Related Party Transactions

12 Months Ended

Dec. 31, 2022

In connection with closing of the Popular Transaction on July 1, 2022, the Company terminated the existing stockholder agreement with Popular, which granted Popular certain benefits as a shareholder of the Company. In addition, on August 15, 2022, through a secondary offering, Popular sold its remaining shares of common stock of Evertec and as of that date no longer holds any shares of EVERTEC common stock. EVERTEC is no longer considered a subsidiary of Popular under the Bank Holding Company Act of 1956, as amended (the “Bank Holding Company Act”). Given both the termination of the stockholder agreement and that Popular is no longer a shareholder of EVERTEC, management concluded that Popular is no longer a related party as of August 15, 2022.

The following table presents the Company’s transactions with Popular while they were deemed a related party during 2022 and for the years ended December 31, 2021 and 2020, respectively.


	Years ended December 31,
(In thousands)	2022(1)		2021		2020
Total revenues	$	153,335	$	245,613	$	226,074
Cost of revenues	$	2,386	$	2,610	$	4,317
Rent and other fees	$	4,433	$	7,487	$	8,320
Interest earned from an affiliate
Interest income	$	1,011	$	647	$	391

(1)Amounts presented through August 15, 2022.

As of December 31, 2021, EVERTEC had the following balances arising from transactions with related parties:



	2021

Cash and restricted cash deposits in affiliated bank	$	187,602
Other due/to from affiliate
Accounts receivable	$	38,120
Prepaid expenses and other assets	$	1,763
Operating lease right-of use assets	$	13,533
Other long-term assets	$	2,853
Accounts payable	$	5,601
Contract liabilities	$	40,982
Operating lease liabilities	$	14,019

The balance of cash and restricted cash deposits in an affiliated bank was included within the cash and cash equivalents and restricted cash line items in the accompanying consolidated balance sheet. Due from affiliates mainly included the amounts outstanding related to processing and information technology services billed to Popular subsidiaries according to the terms of the MSA under which EVERTEC Group has a contract to provide such services for at least 15 years on an exclusive basis for the duration of the agreement on commercial terms consistent with historical pricing practices among the parties. This amount was included in the accounts receivable, net in the consolidated balance sheet.