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Segment reporting
 12 Months Ended
Dec. 31, 2023
Segment reporting disclosure  
Segment Reporting
Note 37 – 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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2023
Intersegment
 
(In thousands)
BPPR
Popular U.S.
Eliminations
Net interest income
$
1,811,655
$
350,645
$
2
Provision for credit losses
194,325
14,584
-
Non-interest income
 
586,677
24,868
(404)
Amortization of intangibles
1,937
1,243
-
Goodwill impairment charge
-
23,000
-
Depreciation expense
49,135
7,888
-
Other operating expenses
1,563,571
254,253
(404)
Income tax expense
117,412
18,198
-
Net income
$
471,952
$
56,347
$
2
Segment assets
$
57,023,071
$
13,812,158
$
(426,058)
 
December 31, 2023
Reportable
Total
(In thousands)
 
Segments
Corporate
Eliminations
Popular, Inc.
Net interest income (expense)
$
2,162,302
$
(30,778)
$
-
$
2,131,524
Provision for credit losses (benefit)
208,909
(300)
-
208,609
Non-interest income
611,141
44,410
(4,827)
650,724
Amortization of intangibles
3,180
-
-
3,180
Goodwill impairment charge
23,000
-
-
23,000
Depreciation expense
57,023
1,484
-
58,507
Other operating expenses
1,817,420
518
(4,525)
1,813,413
Income tax expense (benefit)
135,610
(1,333)
(80)
134,197
Net income
$
528,301
$
13,263
$
(222)
$
541,342
Segment assets
$
70,409,171
$
5,607,833
$
(5,258,849)
$
70,758,155
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2022
Intersegment
(In thousands)
BPPR
Popular U.S.
 
Eliminations
Net interest income
$
1,823,517
$
372,988
$
3
Provision for credit losses
70,304
12,452
-
Non-interest income
 
680,276
31,958
(547)
Amortization of intangibles
1,937
1,338
-
Goodwill impairment charge
-
9,000
-
Depreciation expense
47,003
6,919
-
Other operating expenses
1,454,187
230,136
(543)
Income tax expense
148,351
(25,205)
-
Net income
$
782,011
$
170,306
$
(1)
Segment assets
$
56,190,260
$
11,558,280
$
(421,781)
 
December 31, 2022
Reportable
Total
(In thousands)
 
Segments
Corporate
Eliminations
Popular, Inc.
Net interest income (expense)
$
2,196,508
$
(29,149)
$
-
$
2,167,359
Provision for credit losses
82,756
274
-
83,030
Non-interest income
711,687
189,835
(4,460)
897,062
Amortization of intangibles
3,275
-
-
3,275
Goodwill impairment charge
9,000
-
-
9,000
Depreciation expense
53,922
1,185
-
55,107
Other operating expenses
1,683,780
80
(4,822)
1,679,038
Income tax expense
123,146
9,074
110
132,330
Net income
$
952,316
$
150,073
$
252
$
1,102,641
Segment assets
$
67,326,759
$
5,390,122
$
(5,078,964)
$
67,637,917
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2021
Banco Popular
 
Intersegment
(In thousands)
de Puerto Rico
Popular U.S.
 
Eliminations
Net interest income
$
1,674,589
$
321,154
$
6
Provision for credit losses (benefit)
(136,352)
(56,897)
-
Non-interest income
 
565,310
24,518
(548)
Amortization of intangibles
2,813
665
-
Depreciation expense
46,539
7,415
-
Other operating expenses
1,285,959
203,892
(544)
Income tax expense
253,479
56,538
-
Net income
$
787,461
$
134,059
$
2
Segment assets
$
64,336,681
$
10,399,066
$
(31,528)
 
December 31, 2021
Reportable
Total
(In thousands)
 
Segments
Corporate
Eliminations
Popular, Inc.
Net interest income (expense)
$
1,995,749
$
(38,159)
$
-
$
1,957,590
Provision for credit losses (benefit)
(193,249)
(215)
-
(193,464)
Non-interest income
589,280
56,535
(3,687)
642,128
Amortization of intangibles
3,478
5,656
-
9,134
Depreciation expense
53,954
1,150
-
55,104
Other operating expenses
1,489,307
(545)
(3,725)
1,485,037
Income tax expense (benefit)
310,017
(1,085)
86
309,018
Net income
$
921,522
$
13,415
$
(48)
$
934,889
Segment assets
$
74,704,219
$
5,458,718
$
(5,065,038)
$
75,097,899
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 mainland
 
United States
 
include 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
 
year
 
ended
 
December
 
31,
 
2023,
 
BPPR
participated
 
in
 
loans
 
originated
 
by
 
PB
 
totaling
 
$
81
million
 
(2022
 
-
 
$
184
 
million,
 
2021
 
-
 
$
35
 
million).
 
Total
 
assets
 
for
 
the
 
BPPR
segment
 
related
 
to
 
its
 
operations
 
in
 
the
 
United
 
States
 
amounted
 
to
 
$
1.5
 
billion
 
(2022
 
-
 
$
1.2
 
billion),
 
including
 
$
106
 
million
 
in
multifamily loans (2022 - $
103
 
million), $
528
 
million in commercial real estate loans
 
(2022 - $
446
 
million), $
557
 
million in C&I loans
(2022 -
 
$
214
 
million), and
 
$
229
 
million in
 
unsecured personal
 
loans (2022
 
- $
227
 
million). During
 
the year
 
ended December
 
31,
2023, the
 
BPPR segment
 
generated approximately $
117.7
 
million (2022
 
- $
67.8
 
million, 2021
 
- $
50.6
 
million) in
 
revenues from its
operations in the United States, including net interest income and other service fees. In the Virgin Islands, the BPPR segment offers
banking
 
products, including
 
loans and
 
deposits. The
 
BPPR segment
 
generated $
45.0
 
million
 
in revenues
 
during the
 
year
 
ended
December 31, 2023 (2022 - $
46.6
 
million, 2021 - $
45.4
 
million) from its operations in the U.S. and British
 
Virgin Islands.
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
2023
2022
2021
Revenues:
[1]
Puerto Rico
 
$
2,175,938
$
2,505,988
$
2,136,481
United States
518,805
480,545
390,201
Other
87,505
77,888
73,036
Total consolidated
 
revenues
$
2,782,248
$
3,064,421
$
2,599,718
[1]
Total revenues include
 
net interest income, service charges on deposit accounts,
 
other service fees, mortgage banking activities, net
 
gain on sale
of debt securities, net gain (loss), including impairment
 
on equity securities, net profit (loss) on trading account debt
 
securities, net loss on sale of
loans, including valuation adjustments on loans held-for-sale,
 
adjustments to indemnity reserves on loans sold, and
 
other operating income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Balance Sheet Information
(In thousands)
2023
2022
2021
Puerto Rico
Total assets
$
54,181,300
$
53,541,427
$
63,221,282
Loans
22,519,961
20,884,442
19,770,118
Deposits
51,282,007
51,138,790
57,211,608
United States
Total assets
$
15,343,156
$
12,718,775
$
10,986,055
Loans
12,006,012
10,643,964
8,903,493
Deposits
10,643,602
8,182,702
7,777,232
Other
Total assets
$
1,233,699
$
1,377,715
$
890,562
Loans
543,299
554,744
626,115
Deposits
[1]
1,692,634
1,905,735
2,016,248
[1]
Represents deposits from BPPR operations located in the
 
U.S. and British Virgin Islands.