Loans |
Note 8 – Loans For a summary of the accounting policies related to loans, interest recognition and allowance for credit losses refer to Note 2 - Summary of significant accounting policies of the 2021 Form 10-K. During the quarter and nine months ended September 30, 2022, the Corporation recorded purchases (including repurchases) of mortgage loans amounting to $66 million and $219 million, respectively, including $0.3 million and $4 million in PCD loans, respectively, and consumer loans of $135 million and $349 million, respectively. During the quarter and nine months ended September 30, 2022, the Corporation recorded purchases of $106 million and $129 million, respectively in commercial loans. During the quarter and nine months ended September 30, 2021, the Corporation recorded purchases (including repurchases) of mortgage loans amounting to $90 million and $310 million, respectively, including $1 million and $13 million in PCD loans, respectively, and commercial loans of $41 million and $90 million, respectively. The Corporation performed whole-loan sales involving approximately $17 million and $50 million of residential mortgage loans during the quarter and nine months ended September 30, 2022, respectively (September 30, 2021 - $31 million and $116 million, respectively). During the quarter and nine months ended September 30, 2022, the Corporation performed sales of commercial loans, including loan participations amounting to $11 million and $54 million, respectively (September 30, 2021 - $35 million and $44 million, respectively). Also, the Corporation securitized approximately $14 million and $169 million of mortgage loans into Government National Mortgage Association (“GNMA”) mortgage-backed securities during the quarter and nine months ended September 30, 2022, respectively (September 30, 2021 - $85 million and $294 million, respectively). Furthermore, the Corporation securitized approximately $22 million and $117 million of mortgage loans into Federal National Mortgage Association (“FNMA”) mortgage-backed securities during the quarter and nine months ended September 30, 2022, respectively (September 30, 2021 - $76 million and $235 million, respectively). Also, the Corporation securitized approximately $9 million of mortgage loans into Federal Home Loan Mortgage Corporation (“FHLMC”) mortgage-backed securities during the nine months ended September 30, 2022 (September 30, 2021 - $4 million and $18 million for the quarter and nine months ended). Delinquency status The following tables present the amortized cost basis of loans held-in-portfolio (“HIP”), net of unearned income, by past due status, and by loan class including those that are in non-performing status or that are accruing interest but are past due 90 days or more at September 30, 2022 and December 31, 2021.
September 30, 2022 |
Puerto Rico |
|
|
|
|
|
|
|
|
|
|
|
Past due |
|
|
|
|
|
|
|
Past due 90 days or more |
|
|
30-59 |
|
60-89 |
|
90 days |
Total |
|
|
|
|
|
|
Non-accrual |
|
|
Accruing |
(In thousands) |
days |
|
days |
|
or more |
past due |
|
Current |
|
Loans HIP |
|
|
loans |
|
loans |
Commercial multi-family |
$ |
546 |
|
$ |
- |
|
$ |
251 |
$ |
797 |
|
$ |
276,521 |
|
$ |
277,318 |
|
|
$ |
251 |
|
$ |
- |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
3,005 |
|
|
789 |
|
|
21,443 |
|
25,237 |
|
|
2,820,803 |
|
|
2,846,040 |
|
|
|
21,443 |
|
|
- |
|
Owner occupied |
|
10,992 |
|
|
7,834 |
|
|
28,379 |
|
47,205 |
|
|
1,540,932 |
|
|
1,588,137 |
|
|
|
28,379 |
|
|
- |
Commercial and industrial |
|
7,105 |
|
|
1,139 |
|
|
38,003 |
|
46,247 |
|
|
3,547,841 |
|
|
3,594,088 |
|
|
|
37,375 |
|
|
628 |
Construction |
|
- |
|
|
1,087 |
|
|
- |
|
1,087 |
|
|
210,480 |
|
|
211,567 |
|
|
|
- |
|
|
- |
Mortgage |
|
237,316 |
|
|
89,802 |
|
|
581,378 |
|
908,496 |
|
|
5,147,347 |
|
|
6,055,843 |
|
|
|
252,773 |
|
|
328,605 |
Leasing |
|
14,487 |
|
|
2,740 |
|
|
5,697 |
|
22,924 |
|
|
1,515,580 |
|
|
1,538,504 |
|
|
|
5,697 |
|
|
- |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
7,268 |
|
|
4,481 |
|
|
10,361 |
|
22,110 |
|
|
966,406 |
|
|
988,516 |
|
|
|
- |
|
|
10,361 |
|
Home equity lines of credit |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
2,957 |
|
|
2,957 |
|
|
|
- |
|
|
- |
|
Personal |
|
13,725 |
|
|
7,348 |
|
|
18,137 |
|
39,210 |
|
|
1,478,746 |
|
|
1,517,956 |
|
|
|
18,117 |
|
|
20 |
|
Auto |
|
71,230 |
|
|
21,852 |
|
|
34,432 |
|
127,514 |
|
|
3,401,390 |
|
|
3,528,904 |
|
|
|
34,432 |
|
|
- |
|
Other |
|
708 |
|
|
768 |
|
|
12,025 |
|
13,501 |
|
|
124,950 |
|
|
138,451 |
|
|
|
11,748 |
|
|
277 |
Total |
$ |
366,382 |
|
$ |
137,840 |
|
$ |
750,106 |
$ |
1,254,328 |
|
$ |
21,033,953 |
|
$ |
22,288,281 |
|
|
$ |
410,215 |
|
$ |
339,891 |
September 30, 2022 |
Popular U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past due |
|
|
|
|
|
|
|
Past due 90 days or more |
|
|
30-59 |
|
60-89 |
|
90 days |
|
Total |
|
|
|
|
|
|
Non-accrual |
|
|
Accruing |
(In thousands) |
days |
|
days |
|
or more |
|
past due |
|
Current |
|
Loans HIP |
|
|
loans |
|
loans |
Commercial multi-family |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
1,926,791 |
|
$ |
1,926,791 |
|
|
$ |
- |
|
$ |
- |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
- |
|
|
136 |
|
|
10,631 |
|
|
10,767 |
|
|
1,660,668 |
|
|
1,671,435 |
|
|
|
10,631 |
|
|
- |
|
Owner occupied |
|
- |
|
|
5,106 |
|
|
606 |
|
|
5,712 |
|
|
1,472,699 |
|
|
1,478,411 |
|
|
|
606 |
|
|
- |
Commercial and industrial |
|
924 |
|
|
2,144 |
|
|
5,803 |
|
|
8,871 |
|
|
1,975,768 |
|
|
1,984,639 |
|
|
|
5,191 |
|
|
612 |
Construction |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
604,723 |
|
|
604,723 |
|
|
|
- |
|
|
- |
Mortgage |
|
1,501 |
|
|
4,558 |
|
|
21,533 |
|
|
27,592 |
|
|
1,228,278 |
|
|
1,255,870 |
|
|
|
21,533 |
|
|
- |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
34 |
|
|
34 |
|
|
|
- |
|
|
- |
|
Home equity lines of credit |
|
256 |
|
|
577 |
|
|
3,970 |
|
|
4,803 |
|
|
65,036 |
|
|
69,839 |
|
|
|
3,970 |
|
|
- |
|
Personal |
|
1,495 |
|
|
1,529 |
|
|
1,261 |
|
|
4,285 |
|
|
233,780 |
|
|
238,065 |
|
|
|
1,261 |
|
|
- |
|
Other |
|
704 |
|
|
- |
|
|
12 |
|
|
716 |
|
|
4,384 |
|
|
5,100 |
|
|
|
12 |
|
|
- |
Total |
$ |
4,880 |
|
$ |
14,050 |
|
$ |
43,816 |
|
$ |
62,746 |
|
$ |
9,172,161 |
|
$ |
9,234,907 |
|
|
$ |
43,204 |
|
$ |
612 |
September 30, 2022 |
|
Popular, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Past due |
|
|
|
|
|
|
|
Past due 90 days or more |
|
|
|
30-59 |
|
60-89 |
|
90 days |
Total |
|
|
|
|
|
Non-accrual |
|
|
Accruing |
|
(In thousands) |
days |
|
days |
|
or more |
past due |
|
Current |
|
Loans HIP[2] [3] |
|
|
loans |
|
loans |
|
Commercial multi-family |
$ |
546 |
|
$ |
- |
|
$ |
251 |
$ |
797 |
|
$ |
2,203,312 |
|
$ |
2,204,109 |
|
|
$ |
251 |
|
$ |
- |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
3,005 |
|
|
925 |
|
|
32,074 |
|
36,004 |
|
|
4,481,471 |
|
|
4,517,475 |
|
|
|
32,074 |
|
|
- |
|
|
Owner occupied |
|
10,992 |
|
|
12,940 |
|
|
28,985 |
|
52,917 |
|
|
3,013,631 |
|
|
3,066,548 |
|
|
|
28,985 |
|
|
- |
|
Commercial and industrial |
|
8,029 |
|
|
3,283 |
|
|
43,806 |
|
55,118 |
|
|
5,523,609 |
|
|
5,578,727 |
|
|
|
42,566 |
|
|
1,240 |
|
Construction |
|
- |
|
|
1,087 |
|
|
- |
|
1,087 |
|
|
815,203 |
|
|
816,290 |
|
|
|
- |
|
|
- |
|
Mortgage[1] |
|
238,817 |
|
|
94,360 |
|
|
602,911 |
|
936,088 |
|
|
6,375,625 |
|
|
7,311,713 |
|
|
|
274,306 |
|
|
328,605 |
|
Leasing |
|
14,487 |
|
|
2,740 |
|
|
5,697 |
|
22,924 |
|
|
1,515,580 |
|
|
1,538,504 |
|
|
|
5,697 |
|
|
- |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
7,268 |
|
|
4,481 |
|
|
10,361 |
|
22,110 |
|
|
966,440 |
|
|
988,550 |
|
|
|
- |
|
|
10,361 |
|
|
Home equity lines of credit |
|
256 |
|
|
577 |
|
|
3,970 |
|
4,803 |
|
|
67,993 |
|
|
72,796 |
|
|
|
3,970 |
|
|
- |
|
|
Personal |
|
15,220 |
|
|
8,877 |
|
|
19,398 |
|
43,495 |
|
|
1,712,526 |
|
|
1,756,021 |
|
|
|
19,378 |
|
|
20 |
|
|
Auto |
|
71,230 |
|
|
21,852 |
|
|
34,432 |
|
127,514 |
|
|
3,401,390 |
|
|
3,528,904 |
|
|
|
34,432 |
|
|
- |
|
|
Other |
|
1,412 |
|
|
768 |
|
|
12,037 |
|
14,217 |
|
|
129,334 |
|
|
143,551 |
|
|
|
11,760 |
|
|
277 |
|
Total |
$ |
371,262 |
|
$ |
151,890 |
|
$ |
793,922 |
$ |
1,317,074 |
|
$ |
30,206,114 |
|
$ |
31,523,188 |
|
|
$ |
453,419 |
|
$ |
340,503 |
|
[1] |
It is the Corporation’s policy to report delinquent residential mortgage loans insured by Federal Housing Administration (“FHA”) or guaranteed by the U.S. Department of Veterans Affairs (“VA”) as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $9 million at September 30, 2022 related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below. Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to repurchases option are required to be reflected (rebooked) on the financial statements of BPPR with an offsetting liability. These balances include $198 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of September 30, 2022. Furthermore, the Corporation has approximately $42 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation’s policy to exclude these balances from non-performing assets. |
[2] |
Loans held-in-portfolio are net of $283 million in unearned income and exclude $8 million in loans held-for-sale. |
[3] |
Includes $7.2 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $3.0 billion were pledged at the Federal Home Loan Bank ("FHLB") as collateral for borrowings and $1.9 billion at the Federal Reserve Bank ("FRB") for discount window borrowings and $2.3 billion serve as collateral for public funds. |
December 31, 2021 |
|
Puerto Rico |
|
|
|
|
|
|
|
|
|
|
|
|
|
Past due |
|
|
|
|
|
|
Past due 90 days or more |
|
|
|
|
30-59 |
|
|
60-89 |
|
|
90 days |
|
Total |
|
|
|
|
|
|
Non-accrual |
|
|
Accruing |
|
(In thousands) |
|
days |
|
|
days |
|
|
or more |
|
past due |
Current |
|
Loans HIP |
|
|
loans |
|
loans |
|
Commercial multi-family |
$ |
314 |
|
$ |
- |
|
$ |
272 |
|
$ |
586 |
$ |
154,183 |
|
$ |
154,769 |
|
|
$ |
272 |
|
$ |
- |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
2,399 |
|
|
136 |
|
|
20,716 |
|
|
23,251 |
|
2,266,672 |
|
|
2,289,923 |
|
|
|
20,716 |
|
|
- |
|
|
Owner occupied |
|
3,329 |
|
|
278 |
|
|
54,335 |
|
|
57,942 |
|
1,365,787 |
|
|
1,423,729 |
|
|
|
54,335 |
|
|
- |
|
Commercial and industrial |
|
3,438 |
|
|
1,727 |
|
|
45,242 |
|
|
50,407 |
|
3,478,041 |
|
|
3,528,448 |
|
|
|
44,724 |
|
|
518 |
|
Construction |
|
- |
|
|
- |
|
|
485 |
|
|
485 |
|
86,626 |
|
|
87,111 |
|
|
|
485 |
|
|
- |
|
Mortgage |
|
217,830 |
|
|
81,754 |
|
|
805,245 |
|
|
1,104,829 |
|
5,147,037 |
|
|
6,251,866 |
|
|
|
333,887 |
|
|
471,358 |
|
Leasing |
|
9,240 |
|
|
2,037 |
|
|
3,102 |
|
|
14,379 |
|
1,366,940 |
|
|
1,381,319 |
|
|
|
3,102 |
|
|
- |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
5,768 |
|
|
3,520 |
|
|
8,577 |
|
|
17,865 |
|
901,986 |
|
|
919,851 |
|
|
|
- |
|
|
8,577 |
|
|
Home equity lines of credit |
|
46 |
|
|
- |
|
|
23 |
|
|
69 |
|
3,502 |
|
|
3,571 |
|
|
|
- |
|
|
23 |
|
|
Personal |
|
10,027 |
|
|
6,072 |
|
|
21,235 |
|
|
37,334 |
|
1,250,726 |
|
|
1,288,060 |
|
|
|
21,235 |
|
|
- |
|
|
Auto |
|
59,128 |
|
|
15,019 |
|
|
23,085 |
|
|
97,232 |
|
3,314,955 |
|
|
3,412,187 |
|
|
|
23,085 |
|
|
- |
|
|
Other |
|
432 |
|
|
714 |
|
|
12,621 |
|
|
13,767 |
|
110,781 |
|
|
124,548 |
|
|
|
12,448 |
|
|
173 |
|
Total |
$ |
311,951 |
|
$ |
111,257 |
|
$ |
994,938 |
|
$ |
1,418,146 |
$ |
19,447,236 |
|
$ |
20,865,382 |
|
|
$ |
514,289 |
|
$ |
480,649 |
|
December 31, 2021 |
Popular U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past due |
|
|
|
|
|
|
|
|
Past due 90 days or more |
|
|
|
|
30-59 |
|
|
60-89 |
|
|
90 days |
|
|
Total |
|
|
|
|
|
|
|
Non-accrual |
|
|
Accruing |
(In thousands) |
|
|
days |
|
|
days |
|
|
or more |
|
|
past due |
|
|
Current |
|
|
Loans HIP |
|
|
loans |
|
loans |
Commercial multi-family |
|
$ |
3,826 |
|
$ |
- |
|
$ |
- |
|
$ |
3,826 |
|
$ |
1,804,035 |
|
$ |
1,807,861 |
|
|
$ |
- |
|
$ |
- |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
|
5,721 |
|
|
683 |
|
|
622 |
|
|
7,026 |
|
|
2,316,441 |
|
|
2,323,467 |
|
|
|
622 |
|
|
- |
|
Owner occupied |
|
|
1,095 |
|
|
- |
|
|
1,013 |
|
|
2,108 |
|
|
392,265 |
|
|
394,373 |
|
|
|
1,013 |
|
|
- |
Commercial and industrial |
|
|
9,410 |
|
|
2,680 |
|
|
4,015 |
|
|
16,105 |
|
|
1,794,026 |
|
|
1,810,131 |
|
|
|
3,897 |
|
|
118 |
Construction |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
629,109 |
|
|
629,109 |
|
|
|
- |
|
|
- |
Mortgage |
|
|
11,711 |
|
|
2,573 |
|
|
21,969 |
|
|
36,253 |
|
|
1,139,077 |
|
|
1,175,330 |
|
|
|
21,969 |
|
|
- |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
10 |
|
|
10 |
|
|
|
- |
|
|
- |
|
Home equity lines of credit |
|
|
71 |
|
|
34 |
|
|
5,406 |
|
|
5,511 |
|
|
69,780 |
|
|
75,291 |
|
|
|
5,406 |
|
|
- |
|
Personal |
|
|
863 |
|
|
574 |
|
|
681 |
|
|
2,118 |
|
|
152,827 |
|
|
154,945 |
|
|
|
681 |
|
|
- |
|
Other |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
4,658 |
|
|
4,658 |
|
|
|
- |
|
|
- |
Total |
|
$ |
32,697 |
|
$ |
6,544 |
|
$ |
33,706 |
|
$ |
72,947 |
|
$ |
8,302,228 |
|
$ |
8,375,175 |
|
|
$ |
33,588 |
|
$ |
118 |
December 31, 2021 |
Popular, Inc. |
|
|
|
|
|
|
|
|
|
|
|
Past due |
|
|
|
|
|
|
|
Past due 90 days or more |
|
|
|
30-59 |
|
|
60-89 |
|
|
90 days |
|
Total |
|
|
|
|
|
|
Non-accrual |
|
|
Accruing |
(In thousands) |
|
days |
|
|
days |
|
|
or more |
|
past due |
|
Current |
|
Loans HIP[2] [3] |
|
|
loans |
|
loans |
Commercial multi-family |
$ |
4,140 |
|
$ |
- |
|
$ |
272 |
$ |
4,412 |
|
$ |
1,958,218 |
|
$ |
1,962,630 |
|
|
$ |
272 |
|
$ |
- |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
8,120 |
|
|
819 |
|
|
21,338 |
|
30,277 |
|
|
4,583,113 |
|
|
4,613,390 |
|
|
|
21,338 |
|
|
- |
|
Owner occupied |
|
4,424 |
|
|
278 |
|
|
55,348 |
|
60,050 |
|
|
1,758,052 |
|
|
1,818,102 |
|
|
|
55,348 |
|
|
- |
Commercial and industrial |
|
12,848 |
|
|
4,407 |
|
|
49,257 |
|
66,512 |
|
|
5,272,067 |
|
|
5,338,579 |
|
|
|
48,621 |
|
|
636 |
Construction |
|
- |
|
|
- |
|
|
485 |
|
485 |
|
|
715,735 |
|
|
716,220 |
|
|
|
485 |
|
|
- |
Mortgage[1] |
|
229,541 |
|
|
84,327 |
|
|
827,214 |
|
1,141,082 |
|
|
6,286,114 |
|
|
7,427,196 |
|
|
|
355,856 |
|
|
471,358 |
Leasing |
|
9,240 |
|
|
2,037 |
|
|
3,102 |
|
14,379 |
|
|
1,366,940 |
|
|
1,381,319 |
|
|
|
3,102 |
|
|
- |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
5,768 |
|
|
3,520 |
|
|
8,577 |
|
17,865 |
|
|
901,996 |
|
|
919,861 |
|
|
|
- |
|
|
8,577 |
|
Home equity lines of credit |
|
117 |
|
|
34 |
|
|
5,429 |
|
5,580 |
|
|
73,282 |
|
|
78,862 |
|
|
|
5,406 |
|
|
23 |
|
Personal |
|
10,890 |
|
|
6,646 |
|
|
21,916 |
|
39,452 |
|
|
1,403,553 |
|
|
1,443,005 |
|
|
|
21,916 |
|
|
- |
|
Auto |
|
59,128 |
|
|
15,019 |
|
|
23,085 |
|
97,232 |
|
|
3,314,955 |
|
|
3,412,187 |
|
|
|
23,085 |
|
|
- |
|
Other |
|
432 |
|
|
714 |
|
|
12,621 |
|
13,767 |
|
|
115,439 |
|
|
129,206 |
|
|
|
12,448 |
|
|
173 |
Total |
$ |
344,648 |
|
$ |
117,801 |
|
$ |
1,028,644 |
$ |
1,491,093 |
|
$ |
27,749,464 |
|
$ |
29,240,557 |
|
|
$ |
547,877 |
|
$ |
480,767 |
[1] |
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 non-performing since the principal repayment is insured. The balance of these loans includes $13 million at December 31, 2021 related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below. Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to repurchases option are required to be reflected (rebooked) on the financial statements of BPPR with an offsetting liability. These balances include $304 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2021. Furthermore, the Corporation has approximately $50 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation’s policy to exclude these balances from non-performing assets. |
[2] |
Loans held-in-portfolio are net of $266 million in unearned income and exclude $59 million in loans held-for-sale. |
[3] |
Includes $6.6 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $3.2 billion were pledged at the FHLB as collateral for borrowings and $1.7 billion at the FRB for discount window borrowings and $1.7 billion serve as collateral for public funds. | Recognition of interest income on mortgage loans is generally discontinued when loans are 90 days or more in arrears on payments of principal or interest. The Corporation discontinues the recognition of interest income on residential mortgage loans insured by the FHA or guaranteed by VA when 15 months delinquent as to principal or interest, since the principal repayment on these loans is insured. At September 30, 2022, mortgage loans held-in-portfolio include $1.9 billion (December 31, 2021 - $1.9 billion) of loans insured by the FHA, or guaranteed by the VA of which $0.3 billion (December 31, 2021 - $0.5 billion) are 90 days or more past due. These balances include $725 million in loans modified under a TDR (December 31, 2021 - $716 million), that are presented as accruing loans. The portfolio of guaranteed loans includes $198 million of residential mortgage loans in Puerto Rico that are no longer accruing interest as of September 30, 2022 (December 31, 2021 - $304 million). The Corporation has approximately $42 million in reverse mortgage loans in Puerto Rico which are guaranteed by FHA, but which are currently not accruing interest at September 30, 2022 (December 31, 2021 - $50 million). Loans with a delinquency status of 90 days past due as of September 30, 2022 include $9 million in loans previously pooled into GNMA securities (December 31, 2021 - $13 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected on the financial statements of BPPR with an offsetting liability. Loans in our serviced GNMA portfolio benefit from payment forbearance programs but continue to reflect the contractual delinquency until the borrower repays deferred payments or completes a payment deferral modification or other borrower assistance alternative. The following tables present the amortized cost basis of non-accrual loans as of September 30, 2022 and December 31, 2021 by class of loans:
September 30, 2022 |
|
Puerto Rico |
|
Popular U.S. |
|
Popular, Inc. |
(In thousands) |
Non-accrual with no allowance |
Non-accrual with allowance |
|
Non-accrual with no allowance |
Non-accrual with allowance |
|
Non-accrual with no allowance |
Non-accrual with allowance |
Commercial multi-family |
$ |
- |
$ |
251 |
|
$ |
- |
$ |
- |
|
$ |
- |
$ |
251 |
Commercial real estate non-owner occupied |
|
16,931 |
|
4,512 |
|
|
- |
|
10,631 |
|
|
16,931 |
|
15,143 |
Commercial real estate owner occupied |
|
11,247 |
|
17,132 |
|
|
- |
|
606 |
|
|
11,247 |
|
17,738 |
Commercial and industrial |
|
22,844 |
|
14,531 |
|
|
- |
|
5,191 |
|
|
22,844 |
|
19,722 |
Mortgage |
|
132,300 |
|
120,473 |
|
|
- |
|
21,533 |
|
|
132,300 |
|
142,006 |
Leasing |
|
218 |
|
5,479 |
|
|
- |
|
- |
|
|
218 |
|
5,479 |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELOCs |
|
- |
|
- |
|
|
- |
|
3,970 |
|
|
- |
|
3,970 |
Personal |
|
5,560 |
|
12,557 |
|
|
- |
|
1,261 |
|
|
5,560 |
|
13,818 |
Auto |
|
1,067 |
|
33,365 |
|
|
- |
|
- |
|
|
1,067 |
|
33,365 |
Other |
|
263 |
|
11,485 |
|
|
- |
|
12 |
|
|
263 |
|
11,497 |
Total |
$ |
190,430 |
$ |
219,785 |
|
$ |
- |
$ |
43,204 |
|
$ |
190,430 |
$ |
262,989 |
December 31, 2021 |
|
Puerto Rico |
|
Popular U.S. |
|
Popular, Inc. |
(In thousands) |
Non-accrual with no allowance |
Non-accrual with allowance |
|
Non-accrual with no allowance |
Non-accrual with allowance |
|
Non-accrual with no allowance |
Non-accrual with allowance |
Commercial multi-family |
$ |
- |
$ |
272 |
|
$ |
- |
$ |
- |
|
$ |
- |
$ |
272 |
Commercial real estate non-owner occupied |
|
15,819 |
|
4,897 |
|
|
- |
|
622 |
|
|
15,819 |
|
5,519 |
Commercial real estate owner occupied |
|
13,491 |
|
40,844 |
|
|
- |
|
1,013 |
|
|
13,491 |
|
41,857 |
Commercial and industrial |
|
30,177 |
|
14,547 |
|
|
- |
|
3,897 |
|
|
30,177 |
|
18,444 |
Construction |
|
- |
|
485 |
|
|
- |
|
- |
|
|
- |
|
485 |
Mortgage |
|
169,827 |
|
164,060 |
|
|
29 |
|
21,940 |
|
|
169,856 |
|
186,000 |
Leasing |
|
276 |
|
2,826 |
|
|
- |
|
- |
|
|
276 |
|
2,826 |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELOCs |
|
- |
|
- |
|
|
- |
|
5,406 |
|
|
- |
|
5,406 |
Personal |
|
6,279 |
|
14,956 |
|
|
81 |
|
600 |
|
|
6,360 |
|
15,556 |
Auto |
|
879 |
|
22,206 |
|
|
- |
|
- |
|
|
879 |
|
22,206 |
Other |
|
- |
|
12,448 |
|
|
- |
|
- |
|
|
- |
|
12,448 |
Total |
$ |
236,748 |
$ |
277,541 |
|
$ |
110 |
$ |
33,478 |
|
$ |
236,858 |
$ |
311,019 | Loans in non-accrual status with no allowance at September 30, 2022 include $190 million in collateral dependent loans (December 31, 2021 - $237 million). The Corporation recognized $3 million in interest income on non-accrual loans during the nine months ended September 30, 2022 (September 30, 2021 - $4 million). The Corporation has designated loans classified as collateral dependent for which the ACL is measured based on the fair value of the collateral less cost to sell, when foreclosure is probable or when the repayment is expected to be provided substantially by the sale or operation of the collateral and the borrower is experiencing financial difficulty. The fair value of the collateral is based on appraisals, which may be adjusted due to their age, and the type, location, and condition of the property or area or general market conditions to reflect the expected change in value between the effective date of the appraisal and the measurement date. Appraisals are updated every one to two years depending on the type of loan and the total exposure of the borrower. The following tables present the amortized cost basis of collateral-dependent loans, for which the ACL was measured based on the fair value of the collateral less cost to sell, by class of loans and type of collateral as of September 30, 2022 and December 31, 2021:
|
|
September 30, 2022 |
(In thousands) |
|
Real Estate |
|
Auto |
|
Equipment |
|
Accounts Receivables |
|
Other |
|
Total |
Puerto Rico |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
$ |
1,342 |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
1,342 |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
204,407 |
|
- |
|
- |
|
- |
|
- |
|
204,407 |
|
Owner occupied |
|
21,571 |
|
- |
|
- |
|
- |
|
- |
|
21,571 |
Commercial and industrial |
|
1,425 |
|
- |
|
32 |
|
9,777 |
|
23,811 |
|
35,045 |
Mortgage |
|
142,473 |
|
- |
|
- |
|
- |
|
- |
|
142,473 |
Leasing |
|
- |
|
814 |
|
3 |
|
- |
|
- |
|
817 |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal |
|
5,642 |
|
- |
|
- |
|
- |
|
- |
|
5,642 |
|
Auto |
|
- |
|
9,280 |
|
- |
|
- |
|
- |
|
9,280 |
|
Other |
|
- |
|
- |
|
- |
|
- |
|
263 |
|
263 |
Total Puerto Rico |
$ |
376,860 |
$ |
10,094 |
$ |
35 |
$ |
9,777 |
$ |
24,074 |
$ |
420,840 |
Popular U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
10,631 |
|
- |
|
- |
|
- |
|
- |
|
10,631 |
Mortgage |
$ |
853 |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
853 |
Total Popular U.S. |
$ |
11,484 |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
11,484 |
Popular, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
$ |
1,342 |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
1,342 |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
215,038 |
|
- |
|
- |
|
- |
|
- |
|
215,038 |
|
Owner occupied |
|
21,571 |
|
- |
|
- |
|
- |
|
- |
|
21,571 |
Commercial and industrial |
|
1,425 |
|
- |
|
32 |
|
9,777 |
|
23,811 |
|
35,045 |
Mortgage |
|
143,326 |
|
- |
|
- |
|
- |
|
- |
|
143,326 |
Leasing |
|
- |
|
814 |
|
3 |
|
- |
|
- |
|
817 |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal |
|
5,642 |
|
- |
|
- |
|
- |
|
- |
|
5,642 |
|
Auto |
|
- |
|
9,280 |
|
- |
|
- |
|
- |
|
9,280 |
|
Other |
|
- |
|
- |
|
- |
|
- |
|
263 |
|
263 |
Total Popular, Inc. |
$ |
388,344 |
$ |
10,094 |
$ |
35 |
$ |
9,777 |
$ |
24,074 |
$ |
432,324 |
|
|
December 31, 2021 |
(In thousands) |
|
Real Estate |
|
Auto |
|
Equipment |
|
Accounts Receivables |
|
Other |
|
Total |
Puerto Rico |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
$ |
1,374 |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
1,374 |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
211,026 |
|
- |
|
- |
|
- |
|
- |
|
211,026 |
|
Owner occupied |
|
47,268 |
|
- |
|
- |
|
- |
|
- |
|
47,268 |
Commercial and industrial |
|
2,650 |
|
- |
|
680 |
|
10,675 |
|
27,893 |
|
41,898 |
Mortgage |
|
179,774 |
|
- |
|
- |
|
- |
|
- |
|
179,774 |
Leasing |
|
- |
|
574 |
|
- |
|
- |
|
- |
|
574 |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal |
|
6,165 |
|
- |
|
- |
|
- |
|
- |
|
6,165 |
|
Auto |
|
- |
|
8,983 |
|
- |
|
- |
|
- |
|
8,983 |
Total Puerto Rico |
$ |
448,257 |
$ |
9,557 |
$ |
680 |
$ |
10,675 |
$ |
27,893 |
$ |
497,062 |
Popular U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage |
$ |
926 |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
926 |
Total Popular U.S. |
$ |
926 |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
926 |
Popular, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-family |
$ |
1,374 |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
1,374 |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
211,026 |
|
- |
|
- |
|
- |
|
- |
|
211,026 |
|
Owner occupied |
|
47,268 |
|
- |
|
- |
|
- |
|
- |
|
47,268 |
Commercial and industrial |
|
2,650 |
|
- |
|
680 |
|
10,675 |
|
27,893 |
|
41,898 |
Mortgage |
|
180,700 |
|
- |
|
- |
|
- |
|
- |
|
180,700 |
Leasing |
|
- |
|
574 |
|
- |
|
- |
|
- |
|
574 |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal |
|
6,165 |
|
- |
|
- |
|
- |
|
- |
|
6,165 |
|
Auto |
|
- |
|
8,983 |
|
- |
|
- |
|
- |
|
8,983 |
Total Popular, Inc. |
$ |
449,183 |
$ |
9,557 |
$ |
680 |
$ |
10,675 |
$ |
27,893 |
$ |
497,988 | Purchased Credit Deteriorated (PCD) Loans The Corporation has purchased loans during the quarter and nine months ended September 30, 2022 and 2021, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans is as follows:
|
|
|
|
|
(In thousands) |
|
For the quarter ended September 30, 2022 |
|
For the nine months ended September 30, 2022 |
Purchase price of loans at acquisition |
$ |
247 |
$ |
2,840 |
Allowance for credit losses at acquisition |
|
59 |
|
841 |
Non-credit discount / (premium) at acquisition |
|
6 |
|
131 |
Par value of acquired loans at acquisition |
$ |
312 |
$ |
3,812 |
|
|
|
|
|
(In thousands) |
|
For the quarter ended September 30, 2021 |
|
For the nine months ended September 30, 2021 |
Purchase price of loans at acquisition |
$ |
1,060 |
$ |
10,044 |
Allowance for credit losses at acquisition |
|
253 |
|
2,811 |
Non-credit discount / (premium) at acquisition |
|
54 |
|
389 |
Par value of acquired loans at acquisition |
$ |
1,367 |
$ |
13,244 |
|