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Popular, Inc. Announces Second Quarter 2023 Financial Results

  • Net income of $151.2 million in Q2 2023, compared to net income of $159.0 million in Q1 2023.
  • Net interest margin of 3.14% in Q2 2023, compared to 3.22% in Q1 2023; net interest margin on a taxable equivalent basis of 3.29% in Q2 2023, compared to 3.46% in Q1 2023.
  • Credit Quality:
    • Non-performing loans held-in-portfolio (“NPLs”) decreased by $26.9 million from Q1 2023; NPLs to loans ratio at 1.2% vs. 1.3% in Q1 2023;
    • Net charge-offs (“NCOs”) decreased by $8.8 million from Q1 2023; annualized NCOs at 0.29% of average loans held-in-portfolio vs. 0.41% in Q1 2023;
    • Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.12% vs. 2.13% in Q1 2023; and
    • ACL to NPLs at 181.6% vs. 167.1% in Q1 2023.
  • Loans increased by $692.5 million and by $630.4 million in average quarterly balances, from Q1 2023.
  • Ending deposit balances increased by $3.1 billion and average quarterly balances increased by $1.0 billion, from Q1 2023.
  • Total borrowings at Q2 2023 were $1.4 billion, flat compared to Q1 2023.
  • Common Equity Tier 1 ratio of 16.87%, Common Equity per Share of $63.00 and Tangible Book Value per Share of $51.37 at June 30, 2023.

Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $151.2 million for the quarter ended June 30, 2023, compared to net income of $159.0 million for the quarter ended March 31, 2023.

Ignacio Alvarez, President and Chief Executive Officer, said: “Popular achieved another strong quarter, with net income of $151 million. We are particularly pleased by the growth in our loan portfolios, both in Puerto Rico and the United States, which allowed us to maintain our net interest income stable despite higher deposit costs. Our deposit base remained strong and well-diversified. Our results were further bolstered by positive credit quality trends and healthy non-interest income. We continued investing in areas such as people, regulatory compliance and technology, confident that they will contribute to our long-term success. We are encouraged by the resiliency of the U.S. economy and sustained economic activity in Puerto Rico. Our strong levels of capital and liquidity position us well to support such activity and serve the evolving needs of our growing customer base.”

Significant Events

Redemption of Senior Notes

On March 13, 2023, the Corporation issued $400 million aggregate principal amount of 7.25% Senior Notes due 2028 (the “2028 Notes”) in an underwritten public offering. On July 14, 2023, the Corporation announced that it will use a portion of the net proceeds of the 2028 Notes offering to redeem, on August 14, 2023, the outstanding $300 million aggregate principal amount of its 6.125% Senior Notes due September 2023. The redemption price will be equal to 100% of the principal amount plus accrued and unpaid interest through the redemption date.

Refer to Table I for further details of liquidity sources.

Earnings Highlights

(Unaudited)

Quarters ended

 

Six months ended

(Dollars in thousands, except per share information)

30-Jun-23

31-Mar-23

30-Jun-22

 

30-Jun-23

30-Jun-22

Net interest income

$531,668

 

$531,656

 

$533,862

 

 

$1,063,324

 

$1,028,174

 

Provision for credit losses (benefit)

37,192

 

47,637

 

9,362

 

 

84,829

 

(6,138

)

Net interest income after provision for credit losses

494,476

 

484,019

 

524,500

 

 

978,495

 

1,034,312

 

Other non-interest income

160,471

 

161,961

 

157,411

 

 

322,432

 

312,103

 

Operating expenses

460,284

 

440,687

 

406,278

 

 

900,971

 

808,617

 

Income before income tax

194,663

 

205,293

 

275,633

 

 

399,956

 

537,798

 

Income tax expense

43,503

 

46,314

 

64,212

 

 

89,817

 

114,691

 

Net income

$151,160

 

$158,979

 

$211,421

 

 

$310,139

 

$423,107

 

Net income applicable to common stock

$150,807

 

$158,626

 

$211,068

 

 

$309,433

 

$422,401

 

Net income per common share-basic

$2.10

 

$2.22

 

$2.77

 

 

$4.32

 

$5.46

 

Net income per common share-diluted

$2.10

$2.22

$2.77

 

$4.32

$5.46

 

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

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

Net interest income for the quarter ended June 30, 2023 was $531.7 million, flat over the previous quarter. Net interest income on a taxable equivalent basis for the second quarter of 2023 was $558.4 million compared to $570.4 million in the previous quarter, a decrease of $12.0 million. The decrease in the taxable equivalent net interest income is related to a lower volume of exempt investments and higher disallowed interest expense in the Puerto Rico tax computation. The latter results from the increase in the Corporation’s cost of deposits that is attributable to the tax-exempt income. Refer to the income taxes discussion for further information.

Net interest margin for the quarter was 3.14%, compared to 3.22% in the first quarter of 2023, a decrease of eight basis points. On a taxable equivalent basis, net interest margin for the second quarter of 2023 was 3.29%, compared to 3.46% for the prior quarter. The main variances in net interest income on a taxable equivalent basis were:

  • higher interest expense on deposits by $50.3 million due to the increase in rates, mainly from the increase in volume and cost of Puerto Rico government deposits, and a higher cost in most deposit categories in both Banco Popular de Puerto Rico (“BPPR”) and Popular Bank (“PB” or “Popular U.S. Operations”);

partially offset by:

  • higher interest income from loans by $30.4 million resulting from an increase in average loans by $635 million, reflecting increases in both BPPR and PB and across all major lending segments. Loan origination in a higher interest rate environment and the repricing of adjustable-rate loans resulted in a higher yield on loans by 18 basis points. The categories with the highest impact were commercial loans, which increased by $18.5 million in interest income, or 20 basis points, and consumer loans which increased by $5.6 million, or 36 basis points; and
  • higher interest income from investment securities, trading and money market investments by $12.6 million driven mainly by a higher volume of money market investments, which reflects a 50 basis points increase in yield related to the increase in the Federal funds rate, partially offset by a lower volume of investment securities.

Net interest income for the BPPR segment amounted to $453.1 million for the second quarter of 2023, $3.3 million higher than the first quarter of 2023. Net interest margin decreased three basis points to 3.21% compared to 3.24% in the first quarter of 2023. The decrease in net interest margin was due to a higher volume of deposits and to a shift in the mix of BPPR deposits towards higher yielding Puerto Rico government deposits. The increase in net interest income at the BPPR segment can be attributed to a higher volume of loans and overnight Fed funds reserves. Earning assets yield at the BPPR segment improved to 4.57%, an increase of 22 basis points from the prior quarter. The average volume of earning assets at the BPPR segment increased $521 million while the average volume of total deposits increased by $539 million, mainly P.R. public sector deposits. Public sector deposits were $1.2 billion higher on average than during Q1 2023 and were partially offset by decreases in commercial interest-bearing deposits. The cost of interest-bearing deposits at BPPR increased 34 basis points to 1.95% from 1.61% the previous quarter. The increase in the cost of deposits at BPPR was mainly impacted by the repricing of public funds. Total deposit costs in the second quarter of 2023 were 1.44%, compared to 1.18% in the quarter ended March 31, 2023, an increase of 26 basis points. Excluding the increase in public deposit costs, total commercial and retail deposits at BPPR increased by 14 basis points during the quarter.

Net interest income for PB was $87.5 million for the quarter ended June 30, 2023, compared to $90.1 million during the previous quarter, a decrease of $2.6 million. Net interest margin decreased by 33 basis points in the quarter to 3.01%, compared to 3.34% in the first quarter of 2023. The decrease in net interest margin was mostly driven by a higher cost of deposits, partially offset by a higher volume of loans and the repricing of adjustable-rate loans. The cost of interest-bearing deposits was 3.02%, compared to 2.47% during the first quarter of 2023, or an increase of 55 basis points, while total deposit cost was 2.55% compared to 2.01% in the previous quarter.

Non-interest income

Non-interest income amounted to $160.5 million for the quarter ended June 30, 2023, a decrease of $1.5 million when compared to $162.0 million for the quarter ended March 31, 2023. The main factors that contributed to the variance in non-interest income were:

  • lower income from mortgage banking activities by $5.1 million, mainly related to an unfavorable variance of $4.8 million related to the fair value adjustments of mortgage servicing rights (“MSRs”), including the impact of portfolio runoff; and
  • lower other operating income by $2.6 million mainly due to $7.0 million recognized in income during the first quarter of 2023 from successful insurance claim reimbursements related to prior period legal matters, partially offset by higher earnings from the portfolio of equity method investments;

partially offset by:

  • higher service charges on deposit accounts by $3.1 million, mainly due to $2.9 million in non-balance compensation fees related to cash management services on commercial customer accounts; and
  • higher other service fees by $4.2 million, mainly due to higher credit card and debit card fees due to higher volume of transactions and higher merchant acquiring fees from the revenue sharing agreement with Evertec Inc.

Refer to Table B for further details.

Operating expenses

Operating expenses for the second quarter of 2023 totaled $460.3 million, an increase of $19.6 million when compared to the first quarter of 2023. The variance in operating expenses was driven primarily by:

  • higher professional fees by $16.7 million mainly due to higher advisory services by $12.9 million related to corporate initiatives focused on regulatory, compliance and cyber security efforts, the impact of the grant in May 2023 of $1.9 million in directors’ share based payment, and an increase in audit fees by $1.1 million;
  • higher technology and software expenses by $3.8 million mainly due to an increase in information technology professional and consulting fees by $2.1 million and higher software amortization expense by $1.1 million;
  • higher processing and transactional services expenses by $3.9 million mainly due to broad based retail customers' debit card replacement costs incurred during the second quarter of 2023 of $3.4 million; and
  • higher business promotion expenses by $6.2 million mainly due to higher customer reward program expenses in our credit card business by $4.3 million and higher advertising and sponsorship expense by $1.8 million;

partially offset by:

  • lower personnel costs by $7.3 million, mainly due to a decrease in performance shares and restricted stock expenses by $4.8 million, and lower other compensation expenses by $5.0 million due to the impact of the minimum salary increase on vacations accruals and incentive payments adjustments, both recorded in the first quarter, and payroll taxes that are traditionally higher in the first quarter of the year; partially offset by an increase in health insurance costs by $2.3 million; and
  • lower FDIC deposit insurance expense by $2.1 million due to a decrease in the assessment rate driven by the adoption of the Financial Accounting Standards Board (‘’FASB’’) issued Accounting Standards Update (‘’ASU’’) 2022-02 during the first quarter of 2023, which eliminated the accounting guidance for trouble debt restructures (‘’TDRs’’).

Full-time equivalent employees were 9,124 as of June 30, 2023, compared to 8,975 as of March 31, 2023.

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

Income taxes

For the quarter ended June 30, 2023, the Corporation recorded an income tax expense of $43.5 million compared to an income tax expense of $46.3 million for the previous quarter. The favorable variance in income tax expense was mainly attributable to lower income before tax. The effective tax rate (“ETR”) for the second quarter of 2023 was 22.4% while the ETR for the first quarter was 22.6%.

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

Credit Quality

During the second quarter of 2023, the Corporation continued to reflect strong credit quality metrics with low levels of net charge offs (“NCOs”) and decreasing non-performing loans (“NPLs”). We continue to closely monitor changes in the macroeconomic environment and on borrower performance, given inflationary pressures and geopolitical risks. However, management believes that the improvement over recent years in the risk profile of the Corporation’s loan portfolios positions Popular to continue to operate successfully under the current environment.

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

  • At June 30, 2023, total non-performing loans held-in-portfolio decreased by $26.9 million from March 31, 2023. BPPR’s NPLs decreased by $26.6 million, mostly driven by lower mortgage NPLs by $29.9 million, in part offset by higher construction NPLs due to a single $9.3 million relationship. PB’s NPLs remained flat quarter-over-quarter. At June 30, 2023, the ratio of NPLs to total loans held-in-portfolio was 1.2%, compared to 1.3% in the first quarter of 2023.
  • Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $10.0 million quarter-over-quarter. In BPPR, total inflows decreased by $10.6 million, mainly driven by lower commercial and mortgage NPLs by $13.4 million and $6.5 million, respectively, in part offset by the abovementioned construction relationship inflow. PB inflows remained flat quarter-over-quarter.
  • NCOs amounted to $24.0 million, decreasing by $8.8 million when compared to the first quarter of 2023. BPPR’s NCOs decreased by $12.8 million quarter-over-quarter, mainly driven by lower consumer NCOs by $14.5 million, due to a $10.5 million line of credit charge-off in the prior quarter, coupled with lower auto loan NCOs by $4.7 million during the quarter. PB’s NCOs increased by $4.0 million due to a fully reserved commercial loan charged-off during the quarter. During the second quarter of 2023, the Corporation’s ratio of annualized NCOs to average loans held-in-portfolio was 0.29%, compared to 0.41% in the first quarter of 2023. Refer to Table O for further information on NCOs and related ratios.
  • At June 30, 2023, the allowance for credit losses (“ACL”) increased by $11.1 million from the first quarter of 2023 to $700.2 million. In BPPR and PB, the ACL increased by $9.1 million and $2.0 million, respectively. These increases were mostly driven by specific reserves for collateral dependent U.S. commercial and P.R. construction loans, changes in macroeconomic scenarios, higher loan volumes and migration of P.R. consumer credit scores, partially offset by changes in the assignments of probability weights to macroeconomic scenarios, as discussed below, and reductions in qualitative reserves.
  • 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. During the second quarter 2023, due to positive trends the Corporation lowered the probability weights assigned to the pessimistic scenario and increased the probability weight assigned to the baseline scenario, prompting a reserve release of $5.8 million. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario, and then the optimistic scenario.
  • The 2023 annualized GDP growth in the baseline scenario stands at 1.5% and 1.6% for Puerto Rico and the United States, respectively, compared to 2.1% and 1.3% in the previous quarter. The 2023 forecasted average unemployment rate for Puerto Rico improved to 6.3% from 6.9% in the previous forecast, while in the United States unemployment levels remained stable at 3.6%, compared to 3.5% in the previous forecast.
  • The Corporation’s ratio of the ACL to loans held-in-portfolio was 2.12% in the second quarter of 2023, compared to 2.13% in the previous quarter. The ratio of the ACL to NPLs held-in-portfolio stood at 181.6%, compared to 167.1% in the previous quarter.
  • The provision for credit losses for the loan portfolios for the second quarter of 2023 was an expense of $35.7 million, compared to an expense of $47.1 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 $28.4 million, compared to an expense of $45.2 million in the previous quarter, while the provision for PB was an expense of $7.3 million, compared to an expense of $1.9 million in the previous quarter.
  • The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations.

Non-Performing Assets

 

 

 

 

 

(Unaudited)

 

 

 

 

 

(In thousands)

30-Jun-23

 

31-Mar-23

 

30-Jun-22

Non-performing loans held-in-portfolio

$385,504

 

$412,383

 

$477,924

Other real estate owned (“OREO”)

86,216

 

91,721

 

92,137

Total non-performing assets

$471,720

 

$504,104

 

$570,061

Net charge-offs (recoveries) for the quarter

$23,990

 

$32,813

 

$6,073

 

 

 

 

 

 

 

Ratios:

 

 

 

 

 

Loans held-in-portfolio

$33,030,922

 

$32,338,373

 

$30,370,936

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

1.17%

 

1.28%

 

1.57%

Allowance for credit losses to loans held-in-portfolio

2.12

 

2.13

 

2.24

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

181.63

 

167.11

 

142.65

Refer to Table M for additional information.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Credit Losses (Benefit) - Loan Portfolios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Quarters ended

 

Six months ended

(In thousands)

 

30-Jun-23

 

31-Mar-23

 

30-Jun-22

 

30-Jun-23

30-Jun-22

Provision for credit losses (benefit) - loan portfolios:

 

 

 

 

 

 

 

 

 

BPPR

 

$28,379

 

$45,203

 

$9,128

 

$73,582

$(3,533)

Popular U.S.

 

7,282

 

1,943

 

733

 

9,225

(1,011)

Total provision for credit losses (benefit) - loan portfolios

 

$35,661

 

$47,146

 

$9,861

 

$82,807

$(4,544)

Credit Quality by Segment

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

(In thousands)

 

Quarters ended

BPPR

 

30-Jun-23

 

31-Mar-23

 

30-Jun-22

Provision for credit losses - loan portfolios

 

$28,379

 

$45,203

 

$9,128

Net charge-offs

 

18,687

 

31,464

 

5,332

Total non-performing loans held-in-portfolio

352,339

 

378,979

 

444,831

Allowance / loans held-in-portfolio

2.58%

 

2.57%

 

2.70%

Allowance / non-performing loans held-in-portfolio

169.19%

 

154.89%

 

130.52%

 

 

 

 

 

 

 

 

 

Quarters ended

Popular U.S.

 

30-Jun-23

 

31-Mar-23

 

30-Jun-22

Provision for credit losses - loan portfolios

 

$7,282

 

$1,943

 

$733

Net charge-offs

 

5,303

 

1,349

 

741

Total non-performing loans held-in-portfolio

 

33,165

 

33,404

 

33,093

Allowance / loans held-in-portfolio

1.05%

 

1.07%

 

1.14%

Allowance / non-performing loans held-in-portfolio

313.86%

 

305.69%

 

305.72%

Financial Condition Highlights

 

 

 

 

 

 

 

 

(Unaudited)

(In thousands)

 

 

30-Jun-23

 

31-Mar-23

 

30-Jun-22

Cash and money market investments

 

 

$9,070,118

 

$6,560,301

 

$10,215,946

Investment securities

 

 

25,874,316

 

25,951,936

 

28,138,453

Loans

 

 

33,030,922

 

32,338,373

 

30,370,936

Total assets

 

 

70,838,266

 

67,675,759

 

71,501,931

Deposits

 

 

64,004,818

 

60,953,888

 

65,327,664

Borrowings

 

 

1,427,254

 

1,402,626

 

959,135

Total liabilities

 

 

66,273,257

 

63,205,034

 

67,208,582

Stockholders’ equity

 

 

4,565,009

 

4,470,725

 

4,293,349

Total assets amounted to $70.8 billion at June 30, 2023, an increase of $3.2 billion from the first quarter of 2023, driven by:

  • an increase in overnight FED fund balances of $2.5 billion, mainly due to higher deposits as discussed below;
  • an increase in securities available-for-sale (“AFS”) of $69.1 million, mainly due to a net increase of $333.2 million in U.S. Treasury Securities balances, offset by repayment and maturities of mortgage-backed securities and collateralized mortgage obligations and higher unrealized losses in the portfolio; and
  • an increase in loans held-in-portfolio of $692.5 million reflected across all portfolios in BPPR, net of a transfer to held for sale of a $45.9 million private label credit card portfolio, and an increase in commercial and construction loans at PB, offset in part by a decrease in its mortgage and consumer loans portfolio;

partially offset by:

  • a decrease in securities held-to-maturity (“HTM”) of $151.8 million driven by a decrease of $200.0 million in U.S. Treasury securities as a result of maturities, partially offset by the amortization of $42.9 million of the discount related to U.S. Treasury securities previously reclassified from the available-for-sale to HTM, which has an offsetting unrealized loss included within other comprehensive income that is also being accreted, resulting in a neutral effect to earnings.

Total liabilities increased by $3.1 billion from the first quarter of 2023, driven by:

  • an increase of $3.1 billion in deposits, mainly in Puerto Rico public sector accounts and time deposits and savings accounts at PB, partially offset by a decrease in non-interest bearing deposits.

Stockholders' equity increased by $94.3 million from the first quarter of 2023, principally due to net income for the quarter of $151.2 million and the amortization of the unrealized losses from the securities reclassified to HTM of $34.3 million, partially offset by the after-tax impact of the increase in net unrealized losses in the portfolio of AFS securities of $69.9 million and dividends to common stockholders during the quarter.

Common Equity Tier - 1 ratio (“CET1”), common equity per share and tangible book value per share were 16.87%, $63.00 and $51.37, respectively, at June 30, 2023, compared to 16.73%, $61.82 and $50.15 at March 31, 2023. Refer to Table A for capital ratios.

During the second quarter of 2023, the Corporation’s available liquidity increased to $20.1 billion from $18.3 billion on March 31, 2023. Refer to Table I for additional information on the Corporation’s liquidity sources.

Cautionary Note Regarding Forward-Looking Statements

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

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

About Popular, Inc.

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

Conference Call

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

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-833-470-1428 (Toll Free) or 1-404-975-4839 (Local). The dial-in access code is 974981.

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, August 25, 2023. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 254603.

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

Popular, Inc.

Financial Supplement to Second Quarter 2023 Earnings Release

 

Table A - Selected Ratios and Other Information

 

Table B - Consolidated Statement of Operations

 

Table C - Consolidated Statement of Financial Condition

 

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

 

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

 

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

 

Table G - Mortgage Banking Activities and Other Service Fees

 

Table H - Loans and Deposits

 

Table I - Liquidity Sources, Deposits and Borrowings

 

Table J - Loan Delinquency - BPPR Operations

 

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

 

Table L - Loan Delinquency - Consolidated

 

Table M - Non-Performing Assets

 

Table N - Activity in Non-Performing Loans

 

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

 

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

 

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

 

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

 

Table S - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to Second Quarter 2023 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

 

 

 

 

 

Quarters ended

Six months ended

 

30-Jun-23

31-Mar-23

30-Jun-22

30-Jun-23

30-Jun-22

Basic EPS

$2.10

$2.22

$2.77

$4.32

$5.46

Diluted EPS

$2.10

$2.22

$2.77

$4.32

$5.46

Average common shares outstanding

71,690,396

71,541,778

76,171,784

71,616,498

77,301,469

Average common shares outstanding - assuming dilution

71,709,203

71,606,196

76,286,883

71,664,303

77,426,274

Common shares outstanding at end of period

72,103,969

71,965,984

76,576,397

72,103,969

76,576,397

Market value per common share

$60.52

$57.41

$76.93

$60.52

$76.93

Market capitalization - (In millions)

$4,364

$4,132

$5,891

$4,364

$5,891

Return on average assets

0.85%

0.93%

1.17%

0.89%

1.15%

Return on average common equity

9.26%

10.00%

14.58%

9.63%

14.48%

Net interest margin (non-taxable equivalent basis)

3.14%

3.22%

3.09%

3.18%

2.92%

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

3.29%

3.46%

3.45%

3.37%

3.24%

Common equity per share

$63.00

$61.82

$55.78

$63.00

$55.78

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

$51.37

$50.15

$46.18

$51.37

$46.18

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

5.29%

5.40%

5.00%

5.29%

5.00%

Return on average tangible common equity [1]

10.63%

11.51%

16.70%

11.06%

16.55%

Tier 1 capital

16.93%

16.79%

16.46%

16.93%

16.46%

Total capital

18.74%

18.61%

18.29%

18.74%

18.29%

Tier 1 leverage

8.40%

8.37%

7.56%

8.40%

7.56%

Common Equity Tier 1 capital

16.87%

16.73%

16.39%

16.87%

16.39%

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

POPULAR, INC.

Financial Supplement to Second Quarter 2023 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

 

Quarters ended

Variance

Quarter ended

Variance

Six months ended

 

 

 

Q2 2023

 

Q2 2023

 

 

(In thousands, except per share information)

30-Jun-23

31-Mar-23

vs. Q1 2023

30-Jun-22

vs. Q2 2022

30-Jun-23

30-Jun-22

Interest income:

 

 

 

 

 

 

 

Loans

$570,120

$541,210

$28,910

$446,245

$123,875

$1,111,330

$873,036

Money market investments

100,775

65,724

35,051

23,742

77,033

166,499

30,206

Investment securities

123,112

132,088

(8,976)

101,774

21,338

255,200

198,240

Total interest income

794,007

739,022

54,985

571,761

222,246

1,533,029

1,101,482

Interest expense:

 

 

 

 

 

 

 

Deposits

243,488

193,215

50,273

27,827

215,661

436,703

52,610

Short-term borrowings

1,624

2,885

(1,261)

248

1,376

4,509

328

Long-term debt

17,227

11,266

5,961

9,824

7,403

28,493

20,370

Total interest expense

262,339

207,366

54,973

37,899

224,440

469,705

73,308

Net interest income

531,668

531,656

12

533,862

(2,194)

1,063,324

1,028,174

Provision for credit losses (benefit)

37,192

47,637

(10,445)

9,362

27,830

84,829

(6,138)

Net interest income after provision for credit losses (benefit)

494,476

484,019

10,457

524,500

(30,024)

978,495

1,034,312

Service charges on deposit accounts

37,781

34,678

3,103

41,809

(4,028)

72,459

82,522

Other service fees

94,265

90,076

4,189

81,451

12,814

184,341

158,585

Mortgage banking activities

2,316

7,400

(5,084)

13,575

(11,259)

9,716

26,440

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

1,384

1,100

284

(4,109)

5,493

2,484

(6,203)

Net gain (loss) on trading account debt securities

35

378

(343)

51

(16)

413

(672)

Adjustments to indemnity reserves on loans sold

(456)

612

(1,068)

170

(626)

156

(575)

Other operating income

25,146

27,717

(2,571)

24,464

682

52,863

52,006

Total non-interest income

160,471

161,961

(1,490)

157,411

3,060

322,432

312,103

Operating expenses:

 

 

 

 

 

 

 

Personnel costs

 

 

 

 

 

 

 

Salaries

124,901

125,393

(492)

101,847

23,054

250,294

200,520

Commissions, incentives and other bonuses

27,193

31,162

(3,969)

38,589

(11,396)

58,355

74,110

Pension, postretirement and medical insurance

17,508

15,378

2,130

13,730

3,778

32,886

26,513

Other personnel costs, including payroll taxes

21,866

26,827

(4,961)

14,622

7,244

48,693

34,641

Total personnel costs

191,468

198,760

(7,292)

168,788

22,680

390,228

335,784

Net occupancy expenses

27,165

26,039

1,126

26,214

951

53,204

50,937

Equipment expenses

9,561

8,412

1,149

8,674

887

17,973

17,063

Other taxes

16,409

16,291

118

15,780

629

32,700

31,495

Professional fees

50,132

33,431

16,701

38,430

11,702

83,563

75,222

Technology and software expenses

72,354

68,559

3,795

74,761

(2,407)

140,913

145,296

Processing and transactional services

 

 

 

 

 

 

 

Credit and debit cards

11,584

12,550

(966)

10,173

1,411

24,134

21,645

Other processing and transactional services

25,217

21,359

3,858

20,864

4,353

46,576

40,345

Total processing and transactional services

36,801

33,909

2,892

31,037

5,764

70,710

61,990

Communications

4,175

4,088

87

3,497

678

8,263

7,170

Business promotion

 

 

 

 

 

 

 

Rewards and customer loyalty programs

16,626

12,348

4,278

13,929

2,697

28,974

23,950

Other business promotion

8,457

6,523

1,934

7,424

1,033

14,980

12,486

Total business promotion

25,083

18,871

6,212

21,353

3,730

43,954

36,436

FDIC deposit insurance

6,803

8,865

(2,062)

6,463

340

15,668

13,835

Other real estate owned (OREO) income

(3,314)

(1,694)

(1,620)

(7,806)

4,492

(5,008)

(10,519)

Other operating expenses

 

 

 

 

 

 

 

Operational losses

4,280

6,800

(2,520)

4,061

219

11,080

15,886

All other

18,572

17,561

1,011

14,231

4,341

36,133

26,336

Total other operating expenses

22,852

24,361

(1,509)

18,292

4,560

47,213

42,222

Amortization of intangibles

795

795

-

795

-

1,590

1,686

Total operating expenses

460,284

440,687

19,597

406,278

54,006

900,971

808,617

Income before income tax

194,663

205,293

(10,630)

275,633

(80,970)

399,956

537,798

Income tax expense

43,503

46,314

(2,811)

64,212

(20,709)

89,817

114,691

Net income

$151,160

$158,979

$(7,819)

$211,421

$(60,261)

$310,139

$423,107

Net income applicable to common stock

$150,807

$158,626

$(7,819)

$211,068

$(60,261)

$309,433

$422,401

Net income per common share - basic

$2.10

$2.22

$(0.12)

$2.77

$(0.67)

$4.32

$5.46

Net income per common share - diluted

$2.10

$2.22

$(0.12)

$2.77

$(0.67)

$4.32

$5.46

Dividends Declared per Common Share

$0.55

$0.55

$-

$0.55

$-

$1.10

$1.10

Popular, Inc.

Financial Supplement to Second Quarter 2023 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

 

 

 

 

Variance

 

 

 

 

Q2 2023 vs.

(In thousands)

30-Jun-23

31-Mar-23

30-Jun-22

Q1 2023

Assets:

 

 

 

 

Cash and due from banks

$476,642

 

$462,013

 

$528,590

 

$14,629

 

Money market investments

8,593,476

 

6,098,288

 

9,687,356

 

2,495,188

 

Trading account debt securities, at fair value

29,160

 

29,839

 

32,317

 

(679

)

Debt securities available-for-sale, at fair value

17,242,217

 

17,173,128

 

26,266,251

 

69,089

 

Debt securities held-to-maturity, at amortized cost

8,410,566

 

8,563,052

 

1,664,015

 

(152,486

)

Less: Allowance for credit losses

6,145

 

6,792

 

7,495

 

(647

)

Total debt securities held-to-maturity, net

8,404,421

 

8,556,260

 

1,656,520

 

(151,839

)

Equity securities

192,373

 

185,917

 

175,870

 

6,456

 

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

55,421

 

11,181

 

28,546

 

44,240

 

Loans held-in-portfolio

33,354,999

 

32,645,023

 

30,643,443

 

709,976

 

Less: Unearned income

324,077

 

306,650

 

272,507

 

17,427

 

Allowance for credit losses

700,200

 

689,120

 

681,750

 

11,080

 

Total loans held-in-portfolio, net

32,330,722

 

31,649,253

 

29,689,186

 

681,469

 

Premises and equipment, net

523,927

 

508,007

 

490,152

 

15,920

 

Other real estate

86,216

 

91,721

 

92,137

 

(5,505

)

Accrued income receivable

239,998

 

239,815

 

216,780

 

183

 

Mortgage servicing rights, at fair value

121,249

 

127,475

 

129,877

 

(6,226

)

Other assets

1,703,662

 

1,703,285

 

1,773,523

 

377

 

Goodwill

827,428

 

827,428

 

720,293

 

-

 

Other intangible assets

11,354

 

12,149

 

14,533

 

(795

)

Total assets

$70,838,266

 

$67,675,759

 

$71,501,931

 

$3,162,507

 

Liabilities and Stockholders’ Equity:

 

 

 

 

Liabilities:

 

 

 

 

Deposits:

 

 

 

 

Non-interest bearing

$15,316,552

 

$15,940,850

 

$16,663,259

 

$(624,298

)

Interest bearing

48,688,266

 

45,013,038

 

48,664,405

 

3,675,228

 

Total deposits

64,004,818

 

60,953,888

 

65,327,664

 

3,050,930

 

Assets sold under agreements to repurchase

123,205

 

123,499

 

70,925

 

(294

)

Notes payable

1,304,049

 

1,279,127

 

888,210

 

24,922

 

Other liabilities

841,185

 

848,520

 

921,783

 

(7,335

)

Total liabilities

66,273,257

 

63,205,034

 

67,208,582

 

3,068,223

 

Stockholders’ equity:

 

 

 

 

Preferred stock

22,143

 

22,143

 

22,143

 

-

 

Common stock

1,047

 

1,047

 

1,046

 

-

 

Surplus

4,795,581

 

4,792,619

 

4,576,478

 

2,962

 

Retained earnings

4,093,284

 

3,982,140

 

3,311,951

 

111,144

 

Treasury stock

(2,018,611

)

(2,025,399

)

(1,665,253

)

6,788

 

Accumulated other comprehensive loss, net of tax

(2,328,435

)

(2,301,825

)

(1,953,016

)

(26,610

)

Total stockholders’ equity

4,565,009

 

4,470,725

 

4,293,349

 

94,284

 

Total liabilities and stockholders’ equity

$70,838,266

 

$67,675,759

 

$71,501,931

 

$3,162,507

 

Popular, Inc.

Financial Supplement to Second Quarter 2023 Earnings Release

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

For the quarters ended June 30, 2023 and March 31, 2023

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

 

Average Volume

 

Average Yields / Costs

 

 

Interest

 

Attributable to

 

 

30-Jun-23

 

31-Mar-23

Variance

 

30-Jun-23

 

31-Mar-23

 

Variance

 

 

 

 

30-Jun-23

 

31-Mar-23

 

Variance

 

Rate

 

Volume

 

(In millions)

 

 

 

 

 

 

 

 

 

(In thousands)

$

7,851

$

5,736

$

2,115

 

 

5.15

%

4.65

%

0.50

 

%

 

Money market investments

$

100,776

$

65,724

$

35,052

 

$

8,626

 

$

26,426

 

 

27,362

 

28,862

 

(1,500

)

 

2.00

 

2.22

 

(0.22

)

 

 

Investment securities [1]

 

136,408

 

158,914

 

(22,506

)

 

(14,842

)

 

(7,664

)

 

32

 

31

 

1

 

 

4.65

 

4.47

 

0.18

 

 

 

Trading securities

 

370

 

338

 

32

 

 

18

 

 

14

 

 

35,245

 

34,629

 

616

 

 

2.70

 

2.63

 

0.07

 

 

 

Total money market, investment and trading securities

 

237,554

 

224,976

 

12,578

 

 

(6,198

)

 

18,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

16,237

 

15,761

 

476

 

 

6.52

 

6.32

 

0.20

 

 

 

Commercial

 

263,934

 

245,469

 

18,465

 

 

10,915

 

 

7,550

 

 

737

 

732

 

5

 

 

8.95

 

8.40

 

0.55

 

 

 

Construction

 

16,442

 

15,155

 

1,287

 

 

1,187

 

 

100

 

 

1,632

 

1,588

 

44

 

 

6.30

 

6.12

 

0.18

 

 

 

Leasing

 

25,711

 

24,282

 

1,429

 

 

756

 

 

673

 

 

7,409

 

7,388

 

21

 

 

5.47

 

5.46

 

0.01

 

 

 

Mortgage

 

101,304

 

100,773

 

531

 

 

243

 

 

288

 

 

3,075

 

3,020

 

55

 

 

13.21

 

12.85

 

0.36

 

 

 

Consumer

 

101,295

 

95,715

 

5,580

 

 

3,684

 

 

1,896

 

 

3,593

 

3,559

 

34

 

 

8.31

 

8.14

 

0.17

 

 

 

Auto

 

74,467

 

71,407

 

3,060

 

 

2,378

 

 

682

 

 

32,683

 

32,048

 

635

 

 

7.15

 

6.97

 

0.18

 

 

 

Total loans

 

583,153

 

552,801

 

30,352

 

 

19,163

 

 

11,189

 

$

67,928

$

66,677

$

1,251

 

 

4.84

%

4.72

%

0.12

 

%

 

Total earning assets

$

820,707

$

777,777

$

42,930

 

$

12,965

 

$

29,965

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

$

24,230

$

23,313

$

917

 

 

2.91

%

2.52

%

0.39

 

%

 

NOW and money market [2]

$

175,640

$

144,970

$

30,670

 

$

22,412

 

$

8,258

 

 

14,763

 

15,029

 

(266

)

 

0.66

 

0.47

 

0.19

 

 

 

Savings

 

24,446

 

17,443

 

7,003

 

 

7,461

 

 

(458

)

 

7,715

 

7,099

 

616

 

 

2.26

 

1.76

 

0.50

 

 

 

Time deposits

 

43,402

 

30,802

 

12,600

 

 

8,255

 

 

4,345

 

 

46,708

 

45,441

 

1,267

 

 

2.09

 

1.72

 

0.37

 

 

 

Total interest bearing deposits

 

243,488

 

193,215

 

50,273

 

 

38,128

 

 

12,145

 

 

15,480

 

15,704

 

(224

)

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

 

 

 

 

 

 

 

 

 

62,188

 

61,145

 

1,043

 

 

1.57

 

1.28

 

0.29

 

 

 

Total deposits

 

243,488

 

193,215

 

50,273

 

 

38,128

 

 

12,145

 

 

125

 

247

 

(122

)

 

5.19

 

4.74

 

0.45

 

 

 

Short-term borrowings

 

1,624

 

2,885

 

(1,261

)

 

341

 

 

(1,602

)

 

1,299

 

947

 

352

 

 

5.33

 

4.78

 

0.55

 

 

 

Other medium and long-term debt

 

17,227

 

11,266

 

5,961

 

 

(372

)

 

6,333

 

 

48,132

 

46,635

 

1,497

 

 

2.19

 

1.80

 

0.39

 

 

 

Total interest bearing liabilities (excluding demand deposits)

 

262,339

 

207,366

 

54,973

 

 

38,097

 

 

16,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,316

 

4,338

 

(22

)

 

 

 

 

 

 

 

 

Other sources of funds

 

 

 

 

 

 

 

 

 

 

$

67,928

$

66,677

$

1,251

 

 

1.55

%

1.26

%

0.29

 

%

 

Total source of funds

 

262,339

 

207,366

 

54,973

 

 

38,097

 

 

16,876

 

 

 

 

 

 

 

3.29

%

3.46

%

(0.17

)

%

 

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

 

558,368

 

570,411

 

(12,043

)

$

(25,132

)

$

13,089

 

 

 

 

 

 

 

 

2.65

%

2.92

%

(0.27

)

%

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent adjustment

 

26,700

 

38,755

 

(12,055

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin/ income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.14

%

3.22

%

(0.08

)

%

 

non-taxable equivalent basis (GAAP)

$

531,668

$

531,656

$

12

 

 

 

 

 

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

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

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

Popular, Inc.

Financial Supplement to Second Quarter 2023 Earnings Release

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

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

 

Average Volume

 

Average Yields / Costs

 

 

Interest

 

Attributable to

 

30-Jun-23

 

30-Jun-22

Variance

 

30-Jun-23

 

30-Jun-22

 

Variance

 

 

 

 

30-Jun-23

 

30-Jun-22

 

Variance

 

Rate

 

Volume

 

(In millions)

 

 

 

 

 

 

 

 

 

(In thousands)

$

7,851

$

11,513

$

(3,662

)

 

5.15

%

0.83

%

4.32

 

%

 

Money market investments

$

100,776

$

23,742

$

77,034

 

$

86,849

 

$

(9,815

)

 

27,362

 

27,748

 

(386

)

 

2.00

 

2.18

 

(0.18

)

 

 

Investment securities [1]

 

136,408

 

150,890

 

(14,482

)

 

(12,105

)

 

(2,377

)

 

32

 

65

 

(33

)

 

4.65

 

6.66

 

(2.01

)

 

 

Trading securities

 

370

 

1,089

 

(719

)

 

(266

)

 

(453

)

 

35,245

 

39,326

 

(4,081

)

 

2.70

 

1.79

 

0.91

 

 

 

Total money market, investment and trading securities

 

237,554

 

175,721

 

61,833

 

 

74,478

 

 

(12,645

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

16,237

 

14,227

 

2,010

 

 

6.52

 

5.16

 

1.36

 

 

 

Commercial

 

263,934

 

183,042

 

80,892

 

 

52,659

 

 

28,233

 

 

737

 

781

 

(44

)

 

8.95

 

5.71

 

3.24

 

 

 

Construction

 

16,442

 

11,116

 

5,326

 

 

5,997

 

 

(671

)

 

1,632

 

1,445

 

187

 

 

6.30

 

5.91

 

0.39

 

 

 

Leasing

 

25,711

 

21,352

 

4,359

 

 

1,473

 

 

2,886

 

 

7,409

 

7,294

 

115

 

 

5.47

 

5.33

 

0.14

 

 

 

Mortgage

 

101,304

 

97,137

 

4,167

 

 

2,621

 

 

1,546

 

 

3,075

 

2,654

 

421

 

 

13.21

 

11.33

 

1.88

 

 

 

Consumer

 

101,295

 

74,932

 

26,363

 

 

13,174

 

 

13,189

 

 

3,593

 

3,499

 

94

 

 

8.31

 

8.04

 

0.27

 

 

 

Auto

 

74,467

 

70,145

 

4,322

 

 

2,414

 

 

1,908

 

 

32,683

 

29,900

 

2,783

 

 

7.15

 

6.14

 

1.01

 

 

 

Total loans

 

583,153

 

457,724

 

125,429

 

 

78,338

 

 

47,091

 

$

67,928

$

69,226

$

(1,298

)

 

4.84

%

3.67

%

1.17

 

%

 

Total earning assets

$

820,707

$

633,445

$

187,262

 

$

152,816

 

$

34,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

$

24,230

$

24,897

$

(667

)

 

2.91

%

0.13

%

2.78

 

%

 

NOW and money market [2]

$

175,640

$

8,301

$

167,339

 

$

168,466

 

$

(1,127

)

 

14,763

 

16,363

 

(1,600

)

 

0.66

 

0.17

 

0.49

 

 

 

Savings

 

24,446

 

6,901

 

17,545

 

 

19,301

 

 

(1,756

)

 

7,715

 

7,044

 

671

 

 

2.26

 

0.72

 

1.54

 

 

 

Time deposits

 

43,402

 

12,625

 

30,777

 

 

25,715

 

 

5,062

 

 

46,708

 

48,304

 

(1,596

)

 

2.09

 

0.23

 

1.86

 

 

 

Total interest bearing deposits

 

243,488

 

27,827

 

215,661

 

 

213,482

 

 

2,179

 

 

15,480

 

16,254

 

(774

)

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

 

 

 

 

 

 

 

 

 

62,188

 

64,558

 

(2,370

)

 

1.57

 

0.17

 

1.40

 

 

 

Total deposits

 

243,488

 

27,827

 

215,661

 

 

213,482

 

 

2,179

 

 

125

 

126

 

(1

)

 

5.19

 

0.79

 

4.40

 

 

 

Short-term borrowings

 

1,624

 

248

 

1,376

 

 

1,420

 

 

(44

)

 

1,299

 

917

 

382

 

 

5.33

 

4.30

 

1.03

 

 

 

Other medium and long-term debt

 

17,227

 

9,824

 

7,403

 

 

513

 

 

6,890

 

 

48,132

 

49,347

 

(1,215

)

 

2.19

 

0.31

 

1.88

 

 

 

Total interest bearing liabilities (excluding demand deposits)

 

262,339

 

37,899

 

224,440

 

 

215,415

 

 

9,025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,316

 

3,625

 

691

 

 

 

 

 

 

 

 

 

Other sources of funds

 

 

 

 

 

 

 

 

 

 

$

67,928

$

69,226

$

(1,298

)

 

1.55

%

0.22

%

1.33

 

%

 

Total source of funds

 

262,339

 

37,899

 

224,440

 

 

215,415

 

 

9,025

 

 

 

 

 

 

 

3.29

%

3.45

%

(0.16

)

%

 

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

 

558,368

 

595,546

 

(37,178

)

$

(62,599

)

$

25,421

 

 

 

 

 

 

 

 

2.65

%

3.36

%

(0.71

)

%

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent adjustment

 

26,700

 

61,684

 

(34,984

)

 

 

 

 

 

 

 

 

 

 

 

3.14

%

3.09

%

0.05

 

%

 

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

$

531,668

$

533,862

$

(2,194

)

 

 

 

 

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

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

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

Popular, Inc.

Financial Supplement to Second Quarter 2023 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

 

Average Volume

 

Average Yields / Costs

 

 

Interest

 

Attributable to

 

30-Jun-23

 

30-Jun-22

Variance

 

30-Jun-23

 

30-Jun-22

 

Variance

 

 

 

 

30-Jun-23

 

30-Jun-22

 

Variance

 

Rate

 

Volume

 

(In millions)

 

 

 

 

 

 

 

 

 

(In thousands)

$

6,800

$

13,129

$

(6,329

)

 

4.94

%

0.46

%

4.48

 

%

 

Money market investments

$

166,500

$

30,206

$

136,294

 

$

157,542

 

$

(21,248

)

 

28,108

 

28,107

 

1

 

 

2.11

 

2.06

 

0.05

 

 

 

Investment securities [1]

 

295,322

 

288,241

 

7,081

 

 

8,948

 

 

(1,867

)

 

31

 

68

 

(37

)

 

4.56

 

6.27

 

(1.71

)

 

 

Trading securities

 

708

 

2,107

 

(1,399

)

 

(470

)

 

(929

)

 

34,939

 

41,304

 

(6,365

)

 

2.67

 

1.56

 

1.11

 

 

 

Total money market, investment and trading securities

 

462,530

 

320,554

 

141,976

 

 

166,020

 

 

(24,044

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

16,000

 

13,986

 

2,014

 

 

6.42

 

5.12

 

1.30

 

 

 

Commercial

 

509,403

 

355,171

 

154,232

 

 

98,409

 

 

55,823

 

 

734

 

754

 

(20

)

 

8.68

 

5.58

 

3.10

 

 

 

Construction

 

31,598

 

20,874

 

10,724

 

 

11,283

 

 

(559

)

 

1,610

 

1,419

 

191

 

 

6.21

 

5.93

 

0.28

 

 

 

Leasing

 

49,993

 

42,071

 

7,922

 

 

2,051

 

 

5,871

 

 

7,398

 

7,341

 

57

 

 

5.46

 

5.28

 

0.18

 

 

 

Mortgage

 

202,076

 

193,905

 

8,171

 

 

6,637

 

 

1,534

 

 

3,049

 

2,595

 

454

 

 

13.03

 

11.27

 

1.76

 

 

 

Consumer

 

197,010

 

144,994

 

52,016

 

 

24,268

 

 

27,748

 

 

3,576

 

3,480

 

96

 

 

8.23

 

8.08

 

0.15

 

 

 

Auto

 

145,874

 

139,397

 

6,477

 

 

2,574

 

 

3,903

 

 

32,367

 

29,575

 

2,792

 

 

7.06

 

6.10

 

0.96

 

 

 

Total loans

 

1,135,954

 

896,412

 

239,542

 

 

145,222

 

 

94,320

 

$

67,306

$

70,879

$

(3,573

)

 

4.78

%

3.45

%

1.33

 

%

 

Total earning assets

$

1,598,484

$

1,216,966

$

381,518

 

$

311,242

 

$

70,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

$

23,774

$

26,584

$

(2,810

)

 

2.72

%

0.12

%

2.60

 

%

 

NOW and money market [2]

$

320,610

$

15,624

$

304,986

 

$

307,891

 

$

(2,905

)

 

14,895

 

16,398

 

(1,503

)

 

0.57

 

0.17

 

0.40

 

 

 

Savings

 

41,889

 

13,464

 

28,425

 

 

31,595

 

 

(3,170

)

 

7,409

 

6,891

 

518

 

 

2.02

 

0.69

 

1.33

 

 

 

Time deposits

 

74,204

 

23,522

 

50,682

 

 

42,149

 

 

8,533

 

 

46,078

 

49,873

 

(3,795

)

 

1.91

 

0.21

 

1.70

 

 

 

Total interest bearing deposits

 

436,703

 

52,610

 

384,093

 

 

381,635

 

 

2,458

 

 

15,592

 

16,198

 

(606

)

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

 

 

 

 

 

 

 

 

 

61,670

 

66,071

 

(4,401

)

 

1.43

 

0.16

 

1.27

 

 

 

Total deposits

 

436,703

 

52,610

 

384,093

 

 

381,635

 

 

2,458

 

 

186

 

109

 

77

 

 

4.89

 

0.61

 

4.28

 

 

 

Short-term borrowings

 

4,509

 

328

 

4,181

 

 

3,797

 

 

384

 

 

1,124

 

965

 

159

 

 

5.10

 

4.25

 

0.85

 

 

 

Other medium and long-term debt

 

28,493

 

20,370

 

8,123

 

 

4,895

 

 

3,228

 

 

47,388

 

50,947

 

(3,559

)

 

2.00

 

0.29

 

1.71

 

 

 

Total interest bearing liabilities (excluding demand deposits)

 

469,705

 

73,308

 

396,397

 

 

390,327

 

 

6,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,326

 

3,734

 

592

 

 

 

 

 

 

 

 

 

Other sources of funds

 

 

 

 

 

 

 

 

 

 

$

67,306

$

70,879

$

(3,573

)

 

1.41

%

0.21

%

1.20

 

%

 

Total source of funds

 

469,705

 

73,308

 

396,397

 

 

390,327

 

 

6,070

 

 

 

 

 

 

 

3.37

%

3.24

%

0.13

 

%

 

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

 

1,128,779

 

1,143,658

 

(14,879

)

$

(79,085

)

$

64,206

 

 

 

 

 

 

 

 

2.78

%

3.16

%

(0.38

)

%

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent adjustment

 

65,455

 

115,484

 

(50,029

)

 

 

 

 

 

 

 

 

 

 

 

3.18

%

2.92

%

0.26

 

%

 

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

$

1,063,324

$

1,028,174

$

35,150

 

 

 

 

 

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

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

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

Popular, Inc.

Financial Supplement to Second Quarter 2023 Earnings Release

Table G - Mortgage Banking Activities and Other Service Fees

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Banking Activities

 

 

 

 

 

 

 

 

 

Quarters ended

Variance

Six months ended

Variance

(In thousands)

30-Jun-23

31-Mar-23

30-Jun-22

Q2 2023

vs.Q1 2023

Q2 2023

vs.Q2 2022

30-Jun-23

30-Jun-22

2023 vs.

2022

Mortgage servicing fees, net of fair value adjustments:

 

 

 

 

 

 

 

 

Mortgage servicing fees

$8,369

 

$8,689

 

$9,186

 

$(320

)

$(817

)

$17,058

 

$18,509

 

$(1,451

)

Mortgage servicing rights fair value adjustments

(6,216

)

(1,376

)

2,257

 

(4,840

)

(8,473

)

(7,592

)

3,345

 

(10,937

)

Total mortgage servicing fees, net of fair value adjustments

2,153

 

7,313

 

11,443

 

(5,160

)

(9,290

)

9,466

 

21,854

 

(12,388

)

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

(61

)

263

 

36

 

(324

)

(97

)

202

 

(1,498

)

1,700

 

Trading account profit (loss):

 

 

 

 

 

 

 

 

Unrealized gains (loss) on outstanding derivative positions

246

 

(131

)

(2

)

377

 

248

 

115

 

-

 

115

 

Realized gains on closed derivative positions

111

 

56

 

2,430

 

55

 

(2,319

)

167

 

6,565

 

(6,398

)

Total trading account profit (loss)

357

 

(75

)

2,428

 

432

 

(2,071

)

282

 

6,565

 

(6,283

)

Losses on repurchased loans, including interest advances

(133

)

(101

)

(332

)

(32

)

199

 

(234

)

(481

)

247

 

Total mortgage banking activities

$2,316

 

$7,400

 

$13,575

 

$(5,084

)

$(11,259

)

$9,716

 

$26,440

 

$(16,724

)

 

 

 

 

 

 

 

 

 

Other Service Fees

 

 

 

 

 

 

 

 

Quarters ended

Variance

Six months ended

Variance

(In thousands)

30-Jun-23

31-Mar-23

30-Jun-22

Q2 2023

vs.Q1 2023

Q2 2023

vs.Q2 2022

30-Jun-23

30-Jun-22

2023 vs.

2022

Other service fees:

 

 

 

 

 

 

 

 

Debit card fees

$13,600

 

$13,166

 

$12,882

 

$434

 

$718

 

$26,766

 

$24,661

 

$2,105

 

Insurance fees

14,625

 

13,873

 

12,017

 

752

 

2,608

 

28,498

 

26,173

 

2,325

 

Credit card fees

42,644

 

40,498

 

38,155

 

2,146

 

4,489

 

83,142

 

71,797

 

11,345

 

Sale and administration of investment products

6,076

 

6,558

 

6,017

 

(482

)

59

 

12,634

 

11,808

 

826

 

Trust fees

6,600

 

5,775

 

6,143

 

825

 

457

 

12,375

 

12,070

 

305

 

Other fees

10,720

 

10,206

 

6,237

 

514

 

4,483

 

20,926

 

12,076

 

8,850

 

Total other service fees

$94,265

$90,076

 

$81,451

 

$4,189

 

$12,814

 

$184,341

 

$158,585

 

$25,756

 

Popular, Inc.

 

 

 

 

 

Financial Supplement to Second Quarter 2023 Earnings Release

Table H - Loans and Deposits

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Loans - Ending Balances

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

30-Jun-23

31-Mar-23

30-Jun-22

Q2 2023 vs.Q1

2023

Q2 2023 vs.Q2

2022

Loans held-in-portfolio:

 

 

 

 

Commercial

$

16,368,300

$

16,005,261

$

14,545,301

$

363,039

 

$

1,822,999

 

Construction

 

819,903

 

698,996

 

790,920

 

120,907

 

 

28,983

 

Leasing

 

1,661,523

 

1,614,344

 

1,480,222

 

47,179

 

 

181,301

 

Mortgage

 

7,449,078

 

7,405,907

 

7,261,955

 

43,171

 

 

187,123

 

Auto

 

3,565,533

 

3,517,940

 

3,489,976

 

47,593

 

 

75,557

 

Consumer

 

3,166,585

 

3,095,925

 

2,802,562

 

70,660

 

 

364,023

 

Total loans held-in-portfolio

$

33,030,922

$

32,338,373

$

30,370,936

$

692,549

 

$

2,659,986

 

Loans held-for-sale:

 

 

 

 

 

Mortgage

$

9,509

$

11,181

$

28,546

$

(1,672

)

$

(19,037

)

Consumer

 

45,912

 

-

 

-

 

45,912

 

 

45,912

 

Total loans held-for-sale

$

55,421

$

11,181

$

28,546

$

44,240

 

$

26,875

 

Total loans

$

33,086,343

$

32,349,554

$

30,399,482

$

736,789

 

$

2,686,861

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits - Ending Balances

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

30-Jun-23

31-Mar-23

30-Jun-22

Q2 2023 vs. Q1

2023

Q2 2023 vs.Q2

2022

Demand deposits [1]

$

27,690,840

$

26,191,672

$

27,798,243

$

1,499,168

 

$

(107,403

)

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

 

27,539,343

 

26,622,020

 

29,672,655

 

917,323

 

 

(2,133,312

)

Savings, NOW and money market deposits (brokered)

 

772,783

 

734,069

 

761,244

 

38,714

 

 

11,539

 

Time deposits (non-brokered)

 

7,231,840

 

6,891,051

 

6,896,786

 

340,789

 

 

335,054

 

Time deposits (brokered CDs)

 

770,012

 

515,076

 

198,736

 

254,936

 

 

571,276

 

Total deposits

$

64,004,818

$

60,953,888

$

65,327,664

$

3,050,930

 

$

(1,322,846

)

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

 

 

 

 

Popular, Inc.

Financial Supplement to Second Quarter 2023 Earnings Release

Table I - Liquidity Sources, Deposits and Borrowings

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liquidity Sources

30-Jun-23

31-Mar-23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

BPPR

Popular U.S.

 

Total

BPPR

 

Popular U.S.

Total

Unpledged securities and unused funding sources:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market (excess funds at the Federal Reserve Bank)

$

7,664,753

 

$

922,564

 

 

$

8,587,317

 

$

5,181,531

 

 

$

909,613

 

$

6,091,144

 

Unpledged securities

 

4,743,373

 

 

259,038

 

 

 

5,002,411

 

 

7,690,887

 

 

 

273,980

 

 

7,964,867

 

FHLB borrowing capacity

 

2,044,073

 

 

1,376,597

 

 

 

3,420,670

 

 

1,623,246

 

 

 

1,127,316

 

 

2,750,562

 

Discount window of the Federal Reserve Bank borrowing capacity

 

1,438,473

 

 

1,688,795

 

 

 

3,127,268

 

 

1,132,411

 

 

 

331,753

 

 

1,464,164

 

Total available liquidity

$

15,890,672

 

$

4,246,994

 

 

$

20,137,666

 

$

15,628,075

 

 

$

2,642,662

 

$

18,270,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Jun-23

 

 

 

 

 

 

 

 

 

 

 

Popular, Inc.

 

 

 

(In thousands)

BPPR

% of Total

 

Popular U.S.

% of Total

 

(Consolidated)

% of Total

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits balances under $250,000 [1]

$

24,393,322

 

 

44

%

 

$

6,454,716

 

 

64

%

 

$

30,848,038

 

 

48

%

Transactional deposits balances over $250,000

 

9,263,514

 

 

17

%

 

 

2,068,584

 

 

21

%

 

 

11,332,098

 

 

18

%

Time deposits balances over $250,000

 

2,089,714

 

 

4

%

 

 

276,822

 

 

3

%

 

 

2,366,536

 

 

4

%

Foreign deposits

 

457,218

 

 

1

%

 

 

-

 

 

-

%

 

 

457,218

 

 

1

 

Collateralized public funds

 

18,716,276

 

 

34

%

 

 

284,652

 

 

3

%

 

 

19,000,928

 

 

30

%

Intercompany deposits

 

157,213

 

 

-

%

 

 

932,834

 

 

9

%

 

 

-

 

 

-

%

Total deposits

$

55,077,257

 

 

100

%

 

$

10,017,608

 

 

100

%

 

$

64,004,818

 

 

100

%

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Mar-23

 

 

 

 

 

 

 

 

 

 

 

Popular, Inc.

 

 

 

(In thousands)

BPPR

% of Total

 

Popular U.S.

% of Total

 

(Consolidated)

% of Total

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits balances under $250,000 [1]

$

24,823,608

 

 

47

%

 

$

5,979,010

 

 

62

%

 

$

30,802,618

 

 

51

%

Transactional deposits balances over $250,000

 

9,503,832

 

 

18

%

 

 

2,151,732

 

 

22

%

 

 

11,655,564

 

 

19

%

Time deposits balances over $250,000

 

1,869,810

 

 

4

%

 

 

255,322

 

 

3

%

 

 

2,125,132

 

 

3

%

Foreign deposits

 

412,444

 

 

1

%

 

 

 

 

 

-

%

 

 

412,444

 

 

1

%

Collateralized public funds

 

15,712,622

 

 

30

%

 

245,508

 

 

3

%

 

15,958,130

 

 

26

%

Intercompany deposits

 

134,110

 

 

-

%

 

 

986,943

 

 

10

%

 

 

-

 

 

-

%

Total deposits

$

52,456,426

 

 

100

%

 

$

9,618,515

 

 

100

%

 

$

60,953,888

 

 

100

%

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

30-Jun-23

 

31-Mar-23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All other

 

 

 

 

 

 

 

All other

 

 

 

(In thousands)

BPPR

 

Popular U.S.

 

entities

 

Total

 

BPPR

 

Popular U.S.

 

entities

 

Total

Assets sold under agreements to repurchase

$

25,538

 

$

97,667

 

$

-

 

$

123,205

 

$

25,158

 

$

98,341

 

$

-

 

$

123,499

FHLB borrowings

 

82,292

 

 

330,340

 

 

-

 

 

412,632

 

 

82,292

 

 

305,990

 

 

-

 

 

388,282

Federal discount window / bank term funding program (BTFP)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Notes payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured senior debt securities maturing on September 2023

 

-

 

 

-

 

 

299,743

 

 

299,743

 

 

-

 

 

-

 

 

299,426

 

 

299,426

Unsecured senior debt securities maturing on March 2028

 

-

 

 

-

 

 

393,342

 

 

393,342

 

 

-

 

 

-

 

 

393,093

 

 

393,093

Junior subordinated deferrable interest debentures

 

-

 

 

-

 

 

198,332

 

 

198,332

 

 

-

 

 

-

 

 

198,326

 

 

198,326

Total borrowings

$

107,830

 

$

428,007

 

$

891,417

 

$

1,427,254

 

$

107,450

 

$

404,331

 

$

890,845

 

$

1,402,626

Popular, Inc.

Financial Supplement to Second Quarter 2023 Earnings Release

Table J - Loan Delinquency -BPPR Operations

(Unaudited)

30-Jun-23

BPPR

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

 

Accruing

(In thousands)

 

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

3,778

 

 

$

179

 

 

$

184

 

 

$

4,141

 

 

$

292,736

 

 

$

296,877

 

 

 

$

184

 

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

177

 

 

 

512

 

 

 

22,942

 

 

 

23,631

 

 

 

2,882,616

 

 

 

2,906,247

 

 

 

 

22,942

 

 

 

-

 

Owner occupied

 

 

1,241

 

 

 

700

 

 

 

35,832

 

 

 

37,773

 

 

 

1,390,285

 

 

 

1,428,058

 

 

 

 

35,832

 

 

 

-

 

Commercial and industrial

 

 

2,597

 

 

 

728

 

 

 

32,846

 

 

 

36,171

 

 

 

4,002,652

 

 

 

4,038,823

 

 

 

 

29,758

 

 

 

3,088

 

Construction

 

 

-

 

 

 

970

 

 

 

9,284

 

 

 

10,254

 

 

 

163,481

 

 

 

173,735

 

 

 

 

9,284

 

 

 

-

 

Mortgage

 

 

221,187

 

 

 

88,955

 

 

 

449,930

 

 

 

760,072

 

 

 

5,408,216

 

 

 

6,168,288

 

 

 

 

194,219

 

 

 

255,711

 

Leasing

 

 

13,160

 

 

 

3,811

 

 

 

4,743

 

 

 

21,714

 

 

 

1,639,809

 

 

 

1,661,523

 

 

 

 

4,743

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

9,506

 

 

 

6,311

 

 

 

14,185

 

 

 

30,002

 

 

 

1,027,370

 

 

 

1,057,372

 

 

 

 

-

 

 

 

14,185

 

Home equity lines of credit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,570

 

 

 

2,570

 

 

 

 

-

 

 

 

-

 

Personal

 

 

14,865

 

 

 

11,660

 

 

 

17,438

 

 

 

43,963

 

 

 

1,642,003

 

 

 

1,685,966

 

 

 

 

17,438

 

 

 

-

 

Auto

 

 

75,879

 

 

 

18,422

 

 

 

36,204

 

 

 

130,505

 

 

 

3,435,028

 

 

 

3,565,533

 

 

 

 

36,204

 

 

 

-

 

Other

 

 

512

 

 

 

274

 

 

 

1,901

 

 

 

2,687

 

 

 

132,605

 

 

 

135,292

 

 

 

 

1,735

 

 

 

166

 

Total

 

$

342,902

 

 

$

132,522

 

 

$

625,489

 

 

$

1,100,913

 

 

$

22,019,371

 

 

$

23,120,284

 

 

 

$

352,339

 

 

$

273,150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Mar-23

BPPR

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

30-59

 

60-89

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

 

Accruing

(In thousands)

 

days

 

days

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

650

 

 

$

-

 

 

$

185

 

 

$

835

 

 

$

291,971

 

 

$

292,806

 

 

 

$

185

 

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

2,739

 

 

 

1,584

 

 

 

22,856

 

 

 

27,179

 

 

 

2,858,304

 

 

 

2,885,483

 

 

 

 

22,856

 

 

 

-

 

Owner occupied

 

 

21,496

 

 

 

-

 

 

 

37,779

 

 

 

59,275

 

 

 

1,438,228

 

 

 

1,497,503

 

 

 

 

37,779

 

 

 

-

 

Commercial and industrial

 

 

17,934

 

 

 

793

 

 

 

31,847

 

 

 

50,574

 

 

 

3,883,859

 

 

 

3,934,433

 

 

 

 

30,132

 

 

 

1,715

 

Construction

 

 

8,081

 

 

 

-

 

 

 

-

 

 

 

8,081

 

 

 

147,268

 

 

 

155,349

 

 

 

 

-

 

 

 

-

 

Mortgage

 

 

183,187

 

 

 

81,729

 

 

 

515,752

 

 

 

780,668

 

 

 

5,336,016

 

 

 

6,116,684

 

 

 

 

224,075

 

 

 

291,677

 

Leasing

 

 

12,301

 

 

 

2,605

 

 

 

6,103

 

 

 

21,009

 

 

 

1,593,335

 

 

 

1,614,344

 

 

 

 

6,103

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

7,162

 

 

 

5,823

 

 

 

12,061

 

 

 

25,046

 

 

 

1,021,129

 

 

 

1,046,175

 

 

 

 

-

 

 

 

12,061

 

Home equity lines of credit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,865

 

 

 

2,865

 

 

 

 

-

 

 

 

-

 

Personal

 

 

14,131

 

 

 

8,990

 

 

 

17,427

 

 

 

40,548

 

 

 

1,572,370

 

 

 

1,612,918

 

 

 

 

17,412

 

 

 

15

 

Auto

 

 

60,324

 

 

 

12,684

 

 

 

39,516

 

 

 

112,524

 

 

 

3,405,416

 

 

 

3,517,940

 

 

 

 

39,516

 

 

 

-

 

Other

 

 

1,264

 

 

 

49

 

 

 

1,091

 

 

 

2,404

 

 

 

127,608

 

 

 

130,012

 

 

 

 

921

 

 

 

170

 

Total

 

$

329,269

 

 

$

114,257

 

 

$

684,617

 

 

$

1,128,143

 

 

$

21,678,369

 

 

$

22,806,512

 

 

 

$

378,979

 

 

$

305,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

3,128

 

 

$

179

 

 

$

(1

)

 

$

3,306

 

 

$

765

 

 

$

4,071

 

 

 

$

(1

)

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

(2,562

)

 

 

(1,072

)

 

 

86

 

 

 

(3,548

)

 

 

24,312

 

 

 

20,764

 

 

 

 

86

 

 

 

-

 

Owner occupied

 

 

(20,255

)

 

 

700

 

 

 

(1,947

)

 

 

(21,502

)

 

 

(47,943

)

 

 

(69,445

)

 

 

 

(1,947

)

 

 

-

 

Commercial and industrial

 

 

(15,337

)

 

 

(65

)

 

 

999

 

 

 

(14,403

)

 

 

118,793

 

 

 

104,390

 

 

 

 

(374

)

 

 

1,373

 

Construction

 

 

(8,081

)

 

 

970

 

 

 

9,284

 

 

 

2,173

 

 

 

16,213

 

 

 

18,386

 

 

 

 

9,284

 

 

 

-

 

Mortgage

 

 

38,000

 

 

 

7,226

 

 

 

(65,822

)

 

 

(20,596

)

 

 

72,200

 

 

 

51,604

 

 

 

 

(29,856

)

 

 

(35,966

)

Leasing

 

 

859

 

 

 

1,206

 

 

 

(1,360

)

 

 

705

 

 

 

46,474

 

 

 

47,179

 

 

 

 

(1,360

)

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

2,344

 

 

 

488

 

 

 

2,124

 

 

 

4,956

 

 

 

6,241

 

 

 

11,197

 

 

 

 

-

 

 

 

2,124

 

Home equity lines of credit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(295

)

 

 

(295

)