Popular, Inc. Announces Fourth Quarter 2023 Financial Results

  • Net income of $94.6 million in Q4 2023, compared to net income of $136.6 million in Q3 2023; excluding the $45.3 million after-tax impact during the fourth quarter of the FDIC Special Assessment (defined below), adjusted net income was $139.9 million.
  • Net income of $541.3 million for the year 2023, compared to net income of $1.1 billion for the year 2022. Excluding the effects of the FDIC Special Assessment, the adjusted net income for the year 2023 was $586.6 million, compared to an adjusted net income of $807.8 million for the year 2022, excluding the effects of the partial release of $68.2 million of the deferred tax asset valuation allowance and the $226.6 million impact of the completed Evertec Transactions and related accounting adjustments, in which the Corporation acquired certain critical channels from Evertec, Inc. (“Evertec”) and completed the sale of its shares of Evertec.
  • Net interest income amounted to $534.2 million, flat compared to Q3 2023.
  • Net interest margin of 3.08% in Q4 2023, compared to 3.07% in Q3 2023; net interest margin on a taxable equivalent basis of 3.26% in Q4 2023, compared to 3.24% in Q3 2023.
  • Non-interest income of $168.7 million, an increase of $9.2 million compared to Q3 2023.
  • Operating expenses amounted to $531.1 million, including the before-tax $71.4 million FDIC Special Assessment; an increase of $65.2 million compared to Q3 2023. Excluding the FDIC Special Assessment, operating expenses decreased by $6.2 million.
  • Credit Quality:
    • Non-performing loans held-in-portfolio (“NPLs”) decreased by $3.9 million from Q3 2023; NPLs to loans ratio at 1.0% vs. 1.1% in Q3 2023;
    • Net charge-offs (“NCOs”) increased by $24.3 million from Q3 2023; annualized NCOs at 0.66% of average loans held-in-portfolio vs. 0.39% in Q3 2023;
    • Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.08% vs. 2.09% in Q3 2023; and
    • ACL to NPLs at 204.0% vs. 196.7% in Q3 2023.
  • Loans ending balances increased by $1.0 billion and by $1.0 billion in average quarterly balances, from Q3 2023.
  • Ending deposit balances increased by $280.6 million while average quarterly balances increased by $285.9 million, from Q3 2023.
  • Common Equity Tier 1 ratio of 16.30%, Common Equity per Share of $71.03 and Tangible Book Value per Share of $59.74 at December 31, 2023.

Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $94.6 million for the quarter ended December 31, 2023, compared to net income of $136.6 million for the quarter ended September 30, 2023. Excluding the impact during the fourth quarter of the FDIC Special Assessment, adjusted net income was $139.9 million.

Ignacio Alvarez, President and Chief Executive Officer, said: “We delivered solid fourth quarter and year-end results and entered 2024 with strong momentum. Notwithstanding the interest rate environment and the disruptions in the banking market early in the year, we were able to maintain stable net interest income as we grew loans by approximately $1 billion during the quarter and a total of $3 billion for the full year.

We continued to experience strong client activity during the year, growing our customer base in Puerto Rico by 34,000 reflecting the continued strength of the local economy and our diversified product offerings. Excluding the gain from the Evertec transaction in 2022, we grew non-interest income by $11 million. While we saw some credit normalization in our consumer portfolios, credit quality remained strong. We were also able to manage our operating expenses at the same time we continued to invest in our transformation efforts.

Our CET1 ratio at year-end was 16.3% and our tangible equity increased by 33%, or $14.77 per share. Our strong liquidity and capital ratios position us well to continue to support responsible growth in 2024.

I would like to express my gratitude and appreciation to our employees for all their hard work and dedication during the year. While conscious that we are living in a period of great uncertainty, the outlook for the macroenvironment in Puerto Rico remains positive and we look forward to 2024 with optimism.”

Significant Events

FDIC Special Assessment

On November 16, 2023, the Federal Deposit Insurance Corporation (“FDIC”) approved a final rule that imposes a special assessment (the “FDIC Special Assessment”) to recover the losses to the deposit insurance fund (“DIF”) resulting from the FDIC’s use, in March 2023, of the systemic risk exception to the least-cost resolution test under the Federal Deposit Insurance Act in connection with the receiverships of several failed banks.

Under the final rule, the assessment base for the special assessment is equal to an insured depository institution’s (“IDI”) estimated uninsured deposits, as reported in the IDI’s December 31, 2022 Call Report, excluding the first $5 billion in estimated uninsured deposits. For a holding company that has more than one IDI subsidiary, such as Popular, the $5 billion exclusion is allocated among the company’s IDI subsidiaries in proportion to each IDI’s estimated uninsured deposits. The special assessments would be collected at an annual rate of approximately 13.4 basis points per year (3.35 basis points per quarter) over eight quarters in 2024 and 2025, with the first assessment period beginning January 1, 2024. In their December 31, 2022 Call Reports, Banco Popular de Puerto Rico (“BPPR”) and Popular Bank (“PB”) reported estimated uninsured deposits of approximately $28.1 billion, including $16.2 billion in fully collateralized public sector deposits, and $3.5 billion, respectively. The Corporation recorded an expense of $71.4 million, $45.3 million net of tax, in the fourth quarter of 2023, representing the full amount of the assessment.

Increase in quarterly common stock dividends

During the fourth quarter of 2023, the Corporation declared a quarterly common stock cash dividend of $0.62 per share, an increase of $0.07, or 13%, compared to the $0.55 per share declared by the Corporation in the third quarter of 2023.

Earnings Highlights

 

 

 

 

 

 

 

 

(Unaudited)

Quarters ended

 

Years ended

(Dollars in thousands, except per share information)

31-Dec-23

30-Sep-23

31-Dec-22

 

31-Dec-23

31-Dec-22

Net interest income

$

534,180

 

$

534,020

$

559,566

 

 

$

2,131,524

$

2,167,359

Provision for credit losses

 

78,663

 

 

45,117

 

49,531

 

 

 

208,609

 

83,030

Net interest income after provision for credit losses

 

455,517

 

 

488,903

 

510,035

 

 

 

1,922,915

 

2,084,329

Other non-interest income

 

168,743

 

 

159,549

 

158,465

 

 

 

650,724

 

897,062

Operating expenses

 

531,145

 

 

465,984

 

461,708

 

 

 

1,898,100

 

1,746,420

Income before income tax

 

93,115

 

 

182,468

 

206,792

 

 

 

675,539

 

1,234,971

Income tax (benefit) expense

 

(1,479

)

 

45,859

 

(50,347

)

 

 

134,197

 

132,330

Net income

$

94,594

 

$

136,609

$

257,139

 

 

$

541,342

$

1,102,641

Net income applicable to common stock

$

94,241

 

$

136,256

$

256,786

 

 

$

539,930

$

1,101,229

Net income per common share-basic

$

1.31

 

$

1.90

$

3.56

 

 

$

7.53

$

14.65

Net income per common share-diluted

$

1.31

 

$

1.90

$

3.56

 

 

$

7.52

$

14.63

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

Net interest income, on a taxable equivalent basis, is presented with its different components in Tables D and E for the quarter ended December 31, 2023 and comparable quarters September 30, 2023 and December 31, 2022, respectively, and Table F for the year ended December 31, 2023 and 2022. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

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

Net interest income for the quarter ended December 31, 2023 was $534.2 million, flat when compared to $534.0 million in the previous quarter. Net interest income on a taxable equivalent basis for the fourth quarter of 2023 was $564.8 million, compared to $563.7 million in the previous quarter, an increase of $1.1 million.

Net interest margin for the fourth quarter of 2023 was 3.08% compared with 3.07% in the prior quarter. On a taxable equivalent basis, net interest margin for the fourth quarter of 2023 was 3.26%, compared to 3.24% for the prior quarter. The main quarter over quarter variances in net interest income on a taxable equivalent basis were:

  • Higher interest income from loans by $32.4 million resulting from an increase in average loans by $995 million, reflecting increases in BPPR and PB of $729 million and $266 million, respectively. All major loan categories in BPPR increased, while at PB the increase was mainly in the commercial and construction portfolios. Loan originations in a higher interest rate environment and the repricing of adjustable-rate loans resulted in a higher yield on loans by 17 basis points. All loan categories resulted in a higher yield quarter over quarter;

partially offset by:

  • Lower interest income from investment securities, trading and money market investments by $8.7 million driven mainly by lower volume of U.S. Treasury Securities, partially offset by stable volume of money market investments at a higher yield by seven basis points. The increase in the yield of money market investments is driven by the full quarter effect of the 25 basis points increase in market rates that occurred at the end of July; and
  • Higher interest expense on deposits by $25.1 million, mainly from the increase in cost of Puerto Rico government deposits by 34 basis points, or $10.3 million, and a higher volume and cost of PB interest bearing deposits by $555 million and 34 basis points, respectively, or $12.6 million.

Net interest income for the BPPR segment amounted to $454.9 million for the fourth quarter of 2023, an increase of $1.0 million when compared to $453.9 million in net interest income during the third quarter of 2023. Net interest margin for the BPPR segment increased five basis points to 3.19% compared to 3.14% in the third quarter of 2023. The increase in net interest margin reflects a higher volume of loans by $729 million across all loan categories, except construction loans, partially offset by a lower volume of investment securities, trading and money market investments by $1.6 billion driven by a decrease in deposits of $1.0 billion and a higher cost of deposits, mainly Puerto Rico government deposits. Earning assets yield improved 14 basis points from 4.74% to 4.88% in Q4 2023. The cost of interest-bearing deposits increased by 16 basis points to 2.41% from 2.25% the previous quarter. The increase in the cost of deposits mainly resulted from the repricing of public funds. Total deposit cost in the fourth quarter of 2023 was 1.79%, compared to 1.68% in the third quarter of 2023, an increase of 11 basis points.

Net interest income for PB was $85.6 million for the quarter ended December 31, 2023, a decrease of $1.8 million when compared to $87.4 million during the previous quarter. Net interest margin decreased by 18 basis points in the quarter to 2.72%, compared to 2.90% in the third quarter of 2023. The decrease in net interest margin was mostly driven by a higher cost of deposits, partially offset by a higher volume of loans and the repricing of adjustable-rate loans in the current interest rate environment. The cost of interest-bearing deposits was 3.66%, compared to 3.31% for the third quarter, or an increase of 34 basis points, while total deposit cost was 3.17%, compared to 2.84% in the previous quarter.

Non-interest income

Non-interest income amounted to $168.7 million for the fourth quarter of 2023, an increase of $9.2 million when compared to $159.5 million for the quarter ended September 30, 2023. The variance in non-interest income was driven primarily by:

  • a favorable variance in the fair value adjustment of equity securities by $3.6 million, mainly related to securities held for deferred benefit plans, which have an offsetting effect in personnel costs;
  • higher other service fees by $3.3 million due to an increase in contingent insurance commissions that are typically received during the fourth quarter and higher debit and credit card fees due to higher transactional volumes; and
  • a favorable variance in the adjustment for indemnity reserve on loans previously sold of $2.5 million.

Refer to Table B for further details.

Operating expenses

Operating expenses for the fourth quarter of 2023 totaled $531.1 million, including higher FDIC deposit insurance expense by $72.5 million due to the impact of the FDIC Special Assessment, an increase of $65.2 million when compared to the third quarter of 2023. Excluding the effect of the FDIC Special Assessment, total expenses for the fourth quarter of 2023 were $459.7 million, compared to $466.0 million in the previous quarter. During the fourth quarter of 2023, the Corporation incurred approximately $4.8 million in costs related to its technological and business process transformation initiative, compared to $3.8 million in the previous quarter, mainly in professional services and personnel costs. During the year 2023, the Corporation incurred approximately $21.5 million in transformation related costs, compared to $24.6 million incurred during the second half of the year 2022. The other variances in operating expenses for the quarter were driven primarily by:

  • higher other taxes expense by $6.0 million mainly due to an accrual reversal of $8.2 million during the third quarter of 2023 related to regulatory examination fees in BPPR;
  • higher business promotion expense by $4.8 million mainly due to $5.4 million of seasonal projects and higher donations granted during the quarter; partially offset by lower customer rewards programs expense in our credit card business by $2.0 million;
  • higher other operating expenses by $3.9 million mainly due to $1.4 million in higher sundry losses and an unfavorable variance of $1.1 million in net gains/losses recognized on the sale of foreclosed auto units;
  • higher technology and software expenses by $3.8 million mainly due to higher IT professional fees and network management expenses due to various ongoing technology projects; and
  • higher net occupancy expense by $2.2 million mainly due to an increase in buildings’ repairs and maintenance costs;

partially offset by:

  • a non-cash goodwill impairment of $23.0 million recorded during the previous quarter in our U.S. based equipment leasing subsidiary due to lower forecasted cash flows and an increase in the rate used to discount cash flows; and
  • lower processing and transactional services expense by $8.4 million mainly due to lower credit card processing expenses by $7.1 million as a result of annual volume growth incentives recognized during the quarter;

Full-time equivalent employees were 9,088 as of December 31, 2023, compared to 9,063 as of September 30, 2023.

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

Income taxes

For the quarter ended December 31, 2023, the Corporation recorded an income tax benefit of $1.5 million, compared to an income tax expense of $45.9 million for the previous quarter. The positive variance of $47.4 million is mostly attributed to a lower income before tax of $89.4 million, primarily due to the FDIC Special Assessment; the remaining variance is related to tax credits, higher exempt income, and other adjustments recorded during this quarter. The effective tax rate (“ETR”) for the 2023 fourth quarter was (1.6)%, compared to 25.1% for the third quarter. Excluding the impact of the FDIC Special Assessment, the ETR for the fourth quarter was 15.0%, compared to 25.1% for the third quarter.

The Corporation’s ETR for the year 2023 was 19.9%; excluding the FDIC Special Assessment, the ETR was 21.5%. The ETR of the Corporation is impacted by the composition and source of its taxable income. The Corporation expects its ETR for the year 2024 to be within a range from 19% to 23%.

Credit Quality

During the fourth quarter of 2023, the Corporation continued to reflect credit quality normalization. Non-performing loans (“NPLs”) and net charge offs (“NCOs”) continued below historical pre-pandemic averages. Consumer portfolios, however, reflected certain credit quality deterioration, particularly the personal loans and credit cards portfolios, with delinquencies and NCOs near or exceeding pre-pandemic levels. The auto loans portfolio also showed credit normalization, however, metrics remained below pre-pandemic levels. The commercial and mortgage portfolios continue to operate with historically low levels of NCOs and NPLs. We continue to closely monitor changes in the macroeconomic environment and on borrower performance given higher interest rates and inflationary pressures. However, management believes that the improvements over recent years in risk management practices and the risk profile of the Corporation’s loan portfolios position Popular to continue to operate successfully under the current environment.

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

  • At December 31, 2023, total NPLs held-in-portfolio decreased by $3.9 million from September 30, 2023. BPPR’s NPLs decreased by $5.1 million, mostly driven by lower mortgage NPLs by $12.3 million, in part offset by higher consumer NPLs by $4.9 million. The commercial NPLs remained flat quarter-over-quarter, the result of an $17.9 million relationship inflow, offset by a $5.3 million collateral dependent loan transferred to OREO, $6.4 million in loans returning to accrual status and $5.1 million in charge-offs. PB’s NPLs remained flat quarter-over-quarter. At December 31, 2023, the ratio of NPLs to total loans held-in-portfolio was 1.0%, compared to 1.1% in the third quarter of 2023.
  • Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $17.7 million quarter-over-quarter. In BPPR, total inflows increased by $15.0 million due to higher commercial inflows by $19.3 million driven by the abovementioned $17.9 million single relationship, in part offset by lower mortgage inflows by $4.3 million. PB inflows increased by $2.7 million, driven by higher commercial inflows.
  • NCOs amounted to $56.9 million, increasing by $24.3 million when compared to the third quarter of 2023. BPPR’s NCOs increased by $26.3 million quarter-over-quarter, mainly driven by higher commercial and consumer NCOs by $14.4 million and $11.2 million, respectively. The commercial NCO increase was mainly the result of a $10.8 million recovery from a loan pay-off in the previous quarter, coupled with charge-offs on valuations of collateral dependent loans during the fourth quarter of 2023. The consumer NCO increase was mainly driven by higher auto loans, personal loans and credit cards NCOs by $5.9 million, $3.1 million and $2.2 million, respectively. PB’s NCOs decreased by $2.0 million quarter-over-quarter, mainly driven by lower commercial NCOs. During the fourth quarter of 2023, the Corporation’s ratio of annualized NCOs to average loans held-in-portfolio was 0.66%, compared to 0.39% in the third quarter of 2023. Refer to Table N for further information on NCOs and related ratios.
  • At December 31, 2023, the allowance for credit losses (“ACL”) increased by $18.3 million from the third quarter of 2023 to $729.3 million. In BPPR the ACL increased by $15.3 million, primarily driven by a $10.0 million specific reserve for the $17.9 million new NPL mentioned above, loan growth and higher reserves for the consumer portfolios attributable to changing credit quality. In PB the ACL increased by $2.9 million from the previous quarter, mainly driven by higher reserves for the commercial portfolio due to changes in ratings.
  • 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, and then the optimistic scenario.
  • The 2023 annualized GDP growth in the baseline scenario improved to 2.0% and 2.4% for Puerto Rico and the United States, respectively, compared to 1.7% and 2.0% in the previous quarter. The 2023 forecasted average unemployment rate for Puerto Rico remained at 6.1% from previous forecast, while in the United States unemployment levels remained stable at 3.7%, compared to 3.6% in the previous forecast.
  • GDP growth is expected to slow down during 2024 for both regions, when compared to 2023, as a result of the Fed’s monetary policy. The 2024 GDP growth is expected to be 1.21% for Puerto Rico and 1.65% for the United States. The average 2024 unemployment rate is expected to increase to 6.79% in Puerto Rico and 3.95% in the United States.
  • The Corporation’s ratio of the ACL to loans held-in-portfolio was 2.08% in the fourth quarter of 2023, compared to 2.09% in the previous quarter. The ratio of the ACL to NPLs held-in-portfolio stood at 204.0%, compared to 196.7% in the previous quarter.
  • The provision for credit losses for the loan portfolios for the fourth quarter of 2023 was $75.2 million, compared to $43.5 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was $67.2 million, compared to $54.0 million in the previous quarter, while the provision for PB was $8.0 million, compared to a benefit of $10.5 million in the previous quarter. In the third quarter, the Corporation implemented a new model for the U.S. commercial real estate portfolio. The implementation of this new model generated a $15.0 million reduction in reserves, which contributed to PB’s net benefit recorded in the third quarter.
  • The provision for credit losses on our loan and lease portfolios, provision for unfunded loan commitments of $3.7 million, and release for credit losses on our investment portfolio of $0.2 million for the fourth quarter are aggregated and presented in the provision for credit losses caption in our Consolidated Statement of Operations. For the fourth quarter, these combined concepts resulted in a provision expense of $78.7 million, compared to $45.1 million in the previous quarter.

Non-Performing Assets

 

 

 

 

 

(Unaudited)

 

 

 

 

 

(In thousands)

31-Dec-23

 

30-Sep-23

 

31-Dec-22

Non-performing loans held-in-portfolio

$

357,611

 

 

$

361,523

 

 

$

439,441

 

Other real estate owned (“OREO”)

 

80,416

 

 

 

82,322

 

 

 

89,126

 

Total non-performing assets

$

438,027

 

 

$

443,845

 

 

$

528,567

 

Net charge-offs (recoveries) for the quarter

$

56,947

 

 

$

32,655

 

 

$

31,200

 

 

 

 

 

 

 

 

Ratios:

 

 

 

 

 

Loans held-in-portfolio

$

35,064,971

 

 

$

34,029,313

 

 

$

32,077,769

 

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

 

1.02

%

 

 

1.06

%

 

 

1.37

%

Allowance for credit losses to loans held-in-portfolio

 

2.08

 

 

 

2.09

 

 

 

2.25

 

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

 

203.95

 

 

 

196.69

 

 

 

163.91

 

Refer to Table L for additional information.

 

 

 

 

 

Provision for Credit Losses (Benefit) - Loan Portfolios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

Quarters ended

 

Years ended

(In thousands)

 

31-Dec-23

 

30-Sep-23

 

31-Dec-22

 

31-Dec-23

31-Dec-22

Provision for credit losses (benefit) - loan portfolios:

 

 

 

 

 

 

 

 

 

BPPR

 

$

67,235

 

$

54,017

 

 

$

44,383

 

$

194,834

$

69,544

Popular U.S.

 

 

7,983

 

 

(10,503

)

 

 

3,949

 

 

6,705

 

13,763

Total provision for credit losses (benefit) - loan portfolios

 

$

75,218

 

$

43,514

 

 

$

48,332

 

$

201,539

$

83,307

Credit Quality by Segment

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

(In thousands)

Quarters ended

 

BPPR

 

31-Dec-23

 

30-Sep-23

 

31-Dec-22

 

Provision for credit losses - loan portfolios

 

$

67,235

 

 

$

54,017

 

 

$

44,383

 

 

Net charge-offs

 

 

51,913

 

 

 

25,600

 

 

 

19,846

 

 

Total non-performing loans held-in-portfolio

 

328,718

 

 

 

333,825

 

 

 

402,009

 

 

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

 

 

0.86

%

 

 

0.44

%

 

 

0.35

%

 

Allowance / loans held-in-portfolio

 

2.61

%

 

 

2.63

%

 

 

2.73

%

 

Allowance / non-performing loans held-in-portfolio

 

194.65

%

 

 

187.08

%

 

 

153.12

%

 

 

 

 

 

 

 

 

 

 

Quarters ended

 

Popular U.S.

 

31-Dec-23

 

30-Sep-23

 

31-Dec-22

 

Provision for credit losses - loan portfolios

 

$

7,983

 

 

$

(10,503

)

 

$

3,949

 

 

Net charge-offs

 

 

5,034

 

 

 

7,055

 

 

 

11,354

 

 

Total non-performing loans held-in-portfolio

 

 

28,893

 

 

 

27,698

 

 

 

37,432

 

 

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

 

 

0.19

%

 

 

0.28

%

 

 

0.49

 

 

Allowance / loans held-in-portfolio

 

0.85

%

 

 

0.84

%

 

 

1.10

%

 

Allowance / non-performing loans held-in-portfolio

 

309.70

%

 

 

312.42

%

 

 

279.86

%

 

Financial Condition Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

(In thousands)

31-Dec-23

 

30-Sep-23

 

31-Dec-22

Cash and money market investments

$

7,419,333

 

$

6,924,772

 

$

6,084,096

Investment securities

 

25,148,673

 

 

25,653,616

 

 

26,553,317

Loans

 

35,064,971

 

 

34,029,313

 

 

32,077,769

Total assets

 

70,758,155

 

 

69,736,936

 

 

67,637,917

Deposits

 

63,618,243

 

 

63,337,600

 

 

61,227,227

Borrowings

 

1,078,332

 

 

1,097,720

 

 

1,400,319

Total liabilities

 

65,611,202

 

 

65,279,328

 

 

63,544,492

Stockholders’ equity

 

5,146,953

 

 

4,457,608

 

 

4,093,425

Total assets amounted to $70.8 billion at December 31, 2023, an increase of $1.0 billion from the third quarter of 2023, driven by:

  • an increase in loans held-in-portfolio of $1.0 billion driven by an increase of $748.4 million at BPPR, mainly in the commercial portfolio as well as in mortgage and consumer loans, and an increase of $287.3 million at PB mainly from commercial and construction loans; and
  • a net increase in cash and money market investments of $494.6 million due to higher deposits and repayments from the investment portfolio;

partially offset by:

  • a decrease in securities available-for-sale (“AFS”) of $400.8 million, mainly due to repayments and maturities, offset in part by favorable changes in the fair value of debt securities; and
  • a decrease in securities held-to-maturity (“HTM”) of $107.5 million driven by maturities of U.S. Treasury securities, partially offset by the amortization of $44.2 million of the discount related to U.S. Treasury securities previously reclassified from the AFS to HTM, which has an offsetting unrealized loss included within other comprehensive income that is also being accreted, resulting in a neutral effect to earnings.

Total liabilities increased by $331.9 million from the third quarter of 2023, driven by:

  • an increase of $280.6 million in deposits, mainly in time deposits and savings accounts at PB and demand deposits and P.R. public sector accounts at BPPR, partially offset by a decrease in savings accounts at BPPR; and
  • an increase of $70.6 million in other liabilities mainly due to the $71.4 million FDIC Special Assessment recognized during the fourth quarter.

Stockholders' equity increased by $689.3 million from the third quarter of 2023, mainly due to the after-tax impact of the decrease in net unrealized losses in the portfolio of AFS securities of $593.2 million, the net income for the quarter of $94.6 million and the amortization of unrealized losses from securities previously reclassified to HTM of $35.3 million, net of taxes, partially offset by common and preferred dividends declared during the quarter.

Common Equity Tier 1 ratio (“CET1”), common equity per share and tangible book value per share were 16.30%, $71.03 and $59.74, respectively, at December 31, 2023, compared to 16.81%, $61.49 and $50.20, respectively, at September 30, 2023. Refer to Table A for capital ratios.

Refer to Table C for the Statements of Financial Condition.

Cautionary Note Regarding Forward-Looking Statements

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

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

About Popular, Inc.

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

Conference Call

Popular will hold a conference call to discuss its financial results today, Thursday, January 25, 2024 at 10:00 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-833-470-1428 (Toll Free) or 1-404-975-4839 (Local). The dial-in access code is 803461.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Friday, February 23, 2024. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 212082.

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 2023 Earnings Release

 

Table A - Selected Ratios and Other Information

 

Table B - Consolidated Statement of Operations

 

Table C - Consolidated Statement of Financial Condition

 

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

 

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

 

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

 

Table G - Mortgage Banking Activities and Other Service Fees

 

Table H - Loans and Deposits

 

Table I - Loan Delinquency - BPPR Operations

 

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

 

Table K - Loan Delinquency - Consolidated

 

Table L - Non-Performing Assets

 

Table M - Activity in Non-Performing Loans

 

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

 

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

 

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

 

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

 

Table R - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

 

 

 

 

 

Quarters ended

Years ended

 

31-Dec-23

30-Sep-23

31-Dec-22

31-Dec-23

31-Dec-22

Basic EPS

$

1.31

 

$

1.90

 

$

3.56

 

$

7.53

 

$

14.65

 

Diluted EPS

$

1.31

 

$

1.90

 

$

3.56

 

$

7.52

 

$

14.63

 

Average common shares outstanding

 

71,810,073

 

 

71,794,934

 

 

72,101,177

 

 

71,710,265

 

 

75,147,263

 

Average common shares outstanding - assuming dilution

 

71,881,020

 

 

71,818,102

 

 

72,192,680

 

 

71,791,692

 

 

75,274,003

 

Common shares outstanding at end of period

 

72,153,621

 

 

72,127,595

 

 

71,853,720

 

 

72,153,621

 

 

71,853,720

 

Market value per common share

$

82.07

 

$

63.01

 

$

66.32

 

$

82.07

 

$

66.32

 

Market capitalization - (In millions)

$

5,922

 

$

4,545

 

$

4,765

 

$

5,922

 

$

4,765

 

Return on average assets

 

0.52

%

 

0.75

%

 

1.44

%

 

0.76

%

 

1.51

%

Return on average common equity

 

5.55

%

 

8.17

%

 

16.59

%

 

8.21

%

 

18.39

%

Net interest margin (non-taxable equivalent basis)

 

3.08

%

 

3.07

%

 

3.28

%

 

3.13

%

 

3.11

%

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

 

3.26

%

 

3.24

%

 

3.64

%

 

3.31

%

 

3.46

%

Common equity per share

$

71.03

 

$

61.49

 

$

56.66

 

$

71.03

 

$

56.66

 

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

$

59.74

 

$

50.20

 

$

44.97

 

$

59.74

 

$

44.97

 

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

 

6.16

%

 

5.25

%

 

4.84

%

 

6.16

%

 

4.84

%

Return on average tangible common equity [1]

 

6.32

%

 

9.36

%

 

19.23

%

 

9.40

%

 

21.13

%

Tier 1 capital

 

16.36

%

 

16.88

%

 

16.45

%

 

16.36

%

 

16.45

%

Total capital

 

18.13

%

 

18.67

%

 

18.26

%

 

18.13

%

 

18.26

%

Tier 1 leverage

 

8.51

%

 

8.41

%

 

8.06

%

 

8.51

%

 

8.06

%

Common Equity Tier 1 capital

 

16.30

%

 

16.81

%

 

16.39

%

 

16.30

%

 

16.39

%

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

POPULAR, INC.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

 

Quarters ended

Variance

Quarter ended

Variance

Years ended

 

 

 

Q4 2023

 

Q4 2023

 

 

(In thousands, except per share information)

31-Dec-23

30-Sep-23

vs. Q3 2023

31-Dec-22

vs. Q4 2022

31-Dec-23

31-Dec-22

Interest income:

 

 

 

 

 

 

 

Loans

$

623,438

 

$

596,886

 

$

26,552

 

$

522,042

 

$

101,396

 

$

2,331,654

 

$

1,876,166

 

Money market investments

 

100,840

 

 

99,286

 

 

1,554

 

 

50,908

 

 

49,932

 

 

366,625

 

 

118,080

 

Investment securities

 

143,214

 

 

148,614

 

 

(5,400

)

 

140,244

 

 

2,970

 

 

547,028

 

 

471,665

 

Total interest income

 

867,492

 

 

844,786

 

 

22,706

 

 

713,194

 

 

154,298

 

 

3,245,307

 

 

2,465,911

 

Interest expense:

 

 

 

 

 

 

 

Deposits

 

319,200

 

 

294,121

 

 

25,079

 

 

139,338

 

 

179,862

 

 

1,050,024

 

 

252,845

 

Short-term borrowings

 

1,342

 

 

1,478

 

 

(136

)

 

4,488

 

 

(3,146

)

 

7,329

 

 

5,737

 

Long-term debt

 

12,770

 

 

15,167

 

 

(2,397

)

 

9,802

 

 

2,968

 

 

56,430

 

 

39,970

 

Total interest expense

 

333,312

 

 

310,766

 

 

22,546

 

 

153,628

 

 

179,684

 

 

1,113,783

 

 

298,552

 

Net interest income

 

534,180

 

 

534,020

 

 

160

 

 

559,566

 

 

(25,386

)

 

2,131,524

 

 

2,167,359

 

Provision for credit losses

 

78,663

 

 

45,117

 

 

33,546

 

 

49,531

 

 

29,132

 

 

208,609

 

 

83,030

 

Net interest income after provision for credit losses

 

455,517

 

 

488,903

 

 

(33,386

)

 

510,035

 

 

(54,518

)

 

1,922,915

 

 

2,084,329

 

Service charges on deposit accounts

 

37,699

 

 

37,318

 

 

381

 

 

34,682

 

 

3,017

 

 

147,476

 

 

157,210

 

Other service fees

 

96,692

 

 

93,407

 

 

3,285

 

 

89,022

 

 

7,670

 

 

374,440

 

 

334,009

 

Mortgage banking activities

 

6,388

 

 

5,393

 

 

995

 

 

6,562

 

 

(174

)

 

21,497

 

 

42,450

 

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

 

2,317

 

 

(1,319

)

 

3,636

 

 

317

 

 

2,000

 

 

3,482

 

 

(7,334

)

Net gain (loss) on trading account debt securities

 

750

 

 

219

 

 

531

 

 

162

 

 

588

 

 

1,382

 

 

(784

)

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

 

(71

)

 

(44

)

 

(27

)

 

-

 

 

(71

)

 

(115

)

 

-

 

Adjustments to indemnity reserves on loans sold

 

2,350

 

 

(187

)

 

2,537

 

 

(221

)

 

2,571

 

 

2,319

 

 

919

 

Other operating income

 

22,618

 

 

24,762

 

 

(2,144

)

 

27,941

 

 

(5,323

)

 

100,243

 

 

370,592

 

Total non-interest income

 

168,743

 

 

159,549

 

 

9,194

 

 

158,465

 

 

10,278

 

 

650,724

 

 

897,062

 

Operating expenses:

 

 

 

 

 

 

 

Personnel costs

 

 

 

 

 

 

 

Salaries

 

127,809

 

 

127,832

 

 

(23

)

 

116,503

 

 

11,306

 

 

505,935

 

 

432,910

 

Commissions, incentives and other bonuses

 

26,632

 

 

27,670

 

 

(1,038

)

 

39,570

 

 

(12,938

)

 

112,657

 

 

155,889

 

Pension, postretirement and medical insurance

 

17,598

 

 

16,985

 

 

613

 

 

12,452

 

 

5,146

 

 

67,469

 

 

56,085

 

Other personnel costs, including payroll taxes

 

22,626

 

 

20,665

 

 

1,961

 

 

21,612

 

 

1,014

 

 

91,984

 

 

74,880

 

Total personnel costs

 

194,665

 

 

193,152

 

 

1,513

 

 

190,137

 

 

4,528

 

 

778,045

 

 

719,764

 

Net occupancy expenses

 

30,282

 

 

28,100

 

 

2,182

 

 

27,812

 

 

2,470

 

 

111,586

 

 

106,169

 

Equipment expenses

 

10,179

 

 

8,905

 

 

1,274

 

 

9,828

 

 

351

 

 

37,057

 

 

35,626

 

Other taxes

 

14,636

 

 

8,590

 

 

6,046

 

 

16,142

 

 

(1,506

)

 

55,926

 

 

63,603

 

Professional fees

 

39,065

 

 

38,514

 

 

551

 

 

49,159

 

 

(10,094

)

 

161,142

 

 

172,043

 

Technology and software expenses

 

76,772

 

 

72,930

 

 

3,842

 

 

78,264

 

 

(1,492

)

 

290,615

 

 

291,902

 

Processing and transactional services

 

 

 

 

 

 

 

Credit and debit cards

 

6,682

 

 

13,762

 

 

(7,080

)

 

10,278

 

 

(3,596

)

 

44,578

 

 

45,455

 

Other processing and transactional services

 

22,779

 

 

24,137

 

 

(1,358

)

 

22,509

 

 

270

 

 

93,492

 

 

81,690

 

Total processing and transactional services

 

29,461

 

 

37,899

 

 

(8,438

)

 

32,787

 

 

(3,326

)

 

138,070

 

 

127,145

 

Communications

 

4,181

 

 

4,220

 

 

(39

)

 

3,857

 

 

324

 

 

16,664

 

 

14,885

 

Business promotion

 

 

 

 

 

 

 

Rewards and customer loyalty programs

 

14,130

 

 

15,988

 

 

(1,858

)

 

13,538

 

 

592

 

 

59,092

 

 

51,832

 

Other business promotion

 

13,767

 

 

7,087

 

 

6,680

 

 

14,596

 

 

(829

)

 

35,834

 

 

37,086

 

Total business promotion

 

27,897

 

 

23,075

 

 

4,822

 

 

28,134

 

 

(237

)

 

94,926

 

 

88,918

 

FDIC deposit insurance

 

81,385

 

 

8,932

 

 

72,453

 

 

6,342

 

 

75,043

 

 

105,985

 

 

26,787

 

Other real estate owned (OREO) income

 

(5,178

)

 

(5,189

)

 

11

 

 

(9,180

)

 

4,002

 

 

(15,375

)

 

(22,143

)

Other operating expenses

 

 

 

 

 

 

 

Operational losses

 

6,921

 

 

5,504

 

 

1,417

 

 

9,018

 

 

(2,097

)

 

23,505

 

 

32,049

 

All other

 

20,084

 

 

17,557

 

 

2,527

 

 

18,614

 

 

1,470

 

 

73,774

 

 

77,397

 

Total other operating expenses

 

27,005

 

 

23,061

 

 

3,944

 

 

27,632

 

 

(627

)

 

97,279

 

 

109,446

 

Amortization of intangibles

 

795

 

 

795

 

 

-

 

 

794

 

 

1

 

 

3,180

 

 

3,275

 

Goodwill impairment charge

 

-

 

 

23,000

 

 

(23,000

)

 

-

 

 

-

 

 

23,000

 

 

9,000

 

Total operating expenses

 

531,145

 

 

465,984

 

 

65,161

 

 

461,708

 

 

69,437

 

 

1,898,100

 

 

1,746,420

 

Income before income tax

 

93,115

 

 

182,468

 

 

(89,353

)

 

206,792

 

 

(113,677

)

 

675,539

 

 

1,234,971

 

Income tax (benefit) expense

 

(1,479

)

 

45,859

 

 

(47,338

)

 

(50,347

)

 

48,868

 

 

134,197

 

 

132,330

 

Net income

$

94,594

 

$

136,609

 

$

(42,015

)

$

257,139

 

$

(162,545

)

$

541,342

 

$

1,102,641

 

Net income applicable to common stock

$

94,241

 

$

136,256

 

$

(42,015

)

$

256,786

 

$

(162,545

)

$

539,930

 

$

1,101,229

 

Net income per common share - basic

$

1.31

 

$

1.90

 

$

(0.59

)

$

3.56

 

$

(2.25

)

$

7.53

 

$

14.65

 

Net income per common share - diluted

$

1.31

 

$

1.90

 

$

(0.59

)

$

3.56

 

$

(2.25

)

$

7.52

 

$

14.63

 

Dividends Declared per Common Share

$

0.62

 

$

0.55

 

$

0.07

 

$

0.55

 

$

0.07

 

$

2.27

 

$

2.20

 

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

 

 

 

 

Variance

 

 

 

 

Q4 2023 vs.

(In thousands)

31-Dec-23

30-Sep-23

31-Dec-22

Q3 2023

Assets:

 

 

 

 

Cash and due from banks

$

420,462

 

$

535,335

 

$

469,501

 

$

(114,873

)

Money market investments

 

6,998,871

 

 

6,389,437

 

 

5,614,595

 

 

609,434

 

Trading account debt securities, at fair value

 

31,568

 

 

30,988

 

 

27,723

 

 

580

 

Debt securities available-for-sale, at fair value

 

16,729,044

 

 

17,129,858

 

 

17,804,374

 

 

(400,814

)

Debt securities held-to-maturity, at amortized cost

 

8,194,335

 

 

8,302,082

 

 

8,525,366

 

 

(107,747

)

Less: Allowance for credit losses

 

5,780

 

 

6,057

 

 

6,911

 

 

(277

)

Total debt securities held-to-maturity, net

 

8,188,555

 

 

8,296,025

 

 

8,518,455

 

 

(107,470

)

Equity securities

 

193,726

 

 

190,688

 

 

195,854

 

 

3,038

 

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

 

4,301

 

 

5,239

 

 

5,381

 

 

(938

)

Loans held-in-portfolio

 

35,420,879

 

 

34,369,775

 

 

32,372,925

 

 

1,051,104

 

Less: Unearned income

 

355,908

 

 

340,462

 

 

295,156

 

 

15,446

 

Allowance for credit losses

 

729,341

 

 

711,068

 

 

720,302

 

 

18,273

 

Total loans held-in-portfolio, net

 

34,335,630

 

 

33,318,245

 

 

31,357,467

 

 

1,017,385

 

Premises and equipment, net

 

565,284

 

 

534,384

 

 

498,711

 

 

30,900

 

Other real estate

 

80,416

 

 

82,322

 

 

89,126

 

 

(1,906

)

Accrued income receivable

 

263,433

 

 

257,833

 

 

240,195

 

 

5,600

 

Mortgage servicing rights, at fair value

 

118,109

 

 

119,030

 

 

128,350

 

 

(921

)

Other assets

 

2,014,564

 

 

2,032,565

 

 

1,847,813

 

 

(18,001

)

Goodwill

 

804,428

 

 

804,428

 

 

827,428

 

 

-

 

Other intangible assets

 

9,764

 

 

10,559

 

 

12,944

 

 

(795

)

Total assets

$

70,758,155

 

$

69,736,936

 

$

67,637,917

 

$

1,021,219

 

Liabilities and Stockholders’ Equity:

 

 

 

 

Liabilities:

 

 

 

 

Deposits:

 

 

 

 

Non-interest bearing

$

15,419,624

 

$

15,201,374

 

$

15,960,557

 

$

218,250

 

Interest bearing

 

48,198,619

 

 

48,136,226

 

 

45,266,670

 

 

62,393

 

Total deposits

 

63,618,243

 

 

63,337,600

 

 

61,227,227

 

 

280,643

 

Assets sold under agreements to repurchase

 

91,384

 

 

93,071

 

 

148,609

 

 

(1,687

)

Other short-term borrowings

 

-

 

 

-

 

 

365,000

 

 

-

 

Notes payable

 

986,948

 

 

1,004,649

 

 

886,710

 

 

(17,701

)

Other liabilities

 

914,627

 

 

844,008

 

 

916,946

 

 

70,619

 

Total liabilities

 

65,611,202

 

 

65,279,328

 

 

63,544,492

 

 

331,874

 

Stockholders’ equity:

 

 

 

 

Preferred stock

 

22,143

 

 

22,143

 

 

22,143

 

 

-

 

Common stock

 

1,048

 

 

1,048

 

 

1,047

 

 

-

 

Surplus

 

4,843,399

 

 

4,797,364

 

 

4,790,993

 

 

46,035

 

Retained earnings

 

4,194,851

 

 

4,189,865

 

 

3,834,348

 

 

4,986

 

Treasury stock

 

(2,018,957

)

 

(2,018,870

)

 

(2,030,178

)

 

(87

)

Accumulated other comprehensive loss, net of tax

 

(1,895,531

)

 

(2,533,942

)

 

(2,524,928

)

 

638,411

 

Total stockholders’ equity

 

5,146,953

 

 

4,457,608

 

 

4,093,425

 

 

689,345

 

Total liabilities and stockholders’ equity

$

70,758,155

 

$

69,736,936

 

$

67,637,917

 

$

1,021,219

 

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

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

For the quarters ended December 31, 2023 and September 30, 2023

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

 

Average Volume

 

Average Yields / Costs

 

 

 

Interest

 

Attributable to

 

31-Dec-23

 

30-Sep-23

Variance

 

31-Dec-23

 

30-Sep-23

 

Variance

 

 

 

 

31-Dec-23

 

30-Sep-23

 

Variance

 

Rate

 

Volume

 

(In millions)

 

 

 

 

 

 

 

 

 

(In thousands)

$

7,307

$

7,292

$

15

 

 

5.47

%

5.40

%

0.07

%

 

Money market investments

$

100,840

$

99,285

$

1,555

 

$

1,352

 

$

203

 

 

27,099

 

28,396

 

(1,297

)

 

2.28

 

2.31

 

(0.03

)

 

Investment securities [1]

 

155,118

 

165,319

 

(10,201

)

 

(2,704

)

 

(7,497

)

 

31

 

34

 

(3

)

 

3.72

 

4.43

 

(0.71

)

 

Trading securities

 

293

 

375

 

(82

)

 

(58

)

 

(24

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total money market,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

investment and trading

 

 

 

 

 

 

 

 

 

 

 

34,437

 

35,722

 

(1,285

)

 

2.96

 

2.95

 

0.01

 

 

 

securities

 

256,251

 

264,979

 

(8,728

)

 

(1,410

)

 

(7,318

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

17,251

 

16,611

 

640

 

 

6.71

 

6.64

 

0.07

 

 

 

Commercial

 

291,791

 

277,977

 

13,814

 

 

2,952

 

 

10,862

 

 

927

 

865

 

62

 

 

9.04

 

8.99

 

0.05

 

 

 

Construction

 

21,131

 

19,580

 

1,551

 

 

121

 

 

1,430

 

 

1,707

 

1,669

 

38

 

 

6.60

 

6.50

 

0.10

 

 

 

Leasing

 

28,174

 

27,142

 

1,032

 

 

408

 

 

624

 

 

7,626

 

7,504

 

122

 

 

5.83

 

5.42

 

0.41

 

 

 

Mortgage

 

111,215

 

101,700

 

9,515

 

 

7,844

 

 

1,671

 

 

3,215

 

3,147

 

68

 

 

13.43

 

13.39

 

0.04

 

 

 

Consumer

 

108,859

 

105,042

 

3,817

 

 

1,368

 

 

2,449

 

 

3,722

 

3,657

 

65

 

 

8.61

 

8.47

 

0.14

 

 

 

Auto

 

80,731

 

78,055

 

2,676

 

 

1,272

 

 

1,404

 

 

34,448

 

33,453

 

995

 

 

7.41

 

7.24

 

0.17

 

 

Total loans

 

641,901

 

609,496

 

32,405

 

 

13,965

 

 

18,440

 

$

68,885

$

69,175

$

(290

)

 

5.18

%

5.02

%

0.16

%

 

Total earning assets

$

898,152

$

874,475

$

23,677

 

$

12,555

 

$

11,122

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

$

25,027

$

25,652

$

(625

)

 

3.60

%

3.31

%

0.29

%

 

 

NOW and money market [2]

$

227,079

$

213,957

$

13,122

 

$

18,199

 

$

(5,077

)

 

14,934

 

14,875

 

59

 

 

0.85

 

0.73

 

0.12

 

 

 

Savings

 

32,073

 

27,373

 

4,700

 

 

3,852

 

 

848

 

 

8,288

 

7,986

 

302

 

 

2.87

 

2.62

 

0.25

 

 

 

Time deposits

 

60,048

 

52,791

 

7,257

 

 

4,676

 

 

2,581

 

 

48,249

 

48,513

 

(264

)

 

2.62

 

2.41

 

0.21

 

 

Total interest bearing deposits

 

319,200

 

294,121

 

25,079

 

 

26,727

 

 

(1,648

)

 

15,017

 

15,038

 

(21

)

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

 

 

 

 

 

 

 

 

 

63,266

 

63,551

 

(285

)

 

2.00

 

1.84

 

0.16

 

 

Total deposits

 

319,200

 

294,121

 

25,079

 

 

26,727

 

 

(1,648

)

 

94

 

108

 

(14

)

 

5.64

 

5.45

 

0.19

 

 

Short-term borrowings

 

1,342

 

1,478

 

(136

)

 

51

 

 

(187

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other medium and

 

 

 

 

 

 

 

 

 

 

 

1,018

 

1,172

 

(154

)

 

5.04

 

5.20

 

(0.16

)

 

 

long-term debt

 

12,770

 

15,167

 

(2,397

)

 

346

 

 

(2,743

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest bearing

 

 

 

 

 

 

 

 

 

 

 

49,361

 

49,793

 

(432

)

 

2.68

 

2.48

 

0.20

 

 

 

liabilities (excluding demand deposits)

 

333,312

 

310,766

 

22,546

 

 

27,124

 

 

(4,578

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,507

 

4,344

 

163

 

 

 

 

 

 

 

 

Other sources of funds

 

 

 

 

 

 

 

 

 

 

$

68,885

$

69,175

$

(290

)

 

1.92

%

1.78

%

0.14

%

 

Total source of funds

 

333,312

 

310,766

 

22,546

 

 

27,124

 

 

(4,578

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.26

%

3.24

%

0.02

%

 

 

income on a taxable equivalent basis (Non-GAAP)

 

564,840

 

563,709

 

1,131

 

$

(14,569

)

$

15,700

 

 

 

 

 

 

 

 

2.50

%

2.54

%

(0.04

)%

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent adjustment

 

30,660

 

29,689

 

971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin/ income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.08

%

3.07

%

0.01

%

 

 

non-taxable equivalent basis (GAAP)

$

534,180

 

$

534,020

$

160

 

 

 

 

 

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

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

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

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

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

For the quarters ended December 31, 2023 and December 31, 2022

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

 

Average Volume

 

Average Yields / Costs

 

 

 

Interest

 

Attributable to

 

31-Dec-23

 

31-Dec-22

Variance

 

31-Dec-23

 

31-Dec-22

 

Variance

 

 

 

 

31-Dec-23

 

31-Dec-22

 

Variance

 

Rate

 

Volume

 

(In millions)

 

 

 

 

 

 

 

 

 

(In thousands)

$

7,307

$

5,262

$

2,045

 

 

5.47

%

3.84

%

1.63

%

 

Money market investments

$

100,840

$

50,907

$

49,933

 

$

26,116

 

$

23,817

 

 

27,099

 

30,843

 

(3,744

)

 

2.28

 

2.44

 

(0.16

)

 

Investment securities [1]

 

155,118

 

189,190

 

(34,072

)

 

(11,762

)

 

(22,310

)

 

31

 

30

 

1

 

 

3.72

 

4.28

 

(0.56

)

 

Trading securities

 

293

 

325

 

(32

)

 

(44

)

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total money market,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

investment and trading

 

 

 

 

 

 

 

 

 

 

 

34,437

 

36,135

 

(1,698

)

 

2.96

 

2.65

 

0.31

 

 

 

securities

 

256,251

 

240,422

 

15,829

 

 

14,310

 

 

1,519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

17,251

 

15,503

 

1,748

 

 

6.71

 

6.01

 

0.70

 

 

 

Commercial

 

291,791

 

234,707

 

57,084

 

 

29,111

 

 

27,973

 

 

927

 

769

 

158

 

 

9.04

 

7.54

 

1.50

 

 

 

Construction

 

21,131

 

14,615

 

6,516

 

 

3,195

 

 

3,321

 

 

1,707

 

1,557

 

150

 

 

6.60

 

5.92

 

0.68

 

 

 

Leasing

 

28,174

 

23,049

 

5,125

 

 

2,777

 

 

2,348

 

 

7,626

 

7,346

 

280

 

 

5.83

 

5.38

 

0.45

 

 

 

Mortgage

 

111,215

 

98,880

 

12,335

 

 

8,475

 

 

3,860

 

 

3,215

 

2,961

 

254

 

 

13.43

 

12.26

 

1.17

 

 

 

Consumer

 

108,859

 

91,518

 

17,341

 

 

8,666

 

 

8,675

 

 

3,722

 

3,576

 

146

 

 

8.61

 

7.98

 

0.63

 

 

 

Auto

 

80,731

 

71,910

 

8,821

 

 

5,800

 

 

3,021

 

 

34,448

 

31,712

 

2,736

 

 

7.41

 

6.70

 

0.71

 

 

Total loans

 

641,901

 

534,679

 

107,222

 

 

58,024

 

 

49,198

 

$

68,885

$

67,847

$

1,038

 

 

5.18

%

4.54

%

0.64

%

 

Total earning assets

$

898,152

$

775,101

$

123,051

 

$

72,334

 

$

50,717

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

$

25,027

$

24,399

$

628

 

 

3.60

%

1.73

%

1.87

%

 

 

NOW and money market [2]

$

227,079

$

106,591

$

120,488

 

$

112,821

 

$

7,667

 

 

14,934

 

15,248

 

(314

)

 

0.85

 

0.29

 

0.56

 

 

 

Savings

 

32,073

 

10,971

 

21,102

 

 

20,942

 

 

160

 

 

8,288

 

6,675

 

1,613

 

 

2.87

 

1.29

 

1.58

 

 

 

Time deposits

 

60,048

 

21,776

 

38,272

 

 

28,320

 

 

9,952

 

 

48,249

 

46,322

 

1,927

 

 

2.62

 

1.19

 

1.43

 

 

Total interest bearing deposits

 

319,200

 

139,338

 

179,862

 

 

162,083

 

 

17,779

 

 

15,017

 

16,110

 

(1,093

)

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

 

 

 

 

 

 

 

 

 

63,266

 

62,432

 

834

 

 

2.00

 

0.89

 

1.11

 

 

Total deposits

 

319,200

 

139,338

 

179,862

 

 

162,083

 

 

17,779

 

 

94

 

450

 

(356

)

 

5.64

 

3.96

 

1.68

 

 

Short-term borrowings

 

1,342

 

4,488

 

(3,146

)

 

1,404

 

 

(4,550

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other medium and

 

 

 

 

 

 

 

 

 

 

 

1,018

 

913

 

105

 

 

5.04

 

4.30

 

0.74

 

 

 

long-term debt

 

12,770

 

9,802

 

2,968

 

 

1,293

 

 

1,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest bearing

 

 

 

 

 

 

 

 

 

 

 

49,361

 

47,685

 

1,676

 

 

2.68

 

1.28

 

1.40

 

 

 

liabilities (excluding demand deposits)

 

333,312

 

153,628

 

179,684

 

 

164,780

 

 

14,904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,507

 

4,052

 

455

 

 

 

 

 

 

 

 

Other sources of funds

 

 

 

 

 

 

 

 

 

 

$

68,885

$

67,847

$

1,038

 

 

1.92

%

0.90

%

1.02

%

 

Total source of funds

 

333,312

 

153,628

 

179,684

 

 

164,780

 

 

14,904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.26

%

3.64

%

(0.38

)%

 

 

income on a taxable equivalent basis (Non-GAAP)

 

564,840

 

621,473

 

(56,633

)

$

(92,446

)

$

35,813

 

 

 

 

 

 

 

 

2.50

%

3.26

%

(0.76

)%

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent adjustment

 

30,660

 

61,907

 

(31,247

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin/ income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.08

%

3.28

%

(0.20

)%

 

 

non-taxable equivalent basis (GAAP)

$

534,180

$

559,566

$

(25,386

)

 

 

 

 

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

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

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

Popular, Inc.

Financial Supplement to Fourth Quarter 2023 Earnings Release

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

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variance

 

Average Volume

 

Average Yields / Costs

 

 

 

Interest

 

Attributable to

 

31-Dec-23

 

31-Dec-22

Variance

 

31-Dec-23

 

31-Dec-22

 

Variance

 

 

 

 

 

31-Dec-23

 

31-Dec-22

 

Variance

 

Rate

 

Volume

 

(In millions)

 

 

 

 

 

 

 

 

 

 

(In thousands)

$

7,052

$

9,531

$

(2,479)

 

5.20

%

1.24

%

3.96

%

 

Money market investments

$

366,625

$

118,079

$

248,546

$

286,646

$

(38,100)

 

27,926

 

29,743

 

(1,817)

 

2.20

 

2.23

 

(0.03)

 

 

Investment securities [1]

 

615,758

 

664,278

 

(48,520)

 

(8,273)

 

(40,247)

 

32

 

51

 

(19)

 

4.32

 

5.94

 

(1.62)

 

 

Trading securities

 

1,376

 

3,049

 

(1,673)

 

(700)

 

(973)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total money market,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

investment and trading

 

 

 

 

 

 

 

 

 

 

 

35,010

 

39,325

 

(4,315)

 

2.81

 

2.00

 

0.81

 

 

 

securities

 

983,759

 

785,406

 

198,353

 

277,673

 

(79,320)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

16,469

 

14,562

 

1,907

 

6.55

 

5.46

 

1.09

 

 

 

Commercial

 

1,079,171

 

795,115

 

284,056

 

171,681

 

112,375

 

816

 

778

 

38

 

8.86

 

6.29

 

2.57

 

 

 

Construction

 

72,309

 

48,920

 

23,389

 

20,927

 

2,462

 

1,650

 

1,475

 

175

 

6.38

 

5.92

 

0.46

 

 

 

Leasing

 

105,309

 

87,274

 

18,035

 

7,203

 

10,832

 

7,482

 

7,322

 

160

 

5.55

 

5.34

 

0.21

 

 

 

Mortgage

 

414,992

 

391,133

 

23,859

 

15,212

 

8,647

 

3,115

 

2,743

 

372

 

13.19

 

11.66

 

1.53

 

 

 

Consumer

 

410,910

 

319,920

 

90,990

 

43,806

 

47,184

 

3,633

 

3,525

 

108

 

8.39

 

8.02

 

0.37

 

 

 

Auto

 

304,660

 

282,533

 

22,127

 

13,257

 

8,870

 

33,165

 

30,405

 

2,760

 

7.20

 

6.33

 

0.87

 

 

Total loans

 

2,387,351

 

1,924,895

 

462,456

 

272,086

 

190,370

$

68,175

$

69,730

$

(1,555)

 

4.94

%

3.89

%

1.05

%

 

Total earning assets

$

3,371,110

$

2,710,301

$

660,809

$

549,759

$

111,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

$

24,563

$

25,884

$

(1,321)

 

3.10

%

0.61

%

2.49

%

 

 

NOW and money market [2]

$

761,647

$

158,664

$

602,983

$

612,470

$

(9,487)

 

14,900

 

15,886

 

(986)

 

0.68

 

0.20

 

0.48

 

 

 

Savings

 

101,334

 

32,400

 

68,934

 

74,110

 

(5,176)

 

7,776

 

6,853

 

923

 

2.41

 

0.90

 

1.51

 

 

 

Time deposits

 

187,043

 

61,781

 

125,262

 

100,043

 

25,219

 

47,239

 

48,623

 

(1,384)

 

2.22

 

0.52

 

1.70

 

 

Total interest bearing deposits

 

1,050,024

 

252,845

 

797,179

 

786,623

 

10,556

 

15,307

 

16,094

 

(787)

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

 

 

 

 

 

 

 

 

 

62,546

 

64,717

 

(2,171)

 

1.68

 

0.39

 

1.29

 

 

Total deposits

 

1,050,024

 

252,845

 

797,179

 

786,623

 

10,556

 

143

 

206

 

(63)

 

5.12

 

2.78

 

2.34

 

 

Short-term borrowings

 

7,329

 

5,737

 

1,592

 

4,506

 

(2,914)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other medium and

 

 

 

 

 

 

 

 

 

 

 

1,109

 

939

 

170

 

5.09

 

4.26

 

0.83

 

 

 

long-term debt

 

56,430

 

39,970

 

16,460

 

9,458

 

7,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest bearing

 

 

 

 

 

 

 

 

 

 

 

48,491

 

49,768

 

(1,277)

 

2.30

 

0.60

 

1.70

 

 

 

liabilities (excluding demand deposits)

 

1,113,783

 

298,552

 

815,231

 

800,587

 

14,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,377

 

3,868

 

509

 

 

 

 

 

 

 

 

Other sources of funds

 

 

 

 

 

 

 

 

 

 

$

68,175

$

69,730

$

(1,555)

 

1.63

%

0.43

%

1.20

%

 

Total source of funds

 

1,113,783

 

298,552

 

815,231

 

800,587

 

14,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.31

%

3.46

%

(0.15)

%

 

 

income on a taxable equivalent basis (Non-GAAP)

 

2,257,327

 

2,411,749

 

(154,422)

$

(250,828)

$

96,406

 

 

 

 

 

 

 

2.64

%

3.29

%

(0.65)

%

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent adjustment

 

125,803

 

244,390

 

(118,587)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin/ income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.13

%

3.11

%

0.02

%

 

 

non-taxable equivalent basis (GAAP)

$

2,131,524

$

2,167,359

$

(35,835)

 

 

 

 

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

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

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

Popular, Inc.

 

 

 

 

 

 

 

 

Financial Supplement to Fourth Quarter 2023 Earnings Release

 

 

 

 

Table G - Mortgage Banking Activities and Other Service Fees

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Banking Activities

 

 

 

 

 

 

 

 

 

Quarters ended

Variance

Years ended

Variance

(In thousands)

31-Dec-23

30-Sep-23

31-Dec-22

Q4 2023 vs.Q3 2023

Q4 2023 vs.Q4 2022

31-Dec-23

31-Dec-22

2023 vs. 2022

Mortgage servicing fees, net of fair value adjustments:

 

 

 

 

 

 

 

 

Mortgage servicing fees

$

7,898

 

$

8,025

 

$

8,852

 

$

(127

)

$

(954

)

$

32,981

 

$

36,487

 

$

(3,506

)

Mortgage servicing rights fair value adjustments

 

(1,204

)

 

(2,793

)

 

(2,610

)

 

1,589

 

 

1,406

 

 

(11,589

)

 

236

 

 

(11,825

)

Total mortgage servicing fees, net of fair value adjustments

 

6,694

 

 

5,232

 

 

6,242

 

 

1,462

 

 

452

 

 

21,392

 

 

36,723

 

 

(15,331

)

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

 

45

 

 

(335

)

 

123

 

 

380

 

 

(78

)

 

(88

)

 

(251

)

 

163

 

Trading account (loss) profit:

 

 

 

 

 

 

 

 

Unrealized (loss) gains on outstanding derivative positions

 

(298

)

 

45

 

 

-

 

 

(343

)

 

(298

)

 

(138

)

 

-

 

 

(138

)

Realized (losses) gains on closed derivative positions

 

(47

)

 

494

 

 

310

 

 

(541

)

 

(357

)

 

614

 

 

6,635

 

 

(6,021

)

Total trading account (loss) profit

 

(345

)

 

539

 

 

310

 

 

(884

)

 

(655

)

 

476

 

 

6,635

 

 

(6,159

)

Losses on repurchased loans, including interest advances

 

(6

)

 

(43

)

 

(113

)

 

37

 

 

107

 

 

(283

)

 

(657

)

 

374

 

Total mortgage banking activities

$

6,388

 

$

5,393

 

$

6,562

 

$

995

 

$

(174

)

$

21,497

 

$

42,450

 

$

(20,953

)

 

 

 

 

 

 

 

 

 

 

Other Service Fees

 

 

 

 

 

 

 

 

 

 

Quarters ended

Variance

Years ended

Variance

(In thousands)

 

31-Dec-23

30-Sep-23

31-Dec-22

Q4 2023 vs.Q3 2023

Q4 2023 vs.Q4 2022

31-Dec-23

31-Dec-22

2023 vs. 2022

Other service fees:

 

 

 

 

 

 

 

 

 

Debit card fees

 

$

13,944

$

13,577

$

13,379

$

367

$

565

$

54,287

$

50,173

$

4,114

Insurance fees

 

 

16,739

 

14,983

 

14,587

 

1,756

 

2,152

 

60,220

 

56,457

 

3,763

Credit card fees

 

 

41,439

 

40,804

 

39,777

 

635

 

1,662

 

165,385

 

149,403

 

15,982

Sale and administration of investment products

 

 

6,862

 

6,820

 

5,793

 

42

 

1,069

 

26,316

 

23,553

 

2,763

Trust fees

 

 

6,716

 

6,381

 

5,223

 

335

 

1,493

 

25,472

 

22,799

 

2,673

Other fees

 

 

10,992

 

10,842

 

10,263

 

150

 

729

 

42,760

 

31,624

 

11,136

Total other service fees

 

$

96,692

$

93,407

$

89,022

$

3,285

$

7,670

$

374,440

$

334,009

$

40,431

Popular, Inc.

 

 

 

 

 

Financial Supplement to Fourth Quarter 2023 Earnings Release

Table H - Loans and Deposits

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Loans - Ending Balances

 

 

 

 

 

 

 

 

 

Variance

(In thousands)

31-Dec-23

30-Sep-23

31-Dec-22

Q4 2023 vs.Q3 2023

Q4 2023 vs.Q4 2022

Loans held-in-portfolio:

 

 

 

 

Commercial

 

 

 

 

 

Commercial multi-family

$

2,415,620

$

2,328,433

$

2,321,713

 

87,187

 

 

93,907

 

Commercial real estate non-owner occupied

 

5,087,421

 

5,035,130

 

4,499,670

 

52,291

 

 

587,751

 

Commercial real estate owner occupied

 

3,080,635

 

3,044,905

 

3,078,549

 

35,730

 

 

2,086

 

Commercial and industrial

 

7,126,121

 

6,527,082

 

5,839,200

 

599,039

 

 

1,286,921

 

Total Commercial

 

17,709,797

 

16,935,550

 

15,739,132

 

774,247

 

 

1,970,665

 

Construction

 

959,280

 

922,112

 

757,984

 

37,168

 

 

201,296

 

Leasing

 

1,731,809

 

1,698,114

 

1,585,739

 

33,695

 

 

146,070

 

Mortgage

 

7,695,917

 

7,585,111

 

7,397,471

 

110,806

 

 

298,446

 

Consumer

 

 

 

 

 

Credit cards

 

1,135,747

 

1,077,428

 

1,041,870

 

58,319

 

 

93,877

 

Home equity lines of credit

 

65,953

 

67,499

 

71,916

 

(1,546

)

 

(5,963

)

Personal

 

1,945,247

 

1,952,168

 

1,823,579

 

(6,921

)

 

121,668

 

Auto

 

3,660,780

 

3,633,196

 

3,512,530

 

27,584

 

 

148,250

 

Other

 

160,441

 

158,135

 

147,548

 

2,306

 

 

12,893

 

Total Consumer

 

6,968,168

 

6,888,426

 

6,597,443

 

79,742

 

 

370,725

 

Total loans held-in-portfolio

$

35,064,971

$

34,029,313

$

32,077,769

$

1,035,658

 

$

2,987,202

 

Loans held-for-sale:

 

 

 

 

 

Mortgage

$

4,301

$

5,239

$

5,381

$

(938

)

$

(1,080

)

Total loans held-for-sale

$

4,301

$

5,239

$

5,381

$

(938

)

$

(1,080

)

Total loans

$

35,069,272

$

34,034,552

$

32,083,150

$

1,034,720

 

$

2,986,122

 

 

 

 

 

 

 

Deposits - Ending Balances

 

 

 

 

 

 

 

 

Variance

(In thousands)

31-Dec-23

30-Sep-23

31-Dec-22

Q4 2023 vs. Q3 2023

Q4 2023 vs.Q4 2022

Demand deposits [1]

$

27,579,054

$

27,942,782

$

26,382,605

$

(363,728

)

$

1,196,449

 

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

 

26,817,844

 

26,452,382

 

27,265,156

 

365,462

 

 

(447,312

)

Savings, NOW and money market deposits (brokered)

 

719,453

 

734,479

 

798,064

 

(15,026

)

 

(78,611

)

Time deposits (non-brokered)

 

7,546,138

 

7,264,156

 

6,442,886

 

281,982

 

 

1,103,252

 

Time deposits (brokered CDs)

 

955,754

 

943,801

 

338,516

 

11,953

 

 

617,238

 

Total deposits

$

63,618,243

$

63,337,600

$

61,227,227

$

280,643

 

$

2,391,016

 

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

 

 

 

 

Popular, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Supplement to Fourth Quarter 2023 Earnings Release

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table I - Loan Delinquency -BPPR Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-Dec-23

BPPR

 

 

 

Past due

 

 

 

 

 

 

 

Past due 90 days or more

 

 

30-59

 

 

60-89

 

 

90 days

 

Total

 

 

 

 

 

 

Non-accrual

 

 

Accruing

(In thousands)

 

days

 

 

days

 

 

or more

 

past due

 

Current

 

Loans HIP

 

 

loans

 

loans

Commercial multi-family

 

$

524

 

 

$

-

 

 

$

1,991

 

 

$

2,515

 

 

$

289,427

 

 

$

291,942

 

 

 

$

1,991

 

 

$

-

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

5,510

 

 

 

77

 

 

 

8,745

 

 

 

14,332

 

 

 

2,990,922

 

 

 

3,005,254

 

 

 

 

8,745

 

 

 

-

 

Owner occupied

 

 

2,726

 

 

 

249

 

 

 

29,430

 

 

 

32,405

 

 

 

1,365,978

 

 

 

1,398,383

 

 

 

 

29,430

 

 

 

-

 

Commercial and industrial

 

 

6,998

 

 

 

3,352

 

 

 

36,210

 

 

 

46,560

 

 

 

4,749,666

 

 

 

4,796,226

 

 

 

 

32,826

 

 

 

3,384

 

Construction

 

 

-

 

 

 

-

 

 

 

6,378

 

 

 

6,378

 

 

 

163,479

 

 

 

169,857

 

 

 

 

6,378

 

 

 

-

 

Mortgage

 

 

260,897

 

 

 

114,282

 

 

 

416,528

 

 

 

791,707

 

 

 

5,600,117

 

 

 

6,391,824

 

 

 

 

175,106

 

 

 

241,422

 

Leasing

 

 

20,140

 

 

 

6,719

 

 

 

8,632

 

 

 

35,491

 

 

 

1,696,318

 

 

 

1,731,809

 

 

 

 

8,632

 

 

 

-

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit cards

 

 

13,243

 

 

 

9,912

 

 

 

23,281

 

 

 

46,436

 

 

 

1,089,292

 

 

 

1,135,728

 

 

 

 

-

 

 

 

23,281

 

Home equity lines of credit

 

 

230

 

 

 

-

 

 

 

26

 

 

 

256

 

 

 

2,392

 

 

 

2,648

 

 

 

 

-

 

 

 

26

 

Personal

 

 

19,065

 

 

 

14,611

 

 

 

19,031

 

 

 

52,707

 

 

 

1,723,603

 

 

 

1,776,310

 

 

 

 

19,031

 

 

 

-

 

Auto

 

 

100,061

 

 

 

27,443

 

 

 

45,615

 

 

 

173,119

 

 

 

3,487,661

 

 

 

3,660,780

 

 

 

 

45,615

 

 

 

-

 

Other

 

 

1,641

 

 

 

204

 

 

 

1,213

 

 

 

3,058

 

 

 

147,104

 

 

 

150,162

 

 

 

 

964

 

 

 

249

 

Total

 

$

431,035

 

 

$

176,849

 

 

$

597,080

 

 

$

1,204,964

 

 

$

23,305,959

 

 

$

24,510,923

 

 

 

$

328,718