XML 56 R42.htm IDEA: XBRL DOCUMENT
v3.22.2

Segment reporting | 6 Months Ended
--- | ---
Jun. 30, 2022
Segment reporting disclosure |
Segment Reporting | Note 32 – Segment reporting The Corporation’s corporate structure consists of two reportable segments – Banco Popular de Puerto Rico and Popular U.S. 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 segments serve, as well as on the products and services offered by the segments. Banco Popular de Puerto Rico: The Banco Popular de Puerto Rico reportable segment includes commercial, consumer and retail banking operations conducted at BPPR. It also includes the lending operations of Popular Auto and Popular Mortgage. Other financial services within the BPPR segment include the trust service units of BPPR, asset management services of Popular Asset Management, the brokerage and investment banking operations of Popular Securities, and the insurance agency and reinsurance businesses of Popular Insurance, Popular Risk Services, Popular Life Re, and Popular Re. Popular U.S.: Popular U.S. reportable segment consists of the banking operations of Popular Bank (PB), Popular Insurance Agency, U.S.A., and Popular Equipment Finance (PEF). PB operates through a retail branch network in the U.S. mainland under the name of Popular, and equipment leasing and financing services through PEF. Popular Insurance Agency, U.S.A. offers investment and insurance services across the PB branch network. The Corporate group consists primarily of the holding companies Popular, Inc., Popular North America, Popular International Bank and certain of the Corporation’s investments accounted for under the equity method, including Evertec and Centro Financiero BHD, León. 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:
2022
For the quarter ended June 30, 2022
|  |  |  | Banco Popular |  |  |  | Intersegment
(In thousands) |  |  |  | de Puerto Rico |  | Popular U.S. |  | Eliminations
Net interest income |  |  | $ | 447,794 | $ | 93,431 | $ | 1
Provision for credit losses (benefit) |  |  |  | 8,818 |  | 588 |  | -
Non-interest income |  |  |  | 144,377 |  | 4,919 |  | (136)
Amortization of intangibles |  |  |  | 485 |  | 310 |  | -
Depreciation expense |  |  |  | 11,675 |  | 1,755 |  | -
Other operating expenses |  |  |  | 337,979 |  | 55,911 |  | (136)
Income tax expense |  |  |  | 53,588 |  | 11,697 |  | -
Net income |  |  | $ | 179,626 | $ | 28,089 | $ | 1
Segment assets |  |  | $ | 60,435,535 | $ | 10,820,953 | $ | (172,039)
For the quarter ended June 30, 2022
|  | Reportable |  |  |  |  |  |
(In thousands) |  | Segments |  | Corporate |  | Eliminations |  | Total Popular, Inc.
Net interest income (expense) | $ | 541,226 | $ | (7,364) | $ | - | $ | 533,862
Provision for credit losses (benefit) |  | 9,406 |  | (44) |  | - |  | 9,362
Non-interest income |  | 149,160 |  | 11,567 |  | (3,316) |  | 157,411
Amortization of intangibles |  | 795 |  | - |  | - |  | 795
Depreciation expense |  | 13,430 |  | 294 |  | - |  | 13,724
Other operating expenses |  | 393,754 |  | (547) |  | (1,448) |  | 391,759
Income tax expense (benefit) |  | 65,285 |  | (335) |  | (738) |  | 64,212
Net income | $ | 207,716 | $ | 4,835 | $ | (1,130) | $ | 211,421
Segment assets | $ | 71,084,449 | $ | 5,456,518 | $ | (5,039,036) | $ | 71,501,931
For the six months ended June 30, 2022
|  |  |  | Banco Popular |  |  |  | Intersegment
(In thousands) |  |  |  | de Puerto Rico |  | Popular U.S. |  | Eliminations
Net interest income |  |  | $ | 862,963 | $ | 179,951 | $ | 2
Provision for credit losses (benefit) |  |  |  | (4,872) |  | (1,431) |  | -
Non-interest income |  |  |  | 280,239 |  | 10,873 |  | (273)
Amortization of intangibles |  |  |  | 969 |  | 717 |  | -
Depreciation expense |  |  |  | 23,192 |  | 3,579 |  | -
Other operating expenses |  |  |  | 672,857 |  | 109,550 |  | (272)
Income tax expense |  |  |  | 92,904 |  | 23,289 |  | -
Net income |  |  | $ | 358,152 | $ | 55,120 | $ | 1
Segment assets |  |  | $ | 60,435,535 | $ | 10,820,953 | $ | (172,039)
For the six months ended June 30, 2022
|  | Reportable |  |  |  |  |  | Total
(In thousands) |  | Segments |  | Corporate |  | Eliminations |  | Popular, Inc.
Net interest income (expense) | $ | 1,042,916 | $ | (14,742) | $ | - | $ | 1,028,174
Provision for credit losses (benefit) |  | (6,303) |  | 165 |  | - |  | (6,138)
Non-interest income |  | 290,839 |  | 25,832 |  | (4,568) |  | 312,103
Amortization of intangibles |  | 1,686 |  | - |  | - |  | 1,686
Depreciation expense |  | 26,771 |  | 583 |  | - |  | 27,354
Other operating expenses |  | 782,135 |  | (103) |  | (2,455) |  | 779,577
Income tax expense (benefit) |  | 116,193 |  | (667) |  | (835) |  | 114,691
Net income | $ | 413,273 | $ | 11,112 | $ | (1,278) | $ | 423,107
Segment assets | $ | 71,084,449 | $ | 5,456,518 | $ | (5,039,036) | $ | 71,501,931
2021
For the quarter ended June 30, 2021
|  |  |  | Banco Popular |  |  |  | Intersegment
(In thousands) |  |  |  | de Puerto Rico |  | Popular U.S. |  | Eliminations
Net interest income |  |  | $ | 419,200 | $ | 78,743 | $ | 1
Provision for credit losses (benefit) |  |  |  | (22,042) |  | 4,856 |  | -
Non-interest income |  |  |  | 136,052 |  | 5,267 |  | (137)
Amortization of intangibles |  |  |  | 860 |  | 167 |  | -
Depreciation expense |  |  |  | 11,808 |  | 1,597 |  | -
Other operating expenses |  |  |  | 307,663 |  | 48,533 |  | (136)
Income tax expense |  |  |  | 63,614 |  | 10,163 |  | -
Net income |  |  | $ | 193,349 | $ | 18,694 | $ | -
Segment assets |  |  | $ | 62,104,522 | $ | 10,197,371 | $ | (23,954)
For the quarter ended June 30, 2021
|  | Reportable |  |  |  |  |  |
(In thousands) |  | Segments |  | Corporate |  | Eliminations |  | Total Popular, Inc.
Net interest income (expense) | $ | 497,944 | $ | (10,142) | $ | - | $ | 487,802
Provision for credit losses (benefit) |  | (17,186) |  | 171 |  | - |  | (17,015)
Non-interest income |  | 141,182 |  | 15,274 |  | (1,916) |  | 154,540
Amortization of intangibles |  | 1,027 |  | 228 |  | - |  | 1,255
Depreciation expense |  | 13,405 |  | 265 |  | - |  | 13,670
Other operating expenses |  | 356,060 |  | (1,852) |  | (948) |  | 353,260
Income tax expense (benefit) |  | 73,777 |  | (313) |  | (371) |  | 73,093
Net income | $ | 212,043 | $ | 6,633 | $ | (597) | $ | 218,079
Segment assets | $ | 72,277,939 | $ | 5,407,659 | $ | (5,028,305) | $ | 72,657,293
For the six months ended June 30, 2021
|  |  |  | Banco Popular |  |  |  | Intersegment
(In thousands) |  |  |  | de Puerto Rico |  | Popular U.S. |  | Eliminations
Net interest income |  |  | $ | 829,523 | $ | 157,912 | $ | 3
Provision for credit losses (benefit) |  |  |  | (67,403) |  | (31,864) |  | -
Non-interest income |  |  |  | 271,260 |  | 10,933 |  | (275)
Amortization of intangibles |  |  |  | 1,721 |  | 333 |  | -
Depreciation expense |  |  |  | 23,951 |  | 3,925 |  | -
Other operating expenses |  |  |  | 614,583 |  | 101,727 |  | (272)
Income tax expense |  |  |  | 122,427 |  | 28,198 |  | -
Net income |  |  | $ | 405,504 | $ | 66,526 | $ | -
Segment assets |  |  | $ | 62,104,522 | $ | 10,197,371 | $ | (23,954)
For the six months ended June 30, 2021
|  | Reportable |  |  |  |  |  | Total
(In thousands) |  | Segments |  | Corporate |  | Eliminations |  | Popular, Inc.
Net interest income (expense) | $ | 987,438 | $ | (20,524) | $ | - | $ | 966,914
Provision for credit losses (benefit) |  | (99,267) |  | 26 |  | - |  | (99,241)
Non-interest income |  | 281,918 |  | 28,424 |  | (2,149) |  | 308,193
Amortization of intangibles |  | 2,054 |  | 252 |  | - |  | 2,306
Depreciation expense |  | 27,876 |  | 532 |  | - |  | 28,408
Other operating expenses |  | 716,038 |  | (1,182) |  | (1,857) |  | 712,999
Income tax expense (benefit) |  | 150,625 |  | (646) |  | (55) |  | 149,924
Net income | $ | 472,030 | $ | 8,918 | $ | (237) | $ | 480,711
Segment assets | $ | 72,277,939 | $ | 5,407,659 | $ | (5,028,305) | $ | 72,657,293
Geographic Information The following information presents selected financial information based on the geographic location where the Corporation conducts its business. The banking operations of BPPR are primarily based in Puerto Rico, where it has the largest retail banking franchise. BPPR also conducts banking operations in the U.S. Virgin Islands, the British Virgin Islands and New York. BPPR’s banking operations in the United States include E-loan, an online platform used to offer personal loans, co-branded credit cards offerings, an online deposit gathering platform and commercial lending activities. In the Virgin Islands, the BPPR segment offers banking products, including loans and deposits. During the six months period ended June 30, 2022, the BPPR segment generated approximately $26.1 million (2021 - $25.5 million) in revenues from its operations in the United States, including net interest income, service charges on deposit accounts and other service fees. In addition, the BPPR segment generated $23.0 million in revenues (2021 - $23.4 million) from its operations in the U.S. and British Virgin Islands. At June 30, 2022, total assets for the BPPR segment related to its operations in the United States amounted to $831 million (December 31, 2021 - $595 million).
Geographic Information |  |  |  |
|  |  | Quarter ended |  | Six months ended
(In thousands) |  | June 30, 2022 |  | June 30, 2021 |  | June 30, 2022 |  | June 30, 2021
Revenues:[1] |  |  |  |  |  |  |  |
Puerto Rico | $ | 560,635 | $ | 529,143 | $ | 1,088,308 | $ | 1,047,852
United States |  | 111,369 |  | 95,276 |  | 214,543 |  | 191,288
Other |  | 19,269 |  | 17,923 |  | 37,426 |  | 35,967
Total consolidated revenues | $ | 691,273 | $ | 642,342 | $ | 1,340,277 | $ | 1,275,107
[1] | Total revenues include net interest income, service charges on deposit accounts, other service fees, mortgage banking activities, net (loss) gain, including impairment on equity securities, net gain (loss) on trading account debt securities, net loss on sale of loans, including valuation adjustment on loans held-for-sale, adjustments (expense) to indemnity reserves on loans sold, and other operating income.
Selected Balance Sheet Information:
(In thousands) |  | June 30, 2022 |  | December 31, 2021
Puerto Rico |  |  |  |
| Total assets | $ | 58,506,196 | $ | 63,221,282
| Loans |  | 20,177,693 |  | 19,770,118
| Deposits |  | 55,140,193 |  | 57,211,608
United States |  |  |  |
| Total assets | $ | 11,651,798 | $ | 10,986,055
| Loans |  | 9,652,668 |  | 8,903,493
| Deposits |  | 8,131,590 |  | 7,777,232
Other |  |  |  |
| Total assets | $ | 1,343,937 | $ | 890,562
| Loans |  | 569,121 |  | 626,115
| Deposits[1] |  | 2,055,881 |  | 2,016,248
[1] | Represents deposits from BPPR operations located in the U.S. and British Virgin Islands.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingDisclosureOfEntitysReportableSegmentsAbstract
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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -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: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration