SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Popular, Inc. (the "Corporation," "Popular," "we," "us," "our") (NASDAQ:BPOP) reported net income of $103.3 million for the quarter ended March 31, 2024, compared to net income of $94.6 million for the quarter ended December 31, 2023. Excluding the after-tax impact during the first quarter of 2024 and the fourth quarter of 2023 of the FDIC Special Assessment and the $22.9 million tax expense due to prior period intercompany distributions during the first quarter of 2024, adjusted net income was $135.2 million and $139.9 million for Q1 2024 and Q4 2023, respectively.
Ignacio Alvarez, President and Chief Executive Officer, said: "We are pleased to report solid earnings for the first quarter after considering the impact of an additional accrual for the FDIC special assessment and a tax related expense associated with prior period intercompany distributions. We continued to benefit from a stable deposit base, increased our net interest income by 3% and expanded our net interest margin by eight basis points. Credit remained stable, with trends similar to recent periods. The strength of our liquidity and capital ratios positions us well to continue pursuing sustainable business growth and delivering positive results. I want to thank our colleagues for their continued dedication and commitment to serve our customers and contribute to Popular's success."
Significant Events
FDIC Special Assessment Increase in Estimate
On November 16, 2023, the Federal Deposit Insurance Corporation ("FDIC") approved a final rule that imposes a special assessment (the "FDIC Special Assessment") to recover the losses to the deposit insurance fund resulting from the FDIC's use, in March 2023, of the systemic risk exception to the least-cost resolution test under the Federal Deposit Insurance Act in connection with the receiverships of several failed banks. The special assessments would be collected over eight quarters in 2024 and 2025 with the first assessment period beginning in January 1, 2024. In connection with this assessment, the Corporation recorded an expense of $71.4 million, $45.3 million net of tax, in the fourth quarter of 2023, representing the full amount of the estimated assessment at that time.
The special assessment amount and collection period may change as the estimated loss is periodically adjusted or if the total amount collected varies. The most recent loss estimate from the FDIC has increased from the $16.3 billion issued when the FDIC Special Assessment was approved. As a result, the Corporation recorded an additional expense of $14.3 million, $9.1 million net of tax, in the first quarter of 2024, based on the updated loss estimates.
Tax impact on Intercompany Distributions
The net income for the quarter ended March 31, 2024, included $22.9 million of expenses, of which $16.5 million is reflected in income tax expense, related to an out of period adjustment associated with the Corporation's U.S. subsidiary's failure to pay U.S. federal withholding taxes on certain distributions to the Bank Holding Company (BHC) in Puerto Rico, a foreign corporation for U.S. tax purposes, that occurred in certain years from 2014 to 2023. In addition to the $16.5 million of income tax expense, the Corporation also recognized $6.4 million, reflected in other operating expense, for interest due up to March 31, 2024 on the related late payment of the withholding tax.
Additionally, the Corporation recognized $6.5 million in income tax expense during the quarter ended March 31, 2024 to reflect the U.S. federal tax withholding liability and estimated related Puerto Rico income tax arising from a $50 million dividend paid during the quarter.
Dividends from the U.S. subsidiaries to the BHC are subject to a Federal 10% withholding tax and ordinary income tax in Puerto Rico, subject to foreign tax credits, use of available net operating losses and certain other limitations. The Corporation does not anticipate the tax treatment of U.S. sourced dividends to the BHC to impact BHC liquidity or future capital actions.
Earnings Highlights | |||||||||
(Unaudited) | Quarters ended | ||||||||
(Dollars in thousands, except per share information) | 31-Mar-24 | 31-Dec-23 | 31-Mar-23 | ||||||
Net interest income | $ | 550,744 | $ | 534,180 | $ | 531,656 | |||
Provision for credit losses | 72,598 | 78,663 | 47,637 | ||||||
Net interest income after provision for credit losses | 478,146 | 455,517 | 484,019 | ||||||
Other non-interest income | 163,818 | 168,743 | 161,961 | ||||||
Operating expenses | 483,113 | 531,145 | 440,687 | ||||||
Income before income tax | 158,851 | 93,115 | 205,293 | ||||||
Income tax expense (benefit) | 55,568 | (1,479 | ) | 46,314 | |||||
Net income | $ | 103,283 | $ | 94,594 | $ | 158,979 | |||
Net income applicable to common stock | $ | 102,930 | $ | 94,241 | $ | 158,626 | |||
Net income per common share - basic | $ | 1.43 | $ | 1.31 | $ | 2.22 | |||
Net income per common share - diluted | $ | 1.43 | $ | 1.31 | $ | 2.22 | |||
Non-GAAP Financial Measures
This press release contains financial information prepared under accounting principles generally accepted in the United States ("U.S. GAAP") and Non-GAAP financial measures. Management uses Non-GAAP financial measures when it has determined that these measures provide more meaningful information about the underlying performance of the Corporation's ongoing operations. Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.
Adjusted net income
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. 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 on a taxable equivalent basis
Net interest income, on a taxable equivalent basis, is presented with its different components in Tables D and E for the quarter ended March 31, 2024. 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.
Adjusted Net Income for the Quarter Ended March 31, 2024 (Non-GAAP) | |||||||||
(Unaudited) | |||||||||
(In thousands) | Income before income tax | Income tax expense (benefit) | Total | ||||||
U.S. GAAP Net income | $ | 158,851 | $ | 55,568 | $ | 103,283 | |||
Non-GAAP Adjustments: | |||||||||
FDIC Special Assessment [1] | 14,287 | (5,234 | ) | 9,053 | |||||
Adjustments related to tax withholdings on prior period distributions from U.S. subsidiaries [1] | 6,400 | 16,483 | 22,883 | ||||||
Adjusted net income (Non-GAAP) | $ | 179,538 | $ | 44,319 | $ | 135,219 | |||
[1] Refer to the Significant Events section of this press release for a description of this item. | |||||||||
Adjusted Net Income for the Quarter Ended December 31, 2023 (Non-GAAP) | |||||||||
(Unaudited) | |||||||||
(In thousands) | Income before income tax | Income tax expense (benefit) | Total | ||||||
U.S. GAAP Net income | $ | 93,115 | $ | (1,479 | ) | $ | 94,594 | ||
Non-GAAP Adjustments: | |||||||||
FDIC Special Assessment [1] | 71,435 | (26,170 | ) | 45,265 | |||||
Adjusted net income (Non-GAAP) | $ | 164,550 | $ | 24,691 | $ | 139,859 | |||
[1] Refer to the Significant Events section of this press release for a description of this item. | |||||||||
Net interest income and net interest income on a taxable equivalent basis - Non-GAAP financial measure
Net interest income for the quarter ended March 31, 2024, was $550.7 million, an increase of $16.5 million when compared to $534.2 million in the last quarter of 2023. Net interest income on a taxable equivalent basis for the first quarter of 2024 was $589.5 million, compared to $564.8 million in the previous quarter, an increase of $24.7 million.
Net interest margin for the first quarter of 2024 was 3.16% compared with 3.08% the prior quarter or an increase of eight basis points. On a taxable equivalent basis, net interest margin for the first quarter of 2024 was 3.38%, compared to 3.26% in the last quarter of 2023, or a 12 basis points increase. Quarter over quarter, 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 $23.7 million driven mainly due to reinvestment of maturities in higher yielding U.S. Treasury bills, and higher volume from the increase in deposits; and
- higher interest income from loans by $11.1 million due to higher average volume by $612 million and higher yield by seven basis points. The increase in average loans was led by commercial loans but was reflected in all loan categories. The increase in loan yield results from new loan origination activity and the continued repricing of adjustable-rate loans in a higher interest rate environment;
partially offset by:
- higher interest expense on deposits by $10.3 million, mainly due to higher cost of interest-bearing deposits by nine basis points, mainly at Popular Bank. In Puerto Rico, the cost of government deposits decreased one basis point quarter over quarter, while average balances increased by $498 million.
Net interest income for the Banco Popular de Puerto Rico ("BPPR") segment amounted to $472.8 million for the first quarter of 2024, an increase of $17.9 million when compared to $454.9 million in net interest income during the last quarter of 2023. Net interest margin for the BPPR segment increased 14 basis points to 3.33% compared to 3.19% in the fourth quarter of 2023. The increase in net interest margin reflects a higher volume of loans by $423.6 million largely driven by commercial loans by $227.9 million coupled with higher volume across most loan categories. Earning assets yield improved 15 basis points from 4.88% in Q4 2023 to 5.03% in Q1 2024 mostly due to the repricing of investment securities. The cost of interest-bearing deposits increased by three basis points to 2.44% from 2.41% in the fourth quarter of 2023. Notwithstanding that, the cost of P.R. public funds decreased one basis point during Q1 2024, the increase in the cost of interest-bearing deposits in the first quarter of 2024 is driven by a higher proportion of P.R. public deposits for the quarter, which carry a higher rate. Total deposit cost in the first quarter of 2024 was 1.81%, compared to 1.79% in the fourth quarter of 2023, an increase of two basis points.
Net interest income for Popular Bank ("PB") was $84.9 million for the quarter ended March 31, 2024, a decrease of $0.7 million when compared to $85.6 million in the fourth quarter of 2023. Net interest margin decreased by 13 basis points in the quarter to 2.59%, compared to 2.72% in the fourth quarter of 2023. The decrease in net interest margin was mostly driven by a higher cost and volume of deposits, partially offset by a higher volume of money market investments and investment securities. The cost of interest-bearing deposits was 3.86%, compared to 3.66% for the fourth quarter, or an increase of 20 basis points, while total deposit cost was 3.40% compared to 3.17% in the previous quarter.
Non-interest income
Non-interest income amounted to $163.8 million for the first quarter of 2024, a decrease of $4.9 million when compared to $168.7 million for the quarter ended December 31, 2023. The variance in non-interest income was driven primarily by:
- an unfavorable variance in the adjustment for indemnity reserve on loans previously sold of $2.6 million;
- lower other service fees by $2.4 million due mainly to contingent payments on insurance commissions that are typically received during the fourth quarter; and
- lower income from mortgage banking activities by $2.0 million mainly due to fair value adjustments of mortgage servicing rights ("MSRs");
partially offset by:
- an increase of $3.9 million in other operating income mainly due to a higher income recognized for investments accounted under the "equity investment method" of $1.7 million and a gain on mortgage servicing claims of $1.3 million.
Refer to Table B for further details.
Operating expenses
Operating expenses for the first quarter of 2024 totaled $483.1 million, a decrease of $48.0 million when compared to the fourth quarter of 2023. Excluding the prior period adjustment of $6.4 million for interest accrued on tax withholdings adjustment and the effect of the FDIC Special Assessment discussed in the significant events section of this earnings release, total expenses for the first quarter of 2024 were $462.4 million, compared to $459.7 million in the previous quarter. The other factors that contributed to the variance in operating expenses were:
- higher personnel cost by $20.7 million mainly due to higher annual incentive awards of performance shares and restricted stock expenses by $9.7 million; higher incentive compensation by $1.7 million; higher payroll taxes by $4.4 million and higher other compensation expenses by $3.5 million that traditionally are higher during the first quarter of the year;
- higher credit card processing expenses by $5.5 million mainly due to lower credits in the first quarter of the year for volume incentives from our issuing partners; and
- higher technology and software expenses by $2.7 million mainly from network management services.
partially offset by:
- lower professional fees by $10.1 million mainly due to lower regulatory related consulting fees and lower advisory expenses related to corporate initiatives;
- lower business promotion expense by $6.9 million mainly due to lower seasonal donations, advertising, strategic communications, and sponsorship expenses, which are typically higher in the fourth quarter;
- lower operational losses by $3.4 million mainly related to legal settlements reserves and mortgage servicing operational losses; and
- lower net occupancy expenses by $2.2 million mainly due to a decrease in buildings' repair and maintenance costs;
Full-time equivalent employees were 9,132 as of March 31, 2024, compared to 9,088 as of December 31, 2023.
For a breakdown of operating expenses by category refer to Table B.
Income taxes
For the quarter ended March 31, 2024, the Corporation recorded an income tax expense of $55.6 million, compared to an income tax benefit of $1.5 million for the previous quarter. As mentioned in the significant events section of this earnings release, the income tax expense for the current quarter includes a net impact of $22.9 million related to withholding tax liabilities for distributions from the U.S. subsidiaries to the Corporation in Puerto Rico, out of which $16.5 million were related to distributions between the years 2014-2023 and $6.4 million were related to an intercompany distribution completed in the first quarter of 2024. The tax benefit for the fourth quarter of 2023 reflects the impact of lower income before tax, primarily due to the FDIC Special Assessment accrual of $71.4 million, and other adjustments recorded in that quarter.
The effective tax rate ("ETR") for the first quarter of 2024 was 35.0%, compared to (1.6%) for the previous quarter. Excluding the impact of the withholding tax liabilities and the additional expense related to the FDIC Special Assessment during this quarter, the ETR would have been 24.7%. Excluding the FDIC Special Assessment, the ETR for the fourth quarter of 2023 would have been 15.0%.
The ETR of the Corporation is impacted by the composition and source of its taxable income. The Corporation expects its ETR for the year 2024 to be within a range from 21% to 23%.
Credit Quality
During the first quarter of 2024, the Corporation reflected stable credit quality when compared to the previous quarter. Non-performing loans ("NPLs") and net charge offs ("NCOs") remained below historical averages and delinquencies improved in most loan categories from the prior quarter. We continue to closely monitor changes in the macroeconomic environment and on borrower performance 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 position Popular to continue to operate successfully under the current challenging environment.
The following presents credit quality results for the first quarter of 2024:
- At March 31, 2024, total NPLs held-in-portfolio decreased by $3.5 million from December 31, 2023. BPPR's NPLs decreased by $30.1 million, broadly reflected across most loan categories. The commercial NPLs decrease includes a $5.1 million charge-off related to a previously reserved $17.9 million relationship. PB's NPLs increased by $26.6 million, related to higher mortgage NPLs by $16.9 million, impacted by a single $17.2 million loan, and higher commercial NPLs by $10.2 million. At March 31, 2024, the ratio of NPLs to total loans held-in-portfolio was 1.0%, flat when compared to the fourth quarter of 2023.
- Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $7.9 million quarter-over-quarter. In BPPR, total inflows decreased by $18.9 million driven by the abovementioned $17.9 million inflow in the fourth quarter of 2023. PB inflows increased by $26.8 million, driven by a $16.1 million mortgage inflow and higher commercial inflows by $10.7 million, as explained above,
- NCOs amounted to $62.2 million, increasing by $5.3 million when compared to the fourth quarter of 2023. The increase in NCOs was driven by the abovementioned $5.1 million charge-off related to a previously reserved loan. Excluding this, NCOs were flat quarter-over-quarter. BPPR's NCOs increased by $4.6 million quarter-over-quarter, mainly driven by higher commercial and consumer NCOs by $3.2 million each. Consumer NCOs increase was mostly related to higher credit cards and personal loans charge-offs by $3.1 million and $1.5 million, respectively, offset in part by lower auto NCOs by $1.7 million. PB's NCOs remained flat quarter-over-quarter. The Corporation's ratio of annualized NCOs to average loans held-in-portfolio was 0.71%, compared to 0.66% in the fourth quarter of 2023. Refer to Table N for further information on NCOs and related ratios.
- At March 31, 2024, the allowance for credit losses ("ACL") increased by $10.2 million from the fourth quarter of 2023 to $739.5 million. In BPPR, the ACL increased by $4.5 million, primarily driven by higher reserves for the consumer portfolios attributable to changes in credit quality. In PB, the ACL increased by $5.7 million from the previous quarter, mainly driven by higher reserves for the commercial portfolio due to changes in credit risk ratings.
- 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 weight assigned to the pessimistic scenario decreased this quarter in response to the positive momentum in the economy as expectations for the Federal Reserve achieving a soft landing have improved.
- The 2024 annualized GDP growth in the baseline scenario improved to 2.0% and 2.3% for Puerto Rico and the United States, respectively, compared to 1.2% and 1.7% in the previous quarter. The 2024 forecasted average unemployment rate for Puerto Rico and the United States remained stable at 6.5% and 3.9%, respectively, compared to 6.8% and 4.0% in previous forecast.
- The Corporation's ratio of the ACL to loans held-in-portfolio was 2.11% in the first quarter of 2024, compared to 2.08% in the previous quarter. The ratio of the ACL to NPLs held-in-portfolio stood at 208.8%, compared to 204.0% in the previous quarter.
- The provision for credit losses for the loan portfolios for the first quarter of 2024 was $72.4 million, compared to $75.2 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was $61.0 million, compared to $67.2 million in the previous quarter, while the provision for PB was $11.4 million, compared to $8.0 million in the previous quarter.
- The provision for credit losses on our loan and lease portfolios, as well as the provision (release) for credit losses related to unfunded loan commitments of $(0.2) million and our investment portfolio of $0.4 million for the first quarter of 2024 are aggregated and presented in the provision for credit losses caption in our Consolidated Statement of Operations. For the first quarter, these combined concepts resulted in a provision expense of $72.6 million, compared to $78.7 million in the previous quarter.
Non-Performing Assets | |||||||||||
(Unaudited) | |||||||||||
(In thousands) | 31-Mar-24 | 31-Dec-23 | 31-Mar-23 | ||||||||
Non-performing loans held-in-portfolio | $ | 354,127 | $ | 357,611 | $ | 412,383 | |||||
Other real estate owned ("OREO") | 80,542 | 80,416 | 91,721 | ||||||||
Total non-performing assets | $ | 434,669 | $ | 438,027 | $ | 504,104 | |||||
Net charge-offs (recoveries) for the quarter | $ | 62,200 | $ | 56,947 | $ | 32,813 | |||||
Ratios: | |||||||||||
Loans held-in-portfolio | $ | 35,118,738 | $ | 35,064,971 | $ | 32,338,373 | |||||
Non-performing loans held-in-portfolio to loans held-in-portfolio | 1.01 | % | 1.02 | % | 1.28 | % | |||||
Allowance for credit losses to loans held-in-portfolio | 2.11 | 2.08 | 2.13 | ||||||||
Allowance for credit losses to non-performing loans, excluding loans held-for-sale | 208.84 | 203.95 | 167.11 | ||||||||
Refer to Table L for additional information. | |||||||||||
Provision for Credit Losses (Benefit) - Loan Portfolios | |||||||||
(Unaudited) | Quarters ended | ||||||||
(In thousands) | 31-Mar-24 | 31-Dec-23 | 31-Mar-23 | ||||||
Provision for credit losses (benefit) - loan portfolios: | |||||||||
BPPR | $ | 61,008 | $ | 67,235 | $ | 45,203 | |||
Popular U.S. | 11,378 | 7,983 | 1,943 | ||||||
Total provision for credit losses (benefit) - loan portfolios | $ | 72,386 | $ | 75,218 | $ | 47,146 | |||
Credit Quality by Segment | ||||||||||||
(Unaudited) | ||||||||||||
(In thousands) | Quarters ended | |||||||||||
BPPR | 31-Mar-24 | 31-Dec-23 | 31-Mar-23 | |||||||||
Provision for credit losses - loan portfolios | $ | 61,008 | $ | 67,235 | $ | 45,203 | ||||||
Net charge-offs | 56,561 | 51,913 | 31,464 | |||||||||
Total non-performing loans held-in-portfolio | 298,594 | 328,718 | 378,979 | |||||||||
Annualized net charge-offs (recoveries) to average loans held-in-portfolio | 0.92 | % | 0.86 | % | 0.56 | % | ||||||
Allowance / loans held-in-portfolio | 2.62 | % | 2.61 | % | 2.57 | % | ||||||
Allowance / non-performing loans held-in-portfolio | 215.79 | % | 194.65 | % | 154.89 | % | ||||||
Quarters ended | ||||||||||||
Popular U.S. | 31-Mar-24 | 31-Dec-23 | 31-Mar-23 | |||||||||
Provision for credit losses - loan portfolios | $ | 11,378 | $ | 7,983 | $ | 1,943 | ||||||
Net charge-offs | 5,639 | 5,034 | 1,349 | |||||||||
Total non-performing loans held-in-portfolio | 55,533 | 28,893 | 33,404 | |||||||||
Annualized net charge-offs (recoveries) to average loans held-in-portfolio | 0.21 | % | 0.19 | % | 0.06 | % | ||||||
Allowance / loans held-in-portfolio | 0.91 | % | 0.85 | % | 1.07 | % | ||||||
Allowance / non-performing loans held-in-portfolio | 171.47 | % | 309.70 | % | 305.69 | % | ||||||
Financial Condition Highlights | ||||||||
(Unaudited) | ||||||||
(In thousands) | 31-Mar-24 | 31-Dec-23 | 31-Mar-23 | |||||
Cash and money market investments | $ | 6,249,064 | $ | 7,419,333 | $ | 6,560,301 | ||
Investment securities | 26,324,139 | 25,148,673 | 25,951,936 | |||||
Loans | 35,118,738 | 35,064,971 | 32,338,373 | |||||
Total assets | 70,936,939 | 70,758,155 | 67,675,759 | |||||
Deposits | 63,808,784 | 63,618,243 | 60,953,888 | |||||
Borrowings | 1,032,393 | 1,078,332 | 1,402,626 | |||||
Total liabilities | 65,759,625 | 65,611,202 | 63,205,034 | |||||
Stockholders' equity | 5,177,314 | 5,146,953 | 4,470,725 | |||||
Total assets amounted to $70.9 billion at March 31, 2024, an increase of $178.8 million from the fourth quarter of 2023, driven by:
- an increase in securities available-for-sale ("AFS") of $1.3 billion, mainly due to purchases of U.S. Treasury Securities, partially offset by repayments and maturities and higher unrealized losses on mortgage-backed securities;
- an increase in other assets of $106.3 million mainly due to unsettled trade receivable from the maturity of U.S. Treasury Notes during the first quarter for which the proceeds were received during the second quarter; and
- an increase in loans held-in-portfolio of $53.8 million driven by an increase of $123.8 million at BPPR, mainly in the mortgage portfolio as well as in auto loans, partially offset by a decrease of $70.1 million at PB mainly from commercial loans;
partially offset by:
- a net decrease in cash and money market investments of $1.2 billion due to the investments in the debt securities portfolio and loan originations; and
- a decrease in securities held-to-maturity ("HTM") of $111.1 million driven by maturities of U.S. Treasury securities, partially offset by the amortization of $44.0 million of the discount related to U.S. Treasury securities previously reclassified from the AFS to HTM.
Total liabilities increased by $148.4 million from the fourth quarter of 2023, driven by:
- an increase of $190.5 million in deposits, mainly in retail deposits, time deposits and deposits in trust, partially offset by a decrease in P.R. public sector accounts at BPPR;
partially offset by:
- a decrease of $25.3 million in assets sold under agreements to repurchase mainly due to maturities at PB; and
- a decrease of $20.6 million in notes payable due to $20.0 million in repayment of Federal Home Loan Bank Advances mainly in PB.
Stockholders' equity increased by $30.4 million from the fourth quarter of 2023, mainly due to net income for the quarter of $103.3 million and the amortization of unrealized losses from securities previously reclassified to HTM of $35.2 million, net of taxes, partially offset by the after-tax impact of the increase in net unrealized losses in the portfolio of AFS securities of $71.1 million and common and preferred dividends declared during the quarter.
Common Equity Tier 1 ratio ("CET1"), common equity per share and tangible book value per share were 16.36%, $71.32 and $60.06, respectively, at March 31, 2024, compared to 16.30%, $71.03 and $59.74, respectively, at December 31, 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 (including on our cost of deposits), our ability to attract deposits and grow our loan portfolio, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings, new regulatory requirements or accounting standards on the Corporation's financial condition and results of operations, the occurrence of unforeseen or catastrophic events, including extreme weather events, pandemics, man-made disasters or acts of violence or war, as well as actions taken by governmental authorities in response thereto, and the direct and indirect impact of such events 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 additional or special FDIC 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, 2023 and in our Form 10-Q for the quarter ended March 31, 2024 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, Tuesday, April 23, 2024 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 734300.
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, May 23, 2024. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 769181.
An electronic version of this press release can be found at the Corporation's website: www.popular.com.
Popular, Inc. |
Financial Supplement to First Quarter 2024 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) - For the quarter ended March 31, 2024 and December 31,2023 |
Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - For the quarter ended March 31, 2024 and March 31,2023 |
Table F - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE [Left Blank] |
Table G - Mortgage Banking Activities & Other Service Fees |
Table H - Loans and Deposits |
Table I - Loan Delinquency - PUERTO RICO 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 - Loan Portfolios - CONSOLIDATED |
Table P - Allowance for Credit Losses - Loan Portfolios - PUERTO RICO OPERATIONS |
Table Q - Allowance for Credit Losses - Loan Portfolios - POPULAR U.S. OPERATIONS |
Table R - Reconciliation to GAAP Financial Measures |
POPULAR, INC. | |||||||||
Financial Supplement to First Quarter 2024 Earnings Release | |||||||||
Table A - Selected Ratios and Other Information | |||||||||
(Unaudited) | |||||||||
Quarters ended | |||||||||
31-Mar-24 | 31-Dec-23 | 31-Mar-23 | |||||||
Basic EPS | $ | 1.43 | $ | 1.31 | $ | 2.22 | |||
Diluted EPS | $ | 1.43 | $ | 1.31 | $ | 2.22 | |||
Average common shares outstanding | 71,869,735 | 71,810,073 | 71,541,778 | ||||||
Average common shares outstanding - assuming dilution | 71,966,803 | 71,881,020 | 71,606,196 | ||||||
Common shares outstanding at end of period | 72,284,875 | 72,153,621 | 71,965,984 | ||||||
Market value per common share | $ | 88.09 | $ | 82.07 | $ | 57.41 | |||
Market capitalization - (In millions) | $ | 6,368 | $ | 5,922 | $ | 4,132 | |||
Return on average assets | 0.57 | % | 0.52 | % | 0.93 | % | |||
Return on average common equity | 6.07 | % | 5.55 | % | 10.00 | % | |||
Net interest margin (non-taxable equivalent basis) | 3.16 | % | 3.08 | % | 3.22 | % | |||
Net interest margin (taxable equivalent basis) -non-GAAP | 3.38 | % | 3.26 | % | 3.46 | % | |||
Common equity per share | $ | 71.32 | $ | 71.03 | $ | 61.82 | |||
Tangible common book value per common share (non-GAAP) [1] | $ | 60.06 | $ | 59.74 | $ | 50.15 | |||
Tangible common equity to tangible assets (non-GAAP) [1] | 6.19 | % | 6.16 | % | 5.40 | % | |||
Return on average tangible common equity [1] | 6.90 | % | 6.32 | % | 11.51 | % | |||
Tier 1 capital | 16.42 | % | 16.36 | % | 16.79 | % | |||
Total capital | 18.19 | % | 18.13 | % | 18.61 | % | |||
Tier 1 leverage | 8.45 | % | 8.51 | % | 8.37 | % | |||
Common Equity Tier 1 capital | 16.36 | % | 16.30 | % | 16.73 | % | |||
[1] Refer to Table R for reconciliation to GAAP financial measures. | |||||||||
POPULAR, INC. | |||||||||||||||
Financial Supplement to First Quarter 2024 Earnings Release | |||||||||||||||
Table B - Consolidated Statement of Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
Quarters ended | Variance | Quarter ended | Variance | ||||||||||||
Q1 2024 | Q1 2024 | ||||||||||||||
(In thousands, except per share information) | 31-Mar-24 | 31-Dec-23 | vs. Q4 2023 | 31-Mar-23 | vs. Q1 2023 | ||||||||||
Interest income: | |||||||||||||||
Loans | $ | 638,730 | $ | 623,438 | $ | 15,292 | $ | 541,210 | $ | 97,520 | |||||
Money market investments | 88,516 | 100,840 | (12,324 | ) | 65,724 | 22,792 | |||||||||
Investment securities | 166,895 | 143,214 | 23,681 | 132,088 | 34,807 | ||||||||||
Total interest income | 894,141 | 867,492 | 26,649 | 739,022 | 155,119 | ||||||||||
Interest expense: | |||||||||||||||
Deposits | 329,496 | 319,200 | 10,296 | 193,215 | 136,281 | ||||||||||
Short-term borrowings | 1,192 | 1,342 | (150 | ) | 2,885 | (1,693 | ) | ||||||||
Long-term debt | 12,709 | 12,770 | (61 | ) | 11,266 | 1,443 | |||||||||
Total interest expense | 343,397 | 333,312 | 10,085 | 207,366 | 136,031 | ||||||||||
Net interest income | 550,744 | 534,180 | 16,564 | 531,656 | 19,088 | ||||||||||
Provision for credit losses | 72,598 | 78,663 | (6,065 | ) | 47,637 | 24,961 | |||||||||
Net interest income after provision for credit losses | 478,146 | 455,517 | 22,629 | 484,019 | (5,873 | ) | |||||||||
Service charges on deposit accounts | 37,442 | 37,699 | (257 | ) | 34,678 | 2,764 | |||||||||
Other service fees | 94,272 | 96,692 | (2,420 | ) | 90,076 | 4,196 | |||||||||
Mortgage banking activities | 4,360 | 6,388 | (2,028 | ) | 7,400 | (3,040 | ) | ||||||||
Net gain, including impairment, on equity securities | 1,103 | 2,317 | (1,214 | ) | 1,100 | 3 | |||||||||
Net gain on trading account debt securities | 361 | 750 | (389 | ) | 378 | (17 | ) | ||||||||
Net loss on sale of loans, including valuation adjustments on loans held-for-sale | - | (71 | ) | 71 | - | - | |||||||||
Adjustments to indemnity reserves on loans sold | (237 | ) | 2,350 | (2,587 | ) | 612 | (849 | ) | |||||||
Other operating income | 26,517 | 22,618 | 3,899 | 27,717 | (1,200 | ) | |||||||||
Total non-interest income | 163,818 | 168,743 | (4,925 | ) | 161,961 | 1,857 | |||||||||
Operating expenses: | |||||||||||||||
Personnel costs | |||||||||||||||
Salaries | 129,384 | 127,809 | 1,575 | 125,393 | 3,991 | ||||||||||
Commissions, incentives and other bonuses | 38,611 | 26,632 | 11,979 | 31,162 | 7,449 | ||||||||||
Pension, postretirement and medical insurance | 17,385 | 17,598 | (213 | ) | 15,378 | 2,007 | |||||||||
Other personnel costs, including payroll taxes | 29,997 | 22,626 | 7,371 | 26,827 | 3,170 | ||||||||||
Total personnel costs | 215,377 | 194,665 | 20,712 | 198,760 | 16,617 | ||||||||||
Net occupancy expenses | 28,041 | 30,282 | (2,241 | ) | 26,039 | 2,002 | |||||||||
Equipment expenses | 9,567 | 10,179 | (612 | ) | 8,412 | 1,155 | |||||||||
Other taxes | 14,375 | 14,636 | (261 | ) | 16,291 | (1,916 | ) | ||||||||
Professional fees | 28,918 | 39,065 | (10,147 | ) | 33,431 | (4,513 | ) | ||||||||
Technology and software expenses | 79,462 | 76,772 | 2,690 | 68,559 | 10,903 | ||||||||||
Processing and transactional services | |||||||||||||||
Credit and debit cards | 12,144 | 6,682 | 5,462 | 12,550 | (406 | ) | |||||||||
Other processing and transactional services | 22,050 | 22,779 | (729 | ) | 21,359 | 691 | |||||||||
Total processing and transactional services | 34,194 | 29,461 | 4,733 | 33,909 | 285 | ||||||||||
Communications | 4,557 | 4,181 | 376 | 4,088 | 469 | ||||||||||
Business promotion | |||||||||||||||
Rewards and customer loyalty programs | 14,056 | 14,130 | (74 | ) | 12,348 | 1,708 | |||||||||
Other business promotion | 6,933 | 13,767 | (6,834 | ) | 6,523 | 410 | |||||||||
Total business promotion | 20,989 | 27,897 | (6,908 | ) | 18,871 | 2,118 | |||||||||
Deposit insurance | 23,887 | 81,385 | (57,498 | ) | 8,865 | 15,022 | |||||||||
Other real estate owned (OREO) income | (5,321 | ) | (5,178 | ) | (143 | ) | (1,694 | ) | (3,627 | ) | |||||
Other operating expenses | |||||||||||||||
Operational losses | 3,561 | 6,921 | (3,360 | ) | 6,800 | (3,239 | ) | ||||||||
All other | 24,711 | 20,084 | 4,627 | 17,561 | 7,150 | ||||||||||
Total other operating expenses | 28,272 | 27,005 | 1,267 | 24,361 | 3,911 | ||||||||||
Amortization of intangibles | 795 | 795 | - | 795 | - | ||||||||||
Total operating expenses | 483,113 | 531,145 | (48,032 | ) | 440,687 | 42,426 | |||||||||
Income before income tax | 158,851 | 93,115 | 65,736 | 205,293 | (46,442 | ) | |||||||||
Income tax expense (benefit) | 55,568 | (1,479 | ) | 57,047 | 46,314 | 9,254 | |||||||||
Net income | $ | 103,283 | $ | 94,594 | $ | 8,689 | $ | 158,979 | $ | (55,696 | ) | ||||
Net income applicable to common stock | $ | 102,930 | $ | 94,241 | $ | 8,689 | $ | 158,626 | $ | (55,696 | ) | ||||
Net income per common share - basic | $ | 1.43 | $ | 1.31 | $ | 0.12 | $ | 2.22 | $ | (0.79 | ) | ||||
Net income per common share - diluted | $ | 1.43 | $ | 1.31 | $ | 0.12 | $ | 2.22 | $ | (0.79 | ) | ||||
Dividends Declared per Common Share | $ | 0.62 | $ | 0.62 | $ | - | $ | 0.55 | $ | 0.07 | |||||
Popular, Inc. | ||||||||||||
Financial Supplement to First Quarter 2024 Earnings Release | ||||||||||||
Table C - Consolidated Statement of Financial Condition | ||||||||||||
(Unaudited) | ||||||||||||
Variance | ||||||||||||
Q1 2024 vs. | ||||||||||||
(In thousands) | 31-Mar-24 | 31-Dec-23 | 31-Mar-23 | Q4 2023 | ||||||||
Assets: | ||||||||||||
Cash and due from banks | $ | 320,486 | $ | 420,462 | $ | 462,013 | $ | (99,976 | ) | |||
Money market investments | 5,928,578 | 6,998,871 | 6,098,288 | (1,070,293 | ) | |||||||
Trading account debt securities, at fair value | 27,308 | 31,568 | 29,839 | (4,260 | ) | |||||||
Debt securities available-for-sale, at fair value | 18,017,924 | 16,729,044 | 17,173,128 | 1,288,880 | ||||||||
Less: Allowance for credit losses | 500 | - | - | 500 | ||||||||
Debt securities available-for-sale, net | 18,017,424 | 16,729,044 | 17,173,128 | 1,288,380 | ||||||||
Debt securities held-to-maturity, at amortized cost | 8,083,160 | 8,194,335 | 8,563,052 | (111,175 | ) | |||||||
Less: Allowance for credit losses | 5,731 | 5,780 | 6,792 | (49 | ) | |||||||
Debt securities held-to-maturity, net | 8,077,429 | 8,188,555 | 8,556,260 | (111,126 | ) | |||||||
Equity securities | 195,747 | 193,726 | 185,917 | 2,021 | ||||||||
Loans held-for-sale, at lower of cost or fair value | 5,352 | 4,301 | 11,181 | 1,051 | ||||||||
Loans held-in-portfolio | 35,486,161 | 35,420,879 | 32,645,023 | 65,282 | ||||||||
Less: Unearned income | 367,423 | 355,908 | 306,650 | 11,515 | ||||||||
Allowance for credit losses | 739,544 | 729,341 | 689,120 | 10,203 | ||||||||
Total loans held-in-portfolio, net | 34,379,194 | 34,335,630 | 31,649,253 | 43,564 | ||||||||
Premises and equipment, net | 588,708 | 565,284 | 508,007 | 23,424 | ||||||||
Other real estate | 80,542 | 80,416 | 91,721 | 126 | ||||||||
Accrued income receivable | 266,908 | 263,433 | 239,815 | 3,475 | ||||||||
Mortgage servicing rights, at fair value | 114,964 | 118,109 | 127,475 | (3,145 | ) | |||||||
Other assets | 2,120,902 | 2,014,564 | 1,703,285 | 106,338 | ||||||||
Goodwill | 804,428 | 804,428 | 827,428 | - | ||||||||
Other intangible assets | 8,969 | 9,764 | 12,149 | (795 | ) | |||||||
Total assets | $ | 70,936,939 | $ | 70,758,155 | $ | 67,675,759 | $ | 178,784 | ||||
Liabilities and Stockholders' Equity: | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Non-interest bearing | $ | 15,492,050 | $ | 15,419,624 | $ | 15,940,850 | $ | 72,426 | ||||
Interest bearing | 48,316,734 | 48,198,619 | 45,013,038 | 118,115 | ||||||||
Total deposits | 63,808,784 | 63,618,243 | 60,953,888 | 190,541 | ||||||||
Assets sold under agreements to repurchase | 66,090 | 91,384 | 123,499 | (25,294 | ) | |||||||
Notes payable | 966,303 | 986,948 | 1,279,127 | (20,645 | ) | |||||||
Other liabilities | 918,448 | 914,627 | 848,520 | 3,821 | ||||||||
Total liabilities | 65,759,625 | 65,611,202 | 63,205,034 | 148,423 | ||||||||
Stockholders' equity: | ||||||||||||
Preferred stock | 22,143 | 22,143 | 22,143 | - | ||||||||
Common stock | 1,048 | 1,048 | 1,047 | - | ||||||||
Surplus | 4,847,466 | 4,843,399 | 4,792,619 | 4,067 | ||||||||
Retained earnings | 4,253,030 | 4,194,851 | 3,982,140 | 58,179 | ||||||||
Treasury stock | (2,013,187 | ) | (2,018,957 | ) | (2,025,399 | ) | 5,770 | |||||
Accumulated other comprehensive loss, net of tax | (1,933,186 | ) | (1,895,531 | ) | (2,301,825 | ) | (37,655 | ) | ||||
Total stockholders' equity | 5,177,314 | 5,146,953 | 4,470,725 | 30,361 | ||||||||
Total liabilities and stockholders' equity | $ | 70,936,939 | $ | 70,758,155 | $ | 67,675,759 | $ | 178,784 | ||||
Popular, Inc. | ||||||||||||||||||||||||||||||
Financial Supplement to First Quarter 2024 Earnings Release | ||||||||||||||||||||||||||||||
Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) | ||||||||||||||||||||||||||||||
For the quarters ended March 31, 2024 and December 31, 2023 | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
Variance | ||||||||||||||||||||||||||||||
Average Volume | Average Yields / Costs | Interest | Attributable to | |||||||||||||||||||||||||||
31-Mar-24 | 31-Dec-23 | Variance | 31-Mar-24 | 31-Dec-23 | Variance | 31-Mar-24 | 31-Dec-23 | Variance | Rate | Volume | ||||||||||||||||||||
(In millions) | (In thousands) | |||||||||||||||||||||||||||||
$ | 6,484 | $ | 7,307 | $ | (823 | ) | 5.49 | % | 5.47 | % | 0.02 | % | Money market investments | $ | 88,516 | $ | 100,840 | $ | (12,324 | ) | $ | (1,068 | ) | $ | (11,256 | ) | ||||
28,308 | 27,099 | 1,209 | 2.71 | 2.28 | 0.43 | Investment securities [1] | 191,103 | 155,118 | 35,985 | 28,398 | 7,587 | |||||||||||||||||||
33 | 31 | 2 | 3.75 | 3.72 | 0.03 | Trading securities | 311 | 293 | 18 | (2 | ) | 20 | ||||||||||||||||||
Total money market, | ||||||||||||||||||||||||||||||
investment and trading | ||||||||||||||||||||||||||||||
34,825 | 34,437 | 388 | 3.23 | 2.96 | 0.27 | securities | 279,930 | 256,251 | 23,679 | 27,328 | (3,649 | ) | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||
17,613 | 17,251 | 362 | 6.84 | 6.71 | 0.13 | Commercial | 299,504 | 291,791 | 7,713 | 1,549 | 6,164 | |||||||||||||||||||
992 | 927 | 65 | 8.96 | 9.04 | (0.08 | ) | Construction | 22,100 | 21,131 | 969 | (486 | ) | 1,455 | |||||||||||||||||
1,742 | 1,707 | 35 | 6.74 | 6.60 | 0.14 | Leasing | 29,353 | 28,174 | 1,179 | 593 | 586 | |||||||||||||||||||
7,723 | 7,626 | 97 | 5.62 | 5.83 | (0.21 | ) | Mortgage | 108,543 | 111,215 | (2,672 | ) | (4,081 | ) | 1,409 | ||||||||||||||||
3,227 | 3,215 | 12 | 13.90 | 13.43 | 0.47 | Consumer | 111,490 | 108,859 | 2,631 | 1,870 | 761 | |||||||||||||||||||
3,763 | 3,722 | 41 | 8.77 | 8.61 | 0.16 | Auto | 82,054 | 80,731 | 1,323 | 433 | 890 | |||||||||||||||||||
35,060 | 34,448 | 612 | 7.48 | 7.41 | 0.07 | Total loans | 653,044 | 641,901 | 11,143 | (122 | ) | 11,265 | ||||||||||||||||||
$ | 69,885 | $ | 68,885 | $ | 1,000 | 5.36 | % | 5.18 | % | 0.18 | % | Total earning assets | $ | 932,974 | $ | 898,152 | $ | 34,822 | $ | 27,206 | $ | 7,616 | ||||||||
Interest bearing deposits: | ||||||||||||||||||||||||||||||
$ | 25,703 | $ | 25,027 | $ | 676 | 3.63 | % | 3.60 | % | 0.03 | % | NOW and money market [2] | $ | 232,129 | $ | 227,079 | $ | 5,050 | $ | 3,500 | $ | 1,550 | ||||||||
14,700 | 14,934 | (234 | ) | 0.93 | 0.85 | 0.08 | Savings | 34,171 | 32,073 | 2,098 | 1,819 | 279 | ||||||||||||||||||
8,547 | 8,288 | 259 | 2.97 | 2.87 | 0.10 | Time deposits | 63,196 | 60,048 | 3,148 | 1,148 | 2,000 | |||||||||||||||||||
48,950 | 48,249 | 701 | 2.71 | 2.62 | 0.09 | Total interest bearing deposits | 329,496 | 319,200 | 10,296 | 6,467 | 3,829 | |||||||||||||||||||
15,083 | 15,017 | 66 | Non-interest bearing demand deposits | |||||||||||||||||||||||||||
64,033 | 63,266 | 767 | 2.07 | 2.00 | 0.07 | Total deposits | 329,496 | 319,200 | 10,296 | 6,467 | 3,829 | |||||||||||||||||||
84 | 94 | (10 | ) | 5.70 | 5.64 | 0.06 | Short-term borrowings | 1,192 | 1,342 | (150 | ) | (2 | ) | (148 | ) | |||||||||||||||
Other medium and | ||||||||||||||||||||||||||||||
998 | 1,018 | (20 | ) | 5.13 | 5.04 | 0.09 | long-term debt | 12,709 | 12,770 | (61 | ) | 21 | (82 | ) | ||||||||||||||||
Total interest bearing | ||||||||||||||||||||||||||||||
50,032 | 49,361 | 671 | 2.76 | 2.68 | 0.08 | liabilities (excluding demand deposits) | 343,397 | 333,312 | 10,085 | 6,486 | 3,599 | |||||||||||||||||||
4,770 | 4,507 | 263 | Other sources of funds | |||||||||||||||||||||||||||
$ | 69,885 | $ | 68,885 | $ | 1,000 | 1.98 | % | 1.92 | % | 0.06 | % | Total source of funds | 343,397 | 333,312 | 10,085 | 6,486 | 3,599 | |||||||||||||
Net interest margin/ | ||||||||||||||||||||||||||||||
3.38 | % | 3.26 | % | 0.12 | % | income on a taxable equivalent basis (Non-GAAP) | 589,577 | 564,840 | 24,737 | $ | 20,720 | $ | 4,017 | |||||||||||||||||
2.60 | % | 2.50 | % | 0.10 | % | Net interest spread | ||||||||||||||||||||||||
Taxable equivalent adjustment | 38,833 | 30,660 | 8,173 | |||||||||||||||||||||||||||
Net interest margin/ income | ||||||||||||||||||||||||||||||
3.16 | % | 3.08 | % | 0.08 | % | non-taxable equivalent basis (GAAP) | $ | 550,744 | $ | 534,180 | $ | 16,564 | ||||||||||||||||||
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 First Quarter 2024 Earnings Release | ||||||||||||||||||||||||||||||
Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) | ||||||||||||||||||||||||||||||
For the quarters ended March 31, 2024 and March 31, 2023 | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
Variance | ||||||||||||||||||||||||||||||
Average Volume | Average Yields / Costs | Interest | Attributable to | |||||||||||||||||||||||||||
31-Mar-24 | 31-Mar-23 | Variance | 31-Mar-24 | 31-Mar-23 | Variance | 31-Mar-24 | 31-Mar-23 | Variance | Rate | Volume | ||||||||||||||||||||
(In millions) | (In thousands) | |||||||||||||||||||||||||||||
$ | 6,484 | $ | 5,736 | $ | 748 | 5.49 | % | 4.65 | % | 0.84 | % | Money market investments | $ | 88,516 | $ | 65,724 | $ | 22,792 | $ | 13,566 | $ | 9,226 | ||||||||
28,308 | 28,862 | (554 | ) | 2.71 | 2.22 | 0.49 | Investment securities [1] | 191,103 | 158,914 | 32,189 | 35,317 | (3,128 | ) | |||||||||||||||||
33 | 31 | 2 | 3.75 | 4.47 | (0.72 | ) | Trading securities | 311 | 338 | (27 | ) | (55 | ) | 28 | ||||||||||||||||
Total money market, | ||||||||||||||||||||||||||||||
investment and trading | ||||||||||||||||||||||||||||||
34,825 | 34,629 | 196 | 3.23 | 2.63 | 0.60 | securities | 279,930 | 224,976 | 54,954 | 48,828 | 6,126 | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||
17,613 | 15,761 | 1,852 | 6.84 | 6.32 | 0.52 | Commercial | 299,504 | 245,469 | 54,035 | 23,691 | 30,344 | |||||||||||||||||||
992 | 732 | 260 | 8.96 | 8.40 | 0.56 | Construction | 22,100 | 15,155 | 6,945 | 1,215 | 5,730 | |||||||||||||||||||
1,742 | 1,588 | 154 | 6.74 | 6.12 | 0.62 | Leasing | 29,353 | 24,282 | 5,071 | 2,595 | 2,476 | |||||||||||||||||||
7,723 | 7,388 | 335 | 5.62 | 5.46 | 0.16 | Mortgage | 108,543 | 100,773 | 7,770 | 3,113 | 4,657 | |||||||||||||||||||
3,227 | 3,020 | 207 | 13.90 | 12.85 | 1.05 | Consumer | 111,490 | 95,715 | 15,775 | 8,441 | 7,334 | |||||||||||||||||||
3,763 | 3,559 | 204 | 8.77 | 8.14 | 0.63 | Auto | 82,054 | 71,407 | 10,647 | 6,421 | 4,226 | |||||||||||||||||||
35,060 | 32,048 | 3,012 | 7.48 | 6.97 | 0.51 | Total loans | 653,044 | 552,801 | 100,243 | 45,476 | 54,767 | |||||||||||||||||||
$ | 69,885 | $ | 66,677 | $ | 3,208 | 5.36 | % | 4.72 | % | 0.64 | % | Total earning assets | $ | 932,974 | $ | 777,777 | $ | 155,197 | $ | 94,304 | $ | 60,893 | ||||||||
Interest bearing deposits: | ||||||||||||||||||||||||||||||
$ | 25,703 | $ | 23,313 | $ | 2,390 | 3.63 | % | 2.52 | % | 1.11 | % | NOW and money market [2] | $ | 232,129 | $ | 144,970 | $ | 87,159 | $ | 70,094 | $ | 17,065 | ||||||||
14,700 | 15,029 | (329 | ) | 0.93 | 0.47 | 0.46 | Savings | 34,171 | 17,443 | 16,728 | 16,240 | 488 | ||||||||||||||||||
8,547 | 7,099 | 1,448 | 2.97 | 1.76 | 1.21 | Time deposits | 63,196 | 30,802 | 32,394 | 21,831 | 10,563 | |||||||||||||||||||
48,950 | 45,441 | 3,509 | 2.71 | 1.72 | 0.99 | Total interest bearing deposits | 329,496 | 193,215 | 136,281 | 108,165 | 28,116 | |||||||||||||||||||
15,083 | 15,704 | (621 | ) | Non-interest bearing demand deposits | ||||||||||||||||||||||||||
64,033 | 61,145 | 2,888 | 2.07 | 1.28 | 0.78 | Total deposits | 329,496 | 193,215 | 136,281 | 108,165 | 28,116 | |||||||||||||||||||
84 | 247 | (163 | ) | 5.70 | 4.74 | 0.96 | Short-term borrowings | 1,192 | 2,885 | (1,693 | ) | 309 | (2,002 | ) | ||||||||||||||||
Other medium and | ||||||||||||||||||||||||||||||
998 | 947 | 51 | 5.13 | 4.78 | 0.35 | long-term debt | 12,709 | 11,266 | 1,443 | 399 | 1,044 | |||||||||||||||||||
Total interest bearing | ||||||||||||||||||||||||||||||
50,032 | 46,635 | 3,397 | 2.76 | 1.80 | 0.96 | liabilities (excluding demand deposits) | 343,397 | 207,366 | 136,031 | 108,873 | 27,158 | |||||||||||||||||||
4,770 | 4,338 | 432 | Other sources of funds | |||||||||||||||||||||||||||
$ | 69,885 | $ | 66,677 | $ | 3,208 | 1.98 | % | 1.26 | % | 0.72 | % | Total source of funds | 343,397 | 207,366 | 136,031 | 108,873 | 27,158 | |||||||||||||
Net interest margin/ | ||||||||||||||||||||||||||||||
3.38 | % | 3.46 | % | (0.08 | )% | income on a taxable equivalent basis (Non-GAAP) | 589,577 | 570,411 | 19,166 | $ | (14,569 | ) | $ | 33,735 | ||||||||||||||||
2.60 | % | 2.92 | % | (0.32 | )% | Net interest spread | ||||||||||||||||||||||||
Taxable equivalent adjustment | 38,833 | 38,755 | 78 | |||||||||||||||||||||||||||
Net interest margin/ income | ||||||||||||||||||||||||||||||
3.16 | % | 3.22 | % | (0.06 | )% | non-taxable equivalent basis (GAAP) | $ | 550,744 | $ | 531,656 | $ | 19,088 | ||||||||||||||||||
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 First Quarter 2024 Earnings Release |
Table F - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE |
[THIS PAGE INTENTIONALLY LEFT BLANK] |
Popular, Inc. | |||||||||||||||
Financial Supplement to First Quarter 2024 Earnings Release | |||||||||||||||
Table G - Mortgage Banking Activities and Other Service Fees | |||||||||||||||
(Unaudited) | |||||||||||||||
Mortgage Banking Activities | |||||||||||||||
Quarters ended | Variance | ||||||||||||||
(In thousands) | 31-Mar-24 | 31-Dec-23 | 31-Mar-23 | Q1 2024 vs.Q4 2023 | Q1 2024 vs.Q1 2023 | ||||||||||
Mortgage servicing fees, net of fair value adjustments: | |||||||||||||||
Mortgage servicing fees | $ | 7,751 | $ | 7,898 | $ | 8,689 | $ | (147 | ) | $ | (938 | ) | |||
Mortgage servicing rights fair value adjustments | (3,439 | ) | (1,204 | ) | (1,376 | ) | (2,235 | ) | (2,063 | ) | |||||
Total mortgage servicing fees, net of fair value adjustments | 4,312 | 6,694 | 7,313 | (2,382 | ) | (3,001 | ) | ||||||||
Net gain on sale of loans, including valuation on loans held-for-sale | 74 | 45 | 263 | 29 | (189 | ) | |||||||||
Trading account profit (loss): | |||||||||||||||
Unrealized gains (loss) on outstanding derivative positions | 101 | (298 | ) | (131 | ) | 399 | 232 | ||||||||
Realized gains (losses) on closed derivative positions | 3 | (47 | ) | 56 | 50 | (53 | ) | ||||||||
Total trading account profit (loss) | 104 | (345 | ) | (75 | ) | 449 | 179 | ||||||||
Losses on repurchased loans, including interest advances | (130 | ) | (6 | ) | (101 | ) | (124 | ) | (29 | ) | |||||
Total mortgage banking activities | $ | 4,360 | $ | 6,388 | $ | 7,400 | $ | (2,028 | ) | $ | (3,040 | ) | |||
Other Service Fees | ||||||||||||
Quarters ended | Variance | |||||||||||
(In thousands) | 31-Mar-24 | 31-Dec-23 | 31-Mar-23 | Q1 2024 vs.Q4 2023 | Q1 2024 vs.Q1 2023 | |||||||
Other service fees: | ||||||||||||
Debit card fees | $ | 14,248 | $ | 13,944 | $ | 13,166 | $ | 304 | $ | 1,082 | ||
Insurance fees | 14,689 | 16,739 | 13,873 | (2,050 | ) | 816 | ||||||
Credit card fees | 40,853 | 41,439 | 40,498 | (586 | ) | 355 | ||||||
Sale and administration of investment products | 7,427 | 6,862 | 6,558 | 565 | 869 | |||||||
Trust fees | 6,707 | 6,716 | 5,775 | (9 | ) | 932 | ||||||
Other fees | 10,348 | 10,992 | 10,206 | (644 | ) | 142 | ||||||
Total other service fees | $ | 94,272 | $ | 96,692 | $ | 90,076 | $ | (2,420 | ) | $ | 4,196 | |
Popular, Inc. | ||||||||||||||||
Financial Supplement to First Quarter 2024 Earnings Release | ||||||||||||||||
Table H - Loans and Deposits | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Loans - Ending Balances | ||||||||||||||||
Variance | ||||||||||||||||
(In thousands) | 31-Mar-24 | 31-Dec-23 | 31-Mar-23 | Q1 2024 vs.Q4 2023 | % of Change | Q1 2024 vs.Q1 2023 | % of Change | |||||||||
Loans held-in-portfolio: | ||||||||||||||||
Commercial | ||||||||||||||||
Commercial multi-family | $ | 2,384,635 | $ | 2,415,620 | $ | 2,336,357 | (30,985 | ) | (1.28 | %) | 48,278 | 2.07 | % | |||
Commercial real estate non-owner occupied | 5,057,059 | 5,087,421 | 4,650,675 | (30,362 | ) | (0.60 | %) | 406,384 | 8.74 | % | ||||||
Commercial real estate owner occupied | 3,117,844 | 3,080,635 | 3,018,587 | 37,209 | 1.21 | % | 99,257 | 3.29 | % | |||||||
Commercial and industrial | 7,025,483 | 7,126,121 | 5,999,642 | (100,638 | ) | (1.41 | %) | 1,025,841 | 17.10 | % | ||||||
Total Commercial | 17,585,021 | 17,709,797 | 16,005,261 | (124,776 | ) | (0.70 | %) | 1,579,760 | 9.87 | % | ||||||
Construction | 1,009,303 | 959,280 | 698,996 | 50,023 | 5.21 | % | 310,307 | 44.39 | % | |||||||
Leasing | 1,765,413 | 1,731,809 | 1,614,344 | 33,604 | 1.94 | % | 151,069 | 9.36 | % | |||||||
Mortgage | 7,783,662 | 7,695,917 | 7,405,907 | 87,745 | 1.14 | % | 377,755 | 5.10 | % | |||||||
Consumer | ||||||||||||||||
Credit cards | 1,142,153 | 1,135,747 | 1,046,196 | 6,406 | 0.56 | % | 95,957 | 9.17 | % | |||||||
Home equity lines of credit | 66,717 | 65,953 | 69,887 | 764 | 1.16 | % | (3,170 | ) | (4.54 | %) | ||||||
Personal | 1,897,010 | 1,945,247 | 1,841,069 | (48,237 | ) | (2.48 | %) | 55,941 | 3.04 | % | ||||||
Auto | 3,706,854 | 3,660,780 | 3,517,940 | 46,074 | 1.26 | % | 188,914 | 5.37 | % | |||||||
Other | 162,605 | 160,441 | 138,773 | 2,164 | 1.35 | % | 23,832 | 17.17 | % | |||||||
Total Consumer | 6,975,339 | 6,968,168 | 6,613,865 | 7,171 | 0.10 | % | 361,474 | 5.47 | % | |||||||
Total loans held-in-portfolio | $ | 35,118,738 | $ | 35,064,971 | $ | 32,338,373 | $ | 53,767 | 0.15 | % | $ | 2,780,365 | 8.60 | % | ||
Loans held-for-sale: | ||||||||||||||||
Mortgage | $ | 5,352 | $ | 4,301 | $ | 11,181 | $ | 1,051 | 24.44 | % | $ | (5,829 | ) | (52.13 | %) | |
Total loans held-for-sale | $ | 5,352 | $ | 4,301 | $ | 11,181 | $ | 1,051 | 24.44 | % | $ | (5,829 | ) | (52.13 | %) | |
Total loans | $ | 35,124,090 | $ | 35,069,272 | $ | 32,349,554 | $ | 54,818 | 0.16 | % | $ | 2,774,536 | 8.58 | % | ||
Deposits - Ending Balances | ||||||||||||||||
Variance | ||||||||||||||||
(In thousands) | 31-Mar-24 | 31-Dec-23 | 31-Mar-23 | Q1 2024 vs. Q4 2023 | % of Change | Q1 2024 vs.Q1 2023 | % of Change | |||||||||
Demand deposits [1] | $ | 26,473,367 | $ | 27,579,054 | $ | 26,191,672 | $ | (1,105,687 | ) | (4.01 | %) | $ | 281,695 | 1.08 | % | |
Savings, NOW and money market deposits (non-brokered) | 27,852,551 | 26,817,844 | 26,622,020 | 1,034,707 | 3.86 | % | 1,230,531 | 4.62 | % | |||||||
Savings, NOW and money market deposits (brokered) | 727,794 | 719,453 | 734,069 | 8,341 | 1.16 | % | (6,275 | ) | (0.85 | %) | ||||||
Time deposits (non-brokered) | 7,850,459 | 7,546,138 | 6,891,051 | 304,321 | 4.03 | % | 959,408 | 13.92 | % | |||||||
Time deposits (brokered CDs) | 904,613 | 955,754 | 515,076 | (51,141 | ) | (5.35 | %) | 389,537 | 75.63 | % | ||||||
Total deposits | $ | 63,808,784 | $ | 63,618,243 | $ | 60,953,888 | $ | 190,541 | 0.30 | % | $ | 2,854,896 | 4.68 | % | ||
[1] Includes interest and non-interest bearing demand deposits. | ||||||||||||||||
Popular, Inc. | |||||||||||||||||||||||||||||||||
Financial Supplement to First Quarter 2024 Earnings Release | |||||||||||||||||||||||||||||||||
Table I - Loan Delinquency -BPPR Operations | |||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||
31-Mar-24 | |||||||||||||||||||||||||||||||||
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 | $ | 19,384 | $ | 2,027 | $ | 106 | $ | 21,517 | $ | 282,134 | $ | 303,651 | $ | 106 | $ | - | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Non-owner occupied | 2,378 | 3,278 | 7,922 | 13,578 | 2,982,907 | 2,996,485 | 7,922 | - | |||||||||||||||||||||||||
Owner occupied | 6,628 | 432 | 26,124 | 33,184 | 1,392,908 | 1,426,092 | 26,124 | - | |||||||||||||||||||||||||
Commercial and industrial | 3,020 | 8,552 | 33,741 | 45,313 | 4,699,810 | 4,745,123 | 29,171 | 4,570 | |||||||||||||||||||||||||
Construction | - | - | - | - | 162,724 | 162,724 | - | - | |||||||||||||||||||||||||
Mortgage | 254,008 | 107,224 | 385,062 | 746,294 | 5,737,257 | 6,483,551 | 166,473 | 218,589 | |||||||||||||||||||||||||
Leasing | 19,936 | 4,752 | 7,267 | 31,955 | 1,733,458 | 1,765,413 | 7,267 | - | |||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Credit cards | 13,034 | 9,528 | 23,858 | 46,420 | 1,095,716 | 1,142,136 | - | 23,858 | |||||||||||||||||||||||||
Home equity lines of credit | - | 226 | 7 | 233 | 2,336 | 2,569 | - | 7 | |||||||||||||||||||||||||
Personal | 19,822 | 12,169 | 19,092 | 51,083 | 1,695,410 | 1,746,493 | 19,092 | - | |||||||||||||||||||||||||
Auto | 82,957 | 18,420 | 41,807 | 143,184 | 3,563,670 | 3,706,854 | 41,807 | - | |||||||||||||||||||||||||
Other | 1,022 | 150 | 939 | 2,111 | 151,567 | 153,678 | 632 | 307 | |||||||||||||||||||||||||
Total | $ | 422,189 | $ | 166,758 | $ | 545,925 | $ | 1,134,872 | $ | 23,499,897 | $ | 24,634,769 | $ | 298,594 | $ | 247,331 | |||||||||||||||||
31-Dec-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 | $ | 524 | $ | - | $ | 1,991 | $ | 2,515 | $ | 289,427 | $ | 291,942 | $ | 1,991 | $ | - | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Non-owner occupied | 5,510 | 77 | 8,745 | 14,332 | 2,990,922 | 3,005,254 | 8,745 | - | |||||||||||||||||||||||||
Owner occupied | 2,726 | 249 | 29,430 | 32,405 | 1,365,978 | 1,398,383 | 29,430 | - | |||||||||||||||||||||||||
Commercial and industrial | 6,998 | 3,352 | 36,210 | 46,560 | 4,749,666 | 4,796,226 | 32,826 | 3,384 | |||||||||||||||||||||||||
Construction | - | - | 6,378 | 6,378 | 163,479 | 169,857 | 6,378 | - | |||||||||||||||||||||||||
Mortgage | 260,897 | 114,282 | 416,528 | 791,707 | 5,600,117 | 6,391,824 | 175,106 | 241,422 | |||||||||||||||||||||||||
Leasing | 20,140 | 6,719 | 8,632 | 35,491 | 1,696,318 | 1,731,809 | 8,632 | - | |||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Credit cards | 13,243 | 9,912 | 23,281 | 46,436 | 1,089,292 | 1,135,728 | - | 23,281 | |||||||||||||||||||||||||
Home equity lines of credit | 230 | - | 26 | 256 | 2,392 | 2,648 | - | 26 | |||||||||||||||||||||||||
Personal | 19,065 | 14,611 | 19,031 | 52,707 | 1,723,603 | 1,776,310 | 19,031 | - | |||||||||||||||||||||||||
Auto | 100,061 | 27,443 | 45,615 | 173,119 | 3,487,661 | 3,660,780 | 45,615 | - | |||||||||||||||||||||||||
Other | 1,641 | 204 | 1,213 | 3,058 | 147,104 | 150,162 | 964 | 249 | |||||||||||||||||||||||||
Total | $ | 431,035 | $ | 176,849 | $ | 597,080 | $ | 1,204,964 | $ | 23,305,959 | $ | 24,510,923 | $ | 328,718 | $ | 268,362 | |||||||||||||||||
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 | $ | 18,860 | $ | 2,027 | $ | (1,885 | ) | $ | 19,002 | $ | (7,293 | ) | $ | 11,709 | $ | (1,885 | ) | $ | - | ||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Non-owner occupied | (3,132 | ) | 3,201 | (823 | ) | (754 | ) | (8,015 | ) | (8,769 | ) | (823 | ) | - | |||||||||||||||||||
Owner occupied | 3,902 | 183 | (3,306 | ) | 779 | 26,930 | 27,709 | (3,306 | ) | - | |||||||||||||||||||||||
Commercial and industrial | (3,978 | ) | 5,200 | (2,469 | ) | (1,247 | ) | (49,856 | ) | (51,103 | ) | (3,655 | ) | 1,186 | |||||||||||||||||||
Construction | - | - | (6,378 | ) | (6,378 | ) | (755 | ) | (7,133 | ) | (6,378 | ) | - | ||||||||||||||||||||
Mortgage | (6,889 | ) | (7,058 | ) | (31,466 | ) | (45,413 | ) | 137,140 | 91,727 | (8,633 | ) | (22,833 | ) | |||||||||||||||||||
Leasing | (204 | ) | (1,967 | ) | (1,365 | ) | (3,536 | ) | 37,140 | 33,604 | (1,365 | ) | - | ||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Credit cards | (209 | ) | (384 | ) | 577 | (16 | ) | 6,424 | 6,408 | - | 577 | ||||||||||||||||||||||
Home equity lines of credit | (230 | ) | 226 | (19 | ) | (23 | ) | (56 | ) | (79 | ) | - | (19 | ) | |||||||||||||||||||
Personal | 757 | (2,442 | ) | 61 | (1,624 | ) | (28,193 | ) | (29,817 | ) | 61 | - | |||||||||||||||||||||
Auto | (17,104 | ) | (9,023 | ) | (3,808 | ) | (29,935 | ) | 76,009 | 46,074 | (3,808 | ) | - | ||||||||||||||||||||
Other | (619 | ) | (54 | ) | (274 | ) | (947 | ) | 4,463 | 3,516 | (332 | ) | 58 | ||||||||||||||||||||
Total | $ | (8,846 | ) | $ | (10,091 | ) | $ | (51,155 | ) | $ | (70,092 | ) | $ | 193,938 | $ | 123,846 | $ | (30,124 | ) | $ | (21,031 | ) | |||||||||||
Popular, Inc. | ||||||||||||||||||||||||||||||||
Financial Supplement to First Quarter 2024 Earnings Release | ||||||||||||||||||||||||||||||||
Table J - Loan Delinquency - Popular U.S. Operations | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
31-Mar-24 | ||||||||||||||||||||||||||||||||
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 | $ | 3,434 | $ | - | $ | 8,700 | $ | 12,134 | $ | 2,068,850 | $ | 2,080,984 | $ | 8,700 | $ | - | ||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Non-owner occupied | 740 | 1,364 | 2,407 | 4,511 | 2,056,063 | 2,060,574 | 2,407 | - | ||||||||||||||||||||||||
Owner occupied | 6,107 | 19,009 | 3,877 | 28,993 | 1,662,759 | 1,691,752 | 3,877 | - | ||||||||||||||||||||||||
Commercial and industrial | 9,961 | 628 | 6,634 | 17,223 | 2,263,137 | 2,280,360 | 6,423 | 211 | ||||||||||||||||||||||||
Construction | 8,825 | - | - | 8,825 | 837,754 | 846,579 | - | - | ||||||||||||||||||||||||
Mortgage | 25,558 | 533 | 28,071 | 54,162 | 1,245,949 | 1,300,111 | 28,071 | - | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||
Credit cards | - | - | - | - | 17 | 17 | - | - | ||||||||||||||||||||||||
Home equity lines of credit | 846 | 390 | 3,986 | 5,222 | 58,926 | 64,148 | 3,986 | - | ||||||||||||||||||||||||
Personal | 2,142 | 1,695 | 2,068 | 5,905 | 144,612 | 150,517 | 2,068 | - | ||||||||||||||||||||||||
Other | - | - | 1 | 1 | 8,926 | 8,927 | 1 | - | ||||||||||||||||||||||||
Total | $ | 57,613 | $ | 23,619 | $ | 55,744 | $ | 136,976 | $ | 10,346,993 | $ | 10,483,969 | $ | 55,533 | $ | 211 | ||||||||||||||||
31-Dec-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 | $ | 9,141 | $ | 2,001 | $ | - | $ | 11,142 | $ | 2,112,536 | $ | 2,123,678 | $ | - | $ | - | ||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Non-owner occupied | 566 | 1,036 | 1,117 | 2,719 | 2,079,448 | 2,082,167 | 1,117 | - | ||||||||||||||||||||||||
Owner occupied | 30,560 | - | 6,274 | 36,834 | 1,645,418 | 1,682,252 | 6,274 | - | ||||||||||||||||||||||||
Commercial and industrial | 7,815 | 697 | 3,881 | 12,393 | 2,317,502 | 2,329,895 | 3,772 | 109 | ||||||||||||||||||||||||
Construction | - | - | - | - | 789,423 | 789,423 | - | - | ||||||||||||||||||||||||
Mortgage | 48,818 | 7,821 | 11,191 | 67,830 | 1,236,263 | 1,304,093 | 11,191 | - | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||
Credit cards | - | - | - | - | 19 | 19 | - | - | ||||||||||||||||||||||||
Home equity lines of credit | 1,472 | 4 | 3,733 | 5,209 | 58,096 | 63,305 | 3,733 | - | ||||||||||||||||||||||||
Personal | 2,222 | 1,948 | 2,805 | 6,975 | 161,962 | 168,937 | 2,805 | - | ||||||||||||||||||||||||
Other | 4 | - | 1 | 5 | 10,274 | 10,279 | 1 | - | ||||||||||||||||||||||||
Total | $ | 100,598 | $ | 13,507 | $ | 29,002 | $ | 143,107 | $ | 10,410,941 | $ | 10,554,048 | $ | 28,893 | $ | 109 | ||||||||||||||||
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 | $ | (5,707 | ) | $ | (2,001 | ) | $ | 8,700 | $ | 992 | $ | (43,686 | ) | $ | (42,694 | ) | $ | 8,700 | $ | - | ||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Non-owner occupied | 174 | 328 | 1,290 | 1,792 | (23,385 | ) | (21,593 | ) | 1,290 | - | ||||||||||||||||||||||
Owner occupied | (24,453 | ) | 19,009 | (2,397 | ) | (7,841 | ) | 17,341 | 9,500 | (2,397 | ) | - | ||||||||||||||||||||
Commercial and industrial | 2,146 | (69 | ) | 2,753 | 4,830 | (54,365 | ) | (49,535 | ) | 2,651 | 102 | |||||||||||||||||||||
Construction | 8,825 | - | - | 8,825 | 48,331 | 57,156 | - | - | ||||||||||||||||||||||||
Mortgage | (23,260 | ) | (7,288 | ) | 16,880 | (13,668 | ) | 9,686 | (3,982 | ) | 16,880 | - | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||
Credit cards | - | - | - | - | (2 | ) | (2 | ) | - | - | ||||||||||||||||||||||
Home equity lines of credit | (626 | ) | 386 | 253 | 13 | 830 | 843 | 253 | - | |||||||||||||||||||||||
Personal | (80 | ) | (253 | ) | (737 | ) | (1,070 | ) | (17,350 | ) | (18,420 | ) | (737 | ) | - | |||||||||||||||||
Other | (4 | ) | - | - | (4 | ) | (1,348 | ) | (1,352 | ) | - | - | ||||||||||||||||||||
Total | $ | (42,985 | ) | $ | 10,112 | $ | 26,742 | $ | (6,131 | ) | $ | (63,948 | ) | $ | (70,079 | ) | $ | 26,640 | $ | 102 | ||||||||||||
Popular, Inc. | ||||||||||||||||||||||||||||||||
Financial Supplement to First Quarter 2024 Earnings Release | ||||||||||||||||||||||||||||||||
Table K - Loan Delinquency - Consolidated | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
31-Mar-24 | ||||||||||||||||||||||||||||||||
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 | $ | 22,818 | $ | 2,027 | $ | 8,806 | $ | 33,651 | $ | 2,350,984 | $ | 2,384,635 | $ | 8,806 | $ | - | ||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Non-owner occupied | 3,118 | 4,642 | 10,329 | 18,089 | 5,038,970 | 5,057,059 | 10,329 | - | ||||||||||||||||||||||||
Owner occupied | 12,735 | 19,441 | 30,001 | 62,177 | 3,055,667 | 3,117,844 | 30,001 | - | ||||||||||||||||||||||||
Commercial and industrial | 12,981 | 9,180 | 40,375 | 62,536 | 6,962,947 | 7,025,483 | 35,594 | 4,781 | ||||||||||||||||||||||||
Construction | 8,825 | - | - | 8,825 | 1,000,478 | 1,009,303 | - | - | ||||||||||||||||||||||||
Mortgage | 279,566 | 107,757 | 413,133 | 800,456 | 6,983,206 | 7,783,662 | 194,544 | 218,589 | ||||||||||||||||||||||||
Leasing | 19,936 | 4,752 | 7,267 | 31,955 | 1,733,458 | 1,765,413 | 7,267 | - | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||
Credit cards | 13,034 | 9,528 | 23,858 | 46,420 | 1,095,733 | 1,142,153 | - | 23,858 | ||||||||||||||||||||||||
Home equity lines of credit | 846 | 616 | 3,993 | 5,455 | 61,262 | 66,717 | 3,986 | 7 | ||||||||||||||||||||||||
Personal | 21,964 | 13,864 | 21,160 | 56,988 | 1,840,022 | 1,897,010 | 21,160 | - | ||||||||||||||||||||||||
Auto | 82,957 | 18,420 | 41,807 | 143,184 | 3,563,670 | 3,706,854 | 41,807 | - | ||||||||||||||||||||||||
Other | 1,022 | 150 | 940 | 2,112 | 160,493 | 162,605 | 633 | 307 | ||||||||||||||||||||||||
Total | $ | 479,802 | $ | 190,377 | $ | 601,669 | $ | 1,271,848 | $ | 33,846,890 | $ | 35,118,738 | $ | 354,127 | $ | 247,542 | ||||||||||||||||
31-Dec-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 | $ | 9,665 | $ | 2,001 | $ | 1,991 | $ | 13,657 | $ | 2,401,963 | $ | 2,415,620 | $ | 1,991 | $ | - | ||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Non-owner occupied | 6,076 | 1,113 | 9,862 | 17,051 | 5,070,370 | 5,087,421 | 9,862 | - | ||||||||||||||||||||||||
Owner occupied | 33,286 | 249 | 35,704 | 69,239 | 3,011,396 | 3,080,635 | 35,704 | - | ||||||||||||||||||||||||
Commercial and industrial | 14,813 | 4,049 | 40,091 | 58,953 | 7,067,168 | 7,126,121 | 36,598 | 3,493 | ||||||||||||||||||||||||
Construction | - | - | 6,378 | 6,378 | 952,902 | 959,280 | 6,378 | - | ||||||||||||||||||||||||
Mortgage | 309,715 | 122,103 | 427,719 | 859,537 | 6,836,380 | 7,695,917 | 186,297 | 241,422 | ||||||||||||||||||||||||
Leasing | 20,140 | 6,719 | 8,632 | 35,491 | 1,696,318 | 1,731,809 | 8,632 | - | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||
Credit cards | 13,243 | 9,912 | 23,281 | 46,436 | 1,089,311 | 1,135,747 | - | 23,281 | ||||||||||||||||||||||||
Home equity lines of credit | 1,702 | 4 | 3,759 | 5,465 | 60,488 | 65,953 | 3,733 | 26 | ||||||||||||||||||||||||
Personal | 21,287 | 16,559 | 21,836 | 59,682 | 1,885,565 | 1,945,247 | 21,836 | - | ||||||||||||||||||||||||
Auto | 100,061 | 27,443 | 45,615 | 173,119 | 3,487,661 | 3,660,780 | 45,615 | - | ||||||||||||||||||||||||
Other | 1,645 | 204 | 1,214 | 3,063 | 157,378 | 160,441 | 965 | 249 | ||||||||||||||||||||||||
Total | $ | 531,633 | $ | 190,356 | $ | 626,082 | $ | 1,348,071 | $ | 33,716,900 | $ | 35,064,971 | $ | 357,611 | $ | 268,471 | ||||||||||||||||
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 | $ | 13,153 | $ | 26 | $ | 6,815 | $ | 19,994 | $ | (50,979 | ) | $ | (30,985 | ) | $ | 6,815 | $ | - | ||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Non-owner occupied | (2,958 | ) | 3,529 | 467 | 1,038 | (31,400 | ) | (30,362 | ) | 467 | - | |||||||||||||||||||||
Owner occupied | (20,551 | ) | 19,192 | (5,703 | ) | (7,062 | ) | 44,271 | 37,209 | (5,703 | ) | - | ||||||||||||||||||||
Commercial and industrial | (1,832 | ) | 5,131 | 284 | 3,583 | (104,221 | ) | (100,638 | ) | (1,004 | ) | 1,288 | ||||||||||||||||||||
Construction | 8,825 | - | (6,378 | ) | 2,447 | 47,576 | 50,023 | (6,378 | ) | - | ||||||||||||||||||||||
Mortgage | (30,149 | ) | (14,346 | ) | (14,586 | ) | (59,081 | ) | 146,826 | 87,745 | 8,247 | (22,833 | ) | |||||||||||||||||||
Leasing | (204 | ) | (1,967 | ) | (1,365 | ) | (3,536 | ) | 37,140 | 33,604 | (1,365 | ) | - | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||
Credit cards | (209 | ) | (384 | ) | 577 | (16 | ) | 6,422 | 6,406 | - | 577 | |||||||||||||||||||||
Home equity lines of credit | (856 | ) | 612 | 234 | (10 | ) | 774 | 764 | 253 | (19 | ) | |||||||||||||||||||||
Personal | 677 | (2,695 | ) | (676 | ) | (2,694 | ) | (45,543 | ) | (48,237 | ) | (676 | ) | - | ||||||||||||||||||
Auto | (17,104 | ) | (9,023 | ) | (3,808 | ) | (29,935 | ) | 76,009 | 46,074 | (3,808 | ) | - | |||||||||||||||||||
Other | (623 | ) | (54 | ) | (274 | ) | (951 | ) | 3,115 | 2,164 | (332 | ) | 58 | |||||||||||||||||||
Total | $ | (51,831 | ) | $ | 21 | $ | (24,413 | ) | $ | (76,223 | ) | $ | 129,990 | $ | 53,767 | $ | (3,484 | ) | $ | (20,929 | ) | |||||||||||
Popular, Inc. | |||||||||||||||||||||
Financial Supplement to First Quarter 2024 Earnings Release | |||||||||||||||||||||
Table L - Non-Performing Assets | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Variance | |||||||||||||||||||||
(In thousands) | 31-Mar-24 | As a % of loans HIP by category | 31-Dec-23 | As a % of loans HIP by category | 31-Mar-23 | As a % of loans HIP by category | Q1 2024 vs. Q4 2023 | Q1 2024 vs. Q1 2023 | |||||||||||||
Non-accrual loans: | |||||||||||||||||||||
Commercial | |||||||||||||||||||||
Commercial multi-family | $ | 8,806 | 0.4 | % | $ | 1,991 | 0.1 | % | $ | 606 | - | % | $ | 6,815 | $ | 8,200 | |||||
Commercial real estate non-owner occupied | 10,329 | 0.2 | 9,862 | 0.2 | 23,063 | 0.5 | 467 | (12,734 | ) | ||||||||||||
Commercial real estate owner occupied | 30,001 | 1.0 | 35,704 | 1.2 | 42,874 | 1.4 | (5,703 | ) | (12,873 | ) | |||||||||||
Commercial and industrial | 35,594 | 0.5 | 36,598 | 0.5 | 35,457 | 0.6 | (1,004 | ) | 137 | ||||||||||||
Total Commercial | 84,730 | 0.5 | 84,155 | 0.5 | 102,000 | 0.6 | 575 | (17,270 | ) | ||||||||||||
Construction | - | - | 6,378 | 0.7 | - | - | (6,378 | ) | - | ||||||||||||
Leasing | 7,267 | 0.4 | 8,632 | 0.5 | 6,103 | 0.4 | (1,365 | ) | 1,164 | ||||||||||||
Mortgage | 194,544 | 2.5 | 186,297 | 2.4 | 238,794 | 3.2 | 8,247 | (44,250 | ) | ||||||||||||
Consumer | |||||||||||||||||||||
Home equity lines of credit | 3,986 | 6.0 | 3,733 | 5.7 | 4,618 | 6.6 | 253 | (632 | ) | ||||||||||||
Personal | 21,160 | 1.1 | 21,836 | 1.1 | 19,917 | 1.1 | (676 | ) | 1,243 | ||||||||||||
Auto | 41,807 | 1.1 | 45,615 | 1.2 | 39,516 | 1.1 | (3,808 | ) | 2,291 | ||||||||||||
Other Consumer | 633 | 0.4 | 965 | 0.6 | 1,435 | 1.0 | (332 | ) | (802 | ) | |||||||||||
Total Consumer | 67,586 | 1.0 | 72,149 | 1.0 | 65,486 | 1.0 | (4,563 | ) | 2,100 | ||||||||||||
Total non-performing loans held-in-portfolio | 354,127 | 1.0 | % | 357,611 | 1.0 | % | 412,383 | 1.3 | % | (3,484 | ) | (58,256 | ) | ||||||||
Other real estate owned ("OREO") | 80,542 | 80,416 | 91,721 | 126 | (11,179 | ) | |||||||||||||||
Total non-performing assets [1] | $ | 434,669 | $ | 438,027 | $ | 504,104 | $ | (3,358 | ) | $ | (69,435 | ) | |||||||||
Accruing loans past due 90 days or more [2] | $ | 247,542 | $ | 268,471 | $ | 305,883 | $ | (20,929 | ) | $ | (58,341 | ) | |||||||||
Ratios: | |||||||||||||||||||||
Non-performing assets to total assets | 0.61 | % | 0.62 | % | 0.74 | % | |||||||||||||||
Non-performing loans held-in-portfolio to loans held-in-portfolio | 1.01 | 1.02 | 1.28 | ||||||||||||||||||
Allowance for credit losses to loans held-in-portfolio | 2.11 | 2.08 | 2.13 | ||||||||||||||||||
Allowance for credit losses to non-performing loans, excluding loans held-for-sale | 208.84 | 203.95 | 167.11 | ||||||||||||||||||
[1] There were no non-performing loans held-for-sale as of March 31, 2024, December 31, 2023 and March 31, 2023. | |||||||||||||||||||||
[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 $10 million at March 31, 2024, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (December 31, 2023 - $11 million; March 31, 2023 - $7 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 $93 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2024 (December 31, 2023 - $106 million; March 31, 2023 - $167 million). Furthermore, the Corporation has approximately $37 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 (December 31, 2023- $38 million; March 31, 2023 - $40 million). | |||||||||||||||||||||
Popular, Inc. | ||||||||||||||||||
Financial Supplement to First Quarter 2024 Earnings Release | ||||||||||||||||||
Table M - Activity in Non-Performing Loans | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Commercial loans held-in-portfolio: | ||||||||||||||||||
Quarter ended | Quarter ended | |||||||||||||||||
31-Mar-24 | 31-Dec-23 | |||||||||||||||||
(In thousands) | BPPR | Popular U.S. | Popular, Inc. | BPPR | Popular U.S. | Popular, Inc. | ||||||||||||
Beginning balance NPLs | $ | 72,992 | $ | 11,163 | $ | 84,155 | $ | 72,227 | $ | 8,594 | $ | 80,821 | ||||||
Plus: | ||||||||||||||||||
New non-performing loans | 4,343 | 15,039 | 19,382 | 22,009 | 3,859 | 25,868 | ||||||||||||
Advances on existing non-performing loans | - | 20 | 20 | - | 515 | 515 | ||||||||||||
Less: | ||||||||||||||||||
Non-performing loans transferred to OREO | - | - | - | (5,484 | ) | - | (5,484 | ) | ||||||||||
Non-performing loans charged-off | (7,999 | ) | (950 | ) | (8,949 | ) | (5,427 | ) | - | (5,427 | ) | |||||||
Loans returned to accrual status / loan collections | (6,013 | ) | (3,865 | ) | (9,878 | ) | (10,333 | ) | (1,805 | ) | (12,138 | ) | ||||||
Ending balance NPLs | $ | 63,323 | $ | 21,407 | $ | 84,730 | $ | 72,992 | $ | 11,163 | $ | 84,155 | ||||||
Construction loans held-in-portfolio: | ||||||||||||||||||
Quarter ended | Quarter ended | |||||||||||||||||
31-Mar-24 | 31-Dec-23 | |||||||||||||||||
(In thousands) | BPPR | Popular U.S. | Popular, Inc. | BPPR | Popular U.S. | Popular, Inc. | ||||||||||||
Beginning balance NPLs | $ | 6,378 | $ | - | $ | 6,378 | $ | 6,578 | $ | - | $ | 6,578 | ||||||
Less: | ||||||||||||||||||
Loans returned to accrual status / loan collections | (6,378 | ) | - | (6,378 | ) | (200 | ) | - | (200 | ) | ||||||||
Ending balance NPLs | $ | - | $ | - | $ | - | $ | 6,378 | $ | - | $ | 6,378 | ||||||
Mortgage loans held-in-portfolio: | ||||||||||||||||||
Quarter ended | Quarter ended | |||||||||||||||||
31-Mar-24 | 31-Dec-23 | |||||||||||||||||
(In thousands) | BPPR | Popular U.S. | Popular, Inc. | BPPR | Popular U.S. | Popular, Inc. | ||||||||||||
Beginning balance NPLs | $ | 175,106 | $ | 11,191 | $ | 186,297 | $ | 187,443 | $ | 11,980 | $ | 199,423 | ||||||
Plus: | ||||||||||||||||||
New non-performing loans | 29,160 | 20,334 | 49,494 | 30,406 | 4,179 | 34,585 | ||||||||||||
Advances on existing non-performing loans | - | 2 | 2 | - | 11 | 11 | ||||||||||||
Less: | ||||||||||||||||||
Non-performing loans transferred to OREO | (4,109 | ) | - | (4,109 | ) | (5,423 | ) | - | (5,423 | ) | ||||||||
Non-performing loans charged-off | (310 | ) | - | (310 | ) | 153 | - | 153 | ||||||||||
Loans returned to accrual status / loan collections | (33,374 | ) | (3,456 | ) | (36,830 | ) | (37,473 | ) | (4,979 | ) | (42,452 | ) | ||||||
Ending balance NPLs | $ | 166,473 | $ | 28,071 | $ | 194,544 | $ | 175,106 | $ | 11,191 | $ | 186,297 | ||||||
Total non-performing loans held-in-portfolio (excluding consumer): | ||||||||||||||||||
Quarter ended | Quarter ended | |||||||||||||||||
31-Mar-24 | 31-Dec-23 | |||||||||||||||||
(In thousands) | BPPR | Popular U.S. | Popular, Inc. | BPPR | Popular U.S. | Popular, Inc. | ||||||||||||
Beginning balance NPLs | $ | 254,476 | $ | 22,354 | $ | 276,830 | $ | 266,248 | $ | 20,574 | $ | 286,822 | ||||||
Plus: | ||||||||||||||||||
New non-performing loans | 33,503 | 35,373 | 68,876 | 52,415 | 8,038 | 60,453 | ||||||||||||
Advances on existing non-performing loans | - | 22 | 22 | - | 526 | 526 | ||||||||||||
Less: | ||||||||||||||||||
Non-performing loans transferred to OREO | (4,109 | ) | - | (4,109 | ) | (10,907 | ) | - | (10,907 | ) | ||||||||
Non-performing loans charged-off | (8,309 | ) | (950 | ) | (9,259 | ) | (5,274 | ) | - | (5,274 | ) | |||||||
Loans returned to accrual status / loan collections | (45,765 | ) | (7,321 | ) | (53,086 | ) | (48,006 | ) | (6,784 | ) | (54,790 | ) | ||||||
Ending balance NPLs | $ | 229,796 | $ | 49,478 | $ | 279,274 | $ | 254,476 | $ | 22,354 | $ | 276,830 | ||||||
Popular, Inc. | |||||||||
Financial Supplement to First Quarter 2024 Earnings Release | |||||||||
Table N - Allowance for Credit Losses, Net Charge-offs and Related Ratios | |||||||||
(Unaudited) | |||||||||
Quarters ended | |||||||||
(In thousands) | 31-Mar-24 | 31-Dec-23 | 31-Mar-23 | ||||||
Balance at beginning of period - loans held-in-portfolio | $ | 729,341 | $ | 711,068 | $ | 720,302 | |||
Impact of adopting ASU-2022-02 | - | - | (45,583 | ) | |||||
Provision for credit losses | 72,386 | 75,218 | 47,146 | ||||||
Initial allowance for credit losses - PCD Loans | 17 | 2 | 68 | ||||||
801,744 | 786,288 | 721,933 | |||||||
Net loans charge-off (recovered)- BPPR | |||||||||
Commercial: | |||||||||
Commercial multi-family | (1 | ) | - | - | |||||
Commercial real estate non-owner occupied | (325 | ) | (426 | ) | (135 | ) | |||
Commercial real estate owner occupied | 2,247 | 2,770 | (1,507 | ) | |||||
Commercial and industrial | 5,109 | 1,535 | 442 | ||||||
Total Commercial | 7,030 | 3,879 | (1,200 | ) | |||||
Construction | - | (1 | ) | - | |||||
Leasing | 3,685 | 3,677 | 327 | ||||||
Mortgage | (4,426 | ) | (2,720 | ) | (3,954 | ) | |||
Consumer: | |||||||||
Credit cards | 13,958 | 10,811 | 6,287 | ||||||
Home equity lines of credit | 104 | (64 | ) | (36 | ) | ||||
Personal | 21,940 | 20,405 | 12,045 | ||||||
Auto | 13,846 | 15,582 | 7,204 | ||||||
Other Consumer | 424 | 344 | 10,791 | ||||||
Total Consumer | 50,272 | 47,078 | 36,291 | ||||||
Total net charged-off BPPR | $ | 56,561 | $ | 51,913 | $ | 31,464 | |||
Net loans charge-off (recovered) - Popular U.S. | |||||||||
Commercial: | |||||||||
Commercial multi-family | 440 | (1 | ) | (2 | ) | ||||
Commercial real estate non-owner occupied | (64 | ) | 128 | (1,852 | ) | ||||
Commercial real estate owner occupied | (24 | ) | (22 | ) | (24 | ) | |||
Commercial and industrial | 408 | (159 | ) | (469 | ) | ||||
Total Commercial | 760 | (54 | ) | (2,347 | ) | ||||
Mortgage | (25 | ) | (25 | ) | (14 | ) | |||
Consumer: | |||||||||
Credit cards | - | - | 1 | ||||||
Home equity lines of credit | (148 | ) | (214 | ) | (126 | ) | |||
Personal | 5,027 | 5,302 | 3,787 | ||||||
Other Consumer | 25 | 25 | 48 | ||||||
Total Consumer | 4,904 | 5,113 | 3,710 | ||||||
Total net charged-off Popular U.S. | $ | 5,639 | $ | 5,034 | $ | 1,349 | |||
Total loans charged-off - Popular, Inc. | $ | 62,200 | $ | 56,947 | $ | 32,813 | |||
Balance at end of period - loans held-in-portfolio | $ | 739,544 | $ | 729,341 | $ | 689,120 | |||
Balance at beginning of period - unfunded commitments | $ | 17,006 | $ | 13,284 | $ | 8,805 | |||
Provision for credit losses (benefit) | (239 | ) | 3,722 | 610 | |||||
Balance at end of period - unfunded commitments [1] | $ | 16,767 | $ | 17,006 | $ | 9,415 | |||
POPULAR, INC. | |||||||||
Annualized net charge-offs (recoveries) to average loans held-in-portfolio | 0.71 | % | 0.66 | % | 0.41 | % | |||
Provision for credit losses - loan portfolios to net charge-offs | 116.38 | % | 132.08 | % | 143.68 | % | |||
BPPR | |||||||||
Annualized net charge-offs (recoveries) to average loans held-in-portfolio | 0.92 | % | 0.86 | % | 0.56 | % | |||
Provision for credit losses (benefit) - loan portfolios to net charge-offs | 107.86 | % | 129.51 | % | 143.67 | % | |||
Popular U.S. | |||||||||
Annualized net charge-offs (recoveries) to average loans held-in-portfolio | 0.21 | % | 0.19 | % | 0.06 | % | |||
Provision for credit losses (benefit) - loan portfolios to net charge-offs | 201.77 | % | 158.58 | % | 144.03 | % | |||
[1] 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 First Quarter 2024 Earnings Release | |||||||||||
Table O - Allowance for Credit Losses "ACL"- Loan Portfolios - Consolidated | |||||||||||
(Unaudited) | |||||||||||
31-Mar-24 | |||||||||||
(In thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio | ||||||||
Commercial: | |||||||||||
Commercial multi-family | $ | 12,743 | $ | 2,384,635 | 0.53 | % | |||||
Commercial real estate - non-owner occupied | 65,624 | 5,057,059 | 1.30 | % | |||||||
Commercial real estate - owner occupied | 63,807 | 3,117,844 | 2.05 | % | |||||||
Commercial and industrial | 120,418 | 7,025,483 | 1.71 | % | |||||||
Total commercial | $ | 262,592 | $ | 17,585,021 | 1.49 | % | |||||
Construction | 11,139 | 1,009,303 | 1.10 | % | |||||||
Mortgage | 86,438 | 7,783,662 | 1.11 | % | |||||||
Leasing | 8,991 | 1,765,413 | 0.51 | % | |||||||
Consumer: | |||||||||||
Credit cards | 88,169 | 1,142,153 | 7.72 | % | |||||||
Home equity lines of credit | 1,872 | 66,717 | 2.81 | % | |||||||
Personal | 116,077 | 1,897,010 | 6.12 | % | |||||||
Auto | 157,456 | 3,706,854 | 4.25 | % | |||||||
Other consumer | 6,810 | 162,605 | 4.19 | % | |||||||
Total consumer | $ | 370,384 | $ | 6,975,339 | 5.31 | % | |||||
Total | $ | 739,544 | $ | 35,118,738 | 2.11 | % | |||||
31-Dec-23 | |||||||||||
(In thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio | ||||||||
Commercial: |
| ||||||||||
Commercial multi-family | $ | 13,740 | $ | 2,415,620 | 0.57 | % | |||||
Commercial real estate - non-owner occupied | 65,453 | 5,087,421 | 1.29 | % | |||||||
Commercial real estate - owner occupied | 56,864 | 3,080,635 | 1.85 | % | |||||||
Commercial and industrial | 122,356 | 7,126,121 | 1.72 | % | |||||||
Total commercial | $ | 258,413 | $ | 17,709,797 | 1.46 | % | |||||
Construction | 12,686 | 959,280 | 1.32 | % | |||||||
Mortgage | 83,214 | 7,695,917 | 1.08 | % | |||||||
Leasing | 9,708 | 1,731,809 | 0.56 | % | |||||||
Consumer: | |||||||||||
Credit cards | 80,487 | 1,135,747 | 7.09 | % | |||||||
Home equity lines of credit | 1,978 | 65,953 | 3.00 | % | |||||||
Personal | 117,790 | 1,945,247 | 6.06 | % | |||||||
Auto | 157,931 | 3,660,780 | 4.31 | % | |||||||
Other consumer | 7,134 | 160,441 | 4.45 | % | |||||||
Total consumer | $ | 365,320 | $ | 6,968,168 | 5.24 | % | |||||
Total | $ | 729,341 | $ | 35,064,971 | 2.08 | % | |||||
Variance | |||||||||||
(In thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio | ||||||||
Commercial: | |||||||||||
Commercial multi-family | $ | (997 | ) | $ | (30,985 | ) | (0.04 | )% | |||
Commercial real estate - non-owner occupied | 171 | (30,362 | ) | 0.01 | % | ||||||
Commercial real estate - owner occupied | 6,943 | 37,209 | 0.20 | % | |||||||
Commercial and industrial | (1,938 | ) | (100,638 | ) | (0.01 | )% | |||||
Total commercial | $ | 4,179 | $ | (124,776 | ) | 0.03 | % | ||||
Construction | (1,547 | ) | 50,023 | (0.22 | )% | ||||||
Mortgage | 3,224 | 87,745 | 0.03 | % | |||||||
Leasing | (717 | ) | 33,604 | (0.05 | )% | ||||||
Consumer: | |||||||||||
Credit cards | 7,682 | 6,406 | 0.63 | % | |||||||
Home equity lines of credit | (106 | ) | 764 | (0.19 | )% | ||||||
Personal | (1,713 | ) | (48,237 | ) | 0.06 | % | |||||
Auto | (475 | ) | 46,074 | (0.06 | )% | ||||||
Other consumer | (324 | ) | 2,164 | (0.26 | )% | ||||||
Total consumer | $ | 5,064 | $ | 7,171 | 0.07 | % | |||||
Total | $ | 10,203 | $ | 53,767 | 0.03 | % | |||||
Popular, Inc. | |||||||||||
Financial Supplement to First Quarter 2024 Earnings Release | |||||||||||
Table P - Allowance for Credit Losses "ACL"- Loan Portfolios - BPPR Operations | |||||||||||
(Unaudited) | |||||||||||
31-Mar-24 | |||||||||||
BPPR | |||||||||||
(In thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio | ||||||||
Commercial: | |||||||||||
Commercial multi-family | $ | 3,567 | $ | 303,651 | 1.17 | % | |||||
Commercial real estate - non-owner occupied | 53,666 | 2,996,485 | 1.79 | % | |||||||
Commercial real estate - owner occupied | 43,537 | 1,426,092 | 3.05 | % | |||||||
Commercial and industrial | 102,844 | 4,745,123 | 2.17 | % | |||||||
Total commercial | $ | 203,614 | $ | 9,471,351 | 2.15 | % | |||||
Construction | 3,114 | 162,724 | 1.91 | % | |||||||
Mortgage | 76,564 | 6,483,551 | 1.18 | % | |||||||
Leasing | 8,991 | 1,765,413 | 0.51 | % | |||||||
Consumer: | |||||||||||
Credit cards | 88,169 | 1,142,136 | 7.72 | % | |||||||
Home equity lines of credit | 102 | 2,569 | 3.97 | % | |||||||
Personal | 99,504 | 1,746,493 | 5.70 | % | |||||||
Auto | 157,456 | 3,706,854 | 4.25 | % | |||||||
Other consumer | 6,808 | 153,678 | 4.43 | % | |||||||
Total consumer | $ | 352,039 | $ | 6,751,730 | 5.21 | % | |||||
Total | $ | 644,322 | $ | 24,634,769 | 2.62 | % | |||||
31-Dec-23 | |||||||||||
BPPR | |||||||||||
(In thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio | ||||||||
Commercial: | |||||||||||
Commercial multi-family | $ | 3,614 | $ | 291,942 | 1.24 | % | |||||
Commercial real estate - non-owner occupied | 53,754 | 3,005,254 | 1.79 | % | |||||||
Commercial real estate - owner occupied | 40,637 | 1,398,383 | 2.91 | % | |||||||
Commercial and industrial | 107,577 | 4,796,226 | 2.24 | % | |||||||
Total commercial | $ | 205,582 | $ | 9,491,805 | 2.17 | % | |||||
Construction | 5,294 | 169,857 | 3.12 | % | |||||||
Mortgage | 72,440 | 6,391,824 | 1.13 | % | |||||||
Leasing | 9,708 | 1,731,809 | 0.56 | % | |||||||
Consumer: | |||||||||||
Credit cards | 80,487 | 1,135,728 | 7.09 | % | |||||||
Home equity lines of credit | 103 | 2,648 | 3.89 | % | |||||||
Personal | 101,181 | 1,776,310 | 5.70 | % | |||||||
Auto | 157,931 | 3,660,780 | 4.31 | % | |||||||
Other consumer | 7,132 | 150,162 | 4.75 | % | |||||||
Total consumer | $ | 346,834 | $ | 6,725,628 | 5.16 | % | |||||
Total | $ | 639,858 | $ | 24,510,923 | 2.61 | % | |||||
Variance | |||||||||||
(In thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio | ||||||||
Commercial: | |||||||||||
Commercial multi-family | (47 | ) | 11,709 | (0.07 | )% | ||||||
Commercial real estate - non-owner occupied | (88 | ) | (8,769 | ) | - | % | |||||
Commercial real estate - owner occupied | 2,900 | 27,709 | 0.14 | % | |||||||
Commercial and industrial | (4,733 | ) | (51,103 | ) | (0.07 | )% | |||||
Total commercial | $ | (1,968 | ) | $ | (20,454 | ) | (0.02 | )% | |||
Construction | (2,180 | ) | (7,133 | ) | (1.21 | )% | |||||
Mortgage | 4,124 | 91,727 | 0.05 | % | |||||||
Leasing | (717 | ) | 33,604 | (0.05 | )% | ||||||
Consumer: | |||||||||||
Credit cards | 7,682 | 6,408 | 0.63 | % | |||||||
Home equity lines of credit | (1 | ) | (79 | ) | 0.08 | % | |||||
Personal | (1,677 | ) | (29,817 | ) | - | % | |||||
Auto | (475 | ) | 46,074 | (0.06 | )% | ||||||
Other consumer | (324 | ) | 3,516 | (0.32 | )% | ||||||
Total consumer | $ | 5,205 | $ | 26,102 | 0.05 | % | |||||
Total | $ | 4,464 | $ | 123,846 | 0.01 | % | |||||
Popular, Inc. | ||||||||||
Financial Supplement to First Quarter 2024 Earnings Release | ||||||||||
Table Q - Allowance for Credit Losses "ACL"- Loan Portfolios - POPULAR U.S. Operations | ||||||||||
(Unaudited) | ||||||||||
31-Mar-24 | ||||||||||
Popular U.S. | ||||||||||
(In thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio | |||||||
Commercial: | ||||||||||
Commercial multi-family | $ | 9,176 | $ | 2,080,984 | 0.44 | % | ||||
Commercial real estate - non-owner occupied | 11,958 | 2,060,574 | 0.58 | % | ||||||
Commercial real estate - owner occupied | 20,270 | 1,691,752 | 1.20 | % | ||||||
Commercial and industrial | 17,574 | 2,280,360 | 0.77 | % | ||||||
Total commercial | $ | 58,978 | $ | 8,113,670 | 0.73 | % | ||||
Construction | 8,025 | 846,579 | 0.95 | % | ||||||
Mortgage | 9,874 | 1,300,111 | 0.76 | % | ||||||
Consumer: | ||||||||||
Credit cards | - | 17 | - | % | ||||||
Home equity lines of credit | 1,770 | 64,148 | 2.76 | % | ||||||
Personal | 16,573 | 150,517 | 11.01 | % | ||||||
Other consumer | 2 | 8,927 | 0.02 | % | ||||||
Total consumer | $ | 18,345 | $ | 223,609 | 8.20 | % | ||||
Total | $ | 95,222 | $ | 10,483,969 | 0.91 | % | ||||
31-Dec-23 | ||||||||||
Popular U.S. | ||||||||||
(In thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio | |||||||
Commercial: | ||||||||||
Commercial multi-family | $ | 10,126 | $ | 2,123,678 | 0.48 | % | ||||
Commercial real estate - non-owner occupied | 11,699 | 2,082,167 | 0.56 | % | ||||||
Commercial real estate - owner occupied | 16,227 | 1,682,252 | 0.96 | % | ||||||
Commercial and industrial | 14,779 | 2,329,895 | 0.63 | % | ||||||
Total commercial | $ | 52,831 | $ | 8,217,992 | 0.64 | % | ||||
Construction | 7,392 | 789,423 | 0.94 | % | ||||||
Mortgage | 10,774 | 1,304,093 | 0.83 | % | ||||||
Consumer: | ||||||||||
Credit cards | - | 19 | - | % | ||||||
Home equity lines of credit | 1,875 | 63,305 | 2.96 | % | ||||||
Personal | 16,609 | 168,937 | 9.83 | % | ||||||
Other consumer | 2 | 10,279 | 0.02 | % | ||||||
Total consumer | $ | 18,486 | $ | 242,540 | 7.62 | % | ||||
Total | $ | 89,483 | $ | 10,554,048 | 0.85 | % | ||||
Variance | ||||||||||
(In thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio | |||||||
Commercial: | ||||||||||
Commercial multi-family | $ | (950 | ) | $ | (42,694 | ) | (0.04 | )% | ||
Commercial real estate - non-owner occupied | 259 | (21,593 | ) | 0.02 | % | |||||
Commercial real estate - owner occupied | 4,043 | 9,500 | 0.24 | % | ||||||
Commercial and industrial | 2,795 | (49,535 | ) | 0.14 | % | |||||
Total commercial | $ | 6,147 | $ | (104,322 | ) | 0.09 | % | |||
Construction | 633 | 57,156 | 0.01 | % | ||||||
Mortgage | (900 | ) | (3,982 | ) | (0.07 | )% | ||||
Consumer: | ||||||||||
Credit cards | - | (2 | ) | - | % | |||||
Home equity lines of credit | (105 | ) | 843 | (0.20 | )% | |||||
Personal | (36 | ) | (18,420 | ) | 1.18 | % | ||||
Other consumer | - | (1,352 | ) | - | % | |||||
Total consumer | $ | (141 | ) | $ | (18,931 | ) | 0.58 | % | ||
Total | $ | 5,739 | $ | (70,079 | ) | 0.06 | % | |||
Popular, Inc. | |||||||||
Financial Supplement to First Quarter 2024 Earnings Release | |||||||||
Table R - Reconciliation to GAAP Financial Measures | |||||||||
(Unaudited) | |||||||||
(In thousands, except share or per share information) | 31-Mar-24 | 31-Dec-23 | 31-Mar-23 | ||||||
Total stockholders' equity | $ | 5,177,314 | $ | 5,146,953 | $ | 4,470,725 | |||
Less: Preferred stock | (22,143 | ) | (22,143 | ) | (22,143 | ) | |||
Less: Goodwill | (804,428 | ) | (804,428 | ) | (827,428 | ) | |||
Less: Other intangibles | (8,969 | ) | (9,764 | ) | (12,149 | ) | |||
Total tangible common equity | $ | 4,341,774 | $ | 4,310,618 | $ | 3,609,005 | |||
Total assets | $ | 70,936,939 | $ | 70,758,155 | $ | 67,675,759 | |||
Less: Goodwill | (804,428 | ) | (804,428 | ) | (827,428 | ) | |||
Less: Other intangibles | (8,969 | ) | (9,764 | ) | (12,149 | ) | |||
Total tangible assets | $ | 70,123,542 | $ | 69,943,963 | $ | 66,836,182 | |||
Tangible common equity to tangible assets | 6.19 | % | 6.16 | % | 5.40 | % | |||
Common shares outstanding at end of period | 72,284,875 | 72,153,621 | 71,965,984 | ||||||
Tangible book value per common share | $ | 60.06 | $ | 59.74 | $ | 50.15 | |||
Quarterly average | |||||||||
Total stockholders' equity [1] | $ | 6,198,740 | $ | 6,072,871 | $ | 5,641,308 | |||
Average unrealized (gains) losses on AFS securities transferred to HTM | 639,226 | 683,077 | 811,581 | ||||||
Adjusted total stockholder's equity | 6,837,966 | 6,755,948 | 6,452,889 | ||||||
Less: Preferred Stock | (22,143 | ) | (22,143 | ) | (22,143 | ) | |||
Less: Goodwill | (804,427 | ) | (804,427 | ) | (827,427 | ) | |||
Less: Other intangibles | (9,490 | ) | (10,286 | ) | (12,678 | ) | |||
Total tangible equity | $ | 6,001,906 | $ | 5,919,092 | $ | 5,590,641 | |||
Return on average tangible common equity | 6.90 | % | 6.32 | % | 11.51 | % | |||
[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale. | |||||||||
Contacts
Popular, Inc.
Investor Relations:
Paul J. Cardillo, 212-417-6721
Senior Vice President and Investor Relations Officer
pcardillo@popular.com
or
Media Relations:
MC González Noguera, 917-804-5253
Executive Vice President and Chief Communications & Public Affairs Officer
mc.gonzalez@popular.com
