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Popular, Inc. Announces First Quarter 2022 Financial Results

  • Net income of $211.7 million in Q1 2022, compared to net income of $206.1 million in Q4 2021.
  • Net interest margin of 2.75% in Q1 2022, compared to 2.78% in Q4 2021; net interest margin on a taxable equivalent basis of 3.05% in Q1 2022, compared to 3.02% in Q4 2021.
  • Credit Quality:
    • Non-performing loans held-in-portfolio (“NPLs”) decreased by $28.0 million from Q4 2021; NPLs to loans ratio at 1.8% vs. 1.9% in Q4 2021;
    • Net charge-offs (“NCOs”) were $3.8 million, compared to a net recovery of $7.9 million in Q4 2021; NCOs at 0.05% of average loans held-in-portfolio vs. (0.11%) in Q4 2021;
    • Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.29% vs. 2.38% in Q4 2021; and
    • ACL to NPLs at 130.4% vs. 126.9% in Q4 2021.
  • Common Equity Tier 1 ratio of 16.26%, Common Equity per Share of $60.78 and Tangible Book Value per Share of $51.16 at March 31, 2022.

Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $211.7 million for the quarter ended March 31, 2022, compared to net income of $206.1 million for the quarter ended December 31, 2021.

Ignacio Alvarez, President and Chief Executive Officer, said: “We had a solid quarter with net income of $212 million, building on the momentum of our record 2021 results. We saw broad-based loan growth, across geographies and most business lines, while maintaining strong asset quality metrics. Net charge-offs were five basis points for the quarter. We continued to see deposit growth from our private sector clients. Our deposit franchise in Puerto Rico will be an even greater source of strength as interest rates rise as expected. Our capital ratios remained strong, allowing us to continue to return capital to our shareholders and increase our common stock dividend. Going forward, we remain optimistic about the economic outlook, yet cognizant of the possible challenges to the macroeconomic environment resulting from the war in Ukraine, inflation and the evolving health situation.

I am thankful to our team who have continued to perform at a high level and deliver results under a myriad of changing conditions. Finally, our thoughts and prayers are with the people of Ukraine as they suffer the horrible consequences of the war.”

Earnings Highlights

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

Quarters ended

(Dollars in thousands, except per share information)

31-Mar-22

 

31-Dec-21

 

31-Mar-21

Net interest income

$494,312

 

 

$501,283

 

 

$479,112

 

Provision for credit losses (benefit)

(15,500

)

 

(33,050

)

 

(82,226

)

Net interest income after provision for credit losses (benefit)

509,812

 

 

534,333

 

 

561,338

 

Other non-interest income

154,692

 

 

164,677

 

 

153,653

 

Operating expenses

402,339

 

 

417,394

 

 

375,528

 

Income before income tax

262,165

 

 

281,616

 

 

339,463

 

Income tax expense

50,479

 

 

75,552

 

 

76,831

 

Net income

$211,686

 

 

$206,064

 

 

$262,632

 

Net income applicable to common stock

$211,333

 

 

$205,711

 

 

$262,279

 

Net income per common share - Basic

$2.69

 

 

$2.59

 

 

$3.13

 

Net income per common share - Diluted

$2.69

 

 

$2.58

 

 

$3.12

 

 

 

 

 

 

 

Significant Events

Entry into Asset Purchase Agreement with Evertec; Renegotiation and Extension of Commercial Agreements

On February 24, 2022, the Corporation and Banco Popular de Puerto Rico (“BPPR”), entered into an Asset Purchase Agreement (the “Purchase Agreement”), with Evertec, Inc. (“EVERTEC”) and Evertec Group, LLC, a wholly owned subsidiary of EVERTEC (“EVERTEC Group”), pursuant to which BPPR will purchase from EVERTEC Group certain information technology and related assets currently used by EVERTEC to service certain of BPPR’s key channels (the “Acquired Assets”) under the Amended and Restated Master Service Agreement (the “MSA”), dated September 30, 2010, among the Corporation, BPPR and EVERTEC. In connection with the purchase of the Acquired Assets, BPPR will assume certain liabilities relating to the Acquired Assets (together with the purchase of the Acquired Assets, the “Transaction”). The Transaction is expected to close on or about June 30, 2022, subject to the satisfaction of certain closing conditions.

In connection with the consummation of the Transaction (the “Closing”), the Corporation will transfer to EVERTEC Group, as consideration for the Transaction, shares of EVERTEC’s common stock (“EVERTEC Common Stock”) having an aggregate value of approximately $197 million, subject to certain purchase price adjustments, based on a price per share of $42.84, which value was determined at the time of entering into the Purchase Agreement. As a result of this transfer, the Corporation expects that its percentage ownership of the outstanding shares of EVERTEC Common Stock will be reduced from its current level, which is approximately 16.2%, to approximately 10.5% immediately following the Closing. As part of the transaction, the Corporation has also agreed to reduce its voting interest in EVERTEC below 4.5%, whether through selling shares of EVERTEC common stock or a conversion of such shares into non-voting preferred stock. The Corporation expects to sell down its stake in EVERTEC below 4.5% following the closing and intends to return to shareholders, via common stock repurchases, the after-tax gains resulting from such sale, subject to the receipt of regulatory approvals.

Additionally, as part of the Closing, the Corporation and BPPR will also enter with EVERTEC into, among other commercial agreements, a Second Amended and Restated Master Services Agreement (the “Second A&R MSA”), pursuant to which EVERTEC Group will continue to provide various key information technology and various transaction processing services to the Corporation, BPPR and their respective subsidiaries, which services are provided under the currently effective MSA.

Capital Actions

On March 1, 2022 the Corporation announced that on February 28, 2022 it entered into an accelerated share repurchase agreement (the “ASR Agreement”) to repurchase an aggregate of $400 million of Popular’s common stock. Popular previously disclosed in a press release on January 12, 2022 its plan to repurchase up to $500 million of its common stock as part of its planned capital actions for 2022.

Under the terms of the ASR Agreement, on March 2, 2022 the Corporation made an initial payment of $400 million and received an initial delivery of 3,483,942 shares of Popular’s Common Stock (the “Initial Shares”).

The transaction was accounted for as a treasury stock transaction. Furthermore, as a result of the receipt of the Initial Shares, the Corporation recognized in shareholders’ equity approximately $320 million in treasury stock and $80 million as a reduction of capital surplus. Upon the final settlement of the ASR Agreement, the Corporation expects to further adjust its treasury stock and capital surplus accounts to reflect the final delivery or receipt of cash or shares, which will depend on the volume-weighted average price of the Corporation’s common stock during the term of the ASR Agreement, less a discount. The final settlement of the ASR Agreement is expected to occur no later than the third quarter of 2022.

Popular expects to execute during the remainder of the year, in the open market or in privately negotiated transactions, the remaining $100 million in common stock repurchases contemplated as part of the Corporation’s 2022 capital actions announced in January 2022. The timing and exact amount of such additional repurchases will be subject to various factors, including market conditions and the Corporation’s capital position and financial performance.

On February 23, 2022, the Corporation’s Board of Directors approved a quarterly cash dividend of $0.55 per share, an increase from the previous $0.45 per share quarterly dividend, on its outstanding common stock. The dividend was paid on April 1, 2022 to shareholders of record at the close of business on March 15, 2022.

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

Net interest income, on a taxable equivalent basis, is presented with its different components in Table D for the quarter ended March 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 March 31, 2022 was $494.3 million compared to $501.3 million in the previous quarter, a decrease of $7.0 million. Net interest income, on a taxable equivalent basis, for the first quarter of 2022 was $548.1 million, an increase of $4.2 million when compared to $543.9 million in the last quarter of 2021. The increase in the taxable equivalent adjustment results from BPPR’s higher volume of tax-free investment securities in Puerto Rico.

Net interest margin for the quarter was 2.75% compared to 2.78% in the last quarter of 2021. On a taxable equivalent basis, net interest margin for the first quarter of 2022 was 3.05% compared to 3.02% in the fourth quarter of 2021. The main variances in net interest income on a taxable equivalent basis were:

  • higher interest income from money markets, trading and investment securities by $18.4 million resulting from a higher volume by $540 million, in turn driven by an increase in the average U.S. Treasury portfolio by $4.2 billion, partially offset by lower volume of money market investments by $3.1 billion and higher yields by 17 basis points driven by higher market rates and the composition of the portfolio; and
  • higher interest income from consumer loans mainly driven by a higher average volume in both P.R. and the U.S.

partially offset by:

  • lower interest income from commercial loans by $16.5 million resulting from lower income form loans under the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) by $12.6 million, lower interest income from the repayment of purchased credit deteriorated (“PCD”) loans and the impact of 2 fewer days in the quarter or approximately $4.1 million. This negative effect was offset in part by an increase of $346 million in the average volume of commercial loans, at both P.R. and the U.S segments, for a $4.4 million benefit;
  • a decrease in auto and lease financing income of $1.6 million mainly driven by two fewer days in the quarter when compared to the prior quarter, partially offset by higher loan volume by $62 million.

The Corporation recognized income of $10.6 million related to loans issued under the SBA PPP, compared to $23.2 million in the previous quarter. These loans carried a yield of approximately 17.01% in this quarter, including the amortization of fees received under the program, compared to 17.86% last quarter. This portfolio of loans issued under the SBA PPP declined by $141 million in BPPR to a balance of $114 million and declined by $39 million in Popular Bank (“PB” or “Popular U.S.”) to a balance of $59 million. On March 31, 2022, the portfolio at BPPR and PB had a remaining aggregate balance of unamortized fees of $8.1 million.

Net interest income for the BPPR segment amounted to $415.2 million for the first quarter of 2022, compared to $425.9 million for the fourth quarter of 2021. Net interest margin for the first quarter of 2022 was 2.67% a decrease of 6 basis points when compared to 2.73% for the previous quarter. As discussed above, net interest margin was negatively impacted by lower SBA PPP income and lower payment of PCD loans, partially offset by the positive impact of higher investment securities balances. The cost of interest-bearing and total deposits remained unchanged from the previous quarter at 0.16% and 0.12%, respectively.

Net interest income for PB was $86.5 million for the quarter ended March 31, 2022, compared to $83.2 million during the previous quarter. Net interest margin for the quarter was 3.56% compared to 3.47% the previous quarter. The increase in net interest income results mainly from a higher volume of commercial and consumer loans. The lower cost on deposits also resulted in a benefit to PB’s net interest margin. The cost of interest-bearing deposits was 0.46% or 6 basis points lower than the 0.52% reported in the last quarter of 2021, while the total cost of deposits, including demand deposits, was 0.36%, compared to 0.40% in the previous quarter.

Non-interest income

Non-interest income decreased by $10.0 million to $154.7 million for the quarter ended March 31, 2022, compared to $164.7 million for the quarter ended December 31, 2021. The variance in non-interest income was primarily driven by:

  • lower other service fees by $6.7 million, mainly due to lower insurance fees by $3.7 million principally resulting from contingent insurance commissions that are typically recognized during the fourth quarter and lower credit card fees by $2.0 million mainly in interchange income due to seasonal purchasing activity in the previous quarter; and
  • lower income from mortgage banking activities by $4.2 million mainly due to a loss on sale of loans and securitization activities of $1.5 million, compared to a gain of $5.4 in the previous quarter due to a lower volume of transactions and lower market rates, partially offset by higher realized gains on closed derivative positions by $3.4 million;

partially offset by:

  • higher other operating income by $4.9 million mainly due to higher earnings from the portfolio of equity method investments and higher income from the sale of auto rental units.

Refer to Table B for further details.

Operating expenses

Operating expenses for the first quarter of 2022 totaled $402.3 million, a decrease of $15.1 million when compared to the fourth quarter of 2021. The variance in operating expenses was driven primarily by:

  • lower net occupancy expenses by $2.0 million due to lower rent and electricity expenses;
  • lower business promotion expenses by $10.8 million mainly due to lower advertising and promotion expenses by $5.7 million a result of seasonal activities during the fourth quarter of 2021, lower donations by $2.8 million and lower credit cards rewards expense as a result of transactional volumes by $1.7 million;
  • lower other operating expenses by $11.4 million due to the effect during the previous quarter of an impairment charge on undeveloped properties by $5.0 million and lower sundry losses by $5.0 million mainly related to the termination of a white label credit card contract during prior quarter; and
  • lower amortization of intangibles by $5.2 million due to an impairment write-down of a trademark during the fourth quarter of 2021.

partially offset by:

  • higher personnel cost by $6.5 million mainly due to higher performance shares and restricted stock expenses by $6.3 million; higher payroll taxes by $5.1 million; partially offset by $3.1 million in lower incentives related to the profit-sharing plan which is tied to the Corporation’s financial performance;
  • higher professional fees by $3.4 million mainly due to higher advisory expenses related to corporate initiatives; and
  • higher credit and debit card processing and other expenses by $3.8 million due in part to lower volume incentives.

Full-time equivalent employees were 8,492 as of March 31, 2022, compared to 8,351 as of December 31, 2021.

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

Income taxes

For the quarter ended March 31, 2022, the Corporation recorded an income tax expense of $50.5 million, compared to $75.6 million for the previous quarter. The decrease in income tax expense was mainly attributable to lower income before tax and higher exempt income during the first quarter of 2022. The effective tax rate (“ETR”) for the first quarter of 2022 was 19.3%, compared to 27% in the fourth quarter of 2021. The ETR of the Corporation is impacted by the composition and source of its taxable income. The Corporation expects its ETR for the year 2022 to be within a range from 18% to 20%.

Credit Quality

During the first quarter of 2022, the Corporation continued to exhibit strong credit quality trends and low credit costs with low level of NCOs and decreasing NPLs. We continue to closely monitor changes on borrower performance and in the pace of economic recovery, given the rising interest rate environment and geopolitical uncertainty. However, management believes that the improvement over the last few years in the risk profile of the Corporation’s loan portfolios positions Popular to operate successfully under the current environment.

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

  • At March 31, 2022, total non-performing loans held-in-portfolio decreased by $28.0 million from December 31, 2021. BPPR’s NPLs decreased by $27.5 million, mostly driven by lower mortgage NPLs by $27.3 million. The mortgage NPLs decrease was mainly due to the combined effects of collection efforts, increased foreclosure activity and the sustained low levels of early delinquency compared with pre-pandemic trends. PB’s NPLs remained flat quarter-over-quarter. At March 31, 2022, the ratio of NPLs to total loans held-in-portfolio was 1.8%, compared to 1.9% in the fourth quarter of 2021.
  • Inflows of NPLs held-in-portfolio, excluding consumer loans, remained flat quarter-over-quarter. In BPPR, total inflows increased by $5.3 million, mostly driven by higher commercial and mortgage inflows of $3.8 million and $2.0 million, respectively. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB decreased by $4.9 million during the quarter, mostly driven by a decrease of $7.2 million in mortgage inflows, as the prior quarter included the impact of loans that did not resume payment after the end of COVID-19-related payment deferral periods.
  • NCOs amounted to $3.8 million, an unfavorable variance of $11.7 million when compared to the fourth quarter. BPPR‘s NCOs increased by $13.1 million, as the prior quarter included recoveries from the resolution of certain commercial non-performing loans. During the first quarter of 2022, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.05%, compared to (0.11%) in the fourth quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios.
  • At March 31, 2022, the ACL decreased by $17.6 million, or 2.5%, from the fourth quarter of 2021 to $677.8 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 current baseline forecast continues to show a favorable economic scenario. 2022 annualized GDP growth of 3.5% and 3.7% is expected for Puerto Rico and United States, respectively. This represents a reduction for both Puerto Rico and United States since last quarter’s GDP growth forecast was 4.0% and 4.6%, respectively. Changes in assumptions related to fiscal stimulus and higher energy prices contributed to the reduction. The 2022 average unemployment rate is forecasted at 7.3% and 3.6% for Puerto Rico and United States, respectively. This is consistent with previous expectations for both regions. Puerto Rico’s unemployment rate forecast benefits from the Bureau of Labor Statistics (“BLS”) revisions that show a stronger than expected labor market.
  • In BPPR, the ACL decreased by $17.6 million, mainly driven by reductions in qualitative reserves due to substantial improvements in employment levels in Puerto Rico. Recent updates by the BLS show that employment levels in Puerto Rico have already surpassed pre-pandemic levels. This contributed to a lower commercial, mortgage and consumer loans ACL. The decrease in qualitative reserves was partially offset by the impact of higher loan volumes and changes in the macroeconomic scenario. The ACL for the PB segment remained flat quarter-over-quarter as higher loan volumes in both the commercial real estate and consumer portfolios offset reductions in qualitative reserves. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.29% in the first quarter of 2022, compared to 2.38% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 130.4%, compared to 126.9% in the previous quarter.
  • The provision for credit losses for the loan portfolios for the first quarter of 2022 reflected a benefit of $14.4 million, compared to a benefit of $31.4 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was a benefit of $12.7 million, compared to a benefit of $30.6 million in the previous quarter, while the provision for the PB segment was a benefit of $1.7 million, compared to a benefit of $0.9 million in the previous quarter.
  • The provision for unfunded commitments for the first quarter of 2022 reflected a benefit of $0.8 million, compared to a benefit of $0.5 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $0.3 million, compared to a benefit of $1.1 million in the fourth quarter of 2021. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations.

Non-Performing Assets

 

 

 

 

 

(Unaudited)

 

 

 

 

 

(In thousands)

31-Mar-22

 

31-Dec-21

 

31-Mar-21

Non-performing loans held-in-portfolio

$519,921

 

 

$547,877

 

 

$698,142

 

Non-performing loans held-for-sale

-

 

 

-

 

 

3,549

 

Other real estate owned (“OREO”)

90,567

 

 

85,077

 

 

72,060

 

Total non-performing assets

$610,488

 

 

$632,954

 

 

$773,751

 

Net charge-offs (recoveries) for the quarter

$3,781

 

 

$(7,881

)

 

$21,030

 

 

 

 

 

 

 

 

Ratios:

 

 

 

 

 

Loans held-in-portfolio

$29,588,190

 

 

$29,240,557

 

 

$29,131,628

 

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

1.76

%

 

1.87

%

 

2.40

%

Allowance for credit losses to loans held-in-portfolio

2.29

 

 

2.38

 

 

2.75

 

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

130.36

 

 

126.92

 

 

114.70

 

Refer to Table K for additional information.

 

 

 

 

 

Provision for Credit Losses (Benefit) - Loan Portfolios

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Quarters ended

(In thousands)

 

31-Mar-22

 

31-Dec-21

 

31-Mar-21

Provision for credit losses (benefit) - loan portfolios:

 

 

 

 

 

 

BPPR

 

$(12,661

)

 

$(30,562

)

 

$(39,976

)

Popular U.S.

 

(1,744

)

 

(859

)

 

(35,803

)

Total provision for credit losses (benefit) - loan portfolios

 

$(14,405

)

 

$(31,421

)

 

$(75,779

)

Credit Quality by Segment

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

(In thousands)

 

Quarters ended

BPPR

 

31-Mar-22

 

31-Dec-21

 

31-Mar-21

Provision for credit losses (benefit) - loan portfolios

 

$(12,661

)

 

$(30,562

)

 

$(39,976

)

Net charge-offs (recoveries)

 

5,502

 

 

(7,615

)

 

19,474

 

Total non-performing loans held-in-portfolio

 

486,816

 

 

514,289

 

 

665,978

 

Allowance / loans held-in-portfolio

 

2.74

%

 

2.85

%

 

3.20

%

Allowance / non-performing loans held-in-portfolio

 

118.45

%

 

115.53

%

 

102.35

%

 

 

 

 

 

 

 

 

 

Quarters ended

Popular U.S.

 

31-Mar-22

 

31-Dec-21

 

31-Mar-21

Provision for credit losses (benefit) - loan portfolios

 

$(1,744

)

 

$(859

)

 

$(35,803

)

Net charge-offs (recoveries)

 

(1,721

)

 

(266

)

 

1,556

 

Total non-performing loans held-in-portfolio

 

33,105

 

 

33,588

 

 

32,164

 

Allowance / loans held-in-portfolio

 

1.18

%

 

1.21

%

 

1.53

%

Allowance / non-performing loans held-in-portfolio

 

305.64

%

 

301.31

%

 

370.42

%

Financial Condition Highlights

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

(In thousands)

31-Mar-22

 

31-Dec-21

 

31-Mar-21

Cash and money market investments

$10,508,840

 

$17,965,152

 

$12,064,592

Investment securities

26,658,289

 

25,267,418

 

23,076,488

Loans

29,588,190

 

29,240,557

 

29,131,628

Total assets

69,525,082

 

75,097,899

 

66,870,268

Deposits

62,862,295

 

67,005,088

 

58,742,801

Borrowings

1,060,706

 

1,155,166

 

1,311,064

Total liabilities

64,853,836

 

69,128,502

 

60,972,709

Stockholders’ equity

4,671,246

 

5,969,397

 

5,897,559

Total assets decreased by $5.6 billion from the fourth quarter of 2021, driven by:

  • a decrease of $7.5 billion in money market investments, mainly due to lower Puerto Rico public sector deposits and purchases of U.S. Treasury securities;

partially offset by:

  • an increase of $1.4 billion in debt securities available-for-sale, mainly due to purchases of U.S. Treasury securities, offset in part by maturities and paydowns of U.S. Treasury and agency mortgage-backed securities; and
  • an increase in loans held-in-portfolio by $0.4 billion, mainly due to loan growth in the commercial portfolios in both Puerto Rico and the U.S. (mainly in the health care sector at PB) and construction portfolios, and purchases of third-party lending consumer loans, partially offset by a decrease in the mortgage portfolio, mainly due to loan payoffs and amortizations.

Total liabilities decreased by $4.3 billion from the fourth quarter of 2021, driven by:

  • a decrease of $4.1 billion in deposits, mainly due to lower Puerto Rico public sector deposits by $5.5 billion at BPPR as a result of the payments made by Puerto Rico pursuant to the Plan of Adjustment for Puerto Rico under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”); and
  • a decrease in borrowings of $94 million, mainly due to the maturity during this quarter of $75 million in short-term borrowings.

Stockholders' equity decreased by $1.3 billion from the fourth quarter of 2021, principally due to an increase in accumulated unrealized losses on debt securities available-for-sale by $1.1 billion due to a decline in fair value of fixed-rate debt securities as a result of the rising interest rate environment, the impact of the $400 million ASR and declared quarterly common stock dividends, partially offset by the net income of $211.7 million for the quarter.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.26%, $60.78 and $51.16, respectively, at March 31, 2022, compared to 17.42%, $74.48 and $65.26 at December 31, 2021. Refer to Table A for capital ratios.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings, 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 the length of time necessary for Popular to consummate the Transaction; the ability to satisfy the conditions to the closing thereof; the receipt of any regulatory approvals necessary to effect the Transaction and the contemplated return to shareholders of net gains resulting from a sale of EVERTEC shares effected in connection with the consummation of the Transaction; the ability to successfully transition and integrate the assets acquired as part of the Transaction, 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 Transaction or that are not subject to indemnification or reimbursement by EVERTEC; risks that Popular may be affected by operational 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. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements.

More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2021, and in our Form 10-Q for the quarter ended March 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 Tuesday, April 26, 2022 at 11:00 a.m. Eastern Time. The call will be open to the public and broadcasted live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through the dial-in telephone number 1-844-200-6205 (Toll Free) or 1-646-904-5544 (Local). The dial-in access code is 659646.

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 Tuesday, May 24, 2022. The replay dial-in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 408334.

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 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 [Left Blank]

 

Table F - Mortgage Banking Activities & Other Service Fees

 

Table G - Loans and Deposits

 

Table H - Loan Delinquency - PUERTO RICO OPERATIONS

 

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

 

Table J - Loan Delinquency - CONSOLIDATED

 

Table K - Non-Performing Assets

 

Table L - Activity in Non-Performing Loans

 

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

 

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

 

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

 

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

 

Table Q - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to First Quarter 2022 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

 

 

 

Quarters ended

 

31-Mar-22

31-Dec-21

31-Mar-21

Basic EPS

$2.69

$2.59

$3.13

Diluted EPS

$2.69

$2.58

$3.12

Average common shares outstanding

78,443,706

79,477,823

83,899,769

Average common shares outstanding - assuming dilution

78,595,463

79,652,836

84,051,935

Common shares outstanding at end of period

76,487,523

79,851,169

84,379,180

Market value per common share

$81.74

$82.04

$70.32

Market capitalization - (In millions)

$6,252

$6,551

$5,934

Return on average assets

1.14%

1.09%

1.61%

Return on average common equity

14.38%

13.74%

18.76%

Net interest margin (non-taxable equivalent basis)

2.75%

2.78%

3.07%

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

3.05%

3.02%

3.39%

Common equity per share

$60.78

$74.48

$69.63

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

$51.16

$65.26

$61.42

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

5.69%

7.01%

7.83%

Return on average tangible common equity [1]

16.40%

15.66%

21.37%

Tier 1 capital

16.33%

17.49%

17.15%

Total capital

18.19%

19.35%

19.62%

Tier 1 leverage

6.98%

7.41%

8.06%

Common Equity Tier 1 capital

16.26%

17.42%

17.08%

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

POPULAR, INC.

Financial Supplement to First Quarter 2022 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

 

Quarters ended

Variance

Quarter ended

Variance

 

 

 

Q1 2022

 

Q1 2022

(In thousands, except per share information)

31-Mar-22

31-Dec-21

vs. Q4 2021

31-Mar-21

vs. Q1 2021

Interest income:

 

 

 

 

 

Loans

$426,791

 

$444,101

 

$(17,310

)

$434,649

 

$(7,858

)

Money market investments

6,464

 

6,847

 

(383

)

3,112

 

3,352

 

Investment securities

96,466

 

88,315

 

8,151

 

85,690

 

10,776

 

Total interest income

529,721

 

539,263

 

(9,542

)

523,451

 

6,270

 

Interest expense:

 

 

 

 

 

Deposits

24,783

 

26,331

 

(1,548

)

30,201

 

(5,418

)

Short-term borrowings

80

 

60

 

20

 

143

 

(63

)

Long-term debt

10,546

 

11,589

 

(1,043

)

13,995

 

(3,449

)

Total interest expense

35,409

 

37,980

 

(2,571

)

44,339

 

(8,930

)

Net interest income

494,312

 

501,283

 

(6,971

)

479,112

 

15,200

 

Provision for credit losses (benefit)

(15,500

)

(33,050

)

17,550

 

(82,226

)

66,726

 

Net interest income after provision for credit losses (benefit)

509,812

 

534,333

 

(24,521

)

561,338

 

(51,526

)

Service charges on deposit accounts

40,713

 

41,613

 

(900

)

39,620

 

1,093

 

Other service fees

77,134

 

83,793

 

(6,659

)

70,628

 

6,506

 

Mortgage banking activities

12,865

 

17,035

 

(4,170

)

17,343

 

(4,478

)

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

(2,094

)

(1,454

)

(640

)

421

 

(2,515

)

Net loss on trading account debt securities

(723

)

(355

)

(368

)

(45

)

(678

)

Adjustments (expense) to indemnity reserves on loans sold

(745

)

1,398

 

(2,143

)

(698

)

(47

)

Other operating income

27,542

 

22,647

 

4,895

 

26,384

 

1,158

 

Total non-interest income

154,692

 

164,677

 

(9,985

)

153,653

 

1,039

 

Operating expenses:

 

 

 

 

 

Personnel costs

 

 

 

 

 

Salaries

98,673

 

96,830

 

1,843

 

89,335

 

9,338

 

Commissions, incentives and other bonuses

31,339

 

27,611

 

3,728

 

33,218

 

(1,879

)

Pension, postretirement and medical insurance

12,783

 

13,971

 

(1,188

)

10,924

 

1,859

 

Other personnel costs, including payroll taxes

24,201

 

22,060

 

2,141

 

26,002

 

(1,801

)

Total personnel costs

166,996

 

160,472

 

6,524

 

159,479

 

7,517

 

Net occupancy expenses

24,723

 

26,755

 

(2,032

)

26,013

 

(1,290

)

Equipment expenses

23,479

 

25,180

 

(1,701

)

21,575

 

1,904

 

Other taxes

15,715

 

15,160

 

555

 

13,959

 

1,756

 

Professional fees

 

 

 

 

 

Collections, appraisals and other credit related fees

2,226

 

3,227

 

(1,001

)

3,320

 

(1,094

)

Programming, processing and other technology services

69,374

 

69,647

 

(273

)

66,366

 

3,008

 

Legal fees, excluding collections

3,954

 

3,445

 

509

 

2,365

 

1,589

 

Other professional fees

32,943

 

28,736

 

4,207

 

27,897

 

5,046

 

Total professional fees

108,497

 

105,055

 

3,442

 

99,948

 

8,549

 

Communications

6,147

 

6,263

 

(116

)

6,833

 

(686

)

Business promotion

15,083

 

25,833

 

(10,750

)

12,521

 

2,562

 

FDIC deposit insurance

7,372

 

6,688

 

684

 

5,968

 

1,404

 

Other real estate owned (OREO) income

(2,713

)

(3,860

)

1,147

 

(4,533

)

1,820

 

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

12,509

 

8,757

 

3,752

 

12,454

 

55

 

Other operating expenses

 

 

 

 

 

Operational losses

11,825

 

16,820

 

(4,995

)

7,896

 

3,929

 

All other

11,815

 

18,226

 

(6,411

)

12,364

 

(549

)

Total other operating expenses

23,640

 

35,046

 

(11,406

)

20,260

 

3,380

 

Amortization of intangibles

891

 

6,045

 

(5,154

)

1,051

 

(160

)

Total operating expenses

402,339

 

417,394

 

(15,055

)

375,528

 

26,811

 

Income before income tax

262,165

 

281,616

 

(19,451

)

339,463

 

(77,298

)

Income tax expense

50,479

 

75,552

 

(25,073

)

76,831

 

(26,352

)

Net income

$211,686

 

$206,064

 

$5,622

 

$262,632

 

$(50,946

)

Net income applicable to common stock

$211,333

 

$205,711

 

$5,622

 

$262,279

 

$(50,946

)

Net income per common share - basic

$2.69

 

$2.59

 

$0.10

 

$3.13

 

$(0.44

)

Net income per common share - diluted

$2.69

 

$2.58

 

$0.11

 

$3.12

 

$(0.43

)

Dividends Declared per Common Share

$0.55

 

$0.45

 

$0.10

 

$0.40

 

$0.15

 

Popular, Inc.

Financial Supplement to First Quarter 2022 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

 

 

 

 

Variance

 

 

 

 

Q1 2022 vs.

(In thousands)

31-Mar-22

31-Dec-21

31-Mar-21

Q4 2021

Assets:

 

 

 

 

Cash and due from banks

$439,148

 

$428,433

 

$495,915

 

$10,715

 

Money market investments

10,069,692

 

17,536,719

 

11,568,677

 

(7,467,027

)

Trading account debt securities, at fair value

36,042

 

29,711

 

36,504

 

6,331

 

Debt securities available-for-sale, at fair value

26,359,915

 

24,968,269

 

22,771,609

 

1,391,646

 

Debt securities held-to-maturity, at amortized cost

75,984

 

79,461

 

89,725

 

(3,477

)

Less: Allowance for credit losses

7,844

 

8,096

 

10,096

 

(252

)

Total debt securities held-to-maturity, net

68,140

 

71,365

 

79,629

 

(3,225

)

Equity securities

186,348

 

189,977

 

178,650

 

(3,629

)

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

55,150

 

59,168

 

84,214

 

(4,018

)

Loans held-in-portfolio

29,856,356

 

29,506,225

 

29,344,620

 

350,131

 

Less: Unearned income

268,166

 

265,668

 

212,992

 

2,498

 

Allowance for credit losses

677,792

 

695,366

 

800,797

 

(17,574

)

Total loans held-in-portfolio, net

28,910,398

 

28,545,191

 

28,330,831

 

365,207

 

Premises and equipment, net

488,390

 

494,240

 

508,023

 

(5,850

)

Other real estate

90,567

 

85,077

 

72,060

 

5,490

 

Accrued income receivable

204,466

 

203,096

 

215,993

 

1,370

 

Mortgage servicing rights, at fair value

125,358

 

121,570

 

122,543

 

3,788

 

Other assets

1,755,847

 

1,628,571

 

1,713,083

 

127,276

 

Goodwill

720,293

 

720,293

 

671,122

 

-

 

Other intangible assets

15,328

 

16,219

 

21,415

 

(891

)

Total assets

$69,525,082

 

$75,097,899

 

$66,870,268

 

$(5,572,817

)

Liabilities and Stockholders’ Equity:

 

 

 

 

Liabilities:

 

 

 

 

Deposits:

 

 

 

 

Non-interest bearing

$16,096,666

 

$15,684,482

 

$14,263,548

 

$412,184

 

Interest bearing

46,765,629

 

51,320,606

 

44,479,253

 

(4,554,977

)

Total deposits

62,862,295

 

67,005,088

 

58,742,801

 

(4,142,793

)

Assets sold under agreements to repurchase

72,819

 

91,603

 

86,834

 

(18,784

)

Other short-term borrowings

-

 

75,000

 

-

 

(75,000

)

Notes payable

987,887

 

988,563

 

1,224,230

 

(676

)

Other liabilities

930,835

 

968,248

 

918,844

 

(37,413

)

Total liabilities

64,853,836

 

69,128,502

 

60,972,709

 

(4,274,666

)

Stockholders’ equity:

 

 

 

 

Preferred stock

22,143

 

22,143

 

22,143

 

-

 

Common stock

1,046

 

1,046

 

1,045

 

-

 

Surplus

4,571,111

 

4,650,182

 

4,571,919

 

(79,071

)

Retained earnings

3,143,004

 

2,973,745

 

2,489,453

 

169,259

 

Treasury stock

(1,668,820

)

(1,352,650

)

(1,012,263

)

(316,170

)

Accumulated other comprehensive loss, net of tax

(1,397,238

)

(325,069

)

(174,738

)

(1,072,169

)

Total stockholders’ equity

4,671,246

 

5,969,397

 

5,897,559

 

(1,298,151

)

Total liabilities and stockholders’ equity

$69,525,082

 

$75,097,899

 

$66,870,268

 

$(5,572,817

)

Popular, Inc.

Financial Supplement to First Quarter 2022 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

 

Variance

 

 

31-Mar-22

 

 

31-Dec-21

 

 

31-Mar-21

 

 

Q1 2022 vs. Q4 2021

 

 

Q1 2022 vs. Q1 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, trading and investment securities

$43,304

 

$144.8

1.35

%

 

$42,764

 

$126.4

1.18

%

 

$33,756

 

$127.8

1.52

%

 

$540

 

$18.4

 

0.17

 

%

 

$9,548

 

$17.0

 

(0.17

)

%

Loans:

Commercial

13,741

 

172.1

5.08

 

 

13,395

 

188.6

5.59

 

 

13,624

 

179.0

5.33

 

 

346

 

(16.5

)

(0.51

)

 

 

117

 

(6.9

)

(0.25

)

 

Construction

726

 

9.8

5.45

 

 

777

 

10.7

5.46

 

 

911

 

11.9

5.30

 

 

(51

)

(0.9

)

(0.01

)

 

 

(185

)

(2.1

)

0.15

 

 

Mortgage

7,388

 

96.8

5.24

 

 

7,504

 

96.4

5.14

 

 

7,869

 

98.4

5.00

 

 

(116

)

0.4

 

0.10

 

 

 

(481

)

(1.6

)

0.24

 

 

Consumer

2,538

 

70.0

11.19

 

 

2,471

 

68.1

10.93

 

 

2,513

 

70.4

11.36

 

 

67

 

1.9

 

0.26

 

 

 

25

 

(0.4

)

(0.17

)

 

Auto

3,460

 

69.3

8.12

 

 

3,432

 

71.3

8.24

 

 

3,203

 

68.2

8.63

 

 

28

 

(2.0

)

(0.12

)

 

 

257

 

1.1

 

(0.51

)

 

Lease financing

1,393

 

20.7

5.95

 

 

1,359

 

20.3

5.97

 

 

1,215

 

18.4

6.04

 

 

34

 

0.4

 

(0.02

)

 

 

178

 

2.3

 

(0.09

)

 

Total loans

29,246

 

438.7

6.06

 

 

28,938

 

455.4

6.26

 

 

29,335

 

446.3

6.15

 

 

308

 

(16.7

)

(0.20

)

 

 

(89

)

(7.6

)

(0.09

)

 

Total interest earning assets

$72,550

 

$583.5

3.25

%

 

$71,702

 

$581.8

3.23

%

 

$63,091

 

$574.1

3.67

%

 

$848

 

$1.7

 

0.02

 

%

 

$9,459

 

$9.4

 

(0.42

)

%

Allowance for credit losses - loan portfolio

(695

)

 

 

 

 

(719

)

 

 

 

 

(890

)

 

 

 

 

24

 

 

 

 

 

195

 

 

 

 

Allowance for credit losses - investment securities

(8

)

 

 

 

 

(9

)

 

 

 

 

(10

)

 

 

 

 

1

 

 

 

 

 

2

 

 

 

 

Other non-interest earning assets

3,782

 

 

 

 

 

3,844

 

 

 

 

 

3,895

 

 

 

 

 

(62

)

 

 

 

 

(113

)

 

 

 

Total average assets

$75,629

 

 

 

 

 

$74,818

 

 

 

 

 

$66,086

 

 

 

 

 

$811

 

 

 

 

 

$9,543

 

 

 

 

Liabilities and Stockholders' Equity:

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market

$28,289

 

$7.3

0.10

%

 

$28,205

 

$7.7

0.11

%

 

$22,674

 

$8.3

0.15

%

 

$84

 

$(0.4

)

(0.01

)

%

 

$5,615

 

$(1.0

)

(0.05

)

%

Savings

16,434

 

6.6

0.16

 

 

16,324

 

6.8

0.17

 

 

14,364

 

7.0

0.20

 

 

110

 

(0.2

)

(0.01

)

 

 

2,070

 

(0.4

)

(0.04

)

 

Time deposits

6,737

 

10.9

0.66

 

 

6,793

 

11.8

0.69

 

 

7,265

 

14.9

0.83

 

 

(56

)

(0.9

)

(0.03

)

 

 

(528

)

(4.0

)

(0.17

)

 

Total interest-bearing deposits

51,460

 

24.8

0.20

 

 

51,322

 

26.3

0.20

 

 

44,303

 

30.2

0.31

 

 

138

 

(1.5

)

-

 

 

 

7,157

 

(5.4

)

(0.11

)

 

Borrowings

1,105

 

10.6

3.87

 

 

1,163

 

11.6

4.01

 

 

1,344

 

14.1

4.23

 

 

(58

)

(1.0

)

(0.14

)

 

 

(239

)

(3.5

)

(0.36

)

 

Total interest-bearing liabilities

52,565

 

35.4

0.27

 

 

52,485

 

37.9

0.29

 

 

45,647

 

44.3

0.39

 

 

80

 

(2.5

)

(0.02

)

 

 

6,918

 

(8.9

)

(0.12

)

 

Net interest spread

 

 

2.98

%

 

 

 

2.94

%

 

 

 

3.28

%

 

 

 

0.04

 

%

 

 

 

(0.30

)

%

Non-interest bearing deposits

16,142

 

 

 

 

 

15,455

 

 

 

 

 

13,394

 

 

 

 

 

687

 

 

 

 

 

2,748

 

 

 

 

Other liabilities

939

 

 

 

 

 

917

 

 

 

 

 

1,351

 

 

 

 

 

22

 

 

 

 

 

(412

)

 

 

 

Stockholders' equity

5,983

 

 

 

 

 

5,961

 

 

 

 

 

5,694

 

 

 

 

 

22

 

 

 

 

 

289

 

 

 

 

Total average liabilities and stockholders' equity

$75,629

 

 

 

 

 

$74,818

 

 

 

 

 

$66,086

 

 

 

 

 

$811

 

 

 

 

 

$9,543

 

 

 

 

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

$548.1

3.05

%

 

 

$543.9

3.02

%

 

 

$529.8

3.39

%

 

 

$4.2

 

0.03

 

%

 

 

$18.3

 

(0.34

)

%

Taxable equivalent adjustment

53.8

 

 

 

 

42.6

 

 

 

 

50.7

 

 

 

 

11.2

 

 

 

 

 

3.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$494.3

2.75

%

 

 

$501.3

2.78

%

 

 

$479.1

3.07

%

 

 

($7.0

)

(0.03

)

%

 

 

$15.2

 

(0.32

)

%

Popular, Inc.

Financial Supplement to First Quarter 2022 Earnings Release

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

 
[THIS PAGE INTENTIONALLY LEFT BLANK]

 

Popular, Inc.

 

 

 

 

 

Financial Supplement to First Quarter 2022 Earnings Release

 

Table F - Mortgage Banking Activities and Other Service Fees

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Mortgage Banking Activities

 

 

 

 

 

 

Quarters ended

Variance

(In thousands)

31-Mar-22

31-Dec-21

31-Mar-21

Q1 2022

vs.Q4 2021

Q1 2022

vs.Q1 2021

Mortgage servicing fees, net of fair value adjustments:

 

 

 

 

 

Mortgage servicing fees

$9,323

 

$9,492

 

$9,715

 

$(169

)

$(392

)

Mortgage servicing rights fair value adjustments

1,088

 

1,500

 

512

 

(412

)

576

 

Total mortgage servicing fees, net of fair value adjustments

10,411

 

10,992

 

10,227

 

(581

)

184

 

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

(1,534

)

5,428

 

4,975

 

(6,962

)

(6,509

)

Trading account profit:

 

 

 

 

 

Unrealized gains on outstanding derivative positions

2

 

-

 

-

 

2

 

2

 

Realized gains on closed derivative positions

4,135

 

691

 

2,502

 

3,444

 

1,633

 

Total trading account profit

4,137

 

691

 

2,502

 

3,446

 

1,635

 

Losses on repurchased loans, including interest advances

(149

)

(76

)

(361

)

(73

)

212

 

Total mortgage banking activities

$12,865

 

$17,035

 

$17,343

 

$(4,170

)

$(4,478

)

 

 

 

 

 

 

 

 

 

Other Service Fees

 

 

 

 

 

 

 

 

 

Quarters ended

 

Variance

(In thousands)

31-Mar-22

 

31-Dec-21

 

31-Mar-21

 

Q1 2022

vs.Q4 2021

Q1 2022

vs.Q1 2021

Other service fees:

 

 

 

 

 

 

 

 

Debit card fees

$11,779

 

$12,392

 

$11,577

 

$(613

)

$202

 

Insurance fees

14,156

 

17,848

 

12,828

 

(3,692

)

1,328

 

Credit card fees

33,642

 

35,649

 

28,691

 

(2,007

)

4,951

 

Sale and administration of investment products

5,791

 

5,908

 

5,540

 

(117

)

251

 

Trust fees

5,927

 

5,858

 

5,842

 

69

 

85

 

Other fees

5,839

 

6,138

 

6,150

 

(299

)

(311

)

Total other service fees

$77,134

 

$83,793

 

$70,628

 

$(6,659

)

$6,506

 

Popular, Inc.

Financial Supplement to First Quarter 2022 Earnings Release

Table G - Loans and Deposits

(Unaudited)

 

 

 

 

 

 

 

 

 

Loans - Ending Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

31-Mar-22

 

31-Dec-21

 

31-Mar-21

 

Q1 2022

vs.Q4 2021

Q1 2022

vs.Q1 2021

Loans held-in-portfolio:

 

 

 

 

 

 

 

Commercial

$14,028,246

 

$13,732,701

 

$13,442,486

 

$295,545

 

$585,760

 

Construction

744,783

 

716,220

 

907,736

 

28,563

 

(162,953

)

Leasing

1,426,122

 

1,381,319

 

1,244,956

 

44,803

 

181,166

 

Mortgage

7,326,346

 

7,427,196

 

7,808,852

 

(100,850

)

(482,506

)

Auto

3,430,162

 

3,412,187

 

3,203,137

 

17,975

 

227,025

 

Consumer

2,632,531

 

2,570,934

 

2,524,461

 

61,597

 

108,070

 

Total loans held-in-portfolio

$29,588,190

 

$29,240,557

 

$29,131,628

 

$347,633

 

$456,562

 

Loans held-for-sale:

 

 

 

 

 

 

 

 

Commercial

$-

 

$-

 

$3,549

 

$-

 

$(3,549

)

Mortgage

55,150

 

59,168

 

80,665

 

(4,018

)

(25,515

)

Total loans held-for-sale

$55,150

 

$59,168

 

$84,214

 

$(4,018

)

$(29,064

)

Total loans

$29,643,340

 

$29,299,725

 

$29,215,842

 

$343,615

 

$427,498

 

Deposits - Ending Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

31-Mar-22

 

31-Dec-21

 

31-Mar-21

 

Q1 2022

vs. Q4 2021

Q1 2022 vs.

Q1 2021

Demand deposits [1]

$25,684,715

 

$25,889,732

 

$23,450,312

 

$(205,017

)

$2,234,403

 

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

29,318,333

 

33,674,134

 

27,356,136

 

(4,355,801

)

1,962,197

 

Savings, NOW and money market deposits (brokered)

768,558

 

729,073

 

679,832

 

39,485

 

88,726

 

Time deposits (non-brokered)

6,964,848

 

6,685,938

 

7,143,221

 

278,910

 

(178,373

)

Time deposits (brokered CDs)

125,841

 

26,211

 

113,300

 

99,630

 

12,541

 

Total deposits

$62,862,295

 

$67,005,088

 

$58,742,801

 

$(4,142,793

)

$4,119,494

 

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

 

 

 

 

 

 

 

Popular, Inc.

Financial Supplement to First Quarter 2022 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)

31-Mar-22

Puerto Rico

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

 

Accruing

(In thousands)

 

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

2,130

 

$

189

 

$

274

 

$

2,593

 

$

160,648

 

$

163,241

 

 

$

274

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

3,646

 

 

93

 

 

20,627

 

 

24,366

 

 

2,536,174

 

 

2,560,540

 

 

 

20,627

 

 

-

Owner occupied

 

 

4,024

 

 

50

 

 

49,732

 

 

53,806

 

 

1,396,696

 

 

1,450,502

 

 

 

49,732

 

 

-

Commercial and industrial

 

 

1,218

 

 

169

 

 

48,167

 

 

49,554

 

 

3,333,918

 

 

3,383,472

 

 

 

47,149

 

 

1,018

Construction

 

 

715

 

 

-

 

 

-

 

 

715

 

 

126,610

 

 

127,325

 

 

 

-

 

 

-

Mortgage

 

 

182,397

 

 

79,374

 

 

736,338

 

 

998,109

 

 

5,125,554

 

 

6,123,663

 

 

 

306,560

 

 

429,778

Leasing

 

 

9,819

 

 

2,446

 

 

3,766

 

 

16,031

 

 

1,410,091

 

 

1,426,122

 

 

 

3,766

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

5,817

 

 

3,728

 

 

9,049

 

 

18,594

 

 

896,966

 

 

915,560

 

 

 

-

 

 

9,049

Home equity lines of credit

 

 

-

 

 

-

 

 

23

 

 

23

 

 

3,093

 

 

3,116

 

 

 

-

 

 

23

Personal

 

 

10,215

 

 

6,184

 

 

19,157

 

 

35,556

 

 

1,267,920

 

 

1,303,476

 

 

 

19,157

 

 

-

Auto

 

 

51,497

 

 

11,353

 

 

27,514

 

 

90,364

 

 

3,339,798

 

 

3,430,162

 

 

 

27,514

 

 

-

Other

 

 

537

 

 

37

 

 

12,184

 

 

12,758

 

 

112,322

 

 

125,080

 

 

 

12,037

 

 

147

Total

 

$

272,015

 

$

103,623

 

$

926,831

 

$

1,302,469

 

$

19,709,790

 

$

21,012,259

 

 

$

486,816

 

$

440,015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Dec-21

Puerto Rico

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

 

Accruing

(In thousands)

 

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

314

 

$

-

 

$

272

 

$

586

 

$

154,183

 

$

154,769

 

 

$

272

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

2,399

 

 

136

 

 

20,716

 

 

23,251

 

 

2,266,672

 

 

2,289,923

 

 

 

20,716

 

 

-

Owner occupied

 

 

3,329

 

 

278

 

 

54,335

 

 

57,942

 

 

1,365,787

 

 

1,423,729

 

 

 

54,335

 

 

-

Commercial and industrial

 

 

3,438

 

 

1,727

 

 

45,242

 

 

50,407

 

 

3,478,041

 

 

3,528,448

 

 

 

44,724

 

 

518

Construction

 

 

-

 

 

-

 

 

485

 

 

485

 

 

86,626

 

 

87,111

 

 

 

485

 

 

-

Mortgage

 

 

217,830

 

 

81,754

 

 

805,245

 

 

1,104,829

 

 

5,147,037

 

 

6,251,866

 

 

 

333,887

 

 

471,358

Leasing

 

 

9,240

 

 

2,037

 

 

3,102

 

 

14,379

 

 

1,366,940

 

 

1,381,319

 

 

 

3,102

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

5,768

 

 

3,520

 

 

8,577

 

 

17,865

 

 

901,986

 

 

919,851

 

 

 

-

 

 

8,577

Home equity lines of credit

 

 

46

 

 

-

 

 

23

 

 

69

 

 

3,502

 

 

3,571

 

 

 

-

 

 

23

Personal

 

 

10,027

 

 

6,072

 

 

21,235

 

 

37,334

 

 

1,250,726

 

 

1,288,060

 

 

 

21,235

 

 

-

Auto

 

 

59,128

 

 

15,019

 

 

23,085

 

 

97,232

 

 

3,314,955

 

 

3,412,187

 

 

 

23,085

 

 

-

Other

 

 

432

 

 

714

 

 

12,621

 

 

13,767

 

 

110,781

 

 

124,548

 

 

 

12,448

 

 

173

Total

 

$

311,951

 

$

111,257

 

$

994,938

 

$

1,418,146

 

$

19,447,236

 

$

20,865,382

 

 

$

514,289

 

$

480,649

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

 

$

1,816

 

 

$

189

 

 

$

2

 

 

$

2,007

 

 

$

6,465

 

 

$

8,472

 

 

 

$

2

 

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

1,247

 

 

 

(43

)

 

 

(89

)

 

 

1,115

 

 

 

269,502

 

 

 

270,617

 

 

 

 

(89

)

 

 

-

 

Owner occupied

 

 

695

 

 

 

(228

)

 

 

(4,603

)

 

 

(4,136

)

 

 

30,909

 

 

 

26,773

 

 

 

 

(4,603

)

 

 

-

 

Commercial and industrial

 

 

(2,220

)

 

 

(1,558

)

 

 

2,925

 

 

 

(853

)

 

 

(144,123

)

 

 

(144,976

)

 

 

 

2,425

 

 

 

500

 

Construction

 

 

715

 

 

 

-

 

 

 

(485

)

 

 

230

 

 

 

39,984

 

 

 

40,214

 

 

 

 

(485

)

 

 

-

 

Mortgage

 

 

(35,433

)

 

 

(2,380

)

 

 

(68,907

)

 

 

(106,720

)

 

 

(21,483

)

 

 

(128,203

)

 

 

 

(27,327

)

 

 

(41,580

)

Leasing

 

 

579

 

 

 

409

 

 

 

664

 

 

 

1,652

 

 

 

43,151

 

 

 

44,803

 

 

 

 

664

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

49

 

 

 

208

 

 

 

472

 

 

 

729

 

 

 

(5,020

)

 

 

(4,291

)

 

 

 

-

 

 

 

472

 

Home equity lines of credit

 

 

(46

)

 

 

-

 

 

 

-

 

 

 

(46

)

 

 

(409

)

 

 

(455

)

 

 

 

-

 

 

 

-

 

Personal

 

 

188

 

 

 

112

 

 

 

(2,078

)

 

 

(1,778

)

 

 

17,194

 

 

 

15,416

 

 

 

 

(2,078

)

 

 

-

 

Auto

 

 

(7,631

)

 

 

(3,666

)

 

 

4,429

 

 

 

(6,868

)

 

 

24,843

 

 

 

17,975

 

 

 

 

4,429

 

 

 

-

 

Other

 

 

105

 

 

 

(677

)

 

 

(437

)

 

 

(1,009

)

 

 

1,541

 

 

 

532

 

 

 

 

(411

)

 

 

(26

)

Total

 

$

(39,936

)

 

$

(7,634

)

 

$

(68,107

)

 

$

(115,677

)

 

$

262,554

 

 

$

146,877

 

 

 

$

(27,473

)

 

$

(40,634

)

Popular, Inc.

Financial Supplement to First Quarter 2022 Earnings Release

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

(Unaudited)

31-Mar-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

 

$

-

 

$

-

 

$

-

 

$

-

 

$

1,865,623

 

$

1,865,623

 

 

$

-

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

902

 

 

740

 

 

374

 

 

2,016

 

 

1,391,874

 

 

1,393,890

 

 

 

374

 

 

-

Owner occupied

 

 

6,385

 

 

-

 

 

677

 

 

7,062

 

 

1,398,580

 

 

1,405,642

 

 

 

677

 

 

-

Commercial and industrial

 

 

10,925

 

 

602

 

 

4,891

 

 

16,418

 

 

1,788,918

 

 

1,805,336

 

 

 

4,352

 

 

539

Construction

 

 

-

 

 

-

 

 

-

 

 

-

 

 

617,458

 

 

617,458

 

 

 

-

 

 

-

Mortgage

 

 

13,006

 

 

1,069

 

 

21,826

 

 

35,901

 

 

1,166,782

 

 

1,202,683

 

 

 

21,826

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

26

 

 

26

 

 

 

-

 

 

-

Home equity lines of credit

 

 

259

 

 

15

 

 

5,248

 

 

5,522

 

 

68,437

 

 

73,959

 

 

 

5,248

 

 

-

Personal

 

 

739

 

 

558

 

 

627

 

 

1,924

 

 

203,381

 

 

205,305

 

 

 

627

 

 

-

Other

 

 

-

 

 

1

 

 

1

 

 

2

 

 

6,007

 

 

6,009

 

 

 

1

 

 

-

Total

 

$

32,216

 

$

2,985

 

$

33,644

 

$

68,845

 

$

8,507,086

 

$

8,575,931

 

 

$

33,105

 

$

539

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Dec-21

Popular U.S.

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

Accruing

(In thousands)

 

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

3,826

 

$

-

 

$

-

 

$

3,826

 

$

1,804,035

 

$

1,807,861

 

 

$

-

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

5,721

 

 

683

 

 

622

 

 

7,026

 

 

2,316,441

 

 

2,323,467

 

 

 

622

 

 

-

Owner occupied

 

 

1,095

 

 

-

 

 

1,013

 

 

2,108

 

 

392,265

 

 

394,373

 

 

 

1,013

 

 

-

Commercial and industrial

 

 

9,410

 

 

2,680

 

 

4,015

 

 

16,105

 

 

1,794,026

 

 

1,810,131

 

 

 

3,897

 

 

118

Construction

 

 

-

 

 

-

 

 

-

 

 

-

 

 

629,109

 

 

629,109

 

 

 

-

 

 

-

Mortgage

 

 

11,711

 

 

2,573

 

 

21,969

 

 

36,253

 

 

1,139,077

 

 

1,175,330

 

 

 

21,969

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

10

 

 

10

 

 

 

-

 

 

-

Home equity lines of credit

 

 

71

 

 

34

 

 

5,406

 

 

5,511

 

 

69,780

 

 

75,291

 

 

 

5,406

 

 

-

Personal

 

 

863

 

 

574

 

 

681

 

 

2,118

 

 

152,827

 

 

154,945

 

 

 

681

 

 

-

Other

 

 

-

 

 

-

 

 

-

 

 

-

 

 

4,658

 

 

4,658

 

 

 

-

 

 

-

Total

 

$

32,697

 

$

6,544

 

$

33,706

 

$

72,947

 

$

8,302,228

 

$

8,375,175

 

 

$

33,588

 

$

118

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

 

$

(3,826

)

 

$

-

 

 

$

-

 

 

$

(3,826

)

 

$

61,588

 

 

$

57,762

 

 

 

$

-

 

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

(4,819

)

 

 

57

 

 

 

(248

)

 

 

(5,010

)

 

 

(924,567

)

 

 

(929,577

)

 

 

 

(248

)

 

 

-

Owner occupied

 

 

5,290

 

 

 

-

 

 

 

(336

)

 

 

4,954

 

 

 

1,006,315

 

 

 

1,011,269

 

 

 

 

(336

)

 

 

-

Commercial and industrial

 

 

1,515

 

 

 

(2,078

)

 

 

876

 

 

 

313

 

 

 

(5,108

)

 

 

(4,795

)

 

 

 

455

 

 

 

421

Construction

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(11,651

)

 

 

(11,651

)

 

 

 

-

 

 

 

-

Mortgage

 

 

1,295

 

 

 

(1,504

)

 

 

(143

)

 

 

(352

)

 

 

27,705

 

 

 

27,353

 

 

 

 

(143

)

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

16

 

 

 

16

 

 

 

 

-

 

 

 

-

Home equity lines of credit

 

 

188

 

 

 

(19

)

 

 

(158

)

 

 

11

 

 

 

(1,343

)

 

 

(1,332

)

 

 

 

(158

)

 

 

-

Personal

 

 

(124

)

 

 

(16

)

 

 

(54

)

 

 

(194

)

 

 

50,554

 

 

 

50,360

 

 

 

 

(54

)

 

 

-

Other

 

 

-

 

 

 

1

 

 

 

1

 

 

 

2

 

 

 

1,349

 

 

 

1,351

 

 

 

 

1

 

 

 

-

Total

 

$

(481

)

 

$

(3,559

)

 

$

(62

)

 

$

(4,102

)

 

$

204,858

 

 

$

200,756

 

 

 

$

(483

)

 

$

421

Popular, Inc.

Financial Supplement to First Quarter 2022 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)

 

31-Mar-22

Popular, Inc.

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

Non-accrual

 

Accruing

(In thousands)

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

$

2,130

 

 

$

189

 

 

$

274

 

 

$

2,593

 

 

$

2,026,271

 

 

$

2,028,864

 

 

 

$

274

 

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

4,548

 

 

 

833

 

 

 

21,001

 

 

 

26,382

 

 

 

3,928,048

 

 

 

3,954,430

 

 

 

 

21,001

 

 

 

-

 

Owner occupied

 

10,409

 

 

 

50

 

 

 

50,409

 

 

 

60,868

 

 

 

2,795,276

 

 

 

2,856,144

 

 

 

 

50,409

 

 

 

-

 

Commercial and industrial

 

12,143

 

 

 

771

 

 

 

53,058

 

 

 

65,972

 

 

 

5,122,836

 

 

 

5,188,808

 

 

 

 

51,501

 

 

 

1,557

 

Construction

 

715

 

 

 

-

 

 

 

-

 

 

 

715

 

 

 

744,068

 

 

 

744,783

 

 

 

 

-

 

 

 

-

 

Mortgage

 

195,403

 

 

 

80,443

 

 

 

758,164

 

 

 

1,034,010

 

 

 

6,292,336

 

 

 

7,326,346

 

 

 

 

328,386

 

 

 

429,778

 

Leasing

 

9,819

 

 

 

2,446

 

 

 

3,766

 

 

 

16,031

 

 

 

1,410,091

 

 

 

1,426,122

 

 

 

 

3,766

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

5,817

 

 

 

3,728

 

 

 

9,049

 

 

 

18,594

 

 

 

896,992

 

 

 

915,586

 

 

 

 

-

 

 

 

9,049

 

Home equity lines of credit

 

259

 

 

 

15

 

 

 

5,271

 

 

 

5,545

 

 

 

71,530

 

 

 

77,075

 

 

 

 

5,248

 

 

 

23

 

Personal

 

10,954

 

 

 

6,742

 

 

 

19,784

 

 

 

37,480

 

 

 

1,471,301

 

 

 

1,508,781

 

 

 

 

19,784

 

 

 

-

 

Auto

 

51,497

 

 

 

11,353

 

 

 

27,514

 

 

 

90,364

 

 

 

3,339,798

 

 

 

3,430,162

 

 

 

 

27,514

 

 

 

-

 

Other

 

537

 

 

 

38

 

 

 

12,185

 

 

 

12,760

 

 

 

118,329

 

 

 

131,089

 

 

 

 

12,038

 

 

 

147

 

Total

$

304,231

 

 

$

106,608

 

 

$

960,475

 

 

$

1,371,314

 

 

$

28,216,876

 

 

$

29,588,190

 

 

 

$

519,921

 

 

$

440,554

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Dec-21

Popular, Inc.

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

Non-accrual

 

Accruing

(In thousands)

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

$

4,140

 

 

$

-

 

 

$

272

 

 

$

4,412

 

 

$

1,958,218

 

 

$

1,962,630

 

 

 

$

272

 

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

8,120

 

 

 

819

 

 

 

21,338

 

 

 

30,277

 

 

 

4,583,113

 

 

 

4,613,390

 

 

 

 

21,338

 

 

 

-

 

Owner occupied

 

4,424

 

 

 

278

 

 

 

55,348

 

 

 

60,050

 

 

 

1,758,052

 

 

 

1,818,102

 

 

 

 

55,348

 

 

 

-

 

Commercial and industrial

 

12,848

 

 

 

4,407

 

 

 

49,257

 

 

 

66,512

 

 

 

5,272,067

 

 

 

5,338,579

 

 

 

 

48,621

 

 

 

636

 

Construction

 

-

 

 

 

-

 

 

 

485

 

 

 

485

 

 

 

715,735

 

 

 

716,220

 

 

 

 

485

 

 

 

-

 

Mortgage

 

229,541

 

 

 

84,327

 

 

 

827,214

 

 

 

1,141,082

 

 

 

6,286,114

 

 

 

7,427,196

 

 

 

 

355,856

 

 

 

471,358

 

Leasing

 

9,240

 

 

 

2,037

 

 

 

3,102

 

 

 

14,379

 

 

 

1,366,940

 

 

 

1,381,319

 

 

 

 

3,102

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

5,768

 

 

 

3,520

 

 

 

8,577

 

 

 

17,865

 

 

 

901,996

 

 

 

919,861

 

 

 

 

-

 

 

 

8,577

 

Home equity lines of credit

 

117

 

 

 

34

 

 

 

5,429

 

 

 

5,580

 

 

 

73,282

 

 

 

78,862

 

 

 

 

5,406

 

 

 

23

 

Personal

 

10,890

 

 

 

6,646

 

 

 

21,916

 

 

 

39,452

 

 

 

1,403,553

 

 

 

1,443,005

 

 

 

 

21,916

 

 

 

-

 

Auto

 

59,128

 

 

 

15,019

 

 

 

23,085

 

 

 

97,232

 

 

 

3,314,955

 

 

 

3,412,187

 

 

 

 

23,085

 

 

 

-

 

Other

 

432

 

 

 

714

 

 

 

12,621

 

 

 

13,767

 

 

 

115,439

 

 

 

129,206

 

 

 

 

12,448

 

 

 

173

 

Total

$

344,648

 

 

$

117,801

 

 

$

1,028,644

 

 

$

1,491,093

 

 

$

27,749,464

 

 

$

29,240,557

 

 

 

$

547,877

 

 

$

480,767

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

(2,010

)

 

$

189

 

 

$

2

 

 

$

(1,819

)

 

$

68,053

 

 

$

66,234

 

 

 

$

2

 

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

(3,572

)

 

 

14

 

 

 

(337

)

 

 

(3,895

)

 

 

(655,065

)

 

 

(658,960

)

 

 

 

(337

)

 

 

-

 

Owner occupied

 

5,985

 

 

 

(228

)

 

 

(4,939

)

 

 

818

 

 

 

1,037,224

 

 

 

1,038,042

 

 

 

 

(4,939

)

 

 

-

 

Commercial and industrial

 

(705

)

 

 

(3,636

)

 

 

3,801

 

 

 

(540

)

 

 

(149,231

)

 

 

(149,771

)

 

 

 

2,880

 

 

 

921

 

Construction

 

715

 

 

 

-

 

 

 

(485

)

 

 

230

 

 

 

28,333

 

 

 

28,563

 

 

 

 

(485

)

 

 

-

 

Mortgage

 

(34,138

)

 

 

(3,884

)

 

 

(69,050

)

 

 

(107,072

)

 

 

6,222

 

 

 

(100,850

)

 

 

 

(27,470

)

 

 

(41,580

)

Leasing

 

579

 

 

 

409

 

 

 

664

 

 

 

1,652

 

 

 

43,151

 

 

 

44,803

 

 

 

 

664

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

49

 

 

 

208

 

 

 

472

 

 

 

729

 

 

 

(5,004

)

 

 

(4,275

)

 

 

 

-

 

 

 

472

 

Home equity lines of credit

 

142

 

 

 

(19

)

 

 

(158

)

 

 

(35

)

 

 

(1,752

)

 

 

(1,787

)

 

 

 

(158

)

 

 

-

 

Personal

 

64

 

 

 

96

 

 

 

(2,132

)

 

 

(1,972

)

 

 

67,748

 

 

 

65,776

 

 

 

 

(2,132

)

 

 

-

 

Auto

 

(7,631

)

 

 

(3,666

)

 

 

4,429

 

 

 

(6,868

)

 

 

24,843

 

 

 

17,975

 

 

 

 

4,429

 

 

 

-

 

Other

 

105

 

 

 

(676

)

 

 

(436

)

 

 

(1,007

)

 

 

2,890

 

 

 

1,883

 

 

 

 

(410

)

 

 

(26

)

Total

$

(40,417

)

 

$

(11,193

)

 

$

(68,169

)

 

$

(119,779

)

 

$

467,412

 

 

$

347,633

 

 

 

$

(27,956

)

 

$

(40,213

)

Popular, Inc.

Financial Supplement to First Quarter 2022 Earnings Release

Table K - Non-Performing Assets

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Variance

(Dollars in thousands)

31-Mar-22

As a % of

loans HIP by

category

 

31-Dec-21

As a % of

loans HIP by

category

 

31-Mar-21

As a % of

loans HIP by

category

 

Q1 2022 vs.

Q4 2021

Q1 2022 vs.

Q1 2021

Non-accrual loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$123,185

0.9

%

$125,579

0.9

%

$202,770

1.5

%

$(2,394

)

$(79,585

)

Construction

-

-

 

485

0.1

 

22,400

2.5

 

(485

)

(22,400

)

Leasing

3,766

0.3

 

3,102

0.2

 

3,040

0.2

 

664

 

726

 

Mortgage

328,386

4.5

 

355,856

4.8

 

405,574

5.2

 

(27,470

)

(77,188

)

Auto

27,514

0.8

 

23,085

0.7

 

15,405

0.5

 

4,429

 

12,109

 

Consumer

37,070

1.4

 

39,770

1.5

 

48,953

1.9

 

(2,700

)

(11,883

)

Total non-performing loans held-in-portfolio

519,921

1.8

%

547,877

1.9

%

698,142

2.4

%

(27,956

)

(178,221

)

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

-

 

 

-

 

 

3,549

 

 

-

 

(3,549

)

Other real estate owned (“OREO”)

90,567

 

 

85,077

 

 

72,060

 

 

5,490

 

18,507

 

Total non-performing assets

$610,488

 

 

$632,954

 

 

$773,751

 

 

$(22,466

)

$(163,263

)

Accruing loans past due 90 days or more [2]

$440,554

 

 

$480,767

 

 

$832,756

 

 

$(40,213

)

$(392,202

)

Ratios:

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets to total assets

0.88

%

 

0.84

%

 

1.16

%

 

 

 

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

1.76

 

 

1.87

 

 

2.40

 

 

 

 

Allowance for credit losses to loans held-in-portfolio

2.29

 

 

2.38

 

 

2.75

 

 

 

 

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

130.36

 

 

126.92

 

 

114.70

 

 

 

 

[1] There were no non-performing loans held-for-sale as of March 31, 2022 and December 31, 2021 (March 31, 2021 - $4 million in commercial loans).

[2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $13 million at March 31, 2022, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (December 31, 2021 - $13 million; March 31, 2021 - $29 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of BPPR with an offsetting liability. These balances include $266 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2022 (December 31, 2021 - $304 million; March 31, 2021 - $341 million). Furthermore, the Corporation has approximately $45 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (December 31, 2021 - $50 million; March 31, 2021 - $58 million).

Popular, Inc.

Financial Supplement to First Quarter 2022 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)