UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported):
January
25, 2012
POPULAR,
INC.
(Exact
name of registrant as specified in its charter)
COMMONWEALTH OF PUERTO RICO
|
001-34084
|
66-0667416
|
(State or other jurisdiction of incorporation or organization) |
(Commission File |
(IRS Employer Identification |
209 MUNOZ RIVERA AVENUE
|
00918
|
|
(Address of principal executive offices) |
(Zip code) |
(787) 765-9800
|
(Registrant's telephone number, including area code) |
NOT APPLICABLE
|
(Former name, former address and former fiscal year, if changed since last report) |
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On January 25, 2012, Popular, Inc. issued a news release announcing its unaudited financial results for the quarter ended December 31, 2011, a copy of which is attached as Exhibit 99.1 to this Current Report on Form 8-K. The information furnished pursuant to this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed "filed" for purposes of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference into any of the Corporation’s filings under the Securities Act of 1933, as amended, unless otherwise expressly stated in such filing.
Item 9.01. Financial Statements and Exhibits
99.1 Press release dated January 25, 2012
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
POPULAR, INC. |
||||
(Registrant) | ||||
Date: |
January 26, 2012 |
By: /s/ Ileana González |
||
Ileana González |
||||
Senior Vice President and Comptroller |
Exhibit 99.1
Popular, Inc. Reports Net Income of $151.3 million for the Year and $3.0 million for the Quarter ended December 31, 2011
SAN JUAN, Puerto Rico--January 25, 2012--Popular, Inc. (“the Corporation” or “Popular”) (NASDAQ: BPOP) reported net income of $3.0 million for the quarter ended December 31, 2011, compared with net income of $27.5 million for the quarter ended September 30, 2011, and a net loss of $227.1 million for the quarter ended December 31, 2010.
The Corporation’s net income for the year ended December 31, 2011 amounted to $151.3 million, compared with $137.4 million in 2010.
Refer to the accompanying “Financial Supplement to Fourth Quarter 2011 Earnings Release” for detailed financial information and key performance ratios.
Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said, “The year 2011 was a turnaround year for us. We were able to achieve operational profitability for the first time since 2006 by maintaining strong margins, producing strong and stable top line revenue, and continuing to reduce credit costs. We believe we can build on these results and make further progress in 2012. Based on our current credit trends and our current economic outlook for Puerto Rico and the U.S., we believe that we can continue to reduce credit costs and achieve net income of between $185 million and $200 million during 2012.”
Earnings Highlights – Fourth Quarter 2011 compared to Third Quarter 2011
Quarter ended | $ Variance | Quarter ended | ||||||||||||
(Dollars in thousands) |
December 31, |
September 30, |
Q4 vs. Q3 |
December 31, |
||||||||||
Net interest income | $344,780 | $369,311 | ($24,531 | ) | $ | 354,575 | ||||||||
Provision for loan losses – non-covered loans | 123,908 | 150,703 | (26,795 | ) | 354,409 | |||||||||
Provision for loan losses – covered loans [1] | 55,900 | 25,573 | 30,327 | - | ||||||||||
Net interest income after provision for loan losses | 164,972 | 193,035 | (28,063 | ) | 166 | |||||||||
Non-interest income | 149,359 | 122,390 | 26,969 | 105,606 | ||||||||||
Operating expenses | 311,093 | 282,355 | 28,738 | 344,677 | ||||||||||
Income before income tax | 3,238 | 33,070 | (29,832 | ) | (238,905 | ) | ||||||||
Income tax expense (benefit) | 263 | 5,537 | (5,274 | ) | (11,764 | ) | ||||||||
Net income (loss) | $2,975 | $27,533 | ($24,558 | ) | ($227,141 | ) | ||||||||
Net income (loss) applicable to common stock | $2,044 | $26,602 | ($24,558 | ) | ($227,451 | ) | ||||||||
Net income (loss) per common share - basic and diluted | $ - | $0.03 | ($0.03 | ) | ($0.22 | ) | ||||||||
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements. | ||||||||||||||
Net interest income
Provision for loan losses
Non-interest income
The above favorable variances in non-interest income were partially offset by the following categories:
Operating expenses
Credit Quality
Refer to the section below for explanations on the main variances.
BPPR Reportable Segment
BPNA Reportable Segment
Financial Condition Highlights – December 31, 2011 compared to September 30, 2011
Forward-Looking Statements
The information included in this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in forward-looking statements. Factors that might cause such a difference include, but are not limited to (i) the rate of growth in the economy and employment levels, as well as general business and economic conditions; (ii) changes in interest rates, as well as the magnitude of such changes; (iii) the fiscal and monetary policies of the federal government and its agencies; (iv) changes in federal bank regulatory and supervisory policies, including required levels of capital; (v) the relative strength or weakness of the consumer and commercial credit sectors and of the real estate markets in Puerto Rico and the other markets in which borrowers are located; (vi) the performance of the stock and bond markets; (vii) competition in the financial services industry; (viii) possible legislative, tax or regulatory changes; (ix) the impact of the Dodd-Frank Act on our businesses, business practice and cost of operations; and (x) additional Federal Deposit Insurance Corporation assessments. For a discussion of such factors and certain risks and uncertainties to which the Corporation is subject, see the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2010, as well as its filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, the Corporation assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks 36th by assets among U.S. banks. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey, Illinois, Florida and California.
An electronic version of this press release can be found at the Corporation’s website, www.popular.com.
POPULAR, INC. | |||||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | |||||||||||||||
Table A - Selected Ratios and Other Information | |||||||||||||||
(Unaudited) | |||||||||||||||
Quarter ended | Quarter ended | Quarter ended | Year ended | ||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||
2011 | 2011 | 2010 | 2011 | 2010 | |||||||||||
Net income (loss) per common share: | |||||||||||||||
Basic and diluted | $0.00 | $0.03 | ($0.22 | ) | $0.14 | ($0.06 | ) | ||||||||
Average common shares outstanding | 1,022,741,800 | 1,021,660,038 | 1,021,527,855 | 1,021,793,932 | 885,154,040 | ||||||||||
Average common shares outstanding - assuming dilution | 1,022,741,800 | 1,021,660,038 | 1,021,527,855 | 1,022,894,962 | 885,154,040 | ||||||||||
Common shares outstanding at end of period | 1,025,904,567 | 1,024,475,398 | 1,022,727,802 | 1,025,904,567 | 1,022,727,802 | ||||||||||
Market value per common share | $1.39 | $1.50 | $3.14 | $1.39 | $3.14 | ||||||||||
Market Capitalization --- (In millions) | $1,426 | $1,537 | $3,211 | $1,426 | $3,211 | ||||||||||
Return on average assets | 0.03 | % | 0.29 | % | -2.29 | % | 0.40 | % | 0.36 | % | |||||
Return on average common equity | 0.21 | % | 2.81 | % | -23.51 | % | 4.01 | % | 4.37 | % | |||||
Net interest margin [1] | 4.30 | % | 4.45 | % | 4.10 | % | 4.34 | % | 3.79 | % | |||||
Common equity per share | $3.77 | $3.87 | $3.67 | $3.77 | $3.67 | ||||||||||
Tangible common book value per common share (non-GAAP) | $3.08 | $3.17 | $2.98 | $3.08 | $2.98 | ||||||||||
Tangible common equity to tangible assets (non-GAAP) | 8.62 | % | 8.65 | % | 7.99 | % | 8.62 | % | 7.99 | % | |||||
Tier 1 risk-based capital [2] |
15.97 |
% | 15.79 | % | 14.52 | % |
15.97 |
% | 14.52 | % | |||||
Total risk-based capital [2] |
17.25 |
% | 17.07 | % | 15.79 | % |
17.25 |
% | 15.79 | % | |||||
Tier 1 leverage [2] | 10.90 | % | 10.56 | % | 9.70 | % | 10.90 | % | 9.70 | % | |||||
Tier 1 common equity to risk-weighted assets (non-GAAP) [2] |
12.10 |
% | 12.00 | % | 10.94 | % |
12.10 |
% | 10.94 | % | |||||
[1] Not on a taxable equivalent basis. | |||||||||||||||
[2] Capital ratios for the current quarter are estimated. | |||||||||||||||
POPULAR, INC. | ||||||||||||||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | ||||||||||||||||||||||||
Table B - Consolidated Statement of Operations | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Quarter ended | Quarter ended | Variance | Quarter ended | Year ended | Year ended | |||||||||||||||||||
December 31, | September 30, | Q4 2011 vs. | December 31, | December 31, | December 31, | |||||||||||||||||||
(In thousands, except per share information) | 2011 | 2011 | Q3 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
Interest income: | ||||||||||||||||||||||||
Loans | $ | 399,523 | $ | 428,999 | $ | (29,476 | ) | $ | 445,444 | $ | 1,694,357 | $ | 1,676,734 | |||||||||||
Money market investments | 837 | 886 | (49 | ) | 1,058 | 3,596 | 5,384 | |||||||||||||||||
Investment securities | 46,758 | 51,085 | (4,327 | ) | 53,092 | 203,941 | 238,210 | |||||||||||||||||
Trading account securities | 6,275 | 10,788 | (4,513 | ) | 7,605 | 35,607 | 27,918 | |||||||||||||||||
Total interest income | 453,393 | 491,758 | (38,365 | ) | 507,199 | 1,937,501 | 1,948,246 | |||||||||||||||||
Interest expense: | ||||||||||||||||||||||||
Deposits | 56,068 | 65,868 | (9,800 | ) | 80,962 | 269,487 | 350,881 | |||||||||||||||||
Short-term borrowings | 13,780 | 13,744 | 36 | 14,522 | 55,258 | 60,278 | ||||||||||||||||||
Long-term debt | 38,765 | 42,835 | (4,070 | ) | 57,140 | 180,764 | 242,222 | |||||||||||||||||
Total interest expense | 108,613 | 122,447 | (13,834 | ) | 152,624 | 505,509 | 653,381 | |||||||||||||||||
Net interest income | 344,780 | 369,311 | (24,531 | ) | 354,575 | 1,431,992 | 1,294,865 | |||||||||||||||||
Provision for loan losses | 179,808 | 176,276 | 3,532 | 354,409 | 575,720 | 1,011,880 | ||||||||||||||||||
Net interest income after provision for loan losses | 164,972 | 193,035 | (28,063 | ) | 166 | 856,272 | 282,985 | |||||||||||||||||
Service charges on deposit accounts | 46,162 | 46,346 | (184 | ) | 45,938 | 184,940 | 195,803 | |||||||||||||||||
Other service fees | 60,097 | 62,664 | (2,567 | ) | 71,637 | 239,720 | 377,504 | |||||||||||||||||
Net gain (loss) on sale and valuation adjustments of investment securities | 2,800 | 8,134 | (5,334 | ) | (218 | ) | 10,844 | 3,992 | ||||||||||||||||
Trading account profit | 2,610 | 2,912 | (302 | ) | 8,303 | 5,897 | 16,404 | |||||||||||||||||
Net gain (loss) on sale of loans, including valuation adjustments | ||||||||||||||||||||||||
on loans held-for-sale | 16,135 | 20,294 | (4,159 | ) | 1,478 | 30,891 | 15,874 | |||||||||||||||||
Adjustments (expense) to indemnity reserves on loans sold | (3,481 | ) | (10,285 | ) | 6,804 | (34,511 | ) | (33,068 | ) | (72,013 | ) | |||||||||||||
FDIC loss share income (expense) |
17,447 | (5,361 | ) | 22,808 | (3,046 | ) | 66,791 | (25,751 | ) | |||||||||||||||
Fair value change in equity appreciation instrument | - | - | - | 7,520 | 8,323 | 42,555 | ||||||||||||||||||
Gain on sale of processing and technology business | - | - | - | - | - | 640,802 | ||||||||||||||||||
Other operating income | 7,589 | (2,314 | ) | 9,903 | 8,505 | 45,939 | 93,023 | |||||||||||||||||
Total non-interest income | 149,359 | 122,390 | 26,969 | 105,606 | 560,277 | 1,288,193 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Personnel costs | ||||||||||||||||||||||||
Salaries | 77,074 | 77,455 | (381 | ) | 77,206 | 305,018 | 352,139 | |||||||||||||||||
Commissions, incentives and other bonuses | 10,873 | 11,630 | (757 | ) | 12,167 | 44,421 | 53,837 | |||||||||||||||||
Pension, postretirement and medical insurance | 26,039 | 11,385 | 14,654 | 14,838 | 62,219 | 61,294 | ||||||||||||||||||
Other personnel costs, including payroll taxes | 10,561 | 11,254 | (693 | ) | 9,818 | 41,712 | 46,928 | |||||||||||||||||
Total personnel costs | 124,547 | 111,724 | 12,823 | 114,029 | 453,370 | 514,198 | ||||||||||||||||||
Net occupancy expenses | 25,891 | 25,885 | 6 | 29,844 | 102,319 | 116,203 | ||||||||||||||||||
Equipment | 10,526 | 10,517 | 9 | 11,620 | 43,840 | 85,851 | ||||||||||||||||||
Other taxes | 12,899 | 12,391 | 508 | 11,973 | 51,885 | 50,608 | ||||||||||||||||||
Professional fees | 50,019 | 48,756 | 1,263 | 56,607 | 194,942 | 166,105 | ||||||||||||||||||
Communications | 5,917 | 6,800 | (883 | ) | 7,277 | 27,115 | 38,905 | |||||||||||||||||
Business promotion | 19,225 | 14,650 | 4,575 | 16,912 | 55,067 | 46,671 | ||||||||||||||||||
FDIC deposit insurance | 25,088 | 23,285 | 1,803 | 17,750 | 93,728 | 67,644 | ||||||||||||||||||
Loss on early extinguishment of debt | 56 | 109 | (53 | ) | 12,361 | 8,693 | 38,787 | |||||||||||||||||
Other real estate owned (OREO) | 9,893 | 3,234 | 6,659 | 20,467 | 21,778 | 46,789 | ||||||||||||||||||
Credit and debit card processing, volume, interchange and other | 3,974 | 5,416 | (1,442 | ) | 3,865 | 17,539 | 42,613 | |||||||||||||||||
Other operating expenses | 20,377 | 17,125 | 3,252 | 39,714 | 70,367 | 102,000 | ||||||||||||||||||
Amortization of intangibles | 2,681 | 2,463 | 218 | 2,258 | 9,654 | 9,173 | ||||||||||||||||||
Total operating expenses | 311,093 | 282,355 | 28,738 | 344,677 | 1,150,297 | 1,325,547 | ||||||||||||||||||
Income before income tax | 3,238 | 33,070 | (29,832 | ) | (238,905 | ) | 266,252 | 245,631 | ||||||||||||||||
Income tax expense (benefit) | 263 | 5,537 | (5,274 | ) | (11,764 | ) | 114,927 | 108,230 | ||||||||||||||||
Net income (loss) |
$ | 2,975 | $ | 27,533 | $ | (24,558 | ) | $ | (227,141 | ) | $ | 151,325 | $ | 137,401 | ||||||||||
Net income (loss) applicable to common stock |
$ | 2,044 | $ | 26,602 | $ | (24,558 | ) | $ | (227,451 | ) | $ | 147,602 | $ | (54,576 | ) | |||||||||
Net income (loss) per common share - basic |
$ | - | $ | 0.03 | $ | (0.03 | ) | $ | (0.22 | ) | $ | 0.14 | $ | (0.06 | ) | |||||||||
Net income (loss )per common share - diluted |
$ | - | $ | 0.03 | $ | (0.03 | ) | $ | (0.22 | ) | $ | 0.14 | $ | (0.06 | ) | |||||||||
Popular, Inc. | ||||||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | ||||||||||||||||
Table C - Consolidated Statement of Condition | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Variance | ||||||||||||||||
December 31, | September 30, | December 31, | Q4 2011 vs. | |||||||||||||
(In thousands) | 2011 | 2011 | 2010 | Q3 2011 | ||||||||||||
Assets: | ||||||||||||||||
Cash and due from banks | $ | 535,282 | $ | 567,141 | $ | 452,373 | $ | (31,859 | ) | |||||||
Money market investments | 1,376,174 | 1,269,139 | 979,295 | 107,035 | ||||||||||||
Trading account securities, at fair value | 436,331 | 272,939 | 546,713 | 163,392 | ||||||||||||
Investment securities available-for-sale, at fair value | 5,009,823 | 5,226,529 | 5,236,852 | (216,706 | ) | |||||||||||
Investment securities held-to-maturity, at amortized cost | 125,383 | 128,546 | 122,354 | (3,163 | ) | |||||||||||
Other investment securities, at lower of cost or realizable value | 179,880 | 173,569 | 163,513 | 6,311 | ||||||||||||
Loans held-for-sale, at lower of cost or fair value | 363,093 | 368,777 | 893,938 | (5,684 | ) | |||||||||||
Loans held-in-portfolio: | ||||||||||||||||
Loans not covered under loss sharing agreements with the FDIC | 20,602,596 | 20,673,886 | 20,728,035 | (71,290 | ) | |||||||||||
Loans covered under loss sharing agreements with the FDIC | 4,348,703 | 4,512,423 | 4,836,882 | (163,720 | ) | |||||||||||
Less - Allowance for loan losses | (815,308 | ) | (772,921 | ) | (793,225 | ) | (42,387 | ) | ||||||||
Total loans held-in-portfolio, net | 24,135,991 | 24,413,388 | 24,771,692 | (277,397 | ) | |||||||||||
FDIC loss share asset | 1,915,128 | 1,895,059 | 2,410,219 | 20,069 | ||||||||||||
Premises and equipment, net | 538,486 | 536,529 | 545,453 | 1,957 | ||||||||||||
Other real estate not covered under loss sharing agreements with the FDIC | 172,497 | 166,285 | 161,496 | 6,212 | ||||||||||||
Other real estate covered under loss sharing agreements with the FDIC | 109,135 | 84,839 | 57,565 | 24,296 | ||||||||||||
Accrued income receivable | 125,209 | 134,263 | 150,658 | (9,054 | ) | |||||||||||
Mortgage servicing assets, at fair value | 151,323 | 157,226 | 166,907 | (5,903 | ) | |||||||||||
Other assets | 1,462,393 | 2,168,529 | 1,449,887 | (706,136 | ) | |||||||||||
Goodwill | 648,350 | 648,353 | 647,387 | (3 | ) | |||||||||||
Other intangible assets | 63,954 | 64,212 | 58,696 | (258 | ) | |||||||||||
Total assets | $ | 37,348,432 | $ | 38,275,323 | $ | 38,814,998 | $ | (926,891 | ) | |||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||
Liabilities: | ||||||||||||||||
Deposits: | ||||||||||||||||
Non-interest bearing | $ | 5,655,474 | $ | 5,527,450 | $ | 4,939,321 | $ | 128,024 | ||||||||
Interest bearing | 22,286,653 | 22,425,890 | 21,822,879 | (139,237 | ) | |||||||||||
Total deposits | 27,942,127 | 27,953,340 | 26,762,200 | (11,213 | ) | |||||||||||
Federal funds purchased and assets sold under agreements to repurchase | 2,141,097 | 2,601,606 | 2,412,550 | (460,509 | ) | |||||||||||
Other short-term borrowings | 296,200 | 166,200 | 364,222 | 130,000 | ||||||||||||
Notes payable | 1,856,372 | 2,550,745 | 4,170,183 | (694,373 | ) | |||||||||||
Other liabilities | 1,193,883 | 990,831 | 1,305,312 | 203,052 | ||||||||||||
Total liabilities | 33,429,679 | 34,262,722 | 35,014,467 | (833,043 | ) | |||||||||||
Stockholders’ equity: | ||||||||||||||||
Preferred stock | 50,160 | 50,160 | 50,160 | - | ||||||||||||
Common stock | 10,263 | 10,249 | 10,229 | 14 | ||||||||||||
Surplus | 4,101,661 | 4,099,379 | 4,094,005 | 2,282 | ||||||||||||
Accumulated deficit | (199,726 | ) | (201,770 | ) | (347,328 | ) | 2,044 | |||||||||
Treasury stock | (1,057 | ) | (992 | ) | (574 | ) | (65 | ) | ||||||||
Accumulated other comprehensive (loss) income |
(42,548 | ) | 55,575 | (5,961 | ) | (98,123 | ) | |||||||||
Total stockholders’ equity | 3,918,753 | 4,012,601 | 3,800,531 | (93,848 | ) | |||||||||||
Total liabilities and stockholders’ equity | $ | 37,348,432 | $ | 38,275,323 | $ | 38,814,998 | $ | (926,891 | ) | |||||||
Popular, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | |||||||||||||||||||||||||||||||||||||||||||||||||||
Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Quarter |
Quarter ended | Quarter ended | Quarter ended | Variance | Variance | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2011 | September 30, 2011 | December 31, 2010 | Q4 2011 vs Q3 2011 | Q4 2011 vs Q4 2010 | |||||||||||||||||||||||||||||||||||||||||||||||
Average | Income / | Yield / | Average | Income / | Yield / | Average | Income / | Yield / | Average | Income / | Yield / | Average | Income / | Yield / | |||||||||||||||||||||||||||||||||||||
($ amounts in millions; yields not on a taxable equivalent basis) | balance | Expense | Rate | balance | Expense | Rate | balance | Expense | Rate | balance | Expense | Rate | balance | Expense | Rate | ||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Money market, trading and investment securities | $ | 6,635 | $ | 53.9 | 3.24 | % | $ | 7,540 | $ | 62.8 | 3.32 | % | $ | 7,654 | $ | 61.8 | 3.22 | % | ($905 | ) | ($8.9 | ) | (0.08 | ) | % | ($1,019 | ) | ($7.9 | ) | 0.02 | % | ||||||||||||||||||||
Loans not covered under loss sharing agreements with the FDIC: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 10,596 | 131.4 | 4.92 | 10,690 | 134.1 | 4.98 | 11,532 | 147.0 | 5.06 | (94 | ) | (2.7 | ) | (0.06 | ) | (936 | ) | (15.6 | ) | (0.14 | ) | ||||||||||||||||||||||||||||||
Construction | 564 | 2.3 | 1.59 | 698 | 2.5 | 1.45 | 1,208 | 6.3 | 2.05 | (134 | ) | (0.2 | ) | 0.14 | (644 | ) | (4.0 | ) | (0.46 | ) | |||||||||||||||||||||||||||||||
Mortgage | 5,402 | 70.5 | 5.22 | 5,326 | 78.7 | 5.91 | 4,743 | 70.1 | 5.91 | 76 | (8.2 | ) | (0.69 | ) | 659 | 0.4 | (0.69 | ) | |||||||||||||||||||||||||||||||||
Consumer | 3,680 | 95.0 | 10.25 | 3,656 | 95.1 | 10.32 | 3,726 | 97.9 | 10.43 | 24 | (0.1 | ) | (0.07 | ) | (46 | ) | (2.9 | ) | (0.18 | ) | |||||||||||||||||||||||||||||||
Lease financing | 562 | 11.9 | 8.44 | 572 | 12.8 | 8.93 | 601 | 13.4 | 8.94 | (10 | ) | (0.9 | ) | (0.49 | ) | (39 | ) | (1.5 | ) | (0.50 | ) | ||||||||||||||||||||||||||||||
Total loans not covered under loss sharing agreements with the FDIC | 20,804 | 311.1 | 5.95 | 20,942 | 323.2 | 6.14 | 21,810 | 334.7 | 6.10 | (138 | ) | (12.1 | ) | (0.19 | ) | (1,006 | ) | (23.6 | ) | (0.15 | ) | ||||||||||||||||||||||||||||||
Loans covered under loss sharing agreements with the FDIC | 4,401 | 88.4 | 7.99 | 4,557 | 105.8 | 9.23 | 4,974 | 110.7 | 8.84 | (156 | ) | (17.4 | ) | (1.24 | ) | (573 | ) | (22.3 | ) | (0.85 | ) | ||||||||||||||||||||||||||||||
Total loans | 25,205 | 399.5 | 6.30 | 25,499 | 429.0 | 6.69 | 26,784 | 445.4 | 6.61 | (294 | ) | (29.5 | ) | (0.39 | ) | (1,579 | ) | (45.9 | ) | (0.31 | ) | ||||||||||||||||||||||||||||||
Total interest earning assets | 31,840 | $ | 453.4 | 5.66 | % | 33,039 | $ | 491.8 | 5.92 | % | 34,438 | $ | 507.2 | 5.86 | % | (1,199 | ) | ($38.4 | ) | (0.26 | ) | % | (2,598 | ) | ($53.8 | ) | (0.20 | ) | % | ||||||||||||||||||||||
Allowance for loan losses | (751 | ) | (749 | ) | (1,188 | ) | (2 | ) | 437 | ||||||||||||||||||||||||||||||||||||||||||
Other non-interest earning assets | 5,655 | 5,704 | 6,177 | (49 | ) | (522 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Total average assets | $ | 36,744 | $ | 37,994 | $ | 39,427 | ($1,250 | ) | ($2,683 | ) | |||||||||||||||||||||||||||||||||||||||||
Liabilities and Stockholders' Equity: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest bearing deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||
NOW and money market | $ | 5,199 | $ | 6.4 | 0.49 | % | $ | 5,284 | $ | 7.3 | 0.55 | % | $ | 4,933 | $ | 9.1 | 0.74 | % | ($85 | ) | ($0.9 | ) | (0.06 | ) | % | $ | 266 | ($2.7 | ) | (0.25 | ) | % | |||||||||||||||||||
Savings | 6,475 | 6.4 | 0.39 | 6,307 | 8.6 | 0.54 | 6,234 | 13.7 | 0.87 | 168 | (2.2 | ) | (0.15 | ) | 241 | (7.3 | ) | (0.48 | ) | ||||||||||||||||||||||||||||||||
Time deposits | 10,685 | 43.3 | 1.61 | 10,876 | 50.0 | 1.82 | 10,966 | 58.1 | 2.10 | (191 | ) | (6.7 | ) | (0.21 | ) | (281 | ) | (14.8 | ) | (0.49 | ) | ||||||||||||||||||||||||||||||
Total interest bearing deposits | 22,359 | 56.1 | 0.99 | 22,467 | 65.9 | 1.16 | 22,133 | 80.9 | 1.45 | (108 | ) | (9.8 | ) | (0.17 | ) | 226 | (24.8 | ) | (0.46 | ) | |||||||||||||||||||||||||||||||
Borrowings | 4,507 | 52.5 | 4.65 | 5,675 | 56.6 | 3.98 | 7,224 | 71.7 | 3.96 | (1,168 | ) | (4.1 | ) | 0.67 | (2,717 | ) | (19.2 | ) | 0.69 | ||||||||||||||||||||||||||||||||
Total interest bearing liabilities | 26,866 | 108.6 | 1.61 | 28,142 | 122.5 | 1.73 | 29,357 | 152.6 | 2.07 | (1,276 | ) | (13.9 | ) | (0.12 | ) | (2,491 | ) | (44.0 | ) | (0.46 | ) | ||||||||||||||||||||||||||||||
Net interest spread | 4.05 | % | 4.19 | % | 3.79 | % | (0.14 | ) | % | 0.26 | % | ||||||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | 5,165 | 5,095 | 5,011 | 70 | 154 | ||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 895 | 956 | 1,175 | (61 | ) | (280 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Stockholders' equity | 3,818 | 3,801 | 3,884 | 17 | (66 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Total average liabilities and stockholders' equity | $ | 36,744 | $ | 37,994 | $ | 39,427 | ($1,250 | ) | ($2,683 | ) | |||||||||||||||||||||||||||||||||||||||||
Net interest income / margin non-taxable equivalent basis | $ | 344.8 | 4.30 | % | $ | 369.3 | 4.45 | % | $ | 354.6 | 4.10 | % | ($24.5 | ) | (0.15 | ) | % | ($9.8 | ) | 0.20 | % | ||||||||||||||||||||||||||||||
Popular, Inc. | ||||||||||||||||||||||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | ||||||||||||||||||||||||||||||||
Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Year-to-date |
Year ended | Year ended | Variance | |||||||||||||||||||||||||||||
December 31, 2011 | December 31, 2010 | YTD 2011 vs. 2010 | ||||||||||||||||||||||||||||||
Average | Income / | Yield / | Average | Income / | Yield / | Average | Income / | Yield / | ||||||||||||||||||||||||
($ amounts in millions; yields not on a taxable equivalent basis) | balance | Expense | Rate | balance | Expense | Rate | balance | Expense | Rate | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||||||||||
Money market, trading and investment securities | $ | 7,314 | $ | 243.1 | 3.32 | % | $ | 8,332 | $ | 271.5 | 3.26 | % | ($1,018 | ) | ($28.4 | ) | 0.06 | % | ||||||||||||||
Loans not covered under loss sharing agreements with the FDIC: | ||||||||||||||||||||||||||||||||
Commercial | 10,889 | 541.9 | 4.98 | 11,889 | 613.8 | 5.16 | (1,000 | ) | (71.9 | ) | (0.18 | ) | ||||||||||||||||||||
Construction | 731 | 10.8 | 1.48 | 1,458 | 29.5 | 2.03 | (727 | ) | (18.7 | ) | (0.55 | ) | ||||||||||||||||||||
Mortgage | 5,153 | 302.0 | 5.86 | 4,627 | 274.5 | 5.93 | 526 | 27.5 | (0.07 | ) | ||||||||||||||||||||||
Consumer | 3,654 | 376.2 | 10.30 | 3,854 | 400.7 | 10.40 | (200 | ) | (24.5 | ) | (0.10 | ) | ||||||||||||||||||||
Lease financing | 577 | 50.8 | 8.81 | 629 | 55.1 | 8.77 | (52 | ) | (4.3 | ) | 0.04 | |||||||||||||||||||||
Total loans not covered under loss sharing agreements with the FDIC | 21,004 | 1,281.7 | 6.10 | 22,457 | 1,373.6 | 6.12 | (1,453 | ) | (91.9 | ) | (0.02 | ) | ||||||||||||||||||||
Loans covered under loss sharing agreements with the FDIC | 4,613 | 412.7 | 8.95 | 3,365 | 303.1 | 9.01 | 1,248 | 109.6 | (0.06 | ) | ||||||||||||||||||||||
Total loans | 25,617 | 1,694.4 | 6.61 | 25,822 | 1,676.7 | 6.49 | (205 | ) | 17.7 | 0.12 | ||||||||||||||||||||||
Total interest earning assets | 32,931 | $ | 1,937.5 | 5.88 | % | 34,154 | $ | 1,948.2 | 5.70 | % | (1,223 | ) | ($10.7 | ) | 0.18 | % | ||||||||||||||||
Allowance for loan losses | (746 | ) | (1,236 | ) | 490 | |||||||||||||||||||||||||||
Other non-interest earning assets | 5,881 | 5,461 | 420 | |||||||||||||||||||||||||||||
Total average assets | $ | 38,066 | $ | 38,379 | ($313 | ) | ||||||||||||||||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||||||||||
NOW and money market | $ | 5,204 | $ | 31.0 | 0.60 | % | $ | 4,981 | $ | 39.8 | 0.80 | % | $ | 223 | ($8.8 | ) | (0.20 | ) | % | |||||||||||||
Savings | 6,321 | 37.5 | 0.59 | 5,970 | 54.0 | 0.90 | 351 | (16.5 | ) | (0.31 | ) | |||||||||||||||||||||
Time deposits | 10,920 | 201.0 | 1.84 | 10,967 | 257.1 | 2.34 | (47 | ) | (56.1 | ) | (0.50 | ) | ||||||||||||||||||||
Total interest bearing deposits | 22,445 | 269.5 | 1.20 | 21,918 | 350.9 | 1.60 | 527 | (81.4 | ) | (0.40 | ) | |||||||||||||||||||||
Borrowings | 5,847 | 236.0 | 4.04 | 7,448 | 302.4 | 4.06 | (1,601 | ) | (66.4 | ) | (0.02 | ) | ||||||||||||||||||||
Total interest bearing liabilities | 28,292 | 505.5 | 1.79 | 29,366 | 653.3 | 2.22 | (1,074 | ) | (147.8 | ) | (0.43 | ) | ||||||||||||||||||||
Net interest spread | 4.09 | % | 3.48 | % | 0.61 | % | ||||||||||||||||||||||||||
Non-interest bearing deposits | 5,058 | 4,732 | 326 | |||||||||||||||||||||||||||||
Other liabilities | 983 | 1,022 | (39 | ) | ||||||||||||||||||||||||||||
Stockholders' equity | 3,733 | 3,259 | 474 | |||||||||||||||||||||||||||||
Total average liabilities and stockholders' equity | $ | 38,066 | $ | 38,379 | ($313 | ) | ||||||||||||||||||||||||||
Net interest income / margin non-taxable equivalent basis | $ | 1,432.0 | 4.34 | % | $ | 1,294.9 | 3.79 | % | $ | 137.1 | 0.55 | % | ||||||||||||||||||||
Popular, Inc. | ||||||||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | ||||||||||||||||||
Table F - Breakdown of Other Service Fees | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Quarters ended |
Variance | Variance | ||||||||||||||||
December 31, | September 30, | December 31, | Q4 2011 vs. | Q4 2011 vs. | ||||||||||||||
(In thousands) | 2011 | 2011 | 2010 | Q3 2011 | Q4 2010 | |||||||||||||
Other service fees: | ||||||||||||||||||
Debit card fees | $ | 9,664 | $ | 13,075 | $ | 17,159 | $ | (3,411 | ) | $ | (7,495 | ) | ||||||
Insurance fees | 16,471 | 13,785 | 14,839 | 2,686 | 1,632 | |||||||||||||
Credit card fees and discounts | 12,943 | 13,738 | 11,094 | (795 | ) | 1,849 | ||||||||||||
Sale and administration of investment products | 9,686 | 9,915 | 8,992 | (229 | ) | 694 | ||||||||||||
Mortgage servicing fees, net of fair value adjustments | 1,449 | 2,120 | 9,314 | (671 | ) | (7,865 | ) | |||||||||||
Trust fees | 3,722 | 4,006 | 4,049 | (284 | ) | (327 | ) | |||||||||||
Processing fees | 1,718 | 1,684 | 1,665 | 34 | 53 | |||||||||||||
Other fees | 4,444 | 4,341 | 4,525 | 103 | (81 | ) | ||||||||||||
Total other service fees | $ | 60,097 | $ | 62,664 | $ | 71,637 | $ | (2,567 | ) | $ | (11,540 | ) | ||||||
Year ended | ||||||||||||||||||
December 31, | December 31, | Variance | ||||||||||||||||
(In thousands) | 2011 | 2010 | 2011 vs. 2010 | |||||||||||||||
Other service fees: | ||||||||||||||||||
Debit card fees | $ | 49,459 | $ | 100,639 | $ | (51,180 | ) | |||||||||||
Insurance fees | 54,390 | 49,768 | 4,622 | |||||||||||||||
Credit card fees and discounts | 49,049 | 84,786 | (35,737 | ) | ||||||||||||||
Sale and administration of investment products | 34,388 | 37,783 | (3,395 | ) | ||||||||||||||
Mortgage servicing fees, net of fair value adjustments | 12,098 | 24,801 | (12,703 | ) | ||||||||||||||
Trust fees | 15,333 | 14,217 | 1,116 | |||||||||||||||
Processing fees | 6,839 | 45,055 | (38,216 | ) | ||||||||||||||
Other fees | 18,164 | 20,455 | (2,291 | ) | ||||||||||||||
Total other service fees | $ | 239,720 | $ | 377,504 | $ | (137,784 | ) | |||||||||||
Popular, Inc. | |||||||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | |||||||||||||||||
Table G - Loans and Deposits | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Loans - Ending Balances | |||||||||||||||||
Variance | |||||||||||||||||
(in thousands) | December 31, 2011 | September 30, 2011 | December 31, 2010 | Q4 2011 vs. Q3 2011 | Q4 2011 vs. Q4 2010 | ||||||||||||
Loans not covered under FDIC loss sharing agreements: | |||||||||||||||||
Commercial | $ | 10,534,886 | $ | 10,588,919 | $ | 11,393,485 | $ | (54,033 | ) | $ | (858,599 | ) | |||||
Construction | 311,628 | 358,060 | 500,851 | (46,432 | ) | (189,223 | ) | ||||||||||
Lease financing | 563,867 | 571,068 | 602,993 | (7,201 | ) | (39,126 | ) | ||||||||||
Mortgage | 5,518,460 | 5,466,503 | 4,524,722 | 51,957 | 993,738 | ||||||||||||
Consumer | 3,673,755 | 3,689,336 | 3,705,984 | (15,581 | ) | (32,229 | ) | ||||||||||
Total non-covered loans held-in-portfolio | $ | 20,602,596 | $ | 20,673,886 | $ | 20,728,035 | $ | (71,290 | ) | $ | (125,439 | ) | |||||
Loans covered under FDIC loss sharing agreements | 4,348,703 | 4,512,423 | 4,836,882 | (163,720 | ) | (488,179 | ) | ||||||||||
Total loans held-in-portfolio | $ | 24,951,299 | $ | 25,186,309 | $ | 25,564,917 | $ | (235,010 | ) | $ | (613,618 | ) | |||||
Loans held-for-sale: | |||||||||||||||||
Commercial | $ | 26,198 | $ | 24,191 | $ | 60,528 | $ | 2,007 | $ | (34,330 | ) | ||||||
Construction | 236,045 | 234,336 | 412,744 | 1,709 | (176,699 | ) | |||||||||||
Mortgage | 100,850 | 110,250 | 420,666 | (9,400 | ) | (319,816 | ) | ||||||||||
Total loans held-for-sale | 363,093 | 368,777 | 893,938 | (5,684 | ) | (530,845 | ) | ||||||||||
Total loans | $ | 25,314,392 | $ | 25,555,086 | $ | 26,458,855 | $ | (240,694 | ) | $ | (1,144,463 | ) | |||||
Deposits - Ending Balances | |||||||||||||||||
Variance | |||||||||||||||||
(In thousands) | December 31, 2011 | September 30, 2011 | December 31, 2010 | Q4 2011 vs. Q3 2011 | Q4 2011 vs. Q4 2010 | ||||||||||||
Demand deposits [1] | $ | 6,256,530 | $ | 6,149,514 | $ | 5,501,430 | $ | 107,016 | $ | 755,100 | |||||||
Savings, NOW and money market deposits (non-brokered) | 10,762,869 | 10,787,782 | 10,371,580 | (24,913 | ) | 391,289 | |||||||||||
Savings, NOW and money market deposits (brokered) | 212,688 | 100,002 | - | 112,686 | 212,688 | ||||||||||||
Time deposits (non-brokered) | 7,552,434 | 8,005,247 | 8,594,759 | (452,813 | ) | (1,042,325 | ) | ||||||||||
Time deposits (brokered CDs) | 3,157,606 | 2,910,795 | 2,294,431 | 246,811 | 863,175 | ||||||||||||
Total deposits | $ | 27,942,127 | $ | 27,953,340 | $ | 26,762,200 | $ | (11,213 | ) | $ | 1,179,927 | ||||||
[1] Includes interest and non-interest bearing deposits. | |||||||||||||||||
Popular, Inc. | |||||||||||||||||||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | |||||||||||||||||||||||||||||
Table H - Non-Performing Assets | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
Variance | |||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2011 |
As a percentage |
September 30, 2011 |
As a percentage |
December 31, 2010 |
As a percentage |
Q4 2011 vs. |
Q4 2011 vs. |
|||||||||||||||||||||
Commercial | $ | 872,873 | 8.3 | % | $ | 872,581 | 8.2 | % | $ | 725,027 | 6.4 | % | $ | 292 | $ | 147,846 | |||||||||||||
Construction | 128,999 | 41.4 | 187,914 | 52.5 | 238,554 | 47.6 | (58,915 | ) | (109,555 | ) | |||||||||||||||||||
Lease financing | 5,808 | 1.0 | 4,194 | 0.7 | 5,937 | 1.0 | 1,614 | (129 | ) | ||||||||||||||||||||
Mortgage | 686,502 | 12.4 | 617,723 | 11.3 | 542,033 | 12.0 | 68,779 | 144,469 | |||||||||||||||||||||
Consumer | 43,668 | 1.2 | 49,259 | 1.3 | 60,302 | 1.6 | (5,591 | ) | (16,634 | ) | |||||||||||||||||||
Total non-performing loans held-in- | |||||||||||||||||||||||||||||
portfolio, excluding covered loans | 1,737,850 | 8.4 | % | 1,731,671 | 8.4 | % | 1,571,853 | 7.6 | % | 6,179 | 165,997 | ||||||||||||||||||
Non-performing loans held-for-sale [1] | 262,302 | 259,776 | 671,757 | 2,526 | (409,455 | ) | |||||||||||||||||||||||
Other real estate owned (“OREO”), | |||||||||||||||||||||||||||||
excluding covered OREO | 172,497 | 166,285 | 161,496 | 6,212 | 11,001 | ||||||||||||||||||||||||
Total non-performing assets, | |||||||||||||||||||||||||||||
excluding covered assets | 2,172,649 | 2,157,732 | 2,405,106 | 14,917 | (232,457 | ) | |||||||||||||||||||||||
Covered loans and OREO | 192,771 | 95,801 | 83,539 | 96,970 | 109,232 | ||||||||||||||||||||||||
Total non-performing assets | $ | 2,365,420 | $ | 2,253,533 | $ | 2,488,645 | $ | 111,887 | $ | (123,225 | ) | ||||||||||||||||||
Accruing loans past due 90 days or more [2] | $ | 316,614 | $ | 329,473 | $ | 338,359 |
$ |
(12,859 |
) |
$ |
(21,745 |
) |
|||||||||||||||||
Ratios excluding covered loans: | |||||||||||||||||||||||||||||
Non-performing loans held-in-portfolio | |||||||||||||||||||||||||||||
to loans held-in-portfolio | 8.44 |
% |
|
8.38 | % | 7.58 | % | ||||||||||||||||||||||
Allowance for loan losses to loans | |||||||||||||||||||||||||||||
held-in-portfolio | 3.35 | 3.35 | 3.83 | ||||||||||||||||||||||||||
Allowance for loan losses to | |||||||||||||||||||||||||||||
non-performing loans, excluding | |||||||||||||||||||||||||||||
held-for-sale | 39.73 | 39.99 | 50.46 | ||||||||||||||||||||||||||
Ratios including covered loans: | |||||||||||||||||||||||||||||
Non-performing loans held-in-portfolio | |||||||||||||||||||||||||||||
to loans held-in-portfolio | 7.30 |
% |
|
6.92 | % | 6.25 | % | ||||||||||||||||||||||
Allowance for loan losses to loans | |||||||||||||||||||||||||||||
held-in-portfolio | 3.27 | 3.07 | 3.10 | ||||||||||||||||||||||||||
Allowance for loan losses to non-performing | |||||||||||||||||||||||||||||
loans, excluding held-for-sale | 44.76 | 44.35 | 49.64 | ||||||||||||||||||||||||||
[1] Non-performing loans held-for-sale as of December 31, 2011 consisted of $236 million in construction loans, $26 million in commercial loans and none in mortgage loans (September 30, 2011 - $235 million, $24 million and $1 million, respectively; December 31, 2010 - $412 million, $61 million, and $199 million, respectively). |
|||||||||||||||||||||||||||||
[2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to nonperforming since the principal repayment is insured. These balances include $51 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2011. | |||||||||||||||||||||||||||||
Popular, Inc. | ||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | ||||||||||||
Table I - Activity in Non-performing Loans | ||||||||||||
(Unaudited) | ||||||||||||
Commercial loans held-in-portfolio: | ||||||||||||
Quarter ended | Quarter ended | Quarter ended | ||||||||||
December 31, 2011 | December 31, 2011 | December 31, 2011 | ||||||||||
(In thousands) | BPPR | BPNA | Popular, Inc. | |||||||||
Beginning Balance NPLs - September 30, 2011 | $ | 652,937 | $ | 219,644 | $ | 872,581 | ||||||
Plus: | ||||||||||||
New non-performing loans | 93,404 | 76,627 | 170,031 | |||||||||
Advances on existing non-performing loans | - | 34 | 34 | |||||||||
Less: | ||||||||||||
Non-performing loans transferred to OREO | (4,685 | ) | (3,378 | ) | (8,063 | ) | ||||||
Non-performing loans charged-off | (50,281 | ) | (33,350 | ) | (83,631 | ) | ||||||
Loans returned to accrual status / loan collections | (60,204 | ) | (12,399 | ) | (72,603 | ) | ||||||
Loans transferred to held-for-sale | - | (5,476 | ) | (5,476 | ) | |||||||
Ending balance NPLs - December 31, 2011 | $ | 631,171 | $ | 241,702 | $ | 872,873 | ||||||
Construction loans held-in-portfolio: | ||||||||||||
Quarter ended | Quarter ended | Quarter ended | ||||||||||
December 31, 2011 | December 31, 2011 | December 31, 2011 | ||||||||||
(In thousands) | BPPR | BPNA | Popular, Inc. | |||||||||
Beginning Balance NPLs - September 30, 2011 | $ | 64,971 | $ | 122,943 | $ | 187,914 | ||||||
Plus: | ||||||||||||
New non-performing loans | 7,385 | - | 7,385 | |||||||||
Advances on existing non-performing loans | - | 34 | 34 | |||||||||
Less: | ||||||||||||
Non-performing loans transferred to OREO | - | (13,149 | ) | (13,149 | ) | |||||||
Non-performing loans charged-off | (3,689 | ) | (7,905 | ) | (11,594 | ) | ||||||
Loans returned to accrual status / loan collections | (14,808 | ) | (19,239 | ) | (34,047 | ) | ||||||
Loans transferred to held-for-sale | - | (7,544 | ) | (7,544 | ) | |||||||
Ending balance NPLs - December 31, 2011 | $ | 53,859 | $ | 75,140 | $ | 128,999 | ||||||
Commercial loans held-in-portfolio: | ||||||||||||
Quarter ended | Quarter ended | Quarter ended | ||||||||||
September 30, 2011 | September 30, 2011 | September 30, 2011 | ||||||||||
(In thousands) | BPPR | BPNA | Popular, Inc. | |||||||||
Beginning Balance NPLs - June 30, 2011 | $ | 557,421 | $ | 227,166 | $ | 784,587 | ||||||
Plus: | ||||||||||||
New non-performing loans | 197,365 | 68,810 | 266,175 | |||||||||
Advances on existing non-performing loans | 4,864 | 226 | 5,090 | |||||||||
Less: | ||||||||||||
Non-performing loans transferred to OREO | (2,171 | ) | (4,604 | ) | (6,775 | ) | ||||||
Non-performing loans charged-off | (58,510 | ) | (36,055 | ) | (94,565 | ) | ||||||
Loans returned to accrual status / loan collections | (22,165 | ) | (35,899 | ) | (58,064 | ) | ||||||
Loans transferred to held-for-sale | (23,867 | ) | - | (23,867 | ) | |||||||
Ending balance NPLs - September 30, 2011 | $ | 652,937 | $ | 219,644 | $ | 872,581 | ||||||
Construction loans held-in-portfolio: | ||||||||||||
Quarter ended | Quarter ended | Quarter ended | ||||||||||
September 30, 2011 | September 30, 2011 | September 30, 2011 | ||||||||||
(In thousands) | BPPR | BPNA | Popular, Inc. | |||||||||
Beginning Balance NPLs - June 30, 2011 | $ | 58,691 | $ | 139,544 | $ | 198,235 | ||||||
Plus: | ||||||||||||
New non-performing loans | 14,324 | 7,829 | 22,153 | |||||||||
Advances on existing non-performing loans | 2,116 | 101 | 2,217 | |||||||||
Less: | ||||||||||||
Non-performing loans transferred to OREO | - | (2,824 | ) | (2,824 | ) | |||||||
Non-performing loans charged-off | (563 | ) | (8,554 | ) | (9,117 | ) | ||||||
Loans returned to accrual status / loan collections | (9,597 | ) | (13,153 | ) | (22,750 | ) | ||||||
Loans transferred to held-for-sale | - |
- |
- |
|||||||||
Ending balance NPLs - September 30, 2011 | $ | 64,971 | $ | 122,943 | $ | 187,914 | ||||||
Popular, Inc. | |||||||||||||||||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | |||||||||||||||||||||||||||
Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Quarter ended | Quarter ended | Quarter ended | |||||||||||||||||||||||||
December 31, | September 30, | December 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2011 | 2011 | 2011 | 2011 | 2011 | 2011 | 2010 | ||||||||||||||||||||
Non-covered loans |
Covered loans |
Total |
Non-covered loans |
Covered loans |
Total | Total [1] | |||||||||||||||||||||
Balance at beginning of period | $ | 692,500 | $ | 80,421 | $ | 772,921 | $ | 689,678 | $ | 57,169 | $ | 746,847 | $ | 1,243,994 | |||||||||||||
Provision for loan losses | 123,908 | 55,900 | 179,808 | 150,703 | 25,573 | 176,276 | 354,409 | ||||||||||||||||||||
816,408 | 136,321 | 952,729 | 840,381 | 82,742 | 923,123 | 1,598,403 | |||||||||||||||||||||
Net loans charged-off (recovered): | |||||||||||||||||||||||||||
Commercial BPPR | 48,428 | 10,526 | 58,954 | 58,509 | 1,278 | 59,787 | 109,348 | ||||||||||||||||||||
Commercial BPNA | 26,019 | - | 26,019 | 22,892 | - | 22,892 | 78,398 | ||||||||||||||||||||
Construction BPPR | 3,820 | 8 | 3,828 | (81) | (1,500) | (1,581) | 176,449 | ||||||||||||||||||||
Construction BPNA | 4,044 | - | 4,044 | 3,664 | - | 3,664 | 43,098 | ||||||||||||||||||||
Lease financing BPPR | 1,233 | - | 1,233 | 401 | - | 401 | 1,097 | ||||||||||||||||||||
Lease financing BPNA | (36) | - | (36) | 25 | - | 25 | 326 | ||||||||||||||||||||
Mortgage BPPR | 5,236 | 746 | 5,982 | 7,560 | 65 | 7,625 | 7,169 | ||||||||||||||||||||
Mortgage BPNA | 3,501 | - | 3,501 | 6,086 | - | 6,086 | 11,596 | ||||||||||||||||||||
Consumer BPPR | 19,592 | 96 | 19,688 | 23,278 | 2,478 | 25,756 | 31,757 | ||||||||||||||||||||
Consumer BPNA | 14,208 | - | 14,208 | 12,841 | - | 12,841 | 18,733 | ||||||||||||||||||||
126,045 | 11,376 | 137,421 | 135,175 | 2,321 | 137,496 | 477,971 | |||||||||||||||||||||
Net write-downs (recoveries) related to loans transferred to loans held-for-sale | - | - | - | 12,706 | - | 12,706 | 327,207 | ||||||||||||||||||||
Balance at end of period | $ | 690,363 | $ | 124,945 | $ | 815,308 | $ | 692,500 | $ | 80,421 | $ | 772,921 | $ | 793,225 | |||||||||||||
Ratios: | |||||||||||||||||||||||||||
Annualized net charge-offs to average loans | |||||||||||||||||||||||||||
held-in-portfolio | 2.46 | % | 2.21 | % | 2.64 | % | 2.20 | % | 7.17 | % | |||||||||||||||||
Provision for loan losses to net charge-offs | 0.98 | x | 1.31 | x | 1.11 | x | 1.28 | x | 0.74 | x | |||||||||||||||||
[1] There was no allowance for loan losses on covered loans as of December 31, 2010. The ratio of annualized net charge-offs to average loans held-in-portfolio, excluding covered loans, was 8.82% for the quarter ended December 31, 2010. | |||||||||||||||||||||||||||
Year ended | Year ended | ||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||
(Dollars in thousands) | 2011 | 2011 | 2011 | 2010 | |||||||||||||||||||||||
Non-covered |
Covered |
Total | Total [1] | ||||||||||||||||||||||||
Balance at beginning of period | $ | 793,225 | $ | - | $ | 793,225 | $ | 1,261,204 | |||||||||||||||||||
Provision for loan losses | 430,085 | 145,635 | 575,720 | 1,011,880 | |||||||||||||||||||||||
1,223,310 | 145,635 | 1,368,945 | 2,273,084 | ||||||||||||||||||||||||
Net loans charged-off (recovered): | |||||||||||||||||||||||||||
Commercial BPPR | 195,388 | 13,774 | 209,162 | 231,133 | |||||||||||||||||||||||
Commercial BPNA | 114,214 | - | 114,214 | 207,163 | |||||||||||||||||||||||
Construction BPPR | 5,816 | 2,853 | 8,669 | 289,150 | |||||||||||||||||||||||
Construction BPNA | 17,443 | - | 17,443 | 105,837 | |||||||||||||||||||||||
Lease financing BPPR | 3,444 | - | 3,444 | 6,459 | |||||||||||||||||||||||
Lease financing BPNA | 167 | - | 167 | 3,968 | |||||||||||||||||||||||
Mortgage BPPR | 27,624 | 811 | 28,435 | 21,712 | |||||||||||||||||||||||
Mortgage BPNA | 14,187 | - | 14,187 | 73,067 | |||||||||||||||||||||||
Consumer BPPR | 98,647 | 3,252 | 101,899 | 131,783 | |||||||||||||||||||||||
Consumer BPNA | 57,118 | - | 57,118 | 82,380 | |||||||||||||||||||||||
534,048 | 20,690 | 554,738 | 1,152,652 | ||||||||||||||||||||||||
Net write-downs (recoveries) related to loans transferred to loans held-for-sale | (1,101) | - | (1,101) | 327,207 | |||||||||||||||||||||||
Balance at end of period | $ | 690,363 | $ | 124,945 | $ | 815,308 | $ | 793,225 | |||||||||||||||||||
Ratios: | |||||||||||||||||||||||||||
Net charge-offs to average loans held-in-portfolio | 2.61 | % | 2.21 | % | 4.48 | % | |||||||||||||||||||||
Provision for loan losses to net charge-offs | 0.81 | x | 1.04 | x | 0.88 | x | |||||||||||||||||||||
[1] There was no allowance for loan losses on covered loans as of December 31, 2010. The ratio of annualized net charge-offs to average loans held-in-portfolio, excluding covered loans, was 5.15% for the year ended December 31, 2010. | |||||||||||||||||||||||||||
Popular, Inc. | |||||||||||||||||||||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | |||||||||||||||||||||||||||||||
Table K - Allowance for Loan Losses - Breakdown of general and specific reserves - CONSOLIDATED | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction |
Lease |
Mortgage | Consumer | Total | [2] | ||||||||||||||||||||||||
Specific ALLL | $ | 8,874 | $ | - | $ | 793 | $ | 29,063 | $ | 17,046 | $ | 55,776 | |||||||||||||||||||
Impaired loans | [1] | $ |
530,498 |
$ | 120,580 | $ | 6,104 | $ | 382,880 | $ | 140,108 | $ |
1,180,170 |
||||||||||||||||||
Specific ALLL to impaired loans | [1] | 1.67 | % | - | % | 12.99 | % | 7.59 | % | 12.17 | % | 4.73 | % | ||||||||||||||||||
General ALLL | $ | 401,414 | $ | 13,613 | $ | 4,098 | $ | 73,198 | $ | 142,264 | $ | 634,587 | |||||||||||||||||||
Loans held-in-portfolio, excluding impaired loans | [1] | $ |
10,004,388 |
$ | 191,048 | $ | 557,763 | $ | 5,135,580 | $ | 3,533,647 | $ |
19,422,426 |
||||||||||||||||||
General ALLL to loans held-in-portfolio, excluding impaired loans | [1] | 4.01 | % | 7.13 | % | 0.73 | % | 1.43 | % | 4.03 | % | 3.27 | % | ||||||||||||||||||
Total ALLL | $ | 410,288 | $ | 13,613 | $ | 4,891 | $ | 102,261 | $ | 159,310 | $ | 690,363 | |||||||||||||||||||
Total non-covered loans held-in-portfolio | [1] | $ | 10,534,886 | $ | 311,628 | $ | 563,867 | $ | 5,518,460 | $ | 3,673,755 | $ | 20,602,596 | ||||||||||||||||||
ALLL to loans held-in-portfolio | [1] | 3.89 | % | 4.37 | % | 0.87 | % | 1.85 | % | 4.34 | % | 3.35 | % | ||||||||||||||||||
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. | |||||||||||||||||||||||||||||||
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of December 31, 2011, the general allowance on the covered loans amounted to $98 million, while the specific reserve amounted to $27 million. |
|||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
September 30, 2011 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction |
Lease |
Mortgage | Consumer | Total | [2] | ||||||||||||||||||||||||
Specific ALLL | $ | 21,240 | $ | 1,335 | $ | 46 | $ | 28,192 | $ | 7,665 | $ | 58,478 | |||||||||||||||||||
Impaired loans | [1] | $ | 519,827 | $ | 180,694 | $ | 6,568 | $ | 313,951 | $ | 147,053 | $ | 1,168,093 | ||||||||||||||||||
Specific ALLL to impaired loans | [1] | 4.09 | % | 0.74 | % | 0.70 | % | 8.98 | % | 5.21 | % | 5.01 | % | ||||||||||||||||||
General ALLL | $ | 383,907 | $ | 13,900 | $ | 4,703 | $ | 67,689 | $ | 163,823 | $ | 634,022 | |||||||||||||||||||
Loans held-in-portfolio, excluding impaired loans | [1] | $ | 10,069,092 | $ | 177,366 | $ | 564,500 | $ | 5,152,552 | $ | 3,542,283 | $ | 19,505,793 | ||||||||||||||||||
General ALLL to loans held-in-portfolio, excluding impaired loans | [1] | 3.81 | % | 7.84 | % | 0.83 | % | 1.31 | % | 4.62 | % | 3.25 | % | ||||||||||||||||||
Total ALLL | $ | 405,147 | $ | 15,235 | $ | 4,749 | $ | 95,881 | $ | 171,488 | $ | 692,500 | |||||||||||||||||||
Total non-covered loans held-in-portfolio | [1] | $ | 10,588,919 | $ | 358,060 | $ | 571,068 | $ | 5,466,503 | $ | 3,689,336 | $ | 20,673,886 | ||||||||||||||||||
ALLL to loans held-in-portfolio | [1] | 3.83 | % | 4.25 | % | 0.83 | % | 1.75 | % | 4.65 | % | 3.35 | % | ||||||||||||||||||
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. | |||||||||||||||||||||||||||||||
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of September 30, 2011, the general allowance on the covered loans amounted to $79 million, while the specific reserve amounted to $1 million. |
|||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Variance December 31, 2011 versus September 30, 2011 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction |
Lease |
Mortgage | Consumer | Total | |||||||||||||||||||||||||
Specific ALLL | $ | (12,366 | ) | $ | (1,335 | ) | $ | 747 | $ | 871 | $ | 9,381 | $ | (2,702 | ) | ||||||||||||||||
Impaired loans | $ |
10,671 |
$ | (60,114 | ) | $ | (464 | ) | $ | 68,929 | $ | (6,945 | ) | $ |
12,077 |
||||||||||||||||
General ALLL | $ | 17,507 | $ | (287 | ) | $ | (605 | ) | $ | 5,509 | $ | (21,559 | ) | $ | 565 | ||||||||||||||||
Loans held-in-portfolio, excluding impaired loans | $ |
(64,704 |
) | $ | 13,682 | $ | (6,737 | ) | $ | (16,972 | ) | $ | (8,636 | ) | $ |
(83,367 |
) | ||||||||||||||
Total ALLL | $ | 5,141 | $ | (1,622 | ) | $ | 142 | $ | 6,380 | $ | (12,178 | ) | $ | (2,137 | ) | ||||||||||||||||
Total non-covered loans held-in-portfolio | $ | (54,033 | ) | $ | (46,432 | ) | $ | (7,201 | ) | $ | 51,957 | $ | (15,581 | ) | $ | (71,290 | ) | ||||||||||||||
December 31, 2010 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction |
Lease |
Mortgage | Consumer | Total | [2] | ||||||||||||||||||||||||
Specific ALLL | $ | 8,550 | $ | 216 | $ | - | $ | 5,004 | $ | - | $ | 13,770 | |||||||||||||||||||
Impaired loans | [1] | $ | 445,968 | $ | 231,322 | $ | - | $ | 121,209 | $ | - | $ | 798,499 | ||||||||||||||||||
Specific ALLL to impaired loans | [1] | 1.92 | % | 0.09 | % | - | % | 4.13 | % | - | % | 1.72 | % | ||||||||||||||||||
General ALLL | $ | 453,841 | $ | 47,508 | $ | 13,153 | $ | 65,864 | $ | 199,089 | $ | 779,455 | |||||||||||||||||||
Loans held-in-portfolio, excluding impaired loans | [1] | $ | 10,947,517 | $ | 269,529 | $ | 602,993 | $ | 4,403,513 | $ | 3,705,984 | $ | 19,929,536 | ||||||||||||||||||
General ALLL to loans held-in-portfolio, excluding impaired loans | [1] | 4.15 | % | 17.63 | % | 2.18 | % | 1.50 | % | 5.37 | % | 3.91 | % | ||||||||||||||||||
Total ALLL | $ | 462,391 | $ | 47,724 | $ | 13,153 | $ | 70,868 | $ | 199,089 | $ | 793,225 | |||||||||||||||||||
Total non-covered loans held-in-portfolio | [1] | $ | 11,393,485 | $ | 500,851 | $ | 602,993 | $ | 4,524,722 | $ | 3,705,984 | $ | 20,728,035 | ||||||||||||||||||
ALLL to loans held-in-portfolio | [1] | 4.06 | % | 9.53 | % | 2.18 | % | 1.57 | % | 5.37 | % | 3.83 | % | ||||||||||||||||||
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. | |||||||||||||||||||||||||||||||
[2] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of December 31, 2010, there was no allowance on these covered loans. | |||||||||||||||||||||||||||||||
Popular, Inc. | |||||||||||||||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | |||||||||||||||||||||||||
Table L - Allowance for Loan Losses - Breakdown of general and specific reserves - PUERTO RICO OPERATIONS | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
As of December 31, 2011 | |||||||||||||||||||||||||
Puerto Rico | |||||||||||||||||||||||||
(In thousands) | Commercial | Construction | Mortgage |
Lease |
Consumer | Total | |||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Specific ALLL non-covered loans | $ | 7,486 | $ | - | $ | 14,944 | $ | 793 | $ | 16,915 | $ | 40,138 | |||||||||||||
General ALLL non-covered loans | 247,967 | 5,850 | 57,378 | 3,858 | 98,211 | 413,264 | |||||||||||||||||||
ALLL - non-covered loans | 255,453 | 5,850 | 72,322 | 4,651 | 115,126 | 453,402 | |||||||||||||||||||
Specific ALLL covered loans | 27,086 | - | - | - | - | 27,086 | |||||||||||||||||||
General ALLL covered loans | 67,386 | 20,435 | 5,310 | - | 4,728 | 97,859 | |||||||||||||||||||
ALLL - covered loans | 94,472 | 20,435 | 5,310 | - | 4,728 | 124,945 | |||||||||||||||||||
Total ALLL | $ | 349,925 | $ | 26,285 | $ | 77,632 | $ | 4,651 | $ | 119,854 | $ | 578,347 | |||||||||||||
Loans held-in-portfolio: | |||||||||||||||||||||||||
Impaired non-covered loans | $ | 358,910 | $ | 48,075 | $ | 333,346 | $ | 6,104 | $ | 137,582 | $ | 884,017 | |||||||||||||
Non-covered loans held-in-portfolio, excluding impaired loans | 6,111,672 | 112,866 | 4,356,137 | 542,602 | 2,832,845 | 13,956,122 | |||||||||||||||||||
Non-covered loans held-in-portfolio | 6,470,582 | 160,941 | 4,689,483 | 548,706 | 2,970,427 | 14,840,139 | |||||||||||||||||||
Impaired covered loans | 76,798 | - | - | - | - | 76,798 | |||||||||||||||||||
Covered loans held-in-portfolio, excluding impaired loans | 2,435,944 | 546,826 | 1,172,954 | - | 116,181 | 4,271,905 | |||||||||||||||||||
Covered loans held-in-portfolio | 2,512,742 | 546,826 | 1,172,954 | - | 116,181 | 4,348,703 | |||||||||||||||||||
Total loans held-in-portfolio | $ | 8,983,324 | $ | 707,767 | $ | 5,862,437 | $ | 548,706 | $ | 3,086,608 | $ | 19,188,842 | |||||||||||||
As of September 30, 2011 | |||||||||||||||||||||||||
Puerto Rico | |||||||||||||||||||||||||
(In thousands) | Commercial | Construction | Mortgage |
Lease |
Consumer | Total | |||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Specific ALLL non-covered loans | $ | 20,941 | $ | 569 | $ | 16,682 | $ | 46 | $ | 7,546 | $ | 45,784 | |||||||||||||
General ALLL non-covered loans | 224,807 | 4,438 | 48,747 | 3,858 | 115,954 | 397,804 | |||||||||||||||||||
ALLL - non-covered loans | 245,748 | 5,007 | 65,429 | 3,904 | 123,500 | 443,588 | |||||||||||||||||||
Specific ALLL covered loans | 1,634 | - | - | - | - | 1,634 | |||||||||||||||||||
General ALLL covered loans | 61,840 | 9,926 | 2,296 | - | 4,725 | 78,787 | |||||||||||||||||||
ALLL - covered loans | 63,474 | 9,926 | 2,296 | - | 4,725 | 80,421 | |||||||||||||||||||
Total ALLL | $ | 309,222 | $ | 14,933 | $ | 67,725 | $ | 3,904 | $ | 128,225 | $ | 524,009 | |||||||||||||
Loans held-in-portfolio: | |||||||||||||||||||||||||
Impaired non-covered loans | $ | 378,180 | $ | 61,750 | $ | 282,402 | $ | 6,568 | $ | 142,438 | $ | 871,338 | |||||||||||||
Non-covered loans held-in-portfolio, excluding impaired loans | 6,035,309 | 102,164 | 4,350,938 | 546,557 | 2,822,057 | 13,857,025 | |||||||||||||||||||
Non-covered loans held-in-portfolio | 6,413,489 | 163,914 | 4,633,340 | 553,125 | 2,964,495 | 14,728,363 | |||||||||||||||||||
Impaired covered loans | 2,675 | - | - | - | - | 2,675 | |||||||||||||||||||
Covered loans held-in-portfolio, excluding impaired loans | 2,571,401 | 599,990 | 1,217,434 | - | 120,923 | 4,509,748 | |||||||||||||||||||
Covered loans held-in-portfolio | 2,574,076 | 599,990 | 1,217,434 | - | 120,923 | 4,512,423 | |||||||||||||||||||
Total loans held-in-portfolio | $ | 8,987,565 | $ | 763,904 | $ | 5,850,774 | $ | 553,125 | $ | 3,085,418 | $ | 19,240,786 | |||||||||||||
Variance December 31, 2011 versus September 30, 2011 | |||||||||||||||||||||||||
(In thousands) | Commercial | Construction | Mortgage |
Lease |
Consumer | Total | |||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Specific ALLL non-covered loans | $ | (13,455 | ) | $ | (569 | ) | $ | (1,738 | ) | $ | 747 | $ | 9,369 | $ | (5,646 | ) | |||||||||
General ALLL non-covered loans | 23,160 | 1,412 | 8,631 | - | (17,743 | ) | 15,460 | ||||||||||||||||||
ALLL - non-covered loans | 9,705 | 843 | 6,893 | 747 | (8,374 | ) | 9,814 | ||||||||||||||||||
Specific ALLL covered loans | 25,452 | - | - | - | - | 25,452 | |||||||||||||||||||
General ALLL covered loans | 5,546 | 10,509 | 3,014 | - | 3 | 19,072 | |||||||||||||||||||
ALLL - covered loans | 30,998 | 10,509 | 3,014 | - | 3 | 44,524 | |||||||||||||||||||
Total ALLL | $ | 40,703 | $ | 11,352 | $ | 9,907 | $ | 747 | $ | (8,371 | ) | $ | 54,338 | ||||||||||||
Loans held-in-portfolio: | |||||||||||||||||||||||||
Impaired non-covered loans | $ | (19,270 | ) | $ | (13,675 | ) | $ | 50,944 | $ | (464 | ) | $ | (4,856 | ) | $ | 12,679 | |||||||||
Non-covered loans held-in-portfolio, excluding impaired loans | 76,363 | 10,702 | 5,199 | (3,955 | ) | 10,788 | 99,097 | ||||||||||||||||||
Non-covered loans held-in-portfolio | 57,093 | (2,973 | ) | 56,143 | (4,419 | ) | 5,932 | 111,776 | |||||||||||||||||
Impaired covered loans | 74,123 | - | - | - | - | 74,123 | |||||||||||||||||||
Covered loans held-in-portfolio, excluding impaired loans | (135,457 | ) | (53,164 | ) | (44,480 | ) | - | (4,742 | ) | (237,843 | ) | ||||||||||||||
Covered loans held-in-portfolio | (61,334 | ) | (53,164 | ) | (44,480 | ) | - | (4,742 | ) | (163,720 | ) | ||||||||||||||
Total loans held-in-portfolio | $ | (4,241 | ) | $ | (56,137 | ) | $ | 11,663 | $ | (4,419 | ) | $ | 1,190 | $ | (51,944 | ) | |||||||||
As of December 31, 2010 | |||||||||||||||||||||||||
Puerto Rico | |||||||||||||||||||||||||
(In thousands) | Commercial | Construction | Mortgage |
Lease |
Consumer | Total | |||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Specific ALLL non-covered loans | $ | 8,550 | $ | 216 | $ | 5,004 | $ | - | $ | - | $ | 13,770 | |||||||||||||
General ALLL non-covered loans | 248,093 | 15,858 | 37,025 | 7,154 | 133,531 | 441,661 | |||||||||||||||||||
ALLL - non-covered loans | 256,643 | 16,074 | 42,029 | 7,154 | 133,531 | 455,431 | |||||||||||||||||||
ALLL - covered loans | - | - | - | - | - | - | |||||||||||||||||||
Total ALLL | $ | 256,643 | $ | 16,074 | $ | 42,029 | $ | 7,154 | $ | 133,531 | $ | 455,431 | |||||||||||||
Loans held-in-portfolio: | |||||||||||||||||||||||||
Impaired non-covered loans | $ | 310,582 | $ | 65,698 | $ | 121,209 | $ | - | $ | - | $ | 497,489 | |||||||||||||
Non-covered loans held-in-portfolio, excluding impaired loans | 6,406,434 | 102,658 | 3,528,491 | 572,787 | 2,897,835 | 13,508,205 | |||||||||||||||||||
Non-covered loans held-in-portfolio | 6,717,016 | 168,356 | 3,649,700 | 572,787 | 2,897,835 | 14,005,694 | |||||||||||||||||||
Impaired covered loans | - | - | - | - | - | - | |||||||||||||||||||
Covered loans held-in-portfolio, excluding impaired loans | 2,771,987 | 635,892 | 1,259,253 | - | 169,750 | 4,836,882 | |||||||||||||||||||
Covered loans held-in-portfolio | 2,771,987 | 635,892 | 1,259,253 | - | 169,750 | 4,836,882 | |||||||||||||||||||
Total loans held-in-portfolio | $ | 9,489,003 | $ | 804,248 | $ | 4,908,953 | $ | 572,787 | $ | 3,067,585 | $ | 18,842,576 | |||||||||||||
Popular, Inc. | |||||||||||||||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | |||||||||||||||||||||||||
Table M - Allowance for Loan Losses - Breakdown of general and specific reserves - U.S. MAINLAND OPERATIONS | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
As of December 31, 2011 | |||||||||||||||||||||||||
U.S. Mainland | |||||||||||||||||||||||||
(In thousands) | Commercial | Construction | Mortgage |
Lease |
Consumer | Total | |||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Specific ALLL | $ | 1,388 | $ | - | $ | 14,119 | $ | - | $ | 131 | $ | 15,638 | |||||||||||||
General ALLL | 153,447 | 7,763 | 15,820 | 240 | 44,053 | 221,323 | |||||||||||||||||||
Total ALLL | 154,835 | 7,763 | 29,939 | 240 | 44,184 | 236,961 | |||||||||||||||||||
Loans held-in-portfolio: | |||||||||||||||||||||||||
Impaired loans | 171,588 | 72,505 | 49,534 | - | 2,526 | 296,153 | |||||||||||||||||||
Loans held-in-portfolio, excluding impaired loans | 3,892,716 | 78,182 | 779,443 | 15,161 | 700,802 | 5,466,304 | |||||||||||||||||||
Total loans held-in-portfolio | $ | 4,064,304 | $ | 150,687 | $ | 828,977 | $ | 15,161 | $ | 703,328 | $ | 5,762,457 | |||||||||||||
As of September 30, 2011 | |||||||||||||||||||||||||
U.S. Mainland | |||||||||||||||||||||||||
(In thousands) | Commercial | Construction | Mortgage |
Lease |
Consumer | Total | |||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Specific ALLL | $ | 299 | $ | 766 | $ | 11,510 | $ | - | $ | 119 | $ | 12,694 | |||||||||||||
General ALLL | 159,100 | 9,462 | 18,942 | 845 | 47,869 | 236,218 | |||||||||||||||||||
Total ALLL | 159,399 | 10,228 | 30,452 | 845 | 47,988 | 248,912 | |||||||||||||||||||
Loans held-in-portfolio: | |||||||||||||||||||||||||
Impaired loans | 141,647 | 118,944 | 31,549 | - | 4,615 | 296,755 | |||||||||||||||||||
Loans held-in-portfolio, excluding impaired loans | 4,033,783 | 75,202 | 801,614 | 17,943 | 720,226 | 5,648,768 | |||||||||||||||||||
Total loans held-in-portfolio | $ | 4,175,430 | $ | 194,146 | $ | 833,163 | $ | 17,943 | $ | 724,841 | $ | 5,945,523 | |||||||||||||
Variance December 31, 2011 versus September 30, 2011 | |||||||||||||||||||||||||
(In thousands) | Commercial | Construction | Mortgage |
Lease |
Consumer | Total | |||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Specific ALLL | $ | 1,089 | $ | (766 | ) | $ | 2,609 | $ | - | $ | 12 | $ | 2,944 | ||||||||||||
General ALLL | (5,653 | ) | (1,699 | ) | (3,122 | ) | (605 | ) | (3,816 | ) | (14,895 | ) | |||||||||||||
Total ALLL | (4,564 | ) | (2,465 | ) | (513 | ) | (605 | ) | (3,804 | ) | (11,951 | ) | |||||||||||||
Loans held-in-portfolio: | |||||||||||||||||||||||||
Impaired loans | 29,941 | (46,439 | ) | 17,985 | - | (2,089 | ) | (602 | ) | ||||||||||||||||
Loans held-in-portfolio, excluding impaired loans | (141,067 | ) | 2,980 | (22,171 | ) | (2,782 | ) | (19,424 | ) | (182,464 | ) | ||||||||||||||
Total loans held-in-portfolio | $ | (111,126 | ) | $ | (43,459 | ) | $ | (4,186 | ) | $ | (2,782 | ) | $ | (21,513 | ) | $ | (183,066 | ) | |||||||
As of December 31, 2010 | |||||||||||||||||||||||||
U.S. Mainland | |||||||||||||||||||||||||
(In thousands) | Commercial | Construction | Mortgage |
Lease |
Consumer | Total | |||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Specific ALLL | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
General ALLL | 205,748 | 31,650 | 28,839 | 5,999 | 65,558 | 337,794 | |||||||||||||||||||
Total ALLL | 205,748 | 31,650 | 28,839 | 5,999 | 65,558 | 337,794 | |||||||||||||||||||
Loans held-in-portfolio: | |||||||||||||||||||||||||
Impaired loans | 135,386 | 165,624 | - | - | - | 301,010 | |||||||||||||||||||
Loans held-in-portfolio, excluding impaired loans | 4,541,083 | 166,871 | 875,022 | 30,206 | 808,149 | 6,421,331 | |||||||||||||||||||
Total loans held-in-portfolio | $ | 4,676,469 | $ | 332,495 | $ | 875,022 | $ | 30,206 | $ | 808,149 | $ | 6,722,341 | |||||||||||||
Popular, Inc. | |||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | |||||||||||||
Table N - Reconciliation to GAAP Financial Measures | |||||||||||||
(Unaudited) | |||||||||||||
(In thousands, except share or per share information) | December 31, 2011 | September 30, 2011 | December 31, 2010 | ||||||||||
Total stockholders’ equity | $ | 3,918,753 | $ | 4,012,601 | $ | 3,800,531 | |||||||
Less: Preferred stock | (50,160) | (50,160) | (50,160) | ||||||||||
Less: Goodwill | (648,350) | (648,353) | (647,387) | ||||||||||
Less: Other intangibles | (63,954) | (64,212) | (58,696) | ||||||||||
Total tangible common equity | $ | 3,156,289 | $ | 3,249,876 | $ | 3,044,288 | |||||||
Total assets | $ | 37,348,432 | $ | 38,275,323 | $ | 38,814,998 | |||||||
Less: Goodwill | (648,350) | (648,353) | (647,387) | ||||||||||
Less: Other intangibles | (63,954) | (64,212) | (58,696) | ||||||||||
Total tangible assets | $ | 36,636,128 | $ | 37,562,758 | $ | 38,108,915 | |||||||
Tangible common equity to tangible assets | 8.62 | % | 8.65 | % | 7.99 | % | |||||||
Common shares outstanding at end of period | 1,025,904,567 | 1,024,475,398 | 1,022,727,802 | ||||||||||
Tangible book value per common share | $ | 3.08 | $ | 3.17 | $ | 2.98 | |||||||
(In thousands) | December 31, 2011 | September 30, 2011 | December 31, 2010 | ||||||||||
Common stockholders’ equity | $ | 3,868,593 | $ | 3,962,441 | $ | 3,750,371 | |||||||
Less: Unrealized gains on available-for-sale securities, net of tax | [1] | (203,078) | (209,120) | (159,700) | |||||||||
Less: Disallowed deferred tax assets | [2] | (249,325) | (222,601) | (231,475) | |||||||||
Less: Intangible assets: | |||||||||||||
Goodwill | (648,350) | (648,353) | (647,387) | ||||||||||
Other disallowed intangibles |
(29,655) |
(31,272) | (26,749) | ||||||||||
Less: Aggregate adjusted carrying value of all non-financial equity investments | (1,189) | (1,525) | (1,538) | ||||||||||
Add: Pension liability adjustment, net of tax and accumulated net gains (losses) on cash flow hedges |
[3] | 216,798 | 125,004 | 129,511 | |||||||||
Total Tier 1 common equity | $ |
2,953,794 |
$ | 2,974,574 | $ | 2,813,033 | |||||||
[1] In accordance with regulatory risk-based capital guidelines, Tier 1 capital excludes net unrealized gains (losses) on available-for-sale debt securities and net unrealized gains on available-for-sale equity securities with readily determinable fair values. In arriving at Tier 1 capital, institutions are required to deduct net unrealized losses on available-for-sale equity securities with readily determinable fair values, net of tax. | |||||||||||||
[2] Approximately $150 million of the Corporation’s $430 million of net deferred tax assets at December 31, 2011 (September 30, 2011 - $126 million and $342 million, respectively; December 31, 2010 - $144 million and $388 million, respectively), were included without limitation in regulatory capital pursuant to the risk-based capital guidelines, while approximately $249 million of such assets at December 31, 2011 (September 30, 2011 - $223 million; December 31, 2010 - $231 million) exceeded the limitation imposed by these guidelines and, as “disallowed deferred tax assets”, were deducted in arriving at Tier 1 capital. The remaining $31 million of the Corporation’s other net deferred tax assets at December 31, 2011 (September 30, 2011 - $7 million; December 31, 2010 - $13 million) represented primarily the following items (a) the deferred tax effects of unrealized gains and losses on available-for-sale debt securities, which are permitted to be excluded prior to deriving the amount of net deferred tax assets subject to limitation under the guidelines; (b) the deferred tax asset corresponding to the pension liability adjustment recorded as part of accumulated other comprehensive income; and (c) the deferred tax liability associated with goodwill and other intangibles. | |||||||||||||
[3] The Federal Reserve Bank has granted interim capital relief for the impact of pension liability adjustment. | |||||||||||||
Popular, Inc. | ||||||||||||||||
Financial Supplement to Fourth Quarter 2011 Earnings Release | ||||||||||||||||
Table O - Financial Information - Westernbank Covered Loans | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Quarter ended | ||||||||||||||||
(In thousands) | December 31, 2011 | September 30, 2011 | Variance | |||||||||||||
Interest income: | ||||||||||||||||
Interest income on covered loans, except for discount accretion on ASC 310-20 covered loans | ||||||||||||||||
$ | 88,424 | $ | 102,308 | $ | (13,884 | ) | ||||||||||
Discount accretion on ASC 310-20 covered loans | - | 3,501 | (3,501 | ) | ||||||||||||
Total interest income | 88,424 | 105,809 | (17,385 | ) | ||||||||||||
FDIC loss share (expense) income: | ||||||||||||||||
(Amortization) accretion of indemnification asset | (24,217 | ) | (21,072 | ) | (3,145 | ) | ||||||||||
80% mirror accounting on provision for loan losses for reductions in expected cash flows that are reimbursable by the FDIC [1] | ||||||||||||||||
38,670 | 20,458 | 18,212 | ||||||||||||||
80% mirror accounting on discount accretion on loans and unfunded commitments accounted for under ASC 310-20 | ||||||||||||||||
(302 | ) | (2,916 | ) | 2,614 | ||||||||||||
Other | 3,296 | (1,831 | ) | 5,127 | ||||||||||||
Total FDIC loss share income (expense) | 17,447 | (5,361 | ) | 22,808 | ||||||||||||
Other non-interest income | 1,092 | - | 1,092 | |||||||||||||
Total revenues | 106,963 | 100,448 | 6,515 | |||||||||||||
Provision for loan losses | 55,900 | 25,573 | 30,327 | |||||||||||||
Total revenues less provision for loan losses | $ | 51,063 | $ | 74,875 | $ | (23,812 | ) | |||||||||
[1] Reductions in expected cash flows for ASC 310-30 loans, which may impact the provision for loan losses, may consider reductions in both principal and interest cash flow expectations. The amount covered under the FDIC loss sharing agreements for interest not collected from borrowers is limited under the agreements (approximately 90 days); accordingly, these amounts are not subject fully to the 80% mirror accounting. |
||||||||||||||||
Quarterly average assets: |
Quarter ended | |||||||||||||||
(In millions) | December 31, 2011 | September 30, 2011 | Variance | |||||||||||||
Covered loans | $ | 4,401 | $ | 4,557 | $ | (156 | ) | |||||||||
FDIC loss share asset | 1,893 | 1,991 | (98 | ) | ||||||||||||
Note issued to the FDIC | 344 | 1,057 | (713 | ) | ||||||||||||
Activity in the carrying amount and accretable yield of covered loans accounted for under ASC 310-30 |
||||||||||||||||
Quarter | Quarter | |||||||||||||||
December 31, 2011 | September 30, 2011 | |||||||||||||||
(In thousands) | Accretable yield |
Carrying amount of |
Accretable yield |
Carrying amount of |
||||||||||||
Beginning balance | $ | 1,496,565 | $ | 4,076,913 | $ | 1,616,919 | $ | 4,216,808 | ||||||||
Accretion | (82,866 | ) | 82,866 | (96,418 | ) | 96,418 | ||||||||||
Changes in expected cash flows | 56,560 | (23,936 | ) | |||||||||||||
Collections | (123,308 | ) | (173,867 | ) | ||||||||||||
Ending balance | 1,470,259 | 4,036,471 | 1,496,565 | 4,139,359 | ||||||||||||
Allowance for loan losses - ASC 310-30 covered loans | (83,477 | ) | (62,446 | ) | ||||||||||||
Ending balance, net of allowance for loan losses | $ | 1,470,259 | $ | 3,952,994 | $ | 1,496,565 | $ | 4,076,913 | ||||||||
CONTACT:
Popular, Inc.
Investor Relations:
Jorge
A. Junquera, 787-754-1685
Chief Financial Officer
Senior
Executive Vice President
or
Media Relations:
Teruca
Rullán, 787-281-5170 or 917-679-3596/mobile
Senior Vice
President
Corporate Communications