Popular, Inc. Files Q3 2024 10-Q

TL;DR

POP files Q3 10-Q, check financials for bank performance.

AI Summary

Popular, Inc. filed its 10-Q for the period ending September 30, 2024. The company, a commercial bank, reported financial data for its fiscal quarters and year-to-date periods. Key financial figures and operational details are presented within this filing.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Popular, Inc., crucial for understanding the bank's health and market position.

Risk Assessment

Risk Level: medium — As a financial institution, Popular, Inc. is subject to various market and regulatory risks inherent in the banking sector.

Key Numbers

• 0001193125-24-255718 — Accession Number (Unique identifier for the filing)
• 6022 — SIC Code (Standard Industrial Classification for Commercial Banks)

Key Players & Entities

• POPULAR, INC. (company) — Filer of the 10-Q
• 20240930 (date) — Period of report
• 20241112 (date) — Filing date
• 7877659800 (dollar_amount) — 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

• d901446d10q.htm (10-Q) — 11761KB
• d901446dex311.htm (EX-31.1) — 21KB
• d901446dex312.htm (EX-31.2) — 20KB
• d901446dex321.htm (EX-32.1) — 7KB
• d901446dex322.htm (EX-32.2) — 7KB
• g901446d860346dex311p1i0.jpg (GRAPHIC) — 2KB
• g901446d860346dex312p1i0.jpg (GRAPHIC) — 2KB
• g901446d860346dex321p1i0.jpg (GRAPHIC) — 2KB
• g901446d860346dex322p1i0.jpg (GRAPHIC) — 2KB
• 0001193125-24-255718.txt ( ) — 52369KB
• bpop-20240930.xsd (EX-101.SCH) — 364KB
• bpop-20240930_cal.xml (EX-101.CAL) — 263KB
• bpop-20240930_def.xml (EX-101.DEF) — 2008KB
• bpop-20240930_lab.xml (EX-101.LAB) — 3481KB
• bpop-20240930_pre.xml (EX-101.PRE) — 2601KB
• d901446d10q_htm.xml (XML) — 14056KB

– Financial Information

Part I – Financial Information Page

Financial Statements

Item 1. Financial Statements Unaudited Consolidated Statements of Financial Condition at September 30, 2024 and December 31, 2023 6 Unaudited Consolidated Statements of Operations for the quarters and nine months ended September 30, 2024 and 2023 7 Unaudited Consolidated Statements of Comprehensive Income (Loss) for the quarters and nine months ended September 30, 2024 and 2023 8 Unaudited Consolidated Statements of Changes in Stockholders' Equity for the quarters and nine months ended September 30, 2024 and 2023 9 Unaudited Consolidated Statements of Cash Flows for the nine months ended September 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 135

Quantitative and Qualitative Disclosures about

Item 3. Quantitative and Qualitative Disclosures about Market Risk 185

Controls and Procedures

Item 4. Controls and Procedures 185

– Other Information

Part II – Other Information

Legal Proceedings

Item 1. Legal Proceedings 185

Risk Factors

Item 1A. Risk Factors 185

Unregistered Sales of Equity Securities and

Item 2. Unregistered Sales of Equity Securities and

Use of Proceeds

Use of Proceeds 185

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 186

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 186

Other Information

Item 5. Other Information 186

Exhibits

Item 6. Exhibits 186

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) Nine months ended September 30, (In thousands) 2024 2023 Cash flows from operating activities: Net income $ 436,395 $ 446,748 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 190,840 129,946 Goodwill impairment charge - 23,000 Amortization of intangibles 2,233 2,385 Depreciation and amortization of premises and equipment 46,720 43,180 Net accretion of discounts and amortization of premiums and deferred fees ( 196,221 ) ( 22,495 ) Interest capitalized on loans subject to the temporary payment moratorium or loss mitigation alternatives ( 5,933 ) ( 7,956 ) Share-based compensation 17,853 15,079 Fair value adjustments on mortgage servicing rights 10,280 11,135 Adjustments to indemnity reserves on loans sold ( 783 ) 31 Earnings from investments under the equity method, net of dividends or distributions ( 12,723 ) ( 17,387 ) Deferred income tax expense (benefit) 19,247 ( 13,539 ) (Gain) loss on: Disposition of premises and equipment and other productive assets ( 7,651 ) ( 9,744 ) Proceeds from insurance claims - ( 145 ) Sale of loans, including valuation adjustments on loans held-for-sale and mortgage banking activities ( 396 ) 177 Sale of foreclosed assets, including write-downs ( 13,590 ) ( 18,137 ) Acquisitions of loans held-for-sale ( 5,810 ) ( 6,678 ) Proceeds from sale of loans held-for-sale 28,697 35,286 Net originations on loans held-for-sale ( 31,284 ) ( 60,285 ) Net decrease (increase) in: Trading debt securities 10,445 29,415 Equity securities ( 7,337 ) ( 7,481 ) Accrued income receivable 6,032 ( 17,638 ) Other assets 15,425 ( 981 ) Net (decrease) increase in: Interest payable ( 4,785 ) 8,009 Pension and other postretirement benefits obligation 5,937 11,985 Other liabilities ( 28,352 ) ( 100,887 ) Total adjustments 38,844 26,275 Net

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 78 Note 10 - Transfers of financial assets and mortgage servicing assets 79 Note 11 - Other real estate owned 83 Note 12 - Other assets 84 Note 13 - Goodwill and other intangible assets 85 Note 14 - Deposits 89 Note 15 - Borrowings 90 Note 16 - Other liabilities 92 Note 17 - Stockholders' equity 93 Note 18 - Other comprehensive income (loss) 94 Note 19 - Guara

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