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Popular, Inc. Announces Fourth Quarter 2021 Financial Results

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  • Net income of $206.1 million in Q4 2021, compared to net income of $248.1 million in Q3 2021.
  • Net income of $934.9 million for the year 2021, compared to net income of $506.6 million for the year 2020.
  • Net interest margin of 2.78% in Q4 2021, compared to 2.77% in Q3 2021; net interest margin on a taxable equivalent basis of 3.02% in Q4 2021, compared to 3.04% in Q3 2021.
  • Credit Quality:
    • Non-performing loans held-in-portfolio (“NPLs”) decreased by $85.0 million from Q3 2021; NPLs to loans ratio at 1.9% vs. 2.2% in Q3 2021;
    • Net charge-offs (“NCOs”) was a net recovery of $7.9 million, a favorable variance by $16.7 million from Q3 2021; NCOs at (0.11%) of average loans held-in-portfolio vs. 0.12% in Q3 2021; NCOs of $20.7 million for the year 2021, a favorable variance by $165.7 million from the year 2020; NCOs at 0.07% of average loans held-in-portfolio for the year 2021 vs. 0.66% for the year 2020;
    • Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.38% vs. 2.49% in Q3 2021; and
    • ACL to NPLs at 126.9% vs. 113.6% in Q3 2021.
  • Common Equity Tier 1 ratio of 17.45%, Common Equity per Share of $74.48 and Tangible Book Value per Share of $65.39 at December 31, 2021.

SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $206.1 million for the quarter ended December 31, 2021, compared to net income of $248.1 million for the quarter ended September 30, 2021.

Ignacio Alvarez, President and Chief Executive Officer, said: “Our fourth quarter results reflect a strong finish to a record year. During the quarter we continued adding new clients, increasing our deposit base and growing most of our loan portfolios. We also launched a new digital platform where small business customers in Puerto Rico can apply for loans in a more convenient way. And we were especially pleased by the performance of our U.S. mainland operations that achieved commercial loan growth of $726 million, including the $105 million from the K-2 acquisition. Our financial performance in 2021 was driven by solid credit quality trends that led to a benefit in the provision of $194 million. Our net charge-off ratio of 0.07% was the lowest since at least 2004.

Our results reflect the strength of our diverse sources of revenues. Solid financial performance and a strong capital position led to a dividend increase of 22% on our common stock effective Q2 2022 and a common stock repurchase program of $500 million for 2022.

Further demonstrating our commitment to the communities we serve, this fall we gained the certification to a host of our low-cost deposit products that meet the Bank On certification requirements. We are also proud to be included in this year’s Bloomberg Gender-Equality Index (GEI) as we continue to make strides in gender parity at Popular and across the financial industry.

While cognizant of the challenges related to the pandemic, we enter this year ready to build on the momentum of 2021, with an improving economic and fiscal environment in Puerto Rico and the rising interest rate environment.

I want to thank our colleagues whose dedication, resilience and talent helped us achieve our record results. They continue to be our most valuable asset.”

Significant Events

Fourth Quarter Financial Highlights

For the fourth quarter of 2021, the Corporation recorded net income of $206.1 million, compared to net income of $248.1 million for the previous quarter. The fourth quarter’s results include a release in the allowance for credit losses of $33.1 million driven by the releases in the Puerto Rico commercial and mortgage portfolios, resulting from improving credit quality, partially offset by reserve increases related to an increase in weight to downside economic scenarios and higher loan volumes. Net interest income was $501.3 million, an increase of $11.9 million compared to the previous quarter, mainly due to higher income from loans issued under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), loan growth, coupled with activity from lease financing business acquired in October 2021 by Popular Equipment Finance LLC (“PEF”) and higher income from the repayment of purchased credit deteriorated (“PCD”) loans. Net interest margin increased 1 basis point to 2.78%. Total assets grew by $0.9 billion from the previous quarter, reflecting loan growth in Popular Bank (“PB”) and an increase in deposits across all sectors in Puerto Rico.

Acquisition of K2 Capital Group LLC

On October 15, 2021, PEF, a newly-formed wholly-owned subsidiary of PB, completed the acquisition of certain assets and the assumption of certain liabilities of Minnesota-based K2 Capital Group LLC’s (“K2”) equipment leasing and financing business (the “Acquired Business”). PEF made a payment to K2 of approximately $157 million in cash, representing a premium of approximately $42 million over the book value of K2’s net assets, which has been preliminarily recorded as goodwill. An additional approximate $29 million in earnout payments could be payable to K2 over the next three years, contingent upon the achievement of certain agreed-upon financial targets during such period.

Specializing in the healthcare industry, the Acquired Business provides a variety of lease products, including operating and finance leases, and also offers private label vendor finance programs to equipment manufacturers and healthcare organizations. The acquisition provides PB with a national equipment leasing platform that complements its existing healthcare lending business.

As part of the transaction, PEF acquired approximately $115 million in net assets that consisted mainly of commercial finance leases.

The transaction was accounted for as a business combination. The Corporation is in the process of finalizing the assessment of the fair value of the net assets acquired as part of the transaction and expects to complete its assessment before the filing of its annual report on Form 10-K for the year ended December 31, 2021. Any fair value adjustments would impact the value of the recorded assets and liabilities with a corresponding offset to goodwill.

Capital Actions

Redemption of Trust Preferred Securities

On November 1, 2021, the Corporation redeemed all outstanding 6.70% Cumulative Monthly Income Trust Preferred Securities (the “Trust Preferred Securities”) issued by the Popular Capital Trust I (the “Trust”) (liquidation amount of $25 per security and amounting to $186,663,800 (or $181,063,250 after excluding the Corporation’s participation in the Trust of $5,600,550) in the aggregate). The redemption price for the Trust Preferred Securities was equal to $25 per security plus accrued and unpaid distributions up to and excluding the redemption date in the amount of $0.139583 per security, for a total payment per security in the amount of $25.139583. Upon redemption, Popular delisted the Trust Preferred Securities (NASDAQ: BPOPN) from the Nasdaq Global Select Market.

Announcement of 2022 Capital Actions

On January 12, 2022 the Corporation announced the following capital actions:

  • an increase in the Corporation’s quarterly common stock dividend from $0.45 per share to $0.55 per share, commencing with the dividend payable in the second quarter of 2022, subject to the approval by the Corporation’s Board of Directors; and
  • common stock repurchases of up to $500 million during 2022.

The Corporation’s planned common stock repurchases may be executed in the open market or in privately negotiated transactions. The timing and exact amount of such repurchases will be subject to various factors, including market conditions and the Corporation’s capital position and financial performance.

Earnings Highlights

 

(Unaudited)

Quarters ended

 

Years ended

(Dollars in thousands, except per share information)

31-Dec-21

30-Sep-21

31-Dec-20

 

31-Dec-21

31-Dec-20

Net interest income

$501,283

 

$489,393

 

$471,616

 

$1,957,590

 

$1,856,613

Provision for credit losses (benefit)

(33,050

)

(61,173

)

21,218

 

(193,464

)

292,536

Net interest income after provision for credit losses (benefit)

534,333

 

550,566

 

450,398

 

2,151,054

 

1,564,077

Other non-interest income

164,677

 

169,258

 

144,847

 

642,128

 

512,312

Operating expenses

417,394

 

388,168

 

375,924

 

1,549,275

 

1,457,829

Income before income tax

281,616

 

331,656

 

219,321

 

1,243,907

 

618,560

Income tax expense

75,552

 

83,542

 

43,045

 

309,018

 

111,938

Net income

$206,064

 

$248,114

 

$176,276

 

$934,889

 

$506,622

Net income applicable to common stock

$205,711

 

$247,761

 

$175,923

 

$933,477

 

$504,864

Net income per common share-basic

$2.59

 

$3.09

 

$2.10

 

$11.49

 

$5.88

Net income per common share-diluted

$2.58

 

$3.09

 

$2.10

 

$11.46

 

$5.87

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

Net interest income, on a taxable equivalent basis, is presented with its different components in Table D and E for the quarter and year ended December 31, 2021, and comparable periods. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

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

Net interest income for the quarter ended December 31, 2021 was $501.3 million compared to $489.4 million in the previous quarter, an increase of $11.9 million. Net interest income, on a taxable equivalent basis, for the fourth quarter of 2021 was $543.9 million, an increase of $7.6 million when compared to $536.3 million in the third quarter of 2021. The increase in net interest income on a taxable equivalent is mainly related to the repayment of PCD loans, higher PPP fees during the quarter and the activity recognized in the quarter from PEF’s recently acquired lease financing business.

Net interest margin for the fourth quarter was 2.78% compared to 2.77% in the previous quarter. The increase in net interest margin is due to the repayment of PCD loans and higher PPP loan fees related to loans, partially offset by a lower yield on money markets and investment securities due to lower volume of mortgage-backed securities. On a taxable equivalent basis, net interest margin for the fourth quarter of 2021 was 3.02% compared to 3.04% in the third quarter of 2021, a decrease of 2 basis points. The main variances in net interest income on a taxable equivalent basis were:

  • Higher interest income from loans by $8.2 million mainly due to the following:
    • Higher income from commercial loans including $3.7 million from the repayment of PCD loans, interest income and fees from PPP loans by $1.2 million and $2.4 million from loans acquired by PEF from K2. Interest income for the commercial portfolio also reflected loan growth at PB which, excluding PPP loans and including the finance lease portfolio acquired by PEF, increased by $726 million or 13% and $284 million in average balances from the previous quarter;
    • Auto and lease financing continued its positive trend increasing by $102 million in average balances and reflecting an increase in interest income of $0.7 million
      Partially offset by:
    • Lower interest income from mortgage loans due lower average volume resulting from continued amortization of the Banco Popular de Puerto Rico (“BPPR”) portfolio
    • Lower interest expense on borrowings resulting from the redemption during the quarter of the Trust Preferred Securities, totaling $186.7 million.

These positive variances were partially offset by:

  • Lower interest income from money market investments, trading and investment securities by $3.4 million due lower volume and yield of mortgage-backed securities, partially offset by a higher volume of lower yielding U.S. Treasury notes.

The Corporation recognized income of $23.2 million related to loans issued under the SBA PPP program, compared to $22.0 million in the previous quarter. These loans carried a yield of approximately 17.86% in this quarter, including the amortization of fees received under the program, compared to 10.10% last quarter. This portfolio of loans issued under the SBA PPP declined by $265.2 million in BPPR to a balance of $255.3 million and declined by $51.4 million in PB to a balance of $97.9 million. On December 31, 2021, the portfolio [at BPPR and PB] had a remaining [aggregate] balance of unamortized fees of $18.1 million.

Net interest income for the BPPR segment amounted to $425.9 million for the fourth quarter of 2021, compared to $419.2 million for the third quarter. Net interest margin for the fourth quarter of 2021 was 2.73%, a decrease of 2 basis points when compared to 2.75% for the previous quarter. As discussed above, net interest margin was positively impacted by the repayment of PCD loans, higher PPP fees and a higher volume of auto and lease financing loans, but the earning assets mix continues to impact the net interest margin. The cost of interest-bearing deposits was 0.16% compared to 0.17% in the previous quarter. Total cost of deposits for the quarter was 0.12%, compared to 0.13% reported for the third quarter of 2021.

Net interest income for PB was $83.2 million for the quarter ended December 31, 2021, compared to $80.0 million during the previous quarter. Net interest margin for the quarter was 3.47% or 11 basis point higher than the previous quarter. The increase in net interest income is driven by a higher volume of commercial loans, as discussed above, from both origination activity and the acquisition of the equipment finance leases business from K2. The lower cost on deposits also benefited the net interest margin at PB. The cost of interest-bearing deposits was 0.52% or 4 basis points lower than the 0.56% reported in the third quarter, decreasing for the ninth consecutive quarter. Total cost of deposits for the quarter, including demand deposits, was 0.40%, compared to 0.43% in the previous quarter.

Non-interest income

Non-interest income decreased by $4.6 million to $164.7 million for the quarter ended December 31, 2021, compared to $169.3 million for the quarter ended September 30, 2021. The variance in non-interest income was primarily driven by:

  • lower other operating income by $14.8 million mainly due to lower net earnings from the combined portfolio of investments under the equity method by $5.4 million and the impact of a gain of $7.0 million recognized in the third quarter of 2021 by BPPR as a result of the sale and partial leaseback of two corporate office buildings;
    partially offset by:
  • higher other service fees by $3.3 million mainly due to higher insurance fees by $3.5 million principally resulting from contingent insurance commissions that are typically recognized during the fourth quarter and higher credit card fees by $2.2 million mainly in interchange income; and
  • higher income from mortgage banking activities by $8.7 million mostly due to a favorable variance in fair value adjustments on mortgage servicing rights (“MSRs”) of $7.5 million mainly due to a decrease in estimated prepayments and an increase in float earnings and higher realized gains on closed derivative positions by $1.7 million.

Refer to Table B for further details.

Operating expenses

Operating expenses for the fourth quarter of 2021 totaled $417.4 million, an increase of $29.2 million when compared to the third quarter of 2021. The variance in operating expenses was driven primarily by:

  • higher personnel cost by $2.8 million mainly due to salary increases and higher incentives and commissions;
  • higher equipment expense by $2.6 million due to higher purchases of equipment by $0.6 million, higher amortization of software maintenance and higher depreciation of equipment held for operating leases by $0.5 million, the latter, related to the activity at PEF;
  • higher business promotion expenses by $7.7 million mainly as a result of seasonal activities, higher donations by $1.8 million and higher credit cards rewards expense related to transactional volumes by $2.0 million;
  • higher other operating expenses by $14.6 million due to impairment losses on undeveloped properties by $5.0 million, based on the estimated fair value as these were reclassified to held for sale or held for investments based on management’s intended use, and higher sundry losses by $9.7 million, including $3.7 million related to the termination of a white label credit card contract and higher legal reserves; and
  • higher amortization of intangibles by $5.3 million due to a write-down on impairment of a trademark.

Partially offset by:

  • lower credit and debit card processing and other expenses by $4.2 million mainly due to volume incentives.

Full-time equivalent employees were 8,351 as of December 31, 2021, compared to 8,342 as of September 30, 2021.

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

Income taxes

For the quarter ended December 31, 2021, the Corporation recorded an income tax expense of $75.6 million, compared to $83.5 million for the previous quarter. The decrease in income tax expense was mainly attributable to lower income before tax during the fourth quarter of 2021. The effective tax rate (“ETR”) for the fourth quarter of 2021 was 27%, or 2% higher when compared with the previous quarter. The ETR for the year was 25%. The ETR of the Corporation is impacted by the composition and source of its taxable income.

Credit Quality

During the fourth quarter of 2021, the Corporation continued to exhibit strong credit quality trends and low credit costs with net recoveries in NCOs and decreasing NPLs. We continue to closely monitor COVID-19 pandemic related risks on borrower performance and changes in the pace of economic recovery as new variants continue to emerge. 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 fourth quarter of 2021:

  • At December 31, 2021, total non-performing loans held-in-portfolio decreased by $85.0 million from September 30, 2021. BPPR’s NPLs decreased by $94.6 million, driven by lower commercial, mortgage and construction NPLs by $63.3 million, $20.7 million and $14.4 million, respectively. The commercial and construction NPLs decrease reflects payoffs related to troubled loan resolutions, and loans that were returned to accrual status during the quarter. The mortgage NPLs decrease was mainly due to the combined effects of collection efforts, increased foreclosure activity and the on-going low levels of early delinquency compared with pre-pandemic trends. PB’s NPLs increased by $9.6 million, mostly due to higher mortgage and commercial NPLs by $7.5 million and $2.7 million, respectively. The mortgage NPLs increase was mostly driven by loans that did not resume payment at the end of the deferral period. At December 31, 2021, the ratio of NPLs to total loans held-in-portfolio was 1.9%, compared to 2.2% in the third quarter of 2021.
  • Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $2.6 million quarter-over-quarter. In BPPR, total inflows decreased by $7.1 million, mostly driven by lower commercial and mortgage inflows of $5.2 million and $2.4 million, respectively. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB increased by $9.6 million during the quarter, mostly due to higher mortgage NPL inflows by $7.4 million, as explained above.
  • NCOs decreased by $16.7 million from the third quarter to net recoveries of $7.9 million. BPPR‘s NCOs decreased by $17.0 million, primarily driven by lower commercial NCOs by $15.7 million mostly related to recoveries from the resolution of the abovementioned commercial non-performing loans. During the fourthquarter of 2021, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was (0.11%), compared to 0.12% in the third quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios.
  • At December 31, 2021, the ACL decreased by $23.2 million, or 3.2%, from the third quarter of 2021 to $695.4 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. In response to recent events that impact both epidemiological and fiscal assumptions, the weight assigned to the pessimistic scenario was increased this quarter.
  • In BPPR, the ACL decreased by $22.6 million mainly driven by reductions in the commercial and mortgage loans ACL. Improved appraisals, releases of qualitative reserves as well as continued borrower performance contributed to the lower ACL for these segments. The ACL for the PB segment remained flat quarter-over-quarter, as the effect of releases in qualitative reserves was partially offset by higher loan volumes and the increase in weight applied to the pessimistic scenario. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.38% in the fourth quarter of 2021, compared to 2.49% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 126.9%, compared to 113.6% in the previous quarter.
  • The current baseline forecast continues to show a favorable economic scenario. GDP growth is expected for Puerto Rico and United States in 2022 and 2023. In addition, the unemployment rate is expected to continue to improve in both regions through 2022 and remain stable in 2023.
  • The provision for credit losses for the loan portfolios for the fourth quarter of 2021 reflected a benefit of $31.4 million, compared to a benefit of $58.6 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses and NCOs recoveries. The provision for the BPPR segment was a benefit of $30.6 million, compared to a benefit of $36.0 million in the previous quarter, while the provision for the PB segment was a benefit of $0.9 million, compared to a benefit of $22.7 million in the previous quarter.
  • The provision for unfunded commitments for the fourth quarter of 2021 reflected a benefit of $0.5 million, compared to a benefit of $1.5 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $1.1 million, compared to a benefit of $1.0 million in the third 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-Dec-21

 

30-Sep-21

 

31-Dec-20

Non-performing loans held-in-portfolio

$547,877

 

 

$632,835

 

 

$737,774

 

Non-performing loans held-for-sale

-

 

 

-

 

 

2,738

 

Other real estate owned (“OREO”)

85,077

 

 

76,828

 

 

83,146

 

Total non-performing assets

$632,954

 

 

$709,663

 

 

$823,658

 

Net (recoveries) charge-offs for the quarter

$(7,881

)

 

$8,823

 

 

$42,078

 

 

 

 

 

 

 

 

Ratios:

 

 

 

 

 

Loans held-in-portfolio

$29,243,889

 

 

$28,855,372

 

 

$29,385,196

 

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

1.87

%

 

2.19

%

 

2.51

%

Allowance for credit losses to loans held-in-portfolio

2.38

 

 

2.49

 

 

3.05

 

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

126.92

 

 

113.55

 

 

121.48

 

Refer to Table K for additional information.

 

 

 

 

 

Provision for Credit Losses (Benefit) - Loan Portfolios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Quarters ended

 

Years ended

(In thousands)

 

31-Dec-21

 

30-Sep-21

 

31-Dec-20

 

31-Dec-21

31-Dec-20

Provision for credit losses (benefit) - loan portfolios:

 

 

 

 

 

 

 

 

 

BPPR

 

$(30,562

)

 

$(35,992

)

 

$24,756

 

 

$(129,018

)

$205,865

Popular U.S.

 

(859

)

 

(22,653

)

 

(13,971

)

 

(54,327

)

76,471

Total provision for credit losses (benefit) - loan portfolios

 

$(31,421

)

 

$(58,645

)

 

$10,785

 

 

$(183,345

)

$282,336

Credit Quality by Segment

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

(In thousands)

Quarters ended

BPPR

 

31-Dec-21

 

30-Sep-21

 

31-Dec-20

Provision for credit losses (benefit) - loan portfolios

 

$(30,562

)

 

$(35,992

)

 

$24,756

 

Net charge-offs (recoveries)

 

(7,615

)

 

9,336

 

 

41,217

 

Total non-performing loans held-in-portfolio

514,289

 

 

608,871

 

 

700,377

 

Allowance / loans held-in-portfolio

2.85

%

 

2.92

%

 

3.43

%

Allowance / non-performing loans held-in-portfolio

115.53

%

 

101.30

%

 

105.62

%

 

 

 

 

 

 

 

 

Quarters ended

Popular U.S.

 

31-Dec-21

 

30-Sep-21

 

31-Dec-20

Provision for credit losses (benefit) - loan portfolios

 

$(859

)

 

$(22,653

)

 

$(13,971

)

Net charge-offs (recoveries)

 

(266

)

 

(513

)

 

861

 

Total non-performing loans held-in-portfolio

 

33,588

 

 

23,964

 

 

37,397

 

Allowance / loans held-in-portfolio

1.21

%

 

1.32

%

 

2.00

%

Allowance / non-performing loans held-in-portfolio

301.31

%

 

424.79

%

 

418.48

%

Financial Condition Highlights

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

(In thousands)

31-Dec-21

 

30-Sep-21

 

31-Dec-20

Cash and money market investments

$17,965,152

 

$18,065,211

 

$12,131,945

Investment securities

25,267,418

 

24,697,876

 

21,864,184

Loans

29,243,889

 

28,855,372

 

29,385,196

Total assets

75,088,659

 

74,189,163

 

65,926,000

Deposits

67,005,088

 

66,013,561

 

56,866,340

Borrowings

1,155,166

 

1,263,413

 

1,346,284

Total liabilities

69,119,262

 

68,206,192

 

59,897,313

Stockholders’ equity

5,969,397

 

5,982,971

 

6,028,687

Total assets increased by $0.9 billion from the third quarter of 2021, driven by:

  • an increase of $0.6 billion in debt securities available-for-sale, mainly due to purchases of U.S. treasury securities, partially offset by paydowns of agency mortgage-backed securities; and
  • an increase in loans held-in-portfolio by $0.4 billion mainly due to an increase of $0.7 billion in commercial loans at PB principally in the health care industry from which $0.1 billion was related to the acquisition by PEF of K2’s lease financing business during the quarter, partially offset by a decrease of $0.2 billion in commercial loans at BPPR mainly due to the collection of PPP loans during the quarter.

Total liabilities increased by $0.9 billion from the third quarter of 2021, driven by:

  • an increase of $1.0 billion in deposits, mainly due to higher retail and commercial demand deposits by $0.7 billion and higher Puerto Rico public sector deposits by $0.3 billion at BPPR; partially offset by
  • a net reduction in borrowings of $0.1 billion, from which $0.2 billion was related to the redemption of the Trust Preferred Securities.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 17.45%, $74.48 and $65.39, respectively, at December 31, 2021, compared to 17.36%, $74.66 and $66.01 at September 30, 2021. Refer to Table A for capital ratios.

Refer to Table C for the Statements of Financial Condition.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those 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 (including as a result of any participation in and execution of government programs related to the COVID-19 pandemic), 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. 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, 2020, in our Form 10-Q for the quarters ended March 31, 2021, June 30, 2021, September 30, 2021 and in our Form 10-K for the year ended December 31, 2021 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

About Popular, Inc.

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

Conference Call

Popular will hold a conference call to discuss its financial results today Thursday, January 27, 2022 at 10:00 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 476774.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Thursday, February 24, 2022. The replay dial-in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 565254.

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

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

 

Table A - Selected Ratios and Other Information

 

Table B - Consolidated Statement of Operations

 

Table C - Consolidated Statement of Financial Condition

 

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

 

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

 

Table F - Mortgage Banking Activities and Other Service Fees

 

Table G - Loans and Deposits

 

Table H - Loan Delinquency - 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 Fourth Quarter 2021 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

 

 

 

 

 

Quarters ended

Years ended

 

31-Dec-21

30-Sep-21

31-Dec-20

31-Dec-21

31-Dec-20

Basic EPS

$2.59

$3.09

$2.10

$11.49

$5.88

Diluted EPS

$2.58

$3.09

$2.10

$11.46

$5.87

Average common shares outstanding

79,477,823

80,126,166

83,841,343

81,263,027

85,882,371

Average common shares outstanding - assuming dilution

79,652,836

80,274,942

83,940,412

81,420,154

85,975,259

Common shares outstanding at end of period

79,851,169

79,841,564

84,244,235

79,851,169

84,244,235

Market value per common share

$82.04

$77.67

$56.32

$82.04

$56.32

Market capitalization - (In millions)

$6,551

$6,201

$4,745

$6,551

$4,745

Return on average assets

1.09%

1.34%

1.08%

1.31%

0.85%

Return on average common equity

13.74%

17.10%

12.68%

16.22%

9.36%

Net interest margin (non-taxable equivalent basis)

2.78%

2.77%

3.04%

2.88%

3.29%

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

3.02%

3.04%

3.35%

3.19%

3.62%

Common equity per share

$74.48

$74.66

$71.30

$74.48

$71.30

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

$65.39

$66.01

$63.07

$65.39

$63.07

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

7.02%

7.17%

8.14%

7.02%

8.14%

Return on average tangible common equity [1]

15.66%

19.44%

14.50%

18.47%

10.75%

Tier 1 capital

17.52%

17.43%

16.33%

17.52%

16.33%

Total capital

19.38%

19.90%

18.81%

19.38%

18.81%

Tier 1 leverage

7.42%

7.38%

7.80%

7.42%

7.80%

Common Equity Tier 1 capital

17.45%

17.36%

16.26%

17.45%

16.26%

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

POPULAR, INC.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

 

 

Quarters ended

Variance

Quarter ended

Variance

Years ended

 

 

 

 

Q4 2021

 

Q4 2021

 

 

(In thousands, except per share information)

31-Dec-21

30-Sep-21

vs. Q3 2021

31-Dec-20

vs. Q4 2020

31-Dec-21

31-Dec-20

Interest income:

 

 

 

 

 

 

 

 

Loans

$444,101

 

$435,296

 

$8,805

 

$430,988

 

$13,113

 

$1,747,827

 

$1,742,390

 

 

Money market investments

6,847

 

6,914

 

(67

)

2,933

 

3,914

 

21,147

 

19,721

 

 

Investment securities

88,315

 

87,952

 

363

 

85,502

 

2,813

 

353,663

 

329,440

 

 

Total interest income

539,263

 

530,162

 

9,101

 

519,423

 

19,840

 

2,122,637

 

2,091,551

 

Interest expense:

 

 

 

 

 

 

 

 

Deposits

26,331

 

27,029

 

(698

)

33,420

 

(7,089

)

111,621

 

175,855

 

 

Short-term borrowings

60

 

54

 

6

 

348

 

(288

)

319

 

2,457

 

 

Long-term debt

11,589

 

13,686

 

(2,097

)

14,039

 

(2,450

)

53,107

 

56,626

 

 

Total interest expense

37,980

 

40,769

 

(2,789

)

47,807

 

(9,827

)

165,047

 

234,938

 

Net interest income

501,283

 

489,393

 

11,890

 

471,616

 

29,667

 

1,957,590

 

1,856,613

 

Provision for credit losses (benefit)

(33,050

)

(61,173

)

28,123

 

21,218

 

(54,268

)

(193,464

)

292,536

 

Net interest income after provision for credit losses (benefit)

534,333

 

550,566

 

(16,233

)

450,398

 

83,935

 

2,151,054

 

1,564,077

 

Service charges on deposit accounts

41,613

 

41,312

 

301

 

39,152

 

2,461

 

162,698

 

147,823

 

Other service fees

83,793

 

80,445

 

3,348

 

71,156

 

12,637

 

311,248

 

257,892

 

Mortgage banking activities

17,035

 

8,307

 

8,728

 

9,730

 

7,305

 

50,133

 

10,401

 

Net gain on sale of debt securities

-

 

23

 

(23

)

-

 

-

 

23

 

41

 

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

(1,454

)

(401

)

(1,053

)

1,410

 

(2,864

)

131

 

6,279

 

Net (loss) profit on trading account debt securities

(355

)

58

 

(413

)

440

 

(795

)

(389

)

1,033

 

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

-

 

-

 

-

 

253

 

(253

)

(73

)

1,234

 

Adjustments to indemnity reserves on loans sold

1,398

 

2,038

 

(640

)

2,160

 

(762

)

4,406

 

390

 

Other operating income

22,647

 

37,476

 

(14,829

)

20,546

 

2,101

 

113,951

 

87,219

 

 

Total non-interest income

164,677

 

169,258

 

(4,581

)

144,847

 

19,830

 

642,128

 

512,312

 

Operating expenses:

 

 

 

 

 

 

 

Personnel costs

 

 

 

 

 

 

 

 

Salaries

96,830

 

95,185

 

1,645

 

92,063

 

4,767

 

371,644

 

370,179

 

 

Commissions, incentives and other bonuses

27,611

 

25,892

 

1,719

 

19,399

 

8,212

 

113,095

 

78,582

 

 

Pension, postretirement and medical insurance

13,971

 

13,893

 

78

 

12,454

 

1,517

 

52,077

 

44,123

 

 

Other personnel costs, including payroll taxes

22,060

 

22,677

 

(617

)

18,351

 

3,709

 

94,986

 

71,321

 

 

Total personnel costs

160,472

 

157,647

 

2,825

 

142,267

 

18,205

 

631,802

 

564,205

 

Net occupancy expenses

26,755

 

24,896

 

1,859

 

42,793

 

(16,038

)

102,226

 

119,345

 

Equipment expenses

25,180

 

22,537

 

2,643

 

22,395

 

2,785

 

92,097

 

88,932

 

Other taxes

15,160

 

14,459

 

701

 

13,532

 

1,628

 

56,783

 

54,454

 

Professional fees

 

 

 

 

 

 

 

 

Collections, appraisals and other credit related fees

3,227

 

3,166

 

61

 

2,948

 

279

 

13,199

 

12,588

 

 

Programming, processing and other technology services

69,647

 

69,221

 

426

 

66,483

 

3,164

 

272,386

 

253,565

 

 

Legal fees, excluding collections

3,445

 

2,535

 

910

 

2,734

 

711

 

10,712

 

10,611

 

 

Other professional fees

28,736

 

29,787

 

(1,051

)

31,865

 

(3,129

)

114,568

 

117,358

 

 

Total professional fees

105,055

 

104,709

 

346

 

104,030

 

1,025

 

410,865

 

394,122

 

Communications

6,263

 

6,133

 

130

 

6,274

 

(11

)

25,234

 

23,496

 

Business promotion

25,833

 

18,116

 

7,717

 

16,466

 

9,367

 

72,981

 

57,608

 

FDIC deposit insurance

6,688

 

7,181

 

(493

)

6,880

 

(192

)

25,579

 

23,868

 

Other real estate owned (OREO) income

(3,860

)

(1,722

)

(2,138

)

(4,000

)

140

 

(14,414

)

(3,480

)

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

8,757

 

12,960

 

(4,203

)

13,209

 

(4,452

)

45,088

 

45,108

 

Other operating expenses

 

 

 

 

 

 

 

 

Operational losses

16,820

 

7,147

 

9,673

 

4,992

 

11,828

 

38,391

 

26,331

 

 

All other

18,226

 

13,322

 

4,904

 

6,034

 

12,192

 

53,509

 

57,443

 

 

Total other operating expenses

35,046

 

20,469

 

14,577

 

11,026

 

24,020

 

91,900

 

83,774

 

Amortization of intangibles

6,045

 

783

 

5,262

 

1,052

 

4,993

 

9,134

 

6,397

 

 

Total operating expenses

417,394

 

388,168

 

29,226

 

375,924

 

41,470

 

1,549,275

 

1,457,829

 

Income before income tax

281,616

 

331,656

 

(50,040

)

219,321

 

62,295

 

1,243,907

 

618,560

 

Income tax expense

75,552

 

83,542

 

(7,990

)

43,045

 

32,507

 

309,018

 

111,938

 

Net income

$206,064

 

$248,114

 

$(42,050

)

$176,276

 

$29,788

 

$934,889

 

$506,622

 

Net income applicable to common stock

$205,711

 

$247,761

 

$(42,050

)

$175,923

 

$29,788

 

$933,477

 

$504,864

 

Net income per common share - basic

$2.59

 

$3.09

 

$(0.50

)

$2.10

 

$0.49

 

$11.49

 

$5.88

 

Net income per common share - diluted

$2.58

 

$3.09

 

$(0.51

)

$2.10

 

$0.48

 

$11.46

 

$5.87

 

Dividends Declared per Common Share

$0.45

 

$0.45

 

$-

 

$0.40

 

$0.05

 

$1.75

 

$1.60

 

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

 

 

 

 

 

 

Variance

 

 

 

 

 

 

Q4 2021 vs.

(In thousands)

31-Dec-21

30-Sep-21

31-Dec-20

Q3 2021

Assets:

 

 

 

 

Cash and due from banks

$428,433

 

$538,973

 

$491,065

 

$(110,540

)

Money market investments

17,536,719

 

17,526,238

 

11,640,880

 

10,481

 

Trading account debt securities, at fair value

29,711

 

36,064

 

36,674

 

(6,353

)

Debt securities available-for-sale, at fair value

24,968,269

 

24,391,226

 

21,561,152

 

577,043

 

Debt securities held-to-maturity, at amortized cost

79,461

 

85,655

 

92,621

 

(6,194

)

 

 

Less: Allowance for credit losses

8,096

 

9,222

 

10,261

 

(1,126

)

 

 

Total debt securities held-to-maturity, net

71,365

 

76,433

 

82,360

 

(5,068

)

Equity securities

189,977

 

184,931

 

173,737

 

5,046

 

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

59,168

 

91,313

 

99,455

 

(32,145

)

Loans held-in-portfolio

29,491,330

 

29,089,241

 

29,588,430

 

402,089

 

 

 

Less: Unearned income

247,441

 

233,869

 

203,234

 

13,572

 

 

 

Allowance for credit losses

695,366

 

718,575

 

896,250

 

(23,209

)

 

 

Total loans held-in-portfolio, net

28,548,523

 

28,136,797

 

28,488,946

 

411,726

 

Premises and equipment, net

492,231

 

487,526

 

510,241

 

4,705

 

Other real estate

85,077

 

76,828

 

83,146

 

8,249

 

Accrued income receivable

203,096

 

200,649

 

209,320

 

2,447

 

Mortgage servicing rights, at fair value

121,570

 

116,567

 

118,395

 

5,003

 

Other assets

1,628,572

 

1,634,839

 

1,737,041

 

(6,267

)

Goodwill

712,616

 

671,122

 

671,122

 

41,494

 

Other intangible assets

13,332

 

19,657

 

22,466

 

(6,325

)

Total assets

$75,088,659

 

$74,189,163

 

$65,926,000

 

$899,496

 

Liabilities and Stockholders’ Equity:

 

 

 

 

Liabilities:

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest bearing

$15,684,482

 

$15,147,567

 

$13,128,699

 

$536,915

 

 

 

Interest bearing

51,320,606

 

50,865,994

 

43,737,641

 

454,612

 

 

 

Total deposits

67,005,088

 

66,013,561

 

56,866,340

 

991,527

 

Assets sold under agreements to repurchase

91,603

 

86,470

 

121,303

 

5,133

 

Other short-term borrowings

75,000

 

-

 

-

 

75,000

 

Notes payable

988,563

 

1,176,943

 

1,224,981

 

(188,380

)

Other liabilities

959,008

 

929,218

 

1,684,689

 

29,790

 

Total liabilities

69,119,262

 

68,206,192

 

59,897,313

 

913,070

 

Stockholders’ equity:

 

 

 

 

Preferred stock

22,143

 

22,143

 

22,143

 

-

 

Common stock

1,046

 

1,046

 

1,045

 

-

 

Surplus

4,650,182

 

4,569,641

 

4,571,534

 

80,541

 

Retained earnings

2,973,745

 

2,882,340

 

2,260,928

 

91,405

 

Treasury stock

(1,352,650

)

(1,352,104

)

(1,016,954

)

(546

)

Accumulated other comprehensive (loss) income, net of tax

(325,069

)

(140,095

)

189,991

 

(184,974

)

 

 

Total stockholders’ equity

5,969,397

 

5,982,971

 

6,028,687

 

(13,574

)

Total liabilities and stockholders’ equity

$75,088,659

 

$74,189,163

 

$65,926,000

 

$899,496

 

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

Variance

 

 

31-Dec-21

 

30-Sep-21

 

31-Dec-20

 

Q4 2021 vs. Q3 2021

 

Q4 2021 vs. Q4 2020

 

($ 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

$42,764

 

$126.4

1.18

%

$41,279

 

$129.8

1.25

%

$32,554

 

$127.2

1.56

%

$1,485

 

($3.4

)

(0.07

)

%

$10,210

 

$(0.8

)

(0.38

)

%

Loans:

Commercial

13,395

 

188.6

5.59

 

13,265

 

179.2

5.36

 

13,610

 

170.2

4.98

 

130

 

9.4

 

0.23

 

 

(215

)

18.4

 

0.61

 

 

Construction

777

 

10.7

5.46

 

854

 

11.6

5.40

 

928

 

12.8

5.48

 

(77

)

(0.9

)

0.06

 

 

(151

)

(2.1

)

(0.02

)

 

Mortgage

7,504

 

96.4

5.14

 

7,652

 

97.8

5.11

 

7,856

 

98.6

5.02

 

(148

)

(1.4

)

0.03

 

 

(352

)

(2.2

)

0.12

 

 

Consumer

2,471

 

68.1

10.93

 

2,435

 

67.7

11.03

 

2,606

 

73.1

11.16

 

36

 

0.4

 

(0.10

)

 

(135

)

(5.0

)

(0.23

)

 

Auto

3,432

 

71.3

8.24

 

3,372

 

71.2

8.37

 

3,130

 

68.8

8.74

 

60

 

0.1

 

(0.13

)

 

302

 

2.5

 

(0.50

)

 

Lease financing

1,359

 

20.3

5.97

 

1,317

 

19.7

5.99

 

1,170

 

17.8

6.07

 

42

 

0.6

 

(0.02

)

 

189

 

2.5

 

(0.10

)

 

Total loans

28,938

 

455.4

6.26

 

28,895

 

447.2

6.15

 

29,300

 

441.3

6.00

 

43

 

8.2

 

0.11

 

 

(362

)

14.1

 

0.26

 

 

Total interest earning assets

$71,702

 

$581.8

3.23

%

$70,174

 

$577.0

3.27

%

$61,854

 

$568.5

3.66

%

$1,528

 

$4.8

 

(0.04

)

%

$9,848

 

$13.3

 

(0.43

)

%

Allowance for credit losses - loan portfolio

(719

)

 

 

 

(778

)

 

 

 

(930

)

 

 

 

59

 

 

 

 

211

 

 

 

 

Allowance for credit losses - investment securities

(9

)

 

 

 

(10

)

 

 

 

(12

)

 

 

 

1

 

 

 

 

3

 

 

 

 

Other non-interest earning assets

3,844

 

 

 

 

3,901

 

 

 

 

4,054

 

 

 

 

(57

)

 

 

 

(210

)

 

 

 

Total average assets

$74,818

 

 

 

 

$73,287

 

 

 

 

$64,966

 

 

 

 

$1,531

 

 

 

 

$9,852

 

 

 

 

Liabilities and Stockholders' Equity:

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market

$28,205

 

$7.7

0.11

%

$27,773

 

$7.9

0.11

%

$21,829

 

$8.7

0.16

%

$432

 

$(0.2

)

-

 

%

$6,376

 

$(1.0

)

(0.05

)

%

Savings

16,324

 

6.8

0.17

 

15,621

 

6.4

0.16

 

13,890

 

7.5

0.22

 

703

 

0.4

 

0.01

 

 

2,434

 

(0.7

)

(0.05

)

 

Time deposits

6,793

 

11.8

0.69

 

6,957

 

12.7

0.73

 

7,656

 

17.2

0.89

 

(164

)

(0.9

)

(0.04

)

 

(863

)

(5.4

)

(0.20

)

 

Total interest-bearing deposits

51,322

 

26.3

0.20

 

50,351

 

27.0

0.21

 

43,375

 

33.4

0.31

 

971

 

(0.7

)

(0.01

)

 

7,947

 

(7.1

)

(0.11

)

 

Borrowings

1,163

 

11.6

4.01

 

1,284

 

13.7

4.28

 

1,354

 

14.4

4.26

 

(121

)

(2.1

)

(0.27

)

 

(191

)

(2.8

)

(0.25

)

 

Total interest-bearing liabilities

52,485

 

37.9

0.29

 

51,635

 

40.7

0.31

 

44,729

 

47.8

0.43

 

850

 

(2.8

)

(0.02

)

 

7,756

 

(9.9

)

(0.14

)

 

Net interest spread

 

 

2.94

%

 

 

2.96

%

 

 

3.23

%

 

 

(0.02

)

%

 

 

(0.29

)

%

Non-interest bearing deposits

15,455

 

 

 

 

14,955

 

 

 

 

13,303

 

 

 

 

500

 

 

 

 

2,152

 

 

 

 

Other liabilities

917

 

 

 

 

927

 

 

 

 

1,393

 

 

 

 

(10

)

 

 

 

(476

)

 

 

 

Stockholders' equity

5,961

 

 

 

 

5,770

 

 

 

 

5,541

 

 

 

 

191

 

 

 

 

420

 

 

 

 

Total average liabilities and stockholders' equity

$74,818

 

 

 

 

$73,287

 

 

 

 

$64,966

 

 

 

 

$1,531

 

 

 

 

$9,852

 

 

 

 

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

$543.9

3.02

%

 

$536.3

3.04

%

 

$520.7

3.35

%

 

$7.6

 

(0.02

)

%

 

$23.2

 

(0.33

)

%

Taxable equivalent adjustment

42.6

 

 

 

46.9

 

 

 

49.1

 

 

 

(4.3

)

 

 

 

(6.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$501.3

2.78

%

 

$489.4

2.77

%

 

$471.6

3.04

%

 

$11.9

 

0.01

 

%

 

$29.7

 

(0.26

)

%

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)

 

Years ended

 

 

 

 

 

 

31-Dec-21

 

31-Dec-20

 

Variance

 

 

Average

Income/

Yield/

 

Average

Income/

Yield/

 

Average

Income/

Yield/

 

($ amounts in millions)

balance

Expense

Rate

 

balance

Expense

Rate

 

balance

Expense

Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market, trading and investment securities

$39,015

 

$533.6

1.37

%

$28,020

 

$491.9

1.76

%

$10,995

 

$41.7

 

(0.39

)

%

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

13,455

 

723.8

5.39

 

13,245

 

692.4

5.23

 

210

 

31.4

 

0.16

 

 

Construction

849

 

45.8

5.41

 

913

 

52.4

5.74

 

(64

)

(6.6

)

(0.33

)

 

Mortgage

7,696

 

392.0

5.09

 

7,255

 

379.8

5.23

 

441

 

12.2

 

(0.14

)

 

Consumer

2,463

 

275.1

11.17

 

2,839

 

322.0

11.34

 

(376

)

(46.9

)

(0.17

)

 

Auto

3,322

 

280.7

8.47

 

3,021

 

271.2

8.97

 

301

 

9.5

 

(0.50

)

 

Lease financing

1,289

 

77.4

6.00

 

1,112

 

67.2

6.05

 

177

 

10.2

 

(0.05

)

 

Total loans

29,074

 

1,794.8

6.19

 

28,385

 

1,785.0

6.29

 

689

 

9.8

 

(0.10

)

 

Total interest earning assets

$68,089

 

$2,328.4

3.43

%

$56,405

 

$2,276.9

4.04

%

$11,684

 

$51.5

 

(0.61

)

%

Allowance for credit losses - loan portfolio

(796

)

 

 

 

(897

)

 

 

 

101

 

 

 

 

Allowance for credit losses - investment securities

(10

)

 

 

 

(13

)

 

 

 

3

 

 

 

 

Other non-interest earning assets

3,886

 

 

 

 

4,089

 

 

 

 

(203

)

 

 

 

Total average assets

$71,169

 

 

 

 

$59,584

 

 

 

 

$11,585

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market

$25,959

 

$31.9

0.12

%

$19,678

 

$54.7

0.28

%

$6,281

 

($22.8

)

(0.16

)

%

Savings

15,429

 

27.1

0.18

 

12,399

 

37.8

0.30

 

3,030

 

(10.7

)

(0.12

)

 

Time deposits

7,028

 

52.6

0.75

 

7,971

 

83.4

1.05

 

(943

)

(30.8

)

(0.30

)

 

Total interest-bearing deposits

48,416

 

111.6

0.23

 

40,048

 

175.9

0.44

 

8,368

 

(64.3

)

(0.21

)

 

Borrowings

1,276

 

53.4

4.19

 

1,344

 

59.1

4.40

 

(68

)

(5.7

)

(0.21

)

 

Total interest-bearing liabilities

49,692

 

165.0

0.33

 

41,392

 

235.0

0.57

 

8,300

 

(70.0

)

(0.24

)

 

Net interest spread

 

 

3.10

%

 

 

3.47

%

 

 

(0.37

)

%

Non-interest bearing deposits

14,687

 

 

 

 

11,538

 

 

 

 

3,149

 

 

 

 

Other liabilities

1,012

 

 

 

 

1,234

 

 

 

 

(222

)

 

 

 

Stockholders' equity

5,778

 

 

 

 

5,420

 

 

 

 

358

 

 

 

 

Total average liabilities and stockholders' equity

$71,169

 

 

 

 

$59,584

 

 

 

 

$11,585

 

 

 

 

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

$2,163.4

3.19

%

 

$2,041.9

3.62

%

 

$121.5

 

(0.43

)

%

Taxable equivalent adjustment

205.8

 

 

 

185.4

 

 

 

20.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$1,957.6

2.88

%

 

$1,856.6

3.29

%

 

$101.0

 

(0.41

)

%

Popular, Inc.

 

 

 

 

 

 

 

 

Financial Supplement to Fourth Quarter 2021 Earnings Release

 

 

 

 

Table F - Mortgage Banking Activities and Other Service Fees

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Banking Activities

 

 

 

 

 

 

 

 

 

Quarters ended

Variance

Years ended

Variance

(In thousands)

31-Dec-21

30-Sep-21

31-Dec-20

Q4 2021
vs. Q3 2021

Q4 2021
vs. Q4 2020

31-Dec-21

31-Dec-20

2021 vs. 2020

Mortgage servicing fees, net of fair value adjustments:

 

 

 

 

 

 

 

 

 

Mortgage servicing fees

$9,492

 

$9,376

 

$10,242

 

$116

 

$(750

)

$38,105

 

$43,234

 

$(5,129

)

 

Mortgage servicing rights fair value adjustments

1,500

 

(5,979

)

(8,695

)

7,479

 

10,195

 

(10,206

)

(42,055

)

31,849

 

Total mortgage servicing fees, net of fair value adjustments

10,992

 

3,397

 

1,547

 

7,595

 

9,445

 

27,899

 

1,179

 

26,720

 

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

5,428

 

6,084

 

10,826

 

(656

)

(5,398

)

21,684

 

31,215

 

(9,531

)

Trading account profit (loss):

 

 

 

 

 

 

 

 

 

Unrealized gains on outstanding derivative positions

-

 

-

 

4

 

-

 

(4

)

-

 

-

 

-

 

 

Realized gains (losses) on closed derivative positions

691

 

(1,004

)

(2,195

)

1,695

 

2,886

 

1,323

 

(10,586

)

11,909

 

Total trading account profit (loss)

691

 

(1,004

)

(2,191

)

1,695

 

2,882

 

1,323

 

(10,586

)

11,909

 

Losses on repurchased loans, including interest advances

(76

)

(170

)

(452

)

94

 

376

 

(773

)

(11,407

)

10,634

 

Total mortgage banking activities

$17,035

 

$8,307

 

$9,730

 

$8,728

 

$7,305

 

$50,133

 

$10,401

 

$39,732

 

 

 

 

 

 

 

 

 

 

 

 

Other Service Fees

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

Variance

Years ended

Variance

(In thousands)

 

31-Dec-21

30-Sep-21

31-Dec-20

Q4 2021
vs. Q3 2021

Q4 2021
2020

31-Dec-21

31-Dec-20

2021 vs.
2020

Other service fees:

 

 

 

 

 

 

 

 

 

 

Debit card fees

 

$12,392

$12,210

$11,210

$182

 

$1,182

 

$48,637

$39,652

$8,985

 

 

Insurance fees

 

17,848

14,385

13,803

3,463

 

4,045

 

57,834

52,014

5,820

 

 

Credit card fees

 

35,649

33,409

27,986

2,240

 

7,663

 

130,475

96,011

34,464

 

 

Sale and administration of investment products

 

5,908

6,216

5,488

(308

)

420

 

23,634

21,755

1,879

 

 

Trust fees

 

5,858

6,453

5,499

(595

)

359

 

24,318

21,191

3,127

 

 

Other fees

 

6,138

7,772

7,170

(1,634

)

(1,032

)

26,350

27,269

(919

)

Total other service fees

 

$83,793

$80,445

$71,156

$3,348

 

$12,637

 

$311,248

$257,892

$53,356

 

Popular, Inc.

 

 

 

 

 

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table G - Loans and Deposits

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Loans - Ending Balances

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

31-Dec-21

30-Sep-21

31-Dec-20

Q4 2021
vs. Q3 2021

Q4 2021
vs. Q4 2020

Loans held-in-portfolio:

 

 

 

 

Commercial

$13,736,033

$13,303,671

$13,614,310

$432,362

 

$121,723

 

Construction

716,220

801,040

926,208

(84,820

)

(209,988

)

Leasing

1,381,319

1,348,679

1,197,661

32,640

 

183,658

 

Mortgage

7,427,196

7,539,152

7,890,680

(111,956

)

(463,484

)

Auto

3,412,187

3,376,694

3,132,228

35,493

 

279,959

 

Consumer

2,570,934

2,486,136

2,624,109

84,798

 

(53,175

)

Total loans held-in-portfolio

$29,243,889

$28,855,372

$29,385,196

$388,517

 

$(141,307

)

Loans held-for-sale:

 

 

 

 

 

Commercial

$-

$-

$2,738

$-

 

$(2,738

)

Mortgage

59,168

91,313

96,717

(32,145

)

(37,549

)

Total loans held-for-sale

$59,168

$91,313

$99,455

$(32,145

)

$(40,287

)

Total loans

$29,303,057

$28,946,685

$29,484,651

$356,372

 

$(181,594

)

Deposits - Ending Balances

 

 

 

 

 

 

 

 

Variance

(In thousands)

31-Dec-21

30-Sep-21

31-Dec-20

Q4 2021
vs. Q3 2021

Q4 2021
vs. Q4 2020

Demand deposits [1]

$25,889,732

$25,495,481

$22,532,729

$394,251

 

$3,357,003

 

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

33,674,134

32,867,805

26,390,565

806,329

 

7,283,569

 

Savings, NOW and money market deposits (brokered)

729,073

718,155

635,198

10,918

 

93,875

 

Time deposits (non-brokered)

6,685,938

6,906,509

7,130,749

(220,571

)

(444,811

)

Time deposits (brokered CDs)

26,211

25,611

177,099

600

 

(150,888

)

Total deposits

$67,005,088

$66,013,561

$56,866,340

$991,527

 

$10,138,748

 

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

 

 

 

 

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to Fourth Quarter 2021 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table H - Loan Delinquency - Puerto Rico Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Sep-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

 

$

392

 

$

-

 

$

396

 

$

788

 

$

149,639

 

$

150,427

 

 

$

396

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

661

 

 

17,383

 

 

60,143

 

 

78,187

 

 

2,268,441

 

 

2,346,628

 

 

 

60,143

 

 

-

 

Owner occupied

 

 

2,719

 

 

614

 

 

71,863

 

 

75,196

 

 

1,394,503

 

 

1,469,699

 

 

 

71,863

 

 

-

Commercial and industrial

 

 

1,641

 

 

576

 

 

51,456

 

 

53,673

 

 

3,618,266

 

 

3,671,939

 

 

 

50,992

 

 

464

Construction

 

 

-

 

 

-

 

 

14,877

 

 

14,877

 

 

112,602

 

 

127,479

 

 

 

14,877

 

 

-

Mortgage

 

 

197,955

 

 

76,345

 

 

896,208

 

 

1,170,508

 

 

5,204,541

 

 

6,375,049

 

 

 

354,555

 

 

541,653

Leasing

 

 

8,193

 

 

1,969

 

 

2,542

 

 

12,704

 

 

1,335,975

 

 

1,348,679

 

 

 

2,542

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

5,211

 

 

3,667

 

 

7,558

 

 

16,436

 

 

870,139

 

 

886,575

 

 

 

-

 

 

7,558

 

Home equity lines of credit

 

 

46

 

 

-

 

 

-

 

 

46

 

 

3,507

 

 

3,553

 

 

 

-

 

 

-

 

Personal

 

 

9,329

 

 

5,954

 

 

21,646

 

 

36,929

 

 

1,238,448

 

 

1,275,377

 

 

 

21,646

 

 

-

 

Auto

 

 

52,486

 

 

11,663

 

 

17,345

 

 

81,494

 

 

3,295,200

 

 

3,376,694

 

 

 

17,345

 

 

-

 

Other

 

 

393

 

 

76

 

 

14,621

 

 

15,090

 

 

108,492

 

 

123,582

 

 

 

14,512

 

 

109

Total

 

$

279,026

 

$

118,247

 

$

1,158,655

 

$

1,555,928

 

$

19,599,753

 

$

21,155,681

 

 

$

608,871

 

$

549,784

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

 

$

(78

)

 

$

-

 

 

$

(124

)

 

$

(202

)

 

$

4,544

 

 

$

4,342

 

 

 

$

(124

)

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

1,738

 

 

 

(17,247

)

 

 

(39,427

)

 

 

(54,936

)

 

 

(1,769

)

 

 

(56,705

)

 

 

 

(39,427

)

 

 

-

 

 

Owner occupied

 

 

610

 

 

 

(336

)

 

 

(17,528

)

 

 

(17,254

)

 

 

(28,716

)

 

 

(45,970

)

 

 

 

(17,528

)

 

 

-

 

Commercial and industrial

 

 

1,797

 

 

 

1,151

 

 

 

(6,214

)

 

 

(3,266

)

 

 

(140,225

)

 

 

(143,491

)

 

 

 

(6,268

)

 

 

54

 

Construction

 

 

-

 

 

 

-

 

 

 

(14,392

)

 

 

(14,392

)

 

 

(25,976

)

 

 

(40,368

)

 

 

 

(14,392

)

 

 

-

 

Mortgage

 

 

19,875

 

 

 

5,409

 

 

 

(90,963

)

 

 

(65,679

)

 

 

(57,504

)

 

 

(123,183

)

 

 

 

(20,668

)

 

 

(70,295

)

Leasing

 

 

1,047

 

 

 

68

 

 

 

560

 

 

 

1,675

 

 

 

30,965

 

 

 

32,640

 

 

 

 

560

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

557

 

 

 

(147

)

 

 

1,019

 

 

 

1,429

 

 

 

31,847

 

 

 

33,276

 

 

 

 

-

 

 

 

1,019

 

 

Home equity lines of credit

 

 

-

 

 

 

-

 

 

 

23

 

 

 

23

 

 

 

(5

)

 

 

18

 

 

 

 

-

 

 

 

23

 

 

Personal

 

 

698

 

 

 

118

 

 

 

(411

)

 

 

405

 

 

 

12,278

 

 

 

12,683

 

 

 

 

(411

)

 

 

-

 

 

Auto

 

 

6,642

 

 

 

3,356

 

 

 

5,740

 

 

 

15,738

 

 

 

19,755

 

 

 

35,493

 

 

 

 

5,740

 

 

 

-

 

 

Other

 

 

39

 

 

 

638

 

 

 

(2,000

)

 

 

(1,323

)

 

 

2,289

 

 

 

966

 

 

 

 

(2,064

)

 

 

64

 

Total

 

$

32,925

 

 

$

(6,990

)

 

$

(163,717

)

 

$

(137,782

)

 

$

(152,517

)

 

$

(290,299

)

 

 

$

(94,582

)

 

$

(69,135

)

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to Fourth Quarter 2021 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

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

 

 

1,797,358

 

 

1,813,463

 

 

 

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

 

$

8,305,560

 

$

8,378,507

 

 

$

33,588

 

$

118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2021

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

 

$

-

 

$

22,171

 

$

-

 

$

22,171

 

$

1,709,508

 

$

1,731,679

 

 

$

-

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

2,569

 

 

4,632

 

 

374

 

 

7,575

 

 

2,029,514

 

 

2,037,089

 

 

 

374

 

 

-

 

Owner occupied

 

 

1,158

 

 

-

 

 

986

 

 

2,144

 

 

343,430

 

 

345,574

 

 

 

986

 

 

-

Commercial and industrial

 

 

804

 

 

1

 

 

1,428

 

 

2,233

 

 

1,548,403

 

 

1,550,636

 

 

 

1,427

 

 

1

Construction

 

 

14,978

 

 

-

 

 

-

 

 

14,978

 

 

658,583

 

 

673,561

 

 

 

-

 

 

-

Mortgage

 

 

1,369

 

 

2,833

 

 

14,488

 

 

18,690

 

 

1,145,413

 

 

1,164,103

 

 

 

14,488

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

26

 

 

26

 

 

 

-

 

 

-

 

Home equity lines of credit

 

 

690

 

 

76

 

 

5,941

 

 

6,707

 

 

73,042

 

 

79,749

 

 

 

5,941

 

 

-

 

Personal

 

 

588

 

 

544

 

 

748

 

 

1,880

 

 

111,598

 

 

113,478

 

 

 

748

 

 

-

 

Other

 

 

16

 

 

-

 

 

-

 

 

16

 

 

3,780

 

 

3,796

 

 

 

-

 

 

-

Total

 

$

22,172

 

$

30,257

 

$

23,965

 

$

76,394

 

$

7,623,297

 

$

7,699,691

 

 

$

23,964

 

$

1

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

 

 

$

(22,171

)

 

$

-

 

 

$

(18,345

)

 

$

94,527

 

 

$

76,182

 

 

 

$

-

 

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

3,152

 

 

 

(3,949

)

 

 

248

 

 

 

(549

)

 

 

286,927

 

 

 

286,378

 

 

 

 

248

 

 

 

-

 

Owner occupied

 

 

(63

)

 

 

-

 

 

 

27

 

 

 

(36

)

 

 

48,835

 

 

 

48,799

 

 

 

 

27

 

 

 

-

Commercial and industrial

 

 

8,606

 

 

 

2,679

 

 

 

2,587

 

 

 

13,872

 

 

 

248,955

 

 

 

262,827

 

 

 

 

2,470

 

 

 

117

Construction

 

 

(14,978

)

 

 

-

 

 

 

-

 

 

 

(14,978

)

 

 

(29,474

)

 

 

(44,452

)

 

 

 

-

 

 

 

-

Mortgage

 

 

10,342

 

 

 

(260

)

 

 

7,481

 

 

 

17,563

 

 

 

(6,336

)

 

 

11,227

 

 

 

 

7,481

 

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(16

)

 

 

(16

)

 

 

 

-

 

 

 

-

 

Home equity lines of credit

 

 

(619

)

 

 

(42

)

 

 

(535

)

 

 

(1,196

)

 

 

(3,262

)

 

 

(4,458

)

 

 

 

(535

)

 

 

-

 

Personal

 

 

275

 

 

 

30

 

 

 

(67

)

 

 

238

 

 

 

41,229

 

 

 

41,467

 

 

 

 

(67

)

 

 

-

 

Other

 

 

(16

)

 

 

-

 

 

 

-

 

 

 

(16

)

 

 

878

 

 

 

862

 

 

 

 

-

 

 

 

-

Total

 

$

10,525

 

 

$

(23,713

)

 

$

9,741

 

 

$

(3,447

)

 

$

682,263

 

 

$

678,816

 

 

 

$

9,624

 

 

$

117

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to Fourth Quarter 2021 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table J - Loan Delinquency - Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

5,275,399

 

 

5,341,911

 

 

 

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

 

$

27,752,796

 

$

29,243,889

 

 

$

547,877

 

$

480,767

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Sep-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

$

392

 

$

22,171

 

$

396

 

$

22,959

 

$

1,859,147

 

$

1,882,106

 

 

$

396

 

$

-

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

3,230

 

 

22,015

 

 

60,517

 

 

85,762

 

 

4,297,955

 

 

4,383,717

 

 

 

60,517

 

 

-

 

Owner occupied

 

3,877

 

 

614

 

 

72,849

 

 

77,340

 

 

1,737,933

 

 

1,815,273

 

 

 

72,849

 

 

-

Commercial and industrial

 

2,445

 

 

577

 

 

52,884

 

 

55,906

 

 

5,166,669

 

 

5,222,575

 

 

 

52,419

 

 

465

Construction

 

14,978

 

 

-

 

 

14,877

 

 

29,855

 

 

771,185

 

 

801,040

 

 

 

14,877

 

 

-

Mortgage

 

199,324

 

 

79,178

 

 

910,696

 

 

1,189,198

 

 

6,349,954

 

 

7,539,152

 

 

 

369,043

 

 

541,653

Leasing

 

8,193

 

 

1,969

 

 

2,542

 

 

12,704

 

 

1,335,975

 

 

1,348,679

 

 

 

2,542

 

 

-

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

5,211

 

 

3,667

 

 

7,558

 

 

16,436

 

 

870,165

 

 

886,601

 

 

 

-

 

 

7,558

 

Home equity lines of credit

 

736

 

 

76

 

 

5,941

 

 

6,753

 

 

76,549

 

 

83,302

 

 

 

5,941

 

 

-

 

Personal

 

9,917

 

 

6,498

 

 

22,394

 

 

38,809

 

 

1,350,046

 

 

1,388,855

 

 

 

22,394

 

 

-

 

Auto

 

52,486

 

 

11,663

 

 

17,345

 

 

81,494

 

 

3,295,200

 

 

3,376,694

 

 

 

17,345

 

 

-

 

Other

 

409

 

 

76

 

 

14,621

 

 

15,106

 

 

112,272

 

 

127,378

 

 

 

14,512

 

 

109

Total

$

301,198

 

$

148,504

 

$

1,182,620

 

$

1,632,322

 

$

27,223,050

 

$

28,855,372

 

 

$

632,835

 

$

549,785

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

$

3,748

 

 

$

(22,171

)

 

$

(124

)

 

$

(18,547

)

 

$

99,071

 

 

$

80,524

 

 

 

$

(124

)

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

4,890

 

 

 

(21,196

)

 

 

(39,179

)

 

 

(55,485

)

 

 

285,158

 

 

 

229,673

 

 

 

 

(39,179

)

 

 

-

 

 

Owner occupied

 

547

 

 

 

(336

)

 

 

(17,501

)

 

 

(17,290

)

 

 

20,119

 

 

 

2,829

 

 

 

 

(17,501

)

 

 

-

 

Commercial and industrial

 

10,403

 

 

 

3,830

 

 

 

(3,627

)

 

 

10,606

 

 

 

108,730

 

 

 

119,336

 

 

 

 

(3,798

)

 

 

171

 

Construction

 

(14,978

)

 

 

-

 

 

 

(14,392

)

 

 

(29,370

)

 

 

(55,450

)

 

 

(84,820

)

 

 

 

(14,392

)

 

 

-

 

Mortgage

 

30,217

 

 

 

5,149

 

 

 

(83,482

)

 

 

(48,116

)

 

 

(63,840

)

 

 

(111,956

)

 

 

 

(13,187

)

 

 

(70,295

)

Leasing

 

1,047

 

 

 

68

 

 

 

560

 

 

 

1,675

 

 

 

30,965

 

 

 

32,640

 

 

 

 

560

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

557

 

 

 

(147

)

 

 

1,019

 

 

 

1,429

 

 

 

31,831

 

 

 

33,260

 

 

 

 

-

 

 

 

1,019

 

 

Home equity lines of credit

 

(619

)

 

 

(42

)

 

 

(512

)

 

 

(1,173

)

 

 

(3,267

)

 

 

(4,440

)

 

 

 

(535

)

 

 

23

 

 

Personal

 

973

 

 

 

148

 

 

 

(478

)

 

 

643

 

 

 

53,507

 

 

 

54,150

 

 

 

 

(478

)

 

 

-

 

 

Auto

 

6,642

 

 

 

3,356

 

 

 

5,740

 

 

 

15,738

 

 

 

19,755

 

 

 

35,493

 

 

 

 

5,740

 

 

 

-

 

 

Other

 

23

 

 

 

638

 

 

 

(2,000

)

 

 

(1,339

)

 

 

3,167

 

 

 

1,828

 

 

 

 

(2,064

)

 

 

64

 

Total

$

43,450

 

 

$

(30,703

)

 

$

(153,976

)

 

$

(141,229

)

 

$

529,746

 

 

$

388,517

 

 

 

$

(84,958

)

 

$

(69,018

)

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table K - Non-Performing Assets

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Variance

(Dollars in thousands)

31-Dec-21

As a % of
loans HIP by
category

 

30-Sep-21

As a % of
loans HIP by
category

 

31-Dec-20

As a % of
loans HIP by
category

 

Q4 2021 vs.
Q3 2021

Q4 2021 vs.
Q4 2020

Non-accrual loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$125,579

0.9

%

$186,181

1.4

%

$210,080

1.5

%

$(60,602

)

$(84,501

)

Construction

485

0.1

 

14,877

1.9

 

29,057

3.1

 

(14,392

)

(28,572

)

Leasing

3,102

0.2

 

2,542

0.2

 

3,441

0.3

 

560

 

(339

)

Mortgage

355,856

4.8

 

369,043

4.9

 

429,207

5.4

 

(13,187

)

(73,351

)

Auto

23,085

0.7

 

17,345

0.5

 

15,736

0.5

 

5,740

 

7,349

 

Consumer

39,770

1.5

 

42,847

1.7

 

50,253

1.9

 

(3,077

)

(10,483

)

Total non-performing loans held-in-portfolio

547,877

1.9

%

632,835

2.2

%

737,774

2.5

%

(84,958

)

(189,897

)

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

-

 

 

-

 

 

2,738

 

 

-

 

(2,738

)

Other real estate owned (“OREO”)

85,077

 

 

76,828

 

 

83,146

 

 

8,249

 

1,931

 

Total non-performing assets

$632,954

 

 

$709,663

 

 

$823,658

 

 

$(76,709

)

$(190,704

)

Accruing loans past due 90 days or more [2]

$480,767

 

 

$549,785

 

 

$1,028,064

 

 

$(69,018

)

$(547,297

)

Ratios:

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets to total assets

0.84

%

 

0.96

%

 

1.25

%

 

 

 

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

1.87

 

 

2.19

 

 

2.51

 

 

 

 

Allowance for credit losses to loans held-in-portfolio

2.38

 

 

2.49

 

 

3.05

 

 

 

 

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

126.92

 

 

113.55

 

 

121.48

 

 

 

 

[1] There were no non-performing loans held-for-sale as of December 31, 2021 and September 30, 2021 (December 31, 2020 - $3 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 December 31, 2021, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (September 30, 2021 - $12 million; December 31, 2020 - $57 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 $304 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2021 (September 30, 2021 - $350 million; December 31, 2020 - $329 million). Furthermore, the Corporation has approximately $50 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 (September 30, 2021 - $53 million; December 31, 2020 - $60 million).

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)

 

 

 

 

 

 

 

 

Commercial loans held-in-portfolio:

 

 

Quarter ended

Quarter ended

 

 

31-Dec-21

30-Sep-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$183,394

 

$2,787

 

$186,181

 

$217,703

 

$7,862

 

$225,565

 

Plus:

 

 

 

 

 

 

 

New non-performing loans

2,297

 

3,208

 

5,505

 

7,454

 

1,039

 

8,493

 

 

Advances on existing non-performing loans

-

 

35

 

35

 

-

 

10

 

10

 

Less:

 

 

 

 

 

 

 

Non-performing loans transferred to OREO

(996

)

-

 

(996

)

(2,069

)

-

 

(2,069

)

 

Non-performing loans charged-off

(2,412

)

(66

)

(2,478

)

(8,617

)

-

 

(8,617

)

 

Loans returned to accrual status / loan collections

(62,236

)

(432

)

(62,668

)

(31,077

)

(6,124

)

(37,201

)

Ending balance NPLs

$120,047

 

$5,532

 

$125,579

 

$183,394

 

$2,787

 

$186,181

 

 

 

 

 

 

 

 

 

Construction loans held-in-portfolio:

 

 

Quarter ended

Quarter ended

 

 

31-Dec-21

30-Sep-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$14,877

 

$-

 

$14,877

 

$14,877

 

$-

 

$14,877

 

Plus:

 

 

 

 

 

 

 

New non-performing loans

481

 

-

 

481

 

-

 

-

 

-

 

Less:

 

 

 

 

 

 

 

Loans returned to accrual status / loan collections

(14,873

)

-

 

(14,873

)

-

 

-

 

-

 

Ending balance NPLs

$485

 

$-

 

$485

 

$14,877

 

$-

 

$14,877

 

 

 

 

 

 

 

 

 

Mortgage loans held-in-portfolio:

 

 

Quarter ended

Quarter ended

 

 

31-Dec-21

30-Sep-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$354,555

 

$14,488

 

$369,043

 

$370,653

 

$13,323

 

$383,976

 

Plus:

 

 

 

 

 

 

 

New non-performing loans

36,210

 

12,084

 

48,294

 

38,606

 

4,662

 

43,268

 

 

Advances on existing non-performing loans

-

 

14

 

14

 

-

 

2

 

2

 

Less:

 

 

 

 

 

 

 

Non-performing loans transferred to OREO

(7,116

)

-

 

(7,116

)

(8,984

)

-

 

(8,984

)

 

Non-performing loans charged-off

(366

)

(26

)

(392

)

(1,023

)

-

 

(1,023

)

 

Loans returned to accrual status / loan collections

(49,396

)

(4,591

)

(53,987

)

(44,697

)

(3,499

)

(48,196

)

Ending balance NPLs

$333,887

 

$21,969

 

$355,856

 

$354,555

 

$14,488

 

$369,043

 

 

 

 

 

 

 

 

 

Total non-performing loans held-in-portfolio (excluding consumer):

 

 

Quarter ended

Quarter ended

 

 

31-Dec-21

30-Sep-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$552,826

 

$17,275

 

$570,101

 

$603,233

 

$21,185

 

$624,418

 

Plus:

 

 

 

 

 

 

 

New non-performing loans

38,988

 

15,292

 

54,280

 

46,060

 

5,701

 

51,761

 

 

Advances on existing non-performing loans

-

 

49

 

49

 

-

 

12

 

12

 

Less:

 

 

 

 

 

 

 

Non-performing loans transferred to OREO

(8,112

)

-

 

(8,112

)

(11,053

)

-

 

(11,053

)

 

Non-performing loans charged-off

(2,778

)

(92

)

(2,870

)

(9,640

)

-

 

(9,640

)

 

Loans returned to accrual status / loan collections

(126,505

)

(5,023

)

(131,528

)

(75,774

)

(9,623

)

(85,397

)

Ending balance NPLs

$454,419

 

$27,501

 

$481,920

 

$552,826

 

$17,275

 

$570,101

 

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

(Dollars in thousands)

31-Dec-21

 

30-Sep-21

 

31-Dec-20

 

Balance at beginning of period - loans held-in-portfolio

$718,575

 

 

$785,790

 

 

$925,850

 

 

Provision for credit losses (benefit)

(31,421

)

 

(58,645

)

 

10,785

 

 

Initial allowance for credit losses - PCD Loans

331

 

 

253

 

 

1,693

 

 

 

687,485

 

 

727,398

 

 

938,328

 

 

Net loans charged-off (recovered):

 

 

 

 

 

 

BPPR

 

 

 

 

 

 

Commercial

(11,346

)

 

4,357

 

 

17,171

 

 

Construction

(1,518

)

 

(2,223

)

 

(584

)

 

Lease financing

564

 

 

304

 

 

996

 

 

Mortgage

(4,398

)

 

(2,111

)

 

4,579

 

 

Consumer

9,083

 

 

9,009

 

 

19,055

 

 

Total BPPR

(7,615

)

 

9,336

 

 

41,217

 

 

Popular U.S.

 

 

 

 

 

 

Commercial

(387

)

 

(463

)

 

(1,739

)

 

Construction

(213

)

 

-

 

 

444

 

 

Mortgage

569

 

 

(48

)

 

15

 

 

Consumer

(235

)

 

(2

)

 

2,141

 

 

Total Popular U.S.

(266

)

 

(513

)

 

861

 

 

Total loans charged-off (recovered) - Popular, Inc.

(7,881

)

 

8,823

 

 

42,078

 

 

Balance at end of period - loans held-in-portfolio

$695,366

 

 

$718,575

 

 

$896,250

 

 

 

 

 

 

 

 

 

Balance at beginning of period - unfunded commitments

$8,400

 

 

$9,936

 

 

$13,295

 

 

Provision for credit losses (benefit)

(503

)

 

(1,536

)

 

2,556

 

 

Balance at end of period - unfunded commitments [1]

$7,897

 

 

$8,400

 

 

$15,851

 

 

 

 

 

 

 

 

 

POPULAR, INC.

 

 

 

 

 

 

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

(0.11

)

%

0.12

 

%

0.58

 

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

N.M.

 

N.M.

 

25.63

 

%

BPPR

 

 

 

 

 

 

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

(0.15

)

%

0.18

 

%

0.77

 

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

N.M.

 

N.M.

 

60.06

 

%

Popular U.S.

 

 

 

 

 

 

Annualized net charge-offs to average loans held-in-portfolio

(0.01

)

%

(0.03

)

%

0.04

 

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

N.M.

 

N.M.

 

N.M.

 

N.M. - Not meaningful.

[1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended

 

Year ended

 

(Dollars in thousands)

 

 

31-Dec-21

 

31-Dec-20

 

 

 

 

Total

 

Total

 

Balance at beginning of period - loans held-in-portfolio

 

 

$896,250

 

 

$477,708

 

 

Impact of adopting CECL

 

 

-

 

 

315,107

 

 

Provision for credit losses (benefit)

 

 

(183,345

)

 

282,336

 

 

Initial allowance for credit losses - PCD Loans

 

 

3,142

 

 

7,512

 

 

 

 

 

716,047

 

 

1,082,663

 

 

Net loans charged-off (recovered):

 

 

 

 

 

 

BPPR

 

 

 

 

 

 

Commercial

 

 

(18,300

)

 

16,889

 

 

Construction

 

 

1,697

 

 

(954

)

 

Lease financing

 

 

1,379

 

 

7,364

 

 

Mortgage

 

 

2,729

 

 

19,635

 

 

Consumer

 

 

32,207

 

 

133,712

 

 

Total BPPR

 

 

19,712

 

 

176,646

 

 

 

 

 

 

 

 

 

Popular U.S.

 

 

 

 

 

 

Commercial

 

 

(1,247

)

 

(2,215

)

 

Construction

 

 

(120

)

 

289

 

 

Mortgage

 

 

18

 

 

(10

)

 

Consumer

 

 

2,318

 

 

11,703

 

 

Total Popular U.S.

 

 

969

 

 

9,767

 

 

Total loans charged-off - Popular, Inc.

 

 

20,681

 

 

186,413

 

 

Balance at end of period - loans held-in-portfolio

 

 

$695,366

 

 

$896,250

 

 

 

 

 

 

 

 

 

Balance at beginning of period - unfunded commitments

 

 

$15,851

 

 

$8,717

 

 

Impact of adopting CECL

 

 

-

 

 

(5,460

)

 

Provision for credit losses (benefit)

 

 

(7,954

)

 

12,594

 

 

Balance at end of period - unfunded commitments [1]

 

 

$7,897

 

 

$15,851

 

 

 

 

 

 

 

 

 

POPULAR, INC.

 

 

 

 

 

 

Annualized net charge-offs to average loans held-in-portfolio

 

 

0.07

 

%

0.66

 

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

 

 

N.M.

 

151.46

 

%

 

 

 

 

 

 

 

BPPR

 

 

 

 

 

 

Annualized net charge-offs to average loans held-in-portfolio

 

 

0.09

 

%

0.85

 

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

 

 

N.M.

 

116.54

 

%

 

 

 

 

 

 

 

Popular U.S.

 

 

 

 

 

 

Annualized net charge-offs to average loans held-in-portfolio

 

 

0.01

 

%

0.13

 

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

 

 

N.M.

 

782.95

 

%

N.M. - Not meaningful.

[1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Dec-21

(Dollars in thousands)

 

Commercial

 

Construction

 

Mortgage

 

Lease
financing

 

Consumer

 

Total

 

Total ACL

 

$215,805

 

 

$6,363

 

 

$154,478

 

 

$17,578

 

$301,142

 

$695,366

 

 

Total loans held-in-portfolio

 

$13,736,033

 

 

$716,220

 

 

$7,427,196

 

 

$1,381,319

 

$5,983,121

 

$29,243,889

 

 

ACL to loans held-in-portfolio

 

1.57

 

%

0.89

 

%

2.08

 

%

1.27

%

5.03

%

2.38

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Sep-21

(Dollars in thousands)

 

Commercial

 

Construction

 

Mortgage

 

Lease
financing

 

Consumer

 

Total

 

Total ACL

 

$234,814

 

 

$9,850

 

 

$170,378

 

 

$11,634

 

$291,899

 

$718,575

 

 

Total loans held-in-portfolio

 

$13,303,671

 

 

$801,040

 

 

$7,539,152

 

 

$1,348,679

 

$5,862,830

 

$28,855,372

 

 

ACL to loans held-in-portfolio

 

1.77

 

%

1.23

 

%

2.26

 

%

0.86

%

4.98

%

2.49

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

(Dollars in thousands)

 

Commercial

 

Construction

 

Mortgage

 

Lease
financing

 

Consumer

 

Total

 

Total ACL

 

$(19,009

)

 

$(3,487

)

 

$(15,900

)

 

$5,944

 

$9,243

 

$(23,209

)

 

Total loans held-in-portfolio

 

$432,362

 

 

$(84,820

)

 

$(111,956

)

 

$32,640

 

$120,291

 

$388,517

 

 

Popular, Inc.

 

Financial Supplement to Fourth Quarter 2021 Earnings Release

 

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

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Dec-21

 

Puerto Rico

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Lease
financing

 

Consumer

 

Total

 

ACL

$151,928

 

 

$1,641

 

 

$138,286

 

 

$17,578

 

$284,729

 

$594,162

 

 

Loans held-in-portfolio

$7,396,869

 

 

$87,111

 

 

$6,251,866

 

 

$1,381,319

 

$5,748,217

 

$20,865,382

 

 

ACL to loans held-in-portfolio

2.05

 

%

1.88

 

%

2.21

 

%

1.27

%

4.95

%

2.85

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Sep-21

 

Puerto Rico

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Lease
financing

 

Consumer

 

Total

 

ACL

$168,504

 

 

$1,911

 

 

$155,062

 

 

$11,634

 

$279,667

 

$616,778

 

 

Loans held-in-portfolio

$7,638,693

 

 

$127,479

 

 

$6,375,049

 

 

$1,348,679

 

$5,665,781

 

$21,155,681

 

 

ACL to loans held-in-portfolio

2.21

 

%

1.50

 

%

2.43

 

%

0.86

%

4.94

%

2.92

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Lease
financing

 

Consumer

 

Total

 

ACL

$(16,576

)

 

$(270

)

 

$(16,776

)

 

$5,944

 

$5,062

 

$(22,616

)

 

Loans held-in-portfolio

$(241,824

)

 

$(40,368

)

 

$(123,183

)

 

$32,640

 

$82,436

 

$(290,299

)

 

Popular, Inc.

 

Financial Supplement to Fourth Quarter 2021 Earnings Release

 

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

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

31-Dec-21

 

Popular U.S.

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Consumer

 

Total

 

ACL

$63,877

 

 

$4,722

 

 

$16,192

 

$16,413

 

$101,204

 

 

Loans held-in-portfolio

$6,339,164

 

 

$629,109

 

 

$1,175,330

 

$234,904

 

$8,378,507

 

 

ACL to loans held-in-portfolio

1.01

 

%

0.75

 

%

1.38

%

6.99

%

1.21

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Sep-21

 

Popular U.S.

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Consumer

 

Total

 

ACL

$66,310

 

 

$7,939

 

 

$15,316

 

$12,232

 

$101,797

 

 

Loans held-in-portfolio

$5,664,978

 

 

$673,561

 

 

$1,164,103

 

$197,049

 

$7,699,691

 

 

ACL to loans held-in-portfolio

1.17

 

%

1.18

 

%

1.32

%

6.21

%

1.32

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

 

(In thousands)

Commercial

 

Construction

 

Mortgage

 

Consumer

 

Total

 

ACL

$(2,433

)

 

$(3,217

)

 

$876

 

$4,181

 

$(593

)

 

Loans held-in-portfolio

$674,186

 

 

$(44,452

)

 

$11,227

 

$37,855

 

$678,816

 

 

Popular, Inc.

 

 

 

 

 

 

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table Q - Reconciliation to GAAP Financial Measures

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except share or per share information)

31-Dec-21

 

30-Sep-21

 

31-Dec-20

 

Total stockholders’ equity

$5,969,397

 

 

$5,982,971

 

 

$6,028,687

 

 

Less: Preferred stock

(22,143

)

 

(22,143

)

 

(22,143

)

 

Less: Goodwill

(712,616

)

 

(671,122

)

 

(671,122

)

 

Less: Other intangibles

(13,332

)

 

(19,657

)

 

(22,466

)

 

Total tangible common equity

$5,221,306

 

 

$5,270,049

 

 

$5,312,956

 

 

Total assets

$75,088,659

 

 

$74,189,163

 

 

$65,926,000

 

 

Less: Goodwill

(712,616

)

 

(671,122

)

 

(671,122

)

 

Less: Other intangibles

(13,332

)

 

(19,657

)

 

(22,466

)

 

Total tangible assets

$74,362,711

 

 

$73,498,384

 

 

$65,232,412

 

 

Tangible common equity to tangible assets

7.02

 

%

7.17

 

%

8.14

 

%

Common shares outstanding at end of period

79,851,169

 

 

79,841,564

 

 

84,244,235

 

 

Tangible book value per common share

$65.39

 

 

$66.01

 

 

$63.07

 

 

 

 

 

 

 

 

 

 

Quarterly average

 

Total stockholders’ equity [1]

$5,961,214

 

 

$5,769,545

 

 

$5,540,456

 

 

Less: Preferred Stock

(22,143

)

 

(22,143

)

 

(22,143

)

 

Less: Goodwill

(706,101

)

 

(671,121

)

 

(671,121

)

 

Less: Other intangibles

(19,858

)

 

(20,132

)

 

(23,166

)

 

Total tangible equity

$5,213,112

 

 

$5,056,149

 

 

$4,824,026

 

 

Return on average tangible common equity

15.66

 

%

19.44

 

%

14.50

 

%

[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale.

 

 

 

 

 

 

 

 

Year-to-date average

 

Total stockholders’ equity [1]

$5,777,652

 

 

 

 

$5,419,938

 

 

Less: Preferred Stock

(22,143

)

 

 

 

(26,277

)

 

Less: Goodwill

(679,938

)

 

 

 

(671,121

)

 

Less: Other intangibles

(20,853

)

 

 

 

(25,154

)

 

Total tangible equity

$5,054,718

 

 

 

 

$4,697,386

 

 

Return on average tangible common equity

18.47

 

%

 

 

10.75

 

%

[1] Average balances exclude unrealized gains or losses on debt securities available-for-sale.

 

Popular, Inc.

Investor Relations:

Paul J. Cardillo, 212-417-6721

Investor Relations Officer

pcardillo@popular.com

or

Media Relations:

MC González Noguera, 917-804-5253

Executive Vice President and Chief Communications & Public Affairs Officer

mc.gonzalez@popular.com

Source: Popular, Inc.

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Popular Inc

NASDAQ:BPOP

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BPOP Latest SEC Filings

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[Form 4] POPULAR, INC. Insider Trading Activity

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