Popular, Inc. Announces Third Quarter 2023 Financial Results

  • Net income of $136.6 million in Q3 2023, including an after-tax goodwill impairment charge in our U.S. based equipment leasing subsidiary of $16.4 million, compared to net income of $151.2 million in Q2 2023.
  • Net interest income amounted to $534.0 million, an increase of $2.4 million compared to Q2 2023.
  • Net interest margin of 3.07% in Q3 2023, compared to 3.14% in Q2 2023; net interest margin on a taxable equivalent basis of 3.24% in Q3 2023, compared to 3.29% in Q2 2023.
  • Non-interest income of $159.5 million, or $1.0 million lower than in Q2 2023.
  • Operating expenses amounted to $466.0 million, an increase of $5.7 million compared to Q2 2023, including a non-cash goodwill impairment of $23.0 million.
  • Credit Quality:
    • Non-performing loans held-in-portfolio (“NPLs”) decreased by $24.0 million from Q2 2023; NPLs to loans ratio at 1.1% vs. 1.2% in Q2 2023;
    • Net charge-offs (“NCOs”) increased by $8.7 million from Q2 2023; annualized NCOs at 0.39% of average loans held-in-portfolio vs. 0.29% in Q2 2023;
    • Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.09% vs. 2.12% in Q2 2023; and
    • ACL to NPLs at 196.7% vs. 181.6% in Q2 2023.
  • Loans increased by $998.4 million and by $764.4 million in average quarterly balances, from Q2 2023.
  • Ending deposit balances decreased by $667.2 million while average quarterly balances increased by $1.4 billion, from Q2 2023.
  • Common Equity Tier 1 ratio of 16.81%, Common Equity per Share of $61.49 and Tangible Book Value per Share of $50.20 at September 30, 2023.

SAN JUAN, Puerto Rico--()--Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $136.6 million for the quarter ended September 30, 2023, including an after-tax goodwill impairment charge in our U.S. based equipment leasing subsidiary of $16.4 million, compared to net income of $151.2 million for the quarter ended June 30, 2023.

Ignacio Alvarez, President and Chief Executive Officer, said: “We are pleased to report another strong quarter. Net income totaled $137 million, which includes a $16 million after-tax goodwill impairment in our U.S. based equipment leasing subsidiary. Excluding this impact, net income would have been $153 million, $2 million higher than the previous quarter.

Our positive results were driven by higher revenues and lower operating expenses, excluding the non-cash goodwill impairment, partially offset by a higher provision for loan losses. We grew our loan portfolio by $1 billion, which contributed to an increase in net interest income despite higher deposit costs. Approximately $600 million of the increase took place in Puerto Rico, reflecting strong economic activity. During the quarter, we crossed a significant milestone, reaching more than 2 million unique customers in Puerto Rico.

Our achievements are made possible by a dedicated team of more than 9,000 colleagues and further strengthen our commitment to our customers, communities and shareholders. Earlier this month we celebrated our 130th anniversary and our team’s energy was palpable. We are proud of our history, which has made us a strong organization with deep-rooted values, and are excited about the opportunities that lie ahead.”

Earnings Highlights

 

 

 

 

 

 

(Unaudited)

Quarters ended

 

Nine months ended

 

(Dollars in thousands, except per share information)

30-Sep-23

30-Jun-23

30-Sep-22

 

30-Sep-23

30-Sep-22

Net interest income

$534,020

$531,668

$579,619

 

$1,597,344

$1,607,793

Provision for credit losses

45,117

37,192

39,637

 

129,946

33,499

Net interest income after provision for credit losses

488,903

494,476

539,982

 

1,467,398

1,574,294

Other non-interest income

159,549

160,471

426,494

 

481,981

738,597

Operating expenses

465,984

460,284

476,095

 

1,366,955

1,284,712

Income before income tax

182,468

194,663

490,381

 

582,424

1,028,179

Income tax expense

45,859

43,503

67,986

 

135,676

182,677

Net income

$136,609

$151,160

$422,395

 

$446,748

$845,502

Net income applicable to common stock

$136,256

$150,807

$422,042

 

$445,689

$844,443

Net income per common share-basic

$1.90

$2.10

$5.71

 

$6.22

$11.09

Net income per common share-diluted

$1.90

$2.10

$5.70

 

$6.21

$11.07

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

Net interest income, on a taxable equivalent basis, is presented with its different components in Tables D and E for the quarter ended September 30, 2023 and Table F for the nine-month periods ended September 30, 2023 and 2022. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

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

Net interest income for the quarter ended September 30, 2023 was $534.0 million, an increase of $2.4 million when compared to the previous quarter. Net interest income on a taxable equivalent basis for the third quarter of 2023 was $563.7 million, compared to $558.4 million in the previous quarter, an increase of $5.3 million. The increase in taxable equivalent net interest income results from a higher volume of exempt investments, partially offset by a higher disallowed interest expense in the Puerto Rico tax computation driven by the increase in deposit volume and cost. Refer to the income taxes discussion for further information.

Net interest margin decreased seven basis points to 3.07%. On a taxable equivalent basis, net interest margin for the third quarter of 2023 was 3.24%, compared to 3.29% for the prior quarter, or a five basis points decrease. The lower reduction in the taxable equivalent rate results from a higher benefit of a higher volume of exempt investment securities in Puerto Rico. The main variances in net interest income on a taxable equivalent basis were:

  • Higher interest income from investment securities, trading and money market investments by $27.4 million driven mainly by higher volume of U.S. Treasury bills, partially offset by a lower volume of money market investments. Both asset classes reflect the effect of the two 25 basis points increases in market rates that occurred at the end of July and at the beginning of May;
  • Higher interest income from loans by $26.3 million resulting from an increase in average loans by $770 million, reflecting increases in Banco Popular de Puerto Rico (“BPPR”) by $427 million and an increase in Popular Bank (“PB”) by $343 million. All major loan segments increased in BPPR while at PB the increase was mainly in the commercial and construction portfolios. Loan originations in a higher interest rate environment and the repricing of adjustable-rate loans resulted in a higher yield on loans by nine basis points; most of the categories resulted in a higher yield quarter over quarter; and
  • Lower interest expense on other debt upon the previously announced redemption, during the quarter of the $300 million Senior Notes due September 2023;

partially offset by:

  • Higher interest expense on deposits by $34.4 million, mainly from the increase in volume and cost of Puerto Rico government deposits and a higher cost in most deposit categories in both BPPR and PB, reflective of the increase in rates.

Net interest income for the BPPR segment amounted to $453.9 million for the third quarter of 2023, flat when compared to $453.1 million in net interest income during the second quarter of 2023. Net interest margin for the BPPR segment decreased by seven basis points to 3.14%. The decrease in net interest margin is related to a higher average volume of deposits, mainly higher cost Puerto Rico government deposits. Earning assets yield improved 17 basis points from the prior quarter to 4.74%. The average volume of earning assets increased by $861 million, while average total deposits increased by $904 million, mainly in P.R. government deposits, which were $1.4 billion higher on average than during Q2 2023, partially offset by a decrease in non-interest-bearing deposits. The cost of interest-bearing deposits increased by 30 basis points to 2.25% from 1.95% the previous quarter. The increase in the cost of deposits mainly resulted from the repricing of public funds and management actions to increase deposit interest rates for certain corporate clients. Total deposit cost in the third quarter of 2023 was 1.68%, compared to 1.44% in the quarter ended June 30, 2023.

Net interest income for PB was $87.4 million for the quarter ended September 30, 2023, unchanged when compared to $87.5 million in net interest income during the previous quarter. Net interest margin decreased by 11 basis points in the quarter to 2.90%, compared to 3.01% in the second quarter of 2023. The decrease in net interest margin was mostly driven by a higher cost of deposits, partially offset by a higher volume of loans and the repricing of adjustable-rate loans in the current interest rates environment. The cost of interest-bearing deposits was 3.31%, compared to 3.02% for the second quarter, or an increase of 29 basis points, while total deposit cost was 2.84% compared to 2.55% in the previous quarter.

Non-interest income

Non-interest income amounted to $159.5 million for the quarter ended September 30, 2023, a decrease of $1.0 million when compared to $160.5 million for the quarter ended June 30, 2023. Fee and transactional-based revenues were slightly lower quarter-over-quarter with the overall results impacted by an unfavorable variance in profit (losses) from equity securities by $2.7 million, mainly related to the fair value of securities held for deferred benefit plans, which have an offsetting effect in personnel costs. The lower fee and transactional-based revenues were partially offset by higher income from mortgage banking activities by $3.1 million, mainly due to a favorable variance of $3.4 million related to the fair value adjustments of mortgage servicing rights (“MSRs”).

Refer to Table B for further details.

Operating expenses

Operating expenses for the third quarter of 2023 totaled $466.0 million, an increase of $5.7 million when compared to the second quarter of 2023. The variance in operating expenses was driven primarily by:

  • higher personnel cost by $1.7 million mainly due to higher salaries by $2.9 million as a result of the annual merit increase effective during the third quarter of 2023; partially offset by a decrease in other personnel costs by $1.2 million;
  • higher credit card processing expenses by $2.2 million mainly due to a volume growth incentive received during the second quarter of 2023 which was recorded as a reduction of expenses;
  • higher FDIC deposit insurance expense by $2.1 million mainly due to an accrual adjustment recorded during the second quarter of 2023 related to a decrease in the assessment rate; and
  • a non-cash goodwill impairment of $23.0 million in our U.S. based equipment leasing subsidiary due to lower forecasted cash flows and an increase in the rate used to discount cash flows.

partially offset by:

  • lower other taxes expense by $7.8 million mainly due to the reversal of an accrual related to regulatory examination fees in BPPR by $8.2 million;
  • lower professional fees by $11.6 million mainly due to lower advisory expenses by $7.1 million arising from corporate initiatives related to regulatory and compliance efforts, as well as those related to the Corporation's transformation initiative, incurred during the second quarter of 2023;
  • lower business promotion expense by $2.0 million mainly due to lower advertising and credit cards rewards expenses; and
  • higher other real estate owned (“OREO”) benefit by $1.9 million mainly due to an increase in the fair value of mortgage properties transferred to OREO.

Full-time equivalent employees were 9,063 as of September 30, 2023, compared to 9,124 as of June 30, 2023.

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

Income taxes

For the quarter ended September 30, 2023, the Corporation recorded an income tax expense of $45.9 million compared to $43.5 million for the previous quarter. The increase in income tax expense was mainly attributable to certain tax benefits recorded in the second quarter, partially offset by lower income before tax. The effective tax rate (“ETR”) for the third quarter of 2023 was 25.1% while the ETR for the second quarter was 22.4%.

The ETR of the Corporation is impacted by the composition and source of its taxable income. The Corporation expects the ETR for the year 2023 to be within a range from 22% to 25%.

Credit Quality

During the third quarter of 2023, the Corporation continued to reflect stable credit quality metrics. Non-performing loans (“NPLs”) and net charge offs (“NCOs”) continued below historical pre-pandemic averages. Consumer portfolios, however, reflected increased delinquencies and NCOs for the quarter primarily due to the expected continued credit normalization. We continue to closely monitor changes in the macroeconomic environment and on borrower performance, especially our unsecured consumer loans, given higher interest rates and inflationary pressures. However, management believes that the improvements over recent years in risk management practices and the risk profile of the Corporation’s loan portfolios positions Popular to continue to operate successfully under the current environment.

The following presents credit quality results for the third quarter of 2023:

  • At September 30, 2023, total NPLs held-in-portfolio decreased by $24.0 million from June 30, 2023. BPPR’s NPLs decreased by $18.5 million, mostly driven by lower commercial and mortgage NPLs by $16.5 million and $6.8 million, respectively, in part offset by higher consumer NPLs by $5.4 million. The commercial NPLs decrease was mostly driven by loan payoffs. PB’s NPLs decreased by $5.5 million quarter-over-quarter, due to lower commercial and mortgage NPLs by $3.0 million and $2.6 million, respectively. At September 30, 2023, the ratio of NPLs to total loans held-in-portfolio was 1.1%, compared to 1.2% in the second quarter of 2023.
  • Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $5.9 million quarter-over-quarter. In BPPR, total inflows decreased by $2.6 million due to lower construction inflows by $9.3 million due to a single relationship that entered non-accrual during the second quarter, in part offset by higher mortgage inflows by $7.1 million. PB inflows decreased by $3.3 million, driven by lower commercial inflows.
  • NCOs amounted to $32.7 million, increasing by $8.7 million when compared to the second quarter of 2023. BPPR’s NCOs increased by $6.9 million quarter-over-quarter, mainly driven by higher consumer NCOs by $14.1 million, of which $7.2 million and $4.7 million are related to the auto and personal loans portfolios, respectively. This increase was in part offset by a $10.8 million recovery from a commercial loan pay-off, as mentioned above. PB’s NCOs increased by $1.8 million quarter-over-quarter, mainly driven by higher consumer NCOs. During the third quarter of 2023, the Corporation’s ratio of annualized NCOs to average loans held-in-portfolio was 0.39%, compared to 0.29% in the second quarter of 2023. Refer to Table N for further information on NCOs and related ratios.
  • At September 30, 2023, the allowance for credit losses (“ACL”) increased by $10.9 million from the second quarter of 2023 to $711.1 million. In BPPR, the ACL increased by $28.4 million, primarily driven by higher reserves for the auto and personal loans portfolios attributable to credit normalization, changes in macroeconomic scenarios and loan growth. In PB, the ACL decreased by $17.6 million due to the implementation of a new model for the U.S. commercial real estate portfolio. The new model is based on more granular regional information for the Corporation’s portfolio and accounted for $15 million of PB’s reduction in ACL.
  • The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario, and then the optimistic scenario.
  • The 2023 annualized GDP growth in the baseline scenario improved to 1.7% and 2.0% for Puerto Rico and the United States, respectively, compared to 1.5% and 1.6% in the previous quarter. The 2023 forecasted average unemployment rate for Puerto Rico improved to 6.1% from 6.3% in the previous forecast, while in the United States unemployment levels remained at 3.6%, stable when compared to the previous forecast.
  • GDP growth is expected to slow down during 2024 for both regions, when compared to 2023, as a result of the Fed’s monetary policy. The 2024 GDP growth is expected to be 0.90% for Puerto Rico and 1.25% for the United States. The average 2024 unemployment rate is expected to increase to 6.80% in Puerto Rico and 4.03% in the United States.
  • The Corporation’s ratio of the ACL to loans held-in-portfolio was 2.09% in the third quarter of 2023, compared to 2.12% in the previous quarter. The ratio of the ACL to NPLs held-in-portfolio stood at 196.7%, compared to 181.6% in the previous quarter.
  • The provision for credit losses for the loan portfolios for the third quarter of 2023 was $43.5 million, compared to $35.7 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was $54.0 million, compared to $28.4 million in the previous quarter, while the provision for PB was a benefit of $10.5 million, compared to an expense of $7.3 million in the previous quarter.
  • The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Consolidated Statement of Operations. For the third quarter, these combined concepts resulted in a provision expense of $45.1 million, compared to $37.2 million last quarter.

Non-Performing Assets

 

 

 

 

 

(Unaudited)

 

 

 

 

 

(In thousands)

30-Sep-23

 

30-Jun-23

 

30-Sep-22

Non-performing loans held-in-portfolio

$361,523

 

$385,504

 

$453,419

Other real estate owned (“OREO”)

82,322

 

86,216

 

93,239

Total non-performing assets

$443,845

 

$471,720

 

$546,658

Net charge-offs (recoveries) for the quarter

$32,655

 

$23,990

 

$18,232

 

 

 

 

 

 

 

Ratios:

 

 

 

 

 

Loans held-in-portfolio

$34,029,313

 

$33,030,922

 

$31,523,188

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

1.06%

 

1.17%

 

1.44%

Allowance for credit losses to loans held-in-portfolio

2.09

 

2.12

 

2.23

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

196.69

 

181.63

 

155.07

Refer to Table L for additional information.

 

 

 

 

 

Provision for Credit Losses (Benefit) - Loan Portfolios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Quarters ended

 

Nine months ended

(In thousands)

 

30-Sep-23

 

30-Jun-23

 

30-Sep-22

 

30-Sep-23

30-Sep-22

Provision for credit losses (benefit) - loan portfolios:

 

 

 

 

 

 

 

 

 

BPPR

 

$54,017

 

$28,379

 

$28,694

 

$127,599

$25,161

Popular U.S.

 

(10,503)

 

7,282

 

10,825

 

(1,278)

9,814

Total provision for credit losses (benefit) - loan portfolios

 

$43,514

 

$35,661

 

$39,519

 

$126,321

$34,975

Credit Quality by Segment

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

(In thousands)

Quarters ended

BPPR

 

30-Sep-23

 

30-Jun-23

 

30-Sep-22

Provision for credit losses - loan portfolios

 

$54,017

 

$28,379

 

$28,694

Net charge-offs

 

25,600

 

18,687

 

18,396

Total non-performing loans held-in-portfolio

333,825

 

352,339

 

410,215

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

 

0.44%

 

0.33%

 

0.34%

Allowance / loans held-in-portfolio

2.63%

 

2.58%

 

2.65%

Allowance / non-performing loans held-in-portfolio

187.08%

 

169.19%

 

144.05%

 

 

 

 

 

 

 

 

Quarters ended

Popular U.S.

 

30-Sep-23

 

30-Jun-23

 

30-Sep-22

Provision for credit losses - loan portfolios

 

$(10,503)

 

$7,282

 

$10,825

Net charge-offs

 

7,055

 

5,303

 

(164)

Total non-performing loans held-in-portfolio

 

27,698

 

33,165

 

43,204

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

 

0.28%

 

0.22%

 

(0.01)

Allowance / loans held-in-portfolio

0.84%

 

1.05%

 

1.21%

Allowance / non-performing loans held-in-portfolio

312.42%

 

313.86%

 

259.61%

Financial Condition Highlights

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

(In thousands)

30-Sep-23

 

30-Jun-23

 

30-Sep-22

Cash and money market investments

$6,924,772

 

$9,070,118

 

$5,992,360

Investment securities

25,653,616

 

25,874,316

 

30,434,052

Loans

34,029,313

 

33,030,922

 

31,523,188

Total assets

69,736,936

 

70,838,266

 

70,729,675

Deposits

63,337,600

 

64,004,818

 

64,819,327

Borrowings

1,097,720

 

1,427,254

 

1,300,984

Total liabilities

65,279,328

 

66,273,257

 

67,054,837

Stockholders’ equity

4,457,608

 

4,565,009

 

3,674,838

Total assets amounted to $69.7 billion at September 30, 2023, a decrease of $1.1 billion from the second quarter of 2023, driven by:

  • a decrease in money market investments of $2.2 billion due to lower deposits and increased loan balances as discussed below;
  • a decrease in securities available-for-sale (“AFS”) of $112.4 million, mainly due to repayments, maturities and unfavorable changes in fair value, offset in part by the purchase of U.S. Treasury securities; and
  • a decrease in securities held-to-maturity (“HTM”) of $108.4 million driven by a decrease in U.S. Treasury securities mainly as a result of maturities;

partially offset by:

  • an increase in loans held-in-portfolio of $998.4 million reflected across all portfolios in BPPR, except the construction portfolio, and an increase in commercial and construction loans at PB; and
  • an increase in other assets of $328.9 million driven by unsettled trade receivables related to proceeds from maturities of U.S. Treasury Notes and interest payments which were received in the fourth quarter.

Total liabilities decreased by $993.9 million from the second quarter of 2023, driven by:

  • a decrease of $667.2 million in deposits, mainly in Puerto Rico public sector accounts partially offset by an increase in time deposits and savings accounts at PB; and
  • a decrease of $299.4 million in notes payable due to the redemption of $300.0 million in aggregate principal amount of the Senior Notes due September 2023.

Stockholders' equity decreased by $107.4 million from the second quarter of 2023, principally due to the after-tax impact of the increase in net unrealized losses in the portfolio of AFS securities of $242.6 million and to common and preferred dividends declared during the quarter, partially offset by the net income for the quarter of $136.6 million and the amortization of unrealized losses from securities previously reclassified to HTM of $35.0 million.

The Corporation is in the process of completing its annual goodwill impairment test, using July 31, 2023 as the evaluation date. During the third quarter, an impairment charge of $23.0 million related to our U.S. based equipment leasing subsidiary was recognized. The Corporation expects to finalize its evaluation prior to the filing of its Form 10-Q for the quarter ended September 30, 2023 with the Securities and Exchange Commission. Any further impairment of goodwill would result in a non-cash expense, net of tax impact. A charge to earnings related to a goodwill impairment would not materially impact regulatory capital and tangible capital calculations.

Common Equity Tier 1 ratio (“CET1”), common equity per share and tangible book value per share were 16.81%, $61.49 and $50.20, respectively, at September 30, 2023, compared to 16.87%, $63.00 and $51.37, respectively, at June 30, 2023. Refer to Table A for capital ratios.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those regarding Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings, new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. Other potential factors include Popular’s ability to successfully execute its transformation initiative, including, but not limited to, achieving projected earnings, efficiencies and return on tangible common equity and accurately anticipating costs and expenses associated therewith, imposition of FDIC special assessments, changes to regulatory capital, liquidity and resolution-related requirements applicable to financial institutions in response to recent developments affecting the banking sector and the impact of bank failures or adverse developments at other banks and related negative media coverage of the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements.

More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Form 10-K for the year ended December 31, 2022, in our Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023, and in our Form 10-Q for the quarter ended September 30, 2023 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

About Popular, Inc.

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

Conference Call

Popular will hold a conference call to discuss its financial results today, Thursday, October 26, 2023 at 11:00 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-833-470-1428 (Toll Free) or 1-404-975-4839 (Local). The dial-in access code is 260746.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Monday, November 27, 2023. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 546020.

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

Popular, Inc.

Financial Supplement to Third Quarter 2023 Earnings Release

 

Table A - Selected Ratios and Other Information

 

Table B - Consolidated Statement of Operations

 

Table C - Consolidated Statement of Financial Condition

 

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

 

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

 

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

 

Table G - Mortgage Banking Activities and Other Service Fees

 

Table H - Loans and Deposits

 

Table I - Loan Delinquency - BPPR Operations

 

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

 

Table K - Loan Delinquency - Consolidated

 

Table L - Non-Performing Assets

 

Table M - Activity in Non-Performing Loans

 

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

 

Table O - Allowance for Credit Losses ''ACL'' - Loan Portfolios - Consolidated

 

Table P - Allowance for Credit Losses ''ACL'' - Loan Portfolios - BPPR Operations

 

Table Q - Allowance for Credit Losses ''ACL'' - Loan Portfolios - Popular U.S. Operations

 

Table R - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to Third Quarter 2023 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

 

 

 

 

 

Quarters ended

Nine months ended

 

30-Sep-23

 

30-Jun-23

 

30-Sep-22

 

30-Sep-23

 

30-Sep-22

Basic EPS

$1.90

$2.10

$5.71

$6.22

$11.09

Diluted EPS

$1.90

$2.10

$5.70

$6.21

$11.07

Average common shares outstanding

71,794,934

71,690,396

73,955,184

71,676,630

76,173,783

Average common shares outstanding - assuming dilution

71,818,102

71,709,203

74,057,332

71,736,514

76,304,219

Common shares outstanding at end of period

72,127,595

72,103,969

72,673,344

72,127,595

72,673,344

Market value per common share

$63.01

$60.52

$72.06

$63.01

$72.06

Market capitalization - (In millions)

$4,545

$4,364

$5,237

$4,545

$5,237

Return on average assets

0.75%

0.85%

2.31%

0.84%

1.54%

Return on average common equity

8.17%

9.26%

27.72%

9.13%

19.02%

Net interest margin (non-taxable equivalent basis)

3.07%

3.14%

3.32%

3.14%

3.05%

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

3.24%

3.29%

3.71%

3.32%

3.39%

Common equity per share

$61.49

$63.00

$50.26

$61.49

$50.26

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

$50.20

$51.37

$38.69

$50.20

$38.69

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

5.25%

5.29%

4.02%

5.25%

4.02%

Return on average tangible common equity [1]

9.36%

10.63%

31.86%

10.48%

21.78%

Tier 1 capital

16.88%

16.93%

16.10%

16.88%

16.10%

Total capital

18.67%

18.74%

17.92%

18.67%

17.92%

Tier 1 leverage

8.41%

8.40%

7.65%

8.41%

7.65%

Common Equity Tier 1 capital

16.81%

16.87%

16.04%

16.81%

16.04%

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

POPULAR, INC.

Financial Supplement to Third Quarter 2023 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

 

Quarters ended

Variance

Quarter ended

Variance

Nine months ended

 

 

 

Q3 2023

 

Q3 2023

 

 

(In thousands, except per share information)

30-Sep-23

30-Jun-23

vs. Q2 2023

30-Sep-22

vs. Q3 2022

30-Sep-23

30-Sep-22

Interest income:

 

 

 

 

 

 

 

Loans

$596,886

$570,120

$26,766

$481,088

$115,798

$1,708,216

$1,354,124

Money market investments

99,286

100,775

(1,489)

36,966

62,320

265,785

67,172

Investment securities

148,614

123,112

25,502

133,181

15,433

403,814

331,421

Total interest income

844,786

794,007

50,779

651,235

193,551

2,377,815

1,752,717

Interest expense:

 

 

 

 

 

 

 

Deposits

294,121

243,488

50,633

60,897

233,224

730,824

113,507

Short-term borrowings

1,478

1,624

(146)

921

557

5,987

1,249

Long-term debt

15,167

17,227

(2,060)

9,798

5,369

43,660

30,168

Total interest expense

310,766

262,339

48,427

71,616

239,150

780,471

144,924

Net interest income

534,020

531,668

2,352

579,619

(45,599)

1,597,344

1,607,793

Provision for credit losses

45,117

37,192

7,925

39,637

5,480

129,946

33,499

Net interest income after provision for credit losses

488,903

494,476

(5,573)

539,982

(51,079)

1,467,398

1,574,294

Service charges on deposit accounts

37,318

37,781

(463)

40,006

(2,688)

109,777

122,528

Other service fees

93,407

94,265

(858)

86,402

7,005

277,748

244,987

Mortgage banking activities

5,393

2,316

3,077

9,448

(4,055)

15,109

35,888

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

(1,319)

1,384

(2,703)

(1,448)

129

1,165

(7,651)

Net gain (loss) on trading account debt securities

219

35

184

(274)

493

632

(946)

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

(44)

-

(44)

-

(44)

(44)

-

Adjustments to indemnity reserves on loans sold

(187)

(456)

269

1,715

(1,902)

(31)

1,140

Other operating income

24,762

25,146

(384)

290,645

(265,883)

77,625

342,651

Total non-interest income

159,549

160,471

(922)

426,494

(266,945)

481,981

738,597

Operating expenses:

 

 

 

 

 

 

 

Personnel costs

 

 

 

 

 

 

 

Salaries

127,832

124,901

2,931

115,887

11,945

378,126

316,407

Commissions, incentives and other bonuses

27,670

27,193

477

42,209

(14,539)

86,025

116,319

Pension, postretirement and medical insurance

16,985

17,508

(523)

17,120

(135)

49,871

43,633

Other personnel costs, including payroll taxes

20,665

21,866

(1,201)

18,627

2,038

69,358

53,268

Total personnel costs

193,152

191,468

1,684

193,843

(691)

583,380

529,627

Net occupancy expenses

28,100

27,165

935

27,420

680

81,304

78,357

Equipment expenses

8,905

9,561

(656)

8,735

170

26,878

25,798

Other taxes

8,590

16,409

(7,819)

15,966

(7,376)

41,290

47,461

Professional fees

38,514

50,132

(11,618)

47,662

(9,148)

122,077

122,884

Technology and software expenses

72,930

72,354

576

68,341

4,589

213,843

213,638

Processing and transactional services

 

 

 

 

 

 

 

Credit and debit cards

13,762

11,584

2,178

13,531

231

37,896

35,177

Other processing and transactional services

24,137

25,217

(1,080)

18,837

5,300

70,713

59,181

Total processing and transactional services

37,899

36,801

1,098

32,368

5,531

108,609

94,358

Communications

4,220

4,175

45

3,858

362

12,483

11,028

Business promotion

 

 

 

 

 

 

 

Rewards and customer loyalty programs

15,988

16,626

(638)

14,344

1,644

44,962

38,294

Other business promotion

7,087

8,457

(1,370)

10,004

(2,917)

22,067

22,490

Total business promotion

23,075

25,083

(2,008)

24,348

(1,273)

67,029

60,784

FDIC deposit insurance

8,932

6,803

2,129

6,610

2,322

24,600

20,445

Other real estate owned (OREO) income

(5,189)

(3,314)

(1,875)

(2,444)

(2,745)

(10,197)

(12,963)

Other operating expenses

 

 

 

 

 

 

 

Operational losses

5,504

4,280

1,224

7,145

(1,641)

16,584

23,031

All other

17,557

18,572

(1,015)

32,448

(14,891)

53,690

58,783

Total other operating expenses

23,061

22,852

209

39,593

(16,532)

70,274

81,814

Amortization of intangibles

795

795

-

795

-

2,385

2,481

Goodwill impairment charge

23,000

-

23,000

9,000

14,000

23,000

9,000

Total operating expenses

465,984

460,284

5,700

476,095

(10,111)

1,366,955

1,284,712

Income before income tax

182,468

194,663

(12,195)

490,381

(307,913)

582,424

1,028,179

Income tax expense

45,859

43,503

2,356

67,986

(22,127)

135,676

182,677

Net income

$136,609

$151,160

$(14,551)

$422,395

$(285,786)

$446,748

$845,502

Net income applicable to common stock

$136,256

$150,807

$(14,551)

$422,042

$(285,786)

$445,689

$844,443

Net income per common share - basic

$1.90

$2.10

$(0.20)

$5.71

$(3.81)

$6.22

$11.09

Net income per common share - diluted

$1.90

$2.10

$(0.20)

$5.70

$(3.80)

$6.21

$11.07

Dividends Declared per Common Share

$0.55

$0.55

$-

$0.55

$-

$1.65

$1.65

Popular, Inc.

Financial Supplement to Third Quarter 2023 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

 

 

 

 

 

 

 

Variance

 

 

 

 

 

 

 

Q3 2023 vs.

(In thousands)

30-Sep-23

 

30-Jun-23

 

30-Sep-22

 

Q2 2023

Assets:

 

 

 

 

Cash and due from banks

$535,335

$476,642

$2,017,312

$58,693

Money market investments

6,389,437

8,593,476

3,975,048

(2,204,039)

Trading account debt securities, at fair value

30,988

29,160

30,271

1,828

Debt securities available-for-sale, at fair value

17,129,858

17,242,217

28,264,148

(112,359)

Debt securities held-to-maturity, at amortized cost

8,302,082

8,410,566

1,953,710

(108,484)

Less: Allowance for credit losses

6,057

6,145

7,210

(88)

Total debt securities held-to-maturity, net

8,296,025

8,404,421

1,946,500

(108,396)

Equity securities

190,688

192,373

185,923

(1,685)

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

5,239

55,421

8,065

(50,182)

Loans held-in-portfolio

34,369,775

33,354,999

31,805,921

1,014,776

Less: Unearned income

340,462

324,077

282,733

16,385

Allowance for credit losses

711,068

700,200

703,096

10,868

Total loans held-in-portfolio, net

33,318,245

32,330,722

30,820,092

987,523

Premises and equipment, net

534,384

523,927

492,685

10,457

Other real estate

82,322

86,216

93,239

(3,894)

Accrued income receivable

257,833

239,998

224,307

17,835

Mortgage servicing rights, at fair value

119,030

121,249

130,541

(2,219)

Other assets

2,032,565

1,703,662

1,700,378

328,903

Goodwill

804,428

827,428

827,428

(23,000)

Other intangible assets

10,559

11,354

13,738

(795)

Total assets

$69,736,936

$70,838,266

$70,729,675

$(1,101,330)

Liabilities and Stockholders’ Equity:

 

 

 

 

Liabilities:

 

 

 

 

Deposits:

 

 

 

 

Non-interest bearing

$15,201,374

$15,316,552

$17,605,339

$(115,178)

Interest bearing

48,136,226

48,688,266

47,213,988

(552,040)

Total deposits

63,337,600

64,004,818

64,819,327

(667,218)

Assets sold under agreements to repurchase

93,071

123,205

162,450

(30,134)

Other short-term borrowings

-

-

250,000

-

Notes payable

1,004,649

1,304,049

888,534

(299,400)

Other liabilities

844,008

841,185

934,526

2,823

Total liabilities

65,279,328

66,273,257

67,054,837

(993,929)

Stockholders’ equity:

 

 

 

 

Preferred stock

22,143

22,143

22,143

-

Common stock

1,048

1,047

1,046

1

Surplus

4,797,364

4,795,581

4,652,508

1,783

Retained earnings

4,189,865

4,093,284

3,694,020

96,581

Treasury stock

(2,018,870)

(2,018,611)

(1,970,548)

(259)

Accumulated other comprehensive loss, net of tax

(2,533,942)

(2,328,435)

(2,724,331)

(205,507)

Total stockholders’ equity

4,457,608

4,565,009

3,674,838

(107,401)

Total liabilities and stockholders’ equity

$69,736,936

$70,838,266

$70,729,675

$(1,101,330)

Popular, Inc.

Financial Supplement to Third Quarter 2023 Earnings Release

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

For the quarters ended September 30, 2023 and June 30, 2023

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

Average Volume

 

Average Yields / Costs

 

 

Interest

 

 

Attributable to

30-Sep-23

 

30-Jun-23

 

Variance

 

30-Sep-23

 

30-Jun-23

 

Variance

 

 

30-Sep-23

 

30-Jun-23

 

Variance

 

Rate

 

Volume

 

(In millions)

 

 

 

 

 

 

 

 

 

(In thousands)

$

7,292

$

7,851

$

(559)

 

5.40

%

5.15

%

0.25

%

 

Money market investments

$

99,285

$

100,776

$

(1,491)

$

5,912

$

(7,403)

 

28,396

 

27,362

 

1,034

 

2.31

 

2.00

 

0.31

 

 

Investment securities [1]

 

165,319

 

136,408

 

28,911

 

23,826

 

5,085

 

34

 

32

 

2

 

4.43

 

4.65

 

(0.22)

 

 

Trading securities

 

375

 

370

 

5

 

(14)

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total money market,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

investment and trading

 

 

 

 

 

 

 

 

 

 

 

35,722

 

35,245

 

477

 

2.95

 

2.70

 

0.25

 

 

securities

 

264,979

 

237,554

 

27,425

 

29,724

 

(2,299)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

16,611

 

16,237

 

374

 

6.64

 

6.52

 

0.12

 

 

Commercial

 

277,977

 

263,934

 

14,043

 

7,951

 

6,092

 

865

 

737

 

128

 

8.99

 

8.95

 

0.04

 

 

Construction

 

19,580

 

16,442

 

3,138

 

244

 

2,894

 

1,669

 

1,632

 

37

 

6.50

 

6.30

 

0.20

 

 

Leasing

 

27,142

 

25,711

 

1,431

 

829

 

602

 

7,504

 

7,409

 

95

 

5.42

 

5.47

 

(0.05)

 

 

Mortgage

 

101,700

 

101,304

 

396

 

(898)

 

1,294

 

3,147

 

3,075

 

72

 

13.39

 

13.21

 

0.18

 

 

Consumer

 

105,042

 

101,295

 

3,747

 

1,540

 

2,207

 

3,657

 

3,593

 

64

 

8.47

 

8.31

 

0.16

 

 

Auto

 

78,055

 

74,467

 

3,588

 

2,252

 

1,336

 

33,453

 

32,683

 

770

 

7.24

 

7.15

 

0.09

 

 

Total loans

 

609,496

 

583,153

 

26,343

 

11,918

 

14,425

$

69,175

$

67,928

$

1,247

 

5.02

%

4.84

%

0.18

%

 

Total earning assets

$

874,475

$

820,707

$

53,768

$

41,642

$

12,126

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

$

25,652

$

24,230

$

1,422

 

3.31

%

2.91

%

0.40

%

 

NOW and money market [2]

$

213,957

$

175,640

$

38,317

$

25,174

$

13,143

 

14,875

 

14,763

 

112

 

0.73

 

0.66

 

0.07

 

 

Savings

 

27,373

 

24,446

 

2,927

 

2,333

 

594

 

7,986

 

7,715

 

271

 

2.62

 

2.26

 

0.36

 

 

Time deposits

 

52,791

 

43,402

 

9,389

 

6,926

 

2,463

 

48,513

 

46,708

 

1,805

 

2.41

 

2.09

 

0.32

 

 

Total interest bearing deposits

 

294,121

 

243,488

 

50,633

 

34,433

 

16,200

 

15,038

 

15,480

 

(442)

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

 

 

 

 

 

 

 

 

 

63,551

 

62,188

 

1,363

 

1.84

 

1.57

 

0.27

 

 

Total deposits

 

294,121

 

243,488

 

50,633

 

34,433

 

16,200

 

108

 

125

 

(17)

 

5.45

 

5.19

 

0.26

 

 

Short-term borrowings

 

1,478

 

1,624

 

(146)

 

91

 

(237)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other medium and

 

 

 

 

 

 

 

 

 

 

 

1,172

 

1,299

 

(127)

 

5.20

 

5.33

 

(0.13)

 

 

long-term debt

 

15,167

 

17,227

 

(2,060)

 

740

 

(2,800)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest bearing

 

 

 

 

 

 

 

 

 

 

 

49,793

 

48,132

 

1,661

 

2.48

 

2.19

 

0.29

 

 

liabilities (excluding demand deposits)

 

310,766

 

262,339

 

48,427

 

35,264

 

13,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,344

 

4,316

 

28

 

 

 

 

 

 

 

 

Other sources of funds

 

 

 

 

 

 

 

 

 

 

$

69,175

$

67,928

$

1,247

 

1.78

%

1.55

%

0.23

%

 

Total source of funds

 

310,766

 

262,339

 

48,427

 

35,264

 

13,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.24

%

3.29

%

(0.05)

%

 

income on a taxable equivalent basis (Non-GAAP)

 

563,709

 

558,368

 

5,341

$

6,378

$

(1,037)

 

 

 

 

 

 

 

2.54

%

2.65

%

(0.11)

%

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent adjustment

 

29,689

 

26,700

 

2,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin/ income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.07

%

3.14

%

(0.07)

%

 

non-taxable equivalent basis (GAAP)

$

534,020

$

531,668

$

2,352

 

 

 

 

Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.

[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.

[2] Includes interest bearing demand deposits corresponding to certain government entities in Puerto Rico.

Popular, Inc.

Financial Supplement to Third Quarter 2023 Earnings Release

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

For the quarters ended September 30, 2023 and September 30, 2022

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

 

Average Volume

 

Average Yields / Costs

 

 

Interest

 

Attributable to

30-Sep-23

30-Sep-22

Variance

 

30-Sep-23

30-Sep-22

Variance

 

 

30-Sep-23

30-Sep-22

Variance

 

Rate

Volume

 

(In millions)

 

 

 

 

 

 

 

 

 

(In thousands)

$

7,292

$

6,721

$

571

 

5.40

%

2.18

%

3.22

%

 

Money market investments

$

99,285

$

36,966

$

62,319

$

58,920

$

3,399

 

28,396

 

31,859

 

(3,463)

 

2.31

 

2.33

 

(0.02)

 

 

Investment securities [1]

 

165,319

 

186,847

 

(21,528)

 

(1,510)

 

(20,018)

 

34

 

40

 

(6)

 

4.43

 

6.09

 

(1.66)

 

 

Trading securities

 

375

 

617

 

(242)

 

(150)

 

(92)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total money market,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

investment and trading

 

 

 

 

 

 

 

 

 

 

 

35,722

 

38,620

 

(2,898)

 

2.95

 

2.31

 

0.64

 

 

securities

 

264,979

 

224,430

 

40,549

 

57,260

 

(16,711)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

16,611

 

14,750

 

1,861

 

6.64

 

5.52

 

1.12

 

 

Commercial

 

277,977

 

205,237

 

72,740

 

44,889

 

27,851

 

865

 

835

 

30

 

8.99

 

6.38

 

2.61

 

 

Construction

 

19,580

 

13,431

 

6,149

 

5,667

 

482

 

1,669

 

1,503

 

166

 

6.50

 

5.90

 

0.60

 

 

Leasing

 

27,142

 

22,154

 

4,988

 

2,405

 

2,583

 

7,504

 

7,264

 

240

 

5.42

 

5.42

 

-

 

 

Mortgage

 

101,700

 

98,348

 

3,352

 

93

 

3,259

 

3,147

 

2,818

 

329

 

13.39

 

11.74

 

1.65

 

 

Consumer

 

105,042

 

83,407

 

21,635

 

11,164

 

10,471

 

3,657

 

3,562

 

95

 

8.47

 

7.93

 

0.54

 

 

Auto

 

78,055

 

71,226

 

6,829

 

4,889

 

1,940

 

33,453

 

30,732

 

2,721

 

7.24

 

6.39

 

0.85

 

 

Total loans

 

609,496

 

493,803

 

115,693

 

69,107

 

46,586

$

69,175

$

69,352

$

(177)

 

5.02

%

4.12

%

0.90

%

 

Total earning assets

$

874,475

$

718,233

$

156,242

$

126,367

$

29,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

$

25,652

$

25,993

$

(341)

 

3.31

%

0.56

%

2.75

%

 

NOW and money market [2]

$

213,957

$

36,448

$

177,509

$

178,787

$

(1,278)

 

14,875

 

15,514

 

(639)

 

0.73

 

0.20

 

0.53

 

 

Savings

 

27,373

 

7,966

 

19,407

 

20,380

 

(973)

 

7,986

 

6,957

 

1,029

 

2.62

 

0.94

 

1.68

 

 

Time deposits

 

52,791

 

16,484

 

36,307

 

29,147

 

7,160

 

48,513

 

48,464

 

49

 

2.41

 

0.50

 

1.91

 

 

Total interest bearing deposits

 

294,121

 

60,898

 

233,223

 

228,314

 

4,909

 

15,038

 

15,872

 

(834)

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

 

 

 

 

 

 

 

 

 

63,551

 

64,336

 

(785)

 

1.84

 

0.38

 

1.46

 

 

Total deposits

 

294,121

 

60,898

 

233,223

 

228,314

 

4,909

 

108

 

155

 

(47)

 

5.45

 

2.36

 

3.09

 

 

Short-term borrowings

 

1,478

 

921

 

557

 

976

 

(419)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other medium and

 

 

 

 

 

 

 

 

 

 

 

1,172

 

913

 

259

 

5.20

 

4.29

 

0.91

 

 

long-term debt

 

15,167

 

9,798

 

5,369

 

1,050

 

4,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest bearing

 

 

 

 

 

 

 

 

 

 

 

49,793

 

49,532

 

261

 

2.48

 

0.57

 

1.91

 

 

liabilities (excluding demand deposits)

 

310,766

 

71,617

 

239,149

 

230,340

 

8,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,344

 

3,948

 

396

 

 

 

 

 

 

 

 

Other sources of funds

 

 

 

 

 

 

 

 

 

 

$

69,175

$

69,352

$

(177)

 

1.78

%

0.41

%

1.37

%

 

Total source of funds

 

310,766

 

71,617

 

239,149

 

230,340

 

8,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.24

%

3.71

%

(0.47)

%

 

income on a taxable equivalent basis (Non-GAAP)

 

563,709

 

646,616

 

(82,907)

$

(103,973)

$

21,066

 

 

 

 

 

 

 

2.54

%

3.55

%

(1.01)

%

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent adjustment

 

29,689

 

66,997

 

(37,308)

 

 

 

 

Net interest margin/ income

 

 

 

 

 

 

 

3.07

%

3.32

%

(0.25)

%

 

non-taxable equivalent basis (GAAP)

$

534,020

$

579,619

$

(45,599)

 

 

 

 

Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.

[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.

[2] Includes interest bearing demand deposits corresponding to certain government entities in Puerto Rico.

Popular, Inc.

Financial Supplement to Third Quarter 2023 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

 

Average Volume

 

Average Yields / Costs

 

 

 

Interest

 

Attributable to

 

30-Sep-23

 

30-Sep-22

Variance

 

30-Sep-23

30-Sep-22

Variance

 

 

 

 

30-Sep-23

 

30-Sep-22

 

Variance

 

Rate

 

Volume

 

(In millions)

 

 

 

 

 

 

 

 

 

 

(In thousands)

$

6,966

$

10,969

$

(4,003)

 

5.10

%

0.82

%

4.28

%

 

Money market investments

$

265,785

$

67,172

$

198,613

$

231,496

$

(32,883)

 

28,205

 

29,371

 

(1,166)

 

2.18

 

2.16

 

0.02

 

 

Investment securities [1]

 

460,641

 

475,088

 

(14,447)

 

4,862

 

(19,309)

 

32

 

59

 

(27)

 

4.52

 

6.23

 

(1.71)

 

 

Trading securities

 

1,084

 

2,725

 

(1,641)

 

(621)

 

(1,020)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total money market,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

investment and trading

 

 

 

 

 

 

 

 

 

 

 

35,203

 

40,399

 

(5,196)

 

2.76

 

1.80

 

0.96

 

 

 

securities

 

727,510

 

544,985

 

182,525

 

235,737

 

(53,212)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

16,206

 

14,245

 

1,961

 

6.50

 

5.26

 

1.24

 

 

 

Commercial

 

787,381

 

560,408

 

226,973

 

143,107

 

83,866

 

778

 

781

 

(3)

 

8.79

 

5.87

 

2.92

 

 

 

Construction

 

51,178

 

34,305

 

16,873

 

17,017

 

(144)

 

1,630

 

1,447

 

183

 

6.31

 

5.92

 

0.39

 

 

 

Leasing

 

77,135

 

64,225

 

12,910

 

4,440

 

8,470

 

7,434

 

7,315

 

119

 

5.45

 

5.33

 

0.12

 

 

 

Mortgage

 

303,777

 

292,253

 

11,524

 

6,712

 

4,812

 

3,082

 

2,670

 

412

 

13.10

 

11.44

 

1.66

 

 

 

Consumer

 

302,050

 

228,401

 

73,649

 

35,342

 

38,307

 

3,603

 

3,507

 

96

 

8.31

 

8.03

 

0.28

 

 

 

Auto

 

223,929

 

210,623

 

13,306

 

7,455

 

5,851

 

32,733

 

29,965

 

2,768

 

7.13

 

6.20

 

0.93

 

 

Total loans

 

1,745,450

 

1,390,215

 

355,235

 

214,073

 

141,162

$

67,936

$

70,364

$

(2,428)

 

4.86

%

3.67

%

1.19

%

 

Total earning assets

$

2,472,960

$

1,935,200

$

537,760

$

449,810

$

87,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

$

24,407

$

26,385

$

(1,978)

 

2.93

%

0.26

%

2.67

%

 

 

NOW and money market [2]

$

534,567

$

52,072

$

482,495

$

488,704

$

(6,209)

 

14,889

 

16,100

 

(1,211)

 

0.62

 

0.18

 

0.44

 

 

 

Savings

 

69,262

 

21,430

 

47,832

 

52,158

 

(4,326)

 

7,603

 

6,913

 

690

 

2.23

 

0.77

 

1.46

 

 

 

Time deposits

 

126,995

 

40,005

 

86,990

 

71,425

 

15,565

 

46,899

 

49,398

 

(2,499)

 

2.08

 

0.31

 

1.77

 

 

Total interest bearing deposits

 

730,824

 

113,507

 

617,317

 

612,287

 

5,030

 

15,405

 

16,088

 

(683)

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

 

 

 

 

 

 

 

 

 

62,304

 

65,486

 

(3,182)

 

1.57

 

0.23

 

1.34

 

 

Total deposits

 

730,824

 

113,507

 

617,317

 

612,287

 

5,030

 

160

 

124

 

36

 

5.02

 

1.34

 

3.68

 

 

Short-term borrowings

 

5,987

 

1,249

 

4,738

 

4,298

 

440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other medium and

 

 

 

 

 

 

 

 

 

 

 

1,140

 

948

 

192

 

5.12

 

4.25

 

0.87

 

 

 

long-term debt

 

43,660

 

30,168

 

13,492

 

7,506

 

5,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest bearing

 

 

 

 

 

 

 

 

 

 

 

48,199

 

50,470

 

(2,271)

 

2.16

 

0.38

 

1.78

 

 

 

liabilities (excluding demand deposits)

 

780,471

 

144,924

 

635,547

 

624,091

 

11,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,332

 

3,806

 

526

 

 

 

 

 

 

 

 

Other sources of funds

 

 

 

 

 

 

 

 

 

 

$

67,936

$

70,364

$

(2,428)

 

1.54

%

0.28

%

1.26

%

 

Total source of funds

 

780,471

 

144,924

 

635,547

 

624,091

 

11,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.32

%

3.39

%

(0.07)

%

 

 

income on a taxable equivalent basis (Non-GAAP)

 

1,692,489

 

1,790,276

 

(97,787)

$

(174,281)

$

76,494

 

 

 

 

 

 

 

2.70

%

3.29

%

(0.59)

%

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent adjustment

 

95,145

 

182,483

 

(87,338)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin/ income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.14

%

3.05

%

0.09

%

 

 

non-taxable equivalent basis (GAAP)

$

1,597,344

$

1,607,793

$

(10,449)

 

 

 

 

Note: The changes that are not due solely to volume or rate are allocated to volume and rate based on the proportion of the change in each category.

[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale and the unrealized loss related to certain securities transferred from available-for-sale to held-to-maturity.

[2] Includes interest bearing demand deposits corresponding to certain government entities in Puerto Rico.

Popular, Inc.

 

 

 

 

 

 

 

 

Financial Supplement to Third Quarter 2023 Earnings Release

 

 

 

 

Table G - Mortgage Banking Activities and Other Service Fees

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Banking Activities

 

 

 

 

 

 

 

 

 

Quarters ended

Variance

Nine months ended

Variance

(In thousands)

30-Sep-23

30-Jun-23

30-Sep-22

Q3 2023
vs. Q2 2023

Q3 2023
vs. Q3 2022

30-Sep-23

30-Sep-22

2023 vs. 2022

Mortgage servicing fees, net of fair value adjustments:

 

 

 

 

 

 

 

 

 

Mortgage servicing fees

$8,025

$8,369

$9,126

$(344)

$(1,101)

$25,083

$27,635

$(2,552)

 

Mortgage servicing rights fair value adjustments

(2,793)

(6,216)

(499)

3,423

(2,294)

(10,385)

2,846

(13,231)

Total mortgage servicing fees, net of fair value adjustments

5,232

2,153

8,627

3,079

(3,395)

14,698

30,481

(15,783)

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

(335)

(61)

1,124

(274)

(1,459)

(133)

(374)

241

Trading account profit (loss):

 

 

 

 

 

 

 

 

 

Unrealized gains on outstanding derivative positions

45

246

-

(201)

45

160

-

160

 

Realized gains (losses) on closed derivative positions

494

111

(240)

383

734

661

6,325

(5,664)

Total trading account profit (loss)

539

357

(240)

182

779

821

6,325

(5,504)

Losses on repurchased loans, including interest advances

(43)

(133)

(63)

90

20

(277)

(544)

267

Total mortgage banking activities

$5,393

$2,316

$9,448

$3,077

$(4,055)

$15,109

$35,888

$(20,779)

 

 

 

 

 

 

 

 

 

 

Other Service Fees

 

 

 

 

 

 

 

 

 

Quarters ended

Variance

Nine months ended

Variance

(In thousands)

30-Sep-23

30-Jun-23

30-Sep-22

Q3 2023
vs. Q2 2023

Q3 2023
vs. Q3 2022

30-Sep-23

30-Sep-22

2023 vs. 2022

Other service fees:

 

 

 

 

 

 

 

 

 

Debit card fees

$13,577

$13,600

$12,133

$(23)

$1,444

$40,343

$36,794

$3,549

 

Insurance fees

14,983

14,625

15,697

358

(714)

43,481

41,870

1,611

 

Credit card fees

40,804

42,644

37,829

(1,840)

2,975

123,946

109,626

14,320

 

Sale and administration of investment products

6,820

6,076

5,952

744

868

19,454

17,760

1,694

 

Trust fees

6,381

6,600

5,506

(219)

875

18,756

17,576

1,180

 

Other fees

10,842

10,720

9,285

122

1,557

31,768

21,361

10,407

Total other service fees

$93,407

$94,265

$86,402

$(858)

$7,005

$277,748

$244,987

$32,761

Popular, Inc.

 

 

 

 

 

Financial Supplement to Third Quarter 2023 Earnings Release

Table H - Loans and Deposits

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Loans - Ending Balances

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

30-Sep-23

30-Jun-23

30-Sep-22

Q3 2023
vs. Q2 2023

Q3 2023
vs. Q3 2022

Loans held-in-portfolio:

 

 

 

 

Commercial

 

 

 

 

 

Commercial multi-family

$2,328,433

$2,331,499

$2,204,109

(3,066)

124,324

Commercial real estate non-owner occupied

5,035,130

4,744,256

4,517,475

290,874

517,655

Commercial real estate owner occupied

3,044,905

3,041,398

3,066,548

3,507

(21,643)

Commercial and industrial

6,527,082

6,251,147

5,578,727

275,935

948,355

Total Commercial

16,935,550

16,368,300

15,366,859

567,250

1,568,691

Construction

922,112

819,903

816,290

102,209

105,822

Leasing

1,698,114

1,661,523

1,538,504

36,591

159,610

Mortgage

7,585,111

7,449,078

7,311,713

136,033

273,398

Consumer

 

 

 

 

 

Credit cards

1,077,428

1,057,389

988,550

20,039

88,878

Home equity lines of credit

67,499

68,440

72,796

(941)

(5,297)

Personal

1,952,168

1,896,594

1,756,021

55,574

196,147

Auto

3,633,196

3,565,533

3,528,904

67,663

104,292

Other

158,135

144,162

143,551

13,973

14,584

Total Consumer

6,888,426

6,732,118

6,489,822

156,308

398,604

Total loans held-in-portfolio

$34,029,313

$33,030,922

$31,523,188

$998,391

$2,506,125

Loans held-for-sale:

 

 

 

 

 

Mortgage

$5,239

$9,509

$8,065

$(4,270)

$(2,826)

Credit cards

-

45,912

-

(45,912)

-

Total loans held-for-sale

$5,239

$55,421

$8,065

$(50,182)

$(2,826)

Total loans

$34,034,552

$33,086,343

$31,531,253

$948,209

$2,503,299

 

 

 

 

 

 

Deposits - Ending Balances

 

 

 

 

 

 

 

 

Variance

(In thousands)

30-Sep-23

30-Jun-23

30-Sep-22

Q3 2023
vs. Q2 2023

Q3 2023
vs. Q3 2022

Demand deposits [1]

$27,942,782

$27,690,840

$28,773,328

$251,942

$(830,546)

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

26,452,382

27,539,343

28,388,057

(1,086,961)

(1,935,675)

Savings, NOW and money market deposits (brokered)

734,479

772,783

728,651

(38,304)

5,828

Time deposits (non-brokered)

7,264,156

7,231,840

6,731,588

32,316

532,568

Time deposits (brokered CDs)

943,801

770,012

197,703

173,789

746,098

Total deposits

$63,337,600

$64,004,818

$64,819,327

$(667,218)

$(1,481,727)

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

 

 

 

 

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to Third Quarter 2023 Earnings Release

Table I - Loan Delinquency -BPPR Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Sep-23

BPPR

 

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

Accruing

(In thousands)

 

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

4,407

 

$

176

 

$

184

 

$

4,767

 

$

290,047

 

$

294,814

 

 

$

184

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

1,274

 

 

-

 

 

15,330

 

 

16,604

 

 

2,932,277

 

 

2,948,881

 

 

 

15,330

 

 

-

 

Owner occupied

 

 

817

 

 

827

 

 

35,089

 

 

36,733

 

 

1,370,820

 

 

1,407,553

 

 

 

35,089

 

 

-

Commercial and industrial

 

 

4,022

 

 

1,728

 

 

24,733

 

 

30,483

 

 

4,299,335

 

 

4,329,818

 

 

 

21,624

 

 

3,109

Construction

 

 

-

 

 

-

 

 

6,578

 

 

6,578

 

 

163,929

 

 

170,507

 

 

 

6,578

 

 

-

Mortgage

 

 

241,962

 

 

100,679

 

 

430,430

 

 

773,071

 

 

5,516,197

 

 

6,289,268

 

 

 

187,443

 

 

242,987

Leasing

 

 

17,915

 

 

4,574

 

 

6,842

 

 

29,331

 

 

1,668,783

 

 

1,698,114

 

 

 

6,842

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

11,218

 

 

8,133

 

 

17,719

 

 

37,070

 

 

1,040,341

 

 

1,077,411

 

 

 

-

 

 

17,719

 

Home equity lines of credit

 

 

26

 

 

-

 

 

-

 

 

26

 

 

2,448

 

 

2,474

 

 

 

-

 

 

-

 

Personal

 

 

19,586

 

 

12,476

 

 

18,582

 

 

50,644

 

 

1,712,358

 

 

1,763,002

 

 

 

18,582

 

 

-

 

Auto

 

 

89,453

 

 

23,019

 

 

40,268

 

 

152,740

 

 

3,480,456

 

 

3,633,196

 

 

 

40,268

 

 

-

 

Other

 

 

567

 

 

388

 

 

2,152

 

 

3,107

 

 

144,425

 

 

147,532

 

 

 

1,885

 

 

267

Total

 

$

391,247

 

$

152,000

 

$

597,907

 

$

1,141,154

 

$

22,621,416

 

$

23,762,570

 

 

$

333,825

 

$

264,082

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Jun-23

BPPR

 

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

 

Accruing

(In thousands)

 

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

3,778

 

$

179

 

$

184

 

$

4,141

 

$

292,736

 

$

296,877

 

 

$

184

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

177

 

 

512

 

 

22,942

 

 

23,631

 

 

2,882,616

 

 

2,906,247

 

 

 

22,942

 

 

-

 

Owner occupied

 

 

1,241

 

 

700

 

 

35,832

 

 

37,773

 

 

1,390,285

 

 

1,428,058

 

 

 

35,832

 

 

-

Commercial and industrial

 

 

2,597

 

 

728

 

 

32,846

 

 

36,171

 

 

4,002,652

 

 

4,038,823

 

 

 

29,758

 

 

3,088

Construction

 

 

-

 

 

970

 

 

9,284

 

 

10,254

 

 

163,481

 

 

173,735

 

 

 

9,284

 

 

-

Mortgage

 

 

221,187

 

 

88,955

 

 

449,930

 

 

760,072

 

 

5,408,216

 

 

6,168,288

 

 

 

194,219

 

 

255,711

Leasing

 

 

13,160

 

 

3,811

 

 

4,743

 

 

21,714

 

 

1,639,809

 

 

1,661,523

 

 

 

4,743

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

9,506

 

 

6,311

 

 

14,185

 

 

30,002

 

 

1,027,370

 

 

1,057,372

 

 

 

-

 

 

14,185

 

Home equity lines of credit

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2,570

 

 

2,570

 

 

 

-

 

 

-

 

Personal

 

 

14,865

 

 

11,660

 

 

17,438

 

 

43,963

 

 

1,642,003

 

 

1,685,966

 

 

 

17,438

 

 

-

 

Auto

 

 

75,879

 

 

18,422

 

 

36,204

 

 

130,505

 

 

3,435,028

 

 

3,565,533

 

 

 

36,204

 

 

-

 

Other

 

 

512

 

 

274

 

 

1,901

 

 

2,687

 

 

132,605

 

 

135,292

 

 

 

1,735

 

 

166

Total

 

$

342,902

 

$

132,522

 

$

625,489

 

$

1,100,913

 

$

22,019,371

 

$

23,120,284

 

 

$

352,339

 

$

273,150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

 

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

 

Accruing

(In thousands)

 

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

629

 

$

(3)

 

$

-

 

$

626

 

$

(2,689)

 

$

(2,063)

 

 

$

-

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

1,097

 

 

(512)

 

 

(7,612)

 

 

(7,027)

 

 

49,661

 

 

42,634

 

 

 

(7,612)

 

 

-

 

Owner occupied

 

 

(424)

 

 

127

 

 

(743)

 

 

(1,040)

 

 

(19,465)

 

 

(20,505)

 

 

 

(743)

 

 

-

Commercial and industrial

 

 

1,425

 

 

1,000

 

 

(8,113)

 

 

(5,688)

 

 

296,683

 

 

290,995

 

 

 

(8,134)

 

 

21

Construction

 

 

-

 

 

(970)

 

 

(2,706)

 

 

(3,676)

 

 

448

 

 

(3,228)

 

 

 

(2,706)

 

 

-

Mortgage

 

 

20,775

 

 

11,724

 

 

(19,500)

 

 

12,999

 

 

107,981

 

 

120,980

 

 

 

(6,776)

 

 

(12,724)

Leasing

 

 

4,755

 

 

763

 

 

2,099

 

 

7,617

 

 

28,974

 

 

36,591

 

 

 

2,099

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

1,712

 

 

1,822

 

 

3,534

 

 

7,068

 

 

12,971

 

 

20,039

 

 

 

-

 

 

3,534

 

Home equity lines of credit

 

 

26

 

 

-

 

 

-

 

 

26

 

 

(122)

 

 

(96)

 

 

 

-

 

 

-

 

Personal

 

 

4,721

 

 

816

 

 

1,144

 

 

6,681

 

 

70,355

 

 

77,036

 

 

 

1,144

 

 

-

 

Auto

 

 

13,574

 

 

4,597

 

 

4,064

 

 

22,235

 

 

45,428

 

 

67,663

 

 

 

4,064

 

 

-

 

Other

 

 

55

 

 

114

 

 

251

 

 

420

 

 

11,820

 

 

12,240

 

 

 

150

 

 

101

Total

 

$

48,345

 

$

19,478

 

$

(27,582)

 

$

40,241

 

$

602,045

 

$

642,286

 

 

$

(18,514)

 

$

(9,068)

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to Third Quarter 2023 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Sep-23

Popular U.S.

 

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

 

Accruing

(In thousands)

 

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

1,332

 

$

-

 

$

404

 

$

1,736

 

$

2,031,883

 

$

2,033,619

 

 

$

404

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

2,628

 

 

-

 

 

734

 

 

3,362

 

 

2,082,887

 

 

2,086,249

 

 

 

734

 

 

-

 

Owner occupied

 

 

1,110

 

 

923

 

 

3,877

 

 

5,910

 

 

1,631,442

 

 

1,637,352

 

 

 

3,877

 

 

-

Commercial and industrial

 

 

3,000

 

 

464

 

 

3,709

 

 

7,173

 

 

2,190,091

 

 

2,197,264

 

 

 

3,579

 

 

130

Construction

 

 

-

 

 

-

 

 

-

 

 

-

 

 

751,605

 

 

751,605

 

 

 

-

 

 

-

Mortgage

 

 

946

 

 

22,313

 

 

11,980

 

 

35,239

 

 

1,260,604

 

 

1,295,843

 

 

 

11,980

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

17

 

 

17

 

 

 

-

 

 

-

 

Home equity lines of credit

 

 

1,045

 

 

335

 

 

4,085

 

 

5,465

 

 

59,560

 

 

65,025

 

 

 

4,085

 

 

-

 

Personal

 

 

2,581

 

 

1,716

 

 

2,637

 

 

6,934

 

 

182,232

 

 

189,166

 

 

 

2,637

 

 

-

 

Other

 

 

113

 

 

-

 

 

402

 

 

515

 

 

10,088

 

 

10,603

 

 

 

402

 

 

-

Total

 

$

12,755

 

$

25,751

 

$

27,828

 

$

66,334

 

$

10,200,409

 

$

10,266,743

 

 

$

27,698

 

$

130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Jun-23

Popular U.S.

 

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

 

Accruing

(In thousands)

 

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

3,137

 

$

-

 

$

418

 

$

3,555

 

$

2,031,067

 

$

2,034,622

 

 

$

418

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

632

 

 

-

 

 

119

 

 

751

 

 

1,837,258

 

 

1,838,009

 

 

 

119

 

 

-

 

Owner occupied

 

 

1,806

 

 

-

 

 

5,095

 

 

6,901

 

 

1,606,439

 

 

1,613,340

 

 

 

5,095

 

 

-

Commercial and industrial

 

 

2,464

 

 

1,738

 

 

6,155

 

 

10,357

 

 

2,201,967

 

 

2,212,324

 

 

 

5,978

 

 

177

Construction

 

 

-

 

 

-

 

 

-

 

 

-

 

 

646,168

 

 

646,168

 

 

 

-

 

 

-

Mortgage

 

 

1,101

 

 

5,435

 

 

14,577

 

 

21,113

 

 

1,259,677

 

 

1,280,790

 

 

 

14,577

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

17

 

 

17

 

 

 

-

 

 

-

 

Home equity lines of credit

 

 

464

 

 

49

 

 

4,252

 

 

4,765

 

 

61,105

 

 

65,870

 

 

 

4,252

 

 

-

 

Personal

 

 

2,766

 

 

1,725

 

 

2,726

 

 

7,217

 

 

203,411

 

 

210,628

 

 

 

2,726

 

 

-