Popular, Inc. Announces Second Quarter 2019 Financial Results

 
 

Contact a member of Banco
Popular de Puerto Rico's
Media Relations Team.


  • Net income of $171.1 million in Q2 2019, compared to net income of $167.9 million in Q1 2019.
  • Net interest margin of 4.11% in Q2 2019, compared to 4.20% in Q1 2019.
  • Credit Quality:
    • Non-performing loans held-in-portfolio (“NPLs”) decreased by $21.8 million from Q1 2019; NPLs to loans ratio at 2.1% vs. 2.2% in Q1 2019;
    • Net charge-offs (“NCOs”) decreased by $13.4 million from Q1 2019; NCOs at 0.71% of average loans held-in-portfolio vs. 0.92% in Q1 2019;
    • Allowance for loan losses to loans held-in-portfolio at 2.01% vs. 2.07% in Q1 2019; and
    • Allowance for loan losses to NPLs at 96.3% vs. 93.9% in Q1 2019.
  • Common Equity Tier 1 ratio of 16.80%, Common Equity per Share of $58.63 and Tangible Book Value per Share of $51.44 at June 30, 2019.
Wednesday, July 24, 2019 8:00 am EDT

Dateline:

SAN JUAN, Puerto Rico

Public Company Information:

NASDAQ:
BPOP
PR7331741061

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $171.1 million for the quarter ended June 30, 2019, compared to net income of $167.9 million for the quarter ended March 31, 2019.

Ignacio Alvarez, President and Chief Executive Officer, said: “I am pleased to report that we had a strong second quarter, with increases in net interest income, non-interest income, loans and deposits. Our results were driven by robust activity in our P.R. business, which showed growth in credit and debit card activity, continued strength in our auto business and increased mortgage loan originations. Additionally, our U.S. business achieved loan growth after a slow start to the year. Our credit quality metrics continued their positive progression, with reduction in non-performing loans and net charge-offs. While we are closely monitoring the P.R. macro environment and how it may be impacted by recent political events on the Island, we enter the second half of the year with strong momentum.”

Earnings Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

Quarters ended

 

Six months ended

(Dollars in thousands, except per share information)

30-Jun-19

31-Mar-19

30-Jun-18

 

30-Jun-19

30-Jun-18

Net interest income

$476,316

$470,963

$414,136

 

$947,279

$807,183

Provision for loan losses

40,191

41,825

60,054

 

82,016

129,387

Provision for loan losses - covered loans [1]

-

-

-

 

-

1,730

Net interest income after provision for loan losses

436,125

429,138

354,082

 

865,263

676,066

FDIC loss-share income

-

-

102,752

 

-

94,725

Other non-interest income

138,326

136,430

132,057

 

274,756

253,581

Operating expenses

363,015

347,420

337,668

 

710,435

659,670

Income before income tax

211,436

218,148

251,223

 

429,584

364,702

Income tax expense (benefit)

40,330

50,223

(28,560)

 

90,553

(6,405)

Net income

$171,106

$167,925

$279,783

 

$339,031

$371,107

Net income applicable to common stock

$170,175

$166,994

$278,852

 

$337,169

$369,245

Net income per common share - basic

$1.77

$1.69

$2.74

 

$3.46

$3.63

Net income per common share - diluted

$1.76

$1.69

$2.73

 

$3.45

$3.62

[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that were covered under the terminated FDIC Shared-Loss Agreements.

Net interest income

Net interest income for the quarter ended June 30, 2019 was $476.3 million, compared to $471.0 million for the previous quarter. The net interest margin was 4.11% for the quarter, compared to 4.20% for the previous quarter.

The increase of $5.3 million in net interest income is mainly the result of the approximately $3.8 million positive impact of one more day in the second quarter. Significant variances were:

  • Higher income from money market, trading and investments by $6.5 million due to higher volume, mostly driven by an increase in deposits at Banco Popular de Puerto Rico (“BPPR”);
  • Higher income from the commercial loan portfolio by $3.4 million, mainly due to higher loan volume at Popular Bank (“Popular U.S.” or “PB”); and
  • Higher income from the consumer loan portfolio by $2.5 million, due to higher volume in the BPPR segment driven primarily by originations through BPPR’s Eloan channel and acquired loans in the U.S.

Partially offset by:

  • Higher cost of interest-bearing deposits by $7.7 million or 5 basis points due to higher average balance in all deposit categories, predominantly in the public sector, retail and corporate deposits in P.R. and digital channel deposits in the U.S. The increase in deposit costs was driven by the cost of public sector deposits in P.R. and digital channel deposits in the U.S.

BPPR’s net interest income amounted to $411.5 million for the quarter ended June 30, 2019, compared to $407.4 million in the previous quarter. The increase of $4.1 million in net interest income was mainly due to higher volume of investment securities driven by a higher volume of deposits, as discussed above. This was partially offset by an increase of 4 basis points in the cost of interest-bearing deposits, mainly on public sector deposits, as explained above. The net interest margin for the second quarter of 2019 was 4.37%, a decrease of 12 basis points when compared to 4.49% for the previous quarter. The decrease in net interest margin was due to higher volume of investment securities, which carry a lower yield, a lower discount amortization of the portfolio acquired in the Reliable Transaction and a higher cost of deposits. BPPR’s earning assets yielded 4.98%, compared to 5.07% in the previous quarter, while the cost of interest-bearing deposits was 0.83%, or 4 basis points higher than the 0.79% reported in the previous quarter. Total cost of deposits for the quarter was 0.64%, compared to 0.60% reported in the first quarter of 2019. The impact of one more day in the quarter represented approximately $3.2 million in additional net interest income at BPPR.

Net interest income for Popular U.S. was $74.6 million, for the quarter ended June 30, 2019, compared to $72.8 million during the previous quarter. The increase of $1.8 million in net interest income was primarily due to higher volume of average loans by $175 million mainly commercial loans, partially offset by a higher cost of deposits. Net interest margin for the quarter increased 3 basis points to 3.43%, compared to 3.40% for the previous quarter. Earning assets yielded 4.71%, compared to 4.61% in the previous quarter, while the cost of interest-bearing deposits was 1.59%, compared to 1.51% in the previous quarter. The impact of one more day in the quarter represented approximately $0.6 million in additional net interest income at PB.

Non-interest income

Non-interest income increased by $1.9 million to $138.3 million for the quarter ended June 30, 2019, compared to $136.4 million for the quarter ended March 31, 2019. The increase in non-interest income was primarily driven by:

  • Higher service charges on deposit accounts by $0.9 million, mainly at BPPR, due to higher fees on transactional cash management services;
  • higher other service fees by $9.7 million due to higher debit and credit card interchange fees by $3.8 million as a result of higher transactional volumes, higher insurance fees mainly due to $3.5 million in contingency commissions received during the quarter, and higher trust service fees;
  • favorable variance in adjustments to indemnity reserves on previously sold loans of $1.9 million due to the release of a $4.4 million reserve taken in connection with a 2013 transaction, partially offset by higher provision related to other loans previously sold with credit recourse; and
  • higher other operating income by $1.8 million, principally due to higher net earnings from the portfolio of investments under the equity method.

These variances were partially offset by:

  • Lower income from mortgage banking activities by $11.7 million, mainly due to a decrease in the fair value of mortgage servicing rights by $13.4 million driven in part by an increase in estimated prepayment rates and a lower earnings rate due to lower interest rates as well as the combined effect of an improvement in the early delinquency composition of the serviced portfolio resulting in lower late fees and delays in foreclosure activity; and
  • lower unrealized net gains on equity securities by $0.9 million mainly on deferred compensation plans that have an offsetting expense in personnel costs.

Refer to Table B for further details.

Operating expenses

Operating expenses for the second quarter of 2019 totaled $363.0 million, an increase of $15.6 million when compared to the first quarter of 2019. The increase in operating expenses was driven primarily by:

  • Higher equipment expenses by $1.6 million due to higher software and maintenance expenses;
  • higher professional fees by $7.8 million mainly due to higher advisory expenses by $3.0 million related to regulatory and other Corporate initiatives, higher director compensation by $1.4 million, $1.0 million in collection, appraisals and other credit related fees and higher legal fees by $1.0 million;
  • higher business promotion expenses by $4.4 million due to higher seasonal advertising costs by $1.0 million, higher consumer reward program expense by $2.0 million and higher promotion expenses and donations;
  • higher credit and debit card processing, volume, interchange and other expenses by $1.7 million due to higher volume of transactions; and
  • higher other operating expenses by $1.8 million due to unreimbursed claims on guaranteed mortgage loans claims receivables.

These increases were partially offset by:

  • Lower personnel cost by $1.6 million due to lower commissions, incentives and other bonuses.

Full-time equivalent employees were 8,372 as of June 30, 2019, compared to 8,242 as of March 31, 2019.

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

Income taxes

For the quarter ended June 30, 2019, the Corporation recorded an income tax expense of $40.3 million, compared to $50.2 million for the previous quarter. The decrease is attributed in part to a lower taxable income and a tax benefit of approximately $6.3 million related to adjustments pertaining to periods that the statute of limitations has expired.

The effective tax rate (“ETR”) for the second quarter of 2019 was 19%. Excluding the positive adjustment discussed above the ETR for the quarter was of 22%. The ETR of the Corporation is impacted by the composition and source of its taxable income. For the year 2019, the Corporation expects its consolidated effective tax rate to be within a range from 22-24%.

Credit Quality

During the second quarter of 2019, the Puerto Rico segment continued to reflect positive credit quality trends. Non-performing loans (“NPLs”) continued to improve, and net charge-offs were at 0.75% of the portfolio. The credit quality metrics of our U.S. operation also remained favorable. The Corporation continues to be attentive to the performance of its portfolios and related credit metrics. The following presents credit quality results for the second quarter of 2019.

  • Inflows of NPLs held-in-portfolio, excluding consumer loans, remained stable, decreasing by $3.5 million quarter-over-quarter, primarily related to lower P.R. commercial inflows. P.R. mortgage inflows for the quarter remained stable, mainly driven by lower early delinquencies.
  • Total non-performing loans held-in-portfolio decreased by $21.8 million from the first quarter of 2019, mainly driven by lower P.R. commercial NPLs of $17.2 million, primarily related to loan collections. P.R. mortgage NPLs continued to gradually improve, decreasing by $8.8 million from the first quarter of 2019. At June 30, 2019, the ratio of NPLs to total loans held-in-portfolio was 2.1%, compared to 2.2% in the first quarter of 2019.
  • Net charge-offs decreased by $13.4 million from the first quarter of 2019, primarily driven by lower P.R. commercial NCOs of $16.4 million, as the prior quarter included a charge-off from a single large relationship. In addition, P.R. mortgage NCOs were lower by $2.5 million when compared to the prior quarter. The Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.71%, compared to 0.92% in the first quarter of 2019. Refer to Table J for further information on net charge-offs and related ratios.
  • The allowance for loan and lease losses (“ALLL”) decreased by $7.0 million from the first quarter of 2019 to $543.7 million. The P.R. segment ALLL decreased by $8.2 million, principally due to improvements in the mortgage portfolio.
  • The general and specific reserves totaled $443.6 million and $100.0 million, respectively, at quarter-end, compared with $448.7 million and $101.9 million, respectively, as of March 31, 2019. The ratio of the allowance for loan losses to loans held-in-portfolio was 2.01% in the second quarter of 2019, compared to 2.07% in the previous quarter. The ratio of the allowance for loan losses to NPLs held-in-portfolio stood at 96.3% compared to 93.9% in the previous quarter.
  • The provision for loan losses for the second quarter of 2019 remained essentially flat at $40.2 million. The provision to net charge-offs ratio was 85.2% in the second quarter of 2019, compared to 69.1% in the previous quarter.

Non-Performing Assets

 

 

 

 

 

(Unaudited)

 

 

 

 

 

(In thousands)

30-Jun-19

 

31-Mar-19

 

30-Jun-18

Total non-performing loans held-in-portfolio

$564,358

 

$586,202

 

$643,199

Other real estate owned (“OREO”)

118,851

 

125,478

 

142,063

Total non-performing assets

$683,209

 

$711,680

 

$785,262

Net charge-offs for the quarter

$47,153

 

$60,545

 

$57,614

 

 

 

 

 

 

 

Ratios:

 

 

 

 

 

Loans held-in-portfolio

$27,005,745

 

$26,647,708

 

$24,608,516

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

2.09%

 

2.20%

 

2.61%

Allowance for loan losses to loans held-in-portfolio

2.01

 

2.07

 

2.61

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

96.33

 

93.93

 

99.97

Refer to Table H for additional information.

 

 

 

 

 

Provision for Loan Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Quarters ended

 

Six months ended

(In thousands)

 

30-Jun-19

 

31-Mar-19

 

30-Jun-18

 

30-Jun-19

30-Jun-18

Provision for loan losses:

 

 

 

 

 

 

 

 

 

BPPR

 

$28,975

 

$31,454

 

$44,405

 

$60,429

$101,123

Popular U.S.

 

11,216

 

10,371

 

15,649

 

21,587

28,264

Total provision for loan losses - non-covered loans

 

$40,191

 

$41,825

 

$60,054

 

$82,016

$129,387

Provision for loan losses - covered loans

 

-

 

-

 

-

 

-

1,730

Total provision for loan losses

 

$40,191

 

$41,825

 

$60,054

 

$82,016

$131,117

 

Credit Quality by Segment

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

(In thousands)

Quarters ended

 

BPPR

 

30-Jun-19

 

31-Mar-19

 

30-Jun-18

 

Provision for loan losses

 

$28,975

 

$31,454

 

$44,405

 

Net charge-offs

 

37,167

 

54,229

 

44,465

 

Total non-performing loans held-in-portfolio

522,525

 

544,992

 

589,838

 

Allowance / loans held-in-portfolio

2.38%

 

2.42%

 

3.14%

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

Popular U.S.

 

30-Jun-19

 

31-Mar-19

 

30-Jun-18

 

Provision for loan losses

 

$11,216

 

$10,371

 

$15,649

 

Net charge-offs

 

9,986

 

6,316

 

13,149

 

Total non-performing loans held-in-portfolio

 

41,833

 

41,210

 

53,361

 

Allowance / loans held-in-portfolio

0.97%

 

1.00%

 

1.16%

 

Financial Condition Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

(In thousands)

30-Jun-19

 

31-Mar-19

 

30-Jun-18

Cash and money market investments

$3,563,819

 

$5,190,692

 

$9,029,010

Investment securities

17,038,098

 

13,839,874

 

10,847,601

Loans

27,005,745

 

26,647,708

 

24,608,516

Total assets

50,617,221

 

48,680,607

 

47,535,177

Deposits

42,059,837

 

40,879,838

 

39,377,561

Borrowings

1,604,670

 

1,377,401

 

1,869,774

Total liabilities

44,897,387

 

43,240,547

 

42,245,516

Stockholders’ equity

5,719,834

 

5,440,060

 

5,289,661

Total assets increased by $1.9 billion from the first quarter of 2019, driven by:

  • An increase of $3.2 billion in debt securities available-for-sale mainly due to purchases of mortgage-backed securities and U.S. Treasury securities at BPPR; and
  • An increase of $0.4 billion in loans held-in-portfolio, mainly driven by the growth of auto loans and leases at the BPPR segment coupled with an increase at PB across its portfolios;

Partially offset by:

  • A net decrease of $1.6 billion in cash and money market investments, mainly due to purchases of available-for-sale debt securities.

Total liabilities increased by $1.6 billion from the first quarter of 2019, mainly due to:

  • An increase of $1.2 billion in deposits mainly in Puerto Rico public sector deposits at BPPR;
  • An increase of $0.2 billion in other short-term borrowings due to Federal Home Loan Bank advances at PB; and
  • An increase of $0.2 billion in other liabilities due to unsettled purchases of securities transactions.

Stockholders’ equity increased by approximately $0.3 billion from the first quarter of 2019, principally due to the net income for the quarter of $0.2 billion and higher unrealized gains on debt securities available-for-sale by $0.1 million.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.80%, $58.63 and $51.44, respectively, at June 30, 2019, compared to 16.39%, $55.78 and $48.58 at March 31, 2019. Refer to Table A for capital ratios.

Simplifications to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996

On July 9, 2019, the federal banking regulatory agencies issued a final rule that simplified several requirements in the agencies' regulatory capital rules. These simplification rules, effective on April 1, 2020, alleviate the limitations to the amount of mortgage servicing assets and certain deferred tax assets allowed as CET1 and increase the risk weight for the portion of the deferred tax assets included as a component of CET1 from 100% to 250%, among other provisions. As a result of these rules, the Corporation’s risk-based capital ratios are expected to decrease driven by the change in risk weighting. On a pro forma basis as of June 30, 2019, the impact would have been a reduction of approximately 55 bps.

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 and new accounting standards on the Corporation’s financial condition and results of operations. 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, 2018, our Form 10-Q for the quarter ended March 31, 2019 and in our Form 10-Q for the quarter ended June 30, 2019 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. 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 auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the mainland United States, Popular provides retail, mortgage and commercial banking services through its New York-chartered banking subsidiary, Popular Bank, which has branches located in New York, New Jersey and Florida.

Conference Call

Popular will hold a conference call to discuss its financial results today Wednesday, July 24, 2019 at 11:00 a.m. Eastern Time. The call will be open to the public and broadcasted live over the Internet, and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-866-235-1201 or 1-412-902-4127. There is no charge to access the call.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Friday, August 23, 2019. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10132930.

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

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

 

Table A - Selected Ratios and Other Information

 

Table B - Consolidated Statement of Operations

 

Table C - Consolidated Statement of Financial Condition

 

Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER

 

Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE

 

Table F - Mortgage Banking Activities and Other Service Fees

 

Table G - Loans and Deposits

 

Table H - Non-Performing Assets

 

Table I - Activity in Non-Performing Loans

 

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

 

Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED

 

Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS

 

Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - POPULAR U.S. OPERATIONS

 

Table N - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to Second Quarter 2019 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

Six months ended

 

30-Jun-19

 

31-Mar-19

 

30-Jun-18

 

30-Jun-19

 

30-Jun-18

Basic EPS

$

1.77

 

 

$

1.69

 

 

$

2.74

 

 

$

3.46

 

 

$

3.63

 

Diluted EPS

$

1.76

 

 

$

1.69

 

 

$

2.73

 

 

$

3.45

 

 

$

3.62

 

Average common shares outstanding

 

96,305,118

 

 

 

98,581,743

 

 

 

101,892,402

 

 

 

97,437,141

 

 

 

101,794,914

 

Average common shares outstanding - assuming dilution

 

96,457,448

 

 

 

98,758,898

 

 

 

102,031,955

 

 

 

97,591,989

 

 

 

101,932,477

 

Common shares outstanding at end of period

 

96,703,351

 

 

 

96,629,891

 

 

 

102,296,440

 

 

 

96,703,351

 

 

 

102,296,440

 

 

 

 

 

 

 

 

 

 

 

Market value per common share

$

54.24

 

 

$

52.13

 

 

$

45.21

 

 

$

54.24

 

 

$

45.21

 

 

 

 

 

 

 

 

 

 

 

Market capitalization - (In millions)

$

5,245

 

 

$

5,037

 

 

$

4,625

 

 

$

5,245

 

 

$

4,625

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.38

%

 

 

1.40

%

 

 

2.40

%

 

 

1.39

%

 

 

1.64

%

 

 

 

 

 

 

 

 

 

 

Return on average common equity

 

12.31

%

 

 

12.17

%

 

 

20.84

%

 

 

12.24

%

 

 

14.10

%

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

4.11

%

 

 

4.20

%

 

 

3.81

%

 

 

4.16

%

 

 

3.85

%

 

 

 

 

 

 

 

 

 

 

Common equity per share

$

58.63

 

 

$

55.78

 

 

$

51.22

 

 

$

58.63

 

 

$

51.22

 

 

 

 

 

 

 

 

 

 

 

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

$

51.44

 

 

$

48.58

 

 

$

44.78

 

 

$

51.44

 

 

$

44.78

 

 

 

 

 

 

 

 

 

 

 

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

 

9.96

%

 

 

9.78

%

 

 

9.77

%

 

 

9.96

%

 

 

9.77

%

 

 

 

 

 

 

 

 

 

 

Tier 1 capital

 

16.80

%

 

 

16.39

%

 

 

17.47

%

 

 

16.80

%

 

 

17.47

%

 

 

 

 

 

 

 

 

 

 

Total capital

 

19.39

%

 

 

19.00

%

 

 

20.41

%

 

 

19.39

%

 

 

20.41

%

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage

 

9.75

%

 

 

9.57

%

 

 

9.82

%

 

 

9.75

%

 

 

9.82

%

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 capital

 

16.80

%

 

 

16.39

%

 

 

17.47

%

 

 

16.80

%

 

 

17.47

%

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

POPULAR, INC.

Financial Supplement to Second Quarter 2019 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

 

 

Quarters ended

Variance

Quarter ended

Variance

Six months ended

 

(In thousands, except per share information)

30-Jun-19

31-Mar-19

Q2 2019 vs. Q1 2019

30-Jun-18

Q2 2019 vs. Q2 2018

30-Jun-19

30-Jun-18

Interest income:

 

 

 

 

 

 

 

 

Loans

$

454,204

 

$

447,713

 

$

6,491

 

$

386,277

 

$

67,927

 

$

901,917

$

759,861

 

 

Money market investments

 

22,534

 

 

29,220

 

 

(6,686

)

 

36,392

 

 

(13,858

)

 

51,754

 

58,677

 

 

Investment securities

 

94,241

 

 

81,036

 

 

13,205

 

 

58,181

 

 

36,060

 

 

175,277

 

115,390

 

 

Total interest income

 

570,979

 

 

557,969

 

 

13,010

 

 

480,850

 

 

90,129

 

 

1,128,948

 

933,928

 

Interest expense:

 

 

 

 

 

 

 

 

Deposits

 

78,449

 

 

70,826

 

 

7,623

 

 

45,228

 

 

33,221

 

 

149,275

 

83,916

 

 

Short-term borrowings

 

1,656

 

 

1,600

 

 

56

 

 

1,752

 

 

(96

)

 

3,256

 

3,765

 

 

Long-term debt

 

14,558

 

 

14,580

 

 

(22

)

 

19,734

 

 

(5,176

)

 

29,138

 

39,064

 

 

Total interest expense

 

94,663

 

 

87,006

 

 

7,657

 

 

66,714

 

 

27,949

 

 

181,669

 

126,745

 

Net interest income

 

476,316

 

 

470,963

 

 

5,353

 

 

414,136

 

 

62,180

 

 

947,279

 

807,183

 

Provision for loan losses - non-covered loans

 

40,191

 

 

41,825

 

 

(1,634

)

 

60,054

 

 

(19,863

)

 

82,016

 

129,387

 

Provision for loan losses - covered loans

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

1,730

 

Net interest income after provision for loan losses

 

436,125

 

 

429,138

 

 

6,987

 

 

354,082

 

 

82,043

 

 

865,263

 

676,066

 

Service charges on deposit accounts

 

39,617

 

 

38,691

 

 

926

 

 

37,102

 

 

2,515

 

 

78,308

 

73,557

 

Other service fees

 

74,031

 

 

64,307

 

 

9,724

 

 

62,876

 

 

11,155

 

 

138,338

 

123,478

 

Mortgage banking activities

 

(1,773

)

 

9,926

 

 

(11,699

)

 

10,071

 

 

(11,844

)

 

8,153

 

22,139

 

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

 

528

 

 

1,433

 

 

(905

)

 

234

 

 

294

 

 

1,961

 

(412

)

Net profit (loss) on trading account debt securities

 

422

 

 

260

 

 

162

 

 

21

 

 

401

 

 

682

 

(177

)

Adjustments (expense) to indemnity reserves on loans sold

 

1,840

 

 

(93

)

 

1,933

 

 

(527

)

 

2,367

 

 

1,747

 

(3,453

)

FDIC loss-share income

 

-

 

 

-

 

 

-

 

 

102,752

 

 

(102,752

)

 

-

 

94,725

 

Other operating income

 

23,661

 

 

21,906

 

 

1,755

 

 

22,280

 

 

1,381

 

 

45,567

 

38,449

 

 

Total non-interest income

 

138,326

 

 

136,430

 

 

1,896

 

 

234,809

 

 

(96,483

)

 

274,756

 

348,306

 

Operating expenses:

 

 

 

 

 

 

 

Personnel costs

 

 

 

 

 

 

 

 

Salaries

 

86,161

 

 

84,450

 

 

1,711

 

 

78,008

 

 

8,153

 

 

170,611

 

156,405

 

 

Commissions, incentives and other bonuses

 

22,636

 

 

25,761

 

 

(3,125

)

 

20,004

 

 

2,632

 

 

48,397

 

41,320

 

 

Pension, postretirement and medical insurance

 

10,406

 

 

9,761

 

 

645

 

 

9,363

 

 

1,043

 

 

20,167

 

19,292

 

 

Other personnel costs, including payroll taxes

 

22,296

 

 

23,145

 

 

(849

)

 

16,957

 

 

5,339

 

 

45,441

 

33,167

 

 

Total personnel costs

 

141,499

 

 

143,117

 

 

(1,618

)

 

124,332

 

 

17,167

 

 

284,616

 

250,184

 

Net occupancy expenses

 

23,299

 

 

23,537

 

 

(238

)

 

22,425

 

 

874

 

 

46,836

 

45,227

 

Equipment expenses

 

21,323

 

 

19,705

 

 

1,618

 

 

17,775

 

 

3,548

 

 

41,028

 

34,981

 

Other taxes

 

12,577

 

 

11,662

 

 

915

 

 

10,876

 

 

1,701

 

 

24,239

 

21,778

 

Professional fees

 

 

 

 

 

 

 

 

Collections, appraisals and other credit related fees

 

4,741

 

 

3,724

 

 

1,017

 

 

4,228

 

 

513

 

 

8,465

 

7,286

 

 

Programming, processing and other technology services

 

61,033

 

 

60,178

 

 

855

 

 

54,547

 

 

6,486

 

 

121,211

 

105,852

 

 

Legal fees, excluding collections

 

4,446

 

 

3,489

 

 

957

 

 

4,907

 

 

(461

)

 

7,935

 

10,670

 

 

Other professional fees

 

25,028

 

 

20,075

 

 

4,953

 

 

30,221

 

 

(5,193

)

 

45,103

 

53,080

 

 

Total professional fees

 

95,248

 

 

87,466

 

 

7,782

 

 

93,903

 

 

1,345

 

 

182,714

 

176,888

 

Communications

 

5,955

 

 

5,849

 

 

106

 

 

5,382

 

 

573

 

 

11,804

 

11,288

 

Business promotion

 

19,119

 

 

14,674

 

 

4,445

 

 

16,778

 

 

2,341

 

 

33,793

 

28,787

 

FDIC deposit insurance

 

5,278

 

 

4,806

 

 

472

 

 

7,004

 

 

(1,726

)

 

10,084

 

13,924

 

Other real estate owned (OREO) expenses

 

1,237

 

 

2,677

 

 

(1,440

)

 

6,947

 

 

(5,710

)

 

3,914

 

13,078

 

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

 

9,900

 

 

8,223

 

 

1,677

 

 

9,635

 

 

265

 

 

18,123

 

14,243

 

Other operating expenses

 

 

 

 

 

 

 

 

Operational losses

 

4,778

 

 

4,888

 

 

(110

)

 

9,001

 

 

(4,223

)

 

9,666

 

18,925

 

 

All other

 

20,431

 

 

18,504

 

 

1,927

 

 

11,286

 

 

9,145

 

 

38,935

 

25,718

 

 

Total other operating expenses

 

25,209

 

 

23,392

 

 

1,817

 

 

20,287

 

 

4,922

 

 

48,601

 

44,643

 

Amortization of intangibles

 

2,371

 

 

2,312

 

 

59

 

 

2,324

 

 

47

 

 

4,683

 

4,649

 

 

Total operating expenses

 

363,015

 

 

347,420

 

 

15,595

 

 

337,668

 

 

25,347

 

 

710,435

 

659,670

 

Income before income tax

 

211,436

 

 

218,148

 

 

(6,712

)

 

251,223

 

 

(39,787

)

 

429,584

 

364,702

 

Income tax expense (benefit)

 

40,330

 

 

50,223

 

 

(9,893

)

 

(28,560

)

 

68,890

 

 

90,553

 

(6,405

)

Net income

$

171,106

 

$

167,925

 

$

3,181

 

$

279,783

 

$

(108,677

)

$

339,031

$

371,107

 

Net income applicable to common stock

$

170,175

 

$

166,994

 

$

3,181

 

$

278,852

 

$

(108,677

)

$

337,169

$

369,245

 

Net income per common share - basic

$

1.77

 

$

1.69

 

$

0.08

 

$

2.74

 

$

(0.97

)

$

3.46

$

3.63

 

Net income per common share - diluted

$

1.76

 

$

1.69

 

$

0.07

 

$

2.73

 

$

(0.97

)

$

3.45

$

3.62

 

Dividends Declared per Common Share

$

0.30

 

$

0.30

 

$

-

 

$

0.25

 

$

0.05

 

$

0.60

$

0.50

 

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

 

 

 

 

 

 

Variance

 

 

 

 

 

 

Q2 2019 vs.

(In thousands)

30-Jun-19

31-Mar-19

30-Jun-18

Q1 2019

Assets:

 

 

 

 

Cash and due from banks

$

391,703

 

$

376,558

 

$

400,568

 

$

15,145

 

Money market investments

 

3,172,116

 

 

4,814,134

 

 

8,628,442

 

 

(1,642,018

)

Trading account debt securities, at fair value

 

35,623

 

 

39,217

 

 

41,637

 

 

(3,594

)

Debt securities available-for-sale, at fair value

 

16,734,722

 

 

13,542,695

 

 

10,542,010

 

 

3,192,027

 

Debt securities held-to-maturity, at amortized cost

 

99,599

 

 

99,455

 

 

104,937

 

 

144

 

Equity securities

 

168,154

 

 

158,507

 

 

159,017

 

 

9,647

 

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

 

54,028

 

 

43,985

 

 

73,859

 

 

10,043

 

Loans held-in-portfolio

 

27,171,467

 

 

26,808,287

 

 

24,752,700

 

 

363,180

 

 

 

Less: Unearned income

 

165,722

 

 

160,579

 

 

144,184

 

 

5,143

 

 

 

Allowance for loan losses

 

543,666

 

 

550,628

 

 

643,018

 

 

(6,962

)

 

Total loans held-in-portfolio, net

 

26,462,079

 

 

26,097,080

 

 

23,965,498

 

 

364,999

 

Premises and equipment, net

 

554,614

 

 

557,517

 

 

548,432

 

 

(2,903

)

Other real estate

 

118,851

 

 

125,478

 

 

142,063

 

 

(6,627

)

Accrued income receivable

 

170,886

 

 

162,797

 

 

165,592

 

 

8,089

 

Mortgage servicing assets, at fair value

 

153,021

 

 

167,813

 

 

164,025

 

 

(14,792

)

Other assets

 

1,806,825

 

 

1,799,728

 

 

1,940,780

 

 

7,097

 

Goodwill

 

671,122

 

 

671,122

 

 

627,294

 

 

-

 

Other intangible assets

 

23,878

 

 

24,521

 

 

31,023

 

 

(643

)

Total assets

$

50,617,221

 

$

48,680,607

 

$

47,535,177

 

$

1,936,614

 

Liabilities and Stockholders’ Equity:

 

 

 

 

Liabilities:

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest bearing

$

8,955,304

 

$

9,046,104

 

$

9,392,263

 

$

(90,800

)

 

 

Interest bearing

 

33,104,533

 

 

31,833,734

 

 

29,985,298

 

 

1,270,799

 

 

 

Total deposits

 

42,059,837

 

 

40,879,838

 

 

39,377,561

 

 

1,179,999

 

Assets sold under agreements to repurchase

 

233,091

 

 

200,871

 

 

306,911

 

 

32,220

 

Other short-term borrowings

 

160,000

 

 

42

 

 

1,200

 

 

159,958

 

Notes payable

 

1,211,579

 

 

1,176,488

 

 

1,561,663

 

 

35,091

 

Other liabilities

 

1,232,880

 

 

983,308

 

 

998,181

 

 

249,572

 

Total liabilities

 

44,897,387

 

 

43,240,547

 

 

42,245,516

 

 

1,656,840

 

Stockholders’ equity:

 

 

 

 

Preferred stock

 

50,160

 

 

50,160

 

 

50,160

 

 

-

 

Common stock

 

1,044

 

 

1,043

 

 

1,043

 

 

1

 

Surplus

 

4,316,225

 

 

4,313,040

 

 

4,302,946

 

 

3,185

 

Retained earnings

 

1,935,826

 

 

1,794,644

 

 

1,515,058

 

 

141,182

 

Treasury stock

 

(392,208

)

 

(394,848

)

 

(82,754

)

 

2,640

 

Accumulated other comprehensive loss, net of tax

 

(191,213

)

 

(323,979

)

 

(496,792

)

 

132,766

 

 

Total stockholders’ equity

 

5,719,834

 

 

5,440,060

 

 

5,289,661

 

 

279,774

 

Total liabilities and stockholders’ equity

$

50,617,221

 

$

48,680,607

 

$

47,535,177

 

$

1,936,614

 

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

Variance

 

 

 

 

 

30-Jun-19

 

31-Mar-19

 

30-Jun-18

 

Q2 2019 vs. Q1 2019

 

Q2 2019 vs. Q2 2018

 

($ amounts in millions; yields not on a taxable equivalent basis)

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

$

19,664

 

$

116.8

2.38

%

$

18,773

 

$

110.3

2.37

%

$

19,257

 

$

94.6

1.97

%

$

891

 

$

6.5

 

0.01

 

%

$

407

 

$

22.2

 

0.41

%

 

Loans not covered under loss sharing agreements with the FDIC:

 

 

Commercial

 

12,156

 

 

181.7

5.99

 

 

12,064

 

 

178.3

5.99

 

 

11,537

 

 

166.0

5.77

 

 

92

 

 

3.4

 

-

 

 

 

619

 

 

15.7

 

0.22

 

 

 

Construction

 

806

 

 

13.5

6.74

 

 

807

 

 

13.6

6.85

 

 

918

 

 

14.3

6.28

 

 

(1

)

 

(0.1

)

(0.11

)

 

 

(112

)

 

(0.8

)

0.46

 

 

 

Mortgage

 

7,113

 

 

91.2

5.13

 

 

7,134

 

 

91.1

5.11

 

 

7,109

 

 

91.0

5.12

 

 

(21

)

 

0.1

 

0.02

 

 

 

4

 

 

0.2

 

0.01

 

 

 

Consumer

 

2,864

 

 

85.3

11.95

 

 

2,814

 

 

82.8

11.93

 

 

2,856

 

 

82.0

11.52

 

 

50

 

 

2.5

 

0.02

 

 

 

8

 

 

3.3

 

0.43

 

 

 

Auto

 

2,822

 

 

67.7

9.62

 

 

2,729

 

 

67.6

10.05

 

 

949

 

 

20.2

8.55

 

 

93

 

 

0.1

 

(0.43

)

 

 

1,873

 

 

47.5

 

1.07

 

 

 

Lease financing

 

972

 

 

14.8

6.07

 

 

944

 

 

14.3

6.08

 

 

850

 

 

12.7

5.99

 

 

28

 

 

0.5

 

(0.01

)

 

 

122

 

 

2.1

 

0.08

 

 

 

Total loans

 

26,733

 

 

454.2

6.81

 

 

26,492

 

 

447.7

6.83

 

 

24,219

 

 

386.2

6.39

 

 

241

 

 

6.5

 

(0.02

)

 

 

2,514

 

 

68.0

 

0.42

 

 

Total interest earning assets

$

46,397

 

$

571.0

4.93

%

$

45,265

 

$

558.0

4.98

%

$

43,476

 

$

480.8

4.43

%

$

1,132

 

 

13.0

 

(0.05

)

%

$

2,921

 

$

90.2

 

0.50

%

 

 

Allowance for loan losses

 

(553

)

 

 

 

 

(576

)

 

 

 

 

(645

)

 

 

 

 

23

 

 

 

 

 

92

 

 

 

 

 

 

Other non-interest earning assets

 

3,931

 

 

 

 

 

3,938

 

 

 

 

 

4,019

 

 

 

 

 

(7

)

 

 

 

 

(88

)

 

 

 

 

Total average assets

$

49,775

 

 

 

 

$

48,627

 

 

 

 

$

46,850

 

 

 

 

$

1,148

 

 

 

 

$

2,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market

$

14,953

 

$

39.3

1.05

%

$

14,051

 

$

33.8

0.97

%

$

12,476

 

$

15.7

0.51

%

$

902

 

$

5.5

 

0.08

 

%

$

2,477

 

$

23.6

 

0.54

%

 

 

Savings

 

10,067

 

 

10.5

0.42

 

 

9,847

 

 

9.9

0.41

 

 

9,472

 

 

7.8

0.33

 

 

220

 

 

0.6

 

0.01

 

 

 

595

 

 

2.7

 

0.09

 

 

 

Time deposits

 

7,827

 

 

28.7

1.47

 

 

7,676

 

 

27.1

1.43

 

 

7,749

 

 

21.7

1.12

 

 

151

 

 

1.6

 

0.04

 

 

 

78

 

 

7.0

 

0.35

 

 

 

Total interest-bearing deposits

 

32,847

 

 

78.5

0.96

 

 

31,574

 

 

70.8

0.91

 

 

29,697

 

 

45.2

0.61

 

 

1,273

 

 

7.7

 

0.05

 

 

 

3,150

 

 

33.3

 

0.35

 

 

Borrowings

 

1,448

 

 

16.2

4.50

 

 

1,469

 

 

16.2

4.44

 

 

1,962

 

 

21.5

4.39

 

 

(21

)

 

-

 

0.06

 

 

 

(514

)

 

(5.3

)

0.11

 

 

 

Total interest-bearing liabilities

 

34,295

 

 

94.7

1.11

 

 

33,043

 

 

87.0

1.07

 

 

31,659

 

 

66.7

0.85

 

 

1,252

 

 

7.7

 

0.04

 

 

 

2,636

 

 

28.0

 

0.26

 

 

 

Net interest spread

 

 

3.82

%

 

 

3.91

%

 

 

3.58

%

 

 

(0.09

)

%

 

 

0.24

%

 

Non-interest bearing deposits

 

8,868

 

 

 

 

 

8,953

 

 

 

 

 

8,966

 

 

 

 

 

(85

)

 

 

 

 

(98

)

 

 

 

 

Other liabilities

 

1,016

 

 

 

 

 

1,016

 

 

 

 

 

811

 

 

 

 

 

-

 

 

 

 

 

205

 

 

 

 

 

Stockholders' equity

 

5,596

 

 

 

 

 

5,615

 

 

 

 

 

5,414

 

 

 

 

 

(19

)

 

 

 

 

182

 

 

 

 

 

 

Total average liabilities and stockholders' equity

$

49,775

 

 

 

 

$

48,627

 

 

 

 

$

46,850

 

 

 

 

$

1,148

 

 

 

 

$

2,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income / margin non-taxable equivalent basis

$

476.3

4.11

%

 

$

471.0

4.20

%

 

$

414.1

3.81

%

 

$

5.3

 

(0.09

)

%

 

$

62.2

 

0.30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

 

 

 

 

 

 

 

30-Jun-19

 

30-Jun-18

 

Variance

 

 

 

 

Average

Income /

Yield /

 

Average

Income /

Yield /

 

Average

Income /

Yield /

 

($ amounts in millions; yields not on a taxable equivalent basis)

balance

Expense

Rate

 

balance

Expense

Rate

 

balance

Expense

Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market, trading and investment securities

$

19,221

 

$

227.0

2.38

%

$

18,010

 

$

174.1

1.94

%

$

1,211

 

$

52.9

 

0.44

%

 

Loans not covered under loss-sharing agreements with the FDIC:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

12,110

 

 

360.0

5.99

 

 

11,503

 

 

327.5

5.74

 

 

607

 

 

32.5

 

0.25

 

 

 

Construction

 

806

 

 

27.2

6.79

 

 

911

 

 

27.9

6.18

 

 

(105

)

 

(0.7

)

0.61

 

 

 

Mortgage

 

7,124

 

 

182.3

5.12

 

 

7,091

 

 

180.0

5.08

 

 

33

 

 

2.3

 

0.04

 

 

 

Consumer

 

2,839

 

 

168.1

11.94

 

 

2,871

 

 

160.2

11.25

 

 

(32

)

 

7.9

 

0.69

 

 

 

Auto

 

2,776

 

 

135.3

9.83

 

 

935

 

 

39.2

8.45

 

 

1,841

 

 

96.1

 

1.38

 

 

 

Lease financing

 

958

 

 

29.1

6.07

 

 

835

 

 

25.0

5.99

 

 

123

 

 

4.1

 

0.08

 

 

Total loans

 

26,613

 

 

902.0

6.82

 

 

24,146

 

 

759.8

6.33

 

 

2,467

 

 

142.2

 

0.49

 

 

Total interest earning assets

$

45,834

 

$

1,129.0

4.96

%

$

42,156

 

$

933.9

4.46

%

$

3,678

 

$

195.1

 

0.50

%

 

 

Allowance for loan losses

 

(564

)

 

 

 

 

(640

)

 

 

 

 

76

 

 

 

 

 

 

Other non-interest earning assets

 

3,934

 

 

 

 

 

4,041

 

 

 

 

 

(107

)

 

 

 

 

Total average assets

$

49,204

 

 

 

 

$

45,557

 

 

 

 

$

3,647

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market

$

14,504

 

$

73.0

1.02

%

$

11,838

 

$

27.2

0.46

%

$

2,666

 

$

45.8

 

0.56

%

 

 

Savings

 

9,958

 

 

20.4

0.41

 

 

9,110

 

 

13.0

0.29

 

 

848

 

 

7.4

 

0.12

 

 

 

Time deposits

 

7,752

 

 

55.9

1.45

 

 

7,723

 

 

43.7

1.14

 

 

29

 

 

12.2

 

0.31

 

 

 

Total interest-bearing deposits

 

32,214

 

 

149.3

0.93

 

 

28,671

 

 

83.9

0.59

 

 

3,543

 

 

65.4

 

0.34

 

 

Borrowings

 

1,458

 

 

32.4

4.46

 

 

2,001

 

 

42.8

4.30

 

 

(543

)

 

(10.4

)

0.16

 

 

 

Total interest-bearing liabilities

 

33,672

 

 

181.7

1.09

 

 

30,672

 

 

126.7

0.83

 

 

3,000

 

 

55.0

 

0.26

 

 

 

Net interest spread

 

 

3.87

%

 

 

3.63

%

 

 

0.24

%

 

Non-interest bearing deposits

 

8,910

 

 

 

 

 

8,702

 

 

 

 

 

208

 

 

 

 

 

Other liabilities

 

1,017

 

 

 

 

 

855

 

 

 

 

 

162

 

 

 

 

 

Stockholders' equity

 

5,605

 

 

 

 

 

5,328

 

 

 

 

 

277

 

 

 

 

 

 

Total average liabilities and stockholders' equity

$

49,204

 

 

 

 

$

45,557

 

 

 

 

$

3,647

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income / margin non-taxable equivalent basis

 

$

947.3

4.16

%

 

$

807.2

3.85

%

 

$

140.1

 

0.31

%

Popular, Inc.

 

 

 

 

 

 

 

 

 

Financial Supplement to Second Quarter 2019 Earnings Release

 

 

 

 

Table F - Mortgage Banking Activities and Other Service Fees

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Banking Activities

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

Variance

Six months ended

Variance

(In thousands)

 

30-Jun-19

31-Mar-19

30-Jun-18

Q2 2019
vs.Q1 2019

Q2 2019
vs.Q2 2018

30-Jun-19

30-Jun-18

2019 vs.
2018

Mortgage servicing fees, net of fair value adjustments:

 

 

 

 

 

 

 

 

 

 

Mortgage servicing fees

 

$

11,916

 

$

11,687

 

$

12,425

 

$

229

 

$

(509

)

$

23,603

 

$

24,881

 

$

(1,278

)

 

Mortgage servicing rights fair value adjustments

 

 

(17,186

)

 

(3,825

)

 

(4,622

)

 

(13,361

)

 

(12,564

)

 

(21,011

)

 

(8,929

)

 

(12,082

)

Total mortgage servicing fees, net of fair value adjustments

 

 

(5,270

)

 

7,862

 

 

7,803

 

 

(13,132

)

 

(13,073

)

 

2,592

 

 

15,952

 

 

(13,360

)

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

 

 

5,215

 

 

4,017

 

 

2,460

 

 

1,198

 

 

2,755

 

 

9,232

 

 

3,517

 

 

5,715

 

Trading account (loss) profit:

 

 

 

 

 

 

 

 

 

 

Unrealized (losses) gains on outstanding derivative positions

 

 

(227

)

 

-

 

 

45

 

 

(227

)

 

(272

)

 

(227

)

 

(176

)

 

(51

)

 

Realized (losses) gains on closed derivative positions

 

 

(1,491

)

 

(1,953

)

 

(237

)

 

462

 

 

(1,254

)

 

(3,444

)

 

2,846

 

 

(6,290

)

Total trading account (loss) profit

 

 

(1,718

)

 

(1,953

)

 

(192

)

 

235

 

 

(1,526

)

 

(3,671

)

 

2,670

 

 

(6,341

)

Total mortgage banking activities

 

$

(1,773

)

$

9,926

 

$

10,071

 

$

(11,699

)

$

(11,844

)

$

8,153

 

$

22,139

 

$

(13,986

)

 

 

 

 

 

 

 

 

 

 

 

Other Service Fees

 

 

 

 

 

 

 

 

 

 

Quarters ended

Variance

Six months ended

Variance

(In thousands)

 

30-Jun-19

31-Mar-19

30-Jun-18

Q2 2019
vs.Q1 2019

Q2 2019
vs.Q2 2018

30-Jun-19

30-Jun-18

2019 vs.
2018

Other service fees:

 

 

 

 

 

 

 

 

 

 

Debit card fees

 

$12,034

$11,170

$11,684

$864

$350

$23,204

$23,322

$(118)

 

Insurance fees

 

17,253

12,791

13,027

4,462

4,226

30,044

25,626

4,418

 

Credit card fees

 

24,794

22,286

22,658

2,508

2,136

47,080

44,341

2,739

 

Sale and administration of investment products

 

5,732

5,259

5,020

473

712

10,991

10,375

616

 

Trust fees

 

5,522

4,716

5,139

806

383

10,238

10,236

2

 

Other fees

 

8,696

8,085

5,348

611

3,348

16,781

9,578

7,203

Total other service fees

 

$74,031

$64,307

$62,876

$9,724

$11,155

$138,338

$123,478

$14,860

Popular, Inc.

 

 

 

 

 

Financial Supplement to Second Quarter 2019 Earnings Release

Table G - Loans and Deposits

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Loans - Ending Balances

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

30-Jun-19

31-Mar-19

30-Jun-18

Q2 2019 vs.
Q1 2019

Q2 2019 vs.
Q2 2018

Loans held-in-portfolio:

 

 

 

 

Commercial

$

12,216,603

$

12,058,310

$

11,589,993

$

158,293

 

$

626,610

 

Construction

 

825,419

 

791,320

 

899,323

 

34,099

 

 

(73,904

)

Legacy [1]

 

23,893

 

24,404

 

29,250

 

(511

)

 

(5,357

)

Lease financing

 

991,546

 

963,232

 

872,098

 

28,314

 

 

119,448

 

Mortgage

 

7,198,959

 

7,207,180

 

7,376,711

 

(8,221

)

 

(177,752

)

Auto

 

2,796,403

 

2,742,095

 

915,063

 

54,308

 

 

1,881,340

 

Consumer

 

2,952,922

 

2,861,167

 

2,926,078

 

91,755

 

 

26,844

 

Total loans held-in-portfolio

$

27,005,745

$

26,647,708

$

24,608,516

$

358,037

 

$

2,397,229

 

Loans held-for-sale:

 

 

 

 

 

Mortgage

 

54,028

 

43,985

 

73,859

 

10,043

 

 

(19,831

)

Total loans held-for-sale

$

54,028

$

43,985

$

73,859

$

10,043

 

$

(19,831

)

Total loans

$

27,059,773

$

26,691,693

$

24,682,375

$

368,080

 

$

2,377,398

 

[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.

Deposits - Ending Balances

 

 

 

 

 

 

 

 

Variance

(In thousands)

30-Jun-19

31-Mar-19

30-Jun-18

Q2 2019 vs. Q1
2019

Q2 2019 vs.Q2
2018

Demand deposits [1]

$17,750,676

$16,871,924

$15,813,188

$878,752

$1,937,488

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

16,011,646

15,806,355

15,751,376

205,291

260,270

Savings, NOW and money market deposits (brokered)

384,251

395,795

389,912

(11,544)

(5,661)

Time deposits (non-brokered)

7,816,939

7,724,161

7,284,697

92,778

532,242

Time deposits (brokered CDs)

96,325

81,603

138,388

14,722

(42,063)

Total deposits

$42,059,837

$40,879,838

$39,377,561

$1,179,999

$2,682,276

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

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table H - Non-Performing Assets

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Variance

(Dollars in thousands)

30-Jun-19

As a % of
loans HIP by
category

 

31-Mar-19

As a % of
loans HIP by
category

 

30-Jun-18

As a % of
loans HIP by
category

 

Q2 2019 vs.
Q1 2019

Q2 2019 vs.
Q2 2018

Non-accrual loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$155,348

1.3

%

$169,154

1.4

%

$164,949

1.4

%

$(13,806)

$(9,601)

Construction

13,848

1.7

 

13,848

1.7

 

20,460

2.3

 

-

(6,612)

Legacy [1]

2,469

10.3

 

2,583

10.6

 

3,663

12.5

 

(114)

(1,194)

Lease financing

2,830

0.3

 

2,525

0.3

 

3,696

0.4

 

305

(866)

Mortgage

318,396

4.4

 

327,658

4.5

 

384,655

5.2

 

(9,262)

(66,259)

Auto

28,085

1.0

 

25,162

0.9

 

12,855

1.4

 

2,923

15,230

Consumer

43,382

1.5

 

45,272

1.6

 

52,921

1.8

 

(1,890)

(9,539)

Total non-performing loans held-in-portfolio

564,358

2.1

%

586,202

2.2

%

643,199

2.6

%

(21,844)

(78,841)

Other real estate owned (“OREO”)

118,851

 

 

125,478

 

 

142,063

 

 

(6,627)

(23,212)

Total non-performing assets [2]

$683,209

 

 

$711,680

 

 

$785,262

 

 

$(28,471)

$(102,053)

Accruing loans past due 90 days or more [3] [4]

$494,488

 

 

$550,717

 

 

$901,473

 

 

$(56,229)

$(406,985)

Ratios:

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets to total assets

1.35

%

 

1.46

%

 

1.65

%

 

 

 

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

2.09

 

 

2.20

 

 

2.61

 

 

 

 

Allowance for loan losses to loans held-in-portfolio

2.01

 

 

2.07

 

 

2.61

 

 

 

 

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

96.33

 

 

93.93

 

 

99.97

 

 

 

 

[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.

[2] There were no non-performing loans held-for-sale as of June 30, 2019, March 31, 2019 and June 30, 2018.

[3] 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. These include loans rebooked, which were previously pooled into GNMA securities amounting to $96 million (March 31, 2019 - $106 million; June 30, 2018 - $298 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 on the financial statements of BPPR with an offsetting liability. These balances include $262 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2019 (March 31, 2019 - $292 million; June 30, 2018 - $216 million). Furthermore, the Corporation has approximately $66 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 (March 31, 2019 - $67 million; June 30 2018 - $66 million).

[4] The carrying value of loans accounted for under ASC Subtopic 310-30 that are contractually 90 days or more past due was $248 million at June 30, 2019 (March 31, 2019 - $257 million; June 30, 2018 - $265 million). This amount is excluded from the above table as the loans’ accretable yield interest recognition is independent from the underlying contractual loan delinquency status.

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table I - Activity in Non-Performing Loans

(Unaudited)

 

 

 

 

 

 

 

 

Commercial loans held-in-portfolio:

 

 

Quarter ended

Quarter ended

 

 

30-Jun-19

31-Mar-19

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$

166,293

 

$

2,861

 

$

169,154

 

$

182,950

 

$

1,076

 

$

184,026

 

Plus:

 

 

 

 

 

 

 

New non-performing loans

 

2,209

 

 

4,362

 

 

6,571

 

 

10,554

 

 

2,220

 

 

12,774

 

Less:

 

 

 

 

 

 

 

Non-performing loans transferred to OREO

 

(1,749

)

 

-

 

 

(1,749

)

 

(962

)

 

-

 

 

(962

)

 

Non-performing loans charged-off

 

(2,931

)

 

(680

)

 

(3,611

)

 

(17,918

)

 

(50

)

 

(17,968

)

 

Loans returned to accrual status / loan collections

 

(14,683

)

 

(334

)

 

(15,017

)

 

(8,331

)

 

(385

)

 

(8,716

)

Ending balance NPLs

$

149,139

 

$

6,209

 

$

155,348

 

$

166,293

 

$

2,861

 

$

169,154

 

 

 

 

 

 

 

 

 

Construction loans held-in-portfolio:

 

 

Quarter ended

Quarter ended

 

 

30-Jun-19

31-Mar-19

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$

1,788

 

$

12,060

 

$

13,848

 

$

1,788

 

$

12,060

 

$

13,848

 

Ending balance NPLs

$

1,788

 

$

12,060

 

$

13,848

 

$

1,788

 

$

12,060

 

$

13,848

 

There was no activity in the construction NPLs, during the first and second quarter of 2019.

 

 

 

 

 

 

 

 

Mortgage loans held-in-portfolio:

 

 

Quarter ended

Quarter ended

 

 

30-Jun-19

31-Mar-19

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$

317,850

 

$

9,808

 

$

327,658

 

$

323,565

 

$

11,033

 

$

334,598

 

Plus:

 

 

 

 

 

 

 

New non-performing loans

 

50,205

 

 

1,828

 

 

52,033

 

 

47,228

 

 

1,820

 

 

49,048

 

 

Advances on existing non-performing loans

 

-

 

 

10

 

 

10

 

 

-

 

 

72

 

 

72

 

Less:

 

 

 

 

 

 

 

Non-performing loans transferred to OREO

 

(6,905

)

 

(169

)

 

(7,074

)

 

(3,155

)

 

(124

)

 

(3,279

)

 

Non-performing loans charged-off

 

(6,362

)

 

(342

)

 

(6,704

)

 

(5,734

)

 

(197

)

 

(5,931

)

 

Loans returned to accrual status / loan collections

 

(45,742

)

 

(1,785

)

 

(47,527

)

 

(44,054

)

 

(2,796

)

 

(46,850

)

Ending balance NPLs

$

309,046

 

$

9,350

 

$

318,396

 

$

317,850

 

$

9,808

 

$

327,658

 

 

 

 

 

 

 

 

 

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

 

 

Quarter ended

Quarter ended

 

 

30-Jun-19

31-Mar-19

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$

485,931

 

$

27,312

 

$

513,243

 

$

508,303

 

$

26,796

 

$

535,099

 

Plus:

 

 

 

 

 

 

 

New non-performing loans

 

52,414

 

 

6,190

 

 

58,604

 

 

57,782

 

 

4,250

 

 

62,032

 

 

Advances on existing non-performing loans

 

-

 

 

11

 

 

11

 

 

-

 

 

79

 

 

79

 

Less:

 

 

 

 

 

 

 

Non-performing loans transferred to OREO

 

(8,654

)

 

(169

)

 

(8,823

)

 

(4,117

)

 

(124

)

 

(4,241

)

 

Non-performing loans charged-off

 

(9,293

)

 

(1,022

)

 

(10,315

)

 

(23,652

)

 

(247

)

 

(23,899

)

 

Loans returned to accrual status / loan collections

 

(60,425

)

 

(2,234

)

 

(62,659

)

 

(52,385

)

 

(3,442

)

 

(55,827

)

Ending balance NPLs [1]

$

459,973

 

$

30,088

 

$

490,061

 

$

485,931

 

$

27,312

 

$

513,243

 

[1] Includes $2.5 million of NPLs related to the legacy portfolio as of June 30, 2019 (March 31, 2019 - $2.6 million).

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter
ended

 

Quarter
ended

 

Quarter ended

 

 

30-Jun-19

 

31-Mar-19

 

30-Jun-18

 

(Dollars in thousands)

Total

 

Total

 

Non-covered loans

 

Covered loans

 

Total

 

Balance at beginning of period

$550,628

 

$569,348

 

$606,968

 

$33,610

 

$640,578

 

Provision for loan losses

40,191

 

41,825

 

60,054

 

-

 

60,054

 

 

590,819

 

611,173

 

667,022

 

33,610

 

700,632

 

Net loans charged-off (recovered):

 

 

 

 

 

 

 

 

 

 

BPPR

 

 

 

 

 

 

 

 

 

 

Commercial

184

 

16,594

 

7,960

 

-

 

7,960

 

Construction

(54)

 

(17)

 

(301)

 

-

 

(301)

 

Lease financing

1,630

 

1,486

 

1,157

 

-

 

1,157

 

Mortgage

8,713

 

11,183

 

11,575

 

-

 

11,575

 

Consumer

26,694

 

24,983

 

24,074

 

-

 

24,074

 

Total BPPR

37,167

 

54,229

 

44,465

 

-

 

44,465

 

 

 

 

 

 

 

 

 

 

 

 

Popular U.S.

 

 

 

 

 

 

 

 

 

 

Commercial

5,791

 

2,834

 

10,132

 

-

 

10,132

 

Construction

-

 

(8)

 

-

 

-

 

-

 

Legacy [1]

(277)

 

(715)

 

(277)

 

-

 

(277)

 

Mortgage

230

 

229

 

18

 

-

 

18

 

Consumer

4,242

 

3,976

 

3,276

 

-

 

3,276

 

Total Popular U.S.

9,986

 

6,316

 

13,149

 

-

 

13,149

 

Total loans charged-off - Popular, Inc.

47,153

 

60,545

 

57,614

 

-

 

57,614

 

Allowance transferred from covered to non-covered loans

-

 

-

 

33,610

 

(33,610)

 

-

 

Balance at end of period

$543,666

 

$550,628

 

$643,018

 

$-

 

$643,018

 

 

 

 

 

 

 

 

 

 

 

 

POPULAR, INC.

 

 

 

 

 

 

 

 

 

 

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

0.71

%

0.92

%

0.95

%

 

 

0.95

%

Provision for loan losses to net charge-offs

85.24

%

69.08

%

104.24

%

 

 

104.24

%

 

 

 

 

 

 

 

 

 

 

 

BPPR

 

 

 

 

 

 

 

 

 

 

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

0.75

%

1.09

%

1.01

%

 

 

1.01

%

Provision for loan losses to net charge-offs

77.96

%

58.00

%

99.87

%

 

 

99.87

%

 

 

 

 

 

 

 

 

 

 

 

Popular U.S.

 

 

 

 

 

 

 

 

 

 

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

0.59

%

0.38

%

 

 

 

 

0.81

%

Provision for loan losses to net charge-offs

112.32

%

164.20

%

 

 

 

 

119.01

%

[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Jun-19

(Dollars in thousands)

 

Commercial

 

Construction

 

Legacy [1]

 

Mortgage

 

Lease financing

 

Consumer

 

Total

 

Specific ALLL

 

$31,698

 

$90

 

$-

 

$43,550

 

$234

 

$24,455

 

$100,027

 

Impaired loans

 

$390,271

 

$13,848

 

$-

 

$530,650

 

$865

 

$108,851

 

$1,044,485

 

Specific ALLL to impaired loans

 

8.12

%

0.65

%

-

%

8.21

%

27.05

%

22.47

%

9.58

%

General ALLL

 

$193,831

 

$9,793

 

$774

 

$88,966

 

$6,673

 

$143,602

 

$443,639

 

Loans held-in-portfolio, excluding impaired loans

 

$11,826,332

 

$811,571

 

$23,893

 

$6,668,309

 

$990,681

 

$5,640,474

 

$25,961,260

 

General ALLL to loans held-in-portfolio, excluding impaired loans

 

1.64

%

1.21

%

3.24

%

1.33

%

0.67

%

2.55

%

1.71

%

Total ALLL

 

$225,529

 

$9,883

 

$774

 

$132,516

 

$6,907

 

$168,057

 

$543,666

 

Total loans held-in-portfolio

 

$12,216,603

 

$825,419

 

$23,893

 

$7,198,959

 

$991,546

 

$5,749,325

 

$27,005,745

 

ALLL to loans held-in-portfolio

 

1.85

%

1.20

%

3.24

%

1.84

%

0.70

%

2.92

%

2.01

%

[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. reportable segment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Mar-19

(Dollars in thousands)

 

Commercial

 

Construction

 

Legacy [1]

 

Mortgage

 

Lease financing

 

Consumer

 

Total

 

Specific ALLL

 

$33,476

 

$19

 

$-

 

$43,139

 

$321

 

$25,003

 

$101,958

 

Impaired loans

 

$383,494

 

$13,848

 

$-

 

$524,803

 

$1,018

 

$110,874

 

$1,034,037

 

Specific ALLL to impaired loans

 

8.73

%

0.14

%

-

%

8.22

%

31.53

%

22.55

%

9.86

%

General ALLL

 

$191,013

 

$7,477

 

$829

 

$99,159

 

$8,788

 

$141,404

 

$448,670

 

Loans held-in-portfolio, excluding impaired loans

 

$11,674,816

 

$777,472

 

$24,404

 

$6,682,377

 

$962,214

 

$5,492,388

 

$25,613,671

 

General ALLL to loans held-in-portfolio, excluding impaired loans

 

1.64

%

0.96

%

3.40

%

1.48

%

0.91

%

2.57

%

1.75

%

Total ALLL

 

$224,489

 

$7,496

 

$829

 

$142,298

 

$9,109

 

$166,407

 

$550,628

 

Total loans held-in-portfolio

 

$12,058,310

 

$791,320

 

$24,404

 

$7,207,180

 

$963,232

 

$5,603,262

 

$26,647,708

 

ALLL to loans held-in-portfolio

 

1.86

%

0.95

%

3.40

%

1.97

%

0.95

%

2.97

%

2.07

%

[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. reportable segment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

(Dollars in thousands)

 

Commercial

 

Construction

 

Legacy

 

Mortgage

 

Lease financing

 

Consumer

 

Total

 

Specific ALLL

 

$(1,778)

 

$71

 

$-

 

$411

 

$(87)

 

$(548)

 

$(1,931)

 

Impaired loans

 

$6,777

 

$-

 

$-

 

$5,847

 

$(153)

 

$(2,023)

 

$10,448

 

General ALLL

 

$2,818

 

$2,316

 

$(55)

 

$(10,193)

 

$(2,115)

 

$2,198

 

$(5,031)

 

Loans held-in-portfolio, excluding impaired loans

 

$151,516

 

$34,099

 

$(511)

 

$(14,068)

 

$28,467

 

$148,086

 

$347,589

 

Total ALLL

 

$1,040

 

$2,387

 

$(55)

 

$(9,782)

 

$(2,202)

 

$1,650

 

$(6,962)

 

Total loans held-in-portfolio

 

$158,293

 

$34,099

 

$(511)

 

$(8,221)

 

$28,314

 

$146,063

 

$358,037

 

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS

(Unaudited)

 

 

 

 

 

 

 

 

30-Jun-19

Puerto Rico

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Allowance for credit losses:

 

 

 

 

 

 

 

Specific ALLL

$

31,698

 

$

90

$

41,158

 

$

234

 

$

22,592

 

$

95,772

 

 

General ALLL

 

158,529

 

 

2,906

 

86,772

 

 

6,673

 

 

125,539

 

 

380,419

 

Total ALLL

$

190,227

 

$

2,996

$

127,930

 

$

6,907

 

$

148,131

 

$

476,191

 

Loans held-in-portfolio:

 

 

 

 

 

 

 

Impaired loans

$

386,310

 

$

1,788

$

521,257

 

$

865

 

$

98,901

 

$

1,009,121

 

 

Loans held-in-portfolio, excluding impaired loans

 

6,953,539

 

 

107,170

 

5,781,701

 

 

990,681

 

 

5,199,449

 

 

19,032,540

 

Total loans held-in-portfolio

$

7,339,849

 

$

108,958

$

6,302,958

 

$

991,546

 

$

5,298,350

 

$

20,041,661

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Mar-19

Puerto Rico

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Allowance for credit losses:

 

 

 

 

 

 

 

Specific ALLL

$

33,253

 

$

19

$

40,779

 

$

321

 

$

23,350

 

$

97,722

 

 

General ALLL

 

155,678

 

 

803

 

97,077

 

 

8,788

 

 

124,315

 

 

386,661

 

Total ALLL

$

188,931

 

$

822

$

137,856

 

$

9,109

 

$

147,665

 

$

484,383

 

Loans held-in-portfolio:

 

 

 

 

 

 

 

Impaired

$

381,803

 

$

1,788

$

515,365

 

$

1,018

 

$

101,887

 

$

1,001,861

 

 

Loans held-in-portfolio, excluding impaired loans

 

7,009,319

 

 

89,584

 

5,860,223

 

 

962,214

 

 

5,073,149

 

 

18,994,489

 

Total loans held-in-portfolio

$

7,391,122

 

$

91,372

$

6,375,588

 

$

963,232

 

$

5,175,036

 

$

19,996,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Allowance for credit losses:

 

 

 

 

 

 

 

Specific ALLL

$

(1,555

)

$

71

$

379

 

$

(87

)

$

(758

)

$

(1,950

)

 

General ALLL

 

2,851

 

 

2,103

 

(10,305

)

 

(2,115

)

 

1,224

 

 

(6,242

)

Total ALLL

$

1,296

 

$

2,174

$

(9,926

)

$

(2,202

)

$

466

 

$

(8,192

)

Loans held-in-portfolio:

 

 

 

 

 

 

 

Impaired

$

4,507

 

$

-

$

5,892

 

$

(153

)

$

(2,986

)

$

7,260

 

 

Loans held-in-portfolio, excluding impaired loans

 

(55,780

)

 

17,586

 

(78,522

)

 

28,467

 

 

126,300

 

 

38,051

 

Total loans held-in-portfolio

$

(51,273

)

$

17,586

$

(72,630

)

$

28,314

 

$

123,314

 

$

45,311

 

Popular, Inc.

Financial Supplement to Second Quarter 2019 Earnings Release

Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - POPULAR U.S. OPERATIONS

(Unaudited)

 

 

 

 

 

 

 

 

30-Jun-19

Popular U.S.

(In thousands)

Commercial

Construction

Legacy

Mortgage

Consumer

Total

Allowance for credit losses:

 

 

 

 

 

 

 

Specific ALLL

$

-

 

$

-

$

-

 

$

2,392

 

$

1,863

$

4,255

 

General ALLL

 

35,302

 

 

6,887

 

774

 

 

2,194

 

 

18,063

 

63,220

Total ALLL

$

35,302

 

$

6,887

$

774

 

$

4,586

 

$

19,926

$

67,475

Loans held-in-portfolio:

 

 

 

 

 

 

 

Impaired loans

$

3,961

 

$

12,060

$

-

 

$

9,393

 

$

9,950

$

35,364

 

Loans held-in-portfolio, excluding impaired loans

 

4,872,793

 

 

704,401

 

23,893

 

 

886,608

 

 

441,025

 

6,928,720

Total loans held-in-portfolio

$

4,876,754

 

$

716,461

$

23,893

 

$

896,001

 

$

450,975

$

6,964,084

 

 

 

 

 

 

 

 

 

31-Mar-19

Popular U.S.

(In thousands)

Commercial

Construction

Legacy

Mortgage

Consumer

Total

Allowance for credit losses:

 

 

 

 

 

 

 

Specific ALLL

$

223

 

$

-

$

-

 

$

2,360

 

$

1,653

$

4,236

 

General ALLL

 

35,335

 

 

6,674

 

829

 

 

2,082

 

 

17,089

 

62,009

Total ALLL

$

35,558

 

$

6,674

$

829

 

$

4,442

 

$

18,742

$

66,245

Loans held-in-portfolio:

 

 

 

 

 

 

 

Impaired loans

$

1,691

 

$

12,060

$

-

 

$

9,438

 

$

8,987

$

32,176

 

Loans held-in-portfolio, excluding impaired loans

 

4,665,497

 

 

687,888

 

24,404

 

 

822,154

 

 

419,239

 

6,619,182

Total loans held-in-portfolio

$

4,667,188

 

$

699,948

$

24,404

 

$

831,592

 

$

428,226

$

6,651,358

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

Commercial

Construction

Legacy

Mortgage

Consumer

Total

Allowance for credit losses:

 

 

 

 

 

 

 

Specific ALLL

$

(223

)

$

-

$

-

 

$

32

 

$

210

$

19

 

General ALLL

 

(33

)

 

213

 

(55

)

 

112

 

 

974

 

1,211

Total ALLL

$

(256

)

$

213

$

(55

)

$

144

 

$

1,184

$

1,230

Loans held-in-portfolio:

 

 

 

 

 

 

 

Impaired loans

$

2,270

 

$

-

$

-

 

$

(45

)

$

963

$

3,188

 

Loans held-in-portfolio, excluding impaired loans

 

207,296

 

 

16,513

 

(511

)

 

64,454

 

 

21,786

 

309,538

Total loans held-in-portfolio

$

209,566

 

$

16,513

$

(511

)

$

64,409

 

$

22,749

$

312,726

Popular, Inc.

 

 

 

 

 

 

Financial Supplement to Second Quarter 2019 Earnings Release

Table N - Reconciliation to GAAP Financial Measures

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except share or per share information)

30-Jun-19

 

31-Mar-19

 

30-Jun-18

 

Total stockholders’ equity

$5,719,834

 

$5,440,060

 

$5,289,661

 

Less: Preferred stock

(50,160)

 

(50,160)

 

(50,160)

 

Less: Goodwill

(671,122)

 

(671,122)

 

(627,294)

 

Less: Other intangibles

(23,878)

 

(24,521)

 

(31,023)

 

Total tangible common equity

$4,974,674

 

$4,694,257

 

$4,581,184

 

Total assets

$50,617,221

 

$48,680,607

 

$47,535,177

 

Less: Goodwill

(671,122)

 

(671,122)

 

(627,294)

 

Less: Other intangibles

(23,878)

 

(24,521)

 

(31,023)

 

Total tangible assets

$49,922,221

 

$47,984,964

 

$46,876,860

 

Tangible common equity to tangible assets

9.96

%

9.78

%

9.77

%

Common shares outstanding at end of period

96,703,351

 

96,629,891

 

102,296,440

 

Tangible book value per common share

$51.44

 

$48.58

 

$44.78

 

 

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Contact:

Popular, Inc.
Investor Relations:
Paul Cardillo, 212-417-6721
Senior Vice President, Investor Relations Officer

or

Media Relations:
Teruca Rullán, 787-281-5170 or 917-679-3596 (mobile)
Senior Vice President, Corporate Communications

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