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Popular, Inc. Announces First Quarter 2023 Financial Results

  • Net income of $159.0 million in Q1 2023, compared to net income of $257.1 million in Q4 2022; the results of Q4 2022 included a tax benefit of $68.2 million related to the partial release of the deferred tax valuation allowance in the U.S.
  • Net interest margin of 3.22% in Q1 2023, compared to 3.28% in Q4 2022; net interest margin on a taxable equivalent basis of 3.46% in Q1 2023, compared to 3.64% in Q4 2022.
  • Credit Quality:
    • Non-performing loans held-in-portfolio (“NPLs”) decreased by $27.1 million from Q4 2022; NPLs to loans ratio at 1.3% vs. 1.4% in Q4 2022;
    • Net charge-offs (“NCOs”) increased by $1.6 million from Q4 2022; annualized NCOs at 0.41% of average loans held-in-portfolio vs. 0.39% in Q4 2022;
    • Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.13% vs. 2.25% in Q4 2022; and
    • ACL to NPLs at 167.1% vs. 163.9% in Q4 2022.
  • Loans increased by $260.6 million, $334.5 million in average quarterly balances, from Q4 2022.
  • Deposit balances decreased by $273.3 million, $1.3 billion in average quarterly balances, from Q4 2022.
  • Total borrowings at Q1 2023 were $1.4 billion, flat compared to Q4 2022.
  • Common Equity Tier 1 ratio of 16.73%, Common Equity per Share of $61.82 and Tangible Book Value per Share of $50.15 at March 31, 2023.

Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $159.0 million for the quarter ended March 31, 2023, compared to net income of $257.1 million for the quarter ended December 31, 2022. Excluding the effects of the partial release of $68.2 million of the deferred tax asset valuation allowance, the net income for the fourth quarter was $188.9 million.

Ignacio Alvarez, President and Chief Executive Officer, said: “We reported strong results for the first quarter as we continued to support our clients during a period of increased volatility and uncertainty. Our diversified business model and strong deposit base, robust capital and liquidity positions are a source of strength and allow us to continue to meet our clients’ needs, as reflected by the growth in our loan portfolio and client base during the quarter. We remain optimistic about the opportunities that lie ahead as we remain vigilant of potential risks stemming from continued inflation and economic and market uncertainty. Economic trends in Puerto Rico are positive, and a considerable amount of recovery funds yet to be disbursed are expected to support additional economic activity in future years. I want to express my gratitude to our colleagues; it is their effort and commitment that lead to our customers’ continued trust in Popular.”

Significant Events

Issuance of Senior Notes

On March 13, 2023, the Corporation issued $400 million aggregate principal amount of 7.25% Senior Notes due 2028 (the “Notes”) in an underwritten public offering. The Corporation intends to use the net proceeds of the offering to redeem or repay $300 million aggregate principal amount of its outstanding 6.125% Senior Notes due September 2023.

Refer to Table I for further details of liquidity sources.

Earnings Highlights

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

Quarters ended

(Dollars in thousands, except per share information)

31-Mar-23

 

31-Dec-22

 

31-Mar-22

Net interest income

$531,656

 

$559,566

 

 

$494,312

 

Provision for credit losses (benefit)

47,637

 

49,531

 

 

(15,500

)

Net interest income after provision for credit losses (benefit)

484,019

 

510,035

 

 

509,812

 

Other non-interest income

161,961

 

158,465

 

 

154,692

 

Operating expenses

440,687

 

461,708

 

 

402,339

 

Income before income tax

205,293

 

206,792

 

 

262,165

 

Income tax expense (benefit)

46,314

 

(50,347

)

 

50,479

 

Net income

$158,979

 

$257,139

 

 

$211,686

 

Net income applicable to common stock

$158,626

 

$256,786

 

 

$211,333

 

Net income per common share - basic

$2.22

 

$3.56

 

 

$2.69

 

Net income per common share - diluted

$2.22

 

$3.56

 

 

$2.69

 

 

 

 

 

 

 

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 March 31, 2023 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.

For the quarter ended March 31, 2023, net interest income was $531.7 million, compared to $559.6 million in the previous quarter, a decrease of $27.9 million. The impact of two less days in the quarter results in a reduction of $9.0 million to net interest income and impacts the net interest margin for the quarter. Net interest income on a taxable equivalent basis for the first quarter of 2023 was $570.4 million compared to $621.5 million in the previous quarter, a decrease of $51.1 million. The higher variance in the taxable equivalent net interest income as compared to the GAAP net interest income is related to a higher effective tax during the first quarter of 2023 due to a higher disallowed interest expense as a result of the increase in the Corporation’s cost of deposits. Refer to the Income taxes discussion for further information.

Net interest margin for the quarter was 3.22% compared to 3.28% in the fourth quarter of 2022 or a decrease of 6 basis points. On a taxable equivalent basis, net interest margin for the first quarter of 2023 was 3.46%, compared to 3.64% for the prior quarter. The main variances in net interest income on a taxable equivalent basis were:

  • Lower interest income from money market, investment and trading securities by $15.4 million driven by lower average volume by $1.5 billion;
  • higher interest expense on deposits by $53.9 million due to the increase in rates, mainly from Puerto Rico government, commercial deposits and Popular Bank (“PB”) deposits;

Partially offset by:

  • higher interest income from loans by $18.1 million resulting from an increase in average loans by $336 million reflecting increases in both PB and Banco Popular de Puerto Rico (“BPPR”) and across most major lending segments except construction loans in PB. Loan origination in a higher interest rate environment and the repricing of adjustable-rate loans resulted in a higher yield on loans by 27 basis points. The categories with the highest impact were commercial loans with an increase of $10.8 million in interest income, or 31 basis points, and consumer loans which increased $4.2 million in interest income, or 59 basis points. The yield on the construction portfolio increased by 86 basis points but was offset by lower average balances.

Net interest income for the BPPR segment amounted to $449.8 million for the first quarter of 2023, compared to $472.4 million in the fourth quarter of 2022. Net interest margin decreased slightly to 3.24% compared to 3.26% in the fourth quarter of 2022. The decrease in net interest income of $22.6 million was mainly driven by a higher cost of deposits, partially offset by an improvement in the yield on earning assets. The latter increased 30 basis points driven by the repricing of money market investments and adjustable-rate loans and a higher average volume of loans by $150 million. Earning assets decreased by $1.5 billion, driven primarily by the decrease of P.R. public sector and commercial interest-bearing deposits. The cost of interest-bearing deposits increased 48 basis points to 1.61% from 1.13% the previous quarter. The increase in the cost of deposits was mainly impacted by the repricing of public funds and corporate clients. Total deposit costs for the quarter increased by 35 basis points, from 0.83% to 1.18%.

Net interest income for PB was $90.1 million for the quarter ended March 31, 2023, compared to $94.2 million during the previous quarter, a decrease of $4.1 million. Net interest margin decreased 21 basis points in the quarter to 3.34% compared to 3.55% in the fourth quarter of 2022. 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 driven by the changes in interest rates. The cost of interest-bearing deposits was 2.47% compared to 1.71%, or an increase of 76 basis points, while total deposit cost was 2.01% compared to 1.34% in the previous quarter.

Non-interest income

Non-interest income amounted to $162.0 million for the first quarter of 2023, an increase of $3.5 million compared to $158.5 million for the fourth quarter of 2022. The main factors that contributed to the variance in non-interest income were:

  • higher other service fees by $1.1 million mainly due to higher credit card fees, mainly from commercial clients, and higher investment management and trust fees, partially offset by lower insurance fees, including contingent payments typically received during the fourth quarter;
  • The first quarter of 2023’s results included $7.0 million in income from the successful insurance claim reimbursements related to prior period legal matters while the fourth quarter of 2022’s results included a gain of $8.2 million related to a recovery on the sale of a previously charged-off investment.

Refer to Table B for further details.

Operating expenses

Operating expenses for the first quarter of 2023 totaled $440.7 million, a decrease of $21.0 million when compared to the fourth quarter of 2022. The variance in operating expenses was driven primarily by:

  • lower professional fees by $15.7 million mainly due to lower advisory expenses arising from the Corporation’s Transformation initiative designed to expand its digital capabilities, modernize its technology platform, incurred in the fourth quarter of 2022; though this initiative is ongoing, its initial planning stages required certain up front expenditures in 2022;
  • lower technology and software expenses by $9.7 million mainly due to a decrease in IT professional and consulting fees by $7.6 million, driven by the incurrence during the fourth quarter of 2022 of higher Transformation initiative expenses, and lower network management, application processing and hosting expenses by $1.9 million;
  • lower other business promotion expenses by $9.3 million mainly due to lower seasonal donations, advertising and sponsorship expenses, which are typically higher in the fourth quarter; and
  • lower other operating expenses by $3.3 million mainly due to a reserve of $2.0 million in legal matters recorded during the fourth quarter of 2022 and lower mortgage servicing related losses;

partially offset by:

  • higher personnel costs by $8.6 million, mainly due to higher salaries by $8.9 million as a result of an increase in minimum salary at BPPR effective in January 2023 and higher headcount, an increase in health insurance costs by $2.8 million, and higher payroll taxes, fringe benefits and other compensation expenses by $5.2 million that traditionally are higher during the first quarter of the year; partially offset by a decrease in profit-sharing accrual of $8.0 million;
  • higher credit and debit card processing and transactional expenses by $2.3 million mainly due to higher volume of transactions;
  • higher FDIC deposit insurance expense by $2.5 million due to amendments to the Deposit Insurance Fund restoration plan implemented by the FDIC that increased the base deposit assessment rate by 2 basis points, annually, beginning with the first quarterly assessment period of 2023; and
  • lower other real estate owned (OREO) benefit by $7.5 million mainly due to lower gain on sale of mortgage and commercial properties by $5.1 million and lower expense claim reimbursement from federal government agency programs by $1.2 million.

Management believes that the level of expenditures related to the Corporation’s Transformation initiative incurred during the first quarter of 2023 reflects the current maturity of the project: as the initiative matures, expenses are expected to shift from being primarily advisory-related to expenses related to the development and execution of implementation plans, which have a slower pace of expenditure but are expected to accelerate as the year progresses.

Full-time equivalent employees were 8,975 as of March 31, 2023, compared to 8,813 as of December 31, 2022.

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

Income taxes

For the quarter ended March 31, 2023, the Corporation recorded an income tax expense of $46.3 million compared to an income tax benefit of $50.3 million for the previous quarter. The unfavorable variance in income tax expense was mainly attributable to a partial reversal of the deferred tax asset valuation allowance of the U.S. operation during the fourth quarter of 2022 of $68.2 million and a true-up adjustment of $9.5 million in relation to the fiscal year 2021 tax returns for the P.R. subsidiaries filed in the fourth quarter and related year-to-date adjustments for tax exempt income. The effective tax rate (“ETR”) for the first quarter of 2023 was of 23%. The ETR for the fourth quarter of 2022 was (24)%. Excluding the impact of the partial release of the valuation allowance and true up adjustment, the ETR for the fourth quarter was 12%. The higher ETR during the first quarter of 2023 is mainly due to lower projected tax-exempt income and higher disallowed interest expense deductions as a result of an increase in the Corporation’s projected interest expense for the remainder of 2023. Under the Puerto Rico income tax law, taxable income is computed excluding the exempt interest income but requires a disallowance of the related interest and administrative expenses allocated to support the exempt assets’ income, which has the effect of reducing the benefit of tax-exempt income.

The ETR of the Corporation is impacted by the composition and source of its taxable income. The Corporation expects its ETR for the year 2023 to be within a range from 21% to 26%.

Credit Quality

During the first quarter of 2023, the Corporation continued to reflect strong credit quality metrics with low levels of NCOs and decreasing NPLs. We continue to closely monitor changes in the macroeconomic environment and on borrower performance, given inflationary pressures and geopolitical risks. However, management believes that the improvement over recent years in 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 first quarter of 2023:

  • At March 31, 2023, total non-performing loans held-in-portfolio decreased by $27.1 million from December 31, 2022. BPPR’s NPLs decreased by $23.0 million, mostly driven by lower mortgage and consumer NPLs by $18.3 million and $13.7 million, respectively, in part offset by higher commercial loans NPLs by $8.8 million. The consumer NPLs decrease was mostly driven by a $10.5 million line of credit charge-off on a single relationship, while the commercial NPLs increase was driven by a $14.3 million loan relationship. PB’s NPLs decreased by $4.0 million quarter-over-quarter, mostly due to lower mortgage NPLs by $5.8 million. At March 31, 2023, the ratio of NPLs to total loans held-in-portfolio was at 1.3%, compared to 1.4% in the fourth quarter of 2022.
  • Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $6.8 million quarter-over-quarter. In BPPR, total inflows increased by $10.4 million, mainly driven by the abovementioned commercial relationship, while PB inflows decrease by $3.5 million quarter-over-quarter, mainly driven by lower commercial inflows by $2.8 million.
  • NCOs amounted to $32.8 million, increasing by $1.6 million when compared to the fourth quarter of 2022. BPPR’s NCOs increased by $11.6 million quarter-over-quarter, mainly driven by higher consumer NCOs by $10.4 million, mostly due to the previously mentioned $10.5 million line of credit charge-off. PB’s NCOs decreased by $10.0 million quarter-over-quarter, as the prior quarter included an $8.7 million charge-off on a healthcare loan. During the first quarter of 2023, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.41%, compared to 0.39% in the fourth quarter of 2022. Excluding the impact of the abovementioned $10.5 line of credit charge-off, the annualized net charge-off ratio was 0.28%. Refer to Table O for further information on net charge-offs and related ratios.
  • At March 31, 2023, the ACL decreased by $31.2 million from the fourth quarter of 2022 to $689.1 million. The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02 in March 2022, which eliminates the accounting guidance for troubled debt restructures (“TDRs”) and the requirement to measure the effect of the concession from a loan modification, for which the Corporation used a discounted cash flow (“DCF”) method. This impact resulted in a release in the ACL of approximately $45.6 million, mostly as a result of our mortgage TDR portfolio, presented as an adjustment to the beginning balance of retained earnings, net of tax effect. Excluding the impact of ASU 2022-02, the ACL increased by $14.4 million mainly within the Puerto Rico region. The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario.
  • The 2023 annualized GDP growth in the baseline scenario stands at 2.1% and 1.3% for Puerto Rico and the United States, respectively, increasing from 1.3% and 0.7% in the previous quarter. The 2023 forecasted average unemployment rate continues strong, improving quarter-over-quarter to 6.9% and 3.5% for Puerto Rico and United States, respectively, from 7.8% and 4.0% respectively, in the previous forecast.
  • Excluding ASU 2022-02 impact, in BPPR the ACL increased by $13.8 million, mostly driven by reductions in the P.R. Home Pricing Index (“HPI”) forecast, higher loan volumes and migration of consumer credit scores. In the PB segment the ACL remained essentially flat quarter-over-quarter. The Corporation’s ratio of the allowance for credit losses to loans held-in-portfolio was 2.13% in the first quarter of 2023, compared to 2.25% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 167.1%, compared to 163.9% in the previous quarter.
  • The provision for credit losses for the loan portfolios for the first quarter of 2023 was an expense of $47.1 million, compared to an expense of $48.3 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was an expense of $45.2 million, compared to an expense of $44.4 million in the previous quarter, while the provision for PB was an expense of $1.9 million, compared to an expense of $3.9 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 Statement of Operations.

Non-Performing Assets

 

 

 

 

 

(Unaudited)

 

 

 

 

 

(In thousands)

31-Mar-23

 

31-Dec-22

 

31-Mar-22

Non-performing loans held-in-portfolio

$412,383

 

 

$439,441

 

 

$519,921

 

Other real estate owned (“OREO”)

91,721

 

 

89,126

 

 

90,567

 

Total non-performing assets

$504,104

 

 

$528,567

 

 

$610,488

 

Net charge-offs (recoveries) for the quarter

$32,813

 

 

$31,200

 

 

$3,781

 

 

 

 

 

 

 

 

Ratios:

 

 

 

 

 

Loans held-in-portfolio

$32,338,373

 

 

$32,077,769

 

 

$29,588,190

 

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

1.28

%

 

1.37

%

 

1.76

%

Allowance for credit losses to loans held-in-portfolio

2.13

 

 

2.25

 

 

2.29

 

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

167.11

 

 

163.91

 

 

130.36

 

Refer to Table M for additional information.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Credit Losses (Benefit) - Loan Portfolios

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Quarters ended

(In thousands)

 

31-Mar-23

 

31-Dec-22

 

31-Mar-22

Provision for credit losses (benefit) - loan portfolios:

 

 

 

 

 

 

BPPR

 

$45,203

 

$44,383

 

$(12,661

)

Popular U.S.

 

1,943

 

3,949

 

(1,744

)

Total provision for credit losses (benefit) - loan portfolios

 

$47,146

 

$48,332

 

$(14,405

)

Credit Quality by Segment

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

(In thousands)

Quarters ended

BPPR

 

31-Mar-23

 

31-Dec-22

 

31-Mar-22

Provision for credit losses (benefit) - loan portfolios

 

$45,203

 

 

$44,383

 

 

$(12,661

)

Net charge-offs (recoveries)

 

31,464

 

 

19,846

 

 

5,502

 

Total non-performing loans held-in-portfolio

378,979

 

 

402,009

 

 

486,816

 

Allowance / loans held-in-portfolio

2.57

%

 

2.73

%

 

2.74

%

Allowance / non-performing loans held-in-portfolio

154.89

%

 

153.12

%

 

118.45

%

 

 

 

 

 

 

 

 

Quarters ended

Popular U.S.

 

31-Mar-23

 

31-Dec-22

 

31-Mar-22

Provision for credit losses (benefit) - loan portfolios

 

$1,943

 

 

$3,949

 

 

$(1,744

)

Net charge-offs (recoveries)

 

1,349

 

 

11,354

 

 

(1,721

)

Total non-performing loans held-in-portfolio

 

33,404

 

 

37,432

 

 

33,105

 

Allowance / loans held-in-portfolio

1.07

%

 

1.10

%

 

1.18

%

Allowance / non-performing loans held-in-portfolio

305.69

%

 

279.86

%

 

305.64

%

Financial Condition Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

(In thousands)

 

31-Mar-23

 

31-Dec-22

 

31-Mar-22

Cash and money market investments

 

$6,560,301

 

$6,084,096

 

$10,508,840

Investment securities

 

25,951,936

 

26,553,317

 

26,658,289

Loans

 

32,338,373

 

32,077,769

 

29,588,190

Total assets

 

67,675,759

 

67,637,917

 

69,525,082

Deposits

 

60,953,888

 

61,227,227

 

62,862,295

Borrowings

 

1,402,626

 

1,400,319

 

1,060,706

Total liabilities

 

63,205,034

 

63,544,492

 

64,853,836

Stockholders’ equity

 

4,470,725

 

4,093,425

 

4,671,246

Total assets amounted to $67.7 billion at March 31, 2023, an increase of $37.8 million from the fourth quarter of 2022, driven by:

  • an increase in overnight FED fund balances of $483.1 million, reflecting net funding activities and the issuance of the $400 million senior notes due in 2028, offset by loan originations, the repayment of short-term borrowings and the reduction in deposits discussed below;
  • an increase in securities held to maturity of $37.8 million, mainly due to the amortization of $42.0 million of the discount related to securities previously reclassified from the available-for-sale to held-to-maturity (“HTM”), which has an offsetting unrealized loss included within other comprehensive income that is also being accreted, resulting in a neutral effect to earnings; and
  • an increase in loans held-in-portfolio of $260.6 million, reflected across all portfolios in BPPR, and an increase in commercial loans at PB, offset by a decrease in its construction and consumer loans portfolio.

partially offset by:

  • a decrease in other assets of $144.5 million due to a positive variance of $125.3 million in securities trade receivable; and
  • a decrease in securities available for sale of $631.2 million reflecting repayment and maturities, offset by a reduction of $215.5 million in unrealized losses mainly from U.S. Treasury and mortgage-backed securities at BPPR.

Total liabilities decreased by $339.5 million from the fourth quarter of 2022, driven by:

  • a decrease of $273.3 million in deposits, mainly in public sector accounts as well as interest bearing retail deposits at BPPR, partially offset by an increase at PB, mainly from time and savings deposits gathered through its direct channel; and
  • a decrease in short term borrowings of $365.0 million due to the repayment of advances with the FHLB at Popular Bank

partially offset by:

  • an increase in notes payable of $392.4 million due to the issuance of $400 million in senior notes due on 2028.

Stockholders' equity increased by $377.3 million from the fourth quarter of 2022, principally due to net income for the quarter of $159.0 million, the after-tax impact of the favorable variance in net unrealized losses in the portfolio of available-for-sale securities of $191.8 million, the amortization of the unrealized losses from securities reclassified to HTM as described above of $33.6 million, and the adoption of the new ASU during the quarter of $28.8 million, partially offset by dividends declared for the quarter.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.73%, $61.82 and $50.15, respectively, at March 31, 2023, compared to 16.39%, $56.66 and $44.97 at December 31, 2022. Refer to Table A for capital ratios.

During the first quarter of 2023 the Corporation had no material incremental use of its available liquidity sources. At March 31, 2023, the Corporation’s available liquidity increased to $18.3 billion from $17.0 billion on December 31, 2022. Refer to Table I for additional information on the Corporation’s liquidity sources.

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, 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 and in our Form 10-Q for the quarter ended March 31, 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, Wednesday, April 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 980053.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Thursday, May 25, 2023. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 275290.

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

Popular, Inc.

Financial Supplement to First Quarter 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) - For the quarter ended March 31, 2023 and December 31,2022

 

Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - For the quarter ended March 31, 2023 and March 31,2022

 

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

 

Table G - Mortgage Banking Activities & Other Service Fees

 

Table H - Loans and Deposits

 

Table I - Liquidity Sources, Deposits and Borrowings

 

Table J - Loan Delinquency - PUERTO RICO OPERATIONS

 

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

 

Table L - Loan Delinquency - CONSOLIDATED

 

Table M - Non-Performing Assets

 

Table N - Activity in Non-Performing Loans

 

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

 

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

 

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

 

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

 

Table S - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to First Quarter 2023 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

 

 

 

Quarters ended

 

31-Mar-23

 

31-Dec-22

 

31-Mar-22

 

Basic EPS

$2.22

 

$3.56

 

$2.69

 

Diluted EPS

$2.22

 

$3.56

 

$2.69

 

Average common shares outstanding

71,541,778

 

72,101,177

 

78,443,706

 

Average common shares outstanding - assuming dilution

71,606,196

 

72,192,680

 

78,595,463

 

Common shares outstanding at end of period

71,965,984

 

71,853,720

 

76,487,523

 

Market value per common share

$57.41

 

$66.32

 

$81.74

 

Market capitalization - (In millions)

$4,132

 

$4,765

 

$6,252

 

Return on average assets

0.93

%

1.44

%

1.14

%

Return on average common equity

10.00

%

16.59

%

14.38

%

Net interest margin (non-taxable equivalent basis)

3.22

%

3.28

%

2.75

%

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

3.46

%

3.64

%

3.05

%

Common equity per share

$61.82

 

$56.66

 

$60.78

 

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

$50.15

 

$44.97

 

$51.16

 

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

5.40

%

4.84

%

5.69

%

Return on average tangible common equity [1]

11.51

%

19.23

%

16.40

%

Tier 1 capital

16.79

%

16.45

%

16.33

%

Total capital

18.61

%

18.26

%

18.19

%

Tier 1 leverage

8.47

%

8.06

%

6.98

%

Common Equity Tier 1 capital

16.73

%

16.39

%

16.26

%

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

POPULAR, INC.

Financial Supplement to First Quarter 2023 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

 

Quarters ended

Variance

 

Quarter ended

 

Variance

 

 

 

 

Q1 2023

 

 

Q1 2023

 

(In thousands, except per share information)

31-Mar-23

 

31-Dec-22

 

vs. Q4 2022

 

31-Mar-22

 

vs. Q1 2022

 

Interest income:

 

 

 

 

 

Loans

$541,210

 

$522,042

 

$19,168

 

$426,791

 

$114,419

 

Money market investments

65,724

 

50,908

 

14,816

 

6,464

 

59,260

 

Investment securities

132,088

 

140,244

 

(8,156

)

96,466

 

35,622

 

Total interest income

739,022

 

713,194

 

25,828

 

529,721

 

209,301

 

Interest expense:

 

 

 

 

 

Deposits

193,215

 

139,338

 

53,877

 

24,783

 

168,432

 

Short-term borrowings

2,885

 

4,488

 

(1,603

)

80

 

2,805

 

Long-term debt

11,266

 

9,802

 

1,464

 

10,546

 

720

 

Total interest expense

207,366

 

153,628

 

53,738

 

35,409

 

171,957

 

Net interest income

531,656

 

559,566

 

(27,910

)

494,312

 

37,344

 

Provision for credit losses (benefit)

47,637

 

49,531

 

(1,894

)

(15,500

)

63,137

 

Net interest income after provision for credit losses (benefit)

484,019

 

510,035

 

(26,016

)

509,812

 

(25,793

)

Service charges on deposit accounts

34,678

 

34,682

 

(4

)

40,713

 

(6,035

)

Other service fees

90,076

 

89,022

 

1,054

 

77,134

 

12,942

 

Mortgage banking activities

7,400

 

6,562

 

838

 

12,865

 

(5,465

)

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

1,100

 

317

 

783

 

(2,094

)

3,194

 

Net gain (loss) on trading account debt securities

378

 

162

 

216

 

(723

)

1,101

 

Adjustments to indemnity reserves on loans sold

612

 

(221

)

833

 

(745

)

1,357

 

Other operating income

27,717

 

27,941

 

(224

)

27,542

 

175

 

Total non-interest income

161,961

 

158,465

 

3,496

 

154,692

 

7,269

 

Operating expenses:

 

 

 

 

 

Personnel costs

 

 

 

 

 

Salaries

125,393

 

116,503

 

8,890

 

98,673

 

26,720

 

Commissions, incentives and other bonuses

31,162

 

39,570

 

(8,408

)

35,521

 

(4,359

)

Pension, postretirement and medical insurance

15,378

 

12,452

 

2,926

 

12,783

 

2,595

 

Other personnel costs, including payroll taxes

26,827

 

21,612

 

5,215

 

20,019

 

6,808

 

Total personnel costs

198,760

 

190,137

 

8,623

 

166,996

 

31,764

 

Net occupancy expenses

26,039

 

27,812

 

(1,773

)

24,723

 

1,316

 

Equipment expenses

8,412

 

9,828

 

(1,416

)

8,389

 

23

 

Other taxes

16,291

 

16,142

 

149

 

15,715

 

576

 

Professional fees

33,431

 

49,159

 

(15,728

)

36,792

 

(3,361

)

Technology and software expenses

68,559

 

78,264

 

(9,705

)

70,535

 

(1,976

)

Processing and transactional services

 

 

 

 

 

Credit and debit cards

12,550

 

10,278

 

2,272

 

11,472

 

1,078

 

Other processing and transactional services

21,359

 

22,509

 

(1,150

)

19,481

 

1,878

 

Total processing and transactional services

33,909

 

32,787

 

1,122

 

30,953

 

2,956

 

Communications

4,088

 

3,857

 

231

 

3,673

 

415

 

Business promotion

 

 

 

 

 

Rewards and customer loyalty programs

12,348

 

13,538

 

(1,190

)

10,021

 

2,327

 

Other business promotion

6,523

 

14,596

 

(8,073

)

5,062

 

1,461

 

Total business promotion

18,871

 

28,134

 

(9,263

)

15,083

 

3,788

 

FDIC deposit insurance

8,865

 

6,342

 

2,523

 

7,372

 

1,493

 

Other real estate owned (OREO) income

(1,694

)

(9,180

)

7,486

 

(2,713

)

1,019

 

Other operating expenses

 

 

 

 

 

Operational losses

6,800

 

9,018

 

(2,218

)

11,825

 

(5,025

)

All other

17,561

 

18,614

 

(1,053

)

12,105

 

5,456

 

Total other operating expenses

24,361

 

27,632

 

(3,271

)

23,930

 

431

 

Amortization of intangibles

795

 

794

 

1

 

891

 

(96

)

Total operating expenses

440,687

 

461,708

 

(21,021

)

402,339

 

38,348

 

Income before income tax

205,293

 

206,792

 

(1,499

)

262,165

 

(56,872

)

Income tax (benefit) expense

46,314

 

(50,347

)

96,661

 

50,479

 

(4,165

)

Net income

$158,979

 

$257,139

 

$(98,160

)

$211,686

 

$(52,707

)

Net income applicable to common stock

$158,626

 

$256,786

 

$(98,160

)

$211,333

 

$(52,707

)

Net income per common share - basic

$2.22

 

$3.56

 

$(1.34

)

$2.69

 

$(0.47

)

Net income per common share - diluted

$2.22

 

$3.56

 

$(1.34

)

$2.69

 

$(0.47

)

Dividends Declared per Common Share

$0.55

 

$0.55

 

$-

 

$0.55

 

$-

 

Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

 

 

 

 

Variance

 

 

 

 

Q1 2023 vs.

(In thousands)

31-Mar-23

 

31-Dec-22

 

31-Mar-22

 

Q4 2022

Assets:

 

 

 

 

Cash and due from banks

$462,013

 

$469,501

 

$439,148

 

$(7,488

)

Money market investments

6,098,288

 

5,614,595

 

10,069,692

 

483,693

 

Trading account debt securities, at fair value

29,839

 

27,723

 

36,042

 

2,116

 

Debt securities available-for-sale, at fair value

17,173,128

 

17,804,374

 

26,359,915

 

(631,246

)

Debt securities held-to-maturity, at amortized cost

8,563,052

 

8,525,366

 

75,984

 

37,686

 

Less: Allowance for credit losses

6,792

 

6,911

 

7,844

 

(119

)

Total debt securities held-to-maturity, net

8,556,260

 

8,518,455

 

68,140

 

37,805

 

Equity securities

185,917

 

195,854

 

186,348

 

(9,937

)

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

11,181

 

5,381

 

55,150

 

5,800

 

Loans held-in-portfolio

32,645,023

 

32,372,925

 

29,856,356

 

272,098

 

Less: Unearned income

306,650

 

295,156

 

268,166

 

11,494

 

Allowance for credit losses

689,120

 

720,302

 

677,792

 

(31,182

)

Total loans held-in-portfolio, net

31,649,253

 

31,357,467

 

28,910,398

 

291,786

 

Premises and equipment, net

508,007

 

498,711

 

488,390

 

9,296

 

Other real estate

91,721

 

89,126

 

90,567

 

2,595

 

Accrued income receivable

239,815

 

240,195

 

204,466

 

(380

)

Mortgage servicing rights, at fair value

127,475

 

128,350

 

125,358

 

(875

)

Other assets

1,703,285

 

1,847,813

 

1,755,847

 

(144,528

)

Goodwill

827,428

 

827,428

 

720,293

 

-

 

Other intangible assets

12,149

 

12,944

 

15,328

 

(795

)

Total assets

$67,675,759

 

$67,637,917

 

$69,525,082

 

$37,842

 

Liabilities and Stockholders’ Equity:

 

 

 

 

Liabilities:

 

 

 

 

Deposits:

 

 

 

 

Non-interest bearing

$15,940,850

 

$15,960,557

 

$16,096,666

 

$(19,707

)

Interest bearing

45,013,038

 

45,266,670

 

46,765,629

 

(253,632

)

Total deposits

60,953,888

 

61,227,227

 

62,862,295

 

(273,339

)

Assets sold under agreements to repurchase

123,499

 

148,609

 

72,819

 

(25,110

)

Other short-term borrowings

-

 

365,000

 

-

 

(365,000

)

Notes payable

1,279,127

 

886,710

 

987,887

 

392,417

 

Other liabilities

848,520

 

916,946

 

930,835

 

(68,426

)

Total liabilities

63,205,034

 

63,544,492

 

64,853,836

 

(339,458

)

Stockholders’ equity:

 

 

 

 

Preferred stock

22,143

 

22,143

 

22,143

 

-

 

Common stock

1,047

 

1,047

 

1,046

 

-

 

Surplus

4,792,619

 

4,790,993

 

4,571,111

 

1,626

 

Retained earnings

3,982,140

 

3,834,348

 

3,143,004

 

147,792

 

Treasury stock

(2,025,399

)

(2,030,178

)

(1,668,820

)

4,779

 

Accumulated other comprehensive loss, net of tax

(2,301,825

)

(2,524,928

)

(1,397,238

)

223,103

 

Total stockholders’ equity

4,470,725

 

4,093,425

 

4,671,246

 

377,300

 

Total liabilities and stockholders’ equity

$67,675,759

 

$67,637,917

 

$69,525,082

 

$37,842

 

Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

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

For the quarters ended March 31, 2023 and December 31, 2022

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

Average Volume

 

Average Yields / Costs

 

 

Interest

Attributable to

31-Mar-23

31-Dec-22

Variance

 

31-Mar-23

 

31-Dec-22

 

Variance

 

 

31-Mar-23

31-Dec-22

Variance

Rate

 

Volume

(In millions)

 

 

 

 

 

 

 

(In thousands)

$

5,736

$

5,262

$

474

 

 

4.65

%

3.84

%

0.81

%

 

Money market investments

$

65,724

$

50,907

$

14,817

 

$

9,946

 

$

4,871

 

 

28,862

 

30,843

 

(1,981

)

 

2.22

 

2.44

 

(0.22

)

 

Investment securities [1]

 

158,914

 

189,189

 

(30,275

)

 

(19,127

)

 

(11,148

)

 

31

 

30

 

1

 

 

4.47

 

4.28

 

0.19

 

 

Trading securities

 

338

 

325

 

13

 

 

7

 

 

6

 

 

 

 

 

 

 

 

 

 

 

Total money market,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

investment and trading

 

 

 

 

 

 

 

34,629

 

36,135

 

(1,506

)

 

2.63

 

2.65

 

(0.02

)

 

securities

 

224,976

 

240,421

 

(15,445

)

 

(9,174

)

 

(6,271

)

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

15,761

 

15,503

 

258

 

 

6.32

 

6.01

 

0.31

 

 

Commercial

 

245,469

 

234,707

 

10,762

 

 

6,824

 

 

3,938

 

 

732

 

769

 

(37

)

 

8.40

 

7.54

 

0.86

 

 

Construction

 

15,155

 

14,615

 

540

 

 

1,263

 

 

(723

)

 

1,588

 

1,557

 

31

 

 

6.12

 

5.92

 

0.20

 

 

Leasing

 

24,282

 

23,049

 

1,233

 

 

760

 

 

473

 

 

7,388

 

7,346

 

42

 

 

5.46

 

5.38

 

0.08

 

 

Mortgage

 

100,773

 

98,880

 

1,893

 

 

1,330

 

 

563

 

 

3,020

 

2,961

 

59

 

 

12.85

 

12.26

 

0.59

 

 

Consumer

 

95,715

 

91,519

 

4,196

 

 

2,078

 

 

2,118

 

 

3,559

 

3,576

 

(17

)

 

8.14

 

7.98

 

0.16

 

 

Auto

 

71,407

 

71,910

 

(503

)

 

(173

)

 

(330

)

 

32,048

 

31,712

 

336

 

 

6.97

 

6.70

 

0.27

 

 

Total loans

 

552,801

 

534,680

 

18,121

 

 

12,082

 

 

6,039

 

$

66,677

$

67,847

$

(1,170

)

 

4.72

%

4.54

%

0.18

%

 

Total earning assets

$

777,777

$

775,101

$

2,676

 

$

2,908

 

$

(232

)

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

$

23,313

$

24,399

$

(1,086

)

 

2.52

%

1.73

%

0.79

%

 

NOW and money market [2]

$

144,970

$

106,591

$

38,379

 

$

42,884

 

$

(4,505

)

 

15,029

 

15,248

 

(219

)

 

0.47

 

0.29

 

0.18

 

 

Savings

 

17,443

 

10,971

 

6,472

 

 

6,771

 

 

(299

)

 

7,099

 

6,675

 

424

 

 

1.76

 

1.29

 

0.47

 

 

Time deposits

 

30,802

 

21,776

 

9,026

 

 

7,264

 

 

1,762

 

 

45,441

 

46,322

 

(881

)

 

1.72

 

1.19

 

0.53

 

 

Total interest bearing deposits

 

193,215

 

139,338

 

53,877

 

 

56,919

 

 

(3,042

)

 

15,704

 

16,110

 

(406

)

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

 

 

 

 

 

61,145

 

62,432

 

(1,287

)

 

1.28

 

0.89

 

0.39

 

 

Total deposits

 

193,215

 

139,338

 

53,877

 

 

56,919

 

 

(3,042

)

 

247

 

450

 

(203

)

 

4.74

 

3.96

 

0.78

 

 

Short-term borrowings

 

2,885

 

4,488

 

(1,603

)

 

710

 

 

(2,313

)

 

 

 

 

 

 

 

 

 

 

Other medium and

 

 

 

 

 

 

 

947

 

913

 

34

 

 

4.78

 

4.30

 

0.48

 

 

long-term debt

 

11,266

 

9,802

 

1,464

 

 

855

 

 

609

 

 

 

 

 

 

 

 

 

 

 

Total interest bearing

 

 

 

 

 

 

 

46,635

 

47,685

 

(1,050

)

 

1.80

 

1.28

 

0.52

 

 

liabilities (excluding demand deposits)

 

207,366

 

153,628

 

53,738

 

 

58,484

 

 

(4,746

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,338

 

4,052

 

286

 

 

 

 

 

 

 

 

Other sources of funds

 

 

 

 

 

 

$

66,677

$

67,847

$

(1,170

)

 

1.26

%

0.90

%

0.36

%

 

Total source of funds

 

207,366

 

153,628

 

53,738

 

 

58,484

 

 

(4,746

)

 

 

 

 

 

 

 

 

 

 

Net interest margin/

 

 

 

 

 

 

 

 

 

 

3.46

%

3.64

%

(0.18

)%

 

income on a taxable equivalent basis (Non-GAAP)

 

570,411

 

621,473

 

(51,062

)

$

(55,576

)

$

4,514

 

 

 

 

 

2.92

%

3.26

%

(0.34

)%

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent adjustment

 

38,755

 

61,907

 

(23,152

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin/ income

 

 

 

 

 

 

 

 

 

 

3.22

%

3.28

%

(0.06

)%

 

non-taxable equivalent basis (GAAP)

$

531,656

$

559,566

$

(27,910

)

 

 

 

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

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

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

Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

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

For the quarters ended March 31, 2023 and March 31, 2022

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

Average Volume

 

Average Yields / Costs

 

 

Interest

Attributable to

31-Mar-23

31-Mar-22

Variance

 

31-Mar-23

31-Mar-22

Variance

 

 

31-Mar-23

31-Mar-22

Variance

Rate

Volume

(In millions)

 

 

 

 

 

 

(In thousands)

$

5,736

$

14,763

$

(9,027

)

 

4.65

%

0.18

%

4.47

%

 

Money market investments

$

65,724

$

6,464

$

59,260

 

$

65,572

 

$

(6,312

)

 

28,862

 

28,471

 

391

 

 

2.22

 

1.95

 

0.27

 

 

Investment securities [1]

 

158,914

 

137,350

 

21,564

 

 

21,280

 

 

284

 

 

31

 

70

 

(39

)

 

4.47

 

5.90

 

(1.43

)

 

Trading securities

 

338

 

1,019

 

(681

)

 

(206

)

 

(475

)

 

 

 

 

 

 

 

 

Total money market,

 

 

 

 

 

 

 

 

 

 

 

 

 

investment and trading

 

 

 

 

 

 

34,629

 

43,304

 

(8,675

)

 

2.63

 

1.35

 

1.28

 

 

securities

 

224,976

 

144,833

 

80,143

 

 

86,646

 

 

(6,503

)

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

15,761

 

13,741

 

2,020

 

 

6.32

 

5.08

 

1.24

 

 

Commercial

 

245,469

 

172,128

 

73,341

 

 

45,728

 

 

27,613

 

 

732

 

727

 

5

 

 

8.40

 

5.45

 

2.95

 

 

Construction

 

15,155

 

9,758

 

5,397

 

 

5,320

 

 

77

 

 

1,588

 

1,393

 

195

 

 

6.12

 

5.95

 

0.17

 

 

Leasing

 

24,282

 

20,720

 

3,562

 

 

586

 

 

2,976

 

 

7,388

 

7,388

 

-

 

 

5.46

 

5.24

 

0.22

 

 

Mortgage

 

100,773

 

96,768

 

4,005

 

 

4,005

 

 

-

 

 

3,020

 

2,537

 

483

 

 

12.85

 

11.20

 

1.65

 

 

Consumer

 

95,715

 

70,062

 

25,653

 

 

11,118

 

 

14,535

 

 

3,559

 

3,460

 

99

 

 

8.14

 

8.12

 

0.02

 

 

Auto

 

71,407

 

69,252

 

2,155

 

 

169

 

 

1,986

 

��

32,048

 

29,246

 

2,802

 

 

6.97

 

6.06

 

0.91

 

 

Total loans

 

552,801

 

438,688

 

114,113

 

 

66,926

 

 

47,187

 

$

66,677

$

72,550

$

(5,873

)

 

4.72

%

3.25

%

1.47

%

 

Total earning assets

$

777,777

$

583,521

$

194,256

 

$

153,572

 

$

40,684

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

$

23,313

$

28,288

$

(4,975

)

 

2.52

%

0.10

%

2.42

%

 

NOW and money market [2]

$

144,970

$

7,323

$

137,647

 

$

139,459

 

$

(1,812

)

 

15,029

 

16,434

 

(1,405

)

 

0.47

 

0.16

 

0.31

 

 

Savings

 

17,443

 

6,564

 

10,879

 

 

12,314

 

 

(1,435

)

 

7,099

 

6,737

 

362

 

 

1.76

 

0.66

 

1.10

 

 

Time deposits

 

30,802

 

10,896

 

19,906

 

 

16,703

 

 

3,203

 

 

45,441

 

51,459

 

(6,018

)

 

1.72

 

0.20

 

1.52

 

 

Total interest bearing deposits

 

193,215

 

24,783

 

168,432

 

 

168,476

 

 

(44

)

 

15,704

 

16,143

 

(439

)

 

 

 

 

 

Non-interest bearing demand deposits

 

 

 

 

 

 

61,145

 

67,602

 

(6,457

)

 

1.28

 

0.15

 

1.13

 

 

Total deposits

 

193,215

 

24,783

 

168,432

 

 

168,476

 

 

(44

)

 

247

 

91

 

156

 

 

4.74

 

0.36

 

4.38

 

 

Short-term borrowings

 

2,885

 

80

 

2,805

 

 

2,081

 

 

724

 

 

 

 

 

 

 

 

 

Other medium and

 

 

 

 

 

 

947

 

1,013

 

(66

)

 

4.78

 

4.18

 

0.60

 

 

long-term debt

 

11,266

 

10,546

 

720

 

 

426

 

 

294

 

 

 

 

 

 

 

 

 

Total interest bearing

 

 

 

 

 

 

46,635

 

52,563

 

(5,928

)

 

1.80

 

0.27

 

1.53

 

 

liabilities (excluding demand deposits)

 

207,366

 

35,409

 

171,957

 

 

170,983

 

 

974

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,338

 

3,844

 

494

 

 

 

 

 

 

Other sources of funds

 

 

 

 

 

$

66,677

$

72,550

$

(5,873

)

 

1.26

%

0.20

%

1.06

%

 

Total source of funds

 

207,366

 

35,409

 

171,957

 

 

170,983

 

 

974

 

 

 

 

 

 

 

 

 

Net interest margin/

 

 

 

 

 

 

 

 

 

3.46

%

3.05

%

0.41

%

 

income on a taxable equivalent basis (Non-GAAP)

 

570,411

 

548,112

 

22,299

 

$

(17,411

)

$

39,710

 

 

 

 

 

2.92

%

2.98

%

(0.06

)%

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent adjustment

 

38,755

 

53,800

 

(15,045

)

 

 

 

 

 

 

 

 

 

 

Net interest margin/ income

 

 

 

 

 

 

 

 

 

3.22

%

2.75

%

0.47

%

 

non-taxable equivalent basis (GAAP)

$

531,656

$

494,312

$

37,344

 

 

 

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

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

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

Popular, Inc.

Financial Supplement to First Quarter 2023 Earnings Release

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

 

[THIS PAGE INTENTIONALLY LEFT BLANK]

 

Popular, Inc.

 

 

 

 

 

Financial Supplement to First Quarter 2023 Earnings Release

 

Table G - Mortgage Banking Activities and Other Service Fees

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Mortgage Banking Activities

 

 

 

 

 

 

Quarters ended

Variance

(In thousands)

31-Mar-23

 

31-Dec-22

 

31-Mar-22

 

Q1 2023

vs.Q4 2022

 

Q1 2023

vs.Q1 2022

 

Mortgage servicing fees, net of fair value adjustments:

 

 

 

 

 

Mortgage servicing fees

$8,689

 

$8,852

 

$9,323

 

$(163

)

$(634

)

Mortgage servicing rights fair value adjustments

(1,376

)

(2,610

)

1,088

 

1,234

 

(2,464

)

Total mortgage servicing fees, net of fair value adjustments

7,313

 

6,242

 

10,411

 

1,071

 

(3,098

)

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

263

 

123

 

(1,534

)

140

 

1,797

 

Trading account (loss) profit:

 

 

 

 

 

Unrealized (loss) gains on outstanding derivative positions

(131

)

-

 

2

 

(131

)

(133

)

Realized gains on closed derivative positions

56

 

310

 

4,135

 

(254

)

(4,079

)

Total trading account (loss) profit

(75

)

310

 

4,137

 

(385

)

(4,212

)

Losses on repurchased loans, including interest advances

(101

)

(113

)

(149

)

12

 

48

 

Total mortgage banking activities

$7,400

 

$6,562

 

$12,865

 

$838

 

$(5,465

)

 

 

 

 

 

 

 

Other Service Fees

 

 

 

 

 

 

 

Quarters ended

Variance

(In thousands)

 

31-Mar-23

31-Dec-22

31-Mar-22

Q1 2023

vs.Q4 2022

 

Q1 2023

vs.Q1 2022

 

Other service fees:

 

 

 

 

 

 

Debit card fees

 

$13,166

$13,379

$11,779

$(213

)

$1,387

 

Insurance fees

 

13,873

14,587

14,156

(714

)

(283

)

Credit card fees

 

40,498

39,777

33,642

721

 

6,856

 

Sale and administration of investment products

 

6,558

5,793

5,791

765

 

767

 

Trust fees

 

5,775

5,223

5,927

552

 

(152

)

Other fees

 

10,206

10,263

5,839

(57

)

4,367

 

Total other service fees

 

$90,076

$89,022

$77,134

$1,054

 

$12,942

 

Popular, Inc.

 

 

 

 

 

Financial Supplement to First Quarter 2023 Earnings Release

Table H - Loans and Deposits

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Loans - Ending Balances

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

31-Mar-23

31-Dec-22

31-Mar-22

Q1 2023

vs.Q4 2022

 

Q1 2023

vs.Q1 2022

 

Loans held-in-portfolio:

 

 

 

 

Commercial

$16,005,261

$15,739,132

$14,028,246

$266,129

 

$1,977,015

 

Construction

698,996

757,984

744,783

(58,988

)

(45,787

)

Leasing

1,614,344

1,585,739

1,426,122

28,605

 

188,222

 

Mortgage

7,405,907

7,397,471

7,326,346

8,436

 

79,561

 

Auto

3,517,940

3,512,530

3,430,162

5,410

 

87,778

 

Consumer

3,095,925

3,084,913

2,632,531

11,012

 

463,394

 

Total loans held-in-portfolio

$32,338,373

$32,077,769

$29,588,190

$260,604

 

$2,750,183

 

Loans held-for-sale:

 

 

 

 

 

Mortgage

$11,181

$5,381

$55,150

$5,800

 

$(43,969

)

Total loans held-for-sale

$11,181

$5,381

$55,150

$5,800

 

$(43,969

)

Total loans

$32,349,554

$32,083,150

$29,643,340

$266,404

 

$2,706,214

 

 

 

 

 

 

 

Deposits - Ending Balances

 

 

 

 

 

 

 

 

Variance

(In thousands)

31-Mar-23

31-Dec-22

31-Mar-22

Q1 2023

vs. Q4 2022

 

Q1 2023

vs.Q1 2022

 

Demand deposits [1]

$26,191,672

$26,382,605

$25,684,715

$(190,933

)

$506,957

 

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

26,622,020

27,265,156

29,318,333

(643,136

)

(2,696,313

)

Savings, NOW and money market deposits (brokered)

734,069

798,064

768,558

(63,995

)

(34,489

)

Time deposits (non-brokered)

6,891,051

6,442,886

6,964,848

448,165

 

(73,797

)

Time deposits (brokered CDs)

515,076

338,516

125,841

176,560

 

389,235

 

Total deposits

$60,953,888

$61,227,227

$62,862,295

$(273,339

)

$(1,908,407

)

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

 

 

 

 

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

Financial Supplement to First Quarter 2023 Earnings Release

 

 

 

 

 

 

 

 

 

 

Table I - Liquidity Sources, Deposits and Borrowings

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liquidity Sources

31-Mar-23

31-Dec-22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

BPPR

Popular U.S.

 

Total

BPPR

 

Popular U.S.

Total

Unpledged securities and unused funding sources:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market (excess funds at the Federal Reserve Bank)

$

5,181,531

 

$

909,613

 

 

$

6,091,144

 

$

5,240,100

 

 

$

367,966

 

$

5,608,066

 

Unpledged securities

 

7,690,887

 

 

273,980

 

 

 

7,694,867

 

 

7,494,189

 

 

 

326,599

 

 

7,820,788

 

FHLB borrowing capacity

 

1,623,246

 

 

1,127,316

 

 

 

2,750,562

 

 

1,389,579

 

 

 

722,005

 

 

2,111,584

 

Discount window of the Federal Reserve Bank borrowing capacity

 

1,132,411

 

 

331,753

 

 

 

1,464,164

 

 

1,090,308

 

 

 

329,385

 

 

1,419,693

 

Total available liquidity

$

15,628,075

 

$

2,642,662

 

 

$

18,270,737

 

$

15,214,176

 

 

$

1,745,955

 

$

16,960,131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Mar-23

 

 

 

 

 

 

 

 

 

 

 

Popular, Inc.

 

 

 

(In thousands)

BPPR

% of Total

 

Popular U.S.

% of Total

 

(Consolidated)

% of Total

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits balances under $250,000 [1]

$

24,823,608

 

 

47

%

 

$

5,979,010

 

 

62

%

 

$

30,802,618

 

 

51

%

Transactional deposits balances over $250,000

 

9,503,850

 

 

18

%

 

 

2,151,732

 

 

22

%

 

 

11,655,582

 

 

19

%

Time deposits balances over $250,000

 

1,869,792

 

 

4

%

 

 

255,322

 

 

3

%

 

 

2,125,114

 

 

3

%

Foreign deposits

 

412,444

 

 

1

%

 

 

 

 

 

-

%

 

 

412,444

 

 

1

 

Collateralized public funds

 

15,712,622

 

 

30

%

 

 

245,508

 

 

3

%

 

 

15,958,130

 

 

26

%

Intercompany deposits

 

134,110

 

 

-

%

 

 

986,943

 

 

10

%

 

 

-

 

 

-

%

Total deposits

$

52,456,426

 

 

100

%

 

$

9,618,515

 

 

100

%

 

$

60,953,888

 

 

100

%

[1] Includes the first $250,000 in balances of transactional and time deposit accounts with balances in excess of $250,000.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Dec-22

 

 

 

 

 

 

 

 

 

 

 

Popular, Inc.

 

 

 

(In thousands)

BPPR

% of Total

 

Popular U.S.

% of Total

 

(Consolidated)

% of Total

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits balances under $250,000 [1]

$

24,505,697

 

 

46

%

 

$

5,231,417

 

 

60

%

 

$

29,737,114

 

 

49

%

Transactional deposits balances over $250,000

 

9,957,877

 

 

19

%

 

 

2,674,841

 

 

31

%

 

 

12,632,718

 

 

21

%

Time deposits balances over $250,000

 

1,920,455

 

 

4

%

 

 

167,067

 

 

2

%

 

 

2,087,522

 

 

3

%

Foreign deposits

 

425,855

 

 

1

%

 

 

-

 

 

-

%

 

 

425,855

 

 

1

%

Collateralized public funds

 

16,233,342

 

 

31

%

 

110,676

 

 

1

%

 

16,344,018

 

 

27

%

Intercompany deposits

 

135,172

 

 

-

%

 

 

482,167

 

 

6

%

 

 

-

 

 

-

%

Total deposits

$

53,178,398

 

 

100

%

 

$

8,666,168

 

 

100

%

 

$

61,227,227

 

 

100

%

[1] Includes the first $250,000 in balances of transactional and time deposit accounts with balances in excess of $250,000.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

31-Mar-23

 

31-Dec-22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All other

 

 

 

 

 

 

 

 

All other

 

 

 

(In thousands)

BPPR

 

Popular U.S.

 

entities

 

Total

 

BPPR

 

Popular U.S.

 

 

entities

 

Total

Assets sold under agreements to repurchase

$

25,158

 

$

98,341

 

$

-

 

$

123,499

 

$

25,496

 

$

123,113

 

 

$

-

 

$

148,609

FHLB borrowings

 

82,292

 

 

305,990

 

 

-

 

 

388,282

 

 

83,292

 

 

670,990

 

 

 

-

 

 

754,282

Federal discount window / bank term funding program (BTFP)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

-

 

 

-

Notes payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured senior debt securities maturing on September 2023

 

-

 

 

-

 

 

299,426

 

 

299,426

 

 

-

 

 

-

 

 

 

299,109

 

 

299,109

Unsecured senior debt securities maturing on March 2028

 

-

 

 

-

 

 

393,093

 

 

393,093

 

 

-

 

 

-

 

 

 

-

 

 

-

Junior subordinated deferrable interest debentures

 

-

 

 

-

 

 

198,326

 

 

198,326

 

 

-

 

 

-

 

 

 

198,319

 

 

198,319

Total borrowings

$

107,450

 

$

404,331

 

$

890,845

 

$

1,402,626

 

$

108,788

 

$

794,103

 

 

$

497,428

 

$

1,400,319

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to First Quarter 2023 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table J - Loan Delinquency -BPPR Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Mar-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

 

$

650

 

 

$

-

 

 

$

185

 

 

$

835

 

 

$

291,971

 

 

$

292,806

 

 

 

$

185

 

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

2,739

 

 

 

1,584

 

 

 

22,856

 

 

 

27,179

 

 

 

2,858,304

 

 

 

2,885,483

 

 

 

 

22,856

 

 

 

-

 

Owner occupied

 

 

21,496

 

 

 

-

 

 

 

37,779

 

 

 

59,275

 

 

 

1,438,228

 

 

 

1,497,503

 

 

 

 

37,779

 

 

 

-

 

Commercial and industrial

 

 

17,934

 

 

 

793

 

 

 

31,847

 

 

 

50,574

 

 

 

3,883,859

 

 

 

3,934,433

 

 

 

 

30,132

 

 

 

1,715

 

Construction

 

 

8,081

 

 

 

-

 

 

 

-

 

 

 

8,081

 

 

 

147,268

 

 

 

155,349

 

 

 

 

-

 

 

 

-

 

Mortgage

 

 

183,187

 

 

 

81,729

 

 

 

515,752

 

 

 

780,668

 

 

 

5,336,016

 

 

 

6,116,684

 

 

 

 

224,075

 

 

 

291,677

 

Leasing

 

 

12,301

 

 

 

2,605

 

 

 

6,103

 

 

 

21,009

 

 

 

1,593,335

 

 

 

1,614,344

 

 

 

 

6,103

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

7,162

 

 

 

5,823

 

 

 

12,061

 

 

 

25,046

 

 

 

1,021,129

 

 

 

1,046,175

 

 

 

 

-

 

 

 

12,061

 

Home equity lines of credit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,865

 

 

 

2,865

 

 

 

 

-

 

 

 

-

 

Personal

 

 

14,131

 

 

 

8,990

 

 

 

17,427

 

 

 

40,548

 

 

 

1,572,370

 

 

 

1,612,918

 

 

 

 

17,412

 

 

 

15

 

Auto

 

 

60,324

 

 

 

12,684

 

 

 

39,516

 

 

 

112,524

 

 

 

3,405,416

 

 

 

3,517,940

 

 

 

 

39,516

 

 

 

-

 

Other

 

 

1,264

 

 

 

49

 

 

 

1,091

 

 

 

2,404

 

 

 

127,608

 

 

 

130,012

 

 

 

 

921

 

 

 

170

 

Total

 

$

329,269

 

 

$

114,257

 

 

$

684,617

 

 

$

1,128,143

 

 

$

21,678,369

 

 

$

22,806,512

 

 

 

$

378,979

 

 

$

305,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Dec-22

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

 

$

425

 

 

$

-

 

 

$

242

 

 

$

667

 

 

$

280,706

 

 

$

281,373

 

 

 

$

242

 

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

941

 

 

 

428

 

 

 

23,662

 

 

 

25,031

 

 

 

2,732,296

 

 

 

2,757,327

 

 

 

 

23,662

 

 

 

-

 

Owner occupied

 

 

729

 

 

 

245

 

 

 

23,990

 

 

 

24,964

 

 

 

1,563,092

 

 

 

1,588,056

 

 

 

 

23,990

 

 

 

-

 

Commercial and industrial

 

 

3,036

 

 

 

941

 

 

 

35,777

 

 

 

39,754

 

 

 

3,756,754

 

 

 

3,796,508

 

 

 

 

34,277

 

 

 

1,500

 

Construction

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

147,041

 

 

 

147,041

 

 

 

 

-

 

 

 

-

 

Mortgage

 

 

222,926

 

 

 

91,881

 

 

 

579,993

 

 

 

894,800

 

 

 

5,215,479

 

 

 

6,110,279

 

 

 

 

242,391

 

 

 

337,602

 

Leasing

 

 

11,983

 

 

 

3,563

 

 

 

5,941

 

 

 

21,487

 

 

 

1,564,252

 

 

 

1,585,739

 

 

 

 

5,941

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

7,106

 

 

 

5,049

 

 

 

11,910

 

 

 

24,065

 

 

 

1,017,766

 

 

 

1,041,831

 

 

 

 

-

 

 

 

11,910

 

Home equity lines of credit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,954

 

 

 

2,954

 

 

 

 

-

 

 

 

-

 

Personal

 

 

13,232

 

 

 

8,752

 

 

 

18,082

 

 

 

40,066

 

 

 

1,545,621

 

 

 

1,585,687

 

 

 

 

18,082

 

 

 

-

 

Auto

 

 

68,868

 

 

 

19,243

 

 

 

40,978

 

 

 

129,089

 

 

 

3,383,441

 

 

 

3,512,530

 

 

 

 

40,978

 

 

 

-

 

Other

 

 

487

 

 

 

87

 

 

 

12,682

 

 

 

13,256

 

 

 

124,324

 

 

 

137,580

 

 

 

 

12,446

 

 

 

236

 

Total

 

$

329,733

 

 

$

130,189

 

 

$

753,257

 

 

$

1,213,179

 

 

$

21,333,726

 

 

$

22,546,905

 

 

 

$

402,009

 

 

$

351,248

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

225

 

 

$

-

 

 

$

(57

)

 

$

168

 

 

$

11,265

 

 

$

11,433

 

 

 

$

(57

)

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

1,798

 

 

 

1,156

 

 

 

(806

)

 

 

2,148

 

 

 

126,008

 

 

 

128,156

 

 

 

 

(806

)

 

 

-

 

Owner occupied

 

 

20,767

 

 

 

(245

)

 

 

13,789

 

 

 

34,311

 

 

 

(124,864

)

 

 

(90,553

)

 

 

 

13,789

 

 

 

-

 

Commercial and industrial

 

 

14,898

 

 

 

(148

)

 

 

(3,930

)

 

 

10,820

 

 

 

127,105

 

 

 

137,925

 

 

 

 

(4,145

)

 

 

215

 

Construction

 

 

8,081

 

 

 

-

 

 

 

-

 

 

 

8,081

 

 

 

227

 

 

 

8,308

 

 

 

 

-

 

 

 

-

 

Mortgage

 

 

(39,739

)

 

 

(10,152

)

 

 

(64,241

)

 

 

(114,132

)

 

 

120,537

 

 

 

6,405

 

 

 

 

(18,316

)

 

 

(45,925

)

Leasing

 

 

318

 

 

 

(958

)

 

 

162

 

 

 

(478

)

 

 

29,083

 

 

 

28,605

 

 

 

 

162

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

56

 

 

 

774

 

 

 

151

 

 

 

981

 

 

 

3,363

 

 

 

4,344

 

 

 

 

-

 

 

 

151

 

Home equity lines of credit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(89

)

 

 

(89

)

 

 

 

-

 

 

 

-

 

Personal

 

 

899

 

 

 

238

 

 

 

(655

)

 

 

482

 

 

 

26,749

 

 

 

27,231

 

 

 

 

(670

)

 

 

15

 

Auto

 

 

(8,544

)

 

 

(6,559

)

 

 

(1,462

)

 

 

(16,565

)

 

 

21,975

 

 

 

5,410

 

 

 

 

(1,462

)

 

 

-

 

Other

 

 

777

 

 

 

(38

)

 

 

(11,591

)

 

 

(10,852

)

 

 

3,284

 

 

 

(7,568

)

 

 

 

(11,525

)

 

 

(66

)

Total

 

$

(464

)

 

$

(15,932

)

 

$

(68,640

)

 

$

(85,036

)

 

$

344,643

 

 

$

259,607

 

 

 

$

(23,030

)

 

$

(45,610

)

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to First Quarter 2023 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Mar-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

 

$

-

 

 

$

-

 

 

$

421

 

 

$

421

 

 

$

2,043,130

 

 

$

2,043,551

 

 

 

$

421

 

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

16,033

 

 

 

-

 

 

 

207

 

 

 

16,240

 

 

 

1,748,952

 

 

 

1,765,192

 

 

 

 

207

 

 

 

-

 

Owner occupied

 

 

18,042

 

 

 

-

 

 

 

5,095

 

 

 

23,137

 

 

 

1,497,947

 

 

 

1,521,084

 

 

 

 

5,095

 

 

 

-

 

Commercial and industrial

 

 

13,779

 

 

 

3

 

 

 

5,570

 

 

 

19,352

 

 

 

2,045,857

 

 

 

2,065,209

 

 

 

 

5,325

 

 

 

245

 

Construction

 

 

7,165

 

 

 

-

 

 

 

-

 

 

 

7,165

 

 

 

536,482

 

 

 

543,647

 

 

 

 

-

 

 

 

-

 

Mortgage

 

 

22,041

 

 

 

1,499

 

 

 

14,719

 

 

 

38,259

 

 

 

1,250,964

 

 

 

1,289,223

 

 

 

 

14,719

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

21

 

 

 

21

 

 

 

 

-

 

 

 

-

 

Home equity lines of credit

 

 

496

 

 

 

70

 

 

 

4,618

 

 

 

5,184

 

 

 

61,838

 

 

 

67,022

 

 

 

 

4,618

 

 

 

-

 

Personal

 

 

1,900

 

 

 

1,259

 

 

 

2,505

 

 

 

5,664

 

 

 

222,487

 

 

 

228,151

 

 

 

 

2,505

 

 

 

-

 

Other

 

 

2

 

 

 

-

 

 

 

514

 

 

 

516

 

 

 

8,245

 

 

 

8,761

 

 

 

 

514

 

 

 

-

 

Total

 

$

79,458

 

 

$

2,831

 

 

$

33,649

 

 

$

115,938

 

 

$

9,415,923

 

 

$

9,531,861

 

 

 

$

33,404

 

 

$

245