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Segment reporting | 6 Months Ended
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Jun. 30, 2024
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, 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 BHD. 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: 2024 For the quarter ended June 30, 2024 Intersegment (In thousands) BPPR Popular U.S. Eliminations Net interest income $ 488,745 $ 85,851 $ - Provision for credit losses (benefit) 50,382 (3,563) - Non-interest income 152,354 6,000 - Amortization of intangibles 424 310 - Depreciation expense 13,317 2,204 - Other operating expenses 386,231 67,163 - Income tax expense 33,540 7,989 - Net income $ 157,205 $ 17,748 $ - Segment assets $ 58,464,408 $ 14,287,739 $ (264,040) For the quarter ended June 30, 2024 Reportable (In thousands) Segments Corporate Eliminations Total Popular, Inc. Net interest income (expense) $ 574,596 $ (6,284) $ - $ 568,312 Provision for credit losses (benefit) 46,819 (25) - 46,794 Non-interest income 158,354 10,716 (2,764) 166,306 Amortization of intangibles 734 - - 734 Depreciation expense 15,521 367 - 15,888 Other operating expenses 453,394 784 (1,224) 452,954 Income tax expense (benefit) 41,529 (476) (594) 40,459 Net income $ 174,953 $ 3,782 $ (946) $ 177,789 Segment assets $ 72,488,107 $ 5,828,667 $ (5,471,702) $ 72,845,072 For the six months ended June 30, 2024 Intersegment (In thousands) BPPR Popular U.S. Eliminations Net interest income $ 961,586 $ 170,704 $ - Provision for credit losses 111,062 7,872 - Non-interest income 298,023 13,120 (56) Amortization of intangibles 908 621 - Depreciation expense 26,326 4,147 - Other operating expenses 780,036 134,951 (56) Income tax expense 62,746 11,445 - Net income $ 278,531 $ 24,788 $ - Segment assets $ 58,464,408 $ 14,287,739 $ (264,040) For the six months ended June 30, 2024 Reportable Total (In thousands) Segments Corporate Eliminations Popular, Inc. Net interest income (expense) $ 1,132,290 $ (13,234) $ - $ 1,119,056 Provision for credit losses 118,934 458 - 119,392 Non-interest income 311,087 22,438 (3,401) 330,124 Amortization of intangibles 1,529 - - 1,529 Depreciation expense 30,473 776 - 31,249 Other operating expenses 914,931 7,395 (2,415) 919,911 Income tax expense 74,191 22,200 (364) 96,027 Net income (loss) $ 303,319 $ (21,625) $ (622) $ 281,072 Segment assets $ 72,488,107 $ 5,828,667 $ (5,471,702) $ 72,845,072 2023 For the quarter ended June 30, 2023 Intersegment (In thousands) BPPR 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 Intersegment (In thousands) BPPR 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 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 quarter and six months ended June 30, 2024, BPPR did no t participate in loans originated by PB (2023 – $ 3 million and $ 23 million, respectively). At June 30, 2024, total assets for the BPPR segment related to its operations in the United States amounted to $ 1.6 billion (December 31, 2023 - $ 1.5 billion), including $ 105 million in multifamily loans (December 31, 2023 - $ 106 million), $ 524 million in commercial real estate loans (December 31, 2023 - $ 528 million), $ 718 million in C&I loans (December 31, 2023 - $ 557 million), and $ 168 million in unsecured personal loans (December 31, 2023 - $ 229 million). During the six months ended June 30, 2024, the BPPR segment generated approximately $ 60.1 million (2023 - $ 55.5 million) in revenues from its operations in the United States, including net interest income, service charge on deposit accounts and other service fees. In the Virgin Islands, the BPPR segment offers banking products, including loans and deposits. At June 30, 2024, total assets for the BPPR segment related to its operations in the U.S. and British Virgin Islands amounted to $ 1.0 billion (December 31, 2023 - $ 1.0 billion). The BPPR segment generated $ 21.3 million in revenues during the six months ended June 30, 2024 (2023 - $ 22.7 million) from its operations in the U.S. and British Virgin Islands. Geographic Information Quarter ended Six months ended (In thousands) June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Revenues: [1] Puerto Rico $ 586,338 $ 536,075 $ 1,152,082 $ 1,083,978 United States 127,011 132,720 253,752 257,765 Other 21,269 23,344 43,346 44,013 Total consolidated revenues $ 734,618 $ 692,139 $ 1,449,180 $ 1,385,756 [1] Total revenues include net interest income, service charges on deposit accounts, other service fees, mortgage banking activities, net gain, including impairment losses, on equity securities, net gain on trading account debt securities, adjustments to indemnity reserves on loans sold, and other operating income. Selected Balance Sheet Information: (In thousands) June 30, 2024 December 31, 2023 Puerto Rico Total assets $ 55,739,609 $ 54,181,300 Loans 23,081,402 22,519,961 Deposits 52,684,734 51,282,007 United States Total assets $ 15,883,084 $ 15,343,156 Loans 11,983,492 12,006,012 Deposits 11,097,236 10,643,602 Other Total assets $ 1,222,379 $ 1,233,699 Loans [1] 534,951 543,299 Deposits [2] 1,748,892 1,692,634 [1] Represents loans from BPPR operations located in the U.S. and British Virgin Islands. [2] 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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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