- Net income of $136.6 million in Q3 2023, including an
after-tax goodwill impairment charge in our U.S. based equipment
leasing subsidiary of $16.4 million, compared to net income of
$151.2 million in Q2 2023.
- Net interest income amounted to $534.0 million, an increase
of $2.4 million compared to Q2 2023.
- Net interest margin of 3.07% in Q3 2023, compared to 3.14%
in Q2 2023; net interest margin on a taxable equivalent basis of
3.24% in Q3 2023, compared to 3.29% in Q2 2023.
- Non-interest income of $159.5 million, or $1.0 million lower
than in Q2 2023.
- Operating expenses amounted to $466.0 million, an increase
of $5.7 million compared to Q2 2023, including a non-cash goodwill
impairment of $23.0 million.
- Credit Quality:
- Non-performing loans held-in-portfolio (“NPLs”) decreased by
$24.0 million from Q2 2023; NPLs to loans ratio at 1.1% vs. 1.2% in
Q2 2023;
- Net charge-offs (“NCOs”) increased by $8.7 million from Q2
2023; annualized NCOs at 0.39% of average loans held-in-portfolio
vs. 0.29% in Q2 2023;
- Allowance for credit losses (“ACL”) to loans
held-in-portfolio at 2.09% vs. 2.12% in Q2 2023; and
- ACL to NPLs at 196.7% vs. 181.6% in Q2 2023.
- Loans increased by $998.4 million and by $764.4 million in
average quarterly balances, from Q2 2023.
- Ending deposit balances decreased by $667.2 million while
average quarterly balances increased by $1.4 billion, from Q2
2023.
- Common Equity Tier 1 ratio of 16.81%, Common Equity per
Share of $61.49 and Tangible Book Value per Share of $50.20 at
September 30, 2023.
Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”)
(NASDAQ:BPOP) reported net income of $136.6 million for the quarter
ended September 30, 2023, including an after-tax goodwill
impairment charge in our U.S. based equipment leasing subsidiary of
$16.4 million, compared to net income of $151.2 million for the
quarter ended June 30, 2023.
Ignacio Alvarez, President and Chief Executive Officer, said:
“We are pleased to report another strong quarter. Net income
totaled $137 million, which includes a $16 million after-tax
goodwill impairment in our U.S. based equipment leasing subsidiary.
Excluding this impact, net income would have been $153 million, $2
million higher than the previous quarter.
Our positive results were driven by higher revenues and lower
operating expenses, excluding the non-cash goodwill impairment,
partially offset by a higher provision for loan losses. We grew our
loan portfolio by $1 billion, which contributed to an increase in
net interest income despite higher deposit costs. Approximately
$600 million of the increase took place in Puerto Rico, reflecting
strong economic activity. During the quarter, we crossed a
significant milestone, reaching more than 2 million unique
customers in Puerto Rico.
Our achievements are made possible by a dedicated team of more
than 9,000 colleagues and further strengthen our commitment to our
customers, communities and shareholders. Earlier this month we
celebrated our 130th anniversary and our team’s energy was
palpable. We are proud of our history, which has made us a strong
organization with deep-rooted values, and are excited about the
opportunities that lie ahead.”
Earnings Highlights
(Unaudited)
Quarters ended
Nine months ended
(Dollars in thousands, except per share
information)
30-Sep-23
30-Jun-23
30-Sep-22
30-Sep-23
30-Sep-22
Net interest income
$534,020
$531,668
$579,619
$1,597,344
$1,607,793
Provision for credit losses
45,117
37,192
39,637
129,946
33,499
Net interest income after provision for
credit losses
488,903
494,476
539,982
1,467,398
1,574,294
Other non-interest income
159,549
160,471
426,494
481,981
738,597
Operating expenses
465,984
460,284
476,095
1,366,955
1,284,712
Income before income tax
182,468
194,663
490,381
582,424
1,028,179
Income tax expense
45,859
43,503
67,986
135,676
182,677
Net income
$136,609
$151,160
$422,395
$446,748
$845,502
Net income applicable to common stock
$136,256
$150,807
$422,042
$445,689
$844,443
Net income per common share-basic
$1.90
$2.10
$5.71
$6.22
$11.09
Net income per common share-diluted
$1.90
$2.10
$5.70
$6.21
$11.07
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 September 30, 2023 and Table F for the nine-month periods
ended September 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 September 30, 2023 was
$534.0 million, an increase of $2.4 million when compared to the
previous quarter. Net interest income on a taxable equivalent basis
for the third quarter of 2023 was $563.7 million, compared to
$558.4 million in the previous quarter, an increase of $5.3
million. The increase in taxable equivalent net interest income
results from a higher volume of exempt investments, partially
offset by a higher disallowed interest expense in the Puerto Rico
tax computation driven by the increase in deposit volume and cost.
Refer to the income taxes discussion for further information.
Net interest margin decreased seven basis points to 3.07%. On a
taxable equivalent basis, net interest margin for the third quarter
of 2023 was 3.24%, compared to 3.29% for the prior quarter, or a
five basis points decrease. The lower reduction in the taxable
equivalent rate results from a higher benefit of a higher volume of
exempt investment securities in Puerto Rico. The main variances in
net interest income on a taxable equivalent basis were:
- Higher interest income from investment securities, trading and
money market investments by $27.4 million driven mainly by higher
volume of U.S. Treasury bills, partially offset by a lower volume
of money market investments. Both asset classes reflect the effect
of the two 25 basis points increases in market rates that occurred
at the end of July and at the beginning of May;
- Higher interest income from loans by $26.3 million resulting
from an increase in average loans by $770 million, reflecting
increases in Banco Popular de Puerto Rico (“BPPR”) by $427 million
and an increase in Popular Bank (“PB”) by $343 million. All major
loan segments increased in BPPR while at PB the increase was mainly
in the commercial and construction portfolios. Loan originations in
a higher interest rate environment and the repricing of
adjustable-rate loans resulted in a higher yield on loans by nine
basis points; most of the categories resulted in a higher yield
quarter over quarter; and
- Lower interest expense on other debt upon the previously
announced redemption, during the quarter of the $300 million Senior
Notes due September 2023;
partially offset by:
- Higher interest expense on deposits by $34.4 million, mainly
from the increase in volume and cost of Puerto Rico government
deposits and a higher cost in most deposit categories in both BPPR
and PB, reflective of the increase in rates.
Net interest income for the BPPR segment amounted to $453.9
million for the third quarter of 2023, flat when compared to $453.1
million in net interest income during the second quarter of 2023.
Net interest margin for the BPPR segment decreased by seven basis
points to 3.14%. The decrease in net interest margin is related to
a higher average volume of deposits, mainly higher cost Puerto Rico
government deposits. Earning assets yield improved 17 basis points
from the prior quarter to 4.74%. The average volume of earning
assets increased by $861 million, while average total deposits
increased by $904 million, mainly in P.R. government deposits,
which were $1.4 billion higher on average than during Q2 2023,
partially offset by a decrease in non-interest-bearing deposits.
The cost of interest-bearing deposits increased by 30 basis points
to 2.25% from 1.95% the previous quarter. The increase in the cost
of deposits mainly resulted from the repricing of public funds and
management actions to increase deposit interest rates for certain
corporate clients. Total deposit cost in the third quarter of 2023
was 1.68%, compared to 1.44% in the quarter ended June 30,
2023.
Net interest income for PB was $87.4 million for the quarter
ended September 30, 2023, unchanged when compared to $87.5 million
in net interest income during the previous quarter. Net interest
margin decreased by 11 basis points in the quarter to 2.90%,
compared to 3.01% in the second 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 in the current interest rates environment.
The cost of interest-bearing deposits was 3.31%, compared to 3.02%
for the second quarter, or an increase of 29 basis points, while
total deposit cost was 2.84% compared to 2.55% in the previous
quarter.
Non-interest income
Non-interest income amounted to $159.5 million for the quarter
ended September 30, 2023, a decrease of $1.0 million when compared
to $160.5 million for the quarter ended June 30, 2023. Fee and
transactional-based revenues were slightly lower
quarter-over-quarter with the overall results impacted by an
unfavorable variance in profit (losses) from equity securities by
$2.7 million, mainly related to the fair value of securities held
for deferred benefit plans, which have an offsetting effect in
personnel costs. The lower fee and transactional-based revenues
were partially offset by higher income from mortgage banking
activities by $3.1 million, mainly due to a favorable variance of
$3.4 million related to the fair value adjustments of mortgage
servicing rights (“MSRs”).
Refer to Table B for further details.
Operating expenses
Operating expenses for the third quarter of 2023 totaled $466.0
million, an increase of $5.7 million when compared to the second
quarter of 2023. The variance in operating expenses was driven
primarily by:
- higher personnel cost by $1.7 million mainly due to higher
salaries by $2.9 million as a result of the annual merit increase
effective during the third quarter of 2023; partially offset by a
decrease in other personnel costs by $1.2 million;
- higher credit card processing expenses by $2.2 million mainly
due to a volume growth incentive received during the second quarter
of 2023 which was recorded as a reduction of expenses;
- higher FDIC deposit insurance expense by $2.1 million mainly
due to an accrual adjustment recorded during the second quarter of
2023 related to a decrease in the assessment rate; and
- a non-cash goodwill impairment of $23.0 million in our U.S.
based equipment leasing subsidiary due to lower forecasted cash
flows and an increase in the rate used to discount cash flows.
partially offset by:
- lower other taxes expense by $7.8 million mainly due to the
reversal of an accrual related to regulatory examination fees in
BPPR by $8.2 million;
- lower professional fees by $11.6 million mainly due to lower
advisory expenses by $7.1 million arising from corporate
initiatives related to regulatory and compliance efforts, as well
as those related to the Corporation's transformation initiative,
incurred during the second quarter of 2023;
- lower business promotion expense by $2.0 million mainly due to
lower advertising and credit cards rewards expenses; and
- higher other real estate owned (“OREO”) benefit by $1.9 million
mainly due to an increase in the fair value of mortgage properties
transferred to OREO.
Full-time equivalent employees were 9,063 as of September 30,
2023, compared to 9,124 as of June 30, 2023.
For a breakdown of operating expenses by category refer to Table
B.
Income taxes
For the quarter ended September 30, 2023, the Corporation
recorded an income tax expense of $45.9 million compared to $43.5
million for the previous quarter. The increase in income tax
expense was mainly attributable to certain tax benefits recorded in
the second quarter, partially offset by lower income before tax.
The effective tax rate (“ETR”) for the third quarter of 2023 was
25.1% while the ETR for the second quarter was 22.4%.
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%.
Credit Quality
During the third quarter of 2023, the Corporation continued to
reflect stable credit quality metrics. Non-performing loans
(“NPLs”) and net charge offs (“NCOs”) continued below historical
pre-pandemic averages. Consumer portfolios, however, reflected
increased delinquencies and NCOs for the quarter primarily due to
the expected continued credit normalization. We continue to closely
monitor changes in the macroeconomic environment and on borrower
performance, especially our unsecured consumer loans, given higher
interest rates and inflationary pressures. However, management
believes that the improvements over recent years in risk management
practices and the risk profile of the Corporation’s loan portfolios
positions Popular to continue to operate successfully under the
current environment.
The following presents credit quality results for the third
quarter of 2023:
- At September 30, 2023, total NPLs held-in-portfolio decreased
by $24.0 million from June 30, 2023. BPPR’s NPLs decreased by $18.5
million, mostly driven by lower commercial and mortgage NPLs by
$16.5 million and $6.8 million, respectively, in part offset by
higher consumer NPLs by $5.4 million. The commercial NPLs decrease
was mostly driven by loan payoffs. PB’s NPLs decreased by $5.5
million quarter-over-quarter, due to lower commercial and mortgage
NPLs by $3.0 million and $2.6 million, respectively. At September
30, 2023, the ratio of NPLs to total loans held-in-portfolio was
1.1%, compared to 1.2% in the second quarter of 2023.
- Inflows of NPLs held-in-portfolio, excluding consumer loans,
decreased by $5.9 million quarter-over-quarter. In BPPR, total
inflows decreased by $2.6 million due to lower construction inflows
by $9.3 million due to a single relationship that entered
non-accrual during the second quarter, in part offset by higher
mortgage inflows by $7.1 million. PB inflows decreased by $3.3
million, driven by lower commercial inflows.
- NCOs amounted to $32.7 million, increasing by $8.7 million when
compared to the second quarter of 2023. BPPR’s NCOs increased by
$6.9 million quarter-over-quarter, mainly driven by higher consumer
NCOs by $14.1 million, of which $7.2 million and $4.7 million are
related to the auto and personal loans portfolios, respectively.
This increase was in part offset by a $10.8 million recovery from a
commercial loan pay-off, as mentioned above. PB’s NCOs increased by
$1.8 million quarter-over-quarter, mainly driven by higher consumer
NCOs. During the third quarter of 2023, the Corporation’s ratio of
annualized NCOs to average loans held-in-portfolio was 0.39%,
compared to 0.29% in the second quarter of 2023. Refer to Table N
for further information on NCOs and related ratios.
- At September 30, 2023, the allowance for credit losses (“ACL”)
increased by $10.9 million from the second quarter of 2023 to
$711.1 million. In BPPR, the ACL increased by $28.4 million,
primarily driven by higher reserves for the auto and personal loans
portfolios attributable to credit normalization, changes in
macroeconomic scenarios and loan growth. In PB, the ACL decreased
by $17.6 million due to the implementation of a new model for the
U.S. commercial real estate portfolio. The new model is based on
more granular regional information for the Corporation’s portfolio
and accounted for $15 million of PB’s reduction in ACL.
- 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. The baseline scenario continues to be assigned
the highest probability, followed by the pessimistic scenario, and
then the optimistic scenario.
- The 2023 annualized GDP growth in the baseline scenario
improved to 1.7% and 2.0% for Puerto Rico and the United States,
respectively, compared to 1.5% and 1.6% in the previous quarter.
The 2023 forecasted average unemployment rate for Puerto Rico
improved to 6.1% from 6.3% in the previous forecast, while in the
United States unemployment levels remained at 3.6%, stable when
compared to the previous forecast.
- GDP growth is expected to slow down during 2024 for both
regions, when compared to 2023, as a result of the Fed’s monetary
policy. The 2024 GDP growth is expected to be 0.90% for Puerto Rico
and 1.25% for the United States. The average 2024 unemployment rate
is expected to increase to 6.80% in Puerto Rico and 4.03% in the
United States.
- The Corporation’s ratio of the ACL to loans held-in-portfolio
was 2.09% in the third quarter of 2023, compared to 2.12% in the
previous quarter. The ratio of the ACL to NPLs held-in-portfolio
stood at 196.7%, compared to 181.6% in the previous quarter.
- The provision for credit losses for the loan portfolios for the
third quarter of 2023 was $43.5 million, compared to $35.7 million
in the previous quarter, reflecting the previously mentioned
changes in the allowance for credit losses. The provision for the
BPPR segment was $54.0 million, compared to $28.4 million in the
previous quarter, while the provision for PB was a benefit of $10.5
million, compared to an expense of $7.3 million in the previous
quarter.
- 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
Consolidated Statement of Operations. For the third quarter, these
combined concepts resulted in a provision expense of $45.1 million,
compared to $37.2 million last quarter.
Non-Performing Assets
(Unaudited)
(In thousands)
30-Sep-23
30-Jun-23
30-Sep-22
Non-performing loans held-in-portfolio
$361,523
$385,504
$453,419
Other real estate owned (“OREO”)
82,322
86,216
93,239
Total non-performing assets
$443,845
$471,720
$546,658
Net charge-offs (recoveries) for the
quarter
$32,655
$23,990
$18,232
Ratios:
Loans held-in-portfolio
$34,029,313
$33,030,922
$31,523,188
Non-performing loans held-in-portfolio to
loans held-in-portfolio
1.06%
1.17%
1.44%
Allowance for credit losses to loans
held-in-portfolio
2.09
2.12
2.23
Allowance for credit losses to
non-performing loans, excluding loans held-for-sale
196.69
181.63
155.07
Refer to Table L for additional
information.
Provision for Credit Losses (Benefit) -
Loan Portfolios
(Unaudited)
Quarters ended
Nine months ended
(In thousands)
30-Sep-23
30-Jun-23
30-Sep-22
30-Sep-23
30-Sep-22
Provision for credit losses (benefit) -
loan portfolios:
BPPR
$54,017
$28,379
$28,694
$127,599
$25,161
Popular U.S.
(10,503)
7,282
10,825
(1,278)
9,814
Total provision for credit losses
(benefit) - loan portfolios
$43,514
$35,661
$39,519
$126,321
$34,975
Credit Quality by Segment
(Unaudited)
(In thousands)
Quarters ended
BPPR
30-Sep-23
30-Jun-23
30-Sep-22
Provision for credit losses - loan
portfolios
$54,017
$28,379
$28,694
Net charge-offs
25,600
18,687
18,396
Total non-performing loans
held-in-portfolio
333,825
352,339
410,215
Annualized net charge-offs (recoveries) to
average loans held-in-portfolio
0.44%
0.33%
0.34%
Allowance / loans held-in-portfolio
2.63%
2.58%
2.65%
Allowance / non-performing loans
held-in-portfolio
187.08%
169.19%
144.05%
Quarters ended
Popular U.S.
30-Sep-23
30-Jun-23
30-Sep-22
Provision for credit losses - loan
portfolios
$(10,503)
$7,282
$10,825
Net charge-offs
7,055
5,303
(164)
Total non-performing loans
held-in-portfolio
27,698
33,165
43,204
Annualized net charge-offs (recoveries) to
average loans held-in-portfolio
0.28%
0.22%
(0.01)
Allowance / loans held-in-portfolio
0.84%
1.05%
1.21%
Allowance / non-performing loans
held-in-portfolio
312.42%
313.86%
259.61%
Financial Condition Highlights
(Unaudited)
(In thousands)
30-Sep-23
30-Jun-23
30-Sep-22
Cash and money market investments
$6,924,772
$9,070,118
$5,992,360
Investment securities
25,653,616
25,874,316
30,434,052
Loans
34,029,313
33,030,922
31,523,188
Total assets
69,736,936
70,838,266
70,729,675
Deposits
63,337,600
64,004,818
64,819,327
Borrowings
1,097,720
1,427,254
1,300,984
Total liabilities
65,279,328
66,273,257
67,054,837
Stockholders’ equity
4,457,608
4,565,009
3,674,838
Total assets amounted to $69.7 billion at September 30, 2023, a
decrease of $1.1 billion from the second quarter of 2023, driven
by:
- a decrease in money market investments of $2.2 billion due to
lower deposits and increased loan balances as discussed below;
- a decrease in securities available-for-sale (“AFS”) of $112.4
million, mainly due to repayments, maturities and unfavorable
changes in fair value, offset in part by the purchase of U.S.
Treasury securities; and
- a decrease in securities held-to-maturity (“HTM”) of $108.4
million driven by a decrease in U.S. Treasury securities mainly as
a result of maturities;
partially offset by:
- an increase in loans held-in-portfolio of $998.4 million
reflected across all portfolios in BPPR, except the construction
portfolio, and an increase in commercial and construction loans at
PB; and
- an increase in other assets of $328.9 million driven by
unsettled trade receivables related to proceeds from maturities of
U.S. Treasury Notes and interest payments which were received in
the fourth quarter.
Total liabilities decreased by $993.9 million from the second
quarter of 2023, driven by:
- a decrease of $667.2 million in deposits, mainly in Puerto Rico
public sector accounts partially offset by an increase in time
deposits and savings accounts at PB; and
- a decrease of $299.4 million in notes payable due to the
redemption of $300.0 million in aggregate principal amount of the
Senior Notes due September 2023.
Stockholders' equity decreased by $107.4 million from the second
quarter of 2023, principally due to the after-tax impact of the
increase in net unrealized losses in the portfolio of AFS
securities of $242.6 million and to common and preferred dividends
declared during the quarter, partially offset by the net income for
the quarter of $136.6 million and the amortization of unrealized
losses from securities previously reclassified to HTM of $35.0
million.
The Corporation is in the process of completing its annual
goodwill impairment test, using July 31, 2023 as the evaluation
date. During the third quarter, an impairment charge of $23.0
million related to our U.S. based equipment leasing subsidiary was
recognized. The Corporation expects to finalize its evaluation
prior to the filing of its Form 10-Q for the quarter ended
September 30, 2023 with the Securities and Exchange Commission. Any
further impairment of goodwill would result in a non-cash expense,
net of tax impact. A charge to earnings related to a goodwill
impairment would not materially impact regulatory capital and
tangible capital calculations.
Common Equity Tier 1 ratio (“CET1”), common equity per share and
tangible book value per share were 16.81%, $61.49 and $50.20,
respectively, at September 30, 2023, compared to 16.87%, $63.00 and
$51.37, respectively, at June 30, 2023. Refer to Table A for
capital ratios.
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 Popular’s
business, financial condition, results of operations, plans,
objectives and future performance. These statements are not
guarantees of future performance, are based on management’s current
expectations 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. 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 Corporation’s 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 Popular’s 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 Corporation’s 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 quarters ended March 31, 2023 and June 30,
2023, and in our Form 10-Q for the quarter ended September 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 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, Popular’s 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, Thursday, October 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
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 1-833-470-1428 (Toll Free) or 1-404-975-4839
(Local). The dial-in access code is 260746.
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 Monday, November 27, 2023. The replay dial
in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is
546020.
An electronic version of this press release can be found at the
Corporation’s website: www.popular.com.
Popular, Inc.
Financial Supplement to Third 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 - Loan Delinquency - BPPR
Operations
Table J - Loan Delinquency - Popular U.S.
Operations
Table K - Loan Delinquency -
Consolidated
Table L - Non-Performing Assets
Table M - Activity in Non-Performing
Loans
Table N - Allowance for Credit Losses, Net
Charge-offs and Related Ratios
Table O - Allowance for Credit Losses
''ACL'' - Loan Portfolios - Consolidated
Table P - Allowance for Credit Losses
''ACL'' - Loan Portfolios - BPPR Operations
Table Q - Allowance for Credit Losses
''ACL'' - Loan Portfolios - Popular U.S. Operations
Table R - Reconciliation to GAAP Financial
Measures
POPULAR, INC.
Financial Supplement to Third Quarter
2023 Earnings Release
Table A - Selected Ratios and Other
Information
(Unaudited)
Quarters ended
Nine months ended
30-Sep-23
30-Jun-23
30-Sep-22
30-Sep-23
30-Sep-22
Basic EPS
$1.90
$2.10
$5.71
$6.22
$11.09
Diluted EPS
$1.90
$2.10
$5.70
$6.21
$11.07
Average common shares outstanding
71,794,934
71,690,396
73,955,184
71,676,630
76,173,783
Average common shares outstanding -
assuming dilution
71,818,102
71,709,203
74,057,332
71,736,514
76,304,219
Common shares outstanding at end of
period
72,127,595
72,103,969
72,673,344
72,127,595
72,673,344
Market value per common share
$63.01
$60.52
$72.06
$63.01
$72.06
Market capitalization - (In millions)
$4,545
$4,364
$5,237
$4,545
$5,237
Return on average assets
0.75%
0.85%
2.31%
0.84%
1.54%
Return on average common equity
8.17%
9.26%
27.72%
9.13%
19.02%
Net interest margin (non-taxable
equivalent basis)
3.07%
3.14%
3.32%
3.14%
3.05%
Net interest margin (taxable equivalent
basis) -non-GAAP
3.24%
3.29%
3.71%
3.32%
3.39%
Common equity per share
$61.49
$63.00
$50.26
$61.49
$50.26
Tangible common book value per common
share (non-GAAP) [1]
$50.20
$51.37
$38.69
$50.20
$38.69
Tangible common equity to tangible assets
(non-GAAP) [1]
5.25%
5.29%
4.02%
5.25%
4.02%
Return on average tangible common equity
[1]
9.36%
10.63%
31.86%
10.48%
21.78%
Tier 1 capital
16.88%
16.93%
16.10%
16.88%
16.10%
Total capital
18.67%
18.74%
17.92%
18.67%
17.92%
Tier 1 leverage
8.41%
8.40%
7.65%
8.41%
7.65%
Common Equity Tier 1 capital
16.81%
16.87%
16.04%
16.81%
16.04%
[1] Refer to Table S for reconciliation to
GAAP financial measures.
POPULAR, INC.
Financial Supplement to Third Quarter
2023 Earnings Release
Table B - Consolidated Statement of
Operations
(Unaudited)
Quarters ended
Variance
Quarter ended
Variance
Nine months ended
Q3 2023
Q3 2023
(In thousands, except per share
information)
30-Sep-23
30-Jun-23
vs. Q2 2023
30-Sep-22
vs. Q3 2022
30-Sep-23
30-Sep-22
Interest income:
Loans
$596,886
$570,120
$26,766
$481,088
$115,798
$1,708,216
$1,354,124
Money market investments
99,286
100,775
(1,489)
36,966
62,320
265,785
67,172
Investment securities
148,614
123,112
25,502
133,181
15,433
403,814
331,421
Total interest income
844,786
794,007
50,779
651,235
193,551
2,377,815
1,752,717
Interest expense:
Deposits
294,121
243,488
50,633
60,897
233,224
730,824
113,507
Short-term borrowings
1,478
1,624
(146)
921
557
5,987
1,249
Long-term debt
15,167
17,227
(2,060)
9,798
5,369
43,660
30,168
Total interest expense
310,766
262,339
48,427
71,616
239,150
780,471
144,924
Net interest income
534,020
531,668
2,352
579,619
(45,599)
1,597,344
1,607,793
Provision for credit losses
45,117
37,192
7,925
39,637
5,480
129,946
33,499
Net interest income after provision for
credit losses
488,903
494,476
(5,573)
539,982
(51,079)
1,467,398
1,574,294
Service charges on deposit accounts
37,318
37,781
(463)
40,006
(2,688)
109,777
122,528
Other service fees
93,407
94,265
(858)
86,402
7,005
277,748
244,987
Mortgage banking activities
5,393
2,316
3,077
9,448
(4,055)
15,109
35,888
Net (loss) gain, including impairment, on
equity securities
(1,319)
1,384
(2,703)
(1,448)
129
1,165
(7,651)
Net gain (loss) on trading account debt
securities
219
35
184
(274)
493
632
(946)
Net loss on sale of loans, including
valuation adjustments on loans held-for-sale
(44)
-
(44)
-
(44)
(44)
-
Adjustments to indemnity reserves on loans
sold
(187)
(456)
269
1,715
(1,902)
(31)
1,140
Other operating income
24,762
25,146
(384)
290,645
(265,883)
77,625
342,651
Total non-interest income
159,549
160,471
(922)
426,494
(266,945)
481,981
738,597
Operating expenses:
Personnel costs
Salaries
127,832
124,901
2,931
115,887
11,945
378,126
316,407
Commissions, incentives and other
bonuses
27,670
27,193
477
42,209
(14,539)
86,025
116,319
Pension, postretirement and medical
insurance
16,985
17,508
(523)
17,120
(135)
49,871
43,633
Other personnel costs, including payroll
taxes
20,665
21,866
(1,201)
18,627
2,038
69,358
53,268
Total personnel costs
193,152
191,468
1,684
193,843
(691)
583,380
529,627
Net occupancy expenses
28,100
27,165
935
27,420
680
81,304
78,357
Equipment expenses
8,905
9,561
(656)
8,735
170
26,878
25,798
Other taxes
8,590
16,409
(7,819)
15,966
(7,376)
41,290
47,461
Professional fees
38,514
50,132
(11,618)
47,662
(9,148)
122,077
122,884
Technology and software expenses
72,930
72,354
576
68,341
4,589
213,843
213,638
Processing and transactional services
Credit and debit cards
13,762
11,584
2,178
13,531
231
37,896
35,177
Other processing and transactional
services
24,137
25,217
(1,080)
18,837
5,300
70,713
59,181
Total processing and transactional
services
37,899
36,801
1,098
32,368
5,531
108,609
94,358
Communications
4,220
4,175
45
3,858
362
12,483
11,028
Business promotion
Rewards and customer loyalty programs
15,988
16,626
(638)
14,344
1,644
44,962
38,294
Other business promotion
7,087
8,457
(1,370)
10,004
(2,917)
22,067
22,490
Total business promotion
23,075
25,083
(2,008)
24,348
(1,273)
67,029
60,784
FDIC deposit insurance
8,932
6,803
2,129
6,610
2,322
24,600
20,445
Other real estate owned (OREO) income
(5,189)
(3,314)
(1,875)
(2,444)
(2,745)
(10,197)
(12,963)
Other operating expenses
Operational losses
5,504
4,280
1,224
7,145
(1,641)
16,584
23,031
All other
17,557
18,572
(1,015)
32,448
(14,891)
53,690
58,783
Total other operating expenses
23,061
22,852
209
39,593
(16,532)
70,274
81,814
Amortization of intangibles
795
795
-
795
-
2,385
2,481
Goodwill impairment charge
23,000
-
23,000
9,000
14,000
23,000
9,000
Total operating expenses
465,984
460,284
5,700
476,095
(10,111)
1,366,955
1,284,712
Income before income tax
182,468
194,663
(12,195)
490,381
(307,913)
582,424
1,028,179
Income tax expense
45,859
43,503
2,356
67,986
(22,127)
135,676
182,677
Net income
$136,609
$151,160
$(14,551)
$422,395
$(285,786)
$446,748
$845,502
Net income applicable to common
stock
$136,256
$150,807
$(14,551)
$422,042
$(285,786)
$445,689
$844,443
Net income per common share -
basic
$1.90
$2.10
$(0.20)
$5.71
$(3.81)
$6.22
$11.09
Net income per common share -
diluted
$1.90
$2.10
$(0.20)
$5.70
$(3.80)
$6.21
$11.07
Dividends Declared per Common
Share
$0.55
$0.55
$-
$0.55
$-
$1.65
$1.65
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table C - Consolidated Statement of
Financial Condition
(Unaudited)
Variance
Q3 2023 vs.
(In thousands)
30-Sep-23
30-Jun-23
30-Sep-22
Q2 2023
Assets:
Cash and due from banks
$535,335
$476,642
$2,017,312
$58,693
Money market investments
6,389,437
8,593,476
3,975,048
(2,204,039)
Trading account debt securities, at fair
value
30,988
29,160
30,271
1,828
Debt securities available-for-sale, at
fair value
17,129,858
17,242,217
28,264,148
(112,359)
Debt securities held-to-maturity, at
amortized cost
8,302,082
8,410,566
1,953,710
(108,484)
Less: Allowance for credit losses
6,057
6,145
7,210
(88)
Total debt securities held-to-maturity,
net
8,296,025
8,404,421
1,946,500
(108,396)
Equity securities
190,688
192,373
185,923
(1,685)
Loans held-for-sale, at lower of cost or
fair value
5,239
55,421
8,065
(50,182)
Loans held-in-portfolio
34,369,775
33,354,999
31,805,921
1,014,776
Less: Unearned income
340,462
324,077
282,733
16,385
Allowance for credit losses
711,068
700,200
703,096
10,868
Total loans held-in-portfolio, net
33,318,245
32,330,722
30,820,092
987,523
Premises and equipment, net
534,384
523,927
492,685
10,457
Other real estate
82,322
86,216
93,239
(3,894)
Accrued income receivable
257,833
239,998
224,307
17,835
Mortgage servicing rights, at fair
value
119,030
121,249
130,541
(2,219)
Other assets
2,032,565
1,703,662
1,700,378
328,903
Goodwill
804,428
827,428
827,428
(23,000)
Other intangible assets
10,559
11,354
13,738
(795)
Total assets
$69,736,936
$70,838,266
$70,729,675
$(1,101,330)
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing
$15,201,374
$15,316,552
$17,605,339
$(115,178)
Interest bearing
48,136,226
48,688,266
47,213,988
(552,040)
Total deposits
63,337,600
64,004,818
64,819,327
(667,218)
Assets sold under agreements to
repurchase
93,071
123,205
162,450
(30,134)
Other short-term borrowings
-
-
250,000
-
Notes payable
1,004,649
1,304,049
888,534
(299,400)
Other liabilities
844,008
841,185
934,526
2,823
Total liabilities
65,279,328
66,273,257
67,054,837
(993,929)
Stockholders’ equity:
Preferred stock
22,143
22,143
22,143
-
Common stock
1,048
1,047
1,046
1
Surplus
4,797,364
4,795,581
4,652,508
1,783
Retained earnings
4,189,865
4,093,284
3,694,020
96,581
Treasury stock
(2,018,870)
(2,018,611)
(1,970,548)
(259)
Accumulated other comprehensive loss, net
of tax
(2,533,942)
(2,328,435)
(2,724,331)
(205,507)
Total stockholders’ equity
4,457,608
4,565,009
3,674,838
(107,401)
Total liabilities and stockholders’
equity
$69,736,936
$70,838,266
$70,729,675
$(1,101,330)
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table D - Analysis of Levels and Yields
on a Taxable Equivalent Basis (Non-GAAP)
For the quarters ended September 30,
2023 and June 30, 2023
(Unaudited)
Variance
Average Volume
Average Yields / Costs
Interest
Attributable to
30-Sep-23
30-Jun-23
Variance
30-Sep-23
30-Jun-23
Variance
30-Sep-23
30-Jun-23
Variance
Rate
Volume
(In millions)
(In thousands)
$
7,292
$
7,851
$
(559)
5.40
%
5.15
%
0.25
%
Money market investments
$
99,285
$
100,776
$
(1,491)
$
5,912
$
(7,403)
28,396
27,362
1,034
2.31
2.00
0.31
Investment securities [1]
165,319
136,408
28,911
23,826
5,085
34
32
2
4.43
4.65
(0.22)
Trading securities
375
370
5
(14)
19
Total money market,
investment and trading
35,722
35,245
477
2.95
2.70
0.25
securities
264,979
237,554
27,425
29,724
(2,299)
Loans:
16,611
16,237
374
6.64
6.52
0.12
Commercial
277,977
263,934
14,043
7,951
6,092
865
737
128
8.99
8.95
0.04
Construction
19,580
16,442
3,138
244
2,894
1,669
1,632
37
6.50
6.30
0.20
Leasing
27,142
25,711
1,431
829
602
7,504
7,409
95
5.42
5.47
(0.05)
Mortgage
101,700
101,304
396
(898)
1,294
3,147
3,075
72
13.39
13.21
0.18
Consumer
105,042
101,295
3,747
1,540
2,207
3,657
3,593
64
8.47
8.31
0.16
Auto
78,055
74,467
3,588
2,252
1,336
33,453
32,683
770
7.24
7.15
0.09
Total loans
609,496
583,153
26,343
11,918
14,425
$
69,175
$
67,928
$
1,247
5.02
%
4.84
%
0.18
%
Total earning assets
$
874,475
$
820,707
$
53,768
$
41,642
$
12,126
Interest bearing deposits:
$
25,652
$
24,230
$
1,422
3.31
%
2.91
%
0.40
%
NOW and money market [2]
$
213,957
$
175,640
$
38,317
$
25,174
$
13,143
14,875
14,763
112
0.73
0.66
0.07
Savings
27,373
24,446
2,927
2,333
594
7,986
7,715
271
2.62
2.26
0.36
Time deposits
52,791
43,402
9,389
6,926
2,463
48,513
46,708
1,805
2.41
2.09
0.32
Total interest bearing deposits
294,121
243,488
50,633
34,433
16,200
15,038
15,480
(442)
Non-interest bearing demand deposits
63,551
62,188
1,363
1.84
1.57
0.27
Total deposits
294,121
243,488
50,633
34,433
16,200
108
125
(17)
5.45
5.19
0.26
Short-term borrowings
1,478
1,624
(146)
91
(237)
Other medium and
1,172
1,299
(127)
5.20
5.33
(0.13)
long-term debt
15,167
17,227
(2,060)
740
(2,800)
Total interest bearing
49,793
48,132
1,661
2.48
2.19
0.29
liabilities (excluding demand
deposits)
310,766
262,339
48,427
35,264
13,163
4,344
4,316
28
Other sources of funds
$
69,175
$
67,928
$
1,247
1.78
%
1.55
%
0.23
%
Total source of funds
310,766
262,339
48,427
35,264
13,163
Net interest margin/
3.24
%
3.29
%
(0.05)
%
income on a taxable equivalent basis
(Non-GAAP)
563,709
558,368
5,341
$
6,378
$
(1,037)
2.54
%
2.65
%
(0.11)
%
Net interest spread
Taxable equivalent adjustment
29,689
26,700
2,989
Net interest margin/ income
3.07
%
3.14
%
(0.07)
%
non-taxable equivalent basis (GAAP)
$
534,020
$
531,668
$
2,352
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.
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table E - Analysis of Levels and Yields
on a Taxable Equivalent Basis (Non-GAAP)
For the quarters ended September 30,
2023 and September 30, 2022
(Unaudited)
Variance
Average Volume
Average Yields / Costs
Interest
Attributable to
30-Sep-23
30-Sep-22
Variance
30-Sep-23
30-Sep-22
Variance
30-Sep-23
30-Sep-22
Variance
Rate
Volume
(In millions)
(In thousands)
$
7,292
$
6,721
$
571
5.40
%
2.18
%
3.22
%
Money market investments
$
99,285
$
36,966
$
62,319
$
58,920
$
3,399
28,396
31,859
(3,463)
2.31
2.33
(0.02)
Investment securities [1]
165,319
186,847
(21,528)
(1,510)
(20,018)
34
40
(6)
4.43
6.09
(1.66)
Trading securities
375
617
(242)
(150)
(92)
Total money market,
investment and trading
35,722
38,620
(2,898)
2.95
2.31
0.64
securities
264,979
224,430
40,549
57,260
(16,711)
Loans:
16,611
14,750
1,861
6.64
5.52
1.12
Commercial
277,977
205,237
72,740
44,889
27,851
865
835
30
8.99
6.38
2.61
Construction
19,580
13,431
6,149
5,667
482
1,669
1,503
166
6.50
5.90
0.60
Leasing
27,142
22,154
4,988
2,405
2,583
7,504
7,264
240
5.42
5.42
-
Mortgage
101,700
98,348
3,352
93
3,259
3,147
2,818
329
13.39
11.74
1.65
Consumer
105,042
83,407
21,635
11,164
10,471
3,657
3,562
95
8.47
7.93
0.54
Auto
78,055
71,226
6,829
4,889
1,940
33,453
30,732
2,721
7.24
6.39
0.85
Total loans
609,496
493,803
115,693
69,107
46,586
$
69,175
$
69,352
$
(177)
5.02
%
4.12
%
0.90
%
Total earning assets
$
874,475
$
718,233
$
156,242
$
126,367
$
29,875
Interest bearing deposits:
$
25,652
$
25,993
$
(341)
3.31
%
0.56
%
2.75
%
NOW and money market [2]
$
213,957
$
36,448
$
177,509
$
178,787
$
(1,278)
14,875
15,514
(639)
0.73
0.20
0.53
Savings
27,373
7,966
19,407
20,380
(973)
7,986
6,957
1,029
2.62
0.94
1.68
Time deposits
52,791
16,484
36,307
29,147
7,160
48,513
48,464
49
2.41
0.50
1.91
Total interest bearing deposits
294,121
60,898
233,223
228,314
4,909
15,038
15,872
(834)
Non-interest bearing demand deposits
63,551
64,336
(785)
1.84
0.38
1.46
Total deposits
294,121
60,898
233,223
228,314
4,909
108
155
(47)
5.45
2.36
3.09
Short-term borrowings
1,478
921
557
976
(419)
Other medium and
1,172
913
259
5.20
4.29
0.91
long-term debt
15,167
9,798
5,369
1,050
4,319
Total interest bearing
49,793
49,532
261
2.48
0.57
1.91
liabilities (excluding demand
deposits)
310,766
71,617
239,149
230,340
8,809
4,344
3,948
396
Other sources of funds
$
69,175
$
69,352
$
(177)
1.78
%
0.41
%
1.37
%
Total source of funds
310,766
71,617
239,149
230,340
8,809
Net interest margin/
3.24
%
3.71
%
(0.47)
%
income on a taxable equivalent basis
(Non-GAAP)
563,709
646,616
(82,907)
$
(103,973)
$
21,066
2.54
%
3.55
%
(1.01)
%
Net interest spread
Taxable equivalent adjustment
29,689
66,997
(37,308)
Net interest margin/ income
3.07
%
3.32
%
(0.25)
%
non-taxable equivalent basis (GAAP)
$
534,020
$
579,619
$
(45,599)
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.
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table F - Analysis of Levels and Yields
on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE
(Unaudited)
Variance
Average Volume
Average Yields / Costs
Interest
Attributable to
30-Sep-23
30-Sep-22
Variance
30-Sep-23
30-Sep-22
Variance
30-Sep-23
30-Sep-22
Variance
Rate
Volume
(In millions)
(In thousands)
$
6,966
$
10,969
$
(4,003)
5.10
%
0.82
%
4.28
%
Money market investments
$
265,785
$
67,172
$
198,613
$
231,496
$
(32,883)
28,205
29,371
(1,166)
2.18
2.16
0.02
Investment securities [1]
460,641
475,088
(14,447)
4,862
(19,309)
32
59
(27)
4.52
6.23
(1.71)
Trading securities
1,084
2,725
(1,641)
(621)
(1,020)
Total money market,
investment and trading
35,203
40,399
(5,196)
2.76
1.80
0.96
securities
727,510
544,985
182,525
235,737
(53,212)
Loans:
16,206
14,245
1,961
6.50
5.26
1.24
Commercial
787,381
560,408
226,973
143,107
83,866
778
781
(3)
8.79
5.87
2.92
Construction
51,178
34,305
16,873
17,017
(144)
1,630
1,447
183
6.31
5.92
0.39
Leasing
77,135
64,225
12,910
4,440
8,470
7,434
7,315
119
5.45
5.33
0.12
Mortgage
303,777
292,253
11,524
6,712
4,812
3,082
2,670
412
13.10
11.44
1.66
Consumer
302,050
228,401
73,649
35,342
38,307
3,603
3,507
96
8.31
8.03
0.28
Auto
223,929
210,623
13,306
7,455
5,851
32,733
29,965
2,768
7.13
6.20
0.93
Total loans
1,745,450
1,390,215
355,235
214,073
141,162
$
67,936
$
70,364
$
(2,428)
4.86
%
3.67
%
1.19
%
Total earning assets
$
2,472,960
$
1,935,200
$
537,760
$
449,810
$
87,950
Interest bearing deposits:
$
24,407
$
26,385
$
(1,978)
2.93
%
0.26
%
2.67
%
NOW and money market [2]
$
534,567
$
52,072
$
482,495
$
488,704
$
(6,209)
14,889
16,100
(1,211)
0.62
0.18
0.44
Savings
69,262
21,430
47,832
52,158
(4,326)
7,603
6,913
690
2.23
0.77
1.46
Time deposits
126,995
40,005
86,990
71,425
15,565
46,899
49,398
(2,499)
2.08
0.31
1.77
Total interest bearing deposits
730,824
113,507
617,317
612,287
5,030
15,405
16,088
(683)
Non-interest bearing demand deposits
62,304
65,486
(3,182)
1.57
0.23
1.34
Total deposits
730,824
113,507
617,317
612,287
5,030
160
124
36
5.02
1.34
3.68
Short-term borrowings
5,987
1,249
4,738
4,298
440
Other medium and
1,140
948
192
5.12
4.25
0.87
long-term debt
43,660
30,168
13,492
7,506
5,986
Total interest bearing
48,199
50,470
(2,271)
2.16
0.38
1.78
liabilities (excluding demand
deposits)
780,471
144,924
635,547
624,091
11,456
4,332
3,806
526
Other sources of funds
$
67,936
$
70,364
$
(2,428)
1.54
%
0.28
%
1.26
%
Total source of funds
780,471
144,924
635,547
624,091
11,456
Net interest margin/
3.32
%
3.39
%
(0.07)
%
income on a taxable equivalent basis
(Non-GAAP)
1,692,489
1,790,276
(97,787)
$
(174,281)
$
76,494
2.70
%
3.29
%
(0.59)
%
Net interest spread
Taxable equivalent adjustment
95,145
182,483
(87,338)
Net interest margin/ income
3.14
%
3.05
%
0.09
%
non-taxable equivalent basis (GAAP)
$
1,597,344
$
1,607,793
$
(10,449)
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.
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table G - Mortgage Banking Activities
and Other Service Fees
(Unaudited)
Mortgage Banking Activities
Quarters ended
Variance
Nine months ended
Variance
(In thousands)
30-Sep-23
30-Jun-23
30-Sep-22
Q3 2023 vs. Q2 2023
Q3 2023 vs. Q3 2022
30-Sep-23
30-Sep-22
2023 vs. 2022
Mortgage servicing fees, net of fair value
adjustments:
Mortgage servicing fees
$8,025
$8,369
$9,126
$(344)
$(1,101)
$25,083
$27,635
$(2,552)
Mortgage servicing rights fair value
adjustments
(2,793)
(6,216)
(499)
3,423
(2,294)
(10,385)
2,846
(13,231)
Total mortgage servicing fees, net of fair
value adjustments
5,232
2,153
8,627
3,079
(3,395)
14,698
30,481
(15,783)
Net (loss) gain on sale of loans,
including valuation on loans held-for-sale
(335)
(61)
1,124
(274)
(1,459)
(133)
(374)
241
Trading account profit (loss):
Unrealized gains on outstanding derivative
positions
45
246
-
(201)
45
160
-
160
Realized gains (losses) on closed
derivative positions
494
111
(240)
383
734
661
6,325
(5,664)
Total trading account profit (loss)
539
357
(240)
182
779
821
6,325
(5,504)
Losses on repurchased loans, including
interest advances
(43)
(133)
(63)
90
20
(277)
(544)
267
Total mortgage banking activities
$5,393
$2,316
$9,448
$3,077
$(4,055)
$15,109
$35,888
$(20,779)
Other Service Fees
Quarters ended
Variance
Nine months ended
Variance
(In thousands)
30-Sep-23
30-Jun-23
30-Sep-22
Q3 2023 vs. Q2 2023
Q3 2023 vs. Q3 2022
30-Sep-23
30-Sep-22
2023 vs. 2022
Other service fees:
Debit card fees
$13,577
$13,600
$12,133
$(23)
$1,444
$40,343
$36,794
$3,549
Insurance fees
14,983
14,625
15,697
358
(714)
43,481
41,870
1,611
Credit card fees
40,804
42,644
37,829
(1,840)
2,975
123,946
109,626
14,320
Sale and administration of investment
products
6,820
6,076
5,952
744
868
19,454
17,760
1,694
Trust fees
6,381
6,600
5,506
(219)
875
18,756
17,576
1,180
Other fees
10,842
10,720
9,285
122
1,557
31,768
21,361
10,407
Total other service fees
$93,407
$94,265
$86,402
$(858)
$7,005
$277,748
$244,987
$32,761
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table H - Loans and Deposits
(Unaudited)
Loans - Ending Balances
Variance
(In thousands)
30-Sep-23
30-Jun-23
30-Sep-22
Q3 2023 vs. Q2 2023
Q3 2023 vs. Q3 2022
Loans held-in-portfolio:
Commercial
Commercial multi-family
$2,328,433
$2,331,499
$2,204,109
(3,066)
124,324
Commercial real estate non-owner
occupied
5,035,130
4,744,256
4,517,475
290,874
517,655
Commercial real estate owner occupied
3,044,905
3,041,398
3,066,548
3,507
(21,643)
Commercial and industrial
6,527,082
6,251,147
5,578,727
275,935
948,355
Total Commercial
16,935,550
16,368,300
15,366,859
567,250
1,568,691
Construction
922,112
819,903
816,290
102,209
105,822
Leasing
1,698,114
1,661,523
1,538,504
36,591
159,610
Mortgage
7,585,111
7,449,078
7,311,713
136,033
273,398
Consumer
Credit cards
1,077,428
1,057,389
988,550
20,039
88,878
Home equity lines of credit
67,499
68,440
72,796
(941)
(5,297)
Personal
1,952,168
1,896,594
1,756,021
55,574
196,147
Auto
3,633,196
3,565,533
3,528,904
67,663
104,292
Other
158,135
144,162
143,551
13,973
14,584
Total Consumer
6,888,426
6,732,118
6,489,822
156,308
398,604
Total loans held-in-portfolio
$34,029,313
$33,030,922
$31,523,188
$998,391
$2,506,125
Loans held-for-sale:
Mortgage
$5,239
$9,509
$8,065
$(4,270)
$(2,826)
Credit cards
-
45,912
-
(45,912)
-
Total loans held-for-sale
$5,239
$55,421
$8,065
$(50,182)
$(2,826)
Total loans
$34,034,552
$33,086,343
$31,531,253
$948,209
$2,503,299
Deposits - Ending Balances
Variance
(In thousands)
30-Sep-23
30-Jun-23
30-Sep-22
Q3 2023 vs. Q2 2023
Q3 2023 vs. Q3 2022
Demand deposits [1]
$27,942,782
$27,690,840
$28,773,328
$251,942
$(830,546)
Savings, NOW and money market deposits
(non-brokered)
26,452,382
27,539,343
28,388,057
(1,086,961)
(1,935,675)
Savings, NOW and money market deposits
(brokered)
734,479
772,783
728,651
(38,304)
5,828
Time deposits (non-brokered)
7,264,156
7,231,840
6,731,588
32,316
532,568
Time deposits (brokered CDs)
943,801
770,012
197,703
173,789
746,098
Total deposits
$63,337,600
$64,004,818
$64,819,327
$(667,218)
$(1,481,727)
[1] Includes interest and non-interest
bearing demand deposits.
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table I - Loan Delinquency -BPPR
Operations
(Unaudited)
30-Sep-23
BPPR
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
$
4,407
$
176
$
184
$
4,767
$
290,047
$
294,814
$
184
$
-
Commercial real estate:
Non-owner occupied
1,274
-
15,330
16,604
2,932,277
2,948,881
15,330
-
Owner occupied
817
827
35,089
36,733
1,370,820
1,407,553
35,089
-
Commercial and industrial
4,022
1,728
24,733
30,483
4,299,335
4,329,818
21,624
3,109
Construction
-
-
6,578
6,578
163,929
170,507
6,578
-
Mortgage
241,962
100,679
430,430
773,071
5,516,197
6,289,268
187,443
242,987
Leasing
17,915
4,574
6,842
29,331
1,668,783
1,698,114
6,842
-
Consumer:
Credit cards
11,218
8,133
17,719
37,070
1,040,341
1,077,411
-
17,719
Home equity lines of credit
26
-
-
26
2,448
2,474
-
-
Personal
19,586
12,476
18,582
50,644
1,712,358
1,763,002
18,582
-
Auto
89,453
23,019
40,268
152,740
3,480,456
3,633,196
40,268
-
Other
567
388
2,152
3,107
144,425
147,532
1,885
267
Total
$
391,247
$
152,000
$
597,907
$
1,141,154
$
22,621,416
$
23,762,570
$
333,825
$
264,082
30-Jun-23
BPPR
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
$
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
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
$
629
$
(3)
$
-
$
626
$
(2,689)
$
(2,063)
$
-
$
-
Commercial real estate:
Non-owner occupied
1,097
(512)
(7,612)
(7,027)
49,661
42,634
(7,612)
-
Owner occupied
(424)
127
(743)
(1,040)
(19,465)
(20,505)
(743)
-
Commercial and industrial
1,425
1,000
(8,113)
(5,688)
296,683
290,995
(8,134)
21
Construction
-
(970)
(2,706)
(3,676)
448
(3,228)
(2,706)
-
Mortgage
20,775
11,724
(19,500)
12,999
107,981
120,980
(6,776)
(12,724)
Leasing
4,755
763
2,099
7,617
28,974
36,591
2,099
-
Consumer:
Credit cards
1,712
1,822
3,534
7,068
12,971
20,039
-
3,534
Home equity lines of credit
26
-
-
26
(122)
(96)
-
-
Personal
4,721
816
1,144
6,681
70,355
77,036
1,144
-
Auto
13,574
4,597
4,064
22,235
45,428
67,663
4,064
-
Other
55
114
251
420
11,820
12,240
150
101
Total
$
48,345
$
19,478
$
(27,582)
$
40,241
$
602,045
$
642,286
$
(18,514)
$
(9,068)
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table J - Loan Delinquency - Popular
U.S. Operations
(Unaudited)
30-Sep-23
Popular U.S.
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
$
1,332
$
-
$
404
$
1,736
$
2,031,883
$
2,033,619
$
404
$
-
Commercial real estate:
Non-owner occupied
2,628
-
734
3,362
2,082,887
2,086,249
734
-
Owner occupied
1,110
923
3,877
5,910
1,631,442
1,637,352
3,877
-
Commercial and industrial
3,000
464
3,709
7,173
2,190,091
2,197,264
3,579
130
Construction
-
-
-
-
751,605
751,605
-
-
Mortgage
946
22,313
11,980
35,239
1,260,604
1,295,843
11,980
-
Consumer:
Credit cards
-
-
-
-
17
17
-
-
Home equity lines of credit
1,045
335
4,085
5,465
59,560
65,025
4,085
-
Personal
2,581
1,716
2,637
6,934
182,232
189,166
2,637
-
Other
113
-
402
515
10,088
10,603
402
-
Total
$
12,755
$
25,751
$
27,828
$
66,334
$
10,200,409
$
10,266,743
$
27,698
$
130
30-Jun-23
Popular U.S.
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
$
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
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
$
(1,805)
$
-
$
(14)
$
(1,819)
$
816
$
(1,003)
$
(14)
$
-
Commercial real estate:
Non-owner occupied
1,996
-
615
2,611
245,629
248,240
615
-
Owner occupied
(696)
923
(1,218)
(991)
25,003
24,012
(1,218)
-
Commercial and industrial
536
(1,274)
(2,446)
(3,184)
(11,876)
(15,060)
(2,399)
(47)
Construction
-
-
-
-
105,437
105,437
-
-
Mortgage
(155)
16,878
(2,597)
14,126
927
15,053
(2,597)
-
Consumer:
Credit cards
-
-
-
-
-
-
-
-
Home equity lines of credit
581
286
(167)
700
(1,545)
(845)
(167)
-
Personal
(185)
(9)
(89)
(283)
(21,179)
(21,462)
(89)
-
Other
113
(154)
402
361
1,372
1,733
402
-
Total
$
385
$
16,650
$
(5,514)
$
11,521
$
344,584
$
356,105
$
(5,467)
$
(47)
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table K - Loan Delinquency -
Consolidated
(Unaudited)
30-Sep-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
$
5,739
$
176
$
588
$
6,503
$
2,321,930
$
2,328,433
$
588
$
-
Commercial real estate:
Non-owner occupied
3,902
-
16,064
19,966
5,015,164
5,035,130
16,064
-
Owner occupied
1,927
1,750
38,966
42,643
3,002,262
3,044,905
38,966
-
Commercial and industrial
7,022
2,192
28,442
37,656
6,489,426
6,527,082
25,203
3,239
Construction
-
-
6,578
6,578
915,534
922,112
6,578
-
Mortgage
242,908
122,992
442,410
808,310
6,776,801
7,585,111
199,423
242,987
Leasing
17,915
4,574
6,842
29,331
1,668,783
1,698,114
6,842
-
Consumer:
Credit cards
11,218
8,133
17,719
37,070
1,040,358
1,077,428
-
17,719
Home equity lines of credit
1,071
335
4,085
5,491
62,008
67,499
4,085
-
Personal
22,167
14,192
21,219
57,578
1,894,590
1,952,168
21,219
-
Auto
89,453
23,019
40,268
152,740
3,480,456
3,633,196
40,268
-
Other
680
388
2,554
3,622
154,513
158,135
2,287
267
Total
$
404,002
$
177,751
$
625,735
$
1,207,488
$
32,821,825
$
34,029,313
$
361,523
$
264,212
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
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
$
(1,176)
$
(3)
$
(14)
$
(1,193)
$
(1,873)
$
(3,066)
$
(14)
$
-
Commercial real estate:
Non-owner occupied
3,093
(512)
(6,997)
(4,416)
295,290
290,874
(6,997)
-
Owner occupied
(1,120)
1,050
(1,961)
(2,031)
5,538
3,507
(1,961)
-
Commercial and industrial
1,961
(274)
(10,559)
(8,872)
284,807
275,935
(10,533)
(26)
Construction
-
(970)
(2,706)
(3,676)
105,885
102,209
(2,706)
-
Mortgage
20,620
28,602
(22,097)
27,125
108,908
136,033
(9,373)
(12,724)
Leasing
4,755
763
2,099
7,617
28,974
36,591
2,099
-
Consumer:
Credit cards
1,712
1,822
3,534
7,068
12,971
20,039
-
3,534
Home equity lines of credit
607
286
(167)
726
(1,667)
(941)
(167)
-
Personal
4,536
807
1,055
6,398
49,176
55,574
1,055
-
Auto
13,574
4,597
4,064
22,235
45,428
67,663
4,064
-
Other
168
(40)
653
781
13,192
13,973
552
101
Total
$
48,730
$
36,128
$
(33,096)
$
51,762
$
946,629
$
998,391
$
(23,981)
$
(9,115)
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table L - Non-Performing Assets
(Unaudited)
Variance
(In thousands)
30-Sep-23
As a % of loans HIP by
category
30-Jun-23
As a % of loans HIP by
category
30-Sep-22
As a % of loans HIP by
category
Q3 2023 vs. Q2 2023
Q3 2023 vs. Q3 2022
Non-accrual loans:
Commercial
Commercial multi-family
$588
-
%
$602
-
%
$251
-
%
$(14)
$337
Commercial real estate non-owner
occupied
16,064
0.3
23,061
0.5
32,074
0.7
(6,997)
(16,010)
Commercial real estate owner occupied
38,966
1.3
40,927
1.3
28,985
0.9
(1,961)
9,981
Commercial and industrial
25,203
0.4
35,736
0.6
42,566
0.8
(10,533)
(17,363)
Total Commercial
80,821
0.5
100,326
0.6
103,876
0.7
(19,505)
(23,055)
Construction
6,578
0.7
9,284
1.1
-
-
(2,706)
6,578
Leasing
6,842
0.4
4,743
0.3
5,697
0.4
2,099
1,145
Mortgage
199,423
2.6
208,796
2.8
274,306
3.8
(9,373)
(74,883)
Consumer
Home equity lines of credit
4,085
6.1
4,252
6.2
3,970
5.5
(167)
115
Personal
21,219
1.1
20,164
1.1
19,378
1.1
1,055
1,841
Auto
40,268
1.1
36,204
1.0
34,432
1.0
4,064
5,836
Other Consumer
2,287
1.4
1,735
1.2
11,760
8.2
552
(9,473)
Total Consumer
67,859
1.0
62,355
0.9
69,540
1.1
5,504
(1,681)
Total non-performing loans
held-in-portfolio
361,523
1.1
%
385,504
1.2
%
453,419
1.4
%
(23,981)
(91,896)
Other real estate owned (“OREO”)
82,322
86,216
93,239
(3,894)
(10,917)
Total non-performing assets [1]
$443,845
$471,720
$546,658
$(27,875)
$(102,813)
Accruing loans past due 90 days or more
[2]
$264,212
$273,327
$340,503
$(9,115)
$(76,291)
Ratios:
Non-performing assets to total assets
0.64
%
0.67
%
0.77
%
Non-performing loans held-in-portfolio to
loans held-in-portfolio
1.06
1.17
1.44
Allowance for credit losses to loans
held-in-portfolio
2.09
2.12
2.23
Allowance for credit losses to
non-performing loans, excluding loans held-for-sale
196.69
181.63
155.07
[1] There were no non-performing loans
held-for-sale as of September 30, 2023, June 30, 2023 and September
30, 2022.
[2] 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.
The balance of these loans includes $8 million at September 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 (June 30, 2023 - $7 million; September 30,
2022 - $9 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 $115 million of residential
mortgage loans insured by FHA or guaranteed by the VA that are no
longer accruing interest as of September 30, 2023 (June 30, 2023 -
$133 million; September 30, 2022 - $198 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
Corporation's policy to exclude these balances from non-performing
assets (June 30, 2023- $39 million; September 30, 2022 - $42
million).
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table M - Activity in Non-Performing
Loans
(Unaudited)
Commercial loans
held-in-portfolio:
Quarter ended
Quarter ended
30-Sep-23
30-Jun-23
(In thousands)
BPPR
Popular U.S.
Popular, Inc.
BPPR
Popular U.S.
Popular, Inc.
Beginning balance NPLs
$88,716
$11,610
$100,326
$90,952
$11,048
$102,000
Plus:
New non-performing loans
2,736
1,324
4,060
3,203
4,631
7,834
Advances on existing non-performing
loans
-
7
7
-
2
2
Less:
Non-performing loans transferred to
OREO
(138)
-
(138)
(21)
-
(21)
Non-performing loans charged-off
(969)
(2,446)
(3,415)
(595)
(2,175)
(2,770)
Loans returned to accrual status / loan
collections
(18,118)
(1,901)
(20,019)
(4,823)
(1,896)
(6,719)
Ending balance NPLs
$72,227
$8,594
$80,821
$88,716
$11,610
$100,326
Construction loans
held-in-portfolio:
Quarter ended
Quarter ended
30-Sep-23
30-Jun-23
(In thousands)
BPPR
Popular U.S.
Popular, Inc.
BPPR
Popular U.S.
Popular, Inc.
Beginning balance NPLs
$9,284
$-
$9,284
$-
$-
$-
Plus:
New non-performing loans
-
-
-
9,284
-
9,284
Less:
Non-performing loans charged-off
(2,537)
-
(2,537)
-
-
-
Loans returned to accrual status / loan
collections
(169)
-
(169)
-
-
-
Ending balance NPLs
$6,578
$-
$6,578
$9,284
$-
$9,284
Mortgage loans
held-in-portfolio:
Quarter ended
Quarter ended
30-Sep-23
30-Jun-23
(In thousands)
BPPR
Popular U.S.
Popular, Inc.
BPPR
Popular U.S.
Popular, Inc.
Beginning balance NPLs
$194,219
$14,577
$208,796
$224,075
$14,719
$238,794
Plus:
New non-performing loans
34,657
4,503
39,160
27,518
4,457
31,975
Advances on existing non-performing
loans
-
5
5
-
76
76
Less:
Non-performing loans transferred to
OREO
(5,519)
-
(5,519)
(9,226)
-
(9,226)
Non-performing loans charged-off
152
-
152
271
-
271
Loans returned to accrual status / loan
collections
(36,066)
(7,105)
(43,171)
(48,419)
(4,675)
(53,094)
Ending balance NPLs
$187,443
$11,980
$199,423
$194,219
$14,577
$208,796
Total non-performing loans
held-in-portfolio (excluding consumer):
Quarter ended
Quarter ended
30-Sep-23
30-Jun-23
(In thousands)
BPPR
Popular U.S.
Popular, Inc.
BPPR
Popular U.S.
Popular, Inc.
Beginning balance NPLs
$292,219
$26,187
$318,406
$315,027
$25,767
$340,794
Plus:
New non-performing loans
37,393
5,827
43,220
40,005
9,088
49,093
Advances on existing non-performing
loans
-
12
12
-
78
78
Less:
Non-performing loans transferred to
OREO
(5,657)
-
(5,657)
(9,247)
-
(9,247)
Non-performing loans charged-off
(3,354)
(2,446)
(5,800)
(324)
(2,175)
(2,499)
Loans returned to accrual status / loan
collections
(54,353)
(9,006)
(63,359)
(53,242)
(6,571)
(59,813)
Ending balance NPLs
$266,248
$20,574
$286,822
$292,219
$26,187
$318,406
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table N - Allowance for Credit Losses,
Net Charge-offs and Related Ratios
(Unaudited)
Quarters ended
(In thousands)
30-Sep-23
30-Jun-23
30-Sep-22
Balance at beginning of period - loans
held-in-portfolio
$700,200
$689,120
$681,750
Provision for credit losses (benefit)
43,514
35,661
39,519
Initial allowance for credit losses - PCD
Loans
9
10
59
743,723
724,791
721,328
Net loans charge-off (recovered)-
BPPR
Commercial:
Commercial multi-family
-
(1)
-
Commercial real estate non-owner
occupied
(168)
430
(368)
Commercial real estate owner occupied
166
(329)
(2,395)
Commercial and industrial
(10,547)
(1,431)
1,613
Total Commercial
(10,549)
(1,331)
(1,150)
Construction
2,611
-
-
Leasing
1,442
1,593
1,338
Mortgage
(3,800)
(3,384)
(2,165)
Consumer:
Credit cards
8,631
6,502
4,483
Home equity lines of credit
(30)
(25)
(129)
Personal
17,303
12,641
8,227
Auto
9,691
2,491
7,375
Other Consumer
301
200
417
Total Consumer
35,896
21,809
20,373
Total net charged-off (recovered) BPPR
$25,600
$18,687
$18,396
Net loans charge-off (recovered) -
Popular U.S.
Commercial:
Commercial multi-family
(1)
(1)
(8)
Commercial real estate non-owner
occupied
(66)
(66)
(2)
Commercial real estate owner occupied
1,202
156
(26)
Commercial and industrial
899
1,734
(475)
Total Commercial
2,034
1,823
(511)
Mortgage
(62)
(109)
(23)
Consumer:
Home equity lines of credit
12
(166)
(907)
Personal
5,032
3,708
1,237
Other Consumer
39
47
40
Total Consumer
5,083
3,589
370
Total net charged-off (recovered) Popular
U.S.
$7,055
$5,303
$(164)
Total loans charged-off (recovered) -
Popular, Inc.
$32,655
$23,990
$18,232
Net write- downs [1]
$-
$601
$-
Balance at end of period - loans
held-in-portfolio
$711,068
$700,200
$703,096
Balance at beginning of period - unfunded
commitments
$11,593
$9,415
$6,904
Provision for credit losses (benefit)
1,691
2,178
403
Balance at end of period - unfunded
commitments [2]
$13,284
$11,593
$7,307
POPULAR, INC.
Annualized net charge-offs (recoveries) to
average loans held-in-portfolio
0.39
%
0.29
%
0.24
%
Provision for credit losses (benefit) -
loan portfolios to net charge-offs
133.25
%
148.65
%
216.76
%
BPPR
Annualized net charge-offs (recoveries) to
average loans held-in-portfolio
0.44
%
0.33
%
0.34
%
Provision for credit losses (benefit) -
loan portfolios to net charge-offs
211.00
%
151.86
%
155.98
%
Popular U.S.
Annualized net charge-offs (recoveries) to
average loans held-in-portfolio
0.28
%
0.22
%
(0.01)
%
Provision for credit losses (benefit) -
loan portfolios to net charge-offs
(148.87)
%
137.32
%
N.M.
%
N.M. - Not meaningful.
[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.
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table O - Allowance for Credit Losses
"ACL"- Loan Portfolios - Consolidated
(Unaudited)
30-Sep-23
(In thousands)
Total ACL
Total loans held-in-portfolio
ACL to loans
held-in-portfolio
Commercial:
Commercial multi-family
$15,223
$2,328,433
0.65
%
Commercial real estate - non-owner
occupied
67,149
5,035,130
1.33
%
Commercial real estate - owner
occupied
48,109
3,044,905
1.58
%
Commercial and industrial
103,585
6,527,082
1.59
%
Total commercial
$234,066
$16,935,550
1.38
%
Construction
10,971
922,112
1.19
%
Mortgage
91,904
7,585,111
1.21
%
Leasing
10,198
1,698,114
0.60
%
Consumer:
Credit cards
72,550
1,077,428
6.73
%
Home equity lines of credit
2,387
67,499
3.54
%
Personal
126,116
1,952,168
6.46
%
Auto
155,436
3,633,196
4.28
%
Other consumer
7,440
158,135
4.70
%
Total consumer
$363,929
$6,888,426
5.28
%
Total
$711,068
$34,029,313
2.09
%
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
%
Variance
(In thousands)
Total ACL
Total loans held-in-portfolio
ACL to loans
held-in-portfolio
Commercial:
Commercial multi-family
$(10,956)
$(3,066)
(0.47)
%
Commercial real estate - non-owner
occupied
(4,567)
290,874
(0.18)
%
Commercial real estate - owner
occupied
(3,298)
3,507
(0.11)
%
Commercial and industrial
3,934
275,935
-
%
Total commercial
$(14,887)
$567,250
(0.14)
%
Construction
(361)
102,209
(0.19)
%
Mortgage
(4,189)
136,033
(0.08)
%
Leasing
(3,729)
36,591
(0.24)
%
Consumer:
Credit cards
1,142
20,039
(0.02)
%
Home equity lines of credit
217
(941)
0.37
%
Personal
10,288
55,574
0.35
%
Auto
21,189
67,663
0.51
%
Other consumer
1,198
13,973
0.37
%
Total consumer
$34,034
$156,308
0.38
%
Total
$10,868
$998,391
(0.03)
%
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table P - Allowance for Credit Losses
"ACL"- Loan Portfolios - BPPR Operations
(Unaudited)
30-Sep-23
BPPR
(In thousands)
Total ACL
Total loans held-in-portfolio
ACL to loans
held-in-portfolio
Commercial:
Commercial multi-family
$3,481
$294,814
1.18
%
Commercial real estate - non-owner
occupied
53,208
2,948,881
1.80
%
Commercial real estate - owner
occupied
41,493
1,407,553
2.95
%
Commercial and industrial
87,579
4,329,818
2.02
%
Total commercial
$185,761
$8,981,066
2.07
%
Construction
5,457
170,507
3.20
%
Mortgage
79,900
6,289,268
1.27
%
Leasing
10,198
1,698,114
0.60
%
Consumer:
Credit cards
72,550
1,077,411
6.73
%
Home equity lines of credit
87
2,474
3.52
%
Personal
107,707
1,763,002
6.11
%
Auto
155,436
3,633,196
4.28
%
Other consumer
7,438
147,532
5.04
%
Total consumer
$343,218
$6,623,615
5.18
%
Total
$624,534
$23,762,570
2.63
%
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
%
Variance
(In thousands)
Total ACL
Total loans held-in-portfolio
ACL to loans
held-in-portfolio
Commercial:
Commercial multi-family
(1,306)
(2,063)
(0.43)
%
Commercial real estate - non-owner
occupied
(158)
42,634
(0.04)
%
Commercial real estate - owner
occupied
(408)
(20,505)
0.02
%
Commercial and industrial
5,942
290,995
-
%
Total commercial
$4,070
$311,061
(0.03)
%
Construction
(4,097)
(3,228)
(2.30)
%
Mortgage
(2,999)
120,980
(0.07)
%
Leasing
(3,729)
36,591
(0.24)
%
Consumer:
Credit cards
1,142
20,039
(0.02)
%
Home equity lines of credit
(9)
(96)
(0.22)
%
Personal
11,661
77,036
0.41
%
Auto
21,189
67,663
0.51
%
Other consumer
1,198
12,240
0.43
%
Total consumer
$35,181
$176,882
0.40
%
Total
$28,426
$642,286
0.05
%
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table Q - Allowance for Credit Losses
"ACL"- Loan Portfolios - POPULAR U.S. Operations
(Unaudited)
30-Sep-23
Popular U.S.
(In thousands)
Total ACL
Total loans held-in-portfolio
ACL to loans
held-in-portfolio
Commercial:
Commercial multi-family
$11,742
$2,033,619
0.58
%
Commercial real estate - non-owner
occupied
13,941
2,086,249
0.67
%
Commercial real estate - owner
occupied
6,616
1,637,352
0.40
%
Commercial and industrial
16,006
2,197,264
0.73
%
Total commercial
$48,305
$7,954,484
0.61
%
Construction
5,514
751,605
0.73
%
Mortgage
12,004
1,295,843
0.93
%
Consumer:
Credit cards
-
17
-
%
Home equity lines of credit
2,300
65,025
3.54
%
Personal
18,409
189,166
9.73
%
Other consumer
2
10,603
0.02
%
Total consumer
$20,711
$264,811
7.82
%
Total
$86,534
$10,266,743
0.84
%
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
%
Variance
(In thousands)
Total ACL
Total loans held-in-portfolio
ACL to loans
held-in-portfolio
Commercial:
Commercial multi-family
$(9,650)
$(1,003)
(0.47)
%
Commercial real estate - non-owner
occupied
(4,409)
248,240
(0.33)
%
Commercial real estate - owner
occupied
(2,890)
24,012
(0.19)
%
Commercial and industrial
(2,008)
(15,060)
(0.08)
%
Total commercial
$(18,957)
$256,189
(0.26)
%
Construction
3,736
105,437
0.45
%
Mortgage
(1,190)
15,053
(0.10)
%
Consumer:
Credit cards
-
-
-
%
Home equity lines of credit
226
(845)
0.39
%
Personal
(1,373)
(21,462)
0.34
%
Other consumer
-
1,733
-
%
Total consumer
$(1,147)
$(20,574)
0.16
%
Total
$(17,558)
$356,105
(0.21)
%
Popular, Inc.
Financial Supplement to Third Quarter
2023 Earnings Release
Table R - Reconciliation to GAAP
Financial Measures
(Unaudited)
(In thousands, except share or per share
information)
30-Sep-23
30-Jun-23
30-Sep-22
Total stockholders’ equity
$4,457,608
$4,565,009
$3,674,838
Less: Preferred stock
(22,143)
(22,143)
(22,143)
Less: Goodwill
(804,428)
(827,428)
(827,428)
Less: Other intangibles
(10,559)
(11,354)
(13,738)
Total tangible common equity
$3,620,478
$3,704,084
$2,811,529
Total assets
$69,736,936
$70,838,266
$70,729,675
Less: Goodwill
(804,428)
(827,428)
(827,428)
Less: Other intangibles
(10,559)
(11,354)
(13,738)
Total tangible assets
$68,921,949
$69,999,484
$69,888,509
Tangible common equity to tangible
assets
5.25
%
5.29
%
4.02
%
Common shares outstanding at end of
period
72,127,595
72,103,969
72,673,344
Tangible book value per common share
$50.20
$51.37
$38.69
Quarterly average
Total stockholders’ equity [1]
$6,636,364
$6,553,488
$6,061,748
Less: Preferred Stock
(22,143)
(22,143)
(22,143)
Less: Goodwill
(827,177)
(827,427)
(759,318)
Less: Other intangibles
(11,083)
(11,875)
(24,039)
Total tangible equity
$5,775,961
$5,692,043
$5,256,248
Return on average tangible common
equity
9.36
%
10.63
%
31.86
%
[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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231026924931/en/
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
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