Loans	9 Months Ended
Loans	Sep. 30, 2023
Receivables
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 – to the Consolidated Financial Statements included in the 2022 Form 10-K. During the quarter and nine months ended September 30, 2023, the Corporation recorded purchases (including repurchases) of mortgage loans amounting to $ 102 million and $ 274 million, respectively, including $ 0.2 million and $ 0.9 million in PCD loans, and consumer loans of $ 55 million and $ 127 million, respectively. During the quarter and nine months ended September 30, 2023, the Corporation recorded purchases of $ 79 million and $ 162 million, respectively, in commercial loans. 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. The Corporation performed whole-loan sales involving approximately $ 12 million and $ 39 million of residential mortgage loans during the quarter and nine months ended September 30, 2023, respectively (September 30, 2022 - $ 17 million and $ 50 million, respectively). During the quarter and nine months ended September 30, 2023, the Corporation performed sales of commercial loans, including loan participations amounting to $ 45 million and $ 81 million, respectively (September 30, 2022 - $ 11 million and $ 54 million, respectively). During the quarter and nine months ended September 30, 2023, the Corporation performed sales of consumer loans amounting to $ 45 million respectively. Also, the Corporation securitized approximately $ 1 million and $ 2 million of mortgage loans into Government National Mortgage Association (“GNMA”) mortgage-backed securities during the quarter and nine months ended September 30, 2023 (for the quarter and nine months ended September 30, 2022 - $ 14 million and $ 169 million, respectively). Furthermore, the Corporation securitized approximately $ 10 million and $ 33 million of mortgage loans into Federal National Mortgage Association (“FNMA”) mortgage-backed securities during the quarter and nine months ended September 30, 2023, respectively (September 30, 2022 - $ 22 million and $ 117 million, respectively). Also, the Corporation did no t securitize any mortgage loans into Federal Home Loan Mortgage Corporation (“FHLMC”) mortgage-backed securities during the nine months ended September 30, 2023 (September 30, 2022 - $ 9 million for the 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, 2023 and December 31, 2022. September 30, 2023 BPPR 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 $ 4,407 $ 176 $ 184 $ 4,767 $ 290,047 $ 294,814 $ 184 $ - Commercial real estate: Non-owner occupied 1,274 - 15,330 16,604 2,932,277 2,948,881 15,330 - Owner occupied 817 827 35,089 36,733 1,370,820 1,407,553 35,089 - Commercial and industrial 4,022 1,728 24,733 30,483 4,299,335 4,329,818 21,624 3,109 Construction - - 6,578 6,578 163,929 170,507 6,578 - Mortgage 241,962 100,679 430,430 773,071 5,516,197 6,289,268 187,443 242,987 Leasing 17,915 4,574 6,842 29,331 1,668,783 1,698,114 6,842 - Consumer: Credit cards 11,218 8,133 17,719 37,070 1,040,341 1,077,411 - 17,719 Home equity lines of credit 26 - - 26 2,448 2,474 - - Personal 19,586 12,476 18,582 50,644 1,712,358 1,763,002 18,582 - Auto 89,453 23,019 40,268 152,740 3,480,456 3,633,196 40,268 - Other 567 388 2,152 3,107 144,425 147,532 1,885 267 Total $ 391,247 $ 152,000 $ 597,907 $ 1,141,154 $ 22,621,416 $ 23,762,570 $ 333,825 $ 264,082 September 30, 2023 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 $ 1,332 $ - $ 404 $ 1,736 $ 2,031,883 $ 2,033,619 $ 404 $ - Commercial real estate: Non-owner occupied 2,628 - 734 3,362 2,082,887 2,086,249 734 - Owner occupied 1,110 923 3,877 5,910 1,631,442 1,637,352 3,877 - Commercial and industrial 3,000 464 3,709 7,173 2,190,091 2,197,264 3,579 130 Construction - - - - 751,605 751,605 - - Mortgage 946 22,313 11,980 35,239 1,260,604 1,295,843 11,980 - Consumer: Credit cards - - - - 17 17 - - Home equity lines of credit 1,045 335 4,085 5,465 59,560 65,025 4,085 - Personal 2,581 1,716 2,637 6,934 182,232 189,166 2,637 - Other 113 - 402 515 10,088 10,603 402 - Total $ 12,755 $ 25,751 $ 27,828 $ 66,334 $ 10,200,409 $ 10,266,743 $ 27,698 $ 130 September 30, 2023 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 $ 5,739 $ 176 $ 588 $ 6,503 $ 2,321,930 $ 2,328,433 $ 588 $ - Commercial real estate: Non-owner occupied 3,902 - 16,064 19,966 5,015,164 5,035,130 16,064 - Owner occupied 1,927 1,750 38,966 42,643 3,002,262 3,044,905 38,966 - Commercial and industrial 7,022 2,192 28,442 37,656 6,489,426 6,527,082 25,203 3,239 Construction - - 6,578 6,578 915,534 922,112 6,578 - Mortgage [1] 242,908 122,992 442,410 808,310 6,776,801 7,585,111 199,423 242,987 Leasing 17,915 4,574 6,842 29,331 1,668,783 1,698,114 6,842 - Consumer: Credit cards 11,218 8,133 17,719 37,070 1,040,358 1,077,428 - 17,719 Home equity lines of credit 1,071 335 4,085 5,491 62,008 67,499 4,085 - Personal 22,167 14,192 21,219 57,578 1,894,590 1,952,168 21,219 - Auto 89,453 23,019 40,268 152,740 3,480,456 3,633,196 40,268 - Other 680 388 2,554 3,622 154,513 158,135 2,287 267 Total $ 404,002 $ 177,751 $ 625,735 $ 1,207,488 $ 32,821,825 $ 34,029,313 $ 361,523 $ 264,212 [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. These balances include $ 115 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of September 30, 2023. Furthermore, the Corporation has approximately $ 39 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 $ 340 million in unearned income and exclude $ 5 million in loans held-for-sale. [3] Includes $ 13.7 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $ 6.6 billion were pledged at the Federal Home Loan Bank ("FHLB") as collateral for borrowings and $ 7.1 billion at the Federal Reserve Bank ("FRB") for discount window borrowings. The Corporation had an available borrowing facility with the FHLB and the discount window of Federal Reserve Bank of New York of $ 3.7 billion and $ 4.6 billion, respectively, as of September 30, 2023. December 31, 2022 BPPR 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 $ 425 $ - $ 242 $ 667 $ 280,706 $ 281,373 $ 242 $ - Commercial real estate: Non-owner occupied 941 428 23,662 25,031 2,732,296 2,757,327 23,662 - Owner occupied 729 245 23,990 24,964 1,563,092 1,588,056 23,990 - Commercial and industrial 3,036 941 35,777 39,754 3,756,754 3,796,508 34,277 1,500 Construction - - - - 147,041 147,041 - - Mortgage 222,926 91,881 579,993 894,800 5,215,479 6,110,279 242,391 337,602 Leasing 11,983 3,563 5,941 21,487 1,564,252 1,585,739 5,941 - Consumer: Credit cards 7,106 5,049 11,910 24,065 1,017,766 1,041,831 - 11,910 Home equity lines of credit - - - - 2,954 2,954 - - Personal 13,232 8,752 18,082 40,066 1,545,621 1,585,687 18,082 - Auto 68,868 19,243 40,978 129,089 3,383,441 3,512,530 40,978 - Other 487 87 12,682 13,256 124,324 137,580 12,446 236 Total $ 329,733 $ 130,189 $ 753,257 $ 1,213,179 $ 21,333,726 $ 22,546,905 $ 402,009 $ 351,248 December 31, 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 $ 2,177 $ - $ - $ 2,177 $ 2,038,163 $ 2,040,340 $ - $ - Commercial real estate: Non-owner occupied 484 - 1,454 1,938 1,740,405 1,742,343 1,454 - Owner occupied - - 5,095 5,095 1,485,398 1,490,493 5,095 - Commercial and industrial 12,960 2,205 4,685 19,850 2,022,842 2,042,692 4,319 366 Construction - - - - 610,943 610,943 - - Mortgage 16,131 5,834 20,488 42,453 1,244,739 1,287,192 20,488 - Consumer: Credit cards - - - - 39 39 - - Home equity lines of credit 413 161 4,110 4,684 64,278 68,962 4,110 - Personal 1,808 1,467 1,958 5,233 232,659 237,892 1,958 - Other - - 8 8 9,960 9,968 8 - Total $ 33,973 $ 9,667 $ 37,798 $ 81,438 $ 9,449,426 $ 9,530,864 $ 37,432 $ 366 December 31, 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 $ 2,602 $ - $ 242 $ 2,844 $ 2,318,869 $ 2,321,713 $ 242 $ - Commercial real estate: Non-owner occupied 1,425 428 25,116 26,969 4,472,701 4,499,670 25,116 - Owner occupied 729 245 29,085 30,059 3,048,490 3,078,549 29,085 - Commercial and industrial 15,996 3,146 40,462 59,604 5,779,596 5,839,200 38,596 1,866 Construction - - - - 757,984 757,984 - - Mortgage [1] 239,057 97,715 600,481 937,253 6,460,218 7,397,471 262,879 337,602 Leasing 11,983 3,563 5,941 21,487 1,564,252 1,585,739 5,941 - Consumer: Credit cards 7,106 5,049 11,910 24,065 1,017,805 1,041,870 - 11,910 Home equity lines of credit 413 161 4,110 4,684 67,232 71,916 4,110 - Personal 15,040 10,219 20,040 45,299 1,778,280 1,823,579 20,040 - Auto 68,868 19,243 40,978 129,089 3,383,441 3,512,530 40,978 - Other 487 87 12,690 13,264 134,284 147,548 12,454 236 Total $ 363,706 $ 139,856 $ 791,055 $ 1,294,617 $ 30,783,152 $ 32,077,769 $ 439,441 $ 351,614 [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. These balances also include $ 190 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 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 $ 295 million in unearned income and exclude $ 5 million in loans held-for-sale. [3] Includes $ 7.4 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral, of which $ 4.8 billion were pledged at the Federal Home Loan Bank (FHLB) as collateral for borrowings and $ 2.6 billion at the Federal Reserve Bank (FRB) for discount window borrowings. The Corporation had an available borrowing facility with the FHLB and the discount window of Federal Reserve Bank of New York of $ 2.1 billion and $ 1.4 billion, respectively, as of December 31, 2022. 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, 2023, mortgage loans held-in-portfolio include $ 2.1 billion (December 31, 2022 - $ 2.0 billion) of loans insured by the FHA, or guaranteed by the VA of which $ 0.2 billion (December 31, 2022 - $ 0.3 billion) are 90 days or more past due. The portfolio of guaranteed loans includes $ 115 million of residential mortgage loans in Puerto Rico that are no longer accruing interest as of September 30, 2023 (December 31, 2022 - $ 190 million). The Corporation has approximately $ 39 million in reverse mortgage loans in Puerto Rico which are guaranteed by FHA, but which are currently not accruing interest at September 30, 2023 (December 31, 2022 - $ 42 million). Loans with a delinquency status of 90 days past due as of September 30, 2023 include $ 8 million in loans previously pooled into GNMA securities (December 31, 2022 - $ 14 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, 2023 and December 31, 2022 by class of loans: September 30, 2023 BPPR 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 $ - $ 184 $ - $ 404 $ - $ 588 Commercial real estate non-owner occupied 9,577 5,753 - 734 9,577 6,487 Commercial real estate owner occupied 24,463 10,626 3,877 - 28,340 10,626 Commercial and industrial 8,504 13,120 - 3,579 8,504 16,699 Construction - 6,578 - - - 6,578 Mortgage 90,611 96,832 508 11,472 91,119 108,304 Leasing 294 6,548 - - 294 6,548 Consumer: HELOCs - - - 4,085 - 4,085 Personal 4,562 14,020 - 2,637 4,562 16,657 Auto 1,662 38,606 - - 1,662 38,606 Other 263 1,622 - 402 263 2,024 Total $ 139,936 $ 193,889 $ 4,385 $ 23,313 $ 144,321 $ 217,202 December 31, 2022 BPPR 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 $ - $ 242 $ - $ - $ - $ 242 Commercial real estate non-owner occupied 15,639 8,023 1,454 - 17,093 8,023 Commercial real estate owner occupied 9,070 14,920 5,095 - 14,165 14,920 Commercial and industrial 20,227 14,050 - 4,319 20,227 18,369 Mortgage 119,027 123,364 71 20,417 119,098 143,781 Leasing 458 5,483 - - 458 5,483 Consumer: HELOCs - - - 4,110 - 4,110 Personal 4,623 13,459 - 1,958 4,623 15,417 Auto 1,177 39,801 - - 1,177 39,801 Other 263 12,183 - 8 263 12,191 Total $ 170,484 $ 231,525 $ 6,620 $ 30,812 $ 177,104 $ 262,337 Loans in non-accrual status with no allowance at September 30, 2023 include $ 144 million in collateral dependent loans (December 31, 2022 - $ 177 million). The Corporation recognized $ 3 million in interest income on non-accrual loans during the nine months ended September 30, 2023 (September 30, 2022 - $ 3 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, 2023 and December 31, 2022: September 30, 2023 (In thousands) Real Estate Auto Equipment Accounts Receivables Other Total BPPR Commercial multi-family $ 1,289 $ - $ - $ - $ - $ 1,289 Commercial real estate: Non-owner occupied 169,357 - - - - 169,357 Owner occupied 30,507 - - - - 30,507 Commercial and industrial 1,086 - - - 19,025 20,111 Construction 8,747 - - - - 8,747 Mortgage 100,127 - - - - 100,127 Leasing - 1,103 - - - 1,103 Consumer: Personal 4,741 - - - - 4,741 Auto - 11,941 - - - 11,941 Other - - - - 310 310 Total BPPR $ 315,854 $ 13,044 $ - $ - $ 19,335 $ 348,233 Popular U.S. Commercial real estate: Owner occupied $ 3,877 $ - $ - $ - $ - $ 3,877 Commercial and industrial - - 160 - 1,400 1,560 Construction 5,309 - - - - 5,309 Mortgage 1,073 - - - - 1,073 Total Popular U.S. $ 10,259 $ - $ 160 $ - $ 1,400 $ 11,819 Popular, Inc. Commercial multi-family $ 1,289 $ - $ - $ - $ - $ 1,289 Commercial real estate: Non-owner occupied 169,357 - - - - 169,357 Owner occupied 34,384 - - - - 34,384 Commercial and industrial 1,086 - 160 - 20,425 21,671 Construction 14,056 - - - - 14,056 Mortgage 101,200 - - - - 101,200 Leasing - 1,103 - - - 1,103 Consumer: Personal 4,741 - - - - 4,741 Auto - 11,941 - - - 11,941 Other - - - - 310 310 Total Popular, Inc. $ 326,113 $ 13,044 $ 160 $ - $ 20,735 $ 360,052 December 31, 2022 (In thousands) Real Estate Auto Equipment Accounts Receivables Other Total BPPR Commercial multi-family $ 1,329 $ - $ - $ - $ - $ 1,329 Commercial real estate: Non-owner occupied 202,980 - - - - 202,980 Owner occupied 18,234 - - - - 18,234 Commercial and industrial 1,345 - 32 9,853 20,985 32,215 Mortgage 128,069 - - - - 128,069 Leasing - 1,020 - - - 1,020 Consumer: Personal 5,381 - - - - 5,381 Auto - 9,556 - - - 9,556 Other - - - - 263 263 Total BPPR $ 357,338 $ 10,576 $ 32 $ 9,853 $ 21,248 $ 399,047 Popular U.S. Commercial real estate: Non-owner occupied $ 1,454 $ - $ - $ - $ - $ 1,454 Owner occupied 5,095 - - - - 5,095 Commercial and industrial - - 136 - - 136 Mortgage 1,104 - - - - 1,104 Total Popular U.S. $ 7,653 $ - $ 136 $ - $ - $ 7,789 Popular, Inc. Commercial multi-family $ 1,329 $ - $ - $ - $ - $ 1,329 Commercial real estate: Non-owner occupied 204,434 - - - - 204,434 Owner occupied 23,329 - - - - 23,329 Commercial and industrial 1,345 - 168 9,853 20,985 32,351 Mortgage 129,173 - - - - 129,173 Leasing - 1,020 - - - 1,020 Consumer: Personal 5,381 - - - - 5,381 Auto - 9,556 - - - 9,556 Other - - - - 263 263 Total Popular, Inc. $ 364,991 $ 10,576 $ 168 $ 9,853 $ 21,248 $ 406,836 Purchased Credit Deteriorated (PCD) Loans The Corporation has purchased loans during the quarter and nine months ended September 30, 2023 and 2022, 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, 2023 For the nine months ended September 30, 2023 Purchase price of loans at acquisition $ 227 $ 759 Allowance for credit losses at acquisition 9 87 Non-credit discount / (premium) at acquisition - 9 Par value of acquired loans at acquisition $ 236 $ 855 (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