Condensed consolidating financial information of guarantor and issuers of registered guaranteed securities (Tables)

3 Months Ended

Mar. 31, 2020

Table Text Block

Condensed Balance Sheet

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 Income Statement

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 Cash Flow Statement

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