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Segment reporting | 6 Months Ended
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Jun. 30, 2023
Segment reporting disclosure |
Segment Reporting | Note 33 – 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, including U.S. based activities conducted through its New York Branch. 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 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, until August 15, 2022, 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: 2023 For the quarter ended June 30, 2023 Banco Popular Intersegment (In thousands) de Puerto Rico Popular U.S. Eliminations Net interest income $ 453,075 $ 87,502 $ - Provision for credit losses 29,345 7,907 - Non-interest income 143,804 5,887 (134) Amortization of intangibles 485 310 - Depreciation expense 11,875 1,885 - Other operating expenses 386,069 61,151 (134) Income tax expense 37,303 6,850 - Net income $ 131,802 $ 15,286 $ - Segment assets $ 58,392,177 $ 12,549,742 $ (442,125) For the quarter ended June 30, 2023 Reportable (In thousands) Segments Corporate Eliminations Total Popular, Inc. Net interest income (expense) $ 540,577 $ (8,909) $ - $ 531,668 Provision for credit losses (benefit) 37,252 (60) - 37,192 Non-interest income 149,557 13,012 (2,098) 160,471 Amortization of intangibles 795 - - 795 Depreciation expense 13,760 355 - 14,115 Other operating expenses 447,086 (556) (1,156) 445,374 Income tax expense (benefit) 44,153 (289) (361) 43,503 Net income $ 147,088 $ 4,653 $ (581) $ 151,160 Segment assets $ 70,499,794 $ 5,844,554 $ (5,506,082) $ 70,838,266 For the six months ended June 30, 2023 Banco Popular Intersegment (In thousands) de Puerto Rico Popular U.S. Eliminations Net interest income $ 902,895 $ 177,588 $ 1 Provision for credit losses 75,053 9,972 - Non-interest income 291,275 12,271 (270) Amortization of intangibles 969 621 - Depreciation expense 23,544 3,699 - Other operating expenses 749,784 124,468 (270) Income tax expense 80,135 10,826 - Net income $ 264,685 $ 40,273 $ 1 Segment assets $ 58,392,177 $ 12,549,742 $ (442,125) For the six months ended June 30, 2023 Reportable Total (In thousands) Segments Corporate Eliminations Popular, Inc. Net interest income (expense) $ 1,080,484 $ (17,160) $ - $ 1,063,324 Provision for credit losses (benefit) 85,025 (196) - 84,829 Non-interest income 303,276 22,726 (3,570) 322,432 Amortization of intangibles 1,590 - - 1,590 Depreciation expense 27,243 714 - 27,957 Other operating expenses 873,982 (326) (2,232) 871,424 Income tax expense (benefit) 90,961 (610) (534) 89,817 Net income $ 304,959 $ 5,984 $ (804) $ 310,139 Segment assets $ 70,499,794 $ 5,844,554 $ (5,506,082) $ 70,838,266 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 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 co-branded credit cards offerings and commercial lending activities. BPPR’s commercial lending activities in the U.S., through its New York Branch, include periodic loan participations with PB. During the quarter and six months ended, BPPR participated in loans originated by PB totaling $ 3 million and $ 23 million, respectively (2022 - $ 93 million and $ 93 million, respectively). At June 30, 2023, total assets for the BPPR segment related to its operations in the United States amounted to $ 1.4 billion (December 31, 2022 - $ 1.2 billion). During the six months ended June 30, 2023, the BPPR segment generated approximately $ 55.5 million (2022 - $ 26.1 million) in revenues from its operations in the United States, including net interest income, service charges on deposit accounts and other service fees. In the Virgin Islands, the BPPR segment offers banking products, including loans and deposits. The BPPR segment generated $ 22.7 million in revenues during the six months ended June 30, 2023 (2022 - $ 22.3 million) from its operations in the U.S. and British Virgin Islands. Geographic Information Quarter ended Six months ended (In thousands) June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Revenues: [1] Puerto Rico $ 536,075 $ 560,635 $ 1,083,978 $ 1,088,308 United States 132,720 111,369 257,765 214,543 Other 23,344 19,269 44,013 37,426 Total consolidated revenues $ 692,139 $ 691,273 $ 1,385,756 $ 1,340,277 [1] Total revenues include net interest income, service charges on deposit accounts, other service fees, mortgage banking activities, net gain (loss), including impairment on equity securities, net gain (loss) on trading account debt securities, adjustments to indemnity reserves on loans sold, and other operating income. Selected Balance Sheet Information: (In thousands) June 30, 2023 December 31, 2022 Puerto Rico Total assets $ 55,719,290 $ 53,541,427 Loans 21,323,370 20,884,442 Deposits 53,166,029 51,138,790 United States Total assets $ 13,907,471 $ 12,718,775 Loans 11,215,440 10,643,964 Deposits 9,069,798 8,182,702 Other Total assets $ 1,211,505 $ 1,377,715 Loans 547,533 554,744 Deposits [1] 1,768,991 1,905,735 [1] Represents deposits from BPPR operations located in the U.S. and British Virgin Islands.

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- 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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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