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Popular, Inc. Announces Third Quarter 2022 Financial Results

  • Net income of $422.4 million in Q3 2022, compared to net income of $211.4 million in Q2 2022; excluding the impact of the Evertec Transactions (as defined below) and related accounting adjustments during the third quarter, net income was $195.8 million.
  • Net interest margin of 3.32% in Q3 2022, compared to 3.09% in Q2 2022; net interest margin on a taxable equivalent basis of 3.71% in Q3 2022, compared to 3.45% in Q2 2022.
  • Credit Quality:
    • Non-performing loans held-in-portfolio (“NPLs”) decreased by $24.5 million from Q2 2022; NPLs to loans ratio at 1.4% vs. 1.6% in Q2 2022;
    • Net charge-offs (“NCOs”) increased by $12.2 million from Q2 2022; annualized NCOs at 0.24% of average loans held-in-portfolio vs. 0.08% in Q2 2022;
    • Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.23% vs. 2.24% in Q2 2022; and
    • ACL to NPLs at 155.1% vs. 142.7% in Q2 2022.
  • Common Equity Tier 1 ratio of 16.04%, Common Equity per Share of $50.26 and Tangible Book Value per Share of $38.69 at September 30, 2022.

Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $422.4 million for the quarter ended September 30, 2022, compared to net income of $211.4 million for the quarter ended June 30, 2022. Excluding the effects of the previously announced Evertec Transactions completed during the third quarter, net income was $195.8 million

Ignacio Alvarez, President and Chief Executive Officer, said: “We are pleased with Popular’s performance in the third quarter, which reflected strong loan growth in both the mainland and Puerto Rico, an expansion of our net interest margin, and positive credit quality metrics. We are mindful of the global economic uncertainty and market volatility, but remain optimistic about the future of Puerto Rico, our main market. Consumer activity remains healthy and recovery funds from previous events are expected to provide additional stimulus. With strong fundamentals, prudent management and diversified sources of revenue, we are well-positioned to address the challenges that may lie ahead.

In addition to our financial results, I am extremely proud of our team’s response in the wake of Hurricane Fiona, which impacted Puerto Rico in September. Thanks to their agility and resolve, we mobilized quickly to assist communities in need, serve our customers despite operational challenges and support impacted colleagues. Our colleagues’ performance in events such as this one evidences our unwavering commitment to all the important stakeholders we serve.”

Significant Events

Acquisition of Key Customer Channels and Amendments to Commercial Contracts with Evertec and Subsequent Sale of Remaining Ownership Stake in Evertec

On July 1, 2022, the Corporation’s wholly owned subsidiary, Banco Popular de Puerto Rico (“BPPR”), completed its previously announced acquisition of certain assets from Evertec Group, LLC (“Evertec Group”), a wholly owned subsidiary of Evertec, Inc. (“Evertec”), to service certain BPPR channels (“Business Acquisition Transaction”).

As a result of the closing of the Business Acquisition Transaction, BPPR acquired from Evertec Group certain critical channels, including BPPR’s retail and business digital banking and commercial cash management applications. In connection with the Business Acquisition Transaction, BPPR also entered into amended and restated service agreements with Evertec Group pursuant to which Evertec Group will continue to provide various information technology and transaction processing services to Popular, BPPR and their respective subsidiaries.

Under the amended service agreements, Evertec Group no longer has exclusive rights to provide certain of Popular’s technology services. The amended service agreements include discounted pricing and lowered caps on contractual pricing escalators tied to the Consumer Price Index. As part of the transaction, BPPR and Evertec also entered into a revenue sharing structure for BPPR in connection with its merchant acquiring relationship with Evertec.

As consideration for the Business Acquisitions Transaction, BPPR delivered to Evertec Group 4,589,169 shares of Evertec common stock valued at closing at $169.2 million (based on Evertec’s stock price on June 30, 2022 of $36.88). A total of $144.8 million of the consideration for the transaction was attributed to the acquisition of the critical channels of which $28.7 million were attributed to Software Intangible Assets and $116.1 million were attributed to goodwill. The transaction was accounted for as a business combination. The remaining $24.2 million was attributed to the renegotiation of the Master Services Agreement (“MSA”) with Evertec and was recorded as an expense. The Corporation also recorded a credit of $6.9 million in Evertec billings under the MSA during the third quarter of 2022 as a result of the Business Acquisition Transaction, resulting in a net expense charge for the quarter of $17.3 million.

On August 15, 2022, the Corporation completed the sale of its remaining 7,065,634 shares of common stock of Evertec, Inc. (the “Evertec Stock Sale”, and collectively with the Business Acquisition Transaction, the “Evertec Transactions”). Following the Evertec Stock Sale, Popular no longer owns any Evertec common stock. The impact of the gain on the sale of Evertec shares used as consideration for the Business Acquisition Transaction in exchange for the acquired applications on July 1, 2022 and the net expense associated with the renegotiation of the MSA, together with the Evertec Stock Sale and the related accounting adjustments of the Evertec Transactions, resulted in an aggregate after-tax gain of $226.6 million, recorded during the third quarter of 2022.

Capital Actions

On July 12, 2022, the Corporation completed its previously announced accelerated share repurchase (“ASR”) program for the repurchase of an aggregate $400 million of Popular’s common stock, for which an initial 3,483,942 shares were delivered in March 2022 (the “March ASR Agreement”). Upon the final settlement of the March ASR Agreement, the Corporation received an additional 1,582,922 shares of common stock and recognized approximately $120 million as treasury stock with a corresponding increase in its capital surplus account. The Corporation repurchased a total of 5,066,864 shares at an average purchase price of $78.9443 under the March ASR Agreement.

On August 25, 2022, the Corporation announced that, on August 24, 2022, it entered into another ASR agreement to repurchase an aggregate of $231 million of Popular’s common stock (the “August ASR Agreement”). The $231 million in Popular’s common stock being repurchased pursuant to the August ASR Agreement is equal to the sum of the remaining $100 million in common stock repurchases contemplated as part of the Corporation’s 2022 capital actions, announced on January 12, 2022, and the after-tax gain recognized by the Corporation as a result of the sale of its remaining shares common stock of Evertec, announced on August 15, 2022. Under the terms of the August ASR agreement, on August 26, 2022, the Corporation made an initial payment of $231 million and received an initial delivery of 2,339,241 shares of Popular’s Common Stock (the “Initial Shares”). The transaction was accounted for as a treasury stock transaction. Furthermore, as a result of the receipt of the Initial Shares, the Corporation recognized in shareholders’ equity approximately $185 million in treasury stock and $46 million as a reduction of capital surplus. Upon the final settlement of the August ASR Agreement, the Corporation expects to further adjust its treasury stock and capital surplus accounts to reflect the final delivery or receipt of cash or shares, which will depend on the volume-weighted average price of the Corporation’s common stock during the term of the ASR agreement, less a discount. The final settlement of the August ASR agreement is expected to occur no later than the fourth quarter of 2022.

Hurricanes Fiona and Ian

On September 18, 2022, Hurricane Fiona made landfall in the southwest area of Puerto Rico as a Category 1 hurricane, bringing record rainfall and flooding throughout the island and affecting communities where BPPR does business. Hurricane Fiona’s rain and winds caused a complete blackout on the island and caused considerable damage to certain sectors in the southwest region. President Biden issued a disaster declaration for the island. While the impact to BPPR’s operation was not material, certain customers, highly concentrated in certain municipalities, were impacted by the disaster.

As part of hurricane relief efforts on the island, the Corporation has waived late-payment fees on individual lending products from September 16 through October 31, 2022. Popular also waived, through September 30, withdrawal fees payable by our customers at ATMs outside of the Popular network and fees payable by customers of other banking institutions at Popular’s ATMs. In addition, the Corporation has offered to clients impacted by the hurricane a moratorium of up to three monthly payments, up to December 31, 2022, on personal and commercial credit cards, auto loans, leases and personal loans, subject to certain eligibility requirements. Mortgage clients may also benefit from different payment relief alternatives available, depending on their type of loan. Loan relief options for commercial clients are reviewed on a case-by-case basis.

Separately, on September 28, 2022, Hurricane Ian made a landfall on the west coast of central Florida as a Category 4 hurricane, causing extensive floods and destruction in the impacted areas in Florida. President Biden made a major disaster declaration for certain counties in central Florida. PB and BPPR do not have significant operations in the area but have some limited retail and commercial clients who reside or have business activities in the impacted areas.

For clients impacted by the hurricane that reside in counties in Florida declared as disaster zones by President Biden, Popular has offered a moratorium for up to three payments, up to January 31, 2023, subject to certain eligibility requirements. As in the case of Puerto Rico, relief options for commercial clients are reviewed on a case-by-case basis.

The Corporation is still evaluating the impact of Hurricanes Fiona and Ian. However, given the hurricanes’ limited impact in the markets in which Popular does business and low level of assistance requests received by the Corporation to date, the effect on credit risk should not be significant.

Transfer of Securities from Available-for Sale to Held-To-Maturity

In October 2022, the Corporation transferred U.S. Treasury securities with a fair value of $6.5 billion (par value of $7.4 billion) from its available-for-sale portfolio to its held-to-maturity portfolio. This transaction was accounted for during the fourth quarter of 2022, when management changed its intent to hold these securities to maturity, given the Corporation’s liquidity position and its intention to reduce the impact on accumulated other comprehensive income (“AOCI”) and tangible capital of further increases in interest rates.

The securities were reclassified at fair value at the time of the transfer. At the date of the transfer, these securities had pre-tax unrealized losses of $873.1 million recorded in AOCI. This fair value discount will be accreted to interest income and the unrealized loss remaining in AOCI will be amortized, offsetting each other through the remaining life of the securities. There were no realized gains or losses recorded as a result of this transfer.

While changes in the amount of unrealized gains and losses in AOCI have an impact on the Corporation’s and its wholly-owned banking subsidiaries’ tangible capital ratios, they do not impact regulatory capital ratios, in accordance with the regulatory framework.

Earnings Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

Quarters ended

 

Nine months ended

(Dollars in thousands, except per share information)

30-Sep-22

30-Jun-22

30-Sep-21

 

30-Sep-22

30-Sep-21

Net interest income

$579,619

$533,862

$489,393

 

 

$1,607,793

$1,456,307

 

Provision for credit losses (benefit)

39,637

9,362

(61,173

)

 

33,499

(160,414

)

Net interest income after provision for credit losses (benefit)

539,982

524,500

550,566

 

 

1,574,294

1,616,721

 

Other non-interest income

426,494

157,411

169,258

 

 

738,597

477,451

 

Operating expenses

476,095

406,278

388,168

 

 

1,284,712

1,131,881

 

Income before income tax

490,381

275,633

331,656

 

 

1,028,179

962,291

 

Income tax expense

67,986

64,212

83,542

 

 

182,677

233,466

 

Net income

$422,395

$211,421

$248,114

 

 

$845,502

$728,825

 

Net income applicable to common stock

$422,042

$211,068

$247,761

 

 

$844,443

$727,766

 

Net income per common share-basic

$5.71

$2.77

$3.09

 

 

$11.09

$8.89

 

Net income per common share-diluted

$5.70

$2.77

$3.09

 

 

$11.07

$8.87

 

Net interest income on a taxable equivalent basis – Non-GAAP financial measure

Net interest income, on a taxable equivalent basis, is presented with its different components in Table D and E for the quarter and year ended September 30, 2022 and comparable periods. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.

Net interest income for the quarter ended September 30, 2022 was $579.6 million, compared to $533.9 million in the previous quarter, an increase of $45.7 million. Net interest income on a taxable equivalent basis for the third quarter of 2022 was $646.6 million, compared to $595.5 million in the second quarter of 2022, or an increase of $51.1 million.

Net interest margin for the quarter increased 23 basis points to 3.32% from 3.09% in the second quarter of 2022. On a taxable equivalent basis, net interest margin for the third quarter of 2022 was 3.71%, compared to 3.45% in the prior quarter. The increase in net interest margin is mainly related to higher earning assets yields due to a higher interest rate environment, partially offset by an increase in funding costs. The change in earning asset mix also impacted net interest margin positively, with increases in loan balances and reductions to lower yielding money markets, investments and trading securities. The main variances in net interest income on a taxable equivalent basis were:

  • higher interest income from money market, trading and investment securities by $48.7 million, resulting from higher yield of the portfolio by 52 basis points driven mainly by the increase in the interest on excess funds at the Federal Reserve of 135 basis points and investment of U.S. Treasury securities in a higher interest rate environment. Interest income on these securities is exempt for income tax purposes under the Puerto Rico’s Internal Revenue Code;
  • quarter-over-quarter, the Corporation’s loan portfolio increased by $832 million, in average, reflecting increases across all major loan segments except mortgages. Furthermore, one more day in the quarter resulted in approximately $3.7 million increase in interest income from loans;
  • higher interest income from commercial loans by $22.2 million due to higher average volume of loans by $523 million and higher yield by 36 basis points due to the higher rate environment. Both BPPR and PB experienced growth in commercial loans; and
  • higher interest income from consumer loans, mainly driven by higher average volume by $227 million mainly at BPPR, and increase in the yield of the portfolio by 16 basis points;

partially offset by:

  • higher interest expense on deposits by $33.1 million due to the increase in rates, mainly from Puerto Rico government deposits and commercial deposits

Net interest income for the BPPR segment amounted to $488.1 million for the third quarter of 2022, compared to $447.8 million in the second quarter of 2022. Net interest margin for the third and second quarters of 2022 was 3.27% and 3.02%, respectively, an improvement of 25 basis points quarter-over-quarter. As discussed above, the net interest margin was impacted by higher volume and yield on investments and loans, partially offset by higher cost of deposits. The cost of interest-bearing deposits was 0.45%, compared to 0.19% in the second quarter of year, led mainly by repricing of public funds and corporate clients. Total deposit cost for the quarter also increased by 20 basis points from 0.14% to 0.34%.

Net interest income for PB was $98.9 million for the quarter ended September 30, 2022, compared to $93.4 million during the previous quarter. Net interest margin for the quarter was 3.84%, an increase of 8 basis points from the 3.76% reported in the second quarter. The increase in net interest income results mostly from a higher volume and yield on commercial loans, partially offset by higher costs on deposit driven by the change in interest rate environment. The cost of interest-bearing deposits was 0.85%, increasing 31 basis points from the 0.54% reported in the second quarter of 2022, while the total cost of deposits, including demand deposits, was 0.67%, an increase of 25 basis points when compared to 0.42% in the previous quarter.

Non-interest income

Non-interest income amounted to $426.5 million for the third quarter of 2022, an increase of $269.1 million compared to $157.4 million in the previous quarter. The results for the third quarter of 2022 included the gain from the Evertec Transactions and the related final equity investment accounting of Popular’s equity investment in Evertec of $257.7 million. Other factors that contributed to the variance in non-interest income were:

  • higher other service fees by $5.0 million due to higher merchant acquiring fees by $3.3 million related to the revenue sharing agreement entered into in connection with the Evertec Transactions and higher insurance commission fees, including contingent payments of approximately $500 thousand received during the quarter;
  • lower unrealized losses by $2.7 million on the portfolio of equity securities related to benefit plans, which have an offsetting effect as higher personnel costs;
  • a favorable adjustment of $9.2 million in the fair value of the contingent consideration related to purchase price adjustments for the acquisition of the K2 Capital Group LLC business in 2021 (‘’K2 Acquisition’’), as the Corporation updated its estimates related to the realizability of the earnings targets for the contingent payment; and
  • higher earnings from the portfolio of equity method investments by $2.5 million, excluding Evertec;

partially offset by:

  • lower service charges on deposit accounts by $1.8 million due to lower returned ACH fees and the Corporation’s initiative of eliminating insufficient funds fees and modifying overdraft fees during the quarter; and
  • lower mortgage banking activities by $4.1 million due to a negative variance in the valuation of mortgage servicing rights by $2.8 million and a negative variance of $2.7 million in realized losses in closed derivative positions.

Refer to Table B for further details.

Operating expenses

Operating expenses for the third quarter of 2022 totaled $476.1 million, an increase of $69.8 million, including a $17.3 million charge in connection with the Evertec Transactions and a $9.0 million impairment of goodwill related to the 2021 K2 Acquisition, when compared to the second quarter of 2022. The variance in operating expenses was driven primarily by:

  • higher personnel cost by $25.1 million mainly due to higher salaries as a result of market adjustments and annual salary revisions effective in July 2022. The remaining increase in personnel costs is mainly related to an increase in medical insurance premiums, and higher incentives related to the profit-sharing and other incentive plans that are tied to the Corporation’s financial performance;
  • higher other professional fees by $11.8 mainly due to higher advisory expense related to corporate initiatives;
  • higher business promotion expenses by $3.0 million mainly due to donations, including hurricane related donations, and promotional events during the quarter;
  • lower other real estate owned (OREO) income by $5.4 million mainly due to lower gain on sale of mortgage and commercial properties;
  • higher credit and debit card processing, volume, interchange and other expenses by $3.4 million mainly due to lower volume incentives;
  • higher other operating expenses by $23.4 million, mainly due to higher legal reserves and the $17.3 million expense related to the Evertec Transactions, net of the $6.9 million in credits received in connection with this transaction; and
  • a goodwill impairment charge of $9.0 million due to a decrease in Popular Equipment Finance’s (PEF) projected earnings considered as part of the Corporation’s annual goodwill impairment analysis.

partially offset by:

  • lower programming, processing, and other technology services by $13.9 million due to lower application hosting, IT consulting and related expenses and lower merchant processing fees reflecting savings as a result of the Evertec Transactions.

The Corporation is in the process of completing its annual goodwill impairment test, using July 31, 2022 as the evaluation date. The Corporation expects to complete its evaluation prior to the filing of its Form 10-Q for the quarter ended September 30, 2022 with the Securities and Exchange Commission. Any further impairment of goodwill would result in a non-cash expense, net of tax impact. A charge to earnings related to a goodwill impairment would not impact regulatory capital calculations.

Full-time equivalent employees were 8,747 as of September 30, 2022, including 77 employees related to the Evertec Business Acquisition Transaction, compared to 8,615 as of June 30, 2022.

For a breakdown of operating expenses by category refer to Table B.

Income taxes

For the quarter ended September 30, 2022, the Corporation recorded an income tax expense of $68.0 million, compared to $64.2 million for the previous quarter. The increase in income tax expense was mainly attributable to higher income before tax. The effective tax rate (“ETR”) for the third quarter of 2022 was 14%, compared to 23% for the previous quarter. The ETR of the Corporation is impacted by the composition and source of its taxable income. The reduction in the ETR for the third quarter is mainly attributed to the gain from the Evertec Transactions, which is subject to a preferential tax rate. The Corporation expects its ETR for the year 2022 to be within a range from 17% to 20%.

Credit Quality

During the third quarter of 2022, the Corporation showed stable credit quality trends with low levels of NCOs and decreasing NPLs. We continue to closely monitor changes in the macroeconomic environment and on borrower performance, given inflationary pressures and geopolitical uncertainty. However, management continues to believe that the improvement over recent years in the risk profile of the Corporation’s loan portfolios positions Popular to operate successfully under the current environment. The impact of Hurricanes Fiona and Ian is still being evaluated but given Fiona’s limited impact in the markets that Popular does business and low levels of assistance requests received to date, the effect on credit risk should not be significant.

The following presents credit quality results for the third quarter of 2022:

  • At September 30, 2022, total non-performing loans held-in-portfolio decreased by $24.5 million from June 30, 2022. BPPR’s NPLs decreased by $34.6 million, mostly driven by lower mortgage and commercial NPLs by $31.9 million and $9.0 million, respectively, in part offset by higher auto loans NPLs by $6.4 million. The mortgage NPLs decrease was mainly due to the combined effects of collection efforts, increased foreclosure activity and sustained low levels of early delinquency compared with pre-pandemic trends. PB’s NPLs increased by $10.1 million quarter-over-quarter, solely due to a $10.6 million commercial borrower within the healthcare industry that was placed in non-accrual status during the quarter due to financial distress. At September 30, 2022, the ratio of NPLs to total loans held-in-portfolio was 1.4%, compared to 1.6% in the second quarter of 2022.
  • Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $5.5 million quarter-over-quarter. In BPPR, total inflows decreased by $3.1 million, mostly driven by lower mortgage inflows of $7.3 million, in part offset by higher commercial inflows by $4.2 million. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB increased by $8.5 million quarter-over-quarter, mainly driven the abovementioned commercial healthcare NPL.
  • NCOs amounted to $18.2 million, an unfavorable variance of $12.2 million when compared to the second quarter of 2022. BPPR’s NCOs reflected an unfavorable variance of $13.1 million, mainly related to higher consumer, commercial and mortgage NCOs by $7.5 million, $2.3 million, and $2.3 million, respectively. The commercial NCOs was mainly driven by a $4.5 million previously reserved relationship charged-off in September partially offset by higher recoveries. PB’s NCOs remained essentially flat quarter-over-quarter. During the third quarter of 2022, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.24%, compared to 0.08% in the second quarter of 2022. Refer to Table M for further information on net charge-offs and related ratios.
  • At September 30, 2022, the ACL increased by $21.3 million, or 3.1%, from the second quarter of 2022 to $703.1 million. 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. The Corporation evaluates, at least on an annual basis, the assumptions tied to the CECL accounting framework. These include the reasonable and supportable period as well as the reversion window. This quarter, as part of its evaluation procedures, the Corporation decided to extend the reversion window from 1 year to 3 years. This change in assumptions contributed to a reduction of $11 million in the ACL. The reasonable and supportable period assumptions remained unchanged.
  • The baseline scenario assumes an annualized 2022 GDP growth of 3.1% and 1.6% for Puerto Rico and United States, respectively, compared to 2.8% for both regions in the previous quarter. The improvement in P.R.’s GDP was mainly due to updated fiscal assumptions, which include the potential impact of the Inflation Reduction Act. As for the U.S., the reduction in GDP growth was driven by updated data for the second quarter of 2022, which reflected two consecutive quarters of GDP decline. 2023 annualized GDP growth for P.R. and U.S. of 2.2% and 1.5%, respectively, compared to 2.7% for both regions in the previous quarter. The reduction in 2023 is in part due to tight monetary policy, weaker job growth and persistent inflation.
  • The 2022 average unemployment rate remained largely consistent QoQ forecasted at 6.6% and 3.6% for Puerto Rico and United States, respectively, compared to 6.9% and 3.5%, respectively, in the previous forecast. For 2023 the forecasted average unemployment rate for P.R. and U.S. is 7.8% and 3.9%, slightly higher than previous quarter’s 7.6% and 3.4% for P.R. and U.S., respectively.
  • In BPPR, the ACL increased by $10.4 million, mostly driven by higher loan volumes and changes in credit quality. The ACL for the PB segment increased by $11.0 million quarter-over-quarter, mainly driven by an $8.4 million reserve recorded for the abovementioned commercial healthcare NPL. The Corporation’s ratio of the allowance for credit losses to loans held-in-portfolio was 2.23% in the third quarter of 2022, compared to 2.24% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 155.1%, compared to 142.7% in the previous quarter.
  • The provision for credit losses for the loan portfolios for the third quarter of 2022 was an expense of $39.5 million, compared to an expense of $9.9 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was an expense of $28.7 million, compared to an expense of $9.1 million in the previous quarter, while the provision for the PB segment was an expense of $10.8 million, compared to an expense of $0.7 million in the previous quarter.
  • The provision for unfunded commitments for the third quarter of 2022 was an expense of $0.4 million, compared to a benefit of $0.2 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $0.3 million, flat quarter-over-quarter. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations.

Non-Performing Assets

 

 

 

 

 

(Unaudited)

 

 

 

 

 

(In thousands)

30-Sep-22

 

30-Jun-22

 

30-Sep-21

Non-performing loans held-in-portfolio

$453,419

 

$477,924

 

$632,835

Other real estate owned (“OREO”)

93,239

 

92,137

 

76,828

Total non-performing assets

$546,658

 

$570,061

 

$709,663

Net charge-offs (recoveries) for the quarter

$18,232

 

$6,073

 

$8,823

 

 

 

 

 

 

 

Ratios:

 

 

 

 

 

Loans held-in-portfolio

$31,523,188

 

$30,370,936

 

$28,855,372

Non-performing loans held-in-portfolio to loans held-in-portfolio

1.44%

 

1.57%

 

2.19%

Allowance for credit losses to loans held-in-portfolio

2.23

 

2.24

 

2.49

Allowance for credit losses to non-performing loans, excluding loans held-for-sale

155.07

 

142.65

 

113.55

Refer to Table K for additional information.

 

 

 

 

 

Provision for Credit Losses (Benefit) - Loan Portfolios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Quarters ended

 

Nine months ended

(In thousands)

 

30-Sep-22

 

30-Jun-22

 

30-Sep-21

 

30-Sep-22

30-Sep-21

Provision for credit losses (benefit) - loan portfolios:

 

 

 

 

 

 

 

 

 

BPPR

 

$28,694

 

$9,128

 

$(35,992

)

 

$25,161

$(98,456

)

Popular U.S.

 

10,825

 

733

 

(22,653

)

 

9,814

(53,468

)

Total provision for credit losses (benefit) - loan portfolios

 

$39,519

 

$9,861

 

$(58,645

)

 

$34,975

$(151,924

)

Credit Quality by Segment

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

(In thousands)

Quarters ended

 

BPPR

 

30-Sep-22

 

30-Jun-22

 

30-Sep-21

 

Provision for credit losses (benefit) - loan portfolios

 

$28,694

 

 

$9,128

 

 

$(35,992

)

 

Net charge-offs (recoveries)

 

18,396

 

 

5,332

 

 

9,336

 

 

Total non-performing loans held-in-portfolio

410,215

 

 

444,831

 

 

608,871

 

 

Allowance / loans held-in-portfolio

2.65

%

 

2.70

%

 

2.92

%

 

Allowance / non-performing loans held-in-portfolio

144.05

%

 

130.52

%

 

101.30

%

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

Popular U.S.

 

30-Sep-22

 

30-Jun-22

 

30-Sep-21

 

Provision for credit losses (benefit) - loan portfolios

 

$10,825

 

 

$733

 

 

$(22,653

)

 

Net charge-offs (recoveries)

 

(164

)

 

741

 

 

(513

)

 

Total non-performing loans held-in-portfolio

 

43,204

 

 

33,093

 

 

23,964

 

 

Allowance / loans held-in-portfolio

1.21

%

 

1.14

%

 

1.32

%

 

Allowance / non-performing loans held-in-portfolio

259.61

%

 

305.72

%

 

424.79

%

 

Financial Condition Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

(In thousands)

30-Sep-22

 

30-Jun-22

 

30-Sep-21

Cash and money market investments

$5,992,360

 

$10,215,946

 

$18,065,211

Investment securities

30,434,052

 

28,138,453

 

24,697,876

Loans

31,523,188

 

30,370,936

 

28,855,372

Total assets

70,729,675

 

71,501,931

 

74,189,163

Deposits

64,819,327

 

65,327,664

 

66,013,561

Borrowings

1,300,984

 

959,135

 

1,263,413

Total liabilities

67,054,837

 

67,208,582

 

68,206,192

Stockholders’ equity

3,674,838

 

4,293,349

 

5,982,971

Total assets amounted to $70.7 billion at September 30, 2022, a decrease of $0.8 billion from the second quarter of 2022, driven by:

  • A decrease in aggregated cash and money market investments of $4.2 billion due in part to a decrease in deposit balances and the purchase of investment securities and growth in loan portfolios;

partially offset by:

  • an increase in debt securities available-for-sale of $2.0 billion. The increase is driven by purchases of 3-month maturity U.S. Treasury securities that currently provide a higher tax-effected yield than overnight fed funds, offset by maturities and paydowns;
  • an increase in debt securities held-to-maturity of $290.0 million due to the purchase of U.S. Treasury securities offset by maturities and paydowns; and
  • an increase in loans held-in-portfolio of $1.2 billion across all loan categories. The increase was mainly due to commercial loans growth at both BPPR and PB and an increase in consumer loans, mainly at BPPR, including auto loans, credit cards and other consumer loans. BPPR’s commercial loan growth included U.S. region loans of $53.7 million participated between BPPR and PB;
  • an increase of $107.1 million in goodwill due to the $116.1 million recorded in connection with the Evertec Business Acquisition Transaction, offset by the impairment of $9.0 million related to the K2 Acquisition.

Total liabilities decreased by $0.2 billion from the second quarter of 2022, driven by:

  • a decrease of $0.5 billion in deposits, mainly in Puerto Rico related to time deposits managed through the Corporation’s Fiduciary Services Division, offset by an increase in public sector accounts;

partially offset by:

  • an increase in borrowings of $341.5 million, mainly due to advances from the FHLB at PB.

Stockholders' equity decreased by $618.5 million from the second quarter of 2022, principally due to an increase in accumulated unrealized losses on debt securities available-for-sale by $781.9 million due to a decline in the fair value of fixed-rate debt securities as a result of the rising interest rate environment, the net effect of $231 million related to the accelerated share repurchase agreement entered into during August 2022 and to dividends, partially offset by the net income of $422.4 million for the quarter.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.04%, $50.26 and $38.69, respectively, at September 30, 2022, compared to 16.39%, $55.78 and $46.18 at June 30, 2022. 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 acquisition of certain assets and assumption of certain liabilities from Evertec and the transactions described in this press release (the “Transaction”) and Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings, new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. Other factors include Popular’s ability to successfully transition and integrate the assets acquired as part of the Transaction, related operations, employees and third party contractors; unexpected costs, including, without limitation, costs due to exposure to any unrecorded liabilities or issues not identified during due diligence investigation of the Transaction or that are not subject to indemnification or reimbursement by Evertec; operational risks that may affect Popular and other risks arising from the acquisition of the acquired assets or by adverse effects on relationships with customers, employees and service providers and business and other risks arising from the extension of Popular’s current commercial agreements with Evertec. 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 Annual Report on Form 10-K for the year ended December 31, 2021, in our Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022 and in our Form 10-Q for the quarter ended September 30, 2022 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 Wednesday, October 26, 2022 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 1-844-200-6205 (Toll Free) or 1-646-904-5544 (Local). The dial-in access code is 775117.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Thursday, November 24, 2022. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 982947.

An electronic version of this press release can be found at the Corporation’s website: www.popular.com.

Popular, Inc.

Financial Supplement to Third Quarter 2022 Earnings Release

 

Table A - Selected Ratios and Other Information

 

Table B - Consolidated Statement of Operations

 

Table C - Consolidated Statement of Financial Condition

 

Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER

 

Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE

 

Table F - Mortgage Banking Activities and Other Service Fees

 

Table G - Loans and Deposits

 

Table H - Loan Delinquency - PUERTO RICO OPERATIONS

 

Table I - Loan Delinquency - POPULAR U.S. OPERATIONS

 

Table J - Loan Delinquency - CONSOLIDATED

 

Table K - Non-Performing Assets

 

Table L - Activity in Non-Performing Loans

 

Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios

 

Table N - Allowance for Credit Losses - Loan Portfolios - CONSOLIDATED

 

Table O - Allowance for Credit Losses - Loan Portfolios - PUERTO RICO OPERATIONS

 

Table P - Allowance for Credit Losses - Loan Portfolios - POPULAR U.S. OPERATIONS

 

Table Q - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to Third Quarter 2022 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

 

 

 

 

 

Quarters ended

Nine months ended

 

30-Sep-22

30-Jun-22

30-Sep-21

30-Sep-22

30-Sep-21

Basic EPS

$5.71

$2.77

$3.09

$11.09

$8.89

Diluted EPS

$5.70

$2.77

$3.09

$11.07

$8.87

Average common shares outstanding

73,955,184

76,171,784

80,126,166

76,173,783

81,864,634

Average common shares outstanding - assuming dilution

74,057,332

76,286,883

80,274,942

76,304,219

82,014,113

Common shares outstanding at end of period

72,673,344

76,576,397

79,841,564

72,673,344

79,841,564

Market value per common share

$72.06

$76.93

$77.67

$72.06

$77.67

Market capitalization - (In millions)

$5,237

$5,891

$6,201

$5,237

$6,201

Return on average assets

2.31%

1.17%

1.34%

1.54%

1.39%

Return on average common equity

27.72%

14.58%

17.10%

19.02%

17.09%

Net interest margin (non-taxable equivalent basis)

3.32%

3.09%

2.77%

3.05%

2.92%

Net interest margin (taxable equivalent basis) -non-GAAP

3.71%

3.45%

3.04%

3.39%

3.23%

Common equity per share

$50.26

$55.78

$74.66

$50.26

$74.66

Tangible common book value per common share (non-GAAP) [1]

$38.69

$46.18

$66.01

$38.69

$66.01

Tangible common equity to tangible assets (non-GAAP) [1]

4.02%

5.00%

7.17%

4.02%

7.17%

Return on average tangible common equity [1]

31.86%

16.70%

19.44%

21.78%

19.46%

Tier 1 capital

16.10%

16.46%

17.43%

16.10%

17.43%

Total capital

17.92%

18.29%

19.90%

17.92%

19.90%

Tier 1 leverage

7.65%

7.56%

7.38%

7.65%

7.38%

Common Equity Tier 1 capital

16.04%

16.39%

17.36%

16.04%

17.36%

[1] Refer to Table Q for reconciliation to GAAP financial measures.

POPULAR, INC.

Financial Supplement to Third Quarter 2022 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

 

 

Quarters ended

Variance

Quarter ended

Variance

Nine months ended

 

 

 

 

Q3 2022

 

Q3 2022

 

 

(In thousands, except per share information)

30-Sep-22

30-Jun-22

vs. Q2 2022

30-Sep-21

vs. Q3 2021

30-Sep-22

30-Sep-21

Interest income:

 

 

 

 

 

 

 

 

Loans

$481,088

 

$446,245

 

$34,843

 

$435,296

 

$45,792

 

$1,354,124

 

$1,303,726

 

 

Money market investments

36,966

 

23,742

 

13,224

 

6,914

 

30,052

 

67,172

 

14,300

 

 

Investment securities

133,181

 

101,774

 

31,407

 

87,952

 

45,229

 

331,421

 

265,348

 

 

Total interest income

651,235

 

571,761

 

79,474

 

530,162

 

121,073

 

1,752,717

 

1,583,374

 

Interest expense:

 

 

 

 

 

 

 

 

Deposits

60,897

 

27,827

 

33,070

 

27,029

 

33,868

 

113,507

 

85,290

 

 

Short-term borrowings

921

 

248

 

673

 

54

 

867

 

1,249

 

259

 

 

Long-term debt

9,798

 

9,824

 

(26

)

13,686

 

(3,888

)

30,168

 

41,518

 

 

Total interest expense

71,616

 

37,899

 

33,717

 

40,769

 

30,847

 

144,924

 

127,067

 

Net interest income

579,619

 

533,862

 

45,757

 

489,393

 

90,226

 

1,607,793

 

1,456,307

 

Provision for credit losses (benefit)

39,637

 

9,362

 

30,275

 

(61,173

)

100,810

 

33,499

 

(160,414

)

Net interest income after provision for credit losses (benefit)

539,982

 

524,500

 

15,482

 

550,566

 

(10,584

)

1,574,294

 

1,616,721

 

Service charges on deposit accounts

40,006

 

41,809

 

(1,803

)

41,312

 

(1,306

)

122,528

 

121,085

 

Other service fees

86,402

 

81,451

 

4,951

 

80,445

 

5,957

 

244,987

 

227,455

 

Mortgage banking activities

9,448

 

13,575

 

(4,127

)

8,307

 

1,141

 

35,888

 

33,098

 

Net gain on sale of debt securities

-

 

-

 

-

 

23

 

(23

)

-

 

23

 

Net (loss) gain, including impairment, on equity securities

(1,448

)

(4,109

)

2,661

 

(401

)

(1,047

)

(7,651

)

1,585

 

Net (loss) gain on trading account debt securities

(274

)

51

 

(325

)

58

 

(332

)

(946

)

(34

)

Net loss on sale of loans, including valuation adjustments on loans held-for-sale

-

 

-

 

-

 

-

 

-

 

-

 

(73

)

Adjustments to indemnity reserves on loans sold

1,715

 

170

 

1,545

 

2,038

 

(323

)

1,140

 

3,008

 

Other operating income

290,645

 

24,464

 

266,181

 

37,476

 

253,169

 

342,651

 

91,304

 

 

Total non-interest income

426,494

 

157,411

 

269,083

 

169,258

 

257,236

 

738,597

 

477,451

 

Operating expenses:

 

 

 

 

 

 

 

Personnel costs

 

 

 

 

 

 

 

 

Salaries

115,887

 

101,847

 

14,040

 

95,185

 

20,702

 

316,407

 

274,814

 

 

Commissions, incentives and other bonuses

32,003

 

29,787

 

2,216

 

25,892

 

6,111

 

93,129

 

85,484

 

 

Pension, postretirement and medical insurance

17,120

 

13,730

 

3,390

 

13,893

 

3,227

 

43,633

 

38,106

 

 

Other personnel costs, including payroll taxes

28,833

 

23,424

 

5,409

 

22,677

 

6,156

 

76,458

 

72,926

 

 

Total personnel costs

193,843

 

168,788

 

25,055

 

157,647

 

36,196

 

529,627

 

471,330

 

Net occupancy expenses

27,420

 

26,214

 

1,206

 

24,896

 

2,524

 

78,357

 

75,471

 

Equipment expenses

26,626

 

25,088

 

1,538

 

22,537

 

4,089

 

75,193

 

66,917

 

Other taxes

15,966

 

15,780

 

186

 

14,459

 

1,507

 

47,461

 

41,623

 

Professional fees

 

 

 

 

 

 

 

 

Collections, appraisals and other credit related fees

2,527

 

2,802

 

(275

)

3,166

 

(639

)

7,555

 

9,972

 

 

Programming, processing and other technology services

59,431

 

73,305

 

(13,874

)

69,221

 

(9,790

)

202,110

 

202,739

 

 

Legal fees, excluding collections

2,830

 

3,091

 

(261

)

2,535

 

295

 

9,875

 

7,267

 

 

Other professional fees

47,433

 

35,674

 

11,759

 

29,787

 

17,646

 

116,050

 

85,832

 

 

Total professional fees

112,221

 

114,872

 

(2,651

)

104,709

 

7,512

 

335,590

 

305,810

 

Communications

6,224

 

5,993

 

231

 

6,133

 

91

 

18,364

 

18,971

 

Business promotion

24,348

 

21,353

 

2,995

 

18,116

 

6,232

 

60,784

 

47,148

 

FDIC deposit insurance

6,610

 

6,463

 

147

 

7,181

 

(571

)

20,445

 

18,891

 

Other real estate owned (OREO) income

(2,444

)

(7,806

)

5,362

 

(1,722

)

(722

)

(12,963

)

(10,554

)

Credit and debit card processing, volume, interchange and other expenses

14,762

 

11,375

 

3,387

 

12,960

 

1,802

 

38,646

 

36,331

 

Other operating expenses

 

 

 

 

 

 

 

 

Operational losses

7,145

 

4,061

 

3,084

 

7,147

 

(2

)

23,031

 

21,571

 

 

All other

33,579

 

13,302

 

20,277

 

13,322

 

20,257

 

58,696

 

35,283

 

 

Total other operating expenses

40,724

 

17,363

 

23,361

 

20,469

 

20,255

 

81,727

 

56,854

 

Amortization of intangibles

795

 

795

 

-

 

783

 

12

 

2,481

 

3,089

 

Goodwill impairment charge

9,000

 

-

 

9,000

 

-

 

9,000

 

9,000

 

-

 

 

Total operating expenses

476,095

 

406,278

 

69,817

 

388,168

 

87,927

 

1,284,712

 

1,131,881

 

Income before income tax

490,381

 

275,633

 

214,748

 

331,656

 

158,725

 

1,028,179

 

962,291

 

Income tax expense

67,986

 

64,212

 

3,774

 

83,542

 

(15,556

)

182,677

 

233,466

 

Net income

$422,395

 

$211,421

 

$210,974

 

$248,114

 

$174,281

 

$845,502

 

$728,825

 

Net income applicable to common stock

$422,042

 

$211,068

 

$210,974

 

$247,761

 

$174,281

 

$844,443

 

$727,766

 

Net income per common share - basic

$5.71

 

$2.77

 

$2.94

 

$3.09

 

$2.62

 

$11.09

 

$8.89

 

Net income per common share - diluted

$5.70

 

$2.77

 

$2.93

 

$3.09

 

$2.61

 

$11.07

 

$8.87

 

Dividends Declared per Common Share

$0.55

 

$0.55

 

$-

 

$0.45

 

$0.10

 

$1.65

 

$1.30

 

Popular, Inc.

Financial Supplement to Third Quarter 2022 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

 

 

 

 

 

 

Variance

 

 

 

 

 

 

Q3 2022 vs.

(In thousands)

30-Sep-22

30-Jun-22

30-Sep-21

Q2 2022

Assets:

 

 

 

 

Cash and due from banks

$2,017,312

 

$528,590

 

$538,973

 

$1,488,722

 

Money market investments

3,975,048

 

9,687,356

 

17,526,238

 

(5,712,308

)

Trading account debt securities, at fair value

30,271

 

32,317

 

36,064

 

(2,046

)

Debt securities available-for-sale, at fair value

28,264,148

 

26,266,251

 

24,391,226

 

1,997,897

 

Debt securities held-to-maturity, at amortized cost

1,953,710

 

1,664,015

 

85,655

 

289,695

 

 

 

Less: Allowance for credit losses

7,210

 

7,495

 

9,222

 

(285

)

 

 

Total debt securities held-to-maturity, net

1,946,500

 

1,656,520

 

76,433

 

289,980

 

Equity securities

185,923

 

175,870

 

184,931

 

10,053

 

Loans held-for-sale, at lower of cost or fair value

8,065

 

28,546

 

91,313

 

(20,481

)

Loans held-in-portfolio

31,805,921

 

30,643,443

 

29,089,241

 

1,162,478

 

 

 

Less: Unearned income

282,733

 

272,507

 

233,869

 

10,226

 

 

 

Allowance for credit losses

703,096

 

681,750

 

718,575

 

21,346

 

 

 

Total loans held-in-portfolio, net

30,820,092

 

29,689,186

 

28,136,797

 

1,130,906

 

Premises and equipment, net

492,685

 

490,152

 

487,526

 

2,533

 

Other real estate

93,239

 

92,137

 

76,828

 

1,102

 

Accrued income receivable

224,307

 

216,780

 

200,649

 

7,527

 

Mortgage servicing rights, at fair value

130,541

 

129,877

 

116,567

 

664

 

Other assets

1,700,378

 

1,773,523

 

1,634,839

 

(73,145

)

Goodwill

827,428

 

720,293

 

671,122

 

107,135

 

Other intangible assets

13,738

 

14,533

 

19,657

 

(795

)

Total assets

$70,729,675

 

$71,501,931

 

$74,189,163

 

$(772,256

)

Liabilities and Stockholders’ Equity:

 

 

 

 

Liabilities:

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest bearing

$17,605,339

 

$16,663,259

 

$15,147,567

 

$942,080

 

 

 

Interest bearing

47,213,988

 

48,664,405

 

50,865,994

 

(1,450,417

)

 

 

Total deposits

64,819,327

 

65,327,664

 

66,013,561

 

(508,337

)

Assets sold under agreements to repurchase

162,450

 

70,925

 

86,470

 

91,525

 

Other short-term borrowings

250,000

 

-

 

-

 

250,000

 

Notes payable

888,534

 

888,210

 

1,176,943

 

324

 

Other liabilities

934,526

 

921,783

 

929,218

 

12,743

 

Total liabilities

67,054,837

 

67,208,582

 

68,206,192

 

(153,745

)

Stockholders’ equity:

 

 

 

 

Preferred stock

22,143

 

22,143

 

22,143

 

-

 

Common stock

1,046

 

1,046

 

1,046

 

-

 

Surplus

4,652,508

 

4,576,478

 

4,569,641

 

76,030

 

Retained earnings

3,694,020

 

3,311,951

 

2,882,340

 

382,069

 

Treasury stock

(1,970,548

)

(1,665,253

)

(1,352,104

)

(305,295

)

Accumulated other comprehensive loss, net of tax

(2,724,331

)

(1,953,016

)

(140,095

)

(771,315

)

 

 

Total stockholders’ equity

3,674,838

 

4,293,349

 

5,982,971

 

(618,511

)

Total liabilities and stockholders’ equity

$70,729,675

 

$71,501,931

 

$74,189,163

 

$(772,256

)

Popular, Inc.

Financial Supplement to Third Quarter 2022 Earnings Release

Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

Variance

 

 

 

 

30-Sep-22

 

30-Jun-22

 

30-Sep-21

 

Q3 2022 vs. Q2 2022

 

Q3 2022 vs. Q3 2021

 

($ amounts in millions)

Average balance

Income / Expense

Yield / Rate

 

Average balance

Income / Expense

Yield / Rate

 

Average balance

Income / Expense

Yield / Rate

 

Average balance

Income / Expense

Yield / Rate

 

Average balance

Income / Expense

Yield / Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market investments

6,721

 

37.0

2.18

%

11,513

 

23.7

0.83

%

18,041

 

6.9

0.15

%

(4,792

)

13.3

 

1.35

 

%

(11,320

)

30.1

 

2.03

 

%

 

 

Investment securities

31,859

 

186.8

2.33

%

27,748

 

150.9

2.18

%

23,154

 

121.9

2.10

%

4,111

 

35.9

 

0.15

 

%

8,705

 

64.9

 

0.23

 

%

 

 

Trading securities

40

 

0.6

6.09

%

65

 

1.1

6.66

%

84

 

1.0

4.97

%

(25

)

(0.5

)

(0.57

)

%

(44

)

(0.4

)

1.12

 

%

 

Total money market, investment and trading securities

$38,620

 

$224.4

2.31

%

$39,326

 

$175.7

1.79

%

$41,279

 

$129.8

1.25

%

($706

)

$48.7

 

0.52

 

%

($2,659

)

$94.6

 

1.06

 

%

 

Loans:

 

 

Commercial

14,750

 

205.2

5.52

 

14,227

 

183.0

5.16

 

13,265

 

179.2

5.36

 

523

 

22.2

 

0.36

 

 

1,485

 

26.0

 

0.16

 

 

 

 

Construction

835

 

13.4

6.38

 

781

 

11.1

5.71

 

854

 

11.6

5.40

 

54

 

2.3

 

0.67

 

 

(19

)

1.8

 

0.98

 

 

 

 

Mortgage

7,264

 

98.4

5.42

 

7,294

 

97.1

5.33

 

7,652

 

97.8

5.11

 

(30

)

1.3

 

0.09

 

 

(388

)

0.6

 

0.31

 

 

 

 

Consumer

2,818

 

83.4

11.74

 

2,654

 

75.0

11.33

 

2,435

 

67.7

11.03

 

164

 

8.4

 

0.41

 

 

383

 

15.7

 

0.71

 

 

 

 

Auto

3,562

 

71.2

7.93

 

3,499

 

70.1

8.04

 

3,372

 

71.2

8.37

 

63

 

1.1

 

(0.11

)

 

190

 

-

 

(0.44

)

 

 

 

Lease financing

1,503

 

22.2

5.90

 

1,445

 

21.4

5.91

 

1,317

 

19.7

5.99

 

58

 

0.8

 

(0.01

)

 

186

 

2.5

 

(0.09

)

 

 

Total loans

30,732

 

493.8

6.39

 

29,900

 

457.7

6.14

 

28,895

 

447.2

6.15

 

832

 

36.1

 

0.25

 

 

1,837

 

46.6

 

0.24

 

 

 

Total interest earning assets

$69,352

 

$718.2

4.12

%

$69,226

 

$633.4

3.67

%

$70,174

 

$577.0

3.27

%

$126

 

$84.8

 

0.45

 

%

$(822

)

$141.2

 

0.85

 

%

 

 

Allowance for credit losses - loan portfolio

(691

)

 

 

 

(682

)

 

 

 

(778

)

 

 

 

(9

)

 

 

 

87

 

 

 

 

 

 

Allowance for credit losses - investment securities

(7

)

 

 

 

(8

)

 

 

 

(10

)

 

 

 

1

 

 

 

 

3

 

 

 

 

 

 

Other non-interest earning assets

3,822

 

 

 

 

3,787

 

 

 

 

3,901

 

 

 

 

35

 

 

 

 

(79

)

 

 

 

 

Total average assets

$72,476

 

 

 

 

$72,323

 

 

 

 

$73,287

 

 

 

 

$153

 

 

 

 

$(811

)

 

 

 

Liabilities and Stockholders' Equity:

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market

$25,993

 

$36.4

0.56

%

$24,897

 

$8.3

0.13

%

$27,773

 

$7.9

0.11

%

$1,096

 

$28.1

 

0.43

 

%

$(1,780

)

$28.5

 

0.45

 

%

 

 

Savings

15,514

 

8.0

0.20

 

16,363

 

6.9

0.17

 

15,621

 

6.4

0.16

 

(849

)

1.1

 

0.03

 

 

(107

)

1.6

 

0.04

 

 

 

 

Time deposits

6,957

 

16.5

0.94

 

7,044

 

12.6

0.72

 

6,957

 

12.7

0.73

 

(87

)

3.9

 

0.22

 

 

-

 

3.8

 

0.21

 

 

 

 

Total interest-bearing deposits

48,464

 

60.9

0.50

 

48,304

 

27.8

0.23

 

50,351

 

27.0

0.21

 

160

 

33.1

 

0.27

 

 

(1,887

)

33.9

 

0.29

 

 

 

Borrowings

1,068

 

10.7

4.01

 

1,043

 

10.1

3.87

 

1,284

 

13.7

4.28

 

25

 

0.6

 

0.14

 

 

(216

)

(3.0

)

(0.27

)

 

 

 

Total interest-bearing liabilities

49,532

 

71.6

0.57

 

49,347

 

37.9

0.31

 

51,635

 

40.7

0.31

 

185

 

33.7

 

0.26

 

 

(2,103

)

30.9

 

0.26

 

 

 

 

Net interest spread

 

 

3.55

%

 

 

3.36

%

 

 

2.96

%

 

 

0.19

 

%

 

 

0.59

 

%

 

Non-interest bearing deposits

15,872

 

 

 

 

16,254

 

 

 

 

14,955

 

 

 

 

(382

)

 

 

 

917

 

 

 

 

 

Other liabilities

1,010

 

 

 

 

894

 

 

 

 

927

 

 

 

 

116

 

 

 

 

83

 

 

 

 

 

Stockholders' equity

6,062

 

 

 

 

5,828

 

 

 

 

5,770

 

 

 

 

234

 

 

 

 

292

 

 

 

 

 

 

Total average liabilities and stockholders' equity

$72,476

 

 

 

 

$72,323

 

 

 

 

$73,287

 

 

 

 

$153

 

 

 

 

$(811

)

 

 

 

Net interest income / margin on a taxable equivalent basis (Non-GAAP)

$646.6

3.71

%

 

$595.5

3.45

%

 

$536.3

3.04

%

 

$51.1

 

0.26

 

%

 

$110.3

 

0.67

 

%

Taxable equivalent adjustment

67.0

 

 

 

61.6

 

 

 

46.9

 

 

 

5.4

 

 

 

 

20.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income / margin non-taxable equivalent basis (GAAP)

$579.6

3.32

%

 

$533.9

3.09

%

 

$489.4

2.77

%

 

$45.7

 

0.23

 

%

 

$90.2

 

0.55

 

%

Popular, Inc.

Financial Supplement to Third Quarter 2022 Earnings Release

Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE

(Unaudited)

 

 

Nine months ended

 

 

 

 

 

 

 

 

30-Sep-22

 

30-Sep-21

 

Variance

 

 

 

 

Average

Income /

Yield /

 

Average

Income /

Yield /

 

Average

Income /

Yield /

 

($ amounts in millions)

balance

Expense

Rate

 

balance

Expense

Rate

 

balance

Expense

Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market investments

10,969

 

67.2

0.82

%

15,364

 

14.3

0.12

%

(4,395

)

52.9

 

0.70

 

%

 

 

Investment securities

29,371

 

475.1

2.16

%

22,302

 

382.3

2.29

%

7,069

 

92.8

 

(0.13

)

%

 

 

Trading securities

59

 

2.7

6.23

%

85

 

3.2

5.06

%

(26

)

(0.5

)

1.17

 

%

 

Total money market, investment and trading securities

$40,399

 

$545.0

1.80

%

$37,751

 

$399.8

1.42

%

$2,648

 

$145.2

 

0.38

 

%

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

14,245

 

560.4

5.26

 

13,475

 

535.1

5.32

 

770

 

25.3

 

(0.06

)

 

 

 

Construction

782

 

34.3

5.87

 

874

 

35.1

5.39

 

(92

)

(0.8

)

0.48

 

 

 

 

Mortgage

7,315

 

292.3

5.33

 

7,761

 

295.6

5.08

 

(446

)

(3.3

)

0.25

 

 

 

 

Consumer

2,670

 

228.4

11.44

 

2,460

 

206.9

11.24

 

210

 

21.5

 

0.20

 

 

 

 

Auto

3,507

 

210.6

8.03

 

3,285

 

209.5

8.55

 

222

 

1.1

 

(0.52

)

 

 

 

Lease financing

1,447

 

64.2

5.92

 

1,265

 

57.1

6.01

 

182

 

7.1

 

(0.09

)

 

 

Total loans

29,966

 

1,390.2

6.20

 

29,120

 

1,339.3

6.16

 

846

 

50.9

 

0.04

 

 

 

Total interest earning assets

$70,365

 

$1,935.2

3.67

%

$66,871

 

$1,739.1

3.48

%

$3,494

 

$196.1

 

0.19

 

%

 

 

Allowance for credit losses - loan portfolio

(689

)

 

 

 

(822

)

 

 

 

133

 

 

 

 

 

 

Allowance for credit losses - investment securities

(8

)

 

 

 

(10

)

 

 

 

2

 

 

 

 

 

 

Other non-interest earning assets

3,789

 

 

 

 

3,900

 

 

 

 

(111

)

 

 

 

 

Total average assets

$73,457

 

 

 

 

$69,939

 

 

 

 

$3,518

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market

$26,385

 

$52.1

0.26

%

$25,201

 

$24.2

0.13

%

$1,184

 

$27.9

 

0.13

 

%

 

 

Savings

16,101

 

21.4

0.18

 

15,127

 

20.3

0.18

 

974

 

1.1

 

-

 

 

 

 

Time deposits

6,913

 

40.0

0.77

 

7,108

 

40.8

0.77

 

(195

)

(0.8

)

-

 

 

 

 

Total interest-bearing deposits

49,399

 

113.5

0.31

 

47,436

 

85.3

0.24

 

1,963

 

28.2

 

0.07

 

 

 

Borrowings

1,072

 

31.4

3.92

 

1,315

 

41.8

4.25

 

(243

)

(10.4

)

(0.33

)

 

 

 

Total interest-bearing liabilities

50,471

 

144.9

0.38

 

48,751

 

127.1

0.35

 

1,720

 

17.8

 

0.03

 

 

 

 

Net interest spread

 

 

3.29

%

 

 

3.13

%

 

 

0.16

 

%

 

Non-interest bearing deposits

16,088

 

 

 

 

14,428

 

 

 

 

1,660

 

 

 

 

 

Other liabilities

940

 

 

 

 

1,044

 

 

 

 

(104

)

 

 

 

 

Stockholders' equity

5,958

 

 

 

 

5,716

 

 

 

 

242

 

 

 

 

 

 

Total average liabilities and stockholders' equity

$73,457

 

 

 

 

$69,939

 

 

 

 

$3,518

 

 

 

 

Net interest income / margin on a taxable equivalent basis (Non-GAAP)

$1,790.3

3.39

%

 

$1,612.0

3.23

%

 

$178.3

 

0.16

 

%

Taxable equivalent adjustment

182.5

 

 

 

155.7

 

 

 

26.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income / margin non-taxable equivalent basis (GAAP)

$1,607.8

3.05

%

 

$1,456.3

2.92

%

 

$151.5

 

0.13

 

%

Popular, Inc.

 

 

 

 

 

 

 

 

Financial Supplement to Third Quarter 2022 Earnings Release

 

 

 

 

Table F - Mortgage Banking Activities and Other Service Fees

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Banking Activities

 

 

 

 

 

 

 

 

 

Quarters ended

Variance

Nine months ended

Variance

(In thousands)

30-Sep-22

30-Jun-22

30-Sep-21

Q3 2022 vs.Q2 2022

Q3 2022 vs.Q3 2021

30-Sep-22

30-Sep-21

2022 vs. 2021

Mortgage servicing fees, net of fair value adjustments:

 

 

 

 

 

 

 

 

 

Mortgage servicing fees

$9,126

 

$9,186

 

$9,376

 

$(60

)

$(250

)

$27,635

 

$28,613

 

$(978

)

 

Mortgage servicing rights fair value adjustments

(499

)

2,257

 

(5,979

)

(2,756

)

5,480

 

2,846

 

(11,706

)

14,552

 

Total mortgage servicing fees, net of fair value adjustments

8,627

 

11,443

 

3,397

 

(2,816

)

5,230

 

30,481

 

16,907

 

13,574

 

Net gain (loss) on sale of loans, including valuation on loans held-for-sale

1,124

 

36

 

6,084

 

1,088

 

(4,960

)

(374

)

16,256

 

(16,630

)

Trading account (loss) profit:

 

 

 

 

 

 

 

 

 

Unrealized losses on outstanding derivative positions

-

 

(2

)

-

 

2

 

-

 

-

 

-

 

-

 

 

Realized (losses) gains on closed derivative positions

(240

)

2,430

 

(1,004

)

(2,670

)

764

 

6,325

 

632

 

5,693

 

Total trading account (loss) profit

(240

)

2,428

 

(1,004

)

(2,668

)

764

 

6,325

 

632

 

5,693

 

Losses on repurchased loans, including interest advances

(63

)

(332

)

(170

)

269

 

107

 

(544

)

(697

)

153

 

Total mortgage banking activities

$9,448

 

$13,575

 

$8,307

 

$(4,127

)

$1,141

 

$35,888

 

$33,098

 

$2,790

 

 

 

 

 

 

 

 

 

 

 

 

Other Service Fees

 

 

 

 

 

 

 

 

 

 

Quarters ended

Variance

Nine months ended

Variance

(In thousands)

 

30-Sep-22

30-Jun-22

30-Sep-21

Q3 2022 vs.Q2 2022

Q3 2022 vs.Q3 2021

30-Sep-22

30-Sep-21

2022 vs. 2021

Other service fees:

 

 

 

 

 

 

 

 

 

 

Debit card fees

 

$12,133

$12,882

$12,210

$(749

)

$(77

)

$36,794

$36,245

$549

 

 

Insurance fees

 

15,697

12,017

14,385

3,680

 

1,312

 

41,870

39,986

1,884

 

 

Credit card fees

 

37,829

38,155

33,409

(326

)

4,420

 

109,626

94,826

14,800

 

 

Sale and administration of investment products

 

5,952

6,017

6,216

(65

)

(264

)

17,760

17,726

34

 

 

Trust fees

 

5,506

6,143

6,453

(637

)

(947

)

17,576

18,460

(884

)

 

Other fees

 

9,285

6,237

7,772

3,048

 

1,513

 

21,361

20,212

1,149

 

Total other service fees

 

$86,402

$81,451

$80,445

$4,951

 

$5,957

 

$244,987

$227,455

$17,532

 

Popular, Inc.

 

 

 

 

 

Financial Supplement to Third Quarter 2022 Earnings Release

Table G - Loans and Deposits

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Loans - Ending Balances

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

30-Sep-22

30-Jun-22

30-Sep-21

Q3 2022 vs.Q2 2022

Q3 2022 vs.Q3 2021

Loans held-in-portfolio:

 

 

 

 

Commercial

$15,366,859

$14,545,301

$13,303,671

$821,558

 

$2,063,188

 

Construction

816,290

790,920

801,040

25,370

 

15,250

 

Leasing

1,538,504

1,480,222

1,348,679

58,282

 

189,825

 

Mortgage

7,311,713

7,261,955

7,539,152

49,758

 

(227,439

)

Auto

3,528,904

3,489,976

3,376,694

38,928

 

152,210

 

Consumer

2,960,918

2,802,562

2,486,136

158,356

 

474,782

 

Total loans held-in-portfolio

$31,523,188

$30,370,936

$28,855,372

$1,152,252

 

$2,667,816

 

Loans held-for-sale:

 

 

 

 

 

Mortgage

8,065

28,546

91,313

(20,481

)

(83,248

)

Total loans held-for-sale

$8,065

$28,546

$91,313

$(20,481

)

$(83,248

)

Total loans

$31,531,253

$30,399,482

$28,946,685

$1,131,771

 

$2,584,568

 

Deposits - Ending Balances

 

 

 

 

 

Variance

(In thousands)

30-Sep-22

30-Jun-22

30-Sep-21

Q3 2022 vs. Q2 2022

Q3 2022 vs.Q3 2021

Demand deposits [1]

$28,773,328

$27,798,243

$25,495,481

$975,085

 

$3,277,847

 

Savings, NOW and money market deposits (non-brokered)

28,388,057

29,672,655

32,867,805

(1,284,598

)

(4,479,748

)

Savings, NOW and money market deposits (brokered)

728,651

761,244

718,155

(32,593

)

10,496

 

Time deposits (non-brokered)

6,731,588

6,896,786

6,906,509

(165,198

)

(174,921

)

Time deposits (brokered CDs)

197,703

198,736

25,611

(1,033

)

172,092

 

Total deposits

$64,819,327

$65,327,664

$66,013,561

$(508,337

)

$(1,194,234

)

[1] Includes interest and non-interest bearing demand deposits.

 

 

 

 

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to Third Quarter 2022 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table H - Loan Delinquency - Puerto Rico Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Sep-22

Puerto Rico

 

 

 

 

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

 

$

546

 

$

-

 

$

251

 

$

797

 

$

276,521

 

$

277,318

 

 

$

251

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

3,005

 

 

789

 

 

21,443

 

 

25,237

 

 

2,820,803

 

 

2,846,040

 

 

 

21,443

 

 

-

 

Owner occupied

 

 

10,992

 

 

7,834

 

 

28,379

 

 

47,205

 

 

1,540,932

 

 

1,588,137

 

 

 

28,379

 

 

-

Commercial and industrial

 

 

7,105

 

 

1,139

 

 

38,003

 

 

46,247

 

 

3,547,841

 

 

3,594,088

 

 

 

37,375

 

 

628

Construction

 

 

-

 

 

1,087

 

 

-

 

 

1,087

 

 

210,480

 

 

211,567

 

 

 

-

 

 

-

Mortgage

 

 

237,316

 

 

89,802

 

 

581,378

 

 

908,496

 

 

5,147,347

 

 

6,055,843

 

 

 

252,773

 

 

328,605

Leasing

 

 

14,487

 

 

2,740

 

 

5,697

 

 

22,924

 

 

1,515,580

 

 

1,538,504

 

 

 

5,697

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

7,268

 

 

4,481

 

 

10,361

 

 

22,110

 

 

966,406

 

 

988,516

 

 

 

-

 

 

10,361

 

Home equity lines of credit

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2,957

 

 

2,957

 

 

 

-

 

 

-

 

Personal

 

 

13,725

 

 

7,348

 

 

18,137

 

 

39,210

 

 

1,478,746

 

 

1,517,956

 

 

 

18,117

 

 

20

 

Auto

 

 

71,230

 

 

21,852

 

 

34,432

 

 

127,514

 

 

3,401,390

 

 

3,528,904

 

 

 

34,432

 

 

-

 

Other

 

 

708

 

 

768

 

 

12,025

 

 

13,501

 

 

124,950

 

 

138,451

 

 

 

11,748

 

 

277

Total

 

$

366,382

 

$

137,840

 

$

750,106

 

$

1,254,328

 

$

21,033,953

 

$

22,288,281

 

 

$

410,215

 

$

339,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Jun-22

Puerto Rico

 

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

 

Accruing

(In thousands)

 

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

1,992

 

$

-

 

$

254

 

$

2,246

 

$

234,308

 

$

236,554

 

 

$

254

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

1,379

 

 

110

 

 

20,435

 

 

21,924

 

 

2,630,194

 

 

2,652,118

 

 

 

20,435

 

 

-

 

Owner occupied

 

 

4,894

 

 

2,860

 

 

32,155

 

 

39,909

 

 

1,366,840

 

 

1,406,749

 

 

 

32,155

 

 

-

Commercial and industrial

 

 

2,534

 

 

1,526

 

 

44,176

 

 

48,236

 

 

3,472,447

 

 

3,520,683

 

 

 

43,649

 

 

527

Construction

 

 

498

 

 

-

 

 

-

 

 

498

 

 

161,864

 

 

162,362

 

 

 

-

 

 

-

Mortgage

 

 

211,483

 

 

82,898

 

 

681,757

 

 

976,138

 

 

5,065,785

 

 

6,041,923

 

 

 

284,670

 

 

397,087

Leasing

 

 

9,970

 

 

2,164

 

 

4,665

 

 

16,799

 

 

1,463,423

 

 

1,480,222

 

 

 

4,665

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

5,785

 

 

4,142

 

 

8,896

 

 

18,823

 

 

947,876

 

 

966,699

 

 

 

-

 

 

8,896

 

Home equity lines of credit

 

 

-

 

 

-

 

 

-

 

 

-

 

 

3,122

 

 

3,122

 

 

 

-

 

 

-

 

Personal

 

 

11,216

 

 

6,043

 

 

19,045

 

 

36,304

 

 

1,351,796

 

 

1,388,100

 

 

 

19,045

 

 

-

 

Auto

 

 

56,577

 

 

13,815

 

 

28,045

 

 

98,437

 

 

3,391,539

 

 

3,489,976

 

 

 

28,045

 

 

-

 

Other

 

 

242

 

 

131

 

 

12,125

 

 

12,498

 

 

120,651

 

 

133,149

 

 

 

11,913

 

 

212

Total

 

$

306,570

 

$

113,689

 

$

851,553

 

$

1,271,812

 

$

20,209,845

 

$

21,481,657

 

 

$

444,831

 

$

406,722

Variance

 

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

 

30-59

 

 

60-89

 

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

 

Accruing

(In thousands)

 

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

(1,446

)

 

$

-

 

 

$

(3

)

 

$

(1,449

)

 

$

42,213

 

 

$

40,764

 

 

 

$

(3

)

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

1,626

 

 

 

679

 

 

 

1,008

 

 

 

3,313

 

 

 

190,609

 

 

 

193,922

 

 

 

 

1,008

 

 

 

-

 

 

Owner occupied

 

 

6,098

 

 

 

4,974

 

 

 

(3,776

)

 

 

7,296

 

 

 

174,092

 

 

 

181,388

 

 

 

 

(3,776

)

 

 

-

 

Commercial and industrial

 

 

4,571

 

 

 

(387

)

 

 

(6,173

)

 

 

(1,989

)

 

 

75,394

 

 

 

73,405

 

 

 

 

(6,274

)

 

 

101

 

Construction

 

 

(498

)

 

 

1,087

 

 

 

-

 

 

 

589

 

 

 

48,616

 

 

 

49,205

 

 

 

 

-

 

 

 

-

 

Mortgage

 

 

25,833

 

 

 

6,904

 

 

 

(100,379

)

 

 

(67,642

)

 

 

81,562

 

 

 

13,920

 

 

 

 

(31,897

)

 

 

(68,482

)

Leasing

 

 

4,517

 

 

 

576

 

 

 

1,032

 

 

 

6,125

 

 

 

52,157

 

 

 

58,282

 

 

 

 

1,032

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

1,483

 

 

 

339

 

 

 

1,465

 

 

 

3,287

 

 

 

18,530

 

 

 

21,817

 

 

 

 

-

 

 

 

1,465

 

 

Home equity lines of credit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(165

)

 

 

(165

)

 

 

 

-

 

 

 

-

 

 

Personal

 

 

2,509

 

 

 

1,305

 

 

 

(908

)

 

 

2,906

 

 

 

126,950

 

 

 

129,856

 

 

 

 

(928

)

 

 

20

 

 

Auto

 

 

14,653

 

 

 

8,037

 

 

 

6,387

 

 

 

29,077

 

 

 

9,851

 

 

 

38,928

 

 

 

 

6,387

 

 

 

-

 

 

Other

 

 

466

 

 

 

637

 

 

 

(100

)

 

 

1,003

 

 

 

4,299

 

 

 

5,302

 

 

 

 

(165

)

 

 

65

 

Total

 

$

59,812

 

 

$

24,151

 

 

$

(101,447

)

 

$

(17,484

)

 

$

824,108

 

 

$

806,624

 

 

 

$

(34,616

)

 

$

(66,831

)

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to Third Quarter 2022 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table I - Loan Delinquency - Popular U.S. Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Sep-22

Popular U.S.

 

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

 

Accruing

(In thousands)

 

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

-

 

$

-

 

$

-

 

$

-

 

$

1,926,791

 

$

1,926,791

 

 

$

-

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

-

 

 

136

 

 

10,631

 

 

10,767

 

 

1,660,668

 

 

1,671,435

 

 

 

10,631

 

 

-

 

Owner occupied

 

 

-

 

 

5,106

 

 

606

 

 

5,712

 

 

1,472,699

 

 

1,478,411

 

 

 

606

 

 

-

Commercial and industrial

 

 

924

 

 

2,144

 

 

5,803

 

 

8,871

 

 

1,975,768

 

 

1,984,639

 

 

 

5,191

 

 

612

Construction

 

 

-

 

 

-

 

 

-

 

 

-

 

 

604,723

 

 

604,723

 

 

 

-

 

 

-

Mortgage

 

 

1,501

 

 

4,558

 

 

21,533

 

 

27,592

 

 

1,228,278

 

 

1,255,870

 

 

 

21,533

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

34

 

 

34

 

 

 

-

 

 

-

 

Home equity lines of credit

 

 

256

 

 

577

 

 

3,970

 

 

4,803

 

 

65,036

 

 

69,839

 

 

 

3,970

 

 

-

 

Personal

 

 

1,495

 

 

1,529

 

 

1,261

 

 

4,285

 

 

233,780

 

 

238,065

 

 

 

1,261

 

 

-

 

Other

 

 

704

 

 

-

 

 

12

 

 

716

 

 

4,384

 

 

5,100

 

 

 

12

 

 

-

Total

 

$

4,880

 

$

14,050

 

$

43,816

 

$

62,746

 

$

9,172,161

 

$

9,234,907

 

 

$

43,204

 

$

612

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Jun-22

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

 

$

-

 

$

187

 

$

280

 

$

467

 

$

1,895,352

 

$

1,895,819

 

 

$

280

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

288

 

 

-

 

 

-

 

 

288

 

 

1,467,935

 

 

1,468,223

 

 

 

-

 

 

-

 

Owner occupied

 

 

144

 

 

-

 

 

1,416

 

 

1,560

 

 

1,465,252

 

 

1,466,812

 

 

 

1,416

 

 

-

Commercial and industrial

 

 

9,278

 

 

2,037

 

 

6,326

 

 

17,641

 

 

1,880,702

 

 

1,898,343

 

 

 

5,750

 

 

576

Construction

 

 

-

 

 

7,000

 

 

-

 

 

7,000

 

 

621,558

 

 

628,558

 

 

 

-

 

 

-

Mortgage

 

 

1,561

 

 

3,587

 

 

20,192

 

 

25,340

 

 

1,194,692

 

 

1,220,032

 

 

 

20,192

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

47

 

 

47

 

 

 

-

 

 

-

 

Home equity lines of credit

 

 

303

 

 

16

 

 

4,705

 

 

5,024

 

 

66,431

 

 

71,455

 

 

 

4,705

 

 

-

 

Personal

 

 

755

 

 

470

 

 

749

 

 

1,974

 

 

232,339

 

 

234,313

 

 

 

749

 

 

-

 

Other

 

 

-

 

 

13

 

 

1

 

 

14

 

 

5,663

 

 

5,677

 

 

 

1

 

 

-

Total

 

$

12,329

 

$

13,310

 

$

33,669

 

$

59,308

 

$

8,829,971

 

$

8,889,279

 

 

$

33,093

 

$

576

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

 

$

-

 

 

$

(187

)

 

$

(280

)

 

$

(467

)

 

$

31,439

 

 

$

30,972

 

 

 

$

(280

)

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

(288

)

 

 

136

 

 

 

10,631

 

 

 

10,479

 

 

 

192,733

 

 

 

203,212

 

 

 

 

10,631

 

 

 

-

 

Owner occupied

 

 

(144

)

 

 

5,106

 

 

 

(810

)

 

 

4,152

 

 

 

7,447

 

 

 

11,599

 

 

 

 

(810

)

 

 

-

Commercial and industrial

 

 

(8,354

)

 

 

107

 

 

 

(523

)

 

 

(8,770

)

 

 

95,066

 

 

 

86,296

 

 

 

 

(559

)

 

 

36

Construction

 

 

-

 

 

 

(7,000

)

 

 

-

 

 

 

(7,000

)

 

 

(16,835

)

 

 

(23,835

)

 

 

 

-

 

 

 

-

Mortgage

 

 

(60

)

 

 

971

 

 

 

1,341

 

 

 

2,252

 

 

 

33,586

 

 

 

35,838

 

 

 

 

1,341

 

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(13

)

 

 

(13

)

 

 

 

-

 

 

 

-

 

Home equity lines of credit

 

 

(47

)

 

 

561

 

 

 

(735

)

 

 

(221

)

 

 

(1,395

)

 

 

(1,616

)

 

 

 

(735

)

 

 

-

 

Personal

 

 

740

 

 

 

1,059

 

 

 

512

 

 

 

2,311

 

 

 

1,441

 

 

 

3,752

 

 

 

 

512

 

 

 

-

 

Other

 

 

704

 

 

 

(13

)

 

 

11

 

 

 

702

 

 

 

(1,279

)

 

 

(577

)

 

 

 

11

 

 

 

-

Total

 

$

(7,449

)

 

$

740

 

 

$

10,147

 

 

$

3,438

 

 

$

342,190

 

 

$

345,628

 

 

 

$

10,111

 

 

$

36

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to Third Quarter 2022 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table J - Loan Delinquency - Consolidated