- Net income of $46.8 million for the
third quarter of 2016 and Adjusted net income of $94.6
million
- Net interest margin of 4.12% in Q3
2016, compared to 4.33% in Q2 2016
- Credit Quality (excluding covered
loans):
- Non-performing loans
held-in-portfolio (NPLs) increased by $1.6 million from Q2 2016;
NPLs to loans ratio stable at 2.6% QoQ;
- Net charge-offs (NCOs) remained flat
at $35.1 million; NCOs at 0.63% of average loans held-in-portfolio
flat at Q3 2016;
- Allowance for loan losses of $525.6
million vs. $518.1 million in Q2 2016; Allowance for loan losses to
loans held-in-portfolio at 2.33% vs. 2.30% in Q2 2016;
- Allowance for loan losses to NPLs at
90.7% vs. 89.7% in Q2 2016.
- Common Equity Tier 1 ratio of
16.64%, Book Value per Common Share of $51.85 and Tangible Book
Value per Share of $44.86 at September 30, 2016
Popular, Inc. (the “Corporation” or “Popular”) (NASDAQ:BPOP)
reported net income of $46.8 million for the quarter ended
September 30, 2016, compared to net income of $89.0 million for the
quarter ended June 30, 2016.
Mr. Richard L. Carrión, Chairman of the Board and Chief
Executive Officer, said: “The results for the third quarter reflect
the strength of our franchise and disciplined approach to risk
management. We achieved stable revenue and credit metrics
notwithstanding the economic challenges in Puerto Rico and the low
interest rate environment.”
Significant Events
As previously announced, on October 3, 2016 the review board
issued a final arbitration award denying Banco Popular de Puerto
Rico’s request for reimbursement of approximately $55 million in
shared loss claims that were the subject of one of the disputes
between Banco Popular de Puerto Rico (“BPPR”) and the Federal
Deposit Insurance Corporation, as receiver, under the commercial
loss share agreement entered into in connection with the
Westernbank FDIC-assisted transaction. As a result, for the quarter
ended September 30, 2016, Popular recognized a pre-tax charge of
approximately $55 million and a corresponding reduction to its FDIC
indemnification asset.
Earnings Highlights
(Unaudited) Quarters ended Nine months
ended (Dollars in thousands, except per share information)
30-Sep-16 30-Jun-16 30-Sep-15 30-Sep-16
30-Sep-15 Net interest income $353,687 $360,551 $350,735 $1,066,650
$1,056,483 Provision for loan losses 42,594 39,668 69,568 130,202
159,747 Provision (reversal) for loan losses - covered loans [1]
750 804 (2,890) (1,551) 23,200 Net interest
income after provision for loan losses 310,343 320,079 284,057
937,999 873,536 FDIC loss-share (expense) income (61,723) (12,576)
1,207 (77,445) 24,421 Other non-interest income 137,701 123,079
129,902 375,556 362,682 Goodwill impairment charge 3,801 - - 3,801
- Other operating expenses 319,871 309,149
306,897 930,963 982,412 Income from continuing operations
before income tax 62,649 121,433 108,269 301,346 278,227 Income tax
expense (benefit) 15,839 32,446 22,620 80,550
(478,344) Income from continuing operations 46,810
88,987 85,649 220,796 756,571 (Loss) income
from discontinued operations, net of tax - -
(9) - 1,347 Net income $46,810 $88,987
$85,640 $220,796 $757,918 Net income applicable to common
stock $45,880 $88,056 $84,709 $218,004
$755,126 Net income per common share from continuing operations -
Basic $0.44 $0.85 $0.82 $2.11 $7.33 Net
income per common share from continuing operations - Diluted
$0.44 $0.85 $0.82 $2.11 $7.31 Net income per
common share from discontinued operations - Basic $-
$- $- $- $0.01 Net income per common share from
discontinued operations - Diluted $- $- $- $-
$0.01 [1] Covered loans represent loans acquired in the
Westernbank FDIC-assisted transaction that are covered under an
FDIC loss-sharing agreement.
Adjusted results – Non-GAAP
The Corporation prepared its Consolidated Financial Statement
using accounting principles generally accepted in the U.S. (“U.S.
GAAP” or the “reported basis”). In addition to analyzing the
Corporation’s results on a reported basis, management monitors the
“Adjusted net income” of the Corporation and excludes the impact of
certain transactions on the results of its operations. Management
believes that the “Adjusted net income” provides meaningful
information about the underlying performance of the Corporation’s
ongoing operations. The “Adjusted net income” is a non-GAAP
financial measure.
The following tables reflect the results of operations for the
third and second quarters of 2016, with adjustments to exclude the
impact of certain events during the third and second quarters of
2016, to arrive at the adjusted net income.
Adjusted Net Income - Reconciliation to GAAP Financial
Measures
(Unaudited) (In
thousands) 30-Sep-16 Income tax Impact
on Pre-tax effect net income
U.S.
GAAP Net Income $46,810 Non-GAAP Adjustments: FDIC arbitration
award[1] 54,924 (10,985) 43,939 Goodwill impairment charge[2]
3,801 - 3,801
Adjusted net income
(Non-GAAP) $94,550
[1]Represents the arbitration decision
denying BPPR's request for reimbursement in certain shared loss
claims. Gains and losses related to assets acquired from
Westernbank as part of the FDIC assisted transaction are subject to
the capital gains tax rate of 20%.
[2]Represents goodwill impairment charge
in the Corporation’s securities subsidiary. The securities
subsidiary is a limited liability company with a partnership
election. Accordingly, its earnings flow through Popular, Inc.,
holding company, for income tax purposes. Since Popular, Inc. has a
full valuation allowance on its deferred tax assets, this results
in an effective tax rate of 0%.
(Unaudited) (In
thousands) 30-Jun-16 Income tax Impact
on Pre-tax effect net income
U.S.
GAAP Net Income $88,987 Non-GAAP Adjustments: Impact of EVERTEC
Restatement [1] 2,173 - 2,173 Bulk Sale of WB loans and OREO [2]
(891) 347 (544) Adjusted Net Income (Non-GAAP)
$90,616
[1]Represents Popular Inc.'s proportionate
share of the cumulative impact of EVERTEC restatement and other
corrective adjustments to its financial statements, as disclosed in
EVERTEC's 2015 Annual Report on Form 10K. Due to the
preferential tax rate on the income from EVERTEC, the tax effect of
this transaction was estimated at approximately $38 thousand.
[2]Represents the impact of the bulk sale
of Westernbank loans and OREO. Gains and losses related to assets
acquired from Westernbank as part of the FDIC assited
transaction are subject to the capital gains tax rate of 20%.
Net interest income
Net interest income for the quarter ended September 30, 2016 was
$353.7 million, compared to $360.6 million for the previous
quarter. Net interest margin was 4.12% for the quarter compared to
4.33% for the previous quarter. The impact of having one more day
in the quarter contributed $2.6 million to the net interest
income.
The decrease in net interest income was mainly related to:
- Lower income from the WB loan portfolio
by $8.9 million, or 129 basis points, which for the second quarter
included the benefit of $2.1 million, or 41 basis points, from the
bulk sale. The results were also impacted by lower yields as a
result of the quarterly recast process, the successful resolution
of certain loans in the second quarter and lower volume of loans,
due to the normal portfolio run-off.
- Higher cost of deposits by $1.7 million
or 2 basis points mainly in the U.S. associated to increase in
money market and time deposits to fund loan growth.
These negative variances were partially offset by:
- Higher income from investment
securities by $1.2 million mainly from higher levels of mortgage
backed securities both at BPPR and the U.S.
- Higher income from commercial loans by
$2.9 million due to higher levels from the U.S. portfolio.
BPPR’s net interest income amounted to $303.7 million for the
quarter ended September 30, 2016, compared to $310.4 million for
the previous quarter. The decrease of $6.7 million in net interest
income was mainly due to lower income from WB loans by $8.9 million
as mentioned above, partially offset by higher income from mortgage
backed securities and the $2.1 million impact of having one more
day in the quarter. Net interest margin declined to 4.49% from
4.71% in the previous quarter mainly driven by lower yields from WB
loans, as explained above, and higher volume of overnight
investments driven by the increase in Government deposits. Earning
assets in P.R. yielded 4.86%, down from 5.08% in the previous
quarter, while the cost of interest bearing liabilities remained
flat from the previous quarter at 0.53%.
BPNA’s net interest income was $65.3 million, compared to $65.5
million for the previous quarter. The decrease of $0.2 million in
the net interest income is mainly driven by higher expense from
deposits to fund loan growth and the purchase and reinvestment of
investment securities in a lower rate environment. These negative
variances were partially offset by higher income from commercial
loans due to the growth of this portfolio. Net interest margin
decreased 19 basis points to 3.61% compared to 3.80% for the
previous quarter driven by the above mentioned variances. U.S.
earning assets yielded 4.32%, compared to 4.47% in the previous
quarter, while the cost of interest bearing liabilities was 0.94%,
compared to 0.87% in the previous quarter.
Non-interest income
Non-interest income was $76.0 million for the third quarter of
2016, a decrease of $34.5 million when compared to the second
quarter of 2016. The decrease in non-interest income was driven
primarily by higher FDIC loss-share expense by $49.1 million as a
result of a $54.9 million charge related to the FDIC arbitration
award, partially offset by lower recoveries on assets to be shared
with the FDIC in the recovery period.
This decrease was partially offset by:
- Higher other service fees by $2.2
million due to higher life insurance commission revenues;
- Higher net gain on sale of loans by
$8.5 million as a result of the sale of a non-accrual public sector
credit during the third quarter; and
- Higher other operating income by $5.2
million mainly due to higher aggregated net earnings from
investments under the equity method, principally due to the
unfavorable adjustment of $2.2 million recorded during the second
quarter as a result of the EVERTEC restatement.
Refer to Table B for further details.
Financial Impact of the 2010 FDIC-Assisted Transaction
(Unaudited)
Quarters ended Nine months ended (In thousands) 30-Sep-16
30-Jun-16 30-Sep-15 30-Sep-16 30-Sep-15
Income
Statement
Interest income on WB loans $40,867 $49,794 $47,982 $135,566
$160,909 Total FDIC loss-share (expense) income (61,723) (12,576)
1,207 (77,445) 24,421 Provision (reversal) for loan losses- WB
loans 6,612 (7,282) 20,206 (1,026)
46,296 Total revenues less provision (reversal) for loan losses
$(27,468) $44,500 $28,983 $59,147
$139,034
Balance
Sheet
WB loans $1,896,099 $1,932,062 $2,223,731 FDIC loss-share asset
152,467 214,029 311,946 FDIC true-up payment obligation
134,487 127,876 122,527
See additional details on accounting for the 2010 FDIC-Assisted
transaction in Table O.
Operating expenses
Operating expenses amounted to $323.7 million for the third
quarter of 2016, an increase of $14.5 million when compared to the
second quarter of 2016. The increase in operating expenses was
driven primarily by:
- Higher personnel cost by $4.5 million
mainly due to higher salaries from increased full time equivalent
employees, an additional working day in the quarter and higher
commission compensation in the insurance and wealth management
subsidiaries;
- Higher other taxes by $1.2 million
mainly due to higher municipal license and sales tax;
- Higher professional fees by $0.6
million mainly due to higher programming, processing and other
technology services by $1.9 million and higher attorney fees by
$1.4 million related to the FDIC arbitration proceedings, partially
offset by lower credit related expenses and reduced other
professional fees from the bulk sale of Westernbank loans and OREO
during the second quarter;
- Higher other operating expense by $9.2
million mainly due to higher operational losses at BPPR and BPNA
including increased reserves for legal matters, curtailment losses
on insured mortgage claims in our mortgage servicing business and
higher incidence of credit card fraud losses; and
- A goodwill impairment charge of $3.8
million at the securities subsidiary, recorded as part of the
Corporation’s annual goodwill impairment analysis.
These increases were partially offset by:
- Lower OREO expenses by $1.7 million
mainly due to the loss on the bulk sale of Westernbank OREO during
the second quarter, partially offset by higher mortgage OREO
write-downs at BPPR; and
- Lower credit and debit card processing,
volume, interchange and other expenses by $3.0 million due mainly
to earned volume credits.
Non-personnel credit-related costs, which include collections,
appraisals, credit related fees, and OREO expenses, amounted to
$15.3 million for the third quarter of 2016, compared to $18.0
million for the second quarter of 2016. The decrease was
principally due to lower losses on sales of OREO at BPPR.
Full-time equivalent employees were 7,866 as of September 30,
2016, compared to 7,826 as of June 30, 2016.
For a breakdown of operating expenses by category refer to table
B.
Income taxes
For the quarter ended September 30, 2016, the Corporation
recorded an income tax expense of $15.8 million, compared to $32.4
million for the previous quarter. The decline in the income tax
expense is mainly driven by lower taxable income at BPPR.
Additionally, in the third quarter BPPR recognized a $4.4 million
benefit related to reversal of uncertain tax positions reserves
associated with expired statutory provisions.
The effective income tax rate for the third quarter of 2016 was
25%, compared to 27% for the previous quarter. The effective tax
rate is impacted by the composition and source of the taxable
income.
Credit Quality
The Corporation continued to experience stable credit trends
despite challenging economic conditions in Puerto Rico. The shift
in the composition and the risk profile of the credit portfolios
over the last few years has better positioned the Corporation to
operate in the Island’s environment. The Corporation continues to
closely monitor changes in credit quality trends and is focused on
taking measures to minimize risks. The U.S. operation continued to
reflect positive results with strong growth and favorable credit
quality metrics.
- Inflows of NPLs held-in-portfolio,
excluding consumer loans, decreased by $5.6 million
quarter-over-quarter, mainly driven by lower commercial inflows of
$13.5 million, offset by higher mortgage inflows of $7.7 million in
the BPPR segment.
- Non-performing loans held-in-portfolio
increased slightly by $1.6 million from the second quarter of 2016,
mainly driven by higher mortgage NPLs of $7.7 million, offset by
lower commercial NPLs of $5.5 million in the BPPR segment. At
September 30, 2016, NPLs to total loans held-in-portfolio remained
flat at 2.6% quarter-over-quarter.
- Net charge-offs remained flat at $35.1
million quarter over quarter. NCOs in the BPPR segment decreased by
$3.3 million mainly driven by a decrease of $7.1 million in the
consumer NCOs due to a $7.1 million recovery related to the sale of
previously charged-off credit cards and personal loans. BPPR
construction NCOs increased by $4.1 million, mostly related to
higher recoveries in the previous quarter. NCOs in the BPNA segment
increased by $3.0 million, mostly due to higher mortgage NCOs. The
ratio of annualized net charge-offs to average non-covered loans
held-in-portfolio was 0.63%, flat from the second quarter of 2016.
The $7.1 million recovery from consumer loans reduced the NCO ratio
by 13 bps. Refer to Table J for further information on net
charge-offs and related ratios.
- The allowance for loan losses increased
by $7.5 million from the second quarter 2016 to $525.6 million,
mostly driven by the $9.4 million reserve increase related to the
annual recalibration of the environmental factors adjustment. The
general and specific reserves related to non-covered loans totaled
$396.5 million and $129.1 million, respectively, at quarter-end,
compared with $395.3 million and $122.8 million, respectively, as
of June 30, 2016. The ratio of the allowance for loan losses to
loans held-in-portfolio was 2.33% in the third quarter of 2016,
compared to 2.30% from the previous quarter.
- The ratio of the allowance for loan
losses to NPLs held-in-portfolio increased to 90.7%, compared to
89.7% in the previous quarter.
- The provision for loan losses for the
third quarter of 2016 amounted to $42.6 million, increasing by $2.9
million from the previous quarter. The provision to net charge-offs
ratio was 121.2% in the third quarter 2016, compared to 127.4% in
the previous quarter, excluding the recoveries related to the bulk
sale of Westernbank loans.
Non-Performing Assets (Unaudited)
(In thousands)
30-Sep-16 30-Jun-16 30-Sep-15 Total non-performing
loans held-in-portfolio, excluding covered loans $579,325 $577,739
$634,902 Non-performing loans held-for-sale - 39,544 47,681 Other
real estate owned (“OREO”), excluding covered OREO 184,828
177,025 155,826 Total non-performing assets,
excluding covered assets 764,153 794,308 838,409 Covered loans and
OREO 41,211 41,466 39,888 Total non-performing
assets $805,364 $835,774 $878,297 Net
charge-offs for the quarter (excluding covered loans)
$35,140 $35,401 $46,302 Ratios
(excluding covered loans):
Non-covered loans held-in-portfolio $22,595,972 $22,540,661
$22,498,066 Non-performing loans held-in-portfolio to loans
held-in-portfolio 2.56% 2.56% 2.82% Allowance for loan losses to
loans held-in-portfolio 2.33 2.30 2.38 Allowance for loan losses to
non-performing loans, excluding loans held-for-sale 90.73
89.68 84.42 Refer to Table H for additional
information.
Provision for Loan Losses
(Unaudited) Quarters ended Nine months ended
(In thousands) 30-Sep-16 30-Jun-16 30-Sep-15
30-Sep-16 30-Sep-15 Provision (reversal) for loan losses: BPPR
$36,281 $38,351 $68,755 $118,503 $161,197 BPNA 6,313
1,317 813 11,699 (1,450) Total provision for loan losses-
non-covered loans $42,594 $39,668 $69,568
$130,202 $159,747 Provision (reversal) for loan losses -
covered loans 750 804 (2,890) (1,551) 23,200
Total provision for loan losses $43,344 $40,472
$66,678 $128,651 $182,947
Credit Quality by Segment
(Unaudited) (In thousands) Quarters ended
BPPR
30-Sep-16
30-Jun-16 30-Sep-15 Provision for loan losses $36,281
$38,351 $68,755 Net charge-offs 32,959 36,222 47,245 Total
non-performing loans held-in-portfolio, excluding covered loans
551,238 550,632 609,469 Allowance / non-covered loans
held-in-portfolio 2.80% 2.77% 2.83%
Quarters ended
BPNA 30-Sep-16 30-Jun-16
30-Sep-15 Provision for loan losses $6,313 $1,317 $813 Net
charge-offs (recoveries) 2,181 (821) (943) Total non-performing
loans held-in-portfolio 28,087 27,107 25,433 Allowance /
non-covered loans held-in-portfolio 0.78% 0.72%
0.68%
Financial Condition Highlights
(Unaudited) (In
thousands) 30-Sep-16 30-Jun-16 30-Sep-15 Money
market, trading and investment securities $11,931,499 $10,368,794
$8,321,397 Loans not covered under loss-sharing agreements with the
FDIC 22,595,972 22,540,661 22,498,066 Loans covered under
loss-sharing agreements with the FDIC 588,211 607,170 665,428 Total
assets 39,054,296 37,606,148 35,522,462 Deposits 30,327,045
28,737,856 26,713,206 Borrowings 2,364,984 2,428,752 2,753,144
Liabilities from discontinued operations 1,815 1,815 1,800 Total
liabilities 33,673,901 32,246,317 30,472,826 Stockholders’ equity
5,380,395 5,359,831 5,049,636
Total assets increased by $1.4 billion from the second quarter
of 2016 driven by:
- An increase of $1.2 billion in money
market investments mainly at BPPR due to an increase in cash
balances from deposits;
- An increase of $0.4 billion in
investment securities available-for-sale mainly at BPNA due to
purchases of mortgage-backed agency pools, partially offset by
sales and principal pay-downs; and
- A net increase of $58.5 million in
non-covered loans held-in-portfolio mainly driven by growth in the
commercial portfolio at BPNA by $138.4 million, partially offset by
a decrease in mortgage loans portfolio at BPPR of $73.7 million
impacted by lower originations of residential mortgages.
These positive variances were partially offset by a decrease of
$61.6 million in the FDIC loss-share asset due mainly to the $54.9
million charge related to review board’s denial of BPPR’s claim in
connection with arbitration proceedings with the FDIC.
Total liabilities increased by $1.4 billion from the first
quarter of 2016, principally driven by:
- An increase of $1.6 billion in deposits
mainly due to increases in deposits from the Puerto Rico
government, NOW accounts, and non-interest bearing demand deposits
at BPPR. Refer to Table G for additional information on
deposits.
Stockholders’ equity increased by approximately $20.6 million
from the second quarter of 2016, mainly as a result of net income
for the quarter of $46.8 million, partially offset by an
unfavorable variance of $14.4 million in unrealized gains on
securities available-for-sale, declared dividends of $15.6 million
on common stock and $0.9 million in dividends on preferred
stock.
Common equity tier-1 ratio (“CET1”), book value per share and
tangible book value per share were 16.64%, $51.85 and $44.86,
respectively at September 30, 2016 compared to 16.29%, $51.68 and
$44.62 at June 30, 2016. Refer to Table A for capital ratios.
Forward-Looking
Statements
The information contained in this news release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on management’s current expectations and are
subject to risks and uncertainties. Please refer to our Annual
Report on Form 10-K for the year ended December 31, 2015, the
Quarterly Reports on Form 10-Q for the quarters ended March 31,
2016 and June 30, 2016, and our other filings with the Securities
and Exchange Commission for a discussion of factors that may cause
the Corporation's actual results to differ materially from any
future results expressed or implied by such forward-looking
statements. Those filings are available on the Corporation’s
website (www.popular.com) and on the Securities and Exchange
Commission website (www.SEC.gov). The Corporation does not
undertake to update or revise any forward-looking statement to
reflect events or circumstances that may arise after the date of
such statements.
Founded in 1893, Popular, Inc. is the leading banking
institution by both assets and deposits in Puerto Rico and ranks
among the top 50 U.S. banks by assets. Popular provides retail,
mortgage and commercial banking services through its principal
banking subsidiary, Banco Popular de Puerto Rico, as well as auto
and equipment leasing and financing, investment banking,
broker-dealer and insurance services through specialized
subsidiaries. In the United States, Popular has established a
community-banking franchise providing a broad range of financial
services and products with branches in New York, New Jersey and
Florida under the name of Popular Community Bank.
An electronic version of this press release can be found at the
Corporation’s website: www.popular.com.
Popular will hold a conference call to discuss the financial
results today Tuesday, October 25, 2016 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
Corporation’s 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 1-866-235-1201 or 1-412-902-4127.
A replay of the webcast will be archived in Popular’s website. A
telephone replay will be available one hour after the end of the
conference call through Thursday, November 24, 2016. The replay
dial in is 1-877-344-7529 or 1-412-317-0088. The replay passcode is
10093046.
Popular, Inc. Financial Supplement to Third Quarter 2016
Earnings Release Table A - Selected Ratios and Other
Information Table B - Consolidated Statement of Operations
Table C - Consolidated Statement of Financial Condition
Table D - Consolidated Average Balances and Yield / Rate
Analysis - QUARTER Table E - Consolidated Average Balances
and Yield / Rate Analysis - YEAR-TO-DATE Table F - Mortgage
Banking Activities and Other Service Fees Table G - Loans
and Deposits Table H - Non-Performing Assets Table I
- Activity in Non-Performing Loans Table J - Allowance for
Credit Losses, Net Charge-offs and Related Ratios Table K -
Allowance for Loan Losses - Breakdown of General and Specific
Reserves - CONSOLIDATED Table L - Allowance for Loan Losses
- Breakdown of General and Specific Reserves - PUERTO RICO
OPERATIONS Table M - Allowance for Loan Losses - Breakdown
of General and Specific Reserves - U.S. MAINLAND OPERATIONS
Table N - Reconciliation to GAAP Financial Measures Table O
- Financial Information - Westernbank Loans
POPULAR, INC.
Financial Supplement to Third Quarter 2016 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
Quarters ended Nine months ended
30-Sep-16 30-Jun-16 30-Sep-15
30-Sep-16 30-Sep-15 Basic EPS from continuing operations
$0.44 $0.85 $0.82 $2.11 $7.33 Basic EPS from discontinued
operations $- $- $- $- $0.01 Total Basic EPS $0.44 $0.85 $0.82
$2.11 $7.34 Diluted EPS from continuing operations $0.44 $0.85
$0.82 $2.11 $7.31 Diluted EPS from discontinued operations $- $- $-
$- $0.01 Total Diluted EPS $0.44 $0.85 $0.82 $2.11 $7.32 Average
common shares outstanding 103,296,443 103,245,717 102,969,214
103,243,851 102,923,018 Average common shares outstanding -
assuming dilution 103,465,385 103,343,486 103,150,482 103,383,949
103,137,762 Common shares outstanding at end of period 103,762,596
103,703,041 103,556,285 103,762,596 103,556,285 Market value
per common share $38.22 $29.30 $30.23 $38.22 $30.23 Market
capitalization - (In millions) $3,966 $3,038 $3,131 $3,966 $3,131
Return on average assets 0.49% 0.96% 0.95% 0.79% 2.89% . .
Return on average common equity 3.46% 6.80% 6.79% 5.59% 22.29%
Net interest margin 4.12% 4.33% 4.39% 4.29% 4.50%
Common equity per share $51.37 $51.20 $48.28 $51.37 $48.28
Book value per share $51.85 $51.68 $48.76 $51.85 $48.76
Tangible common book value per common share (non-GAAP) $44.86
$44.62 $42.71 $44.86 $42.71 Tangible common equity to
tangible assets (non-GAAP) 12.13% 12.53% 12.66% 12.13% 12.66%
Tier 1 capital
16.64%
16.29% 16.21%
16.64%
16.21% Total capital
19.65%
19.29% 18.78%
19.65%
18.78% Tier 1 leverage
11.21%
11.29% 11.75%
11.21%
11.75% Common Equity Tier 1 capital
16.64%
16.29% 16.21%
16.64%
16.21%
POPULAR, INC. Financial Supplement to Third
Quarter 2016 Earnings Release Table B - Consolidated
Statement of Operations (Unaudited)
Quarters ended Variance Quarter ended Variance
Nine months ended
Q3 2016
Q3 2016
(In thousands, except per share information)
30-Sep-16 30-Jun-16
vs. Q2 2016
30-Sep-15
vs. Q3 2015
30-Sep-16 30-Sep-15 Interest income: Loans $363,550
$369,721 $(6,171) $364,458 $(908) $1,096,468 $1,094,222 Money
market investments 4,568 3,889 679 2,003 2,565 11,320 5,294
Investment securities 37,732 36,725 1,007 31,671 6,061 110,728
93,269 Trading account securities 1,449 1,875
(426) 3,150 (1,701) 5,013 8,872
Total interest income 407,299 412,210
(4,911) 401,282 6,017 1,223,529
1,201,657 Interest expense: Deposits 32,362 30,599 1,763 28,357
4,005 92,835 80,479 Short-term borrowings 2,132 2,058 74 2,222 (90)
6,051 5,819 Long-term debt 19,118 19,002
116 19,968 (850) 57,993 58,876
Total interest expense 53,612 51,659
1,953 50,547 3,065 156,879 145,174 Net
interest income 353,687 360,551 (6,864) 350,735 2,952 1,066,650
1,056,483 Provision for loan losses - non-covered loans 42,594
39,668 2,926 69,568 (26,974) 130,202 159,747 Provision (reversal)
for loan losses - covered loans 750 804 (54)
(2,890) 3,640 (1,551) 23,200 Net
interest income after provision for loan losses 310,343
320,079 (9,736) 284,057 26,286
937,999 873,536 Service charges on deposit accounts 40,776
40,296 480 40,960 (184) 120,934 120,115 Other service fees 59,169
56,945 2,224 56,115 3,054 169,496 169,162 Mortgage banking
activities 15,272 16,227 (955) 24,195 (8,923) 42,050 58,372 Net
gain and valuation adjustments on investment securities 349 1,583
(1,234) 136 213 1,932 141 Other-than-temporary impairment losses on
investment securities - (209) 209 - - (209) (14,445) Trading
account (loss) profit (113) 1,117 (1,230) (398) 285 842 (3,092) Net
gain on sale of loans, including valuation adjustments on loans
held-for-sale 8,549 - 8,549 - 8,549 8,245 602 Adjustments (expense)
to indemnity reserves on loans sold (4,390) (5,746) 1,356 (5,874)
1,484 (14,234) (9,981) FDIC loss-share (expense) income (61,723)
(12,576) (49,147) 1,207 (62,930) (77,445) 24,421 Other operating
income 18,089 12,866 5,223 14,768
3,321 46,500 41,808 Total non-interest
income 75,978 110,503 (34,525) 131,109
(55,131) 298,111 387,103 Operating expenses:
Personnel costs Salaries 77,770 75,792 1,978 78,193 (423) 230,860
227,040 Commissions, incentives and other bonuses 18,528 16,982
1,546 18,618 (90) 56,279 61,290 Pension, postretirement and medical
insurance 13,413 12,279 1,134 12,578 835 38,803 33,666 Other
personnel costs, including payroll taxes 11,513
11,655 (142) 11,474 39 39,081
36,302 Total personnel costs 121,224 116,708 4,516 120,863 361
365,023 358,298 Net occupancy expenses 21,626 21,714 (88) 21,277
349 63,770 66,272 Equipment expenses 15,922 15,261 661 14,739 1,183
45,731 44,075 Other taxes 11,324 10,170 1,154 9,951 1,373 31,689
29,638 Professional fees Collections, appraisals and other credit
related fees 4,005 4,974 (969) 5,049 (1,044) 13,479 18,660
Programming, processing and other technology services 52,174 50,232
1,942 49,134 3,040 152,270 143,700 Legal fees, excluding
collections 11,428 10,009 1,419 6,624 4,804 27,691 19,401
Other professional fees 13,659 15,410 (1,751)
16,347 (2,688) 43,910 49,370 Total
professional fees 81,266 80,625 641 77,154 4,112 237,350 231,131
Communications 5,785 6,012 (227) 6,058 (273) 18,117 18,387 Business
promotion 12,726 13,705 (979) 12,325 401 37,541 36,914 FDIC deposit
insurance 5,854 5,362 492 7,300 (1,446) 18,586 22,240 Other real
estate owned (OREO) expenses 11,295 12,980 (1,685) 7,686 3,609
33,416 75,571 Credit and debit card processing, volume, interchange
and other expenses 3,640 6,617 (2,977) 6,449 (2,809) 15,979 17,032
Other operating expenses Operational losses 19,609 7,146 12,463
9,648 9,961 29,416 15,572 All other 6,503
9,752 (3,249) 9,454 (2,951) 25,037
41,377 Total other operating expenses 26,112 16,898 9,214
19,102 7,010 54,453 56,949 Amortization of intangibles 3,097 3,097
- 3,512 (415) 9,308 8,497 Goodwill impairment charge 3,801 - 3,801
- 3,801 3,801 - Restructuring costs - - -
481 (481) - 17,408 Total
operating expenses 323,672 309,149 14,523
306,897 16,775 934,764 982,412 Income
from continuing operations before income tax 62,649 121,433
(58,784) 108,269 (45,620) 301,346 278,227 Income tax expense
(benefit) 15,839 32,446 (16,607) 22,620
(6,781) 80,550 (478,344) Income from
continuing operations 46,810 88,987 (42,177) 85,649 (38,839)
220,796 756,571 (Loss) income from discontinued operations, net of
tax - - - (9) 9 -
1,347
Net income $46,810 $88,987
$(42,177) $85,640 $(38,830) $220,796
$757,918
Net income applicable to common stock
$45,880 $88,056 $(42,176) $84,709
$(38,829) $218,004 $755,126
Net income per common
share - basic: Net income from continuing operations $0.44
$0.85 $(0.41) $0.82 $(0.38) $2.11 $7.33 Net income from
discontinued operations - - - -
- - 0.01 Net income per common share - basic
$0.44 $0.85 $(0.41) $0.82
$(0.38) $2.11 $7.34
Net income per common share -
diluted: Net income from continuing operations $0.44 $0.85
$(0.41) $0.82 $(0.38) $2.11 $7.31 Net income from
discontinued operations - - - -
- - 0.01 Net income per common share - diluted
$0.44 $0.85 $(0.41) $0.82
$(0.38) $2.11 $7.32
Dividends Declared per Common
Share $0.15 $0.15 $- $0.15
$- $0.45 $0.15
Popular, Inc. Financial
Supplement to Third Quarter 2016 Earnings Release Table C -
Consolidated Statement of Financial Condition
(Unaudited)
Variance Q3 2016 vs. (In thousands) 30-Sep-16
30-Jun-16 30-Sep-15 Q2 2016 Assets: Cash and due from
banks $350,545 $365,308 $320,555 $(14,763) Money market investments
3,963,495 2,785,500 2,408,571 1,177,995 Trading account securities,
at fair value 72,584 72,530 137,943 54 Investment securities
available-for-sale, at fair value 7,628,656 7,242,676 5,500,931
385,980 Investment securities held-to-maturity, at amortized cost
97,973 99,525 100,295 (1,552) Other investment securities, at lower
of cost or realizable value 168,791 168,563 173,657 228 Loans
held-for-sale, at lower of cost or fair value 72,076 122,338
171,019 (50,262) Loans held-in-portfolio: Loans not covered under
loss-sharing agreements with the FDIC 22,714,358 22,655,877
22,601,271 58,481 Loans covered under loss-sharing agreements with
the FDIC 588,211 607,170 665,428 (18,959) Less: Unearned income
118,386 115,216 103,205 3,170 Allowance for loan
losses 555,855 548,720 570,514 7,135
Total loans held-in-portfolio, net 22,628,328
22,599,111 22,592,980 29,217 FDIC loss-share
asset 152,467 214,029 311,946 (61,562) Premises and equipment, net
537,975 535,865 495,103 2,110 Other real estate not covered under
loss-sharing agreements with the FDIC 184,828 177,025 155,826 7,803
Other real estate covered under loss-sharing agreements with the
FDIC 37,414 37,984 35,701 (570) Accrued income receivable 119,691
120,979 118,044 (1,288) Mortgage servicing assets, at fair value
200,354 203,577 210,851 (3,223) Other assets 2,163,939 2,179,060
2,212,722 (15,121) Goodwill 627,294 631,095 504,925 (3,801) Other
intangible assets 47,886 50,983 71,393
(3,097) Total assets $39,054,296 $37,606,148
$35,522,462 $1,448,148 Liabilities and Stockholders’ Equity:
Liabilities: Deposits: Non-interest bearing $6,950,287 $6,531,108
$6,070,719 $419,179 Interest bearing
23,376,758 22,206,748 20,642,487 1,170,010
Total deposits 30,327,045 28,737,856
26,713,206 1,589,189 Federal funds purchased and
assets sold under agreements to repurchase 765,251 821,604
1,085,765 (56,353) Other short-term borrowings 1,200 31,200 1,200
(30,000) Notes payable 1,598,533 1,575,948 1,666,179 22,585 Other
liabilities 980,057 1,077,894 1,004,676 (97,837) Liabilities from
discontinued operations 1,815 1,815 1,800
- Total liabilities 33,673,901 32,246,317
30,472,826 1,427,584 Stockholders’ equity: Preferred
stock 50,160 50,160 50,160 - Common stock 1,040 1,039 1,037 1
Surplus 4,234,842 4,232,835 4,200,805 2,007 Retained earnings
1,259,295 1,228,979 993,309 30,316 Treasury stock (7,647) (7,570)
(5,869) (77) Accumulated other comprehensive loss (157,295)
(145,612) (189,806) (11,683)
Total stockholders’ equity 5,380,395 5,359,831
5,049,636 20,564 Total liabilities and stockholders’ equity
$39,054,296 $37,606,148 $35,522,462
$1,448,148
Popular, Inc. Financial Supplement to Third
Quarter 2016 Earnings Release Table D - Consolidated Average
Balances and Yield / Rate Analysis - QUARTER (Unaudited)
Quarter ended Quarter ended Quarter
ended Variance Variance 30-Sep-16 30-Jun-16 30-Sep-15 Q3 2016 vs.
Q2 2016 Q3 2016 vs. Q3 2015 ($ amounts in millions; yields not
on a taxable Average Income /
Yield /
Average Income /
Yield /
Average Income /
Yield /
Average Income /
Yield /
Average Income /
Yield /
equivalent basis) balance Expense Rate balance
Expense Rate balance Expense Rate
balance Expense Rate balance Expense
Rate Assets: Interest earning assets: Money market, trading
and investment securities $11,159 $43.7 1.57 %
$10,286 $42.5 1.65 % $8,667 $36.8 1.70
% $873 $1.2 (0.08) % $2,492 $6.9 (0.13)
% Loans not covered under loss-sharing agreements with the FDIC:
Commercial 9,269 113.8 4.88 9,150 110.9 4.88 8,769 109.6 4.96 119
2.9 - 500 4.2 (0.08) Construction 739 10.1 5.44 723 9.7 5.43 681
10.8 6.30 16 0.4 0.01 58 (0.7) (0.86) Mortgage 6,637 88.3 5.32
6,743 88.9 5.27 7,072 88.8 5.02 (106) (0.6) 0.05 (435) (0.5) 0.30
Consumer 3,847 99.3 10.27 3,865 99.4 10.34 3,811 97.2 10.12 (18)
(0.1) (0.07) 36 2.1 0.15 Lease financing 669 11.2
6.72 651 11.0 6.73 594 10.0 6.75 18
0.2 (0.01) 75 1.2 (0.03) Total loans
(excluding WB loans) 21,161 322.7 6.08 21,132 319.9 6.08 20,927
316.4 6.02 29 2.8 - 234 6.3 0.06 WB loans 1,881 40.9
8.65 2,013 49.8 9.94 2,221 48.0 8.59
(132) (8.9) (1.29) (340) (7.1)
0.06 Total loans 23,042 363.6 6.29 23,145
369.7 6.41 23,148 364.4 6.26 (103)
(6.1) (0.12) (106) (0.8) 0.03 Total
interest earning assets 34,201 $407.3 4.75 % 33,431
$412.2 4.95 % 31,815 $401.2 5.02 % 770
($4.9) (0.20) % 2,386 $6.1 (0.27) %
Allowance for loan losses (553) (539) (559) (14) 6 Other
non-interest earning assets 4,443 4,479 4,584 (36) (141) Total
average assets $38,091 $37,371 $35,840 $720 $2,251
Liabilities and Stockholders' Equity: Interest bearing deposits:
NOW and money market $7,326 $7.0 0.38 % $7,023 $6.6 0.38 % $5,742
$4.9 0.34 % $303 $0.4 - % $1,584 $2.1 0.04 % Savings 7,550 4.6 0.24
7,487 4.4 0.24 7,055 4.1 0.23 63 0.2 - 495 0.5 0.01 Time deposits
7,859 20.7 1.05 7,866 19.6 1.00 8,158
19.4 0.94 (7) 1.1 0.05 (299) 1.3
0.11 Total interest bearing deposits 22,735 32.3 0.57 22,376
30.6 0.55 20,955 28.4 0.54 359 1.7 0.02 1,780 3.9 0.03 Borrowings
2,398 21.3 3.55 2,307 21.0 3.67 2,861
22.1 3.09 91 0.3 (0.12)
(463)
(0.8) 0.46 Total interest bearing liabilities 25,133
53.6 0.85 24,683 51.6 0.84 23,816
50.5 0.84 450 2.0 0.01 1,317 3.1
0.01 Net interest spread 3.90 % 4.11 % 4.18 % (0.21) %
(0.28) % Non-interest bearing deposits 6,676 6,481 6,144 195 532
Other liabilities 955 943 876 12 79 Liabilities from discontinued
operations 2 2 2 - - Stockholders' equity 5,325 5,262 5,002 63 323
Total average liabilities and stockholders' equity $38,091 $37,371
$35,840 $720 $2,251 Net interest income / margin non-taxable
equivalent basis $353.7 4.12 % $360.6 4.33 % $350.7
4.39 % ($6.9) (0.21) % $3.0 (0.27) %
Popular, Inc. Financial Supplement to Third Quarter 2016
Earnings Release Table E - Consolidated Average Balances and
Yield / Rate Analysis - YEAR-TO-DATE (Unaudited)
Nine months
ended Nine months ended 30-Sep-16 30-Sep-15 Variance Average Income
/ Yield / Average Income / Yield / Average Income / Yield / ($
amounts in millions; yields not on a taxable equivalent basis)
balance Expense Rate balance Expense
Rate balance Expense Rate Assets: Interest
earning assets: Money market, trading and investment securities
$10,136 $127.0 1.67 % $8,340 $107.4
1.72 % $1,796 $19.6 (0.05) % Loans not covered under
loss-sharing agreements with the FDIC: Commercial 9,126 335.3 4.91
8,627 318.5 4.93 499 16.8 (0.02) Construction 722 29.1 5.39 600
27.1 6.05 122 2.0 (0.66) Mortgage 6,736 266.9 5.28 6,989 267.9 5.11
(253) (1.0) 0.17 Consumer 3,839 296.7 10.32 3,826 289.8 10.13 13
6.9 0.19 Lease financing 650 32.9 6.74 582
30.1 6.89 68 2.8 (0.15) Total loans (excluding
WB loans) 21,073 960.9 6.09 20,624 933.4 6.05 449 27.5 0.04 WB
loans 1,984 135.6 9.12 2,392 160.9 8.99
(408) (25.3) 0.13 Total loans 23,057 1,096.5
6.35 23,016 1,094.3 6.35 41 2.2
- Total interest earning assets 33,193 $1,223.5 4.92
% 31,356 $1,201.7 5.12 % 1,837 $21.8
(0.20) % Allowance for loan losses (542) (589) 47 Other
non-interest earning assets 4,469 4,288 181 Total average assets
$37,120 $35,055 $2,065 Liabilities and Stockholders' Equity:
Interest bearing deposits: NOW and money market $6,689 $19.2 0.38 %
$5,413 $14.0 0.35 % $1,276 $5.2 0.03 % Savings 7,438 13.3 0.24
6,996 12.1 0.23 442 1.2 0.01 Time deposits 7,928 60.3
1.02 8,146 54.4 0.89 (218) 5.9 0.13
Total interest bearing deposits 22,055 92.8 0.56 20,555 80.5 0.52
1,500 12.3 0.04 Borrowings 2,382 64.0 3.59 2,865
64.7 3.01 (483) (0.7) 0.58 Total
interest bearing liabilities 24,437 156.8 0.86 23,420
145.2 0.83 1,017 11.6 0.03 Net interest
spread 4.06 % 4.29 % (0.23) % Non-interest bearing deposits 6,484
6,113 371 Other liabilities 937 942 (5) Liabilities from
discontinued operations 2 2 - Stockholders' equity 5,260 4,578 682
Total average liabilities and stockholders' equity $37,120 $35,055
$2,065 Net interest income / margin non-taxable equivalent
basis $1,066.7 4.29 % $1,056.5 4.50 % $10.2
(0.21) %
Popular, Inc.
Financial Supplement to Third Quarter 2016
Earnings Release Table F - Mortgage Banking Activities and
Other Service Fees (Unaudited) Mortgage
Banking Activities Variance Quarters ended Q3 2016 vs. Q3 2016
vs. Nine months ended Variance (In thousands) 30-Sep-16
30-Jun-16 30-Sep-15 Q2 2016 Q3 2015
30-Sep-16 30-Sep-15 2016 vs. 2015 Mortgage
servicing fees, net of fair value adjustments: Mortgage servicing
fees $14,520 $14,675 $17,020 $(155) $(2,500) $43,997 $43,957 $40
Mortgage servicing rights fair value adjustments
(6,062) (4,340) 1,038 (1,722) (7,100)
(18,879) (5,808) (13,071) Total mortgage
servicing fees, net of fair value adjustments 8,458
10,335 18,058 (1,877) (9,600) 25,118
38,149 (13,031) Net gain on sale of loans, including
valuation on loans held-for-sale 8,857 8,474
9,698 383 (841) 24,441 24,999
(558) Trading account (loss) profit: Unrealized (losses) gains on
outstanding derivative positions 95 (59) (69) 154 164 (44) (10)
(34) Realized (losses) gains on closed derivative positions
(2,138) (2,523) (3,492) 385
1,354 (7,465) (4,766) (2,699) Total trading
account (loss) profit (2,043) (2,582) (3,561)
539 1,518 (7,509) (4,776)
(2,733) Total mortgage banking activities $15,272
$16,227 $24,195 $(955) $(8,923) $42,050
$58,372 $(16,322)
Other Service Fees Variance
Quarters ended Q3 2016 vs. Q3 2016 vs. Nine months ended Variance
(In thousands) 30-Sep-16 30-Jun-16 30-Sep-15
Q2 2016 Q3 2015 30-Sep-16 30-Sep-15
2016 vs. 2015 Other service fees: Debit card fees $11,483
$11,382 $11,288 $101 $195 $34,153 $34,408 $(255) Insurance fees
15,943 13,885 14,517 2,058 1,426 42,678 40,163 2,515 Credit card
fees 17,644 17,700 16,879 (56) 765 52,202 50,639 1,563 Sale and
administration of investment products 5,542 5,417 5,737 125 (195)
15,798 18,269 (2,471) Trust fees 4,968 4,827 4,403 141 565 14,029
13,919 110 Other fees 3,589 3,734 3,291
(145) 298 10,636 11,764 (1,128)
Total other service fees $59,169 $56,945
$56,115 $2,224 $3,054 $169,496 $169,162
$334
Popular, Inc.
Financial Supplement to Third Quarter 2016 Earnings Release
Table G - Loans and Deposits (Unaudited)
Loans - Ending Balances Variance Q3 2016 vs.
Q3 2016 vs.
(In thousands) 30-Sep-16 30-Jun-16 30-Sep-15
Q2 2016
Q3 2015
Loans not covered under FDIC loss-sharing agreements: Commercial
$10,537,191 $10,359,815 $10,130,424 $177,376 $406,767 Construction
731,352 717,332 692,492 14,020 38,860 Legacy [1] 47,914 49,709
67,974 (1,795) (20,060) Lease financing 682,810 664,094 606,927
18,716 75,883 Mortgage 6,774,497 6,864,118 7,165,479 (89,621)
(390,982) Consumer 3,822,208 3,885,593
3,834,770 (63,385) (12,562) Total non-covered loans
held-in-portfolio $22,595,972 $22,540,661 $22,498,066 $55,311
$97,906 Loans covered under FDIC loss-sharing agreements
588,211 607,170 665,428 (18,959)
(77,217) Total loans held-in-portfolio $23,184,183
$23,147,831 $23,163,494 $36,352 $20,689 Loans
held-for-sale: Commercial $- $39,544 $47,447 $(39,544) $(47,447)
Construction - - 10 - (10) Mortgage 72,076 82,794
123,562 (10,718) (51,486) Total loans
held-for-sale $72,076 $122,338 $171,019
$(50,262) $(98,943) Total loans $23,256,259
$23,270,169 $23,334,513 $(13,910) $(78,254)
[1] The legacy portfolio is comprised of commercial loans,
construction loans and lease financings related to certain lending
products exited by the Corporation as part of restructuring efforts
carried out in prior years at the BPNA segment.
Deposits -
Ending Balances Variance Q3 2016 vs.
Q3 2016 vs.
(In thousands) 30-Sep-16 30-Jun-16 30-Sep-15
Q2 2016
Q3 2015
Demand deposits [1] $9,161,839 $8,106,291 $7,027,672 $1,055,548
$2,134,167 Savings, NOW and money market deposits (non-brokered)
12,872,072 12,289,793 11,178,357 582,279 1,693,715 Savings, NOW and
money market deposits (brokered) 391,128 387,026 405,903 4,102
(14,775) Time deposits (non-brokered) 7,619,232 7,570,673 6,870,816
48,559 748,416 Time deposits (brokered CDs) 282,774
384,073 1,230,458 (101,299) (947,684) Total
deposits $30,327,045 $28,737,856 $26,713,206
$1,589,189 $3,613,839 [1] Includes interest and
non-interest bearing demand deposits.
Popular, Inc. Financial
Supplement to Third Quarter 2016 Earnings Release Table H -
Non-Performing Assets (Unaudited) Variance As a %
of As a % of As a % of
loans HIP by
loans HIP by
loans HIP by
Q3 2016 vs.
Q3 2016 vs.
(Dollars in thousands) 30-Sep-16 category 30-Jun-16
category 30-Sep-15 category
Q2 2016
Q3 2015
Non-accrual loans: Commercial $170,571 1.6 % $175,615 1.7 %
$239,397 2.4 % $(5,044) $(68,826) Construction - - 2,523 0.4 3,605
0.5 (2,523) (3,605) Legacy [1] 3,450 7.2 3,839 7.7 4,059 6.0 (389)
(609) Lease financing 2,878 0.4 3,019 0.5 3,091 0.5 (141) (213)
Mortgage 345,776 5.1 338,048 4.9 343,410 4.8 7,728 2,366 Consumer
56,650 1.5 54,695 1.4 41,340 1.1 1,955
15,310 Total non-performing loans held-in- portfolio,
excluding covered loans 579,325 2.6 % 577,739 2.6 % 634,902 2.8 %
1,586 (55,577) Non-performing loans held-for-sale [2] - 39,544
47,681 (39,544) (47,681) Other real estate owned (“OREO”),
excluding covered OREO 184,828 177,025
155,826 7,803 29,002 Total
non-performing assets, excluding covered assets 764,153 794,308
838,409 (30,155) (74,256) Covered loans and OREO 41,211
41,466 39,888 (255)
1,323 Total non-performing assets $805,364
$835,774 $878,297 $(30,410)
$(72,933) Accruing loans past due 90 days or more [3]
$418,652 $413,319 $443,497
$5,333 $(24,845)
Ratios excluding covered
loans: Non-performing loans held-in-portfolio to loans
held-in-portfolio 2.56 % 2.56 % 2.82 % Allowance for loan losses to
loans held-in-portfolio 2.33 2.30 2.38 Allowance for loan losses to
non-performing loans, excluding loans held-for-sale 90.73
89.68 84.42
Ratios including covered loans: Non-performing assets
to total assets 2.06 % 2.22 % 2.47 % Non-performing loans
held-in-portfolio to loans held-in-portfolio 2.52 2.51 2.76
Allowance for loan losses to loans held-in-portfolio 2.40 2.37 2.46
Allowance for loan losses to non-performing loans, excluding loans
held-for-sale 95.32 94.41 89.97
[1] The legacy portfolio is
comprised of commercial loans, construction loans and lease
financings related to certain lending products exited by the
Corporation as part of restructuring efforts carried out in prior
years at the BPNA segment. [2] There were no non-performing loans
held-for-sale as of September 30, 2016 (June 30, 2016 - $40 million
in commercial loans; September 30, 2015 - $47 million in commercial
loans, $10 million in construction loans and $224 thousand in
mortgage loans.)
[3] It is the Corporation’s 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.
These balances include $174 million of residential mortgage loans
insured by FHA or guaranteed by the VA that are no longer accruing
interest as of September 30, 2016 (June 30, 2016 - $149 million;
September 30, 2015 - $159 million). Furthermore, the Corporation
has approximately $72 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 Corporation's
policy to exclude these balances from non-performing assets (June
30, 2016 - $63 million; September 30, 2015 - $71 million).
Popular, Inc. Financial Supplement to Third Quarter 2016
Earnings Release Table I - Activity in Non-Performing
Loans (Unaudited)
Commercial loans held-in-portfolio: Quarter
ended Quarter ended 30-Sep-16 30-Jun-16 (In thousands) BPPR
BPNA Popular, Inc. BPPR BPNA
Popular, Inc. Beginning balance NPLs $172,584 $3,031 $175,615
$182,639 $14,992 $197,631 Plus: New non-performing loans 12,520
1,609 14,129 26,029 2,254 28,283 Advances on existing
non-performing loans - 164 164 - 8 8 Reclassification from
construction loans to commercial loans 2,436 - 2,436 - - - Less:
Non-performing loans transferred to OREO (2,223) - (2,223) (1,815)
- (1,815) Non-performing loans charged-off (7,918) (141) (8,059)
(15,219) (254) (15,473) Loans returned to accrual status / loan
collections (10,352) (1,139) (11,491)
(19,050) (13,969) (33,019) Ending balance NPLs
$167,047 $3,524 $170,571 $172,584
$3,031 $175,615
Construction loans
held-in-portfolio: Quarter ended Quarter ended 30-Sep-16
30-Jun-16 (In thousands) BPPR BPNA Popular,
Inc. BPPR BPNA Popular, Inc. Beginning balance
NPLs $2,423 $100 $2,523 $3,270 $671 $3,941 Plus: New non-performing
loans 1,150 - 1,150 186 - 186 Less: Non-performing loans
charged-off (985) - (985) (8) - (8) Loans returned to accrual
status / loan collections (152) (100) (252) (1,025) (571) (1,596)
Reclassification from construction loans to commercial loans
(2,436) - (2,436) - - - Ending
balance NPLs $- $- $- $2,423
$100 $2,523
Mortgage loans held-in-portfolio:
Quarter ended Quarter ended 30-Sep-16 30-Jun-16 (In thousands)
BPPR BPNA Popular, Inc. BPPR
BPNA Popular, Inc. Beginning balance NPLs $323,658 $14,390
$338,048 $322,838 $12,069 $334,907 Plus: New non-performing loans
87,340 6,715 94,055 79,688 6,532 86,220 Less: Non-performing loans
transferred to OREO (14,398) (384) (14,782) (12,521) (445) (12,966)
Non-performing loans charged-off (9,481) (1,994) (11,475) (10,648)
(130) (10,778) Loans returned to accrual status / loan collections
(55,773) (4,297) (60,070) (55,699)
(3,636) (59,335) Ending balance NPLs $331,346
$14,430 $345,776 $323,658 $14,390
$338,048
Legacy loans held-in-portfolio: Quarter ended Quarter ended
30-Sep-16 30-Jun-16 (In thousands) BPPR BPNA
Popular, Inc. BPPR BPNA Popular, Inc.
Beginning balance NPLs $- $3,839 $3,839 $- $4,046 $4,046 Plus: New
non-performing loans - 45 45 - 552 552 Advances on existing
non-performing loans - 135 135 - - - Less: Non-performing loans
transferred to OREO - (44) (44) - - - Non-performing loans
charged-off - (146) (146) - (54) (54) Loans returned to accrual
status / loan collections - (379) (379)
- (705) (705) Ending balance NPLs $-
$3,450 $3,450 $- $3,839 $3,839
Total non-performing loans held-in-portfolio (excluding consumer
and covered loans): Quarter ended Quarter ended 30-Sep-16
30-Jun-16 (In thousands) BPPR BPNA
Popular, Inc. BPPR BPNA Popular, Inc.
Beginning balance NPLs $498,665 $21,360 $520,025 $508,747 $31,778
$540,525 Plus: New non-performing loans 101,010 8,369 109,379
105,903 9,338 115,241 Advances on existing non-performing loans -
299 299 - 8 8 Reclassification from construction loans to
commercial loans 2,436 - 2,436 - - - Less: Non-performing loans
transferred to OREO (16,621) (428) (17,049) (14,336) (445) (14,781)
Non-performing loans charged-off (18,384) (2,281) (20,665) (25,875)
(438) (26,313) Loans returned to accrual status / loan collections
(66,277) (5,915) (72,192) (75,774) (18,881) (94,655)
Reclassification from construction loans to commercial loans
(2,436) - (2,436) - - - Ending
balance NPLs $498,393 $21,404 $519,797
$498,665 $21,360 $520,025
Popular, Inc.
Financial Supplement to Third Quarter 2016 Earnings Release
Table J - Allowance for Credit Losses, Net Charge-offs and
Related Ratios (Unaudited)
Quarter ended Quarter ended Quarter ended
30-Sep-16 30-Jun-16 30-Sep-15
Non-covered
Covered Non-covered Covered
Non-covered
Covered (Dollars in thousands) loans loans
Total loans loans Total loans
loans Total Balance at beginning of period $518,139
$30,581 $548,720 $508,427 $30,045 $538,472 $512,739 $38,074
$550,813 Provision (reversal of provision) for loan losses
42,594 750 43,344 39,668 804
40,472 69,568 (2,890) 66,678
560,733 31,331 592,064 548,095
30,849 578,944 582,307 35,184 617,491
Net loans charged-off (recovered): BPPR Commercial 3,199 -
3,199 5,647 - 5,647 9,172 - 9,172 Construction 886 - 886 (3,226) -
(3,226) (2,648) - (2,648) Lease financing 816 - 816 434 - 434 894 -
894 Mortgage 15,237 661 15,898 13,464 699 14,163 15,524 601 16,125
Consumer 12,821 408 13,229 19,903
(431) 19,472 24,303 74 24,377
Total BPPR 32,959 1,069 34,028 36,222
268 36,490 47,245 675 47,920
BPNA Commercial (1,173) - (1,173) (1,265) - (1,265) (1,959)
- (1,959) Legacy [1] (520) - (520) (893) - (893) (603) - (603)
Mortgage 1,942 - 1,942 16 - 16 787 - 787 Consumer 1,932
- 1,932 1,321 - 1,321 832
- 832 Total BPNA 2,181 -
2,181 (821) - (821) (943) -
(943) Total loans charged-off - Popular, Inc.
35,140 1,069 36,209 35,401 268
35,669 46,302 675 46,977 Net
(write-downs) recoveries [2] - - -
5,445 - 5,445 - - -
Balance at end of period $525,593 $30,262
$555,855 $518,139 $30,581 $548,720
$536,005 $34,509 $570,514 POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio 0.63
% 0.63 % 0.63 % 0.62 % 0.83 % 0.82 % Provision for loan losses to
net charge-offs [3] 1.21 x 1.20 x 1.27 x 1.29 x 1.50 x 1.42 x
BPPR Annualized net charge-offs to average loans
held-in-portfolio 0.77 % 0.77 % 0.83 % 0.81 % 1.07 % 1.04 %
Provision for loan losses to net charge-offs [3] 1.10 x 1.09 x 1.21
x 1.22 x 1.46 x 1.37 x BPNA Annualized net charge-offs
(recoveries) to average loans held-in-portfolio 0.17 % (0.06) %
(0.08) % Provision for loan losses to net charge-offs (recoveries)
2.89
(1.60) N.M. [1] The
legacy portfolio is comprised of commercial loans, construction
loans and lease financings related to certain lending products
exited by the Corporation as part of restructuring efforts carried
out in prior years at the BPNA segment. [2] Net write-downs are
related to loans sold or reclassified to held-for-sale. [3]
Excluding provision for loan losses and net (write-downs)
recoveries related to loans sold or reclassified to held-for-sale.
N.M. - Not meaningful.
Popular, Inc. Financial Supplement
to Third Quarter 2016 Earnings Release Table K - Allowance
for Loan Losses - Breakdown of General and Specific Reserves -
CONSOLIDATED (Unaudited)
30-Sep-16 Lease (Dollars in
thousands) Commercial Construction
Legacy [2] Mortgage financing Consumer
Total [3]
Specific ALLL $58,527 $- $- $45,557 $540 $24,433 $129,057 Impaired
loans [1] $328,868 $- $- $496,868 $1,899 $110,929 $938,564 Specific
ALLL to impaired loans [1] 17.80 % - % - % 9.17 % 28.44 %
22.03 % 13.75 % General ALLL $165,639 $9,942 $1,682 $93,971 $7,375
$117,927 $396,536 Loans held-in-portfolio, excluding impaired loans
[1] $10,208,312 $731,352 $47,914 $6,277,639 $680,911 $3,711,280
$21,657,408 General ALLL to loans held-in-portfolio, excluding
impaired loans [1] 1.62 % 1.36 % 3.51 % 1.50 % 1.08 % 3.18 %
1.83 % Total ALLL $224,166 $9,942 $1,682 $139,528 $7,915 $142,360
$525,593 Total non-covered loans held-in-portfolio [1] $10,537,180
$731,352 $47,914 $6,774,507 $682,810 $3,822,209 $22,595,972 ALLL to
loans held-in-portfolio [1] 2.13 % 1.36 % 3.51 % 2.06 % 1.16
% 3.72 % 2.33 % [1] Excludes covered loans acquired on the
Westernbank FDIC-assisted transaction. [2] The legacy portfolio is
comprised of commercial loans, construction loans and lease
financings related to certain lending products exited by the
Corporation as part of restructuring efforts carried out in prior
years at the BPNA reportable segment. [3] Excludes covered loans
acquired on the Westernbank FDIC-assisted transaction. As of
September 30, 2016 the general allowance on the covered loans
amounted to $30.3 million.
30-Jun-16 Lease (Dollars in thousands)
Commercial Construction Legacy [2]
Mortgage financing Consumer
Total [3]
Specific ALLL $53,350 $116 $- $43,909 $548 $24,898 $122,821
Impaired loans [1] $335,881 $1,036 $- $484,725 $2,110 $111,610
$935,362 Specific ALLL to impaired loans [1] 15.88 % 11.20 %
- % 9.06 % 25.97 % 22.31 % 13.13 % General ALLL $156,331 $10,949
$1,852 $97,577 $9,546 $119,063 $395,318 Loans held-in-portfolio,
excluding impaired loans [1] $10,023,934 $716,296 $49,709
$6,379,393 $661,984 $3,773,983 $21,605,299 General ALLL to loans
held-in-portfolio, excluding impaired loans [1] 1.56 % 1.53
% 3.73 % 1.53 % 1.44 % 3.15 % 1.83 % Total ALLL $209,681 $11,065
$1,852 $141,486 $10,094 $143,961 $518,139 Total non-covered loans
held-in-portfolio [1] $10,359,815 $717,332 $49,709 $6,864,118
$664,094 $3,885,593 $22,540,661 ALLL to loans held-in-portfolio
[1] 2.02 % 1.54 % 3.73 % 2.06 % 1.52 % 3.70 % 2.30 % [1]
Excludes covered loans acquired on the Westernbank FDIC-assisted
transaction. [2] The legacy portfolio is comprised of commercial
loans, construction loans and lease financings related to certain
lending products exited by the Corporation as part of restructuring
efforts carried out in prior years at the BPNA reportable segment.
[3] Excludes covered loans acquired on the Westernbank
FDIC-assisted transaction. As of June 30, 2016 the general
allowance on the covered loans amounted to $30.6 million.
Variance Lease
(Dollars in thousands) Commercial Construction
Legacy Mortgage financing Consumer
Total Specific ALLL $5,177 $(116) $- $1,648 $(8)
$(465) $6,236 Impaired loans $(7,013) $(1,036)
$- $12,143 $(211) $(681) $3,202
General ALLL $9,308 $(1,007) $(170) $(3,606) $(2,171)
$(1,136) $1,218 Loans held-in-portfolio, excluding impaired loans
$184,378 $15,056 $(1,795)
$(101,754) $18,927 $(62,703) $52,109
Total ALLL $14,485 $(1,123) $(170) $(1,958) $(2,179) $(1,601)
$7,454 Total non-covered loans held-in-portfolio
$177,365 $14,020 $(1,795) $(89,611)
$18,716 $(63,384) $55,311
Popular, Inc.
Financial Supplement to Third Quarter 2016 Earnings Release
Table L - Allowance for Loan Losses - Breakdown of General and
Specific Reserves - PUERTO RICO OPERATIONS (Unaudited)
30-Sep-16 Puerto
Rico Lease (In thousands) Commercial Construction
Mortgage financing Consumer Total
Allowance for credit losses: Specific ALLL non-covered loans
$58,527 $- $43,567 $540 $23,708 $126,342 General ALLL
non-covered loans 151,847 2,114 91,761
7,375 104,604 357,701 ALLL - non-covered loans
210,374 2,114 135,328 7,915 128,312
484,043 Specific ALLL covered loans - - - - - -
General ALLL covered loans - - 30,135 -
127 30,262 ALLL - covered loans - -
30,135 - 127 30,262 Total ALLL
$210,374 $2,114 $165,463 $7,915
$128,439 $514,305
Loans held-in-portfolio: Impaired
non-covered loans $328,868 $- $487,972 $1,899 $108,341 $927,080
Non-covered loans held-in-portfolio, excluding impaired
loans 6,925,290 81,054 5,476,876
680,911 3,185,490 16,349,621 Non-covered loans
held-in-portfolio 7,254,158 81,054 5,964,848
682,810 3,293,831 17,276,701 Impaired covered
loans - - - - - - Covered loans held-in-portfolio, excluding
impaired loans - - 571,349 -
16,862 588,211 Covered loans held-in-portfolio -
- 571,349 - 16,862 588,211 Total
loans held-in-portfolio $7,254,158 $81,054
$6,536,197 $682,810 $3,310,693 $17,864,912
30-Jun-16 Puerto Rico Lease (In thousands)
Commercial Construction Mortgage financing
Consumer Total
Allowance for credit losses:
Specific ALLL non-covered loans $53,350 $116 $42,106 $548 $24,167
$120,287 General ALLL non-covered loans 146,477
3,489 94,618 9,546 106,304
360,434 ALLL - non-covered loans 199,827 3,605
136,724 10,094 130,471 480,721 Specific ALLL
covered loans - - - - - - General ALLL covered loans
- - 29,951 - 630 30,581 ALLL -
covered loans - - 29,951 - 630
30,581 Total ALLL $199,827 $3,605
$166,675 $10,094 $131,101 $511,302
Loans
held-in-portfolio: Impaired non-covered loans $335,881 $1,036
$476,161 $2,110 $109,130 $924,318 Non-covered loans
held-in-portfolio, excluding impaired loans 6,881,171
102,606 5,544,401 661,984 3,212,552
16,402,714 Non-covered loans held-in-portfolio 7,217,052
103,642 6,020,562 664,094 3,321,682
17,327,032 Impaired covered loans - - - - - - Covered
loans held-in-portfolio, excluding impaired loans - -
589,256 - 17,914 607,170 Covered loans
held-in-portfolio - - 589,256 -
17,914 607,170 Total loans held-in-portfolio
$7,217,052 $103,642 $6,609,818 $664,094
$3,339,596 $17,934,202
Variance Lease (In thousands) Commercial
Construction Mortgage financing Consumer
Total
Allowance for credit losses: Specific ALLL
non-covered loans $5,177 $(116) $1,461 $(8) $(459) $6,055
General ALLL non-covered loans 5,370 (1,375)
(2,857) (2,171) (1,700) (2,733) ALLL -
non-covered loans 10,547 (1,491) (1,396)
(2,179) (2,159) 3,322 Specific ALLL covered
loans - - - - - - General ALLL covered loans -
- 184 - (503) (319) ALLL - covered
loans - - 184 - (503)
(319) Total ALLL $10,547 $(1,491) $(1,212)
$(2,179) $(2,662) $3,003
Loans
held-in-portfolio: Impaired non-covered loans $(7,013) $(1,036)
$11,811 $(211) $(789) $2,762 Non-covered loans
held-in-portfolio, excluding impaired loans 44,119
(21,552) (67,525) 18,927 (27,062)
(53,093) Non-covered loans held-in-portfolio 37,106
(22,588) (55,714) 18,716 (27,851)
(50,331) Impaired covered loans - - - - - - Covered loans
held-in-portfolio, excluding impaired loans - -
(17,907) - (1,052) (18,959) Covered
loans held-in-portfolio - - (17,907) -
(1,052) (18,959) Total loans held-in-portfolio
$37,106 $(22,588) $(73,621) $18,716
$(28,903) $(69,290)
Popular, Inc. Financial
Supplement to Third Quarter 2016 Earnings Release Table M -
Allowance for Loan Losses - Breakdown of General and Specific
Reserves - U.S. MAINLAND OPERATIONS (Unaudited)
30-Sep-16 U.S. Mainland
(In thousands) Commercial Construction Legacy
Mortgage Consumer Total
Allowance for
credit losses: Specific ALLL $- $- $- $1,990 $725 $2,715
General ALLL 13,792 7,828 1,682 2,210
13,323 38,835 Total ALLL $13,792 $7,828
$1,682 $4,200 $14,048 $41,550
Loans
held-in-portfolio: Impaired loans $- $- $- $8,896 $2,588
$11,484 Loans held-in-portfolio, excluding impaired loans
3,283,022 650,298 47,914 800,763
525,790 5,307,787 Total loans held-in-portfolio
$3,283,022 $650,298 $47,914 $809,659
$528,378 $5,319,271 30-Jun-16 U.S. Mainland
(In thousands) Commercial Construction Legacy
Mortgage Consumer Total
Allowance for
credit losses: Specific ALLL $- $- $- $1,803 $731 $2,534
General ALLL 9,854 7,460 1,852 2,959
12,759 34,884 Total ALLL $9,854 $7,460
$1,852 $4,762 $13,490 $37,418
Loans
held-in-portfolio: Impaired loans $- $- $- $8,564 $2,480
$11,044 Loans held-in-portfolio, excluding impaired loans
3,142,763 613,690 49,709 834,992
561,431 5,202,585 Total loans held-in-portfolio
$3,142,763 $613,690 $49,709 $843,556
$563,911 $5,213,629
Variance (In thousands) Commercial
Construction Legacy Mortgage Consumer
Total
Allowance for credit losses: Specific ALLL $- $- $-
$187 $(6) $181 General ALLL 3,938 368
(170) (749) 564 3,951 Total ALLL $3,938
$368 $(170) $(562) $558 $4,132
Loans held-in-portfolio: Impaired loans $- $- $- $332 $108
$440 Loans held-in-portfolio, excluding impaired loans
140,259 36,608 (1,795) (34,229)
(35,641) 105,202 Total loans held-in-portfolio
$140,259 $36,608 $(1,795) $(33,897)
$(35,533) $105,642
Popular, Inc.
Financial Supplement to Third Quarter 2016 Earnings Release
Table N - Reconciliation to GAAP Financial Measures
(Unaudited) (In thousands, except share or per
share information) 30-Sep-16 30-Jun-16
30-Sep-15 Total stockholders’ equity $5,380,395 $5,359,831
$5,049,636 Common shares outstanding at end of period 103,762,596
103,703,041 103,556,285 Book value per common share $51.85
$51.68 $48.76 Total stockholders’ equity
$5,380,395 $5,359,831 $5,049,636 Less: Preferred stock (50,160)
(50,160) (50,160) Less: Goodwill (627,294) (631,095) (504,925)
Less: Other intangibles (47,886) (50,983)
(71,393) Total tangible common equity $4,655,055
$4,627,593 $4,423,158 Total assets $39,054,296 $37,606,148
$35,522,462 Less: Goodwill (627,294) (631,095) (504,925) Less:
Other intangibles (47,886) (50,983) (71,393)
Total tangible assets $38,379,116 $36,924,070
$34,946,144 Tangible common equity to tangible assets 12.13% 12.53%
12.66% Common shares outstanding at end of period 103,762,596
103,703,041 103,556,285 Tangible book value per common share
$44.86 $44.62 $42.71
Popular, Inc.
Financial Supplement to Third Quarter 2016
Earnings Release Table O - Financial Information -
Westernbank Loans (Unaudited)
Revenues Quarters ended (In thousands) 30-Sep-16
30-Jun-16 Variance Interest income on WB loans
$40,867 $49,794 $(8,927) FDIC loss-share expense:
Amortization of indemnification asset (1,259) (4,036) 2,777 80%
mirror accounting on credit impairment losses (reversal) [1] 659
475 184 80% mirror accounting on reimbursable expenses 853 2,235
(1,382) 80% mirror accounting on recoveries on covered assets,
including rental income on OREOs, subject to reimbursement to the
FDIC (522) (3,956) 3,434 Change in true-up payment obligation
(6,611) (7,688) 1,077 Arbitration award expense (54,924) - (54,924)
Other 81 394 (313) Total FDIC
loss-share expense (61,723) (12,576) (49,147)
Total revenues (expense) (20,856) 37,218
(58,074) Provision (reversal) for loan losses- WB loans
6,612 (7,282) 13,894 Total revenues (expense) less
provision (reversal) for loan losses $(27,468)
$44,500 $(71,968) [1] Reductions in expected cash flows for
ASC 310-30 loans, which may impact the provision for loan losses,
may consider reductions in both principal and interest cash flow
expectations. The amount covered under the FDIC loss-sharing
agreements for interest not collected from borrowers is limited
under the agreements (approximately 90 days); accordingly, these
amounts are not subject fully to the 80% mirror accounting.
Non-personnel operating expenses Quarters ended [2]
(In thousands) [1] 30-Sep-16 30-Jun-16
Variance Professional fees $4,501 $5,991 $(1,490) OREO expenses
2,702 6,389 (3,687) Other operating expenses 1,738
1,924 (186) Total operating expenses $8,941
$14,304 $(5,363) [1] Includes expenses related to loans
subject, and not subject, to the FDIC loss-sharing agreement. [2]
Expense reimbursements from the FDIC may be recorded with a time
lag, since these are claimed upon the event of loss or charge-off
of the loans which may occur in a subsequent period.
Quarterly average assets Quarters ended (In millions)
30-Sep-16 30-Jun-16 Variance Loans $1,881 $2,013
$(132) FDIC loss-share asset 192 211 (19)
Activity in the carrying
amount and accretable yield of loans accounted for under ASC
310-30 Quarters ended 30-Sep-16
30-Jun-16
Carrying amount
Carrying amount
(In thousands)
Accretable yield
of loans
Accretable yield
of loans
Beginning balance $1,071,680 $1,799,943 $1,128,808 $1,935,441
Accretion (39,590) 39,590 (48,476) 48,476 Changes in expected cash
flows 6,602 - (8,652) - Collections / loan sales / charge-offs [2]
- (71,994) - (183,974) Ending balance
1,038,692 1,767,539 1,071,680 1,799,943 Allowance for loan
losses - ASC 310-30 loans - (69,571) -
(66,995) Ending balance, net of allowance for loan losses
$1,038,692 $1,697,968 $1,071,680 $1,732,948
[1] The carrying amount of loans acquired from Westernbank
and accounted for under ASC 310-30 which remain subject to the
loss-sharing agreement with the FDIC amounted to approximately $578
million as of September 30, 2016 and $597 million as of June 30,
2016.
[2] For the quarter ended June 30, 2016,
includes the impact of the bulk sale of loans with a carrying value
of approximately $99 million.
Activity in the carrying amount of the FDIC
indemnity asset Quarters ended (In thousands)
30-Sep-16 30-Jun-16 Balance at
beginning of period $214,029 $219,448 Amortization (1,259) (4,036)
Credit impairment losses (reversal) to be covered under
loss-sharing agreements 659 475 Reimbursable expenses to be covered
under loss-sharing agreements 853 2,235 Recoveries on covered
assets - (4,093) Net payments from FDIC under loss-sharing
agreements (6,819) - Arbitration award expense (54,924) - Other
adjustments attributable to FDIC loss-sharing agreements
(72) - Balance at end of period
$152,467 $214,029
Activity in the remaining FDIC loss-share asset
amortization Quarters ended (In thousands)
30-Sep-16 30-Jun-16 Balance at
beginning of period $23,191 $25,205 Amortization (1,259) (4,036)
Impact of change in projected losses (14,627)
2,022 Balance at end of period
$7,305 $23,191
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161025005500/en/
Popular, Inc.Investor Relations:Brett Scheiner,
212-417-6721Investor Relations OfficerBScheiner@BPOP.comorMedia
Relations:Teruca Rullán, 787-281-5170Mobile: 917-679-3596Senior
Vice President, Corporate Communications
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