XML 57 R42.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Segment reporting
 6 Months Ended
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.