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Loans | 6 Months Ended
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Jun. 30, 2023
Receivables |
Loans | Note 8 – Loans For a summary of the accounting policies related to loans, interest recognition and allowance for credit losses refer to Note 2 – to the Consolidated Financial Statements included in the 2022 Form 10-K. During the quarter and six months ended June 30, 2023, the Corporation recorded purchases (including repurchases) of mortgage loans amounting to $ 96 million and $ 172 million, respectively, including $ 0.3 million and $ 0.6 million in PCD loans, and consumer loans of $ 45 million and $ 72 million, respectively. During the quarter and six months ended June 30, 2023, the Corporation recorded purchases of $ 38 million and $ 83 million, respectively, in commercial loans. During the quarter and six months ended June 30, 2022, the Corporation recorded purchases (including repurchases) of mortgage loans amounting to $ 71 million and $ 153 million, respectively, including $ 1 million and $ 4 million in PCD loans, respectively, and consumer loans of $ 123 million and $ 214 million, respectively. During the quarter and six months ended June 30, 2022, the Corporation recorded purchases of $ 23 million in commercial loans. The Corporation performed whole-loan sales involving approximately $ 17 million and $ 27 million of residential mortgage loans during the quarter and six months ended June 30, 2023, respectively (June 30, 2022 - $ 14 million and $ 33 million, respectively). During the quarter and six months ended June 30, 2023, the Corporation performed sales of commercial loans, including loan participations amounting to $ 34 million and $ 36 million, respectively (for the quarter and six-months ended June 30, 2022 - $ 43 million, respectively). Also, the Corporation securitized approximately $ 1 million of mortgage loans into Government National Mortgage Association (“GNMA”) mortgage-backed securities during the six months ended June 30, 2023 (for the quarter and six months ended June 30, 2022 - $ 77 million and $ 155 million, respectively). Furthermore, the Corporation securitized approximately $ 13 million and $ 23 million of mortgage loans into Federal National Mortgage Association (“FNMA”) mortgage-backed securities during the quarter and six months ended June 30, 2023, respectively (June 30, 2022 - $ 38 million and $ 95 million, respectively). Also, the Corporation did no t securitize any mortgage loans into Federal Home Loan Mortgage Corporation (“FHLMC”) mortgage-backed securities during the six months ended June 30, 2023 (June 30, 2022 - $ 1 million and $ 9 million for the quarter and six months ended, respectively). Delinquency status The following tables present the amortized cost basis of loans held-in-portfolio (“HIP”), net of unearned income, by past due status, and by loan class including those that are in non-performing status or that are accruing interest but are past due 90 days or more at June 30, 2023 and December 31, 2022. June 30, 2023 BPPR Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 3,778 $ 179 $ 184 $ 4,141 $ 292,736 $ 296,877 $ 184 $ - Commercial real estate: Non-owner occupied 177 512 22,942 23,631 2,882,616 2,906,247 22,942 - Owner occupied 1,241 700 35,832 37,773 1,390,285 1,428,058 35,832 - Commercial and industrial 2,597 728 32,846 36,171 4,002,652 4,038,823 29,758 3,088 Construction - 970 9,284 10,254 163,481 173,735 9,284 - Mortgage 221,187 88,955 449,930 760,072 5,408,216 6,168,288 194,219 255,711 Leasing 13,160 3,811 4,743 21,714 1,639,809 1,661,523 4,743 - Consumer: Credit cards 9,506 6,311 14,185 30,002 1,027,370 1,057,372 - 14,185 Home equity lines of credit - - - - 2,570 2,570 - - Personal 14,865 11,660 17,438 43,963 1,642,003 1,685,966 17,438 - Auto 75,879 18,422 36,204 130,505 3,435,028 3,565,533 36,204 - Other 512 274 1,901 2,687 132,605 135,292 1,735 166 Total $ 342,902 $ 132,522 $ 625,489 $ 1,100,913 $ 22,019,371 $ 23,120,284 $ 352,339 $ 273,150 June 30, 2023 Popular U.S. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 3,137 $ - $ 418 $ 3,555 $ 2,031,067 $ 2,034,622 $ 418 $ - Commercial real estate: Non-owner occupied 632 - 119 751 1,837,258 1,838,009 119 - Owner occupied 1,806 - 5,095 6,901 1,606,439 1,613,340 5,095 - Commercial and industrial 2,464 1,738 6,155 10,357 2,201,967 2,212,324 5,978 177 Construction - - - - 646,168 646,168 - - Mortgage 1,101 5,435 14,577 21,113 1,259,677 1,280,790 14,577 - Consumer: Credit cards - - - - 17 17 - - Home equity lines of credit 464 49 4,252 4,765 61,105 65,870 4,252 - Personal 2,766 1,725 2,726 7,217 203,411 210,628 2,726 - Other - 154 - 154 8,716 8,870 - - Total $ 12,370 $ 9,101 $ 33,342 $ 54,813 $ 9,855,825 $ 9,910,638 $ 33,165 $ 177 June 30, 2023 Popular, Inc. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP [2] [3] loans loans Commercial multi-family $ 6,915 $ 179 $ 602 $ 7,696 $ 2,323,803 $ 2,331,499 $ 602 $ - Commercial real estate: Non-owner occupied 809 512 23,061 24,382 4,719,874 4,744,256 23,061 - Owner occupied 3,047 700 40,927 44,674 2,996,724 3,041,398 40,927 - Commercial and industrial 5,061 2,466 39,001 46,528 6,204,619 6,251,147 35,736 3,265 Construction - 970 9,284 10,254 809,649 819,903 9,284 - Mortgage [1] 222,288 94,390 464,507 781,185 6,667,893 7,449,078 208,796 255,711 Leasing 13,160 3,811 4,743 21,714 1,639,809 1,661,523 4,743 - Consumer: Credit cards 9,506 6,311 14,185 30,002 1,027,387 1,057,389 - 14,185 Home equity lines of credit 464 49 4,252 4,765 63,675 68,440 4,252 - Personal 17,631 13,385 20,164 51,180 1,845,414 1,896,594 20,164 - Auto 75,879 18,422 36,204 130,505 3,435,028 3,565,533 36,204 - Other 512 428 1,901 2,841 141,321 144,162 1,735 166 Total $ 355,272 $ 141,623 $ 658,831 $ 1,155,726 $ 31,875,196 $ 33,030,922 $ 385,504 $ 273,327 [1] It is the Corporation’s policy to report delinquent residential mortgage loans insured by Federal Housing Administration (“FHA”) or guaranteed by the U.S. Department of Veterans Affairs (“VA”) as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These balances include $ 133 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2023. Furthermore, the Corporation has approximately $ 39 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation’s policy to exclude these balances from non-performing assets. [2] Loans held-in-portfolio are net of $ 324 million in unearned income and exclude $ 55 million in loans held-for-sale. [3] Includes $ 11 .0 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $ 6.1 billion were pledged at the Federal Home Loan Bank ("FHLB") as collateral for borrowings and $ 4.9 billion at the Federal Reserve Bank ("FRB") for discount window borrowings. The Corporation had an available borrowing facility with the FHLB and the discount window of Federal Reserve Bank of New York of $ 3.4 billion and $ 3.1 billion, respectively, as of June 30, 2023. December 31, 2022 BPPR Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 425 $ - $ 242 $ 667 $ 280,706 $ 281,373 $ 242 $ - Commercial real estate: Non-owner occupied 941 428 23,662 25,031 2,732,296 2,757,327 23,662 - Owner occupied 729 245 23,990 24,964 1,563,092 1,588,056 23,990 - Commercial and industrial 3,036 941 35,777 39,754 3,756,754 3,796,508 34,277 1,500 Construction - - - - 147,041 147,041 - - Mortgage 222,926 91,881 579,993 894,800 5,215,479 6,110,279 242,391 337,602 Leasing 11,983 3,563 5,941 21,487 1,564,252 1,585,739 5,941 - Consumer: Credit cards 7,106 5,049 11,910 24,065 1,017,766 1,041,831 - 11,910 Home equity lines of credit - - - - 2,954 2,954 - - Personal 13,232 8,752 18,082 40,066 1,545,621 1,585,687 18,082 - Auto 68,868 19,243 40,978 129,089 3,383,441 3,512,530 40,978 - Other 487 87 12,682 13,256 124,324 137,580 12,446 236 Total $ 329,733 $ 130,189 $ 753,257 $ 1,213,179 $ 21,333,726 $ 22,546,905 $ 402,009 $ 351,248 December 31, 2022 Popular U.S. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP loans loans Commercial multi-family $ 2,177 $ - $ - $ 2,177 $ 2,038,163 $ 2,040,340 $ - $ - Commercial real estate: Non-owner occupied 484 - 1,454 1,938 1,740,405 1,742,343 1,454 - Owner occupied - - 5,095 5,095 1,485,398 1,490,493 5,095 - Commercial and industrial 12,960 2,205 4,685 19,850 2,022,842 2,042,692 4,319 366 Construction - - - - 610,943 610,943 - - Mortgage 16,131 5,834 20,488 42,453 1,244,739 1,287,192 20,488 - Consumer: Credit cards - - - - 39 39 - - Home equity lines of credit 413 161 4,110 4,684 64,278 68,962 4,110 - Personal 1,808 1,467 1,958 5,233 232,659 237,892 1,958 - Other - - 8 8 9,960 9,968 8 - Total $ 33,973 $ 9,667 $ 37,798 $ 81,438 $ 9,449,426 $ 9,530,864 $ 37,432 $ 366 December 31, 2022 Popular, Inc. Past due Past due 90 days or more 30-59 60-89 90 days Total Non-accrual Accruing (In thousands) days days or more past due Current Loans HIP [2] [3] loans loans Commercial multi-family $ 2,602 $ - $ 242 $ 2,844 $ 2,318,869 $ 2,321,713 $ 242 $ - Commercial real estate: Non-owner occupied 1,425 428 25,116 26,969 4,472,701 4,499,670 25,116 - Owner occupied 729 245 29,085 30,059 3,048,490 3,078,549 29,085 - Commercial and industrial 15,996 3,146 40,462 59,604 5,779,596 5,839,200 38,596 1,866 Construction - - - - 757,984 757,984 - - Mortgage [1] 239,057 97,715 600,481 937,253 6,460,218 7,397,471 262,879 337,602 Leasing 11,983 3,563 5,941 21,487 1,564,252 1,585,739 5,941 - Consumer: Credit cards 7,106 5,049 11,910 24,065 1,017,805 1,041,870 - 11,910 Home equity lines of credit 413 161 4,110 4,684 67,232 71,916 4,110 - Personal 15,040 10,219 20,040 45,299 1,778,280 1,823,579 20,040 - Auto 68,868 19,243 40,978 129,089 3,383,441 3,512,530 40,978 - Other 487 87 12,690 13,264 134,284 147,548 12,454 236 Total $ 363,706 $ 139,856 $ 791,055 $ 1,294,617 $ 30,783,152 $ 32,077,769 $ 439,441 $ 351,614 [1] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These balances also include $ 190 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2022. Furthermore, the Corporation has approximately $ 42 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation’s policy to exclude these balances from non-performing assets. [2] Loans held-in-portfolio are net of $ 295 million in unearned income and exclude $ 5 million in loans held-for-sale. [3] Includes $ 7.4 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $ 4.8 billion were pledged at the Federal Home Loan Bank (FHLB) as collateral for borrowings and $ 2.6 billion at the Federal Reserve Bank (FRB) for discount window borrowings. The Corporation had an available borrowing facility with the FHLB and the discount window of Federal Reserve Bank of New York of $ 2.1 billion and $ 1.4 billion, respectively, as of December 31, 2022. Recognition of interest income on mortgage loans is generally discontinued when loans are 90 days or more in arrears on payments of principal or interest. The Corporation discontinues the recognition of interest income on residential mortgage loans insured by the FHA or guaranteed by VA when 15 months delinquent as to principal or interest, since the principal repayment on these loans is insured. At June 30, 2023, mortgage loans held-in-portfolio include $ 2.0 billion (December 31, 2022 - $ 2.0 billion) of loans insured by the FHA, or guaranteed by the VA of which $ 0.3 billion (December 31, 2022 - $ 0.3 billion) are 90 days or more past due. The portfolio of guaranteed loans includes $ 133 million of residential mortgage loans in Puerto Rico that are no longer accruing interest as of June 30, 2023 (December 31, 2022 - $ 190 million). The Corporation has approximately $ 39 million in reverse mortgage loans in Puerto Rico which are guaranteed by FHA, but which are currently not accruing interest at June 30, 2023 (December 31, 2022 - $ 42 million). Loans with a delinquency status of 90 days past due as of June 30, 2023 include $ 7 million in loans previously pooled into GNMA securities (December 31, 2022 - $ 14 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected on the financial statements of BPPR with an offsetting liability. Loans in our serviced GNMA portfolio benefit from payment forbearance programs but continue to reflect the contractual delinquency until the borrower repays deferred payments or completes a payment deferral modification or other borrower assistance alternative. The following tables present the amortized cost basis of non-accrual loans as of June 30, 2023 and December 31, 2022 by class of loans: June 30, 2023 BPPR Popular U.S. Popular, Inc. (In thousands) Non-accrual with no allowance Non-accrual with allowance Non-accrual with no allowance Non-accrual with allowance Non-accrual with no allowance Non-accrual with allowance Commercial multi-family $ - $ 184 $ - $ 418 $ - $ 602 Commercial real estate non-owner occupied 18,924 4,018 - 119 18,924 4,137 Commercial real estate owner occupied 24,420 11,412 5,095 - 29,515 11,412 Commercial and industrial 16,304 13,454 - 5,978 16,304 19,432 Construction - 9,284 - - - 9,284 Mortgage 103,821 90,398 503 14,074 104,324 104,472 Leasing 221 4,522 - - 221 4,522 Consumer: HELOCs - - - 4,252 - 4,252 Personal 4,768 12,670 - 2,726 4,768 15,396 Auto 1,293 34,911 - - 1,293 34,911 Other 263 1,472 - - 263 1,472 Total $ 170,014 $ 182,325 $ 5,598 $ 27,567 $ 175,612 $ 209,892 December 31, 2022 BPPR Popular U.S. Popular, Inc. (In thousands) Non-accrual with no allowance Non-accrual with allowance Non-accrual with no allowance Non-accrual with allowance Non-accrual with no allowance Non-accrual with allowance Commercial multi-family $ - $ 242 $ - $ - $ - $ 242 Commercial real estate non-owner occupied 15,639 8,023 1,454 - 17,093 8,023 Commercial real estate owner occupied 9,070 14,920 5,095 - 14,165 14,920 Commercial and industrial 20,227 14,050 - 4,319 20,227 18,369 Mortgage 119,027 123,364 71 20,417 119,098 143,781 Leasing 458 5,483 - - 458 5,483 Consumer: HELOCs - - - 4,110 - 4,110 Personal 4,623 13,459 - 1,958 4,623 15,417 Auto 1,177 39,801 - - 1,177 39,801 Other 263 12,183 - 8 263 12,191 Total $ 170,484 $ 231,525 $ 6,620 $ 30,812 $ 177,104 $ 262,337 Loans in non-accrual status with no allowance at June 30, 2023 include $ 176 million in collateral dependent loans (December 31, 2022 - $ 177 million). The Corporation recognized $ 4 million in interest income on non-accrual loans during the six months ended June 30, 2023 (June 30, 2022 - $ 3 million). The Corporation has designated loans classified as collateral dependent for which the ACL is measured based on the fair value of the collateral less cost to sell, when foreclosure is probable or when the repayment is expected to be provided substantially by the sale or operation of the collateral and the borrower is experiencing financial difficulty. The fair value of the collateral is based on appraisals, which may be adjusted due to their age, and the type, location, and condition of the property or area or general market conditions to reflect the expected change in value between the effective date of the appraisal and the measurement date. Appraisals are updated every one to two years depending on the type of loan and the total exposure of the borrower. The following tables present the amortized cost basis of collateral-dependent loans, for which the ACL was measured based on the fair value of the collateral less cost to sell, by class of loans and type of collateral as of June 30, 2023 and December 31, 2022: June 30, 2023 (In thousands) Real Estate Auto Equipment Accounts Receivables Other Total BPPR Commercial multi-family $ 1,303 $ - $ - $ - $ - $ 1,303 Commercial real estate: Non-owner occupied 178,349 - - - - 178,349 Owner occupied 31,318 - - - - 31,318 Commercial and industrial 1,094 - 20 7,524 18,792 27,430 Construction 14,706 - - - - 14,706 Mortgage 109,215 - - - - 109,215 Leasing - 1,028 - - - 1,028 Consumer: Personal 5,043 - - - - 5,043 Auto - 10,672 - - - 10,672 Other - - - - 312 312 Total BPPR $ 341,028 $ 11,700 $ 20 $ 7,524 $ 19,104 $ 379,376 Popular U.S. Commercial real estate: Owner occupied $ 5,095 $ - $ - $ - $ - $ 5,095 Commercial and industrial - - - - 3,628 3,628 Construction 4,700 - - - - 4,700 Mortgage 913 - - - - 913 Total Popular U.S. $ 10,708 $ - $ - $ - $ 3,628 $ 14,336 Popular, Inc. Commercial multi-family $ 1,303 $ - $ - $ - $ - $ 1,303 Commercial real estate: Non-owner occupied 178,349 - - - - 178,349 Owner occupied 36,413 - - - - 36,413 Commercial and industrial 1,094 - 20 7,524 22,420 31,058 Construction 19,406 - - - - 19,406 Mortgage 110,128 - - - - 110,128 Leasing - 1,028 - - - 1,028 Consumer: Personal 5,043 - - - - 5,043 Auto - 10,672 - - - 10,672 Other - - - - 312 312 Total Popular, Inc. $ 351,736 $ 11,700 $ 20 $ 7,524 $ 22,732 $ 393,712 December 31, 2022 (In thousands) Real Estate Auto Equipment Accounts Receivables Other Total BPPR Commercial multi-family $ 1,329 $ - $ - $ - $ - $ 1,329 Commercial real estate: Non-owner occupied 202,980 - - - - 202,980 Owner occupied 18,234 - - - - 18,234 Commercial and industrial 1,345 - 32 9,853 20,985 32,215 Mortgage 128,069 - - - - 128,069 Leasing - 1,020 - - - 1,020 Consumer: Personal 5,381 - - - - 5,381 Auto - 9,556 - - - 9,556 Other - - - - 263 263 Total BPPR $ 357,338 $ 10,576 $ 32 $ 9,853 $ 21,248 $ 399,047 Popular U.S. Commercial real estate: Non-owner occupied $ 1,454 $ - $ - $ - $ - $ 1,454 Owner occupied 5,095 - - - - 5,095 Commercial and industrial - - 136 - - 136 Mortgage 1,104 - - - - 1,104 Total Popular U.S. $ 7,653 $ - $ 136 $ - $ - $ 7,789 Popular, Inc. Commercial multi-family $ 1,329 $ - $ - $ - $ - $ 1,329 Commercial real estate: Non-owner occupied 204,434 - - - - 204,434 Owner occupied 23,329 - - - - 23,329 Commercial and industrial 1,345 - 168 9,853 20,985 32,351 Mortgage 129,173 - - - - 129,173 Leasing - 1,020 - - - 1,020 Consumer: Personal 5,381 - - - - 5,381 Auto - 9,556 - - - 9,556 Other - - - - 263 263 Total Popular, Inc. $ 364,991 $ 10,576 $ 168 $ 9,853 $ 21,248 $ 406,836 Purchased Credit Deteriorated (PCD) Loans The Corporation has purchased loans during the quarter and six months ended June 30, 2023 and 2022, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans is as follows: (In thousands) For the quarter ended June 30, 2023 For the six months ended June 30, 2023 Purchase price of loans at acquisition $ 277 $ 532 Allowance for credit losses at acquisition 10 78 Non-credit discount / (premium) at acquisition - 9 Par value of acquired loans at acquisition $ 287 $ 619 (In thousands) For the quarter ended June 30, 2022 For the six months ended June 30, 2022 Purchase price of loans at acquisition $ 591 $ 2,593 Allowance for credit losses at acquisition 170 782 Non-credit discount / (premium) at acquisition 26 125 Par value of acquired loans at acquisition $ 787 $ 3,500

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI https://asc.fasb.org/subtopic&trid=2196772 + Details
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