Press Release

 
 

Popular, Inc. Announces Fourth Quarter 2022 Financial Results

Company Release - 1/25/2023

  • Net income of $257.1 million in Q4 2022, compared to net income of $422.4 million in Q3 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., while the Q3 2022 results included the benefit of the Evertec Transactions (as defined below) and related accounting adjustments of $226.6 million.
  • Net income of $1.1 billion for the year 2022, compared to net income of $934.9 million for the year 2021.
  • Net interest margin of 3.28% in Q4 2022, compared to 3.32% in Q3 2022; net interest margin on a taxable equivalent basis of 3.64% in Q4 2022, compared to 3.71% in Q3 2022.
  • Credit Quality:
    • Non-performing loans held-in-portfolio (“NPLs”) decreased by $14.0 million from Q3 2022; NPLs to loans ratio remained flat at 1.4%;
    • Net charge-offs (“NCOs”) increased by $13 million from Q3 2022; annualized NCOs at 0.39% of average loans held-in-portfolio vs. 0.24% in Q3 2022;
    • Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.25% vs. 2.23% in Q3 2022; and
    • ACL to NPLs at 163.9% vs. 155.1% in Q3 2022.
  • Common Equity Tier 1 ratio of 16.39%, Common Equity per Share of $56.66 and Tangible Book Value per Share of $44.97 at December 31, 2022.

Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $257.1 million for the quarter ended December 31, 2022, compared to net income of $422.4 million for the quarter ended September 30, 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. The net income for the third quarter was $195.8 million after excluding the impact of the completed Evertec Transactions (as defined below) and related accounting adjustments.

Ignacio Alvarez, President and Chief Executive Officer, said: “We ended 2022 with a solid performance in the fourth quarter helping us achieve record earnings of $1.1 billion for the year. During the quarter, we continued to see broad-based loan growth and strong credit quality metrics, although our net interest income was impacted by higher deposit costs, primarily related to our portfolio of P.R. public deposits.

Our record annual earnings are the product of focusing on long-term customer relationships and sustainable growth strategies. In addition to outstanding earnings, during 2022, we also completed important strategic initiatives such as the acquisition of key customer-facing channels from Evertec and launched a broad-based multi-year, technological and business process transformation across the entire Company. We also returned $631 million to our shareholders through common stock share repurchases and increased our quarterly common stock dividend to $0.55 per share.

During 2023, we will continue to leverage the benefits of the Evertec transaction and will focus on growing and deepening our strong commercial and retail franchise in P.R. as we continue to look for appropriate opportunities in the U.S. market.

While we are aware of the macroeconomic headwinds related to inflation and geopolitical risks, we are confident that given the amount of stimulative support from federal funds, P.R. will continue its growth path, albeit perhaps at a slower pace.

2023 marks our 130th anniversary. During this time, we adapted and transformed ourselves on multiple occasions to address many political, economic and competitive changes that have occurred. We are committed to continuing that transformation by investing in the future of our organization, our people and the communities we serve to meet future challenges and continue to provide value to our shareholders.”

Significant Events

Transformation Initiative:

Popular has launched a significant, multi-year corporate transformation initiative designed to expand its digital capabilities, modernize its technology platform, and implement agile and efficient business processes across the Corporation.

Since completing the Evertec Transactions on July 1, 2022, through December 31, 2022, excluding compensation costs of our employees involved in the initiative, we expensed $24 million toward this effort, primarily in professional fees and technology related expenses. In 2023, we plan an expense of approximately $50 million toward this effort, excluding employee compensation and capitalized costs. We expect the expenses tied to this transformation initiative, which will continue through 2025 to result in an enhanced digital experience for our clients, as well as better technology and more efficient processes for our employees. We expect this effort to contribute to better efficiency and higher earnings, resulting in a targeted sustainable return on tangible common equity of 14% by the end of 2025.

To facilitate the transparency of our progress with these efforts, we have now separated technology, professional fees and transactional activities as standalone expense categories in the statement of operations.

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

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

The securities were reclassified at fair value at the time of the transfer. At the date of the transfer, these securities had pre-tax unrealized losses of $873.0 million recorded in AOCI. This fair value discount is being accreted to interest income and the unrealized loss remaining in AOCI is being amortized, offsetting each other through the remaining life of the securities. There were no realized gains or losses recorded as a result of this transfer.

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

Capital Actions

On December 7, 2022 the Corporation completed the settlement of its previously announced accelerated share repurchase agreement (“ASR Agreement”) for the repurchase of an aggregate $231 million of Popular’s common stock, for which an initial 2,339,241 shares (the “Initial Shares”) were delivered on August 26, 2022. The transaction was accounted for as a treasury stock transaction. As a result of the receipt of the Initial Shares, the Corporation recognized in shareholders’ equity approximately $185 million in treasury stock and $46 million as a reduction of capital surplus. Upon the final settlement of the ASR Agreement, the Corporation received an additional 840,024 shares of common stock and recognized approximately $60 million as treasury stock with a corresponding increase in its capital surplus account. The Corporation repurchased a total of 3,179,265 shares at an average purchase price of $72.66 under the ASR Agreement.

Partial Release of the Deferred tax Asset Valuation Allowance

During the fourth quarter of 2022, the Corporation recorded a partial reversal of the deferred tax asset valuation allowance of the U.S. operations of $68.2 million. As of December 31, 2022 the deferred tax asset ("DTA") for the U.S. operations, mainly related to net operating losses (“NOLs”), was valued at $278 million, net of the corresponding valuation allowance of $423 million. The additional reversal during the fourth quarter was determined based on management’s expectation of the realization of additional amounts of federal and states NOLs over their remining carryover period. The determination was based on the U.S. operations’ sustained profitability during the years ended December 31, 2021 and 2022, together with evidence of stable credit metrics and the length of the expiration of the net operating losses. As of December 31, 2022, the Corporation had approximately $525 million in DTA related to federal NOLs with expiration dates between 2028 and 2033 and approximately $155 million in DTA related to state NOLs with expiration dates between 2031 and 2036.

Earnings Highlights

 

(Unaudited)

Quarters ended

 

Years ended

(Dollars in thousands, except per share information)

31-Dec-22

30-Sep-22

31-Dec-21

 

31-Dec-22

31-Dec-21

Net interest income

$559,566

 

$579,619

$501,283

 

 

$2,167,359

$1,957,590

 

Provision for credit losses (benefit)

49,531

 

39,637

(33,050

)

 

83,030

(193,464

)

Net interest income after provision for credit losses (benefit)

510,035

 

539,982

534,333

 

 

2,084,329

2,151,054

 

Other non-interest income

158,465

 

426,494

164,677

 

 

897,062

642,128

 

Operating expenses

461,708

 

476,095

417,394

 

 

1,746,420

1,549,275

 

Income before income tax

206,792

 

490,381

281,616

 

 

1,234,971

1,243,907

 

Income tax (benefit) expense

(50,347

)

67,986

75,552

 

 

132,330

309,018

 

Net income

$257,139

 

$422,395

$206,064

 

 

$1,102,641

$934,889

 

Net income applicable to common stock

$256,786

 

$422,042

$205,711

 

 

$1,101,229

$933,477

 

Net income per common share-basic

$3.56

 

$5.71

$2.59

 

 

$14.65

$11.49

 

Net income per common share-diluted

$3.56

 

$5.70

$2.58

 

 

$14.63

$11.46

 

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

Net interest income, on a taxable equivalent basis, is presented with its different components in Table D and E for the quarter and year ended December 31, 2022 and comparable periods. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

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

Net interest income for the quarter ended December 31, 2022 was $559.6 million, compared to $579.6 million in the previous quarter, a decrease of $20.0 million. Net interest income on a taxable equivalent basis for the fourth quarter of 2022 was $621.5 million compared to $646.6 million in the previous quarter, a decrease of $25.1 million.

Net interest margin for the quarter was 3.28% compared to 3.32% in the previous quarter. On a taxable equivalent basis, net interest margin for the fourth quarter of 2022 was 3.64%, compared to 3.71% in the prior quarter. The decrease in net interest margin is mainly related to a higher interest expense on deposits, partially offset by higher volume of loans and change to the earning asset mix, with increases in loan balances and reductions to lower yielding money markets, investments and trading securities. The main variances in net interest income on a taxable equivalent basis were:

  • higher interest expense on deposits by $78.4 million due to the increase in rates, mainly from Puerto Rico government deposits.

partially offset by:

  • higher interest income from money market deposits by $13.9 million, resulting from higher yield of the portfolio by 166 basis points driven mainly by the full quarter’s effect of increases in the interest on excess funds at the Federal Reserve at the end of July and September, fully impacting the fourth quarter, and further increases at the beginning of November and mid-December, partially offset by lower volume by $1.5 billion mainly related to a decrease in deposits and a higher loan volume; and
  • quarter-over-quarter, the Corporation’s loan portfolio’s average balance increased by $980 million reflecting increases in the U.S. and P.R. and across all major loan segments except construction loans. Loan origination in a higher interest rate environment and the repricing of adjustable-rate loans resulted in a higher yield on loans by 31 basis points. The categories with the highest impact were commercial loans with an increase of $29.5 million in interest income or 49 basis points and consumer loans that increased $8.1 million or 52 basis points

Net interest income for the Banco Popular de Puerto Rico (“BPPR”) segment amounted to $472.4 million for the fourth quarter of 2022, compared to $488.1 million in the third quarter of 2022. Net interest margin remained flat at 3.26% compared to 3.27% in the third quarter of 2022. The decrease in net interest income of $15.7 million was mostly driven by a higher cost of deposits, partially offset by the improvement in the yield on earning assets and the change to the asset mix. The yield on earning assets increased 45 basis points driven by the repricing of money market investments and adjustable-rate loans and a higher volume of average loans by $671 million. Earning assets decreased by $1.6 billion mainly driven by the decrease of P.R. public sector and commercial interest-bearing deposits. The cost of interest-bearing deposits increased 67 basis points to 1.13% from 0.46% the previous quarter. The increase in the cost of deposits was mainly impacted by the repricing of public funds and corporate clients. Total deposit cost for the quarter increased by 49 basis points from 0.34% to 0.83%.

Net interest income for Popular Bank (“PB”) was $94.2 million for the quarter ended December 31, 2022, compared to $98.9 million during the previous quarter, a decrease of $4.7 million. Net interest margin decreased 29 basis points in the quarter to 3.55% compared to 3.84% in the third quarter of the year. The decrease in net interest margin was mostly driven by a higher cost of deposits, partially offset by 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 1.71% compared to 0.85%, or an increase of 86 basis points while total deposit cost was 1.34% compared to 0.67% in the previous quarter.

Non-interest income

Non-interest income amounted to $158.5 million for the fourth quarter of 2022, a decrease of $268.0 million compared to $426.5 million in the previous quarter. The results for the third quarter of 2022 included $257.7 million from the gain on the sale of the Corporation’s shares from Evertec, Inc. (“Evertec”), including those sold in connection BPPR’s acquisition of certain assets from Evertec Group, LLC, a wholly owned subsidiary of Evertec, to service certain BPPR channels (the “Evertec Business Acquisition”), the subsequent the sale of BPPR’s remaining 7,065,634 shares of common stock of Evertec, Inc. (together with the Evertec Business Acquisition, the “Evertec Transactions”) and related accounting adjustments. Other factors that contributed to the variance in non-interest income were:

  • Lower service charges on deposit accounts by $5.3 million due to lower overdraft related charges and lower cash management service charges from commercial clients due to higher earnings credits on transactional accounts;
  • lower mortgage banking activities by $2.9 million due to a negative variance in the valuation of mortgage servicing rights by $2.1 million and a negative variance of $1.0 million in gains from loans securitization activity, net of valuation adjustments on loans held-for-sale;
  • an unfavorable variance in the adjustments for indemnity reserves on loans previously sold of $1.9 million;
  • a favorable adjustment recorded in the third quarter of $9.2 million in the fair value of the contingent consideration related to purchase price adjustments for the Popular Equipment Finance (“PEF”) acquisition of the K2 Capital Group LLC business in 2021 (‘’K2 Acquisition’’), after the Corporation updated its estimates related to the realizability of the earnings targets for the contingent payment; and
  • lower earnings from the portfolio of equity method investments by $2.2 million, excluding Evertec;

partially offset by:

  • a gain of $8.2 million from the sale of an investment which had been previously written off;
  • higher other service fees by $2.6 million mainly due to higher credit and debit card fees related to interchange income and seasonal activity, partially offset by lower insurance fees, including contingent payments of approximately $500,000 received during the third quarter; and
  • a favorable variance of $1.8 million on the fair value adjustments to the portfolio of equity securities related to deferred benefit plans, which have an offsetting effect recorded as higher personnel costs;

Refer to Table B for further details.

Operating expenses

Operating expenses for the fourth quarter of 2022 totaled $461.7 million, a decrease of $14.4 million when compared to the third quarter of 2022. The variance in operating expenses was driven primarily by:

  • lower personnel costs by $3.7 million mainly due to a decrease in health insurance costs by $4.7 million, lower profit-sharing accrual and lower commissions, incentives and other bonuses by $2.6 million partially offset by higher salaries and other personnel costs by $3.6 million;
  • lower credit and debit card processing and transactional expenses by $3.3 million mainly due to transaction volume rebates and incentives recognized during the quarter;
  • higher other real estate owned (OREO) benefit by $6.7 million mainly due to higher gain on sale of mortgage and commercial properties and higher expense claim reimbursement from federal government agency programs;
  • lower other operating expenses by $12.0 million, mainly due to the effect of a previous quarter expense related to the Evertec Transactions of $17.3 million, partially offset by $2.0 million of higher sundry loss reserves and
  • a goodwill impairment charge of $9.0 million recorded during the previous quarter due to a decrease in PEF’s projected earnings considered as part of the Corporation’s annual goodwill impairment analysis.

partially offset by:

  • higher equipment expenses by $1.1 million due to higher maintenance and repair costs of equipment;
  • higher professional fees by $1.5 million mainly due to higher advisory expense related to corporate initiatives;
  • higher technology and software expenses by $9.9 million mainly due to various ongoing technology projects;
  • higher other processing and transactional services by $3.7 million mainly due to higher incentives received during the prior quarter related to the ATH Network Participation Agreement entered into in connection with the Evertec Business Acquisition; and
  • higher business promotion expenses by $3.8 million mainly due to seasonal projects and sponsorships during the quarter.

Full-time equivalent employees were 8,813 as of December 31, 2022 compared to 8,747 as of September 30, 2022.

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

Income Taxes

For the quarter ended December 31, 2022, the Corporation recorded an income tax benefit of $50.3 million compared to an income tax expense of $68.0 million for the previous quarter. The favorable 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 $68.2 million and lower income before tax, higher benefit from tax-exempt income, including 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 the same concept. The effective tax rate (“ETR”) for the fourth quarter was of (24)%. Excluding the impact of the partial release of the valuation allowance and true up adjustment, the ETR for the fourth quarter was of 12%, compared to 14% for the previous quarter. 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 18% to 22%.

Credit Quality

During the fourth quarter of 2022, the Corporation continued to reflect stable credit quality trends with low levels of NCOs and decreasing NPLs. We continue to closely monitor changes in the macroeconomic environment and on borrower performance, given inflationary pressures and geopolitical uncertainty. However, management believes that the improvement over recent years in the risk profile of the Corporation’s loan portfolios positions Popular to operate successfully under the current environment.

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

  • At December 31, 2022, total non-performing loans held-in-portfolio decreased by $14.0 million from September 30, 2022. BPPR’s NPLs decreased by $8.2 million, mostly driven by lower mortgage and commercial NPLs by $10.4 million and $5.3 million, respectively, in part offset by higher auto loans NPLs by $6.5 million. PB’s NPLs decreased by $5.8 million quarter-over-quarter, mostly due to a $8.7 million charge-off on a previously reserved commercial borrower in the healthcare industry that was placed in non-accrual status the previous quarter. At December 31, 2022, the ratio of NPLs to total loans held-in-portfolio remained flat at 1.4%, compared to the third quarter of 2022.
  • Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $2.7 million quarter-over-quarter. In BPPR, total inflows increased by $5.0 million, mostly driven by higher mortgage inflows of $5.1 million. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB decreased by $7.6 million quarter-over-quarter, mainly driven by the abovementioned commercial healthcare loan placed in non-accrual in the previous quarter.
  • NCOs amounted to $31.2 million, an increase of $13.0 million when compared to the third quarter of 2022. BPPR’s NCOs remained stable, increasing by $1.5 million quarter-over-quarter, mainly driven by higher consumer NCOs by $5.5 million, mostly due to higher auto NCOs, in part offset by lower mortgage NCOs by $4.0 million. PB’s NCOs increased by $11.5 million quarter-over-quarter, mainly due to the charge-off on the abovementioned healthcare loan. During the fourth quarter of 2022, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.39%, compared to 0.24% in the third quarter of 2022. Refer to Table M for further information on net charge-offs and related ratios.
  • At December 31, 2022, the ACL increased by $17.2 million, or 2.5%, from the third quarter of 2022 to $720.3 million. The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario.
  • The baseline scenario assumes a 2023 annualized GDP growth for Puerto Rico and the United States of 1.3% and 0.7%, respectively, compared to 2.2% and 1.5% in the previous quarter. For 2022, annualized expected growth was 2.6% and 1.8% for Puerto Rico and United States, respectively. The reduction in 2023 is due to the expected slowdown in the economy as a result of tight monetary policy, weaker job growth and persistent inflation.
  • The 2023 average unemployment rate remained largely consistent quarter-over-quarter forecasted at 7.8% and 4.0% for Puerto Rico and United States, respectively, compared to 7.8% and 3.9% respectively, in the previous forecast. In 2023, weaker job growth due to the expected slowdown in the economy will contribute to the increase in unemployment rate from 2022 average levels of 6.4% for Puerto Rico and 3.7% for the United States.
  • In BPPR, the ACL increased by $24.6 million, mostly driven by changes in the economic scenario, higher loan volumes and changes in credit quality. The ACL for the PB segment decreased by $7.4 million quarter-over-quarter, mainly driven by an $8.7 million charge-off on the previously mentioned commercial healthcare NPL. The Corporation’s ratio of the allowance for credit losses to loans held-in-portfolio was 2.25% in the fourth quarter of 2022, compared to 2.23% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 163.9%, compared to 155.1% in the previous quarter.
  • The provision for credit losses for the loan portfolios for the fourth quarter of 2022 was an expense of $48.3 million, compared to an expense of $39.5 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 $44.4 million, compared to an expense of $28.7 million in the previous quarter, while the provision for the PB segment was an expense of $3.9 million, compared to an expense of $10.8 million in the previous quarter.
  • The provision for unfunded commitments for the third quarter of 2022 was an expense of $1.5 million, compared to an expense of $0.4 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $0.3 million, flat quarter-over-quarter. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations.

Non-Performing Assets

 

 

 

 

 

(Unaudited)

 

 

 

 

 

(In thousands)

31-Dec-22

 

30-Sep-22

 

31-Dec-21

Non-performing loans held-in-portfolio

$439,441

 

 

$453,419

 

 

$547,877

 

Other real estate owned (“OREO”)

89,126

 

 

93,239

 

 

85,077

 

Total non-performing assets

$528,567

 

 

$546,658

 

 

$632,954

 

Net charge-offs (recoveries) for the quarter

$31,200

 

 

$18,232

 

 

$(7,881

)

 

 

 

 

 

 

 

Ratios:

 

 

 

 

 

Loans held-in-portfolio

$32,077,769

 

 

$31,523,188

 

 

$29,240,557

 

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

1.37

%

 

1.44

%

 

1.87

%

Allowance for credit losses to loans held-in-portfolio

2.25

 

 

2.23

 

 

2.38

 

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

163.91

 

 

155.07

 

 

126.92

 

Refer to Table K for additional information.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Credit Losses (Benefit) - Loan Portfolios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Quarters ended

 

Years ended

(In thousands)

 

31-Dec-22

 

30-Sep-22

 

31-Dec-21

 

31-Dec-22

31-Dec-21

Provision for credit losses (benefit) - loan portfolios:

 

 

 

 

 

 

 

 

 

BPPR

 

$44,383

 

$28,694

 

$(30,562

)

 

$69,544

$(129,018

)

Popular U.S.

 

3,949

 

10,825

 

(859

)

 

13,763

(54,327

)

Total provision for credit losses (benefit) - loan portfolios

 

$48,332

 

$39,519

 

$(31,421

)

 

$83,307

$(183,345

)

Credit Quality by Segment

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

(In thousands)

 

Quarters ended

 

BPPR

 

31-Dec-22

 

30-Sep-22

 

31-Dec-21

 

Provision for credit losses (benefit) - loan portfolios

 

$44,383

 

 

$28,694

 

 

$(30,562

)

 

Net charge-offs (recoveries)

 

19,846

 

 

18,396

 

 

(7,615

)

 

Total non-performing loans held-in-portfolio

402,009

 

 

410,215

 

 

514,289

 

 

Allowance / loans held-in-portfolio

2.73

%

 

2.65

%

 

2.85

%

 

Allowance / non-performing loans held-in-portfolio

153.12

%

 

144.05

%

 

115.53

%

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

Popular U.S.

 

31-Dec-22

 

30-Sep-22

 

31-Dec-21

 

Provision for credit losses (benefit) - loan portfolios

 

$3,949

 

 

$10,825

 

 

$(859

)

 

Net charge-offs (recoveries)

 

11,354

 

 

(164

)

 

(266

)

 

Total non-performing loans held-in-portfolio

 

37,432

 

 

43,204

 

 

33,588

 

 

Allowance / loans held-in-portfolio

1.10

%

 

1.21

%

 

1.21

%

 

Allowance / non-performing loans held-in-portfolio

279.86

%

 

259.61

%

 

301.31

%

 

Financial Condition Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

(In thousands)

31-Dec-22

 

30-Sep-22

 

31-Dec-21

Cash and money market investments

$6,084,096

 

$5,992,360

 

$17,965,152

Investment securities

26,553,317

 

30,434,052

 

25,267,418

Loans

32,077,769

 

31,523,188

 

29,240,557

Total assets

67,637,917

 

70,729,675

 

75,097,899

Deposits

61,227,227

 

64,819,327

 

67,005,088

Borrowings

1,400,319

 

1,300,984

 

1,155,166

Total liabilities

63,544,492

 

67,054,837

 

69,128,502

Stockholders’ equity

4,093,425

 

3,674,838

 

5,969,397

Total assets amounted to $67.6 billion at December 31, 2022, a decrease of $3.1 billion from the third quarter of 2022, driven by:

  • A decrease in debt securities of $3.9 billion due to maturities and paydowns, partially offset by purchases and a favorable variance of $193.4 million in net unrealized losses in the portfolio of available-for-sale securities.

partially offset by:

  • an increase in loans held-in-portfolio of $0.6 billion across all loan categories, except construction loans. The increase was mainly due to commercial loan growth at both BPPR and PB and an increase in mortgage and consumer loans at BPPR, mainly in personal loans and credit cards.

Total liabilities decreased by $3.5 billion from the third quarter of 2022, driven by:

  • a decrease of $3.6 billion in deposits, mainly in Puerto Rico public sector deposits by $2.2 billion, and non-public deposits by $1.4 billion mainly from commercial interest-bearing accounts in Puerto Rico;

partially offset by:

  • an increase in borrowings of $115.0 million, mainly due to advances from the FHLB at PB.

Stockholders' equity increased by $418.6 million from the third quarter of 2022, principally due to net income for the quarter of $257.1 million and a favorable variance of $193.4 million in net unrealized losses in the portfolio of available-for-sale securities, 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 16.39%, $56.66 and $44.97, respectively, at December 31, 2022, compared to 16.04%, $50.26 and $38.69 at September 30, 2022. Refer to Table A for capital ratios.

Refer to Table C for the Statements of Financial Condition.

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 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. The Corporation’s ability to successfully transition and integrate the assets acquired as part of the Evertec Business Acquisition, related operations, employees and third party contractors; unexpected costs, including, without limitation, costs due to exposure to any unrecorded liabilities or issues not identified during due diligence investigation of the Evertec Business Acquisition or that are not subject to indemnification or reimbursement by Evertec; operational risks that may affect Popular and other risks arising from the acquisition of the acquired assets or by adverse effects on relationships with customers, employees and service providers and business and other risks arising from the extension of Popular’s current commercial agreements with Evertec may also cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. 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, 2021, in our Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, and in our Form 10-K for the year ended December 31, 2022 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

About Popular, Inc.

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

Conference Call

Popular will hold a conference call to discuss its financial results today Wednesday, January 25, 2023 at 10:00 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-844-200-6205 (Toll Free) or 1-646-904-5544 (Local). The dial-in access code is 922986.

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 Friday, February 24, 2023. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 431712.

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

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

 

Table A - Selected Ratios and Other Information

 

Table B - Consolidated Statement of Operations

 

Table C - Consolidated Statement of Financial Condition

 

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

 

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

 

Table F - Mortgage Banking Activities and Other Service Fees

 

Table G - Loans and Deposits

 

Table H - Loan Delinquency - BPPR OPERATIONS

 

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

 

Table J - Loan Delinquency - CONSOLIDATED

 

Table K - Non-Performing Assets

 

Table L - Activity in Non-Performing Loans

 

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

 

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

 

Table O - Allowance for Credit Losses - Loan Portfolios - BPPR OPERATIONS

 

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

 

Table Q - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to Fourth Quarter 2022 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

 

 

 

 

 

Quarters ended

Years ended

 

31-Dec-22

30-Sep-22

31-Dec-21

31-Dec-22

31-Dec-21

Basic EPS

$3.56

 

$5.71

 

$2.59

 

$14.65

 

$11.49

 

Diluted EPS

$3.56

 

$5.70

 

$2.58

 

$14.63

 

$11.46

 

Average common shares outstanding

72,101,177

 

73,955,184

 

79,477,823

 

75,147,263

 

81,263,027

 

Average common shares outstanding - assuming dilution

72,192,680

 

74,057,332

 

79,652,836

 

75,274,003

 

81,420,154

 

Common shares outstanding at end of period

71,853,720

 

72,673,344

 

79,851,169

 

71,853,720

 

79,851,169

 

Market value per common share

$66.32

 

$72.06

 

$82.04

 

$66.32

 

$82.04

 

Market capitalization - (In millions)

$4,765

 

$5,237

 

$6,551

 

$4,765

 

$6,551

 

Return on average assets

1.46

%

2.31

%

1.09

%

1.52

%

1.31

%

Return on average common equity

16.59

%

27.72

%

13.74

%

18.39

%

16.22

%

Net interest margin (non-taxable equivalent basis)

3.28

%

3.32

%

2.78

%

3.11

%

2.88

%

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

3.64

%

3.71

%

3.02

%

3.46

%

3.19

%

Common equity per share

$56.66

 

$50.26

 

$74.48

 

$56.66

 

$74.48

 

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

$44.97

 

$38.69

 

$65.26

 

$44.97

 

$65.26

 

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

4.84

%

4.02

%

7.01

%

4.84

%

7.01

%

Return on average tangible common equity [1]

19.23

%

31.86

%

15.66

%

21.13

%

18.47

%

Tier 1 capital

16.45

%

16.10

%

17.49

%

16.45

%

17.49

%

Total capital

18.26

%

17.92

%

19.35

%

18.26

%

19.35

%

Tier 1 leverage

8.15

%

7.65

%

7.41

%

8.15

%

7.41

%

Common Equity Tier 1 capital

16.39

%

16.04

%

17.42

%

16.39

%

17.42

%

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

POPULAR, INC.

Financial Supplement to Fourth Quarter 2022 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

 

 

Quarters ended

Variance

Quarter ended

Variance

Years ended

 

 

 

 

Q4 2022

 

Q4 2022

 

 

(In thousands, except per share information)

31-Dec-22

30-Sep-22

vs. Q3 2022

31-Dec-21

vs. Q4 2021

31-Dec-22

31-Dec-21

Interest income:

 

 

 

 

 

 

 

 

Loans

$522,042

 

$481,088

 

$40,954

 

$444,101

 

$77,941

 

$1,876,166

 

$1,747,827

 

 

Money market investments

50,908

 

36,966

 

13,942

 

6,847

 

44,061

 

118,080

 

21,147

 

 

Investment securities

140,244

 

133,181

 

7,063

 

88,315

 

51,929

 

471,665

 

353,663

 

 

Total interest income

713,194

 

651,235

 

61,959

 

539,263

 

173,931

 

2,465,911

 

2,122,637

 

Interest expense:

 

 

 

 

 

 

 

 

Deposits

139,338

 

60,897

 

78,441

 

26,331

 

113,007

 

252,845

 

111,621

 

 

Short-term borrowings

4,488

 

921

 

3,567

 

60

 

4,428

 

5,737

 

319

 

 

Long-term debt

9,802

 

9,798

 

4

 

11,589

 

(1,787

)

39,970

 

53,107

 

 

Total interest expense

153,628

 

71,616

 

82,012

 

37,980

 

115,648

 

298,552

 

165,047

 

Net interest income

559,566

 

579,619

 

(20,053

)

501,283

 

58,283

 

2,167,359

 

1,957,590

 

Provision for credit losses (benefit)

49,531

 

39,637

 

9,894

 

(33,050

)

82,581

 

83,030

 

(193,464

)

Net interest income after provision for credit losses (benefit)

510,035

 

539,982

 

(29,947

)

534,333

 

(24,298

)

2,084,329

 

2,151,054

 

Service charges on deposit accounts

34,682

 

40,006

 

(5,324

)

41,613

 

(6,931

)

157,210

 

162,698

 

Other service fees

89,022

 

86,402

 

2,620

 

83,793

 

5,229

 

334,009

 

311,248

 

Mortgage banking activities

6,562

 

9,448

 

(2,886

)

17,035

 

(10,473

)

42,450

 

50,133

 

Net gain on sale of debt securities

-

 

-

 

-

 

-

 

-

 

-

 

23

 

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

317

 

(1,448

)

1,765

 

(1,454

)

1,771

 

(7,334

)

131

 

Net gain (loss) on trading account debt securities

162

 

(274

)

436

 

(355

)

517

 

(784

)

(389

)

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

-

 

-

 

-

 

-

 

-

 

-

 

(73

)

Adjustments to indemnity reserves on loans sold

(221

)

1,715

 

(1,936

)

1,398

 

(1,619

)

919

 

4,406

 

Other operating income

27,941

 

290,645

 

(262,704

)

22,647

 

5,294

 

370,592

 

113,951

 

 

Total non-interest income

158,465

 

426,494

 

(268,029

)

164,677

 

(6,212

)

897,062

 

642,128

 

Operating expenses:

 

 

 

 

 

 

 

Personnel costs

 

 

 

 

 

 

 

 

Salaries

116,503

 

115,887

 

616

 

96,830

 

19,673

 

432,910

 

371,644

 

 

Commissions, incentives and other bonuses

39,570

 

42,209

 

(2,639

)

34,853

 

4,717

 

155,889

 

142,212

 

 

Pension, postretirement and medical insurance

12,452

 

17,120

 

(4,668

)

13,971

 

(1,519

)

56,085

 

52,077

 

 

Other personnel costs, including payroll taxes

21,612

 

18,627

 

2,985

 

14,818

 

6,794

 

74,880

 

65,869

 

 

Total personnel costs

190,137

 

193,843

 

(3,706

)

160,472

 

29,665

 

719,764

 

631,802

 

Net occupancy expenses

27,812

 

27,420

 

392

 

26,755

 

1,057

 

106,169

 

102,226

 

Equipment expenses

9,828

 

8,735

 

1,093

 

9,656

 

172

 

35,626

 

32,919

 

Other taxes

16,142

 

15,966

 

176

 

15,160

 

982

 

63,603

 

56,783

 

Professional fees

49,159

 

47,662

 

1,497

 

32,607

 

16,552

 

172,043

 

126,721

 

Technology and software expenses

78,264

 

68,341

 

9,923

 

70,916

 

7,348

 

291,902

 

277,979

 

Processing and transactional services

 

 

 

 

 

 

 

 

Credit and debit cards

10,278

 

13,531

 

(3,253

)

7,578

 

2,700

 

45,455

 

40,383

 

 

Other processing and transactional services

22,509

 

18,837

 

3,672

 

21,370

 

1,139

 

81,690

 

80,984

 

 

Total processing and transactional services

32,787

 

32,368

 

419

 

28,948

 

3,839

 

127,145

 

121,367

 

Communications

3,857

 

3,858

 

(1

)

3,559

 

298

 

14,885

 

14,029

 

Business promotion

 

 

 

 

 

 

 

 

Rewards and customer loyal programs

13,538

 

14,344

 

(806

)

11,752

 

1,786

 

51,832

 

38,919

 

 

Other business promotion

14,596

 

10,004

 

4,592

 

14,081

 

515

 

37,086

 

34,062

 

 

Total business promotion

28,134

 

24,348

 

3,786

 

25,833

 

2,301

 

88,918

 

72,981

 

FDIC deposit insurance

6,342

 

6,610

 

(268

)

6,688

 

(346

)

26,787

 

25,579

 

Other real estate owned (OREO) income

(9,180

)

(2,444

)

(6,736

)

(3,860

)

(5,320

)

(22,143

)

(14,414

)

Other operating expenses

 

 

 

 

 

 

 

 

Operational losses

9,018

 

7,145

 

1,873

 

16,820

 

(7,802

)

32,049

 

38,391

 

 

All other

18,614

 

32,448

 

(13,834

)

17,795

 

819

 

77,397

 

53,778

 

 

Total other operating expenses

27,632

 

39,593

 

(11,961

)

34,615

 

(6,983

)

109,446

 

92,169

 

Amortization of intangibles

794

 

795

 

(1

)

6,045

 

(5,251

)

3,275

 

9,134

 

Goodwill impairment charge

-

 

9,000

 

(9,000

)

-

 

-

 

9,000

 

-

 

 

Total operating expenses

461,708

 

476,095

 

(14,387

)

417,394

 

44,314

 

1,746,420

 

1,549,275

 

Income before income tax

206,792

 

490,381

 

(283,589

)

281,616

 

(74,824

)

1,234,971

 

1,243,907

 

Income tax (benefit) expense

(50,347

)

67,986

 

(118,333

)

75,552

 

(125,899

)

132,330

 

309,018

 

Net income

$257,139

 

$422,395

 

$(165,256

)

$206,064

 

$51,075

 

$1,102,641

 

$934,889

 

Net income applicable to common stock

$256,786

 

$422,042

 

$(165,256

)

$205,711

 

$51,075

 

$1,101,229

 

$933,477

 

Net income per common share - basic

$3.56

 

$5.71

 

$(2.15

)

$2.59

 

$0.97

 

$14.65

 

$11.49

 

Net income per common share - diluted

$3.56

 

$5.70

 

$(2.14

)

$2.58

 

$0.98

 

$14.63

 

$11.46

 

Dividends Declared per Common Share

$0.55

 

$0.55

 

$-

 

$0.45

 

$0.10

 

$2.20

 

$1.75

 

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

 

 

 

 

 

 

Variance

 

 

 

 

 

 

Q4 2022 vs.

(In thousands)

31-Dec-22

30-Sep-22

31-Dec-21

Q3 2022

Assets:

 

 

 

 

Cash and due from banks

$469,501

 

$2,017,312

 

$428,433

 

$(1,547,811

)

Money market investments

5,614,595

 

3,975,048

 

17,536,719

 

1,639,547

 

Trading account debt securities, at fair value

27,723

 

30,271

 

29,711

 

(2,548

)

Debt securities available-for-sale, at fair value

17,804,374

 

28,264,148

 

24,968,269

 

(10,459,774

)

Debt securities held-to-maturity, at amortized cost

8,525,366

 

1,953,710

 

79,461

 

6,571,656

 

 

 

Less: Allowance for credit losses

6,911

 

7,210

 

8,096

 

(299

)

 

 

Total debt securities held-to-maturity, net

8,518,455

 

1,946,500

 

71,365

 

6,571,955

 

Equity securities

195,854

 

185,923

 

189,977

 

9,931

 

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

5,381

 

8,065

 

59,168

 

(2,684

)

Loans held-in-portfolio

32,372,925

 

31,805,921

 

29,506,225

 

567,004

 

 

 

Less: Unearned income

295,156

 

282,733

 

265,668

 

12,423

 

 

 

Allowance for credit losses

720,302

 

703,096

 

695,366

 

17,206

 

 

 

Total loans held-in-portfolio, net

31,357,467

 

30,820,092

 

28,545,191

 

537,375

 

Premises and equipment, net

498,711

 

492,685

 

494,240

 

6,026

 

Other real estate

89,126

 

93,239

 

85,077

 

(4,113

)

Accrued income receivable

240,195

 

224,307

 

203,096

 

15,888

 

Mortgage servicing rights, at fair value

128,350

 

130,541

 

121,570

 

(2,191

)

Other assets

1,847,813

 

1,700,378

 

1,628,571

 

147,435

 

Goodwill

827,428

 

827,428

 

720,293

 

-

 

Other intangible assets

12,944

 

13,738

 

16,219

 

(794

)

Total assets

$67,637,917

 

$70,729,675

 

$75,097,899

 

$(3,091,758

)

Liabilities and Stockholders’ Equity:

 

 

 

 

Liabilities:

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest bearing

$15,960,557

 

$17,605,339

 

$15,684,482

 

$(1,644,782

)

 

 

Interest bearing

45,266,670

 

47,213,988

 

51,320,606

 

(1,947,318

)

 

 

Total deposits

61,227,227

 

64,819,327

 

67,005,088

 

(3,592,100

)

Assets sold under agreements to repurchase

148,609

 

162,450

 

91,603

 

(13,841

)

Other short-term borrowings

365,000

 

250,000

 

75,000

 

115,000

 

Notes payable

886,710

 

888,534

 

988,563

 

(1,824

)

Other liabilities

916,946

 

934,526

 

968,248

 

(17,580

)

Total liabilities

63,544,492

 

67,054,837

 

69,128,502

 

(3,510,345

)

Stockholders’ equity:

 

 

 

 

Preferred stock

22,143

 

22,143

 

22,143

 

-

 

Common stock

1,047

 

1,046

 

1,046

 

1

 

Surplus

4,790,993

 

4,652,508

 

4,650,182

 

138,485

 

Retained earnings

3,834,348

 

3,694,020

 

2,973,745

 

140,328

 

Treasury stock

(2,030,178

)

(1,970,548

)

(1,352,650

)

(59,630

)

Accumulated other comprehensive loss, net of tax

(2,524,928

)

(2,724,331

)

(325,069

)

199,403

 

 

 

Total stockholders’ equity

4,093,425

 

3,674,838

 

5,969,397

 

418,587

 

Total liabilities and stockholders’ equity

$67,637,917

 

$70,729,675

 

$75,097,899

 

$(3,091,758

)

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

Variance

 

 

 

 

31-Dec-22

 

30-Sep-22

 

31-Dec-21

 

Q4 2022 vs. Q3 2022

 

Q4 2022 vs. Q4 2021

 

($ amounts in millions)

Average balance

Income / Expense

Yield / Rate

 

Average balance

Income / Expense

Yield / Rate

 

Average balance

Income / Expense

Yield / Rate

 

Average balance

Income / Expense

Yield / Rate

 

Average balance

Income / Expense

Yield / Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market investments

5,262

 

50.9

3.84

%

6,721

 

37.0

2.18

%

17,885

 

6.9

0.15

%

(1,459

)

13.9

 

1.66

 

%

(12,623

)

44.0

 

3.69

 

%

 

 

Investment securities

30,843

 

189.2

2.44

%

31,859

 

186.8

2.33

%

24,797

 

118.4

1.90

%

(1,016

)

2.4

 

0.11

 

%

6,046

 

70.8

 

0.54

 

%

 

 

Trading securities

30

 

0.3

4.28

%

40

 

0.6

6.09

%

82

 

1.1

5.43

%

(10

)

(0.3

)

(1.81

)

%

(52

)

(0.8

)

(1.15

)

%

 

Total money market, investment and trading securities

$36,135

 

$240.4

2.65

%

$38,620

 

$224.4

2.31

%

$42,764

 

$126.4

1.18

%

($2,485

)

$16.0

 

0.34

 

%

($6,629

)

$114.0

 

1.47

 

%

 

Loans:

 

 

Commercial

15,503

 

234.7

6.01

 

14,750

 

205.2

5.52

 

13,395

 

188.6

5.59

 

753

 

29.5

 

0.49

 

 

2,108

 

46.1

 

0.42

 

 

 

 

Construction

769

 

14.6

7.54

 

835

 

13.4

6.38

 

777

 

10.7

5.46

 

(66

)

1.2

 

1.16

 

 

(8

)

3.9

 

2.08

 

 

 

 

Mortgage

7,346

 

98.9

5.38

 

7,264

 

98.4

5.42

 

7,504

 

96.4

5.14

 

82

 

0.5

 

(0.04

)

 

(158

)

2.5

 

0.24

 

 

 

 

Consumer

2,961

 

91.5

12.26

 

2,818

 

83.4

11.74

 

2,471

 

68.1

10.93

 

143

 

8.1

 

0.52

 

 

490

 

23.4

 

1.33

 

 

 

 

Auto

3,576

 

71.9

7.98

 

3,562

 

71.2

7.93

 

3,432

 

71.3

8.24

 

14

 

0.7

 

0.05

 

 

144

 

0.6

 

(0.26

)

 

 

 

Lease financing

1,557

 

23.1

5.92

 

1,503

 

22.2

5.90

 

1,359

 

20.3

5.97

 

54

 

0.9

 

0.02

 

 

198

 

2.8

 

(0.05

)

 

 

Total loans

31,712

 

534.7

6.70

 

30,732

 

493.8

6.39

 

28,938

 

455.4

6.26

 

980

 

40.9

 

0.31

 

 

2,774

 

79.3

 

0.44

 

 

 

Total interest earning assets

$67,847

 

$775.1

4.54

%

$69,352

 

$718.2

4.12

%

$71,702

 

$581.8

3.23

%

$(1,505

)

$56.9

 

0.42

 

%

$(3,855

)

$193.3

 

1.31

 

%

 

 

Allowance for credit losses - loan portfolio

(711

)

 

 

 

(691

)

 

 

 

(719

)

 

 

 

(20

)

 

 

 

8

 

 

 

 

 

 

Allowance for credit losses - investment securities

(7

)

 

 

 

(7

)

 

 

 

(9

)

 

 

 

-

 

 

 

 

2

 

 

 

 

 

 

Other non-interest earning assets

2,921

 

 

 

 

3,822

 

 

 

 

3,844

 

 

 

 

(901

)

 

 

 

(923

)

 

 

 

 

Total average assets

$70,050

 

 

 

 

$72,476

 

 

 

 

$74,818

 

 

 

 

$(2,426

)

 

 

 

$(4,768

)

 

 

 

Liabilities and Stockholders' Equity:

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market

$24,399

 

$106.5

1.73

%

$25,993

 

$36.4

0.56

%

$28,205

 

$7.7

0.11

%

$(1,594

)

$70.1

 

1.17

 

%

$(3,806

)

$98.8

 

1.62

 

%

 

 

Savings

15,248

 

11.0

0.29

 

15,514

 

8.0

0.20

 

16,324

 

6.8

0.17

 

(266

)

3.0

 

0.09

 

 

(1,076

)

4.2

 

0.12

 

 

 

 

Time deposits

6,675

 

21.8

1.29

 

6,957

 

16.5

0.94

 

6,793

 

11.8

0.69

 

(282

)

5.3

 

0.35

 

 

(118

)

10.0

 

0.60

 

 

 

 

Total interest-bearing deposits

46,322

 

139.3

1.19

 

48,464

 

60.9

0.50

 

51,322

 

26.3

0.20

 

(2,142

)

78.4

 

0.69

 

 

(5,000

)

113.0

 

0.99

 

 

 

Borrowings

1,363

 

14.3

4.18

 

1,068

 

10.7

4.01

 

1,163

 

11.6

4.01

 

295

 

3.6

 

0.17

 

 

200

 

2.7

 

0.17

 

 

 

 

Total interest-bearing liabilities

47,685

 

153.6

1.28

 

49,532

 

71.6

0.57

 

52,485

 

37.9

0.29

 

(1,847

)

82.0

 

0.71

 

 

(4,800

)

115.7

 

0.99

 

 

 

 

Net interest spread

 

 

3.26

%

 

 

3.55

%

 

 

2.94

%

 

 

(0.29

)

%

 

 

0.32

 

%

 

Non-interest bearing deposits

16,110

 

 

 

 

15,872

 

 

 

 

15,455

 

 

 

 

238

 

 

 

 

655

 

 

 

 

 

Other liabilities

930

 

 

 

 

1,010

 

 

 

 

917

 

 

 

 

(80

)

 

 

 

13

 

 

 

 

 

Stockholders' equity

5,325

 

 

 

 

6,062

 

 

 

 

5,961

 

 

 

 

(737

)

 

 

 

(636

)

 

 

 

 

 

Total average liabilities and stockholders' equity

$70,050

 

 

 

 

$72,476

 

 

 

 

$74,818

 

 

 

 

$(2,426

)

 

 

 

$(4,768

)

 

 

 

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

$621.5

3.64

%

 

$646.6

3.71

%

 

$543.9

3.02

%

 

($25.1

)

(0.07

)

%

 

$77.6

 

0.62

 

%

Taxable equivalent adjustment

61.9

 

 

 

67.0

 

 

 

42.6

 

 

 

(5.1

)

 

 

 

19.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$559.6

3.28

%

 

$579.6

3.32

%

 

$501.3

2.78

%

 

($20.0

)

(0.04

)

%

 

$58.3

 

0.50

 

%

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

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

(Unaudited)

 

 

Years ended

 

 

 

 

 

 

 

 

31-Dec-22

 

31-Dec-21

 

Variance

 

 

 

 

Average

Income /

Yield /

 

Average

Income /

Yield /

 

Average

Income /

Yield /

 

($ amounts in millions)

balance

Expense

Rate

 

balance

Expense

Rate

 

balance

Expense

Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market investments

9,531

 

118.1

1.24

%

16,000

 

21.2

0.13

%

(6,469

)

96.9

 

1.11

 

%

 

 

Investment securities

29,743

 

664.3

2.23

%

22,931

 

508.1

2.22

%

6,812

 

156.2

 

0.01

 

%

 

 

Trading securities

51

 

3.0

5.94

%

84

 

4.3

5.16

%

(33

)

(1.3

)

0.78

 

%

 

Total money market, investment and trading securities

$39,325

 

$785.4

2.00

%

$39,015

 

$533.6

1.37

%

$310

 

$251.8

 

0.63

 

%

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

14,562

 

795.1

5.46

 

13,455

 

723.8

5.39

 

1,107

 

71.3

 

0.07

 

 

 

 

Construction

778

 

48.9

6.29

 

849

 

45.8

5.41

 

(71

)

3.1

 

0.88

 

 

 

 

Mortgage

7,323

 

391.1

5.34

 

7,696

 

392.0

5.09

 

(373

)

(0.9

)

0.25

 

 

 

 

Consumer

2,743

 

320.0

11.67

 

2,463

 

275.1

11.17

 

280

 

44.9

 

0.50

 

 

 

 

Auto

3,525

 

282.5

8.02

 

3,322

 

280.7

8.47

 

203

 

1.8

 

(0.45

)

 

 

 

Lease financing

1,475

 

87.3

5.92

 

1,289

 

77.4

6.00

 

186

 

9.9

 

(0.08

)

 

 

Total loans

30,406

 

1,924.9

6.33

 

29,074

 

1,794.8

6.19

 

1,332

 

130.1

 

0.14

 

 

 

Total interest earning assets

$69,731

 

$2,710.3

3.89

%

$68,089

 

$2,328.4

3.43

%

$1,642

 

$381.9

 

0.46

 

%

 

 

Allowance for credit losses - loan portfolio

(695

)

 

 

 

(796

)

 

 

 

101

 

 

 

 

 

 

Allowance for credit losses - investment securities

(8

)

 

 

 

(10

)

 

 

 

2

 

 

 

 

 

 

Other non-interest earning assets

3,570

 

 

 

 

3,886

 

 

 

 

(316

)

 

 

 

 

Total average assets

$72,598

 

 

 

 

$71,169

 

 

 

 

$1,429

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market

$25,884

 

$158.6

0.61

%

$25,959

 

$31.9

0.12

%

(75

)

$126.7

 

0.49

 

%

 

 

Savings

15,886

 

32.4

0.20

 

15,429

 

27.1

0.18

 

457

 

5.3

 

0.02

 

 

 

 

Time deposits

6,853

 

61.8

0.90

 

7,028

 

52.6

0.75

 

(175

)

9.2

 

0.15

 

 

 

 

Total interest-bearing deposits

48,623

 

252.8

0.52

 

48,416

 

111.6

0.23

 

207

 

141.2

 

0.29

 

 

 

Borrowings

1,145

 

45.7

3.99

 

1,276

 

53.4

4.19

 

(131

)

(7.7

)

(0.20

)

 

 

 

Total interest-bearing liabilities

49,768

 

298.5

0.60

 

49,692

 

165.0

0.33

 

76

 

133.5

 

0.27

 

 

 

 

Net interest spread

 

 

3.29

%

 

 

3.10

%

 

 

0.19

 

%

 

Non-interest bearing deposits

16,094

 

 

 

 

14,687

 

 

 

 

1,407

 

 

 

 

 

Other liabilities

938

 

 

 

 

1,012

 

 

 

 

(74

)

 

 

 

 

Stockholders' equity

5,798

 

 

 

 

5,778

 

 

 

 

20

 

 

 

 

 

 

Total average liabilities and stockholders' equity

$72,598

 

 

 

 

$71,169

 

 

 

 

$1,429

 

 

 

 

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

$2,411.8

3.46

%

 

$2,163.4

3.19

%

 

$248.4

 

0.27

 

%

Taxable equivalent adjustment

244.4

 

 

 

205.8

 

 

 

38.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$2,167.4

3.11

%

 

$1,957.6

2.88

%

 

$209.8

 

0.23

 

%

Popular, Inc.

 

 

 

 

 

 

 

 

Financial Supplement to Fourth Quarter 2022 Earnings Release

 

 

 

 

Table F - Mortgage Banking Activities and Other Service Fees

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Banking Activities

 

 

 

 

 

 

 

 

 

Quarters ended

Variance

Years ended

Variance

(In thousands)

31-Dec-22

30-Sep-22

31-Dec-21

Q4 2022 vs
Q3 2022

Q4 2022 vs
Q4 2021

31-Dec-22

31-Dec-21

2022 vs.
2021

Mortgage servicing fees, net of fair value adjustments:

 

 

 

 

 

 

 

 

 

Mortgage servicing fees

$8,852

 

$9,126

 

$9,492

 

$(274

)

$(640

)

$36,487

 

$38,105

 

$(1,618

)

 

Mortgage servicing rights fair value adjustments

(2,610

)

(499

)

1,500

 

(2,111

)

(4,110

)

236

 

(10,206

)

10,442

 

Total mortgage servicing fees, net of fair value adjustments

6,242

 

8,627

 

10,992

 

(2,385

)

(4,750

)

36,723

 

27,899

 

8,824

 

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

123

 

1,124

 

5,428

 

(1,001

)

(5,305

)

(251

)

21,684

 

(21,935

)

Trading account profit (loss):

 

 

 

 

 

 

 

 

 

Realized gains (losses) on closed derivative positions

310

 

(240

)

691

 

550

 

(381

)

6,635

 

1,323

 

5,312

 

Total trading account profit (loss)

310

 

(240

)

691

 

550

 

(381

)

6,635

 

1,323

 

5,312

 

Losses on repurchased loans, including interest advances

(113

)

(63

)

(76

)

(50

)

(37

)

(657

)

(773

)

116

 

Total mortgage banking activities

$6,562

 

$9,448

 

$17,035

 

$(2,886

)

$(10,473

)

$42,450

 

$50,133

 

$(7,683

)

 

 

 

 

 

 

 

 

 

 

 

Other Service Fees

 

 

 

 

 

 

 

 

 

 

Quarters ended

Variance

Years ended

Variance

(In thousands)

 

31-Dec-22

30-Sep-22

31-Dec-21

Q4 2022
vs Q3 2022

Q4 2022
vs.Q4 2021

31-Dec-22

31-Dec-21

2022 vs.
2021

Other service fees:

 

 

 

 

 

 

 

 

 

 

Debit card fees

 

$13,379

$12,133

$12,392

$1,246

 

$987

 

$50,173

$48,637

$1,536

 

 

Insurance fees

 

14,587

15,697

17,848

(1,110

)

(3,261

)

56,457

57,834

(1,377

)

 

Credit card fees

 

39,777

37,829

35,649

1,948

 

4,128

 

149,403

130,475

18,928

 

 

Sale and administration of investment products

 

5,793

5,952

5,908

(159

)

(115

)

23,553

23,634

(81

)

 

Trust fees

 

5,223

5,506

5,858

(283

)

(635

)

22,799

24,318

(1,519

)

 

Other fees

 

10,263

9,285

6,138

978

 

4,125

 

31,624

26,350

5,274

 

Total other service fees

 

$89,022

$86,402

$83,793

$2,620

 

$5,229

 

$334,009

$311,248

$22,761

 

Popular, Inc.

 

 

 

 

 

Financial Supplement to Fourth Quarter 2022 Earnings Release

Table G - Loans and Deposits

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Loans - Ending Balances

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

31-Dec-22

30-Sep-22

31-Dec-21

Q4 2022 vs.Q3 2022

Q4 2022 vs.Q4 2021

Loans held-in-portfolio:

 

 

 

 

Commercial

$15,739,132

$15,366,859

$13,732,701

$372,273

 

$2,006,431

 

Construction

757,984

816,290

716,220

(58,306

)

41,764

 

Leasing

1,585,739

1,538,504

1,381,319

47,235

 

204,420

 

Mortgage

7,397,471

7,311,713

7,427,196

85,758

 

(29,725

)

Auto

3,512,530

3,528,904

3,412,187

(16,374

)

100,343

 

Consumer

3,084,913

2,960,918

2,570,934

123,995

 

513,979

 

Total loans held-in-portfolio

$32,077,769

$31,523,188

$29,240,557

$554,581

 

$2,837,212

 

Loans held-for-sale:

 

 

 

 

 

Mortgage

$5,381

$8,065

$59,168

$(2,684

)

$(53,787

)

Total loans held-for-sale

$5,381

$8,065

$59,168

$(2,684

)

$(53,787

)

Total loans

$32,083,150

$31,531,253

$29,299,725

$551,897

 

$2,783,425

 

 

 

 

 

 

 

Deposits - Ending Balances

 

 

 

 

 

Variance

(In thousands)

31-Dec-22

30-Sep-22

31-Dec-21

Q4 2022 vs. Q3 2022

Q4 2022 vs.Q4 2021

Demand deposits [1]

$26,382,605

$28,773,328

$25,889,732

$(2,390,723

)

$492,873

 

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

27,265,156

28,388,057

33,674,134

(1,122,901

)

(6,408,978

)

Savings, NOW and money market deposits (brokered)

798,064

728,651

729,073

69,413

 

68,991

 

Time deposits (non-brokered)

6,442,886

6,731,588

6,685,938

(288,702

)

(243,052

)

Time deposits (brokered CDs)

338,516

197,703

26,211

140,813

 

312,305

 

Total deposits

$61,227,227

$64,819,327

$67,005,088

$(3,592,100

)

$(5,777,861

)

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

 

 

 

 

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to Fourth Quarter 2022 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table H - Loan Delinquency - BPPR Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Sep-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

 

$

546

 

$

-

 

$

251

 

$

797

 

$

276,521

 

$

277,318

 

 

$

251

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

3,005

 

 

789

 

 

21,443

 

 

25,237

 

 

2,820,803

 

 

2,846,040

 

 

 

21,443

 

 

-

 

Owner occupied

 

 

10,992

 

 

7,834

 

 

28,379

 

 

47,205

 

 

1,540,932

 

 

1,588,137

 

 

 

28,379

 

 

-

Commercial and industrial

 

 

7,105

 

 

1,139

 

 

38,003

 

 

46,247

 

 

3,547,841

 

 

3,594,088

 

 

 

37,375

 

 

628

Construction

 

 

-

 

 

1,087

 

 

-

 

 

1,087

 

 

210,480

 

 

211,567

 

 

 

-

 

 

-

Mortgage

 

 

237,316

 

 

89,802

 

 

581,378

 

 

908,496

 

 

5,147,347

 

 

6,055,843

 

 

 

252,773

 

 

328,605

Leasing

 

 

14,487

 

 

2,740

 

 

5,697

 

 

22,924

 

 

1,515,580

 

 

1,538,504

 

 

 

5,697

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

7,268

 

 

4,481

 

 

10,361

 

 

22,110

 

 

966,406

 

 

988,516

 

 

 

-

 

 

10,361

 

Home equity lines of credit

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2,957

 

 

2,957

 

 

 

-

 

 

-

 

Personal

 

 

13,725

 

 

7,348

 

 

18,137

 

 

39,210

 

 

1,478,746

 

 

1,517,956

 

 

 

18,117

 

 

20

 

Auto

 

 

71,230

 

 

21,852

 

 

34,432

 

 

127,514

 

 

3,401,390

 

 

3,528,904

 

 

 

34,432

 

 

-

 

Other

 

 

708

 

 

768

 

 

12,025

 

 

13,501

 

 

124,950

 

 

138,451

 

 

 

11,748

 

 

277

Total

 

$

366,382

 

$

137,840

 

$

750,106

 

$

1,254,328

 

$

21,033,953

 

$

22,288,281

 

 

$

410,215

 

$

339,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

(121

)

 

$

-

 

 

$

(9

)

 

$

(130

)

 

$

4,185

 

 

$

4,055

 

 

 

$

(9

)

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

(2,064

)

 

 

(361

)

 

 

2,219

 

 

 

(206

)

 

 

(88,507

)

 

 

(88,713

)

 

 

 

2,219

 

 

 

-

 

 

Owner occupied

 

 

(10,263

)

 

 

(7,589

)

 

 

(4,389

)

 

 

(22,241

)

 

 

22,160

 

 

 

(81

)

 

 

 

(4,389

)

 

 

-

 

Commercial and industrial

 

 

(4,069

)

 

 

(198

)

 

 

(2,226

)

 

 

(6,493

)

 

 

208,913

 

 

 

202,420

 

 

 

 

(3,098

)

 

 

872

 

Construction

 

 

-

 

 

 

(1,087

)

 

 

-

 

 

 

(1,087

)

 

 

(63,439

)

 

 

(64,526

)

 

 

 

-

 

 

 

-

 

Mortgage

 

 

(14,390

)

 

 

2,079

 

 

 

(1,385

)

 

 

(13,696

)

 

 

68,132

 

 

 

54,436

 

 

 

 

(10,382

)

 

 

8,997

 

Leasing

 

 

(2,504

)

 

 

823

 

 

 

244

 

 

 

(1,437

)

 

 

48,672

 

 

 

47,235

 

 

 

 

244

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

(162

)

 

 

568

 

 

 

1,549

 

 

 

1,955

 

 

 

51,360

 

 

 

53,315

 

 

 

 

-

 

 

 

1,549

 

 

Home equity lines of credit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3

)

 

 

(3

)

 

 

 

-

 

 

 

-

 

 

Personal

 

 

(493

)

 

 

1,404

 

 

 

(55

)

 

 

856

 

 

 

66,875

 

 

 

67,731

 

 

 

 

(35

)

 

 

(20

)

 

Auto

 

 

(2,362

)

 

 

(2,609

)

 

 

6,546

 

 

 

1,575

 

 

 

(17,949

)

 

 

(16,374

)

 

 

 

6,546

 

 

 

-

 

 

Other

 

 

(221

)

 

 

(681

)

 

 

657

 

 

 

(245

)

 

 

(626

)

 

 

(871

)

 

 

 

698

 

 

 

(41

)

Total

 

$

(36,649

)

 

$

(7,651

)

 

$

3,151

 

 

$

(41,149

)

 

$

299,773

 

 

$

258,624

 

 

 

$

(8,206

)

 

$

11,357

 

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to Fourth Quarter 2022 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Dec-22

Popular U.S.

 

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

 

Accruing

(In thousands)

 

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

2,177

 

 

$

-

 

 

$

-

 

 

$

2,177

 

 

$

2,038,163

 

 

$

2,040,340

 

 

 

$

-

 

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

484

 

 

 

-

 

 

 

1,454

 

 

 

1,938

 

 

 

1,740,405

 

 

 

1,742,343

 

 

 

 

1,454

 

 

 

-

 

 

Owner occupied

 

 

-

 

 

 

-

 

 

 

5,095

 

 

 

5,095

 

 

 

1,485,398

 

 

 

1,490,493

 

 

 

 

5,095

 

 

 

-

 

Commercial and industrial

 

 

12,960

 

 

 

2,205

 

 

 

4,685

 

 

 

19,850

 

 

 

2,022,842

 

 

 

2,042,692

 

 

 

 

4,319

 

 

 

366

 

Construction

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

610,943

 

 

 

610,943

 

 

 

 

-

 

 

 

-

 

Mortgage

 

 

16,131