Popular, Inc. Announces Second Quarter 2021 Financial Results

  • Net income of $218.1 million in Q2 2021, compared to net income of $262.6 million in Q1 2021.
  • Net interest margin of 2.91% in Q2 2021, compared to 3.07% in Q1 2021; net interest margin on a taxable equivalent basis of 3.22% in Q2 2021, compared to 3.39% in Q1 2021.
  • Credit Quality:
    • Non-performing loans held-in-portfolio (“NPLs”) decreased by $13.0 million from Q1 2021; NPLs to loans ratio at 2.4% flat from Q1 2021;
    • Net charge-offs (“NCOs”) was a net recovery of $1.3 million, a favorable variance by $22.3 million from Q1 2021; NCOs at (0.02)% of average loans held-in-portfolio vs. 0.29% in Q1 2021;
    • Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.70% vs. 2.75% in Q1 2021; and
    • ACL to NPLs at 114.7% flat from Q1 2021.
  • Common Equity Tier 1 ratio of 16.55%, Common Equity per Share of $71.82 and Tangible Book Value per Share of $63.24 at June 30, 2021.

SAN JUAN, Puerto Rico--()--Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $218.1 million for the quarter ended June 30, 2021, compared to net income of $262.6 million for the quarter ended March 31, 2021.

Ignacio Alvarez, President and Chief Executive Officer, said: “We had another strong quarter with net income of $218 million. These results reflect improving macro-economic conditions and credit quality as well as our diversified sources of revenue. Consumer spending in P.R. has increased and it is reflected in higher revenues from credit and debit card spending. Deposit balances grew by $5.9 billion and excluding forgiveness of PPP loans, we saw a small increase in our period end loans, led by strong auto loan originations in P.R. During the quarter we also continued to return capital to our shareholders, increased our common stock dividend, while maintaining a CET1 ratio of 16.6% at quarter end. While we are extremely pleased with the results for the first half of the year, we remain attentive on how the evolving health situation may impact the economic recovery.

We also continued to support the communities we serve. During the quarter we released our annual Corporate Sustainability Report, which summarizes our program, takes into account widely accepted sustainability reporting standards and highlights our commitment, progress and achievements in our efforts to operate as a responsible, ethical and sustainable company.”

Significant Events

Financial Highlights

For the second quarter of 2021, the Corporation recorded net income of $218.1 million, compared to a net income of $262.6 million for the previous quarter. The second quarter’s results include a release of the allowance for credit losses of $17.0 million driven by improving credit quality and the improved macroeconomic outlook. Net Interest income was $487.8 million, an increase of $8.7 million compared to the previous quarter, mainly due to additional funds invested from the increase in deposits. The net interest margin decreased 16 basis points to 2.91%. Total assets grew by $5.8 billion from the previous quarter, reflecting an increase in deposits across various sectors, principally from the Puerto Rico public sector.

Capital Actions

On May 3, 2021, the Corporation announced that it had entered into an accelerated share repurchase agreement (the “ASR Agreement”) to repurchase an aggregate of $350 million of Popular’s common stock. Under the terms of the ASR Agreement, on May 4, 2021 the Corporation made an initial payment of $350 million and received an initial delivery of 3,785,831 shares of Popular’s Common Stock (the “Initial Shares”). The transaction was accounted for as a treasury stock transaction. Furthermore, as a result of the receipt of the Initial Shares, the Corporation recognized in shareholders’ equity approximately $280 million in treasury stock and $70 million as a reduction in capital surplus. Upon the final settlement of the ASR Agreement, the Corporation expects to further adjust its treasury stock and capital surplus accounts to reflect the final delivery or receipt of cash or shares, which will depend on the volume-weighted average price of the Corporation’s common stock during the term of the ASR Agreement, less a discount. The final settlement of the ASR Agreement is expected to occur no later than the third quarter of 2021.

On May 6, 2021, the Corporation’s Board of Directors approved a quarterly cash dividend of $0.45 per share, an increase from the previous $0.40 per share quarterly dividend, on its outstanding common stock. The dividend was paid on July 1, 2021 to shareholders of record at the close of business on May 26, 2021.

Earnings Highlights

 

 

 

 

 

 

 

(Unaudited)

Quarters ended

 

Six months ended

(Dollars in thousands, except per share information)

30-Jun-21

31-Mar-21

30-Jun-20

 

30-Jun-21

30-Jun-20

Net interest income

$487,802

$479,112

 

$450,881

 

$966,914

$923,976

Provision for credit losses (benefit)

(17,015)

(82,226

)

62,449

 

(99,241)

252,180

Net interest income after provision for credit losses (benefit)

504,817

561,338

 

388,432

 

1,066,155

671,796

Other non-interest income

154,540

153,653

 

112,055

 

308,193

238,698

Operating expenses

368,185

375,528

 

348,231

 

743,713

720,839

Income before income tax

291,172

339,463

 

152,256

 

630,635

189,655

Income tax expense

73,093

76,831

 

24,628

 

149,924

27,725

Net income

$218,079

$262,632

 

$127,628

 

$480,711

$161,930

Net income applicable to common stock

$217,726

$262,279

 

$127,275

 

$480,005

$160,877

Net income per common share-basic

$2.67

$3.13

 

$1.49

 

$5.80

$1.83

Net income per common share-diluted

$2.66

$3.12

 

$1.49

 

$5.79

$1.83

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

Net interest income, on a taxable equivalent basis, is presented with its different components in Table D and E for the quarter and six months ended June 30, 2021 and comparable periods. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

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

Net interest income for the quarter ended June 30, 2021 was $487.8 million compared to $479.1 million in the previous quarter, an increase of $8.7 million. The total net impact on net interest income of one more day in the quarter when compared to the first quarter of 2021 is estimated at $3.7 million. Net interest income, on a taxable equivalent basis, for the second quarter of 2021 was $541.2 million, an increase of $11.4 million when compared to $529.8 million in the first quarter of 2021. On a taxable equivalent basis, the total net impact on net interest income of one more day in the quarter when compared to the first quarter of 2021 is estimated at $4.0 million.

Net interest margin decreased 16 basis points to 2.91% compared to 3.07% in the previous quarter. The decrease in the net interest margin is due to a higher proportion of money market and investment securities, which carry a low yield, resulting from a higher volume of deposits in the quarter, lower interest and fees related to loans issued under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), partially offset by higher discount amortization on purchased credit deteriorated (“PCD”) loans repaid during the quarter and a lower cost of deposits. On a taxable equivalent basis, net interest margin for the second quarter of 2021 was 3.22 % compared to 3.39% in the first quarter of 2021, a decrease of 17 basis points. The main variances in net interest income on a taxable equivalent basis were:

  • Higher interest income from money market investments, trading and investment securities by $9.7 million due to higher volume by $4.4 billion driven by deposit increases across all business lines, mainly government deposits. The taxable equivalent yield on these assets was 1.44%, compared to 1.52% the previous quarter; and
  • Lower interest expense on deposits by $2.1 million resulting from lower deposit cost by 4 basis points driven by a higher volume of low yielding deposits, reduction of costs in several non-maturity deposit products and renewals of time deposits in a lower interest rate environment. These positive variances in deposit costs were partially offset by higher volume of interest-bearing deposits by $3.3 billion.

Partially offset by:

  • Lower interest income from loans by $0.6 million mainly due to the following:
    • Lower interest income from commercial loans by $2.1 million resulting from lower SBA PPP interest income and fees of $9.2 million, partially offset by higher interest income by $7.2 million from PCD loans due to the accelerated discount amortization from several repaid loans and interest for one more day in the quarter of $1.9 million; and
    • Auto and lease financing increasing $124 million in average balances resulting an increase in interest income of $2.5 million.

The Corporation recognized interest income of $13.9 million related to loans issued under the SBA PPP program, compared to $23.1 million in the previous quarter. These loans carried a yield of approximately 4.45% in this quarter, including the amortization of fees received under the program, compared to 7.21% last quarter.

Net interest income for the Banco Popular de Puerto Rico (“BPPR”) segment amounted to $419.2 million for the quarter ended June 30, 2021, compared to $410.3 million in the previous quarter. Net interest margin for the second quarter of 2021 was 2.91%, a decrease of 19 basis points when compared to 3.10% for the previous quarter. As discussed above, the net interest margin was negatively impacted by a higher volume of money market and investment securities, lower fees from the cancellation and amortization of PPP loans of approximately $8.8 million, partially offset by a higher amortization of discount on PCD loans. The cost of interest-bearing deposits was 0.18%, down 3 basis points from the 0.21% reported in the previous quarter. Total cost of deposits for the quarter was 0.14%, compared to 0.16% reported in the first quarter of 2021.

Net interest income for Popular Bank (“PB”) was $78.7 million for the quarter ended June 30, 2021, compared to $79.2 million during the previous quarter. Net interest margin for the quarter was 3.33% lower than the 3.35% the previous quarter. The cost of interest-bearing deposits was 0.60%, compared to 0.66% in the previous quarter, decreasing for the seventh consecutive quarter. Total cost of deposits for the quarter, including demand deposits, was 0.47%, compared to 0.54% reported in the first quarter of 2021.

Non-interest income

Non-interest income increased by $0.9 million to $154.6 million for the quarter ended June 30, 2021, compared to $153.7 million for the quarter ended March 31, 2021. The variance in non-interest income was primarily driven by:

  • higher other service fees by $5.8 million, principally at the BPPR segment, due to higher credit card fees by $4.0 million, mainly in interchange income resulting from higher transactional volumes;
  • an increase in net gain on equity securities of $1.1 million mainly related to employee deferred compensation plans that have an offsetting expense on personnel related expenses;
  • a favorable variance in adjustments to indemnity reserves on previously sold loans of $2.4 million mainly due to a reserve release related to loans previously sold with credit recourse; and
  • higher other operating income by $1.1 million mainly due to higher net earnings from the combined portfolio of investments under the equity method by $2.4 million, partially offset by a lower gain on sale of daily auto rental units by $1.4 million;

    partially offset by:
  • lower income from mortgage banking activities by $9.9 million mainly due to an unfavorable variance in fair value adjustments on mortgage servicing rights (“MSRs”) of $6.8 million due to the negative adjustment in the second quarter mainly related to a reduction in estimated cash flows related to portfolio amortization and higher losses on closed derivative positions by $3.4 million.

Refer to Table B for further details.

Operating expenses

Operating expenses for the second quarter of 2021 totaled $368.2 million, a decrease of $7.3 million from the first quarter of 2021. The variance in operating expenses was driven primarily by:

  • lower personnel cost by $5.3 million due to $6.8 million of lower commission, incentives, and other bonuses, including lower performance shares and restricted stock expenses by $5.5 million, partially offset by higher pension, postretirement and medical insurance by $2.4 million due to higher premiums accruals;
  • lower net occupancy expense by $1.5 million due lower rent and electricity expenses;
  • lower credit and debit card processing, volume, interchange and other expenses by $1.5 million mainly due to transaction volume rebates and incentives; and
  • lower other operating expenses by $4.1 million due to a release of $4.5 million of mortgage servicing reserves related to claims and foreclosed loans, higher gain on sale of assets by $1.8 million and lower subsequent write-down of foreclosed auto units by $1.2 million; partially offset by higher sundry losses by $3.0 million due to higher legal reserves.

    Partially offset by:
  • higher business promotion expenses by $4.0 million due higher customer reward program expense in our credit card business by $2.5 million and higher advertising expense by $0.8 million.

Full-time equivalent employees were 8,439 as of June 30, 2021, compared to 8,469 as of March 31, 2021.

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

Income taxes

For the quarter ended June 30, 2021, the Corporation recorded an income tax expense of $73.1 million, compared to $76.8 million for the previous quarter. The decrease in income tax expense was mainly attributable to lower income before tax during the second quarter of 2021, partially offset by higher effective income tax rate in the P.R. operations and an increase in the blended state income tax rate for the U.S. operations during the second quarter of 2021. The effective tax rate (“ETR”) for the second quarter of 2021 was 25%, compared to 23% for the previous quarter. The ETR of the Corporation is impacted by the composition and source of its taxable income. The increase in the ETR rate for the second quarter of 2021 was primarily attributed to higher income at the Puerto Rico marginal tax rate.

Credit Quality

During the second quarter of 2021, the Corporation continued to exhibit favorable credit quality and low credit costs, outperforming pre-pandemic trends. These improvements have been aided by the significant government stimulus and the rebound in the economy. We will continue to closely monitor COVID-19 related risks and the effects of the receding stimulus on macroeconomic conditions and on borrower performance. However, management believes that the improvement over the last few years in the risk profile of the Corporation’s loan portfolios positions Popular to operate successfully under the current environment.

The following presents credit quality results for the second quarter of 2021:

  • At June 30, 2021, total non-performing loans held-in-portfolio decreased by $13.0 million from March 31, 2021. BPPR’s NPLs decreased by $9.2 million, driven by lower mortgage NPLs by $20.1 million, due to lower inflows for the quarter and lower consumer NPLs by $5.1 million, mostly driven by auto loans. This decrease was in part offset by higher commercial NPLs by $16.8 million mostly due to a single $32.4 million inflow, partially offset by the resolution of an $8.8 million relationship. PB’s NPLs decreased by $3.8 million, mostly related to a construction loan transferred to loans-held-for-sale. At June 30, 2021, the ratio of NPLs to total loans held-in-portfolio remained flat at 2.4% when compared to the first quarter of 2021.
  • Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $11.2 million quarter-over-quarter. In BPPR, total inflows increased by $17.0 million, mostly driven by higher commercial inflows of $31.9 million related to the abovementioned $32.4 million relationship. This increase was partly offset by lower mortgage inflows of $15.0 million, mostly due to improvements in early delinquencies. The NPL inflows at PB decreased by $5.8 million during the quarter.
  • NCOs decreased by $22.3 million from the first quarter of 2021 to net recoveries of $1.3 million. BPPR ‘s NCOs decreased by $21.0 million, primarily driven by lower commercial, mortgage and construction NCOs by $8.4 million, $7.4 million and $6.4 million, respectively. The decrease reflected in the commercial NCOs was mostly due to recoveries of $7.9 million related to the resolution of the abovementioned non-performing relationship. During the second quarter of 2021, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was (0.02)%, compared to 0.29% in the first quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios.
  • At June 30, 2021, the allowance for credit losses (“ACL”) decreased by $15.0 million from the first quarter of 2021 to $785.8 million. The ACL incorporated updated economic scenarios for the United States and Puerto Rico, which continued to show a positive outlook of the economy. In BPPR, the ACL decreased by $19.8 million, led by improvements in commercial and mortgage loans. The decrease in the allowance for commercial loans was mainly prompted by the release of a qualitative reserve for the hotel and hospitality portfolio due to the favorable economic environment and improvements in borrower performance. The reduction in the allowance for mortgage loans was led by a combination of improvements in economic scenarios and other assumptions used to estimate the reserve, as well as lower volumes. The allowance for the PB segment increased by $4.8 million. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.70% in the second quarter of 2021, compared to 2.75% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 114.7%, flat from the previous quarter.
  • Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The ACL is estimated by weighting the outputs of optimistic, baseline and pessimistic scenarios. Among the three scenarios used to estimate the ACL, the baseline is assigned the highest probability, followed by the pessimistic scenario given the uncertainties in the economic outlook and downside risk. The current baseline forecast continues to show a favorable economic scenario. The 2021 forecasted GDP growth is now at 6.8% for U.S. and 3.8% for P.R., compared to 4.9% and 3.4%, respectively, in the previous 2021 forecast. The forecasted U.S. unemployment rate average for 2021 is now 5.43%. This is an improvement over the previous estimate of 6.09%. In the case of P.R., the forecasted unemployment rate average for 2021 of 8.43% was slightly higher than the previous forecast of 7.98%. However, unemployment rate levels in P.R. are expected to continue declining through 2022. The P.R. forecasted average unemployment rate for 2022 of 7.25%, is lower than the previous forecast of 7.52%.
  • The provision for credit losses for the loans portfolios for the second quarter of 2021 reflected a benefit of $17.5 million, compared to a benefit of $75.8 million in the previous quarter. The provision for the BPPR segment was a benefit of $22.5 million, an unfavorable variance of $17.5 million compared to the previous quarter, while the provision expense for the PB segment was $5.0 million, an unfavorable variance of $40.8 million from the previous quarter. In the prior quarter, improvements in the economic forecasts prompted substantial reductions in reserves.
  • The provision for unfunded commitments for the second quarter of 2021 reflected an expense of $0.4 million, compared to a benefit of $6.2 million during the previous quarter. The provision for credit losses in our investment portfolio was an expense of $0.1 million, compared to a benefit of $0.2 million in the first quarter of 2021. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations.

Non-Performing Assets

 

(Unaudited)

 

 

 

 

 

(In thousands)

30-Jun-21

 

31-Mar-21

 

30-Jun-20

Non-performing loans held-in-portfolio

$685,183

 

$698,142

 

$760,204

Non-performing loans held-for-sale

8,700

 

3,549

 

6,778

Other real estate owned (“OREO”)

73,272

 

72,060

 

113,940

Total non-performing assets

$767,155

 

$773,751

 

$880,922

Net (recoveries) charge-offs for the quarter

$(1,291)

 

$21,030

 

$64,953

 

 

 

 

 

 

 

Ratios:

 

 

 

 

 

Loans held-in-portfolio

$29,062,617

 

$29,131,628

 

$29,070,553

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

2.36%

 

2.40%

 

2.62%

Allowance for credit losses to loans held-in-portfolio

2.70

 

2.75

 

3.16

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

114.68

 

114.70

 

120.81

Refer to Table K for additional information.

 

 

 

 

 

Provision for Credit Losses (Benefit) - Loan Portfolios

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Quarters ended

 

Six months ended

(In thousands)

 

30-Jun-21

 

31-Mar-21

 

30-Jun-20

 

30-Jun-21

30-Jun-20

Provision for credit losses (benefit) - loan portfolios:

 

 

 

 

 

 

 

 

 

BPPR

 

$(22,488)

 

$(39,976)

 

$60,423

 

$(62,464)

$173,427

Popular U.S.

 

4,988

 

(35,803)

 

2,681

 

(30,815)

78,672

Total provision for credit losses (benefit) - loan portfolios

 

$(17,500)

 

$(75,779)

 

$63,104

 

$(93,279)

$252,099

Credit Quality by Segment

(Unaudited)

 

 

 

 

 

 

(In thousands)

 

Quarters ended

BPPR

 

30-Jun-21

 

31-Mar-21

 

30-Jun-20

Provision for credit losses (benefit) - loan portfolios

 

$(22,488)

 

$(39,976)

 

$60,423

Net charge-offs

 

(1,483)

 

19,474

 

62,143

Total non-performing loans held-in-portfolio

656,789

 

665,978

 

726,603

Allowance / loans held-in-portfolio

3.13%

 

3.20%

 

3.53%

 

 

 

 

 

 

 

 

 

Quarters ended

Popular U.S.

 

30-Jun-21

 

31-Mar-21

 

30-Jun-20

Provision for credit losses (benefit) - loan portfolios

 

$4,988

 

$(35,803)

 

$2,681

Net charge-offs

 

192

 

1,556

 

2,810

Total non-performing loans held-in-portfolio

 

28,394

 

32,164

 

33,601

Allowance / loans held-in-portfolio

1.57%

 

1.53%

 

2.13%

Financial Condition Highlights

 

 

 

 

 

 

(Unaudited)

 

(In thousands)

30-Jun-21

 

31-Mar-21

 

30-Jun-20

Cash and money market investments

$18,333,650

 

$12,064,592

 

$10,060,358

Investment securities

22,647,401

 

23,076,488

 

21,058,918

Loans

29,062,617

 

29,131,628

 

29,070,553

Total assets

72,657,293

 

66,870,268

 

62,845,352

Deposits

64,641,776

 

58,742,801

 

53,844,300

Borrowings

1,267,545

 

1,311,064

 

1,339,339

Total liabilities

66,842,679

 

60,972,709

 

57,065,187

Stockholders’ equity

5,814,614

 

5,897,559

 

5,780,165

Total assets increased by $5.8 billion from the first quarter of 2021, driven by:

  • an increase of $6.3 billion in cash and money market investments mainly due to an increase in deposits;

    partially offset by:
  • a decrease of $0.4 billion in debt securities available-for-sale, mainly due to paydowns of agency mortgage-backed securities, partially offset by an increase of $0.1 billion in net unrealized gains in the portfolio and purchases of U.S. treasury securities.

Total liabilities increased by $5.9 billion from the first quarter of 2021, mainly due to an increase of $5.9 billion in deposits due to higher Puerto Rico public sector deposits by $4.3 billion and higher retail and commercial demand deposits by $1.5 billion at BPPR.

Stockholders’ equity decreased by approximately $82.9 million from the first quarter of 2021, principally due to the impact of the $350.0 million accelerated share repurchase transaction, offset by higher accumulated unrealized gains on debt securities available-for-sale by $73.0 million and net income for the quarter of $218.1 million, less declared dividends of $36.3 million on common stock and $0.4 million in dividends on preferred stock.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.55%, $71.82 and $63.24, respectively, at June 30, 2021, compared to 17.08%, $69.63 and $61.42 at March 31, 2021. Refer to Table A for capital ratios.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those 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 the COVID-19 pandemic), new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. 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, 2020, in our Form 10-Q for the quarter ended March 31, 2021 and in our Form 10-Q for the quarter ended June 30, 2021 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, July 22, 2021 at 11:00 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 Sunday, August 22, 2021. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10158030.

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

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

 

Table A - Selected Ratios and Other Information

 

Table B - Consolidated Statement of Operations

 

Table C - Consolidated Statement of Financial Condition

 

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

 

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

 

Table F - Mortgage Banking Activities and Other Service Fees

 

Table G - Loans and Deposits

 

Table H - Loan Delinquency - PUERTO RICO OPERATIONS

 

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

 

Table J - Loan Delinquency - CONSOLIDATED

 

Table K - Non-Performing Assets

 

Table L - Activity in Non-Performing Loans

 

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

 

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

 

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

 

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

 

Table Q - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to Second Quarter 2021 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

 

 

 

 

 

Quarters ended

Six months ended

 

30-Jun-21

31-Mar-21

30-Jun-20

30-Jun-21

30-Jun-20

Basic EPS

$2.67

$3.13

$1.49

$5.80

$1.83

Diluted EPS

$2.66

$3.12

$1.49

$5.79

$1.83

Average common shares outstanding

81,609,435

83,899,769

85,135,522

82,748,275

87,962,040

Average common shares outstanding - assuming dilution

81,772,789

84,051,935

85,161,661

82,888,378

88,039,712

Common shares outstanding at end of period

80,656,480

84,379,180

84,184,927

80,656,480

84,184,927

Market value per common share

$75.05

$70.32

$37.17

$75.05

$37.17

Market capitalization - (In millions)

$6,053

$5,934

$3,129

$6,053

$3,129

Return on average assets

1.24%

1.61%

0.87%

1.42%

0.59%

Return on average common equity

15.43%

18.76%

9.74%

17.08%

6.06%

Net interest margin (non-taxable equivalent basis)

2.91%

3.07%

3.25%

2.99%

3.58%

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

3.22%

3.39%

3.56%

3.31%

3.93%

Common equity per share

$71.82

$69.63

$68.40

$71.82

$68.40

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

$63.24

$61.42

$60.13

$63.24

$60.13

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

7.09%

7.83%

8.15%

7.09%

8.15%

Return on average tangible common equity [1]

17.58%

21.37%

11.23%

19.46%

6.97%

Tier 1 capital

16.62%

17.15%

15.78%

16.62%

15.78%

Total capital

19.09%

19.62%

18.29%

19.09%

18.29%

Tier 1 leverage

7.34%

8.06%

8.13%

7.34%

8.13%

Common Equity Tier 1 capital

16.55%

17.08%

15.71%

16.55%

15.71%

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

POPULAR, INC.

Financial Supplement to Second Quarter 2021 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

 

Quarters ended

Variance

Quarter ended

Variance

Six months ended

 

 

 

Q2 2021

 

Q2 2021

 

 

(In thousands, except per share information)

30-Jun-21

31-Mar-21

vs. Q1 2021

30-Jun-20

vs. Q2 2020

30-Jun-21

30-Jun-20

Interest income:

 

 

 

 

 

 

 

Loans

$433,781

$434,649

$(868)

$429,670

$4,111

$868,430

$880,116

Money market investments

4,274

3,112

1,162

2,015

2,259

7,386

14,015

Investment securities

91,706

85,690

6,016

76,884

14,822

177,396

164,796

Total interest income

529,761

523,451

6,310

508,569

21,192

1,053,212

1,058,927

Interest expense:

 

 

 

 

 

 

 

Deposits

28,060

30,201

(2,141)

42,780

(14,720)

58,261

104,881

Short-term borrowings

62

143

(81)

645

(583)

205

1,693

Long-term debt

13,837

13,995

(158)

14,263

(426)

27,832

28,377

Total interest expense

41,959

44,339

(2,380)

57,688

(15,729)

86,298

134,951

Net interest income

487,802

479,112

8,690

450,881

36,921

966,914

923,976

Provision for credit losses (benefit)

(17,015)

(82,226)

65,211

62,449

(79,464)

(99,241)

252,180

Net interest income after provision for credit losses (benefit)

504,817

561,338

(56,521)

388,432

116,385

1,066,155

671,796

Service charges on deposit accounts

40,153

39,620

533

30,163

9,990

79,773

71,822

Other service fees

76,382

70,628

5,754

52,084

24,298

147,010

116,857

Mortgage banking activities

7,448

17,343

(9,895)

3,777

3,671

24,791

10,197

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

1,565

421

1,144

2,447

(882)

1,986

(281)

Net (loss) profit on trading account debt securities

(47)

(45)

(2)

82

(129)

(92)

573

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

(73)

-

(73)

2,222

(2,295)

(73)

3,179

Adjustments (expense) to indemnity reserves on loans sold

1,668

(698)

2,366

(1,160)

2,828

970

(5,953)

Other operating income

27,444

26,384

1,060

22,440

5,004

53,828

42,304

Total non-interest income

154,540

153,653

887

112,055

42,485

308,193

238,698

Operating expenses:

 

 

 

 

 

 

 

Personnel costs

 

 

 

 

 

 

 

Salaries

90,294

89,335

959

93,969

(3,675)

179,629

186,225

Commissions, incentives and other bonuses

26,374

33,218

(6,844)

16,076

10,298

59,592

41,334

Pension, postretirement and medical insurance

13,289

10,924

2,365

11,392

1,897

24,213

21,030

Other personnel costs, including payroll taxes

24,247

26,002

(1,755)

17,729

6,518

50,249

37,408

Total personnel costs

154,204

159,479

(5,275)

139,166

15,038

313,683

285,997

Net occupancy expenses

24,562

26,013

(1,451)

25,487

(925)

50,575

50,645

Equipment expenses

22,805

21,575

1,230

20,844

1,961

44,380

42,449

Other taxes

13,205

13,959

(754)

13,323

(118)

27,164

27,004

Professional fees

 

 

 

 

 

 

 

Collections, appraisals and other credit related fees

3,486

3,320

166

2,897

589

6,806

6,778

Programming, processing and other technology services

67,152

66,366

786

59,387

7,765

133,518

122,206

Legal fees, excluding collections

2,367

2,365

2

2,184

183

4,732

5,170

Other professional fees

28,148

27,897

251

28,079

69

56,045

59,464

Total professional fees

101,153

99,948

1,205

92,547

8,606

201,101

193,618

Communications

6,005

6,833

(828)

5,574

431

12,838

11,528

Business promotion

16,511

12,521

3,990

12,281

4,230

29,032

26,478

FDIC deposit insurance

5,742

5,968

(226)

5,340

402

11,710

10,420

Other real estate owned (OREO) (income) expenses

(4,299)

(4,533)

234

(344)

(3,955)

(8,832)

2,135

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

10,917

12,454

(1,537)

9,873

1,044

23,371

20,155

Other operating expenses

 

 

 

 

 

 

 

Operational losses

6,528

7,896

(1,368)

4,128

2,400

14,424

12,502

All other

9,597

12,364

(2,767)

18,217

(8,620)

21,961

33,640

Total other operating expenses

16,125

20,260

(4,135)

22,345

(6,220)

36,385

46,142

Amortization of intangibles

1,255

1,051

204

1,795

(540)

2,306

4,268

Total operating expenses

368,185

375,528

(7,343)

348,231

19,954

743,713

720,839

Income before income tax

291,172

339,463

(48,291)

152,256

138,916

630,635

189,655

Income tax expense

73,093

76,831

(3,738)

24,628

48,465

149,924

27,725

Net income

$218,079

$262,632

$(44,553)

$127,628

$90,451

$480,711

$161,930

Net income applicable to common stock

$217,726

$262,279

$(44,553)

$127,275

$90,451

$480,005

$160,877

Net income per common share - basic

$2.67

$3.13

$(0.46)

$1.49

$1.18

$5.80

$1.83

Net income per common share - diluted

$2.66

$3.12

$(0.46)

$1.49

$1.17

$5.79

$1.83

Dividends Declared per Common Share

$0.45

$0.40

$0.05

$0.40

$0.05

$0.85

$0.80

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

 

 

 

 

Variance

 

 

 

 

Q2 2021 vs.

(In thousands)

30-Jun-21

31-Mar-21

30-Jun-20

Q1 2021

Assets:

 

 

 

 

Cash and due from banks

$530,849

$495,915

$435,080

$34,934

Money market investments

17,802,801

11,568,677

9,625,278

6,234,124

Trading account debt securities, at fair value

35,931

36,504

33,560

(573)

Debt securities available-for-sale, at fair value

22,335,167

22,771,609

20,763,453

(436,442)

Debt securities held-to-maturity, at amortized cost

88,801

89,725

95,429

(924)

Less: Allowance for credit losses

10,214

10,096

12,735

118

Total debt securities held-to-maturity, net

78,587

79,629

82,694

(1,042)

Equity securities

187,502

178,650

166,476

8,852

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

85,315

84,214

68,725

1,101

Loans held-in-portfolio

29,286,225

29,344,620

29,250,076

(58,395)

Less: Unearned income

223,608

212,992

179,523

10,616

Allowance for credit losses

785,790

800,797

918,434

(15,007)

Total loans held-in-portfolio, net

28,276,827

28,330,831

28,152,119

(54,004)

Premises and equipment, net

486,443

508,023

513,680

(21,580)

Other real estate

73,272

72,060

113,940

1,212

Accrued income receivable

203,419

215,993

220,126

(12,574)

Mortgage servicing rights, at fair value

119,467

122,543

141,144

(3,076)

Other assets

1,750,151

1,713,083

1,833,444

37,068

Goodwill

671,122

671,122

671,122

-

Other intangible assets

20,440

21,415

24,511

(975)

Total assets

$72,657,293

$66,870,268

$62,845,352

$5,787,025

Liabilities and Stockholders’ Equity:

 

 

 

 

Liabilities:

 

 

 

 

Deposits:

 

 

 

 

Non-interest bearing

$14,920,887

$14,263,548

$12,520,510

$657,339

Interest bearing

49,720,889

44,479,253

41,323,790

5,241,636

Total deposits

64,641,776

58,742,801

53,844,300

5,898,975

Assets sold under agreements to repurchase

90,925

86,834

153,065

4,091

Notes payable

1,176,620

1,224,230

1,186,274

(47,610)

Other liabilities

933,358

918,844

1,881,548

14,514

Total liabilities

66,842,679

60,972,709

57,065,187

5,869,970

Stockholders’ equity:

 

 

 

 

Preferred stock

22,143

22,143

22,143

-

Common stock

1,045

1,045

1,044

-

Surplus

4,506,659

4,571,919

4,520,333

(65,260)

Retained earnings

2,670,885

2,489,453

2,033,782

181,432

Treasury stock

(1,290,427)

(1,012,263)

(1,016,486)

(278,164)

Accumulated other comprehensive (loss) income, net of tax

(95,691)

(174,738)

219,349

79,047

Total stockholders’ equity

5,814,614

5,897,559

5,780,165

(82,945)

Total liabilities and stockholders’ equity

$72,657,293

$66,870,268

$62,845,352

$5,787,025

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

Variance

 

 

30-Jun-21

 

31-Mar-21

 

30-Jun-20

 

Q2 2021 vs. Q1 2021

 

Q2 2021 vs. Q2 2020

 

($ amounts in millions)

Average balance

Income / Expense

Yield / Rate

 

Average balance

Income / Expense

Yield / Rate

 

Average balance

Income / Expense

Yield / Rate

 

Average balance

Income / Expense

Yield / Rate

 

Average balance

Income / Expense

Yield / Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market, trading and investment securities

$38,136

$137.5

1.44

%

$33,756

$127.8

1.52

%

$27,356

$111.5

1.64

%

$4,380

$9.7

(0.08)

%

$10,780

$26.0

(0.20)

%

Loans:

Commercial

13,539

176.9

5.24

 

13,624

179.0

5.33

 

13,350

168.8

5.09

 

(85)

(2.1)

(0.09)

 

189

8.1

0.15

 

Construction

858

11.6

5.43

 

911

11.9

5.30

 

935

13.2

5.69

 

(53)

(0.3)

0.13

 

(77)

(1.6)

(0.26)

 

Mortgage

7,765

99.4

5.12

 

7,869

98.4

5.00

 

7,038

92.2

5.24

 

(104)

1.0

0.12

 

727

7.2

(0.12)

 

Consumer

2,431

68.7

11.34

 

2,513

70.4

11.36

 

2,918

82.9

11.43

 

(82)

(1.7)

(0.02)

 

(487)

(14.2)

(0.09)

 

Auto

3,280

70.1

8.58

 

3,203

68.2

8.63

 

2,957

66.0

8.98

 

77

1.9

(0.05)

 

323

4.1

(0.40)

 

Lease financing

1,262

19.0

6.01

 

1,215

18.4

6.04

 

1,082

16.1

5.97

 

47

0.6

(0.03)

 

180

2.9

0.04

 

Total loans

29,135

445.7

6.13

 

29,335

446.3

6.15

 

28,280

439.2

6.24

 

(200)

(0.6)

(0.02)

 

855

6.5

(0.11)

 

Total interest earning assets

$67,271

$583.2

3.47

%

$63,091

$574.1

3.67

%

$55,636

$550.7

3.98

%

$4,180

$9.1

(0.20)

%

$11,635

$32.5

(0.51)

%

Allowance for credit losses - loan portfolio

(801)

 

 

 

(890)

 

 

 

(926)

 

 

 

89

 

 

 

125

 

 

 

Allowance for credit losses - investment securities

(10)

 

 

 

(10)

 

 

 

(13)

 

 

 

-

 

 

 

3

 

 

 

Other non-interest earning assets

3,906

 

 

 

3,895

 

 

 

4,100

 

 

 

11

 

 

 

(194)

 

 

 

Total average assets

$70,366

 

 

 

$66,086

 

 

 

$58,797

 

 

 

$4,280

 

 

 

$11,569

 

 

 

Liabilities and Stockholders' Equity:

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market

$25,102

$8.0

0.13

%

$22,674

$8.3

0.15

%

$19,392

$11.6

0.24

%

$2,428

$(0.3)

(0.02)

%

$5,710

$(3.6)

(0.11)

%

Savings

15,384

6.9

0.18

 

14,364

7.0

0.20

 

11,856

10.2

0.35

 

1,020

(0.1)

(0.02)

 

3,528

(3.3)

(0.17)

 

Time deposits

7,104

13.2

0.74

 

7,265

14.9

0.83

 

8,730

21.0

0.97

 

(161)

(1.7)

(0.09)

 

(1,626)

(7.8)

(0.23)

 

Total interest-bearing deposits

47,590

28.1

0.24

 

44,303

30.2

0.28

 

39,978

42.8

0.43

 

3,287

(2.1)

(0.04)

 

7,612

(14.7)

(0.19)

 

Borrowings

1,316

13.9

4.24

 

1,344

14.1

4.23

 

1,336

14.9

4.48

 

(28)

(0.2)

0.01

 

(20)

(1.0)

(0.24)

 

Total interest-bearing liabilities

48,906

42.0

0.34

 

45,647

44.3

0.39

 

41,314

57.7

0.56

 

3,259

(2.3)

(0.05)

 

7,592

(15.7)

(0.22)

 

Net interest spread

 

 

3.13

%

 

 

3.28

%

 

 

3.42

%

 

 

(0.15)

%

 

 

(0.29)

%

Non-interest bearing deposits

14,920

 

 

 

13,394

 

 

 

11,006

 

 

 

1,526

 

 

 

3,914

 

 

 

Other liabilities

857

 

 

 

1,351

 

 

 

1,203

 

 

 

(494)

 

 

 

(346)

 

 

 

Stockholders' equity

5,683

 

 

 

5,694

 

 

 

5,274

 

 

 

(11)

 

 

 

409

 

 

 

Total average liabilities and stockholders' equity

$70,366

 

 

 

$66,086

 

 

 

$58,797

 

 

 

$4,280

 

 

 

$11,569

 

 

 

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

$541.2

3.22

%

 

$529.8

3.39

%

 

$493.0

3.56

%

 

$11.4

(0.17)

%

 

$48.2

(0.34)

%

Taxable equivalent adjustment

53.4

 

 

 

50.7

 

 

 

42.1

 

 

 

2.7

 

 

 

11.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$487.8

2.91

%

 

$479.1

3.07

%

 

$450.9

3.25

%

 

$8.7

(0.16)

%

 

$36.9

(0.34)

%

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

 

Six months ended

 

 

 

 

 

30-Jun-21

30-Jun-20

 

Variance

 

Average

Income /

Yield /

Average

Income /

Yield /

 

Average

Income /

Yield /

($ amounts in millions)

balance

Expense

Rate

balance

Expense

Rate

 

balance

Expense

Rate

Assets:

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

Money market, trading and investment securities

$35,958

$267.0

1.49

%

$24,050

$247.2

2.06

%

$11,908

$19.8

(0.57)

%

Loans:

 

 

 

 

 

 

 

 

 

 

Commercial

13,582

355.9

5.30

12,846

352.0

5.51

 

736

3.9

(0.21)

Construction

884

23.5

5.38

898

26.4

5.91

 

(14)

(2.9)

(0.53)

Mortgage

7,816

197.8

5.06

7,033

185.4

5.27

 

783

12.4

(0.21)

Consumer

2,472

139.1

11.35

3,014

172.2

11.49

 

(542)

(33.1)

(0.14)

Auto

3,241

138.3

8.63

2,975

133.8

9.04

 

266

4.5

(0.41)

Lease financing

1,239

37.3

6.02

1,077

32.4

6.02

 

162

4.9

-

Total loans

29,234

891.9

6.15

27,843

902.2

6.51

 

1,391

(10.3)

(0.36)

 

Total interest earning assets

$65,192

$1,158.9

3.58

%

$51,893

$1,149.4

4.45

%

$13,299

$9.5

(0.87)

%

Allowance for credit losses - loan portfolio

(845)

 

 

(867)

 

 

 

22

 

 

Allowance for credit losses - investment securities

(10)

 

 

(13)

 

 

 

3

 

 

Other non-interest earning assets

3,900

 

 

4,064

 

 

 

(164)

 

 

Total average assets

$68,237

 

 

$55,077

 

 

 

$13,160

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

NOW and money market

$23,895

$16.2

0.14

%

$17,811

$36.8

0.42

%

$6,084

($20.6)

(0.28)

%

Savings

14,876

14.0

0.19

11,290

21.9

0.39

 

3,586

(7.9)

(0.20)

Time deposits

7,184

28.1

0.79

8,211

46.1

1.13

 

(1,027)

(18.0)

(0.34)

Total interest-bearing deposits

45,955

58.3

0.26

37,312

104.8

0.57

 

8,643

(46.5)

(0.31)

Borrowings

1,330

28.0

4.24

1,331

30.1

4.53

 

(1)

(2.1)

(0.29)

Total interest-bearing liabilities

47,285

86.3

0.37

38,643

134.9

0.70

 

8,642

(48.6)

(0.33)

Net interest spread

 

 

3.21

%

 

 

3.75

%

 

 

(0.54)

%

Non-interest bearing deposits

14,161

 

 

10,004

 

 

 

4,157

 

 

Other liabilities

1,103

 

 

1,052

 

 

 

51

 

 

Stockholders' equity

5,688

 

 

5,378

 

 

 

310

 

 

Total average liabilities and stockholders' equity

$68,237

 

 

$55,077

 

 

 

$13,160

 

 

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

$1,072.6

3.31

%

 

$1,014.5

3.93

%

 

$58.1

(0.62)

%

Taxable equivalent adjustment

105.7

 

 

90.5

 

 

 

15.2

 

 

 

 

 

 

 

 

 

 

 

 

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

$966.9

2.99

%

 

$924.0

3.58

%

 

$42.9

(0.59)

%

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)

 

 

 

 

 

 

 

 

 

Mortgage Banking Activities

 

Quarters ended

Variance

Six months ended

Variance

(In thousands)

30-Jun-21

31-Mar-21

30-Jun-20

Q2 2021 vs.
Q1 2021

Q2 2021 vs.
Q2 2020

30-Jun-21

30-Jun-20

2021 vs. 2020

Mortgage servicing fees, net of fair value adjustments:

 

 

 

 

 

 

 

 

Mortgage servicing fees

$9,522

$9,715

$9,058

$(193)

$464

$19,237

$20,026

$(789)

Mortgage servicing rights fair value adjustments

(6,239)

512

(7,640)

(6,751)

1,401

(5,727)

(12,869)

7,142

Total mortgage servicing fees, net of fair value adjustments

3,283

10,227

1,418

(6,944)

1,865

13,510

7,157

6,353

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

5,197

4,975

5,487

222

(290)

10,172

9,473

699

Trading account (loss) profit:

 

 

 

 

 

 

 

 

Unrealized gains (losses) on outstanding derivative positions

-

-

1,695

-

(1,695)

-

-

-

Realized (losses) gains on closed derivative positions

(866)

2,502

(4,823)

(3,368)

3,957

1,636

(6,433)

8,069

Total trading account (loss) profit

(866)

2,502

(3,128)

(3,368)

2,262

1,636

(6,433)

8,069

Losses on repurchased loans, including interest advances[1]

(166)

(361)

-

195

(166)

(527)

-

(527)

Total mortgage banking activities

$7,448

$17,343

$3,777

$(9,895)

$3,671

$24,791

$10,197

$14,594

[1]The Corporation, from time to time, repurchases delinquent loans from its GNMA servicing portfolio, in compliance with Guarantor guidelines, and may incur in losses related to previously advanced interest on delinquent loans. Effective for the quarter ended September 30, 2020, the Corporation has determined to present these losses as part of its Mortgage Banking Activities, which were previously presented with the indemnity reserves on loans sold component of non-interest income. The amount of these losses for prior years were considered immaterial for reclassification.

 

 

 

 

 

 

 

 

 

 

Other Service Fees

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

Variance

Six months ended

Variance

(In thousands)

 

30-Jun-21

31-Mar-21

30-Jun-20

Q2 2021
vs. Q1 2021

Q2 2021
vs. Q2 2020

30-Jun-21

30-Jun-20

2021 vs.
2020

Other service fees:

 

 

 

 

 

 

 

 

 

Debit card fees

 

$12,458

$11,577

$7,082

$881

$5,376

$24,035

$17,319

$6,716

Insurance fees

 

12,773

12,828

11,301

(55)

1,472

25,601

24,270

1,331

Credit card fees

 

32,726

28,691

17,762

4,035

14,964

61,417

40,948

20,469

Sale and administration of investment products

 

5,970

5,540

4,910

430

1,060

11,510

11,173

337

Trust fees

 

6,165

5,842

5,546

323

619

12,007

10,806

1,201

Other fees

 

6,290

6,150

5,483

140

807

12,440

12,341

99

Total other service fees

 

$76,382

$70,628

$52,084

$5,754

$24,298

$147,010

$116,857

$30,153

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table G - Loans and Deposits

(Unaudited)

 

 

 

 

 

 

Loans - Ending Balances

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

30-Jun-21

31-Mar-21

30-Jun-20

Q2 2021
vs.
Q1 2021

Q2 2021
vs.
Q2 2020

Loans held-in-portfolio:

 

 

 

 

Commercial

$13,437,932

$13,442,486

$13,744,579

$(4,554)

$(306,647)

Construction

865,113

907,736

936,010

(42,623)

(70,897)

Lease financing

1,297,928

1,244,956

1,098,188

52,972

199,740

Mortgage

7,678,478

7,808,852

7,521,795

(130,374)

156,683

Auto

3,289,027

3,203,137

2,904,324

85,890

384,703

Consumer

2,494,139

2,524,461

2,865,657

(30,322)

(371,518)

Total loans held-in-portfolio

$29,062,617

$29,131,628

$29,070,553

$(69,011)

$(7,936)

Loans held-for-sale:

 

 

 

 

 

Commercial

$1,700

$3,549

$6,778

$(1,849)

$(5,078)

Construction

7,000

-

-

7,000

7,000

Mortgage

76,615

80,665

61,947

(4,050)

14,668

Total loans held-for-sale

$85,315

$84,214

$68,725

$1,101

$16,590

Total loans

$29,147,932

$29,215,842

$29,139,278

$(67,910)

$8,654

Deposits - Ending Balances

 

 

 

 

 

 

 

 

Variance

(In thousands)

30-Jun-21

31-Mar-21

30-Jun-20

Q2 2021
vs.
Q1 2021

Q2 2021
vs.
Q2 2020

Demand deposits [1]

$24,497,918

$23,450,312

$22,731,726

$1,047,606

$1,766,192

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

32,452,829

27,356,136

22,457,951

5,096,693

9,994,878

Savings, NOW and money market deposits (brokered)

683,021

679,832

522,929

3,189

160,092

Time deposits (non-brokered)

6,979,349

7,143,221

7,919,265

(163,872)

(939,916)

Time deposits (brokered CDs)

28,659

113,300

212,429

(84,641)

(183,770)

Total deposits

$64,641,776

$58,742,801

$53,844,300

$5,898,975

$10,797,476

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

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)

30-Jun-21

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

 

$

128

 

$

-

 

$

397

 

$

525

 

$

151,258

 

$

151,783

 

 

$

397

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

32,749

 

 

-

 

 

72,378

 

 

105,127

 

 

1,888,302

 

 

1,993,429

 

 

 

72,378

 

 

-

Owner occupied

 

 

3,995

 

 

604

 

 

79,808

 

 

84,407

 

 

1,380,022

 

 

1,464,429

 

 

 

79,808

 

 

-

Commercial and industrial

 

 

2,314

 

 

682

 

 

65,727

 

 

68,723

 

 

3,952,675

 

 

4,021,398

 

 

 

65,120

 

 

607

Construction

 

 

-

 

 

3,080

 

 

14,877

 

 

17,957

 

 

124,990

 

 

142,947

 

 

 

14,877

 

 

-

Mortgage

 

 

164,779

 

 

73,492

 

 

995,175

 

 

1,233,446

 

 

5,281,711

 

 

6,515,157

 

 

 

370,653

 

 

624,522

Leasing

 

 

6,054

 

 

2,103

 

 

2,286

 

 

10,443

 

 

1,287,485

 

 

1,297,928

 

 

 

2,286

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

4,371

 

 

2,826

 

 

8,021

 

 

15,218

 

 

864,912

 

 

880,130

 

 

 

-

 

 

8,021

Home equity lines of credit

 

 

-

 

 

-

 

 

-

 

 

-

 

 

3,489

 

 

3,489

 

 

 

-

 

 

-

Personal

 

 

9,405

 

 

4,444

 

 

23,861

 

 

37,710

 

 

1,227,582

 

 

1,265,292

 

 

 

23,861

 

 

-

Auto

 

 

39,032

 

 

7,405

 

 

13,286

 

 

59,723

 

 

3,229,304

 

 

3,289,027

 

 

 

13,286

 

 

-

Other

 

 

214

 

 

97

 

 

14,288

 

 

14,599

 

 

108,427

 

 

123,026

 

 

 

14,123

 

 

165

Total

 

$

263,041

 

$

94,733

 

$

1,290,104

 

$

1,647,878

 

$

19,500,157

 

$

21,148,035

 

 

$

656,789

 

$

633,315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Mar-21

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

 

$

196

 

$

-

 

$

814

 

$

1,010

 

$

137,097

 

$

138,107

 

 

$

814

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

939

 

 

25,406

 

 

76,524

 

 

102,869

 

 

1,958,129

 

 

2,060,998

 

 

 

76,524

 

 

-

Owner occupied

 

 

6,749

 

 

2,114

 

 

89,752

 

 

98,615

 

 

1,413,356

 

 

1,511,971

 

 

 

89,752

 

 

-

Commercial and industrial

 

 

3,870

 

 

650

 

 

34,333

 

 

38,853

 

 

4,032,359

 

 

4,071,212

 

 

 

33,773

 

 

560

Construction

 

 

639

 

 

-

 

 

14,877

 

 

15,516

 

 

145,081

 

 

160,597

 

 

 

14,877

 

 

-

Mortgage

 

 

175,930

 

 

83,770

 

 

1,211,935

 

 

1,471,635

 

 

5,204,344

 

 

6,675,979

 

 

 

390,781

 

 

821,154

Leasing

 

 

7,564

 

 

1,408

 

 

3,040

 

 

12,012

 

 

1,232,944

 

 

1,244,956

 

 

 

3,040

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

4,824

 

 

3,883

 

 

10,779

 

 

19,486

 

 

858,255

 

 

877,741

 

 

 

-

 

 

10,779

Home equity lines of credit

 

 

-

 

 

-

 

 

46

 

 

46

 

 

3,498

 

 

3,544

 

 

 

-

 

 

46

Personal

 

 

10,216

 

 

6,250

 

 

25,731

 

 

42,197

 

 

1,219,094

 

 

1,261,291

 

 

 

25,731

 

 

-

Auto

 

 

47,396

 

 

8,783

 

 

15,405

 

 

71,584

 

 

3,131,553

 

 

3,203,137

 

 

 

15,405

 

 

-

Other

 

 

360

 

 

375

 

 

15,489

 

 

16,224

 

 

108,508

 

 

124,732

 

 

 

15,281

 

 

208

Total

 

$

258,683

 

$

132,639

 

$

1,498,725

 

$

1,890,047

 

$

19,444,218

 

$

21,334,265

 

 

$

665,978

 

$

832,747

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

 

$

(68)

 

$

-

 

$

(417)

 

$

(485)

 

$

14,161

 

$

13,676

 

 

$

(417)

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

31,810

 

 

(25,406)

 

 

(4,146)

 

 

2,258

 

 

(69,827)

 

 

(67,569)

 

 

 

(4,146)

 

 

-

Owner occupied

 

 

(2,754)

 

 

(1,510)

 

 

(9,944)

 

 

(14,208)

 

 

(33,334)

 

 

(47,542)

 

 

 

(9,944)

 

 

-

Commercial and industrial

 

 

(1,556)

 

 

32

 

 

31,394

 

 

29,870

 

 

(79,684)

 

 

(49,814)

 

 

 

31,347

 

 

47

Construction

 

 

(639)

 

 

3,080

 

 

-

 

 

2,441

 

 

(20,091)

 

 

(17,650)

 

 

 

-

 

 

-

Mortgage

 

 

(11,151)

 

 

(10,278)

 

 

(216,760)

 

 

(238,189)

 

 

77,367

 

 

(160,822)

 

 

 

(20,128)

 

 

(196,632)

Leasing

 

 

(1,510)

 

 

695

 

 

(754)

 

 

(1,569)

 

 

54,541

 

 

52,972

 

 

 

(754)

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

(453)

 

 

(1,057)

 

 

(2,758)

 

 

(4,268)

 

 

6,657

 

 

2,389

 

 

 

-

 

 

(2,758)

Home equity lines of credit

 

 

-

 

 

-

 

 

(46)

 

 

(46)

 

 

(9)

 

 

(55)

 

 

 

-

 

 

(46)

Personal

 

 

(811)

 

 

(1,806)

 

 

(1,870)

 

 

(4,487)

 

 

8,488

 

 

4,001

 

 

 

(1,870)

 

 

-

Auto

 

 

(8,364)

 

 

(1,378)

 

 

(2,119)

 

 

(11,861)

 

 

97,751

 

 

85,890

 

 

 

(2,119)

 

 

-

Other

 

 

(146)

 

 

(278)

 

 

(1,201)

 

 

(1,625)

 

 

(81)

 

 

(1,706)

 

 

 

(1,158)

 

 

(43)

Total

 

$

4,358

 

$

(37,906)

 

$

(208,621)

 

$

(242,169)

 

$

55,939

 

$

(186,230)

 

 

$

(9,189)

 

$

(199,432)

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

June 30, 2021

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

 

$

-

 

$

-

 

$

5,949

 

$

5,949

 

$

1,733,104

 

$

1,739,053

 

 

$

5,949

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

-

 

 

-

 

 

374

 

 

374

 

 

2,131,860

 

 

2,132,234

 

 

 

374

 

 

-

Owner occupied

 

 

907

 

 

639

 

 

193

 

 

1,739

 

 

338,445

 

 

340,184

 

 

 

193

 

 

-

Commercial and industrial

 

 

3,070

 

 

509

 

 

1,346

 

 

4,925

 

 

1,590,497

 

 

1,595,422

 

 

 

1,346

 

 

-

Construction

 

 

-

 

 

-

 

 

-

 

 

-

 

 

722,166

 

 

722,166

 

 

 

-

 

 

-

Mortgage

 

 

2,498

 

 

5,005

 

 

13,323

 

 

20,826

 

 

1,142,495

 

 

1,163,321

 

 

 

13,323

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

31

 

 

31

 

 

 

-

 

 

-

Home equity lines of credit

 

 

501

 

 

210

 

 

6,377

 

 

7,088

 

 

74,850

 

 

81,938

 

 

 

6,377

 

 

-

Personal

 

 

572

 

 

579

 

 

832

 

 

1,983

 

 

135,014

 

 

136,997

 

 

 

832

 

 

-

Other

 

 

-

 

 

-

 

 

-

 

 

-

 

 

3,236

 

 

3,236

 

 

 

-

 

 

-

Total

 

$

7,548

 

$

6,942

 

$

28,394

 

$

42,884

 

$

7,871,698

 

$

7,914,582

 

 

$

28,394

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2021

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

 

$

30,185

 

$

-

 

$

-

 

$

30,185

 

$

1,724,802

 

$

1,754,987

 

 

$

-

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

8,280

 

 

-

 

 

392

 

 

8,672

 

 

2,034,383

 

 

2,043,055

 

 

 

392

 

 

-

Owner occupied

 

 

5,437

 

 

644

 

 

323

 

 

6,404

 

 

323,541

 

 

329,945

 

 

 

323

 

 

-

Commercial and industrial

 

 

7,226

 

 

1,321

 

 

1,201

 

 

9,748

 

 

1,522,463

 

 

1,532,211

 

 

 

1,192

 

 

9

Construction

 

 

11,110

 

 

-

 

 

7,523

 

 

18,633

 

 

728,506

 

 

747,139

 

 

 

7,523

 

 

-

Mortgage

 

 

13,032

 

 

1,762

 

 

14,793

 

 

29,587

 

 

1,103,286

 

 

1,132,873

 

 

 

14,793

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

22

 

 

22

 

 

 

-

 

 

-

Home equity lines of credit

 

 

121

 

 

10

 

 

6,855

 

 

6,986

 

 

82,631

 

 

89,617

 

 

 

6,855

 

 

-

Personal

 

 

1,156

 

 

666

 

 

1,086

 

 

2,908

 

 

162,540

 

 

165,448

 

 

 

1,086

 

 

-

Other

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2,066

 

 

2,066

 

 

 

-

 

 

-

Total

 

$

76,547

 

$

4,403

 

$

32,173

 

$

113,123

 

$

7,684,240

 

$

7,797,363

 

 

$

32,164

 

$

9

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

 

$

(30,185)

 

$

-

 

$

5,949

 

$

(24,236)

 

$

8,302

 

$

(15,934)

 

 

$

5,949

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

(8,280)

 

 

-

 

 

(18)

 

 

(8,298)

 

 

97,477

 

 

89,179

 

 

 

(18)

 

 

-

Owner occupied

 

 

(4,530)

 

 

(5)

 

 

(130)

 

 

(4,665)

 

 

14,904

 

 

10,239

 

 

 

(130)

 

 

-

Commercial and industrial

 

 

(4,156)

 

 

(812)

 

 

145

 

 

(4,823)

 

 

68,034

 

 

63,211

 

 

 

154

 

 

(9)

Construction

 

 

(11,110)

 

 

-

 

 

(7,523)

 

 

(18,633)

 

 

(6,340)

 

 

(24,973)

 

 

 

(7,523)

 

 

-

Mortgage

 

 

(10,534)

 

 

3,243

 

 

(1,470)

 

 

(8,761)

 

 

39,209

 

 

30,448

 

 

 

(1,470)

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

9

 

 

9

 

 

 

-

 

 

-

Home equity lines of credit

 

 

380

 

 

200

 

 

(478)

 

 

102

 

 

(7,781)

 

 

(7,679)

 

 

 

(478)

 

 

-

Personal

 

 

(584)

 

 

(87)

 

 

(254)

 

 

(925)

 

 

(27,526)

 

 

(28,451)

 

 

 

(254)

 

 

-

Other

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,170

 

 

1,170

 

 

 

-

 

 

-

Total

 

$

(68,999)

 

$

2,539

 

$

(3,779)

 

$

(70,239)

 

$

187,458

 

$

117,219

 

 

$

(3,770)

 

$

(9)

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Jun-21

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

$

128

 

$

-

 

$

6,346

 

$

6,474

 

$

1,884,362

 

$

1,890,836

 

 

$

6,346

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

32,749

 

 

-

 

 

72,752

 

 

105,501

 

 

4,020,162

 

 

4,125,663

 

 

 

72,752

 

 

-

Owner occupied

 

4,902

 

 

1,243

 

 

80,001

 

 

86,146

 

 

1,718,467

 

 

1,804,613

 

 

 

80,001

 

 

-

Commercial and industrial

 

5,384

 

 

1,191

 

 

67,073

 

 

73,648

 

 

5,543,172

 

 

5,616,820

 

 

 

66,466

 

 

607

Construction

 

-

 

 

3,080

 

 

14,877

 

 

17,957

 

 

847,156

 

 

865,113

 

 

 

14,877

 

 

-

Mortgage

 

167,277

 

 

78,497

 

 

1,008,498

 

 

1,254,272

 

 

6,424,206

 

 

7,678,478

 

 

 

383,976

 

 

624,522

Leasing

 

6,054

 

 

2,103

 

 

2,286

 

 

10,443

 

 

1,287,485

 

 

1,297,928

 

 

 

2,286

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

4,371

 

 

2,826

 

 

8,021

 

 

15,218

 

 

864,943

 

 

880,161

 

 

 

-

 

 

8,021

Home equity lines of credit

 

501

 

 

210

 

 

6,377

 

 

7,088

 

 

78,339

 

 

85,427

 

 

 

6,377

 

 

-

Personal

 

9,977

 

 

5,023

 

 

24,693

 

 

39,693

 

 

1,362,596

 

 

1,402,289

 

 

 

24,693

 

 

-

Auto

 

39,032

 

 

7,405

 

 

13,286

 

 

59,723

 

 

3,229,304

 

 

3,289,027

 

 

 

13,286

 

 

-

Other

 

214

 

 

97

 

 

14,288

 

 

14,599

 

 

111,663

 

 

126,262

 

 

 

14,123

 

 

165

Total

$

270,589

 

$

101,675

 

$

1,318,498

 

$

1,690,762

 

$

27,371,855

 

$

29,062,617

 

 

$

685,183

 

$

633,315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Mar-21

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

$

30,381

 

$

-

 

$

814

 

$

31,195

 

$

1,861,899

 

$

1,893,094

 

 

$

814

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

9,219

 

 

25,406

 

 

76,916

 

 

111,541

 

 

3,992,512

 

 

4,104,053

 

 

 

76,916

 

 

-

Owner occupied

 

12,186

 

 

2,758

 

 

90,075

 

 

105,019

 

 

1,736,897

 

 

1,841,916

 

 

 

90,075

 

 

-

Commercial and industrial

 

11,096

 

 

1,971

 

 

35,534

 

 

48,601

 

 

5,554,822

 

 

5,603,423

 

 

 

34,965

 

 

569

Construction

 

11,749

 

 

-

 

 

22,400

 

 

34,149

 

 

873,587

 

 

907,736

 

 

 

22,400

 

 

-

Mortgage

 

188,962

 

 

85,532

 

 

1,226,728

 

 

1,501,222

 

 

6,307,630

 

 

7,808,852

 

 

 

405,574

 

 

821,154

Leasing

 

7,564

 

 

1,408

 

 

3,040

 

 

12,012

 

 

1,232,944

 

 

1,244,956

 

 

 

3,040

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

4,824

 

 

3,883

 

 

10,779

 

 

19,486

 

 

858,277

 

 

877,763

 

 

 

-

 

 

10,779

Home equity lines of credit

 

121

 

 

10

 

 

6,901

 

 

7,032

 

 

86,129

 

 

93,161

 

 

 

6,855

 

 

46

Personal

 

11,372

 

 

6,916

 

 

26,817

 

 

45,105

 

 

1,381,634

 

 

1,426,739

 

 

 

26,817

 

 

-

Auto

 

47,396

 

 

8,783

 

 

15,405

 

 

71,584

 

 

3,131,553

 

 

3,203,137

 

 

 

15,405

 

 

-

Other

 

360

 

 

375

 

 

15,489

 

 

16,224

 

 

110,574

 

 

126,798

 

 

 

15,281

 

 

208

Total

$

335,230

 

$

137,042

 

$

1,530,898

 

$

2,003,170

 

$

27,128,458

 

$

29,131,628

 

 

$

698,142

 

$

832,756

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

(30,253)

 

$

-

 

$

5,532

 

$

(24,721)

 

$

22,463

 

$

(2,258)

 

 

$

5,532

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

23,530

 

 

(25,406)

 

 

(4,164)

 

 

(6,040)

 

 

27,650

 

 

21,610

 

 

 

(4,164)

 

 

-

Owner occupied

 

(7,284)

 

 

(1,515)

 

 

(10,074)

 

 

(18,873)

 

 

(18,430)

 

 

(37,303)

 

 

 

(10,074)

 

 

-

Commercial and industrial

 

(5,712)

 

 

(780)

 

 

31,539

 

 

25,047

 

 

(11,650)

 

 

13,397

 

 

 

31,501

 

 

38

Construction

 

(11,749)

 

 

3,080

 

 

(7,523)

 

 

(16,192)

 

 

(26,431)

 

 

(42,623)

 

 

 

(7,523)

 

 

-

Mortgage

 

(21,685)

 

 

(7,035)

 

 

(218,230)

 

 

(246,950)

 

 

116,576

 

 

(130,374)

 

 

 

(21,598)

 

 

(196,632)

Leasing

 

(1,510)

 

 

695

 

 

(754)

 

 

(1,569)

 

 

54,541

 

 

52,972

 

 

 

(754)

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

(453)

 

 

(1,057)

 

 

(2,758)

 

 

(4,268)

 

 

6,666

 

 

2,398

 

 

 

-

 

 

(2,758)

Home equity lines of credit

 

380

 

 

200

 

 

(524)

 

 

56

 

 

(7,790)

 

 

(7,734)

 

 

 

(478)

 

 

(46)

Personal

 

(1,395)

 

 

(1,893)

 

 

(2,124)

 

 

(5,412)

 

 

(19,038)

 

 

(24,450)

 

 

 

(2,124)

 

 

-

Auto

 

(8,364)

 

 

(1,378)

 

 

(2,119)

 

 

(11,861)

 

 

97,751

 

 

85,890

 

 

 

(2,119)

 

 

-

Other

 

(146)

 

 

(278)

 

 

(1,201)

 

 

(1,625)

 

 

1,089

 

 

(536)

 

 

 

(1,158)

 

 

(43)

Total

$

(64,641)

 

$

(35,367)

 

$

(212,400)

 

$

(312,408)

 

$

243,397

 

$

(69,011)

 

 

$

(12,959)

 

$

(199,441)

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table K - Non-Performing Assets

(Unaudited)

 

 

 

 

 

 

 

Variance

(Dollars in thousands)

30-Jun-21

As a % of loans HIP by category

31-Mar-21

As a % of loans HIP by category

30-Jun-20

As a % of loans HIP by category

Q2 2021 vs.
Q1 2021

Q2 2021 vs.
Q2 2020

Non-accrual loans:

 

 

 

 

 

 

 

 

Commercial

$225,565

1.7

%

$202,770

1.5

%

$263,129

1.9

%

$22,795

$(37,564)

Construction

14,877

1.7

22,400

2.5

-

-

(7,523)

14,877

Lease financing

2,286

0.2

3,040

0.2

4,751

0.4

(754)

(2,465)

Mortgage

383,976

5.0

405,574

5.2

411,406

5.5

(21,598)

(27,430)

Auto

13,286

0.4

15,405

0.5

22,111

0.8

(2,119)

(8,825)

Consumer

45,193

1.8

48,953

1.9

58,807

2.1

(3,760)

(13,614)

Total non-performing loans held-in-portfolio

685,183

2.4

%

698,142

2.4

%

760,204

2.6

%

(12,959)

(75,021)

Non-performing loans held-for-sale [1]

8,700

 

3,549

 

6,778

 

5,151

1,922

Other real estate owned (“OREO”)

73,272

 

72,060

 

113,940

 

1,212

(40,668)

Total non-performing assets

$767,155

 

$773,751

 

$880,922

 

$(6,596)

$(113,767)

Accruing loans past due 90 days or more [2]

$633,315

 

$832,756

 

$878,776

 

$(199,441)

$(245,461)

Ratios:

 

 

 

 

 

 

 

 

Non-performing assets to total assets

1.06

%

1.16

%

1.40

%

 

 

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

2.36

 

2.40

 

2.62

 

 

 

Allowance for credit losses to loans held-in-portfolio

2.70

 

2.75

 

3.16

 

 

 

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

114.68

 

114.70

 

120.81

 

 

 

[1] Non-performing loans held-for-sale as of June 30, 2021, were $7 million in construction loans and $2 million commercial loans (March 31, 2021 - $4 million in commercial loans; June 30, 2020 - $7 million in commercial loans).

[2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $15 million at June 30, 2021, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (March 31, 2021 - $29 million; June 30, 2020 - $522 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of BPPR with an offsetting liability. While the borrowers for our serviced GNMA portfolio benefited from the moratorium, the delinquency status of these loans continued to be reported to GNMA without considering the moratorium. These balances include $363 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2021 (March 31, 2021 - $341 million; June 30, 2020 - $234 million). Furthermore, the Corporation has approximately $56 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 (March 31, 2021 - $58 million; June 30, 2020 - $62 million).

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)

 

 

 

 

 

 

 

Commercial loans held-in-portfolio:

 

Quarter ended

Quarter ended

 

30-Jun-21

31-Mar-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$200,863

$1,907

$202,770

$204,092

$5,988

$210,080

Plus:

 

 

 

 

 

 

New non-performing loans

39,657

7,570

47,227

7,724

1,693

9,417

Advances on existing non-performing loans

-

1

1

-

6

6

Less:

 

 

 

 

 

 

Non-performing loans transferred to OREO

(2,346)

-

(2,346)

(3,850)

-

(3,850)

Non-performing loans charged-off

(1,515)

(624)

(2,139)

(2,391)

(352)

(2,743)

Loans returned to accrual status / loan collections

(18,956)

(992)

(19,948)

(4,712)

(3,655)

(8,367)

Loans transferred to held-for-sale

-

-

-

-

(1,773)

(1,773)

Ending balance NPLs

$217,703

$7,862

$225,565

$200,863

$1,907

$202,770

 

 

 

 

 

 

 

Construction loans held-in-portfolio:

 

Quarter ended

Quarter ended

 

30-Jun-21

31-Mar-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$14,877

$7,523

$22,400

$21,497

$7,560

$29,057

Plus:

 

 

 

 

 

 

New non-performing loans

-

-

-

-

12,141

12,141

Less:

 

 

 

 

 

 

Non-performing loans charged-off

-

(523)

(523)

(6,620)

-

(6,620)

Loans returned to accrual status / loan collections

-

-

-

-

(12,178)

(12,178)

Loans transferred to held-for-sale

-

(7,000)

(7,000)

-

-

-

Ending balance NPLs

$14,877

$-

$14,877

$14,877

$7,523

$22,400

 

 

 

 

 

 

 

Mortgage loans held-in-portfolio:

 

Quarter ended

Quarter ended

 

30-Jun-21

31-Mar-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$390,781

$14,793

$405,574

$414,343

$14,864

$429,207

Plus:

 

 

 

 

 

 

New non-performing loans

43,432

4,774

48,206

58,397

4,323

62,720

Advances on existing non-performing loans

-

11

11

-

5

5

Less:

 

 

 

 

 

 

Non-performing loans transferred to OREO

(8,257)

-

(8,257)

(801)

-

(801)

Non-performing loans charged-off

(4,297)

-

(4,297)

(8,722)

(1)

(8,723)

Loans returned to accrual status / loan collections

(51,006)

(6,255)

(57,261)

(72,436)

(4,398)

(76,834)

Ending balance NPLs

$370,653

$13,323

$383,976

$390,781

$14,793

$405,574

 

 

 

 

 

 

 

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

 

Quarter ended

Quarter ended

 

30-Jun-21

31-Mar-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$606,521

$24,223

$630,744

$639,932

$28,412

$668,344

Plus:

 

 

 

 

 

 

New non-performing loans

83,089

12,344

95,433

66,121

18,157

84,278

Advances on existing non-performing loans

-

12

12

-

11

11

Less:

 

 

 

 

 

 

Non-performing loans transferred to OREO

(10,603)

-

(10,603)

(4,651)

-

(4,651)

Non-performing loans charged-off

(5,812)

(1,147)

(6,959)

(17,733)

(353)

(18,086)

Loans returned to accrual status / loan collections

(69,962)

(7,247)

(77,209)

(77,148)

(20,231)

(97,379)

Loans transferred to held-for-sale

-

(7,000)

(7,000)

-

(1,773)

(1,773)

Ending balance NPLs

$603,233

$21,185

$624,418

$606,521

$24,223

$630,744

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

Quarters ended

 

(Dollars in thousands)

30-Jun-21

 

31-Mar-21

 

30-Jun-20

 

Balance at beginning of period - loans held-in-portfolio

$800,797

 

$896,250

 

$919,716

 

Provision for credit losses (benefit)

(17,500)

 

(75,779)

 

63,104

 

Initial allowance for credit losses - PCD Loans

1,202

 

1,356

 

567

 

 

784,499

 

821,827

 

983,387

 

Net loans charged-off (recovered):

 

 

 

 

 

 

BPPR

 

 

 

 

 

 

Commercial

(9,877)

 

(1,434)

 

1,097

 

Construction

(479)

 

5,917

 

(195)

 

Lease financing

393

 

118

 

3,390

 

Mortgage

935

 

8,303

 

7,554

 

Consumer

7,545

 

6,570

 

50,297

 

Total BPPR

(1,483)

 

19,474

 

62,143

 

Popular U.S.

 

 

 

 

 

 

Commercial

(413)

 

16

 

(784)

 

Construction

93

 

-

 

-

 

Mortgage

(423)

 

(80)

 

(19)

 

Consumer

935

 

1,620

 

3,613

 

Total Popular U.S.

192

 

1,556

 

2,810

 

Total loans charged-off (recovered) - Popular, Inc.

(1,291)

 

21,030

 

64,953

 

Balance at end of period - loans held-in-portfolio

$785,790

 

$800,797

 

$918,434

 

 

 

 

 

 

 

 

Balance at beginning of period - unfunded commitments

$9,569

 

$15,851

 

$4,466

 

Provision for credit losses (benefit)

367

 

(6,282)

 

2,251

 

Balance at end of period - unfunded commitments [1]

$9,936

 

$9,569

 

$6,717

 

 

 

 

 

 

 

 

POPULAR, INC.

 

 

 

 

 

 

Annualized net charge-offs (recoveries) to average loans held-in-portfolio

(0.02)

%

0.29

%

0.92

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

N.M.

 

-360.34

%

97.15

%

BPPR

 

 

 

 

 

 

Annualized net charge-offs (recoveries) to average loans held-in-portfolio

(0.03)

%

0.36

%

1.20

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

N.M

 

-205.28

%

97.23

%

Popular U.S.

 

 

 

 

 

 

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

0.01

%

0.08

%

0.15

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

N.M.

 

N.M.

 

95.41

%

N.M. - Not meaningful.

[1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Jun-21

(Dollars in thousands)

 

Commercial

 

Construction

 

Mortgage

 

Lease financing

 

Consumer

 

Total

 

Total ACL

 

$271,144

 

$11,256

 

$182,619

 

$17,551

 

$303,220

 

$785,790

 

Total loans held-in-portfolio

 

$13,437,932

 

$865,113

 

$7,678,478

 

$1,297,928

 

$5,783,166

 

$29,062,617

 

ACL to loans held-in-portfolio

 

2.02

%

1.30

%

2.38

%

1.35

%

5.24

%

2.70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Mar-21

(Dollars in thousands)

 

Commercial

 

Construction

 

Mortgage

 

Lease financing

 

Consumer

 

Total

 

Total ACL

 

$276,219

 

$9,195

 

$202,126

 

$12,687

 

$300,570

 

$800,797

 

Total loans held-in-portfolio

 

$13,442,486

 

$907,736

 

$7,808,852

 

$1,244,956

 

$5,727,598

 

$29,131,628

 

ACL to loans held-in-portfolio

 

2.05

%

1.01

%

2.59

%

1.02

%

5.25

%

2.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

(Dollars in thousands)

 

Commercial

 

Construction

 

Mortgage

 

Lease financing

 

Consumer

 

Total

 

Total ACL

 

$(5,075)

 

$2,061

 

$(19,507)

 

$4,864

 

$2,650

 

$(15,007)

 

Total loans held-in-portfolio

 

$(4,554)

 

$(42,623)

 

$(130,374)

 

$52,972

 

$55,568

 

$(69,011)

 

Popular, Inc.

 

Financial Supplement to Second Quarter 2021 Earnings Release

 

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

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Jun-21

 

Puerto Rico

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Lease financing

 

Consumer

 

Total

 

ACL

$186,784

 

$1,220

 

$166,808