Popular, Inc. Files Q2 2024 10-Q

TL;DR

POP's Q2 10-Q is in - financials look solid.

AI Summary

Popular, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial position and performance, including assets and liabilities. Specific financial figures and operational details are presented within the report.

Why It Matters

This filing provides investors and analysts with a detailed look into Popular, Inc.'s financial health and operational performance during the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 170000000 — Total Assets (Indicates the company's total resources as of the reporting period.)
• 30000000 — Total Liabilities (Represents the company's total obligations as of the reporting period.)

Key Players & Entities

• POPULAR, INC. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 7877659800 (phone_number) — Business phone number

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock ($0.01 par value) BPOP The NASDAQ Stock Mar

Filing Documents

• d860346d10q.htm (10-Q) — 11506KB
• d860346dex311.htm (EX-31.1) — 21KB
• d860346dex312.htm (EX-31.2) — 20KB
• d860346dex321.htm (EX-32.1) — 6KB
• d860346dex322.htm (EX-32.2) — 6KB
• g860346d860346dex311p1i0.jpg (GRAPHIC) — 2KB
• g860346d860346dex312p1i0.jpg (GRAPHIC) — 2KB
• g860346d860346dex321p1i0.jpg (GRAPHIC) — 2KB
• g860346d860346dex322p1i0.jpg (GRAPHIC) — 2KB
• 0001193125-24-197914.txt ( ) — 51370KB
• bpop-20240630.xsd (EX-101.SCH) — 362KB
• bpop-20240630_cal.xml (EX-101.CAL) — 262KB
• bpop-20240630_def.xml (EX-101.DEF) — 1994KB
• bpop-20240630_lab.xml (EX-101.LAB) — 3471KB
• bpop-20240630_pre.xml (EX-101.PRE) — 2585KB
• d860346d10q_htm.xml (XML) — 13691KB

– Financial Information

Part I – Financial Information Page

Financial Statements

Item 1. Financial Statements Unaudited Consolidated Statements of Financial Condition at June 30, 2024 and December 31, 2023 6 Unaudited Consolidated Statements of Operations for the quarters and six months ended June 30, 2024 and 2023 7 Unaudited Consolidated Statements of Comprehensive Income (Loss) for the quarters and six months ended June 30, 2024 and 2023 8 Unaudited Consolidated Statements of Changes in Stockholders' Equity for the quarters and six months ended June 30, 2024 and 2023 9 Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 11 Notes to Unaudited Consolidated Financial Statements 13

Management's Discussion and Analysis of Financial

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 129

Quantitative and Qualitative Disclosures about

Item 3. Quantitative and Qualitative Disclosures about Market Risk 178

Controls and Procedures

Item 4. Controls and Procedures 178

– Other Information

Part II – Other Information

Legal Proceedings

Item 1. Legal Proceedings 178

Risk Factors

Item 1A. Risk Factors 178

Unregistered Sales of Equity Securities and

Item 2. Unregistered Sales of Equity Securities and

Use of Proceeds

Use of Proceeds 178

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 179

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 179

Other Information

Item 5. Other Information 179

Exhibits

Item 6. Exhibits 179

Forward-Looking Statements

Forward-Looking Statements This Form 10-Q contains "forward-looking the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including, without limitation, about Popular, Inc.'s (the "Corporation," "Popular," "we," "us," "our") 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 markets conditions, capital adequacy and liquidity, and the effect of legal and regulatory proceedings and new accounting standards on the Corporation's financial condition and results of operations. All statements contained herein that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "continues," "expect," "estimate," "intend," "project" and similar expressions and future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may" or similar expressions are generally intended to identify

forward-looking statements

forward-looking statements. Various factors, some of which are beyond Popular's control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Factors that might cause such a difference include, but are not limited to: the rate of growth or decline in the economy and employment levels, as well as general

business

business and economic conditions in the geographic areas we serve and, in particular, in the Commonwealth of Puerto Rico (the "Commonwealth" or "Puerto Rico"), where a significant portion of our business is concentrated; adverse economic conditions, including high levels of inflation, that adversely affect housing prices, the job market, consumer confidence and spending habits which may affect in turn, among other things, our level of non-performing assets, charge-offs and provision expense; changes in interest rates and market liquidity, which may reduce interest margins, impact funding sources, reduce loan originations, affect our ability to originate and distribute financial products in the primary and secondary markets and impact the value of our investment portfolio and our ability to return capital to our shareholders; the impact of bank failures or adverse developments at other banks and related negative media coverage of the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks; the impact of the current fiscal and economic challenges of Puerto Rico and the measures taken and to be taken by the Puerto Rico Government and the Federally-appointed oversight board on the economy, our customers and our business; the impact of the pending debt restructuring proceedings under Title III of the Puerto Rico Oversight, Management and Economic Stability Act ("PROMESA") and of other actions taken or to be taken to address Puerto Rico's fiscal challenges on the value of our portfolio of Puerto Rico government securities and loans to governmental entities and of our commercial, mortgage and consumer loan portfolios where private borrowers could be directly affected by governmental action; the amount of Puerto Rico public sector deposits held at the Corporation, whose futur

Financial Statements

Financial Statements. 11 POPULAR, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six months ended June 30, (In thousands) 2024 2023 Cash flows from operating activities: Net income $ 281,072 $ 310,139 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 119,392 84,829 Amortization of intangibles 1,529 1,590 Depreciation and amortization of premises and equipment 31,249 27,957 Net accretion of discounts and amortization of premiums and deferred fees ( 127,770 ) 1,568 Interest capitalized on loans subject to the temporary payment moratorium or loss mitigation alternatives ( 4,047 ) ( 5,275 ) Share-based compensation 16,391 13,331 Fair value adjustments on mortgage servicing rights 5,384 8,342 Adjustments to indemnity reserves on loans sold 25 ( 156 ) Earnings from investments under the equity method, net of dividends or distributions ( 2,871 ) ( 6,540 ) Deferred income tax expense (benefit) 19,702 ( 1,007 ) Gain on: Disposition of premises and equipment and other productive assets ( 6,295 ) ( 5,643 ) Sale of loans, including valuation adjustments on loans held-for-sale and mortgage banking activities ( 76 ) ( 202 ) Sale of foreclosed assets, including write-downs ( 10,575 ) ( 11,674 ) Acquisitions of loans held-for-sale ( 1,767 ) ( 6,153 ) Proceeds from sale of loans held-for-sale 19,358 24,808 Net originations on loans held-for-sale ( 22,580 ) ( 45,005 ) Net decrease (increase) in: Trading debt securities 6,735 17,484 Equity securities ( 4,445 ) ( 7,962 ) Accrued income receivable ( 17,340 ) 138 Other assets ( 8,463 ) 17,306 Net increase (decrease) in: Interest payable 3,145 16,815 Pension and other postretirement benefits obligation 3,732 7,983 Other liabilities ( 59,481 ) ( 91,321 ) Total adjustments ( 39,068 ) 41,213 Net cash provided by operating activities 242,004 351,352 Cash flows from investing activities: Net dec

Financial Statements

Financial Statements. 13 Notes to Consolidated Financial (Unaudited) Note 1 - Nature of operations 14 Note 2 - Basis of presentation 15 Note 3 - New accounting pronouncements 16 Note 4 - Restrictions on cash and due from banks and certain securities 19 Note 5 - Debt securities available-for-sale 20 Note 6 - Debt securities held-to-maturity 23 Note 7 - Loans 27 Note 8 - Allowance for credit losses – loans held-in- portfolio 36 Note 9 - Mortgage banking activities 76 Note 10 - Transfers of financial assets and mortgage servicing assets 77 Note 11 - Other real estate owned 81 Note 12 - Other assets 82 Note 13 - Goodwill and other intangible assets 83 Note 14 - Deposits 85 Note 15 - Borrowings 86 Note 16 - Other liabilities 88 Note 17 - Stockholders' equity 89 Note 18 - Other comprehensive income (loss) 90 Note 19 - Guarantees 92 Note 20 - Commitments and contingencies 94 Note 21- Non-consolidated variable interest entities 98 Note 22 - Related party transactions 100 Note 23 - Fair value measurement 101 Note 24 - Fair value of financial instruments 108 Note 25 - Net income per common share 111 Note 26 - Revenue from contracts with customers 112 Note 27 - Leases 114 Note 28 - Pension and postretirement benefits 116 Note 29 - Stock-based compensation 117 Note 30 - Income taxes 120 N

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