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Condensed consolidating financial information of guarantor and issuers of registered guaranteed securities
 3 Months Ended
Mar. 31, 2020
Disclosure Text Block  
Condensed Consolidating Financial Information of Guarantor and Issuers of Registeres Guranteed Securities Note 34 – Condensed consolidating financial information of guarantor and issuers of registered guaranteed securities

The following condensed consolidating financial information presents the financial position of Popular, Inc. Holding Company (“PIHC”) (parent only), Popular North America, Inc. (“PNA”) and all other subsidiaries of the Corporation at March 31, 2020 and December 31, 2019, and the results of their operations and cash flows for periods ended March 31, 2020 and 2019.

 

PNA is an operating, 100% owned subsidiary of PIHC and is the holding company of its wholly-owned subsidiaries: Equity One, Inc. and Popular Bank (“PB”), including PB’s wholly-owned subsidiaries Popular Equipment Finance, Inc., Popular Insurance Agency, U.S.A., and E-LOAN, Inc.

 

PIHC fully and unconditionally guarantees, joint and severally, all registered debt securities issued by PNA.

Condensed Consolidating Statement of Financial Condition

 

At March 31, 2020

 

 

 

 

 

 

All other

 

 

 

 

 

 

Popular Inc.

PNA

 

subsidiaries and

 

Elimination

 

Popular, Inc.

(In thousands)

 

Holding Co.

Holding Co.

 

eliminations

 

entries

 

Consolidated

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

76,617

$

-

 

$

445,553

 

$

(76,619)

 

$

445,551

Money market investments

 

 

211,343

 

13,099

 

 

5,941,374

 

 

(224,100)

 

 

5,941,716

Trading account debt securities, at fair value

 

 

-

 

-

 

 

42,545

 

 

-

 

 

42,545

Debt securities available-for-sale, at fair value

 

 

-

 

-

 

 

15,813,301

 

 

-

 

 

15,813,301

Debt securities held -to maturity, at amortized cost

 

 

8,726

 

2,835

 

 

83,702

 

 

-

 

 

95,263

 

Less - Allowance for credit losses

 

 

-

 

-

 

 

13,390

 

 

-

 

 

13,390

 

Debt securities held-to-maturity, net

 

 

8,726

 

2,835

 

 

70,312

 

 

-

 

 

81,873

Equity securities

 

 

11,284

 

20

 

 

151,873

 

 

(119)

 

 

163,058

Investment in subsidiaries

 

 

5,880,938

 

1,746,263

 

 

-

 

 

(7,627,201)

 

 

-

Loans held-for-sale, at lower of cost or fair value

 

 

-

 

-

 

 

87,855

 

 

-

 

 

87,855

Loans held-in-portfolio

 

 

31,888

 

-

 

 

27,809,997

 

 

5,955

 

 

27,847,840

 

Less - Unearned income

 

 

-

 

-

 

 

185,568

 

 

-

 

 

185,568

 

Allowance for credit losses

 

 

374

 

-

 

 

919,342

 

 

-

 

 

919,716

 

Total loans held-in-portfolio, net

 

 

31,514

 

-

 

 

26,705,087

 

 

5,955

 

 

26,742,556

Premises and equipment, net

 

 

4,371

 

-

 

 

547,636

 

 

-

 

 

552,007

Other real estate

 

 

146

 

-

 

 

123,776

 

 

-

 

 

123,922

Accrued income receivable

 

 

272

 

12

 

 

175,873

 

 

(79)

 

 

176,078

Mortgage servicing assets, at fair value

 

 

-

 

-

 

 

147,311

 

 

-

 

 

147,311

Other assets

 

 

95,083

 

21,614

 

 

1,691,922

 

 

(20,182)

 

 

1,788,437

Goodwill

 

 

-

 

-

 

 

671,123

 

 

(1)

 

 

671,122

Other intangible assets

 

 

6,439

 

-

 

 

19,868

 

 

-

 

 

26,307

Total assets

 

$

6,326,733

$

1,783,843

 

$

52,635,409

 

$

(7,942,346)

 

$

52,803,639

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing

 

$

-

$

-

 

$

9,473,068

 

$

(76,619)

 

$

9,396,449

 

Interest bearing

 

 

-

 

-

 

 

35,624,827

 

 

(224,100)

 

 

35,400,727

 

 

Total deposits

 

 

-

 

-

 

 

45,097,895

 

 

(300,719)

 

 

44,797,176

Assets sold under agreements to repurchase

 

 

-

 

-

 

 

178,766

 

 

-

 

 

178,766

Other short-term borrowings

 

 

-

 

-

 

 

100,000

 

 

-

 

 

100,000

Notes payable

 

 

586,435

 

94,097

 

 

377,599

 

 

-

 

 

1,058,131

Other liabilities

 

 

70,844

 

1,651

 

 

948,224

 

 

(20,758)

 

 

999,961

Total liabilities

 

 

657,279

 

95,748

 

 

46,702,484

 

 

(321,477)

 

 

47,134,034

Stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

22,143

 

-

 

 

-

 

 

-

 

 

22,143

Common stock

 

 

1,044

 

2

 

 

56,307

 

 

(56,309)

 

 

1,044

Surplus

 

 

4,357,512

 

4,173,039

 

 

5,847,100

 

 

(10,011,351)

 

 

4,366,300

Retained earnings (accumulated deficit)

 

 

1,948,697

 

(2,516,370)

 

 

(189,242)

 

 

2,697,085

 

 

1,940,170

Treasury stock, at cost

 

 

(870,565)

 

-

 

 

-

 

 

(110)

 

 

(870,675)

Accumulated other comprehensive income, net of tax

 

 

210,623

 

31,424

 

 

218,760

 

 

(250,184)

 

 

210,623

Total stockholders' equity

 

 

5,669,454

 

1,688,095

 

 

5,932,925

 

 

(7,620,869)

 

 

5,669,605

Total liabilities and stockholders' equity

 

$

6,326,733

$

1,783,843

 

$

52,635,409

 

$

(7,942,346)

 

$

52,803,639

Condensed Consolidating Statement of Financial Condition (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2019

 

 

 

 

 

 

 

All other

 

 

 

 

 

 

 

 

Popular, Inc.

PNA

 

subsidiaries and

 

Elimination

 

Popular, Inc.

(In thousands)

 

Holding Co.

Holding Co.

 

eliminations

 

entries

 

Consolidated

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

55,956

$

-

 

$

388,363

 

$

(56,008)

 

$

388,311

Money market investments

 

 

221,598

 

16,029

 

 

3,261,688

 

 

(237,029)

 

 

3,262,286

Trading account debt securities, at fair value

 

 

-

 

-

 

 

40,321

 

 

-

 

 

40,321

Debt securities available-for-sale, at fair value

 

 

-

 

-

 

 

17,648,473

 

 

-

 

 

17,648,473

Debt securities held-to-maturity, at amortized cost

 

 

8,726

 

2,835

 

 

86,101

 

 

-

 

 

97,662

Equity securities

 

 

10,744

 

20

 

 

149,322

 

 

(199)

 

 

159,887

Investment in subsidiaries

 

 

6,243,065

 

1,806,583

 

 

-

 

 

(8,049,648)

 

 

-

Loans held-for-sale, at lower of cost or fair value

 

 

-

 

-

 

 

59,203

 

 

-

 

 

59,203

Loans held-in-portfolio

 

 

32,027

 

-

 

 

27,549,874

 

 

5,955

 

 

27,587,856

 

Less - Unearned income

 

 

-

 

-

 

 

180,983

 

 

-

 

 

180,983

 

Allowance for loan losses

 

 

410

 

-

 

 

477,298

 

 

-

 

 

477,708

 

Total loans held-in-portfolio, net

 

 

31,617

 

-

 

 

26,891,593

 

 

5,955

 

 

26,929,165

Premises and equipment, net

 

 

3,893

 

-

 

 

552,757

 

 

-

 

 

556,650

Other real estate

 

 

146

 

-

 

 

121,926

 

 

-

 

 

122,072

Accrued income receivable

 

 

382

 

108

 

 

180,630

 

 

(249)

 

 

180,871

Mortgage servicing assets, at fair value

 

 

-

 

-

 

 

150,906

 

 

-

 

 

150,906

Other assets

 

 

93,835

 

21,324

 

 

1,722,839

 

 

(18,383)

 

 

1,819,615

Goodwill

 

 

-

 

-

 

 

671,123

 

 

(1)

 

 

671,122

Other intangible assets

 

 

6,463

 

-

 

 

22,317

 

 

-

 

 

28,780

Total assets

 

$

6,676,425

$

1,846,899

 

$

51,947,562

 

$

(8,355,562)

 

$

52,115,324

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing

 

$

-

$

-

 

$

9,216,181

 

$

(56,008)

 

$

9,160,173

 

Interest bearing

 

 

-

 

-

 

 

34,835,462

 

 

(237,029)

 

 

34,598,433

 

 

Total deposits

 

 

-

 

-

 

 

44,051,643

 

 

(293,037)

 

 

43,758,606

Assets sold under agreements to repurchase

 

 

-

 

-

 

 

193,378

 

 

-

 

 

193,378

Notes payable

 

 

586,119

 

94,090

 

 

421,399

 

 

-

 

 

1,101,608

Other liabilities

 

 

73,596

 

3,200

 

 

986,865

 

 

(18,708)

 

 

1,044,953

Total liabilities

 

 

659,715

 

97,290

 

 

45,653,285

 

 

(311,745)

 

 

46,098,545

Stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

50,160

 

-

 

 

-

 

 

-

 

 

50,160

Common stock

 

 

1,044

 

2

 

 

56,307

 

 

(56,309)

 

 

1,044

Surplus

 

 

4,438,706

 

4,173,169

 

 

5,847,389

 

 

(10,011,852)

 

 

4,447,412

Retained earnings (accumulated deficit)

 

 

2,156,442

 

(2,425,429)

 

 

555,398

 

 

1,861,504

 

 

2,147,915

Treasury stock, at cost

 

 

(459,704)

 

-

 

 

-

 

 

(110)

 

 

(459,814)

Accumulated other comprehensive (loss) income, net of tax

 

 

(169,938)

 

1,867

 

 

(164,817)

 

 

162,950

 

 

(169,938)

Total stockholders' equity

 

 

6,016,710

 

1,749,609

 

 

6,294,277

 

 

(8,043,817)

 

 

6,016,779

Total liabilities and stockholders' equity

 

$

6,676,425

$

1,846,899

 

$

51,947,562

 

$

(8,355,562)

 

$

52,115,324

Condensed Consolidating Statement of Operations (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended March 31, 2020

 

 

 

 

 

 

 

 

All other

 

 

 

 

 

 

 

 

 

Popular, Inc.

PNA

subsidiaries and

Elimination

Popular, Inc.

(In thousands)

 

Holding Co.

Holding Co.

eliminations

entries

Consolidated

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend income from subsidiaries

 

$

580,000

 

$

-

 

$

-

 

$

(580,000)

 

$

-

 

Loans

 

 

562

 

 

-

 

 

449,884

 

 

-

 

 

450,446

 

Money market investments

 

 

1,151

 

 

45

 

 

12,001

 

 

(1,197)

 

 

12,000

 

Investment securities

 

 

158

 

 

47

 

 

87,707

 

 

-

 

 

87,912

 

Total interest and dividend income

 

 

581,871

 

 

92

 

 

549,592

 

 

(581,197)

 

 

550,358

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

-

 

 

-

 

 

63,298

 

 

(1,197)

 

 

62,101

 

Short-term borrowings

 

 

-

 

 

-

 

 

1,048

 

 

-

 

 

1,048

 

Long-term debt

 

 

9,632

 

 

1,557

 

 

2,925

 

 

-

 

 

14,114

 

Total interest expense

 

 

9,632

 

 

1,557

 

 

67,271

 

 

(1,197)

 

 

77,263

Net interest income (expense)

 

 

572,239

 

 

(1,465)

 

 

482,321

 

 

(580,000)

 

 

473,095

Provision for credit losses - loan portfolios

 

 

158

 

 

-

 

 

188,837

 

 

-

 

 

188,995

Provision for credit losses - investment securities

 

 

-

 

 

-

 

 

736

 

 

-

 

 

736

Net interest income (expense) after provision for credit losses

 

 

572,081

 

 

(1,465)

 

 

292,748

 

 

(580,000)

 

 

283,364

Service charges on deposit accounts

 

 

-

 

 

-

 

 

41,659

 

 

-

 

 

41,659

Other service fees

 

 

-

 

 

-

 

 

64,899

 

 

(126)

 

 

64,773

Mortgage banking activities

 

 

-

 

 

-

 

 

6,420

 

 

-

 

 

6,420

Net loss, including impairment on equity securities

 

 

(1,543)

 

 

-

 

 

(1,266)

 

 

81

 

 

(2,728)

Net profit on trading account debt securities

 

 

-

 

 

-

 

 

491

 

 

-

 

 

491

Net gain on sale of loans, including valuation adjustments on loans held-for-sale

 

 

-

 

 

-

 

 

957

 

 

-

 

 

957

Indemnity reserves on loans sold expense

 

 

-

 

 

-

 

 

(4,793)

 

 

-

 

 

(4,793)

Other operating income (expense)

 

 

4,169

 

 

-

 

 

15,701

 

 

(6)

 

 

19,864

 

Total non-interest income

 

 

2,626

 

 

-

 

 

124,068

 

 

(51)

 

 

126,643

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel costs

 

 

18,273

 

 

-

 

 

128,558

 

 

-

 

 

146,831

Net occupancy expenses

 

 

1,053

 

 

-

 

 

24,105

 

 

-

 

 

25,158

Equipment expenses

 

 

873

 

 

1

 

 

20,731

 

 

-

 

 

21,605

Other taxes

 

 

62

 

 

1

 

 

13,618

 

 

-

 

 

13,681

Professional fees

 

 

6,466

 

 

30

 

 

94,701

 

 

(126)

 

 

101,071

Communications

 

 

127

 

 

-

 

 

5,827

 

 

-

 

 

5,954

Business promotion

 

 

816

 

 

-

 

 

13,381

 

 

-

 

 

14,197

FDIC deposit insurance

 

 

-

 

 

-

 

 

5,080

 

 

-

 

 

5,080

Other real estate owned (OREO) expenses

 

 

-

 

 

-

 

 

2,479

 

 

-

 

 

2,479

Other operating expenses

 

 

(26,583)

 

 

13

 

 

61,346

 

 

(697)

 

 

34,079

Amortization of intangibles

 

 

24

 

 

-

 

 

2,449

 

 

-

 

 

2,473

 

Total operating expenses

 

 

1,111

 

 

45

 

 

372,275

 

 

(823)

 

 

372,608

Income (loss) before income tax and equity in (losses) earnings of subsidiaries

 

 

573,596

 

 

(1,510)

 

 

44,541

 

 

(579,228)

 

 

37,399

Income tax (benefit) expense

 

 

-

 

 

(317)

 

 

3,145

 

 

269

 

 

3,097

Income (loss) before equity in losses of subsidiaries

 

 

573,596

 

 

(1,193)

 

 

41,396

 

 

(579,497)

 

 

34,302

Equity in undistributed losses of subsidiaries

 

 

(539,294)

 

 

(43,452)

 

 

-

 

 

582,746

 

 

-

Net income (loss)

 

$

34,302

 

$

(44,645)

 

$

41,396

 

$

3,249

 

$

34,302

Comprehensive income (loss), net of tax

 

$

414,863

 

$

(15,088)

 

$

424,973

 

$

(409,885)

 

$

414,863

Condensed Consolidating Statement of Operations (Unaudited)

 

 

 

 

Quarter ended March 31, 2019

 

 

 

 

 

 

 

 

All other

 

 

 

 

 

 

 

 

Popular, Inc.

PNA

subsidiaries and

Elimination

Popular, Inc.

(In thousands)

Holding Co.

Holding Co.

eliminations

entries

Consolidated

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend income from subsidiaries

 

$

202,300

 

$

-

 

$

-

 

$

(202,300)

 

$

-

 

Loans

 

 

588

 

 

-

 

 

447,125

 

 

-

 

 

447,713

 

Money market investments

 

 

1,122

 

 

51

 

 

29,220

 

 

(1,173)

 

 

29,220

 

Investment securities

 

 

154

 

 

46

 

 

80,836

 

 

-

 

 

81,036

 

Total interest and dividend income

 

 

204,164

 

 

97

 

 

557,181

 

 

(203,473)

 

 

557,969

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

-

 

 

-

 

 

71,999

 

 

(1,173)

 

 

70,826

 

Short-term borrowings

 

 

-

 

 

-

 

 

1,600

 

 

-

 

 

1,600

 

Long-term debt

 

 

9,632

 

 

1,557

 

 

3,391

 

 

-

 

 

14,580

 

Total interest expense

 

 

9,632

 

 

1,557

 

 

76,990

 

 

(1,173)

 

 

87,006

Net interest income (expense)

 

 

194,532

 

 

(1,460)

 

 

480,191

 

 

(202,300)

 

 

470,963

Provision for credit losses - loan portfolios

 

 

106

 

 

-

 

 

41,719

 

 

-

 

 

41,825

Net interest income (expense) after provision for credit losses

 

 

194,426

 

 

(1,460)

 

 

438,472

 

 

(202,300)

 

 

429,138

Service charges on deposit accounts

 

 

-

 

 

-

 

 

38,691

 

 

-

 

 

38,691

Other service fees

 

 

1

 

 

-

 

 

64,406

 

 

(100)

 

 

64,307

Mortgage banking activities

 

 

-

 

 

-

 

 

9,926

 

 

-

 

 

9,926

Net gain, including impairment on equity securities

 

 

587

 

 

-

 

 

859

 

 

(13)

 

 

1,433

Net profit on trading account debt securities

 

 

-

 

 

-

 

 

260

 

 

-

 

 

260

Adjustments (expense) to indemnity reserves on loans sold

 

 

-

 

 

-

 

 

(93)

 

 

-

 

 

(93)

Other operating income (expense)

 

 

5,169

 

 

(1,267)

 

 

18,015

 

 

(11)

 

 

21,906

 

Total non-interest income (expense)

 

 

5,757

 

 

(1,267)

 

 

132,064

 

 

(124)

 

 

136,430

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel costs

 

 

18,327

 

 

-

 

 

124,790

 

 

-

 

 

143,117

Net occupancy expenses

 

 

1,047

 

 

-

 

 

22,535

 

 

(45)

 

 

23,537

Equipment expenses

 

 

672

 

 

1

 

 

19,032

 

 

-

 

 

19,705

Other taxes

 

 

62

 

 

-

 

 

11,600

 

 

-

 

 

11,662

Professional fees

 

 

2,689

 

 

27

 

 

84,850

 

 

(100)

 

 

87,466

Communications

 

 

114

 

 

-

 

 

5,735

 

 

-

 

 

5,849

Business promotion

 

 

782

 

 

-

 

 

13,892

 

 

-

 

 

14,674

FDIC deposit insurance

 

 

-

 

 

-

 

 

4,806

 

 

-

 

 

4,806

Other real estate owned (OREO) expenses

 

 

-

 

 

-

 

 

2,677

 

 

-

 

 

2,677

Other operating expenses

 

 

(21,339)

 

 

13

 

 

53,512

 

 

(571)

 

 

31,615

Amortization of intangibles

 

 

24

 

 

-

 

 

2,288

 

 

-

 

 

2,312

 

Total operating expenses

 

 

2,378

 

 

41

 

 

345,717

 

 

(716)

 

 

347,420

Income (loss) before income tax and equity in (losses) earnings of subsidiaries

 

 

197,805

 

 

(2,768)

 

 

224,819

 

 

(201,708)

 

 

218,148

Income tax (benefit) expense

 

 

-

 

 

(581)

 

 

50,586

 

 

218

 

 

50,223

Income (loss) before equity in (losses) earnings of subsidiaries

 

 

197,805

 

 

(2,187)

 

 

174,233

 

 

(201,926)

 

 

167,925

Equity in undistributed (losses) earnings of subsidiaries

 

 

(29,880)

 

 

12,145

 

 

-

 

 

17,735

 

 

-

Net income

 

$

167,925

 

$

9,958

 

$

174,233

 

$

(184,191)

 

$

167,925

Comprehensive income, net of tax

 

$

271,920

 

$

28,018

 

$

278,854

 

$

(306,872)

 

$

271,920

Condensed Consolidating Statement of Cash Flows

 

 

 

 

 

 

Quarter ended March 31, 2020

 

 

 

 

 

 

 

 

 

 

All other

 

 

 

 

 

 

 

 

 

 

Popular, Inc.

 

PNA

 

subsidiaries

 

Elimination

 

Popular, Inc.

(In thousands)

 

Holding Co.

 

Holding Co.

 

and eliminations

 

entries

 

Consolidated

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

34,302

$

(44,645)

$

41,396

$

3,249

$

34,302

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of subsidiaries, net of dividends or distributions

 

539,294

 

43,452

 

-

 

(582,746)

 

-

 

Provision for credit losses

 

158

 

-

 

189,573

 

-

 

189,731

 

Amortization of intangibles

 

24

 

-

 

2,449

 

-

 

2,473

 

Depreciation and amortization of premises and equipment

 

247

 

-

 

14,239

 

-

 

14,486

 

Net accretion of discounts and amortization of premiums and deferred fees

 

308

 

7

 

(27,584)

 

-

 

(27,269)

 

Share-based compensation

 

4,200

 

-

 

1,131

 

-

 

5,331

 

Fair value adjustments on mortgage servicing rights

 

-

 

-

 

5,229

 

-

 

5,229

 

Indemnity reserves on loans sold expense

 

-

 

-

 

4,793

 

-

 

4,793

 

Earnings from investments under the equity method, net of dividends or distributions

 

(3,586)

 

-

 

(6,130)

 

-

 

(9,716)

 

Deferred income tax benefit

 

-

 

(317)

 

(23,104)

 

269

 

(23,152)

 

(Gain) loss on:

 

 

 

 

 

 

 

 

 

 

 

 

 

Disposition of premises and equipment and other productive assets

 

-

 

-

 

(1,369)

 

-

 

(1,369)

 

 

 

Proceeds from insurance claims

 

-

 

-

 

(366)

 

-

 

(366)

 

 

 

Sale of loans, including valuation adjustments on loans held for sale and mortgage banking activities

 

-

 

-

 

(4,944)

 

-

 

(4,944)

 

 

 

Sale of foreclosed assets, including write-downs

 

-

 

-

 

(4,850)

 

-

 

(4,850)

 

Acquisitions of loans held-for-sale

 

-

 

-

 

(51,163)

 

-

 

(51,163)

 

Proceeds from sale of loans held-for-sale

 

-

 

-

 

12,135

 

-

 

12,135

 

Net originations on loans held-for-sale

 

-

 

-

 

(58,166)

 

-

 

(58,166)

 

Net decrease (increase) in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading debt securities

 

-

 

-

 

117,276

 

-

 

117,276

 

 

 

Equity securities

 

(540)

 

-

 

267

 

-

 

(273)

 

 

 

Accrued income receivable

 

110

 

95

 

4,759

 

(170)

 

4,794

 

 

 

Other assets

 

2,437

 

27

 

51,653

 

1,527

 

55,644

 

Net (decrease) increase in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest payable

 

(4,594)

 

(1,550)

 

(3,514)

 

170

 

(9,488)

 

 

 

Pension and other postretirement benefits obligations

 

-

 

-

 

3,276

 

-

 

3,276

 

 

 

Other liabilities

 

(5,974)

 

1

 

(57,543)

 

(2,219)

 

(65,735)

Total adjustments

 

532,084

 

41,715

 

168,047

 

(583,169)

 

158,677

Net cash provided by (used in) operating activities

 

566,386

 

(2,930)

 

209,443

 

(579,920)

 

192,979

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

Net decrease (increase) in money market investments

 

10,000

 

2,930

 

(2,679,671)

 

(12,930)

 

(2,679,671)

 

Purchases of investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

-

 

-

 

(1,550,746)

 

-

 

(1,550,746)

 

 

 

Equity

 

-

 

-

 

(15,140)

 

(79)

 

(15,219)

 

Proceeds from calls, paydowns, maturities and redemptions of investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

-

 

-

 

3,838,754

 

-

 

3,838,754

 

 

 

Held-to-maturity

 

-

 

-

 

2,877

 

-

 

2,877

 

Proceeds from sale of investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

-

 

-

 

12,321

 

-

 

12,321

 

Net repayments (disbursements) on loans

 

147

 

-

 

(192,986)

 

-

 

(192,839)

 

Proceeds from sale of loans

 

-

 

-

 

1,884

 

-

 

1,884

 

Acquisition of loan portfolios

 

-

 

-

 

(96,153)

 

-

 

(96,153)

 

Return of capital from equity method investments

 

-

 

-

 

131

 

-

 

131

 

Payments to acquire equity method investments

 

-

 

-

 

(440)

 

-

 

(440)

 

Acquisition of premises and equipment

 

(901)

 

-

 

(14,232)

 

-

 

(15,133)

 

Proceeds from insurance claims

 

-

 

-

 

366

 

-

 

366

 

Proceeds from sale of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Premises and equipment and other productive assets

 

12

 

-

 

6,647

 

-

 

6,659

 

 

 

Foreclosed assets

 

-

 

-

 

19,413

 

-

 

19,413

Net cash provided by (used in) investing activities

 

9,258

 

2,930

 

(666,975)

 

(13,009)

 

(667,796)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

-

 

-

 

1,055,023

 

(7,682)

 

1,047,341

 

 

 

Assets sold under agreements to repurchase

 

-

 

-

 

(14,612)

 

-

 

(14,612)

 

 

 

Other short-term borrowings

 

-

 

-

 

100,000

 

-

 

100,000

 

Payments of notes payable

 

-

 

-

 

(43,800)

 

-

 

(43,800)

 

Principal payments of finance leases

 

-

 

-

 

(538)

 

-

 

(538)

 

Proceeds from issuance of common stock

 

3,969

 

-

 

-

 

-

 

3,969

 

Payments for repurchase of reedemable preferred stock

 

(28,017)

 

-

 

-

 

-

 

(28,017)

 

Dividends paid to parent company

 

-

 

-

 

(580,000)

 

580,000

 

-

 

Dividends paid

 

(29,726)

 

-

 

-

 

-

 

(29,726)

 

Net payments for repurchase of common stock

 

(500,183)

 

-

 

(39)

 

-

 

(500,222)

 

Payments related to tax withholding for share-based compensation

 

(1,281)

 

-

 

(1,298)

 

-

 

(2,579)

Net cash (used in) provided by financing activities

 

(555,238)

 

-

 

514,736

 

572,318

 

531,816

Net decrease in cash and due from banks, and restricted cash

 

20,406

 

-

 

57,204

 

(20,611)

 

56,999

Cash and due from banks, and restricted cash at beginning of period

 

56,554

 

-

 

393,777

 

(56,008)

 

394,323

Cash and due from banks, and restricted cash at end of period

$

76,960

$

-

$

450,981

$

(76,619)

$

451,322

Condensed Consolidating Statement of Cash Flows

 

 

 

 

 

 

Quarter ended March 31, 2019

 

 

 

 

 

 

 

 

 

 

All other

 

 

 

 

 

 

 

 

 

 

Popular, Inc.

 

PNA

 

subsidiaries

 

Elimination

 

Popular, Inc.

(In thousands)

 

Holding Co.

 

Holding Co.

 

and eliminations

 

entries

 

Consolidated

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net income

$

167,925

$

9,958

$

174,233

$

(184,191)

$

167,925

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of subsidiaries, net of dividends or distributions

 

29,880

 

(12,145)

 

-

 

(17,735)

 

-

 

Provision for loan losses

 

106

 

-

 

41,719

 

-

 

41,825

 

Amortization of intangibles

 

24

 

-

 

2,288

 

-

 

2,312

 

Depreciation and amortization of premises and equipment

 

188

 

-

 

14,107

 

-

 

14,295

 

Net accretion of discounts and amortization of premiums and deferred fees

 

316

 

7

 

(39,136)

 

-

 

(38,813)

 

Share-based compensation

 

5,369

 

-

 

1,561

 

-

 

6,930

 

Fair value adjustments on mortgage servicing rights

 

-

 

-

 

3,825

 

-

 

3,825

 

Adjustments to indemnity reserves on loans sold

 

-

 

-

 

93

 

-

 

93

 

Earnings from investments under the equity method, net of dividends or distributions

 

(4,587)

 

1,267

 

(5,707)

 

-

 

(9,027)

 

Deferred income tax (benefit) expense

 

-

 

(581)

 

46,159

 

218

 

45,796

 

Loss (gain) on:

 

 

 

 

 

 

 

 

 

 

 

 

 

Disposition of premises and equipment and other productive assets

 

40

 

-

 

(2,305)

 

-

 

(2,265)

 

 

 

Sale of loans, including valuation adjustments on loans held for sale and mortgage banking activities

 

-

 

-

 

(4,058)

 

-

 

(4,058)

 

 

 

Sale of foreclosed assets, including write-downs

 

-

 

-

 

(3,772)

 

-

 

(3,772)

 

Acquisitions of loans held-for-sale

 

-

 

-

 

(44,748)

 

-

 

(44,748)

 

Proceeds from sale of loans held-for-sale

 

-

 

-

 

13,802

 

-

 

13,802

 

Net originations on loans held-for-sale

 

-

 

-

 

(53,231)

 

-

 

(53,231)

 

Net decrease (increase) in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading debt securities

 

-

 

-

 

105,838

 

-

 

105,838

 

 

 

Equity securities

 

(2,374)

 

-

 

(1,988)

 

-

 

(4,362)

 

 

 

Accrued income receivable

 

(99)

 

97

 

3,326

 

(100)

 

3,224

 

 

 

Other assets

 

(1,337)

 

26

 

24,028

 

5,992

 

28,709

 

Net (decrease) increase in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest payable

 

(4,594)

 

(1,551)

 

(870)

 

100

 

(6,915)

 

 

 

Pension and other postretirement benefits obligations

 

-

 

-

 

5,297

 

-

 

5,297

 

 

 

Other liabilities

 

(9,019)

 

(98)

 

(84,870)

 

(6,598)

 

(100,585)

Total adjustments

 

13,913

 

(12,978)

 

21,358

 

(18,123)

 

4,170

Net cash provided by (used in) operating activities

 

181,838

 

(3,020)

 

195,591

 

(202,314)

 

172,095

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

Net decrease (increase) in money market investments

 

45,000

 

3,020

 

(643,117)

 

(48,020)

 

(643,117)

 

Purchases of investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

-

 

-

 

(3,123,508)

 

-

 

(3,123,508)

 

 

 

Equity

 

-

 

-

 

(1,297)

 

58

 

(1,239)

 

Proceeds from calls, paydowns, maturities and redemptions of investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

-

 

-

 

3,006,779

 

-

 

3,006,779

 

 

 

Held-to-maturity

 

-

 

-

 

2,587

 

-

 

2,587

 

Proceeds from sale of investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

-

 

-

 

2,679

 

-

 

2,679

 

Net repayments (disbursements) on loans

 

252

 

-

 

(79,221)

 

-

 

(78,969)

 

Proceeds from sale of loans

 

-

 

-

 

7,806

 

-

 

7,806

 

Acquisition of loan portfolios

 

-

 

-

 

(129,875)

 

-

 

(129,875)

 

Return of capital from equity method investments

 

-

 

-

 

1,371

 

-

 

1,371

 

Acquisition of premises and equipment

 

(231)

 

-

 

(19,207)

 

-

 

(19,438)

 

Proceeds from sale of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Premises and equipment and other productive assets

 

3

 

-

 

5,972

 

-

 

5,975

 

 

 

Foreclosed assets

 

-

 

-

 

26,119

 

-

 

26,119

Net cash provided by (used in) investing activities

 

45,024

 

3,020

 

(942,912)

 

(47,962)

 

(942,830)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

-

 

-

 

1,073,526

 

96,180

 

1,169,706

 

 

 

Assets sold under agreements to repurchase

 

-

 

-

 

(80,659)

 

-

 

(80,659)

 

 

 

Other short-term borrowings

 

-

 

-

 

1

 

-

 

1

 

Payments of notes payable

 

-

 

-

 

(59,526)

 

-

 

(59,526)

 

Principal payments of finance leases

 

-

 

-

 

(439)

 

-

 

(439)

 

Proceeds from issuance of common stock

 

3,981

 

-

 

(1,005)

 

-

 

2,976

 

Dividends paid to parent company

 

-

 

-

 

(202,300)

 

202,300

 

-

 

Dividends paid

 

(25,713)

 

-

 

-

 

-

 

(25,713)

 

Net payments for repurchase of common stock

 

(250,271)

 

-

 

2

 

(45)

 

(250,314)

 

Payments related to tax withholding for share-based compensation

 

(2,805)

 

-

 

-

 

-

 

(2,805)

Net cash (used in) provided by financing activities

 

(274,808)

 

-

 

729,600

 

298,435

 

753,227

Net decrease in cash and due from banks, and restricted cash

 

(47,946)

 

-

 

(17,721)

 

48,159

 

(17,508)

Cash and due from banks, and restricted cash at beginning of period

 

68,278

 

-

 

402,995

 

(68,022)

 

403,251

Cash and due from banks, and restricted cash at end of period

$

20,332

$

-

$

385,274

$

(19,863)

$

385,743