XML 54 R42.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Segment Reporting | 9 Months Ended
--- | ---
Sep. 30, 2018
Disclosure Text Block |
Segment Reporting | Note 34 – Segment reporting The Corporation’s corporate structure consists of two reportable segments – Banco Popular de Puerto Rico and Popular U.S. These reportable segments pertain only to the continuing operations of Popular, Inc. Management determined the reportable segments based on the internal reporting used to evaluate performance and to assess where to allocate resources. The segments were determined based on the organizational structure, which focuses primarily on the markets the segmen ts serve, as well as on the products and services offered by the segments. Banco Popular de Puerto Rico: Given that Banco Popular de Puerto Rico constitutes a significant portion of the Corporation’s results of operations and total assets at September 30, 2018, additional disclosures are provided for the business areas included in this reportable segment, as described below: Commercial banking represents the Corporation’s banking operations conducted at BPPR, which are targeted mainly to corporate, small and middle size businesses. It includes aspects of the lending and depository businesses, as well as other finance and advisory services. BPPR allocates funds across business areas based on duration matched transfer pricing at market rates. This area also inc orporates income related with the investment of excess funds, as well as a proportionate share of the investment function of BPPR. Consumer and retail banking represents the branch banking operations of BPPR which focus on retail clients. It includes the c onsumer lending business operations of BPPR, as well as the lending operations of Popular Auto and Popular Mortgage. Popular Auto focuses on auto and lease financing, while Popular Mortgage focuses principally on residential mortgage loan originations. The consumer and retail banking area also incorporates income related with the investment of excess funds from the branch network, as well as a proportionate share of the investment function of BPPR. Other financial services include the trust and asset manag ement service units of BPPR, the brokerage and investment banking operations of Popular Securities, and the insurance agency and reinsurance businesses of Popular Insurance, Popular Insurance V.I., Popular Risk Services, and Popular Life Re. Most of the se rvices that are provided by these subsidiaries generate profits based on fee income. Popular U.S.: Popular U.S. reportable segment consists of the banking operations of PB, E-LOAN, Inc., Popular Equipment Finance, Inc. and Popular Insurance Agency, U.S.A. PB operates through a retail branch network in the U.S. mainland under the name of Popular, while E-LOAN, Inc. supported PB’s deposit gathering through its online platform until March 31, 2017, when said o perations were transferred to Popular Direct, a division of PB. During 2017, the E-LOAN brand was transferred to Popular Inc. and is being used by BPPR to offer personal loans through an online platform. Popular Equipment Finance, Inc. also holds a running-off loan portfo lio as this subsidiary ceased originating loans during 2009. Popular Insurance Agency, U.S.A. offers investment and insurance services across the PB branch network. The Corporate group consists primarily of the holding companie s Popular, Inc., Popular Nor th America, Popular International Bank and certain of the Corporation’s investments accounted for under the equity method, including EVERTEC and Centro Financiero BHD, Leon. The Corporate group also includes the expenses of certain corporate areas that are identified as critical to the organization including: Finance, Risk Management and Legal. The accounting policies of the individual operating segments are the same as those of the Corporation. Transactions between reportable segments are primarily conducted at market rates, resulting in profits that are eliminated for reporting consolidated results of operations. The tables that follow present the results of operations and total assets by reportable segments:
2018
For the quarter ended September 30, 2018
|  |  |  | Banco Popular |  |  |  | Intersegment
(In thousands) |  |  |  | de Puerto Rico |  | Popular Bank |  | Eliminations
Net interest income |  |  | $ | 388,533 | $ | 76,184 | $ | 3
Provision for loan losses |  |  |  | 51,911 |  | 2,510 |  | -
Non-interest income |  |  |  | 135,762 |  | 5,530 |  | (141)
Amortization of intangibles |  |  |  | 2,157 |  | 167 |  | -
Depreciation expense |  |  |  | 11,135 |  | 2,185 |  | -
Other operating expenses |  |  |  | 282,124 |  | 44,279 |  | (136)
Income tax expense |  |  |  | 39,421 |  | 10,439 |  | -
Net income |  |  | $ | 137,547 | $ | 22,134 | $ | (2)
Segment assets |  |  | $ | 38,338,571 | $ | 9,388,787 | $ | (112,222)
For the quarter ended September 30, 2018
|  | Reportable |  |  |  |  |  |
(In thousands) |  | Segments |  | Corporate |  | Eliminations |  | Total Popular, Inc.
Net interest income (expense) | $ | 464,720 | $ | (13,251) | $ | - | $ | 451,469
Provision (reversal) for loan losses |  | 54,421 |  | (34) |  | - |  | 54,387
Non-interest income |  | 141,151 |  | 9,960 |  | (90) |  | 151,021
Amortization of intangibles |  | 2,324 |  | - |  | - |  | 2,324
Depreciation expense |  | 13,320 |  | 188 |  | - |  | 13,508
Other operating expenses |  | 326,267 |  | 23,995 |  | (657) |  | 349,605
Income tax expense (benefit) |  | 49,860 |  | (8,070) |  | 228 |  | 42,018
Net income (loss) | $ | 159,679 | $ | (19,370) | $ | 339 | $ | 140,648
Segment assets | $ | 47,615,136 | $ | 5,478,884 | $ | (5,174,592) | $ | 47,919,428
For the nine months ended September 30, 2018
|  |  |  | Banco Popular |  |  |  | Intersegment
(In thousands) |  |  |  | de Puerto Rico |  | Popular Bank |  | Eliminations
Net interest income |  |  | $ | 1,073,522 | $ | 226,654 | $ | 5
Provision for loan losses |  |  |  | 154,805 |  | 30,774 |  | -
Non-interest income |  |  |  | 452,577 |  | 15,010 |  | (420)
Amortization of intangibles |  |  |  | 6,474 |  | 499 |  | -
Depreciation expense |  |  |  | 32,069 |  | 6,466 |  | -
Other operating expenses |  |  |  | 777,574 |  | 135,305 |  | (409)
Income tax expense |  |  |  | 41,088 |  | 15,759 |  | -
Net income |  |  | $ | 514,089 | $ | 52,861 | $ | (6)
Segment assets |  |  | $ | 38,338,571 | $ | 9,388,787 | $ | (112,222)
For the nine months ended September 30, 2018
|  | Reportable |  |  |  |  |  |
(In thousands) |  | Segments |  | Corporate |  | Eliminations |  | Total Popular, Inc.
Net interest income (expense) | $ | 1,300,181 | $ | (41,529) | $ | - | $ | 1,258,652
Provision (reversal) for loan losses |  | 185,579 |  | (75) |  | - |  | 185,504
Non-interest income |  | 467,167 |  | 33,698 |  | (1,538) |  | 499,327
Amortization of intangibles |  | 6,973 |  | - |  | - |  | 6,973
Depreciation expense |  | 38,535 |  | 548 |  | - |  | 39,083
Other operating expenses |  | 912,470 |  | 68,766 |  | (2,185) |  | 979,051
Income tax expense (benefit) |  | 56,847 |  | (21,505) |  | 271 |  | 35,613
Net income (loss) | $ | 566,944 | $ | (55,565) | $ | 376 | $ | 511,755
Segment assets | $ | 47,615,136 | $ | 5,478,884 | $ | (5,174,592) | $ | 47,919,428
2017
For the quarter ended September 30, 2017
|  |  |  | Banco Popular |  |  |  | Intersegment
(In thousands) |  |  |  | de Puerto Rico |  | Popular Bank |  | Eliminations
Net interest income |  |  | $ | 321,145 | $ | 71,453 | $ | 7
Provision for loan losses |  |  |  | 118,177 |  | 42,544 |  | -
Non-interest income |  |  |  | 88,170 |  | 5,124 |  | (141)
Amortization of intangibles |  |  |  | 2,178 |  | 167 |  | -
Depreciation expense |  |  |  | 9,751 |  | 2,128 |  | -
Other operating expenses |  |  |  | 243,564 |  | 41,960 |  | (138)
Income tax benefit |  |  |  | (8,704) |  | (4,117) |  | -
Net income (loss) |  |  | $ | 44,349 | $ | (6,105) | $ | 4
Segment assets |  |  | $ | 33,031,839 | $ | 9,323,647 | $ | (24,615)
For the quarter ended September 30, 2017
|  | Reportable |  |  |  |  |  |
(In thousands) |  | Segments |  | Corporate |  | Eliminations |  | Total Popular, Inc.
Net interest income (expense) | $ | 392,605 | $ | (14,434) | $ | - | $ | 378,171
Provision for loan losses |  | 160,721 |  | 38 |  | - |  | 160,759
Non-interest income |  | 93,153 |  | 7,277 |  | (56) |  | 100,374
Amortization of intangibles |  | 2,345 |  | - |  | - |  | 2,345
Depreciation expense |  | 11,879 |  | 159 |  | - |  | 12,038
Other operating expenses |  | 285,386 |  | 17,944 |  | (625) |  | 302,705
Income tax benefit |  | (12,821) |  | (7,360) |  | 215 |  | (19,966)
Net income (loss) | $ | 38,248 | $ | (17,938) | $ | 354 | $ | 20,664
Segment assets | $ | 42,330,871 | $ | 5,003,304 | $ | (4,732,908) | $ | 42,601,267
For the nine months ended September 30, 2017
|  |  |  | Banco Popular |  |  |  | Intersegment
(In thousands) |  |  |  | de Puerto Rico |  | Popular Bank |  | Eliminations
Net interest income |  |  | $ | 951,024 | $ | 208,274 | $ | (207)
Provision for loan losses |  |  |  | 198,668 |  | 60,915 |  | -
Non-interest income |  |  |  | 290,042 |  | 15,259 |  | (431)
Amortization of intangibles |  |  |  | 6,535 |  | 499 |  | -
Depreciation expense |  |  |  | 29,296 |  | 6,191 |  | -
Other operating expenses |  |  |  | 713,594 |  | 123,940 |  | (414)
Income tax expense |  |  |  | 56,946 |  | 13,202 |  | (93)
Net income |  |  | $ | 236,027 | $ | 18,786 | $ | (131)
Segment assets |  |  | $ | 33,031,839 | $ | 9,323,647 | $ | (24,615)
For the nine months ended September 30, 2017
|  | Reportable |  |  |  |  |  |
(In thousands) |  | Segments |  | Corporate |  | Eliminations |  | Total Popular, Inc.
Net interest income (expense) | $ | 1,159,091 | $ | (44,343) | $ | - | $ | 1,114,748
Provision for loan losses |  | 259,583 |  | 308 |  | (5,955) |  | 253,936
Non-interest income |  | 304,870 |  | 29,616 |  | (1,450) |  | 333,036
Amortization of intangibles |  | 7,034 |  | - |  | - |  | 7,034
Depreciation expense |  | 35,487 |  | 479 |  | - |  | 35,966
Other operating expenses |  | 837,120 |  | 57,145 |  | (2,024) |  | 892,241
Income tax expense (benefit) |  | 70,055 |  | (23,819) |  | 2,536 |  | 48,772
Net income (loss) | $ | 254,682 | $ | (48,840) | $ | 3,993 | $ | 209,835
Segment assets | $ | 42,330,871 | $ | 5,003,304 | $ | (4,732,908) | $ | 42,601,267
Additional disclosures with respect to the Banco Popular de Puerto Rico reportable segment are as follows:
2018
For the quarter ended September 30, 2018
Banco Popular de Puerto Rico
|  |  |  | Consumer |  | Other |  | Eliminations |  | Total Banco
|  | Commercial |  | and Retail |  | Financial |  | and Other |  | Popular de
(In thousands) |  | Banking |  | Banking |  | Services |  | Adjustments [1] |  | Puerto Rico
Net interest income | $ | 145,397 | $ | 241,920 | $ | 1,232 | $ | (16) | $ | 388,533
Provision for loan losses |  | 25,580 |  | 26,331 |  | - |  | - |  | 51,911
Non-interest income |  | 23,630 |  | 88,866 |  | 23,663 |  | (397) |  | 135,762
Amortization of intangibles |  | 50 |  | 1,069 |  | 1,038 |  | - |  | 2,157
Depreciation expense |  | 4,697 |  | 6,287 |  | 151 |  | - |  | 11,135
Other operating expenses |  | 78,628 |  | 183,626 |  | 20,279 |  | (409) |  | 282,124
Income tax expense |  | 11,068 |  | 27,436 |  | 917 |  | - |  | 39,421
Net income | $ | 49,004 | $ | 86,037 | $ | 2,510 | $ | (4) | $ | 137,547
Segment assets | $ | 28,247,478 | $ | 22,672,941 | $ | 336,311 | $ | (12,918,159) | $ | 38,338,571
For the nine months ended September 30, 2018
Banco Popular de Puerto Rico
|  |  |  | Consumer |  | Other |  | Eliminations |  | Total Banco
|  | Commercial |  | and Retail |  | Financial |  | and Other |  | Popular de
(In thousands) |  | Banking |  | Banking |  | Services |  | Adjustments [1] |  | Puerto Rico
Net interest income | $ | 430,341 | $ | 639,149 | $ | 4,066 | $ | (34) | $ | 1,073,522
Provision for loan losses |  | 56,027 |  | 98,778 |  | - |  | - |  | 154,805
Non-interest income |  | 60,122 |  | 220,690 |  | 69,876 |  | 101,889 |  | 452,577
Amortization of intangibles |  | 153 |  | 3,209 |  | 3,112 |  | - |  | 6,474
Depreciation expense |  | 13,327 |  | 18,284 |  | 458 |  | - |  | 32,069
Other operating expenses |  | 199,528 |  | 518,147 |  | 52,679 |  | 7,220 |  | 777,574
Income tax expense |  | 52,640 |  | 46,625 |  | 5,711 |  | (63,888) |  | 41,088
Net income | $ | 168,788 | $ | 174,796 | $ | 11,982 | $ | 158,523 | $ | 514,089
Segment assets | $ | 28,247,478 | $ | 22,672,941 | $ | 336,311 | $ | (12,918,159) | $ | 38,338,571
[1] Includes the impact of the Termination Agreement with the FDIC and the Tax Closing Agreement entered into in connection with the FDIC transaction. These transactions resulted in a gain of $102.8 million reported in the non-interest income line, other operating expenses of $8.1 million and a net tax benefit of $63.9 million. Refer to Notes 10 and 32 to the Consolidated Financial Statements for additional information.
2017
For the quarter ended September 30, 2017
Banco Popular de Puerto Rico
|  |  |  | Consumer |  | Other |  |  |  | Total Banco
|  | Commercial |  | and Retail |  | Financial |  |  |  | Popular de
(In thousands) |  | Banking |  | Banking |  | Services |  | Eliminations |  | Puerto Rico
Net interest income | $ | 132,101 | $ | 186,827 | $ | 2,213 | $ | 4 | $ | 321,145
Provision for loan losses |  | 27,647 |  | 90,530 |  | - |  | - |  | 118,177
Non-interest income |  | 19,733 |  | 46,022 |  | 22,473 |  | (58) |  | 88,170
Amortization of intangibles |  | 54 |  | 1,066 |  | 1,058 |  | - |  | 2,178
Depreciation expense |  | 4,386 |  | 5,207 |  | 158 |  | - |  | 9,751
Other operating expenses |  | 61,843 |  | 164,981 |  | 16,809 |  | (69) |  | 243,564
Income tax expense (benefit) |  | 11,925 |  | (22,811) |  | 2,182 |  | - |  | (8,704)
Net income (loss) | $ | 45,979 | $ | (6,124) | $ | 4,479 | $ | 15 | $ | 44,349
Segment assets | $ | 21,258,790 | $ | 18,501,519 | $ | 522,008 | $ | (7,250,478) | $ | 33,031,839
For the nine months ended September 30, 2017
Banco Popular de Puerto Rico
|  |  |  | Consumer |  | Other |  |  |  | Total Banco
|  | Commercial |  | and Retail |  | Financial |  |  |  | Popular de
(In thousands) |  | Banking |  | Banking |  | Services |  | Eliminations |  | Puerto Rico
Net interest income | $ | 380,761 | $ | 564,956 | $ | 5,295 | $ | 12 | $ | 951,024
Provision for loan losses |  | 27,970 |  | 170,698 |  | - |  | - |  | 198,668
Non-interest income |  | 60,496 |  | 162,613 |  | 67,130 |  | (197) |  | 290,042
Amortization of intangibles |  | 158 |  | 3,206 |  | 3,171 |  | - |  | 6,535
Depreciation expense |  | 12,994 |  | 15,759 |  | 543 |  | - |  | 29,296
Other operating expenses |  | 177,278 |  | 492,939 |  | 43,606 |  | (229) |  | 713,594
Income tax expense (benefit) |  | 60,780 |  | (12,760) |  | 8,926 |  | - |  | 56,946
Net income | $ | 162,077 | $ | 57,727 | $ | 16,179 | $ | 44 | $ | 236,027
Segment assets | $ | 21,258,790 | $ | 18,501,519 | $ | 522,008 | $ | (7,250,478) | $ | 33,031,839
Geographic Information |  |  |  |
|  | Quarter ended |  | Nine months ended
(in thousands) |  | September 30, 2018 |  | September 30, 2017 |  | September 30, 2018 |  | September 30, 2017
Revenues: |  |  |  |  |  |  |  |
Puerto Rico | $ | 493,512 | $ | 378,790 | $ | 1,435,099 | $ | 1,157,324
United States |  | 90,659 |  | 81,652 |  | 264,232 |  | 234,778
Other |  | 18,319 |  | 18,103 |  | 58,648 |  | 55,682
Total consolidated revenues | $ | 602,490 | $ | 478,545 | $ | 1,757,979 | $ | 1,447,784
[1] Total revenues include net interest income (expense), service charges on deposit accounts, other service fees, mortgage banking activities, net gain (loss) and valuation adjustments on investment securities, trading account (loss) profit, net (loss) gain on sale of loans and valuation adjustments on loans held-for-sale, adjustments to indemnity reserves on loans sold, FDIC loss share (expense) income and other operating income.
Selected Balance Sheet Information:
(In thousands) |  | September 30, 2018 |  | December 31, 2017
Puerto Rico |  |  |  |
Total assets | $ | 37,167,038 | $ | 33,705,624
Loans |  | 18,782,224 |  | 17,591,078
Deposits |  | 31,171,092 |  | 27,575,292
United States |  |  |  |
Total assets | $ | 9,855,363 | $ | 9,648,865
Loans |  | 7,085,761 |  | 6,608,056
Deposits |  | 6,956,336 |  | 6,635,153
Other |  |  |  |
Total assets | $ | 897,027 | $ | 922,848
Loans |  | 695,925 |  | 743,329
Deposits [1] |  | 1,521,399 |  | 1,243,063
[1] Represents deposits from BPPR operations located in the U.S. and British Virgin Islands.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration