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Popular, Inc. (Holding company only) financial information | 12 Months Ended
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Dec. 31, 2020
Disclosure Text Block |
Popular, Inc (Holding Company Only) Financial Information | Note 37 - Popular, Inc. (holding company only) financial information The following condensed financial information presents the financial position of Popular, Inc. Holding Company only at December 31, 2020 and 2019, and the results of its operations and cash flows for the years ended December 31, 2020, 2019 and 2018.
Condensed Statements of Condition |  |  |  |
|  |  | December 31,
(In thousands) |  | 2020 |  | 2019
ASSETS |  |  |  |
Cash and due from banks (includes $69,299 due from bank subsidiary (2019 - $56,008)) | $ | 69,299 | $ | 55,956
Money market investments |  | 111,596 |  | 221,598
Debt securities held-to-maturity, at amortized cost (includes $8,726 in common securities from statutory trusts (2019 - $8,726))[1] |  | 8,726 |  | 8,726
Equity securities, at lower of cost or realizable value |  | 16,049 |  | 10,744
Investment in BPPR and subsidiaries, at equity |  | 4,327,188 |  | 4,233,046
Investment in Popular North America and subsidiaries, at equity |  | 1,733,411 |  | 1,749,518
Investment in other non-bank subsidiaries, at equity |  | 271,129 |  | 260,501
Other loans |  | 31,473 |  | 32,027
| Less - Allowance for credit losses |  | 311 |  | 410
Premises and equipment |  | 5,322 |  | 3,893
Investment in equity method investees |  | 88,272 |  | 75,739
Other assets (includes $5,518 due from subsidiaries and affiliate (2019 - $4,353)) |  | 35,002 |  | 25,087
Total assets | $ | 6,697,156 | $ | 6,676,425
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |
Notes payable | $ | 587,386 | $ | 586,119
Other liabilities (includes $3,779 due to subsidiaries and affiliate (2019 - $2,109)) |  | 81,148 |  | 73,596
Stockholders’ equity |  | 6,028,622 |  | 6,016,710
Total liabilities and stockholders’ equity | $ | 6,697,156 | $ | 6,676,425
[1] Refer to Note 17 to the consolidated financial statements for information on the statutory trusts.
Condensed Statements of Operations |  |  |  |  |  |
|  |  | Years ended December 31,
(In thousands) |  | 2020 |  | 2019 |  | 2018
Income: |  |  |  |  |  |
| Dividends from subsidiaries | $ | 586,000 | $ | 408,000 | $ | 453,200
| Interest income (includes $2,290 due from subsidiaries and affiliates (2019 - $4,237; 2018 - $6,121)) |  | 4,949 |  | 6,669 |  | 8,366
| Earnings from investments in equity method investees |  | 17,841 |  | 17,279 |  | 15,498
| Other operating income |  | 1 |  | 1 |  | 253
| Net gain (loss), including impairment, on equity securities |  | 1,494 |  | 988 |  | (777)
Total income |  | 610,285 |  | 432,937 |  | 476,540
Expenses: |  |  |  |  |  |
| Interest expense |  | 38,528 |  | 38,528 |  | 51,218
| Provision (reversal) for credit losses |  | 95 |  | 256 |  | (251)
| Loss on early extinguishment of debt |  | - |  | - |  | 12,522
| Operating (income) expenses (includes expenses for services provided by subsidiaries and affiliate of $13,140 (2019 - $14,400 ; 2018 - $10,511)), net of reimbursement by subsidiaries for services provided by parent of $138,729 (2019 - $106,725 ; 2018 - $90,807) |  | (921) |  | 80 |  | 3,656
Total expenses |  | 37,702 |  | 38,864 |  | 67,145
Income before income taxes and equity in undistributed (losses) earnings of subsidiaries |  | 572,583 |  | 394,073 |  | 409,395
Income tax expense |  | 17 |  | - |  | -
Income before equity in undistributed (losses) earnings of subsidiaries |  | 572,566 |  | 394,073 |  | 409,395
Equity in undistributed (losses) earnings of subsidiaries |  | (65,944) |  | 277,062 |  | 208,763
Net income | $ | 506,622 | $ | 671,135 | $ | 618,158
Comprehensive income, net of tax | $ | 866,551 | $ | 929,171 | $ | 540,836
Condensed Statements of Cash Flows |  |  |  |  |  |
|  |  |  | Years ended December 31,
(In thousands) |  | 2020 |  | 2019 |  | 2018
Cash flows from operating activities: |  |  |  |  |  |
Net income | $ | 506,622 | $ | 671,135 | $ | 618,158
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
| Equity in losses (earnings) of subsidiaries, net of dividends or distributions |  | 65,944 |  | (277,062) |  | (208,763)
| Provision (reversal) for credit losses |  | 95 |  | 256 |  | (251)
| Amortization of intangibles |  | 98 |  | 96 |  | 41
| Net accretion of discounts and amortization of premiums and deferred fees |  | 1,233 |  | 1,240 |  | 2,022
| Share-based compensation |  | 5,770 |  | 7,927 |  | 7,441
| Earnings from investments under the equity method, net of dividends or distributions |  | (15,510) |  | (14,948) |  | (14,333)
| Loss on early extinguishment of debt |  | - |  | - |  | 12,522
| Net (increase) decrease in: |  |  |  |  |  |
|  | Equity securities |  | (5,305) |  | (4,051) |  | (1,583)
|  | Other assets |  | (8,327) |  | 1,134 |  | 344
| Net (decrease) increase in: |  |  |  |  |  |
|  | Interest payable |  | - |  | - |  | (10,288)
|  | Other liabilities |  | 2,470 |  | 2,508 |  | 8,059
Total adjustments |  | 46,468 |  | (282,900) |  | (204,789)
Net cash provided by operating activities |  | 553,090 |  | 388,235 |  | 413,369
Cash flows from investing activities: |  |  |  |  |  |
| Net decrease (increase) in money market investments |  | 110,000 |  | (45,000) |  | 70,000
| Net repayments on other loans |  | 587 |  | 677 |  | 536
| Capital contribution to subsidiaries |  | (10,000) |  | (9,000) |  | (87,000)
| Return of capital from wholly owned subsidiaries |  | 12,500 |  | 13,000 |  | 13,000
| Return of capital from equity method investments |  | 131 |  | - |  | -
| Acquisition of premises and equipment |  | (2,667) |  | (1,289) |  | (1,099)
| Proceeds from sale of premises and equipment |  | 285 |  | 3 |  | 293
Net cash provided by (used in) investing activities |  | 110,836 |  | (41,609) |  | (4,270)
Cash flows from financing activities: |  |  |  |  |  |
| Payments of notes payable |  | - |  | - |  | (448,518)
| Payments of debt extinguishment |  | - |  | - |  | (12,522)
| Proceeds from issuance of notes payable |  | - |  | - |  | 293,819
| Proceeds from issuance of common stock |  | 15,175 |  | 13,451 |  | 11,653
| Payments for repurchase of reedemable preferred stock |  | (28,017) |  | - |  | -
| Dividends paid |  | (133,645) |  | (115,810) |  | (105,441)
| Net payments for repurchase of common stock |  | (500,705) |  | (250,571) |  | (125,731)
| Payments related to tax withholding for share-based compensation |  | (3,394) |  | (5,420) |  | (2,201)
Net cash used in financing activities |  | (650,586) |  | (358,350) |  | (388,941)
Net increase (decrease) in cash and due from banks, and restricted cash |  | 13,340 |  | (11,724) |  | 20,158
Cash and due from banks, and restricted cash at beginning of period |  | 56,554 |  | 68,278 |  | 48,120
Cash and due from banks, and restricted cash at end of period | $ | 69,894 | $ | 56,554 | $ | 68,278
Popular, Inc. (parent company only) received dividend distributions from its direct equity method investees amounting to $2.3 million for the year ended December 31, 2020 (2019 - $2.3 million; 2018 - $1.2 million). Also, received dividend distributions from PIBI amounting to $12.5 million (2019 - $13.0 million; 2018 - $13.0 million) which main source of income is derived from its investment in BHD and was recorded as a reduction to the investment. Notes payable include junior subordinated debentures issued by the Corporation that are associated to capital securities issued by the Popular Capital Trust I and Popular Capital Trust II and medium-term notes. Refer to Note 17 for a description of significant provisions related to these junior subordinated debentures. The following table presents the aggregate amounts by contractual maturities of notes payable at December 31, 2020:
Year |  | (In thousands)
2021 | $ | -
2022 |  | -
2023 |  | 296,574
2024 |  | -
2025 |  | -
Later years |  | 290,812
Total | $ | 587,386

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=108774443&loc=d3e5283-111683 + Details
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