Government deposits Total customers increased 9,500 from Q1 2023 and 37,400 from Q2 2022 Credit and debit card sales (in dollars)
were 3% higher than Q2 2022 Loans increased $379 million; mainly commercial and construction loans Deposits grew $399 million and total deposit cost increased 54bps driven by an increase in brokered deposits and deposits gathered through the Popular
Direct online channel Popular Bank:
Financial Summary
Net Interest Margin Dynamics Net
interest margin of 3.14%; FTE net interest margin of 3.29%, a decrease of 17 basis points Money market and investment securities are 51% of earning assets FTE loan yield increased 18 basis points QoQ to 7.15% Total deposit cost increased 29 basis
points QoQ to 1.57% Total Loans and Deposits ($ in billions)1 Loan Yields, Deposit Cost and NIM (FTE) Money Market and Investment Securities ($ in billions)1 ¹ Balances are as of end of period 51%
Deposit Mix and Historical Betas Total
cumulative deposit beta of 31% at period end; total deposit beta at BPPR and PB of 28% and 47%, respectively High beta public sector deposits now account for 29% of total deposits. P.R. public sector deposit betas are 100% with a quarter lag; expect
costs to increase while short-term rates continue to rise Retail and commercial deposit betas have historically been low, but are now above the prior cycle
2 The book value includes $746 million
of net unrealized loss which remains in Accumulated Other Comprehensive Income (AOCI) related to the securities transferred from available-for-sale securities portfolio to the held-to-maturity securities portfolio. At the time of transfer, the
securities had an unrealized loss of $873 million, which will be amortized (back into capital) throughout their remaining life at a rate of approximately 5% per quarter through 2026. Differences due to rounding Investment Portfolio 1 Maturity
expressed in years; In the case of mortgage-backed securities and CMO’s, it represents the weighted average life of the bonds assuming market consensus prepayment speeds Earnings Conservative investment portfolio, with the majority invested in
short to intermediate U.S. Treasuries, which are tax exempt for P.R. corporations. The portfolio duration, including cash, is 2.3 years The rapid rise in interest rates during 2022 increased unrealized losses; expect to fully recover these
unrealized losses as the securities mature The U.S. Treasury portfolio classified as HTM had a market value of $8.2 billion at the end of Q2 2023, which is $130 million lower than the current book value 1 2
Capital Robust regulatory capital
levels Common Equity Tier 1 of 16.9% Leverage ratio of 8.4% impacted by the high proportion of zero-risk weighted assets on the balance sheet, which represented 41% of total assets TCE ratio1 at 5.3% compared to 5.4% in Q1 2023; BPPR at 3.5%
compared to 3.6% due to asset growth during the quarter Tangible book value per share increased by $1.22 to $51.37 compared to $50.15 in Q1 2023 driven by quarterly earnings Note: Current period ratios are estimated 1 TCE ratio is defined as the
ratio of tangible common equity to tangible assets
Non – Performing Assets
Non-Performing Assets Dollars in millions Differences due to rounding Total NPL Inflows Q2 2023 vs Q1 2023 variances: NPAs and NPLs decreased by $32 million and $26 million QoQ, respectively NPL inflows decreased by $10 million QoQ P.R. NPLs at $352
million, or 1.5% of loans, down by $27 million, mainly driven by lower mortgage NPLs by $30 million, offset in part by higher construction NPLs by $9 million U.S. NPLs at $33 million, or 0.3% of loans, flat QoQ OREOs decreased by $6 million QoQ
Non-Performing Loans
NCOs and Allowance for Credit
Losses Dollars in millions Differences due to rounding Earnings Q2 2023 vs Q1 2023 variances: NCOs amounted to $24 million, decreasing by $9 million QoQ BPPR’s NCOs at $19 million, decreasing by $13 million QoQ, mainly due to lower consumer
NCOs by $14 million, as the prior quarter included a $10 million line of credit charge-off Popular U.S. NCOs at $5 million, increasing by $4 million QoQ NCO ratio at 0.29% vs. 0.41% in Q1 2023 ACL at $700 million, increasing by $11 million from the
previous quarter ACL-to-Loans ratio at 2.12% vs. 2.13% in Q1 2023 ACL-to-NPLs at 182% vs. 167% in Q1 2023 NCOs and NCO-to-Loan Ratio ($ in millions)
Differences due to rounding ACL
Movement: Moody’s May 2023 baseline scenario continues to show an economy with a resilient labor market that manages to avoid a recession Impact of economic scenarios is driven by the U.S. CRE and P.R. personal loan portfolios, partially
offset by changes in the probability weights assigned to the scenarios due to lower risk of recession Lower qualitative reserves mainly due to stable performance within the lease financing portfolio Portfolio changes are mainly driven by specific
reserves in commercial and construction loans, higher loan volumes, and migrations of consumer credit scores Economic Scenario: Baseline scenario is assigned the highest probability, followed by the S3 (pessimistic) scenario Reduction in the 2023
forecasted GDP growth for P.R. due to revision of the P.R. Government Economic Activity Index Reductions in unemployment rate for P.R. reflect better-than-expected employment levels U.S. forecast for GDP growth and unemployment rate for 2023
remained consistent with the previous quarter. The reduction in 2024 U.S. GDP growth reflects forecasted weakening in the labor market and the impact of elevated interest rates Allowance for Credit Losses – Q2 2023 Movement
Driving Value Franchise Market
leader in Puerto Rico Substantial liquidity with diversified deposit base Well-positioned to take advantage of ongoing economic growth Focus on customer service supported by broad branch network Differentiated digital offering Diversified fee income
driven by unmatched product breadth Strong risk-adjusted loan margins driven by a well-diversified portfolio Mainland U.S. banking operation provides geographic diversification Commercial led strategy directed at small and medium sized businesses
National niche banking focused on homeowners’ associations, healthcare and non-profit organizations Branch footprint in South Florida and New York Metro Transformation Broad-based multi-year, digital, technological and business process
transformation Implement more agile and efficient business processes across the entire company Unlock opportunity for growth in our primary market and within our existing customer base ESG In June, we released our corporate sustainability report,
available on our website. We continue to focus on providing opportunity for progress, protecting the environment, and promoting leadership We are mindful of the responsibility we have to Puerto Rico as the leading banking institution and to
all the communities that we serve
INVESTOR PRESENTATION Second
Quarter 2023 Appendix
Corporate Structure Earnings
Summary Corporate Structure Franchise Earnings Assets = $58 billion Assets = $13 billion Puerto Rico Operations United States Operations Assets = $71 billion Information as of June 30, 2023 ¹ Doing business as Popular Selected equity
investments: Banco BHD León under Corporate segment Dominican Republic bank 15.84% stake 2022 net income of $175 million Industry Financial services Headquarters San Juan, Puerto Rico Assets $71 billion (among top 50 BHCs in the U.S.) Loans $33
billion Deposits $64 billion Banking branches 158 in Puerto Rico, 39 in the U.S. (28 in New York and New Jersey and 11 in Florida) and 10 in the U.S. and British Virgin Islands NASDAQ ticker symbol BPOP Market Cap $4.4 billion
Q2 2023 vs. Q1 2023 Business
Segments
P.R. Public Sector Exposure
Obligations of municipalities are backed by real and personal property taxes, municipal excise taxes, and/or a percentage of the sales and use tax Indirect exposure includes loans or securities that are payable by non-governmental entities, but
which carry a government guarantee to cover any shortfall in collateral in the event of borrower default. Majority are single-family mortgage related The Corporation does not own any loans issued by the P.R. central government or its public
corporations. As of June 30, 2023, our direct exposure to P.R. municipalities was $351 million, up by $28 million QoQ, mostly driven by a $23 million increase in a single municipality Municipalities Indirect Exposure On July 1, 2023 we received $34
million in principal payments Activity Since June 2023
Liquidity Sources Liquidity Sources
Borrowings Available liquidity increased by $1.9 billion in Q2 2023 On March 13, 2023, issued $400 million aggregate principal amount of 7.25% Senior Notes due 2028. On August 14, 2023, a portion of the net proceeds of the issuance will be used
to redeem, at par value, all outstanding $300 million aggregate principal amount of its 6.125% Senior Notes due September 2023 Differences due to rounding
Deposit Composition 1 Includes the
first $250,000 in balances of transactional and time deposit accounts with balances in excess of $250,000. 2 Includes public deposits from P.R., U.S.V.I., and U.S. states and municipalities based on such jurisdictions’ applicable collateral
requirements On June 30, 2023, deposits with balances in excess of $250,000, excluding foreign deposits, intercompany deposits and collateralized public funds, were $11.4 billion or 21% at BPPR and $2.3 billion or 23% at Popular U.S. compared to
available liquidity sources of $15.9 billion at BPPR and $4.2 billion at Popular U.S. as of June 30, 2023 Non-interest bearing demand deposit balances continue to be stable and represented 24% of the total deposit portfolio Deposits by Category QoQ
Detail Differences due to rounding
20 Non-Owner Occupied CRE $ in
millions Highlights: Non-Owner Occupied CRE (CRE NOO) properties concentrated in retail, hotels and office space Office exposure is limited, representing only 1.8% of total loan portfolio and 13% of CRE NOO Office space primarily comprised of
mid-rise properties with diversified tenants across both regions. Average loan size of $2.0 million Strong loan growth in both regions following prudent lending standards P.R. loan balances increased $254 million YoY U.S. loan balances increased by
$370 million YoY Favorable credit risk profile with low level of NCOs and NPLs, and decreasing criticized and classified loans Non-performing loans held-in-portfolio stable at $23 million in Q2 2023; NPLs to loans ratio at 0.5% in Q2 2023 Allowance
for credit losses to loans held-in-portfolio at 1.51% in Q2 2023 vs. 1.54% in Q1 2023 ACL to NPLs steady at 311% in Q2 2023 Differences due to rounding Non-Owner Occupied CRE CRE NOO Balance by property type
Pre-pandemic Differences due to
rounding Auto Portfolio NCOs and NCO-to-Loan Ratio ($ in millions) FICO Mix of Originations (% of Approved Amount) Delinquency ($ in millions) Auto balances increased during the pandemic, but growth has moderated during recent quarters Delinquency
flattening in the most recent four quarters at a level below pre-pandemic NCOs at levels significantly below pre-pandemic The FICO mix of originations has remained robust, with weighted-average FICO scores of approximately 730 Current year
originations were approximately 65%/35% split between new/used auto loans Highlights:
Pre-pandemic Differences due to
rounding Leases Portfolio NCOs and NCO-to-Loan Ratio ($ in millions) FICO Mix of Originations (% of Approved Amount) Delinquency ($ in millions) Auto lease balances have continued to increase since the pandemic Delinquency steady at below
pre-pandemic levels NCOs at levels significantly below pre-pandemic The FICO mix of originations has remained robust, with weighted-average FICO scores of approximately 740 Highlights:
Pre-pandemic Differences due to
rounding Credit Card Portfolio NCOs and NCO-to-Loan Ratio ($ in millions) Delinquency ($ in millions) Highlights: Balances have been gradually increasing due to higher originations and increased usage post pandemic Delinquency and NCOs have been
gradually increasing in recent quarters, but both remain below pre-pandemic level as of Q2 2023 The FICO mix of originations has remained robust, with weighted-average FICO scores of approximately 750 FICO Mix of Originations (% of Approved
Amount)
FICO Mix of Consumer Originations
Popular, Inc. Credit Ratings Senior
Unsecured Ratings Fitch BBB- Stable Outlook S&P BB+ Stable Outlook Moody’s Ba1 Stable Outlook 2018 May Fitch revised outlook to Positive 2019 April Moody's upgrades to B1 from B2 S&P revised outlook to Positive May Fitch upgrades to BB
from BB- 2020 March S&P lowers outlook to Stable 2021 March Moody’s revised outlook to Positive April Moody’s upgrades to Ba3 from B1 Fitch and S&P revised outlook to Positive June Fitch upgrades to BBB- from BB, revised outlook
to Stable 2022 April S&P upgrades to BB+ from BB-, revised outlook to Stable September Moody’s upgrades to Ba1 from Ba3, revised outlook to Stable Senior Unsecured Ratings
INVESTOR PRESENTATION Second
Quarter 2023
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