We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Popular Inc | NASDAQ:BPOP | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.29 | 0.33% | 89.14 | 89.14 | 90.50 | 90.265 | 88.90 | 89.44 | 289,009 | 21:46:52 |
Popular, Inc. (the “Corporation” or “Popular”) (NASDAQ:BPOP) reported net income of $46.8 million for the quarter ended September 30, 2016, compared to net income of $89.0 million for the quarter ended June 30, 2016.
Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said: “The results for the third quarter reflect the strength of our franchise and disciplined approach to risk management. We achieved stable revenue and credit metrics notwithstanding the economic challenges in Puerto Rico and the low interest rate environment.”
Significant Events
As previously announced, on October 3, 2016 the review board issued a final arbitration award denying Banco Popular de Puerto Rico’s request for reimbursement of approximately $55 million in shared loss claims that were the subject of one of the disputes between Banco Popular de Puerto Rico (“BPPR”) and the Federal Deposit Insurance Corporation, as receiver, under the commercial loss share agreement entered into in connection with the Westernbank FDIC-assisted transaction. As a result, for the quarter ended September 30, 2016, Popular recognized a pre-tax charge of approximately $55 million and a corresponding reduction to its FDIC indemnification asset.
Earnings Highlights (Unaudited) Quarters ended Nine months ended (Dollars in thousands, except per share information) 30-Sep-16 30-Jun-16 30-Sep-15 30-Sep-16 30-Sep-15 Net interest income $353,687 $360,551 $350,735 $1,066,650 $1,056,483 Provision for loan losses 42,594 39,668 69,568 130,202 159,747 Provision (reversal) for loan losses - covered loans [1] 750 804 (2,890) (1,551) 23,200 Net interest income after provision for loan losses 310,343 320,079 284,057 937,999 873,536 FDIC loss-share (expense) income (61,723) (12,576) 1,207 (77,445) 24,421 Other non-interest income 137,701 123,079 129,902 375,556 362,682 Goodwill impairment charge 3,801 - - 3,801 - Other operating expenses 319,871 309,149 306,897 930,963 982,412 Income from continuing operations before income tax 62,649 121,433 108,269 301,346 278,227 Income tax expense (benefit) 15,839 32,446 22,620 80,550 (478,344) Income from continuing operations 46,810 88,987 85,649 220,796 756,571 (Loss) income from discontinued operations, net of tax - - (9) - 1,347 Net income $46,810 $88,987 $85,640 $220,796 $757,918 Net income applicable to common stock $45,880 $88,056 $84,709 $218,004 $755,126 Net income per common share from continuing operations - Basic $0.44 $0.85 $0.82 $2.11 $7.33 Net income per common share from continuing operations - Diluted $0.44 $0.85 $0.82 $2.11 $7.31 Net income per common share from discontinued operations - Basic $- $- $- $- $0.01 Net income per common share from discontinued operations - Diluted $- $- $- $- $0.01 [1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under an FDIC loss-sharing agreement.
Adjusted results – Non-GAAP
The Corporation prepared its Consolidated Financial Statement using accounting principles generally accepted in the U.S. (“U.S. GAAP” or the “reported basis”). In addition to analyzing the Corporation’s results on a reported basis, management monitors the “Adjusted net income” of the Corporation and excludes the impact of certain transactions on the results of its operations. Management believes that the “Adjusted net income” provides meaningful information about the underlying performance of the Corporation’s ongoing operations. The “Adjusted net income” is a non-GAAP financial measure.
The following tables reflect the results of operations for the third and second quarters of 2016, with adjustments to exclude the impact of certain events during the third and second quarters of 2016, to arrive at the adjusted net income.
Adjusted Net Income - Reconciliation to GAAP Financial Measures
(Unaudited) (In thousands) 30-Sep-16 Income tax Impact on Pre-tax effect net income U.S. GAAP Net Income $46,810 Non-GAAP Adjustments: FDIC arbitration award[1] 54,924 (10,985) 43,939 Goodwill impairment charge[2] 3,801 - 3,801 Adjusted net income (Non-GAAP) $94,550[1]Represents the arbitration decision denying BPPR's request for reimbursement in certain shared loss claims. Gains and losses related to assets acquired from Westernbank as part of the FDIC assisted transaction are subject to the capital gains tax rate of 20%.
[2]Represents goodwill impairment charge in the Corporation’s securities subsidiary. The securities subsidiary is a limited liability company with a partnership election. Accordingly, its earnings flow through Popular, Inc., holding company, for income tax purposes. Since Popular, Inc. has a full valuation allowance on its deferred tax assets, this results in an effective tax rate of 0%.
(Unaudited) (In thousands) 30-Jun-16 Income tax Impact on Pre-tax effect net income U.S. GAAP Net Income $88,987 Non-GAAP Adjustments: Impact of EVERTEC Restatement [1] 2,173 - 2,173 Bulk Sale of WB loans and OREO [2] (891) 347 (544) Adjusted Net Income (Non-GAAP) $90,616[1]Represents Popular Inc.'s proportionate share of the cumulative impact of EVERTEC restatement and other corrective adjustments to its financial statements, as disclosed in EVERTEC's 2015 Annual Report on Form 10K. Due to the preferential tax rate on the income from EVERTEC, the tax effect of this transaction was estimated at approximately $38 thousand.
[2]Represents the impact of the bulk sale of Westernbank loans and OREO. Gains and losses related to assets acquired from Westernbank as part of the FDIC assited transaction are subject to the capital gains tax rate of 20%.
Net interest income
Net interest income for the quarter ended September 30, 2016 was $353.7 million, compared to $360.6 million for the previous quarter. Net interest margin was 4.12% for the quarter compared to 4.33% for the previous quarter. The impact of having one more day in the quarter contributed $2.6 million to the net interest income.
The decrease in net interest income was mainly related to:
These negative variances were partially offset by:
BPPR’s net interest income amounted to $303.7 million for the quarter ended September 30, 2016, compared to $310.4 million for the previous quarter. The decrease of $6.7 million in net interest income was mainly due to lower income from WB loans by $8.9 million as mentioned above, partially offset by higher income from mortgage backed securities and the $2.1 million impact of having one more day in the quarter. Net interest margin declined to 4.49% from 4.71% in the previous quarter mainly driven by lower yields from WB loans, as explained above, and higher volume of overnight investments driven by the increase in Government deposits. Earning assets in P.R. yielded 4.86%, down from 5.08% in the previous quarter, while the cost of interest bearing liabilities remained flat from the previous quarter at 0.53%.
BPNA’s net interest income was $65.3 million, compared to $65.5 million for the previous quarter. The decrease of $0.2 million in the net interest income is mainly driven by higher expense from deposits to fund loan growth and the purchase and reinvestment of investment securities in a lower rate environment. These negative variances were partially offset by higher income from commercial loans due to the growth of this portfolio. Net interest margin decreased 19 basis points to 3.61% compared to 3.80% for the previous quarter driven by the above mentioned variances. U.S. earning assets yielded 4.32%, compared to 4.47% in the previous quarter, while the cost of interest bearing liabilities was 0.94%, compared to 0.87% in the previous quarter.
Non-interest income
Non-interest income was $76.0 million for the third quarter of 2016, a decrease of $34.5 million when compared to the second quarter of 2016. The decrease in non-interest income was driven primarily by higher FDIC loss-share expense by $49.1 million as a result of a $54.9 million charge related to the FDIC arbitration award, partially offset by lower recoveries on assets to be shared with the FDIC in the recovery period.
This decrease was partially offset by:
Refer to Table B for further details.
Financial Impact of the 2010 FDIC-Assisted Transaction (Unaudited) Quarters ended Nine months ended (In thousands) 30-Sep-16 30-Jun-16 30-Sep-15 30-Sep-16 30-Sep-15
Income Statement
Interest income on WB loans $40,867 $49,794 $47,982 $135,566 $160,909 Total FDIC loss-share (expense) income (61,723) (12,576) 1,207 (77,445) 24,421 Provision (reversal) for loan losses- WB loans 6,612 (7,282) 20,206 (1,026) 46,296 Total revenues less provision (reversal) for loan losses $(27,468) $44,500 $28,983 $59,147 $139,034Balance Sheet
WB loans $1,896,099 $1,932,062 $2,223,731 FDIC loss-share asset 152,467 214,029 311,946 FDIC true-up payment obligation 134,487 127,876 122,527See additional details on accounting for the 2010 FDIC-Assisted transaction in Table O.
Operating expenses
Operating expenses amounted to $323.7 million for the third quarter of 2016, an increase of $14.5 million when compared to the second quarter of 2016. The increase in operating expenses was driven primarily by:
These increases were partially offset by:
Non-personnel credit-related costs, which include collections, appraisals, credit related fees, and OREO expenses, amounted to $15.3 million for the third quarter of 2016, compared to $18.0 million for the second quarter of 2016. The decrease was principally due to lower losses on sales of OREO at BPPR.
Full-time equivalent employees were 7,866 as of September 30, 2016, compared to 7,826 as of June 30, 2016.
For a breakdown of operating expenses by category refer to table B.
Income taxes
For the quarter ended September 30, 2016, the Corporation recorded an income tax expense of $15.8 million, compared to $32.4 million for the previous quarter. The decline in the income tax expense is mainly driven by lower taxable income at BPPR. Additionally, in the third quarter BPPR recognized a $4.4 million benefit related to reversal of uncertain tax positions reserves associated with expired statutory provisions.
The effective income tax rate for the third quarter of 2016 was 25%, compared to 27% for the previous quarter. The effective tax rate is impacted by the composition and source of the taxable income.
Credit Quality
The Corporation continued to experience stable credit trends despite challenging economic conditions in Puerto Rico. The shift in the composition and the risk profile of the credit portfolios over the last few years has better positioned the Corporation to operate in the Island’s environment. The Corporation continues to closely monitor changes in credit quality trends and is focused on taking measures to minimize risks. The U.S. operation continued to reflect positive results with strong growth and favorable credit quality metrics.
Non-Performing Assets (Unaudited) (In thousands) 30-Sep-16 30-Jun-16 30-Sep-15 Total non-performing loans held-in-portfolio, excluding covered loans $579,325 $577,739 $634,902 Non-performing loans held-for-sale - 39,544 47,681 Other real estate owned (“OREO”), excluding covered OREO 184,828 177,025 155,826 Total non-performing assets, excluding covered assets 764,153 794,308 838,409 Covered loans and OREO 41,211 41,466 39,888 Total non-performing assets $805,364 $835,774 $878,297 Net charge-offs for the quarter (excluding covered loans) $35,140 $35,401 $46,302 Ratios (excluding covered loans): Non-covered loans held-in-portfolio $22,595,972 $22,540,661 $22,498,066 Non-performing loans held-in-portfolio to loans held-in-portfolio 2.56% 2.56% 2.82% Allowance for loan losses to loans held-in-portfolio 2.33 2.30 2.38 Allowance for loan losses to non-performing loans, excluding loans held-for-sale 90.73 89.68 84.42 Refer to Table H for additional information. Provision for Loan Losses (Unaudited) Quarters ended Nine months ended (In thousands) 30-Sep-16 30-Jun-16 30-Sep-15 30-Sep-16 30-Sep-15 Provision (reversal) for loan losses: BPPR $36,281 $38,351 $68,755 $118,503 $161,197 BPNA 6,313 1,317 813 11,699 (1,450) Total provision for loan losses- non-covered loans $42,594 $39,668 $69,568 $130,202 $159,747 Provision (reversal) for loan losses - covered loans 750 804 (2,890) (1,551) 23,200 Total provision for loan losses $43,344 $40,472 $66,678 $128,651 $182,947
Credit Quality by Segment (Unaudited) (In thousands) Quarters ended BPPR
30-Sep-16
30-Jun-16 30-Sep-15 Provision for loan losses $36,281 $38,351 $68,755 Net charge-offs 32,959 36,222 47,245 Total non-performing loans held-in-portfolio, excluding covered loans 551,238 550,632 609,469 Allowance / non-covered loans held-in-portfolio 2.80% 2.77% 2.83% Quarters ended BPNA 30-Sep-16 30-Jun-16 30-Sep-15 Provision for loan losses $6,313 $1,317 $813 Net charge-offs (recoveries) 2,181 (821) (943) Total non-performing loans held-in-portfolio 28,087 27,107 25,433 Allowance / non-covered loans held-in-portfolio 0.78% 0.72% 0.68% Financial Condition Highlights (Unaudited) (In thousands) 30-Sep-16 30-Jun-16 30-Sep-15 Money market, trading and investment securities $11,931,499 $10,368,794 $8,321,397 Loans not covered under loss-sharing agreements with the FDIC 22,595,972 22,540,661 22,498,066 Loans covered under loss-sharing agreements with the FDIC 588,211 607,170 665,428 Total assets 39,054,296 37,606,148 35,522,462 Deposits 30,327,045 28,737,856 26,713,206 Borrowings 2,364,984 2,428,752 2,753,144 Liabilities from discontinued operations 1,815 1,815 1,800 Total liabilities 33,673,901 32,246,317 30,472,826 Stockholders’ equity 5,380,395 5,359,831 5,049,636Total assets increased by $1.4 billion from the second quarter of 2016 driven by:
These positive variances were partially offset by a decrease of $61.6 million in the FDIC loss-share asset due mainly to the $54.9 million charge related to review board’s denial of BPPR’s claim in connection with arbitration proceedings with the FDIC.
Total liabilities increased by $1.4 billion from the first quarter of 2016, principally driven by:
Stockholders’ equity increased by approximately $20.6 million from the second quarter of 2016, mainly as a result of net income for the quarter of $46.8 million, partially offset by an unfavorable variance of $14.4 million in unrealized gains on securities available-for-sale, declared dividends of $15.6 million on common stock and $0.9 million in dividends on preferred stock.
Common equity tier-1 ratio (“CET1”), book value per share and tangible book value per share were 16.64%, $51.85 and $44.86, respectively at September 30, 2016 compared to 16.29%, $51.68 and $44.62 at June 30, 2016. Refer to Table A for capital ratios.
Forward-Looking Statements
The information contained in this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties. Please refer to our Annual Report on Form 10-K for the year ended December 31, 2015, the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016 and June 30, 2016, and our other filings with the Securities and Exchange Commission for a discussion of factors that may cause the Corporation's actual results to differ materially from any future results expressed or implied by such forward-looking statements. Those filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.SEC.gov). The Corporation does not undertake to update or revise any forward-looking statement to reflect events or circumstances that may arise after the date of such statements.
Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks among the top 50 U.S. banks by assets. Popular provides retail, mortgage and commercial banking services through its principal banking subsidiary, Banco Popular de Puerto Rico, as well as auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey and Florida under the name of Popular Community Bank.
An electronic version of this press release can be found at the Corporation’s website: www.popular.com.
Popular will hold a conference call to discuss the financial results today Tuesday, October 25, 2016 at 11:00 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed through the investor relations section of the Corporation’s website: www.popular.com.
Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-866-235-1201 or 1-412-902-4127.
A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Thursday, November 24, 2016. The replay dial in is 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10093046.
Popular, Inc. Financial Supplement to Third Quarter 2016 Earnings Release Table A - Selected Ratios and Other Information Table B - Consolidated Statement of Operations Table C - Consolidated Statement of Financial Condition Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE Table F - Mortgage Banking Activities and Other Service Fees Table G - Loans and Deposits Table H - Non-Performing Assets Table I - Activity in Non-Performing Loans Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS Table N - Reconciliation to GAAP Financial Measures Table O - Financial Information - Westernbank Loans
POPULAR, INC. Financial Supplement to Third Quarter 2016 Earnings Release Table A - Selected Ratios and Other Information (Unaudited) Quarters ended Nine months ended 30-Sep-16 30-Jun-16 30-Sep-15 30-Sep-16 30-Sep-15 Basic EPS from continuing operations $0.44 $0.85 $0.82 $2.11 $7.33 Basic EPS from discontinued operations $- $- $- $- $0.01 Total Basic EPS $0.44 $0.85 $0.82 $2.11 $7.34 Diluted EPS from continuing operations $0.44 $0.85 $0.82 $2.11 $7.31 Diluted EPS from discontinued operations $- $- $- $- $0.01 Total Diluted EPS $0.44 $0.85 $0.82 $2.11 $7.32 Average common shares outstanding 103,296,443 103,245,717 102,969,214 103,243,851 102,923,018 Average common shares outstanding - assuming dilution 103,465,385 103,343,486 103,150,482 103,383,949 103,137,762 Common shares outstanding at end of period 103,762,596 103,703,041 103,556,285 103,762,596 103,556,285 Market value per common share $38.22 $29.30 $30.23 $38.22 $30.23 Market capitalization - (In millions) $3,966 $3,038 $3,131 $3,966 $3,131 Return on average assets 0.49% 0.96% 0.95% 0.79% 2.89% . . Return on average common equity 3.46% 6.80% 6.79% 5.59% 22.29% Net interest margin 4.12% 4.33% 4.39% 4.29% 4.50% Common equity per share $51.37 $51.20 $48.28 $51.37 $48.28 Book value per share $51.85 $51.68 $48.76 $51.85 $48.76 Tangible common book value per common share (non-GAAP) $44.86 $44.62 $42.71 $44.86 $42.71 Tangible common equity to tangible assets (non-GAAP) 12.13% 12.53% 12.66% 12.13% 12.66% Tier 1 capital
16.64%
16.29% 16.21%16.64%
16.21% Total capital19.65%
19.29% 18.78%19.65%
18.78% Tier 1 leverage11.21%
11.29% 11.75%11.21%
11.75% Common Equity Tier 1 capital16.64%
16.29% 16.21%16.64%
16.21%POPULAR, INC. Financial Supplement to Third Quarter 2016 Earnings Release Table B - Consolidated Statement of Operations (Unaudited) Quarters ended Variance Quarter ended Variance Nine months ended
Q3 2016
Q3 2016
(In thousands, except per share information) 30-Sep-16 30-Jun-16vs. Q2 2016
30-Sep-15vs. Q3 2015
30-Sep-16 30-Sep-15 Interest income: Loans $363,550 $369,721 $(6,171) $364,458 $(908) $1,096,468 $1,094,222 Money market investments 4,568 3,889 679 2,003 2,565 11,320 5,294 Investment securities 37,732 36,725 1,007 31,671 6,061 110,728 93,269 Trading account securities 1,449 1,875 (426) 3,150 (1,701) 5,013 8,872 Total interest income 407,299 412,210 (4,911) 401,282 6,017 1,223,529 1,201,657 Interest expense: Deposits 32,362 30,599 1,763 28,357 4,005 92,835 80,479 Short-term borrowings 2,132 2,058 74 2,222 (90) 6,051 5,819 Long-term debt 19,118 19,002 116 19,968 (850) 57,993 58,876 Total interest expense 53,612 51,659 1,953 50,547 3,065 156,879 145,174 Net interest income 353,687 360,551 (6,864) 350,735 2,952 1,066,650 1,056,483 Provision for loan losses - non-covered loans 42,594 39,668 2,926 69,568 (26,974) 130,202 159,747 Provision (reversal) for loan losses - covered loans 750 804 (54) (2,890) 3,640 (1,551) 23,200 Net interest income after provision for loan losses 310,343 320,079 (9,736) 284,057 26,286 937,999 873,536 Service charges on deposit accounts 40,776 40,296 480 40,960 (184) 120,934 120,115 Other service fees 59,169 56,945 2,224 56,115 3,054 169,496 169,162 Mortgage banking activities 15,272 16,227 (955) 24,195 (8,923) 42,050 58,372 Net gain and valuation adjustments on investment securities 349 1,583 (1,234) 136 213 1,932 141 Other-than-temporary impairment losses on investment securities - (209) 209 - - (209) (14,445) Trading account (loss) profit (113) 1,117 (1,230) (398) 285 842 (3,092) Net gain on sale of loans, including valuation adjustments on loans held-for-sale 8,549 - 8,549 - 8,549 8,245 602 Adjustments (expense) to indemnity reserves on loans sold (4,390) (5,746) 1,356 (5,874) 1,484 (14,234) (9,981) FDIC loss-share (expense) income (61,723) (12,576) (49,147) 1,207 (62,930) (77,445) 24,421 Other operating income 18,089 12,866 5,223 14,768 3,321 46,500 41,808 Total non-interest income 75,978 110,503 (34,525) 131,109 (55,131) 298,111 387,103 Operating expenses: Personnel costs Salaries 77,770 75,792 1,978 78,193 (423) 230,860 227,040 Commissions, incentives and other bonuses 18,528 16,982 1,546 18,618 (90) 56,279 61,290 Pension, postretirement and medical insurance 13,413 12,279 1,134 12,578 835 38,803 33,666 Other personnel costs, including payroll taxes 11,513 11,655 (142) 11,474 39 39,081 36,302 Total personnel costs 121,224 116,708 4,516 120,863 361 365,023 358,298 Net occupancy expenses 21,626 21,714 (88) 21,277 349 63,770 66,272 Equipment expenses 15,922 15,261 661 14,739 1,183 45,731 44,075 Other taxes 11,324 10,170 1,154 9,951 1,373 31,689 29,638 Professional fees Collections, appraisals and other credit related fees 4,005 4,974 (969) 5,049 (1,044) 13,479 18,660 Programming, processing and other technology services 52,174 50,232 1,942 49,134 3,040 152,270 143,700 Legal fees, excluding collections 11,428 10,009 1,419 6,624 4,804 27,691 19,401 Other professional fees 13,659 15,410 (1,751) 16,347 (2,688) 43,910 49,370 Total professional fees 81,266 80,625 641 77,154 4,112 237,350 231,131 Communications 5,785 6,012 (227) 6,058 (273) 18,117 18,387 Business promotion 12,726 13,705 (979) 12,325 401 37,541 36,914 FDIC deposit insurance 5,854 5,362 492 7,300 (1,446) 18,586 22,240 Other real estate owned (OREO) expenses 11,295 12,980 (1,685) 7,686 3,609 33,416 75,571 Credit and debit card processing, volume, interchange and other expenses 3,640 6,617 (2,977) 6,449 (2,809) 15,979 17,032 Other operating expenses Operational losses 19,609 7,146 12,463 9,648 9,961 29,416 15,572 All other 6,503 9,752 (3,249) 9,454 (2,951) 25,037 41,377 Total other operating expenses 26,112 16,898 9,214 19,102 7,010 54,453 56,949 Amortization of intangibles 3,097 3,097 - 3,512 (415) 9,308 8,497 Goodwill impairment charge 3,801 - 3,801 - 3,801 3,801 - Restructuring costs - - - 481 (481) - 17,408 Total operating expenses 323,672 309,149 14,523 306,897 16,775 934,764 982,412 Income from continuing operations before income tax 62,649 121,433 (58,784) 108,269 (45,620) 301,346 278,227 Income tax expense (benefit) 15,839 32,446 (16,607) 22,620 (6,781) 80,550 (478,344) Income from continuing operations 46,810 88,987 (42,177) 85,649 (38,839) 220,796 756,571 (Loss) income from discontinued operations, net of tax - - - (9) 9 - 1,347 Net income $46,810 $88,987 $(42,177) $85,640 $(38,830) $220,796 $757,918 Net income applicable to common stock $45,880 $88,056 $(42,176) $84,709 $(38,829) $218,004 $755,126 Net income per common share - basic: Net income from continuing operations $0.44 $0.85 $(0.41) $0.82 $(0.38) $2.11 $7.33 Net income from discontinued operations - - - - - - 0.01 Net income per common share - basic $0.44 $0.85 $(0.41) $0.82 $(0.38) $2.11 $7.34 Net income per common share - diluted: Net income from continuing operations $0.44 $0.85 $(0.41) $0.82 $(0.38) $2.11 $7.31 Net income from discontinued operations - - - - - - 0.01 Net income per common share - diluted $0.44 $0.85 $(0.41) $0.82 $(0.38) $2.11 $7.32 Dividends Declared per Common Share $0.15 $0.15 $- $0.15 $- $0.45 $0.15Popular, Inc. Financial Supplement to Third Quarter 2016 Earnings Release Table C - Consolidated Statement of Financial Condition (Unaudited) Variance Q3 2016 vs. (In thousands) 30-Sep-16 30-Jun-16 30-Sep-15 Q2 2016 Assets: Cash and due from banks $350,545 $365,308 $320,555 $(14,763) Money market investments 3,963,495 2,785,500 2,408,571 1,177,995 Trading account securities, at fair value 72,584 72,530 137,943 54 Investment securities available-for-sale, at fair value 7,628,656 7,242,676 5,500,931 385,980 Investment securities held-to-maturity, at amortized cost 97,973 99,525 100,295 (1,552) Other investment securities, at lower of cost or realizable value 168,791 168,563 173,657 228 Loans held-for-sale, at lower of cost or fair value 72,076 122,338 171,019 (50,262) Loans held-in-portfolio: Loans not covered under loss-sharing agreements with the FDIC 22,714,358 22,655,877 22,601,271 58,481 Loans covered under loss-sharing agreements with the FDIC 588,211 607,170 665,428 (18,959) Less: Unearned income 118,386 115,216 103,205 3,170 Allowance for loan losses 555,855 548,720 570,514 7,135 Total loans held-in-portfolio, net 22,628,328 22,599,111 22,592,980 29,217 FDIC loss-share asset 152,467 214,029 311,946 (61,562) Premises and equipment, net 537,975 535,865 495,103 2,110 Other real estate not covered under loss-sharing agreements with the FDIC 184,828 177,025 155,826 7,803 Other real estate covered under loss-sharing agreements with the FDIC 37,414 37,984 35,701 (570) Accrued income receivable 119,691 120,979 118,044 (1,288) Mortgage servicing assets, at fair value 200,354 203,577 210,851 (3,223) Other assets 2,163,939 2,179,060 2,212,722 (15,121) Goodwill 627,294 631,095 504,925 (3,801) Other intangible assets 47,886 50,983 71,393 (3,097) Total assets $39,054,296 $37,606,148 $35,522,462 $1,448,148 Liabilities and Stockholders’ Equity: Liabilities: Deposits: Non-interest bearing $6,950,287 $6,531,108 $6,070,719 $419,179 Interest bearing 23,376,758 22,206,748 20,642,487 1,170,010 Total deposits 30,327,045 28,737,856 26,713,206 1,589,189 Federal funds purchased and assets sold under agreements to repurchase 765,251 821,604 1,085,765 (56,353) Other short-term borrowings 1,200 31,200 1,200 (30,000) Notes payable 1,598,533 1,575,948 1,666,179 22,585 Other liabilities 980,057 1,077,894 1,004,676 (97,837) Liabilities from discontinued operations 1,815 1,815 1,800 - Total liabilities 33,673,901 32,246,317 30,472,826 1,427,584 Stockholders’ equity: Preferred stock 50,160 50,160 50,160 - Common stock 1,040 1,039 1,037 1 Surplus 4,234,842 4,232,835 4,200,805 2,007 Retained earnings 1,259,295 1,228,979 993,309 30,316 Treasury stock (7,647) (7,570) (5,869) (77) Accumulated other comprehensive loss (157,295) (145,612) (189,806) (11,683) Total stockholders’ equity 5,380,395 5,359,831 5,049,636 20,564 Total liabilities and stockholders’ equity $39,054,296 $37,606,148 $35,522,462 $1,448,148
Popular, Inc. Financial Supplement to Third Quarter 2016 Earnings Release Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER (Unaudited) Quarter ended Quarter ended Quarter ended Variance Variance 30-Sep-16 30-Jun-16 30-Sep-15 Q3 2016 vs. Q2 2016 Q3 2016 vs. Q3 2015 ($ amounts in millions; yields not
on a taxable Average Income /
Yield /
Average Income /Yield /
Average Income /Yield /
Average Income /Yield /
Average Income /Yield /
equivalent basis) balance Expense Rate balance Expense Rate balance Expense Rate balance Expense Rate balance Expense Rate Assets: Interest earning assets: Money market, trading and investment securities $11,159 $43.7 1.57 % $10,286 $42.5 1.65 % $8,667 $36.8 1.70 % $873 $1.2 (0.08) % $2,492 $6.9 (0.13) % Loans not covered under loss-sharing agreements with the FDIC: Commercial 9,269 113.8 4.88 9,150 110.9 4.88 8,769 109.6 4.96 119 2.9 - 500 4.2 (0.08) Construction 739 10.1 5.44 723 9.7 5.43 681 10.8 6.30 16 0.4 0.01 58 (0.7) (0.86) Mortgage 6,637 88.3 5.32 6,743 88.9 5.27 7,072 88.8 5.02 (106) (0.6) 0.05 (435) (0.5) 0.30 Consumer 3,847 99.3 10.27 3,865 99.4 10.34 3,811 97.2 10.12 (18) (0.1) (0.07) 36 2.1 0.15 Lease financing 669 11.2 6.72 651 11.0 6.73 594 10.0 6.75 18 0.2 (0.01) 75 1.2 (0.03) Total loans (excluding WB loans) 21,161 322.7 6.08 21,132 319.9 6.08 20,927 316.4 6.02 29 2.8 - 234 6.3 0.06 WB loans 1,881 40.9 8.65 2,013 49.8 9.94 2,221 48.0 8.59 (132) (8.9) (1.29) (340) (7.1) 0.06 Total loans 23,042 363.6 6.29 23,145 369.7 6.41 23,148 364.4 6.26 (103) (6.1) (0.12) (106) (0.8) 0.03 Total interest earning assets 34,201 $407.3 4.75 % 33,431 $412.2 4.95 % 31,815 $401.2 5.02 % 770 ($4.9) (0.20) % 2,386 $6.1 (0.27) % Allowance for loan losses (553) (539) (559) (14) 6 Other non-interest earning assets 4,443 4,479 4,584 (36) (141) Total average assets $38,091 $37,371 $35,840 $720 $2,251 Liabilities and Stockholders' Equity: Interest bearing deposits: NOW and money market $7,326 $7.0 0.38 % $7,023 $6.6 0.38 % $5,742 $4.9 0.34 % $303 $0.4 - % $1,584 $2.1 0.04 % Savings 7,550 4.6 0.24 7,487 4.4 0.24 7,055 4.1 0.23 63 0.2 - 495 0.5 0.01 Time deposits 7,859 20.7 1.05 7,866 19.6 1.00 8,158 19.4 0.94 (7) 1.1 0.05 (299) 1.3 0.11 Total interest bearing deposits 22,735 32.3 0.57 22,376 30.6 0.55 20,955 28.4 0.54 359 1.7 0.02 1,780 3.9 0.03 Borrowings 2,398 21.3 3.55 2,307 21.0 3.67 2,861 22.1 3.09 91 0.3 (0.12)(463)
(0.8) 0.46 Total interest bearing liabilities 25,133 53.6 0.85 24,683 51.6 0.84 23,816 50.5 0.84 450 2.0 0.01 1,317 3.1 0.01 Net interest spread 3.90 % 4.11 % 4.18 % (0.21) % (0.28) % Non-interest bearing deposits 6,676 6,481 6,144 195 532 Other liabilities 955 943 876 12 79 Liabilities from discontinued operations 2 2 2 - - Stockholders' equity 5,325 5,262 5,002 63 323 Total average liabilities and stockholders' equity $38,091 $37,371 $35,840 $720 $2,251 Net interest income / margin non-taxable equivalent basis $353.7 4.12 % $360.6 4.33 % $350.7 4.39 % ($6.9) (0.21) % $3.0 (0.27) %Popular, Inc. Financial Supplement to Third Quarter 2016 Earnings Release Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE (Unaudited) Nine months ended Nine months ended 30-Sep-16 30-Sep-15 Variance Average Income / Yield / Average Income / Yield / Average Income / Yield / ($ amounts in millions; yields not on a taxable equivalent basis) balance Expense Rate balance Expense Rate balance Expense Rate Assets: Interest earning assets: Money market, trading and investment securities $10,136 $127.0 1.67 % $8,340 $107.4 1.72 % $1,796 $19.6 (0.05) % Loans not covered under loss-sharing agreements with the FDIC: Commercial 9,126 335.3 4.91 8,627 318.5 4.93 499 16.8 (0.02) Construction 722 29.1 5.39 600 27.1 6.05 122 2.0 (0.66) Mortgage 6,736 266.9 5.28 6,989 267.9 5.11 (253) (1.0) 0.17 Consumer 3,839 296.7 10.32 3,826 289.8 10.13 13 6.9 0.19 Lease financing 650 32.9 6.74 582 30.1 6.89 68 2.8 (0.15) Total loans (excluding WB loans) 21,073 960.9 6.09 20,624 933.4 6.05 449 27.5 0.04 WB loans 1,984 135.6 9.12 2,392 160.9 8.99 (408) (25.3) 0.13 Total loans 23,057 1,096.5 6.35 23,016 1,094.3 6.35 41 2.2 - Total interest earning assets 33,193 $1,223.5 4.92 % 31,356 $1,201.7 5.12 % 1,837 $21.8 (0.20) % Allowance for loan losses (542) (589) 47 Other non-interest earning assets 4,469 4,288 181 Total average assets $37,120 $35,055 $2,065 Liabilities and Stockholders' Equity: Interest bearing deposits: NOW and money market $6,689 $19.2 0.38 % $5,413 $14.0 0.35 % $1,276 $5.2 0.03 % Savings 7,438 13.3 0.24 6,996 12.1 0.23 442 1.2 0.01 Time deposits 7,928 60.3 1.02 8,146 54.4 0.89 (218) 5.9 0.13 Total interest bearing deposits 22,055 92.8 0.56 20,555 80.5 0.52 1,500 12.3 0.04 Borrowings 2,382 64.0 3.59 2,865 64.7 3.01 (483) (0.7) 0.58 Total interest bearing liabilities 24,437 156.8 0.86 23,420 145.2 0.83 1,017 11.6 0.03 Net interest spread 4.06 % 4.29 % (0.23) % Non-interest bearing deposits 6,484 6,113 371 Other liabilities 937 942 (5) Liabilities from discontinued operations 2 2 - Stockholders' equity 5,260 4,578 682 Total average liabilities and stockholders' equity $37,120 $35,055 $2,065 Net interest income / margin non-taxable equivalent basis $1,066.7 4.29 % $1,056.5 4.50 % $10.2 (0.21) %
Popular, Inc. Financial Supplement to Third Quarter 2016 Earnings Release Table F - Mortgage Banking Activities and Other Service Fees (Unaudited) Mortgage Banking Activities Variance Quarters ended Q3 2016 vs. Q3 2016 vs. Nine months ended Variance (In thousands) 30-Sep-16 30-Jun-16 30-Sep-15 Q2 2016 Q3 2015 30-Sep-16 30-Sep-15 2016 vs. 2015 Mortgage servicing fees, net of fair value adjustments: Mortgage servicing fees $14,520 $14,675 $17,020 $(155) $(2,500) $43,997 $43,957 $40 Mortgage servicing rights fair value adjustments (6,062) (4,340) 1,038 (1,722) (7,100) (18,879) (5,808) (13,071) Total mortgage servicing fees, net of fair value adjustments 8,458 10,335 18,058 (1,877) (9,600) 25,118 38,149 (13,031) Net gain on sale of loans, including valuation on loans held-for-sale 8,857 8,474 9,698 383 (841) 24,441 24,999 (558) Trading account (loss) profit: Unrealized (losses) gains on outstanding derivative positions 95 (59) (69) 154 164 (44) (10) (34) Realized (losses) gains on closed derivative positions (2,138) (2,523) (3,492) 385 1,354 (7,465) (4,766) (2,699) Total trading account (loss) profit (2,043) (2,582) (3,561) 539 1,518 (7,509) (4,776) (2,733) Total mortgage banking activities $15,272 $16,227 $24,195 $(955) $(8,923) $42,050 $58,372 $(16,322)
Other Service Fees Variance Quarters ended Q3 2016 vs. Q3 2016 vs. Nine months ended Variance (In thousands) 30-Sep-16 30-Jun-16 30-Sep-15 Q2 2016 Q3 2015 30-Sep-16 30-Sep-15 2016 vs. 2015 Other service fees: Debit card fees $11,483 $11,382 $11,288 $101 $195 $34,153 $34,408 $(255) Insurance fees 15,943 13,885 14,517 2,058 1,426 42,678 40,163 2,515 Credit card fees 17,644 17,700 16,879 (56) 765 52,202 50,639 1,563 Sale and administration of investment products 5,542 5,417 5,737 125 (195) 15,798 18,269 (2,471) Trust fees 4,968 4,827 4,403 141 565 14,029 13,919 110 Other fees 3,589 3,734 3,291 (145) 298 10,636 11,764 (1,128) Total other service fees $59,169 $56,945 $56,115 $2,224 $3,054 $169,496 $169,162 $334
Popular, Inc. Financial Supplement to Third Quarter 2016 Earnings Release Table G - Loans and Deposits (Unaudited) Loans - Ending Balances Variance Q3 2016 vs.
Q3 2016 vs.
(In thousands) 30-Sep-16 30-Jun-16 30-Sep-15 Q2 2016Q3 2015
Loans not covered under FDIC loss-sharing agreements: Commercial $10,537,191 $10,359,815 $10,130,424 $177,376 $406,767 Construction 731,352 717,332 692,492 14,020 38,860 Legacy [1] 47,914 49,709 67,974 (1,795) (20,060) Lease financing 682,810 664,094 606,927 18,716 75,883 Mortgage 6,774,497 6,864,118 7,165,479 (89,621) (390,982) Consumer 3,822,208 3,885,593 3,834,770 (63,385) (12,562) Total non-covered loans held-in-portfolio $22,595,972 $22,540,661 $22,498,066 $55,311 $97,906 Loans covered under FDIC loss-sharing agreements 588,211 607,170 665,428 (18,959) (77,217) Total loans held-in-portfolio $23,184,183 $23,147,831 $23,163,494 $36,352 $20,689 Loans held-for-sale: Commercial $- $39,544 $47,447 $(39,544) $(47,447) Construction - - 10 - (10) Mortgage 72,076 82,794 123,562 (10,718) (51,486) Total loans held-for-sale $72,076 $122,338 $171,019 $(50,262) $(98,943) Total loans $23,256,259 $23,270,169 $23,334,513 $(13,910) $(78,254) [1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment. Deposits - Ending Balances Variance Q3 2016 vs.Q3 2016 vs.
(In thousands) 30-Sep-16 30-Jun-16 30-Sep-15 Q2 2016Q3 2015
Demand deposits [1] $9,161,839 $8,106,291 $7,027,672 $1,055,548 $2,134,167 Savings, NOW and money market deposits (non-brokered) 12,872,072 12,289,793 11,178,357 582,279 1,693,715 Savings, NOW and money market deposits (brokered) 391,128 387,026 405,903 4,102 (14,775) Time deposits (non-brokered) 7,619,232 7,570,673 6,870,816 48,559 748,416 Time deposits (brokered CDs) 282,774 384,073 1,230,458 (101,299) (947,684) Total deposits $30,327,045 $28,737,856 $26,713,206 $1,589,189 $3,613,839 [1] Includes interest and non-interest bearing demand deposits.Popular, Inc. Financial Supplement to Third Quarter 2016 Earnings Release Table H - Non-Performing Assets (Unaudited) Variance As a % of As a % of As a % of
loans HIP by
loans HIP by
loans HIP by
Q3 2016 vs.
Q3 2016 vs.
(Dollars in thousands) 30-Sep-16 category 30-Jun-16 category 30-Sep-15 categoryQ2 2016
Q3 2015
Non-accrual loans: Commercial $170,571 1.6 % $175,615 1.7 % $239,397 2.4 % $(5,044) $(68,826) Construction - - 2,523 0.4 3,605 0.5 (2,523) (3,605) Legacy [1] 3,450 7.2 3,839 7.7 4,059 6.0 (389) (609) Lease financing 2,878 0.4 3,019 0.5 3,091 0.5 (141) (213) Mortgage 345,776 5.1 338,048 4.9 343,410 4.8 7,728 2,366 Consumer 56,650 1.5 54,695 1.4 41,340 1.1 1,955 15,310 Total non-performing loans held-in- portfolio, excluding covered loans 579,325 2.6 % 577,739 2.6 % 634,902 2.8 % 1,586 (55,577) Non-performing loans held-for-sale [2] - 39,544 47,681 (39,544) (47,681) Other real estate owned (“OREO”), excluding covered OREO 184,828 177,025 155,826 7,803 29,002 Total non-performing assets, excluding covered assets 764,153 794,308 838,409 (30,155) (74,256) Covered loans and OREO 41,211 41,466 39,888 (255) 1,323 Total non-performing assets $805,364 $835,774 $878,297 $(30,410) $(72,933) Accruing loans past due 90 days or more [3] $418,652 $413,319 $443,497 $5,333 $(24,845) Ratios excluding covered loans: Non-performing loans held-in-portfolio to loans held-in-portfolio 2.56 % 2.56 % 2.82 % Allowance for loan losses to loans held-in-portfolio 2.33 2.30 2.38 Allowance for loan losses to non-performing loans, excluding loans held-for-sale 90.73 89.68 84.42 Ratios including covered loans: Non-performing assets to total assets 2.06 % 2.22 % 2.47 % Non-performing loans held-in-portfolio to loans held-in-portfolio 2.52 2.51 2.76 Allowance for loan losses to loans held-in-portfolio 2.40 2.37 2.46 Allowance for loan losses to non-performing loans, excluding loans held-for-sale 95.32 94.41 89.97 [1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment. [2] There were no non-performing loans held-for-sale as of September 30, 2016 (June 30, 2016 - $40 million in commercial loans; September 30, 2015 - $47 million in commercial loans, $10 million in construction loans and $224 thousand in mortgage loans.)[3] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These balances include $174 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of September 30, 2016 (June 30, 2016 - $149 million; September 30, 2015 - $159 million). Furthermore, the Corporation has approximately $72 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (June 30, 2016 - $63 million; September 30, 2015 - $71 million).
Popular, Inc. Financial Supplement to Third Quarter 2016 Earnings Release Table I - Activity in Non-Performing Loans (Unaudited) Commercial loans held-in-portfolio: Quarter ended Quarter ended 30-Sep-16 30-Jun-16 (In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc. Beginning balance NPLs $172,584 $3,031 $175,615 $182,639 $14,992 $197,631 Plus: New non-performing loans 12,520 1,609 14,129 26,029 2,254 28,283 Advances on existing non-performing loans - 164 164 - 8 8 Reclassification from construction loans to commercial loans 2,436 - 2,436 - - - Less: Non-performing loans transferred to OREO (2,223) - (2,223) (1,815) - (1,815) Non-performing loans charged-off (7,918) (141) (8,059) (15,219) (254) (15,473) Loans returned to accrual status / loan collections (10,352) (1,139) (11,491) (19,050) (13,969) (33,019) Ending balance NPLs $167,047 $3,524 $170,571 $172,584 $3,031 $175,615 Construction loans held-in-portfolio: Quarter ended Quarter ended 30-Sep-16 30-Jun-16 (In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc. Beginning balance NPLs $2,423 $100 $2,523 $3,270 $671 $3,941 Plus: New non-performing loans 1,150 - 1,150 186 - 186 Less: Non-performing loans charged-off (985) - (985) (8) - (8) Loans returned to accrual status / loan collections (152) (100) (252) (1,025) (571) (1,596) Reclassification from construction loans to commercial loans (2,436) - (2,436) - - - Ending balance NPLs $- $- $- $2,423 $100 $2,523 Mortgage loans held-in-portfolio: Quarter ended Quarter ended 30-Sep-16 30-Jun-16 (In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc. Beginning balance NPLs $323,658 $14,390 $338,048 $322,838 $12,069 $334,907 Plus: New non-performing loans 87,340 6,715 94,055 79,688 6,532 86,220 Less: Non-performing loans transferred to OREO (14,398) (384) (14,782) (12,521) (445) (12,966) Non-performing loans charged-off (9,481) (1,994) (11,475) (10,648) (130) (10,778) Loans returned to accrual status / loan collections (55,773) (4,297) (60,070) (55,699) (3,636) (59,335) Ending balance NPLs $331,346 $14,430 $345,776 $323,658 $14,390 $338,048
Legacy loans held-in-portfolio: Quarter ended Quarter ended 30-Sep-16 30-Jun-16 (In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc. Beginning balance NPLs $- $3,839 $3,839 $- $4,046 $4,046 Plus: New non-performing loans - 45 45 - 552 552 Advances on existing non-performing loans - 135 135 - - - Less: Non-performing loans transferred to OREO - (44) (44) - - - Non-performing loans charged-off - (146) (146) - (54) (54) Loans returned to accrual status / loan collections - (379) (379) - (705) (705) Ending balance NPLs $- $3,450 $3,450 $- $3,839 $3,839 Total non-performing loans held-in-portfolio (excluding consumer and covered loans): Quarter ended Quarter ended 30-Sep-16 30-Jun-16 (In thousands) BPPR BPNA Popular, Inc. BPPR BPNA Popular, Inc. Beginning balance NPLs $498,665 $21,360 $520,025 $508,747 $31,778 $540,525 Plus: New non-performing loans 101,010 8,369 109,379 105,903 9,338 115,241 Advances on existing non-performing loans - 299 299 - 8 8 Reclassification from construction loans to commercial loans 2,436 - 2,436 - - - Less: Non-performing loans transferred to OREO (16,621) (428) (17,049) (14,336) (445) (14,781) Non-performing loans charged-off (18,384) (2,281) (20,665) (25,875) (438) (26,313) Loans returned to accrual status / loan collections (66,277) (5,915) (72,192) (75,774) (18,881) (94,655) Reclassification from construction loans to commercial loans (2,436) - (2,436) - - - Ending balance NPLs $498,393 $21,404 $519,797 $498,665 $21,360 $520,025
Popular, Inc. Financial Supplement to Third Quarter 2016 Earnings Release Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios (Unaudited) Quarter ended Quarter ended Quarter ended 30-Sep-16 30-Jun-16 30-Sep-15
Non-covered
Covered Non-covered CoveredNon-covered
Covered (Dollars in thousands) loans loans Total loans loans Total loans loans Total Balance at beginning of period $518,139 $30,581 $548,720 $508,427 $30,045 $538,472 $512,739 $38,074 $550,813 Provision (reversal of provision) for loan losses 42,594 750 43,344 39,668 804 40,472 69,568 (2,890) 66,678 560,733 31,331 592,064 548,095 30,849 578,944 582,307 35,184 617,491 Net loans charged-off (recovered): BPPR Commercial 3,199 - 3,199 5,647 - 5,647 9,172 - 9,172 Construction 886 - 886 (3,226) - (3,226) (2,648) - (2,648) Lease financing 816 - 816 434 - 434 894 - 894 Mortgage 15,237 661 15,898 13,464 699 14,163 15,524 601 16,125 Consumer 12,821 408 13,229 19,903 (431) 19,472 24,303 74 24,377 Total BPPR 32,959 1,069 34,028 36,222 268 36,490 47,245 675 47,920 BPNA Commercial (1,173) - (1,173) (1,265) - (1,265) (1,959) - (1,959) Legacy [1] (520) - (520) (893) - (893) (603) - (603) Mortgage 1,942 - 1,942 16 - 16 787 - 787 Consumer 1,932 - 1,932 1,321 - 1,321 832 - 832 Total BPNA 2,181 - 2,181 (821) - (821) (943) - (943) Total loans charged-off - Popular, Inc. 35,140 1,069 36,209 35,401 268 35,669 46,302 675 46,977 Net (write-downs) recoveries [2] - - - 5,445 - 5,445 - - - Balance at end of period $525,593 $30,262 $555,855 $518,139 $30,581 $548,720 $536,005 $34,509 $570,514 POPULAR, INC. Annualized net charge-offs to average loans held-in-portfolio 0.63 % 0.63 % 0.63 % 0.62 % 0.83 % 0.82 % Provision for loan losses to net charge-offs [3] 1.21 x 1.20 x 1.27 x 1.29 x 1.50 x 1.42 x BPPR Annualized net charge-offs to average loans held-in-portfolio 0.77 % 0.77 % 0.83 % 0.81 % 1.07 % 1.04 % Provision for loan losses to net charge-offs [3] 1.10 x 1.09 x 1.21 x 1.22 x 1.46 x 1.37 x BPNA Annualized net charge-offs (recoveries) to average loans held-in-portfolio 0.17 % (0.06) % (0.08) % Provision for loan losses to net charge-offs (recoveries) 2.89 (1.60) N.M. [1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment. [2] Net write-downs are related to loans sold or reclassified to held-for-sale. [3] Excluding provision for loan losses and net (write-downs) recoveries related to loans sold or reclassified to held-for-sale. N.M. - Not meaningful.Popular, Inc. Financial Supplement to Third Quarter 2016 Earnings Release Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED (Unaudited) 30-Sep-16 Lease (Dollars in thousands) Commercial Construction Legacy [2] Mortgage financing Consumer
Total [3]
Specific ALLL $58,527 $- $- $45,557 $540 $24,433 $129,057 Impaired loans [1] $328,868 $- $- $496,868 $1,899 $110,929 $938,564 Specific ALLL to impaired loans [1] 17.80 % - % - % 9.17 % 28.44 % 22.03 % 13.75 % General ALLL $165,639 $9,942 $1,682 $93,971 $7,375 $117,927 $396,536 Loans held-in-portfolio, excluding impaired loans [1] $10,208,312 $731,352 $47,914 $6,277,639 $680,911 $3,711,280 $21,657,408 General ALLL to loans held-in-portfolio, excluding impaired loans [1] 1.62 % 1.36 % 3.51 % 1.50 % 1.08 % 3.18 % 1.83 % Total ALLL $224,166 $9,942 $1,682 $139,528 $7,915 $142,360 $525,593 Total non-covered loans held-in-portfolio [1] $10,537,180 $731,352 $47,914 $6,774,507 $682,810 $3,822,209 $22,595,972 ALLL to loans held-in-portfolio [1] 2.13 % 1.36 % 3.51 % 2.06 % 1.16 % 3.72 % 2.33 % [1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. [2] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment. [3] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of September 30, 2016 the general allowance on the covered loans amounted to $30.3 million. 30-Jun-16 Lease (Dollars in thousands) Commercial Construction Legacy [2] Mortgage financing Consumer
Total [3]
Specific ALLL $53,350 $116 $- $43,909 $548 $24,898 $122,821 Impaired loans [1] $335,881 $1,036 $- $484,725 $2,110 $111,610 $935,362 Specific ALLL to impaired loans [1] 15.88 % 11.20 % - % 9.06 % 25.97 % 22.31 % 13.13 % General ALLL $156,331 $10,949 $1,852 $97,577 $9,546 $119,063 $395,318 Loans held-in-portfolio, excluding impaired loans [1] $10,023,934 $716,296 $49,709 $6,379,393 $661,984 $3,773,983 $21,605,299 General ALLL to loans held-in-portfolio, excluding impaired loans [1] 1.56 % 1.53 % 3.73 % 1.53 % 1.44 % 3.15 % 1.83 % Total ALLL $209,681 $11,065 $1,852 $141,486 $10,094 $143,961 $518,139 Total non-covered loans held-in-portfolio [1] $10,359,815 $717,332 $49,709 $6,864,118 $664,094 $3,885,593 $22,540,661 ALLL to loans held-in-portfolio [1] 2.02 % 1.54 % 3.73 % 2.06 % 1.52 % 3.70 % 2.30 % [1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. [2] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment. [3] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of June 30, 2016 the general allowance on the covered loans amounted to $30.6 million. Variance Lease (Dollars in thousands) Commercial Construction Legacy Mortgage financing Consumer Total Specific ALLL $5,177 $(116) $- $1,648 $(8) $(465) $6,236 Impaired loans $(7,013) $(1,036) $- $12,143 $(211) $(681) $3,202 General ALLL $9,308 $(1,007) $(170) $(3,606) $(2,171) $(1,136) $1,218 Loans held-in-portfolio, excluding impaired loans $184,378 $15,056 $(1,795) $(101,754) $18,927 $(62,703) $52,109 Total ALLL $14,485 $(1,123) $(170) $(1,958) $(2,179) $(1,601) $7,454 Total non-covered loans held-in-portfolio $177,365 $14,020 $(1,795) $(89,611) $18,716 $(63,384) $55,311
Popular, Inc. Financial Supplement to Third Quarter 2016 Earnings Release Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS (Unaudited) 30-Sep-16 Puerto Rico Lease (In thousands) Commercial Construction Mortgage financing Consumer Total Allowance for credit losses: Specific ALLL non-covered loans $58,527 $- $43,567 $540 $23,708 $126,342 General ALLL non-covered loans 151,847 2,114 91,761 7,375 104,604 357,701 ALLL - non-covered loans 210,374 2,114 135,328 7,915 128,312 484,043 Specific ALLL covered loans - - - - - - General ALLL covered loans - - 30,135 - 127 30,262 ALLL - covered loans - - 30,135 - 127 30,262 Total ALLL $210,374 $2,114 $165,463 $7,915 $128,439 $514,305 Loans held-in-portfolio: Impaired non-covered loans $328,868 $- $487,972 $1,899 $108,341 $927,080 Non-covered loans held-in-portfolio, excluding impaired loans 6,925,290 81,054 5,476,876 680,911 3,185,490 16,349,621 Non-covered loans held-in-portfolio 7,254,158 81,054 5,964,848 682,810 3,293,831 17,276,701 Impaired covered loans - - - - - - Covered loans held-in-portfolio, excluding impaired loans - - 571,349 - 16,862 588,211 Covered loans held-in-portfolio - - 571,349 - 16,862 588,211 Total loans held-in-portfolio $7,254,158 $81,054 $6,536,197 $682,810 $3,310,693 $17,864,912 30-Jun-16 Puerto Rico Lease (In thousands) Commercial Construction Mortgage financing Consumer Total Allowance for credit losses: Specific ALLL non-covered loans $53,350 $116 $42,106 $548 $24,167 $120,287 General ALLL non-covered loans 146,477 3,489 94,618 9,546 106,304 360,434 ALLL - non-covered loans 199,827 3,605 136,724 10,094 130,471 480,721 Specific ALLL covered loans - - - - - - General ALLL covered loans - - 29,951 - 630 30,581 ALLL - covered loans - - 29,951 - 630 30,581 Total ALLL $199,827 $3,605 $166,675 $10,094 $131,101 $511,302 Loans held-in-portfolio: Impaired non-covered loans $335,881 $1,036 $476,161 $2,110 $109,130 $924,318 Non-covered loans held-in-portfolio, excluding impaired loans 6,881,171 102,606 5,544,401 661,984 3,212,552 16,402,714 Non-covered loans held-in-portfolio 7,217,052 103,642 6,020,562 664,094 3,321,682 17,327,032 Impaired covered loans - - - - - - Covered loans held-in-portfolio, excluding impaired loans - - 589,256 - 17,914 607,170 Covered loans held-in-portfolio - - 589,256 - 17,914 607,170 Total loans held-in-portfolio $7,217,052 $103,642 $6,609,818 $664,094 $3,339,596 $17,934,202 Variance Lease (In thousands) Commercial Construction Mortgage financing Consumer Total Allowance for credit losses: Specific ALLL non-covered loans $5,177 $(116) $1,461 $(8) $(459) $6,055 General ALLL non-covered loans 5,370 (1,375) (2,857) (2,171) (1,700) (2,733) ALLL - non-covered loans 10,547 (1,491) (1,396) (2,179) (2,159) 3,322 Specific ALLL covered loans - - - - - - General ALLL covered loans - - 184 - (503) (319) ALLL - covered loans - - 184 - (503) (319) Total ALLL $10,547 $(1,491) $(1,212) $(2,179) $(2,662) $3,003 Loans held-in-portfolio: Impaired non-covered loans $(7,013) $(1,036) $11,811 $(211) $(789) $2,762 Non-covered loans held-in-portfolio, excluding impaired loans 44,119 (21,552) (67,525) 18,927 (27,062) (53,093) Non-covered loans held-in-portfolio 37,106 (22,588) (55,714) 18,716 (27,851) (50,331) Impaired covered loans - - - - - - Covered loans held-in-portfolio, excluding impaired loans - - (17,907) - (1,052) (18,959) Covered loans held-in-portfolio - - (17,907) - (1,052) (18,959) Total loans held-in-portfolio $37,106 $(22,588) $(73,621) $18,716 $(28,903) $(69,290)
Popular, Inc. Financial Supplement to Third Quarter 2016 Earnings Release Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS (Unaudited) 30-Sep-16 U.S. Mainland (In thousands) Commercial Construction Legacy Mortgage Consumer Total Allowance for credit losses: Specific ALLL $- $- $- $1,990 $725 $2,715 General ALLL 13,792 7,828 1,682 2,210 13,323 38,835 Total ALLL $13,792 $7,828 $1,682 $4,200 $14,048 $41,550 Loans held-in-portfolio: Impaired loans $- $- $- $8,896 $2,588 $11,484 Loans held-in-portfolio, excluding impaired loans 3,283,022 650,298 47,914 800,763 525,790 5,307,787 Total loans held-in-portfolio $3,283,022 $650,298 $47,914 $809,659 $528,378 $5,319,271 30-Jun-16 U.S. Mainland (In thousands) Commercial Construction Legacy Mortgage Consumer Total Allowance for credit losses: Specific ALLL $- $- $- $1,803 $731 $2,534 General ALLL 9,854 7,460 1,852 2,959 12,759 34,884 Total ALLL $9,854 $7,460 $1,852 $4,762 $13,490 $37,418 Loans held-in-portfolio: Impaired loans $- $- $- $8,564 $2,480 $11,044 Loans held-in-portfolio, excluding impaired loans 3,142,763 613,690 49,709 834,992 561,431 5,202,585 Total loans held-in-portfolio $3,142,763 $613,690 $49,709 $843,556 $563,911 $5,213,629 Variance (In thousands) Commercial Construction Legacy Mortgage Consumer Total Allowance for credit losses: Specific ALLL $- $- $- $187 $(6) $181 General ALLL 3,938 368 (170) (749) 564 3,951 Total ALLL $3,938 $368 $(170) $(562) $558 $4,132 Loans held-in-portfolio: Impaired loans $- $- $- $332 $108 $440 Loans held-in-portfolio, excluding impaired loans 140,259 36,608 (1,795) (34,229) (35,641) 105,202 Total loans held-in-portfolio $140,259 $36,608 $(1,795) $(33,897) $(35,533) $105,642
Popular, Inc. Financial Supplement to Third Quarter 2016 Earnings Release Table N - Reconciliation to GAAP Financial Measures (Unaudited) (In thousands, except share or per share information) 30-Sep-16 30-Jun-16 30-Sep-15 Total stockholders’ equity $5,380,395 $5,359,831 $5,049,636 Common shares outstanding at end of period 103,762,596 103,703,041 103,556,285 Book value per common share $51.85 $51.68 $48.76 Total stockholders’ equity $5,380,395 $5,359,831 $5,049,636 Less: Preferred stock (50,160) (50,160) (50,160) Less: Goodwill (627,294) (631,095) (504,925) Less: Other intangibles (47,886) (50,983) (71,393) Total tangible common equity $4,655,055 $4,627,593 $4,423,158 Total assets $39,054,296 $37,606,148 $35,522,462 Less: Goodwill (627,294) (631,095) (504,925) Less: Other intangibles (47,886) (50,983) (71,393) Total tangible assets $38,379,116 $36,924,070 $34,946,144 Tangible common equity to tangible assets 12.13% 12.53% 12.66% Common shares outstanding at end of period 103,762,596 103,703,041 103,556,285 Tangible book value per common share $44.86 $44.62 $42.71
Popular, Inc. Financial Supplement to Third Quarter 2016 Earnings Release Table O - Financial Information - Westernbank Loans (Unaudited) Revenues Quarters ended (In thousands) 30-Sep-16 30-Jun-16 Variance Interest income on WB loans $40,867 $49,794 $(8,927) FDIC loss-share expense: Amortization of indemnification asset (1,259) (4,036) 2,777 80% mirror accounting on credit impairment losses (reversal) [1] 659 475 184 80% mirror accounting on reimbursable expenses 853 2,235 (1,382) 80% mirror accounting on recoveries on covered assets, including rental income on OREOs, subject to reimbursement to the FDIC (522) (3,956) 3,434 Change in true-up payment obligation (6,611) (7,688) 1,077 Arbitration award expense (54,924) - (54,924) Other 81 394 (313) Total FDIC loss-share expense (61,723) (12,576) (49,147) Total revenues (expense) (20,856) 37,218 (58,074) Provision (reversal) for loan losses- WB loans 6,612 (7,282) 13,894 Total revenues (expense) less provision (reversal) for loan losses $(27,468) $44,500 $(71,968) [1] Reductions in expected cash flows for ASC 310-30 loans, which may impact the provision for loan losses, may consider reductions in both principal and interest cash flow expectations. The amount covered under the FDIC loss-sharing agreements for interest not collected from borrowers is limited under the agreements (approximately 90 days); accordingly, these amounts are not subject fully to the 80% mirror accounting. Non-personnel operating expenses Quarters ended [2] (In thousands) [1] 30-Sep-16 30-Jun-16 Variance Professional fees $4,501 $5,991 $(1,490) OREO expenses 2,702 6,389 (3,687) Other operating expenses 1,738 1,924 (186) Total operating expenses $8,941 $14,304 $(5,363) [1] Includes expenses related to loans subject, and not subject, to the FDIC loss-sharing agreement. [2] Expense reimbursements from the FDIC may be recorded with a time lag, since these are claimed upon the event of loss or charge-off of the loans which may occur in a subsequent period. Quarterly average assets Quarters ended (In millions) 30-Sep-16 30-Jun-16 Variance Loans $1,881 $2,013 $(132) FDIC loss-share asset 192 211 (19)
Activity in the carrying amount and accretable yield of loans accounted for under ASC 310-30 Quarters ended 30-Sep-16 30-Jun-16
Carrying amount
Carrying amount
(In thousands)Accretable yield
of loans
Accretable yield
of loans
Beginning balance $1,071,680 $1,799,943 $1,128,808 $1,935,441 Accretion (39,590) 39,590 (48,476) 48,476 Changes in expected cash flows 6,602 - (8,652) - Collections / loan sales / charge-offs [2] - (71,994) - (183,974) Ending balance 1,038,692 1,767,539 1,071,680 1,799,943 Allowance for loan losses - ASC 310-30 loans - (69,571) - (66,995) Ending balance, net of allowance for loan losses $1,038,692 $1,697,968 $1,071,680 $1,732,948 [1] The carrying amount of loans acquired from Westernbank and accounted for under ASC 310-30 which remain subject to the loss-sharing agreement with the FDIC amounted to approximately $578 million as of September 30, 2016 and $597 million as of June 30, 2016.[2] For the quarter ended June 30, 2016, includes the impact of the bulk sale of loans with a carrying value of approximately $99 million.
Activity in the carrying amount of the FDIC indemnity asset Quarters ended (In thousands) 30-Sep-16 30-Jun-16 Balance at beginning of period $214,029 $219,448 Amortization (1,259) (4,036) Credit impairment losses (reversal) to be covered under loss-sharing agreements 659 475 Reimbursable expenses to be covered under loss-sharing agreements 853 2,235 Recoveries on covered assets - (4,093) Net payments from FDIC under loss-sharing agreements (6,819) - Arbitration award expense (54,924) - Other adjustments attributable to FDIC loss-sharing agreements (72) - Balance at end of period $152,467 $214,029 Activity in the remaining FDIC loss-share asset amortization Quarters ended (In thousands) 30-Sep-16 30-Jun-16 Balance at beginning of period $23,191 $25,205 Amortization (1,259) (4,036) Impact of change in projected losses (14,627) 2,022 Balance at end of period $7,305 $23,191
View source version on businesswire.com: http://www.businesswire.com/news/home/20161025005500/en/
Popular, Inc.Investor Relations:Brett Scheiner, 212-417-6721Investor Relations OfficerBScheiner@BPOP.comorMedia Relations:Teruca Rullán, 787-281-5170Mobile: 917-679-3596Senior Vice President, Corporate Communications
1 Year Popular Chart |
1 Month Popular Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions