Popular, Inc. Announces First Quarter 2021 Financial Results
Popular, Inc. (NASDAQ:BPOP) reported a net income of $262.6 million for Q1 2021, up from $176.3 million in Q4 2020. Key highlights include a $82.2 million reversal in provision for credit losses due to improving economic conditions, resulting in an allowance for credit losses of $800 million, or 2.75% of loans. The bank also recorded an increase in net interest income to $479.1 million and a net interest margin of 3.07%. Additionally, the quarterly common stock dividend was raised to $0.45, and common stock repurchases of up to $350 million are planned.
- Net income increased to $262.6 million from $176.3 million in previous quarter.
- Provision for credit losses saw a reversal of $82.2 million due to improved credit quality.
- Net interest income rose to $479.1 million, reflecting an increase in SBA PPP fees.
- Common stock dividend increased from $0.40 to $0.45 per share.
- Total deposits grew significantly, contributing to a $0.9 billion increase in total assets.
- Despite net income growth, overall stockholders' equity decreased by $131.1 million.
- Loan balances fell by $0.3 billion, primarily in commercial loans at BPPR.
- Non-performing loans still represent 2.4% of total loans held-in-portfolio.
Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of
Ignacio Alvarez, President and Chief Executive Officer, said: “We got off to a strong start in 2021, earning
Our colleagues continued to achieve impressive results under challenging circumstances. We experienced growth in our top line revenue, which benefited from PPP-related income and an increase in the value of our mortgage servicing rights. We also achieved record level of deposits and additional growth in active users of our digital platforms. Notwithstanding the demographic challenges we face in Puerto Rico, we added 12,000 new customers during the quarter. We also continue to support our small and middle market clients, approving close to 13,000 loans amounting to
I am especially proud of how we have partnered with local health authorities and community organizations by lending our facilities and personnel to help accelerate vaccination efforts in Puerto Rico. As the data has demonstrated, massive vaccination is key to controlling the virus, and we are encouraged by the pace of vaccination, particularly on the island. I am happy to report that
In alignment with our corporate values, we expanded our efforts to promote financial inclusion by making a
Earnings Highlights |
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(Unaudited) |
Quarters ended |
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(Dollars in thousands, except per share information) |
31-Mar-21 |
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31-Dec-20 |
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31-Mar-20 |
Net interest income |
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Provision (reversal) for credit losses |
(82,226) |
|
21,218 |
|
189,731 |
Net interest income after provision (reversal) for credit losses |
561,338 |
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450,398 |
|
283,364 |
Other non-interest income |
153,653 |
|
144,847 |
|
126,643 |
Operating expenses |
375,528 |
|
375,924 |
|
372,608 |
Income before income tax |
339,463 |
|
219,321 |
|
37,399 |
Income tax expense |
76,831 |
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43,045 |
|
3,097 |
Net income |
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Net income applicable to common stock |
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Net income per common share - Basic |
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Net income per common share - Diluted |
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Significant Events
Financial Highlights
For the first quarter of 2021, the Corporation recorded net income of
Capital Actions
On April 12, 2021, the Corporation announced the following capital actions:
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an increase in the Corporation’s quarterly common stock dividend from
$0.40 per share to$0.45 per share, commencing with the dividend payable in the third quarter of 2021, subject to the approval by the Corporation’s Board of Directors; and
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common stock repurchases of up to
$350 million during 2021.
The Corporation’s planned common stock repurchases may be executed in the open market or in privately negotiated transactions. The timing and exact amount of such repurchases will be subject to various factors, including market conditions and the Corporation’s capital position and financial performance.
Net interest income on a taxable equivalent basis – Non-GAAP financial measure
Net interest income, on a taxable equivalent basis, is presented with its different components in Table D for the quarters ended March 31, 2021 as compared with previous quarters. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.
Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.
Net interest income for the quarter ended March 31, 2021 was
The net interest margin increased 3 basis points to
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interest income from loans increased by
$5.0 million in the quarter due to the following main variances:
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Higher interest income from commercial loans by
$8.8 million mostly driven by the increase in SBA PPP interest income and fees of$11.6 million resulting mainly from the repayment of loans. These positive variances were partially offset by the impact of two fewer days in the quarter or$3.7 million ,
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consumer loans, including credit cards decreased
$93 million on average or$2.7 million in interest income,
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the combined balance of auto and lease financing increased
$118 million but income from the portfolio was impacted negatively by two fewer days in the quarter or$1.5 million .
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Higher interest income from commercial loans by
Changes in portfolio composition, including the above-mentioned changes, resulted in an increase in the total loan yield of 15 basis points when compared to the previous quarter. The Corporation recognized income of
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lower interest expense on deposits by
$3.2 million , or 3 basis points, due to lower interest cost at Popular Bank (“PB”)
The total net impact on net interest income of the two fewer days in this quarter when compared to the fourth quarter of 2020 is estimated at
The net interest income for the Banco Popular de Puerto Rico (“BPPR”) segment amounted to
Net interest income for PB was
Non-interest income
Non-interest income increased by
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higher income from mortgage banking activities by
$7.6 million mainly due to a favorable variance in fair value adjustments on mortgage servicing rights (“MSRs”) of$9.2 million principally due to a decrease in estimated prepayments driven by increases in interest rates and higher gains on closed derivative positions by$4.7 million ; partially offset by lower gains on securitization transactions by$6.0 million ; and
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higher other operating income by
$5.8 million mainly due to higher net earnings from the combined portfolio of investments under the equity method by$3.5 million and a higher gain on sale of daily auto rental units by$2.0 million ;
partially offset by:
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an unfavorable variance in adjustments to indemnity reserves on previously sold loans of
$2.9 million mainly due to higher provision expense related to loans previously sold with credit recourse.
Refer to Table B for further details.
Operating expenses
Operating expenses for the first quarter of 2021 totaled
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Lower net occupancy expense by
$16.8 million due to$19.0 million in costs related to the termination of real property leases associated with PB’s New York branch optimization initiative, including the impairment of the right-of-use assets during the fourth quarter of 2020;
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lower professional fees by
$4.1 million mainly due to lower advisory expenses by$4.9 million related to corporate initiatives; and
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lower business promotion expenses by
$3.9 million due to lower seasonal advertising expense by$2.7 million .
Partially offset by:
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Higher personnel cost by
$17.2 million due to$13.8 million in higher commission, incentives, and other bonuses, including higher performance shares and restricted stock expenses by$7.9 million ; and higher expense related to annual employee incentives tied to the Corporation’s financial performance by$7.4 million ; and
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higher other operating expenses by
$9.2 million mainly due to the reclassification, during the fourth quarter of 2020, of$10.0 million in provision for unfunded commitments from the other expenses line to the provision for credit losses, partially offset by$2.1 million in impairment losses on leasehold improvements associated with PB’s New York branch optimization initiative, also recorded in the fourth quarter of 2020.
Full-time equivalent employees were 8,469 as of March 31, 2021, compared to 8,522 as of December 31, 2020.
For a breakdown of operating expenses by category refer to Table B.
Income taxes
For the quarter ended March 31, 2021, the Corporation recorded an income tax expense of
Credit Quality
During the first quarter of 2021, the Corporation exhibited improved credit quality metrics and lower credit costs, driven by the improving economic environment, which reflects the impact of the unprecedented amounts of government stimulus in response to the COVID-19 pandemic. We will continue to closely monitor economic conditions, the effect of the pandemic on our loan portfolios and associated risks. However, management believes that the improvement over the last few years in the risk profile of the Corporation’s loan portfolios, along with the government stimulus, positions Popular to operate successfully under the current environment.
The following presents credit quality results for the first quarter of 2021:
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At March 31, 2021, total non-performing loans held-in-portfolio decreased by
$39.6 million from December 31, 2020. BPPR’s NPLs decreased by$34.4 million , driven by lower mortgage NPLs by$23.6 million , reflective of the resumption of consistent loan payments following the end of the COVID-19 moratorium period. Construction NPLs decreased by$6.6 million mostly due to a previously reserved loan that was partially charged-off during the quarter. PB’s NPLs decreased by$5.2 million mostly related to a commercial loan transferred to loans-held-for-sale. Excluding government guaranteed loans, at March 31, 2021, the Corporation had 122,216 loans with an aggregate book value of$6.8 billion that had completed their moratorium period, of which 114,900 loans, or94% , with an aggregate book value of$6.5 billion were current in their payments. At March 31, 2021, the ratio of NPLs to total loans held-in-portfolio was2.4% , compared to2.5% in the fourth quarter of 2020.
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Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by
$29.6 million quarter-over-quarter. In BPPR, total inflows decreased by$35.7 million driven by mortgage inflows decreasing by$32.0 million , as the prior quarter was impacted by an increase in mortgage inflow due to the delinquency progression at the expiration of the moratorium period. The NPL inflows at PB increased by$6.1 million during the quarter, mostly due to higher construction inflows related to a loan that reached 90 days past due during its renewal process. As of March 31, 2021, the loan was current.
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NCOs decreased by
$21.0 million from the fourth quarter of 2020. BPPR ‘s NCOs decreased by$21.7 million , primarily driven by lower commercial NCOs by$18.6 million , as the prior quarter included impairment charge-offs from previously reserved loans. Consumer NCOs decreased$12.5 million , mainly due to recoveries of$7.6 million related to the sale of previously fully charged-off loans during the first quarter of 2021. These decreases were partially offset by higher construction NCOs by$6.5 million related to a previously reserved loan that was partially charged-off during the quarter. During the first quarter of 2021, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was0.29% , compared to0.58% in the fourth quarter of 2020. Refer to Table M for further information on net charge-offs and related ratios.
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At March 31, 2021, the allowance for credit losses (“ACL”) reflected a decrease of
$95.5 million from the fourth quarter of 2020 to$800.8 million . The ACL incorporates an updated economic outlook for the United States and Puerto Rico. The updated economic outlook is more favorable than previous forecasts prompting substantial reductions in reserves across different portfolios. These decreases in reserve levels were partially offset with qualitative reserves aimed at addressing uncertainties in specific portfolios, mainly in U.S. commercial real estate. The allowance for the BPPR and PB segments decreased by$58.1 million and$37.4 million , respectively. The ratio of the allowance for credit losses to loans held-in-portfolio was2.75% in the first quarter of 2021, compared to3.05% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at114.7% , compared to121.5% in the previous quarter.
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Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The ACL is estimated by weighting the outputs of optimistic, baseline, and pessimistic scenarios. Among the three scenarios used to estimate the ACL, the baseline is assigned the highest probability, followed by the pessimistic scenario given the uncertainties in the economic outlook and downside risk. The current baseline scenario shows improvement in both 2021 GDP growth and unemployment when compared to previous estimates. The 2021 forecasted GDP growth is now at
4.9% for U.S. and3.4% for P.R., compared to4.1% and2.5% , respectively, in the previous 2021 forecast. Expectations for 2022 also present an improvement over the prior forecast. The U.S. and P.R. forecasted unemployment rate average for 2021 is now6.09% and7.98% , respectively. This is an improvement over the previous estimate of7.41% for the U.S. and8.34% for P.R.
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The provision for credit losses for the loans portfolios for the first quarter of 2021 decreased by
$86.6 million to a benefit of$75.8 million , amid improved macroeconomic outlook and lower NCOs for the quarter. The provision for the BPPR segment decreased by$64.7 million , while the provision for the PB segment decreased by$21.8 million .
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The provision for unfunded commitments for the first quarter of 2021 reflected a benefit of
$6.2 million , compared to$2.6 million provision expense during the previous quarter, driven by the improvements in macroeconomic outlook and credit quality metrics. During the fourth quarter of 2020, the Corporation reclassified$10.0 million of the expense for unfunded loan commitments from other operating expenses to the provision for credit loss caption for a total provision for unfunded commitments of$12.6 million for the period. The provision for credit losses in our investment portfolio was a benefit of$0.2 million , compared to a benefit of$2.2 million in the fourth quarter of 2020. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations.
Non-Performing Assets |
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(Unaudited) |
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(In thousands) |
31-Mar-21 |
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31-Dec-20 |
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31-Mar-20 |
Non-performing loans held-in-portfolio |
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Non-performing loans held-for-sale |
3,549 |
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2,738 |
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10,679 |
Other real estate owned (“OREO”) |
72,060 |
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83,146 |
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123,922 |
Total non-performing assets |
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Net charge-offs for the quarter |
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Ratios: |
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Loans held-in-portfolio |
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Non-performing loans held-in-portfolio to loans held-in-portfolio |
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Allowance for credit losses to loans held-in-portfolio |
2.75 |
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3.05 |
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3.32 |
Allowance for credit losses to non-performing loans, excluding loans held-for-sale |
114.70 |
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121.48 |
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119.65 |
Refer to Table K for additional information. |
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Provision (Reversal) for Credit Losses - Loan Portfolios |
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(Unaudited) |
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Quarters ended |
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(In thousands) |
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31-Mar-21 |
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31-Dec-20 |
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31-Mar-20 |
Provision (reversal) for credit losses - loan portfolios: |
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BPPR |
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Popular U.S. |
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(35,803) |
(13,971) |
75,991 |
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Total provision (reversal) for credit losses - loan portfolios |
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Credit Quality by Segment |
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(Unaudited) |
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(In thousands) |
Quarters ended |
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BPPR |
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31-Mar-21 |
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31-Dec-20 |
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31-Mar-20 |
Provision (reversal) for credit losses - loan portfolios |
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Net charge-offs |
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19,474 |
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41,217 |
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59,517 |
Total non-performing loans held-in-portfolio |
665,978 |
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700,377 |
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735,683 |
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Allowance / loans held-in-portfolio |
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Quarters ended |
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Popular U.S. |
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31-Mar-21 |
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31-Dec-20 |
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31-Mar-20 |
Provision (reversal) for credit losses - loan portfolios |
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Net charge-offs |
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1,556 |
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861 |
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3,006 |
Total non-performing loans held-in-portfolio |
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32,164 |
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37,397 |
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32,992 |
Allowance / loans held-in-portfolio |
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Financial Condition Highlights |
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(Unaudited) |
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(In thousands) |
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31-Mar-21 |
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31-Dec-20 |
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31-Mar-20 |
Cash and money market investments |
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Investment securities |
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23,076,488 |
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21,864,184 |
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16,114,167 |
Loans |
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29,131,628 |
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29,385,196 |
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27,662,272 |
Total assets |
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66,870,268 |
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65,926,000 |
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52,803,639 |
Deposits |
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58,742,801 |
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56,866,340 |
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44,797,176 |
Borrowings |
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1,311,064 |
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1,346,284 |
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1,336,897 |
Total liabilities |
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60,972,709 |
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59,897,313 |
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47,134,034 |
Stockholders’ equity |
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5,897,559 |
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6,028,687 |
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5,669,605 |
Total assets increased by
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an increase of
$1.2 billion in debt securities available-for-sale, mainly due to purchases of U.S. treasury securities and agency mortgage-backed securities, partially offset by paydowns and a decrease in unrealized gains of$0.4 billion in this portfolio;
partially offset by:
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a decrease of
$0.3 billion in loans held-in-portfolio, mainly in commercial loans at BPPR, in part due to the repayments of PPP loans.
Total liabilities increased by
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an increase of
$1.9 billion in deposits mainly due to higher private demand deposits by$1.6 billion at BPPR and PB and higher savings account deposits at BPPR by$0.3 billion ;
partially offset by:
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a decrease of
$0.8 billion in other liabilities, mainly due to the settlement of purchases of debt securities.
Stockholders’ equity decreased by approximately
Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include without limitation the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings (including as a result of any participation in and execution of government programs related to the COVID-19 pandemic), new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic, actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements.
More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2020, and in our Form 10-Q for the quarter ended March 31, 2021 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.
About Popular, Inc.
Popular, Inc. (NASDAQ: BPOP) is the leading financial institution in Puerto Rico, by both assets and deposits, and ranks among the top 50 U.S. bank holding companies by assets. Founded in 1893, Banco Popular de Puerto Rico, Popular’s principal subsidiary, provides retail, mortgage and commercial banking services in Puerto Rico and the U.S. Virgin Islands. Popular also offers in Puerto Rico auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the mainland United States, Popular provides retail, mortgage and commercial banking services through its New York-chartered banking subsidiary, Popular Bank, which has branches located in New York, New Jersey and Florida.
Conference Call
Popular will hold a conference call to discuss its financial results today Wednesday, April 28, 2021 at 11:00 a.m. Eastern Time. The call will be open to the public and broadcasted live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.
Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through the dial-in telephone number 1-866-235-1201 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, May 28, 2021. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10153733.
An electronic version of this press release can be found at the Corporation’s website: www.popular.com.
Popular, Inc. |
Financial Supplement to First Quarter 2021 Earnings Release |
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Table A - Selected Ratios and Other Information |
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Table B - Consolidated Statement of Operations |
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Table C - Consolidated Statement of Financial Condition |
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Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER |
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Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE [Left Blank] |
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Table F - Mortgage Banking Activities & Other Service Fees |
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Table G - Loans and Deposits |
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Table H - Loan Delinquency - PUERTO RICO OPERATIONS |
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Table I - Loan Delinquency - POPULAR U.S. OPERATIONS |
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Table J - Loan Delinquency - CONSOLIDATED |
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Table K - Non-Performing Assets |
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Table L - Activity in Non-Performing Loans |
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Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios |
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Table N - Allowance for Credit Losses - Loan Portfolios - CONSOLIDATED |
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Table O - Allowance for Credit Losses - Loan Portfolios - PUERTO RICO OPERATIONS |
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Table P - Allowance for Credit Losses - Loan Portfolios - POPULAR U.S. OPERATIONS |
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Table Q - Reconciliation to GAAP Financial Measures |
POPULAR, INC. |
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Financial Supplement to First Quarter 2021 Earnings Release |
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Table A - Selected Ratios and Other Information |
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(Unaudited) |
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Quarters ended |
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31-Mar-21 |
31-Dec-20 |
31-Mar-20 |
Basic EPS |
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Diluted EPS |
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Average common shares outstanding |
83,899,769 |
83,841,343 |
90,788,557 |
Average common shares outstanding - assuming dilution |
84,051,935 |
83,940,412 |
90,892,961 |
Common shares outstanding at end of period |
84,379,180 |
84,244,235 |
88,125,974 |
Market value per common share |
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Market capitalization - (In millions) |
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Return on average assets |
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Return on average common equity |
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Net interest margin (non-taxable equivalent basis) |
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Net interest margin (taxable equivalent basis) -non-GAAP |
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Common equity per share |
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Tangible common book value per common share (non-GAAP) [1] |
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Tangible common equity to tangible assets (non-GAAP) [1] |
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Return on average tangible common equity [1] |
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Tier 1 capital |
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Total capital |
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Tier 1 leverage |
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Common Equity Tier 1 capital |
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[1] Refer to Table Q for reconciliation to GAAP financial measures. |
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POPULAR, INC. |
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Financial Supplement to First Quarter 2021 Earnings Release |
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Table B - Consolidated Statement of Operations |
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(Unaudited) |
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Quarters ended |
Variance |
Quarter ended |
Variance |
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Q1 2021 |
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Q1 2021 |
(In thousands, except per share information) |
31-Mar-21 |
31-Dec-20 |
vs. Q4 2020 |
31-Mar-20 |
vs. Q1 2020 |
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Interest income: |
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Loans |
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Money market investments |
3,112 |
2,933 |
179 |
12,000 |
(8,888) |
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Investment securities |
85,690 |
85,502 |
188 |
87,912 |
(2,222) |
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Total interest income |
523,451 |
519,423 |
4,028 |
550,358 |
(26,907) |
Interest expense: |
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|
|
|
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Deposits |
30,201 |
33,420 |
(3,219) |
62,101 |
(31,900) |
|
Short-term borrowings |
143 |
348 |
(205) |
1,048 |
(905) |
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Long-term debt |
13,995 |
14,039 |
(44) |
14,114 |
(119) |
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Total interest expense |
44,339 |
47,807 |
(3,468) |
77,263 |
(32,924) |
Net interest income |
479,112 |
471,616 |
7,496 |
473,095 |
6,017 |
|
Provision (reversal) for credit losses |
(82,226) |
21,218 |
(103,444) |
189,731 |
(271,957) |
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Net interest income after provision (reversal) for credit losses |
561,338 |
450,398 |
110,940 |
283,364 |
277,974 |
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Service charges on deposit accounts |
39,620 |
39,152 |
468 |
41,659 |
(2,039) |
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Other service fees |
70,628 |
71,156 |
(528) |
64,773 |
5,855 |
|
Mortgage banking activities |
17,343 |
9,730 |
7,613 |
6,420 |
10,923 |
|
Net gain (loss), including impairment, on equity securities |
421 |
1,410 |
(989) |
(2,728) |
3,149 |
|
Net (loss) profit on trading account debt securities |
(45) |
440 |
(485) |
491 |
(536) |
|
Net gain on sale of loans, including valuation adjustments on loans held-for-sale |
- |
253 |
(253) |
957 |
(957) |
|
Adjustments (expense) to indemnity reserves on loans sold |
(698) |
2,160 |
(2,858) |
(4,793) |
4,095 |
|
Other operating income |
26,384 |
20,546 |
5,838 |
19,864 |
6,520 |
|
|
Total non-interest income |
153,653 |
144,847 |
8,806 |
126,643 |
27,010 |
Operating expenses: |
|
|
|
|
|
|
Personnel costs |
|
|
|
|
|
|
|
Salaries |
89,335 |
92,063 |
(2,728) |
92,256 |
(2,921) |
|
Commissions, incentives and other bonuses |
33,218 |
19,399 |
13,819 |
25,258 |
7,960 |
|
Pension, postretirement and medical insurance |
10,924 |
12,454 |
(1,530) |
9,638 |
1,286 |
|
Other personnel costs, including payroll taxes |
26,002 |
18,351 |
7,651 |
19,679 |
6,323 |
|
Total personnel costs |
159,479 |
142,267 |
17,212 |
146,831 |
12,648 |
Net occupancy expenses |
26,013 |
42,793 |
(16,780) |
25,158 |
855 |
|
Equipment expenses |
21,575 |
22,395 |
(820) |
21,605 |
(30) |
|
Other taxes |
13,959 |
13,532 |
427 |
13,681 |
278 |
|
Professional fees |
|
|
|
|
|
|
|
Collections, appraisals and other credit related fees |
3,320 |
2,948 |
372 |
3,881 |
(561) |
|
Programming, processing and other technology services |
66,366 |
66,483 |
(117) |
62,819 |
3,547 |
|
Legal fees, excluding collections |
2,365 |
2,734 |
(369) |
2,986 |
(621) |
|
Other professional fees |
27,897 |
31,865 |
(3,968) |
31,385 |
(3,488) |
|
Total professional fees |
99,948 |
104,030 |
(4,082) |
101,071 |
(1,123) |
Communications |
6,833 |
6,274 |
559 |
5,954 |
879 |
|
Business promotion |
12,521 |
16,466 |
(3,945) |
14,197 |
(1,676) |
|
FDIC deposit insurance |
5,968 |
6,880 |
(912) |
5,080 |
888 |
|
Other real estate owned (OREO) (income) expenses |
(4,533) |
(4,000) |
(533) |
2,479 |
(7,012) |
|
Credit and debit card processing, volume, interchange and other expenses |
12,454 |
13,209 |
(755) |
10,282 |
2,172 |
|
Other operating expenses |
|
|
|
|
|
|
|
Operational losses |
7,896 |
4,992 |
2,904 |
8,374 |
(478) |
|
All other |
12,364 |
6,034 |
6,330 |
15,423 |
(3,059) |
|
Total other operating expenses |
20,260 |
11,026 |
9,234 |
23,797 |
(3,537) |
Amortization of intangibles |
1,051 |
1,052 |
(1) |
2,473 |
(1,422) |
|
|
Total operating expenses |
375,528 |
375,924 |
(396) |
372,608 |
2,920 |
Income before income tax |
339,463 |
219,321 |
120,142 |
37,399 |
302,064 |
|
Income tax expense |
76,831 |
43,045 |
33,786 |
3,097 |
73,734 |
|
Net income |
|
|
|
|
|
|
Net income applicable to common stock |
|
|
|
|
|
|
Net income per common share - basic |
|
|
|
|
|
|
Net income per common share - diluted |
|
|
|
|
|
|
Dividends Declared per Common Share |
|
|
$- |
|
$- |
|
Popular, Inc. |
||||||
Financial Supplement to First Quarter 2021 Earnings Release |
||||||
Table C - Consolidated Statement of Financial Condition |
||||||
(Unaudited) |
||||||
|
|
|
|
|
|
Variance |
|
|
|
|
|
|
Q1 2021 vs. |
(In thousands) |
31-Mar-21 |
31-Dec-20 |
31-Mar-20 |
Q4 2020 |
||
Assets: |
|
|
|
|
||
Cash and due from banks |
|
|
|
|
||
Money market investments |
11,568,677 |
11,640,880 |
5,941,716 |
(72,203) |
||
Trading account debt securities, at fair value |
36,504 |
36,674 |
42,545 |
(170) |
||
Debt securities available-for-sale, at fair value |
22,771,609 |
21,561,152 |
15,813,301 |
1,210,457 |
||
Debt securities held-to-maturity, at amortized cost |
89,725 |
92,621 |
95,263 |
(2,896) |
||
|
|
Less: Allowance for credit losses |
10,096 |
10,261 |
13,390 |
(165) |
|
|
Total debt securities held-to-maturity, net |
79,629 |
82,360 |
81,873 |
(2,731) |
Equity securities |
178,650 |
173,737 |
163,058 |
4,913 |
||
Loans held-for-sale, at lower of cost or fair value |
84,214 |
99,455 |
87,855 |
(15,241) |
||
Loans held-in-portfolio |
29,344,620 |
29,588,430 |
27,847,840 |
(243,810) |
||
|
|
Less: Unearned income |
212,992 |
203,234 |
185,568 |
9,758 |
|
|
Allowance for credit losses |
800,797 |
896,250 |
919,716 |
(95,453) |
|
|
Total loans held-in-portfolio, net |
28,330,831 |
28,488,946 |
26,742,556 |
(158,115) |
Premises and equipment, net |
508,023 |
510,241 |
552,007 |
(2,218) |
||
Other real estate |
72,060 |
83,146 |
123,922 |
(11,086) |
||
Accrued income receivable |
215,993 |
209,320 |
176,078 |
6,673 |
||
Mortgage servicing rights, at fair value |
122,543 |
118,395 |
147,311 |
4,148 |
||
Other assets |
1,713,083 |
1,737,041 |
1,788,437 |
(23,958) |
||
Goodwill |
671,122 |
671,122 |
671,122 |
- |
||
Other intangible assets |
21,415 |
22,466 |
26,307 |
(1,051) |
||
Total assets |
|
|
|
|
||
Liabilities and Stockholders’ Equity: |
|
|
|
|
||
Liabilities: |
|
|
|
|
||
|
Deposits: |
|
|
|
|
|
|
|
Non-interest bearing |
|
|
|
|
|
|
Interest bearing |
44,479,253 |
43,737,641 |
35,400,727 |
741,612 |
|
|
Total deposits |
58,742,801 |
56,866,340 |
44,797,176 |
1,876,461 |
Assets sold under agreements to repurchase |
86,834 |
121,303 |
178,766 |
(34,469) |
||
Other short-term borrowings |
- |
- |
100,000 |
- |
||
Notes payable |
1,224,230 |
1,224,981 |
1,058,131 |
(751) |
||
Other liabilities |
918,844 |
1,684,689 |
999,961 |
(765,845) |
||
Total liabilities |
60,972,709 |
59,897,313 |
47,134,034 |
1,075,396 |
||
Stockholders’ equity: |
|
|
|
|
||
Preferred stock |
22,143 |
22,143 |
22,143 |
- |
||
Common stock |
1,045 |
1,045 |
1,044 |
- |
||
Surplus |
4,571,919 |
4,571,534 |
4,366,300 |
385 |
||
Retained earnings |
2,489,453 |
2,260,928 |
1,940,170 |
228,525 |
||
Treasury stock |
(1,012,263) |
(1,016,954) |
(870,675) |
4,691 |
||
Accumulated other comprehensive (loss) income, net of tax |
(174,738) |
189,991 |
210,623 |
(364,729) |
||
|
|
Total stockholders’ equity |
5,897,559 |
6,028,687 |
5,669,605 |
(131,128) |
Total liabilities and stockholders’ equity |
|
|
|
|
||
Popular, Inc. |
||||||||||||||||||||||
Financial Supplement to First Quarter 2021 Earnings Release |
||||||||||||||||||||||
Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER |
||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters ended |
|
Variance |
|
||||||||||||||||
|
|
|
31-Mar-21 |
|
31-Dec-20 |
|
31-Mar-20 |
|
Q1 2021 vs. Q4 2020 |
|
Q1 2021 vs. Q1 2020 |
|
||||||||||
($ amounts in millions) |
Average
|
Income /
|
Yield /
|
|
Average
|
Income /
|
Yield /
|
|
Average
|
Income /
|
Yield /
|
|
Average
|
Income /
|
Yield /
|
|
Average
|
Income /
|
Yield /
|
|
||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Money market, trading and investment securities |
|
|
1.52 |
% |
|
|
1.56 |
% |
|
|
2.63 |
% |
|
|
(0.04) |
% |
|
|
(1.11) |
% |
|
|
Loans: |
|||||||||||||||||||||
|
|
Commercial |
13,624 |
179.0 |
5.33 |
|
13,610 |
170.2 |
4.98 |
|
12,342 |
183.2 |
5.97 |
|
14 |
8.8 |
0.35 |
|
1,282 |
(4.2) |
(0.64) |
|
|
|
Construction |
911 |
11.9 |
5.30 |
|
928 |
12.8 |
5.48 |
|
861 |
13.2 |
6.16 |
|
(17) |
(0.9) |
(0.18) |
|
50 |
(1.3) |
(0.86) |
|
|
||||||||||||||||||||||
FAQ
What was Popular Inc's net income for the first quarter of 2021?
What is the stock symbol for Popular Inc.?
How much did Popular Inc. increase its quarterly dividend?
What is the provision for credit losses reported by Popular Inc.?
What was the net interest income for Popular Inc. in Q1 2021?
