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Segment reporting | 9 Months Ended
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Sep. 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 and the brokerage 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 September 30, 2024 Intersegment (In thousands) BPPR Popular U.S. Eliminations Net interest income $ 488,008 $ 93,128 $ - Provision for credit losses (benefit) 77,514 (6,066) - Non-interest income 149,050 6,789 - Amortization of intangibles 394 310 - Depreciation expense 13,023 2,063 - Other operating expenses 390,227 62,356 - Income tax expense 30,064 12,472 - Net income $ 125,836 $ 28,782 $ - Segment assets $ 56,906,693 $ 14,306,045 $ (260,464) For the quarter ended September 30, 2024 Reportable (In thousands) Segments Corporate Eliminations Total Popular, Inc. Net interest income (expense) $ 581,136 $ (8,663) $ - $ 572,473 Provision for credit losses 71,448 - - 71,448 Non-interest income 155,839 8,876 (633) 164,082 Amortization of intangibles 704 - - 704 Depreciation expense 15,086 385 - 15,471 Other operating expenses 452,583 (391) (1,046) 451,146 Income tax expense (benefit) 42,536 (279) 206 42,463 Net income $ 154,618 $ 498 $ 207 $ 155,323 Segment assets $ 70,952,274 $ 5,887,340 $ (5,516,540) $ 71,323,074 For the nine months ended September 30, 2024 Intersegment (In thousands) BPPR Popular U.S. Eliminations Net interest income $ 1,449,594 $ 263,832 $ - Provision for credit losses 188,576 1,806 - Non-interest income 447,073 19,909 (56) Amortization of intangibles 1,302 931 - Depreciation expense 39,349 6,210 - Other operating expenses 1,170,263 197,307 (56) Income tax expense 92,810 23,917 - Net income $ 404,367 $ 53,570 $ - Segment assets $ 56,906,693 $ 14,306,045 $ (260,464) For the nine months ended September 30, 2024 Reportable Total (In thousands) Segments Corporate Eliminations Popular, Inc. Net interest income (expense) $ 1,713,426 $ (21,897) $ - $ 1,691,529 Provision for credit losses 190,382 458 - 190,840 Non-interest income 466,926 31,314 (4,034) 494,206 Amortization of intangibles 2,233 - - 2,233 Depreciation expense 45,559 1,161 - 46,720 Other operating expenses 1,367,514 7,004 (3,461) 1,371,057 Income tax expense 116,727 21,921 (158) 138,490 Net income (loss) $ 457,937 $ (21,127) $ (415) $ 436,395 Segment assets $ 70,952,274 $ 5,887,340 $ (5,516,540) $ 71,323,074 2023 For the quarter ended September 30, 2023 Intersegment (In thousands) BPPR Popular U.S. Eliminations Net interest income $ 453,879 $ 87,445 $ 1 Provision for credit losses (benefit) 51,899 (6,644) - Non-interest income 144,691 5,894 (134) Amortization of intangibles 484 311 - Goodwill impairment charge - 23,000 - Depreciation expense 12,880 1,962 - Other operating expenses 369,738 58,341 (134) Income tax expense 40,861 5,358 - Net income $ 122,708 $ 11,011 $ 1 Segment assets $ 57,039,000 $ 12,806,630 $ (448,100) For the quarter ended September 30, 2023 Reportable (In thousands) Segments Corporate Eliminations Total Popular, Inc. Net interest income (expense) $ 541,325 $ (7,305) $ - $ 534,020 Provision for credit losses (benefit) 45,255 (138) - 45,117 Non-interest income 150,451 10,179 (1,081) 159,549 Amortization of intangibles 795 - - 795 Goodwill impairment charge 23,000 - - 23,000 Depreciation expense 14,842 381 - 15,223 Other operating expenses 427,945 180 (1,159) 426,966 Income tax expense (benefit) 46,219 (396) 36 45,859 Net income $ 133,720 $ 2,847 $ 42 $ 136,609 Segment assets $ 69,397,530 $ 5,554,370 $ (5,214,964) $ 69,736,936 For the nine months ended September 30, 2023 Intersegment (In thousands) BPPR Popular U.S. Eliminations Net interest income $ 1,356,774 $ 265,033 $ 2 Provision for credit losses 126,952 3,328 - Non-interest income 435,966 18,165 (404) Amortization of intangibles 1,453 932 - Goodwill impairment charge - 23,000 - Depreciation expense 36,424 5,661 - Other operating expenses 1,119,522 182,809 (404) Income tax expense 120,996 16,184 - Net income $ 387,393 $ 51,284 $ 2 Segment assets $ 57,039,000 $ 12,806,630 $ (448,100) For the nine months ended September 30, 2023 Reportable Total (In thousands) Segments Corporate Eliminations Popular, Inc. Net interest income (expense) $ 1,621,809 $ (24,465) $ - $ 1,597,344 Provision for credit losses (benefit) 130,280 (334) - 129,946 Non-interest income 453,727 32,905 (4,651) 481,981 Amortization of intangibles 2,385 - - 2,385 Goodwill impairment charge 23,000 - - 23,000 Depreciation expense 42,085 1,095 - 43,180 Other operating expenses 1,301,927 (146) (3,391) 1,298,390 Income tax expense (benefit) 137,180 (1,006) (498) 135,676 Net income $ 438,679 $ 8,831 $ (762) $ 446,748 Segment assets $ 69,397,530 $ 5,554,370 $ (5,214,964) $ 69,736,936 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 nine months ended September 30, 2024, BPPR did no t participate in loans originated by PB (2023 – $ 10 million and $ 33 million, respectively). At September 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), $ 521 million in commercial real estate loans (December 31, 2023 - $ 528 million), $ 747 million in C&I loans (December 31, 2023 - $ 557 million), and $ 140 million in unsecured personal loans (December 31, 2023 - $ 229 million). During the nine months ended September 30, 2024, the BPPR segment generated approximately $ 91.2 million (2023 - $ 86.0 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 September 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 $ 32.3 million in revenues during the nine months ended September 30, 2024 (2023 - $ 33.6 million) from its operations in the U.S. and British Virgin Islands. Geographic Information Quarter ended Nine months ended (In thousands) September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Revenues: [1] Puerto Rico $ 582,953 $ 539,985 $ 1,735,035 $ 1,623,963 United States 133,067 131,698 386,819 389,463 Other 20,535 21,886 63,881 65,899 Total consolidated revenues $ 736,555 $ 693,569 $ 2,185,735 $ 2,079,325 [1] Total revenues include net interest income, service charges on deposit accounts, other service fees, mortgage banking activities, net (loss) gain, including impairment, on equity securities, net gain 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) September 30, 2024 December 31, 2023 Puerto Rico Total assets $ 54,200,914 $ 54,181,300 Loans 23,672,112 22,519,961 Deposits 50,759,657 51,282,007 United States Total assets $ 15,883,947 $ 15,343,156 Loans 11,998,043 12,006,012 Deposits 11,203,741 10,643,602 Other Total assets $ 1,238,213 $ 1,233,699 Loans [1] 530,321 543,299 Deposits [2] 1,705,103 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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