Popular, Inc. Announces First Quarter 2020 Financial Results

  • Net income of $34.3 million in Q1 2020, compared to net income of $166.8 million in Q4 2019.
  • Net interest margin of 3.94% in Q1 2020, compared to 3.83% in Q4 2019; Net interest margin on a taxable equivalent basis of 4.34% in Q1 2020, compared to 4.20% in Q4 2019.
  • Q1 2020 results reflect the impact of the adoption of the Current Expected Credit Losses (“CECL”) accounting standard.
  • Credit Quality:
    • Non-performing loans held-in-portfolio (“NPLs”) increased by $240.8 million from Q4 2019, mostly due to the effect of the adoption of CECL on previously acquired credit deteriorated loans; excluding this impact, NPLs decreased by $26.7 million; NPLs to loans ratio at 2.8% vs. 1.9% in Q4 2019;
    • Net charge-offs (“NCOs”) decreased by $19.4 million from Q4 2019; NCOs at 0.91% of average loans held-in-portfolio vs. 1.21% in Q4 2019;
    • Allowance for credit losses (“ACL”) to loans held-in-portfolio at 3.32% vs. 1.74% in Q4 2019; and
    • ACL to NPLs at 119.7% vs. 90.5% in Q4 2019.
  • Common Equity Tier 1 ratio of 15.79%, Common Equity per Share of $64.08 and Tangible Book Value per Share of $56.17 at March 31, 2020.

SAN JUAN, Puerto Rico--()--Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $34.3 million for the quarter ended March 31, 2020, compared to net income of $166.8 million for the quarter ended December 31, 2019.

Ignacio Alvarez, President and Chief Executive Officer, said: “The COVID-19 global pandemic has exposed the fragility of our economic and social systems and the need for greater collaboration between all sectors. I am hopeful that it will also reveal what we can accomplish when we come together in pursuit of a common goal. At Popular, the well-being of our customers, employees and communities is our priority. We have acted decisively to help our employees stay safe while we continue to offer essential banking services to our customers and communities. We have submitted more than $1.2 billion in loans, representing more than 15,000 small and medium size businesses, under the SBA’s Payroll Protection Program. To date, we have received confirmation of SBA approval of $819 million of those submissions. We have also pledged more than $1 million dollars in support of COVID-19 emergency relief to non-profit organizations and health providers. I am deeply grateful to our colleagues for the efforts, commitment, and bravery exhibited under very difficult circumstances.

Our net income for the quarter was significantly lower than the fourth quarter of 2019 and the same period last year. The primary driver of this decrease was a large increase in our provision expense, reflecting the newly adopted CECL methodology and the most recent post-COVID macroeconomic forecast for Puerto Rico and the U.S. Our operating results for the first quarter were solid considering the extent of the economic deceleration experienced during the second half of March. Net interest income, net interest margin as well as our net charge off ratio improved compared to the fourth quarter. We ended the quarter with a CET1 capital ratio of 15.8%

During our 126 years, we have often operated in highly uncertain and volatile economic periods and have managed through them successfully. Almost three years ago we faced the impact of Hurricane Maria, which caused extensive damage and left Puerto Rico and the Virgin Islands without power, water and telecommunications, in some cases for months. We responded decisively, adapted to change and delivered positive results even under difficult conditions. While each situation has unique challenges, we have the team, the experience and the financial resources to do so again.

Despite the uncertainty we are all facing as we fight this pandemic, we are confident that, with our strong liquidity position and capital levels, we are well prepared to successfully manage through the current challenges.”

 

Earnings Highlights

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

Quarters ended

(Dollars in thousands, except per share information)

31-Mar-20

 

31-Dec-19

 

31-Mar-19

Net interest income

$473,095

 

$467,424

 

$470,963

Provision for credit losses - loan portfolios

188,995

 

47,224

 

41,825

Provision for credit losses - investment securities

736

 

-

 

-

Net interest income after provision for credit losses

283,364

 

420,200

 

429,138

Other non-interest income

126,643

 

152,415

 

136,430

Operating expenses

372,608

 

390,572

 

347,420

Income before income tax

37,399

 

182,043

 

218,148

Income tax expense

3,097

 

15,258

 

50,223

Net income

$34,302

 

$166,785

 

$167,925

Net income applicable to common stock

$33,632

 

$165,854

 

$166,994

Net income per common share - Basic

$0.37

 

$1.72

 

$1.69

Net income per common share - Diluted

$0.37

 

$1.72

 

$1.69

 

 

 

 

 

 

Significant events

Impact of the adoption of the current expected credit loss model (“CECL”)

The Corporation adopted the new CECL accounting standard effective on January 1, 2020. As a result of the adoption of the CECL model, the Corporation recorded a net increase in its allowance for credit losses related to its loan portfolio, unfunded commitments and credit recourse guarantees amounting to $306 million. The Corporation also recognized an allowance for credit losses of approximately $13 million related to its held-to-maturity debt securities portfolio. The adjustments to reflect the increase in the allowance for credit losses was recorded as a decrease to the opening balance of retained earnings at January 1, 2020, net of deferred tax asset, except for approximately $17 million related to purchased credit impaired (“PCI”) loans previously accounted under ASC Subtopic 310-30, which resulted in a reclassification between certain contra loan balance accounts to the allowance for credit losses.

As part of the adoption of CECL, the Corporation made the election to break the existing pools of PCI loans, which were excluded from non-performing status, in accordance with the applicable accounting guidance. Upon being measured at the individual loan level, these loans are no longer excluded from non-performing status, resulting in an increase of $278 million in NPLs as of January 1, 2020. This increase included $144 million in loans currently over 90 days past due and $134 million in loans that are not delinquent in their payment terms but that are reported as non-performing due to other credit quality considerations.

The Corporation will avail itself of the option to phase in over a period of three years, beginning on January 1, 2022, the day-one effects on regulatory capital arising from the adoption of CECL.

Coronavirus (COVID-19) pandemic

The COVID-19 pandemic has negatively impacted the global economy, created significant volatility and disruption in financial markets, and increased unemployment levels. In Puerto Rico, in March 2020, the government declared a state of emergency as a result of the pandemic and has ordered a temporary closure of all businesses through at least early May, with the exception of certain businesses that provide essential services, including banking and financial institutions such as Banco Popular de Puerto Rico (“BPPR”). While banking and financial institutions are exempted from the closure order in Puerto Rico, that exemption is limited to basic banking services, therefore many activities, including mortgage loan and auto loan or lease originations have been suspended since March 16, 2020. Furthermore, the Puerto Rico government has mandated its citizens to remain sheltered in place and imposed a mandatory curfew, significantly limiting the activities that may be done in public. Most business establishments, including retailers and wholesalers, shopping centers and hotels are partially operating or remain closed, causing a significant disruption to the island’s economic activity. As a result of restrictions on non-essential business activities imposed on some of our third-party service providers in Puerto Rico, certain of the Corporation’s lines of business on the island, including mortgage originations, have been temporarily suspended and may remain suspended until at least May.

The government of the U.S.V.I. and state governments in the U.S. mainland, including New York, New Jersey and Florida, where Popular Bank (“Popular U.S.” or “PB”) has branches, have also declared states of emergency as a result of the pandemic, ordered the temporary closure of all non-essential businesses and its citizens to remain sheltered in place and observe social distancing, causing a similar significant economic disruption.

In response to the pandemic, the Corporation has taken measures to ensure the continuity of our operations and the safety of our employees and customers through this pandemic, while providing financial relief to customers through programs such as payment moratoriums, suspensions of foreclosures and other collection activity, as well as waivers of certain fees and service charges, including late-payment charges and ATM transaction fees.

The following is a summary of the main steps the Corporation has undertaken in response to the COVID-19 outbreak.

 

Employees

  • Broadened remote working capabilities through the use of technology
  • Executed actions to support employees working in our offices, including sanitation measures, social distance, staggered shifts and the distribution of masks and gloves
  • Special compensation incentives to front-line employees (branches and call centers)
  • Expanded health insurance benefits, including free COVID-19 tests and the availability of telephone consultations to employees and covered family members

 

Branch Operations

  • PR and USVI - Branches are operating under a reduced schedule and are rotating personnel to reduce their health exposure. In PR approximately 60%-70% of BPPR’s branches are in operation, many primarily by drive-thru. In USVI, approximately 70% of BPPR’s branches are in operation.
  • Mainland U.S. operations - Nearly all branches are operating on daily alternating schedules.

 

Customers

  • Published dedicated phoneline and online tool to request financial assistance for customers impacted by COVID-19
  • Offering payment moratoriums for eligible customers in mortgage, consumer loans, credit cards, auto loans and leases and certain commercial credit facilities, subject to certain terms and conditions
  • Suspended residential property foreclosures and evictions, as well as most other collection activity
  • Waived ATM fees and early withdrawal penalties on Certificates of Deposits
  • Offering expedited lines of credit of up to $100,000 for BPPR commercial clients with favorable terms
  • Mobilized to offer Small Business Administration loans under the Paycheck Protection Program (“PPP”) to affected businesses; submitted more than $1.2 billion of PPP loans.

 

Community

  • Established a fund with an initial contribution of $1M to support efforts in three primary areas: a) medical equipment and healthcare projects that combat COVID-19; b) entrepreneurs, small and medium businesses, providing financial advice and business continuity support; and c) non-profit organizations to ensure the continuity of their services.

 

The results for the first quarter of 2020 reflect the impact during the month of March 2020 of the business disruption and relief measures described above. The provision for credit losses for the loans and investments portfolios, which reflects the adoption of CECL, was $189.7 million, including $134 million in incremental reserves due to the expected economic impact of COVID-19. The Corporation’s revenue streams were impacted in the form of reduced consumer transaction activity, the waiver of certain late fees and service charges, including ATM transaction fees, as well as the suspension in mortgage origination and related securitization and loan sale activities. These revenue captions resulted in a decrease in income of approximately $6.8 million when compared to the previous quarter, reflecting the impact of the COVID-19 disruptions, mainly over the last two weeks of March. Furthermore, the Corporation has incurred in additional expenses related to front-line employee bonuses, the enabling of remote access for employees to work from home, the expansion of employee benefits, as well as the impact of specific measures to prevent the spread of the disease and efforts related to customer relief programs, among other related expenses.

The extent to which the COVID-19 pandemic further impacts our business, results of operations and financial condition (including our regulatory capital, liquidity ratios and realizability of deferred tax assets), as well as the operations of our clients, customers, service providers and suppliers, will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response thereto. To the extent that the COVID-19 pandemic results in the continued closure of businesses and a reduction in economic activity, the Corporation will be further impacted in the form of reduced revenues, additional expenses and higher credit losses.

Common Stock Repurchase Plan

On January 30, 2020, the Corporation entered into an accelerated share repurchase transaction (“ASR”) of $500 million with respect to its common stock, which was accounted for as a treasury stock transaction. As a result of the receipt of the initial 7,055,919 shares under the ASR, the Corporation recognized in shareholders’ equity approximately $400 million in treasury stock and $100 million as a reduction of capital surplus. The ASR provided that the final number of shares delivered at settlement would be based on the average daily volume weighted average price (“VWAP”) of the Corporation’s common stock, net of a discount, during the term of the ASR.

As a result of the recent decrease in the trading price of the Corporation’s common stock during the COVID-19 pandemic, on March 19, 2020, the dealer counterparty to the ASR exercised its right under the ASR Agreement to terminate the ASR as a result of the trading price of the Corporation’s common stock falling below a specified level, allowing the dealer counterparty to terminate the ASR. The agreement executed in connection with such termination (the “Termination Agreement”) provides for the acceleration of the final settlement of the ASR, which was originally expected to occur during the fourth quarter of 2020.

Under the settlement resulting from the Termination Agreement, the Corporation will receive a further number of shares of common stock, equivalent to approximately $167 million. As of March 31, 2020, the Corporation had received 642,400 additional shares after the early termination of the ASR. In connection with such receipt, the Corporation recorded approximately $23 million as treasury stock and recognized that amount as an increase in capital surplus.

Goodwill impairment evaluation

Due to the effects of the current and projected interest rate environment and the effects of the COVID-19 pandemic on the valuation of the Corporation and its subsidiaries, the Corporation deemed these factors as an interim triggering event and is currently in the process of evaluating its reporting units’ goodwill for impairment. The Corporation expects to complete its evaluation prior to the submission of its Form 10Q to be filed with the Securities and Exchange Commission. An 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.

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 for the quarters ended March 31, 2020 as compared with previous quarters, segregated by major categories of interest earning assets and interest-bearing liabilities.

Interest earning assets include investment securities and loans that are exempt from income tax, principally in Puerto Rico. The main sources of tax-exempt interest income are certain investments in obligations of the U.S. Government, its agencies and sponsored entities, and certain obligations of the Commonwealth of Puerto Rico and/or its agencies and municipalities and assets held by the Corporation’s international banking entities. To facilitate the comparison of all interest related to these assets, the interest income has been converted to a taxable equivalent basis, using the applicable statutory income tax rates for each period. 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

Net interest income for the quarter ended March 31, 2020 was $473.1 million compared to $467.4 million in the previous quarter, an increase of $5.7 million despite the decrease in market rates during the first quarter of 2020, during which the federal funds rate was decreased to a 0-25 basis points range. Net interest income, on a taxable equivalent basis, for the first quarter of 2020 was $521.4 million, an increase of $8.1 million when compared to $513.3 million in the fourth quarter of 2019. The increase of $2.4 million in the taxable equivalent adjustment quarter over quarter is directly related to a higher volume of tax-exempt investments in BPPR.

Net interest margin increased by 11 basis points to 3.94% in the first quarter of 2020, compared to 3.83% in the previous quarter. On a taxable equivalent basis, net interest margin was 4.34% compared to 4.20% in the fourth quarter of 2019, an increase of 14 basis points. The main variances in net interest income on a taxable equivalent basis were:

  • Higher interest income from loans by $3.6 million mainly driven by an increase in average volume of $324 million resulting from the acquisition of a $74 million credit card portfolio at the end of 2019, the growth of the auto and lease portfolio and commercial loans in BPPR and growth in construction loans and mortgage loans in PB; and
  • lower interest expense on deposits by $14.7 million due to lower interest cost by 15 basis points resulting from the decrease in deposit rates mainly in P.R. Government deposits and PB deposits, and a lower average balance of $247 million.

Partially offset by:

  • Lower income from money market, trading and investments by $10.6 million due to lower average volume by $721 million as a result of the increase in loan volume and the decrease in deposits, as mentioned above, and lower yield by 8 basis points.

BPPR’s net interest income amounted to $409.6 million for the quarter ended March 31, 2020, compared to $402.9 million in the previous quarter. The net interest margin for the first quarter 2020 was 4.22%, an increase of 14 basis points when compared to 4.08% for the previous quarter. The increase in net interest margin was impacted by a higher average volume of loans, which carry a higher yield than money market investments or investment securities and a decrease in the cost of interest-bearing government deposits. Partially offsetting these positive variances was a lower yield on money market, trading and investment securities driven by lower market rates, as mentioned above. BPPR’s earning assets’ yield was 4.64%, compared to 4.62% in the previous quarter, while the cost of interest-bearing deposits was 0.56%, or 17 basis points lower than the 0.73% reported in the previous quarter, mostly driven by a lower cost of P.R. Government deposits. Total cost of deposits for the quarter was 0.44%, compared to 0.57% reported in the fourth quarter of 2019, a decrease of 13 basis points.

Net interest income for Popular U.S. was $72.7 million for the quarter ended March 31, 2020, compared to $73.6 million during the previous quarter. The decrease of $0.9 million in net interest income was primarily due to a lower yield on loans by 12 basis points, mainly commercial and construction loans, partially offset by a lower cost of deposits by 11 basis points mainly associated to the decrease in market rates and a change in deposit mix. Net interest margin for the quarter was 3.21%, an increase of 3 basis points when compared to 3.18% in the previous quarter driven by a decrease in money market investments and investment securities and an increase in loans, coupled with a decrease in deposits. Earning assets yielded 4.37%, compared to 4.42% in the previous quarter, while the cost of interest-bearing deposits was 1.44%, compared to 1.55% in the previous quarter. Total cost of deposits for the quarter was 1.25% compared to 1.34% reported in the fourth quarter.

Non-interest income

Non-interest income decreased by $25.8 million to $126.6 million for the quarter ended March 31, 2020, compared to $152.4 million for the quarter ended December 31, 2019. The decrease in non-interest income was primarily driven by:

  • Lower other services by $10.8 million, mainly in the BPPR segment, due to lower debit and credit card fees by $5.0 million due to lower transactional volumes resulting from business disruptions during the last two weeks of March related to the COVID-19 pandemic which also resulted in the elimination of service charges and late fees; and lower insurance fees principally resulting from $4.2 million in contingent insurance commissions recognized during the fourth quarter;
  • lower income from mortgage banking activities by $7.0 million mainly due to higher fair value adjustments on mortgage servicing rights (“MSRs”) by $3.7 million due to an increase in estimated prepayments driven by declines in market rates, coupled with higher trading account losses by $2.6 million;
  • a net unrealized loss on equity securities of $2.7 million related to employee deferred compensation plans that have an offsetting expense reduction in personnel related expenses; and
  • an unfavorable variance in adjustments to indemnity reserves on previously sold loans of $6.1 million mainly due to higher provision related to loans previously sold with credit recourse.

Refer to Table B for further details.

Operating expenses

Operating expenses for the first quarter of 2020 totaled $372.6 million, a decrease of $18.0 million when compared to the fourth quarter of 2019. The decrease in operating expenses was driven primarily by:

  • Lower personnel cost by $11.5 million due to lower incentives compensation by $15.4 million mainly related to annual incentives tied to the Corporation’s financial performance, including the Corporation’s Profit-Sharing plan, recognized during the fourth quarter of 2019, partially offset by a special incentive to front-line employees due to COVID-19 amounting to $3.4 million;
  • lower professional fees by $2.1 million mainly due to lower advisory expenses; and
  • lower business promotion by $9.0 million due to lower advertising, sponsorship and promotions expenses by $4.3 million, which were higher in the previous quarter due to seasonal initiatives and lower customer reward program expense by $3.2 million due to lower customer transaction activity.

These decreases were partially offset by:

  • Higher OREO expenses by $1.9 million due to lower gain on sale of properties and higher write-downs on commercial, construction and mortgage properties; and
  • higher other operating expenses by $2.1 million due to higher operational losses by $5.5 million, including legal contingency reserves, partially offset by lower pension plan cost by $3.3 million due to annual changes in actuarial assumptions.

Full-time equivalent employees were 8,551 as of March 31, 2020, compared to 8,560 as of December 31, 2019.

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

Income taxes

For the quarter ended March 31, 2020, the Corporation recorded an income tax expense of $3.1 million, compared to $15.3 million for the previous quarter. The income tax expense for the first quarter of 2020 was lower than the previous quarter due to lower income before taxes resulting primarily from a higher provision for credit losses due to the implementation of CECL and the impact of the COVID-19 pandemic. During the fourth quarter of 2019, the Corporation recorded a tax benefit of approximately $18 million related to the revision of the amount of exempt income earned in prior years, which resulted in the amendment of income tax returns for BPPR for the years 2015 to 2017. The effective tax rate (“ETR”) for the first quarter of 2020 was of 8%.

The ETR of the Corporation is impacted by the composition and source of its taxable income. For the year 2020, the Corporation currently expects its consolidated effective tax rate to be within a range of 14% to 18%.

Credit Quality

As discussed above, the Corporation adopted the CECL accounting standard effective January 1, 2020. This framework requires management to estimate credit losses over the full remaining expected life of the loan using economic forecasts over a reasonable and supportable period, and historical information thereafter.

Excluding the impact of the adoption of CECL as well as the COVID-19 pandemic, the Corporation exhibited stable credit quality metrics throughout the first quarter of 2020. Significant changes in certain metrics reflect the adoption of the CECL methodology, as well as the impact of the unprecedented events that have unfolded as a result of the COVID-19 pandemic. The allowance for credit losses as of the first quarter of 2020 increased considerably due to the actual and expected impact of COVID-19 pandemic on the economic environment and the CECL adoption. The effects of the COVID-19 pandemic continue to evolve and the full extent of the economic disruption is uncertain. Management believes that the improvement over the last few years in the risk profile of the Corporation’s loan portfolios positions Popular to operate under challenging environments. Management will continue to carefully review the exposure of the portfolios to COVID-19 related risks, as well as changes in the economic outlook and their effect on credit quality.

To support its customers adversely affected by the COVID-19 pandemic, Popular is offering payment moratoriums to eligible customers in mortgage, consumer loans, credit cards, auto loans and leases and certain commercial credit facilities, subject to certain terms and conditions.

The following presents credit quality results for the first quarter of 2020:

  • At March 31, 2020, total non-performing loans held-in-portfolio increased by $240.8 million from December 31, 2019, mainly driven by loans previously accounted for as purchased credit impaired. Following existing accounting guidance, PCI loans were excluded from non-performing status due to the estimation of cash flows at the pool level. Under CECL, these loans are accounted for on an individual loan basis under the purchased credit deteriorated loans (“PCD”) accounting methodology and are no longer excluded from non-performing status. BPPR’s NPLs increased by $236.5 million, mostly related to PCI loans transition impact of $259.7 million. Excluding this impact, NPLs decreased by $23.2 million, mostly related to lower mortgage NPLs. Popular Bank’s NPLs increased by $4.4 million, also driven by the PCI transition of the taxi medallion portfolio. At March 31, 2020, the ratio of NPLs to total loans held-in-portfolio was 2.8% compared to 1.9% in the fourth quarter of 2019.
  • Excluding the PCI to PCD transition impact mentioned above, inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $9.9 million quarter-over-quarter. The P.R. mortgage inflows increased by $20.6 million sequentially, mainly due to repurchased PCD loans. This increase was offset by a decrease of $9.7 million in the P.R. commercial inflows. The U.S. inflows remained essentially flat quarter-over-quarter.
  • NCOs decreased by $19.4 million from the fourth quarter of 2019, primarily driven by a decrease in PB commercial NCOs of $19.1 million mostly related to charge-offs of taxi medallion loans taken during the fourth quarter of 2019. BPPR NCOs remained flat quarter-over-quarter. The Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.91%, compared to 1.21% in the fourth quarter of 2019. Refer to Table M for further information on net charge-offs and related ratios.
  • At March 31, 2020, the allowance for credit losses increased by $442.0 million from the fourth quarter of 2019 to $919.7 million; an increase of 93%. The CECL adoption impact resulted in an increase of $315.1 million (“Day 1 impact”) in the allowance for credit losses related to loans. Approximately, $298.1 million of this increase was reflected as a reduction of the opening balance of retained earnings, net of income taxes. The remaining $17.0 million, related to PCD loans previously accounted for under the Accounting Standards Codification ("ASC") Subtopic 310-30, were reclassified from certain contra loan balance accounts of that portfolio. The Day 1 impact was mainly driven by the consumer and mortgage portfolios within the BPPR segment. Excluding such Day 1 impact, the ACL increase of $126.9 million was mainly attributable to the significant change in macroeconomic conditions from the COVID-19 pandemic. The ratio of the allowance for credit losses to loans held-in-portfolio was 3.32% in the first quarter of 2020, compared to 1.74% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 119.7% compared to 90.5% in the previous quarter.
  • The provision for credit losses for the first quarter of 2020 increased by $141.8 million from the prior quarter. The provision for the BPPR and PB segments increased by $72.2 million and $69.6 million, respectively. The increase in provision was mainly driven by the COVID-19 impact on the macroeconomic scenarios. The provision to net charge-offs ratio was 302.3% in the first quarter of 2020, compared to 57.7% in the previous quarter.
 

Non-Performing Assets

 

 

 

 

 

(Unaudited)

 

 

 

 

 

(In thousands)

31-Mar-20

 

31-Dec-19

 

31-Mar-19

Total non-performing loans held-in-portfolio

$768,675

 

$527,841

 

$586,202

Non-performing loans held-for-sale

10,679

 

-

 

-

Other real estate owned (“OREO”)

123,922

 

122,072

 

125,478

Total non-performing assets

$903,276

 

$649,913

 

$711,680

Net charge-offs for the quarter

$62,523

 

$81,881

 

$60,545

 

 

 

 

 

 

 

Ratios:

 

 

 

 

 

Loans held-in-portfolio

$27,662,272

 

$27,406,873

 

$26,647,708

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

2.78%

 

1.93%

 

2.20%

Allowance for credit losses to loans held-in-portfolio

3.32

 

1.74

 

2.07

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

119.65

 

90.50

 

93.93

Refer to Table K for additional information.

 

 

 

 

 

 
 

Provision for Credit Losses - Loan Portfolios

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Quarters ended

(In thousands)

 

31-Mar-20

 

31-Dec-19

 

31-Mar-19

Provision for credit losses:

 

 

 

 

 

 

BPPR

 

$113,004

 

$40,843

 

$31,454

Popular U.S.

 

75,991

 

6,381

 

10,371

Total provision for credit losses

 

$188,995

 

$47,224

 

$41,825

 

Credit Quality by Segment

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

(In thousands)

 

Quarters ended

BPPR

 

31-Mar-20

 

31-Dec-19

 

31-Mar-19

 

Provision for credit losses - loan portfolios

 

$113,004

 

$40,843

 

$31,454

 

Net charge-offs

 

59,517

 

58,962

 

54,229

 

Total non-performing loans held-in-portfolio

735,683

 

499,200

 

544,992

 

Allowance / loans held-in-portfolio

3.74%

 

2.14%

 

2.42%

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

Popular U.S.

 

31-Mar-20

 

31-Dec-19

 

31-Mar-19

 

Provision for credit losses - loan portfolios

 

$75,991

 

$6,381

 

$10,371

 

Net charge-offs

 

3,006

 

22,919

 

6,316

 

Total non-performing loans held-in-portfolio

 

32,992

 

28,641

 

41,210

 

Allowance / loans held-in-portfolio

2.19%

 

0.62%

 

1.00%

 

 
 

Financial Condition Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

(In thousands)

31-Mar-20

 

31-Dec-19

 

31-Mar-19

Cash and money market investments

$6,387,267

 

$3,650,597

 

$5,190,692

Investment securities

16,114,167

 

17,946,343

 

13,839,874

Loans

27,662,272

 

27,406,873

 

26,647,708

Total assets

52,803,639

 

52,115,324

 

48,680,607

Deposits

44,797,176

 

43,758,606

 

40,879,838

Borrowings

1,336,897

 

1,294,986

 

1,377,401

Total liabilities

47,134,034

 

46,098,545

 

43,240,547

Stockholders’ equity

5,669,605

 

6,016,779

 

5,440,060

 

Total assets increased by $0.7 billion from the fourth quarter of 2019, driven by:

  • An increase of $2.7 billion in cash and money market investments, mainly due to an increase in deposits and lower investment portfolio balances.

Partially offset by:

  • A decrease of $1.8 billion in debt securities available-for-sale mainly due to maturities and paydowns of mortgage-backed securities, partially offset by purchases of U.S. Treasury securities and unrealized gains on the portfolio by $381.8 million mainly driven by the declines in market rates; and
  • An increase of the Allowance for credit losses of $442 million, which includes the impact of the adoption of CECL and reserves resulting from the deterioration in the economic outlook as a result of the COVID-19 pandemic.

Total liabilities increase by $1.0 billion from the fourth quarter of 2019, mainly due to:

  • An increase of $1.0 billion in deposits, mainly from an increase in time deposits from trust accounts and saving accounts, partially offset by a decrease in Puerto Rico public sector deposits.

Stockholders’ equity decreased by approximately $347.3 million from the fourth quarter of 2019, principally due to the impact of the $500 million accelerated share repurchase transaction, the cumulative effect of $205.8 million related to the adoption of CECL, declared dividends of $35.5 million on common stock, the redemption of $28 million in Series B Preferred Stock and $0.7 million in dividends on preferred stock, partially offset by the net income for the quarter of $34.3 million and an increase of unrealized gains on debt securities available-for-sale by $381.8 million.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 15.79%, $64.08 and $56.17, respectively, at March 31, 2020, compared to 17.76%, $62.42 and $55.10 at December 31, 2019. Refer to Table A for capital ratios.

Increase in common stock dividends

On January 9, 2020, the Corporation announced an increase in its quarterly common stock dividend from $0.30 per share to $0.40 per share, payable commencing in the second quarter of 2020, subject to the approval of the Corporation’s Board of Directors. On February 28, 2020, the Corporation’s Board of Directors approved the first quarterly cash dividend of $0.40 per share on its outstanding common stock, which was paid on April 1, 2020 to shareholders of record at the close of business on March 19, 2020.

Redemption of Series B Preferred Stock

On February 24, 2020, the Corporation redeemed all outstanding shares of its 8.25% Non-Cumulative Monthly Income Preferred Stock, Series B (“Series B Preferred Stock”). The Series B Preferred Stock was redeemed at the redemption price of $25.00 per share, plus $0.1375 in accrued and unpaid dividends on each share, for a total payment per share in the amount of $25.1375 and a total aggregate payment of $28.2 million.

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 about 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 (including as a result of any participation in and execution of government programs related to COVID-19), new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the coronavirus (COVID-19) pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on Popular, our clients, customers, service providers and third parties. 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, 2019, and in our Form 10Q for the quarter ended March 31, 2020 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

About Popular, Inc.

Popular, Inc. (NASDAQ: BPOP) is the leading financial institution in Puerto Rico, by both assets and deposits, and ranks among the top 50 U.S. bank holding companies by assets. Founded in 1893, Banco Popular de Puerto Rico, Popular’s principal subsidiary, provides retail, mortgage and commercial banking services in Puerto Rico and the U.S. Virgin Islands. Popular also offers in Puerto Rico auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the mainland United States, Popular provides retail, mortgage and commercial banking services through its New York-chartered banking subsidiary, Popular Bank, which has branches located in New York, New Jersey and Florida.

Conference Call

Popular will hold a conference call to discuss its financial results today Thursday, April 30, 2020 at 11:30 a.m. Eastern Time. The call will be open to the public and broadcasted 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 the dial-in telephone number 1-866-235-1201 or 1-412-902-4127. There is no charge to access the call.

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 28, 2020. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10143155.

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 2020 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 & Other Service Fees

 

Table G - Loans and Deposits

 

Table H - Loan Delinquency - PUERTO RICO

 

Table I - Loan Delinquency - POPULAR U.S.

 

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 First Quarter 2020 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

 

 

 

Quarters ended

 

31-Mar-20

31-Dec-19

31-Mar-19

Basic EPS

$0.37

$1.72

$1.69

Diluted EPS

$0.37

$1.72

$1.69

Average common shares outstanding

90,788,557

96,183,126

98,581,743

Average common shares outstanding - assuming dilution

90,892,961

96,330,785

98,758,898

Common shares outstanding at end of period

88,125,974

95,589,629

96,629,891

Market value per common share

$35.00

$58.75

$52.13

Market capitalization - (In millions)

$3,084

$5,616

$5,037

Return on average assets

0.27%

1.27%

1.40%

Return on average common equity

2.50%

11.27%

12.17%

Net interest margin (non-taxable equivalent basis)

3.94%

3.83%

4.20%

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

4.34%

4.20%

4.56%

Common equity per share

$64.08

$62.42

$55.78

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

$56.17

$55.10

$48.58

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

9.50%

10.24%

9.78%

Return on average tangible common equity [1]

2.87%

12.79%

13.91%

Tier 1 capital

15.79%

17.76%

16.39%

Total capital

18.36%

20.31%

19.00%

Tier 1 leverage

8.94%

10.03%

9.57%

Common Equity Tier 1 capital

15.79%

17.76%

16.39%

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

 

 

POPULAR, INC.

Financial Supplement to First Quarter 2020 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

 

Quarters ended

Variance

Quarter ended

Variance

 

 

 

Q1 2020

 

Q1 2020

(In thousands, except per share information)

31-Mar-20

31-Dec-19

vs. Q4 2019

31-Mar-19

vs. Q1 2019

Interest income:

 

 

 

 

 

Loans

$450,446

$447,736

$2,710

$447,713

$2,733

Money market investments

12,000

18,950

(6,950)

29,220

(17,220)

Investment securities

87,912

93,183

(5,271)

81,036

6,876

Total interest income

550,358

559,869

(9,511)

557,969

(7,611)

Interest expense:

 

 

 

 

 

Deposits

62,101

76,823

(14,722)

70,826

(8,725)

Short-term borrowings

1,048

1,272

(224)

1,600

(552)

Long-term debt

14,114

14,350

(236)

14,580

(466)

Total interest expense

77,263

92,445

(15,182)

87,006

(9,743)

Net interest income

473,095

467,424

5,671

470,963

2,132

Provision for credit losses - loan portfolios

188,995

47,224

141,771

41,825

147,170

Provision for credit losses - investment securities

736

-

736

-

736

Net interest income after provision for credit losses

283,364

420,200

(136,836)

429,138

(145,774)

Service charges on deposit accounts

41,659

41,656

3

38,691

2,968

Other service fees

64,773

75,559

(10,786)

64,307

466

Mortgage banking activities

6,420

13,448

(7,028)

9,926

(3,506)

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

(2,728)

332

(3,060)

1,433

(4,161)

Net profit on trading account debt securities

491

17

474

260

231

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

957

-

957

-

957

Adjustments (expense) to indemnity reserves on loans sold

(4,793)

1,321

(6,114)

(93)

(4,700)

Other operating income

19,864

20,082

(218)

21,906

(2,042)

Total non-interest income

126,643

152,415

(25,772)

136,430

(9,787)

Operating expenses:

 

 

 

 

 

Personnel costs

 

 

 

 

 

Salaries

92,256

91,161

1,095

84,450

7,806

Commissions, incentives and other bonuses

25,258

27,007

(1,749)

25,761

(503)

Pension, postretirement and medical insurance

9,638

11,281

(1,643)

9,761

(123)

Other personnel costs, including payroll taxes

19,679

28,878

(9,199)

23,145

(3,466)

Total personnel costs

146,831

158,327

(11,496)

143,117

3,714

Net occupancy expenses

25,158

24,908

250

23,537

1,621

Equipment expenses

21,605

21,591

14

19,705

1,900

Other taxes

13,681

13,386

295

11,662

2,019

Professional fees

 

 

 

 

 

Collections, appraisals and other credit related fees

3,881

3,704

177

3,724

157

Programming, processing and other technology services

62,819

63,029

(210)

60,178

2,641

Legal fees, excluding collections

2,986

2,527

459

3,489

(503)

Other professional fees

31,385

33,876

(2,491)

20,075

11,310

Total professional fees

101,071

103,136

(2,065)

87,466

13,605

Communications

5,954

5,765

189

5,849

105

Business promotion

14,197

23,214

(9,017)

14,674

(477)

FDIC deposit insurance

5,080

5,172

(92)

4,806

274

Other real estate owned (OREO) expense

2,479

569

1,910

2,677

(198)

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

10,282

10,486

(204)

8,223

2,059

Other operating expenses

 

 

 

 

 

Operational losses

8,374

2,916

5,458

4,888

3,486

All other

15,423

18,814

(3,391)

18,504

(3,081)

Total other operating expenses

23,797

21,730

2,067

23,392

405

Amortization of intangibles

2,473

2,288

185

2,312

161

Total operating expenses

372,608

390,572

(17,964)

347,420

25,188

Income before income tax

37,399

182,043

(144,644)

218,148

(180,749)

Income tax expense

3,097

15,258

(12,161)

50,223

(47,126)

Net income

$34,302

$166,785

$(132,483)

$167,925

$(133,623)

Net income applicable to common stock

$33,632

$165,854

$(132,222)

$166,994

$(133,362)

Net income per common share - basic

$0.37

$1.72

$(1.35)

$1.69

$(1.32)

Net income per common share - diluted

$0.37

$1.72

$(1.35)

$1.69

$(1.32)

Dividends Declared per Common Share

$0.40

$0.30

$0.10

$0.30

$0.10

 

Popular, Inc.

Financial Supplement to First Quarter 2020 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

 

 

 

 

 

 

Variance

 

 

 

 

 

 

Q1 2020 vs.

(In thousands)

31-Mar-20

31-Dec-19

31-Mar-19

Q4 2019

Assets:

 

 

 

 

Cash and due from banks

$445,551

$388,311

$376,558

$57,240

Money market investments

5,941,716

3,262,286

4,814,134

2,679,430

Trading account debt securities, at fair value

42,545

40,321

39,217

2,224

Debt securities available-for-sale, at fair value

15,813,301

17,648,473

13,542,695

(1,835,172)

Debt securities held-to-maturity, at amortized cost (net of allowance for credit losses of $13,390)

81,873

97,662

99,455

(15,789)

Equity securities

163,058

159,887

158,507

3,171

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

87,855

59,203

43,985

28,652

Loans held-in-portfolio

27,847,840

27,587,856

26,808,287

259,984

 

 

Less: Unearned income

185,568

180,983

160,579

4,585

 

 

Allowance for credit losses

919,716

477,708

550,628

442,008

 

 

Total loans held-in-portfolio, net

26,742,556

26,929,165

26,097,080

(186,609)

Premises and equipment, net

552,007

556,650

557,517

(4,643)

Other real estate

123,922

122,072

125,478

1,850

Accrued income receivable

176,078

180,871

162,797

(4,793)

Mortgage servicing assets, at fair value

147,311

150,906

167,813

(3,595)

Other assets

1,788,437

1,819,615

1,799,728

(31,178)

Goodwill

671,122

671,122

671,122

-

Other intangible assets

26,307

28,780

24,521

(2,473)

Total assets

$52,803,639

$52,115,324

$48,680,607

$688,315

Liabilities and Stockholders’ Equity:

 

 

 

 

Liabilities:

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest bearing

$9,396,449

$9,160,173

$9,046,104

$236,276

 

 

Interest bearing

35,400,727

34,598,433

31,833,734

802,294

 

 

Total deposits

44,797,176

43,758,606

40,879,838

1,038,570

Assets sold under agreements to repurchase

178,766

193,378

200,871

(14,612)

Other short-term borrowings

100,000

-

42

100,000

Notes payable

1,058,131

1,101,608

1,176,488

(43,477)

Other liabilities

999,961

1,044,953

983,308

(44,992)

Total liabilities

47,134,034

46,098,545

43,240,547

1,035,489

Stockholders’ equity:

 

 

 

 

Preferred stock

22,143

50,160

50,160

(28,017)

Common stock

1,044

1,044

1,043

-

Surplus

4,366,300

4,447,412

4,313,040

(81,112)

Retained earnings

1,940,170

2,147,915

1,794,644

(207,745)

Treasury stock

(870,675)

(459,814)

(394,848)

(410,861)

Accumulated other comprehensive income (loss), net of tax

210,623

(169,938)

(323,979)

380,561

 

 

Total stockholders’ equity

5,669,605

6,016,779

5,440,060

(347,174)

Total liabilities and stockholders’ equity

$52,803,639

$52,115,324

$48,680,607

$688,315

 

Popular, Inc.

Financial Supplement to First Quarter 2020 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

Variance

 

 

 

 

31-Mar-20

 

31-Dec-19

 

31-Mar-19

 

Q1 2020 vs. Q4 2019

 

Q1 2020 vs. Q1 2019

 

($ amounts in millions; yields not on a taxable equivalent basis)

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, trading and investment securities

$20,744

$135.7

2.63

%

$21,465

$146.3

2.71

%

$18,773

$141.3

3.04

%

($721)

($10.6)

(0.08)

%

$1,971

($5.6)

(0.41)

%

 

Loans:

 

 

Commercial

12,342

183.2

5.97

 

12,276

181.3

5.86

 

12,064

182.7

6.14

 

66

1.9

0.11

 

278

0.5

(0.17)

 

 

 

Construction

861

13.2

6.16

 

781

12.3

6.27

 

807

13.6

6.85

 

80

0.9

(0.11)

 

54

(0.4)

(0.69)

 

 

 

Mortgage

7,028

93.2

5.30

 

7,109

95.2

5.36

 

7,134

95.2

5.34

 

(81)

(2.0)

(0.06)

 

(106)

(2.0)

(0.04)

 

 

 

Consumer

3,110

89.4

11.56

 

2,942

86.2

11.62

 

2,814

82.8

11.93

 

168

3.2

(0.06)

 

296

6.6

(0.37)

 

 

 

Auto

2,992

67.7

9.10

 

2,935

68.7

9.28

 

2,729

67.6

10.04

 

57

(1.0)

(0.18)

 

263

0.1

(0.94)

 

 

 

Lease financing

1,072

16.3

6.07

 

1,038

15.7

6.06

 

944

14.3

6.08

 

34

0.6

0.01

 

128

2.0

(0.01)

 

 

Total loans

27,405

463.0

6.79

 

27,081

459.4

6.75

 

26,492

456.2

6.96

 

324

3.6

0.04

 

913

6.8

(0.17)

 

 

Total interest earning assets

$48,149

$598.7

4.99

%

$48,546

$605.7

4.96

%

$45,265

$597.5

5.33

%

$(397)

(7.0)

0.03

%

$2,884

$1.2

(0.34)

%

 

 

Allowance for credit losses - loan portfolio

(808)

 

 

 

(515)

 

 

 

(576)

 

 

 

(293)

 

 

 

(232)

 

 

 

 

 

Allowance for credit losses - investment securities

(13)

 

 

 

-

 

 

 

-

 

 

 

(13)

 

 

 

(13)

 

 

 

 

 

Other non-interest earning assets

4,026

 

 

 

3,943

 

 

 

3,938

 

 

 

83

 

 

 

88

 

 

 

 

Total average assets

$51,354

 

 

 

$51,974

 

 

 

$48,627

 

 

 

$(620)

 

 

 

$2,727

 

 

 

Liabilities and Stockholders' Equity:

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market

$16,229

$25.3

0.63

%

$16,312

$36.0

0.88

%

$14,051

$33.8

0.97

%

$(83)

$(10.7)

(0.25)

%

$2,178

$(8.5)

(0.34)

%

 

 

Savings

10,724

11.7

0.44

 

10,830

13.3

0.49

 

9,847

9.9

0.41

 

(106)

(1.6)

(0.05)

 

877

1.8

0.03

 

 

 

Time deposits

7,691

25.1

1.31

 

7,749

27.5

1.41

 

7,676

27.1

1.43

 

(58)

(2.4)

(0.10)

 

15

(2.0)

(0.12)

 

 

 

Total interest-bearing deposits

34,644

62.1

0.72

 

34,891

76.8

0.87

 

31,574

70.8

0.91

 

(247)

(14.7)

(0.15)

 

3,070

(8.7)

(0.19)

 

 

Borrowings

1,327

15.2

4.59

 

1,345

15.6

4.65

 

1,469

16.2

4.44

 

(18)

(0.4)

(0.06)

 

(142)

(1.0)

0.15

 

 

 

Total interest-bearing liabilities

35,971

77.3

0.86

 

36,236

92.4

1.01

 

33,043

87.0

1.07

 

(265)

(15.1)

(0.15)

 

2,928

(9.7)

(0.21)

 

 

 

Net interest spread

 

 

4.13

%

 

 

3.95

%

 

 

4.26

%

 

 

0.18

%

 

 

(0.13)

%

 

Non-interest bearing deposits

9,005

 

 

 

8,894

 

 

 

8,953

 

 

 

111

 

 

 

52

 

 

 

 

Other liabilities

897

 

 

 

957

 

 

 

1,016

 

 

 

(60)

 

 

 

(119)

 

 

 

 

Stockholders' equity

5,481

 

 

 

5,887

 

 

 

5,615

 

 

 

(406)

 

 

 

(134)

 

 

 

 

 

Total average liabilities and stockholders' equity

$51,354

 

 

 

$51,974

 

 

 

$48,627

 

 

 

$(620)

 

 

 

$2,727

 

 

 

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

$521.4

4.34

%

 

$513.3

4.20

%

 

$510.5

4.56

%

 

$8.1

0.14

%

 

$10.9

(0.22)

%

Taxable equivalent adjustment

48.3

 

 

 

45.9

 

 

 

39.5

 

 

 

2.4

 

 

 

8.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$473.1

3.94

%

 

$467.4

3.83

%

 

$471.0

4.20

%

 

$5.7

0.11

%

 

$2.1

(0.26)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Popular, Inc.

Financial Supplement to First Quarter 2020 Earnings Release

Table E – 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 2020 Earnings Release

 

Table F - Mortgage Banking Activities and Other Service Fees

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Banking Activities

 

 

 

 

 

 

 

 

Quarters ended

Variance

(In thousands)

 

31-Mar-20

31-Dec-19

31-Mar-19

Q1 2020 vs.Q4 2019

Q1 2020 vs.Q1 2019

Mortgage servicing fees, net of fair value adjustments:

 

 

 

 

 

 

 

Mortgage servicing fees

 

$10,968

$11,552

$11,687

$(584)

$(719)

 

Mortgage servicing rights fair value adjustments

 

(5,229)

(1,577)

(3,825)

(3,652)

(1,404)

Total mortgage servicing fees, net of fair value adjustments

 

5,739

9,975

7,862

(4,236)

(2,123)

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

 

3,986

4,164

4,017

(178)

(31)

Trading account loss:

 

 

 

 

 

 

 

Unrealized losses on outstanding derivative positions

 

(1,695)

-

-

(1,695)

(1,695)

 

Realized losses on closed derivative positions

 

(1,610)

(691)

(1,953)

(919)

343

Total trading account loss

 

(3,305)

(691)

(1,953)

(2,614)

(1,352)

Total mortgage banking activities

 

$6,420

$13,448

$9,926

$(7,028)

$(3,506)

 

 

 

 

 

 

 

 

Other Service Fees

 

 

 

 

 

 

 

 

Quarters ended

Variance

(In thousands)

 

31-Mar-20

31-Dec-19

31-Mar-19

Q1 2020 vs.Q4 2019

Q1 2020 vs.Q1 2019

Other service fees:

 

 

 

 

 

 

 

Debit card fees

 

$10,237

$12,219

$11,170

$(1,982)

$(933)

 

Insurance fees

 

12,969

17,574

12,791

(4,605)

178

 

Credit card fees

 

23,186

26,155

22,286

(2,969)

900

 

Sale and administration of investment products

 

6,263

6,367

5,259

(104)

1,004

 

Trust fees

 

5,260

5,263

4,716

(3)

544

 

Other fees

 

6,858

7,981

8,085

(1,123)

(1,227)

Total other service fees

 

$64,773

$75,559

$64,307

$(10,786)

$466

 
 

Popular, Inc.

 

 

 

 

 

Financial Supplement to First Quarter 2020 Earnings Release

Table G - Loans and Deposits

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Loans - Ending Balances

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

31-Mar-20

31-Dec-19

31-Mar-19

Q1 2020 vs.Q4 2019

Q1 2020 vs.Q1 2019

Loans held-in-portfolio:

 

 

 

 

Commercial

$12,498,969

$12,312,751

$12,058,310

$186,218

$440,659

Construction

902,380

831,092

791,320

71,288

111,060

Legacy [1]

20,435

22,105

24,404

(1,670)

(3,969)

Lease financing

1,088,542

1,059,507

963,232

29,035

125,310

Mortgage

7,094,757

7,183,532

7,207,180

(88,775)

(112,423)

Auto

2,954,150

2,917,522

2,742,095

36,628

212,055

Consumer

3,103,039

3,080,364

2,861,167

22,675

241,872

Total loans held-in-portfolio

$27,662,272

$27,406,873

$26,647,708

$255,399

$1,014,564

Loans held-for-sale:

 

 

 

 

 

Commercial

$10,679

$-

$-

$10,679

$10,679

Mortgage

77,176

59,203

43,985

17,973

33,191

Total loans held-for-sale

$87,855

$59,203

$43,985

$28,652

$43,870

Total loans

$27,750,127

$27,466,076

$26,691,693

$284,051

$1,058,434

[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.

Deposits - Ending Balances

 

 

 

 

 

 

 

 

Variance

(In thousands)

31-Mar-20

31-Dec-19

31-Mar-19

Q1 2020 vs. Q4 2019

Q1 2020 vs.Q1 2019

Demand deposits [1]

$17,023,170

$16,566,145

$16,871,934

$457,025

$151,236

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

18,786,042

19,169,899

15,806,355

(383,857)

2,979,687

Savings, NOW and money market deposits (brokered)

460,140

347,765

395,795

112,375

64,345

Time deposits (non-brokered)

8,404,525

7,546,621

7,724,151

857,904

680,374

Time deposits (brokered CDs)

123,299

128,176

81,603

(4,877)

41,696

Total deposits

$44,797,176

$43,758,606

$40,879,838

$1,038,570

$3,917,338

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

 

 

 

 

 
 

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to First Quarter 2020 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table H - Loan Delinquency - Puerto Rico

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Mar-20

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

 

$

8,382

 

$

359

 

$

1,379

 

$

10,120

 

$

137,145

 

$

147,265

 

 

$

1,379

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

4,632

 

 

4,382

 

 

109,054

 

 

118,068

 

 

1,968,831

 

 

2,086,899

 

 

 

109,054

 

 

-

 

Owner occupied

 

 

11,649

 

 

4,276

 

 

101,887

 

 

117,812

 

 

1,460,599

 

 

1,578,411

 

 

 

101,887

 

 

-

Commercial and industrial

 

 

17,112

 

 

3,608

 

 

39,280

 

 

60,000

 

 

3,458,407

 

 

3,518,407

 

 

 

38,784

 

 

496

Construction

 

 

4,411

 

 

-

 

 

-

 

 

4,411

 

 

159,979

 

 

164,390

 

 

 

-

 

 

-

Mortgage

 

 

339,648

 

 

141,841

 

 

854,105

 

 

1,335,594

 

 

4,680,414

 

 

6,016,008

 

 

 

404,465

 

 

449,640

Leasing

 

 

18,301

 

 

5,938

 

 

4,076

 

 

28,315

 

 

1,060,227

 

 

1,088,542

 

 

 

4,076

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

14,062

 

 

9,297

 

 

20,588

 

 

43,947

 

 

1,020,740

 

 

1,064,687

 

 

 

-

 

 

20,588

 

Home equity lines of credit

 

 

49

 

 

51

 

 

93

 

 

193

 

 

4,736

 

 

4,929

 

 

 

-

 

 

93

 

Personal

 

 

23,697

 

 

13,078

 

 

36,125

 

 

72,900

 

 

1,390,326

 

 

1,463,226

 

 

 

36,064

 

 

61

 

Auto

 

 

110,408

 

 

38,018

 

 

26,431

 

 

174,857

 

 

2,779,293

 

 

2,954,150

 

 

 

26,431

 

 

-

 

Other

 

 

622

 

 

293

 

 

13,966

 

 

14,881

 

 

122,086

 

 

136,967

 

 

 

13,543

 

 

423

Total

 

$

552,973

 

$

221,141

 

$

1,206,984

 

$

1,981,098

 

$

18,242,783

 

$

20,223,881

 

 

$

735,683

 

$

471,301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Dec-19

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

 

$

2,941

 

$

129

 

$

1,512

 

$

4,582

 

$

143,267

 

$

147,849

 

 

$

1,473

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

10,439

 

 

5,244

 

 

43,664

 

 

59,347

 

 

2,048,871

 

 

2,108,218

 

 

 

39,968

 

 

-

 

Owner occupied

 

 

5,704

 

 

3,978

 

 

84,537

 

 

94,219

 

 

1,492,110

 

 

1,586,329

 

 

 

69,276

 

 

-

Commercial and industrial

 

 

8,780

 

 

1,646

 

 

37,156

 

 

47,582

 

 

3,371,152

 

 

3,418,734

 

 

 

36,538

 

 

544

Construction

 

 

1,555

 

 

-

 

 

119

 

 

1,674

 

 

135,796

 

 

137,470

 

 

 

119

 

 

-

Mortgage

 

 

285,006

 

 

146,197

 

 

837,651

 

 

1,268,854

 

 

4,897,894

 

 

6,166,748

 

 

 

283,708

 

 

439,662

Leasing

 

 

12,014

 

 

3,053

 

 

3,657

 

 

18,724

 

 

1,040,783

 

 

1,059,507

 

 

 

3,657

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

11,358

 

 

7,928

 

 

19,461

 

 

38,747

 

 

1,085,053

 

 

1,123,800

 

 

 

-

 

 

19,461

 

Home equity lines of credit

 

 

-

 

 

85

 

 

-

 

 

85

 

 

4,953

 

 

5,038

 

 

 

-

 

 

-

 

Personal

 

 

13,481

 

 

9,352

 

 

20,296

 

 

43,129

 

 

1,325,021

 

 

1,368,150

 

 

 

19,529

 

 

61

 

Auto

 

 

81,169

 

 

23,182

 

 

31,148

 

 

135,499

 

 

2,782,023

 

 

2,917,522

 

 

 

31,148

 

 

-

 

Other

 

 

358

 

 

1,418

 

 

14,189

 

 

15,965

 

 

124,902

 

 

140,867

 

 

 

13,784

 

 

405

Total

 

$

432,805

 

$

202,212

 

$

1,093,390

 

$

1,728,407

 

$

18,451,825

 

$

20,180,232

 

 

$

499,200

 

$

460,133

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

 

$

5,441

 

$

230

 

$

(133)

 

$

5,538

 

$

(6,122)

 

$

(584)

 

 

$

(94)

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

(5,807)

 

 

(862)

 

 

65,390

 

 

58,721

 

 

(80,040)

 

 

(21,319)

 

 

 

69,086

 

 

-

 

Owner occupied

 

 

5,945

 

 

298

 

 

17,350

 

 

23,593

 

 

(31,511)

 

 

(7,918)

 

 

 

32,611

 

 

-

Commercial and industrial

 

 

8,332

 

 

1,962

 

 

2,124

 

 

12,418

 

 

87,255

 

 

99,673

 

 

 

2,246

 

 

(48)

Construction

 

 

2,856

 

 

-

 

 

(119)

 

 

2,737

 

 

24,183

 

 

26,920

 

 

 

(119)

 

 

-

Mortgage

 

 

54,642

 

 

(4,356)

 

 

16,454

 

 

66,740

 

 

(217,480)

 

 

(150,740)

 

 

 

120,757

 

 

9,978

Leasing

 

 

6,287

 

 

2,885

 

 

419

 

 

9,591

 

 

19,444

 

 

29,035

 

 

 

419

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

2,704

 

 

1,369

 

 

1,127

 

 

5,200

 

 

(64,313)

 

 

(59,113)

 

 

 

-

 

 

1,127

 

Home equity lines of credit

 

 

49

 

 

(34)

 

 

93

 

 

108

 

 

(217)

 

 

(109)

 

 

 

-

 

 

93

 

Personal

 

 

10,216

 

 

3,726

 

 

15,829

 

 

29,771

 

 

65,305

 

 

95,076

 

 

 

16,535

 

 

-

 

Auto

 

 

29,239

 

 

14,836

 

 

(4,717)

 

 

39,358

 

 

(2,730)

 

 

36,628

 

 

 

(4,717)

 

 

-

 

Other

 

 

264

 

 

(1,125)

 

 

(223)

 

 

(1,084)

 

 

(2,816)

 

 

(3,900)

 

 

 

(241)

 

 

18

Total

 

$

120,168

 

$

18,929

 

$

113,594

 

$

252,691

 

$

(209,042)

 

$

43,649

 

 

$

236,483

 

$

11,168

 
 

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to First Quarter 2020 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table I - Loan Delinquency - Popular U.S.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2020

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

 

$

974

 

$

-

 

$

2,097

 

$

3,071

 

$

1,627,274

 

$

1,630,345

 

 

$

2,097

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

25,944

 

 

-

 

 

269

 

 

26,213

 

 

1,950,611

 

 

1,976,824

 

 

 

269

 

 

-

 

Owner occupied

 

 

3,910

 

 

-

 

 

245

 

 

4,155

 

 

338,805

 

 

342,960

 

 

 

245

 

 

-

Commercial and industrial

 

 

1,067

 

 

3,546

 

 

4,793

 

 

9,406

 

 

1,208,452

 

 

1,217,858

 

 

 

4,793

 

 

-

Construction

 

 

-

 

 

-

 

 

-

 

 

-

 

 

737,990

 

 

737,990

 

 

 

-

 

 

-

Mortgage

 

 

25,639

 

 

391

 

 

12,176

 

 

38,206

 

 

1,040,543

 

 

1,078,749

 

 

 

12,176

 

 

-

Legacy

 

 

37

 

 

41

 

 

1,980

 

 

2,058

 

 

18,377

 

 

20,435

 

 

 

1,980

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

36

 

 

36

 

 

 

-

 

 

-

 

Home equity lines of credit

 

 

1,438

 

 

72

 

 

9,322

 

 

10,832

 

 

106,579

 

 

117,411

 

 

 

9,322

 

 

-

 

Personal

 

 

2,687

 

 

1,632

 

 

2,110

 

 

6,429

 

 

308,559

 

 

314,988

 

 

 

2,110

 

 

-

 

Other

 

 

21

 

 

-

 

 

-

 

 

21

 

 

774

 

 

795

 

 

 

-

 

 

-

Total

 

$

61,717

 

$

5,682

 

$

32,992

 

$

100,391

 

$

7,338,000

 

$

7,438,391

 

 

$

32,992

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

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

 

$

-

 

$

2,097

 

$

2,106

 

$

1,645,204

 

$

1,647,310

 

 

$

2,097

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

1,047

 

 

-

 

 

281

 

 

1,328

 

 

1,868,968

 

 

1,870,296

 

 

 

281

 

 

-

 

Owner occupied

 

 

1,750

 

 

-

 

 

251

 

 

2,001

 

 

337,134

 

 

339,135

 

 

 

251

 

 

-

Commercial and industrial

 

 

454

 

 

128

 

 

19,945

 

 

20,527

 

 

1,174,353

 

 

1,194,880

 

 

 

876

 

 

-

Construction

 

 

-

 

 

-

 

 

26

 

 

26

 

 

693,596

 

 

693,622

 

 

 

26

 

 

-

Mortgage

 

 

15,474

 

 

4,024

 

 

11,091

 

 

30,589

 

 

986,195

 

 

1,016,784

 

 

 

11,091

 

 

-

Legacy

 

 

49

 

 

8

 

 

1,999

 

 

2,056

 

 

20,049

 

 

22,105

 

 

 

1,999

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

36

 

 

36

 

 

 

-

 

 

-

 

Home equity lines of credit

 

 

404

 

 

267

 

 

9,954

 

 

10,625

 

 

106,718

 

 

117,343

 

 

 

9,954

 

 

-

 

Personal

 

 

2,286

 

 

1,582

 

 

2,066

 

 

5,934

 

 

318,506

 

 

324,440

 

 

 

2,066

 

 

-

 

Other

 

 

3

 

 

-

 

 

-

 

 

3

 

 

687

 

 

690

 

 

 

-

 

 

-

Total

 

$

21,476

 

$

6,009

 

$

47,710

 

$

75,195

 

$

7,151,446

 

$

7,226,641

 

 

$

28,641

 

$

-

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

 

$

965

 

$

-

 

$

-

 

$

965

 

$

(17,930)

 

$

(16,965)

 

 

$

-

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

24,897

 

 

-

 

 

(12)

 

 

24,885

 

 

81,643

 

 

106,528

 

 

 

(12)

 

 

-

 

Owner occupied

 

 

2,160

 

 

-

 

 

(6)

 

 

2,154

 

 

1,671

 

 

3,825

 

 

 

(6)

 

 

-

Commercial and industrial

 

 

613

 

 

3,418

 

 

(15,152)

 

 

(11,121)

 

 

34,099

 

 

22,978

 

 

 

3,917

 

 

-

Construction

 

 

-

 

 

-

 

 

(26)

 

 

(26)

 

 

44,394

 

 

44,368

 

 

 

(26)

 

 

-

Mortgage

 

 

10,165

 

 

(3,633)

 

 

1,085

 

 

7,617

 

 

54,348

 

 

61,965

 

 

 

1,085

 

 

-

Legacy

 

 

(12)

 

 

33

 

 

(19)

 

 

2

 

 

(1,672)

 

 

(1,670)

 

 

 

(19)

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

-

 

 

-

 

Home equity lines of credit

 

 

1,034

 

 

(195)

 

 

(632)

 

 

207

 

 

(139)

 

 

68

 

 

 

(632)

 

 

-

 

Personal

 

 

401

 

 

50

 

 

44

 

 

495

 

 

(9,947)

 

 

(9,452)

 

 

 

44

 

 

-

 

Auto

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

-

 

 

-

 

Other

 

 

18

 

 

-

 

 

-

 

 

18

 

 

87

 

 

105

 

 

 

-

 

 

-

Total

 

$

40,241

 

$

(327)

 

$

(14,718)

 

$

25,196

 

$

186,554

 

$

211,750

 

 

$

4,351

 

$

-

 
 

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to First Quarter 2020 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table J - Loan Delinquency - Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Mar-20

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

$

9,356

 

$

359

 

$

3,476

 

$

13,191

 

$

1,764,419

 

$

1,777,610

 

 

$

3,476

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

30,576

 

 

4,382

 

 

109,323

 

 

144,281

 

 

3,919,442

 

 

4,063,723

 

 

 

109,323

 

 

-

 

Owner occupied

 

15,559

 

 

4,276

 

 

102,132

 

 

121,967

 

 

1,799,404

 

 

1,921,371

 

 

 

102,132

 

 

-

Commercial and industrial

 

18,179

 

 

7,154

 

 

44,073

 

 

69,406

 

 

4,666,859

 

 

4,736,265

 

 

 

43,577

 

 

496

Construction

 

4,411

 

 

-

 

 

-

 

 

4,411

 

 

897,969

 

 

902,380

 

 

 

-

 

 

-

Mortgage

 

365,287

 

 

142,232

 

 

866,281

 

 

1,373,800

 

 

5,720,957

 

 

7,094,757

 

 

 

416,641

 

 

449,640

Leasing

 

18,301

 

 

5,938

 

 

4,076

 

 

28,315

 

 

1,060,227

 

 

1,088,542

 

 

 

4,076

 

 

-

Legacy

 

37

 

 

41

 

 

1,980

 

 

2,058

 

 

18,377

 

 

20,435

 

 

 

1,980

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

14,062

 

 

9,297

 

 

20,588

 

 

43,947

 

 

1,020,776

 

 

1,064,723

 

 

 

-

 

 

20,588

 

Home equity lines of credit

 

1,487

 

 

123

 

 

9,415

 

 

11,025

 

 

111,315

 

 

122,340

 

 

 

9,322

 

 

93

 

Personal

 

26,384

 

 

14,710

 

 

38,235

 

 

79,329

 

 

1,698,885

 

 

1,778,214

 

 

 

38,174

 

 

61

 

Auto

 

110,408

 

 

38,018

 

 

26,431

 

 

174,857

 

 

2,779,293

 

 

2,954,150

 

 

 

26,431

 

 

-

 

Other

 

643

 

 

293

 

 

13,966

 

 

14,902

 

 

122,860

 

 

137,762

 

 

 

13,543

 

 

423

Total

$

614,690

 

$

226,823

 

$

1,239,976

 

$

2,081,489

 

$

25,580,783

 

$

27,662,272

 

 

$

768,675

 

$

471,301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Dec-19

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

$

2,950

 

$

129

 

$

3,609

 

$

6,688

 

$

1,788,471

 

$

1,795,159

 

 

$

3,570

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

11,486

 

 

5,244

 

 

43,945

 

 

60,675

 

 

3,917,839

 

 

3,978,514

 

 

 

40,249

 

 

-

 

Owner occupied

 

7,454

 

 

3,978

 

 

84,788

 

 

96,220

 

 

1,829,244

 

 

1,925,464

 

 

 

69,527

 

 

-

Commercial and industrial

 

9,234

 

 

1,774

 

 

57,101

 

 

68,109

 

 

4,545,505

 

 

4,613,614

 

 

 

37,414

 

 

544

Construction

 

1,555

 

 

-

 

 

145

 

 

1,700

 

 

829,392

 

 

831,092

 

 

 

145

 

 

-

Mortgage

 

300,480

 

 

150,221

 

 

848,742

 

 

1,299,443

 

 

5,884,089

 

 

7,183,532

 

 

 

294,799

 

 

439,662

Leasing

 

12,014

 

 

3,053

 

 

3,657

 

 

18,724

 

 

1,040,783

 

 

1,059,507

 

 

 

3,657

 

 

-

Legacy

 

49

 

 

8

 

 

1,999

 

 

2,056

 

 

20,049

 

 

22,105

 

 

 

1,999

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

11,358

 

 

7,928

 

 

19,461

 

 

38,747

 

 

1,085,089

 

 

1,123,836

 

 

 

-

 

 

19,461

 

Home equity lines of credit

 

404

 

 

352

 

 

9,954

 

 

10,710

 

 

111,671

 

 

122,381

 

 

 

9,954

 

 

-

 

Personal

 

15,767

 

 

10,934

 

 

22,362

 

 

49,063

 

 

1,643,527

 

 

1,692,590

 

 

 

21,595

 

 

61

 

Auto

 

81,169

 

 

23,182

 

 

31,148

 

 

135,499

 

 

2,782,023

 

 

2,917,522

 

 

 

31,148

 

 

-

 

Other

 

361

 

 

1,418

 

 

14,189

 

 

15,968

 

 

125,589

 

 

141,557

 

 

 

13,784

 

 

405

Total

$

454,281

 

$

208,221

 

$

1,141,100

 

$

1,803,602

 

$

25,603,271

 

$

27,406,873

 

 

$

527,841

 

$

460,133

Variance

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

Non-accrual

 

 

Accruing

(In thousands)

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

$

6,406

 

$

230

 

$

(133)

 

$

6,503

 

$

(24,052)

 

$

(17,549)

 

 

$

(94)

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

19,090

 

 

(862)

 

 

65,378

 

 

83,606

 

 

1,603

 

 

85,209

 

 

 

69,074

 

 

-

 

Owner occupied

 

8,105

 

 

298

 

 

17,344

 

 

25,747

 

 

(29,840)

 

 

(4,093)

 

 

 

32,605

 

 

-

Commercial and industrial

 

8,945

 

 

5,380

 

 

(13,028)

 

 

1,297

 

 

121,354

 

 

122,651

 

 

 

6,163

 

 

(48)

Construction

 

2,856

 

 

-

 

 

(145)

 

 

2,711

 

 

68,577

 

 

71,288

 

 

 

(145)

 

 

-

Mortgage

 

64,807

 

 

(7,989)

 

 

17,539

 

 

74,357

 

 

(163,132)

 

 

(88,775)

 

 

 

121,842

 

 

9,978

Leasing

 

6,287

 

 

2,885

 

 

419

 

 

9,591

 

 

19,444

 

 

29,035

 

 

 

419

 

 

-

Legacy

 

(12)

 

 

33

 

 

(19)

 

 

2

 

 

(1,672)

 

 

(1,670)

 

 

 

(19)

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

2,704

 

 

1,369

 

 

1,127

 

 

5,200

 

 

(64,313)

 

 

(59,113)

 

 

 

-

 

 

1,127

 

Home equity lines of credit

 

1,083

 

 

(229)

 

 

(539)

 

 

315

 

 

(356)

 

 

(41)

 

 

 

(632)

 

 

93

 

Personal

 

10,617

 

 

3,776

 

 

15,873

 

 

30,266

 

 

55,358

 

 

85,624

 

 

 

16,579

 

 

-

 

Auto

 

29,239

 

 

14,836

 

 

(4,717)

 

 

39,358

 

 

(2,730)

 

 

36,628

 

 

 

(4,717)

 

 

-

 

Other

 

282

 

 

(1,125)

 

 

(223)

 

 

(1,066)

 

 

(2,729)

 

 

(3,795)

 

 

 

(241)

 

 

18

Total

$

160,409

 

$

18,602

 

$

98,876

 

$

277,887

 

$

(22,488)

 

$

255,399

 

 

$

240,834

 

$

11,168

 

Popular, Inc.

Financial Supplement to First Quarter 2020 Earnings Release

Table K - Non-Performing Assets

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Variance

(Dollars in thousands)

31-Mar-20

As a % of
loans HIP
by category

 

31-Dec-19

As a % of
loans HIP
by category

 

31-Mar-19

As a % of
loans HIP
by category

 

Q1 2020 vs.
Q4 2019

Q1 2020 vs.
Q1 2019

Non-accrual loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial [1]

$258,508

2.1

%

$150,760

1.2

%

$169,154

1.4

%

$107,748

$89,354

Construction

-

-

 

145

-

 

13,848

1.7

 

(145)

(13,848)

Legacy [2]

1,980

9.7

 

1,999

9.0

 

2,583

10.6

 

(19)

(603)

Lease financing

4,076

0.4

 

3,657

0.3

 

2,525

0.3

 

419

1,551

Mortgage [1]

416,641

5.9

 

294,799

4.1

 

327,658

4.5

 

121,842

88,983

Auto

26,431

0.9

 

31,148

1.1

 

25,162

0.9

 

(4,717)

1,269

Consumer [1]

61,039

2.0

 

45,333

1.5

 

45,272

1.6

 

15,706

15,767

Total non-performing loans held-in-portfolio

768,675

2.8

%

527,841

1.9

%

586,202

2.2

%

240,834

182,473

Non-performing loans held-for-sale [3]

10,679

 

 

-

 

 

-

 

 

10,679

10,679

Other real estate owned (“OREO”)

123,922

 

 

122,072

 

 

125,478

 

 

1,850

(1,556)

Total non-performing assets

$903,276

 

 

$649,913

 

 

$711,680

 

 

$253,363

$191,596

Accruing loans past due 90 days or more [4] [5]

$471,301

 

 

$460,133

 

 

$550,717

 

 

$11,168

$(79,416)

Ratios:

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets to total assets

1.71

%

 

1.25

%

 

1.46

%

 

 

 

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

2.78

 

 

1.93

 

 

2.20

 

 

 

 

Allowance for credit losses to loans held-in-portfolio

3.32

 

 

1.74

 

 

2.07

 

 

 

 

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

119.65

 

 

90.50

 

 

93.93

 

 

 

 

[1] The increase in non-accrual loans includes the initial impact of $278 million related to the adoption of CECL on the portfolio of previously purchased credit deteriorated loans. This included mortgage loans for $133 million, commercial loans for $131 million and $14 million in consumer loans.

[2] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.

[3] There were $11 million in non-performing commercial loans held-for-sale as of March 31, 2020, none for the quarters ended December 31, 2019 and March 31, 2019.

[4] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These include loans rebooked, which were previously pooled into GNMA securities amounting to $111 million (December 31, 2019 - $103 million; March 31, 2019 - $106 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 on the financial statements of BPPR with an offsetting liability. These balances include $222 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2020 (December 31, 2019 - $213 million; March 31, 2019 - $292 million). Furthermore, the Corporation has approximately $62 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, 2019 - $65 million; March 31, 2019 - $67 million).

[5] The carrying value of loans accounted for under ASC Subtopic 310-30 that are contractually 90 days or more past due was $153 million at December 31, 2019 and $257 million at March 31, 2019. This amount is excluded from the above table as the loans’ accretable yield interest recognition is independent from the underlying contractual loan delinquency status.

Popular, Inc.

Financial Supplement to First Quarter 2020 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)

 

 

 

 

 

 

 

 

Commercial loans held-in-portfolio:

 

 

Quarter ended

Quarter ended

 

 

31-Mar-20

31-Dec-19

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$147,255

$3,505

$150,760

$166,366

$3,331

$169,697

Transition of PCI to PCD loans under CECL

112,517

18,547

131,064

-

-

-

Plus:

 

 

 

 

 

 

 

New non-performing loans

4,954

166

5,120

14,650

248

14,898

 

Advances on existing non-performing loans

-

95

95

-

80

80

Less:

 

 

 

 

 

 

 

Non-performing loans transferred to OREO

(2,202)

-

(2,202)

(4,009)

-

(4,009)

 

Non-performing loans charged-off

(2,146)

(554)

(2,700)

(10,708)

(42)

(10,750)

 

Loans returned to accrual status / loan collections

(9,274)

(3,676)

(12,950)

(14,207)

(112)

(14,319)

 

Loans transferred to held-for-sale

-

(10,679)

(10,679)

-

-

-

 

Non-performing loans sold

-

-

-

(4,837)

-

(4,837)

Ending balance NPLs

$251,104

$7,404

$258,508

$147,255

$3,505

$150,760

 

 

 

 

 

 

 

 

Construction loans held-in-portfolio:

 

 

Quarter ended

Quarter ended

 

 

31-Mar-20

31-Dec-19

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$119

$26

$145

$274

$10,060

$10,334

Less:

 

 

 

 

 

 

 

Loans returned to accrual status / loan collections

(119)

(26)

(145)

(155)

-

(155)

 

Non-performing loans sold

-

-

-

-

(10,034)

(10,034)

Ending balance NPLs

$-

$-

$-

$119

$26

$145

 

 

 

 

 

 

 

 

Mortgage loans held-in-portfolio:

 

 

Quarter ended

Quarter ended

 

 

31-Mar-20

31-Dec-19

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$283,708

$11,091

$294,799

$296,025

$9,517

$305,542

Transition of PCI to PCD loans under CECL

133,186

-

133,186

-

-

-

Plus:

 

 

 

 

 

 

 

New non-performing loans

75,966

4,007

79,973

55,379

4,923

60,302

 

Advances on existing non-performing loans

-

52

52

-

39

39

Less:

 

 

 

 

 

 

 

Non-performing loans transferred to OREO

(8,188)

-

(8,188)

(7,988)

(111)

(8,099)

 

Non-performing loans charged-off

(4,747)

-

(4,747)

(4,800)

-

(4,800)

 

Loans returned to accrual status / loan collections

(75,460)

(2,974)

(78,434)

(54,908)

(3,277)

(58,185)

Ending balance NPLs

$404,465

$12,176

$416,641

$283,708

$11,091

$294,799

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans held-in-portfolio (excluding consumer):

 

 

Quarter ended

Quarter ended

 

 

31-Mar-20

31-Dec-19

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$431,082

$16,621

$447,703

$462,665

$25,226

$487,891

Transition of PCI to PCD loans under CECL

245,703

18,547

264,250

-

-

-

Plus:

 

 

 

 

 

 

 

New non-performing loans

80,920

4,173

85,093

70,029

5,171

75,200

 

Advances on existing non-performing loans

-

171

171

-

121

121

Less:

 

 

 

 

 

 

 

Non-performing loans transferred to OREO

(10,390)

-

(10,390)

(11,997)

(111)

(12,108)

 

Non-performing loans charged-off

(6,893)

(554)

(7,447)

(15,508)

(42)

(15,550)

 

Loans returned to accrual status / loan collections

(84,853)

(6,719)

(91,572)

(69,270)

(3,710)

(72,980)

 

Loans transferred to held-for-sale

-

(10,679)

(10,679)

-

-

-

 

Non-performing loans sold

-

-

-

(4,837)

(10,034)

(14,871)

Ending balance NPLs [1]

$655,569

$21,560

$677,129

$431,082

$16,621

$447,703

[1] Includes $2.0 million of NPLs related to the legacy portfolio as of March 31, 2020 (December 31, 2019 - $2.0 million).

 

Popular, Inc.

Financial Supplement to First Quarter 2020 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended

 

Quarter ended

 

Quarter ended

 

 

31-Mar-20

 

31-Dec-19

 

31-Mar-19

 

(Dollars in thousands)

Total

 

Total

 

Total

 

Balance at beginning of period

$477,708

 

$512,365

 

$569,348

 

Impact of adopting CECL

315,107

 

-

 

-

 

Provision for credit losses

188,995

 

47,224

 

41,825

 

Initial allowance for credit losses - PCD Loans

429

 

-

 

-

 

 

982,239

 

559,589

 

611,173

 

Net loans charged-off:

 

 

 

 

 

 

BPPR

 

 

 

 

 

 

Commercial

580

 

7,301

 

16,594

 

Construction

(19)

 

(48)

 

(17)

 

Lease financing

3,307

 

2,768

 

1,486

 

Mortgage

5,538

 

8,770

 

11,183

 

Consumer

50,111

 

40,171

 

24,983

 

Total BPPR

59,517

 

58,962

 

54,229

 

Popular U.S.

 

 

 

 

 

 

Commercial

100

 

19,150

 

2,834

 

Construction

(155)

 

-

 

(8)

 

Legacy [1]

(101)

 

(110)

 

(715)

 

Mortgage

(1)

 

(6)

 

229

 

Consumer

3,163

 

3,885

 

3,976

 

Total Popular U.S.

3,006

 

22,919

 

6,316

 

Total loans charged-off - Popular, Inc.

62,523

 

81,881

 

60,545

 

Balance at end of period

$919,716

 

$477,708

 

$550,628

 

 

 

 

 

 

 

 

POPULAR, INC.

 

 

 

 

 

 

Annualized net charge-offs to average loans held-in-portfolio

0.91

%

1.21

%

0.92

%

Provision for credit losses to net charge-offs

302.28

%

57.67

%

69.08

%

BPPR

 

 

 

 

 

 

Annualized net charge-offs to average loans held-in-portfolio

1.18

%

1.18

%

1.09

%

Provision for credit losses to net charge-offs

189.87

%

69.27

%

58.00

%

Popular U.S.

 

 

 

 

 

 

Annualized net charge-offs to average loans held-in-portfolio

0.17

%

1.29

%

0.38

%

Provision for credit losses to net charge-offs

2,527.98

%

27.84

%

164.20

%

[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.

 

Popular, Inc.

Financial Supplement to First Quarter 2020 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Mar-20

(Dollars in thousands)

 

Commercial

 

Construction

 

Legacy [1]

 

Mortgage

 

Lease financing

 

Consumer

 

Total

 

Total ACL

 

$305,048

 

$2,591

 

$2,026

 

$227,087

 

$12,589

 

$370,375

 

$919,716

 

Total loans held-in-portfolio

 

$12,498,969

 

$902,380

 

$20,435

 

$7,094,757

 

$1,088,542

 

$6,057,189

 

$27,662,272

 

ACL to loans held-in-portfolio

 

2.44

%

0.29

%

9.91

%

3.20

%

1.16

%

6.11

%

3.32

%

[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. reportable segment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Dec-19

(Dollars in thousands)

 

Commercial

 

Construction

 

Legacy [1]

 

Mortgage

 

Lease financing

 

Consumer

 

Total

 

Total ACL

 

$147,052

 

$4,778

 

$630

 

$121,108

 

$10,768

 

$193,372

 

$477,708

 

Total loans held-in-portfolio

 

$12,312,751

 

$831,092

 

$22,105

 

$7,183,532

 

$1,059,507

 

$5,997,886

 

$27,406,873

 

ACL to loans held-in-portfolio

 

1.19

%

0.57

%

2.85

%

1.69

%

1.02

%

3.22

%

1.74

%

[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. reportable segment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

(Dollars in thousands)

 

Commercial

 

Construction

 

Legacy

 

Mortgage

 

Lease financing

 

Consumer

 

Total

 

Total ACL

 

$157,996

 

$(2,187)

 

$1,396

 

$105,979

 

$1,821

 

$177,003

 

$442,008

 

Total loans held-in-portfolio

 

$186,218

 

$71,288

 

$(1,670)

 

$(88,775)

 

$29,035

 

$59,303

 

$255,399

 

 
 

Popular, Inc.

 

Financial Supplement to First Quarter 2020 Earnings Release

 

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

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Mar-20

 

Puerto Rico

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Lease financing

 

Consumer

 

Total

 

Allowance for credit losses:

$207,850

 

$419

 

$202,800

 

$12,589

 

$333,277

 

$756,935

 

Loans held-in-portfolio:

7,330,982

 

164,390

 

6,016,008

 

1,088,542

 

5,623,959

 

20,223,881

 

ACL to loans held-in-portfolio:

2.84

%

0.25

%

3.37

%

1.16

%

5.93

%

3.74

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Dec-19

 

Puerto Rico

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Lease financing

 

Consumer

 

Total

 

Allowance for credit losses:

$131,063

 

$574

 

$116,281

 

$10,768

 

$173,965

 

$432,651

 

Loans held-in-portfolio:

7,261,130

 

137,470

 

6,166,748

 

1,059,507

 

5,555,377

 

20,180,232

 

ACL to loans held-in-portfolio:

1.80

%

0.42

%

1.89

%

1.02

%

3.13

%

2.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Lease financing

 

Consumer

 

Total

 

Allowance for credit losses:

$76,787

 

$(155)

 

$86,519

 

$1,821

 

$159,312

 

$324,284

 

Loans held-in-portfolio: