Stockholders' equity

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note

Stockholders' Equity

Note 18 – Stockholders’ equity

As of September 30, 2022, stockholders’ equity totaled $3.7 billion. During the nine months ended September 30, 2022, the Corporation declared cash dividends of $1.65 (2021 - $1.30) per common share amounting to $124.2 million (2021 - $106.4 million). The quarterly dividend declared to stockholders of record as of the close of business on September 7, 2022 was paid on October 3, 2022.

Accelerated share repurchase transaction (“ASR”)

On August 24, 2022, the Corporation entered into an accelerated share repurchase program for the repurchase of an aggregate of $231 million of Popular’s common stock. Under the terms of the accelerated repurchase agreement (the “August ASR Agreement”), on August 26, 2022 the Corporation made an initial payment of $231 million and received an initial delivery of 2,339,241 shares of the Corporation’s Common Stock (the “Initial Shares”). The transaction was accounted for as a treasury stock transaction. As a result of the receipt of the Initial Shares, the Corporation recognized in stockholders’ equity approximately $185 million in treasury stock and $46 million as a reduction of capital surplus. Upon the final settlement of the August ASR Agreement, the Corporation expects to further adjust its treasury stock and capital surplus accounts to reflect the final delivery or receipt of cash or shares, which will depend on the volume-weighted average price of the Corporation’s common stock during the term of the August ASR Agreement, less a discount. The final settlement of the August ASR Agreement is expected to occur no later than the fourth quarter of 2022.

On July 12, 2022, the Corporation completed an accelerated share repurchase program for the repurchase of an aggregate of $400 million of Popular’s common stock. Under the terms of the accelerated repurchase agreement (the “March ASR Agreement”), on March 2, 2022 the Corporation made an initial payment of $400 million and received an initial delivery of 3,483,942 shares of the Corporation’s Common Stock (the “March ASR Agreement Initial Shares”). The transaction was accounted for as a treasury stock transaction. As a result of the receipt of the March ASR Agreement Initial Shares, the Corporation recognized in stockholders’ equity approximately $320 million in treasury stock and $80 million as a reduction of capital surplus. Upon the final settlement of the March ASR Agreement, the Corporation received an additional 1,582,922 shares of Popular’s common stock and recognized approximately $120 million as treasury stock with a corresponding increase in its capital surplus account. The Corporation repurchased a total of 5,066,864 shares at an average purchased price of $78.9443 under the March ASR Agreement.

On May 3, 2021, the Corporation entered into a $350 million accelerated share repurchase transaction (the “2021 ASR Transaction”) with respect to its common stock, which was accounted for as a treasury stock transaction. As a result of the receipt of the initial 3,785,831 shares, the Corporation recognized in stockholders’ equity approximately $280 million in treasury stock and $70 million as a reduction in capital surplus. The Corporation completed the 2021 ASR Transaction on September 9, 2021 and received 828,965 additional shares of Popular’s common stock and recognized $61 million in treasury stock with a corresponding increase in its capital surplus account. In total, the Corporation repurchased a total of 4,614,796 shares at an average price of $75.8430 under the 2021 ASR Transaction.