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Nature of Operations and basis of Presentation
 12 Months Ended
Dec. 31, 2023
Nature of operation [Abstract]  
Nature of operations and basis of presentation
Note 1 – Nature of Operations and basis of
 
Presentation
Nature of Operations
 
Popular,
 
Inc. (the
 
“Corporation” or
 
“Popular”) is
 
a diversified,
 
publicly-owned financial
 
holding company
 
subject to
 
the supervision
and
 
regulation
 
of
 
the
 
Board
 
of
 
Governors
 
of
 
the
 
Federal
 
Reserve
 
System.
 
The
 
Corporation
 
has
 
operations
 
in
 
Puerto
 
Rico,
 
the
mainland United
 
States (“U.S.”)
 
and the
 
U.S. and
 
British Virgin
 
Islands. In
 
Puerto Rico,
 
the Corporation
 
provides retail,
 
mortgage,
and
 
commercial
 
banking
 
services,
 
through
 
its
 
principal
 
banking
 
subsidiary,
 
Banco
 
Popular
 
de
 
Puerto
 
Rico
 
(“BPPR”),
 
as
 
well
 
as
investment
 
banking,
 
broker-dealer,
 
auto
 
and
 
equipment
 
leasing
 
and
 
financing,
 
and
 
insurance
 
services
 
through
 
specialized
subsidiaries.
 
In
 
the
 
mainland
 
U.S.,
 
the
 
Corporation
 
provides
 
retail,
 
mortgage
 
and
 
commercial
 
banking
 
services
 
through
 
its
 
New
York-chartered
 
banking subsidiary,
 
Popular Bank
 
(“PB” or
 
“Popular U.S.”),
 
which has
 
branches located
 
in New
 
York,
 
New Jersey
and Florida, investment and insurance services and equipment
 
leasing and financing services through specialized
 
subsidiaries.
 
Basis of Presentation
 
Leveraging
 
the
 
completion
 
of
 
the
 
Evertec
 
Transactions,
 
as
 
defined
 
in
 
Note
 
4
 
to
 
the
 
Consolidated
 
Financial
 
Statements,
 
the
Corporation embarked
 
on a
 
broad-based multi-year,
 
technological and
 
business process
 
transformation during
 
the second
 
half of
2022.
 
The
 
needs
 
and
 
expectations
 
of
 
our
 
clients,
 
as
 
well
 
as
 
the
 
competitive
 
landscape,
 
have
 
evolved,
 
requiring
 
us
 
to
 
make
important
 
investments
 
in
 
our
 
technological
 
infrastructure
 
and
 
adopt
 
more
 
agile
 
practices.
 
Our
 
technology
 
and
 
business
transformation will be a significant priority for the Corporation
 
over the next three years and beyond.
As part of this transformation, we aim to expand our digital capabilities,
 
modernize our technology platform, and implement agile and
efficient
 
business processes
 
across the
 
entire Corporation.
 
To
 
facilitate
 
the transparency
 
of the
 
progress with
 
the transformation
initiative and
 
to better
 
portray the
 
level of
 
technology related
 
expenses categorized
 
by the
 
nature of
 
the expense,
 
effective in
 
the
fourth quarter of 2022, the
 
Corporation has separated technology,
 
professional fees and transactional and items
 
processing related
expenses as standalone expense categories in the accompanying Consolidated statement of operations. There were no changes to
the
 
total
 
operating
 
expenses
 
presented.
 
Prior
 
periods
 
amount
 
in
 
the
 
financial
 
statements
 
and
 
related
 
disclosures
 
have
 
been
reclassified to conform to the current presentation.
The following table provides the detail of
 
the reclassifications for the year.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31,
2021
Financial statement line item
As reported
Adjustments
Adjusted
Equipment expenses
$
92,097
$
(59,178)
$
32,919
Professional fees
410,865
(284,144)
126,721
Technology and
 
software expenses
-
277,979
277,979
Processing and transactional services
-
121,367
121,367
Communications
25,234
(11,205)
14,029
Other operating expenses
136,988
(44,819)
92,169
Net effect on operating expenses
$
665,184
$
-
$
665,184