Loans

3 Months Ended

Mar. 31, 2024

Receivables

Loans

Note 7 – 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 2023 Form 10-K.

During the quarter ended March 31, 2024, the Corporation recorded purchases (including repurchases) of mortgage loans of $

86

million, and commercial loans of $

56

 million; compared to purchases (including repurchases) of mortgage loans of $

76

 million,

consumer loans of $

27

 million, and commercial loans of $

45

 million during the quarter ended March 31, 2023. 

The Corporation performed whole-loan sales involving approximately $

11

 million of residential mortgage loans, and $

12

 million of

commercial and construction loans during the quarter ended March 31, 2024 (March 31, 2023 - $

10

 million of residential mortgage

loans and $

2

 million of commercial and construction loans). Also, during the quarter ended March 31, 2024, the Corporation

securitized approximately $

1

 million of mortgage loans into GNMA mortgage-backed securities and $

1

 million of mortgage loans into

FNMA mortgage-backed securities, compared to $

1

 million and $

10

 million, respectively, during the quarter ended March 31, 2023. 

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

March 31, 2024 and December 31, 2023.

March 31, 2024

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

$

19,384

$

2,027

$

106

$

21,517

$

282,134

$

303,651

$

106

$

-

Commercial real estate:

Non-owner occupied

2,378

3,278

7,922

13,578

2,982,907

2,996,485

7,922

-

Owner occupied

6,628

432

26,124

33,184

1,392,908

1,426,092

26,124

-

Commercial and industrial

3,020

8,552

33,741

45,313

4,699,810

4,745,123

29,171

4,570

Construction

-

-

-

-

162,724

162,724

-

-

Mortgage

254,008

107,224

385,062

746,294

5,737,257

6,483,551

166,473

218,589

Leasing

19,936

4,752

7,267

31,955

1,733,458

1,765,413

7,267

-

Consumer:

Credit cards

13,034

9,528

23,858

46,420

1,095,716

1,142,136

-

23,858

Home equity lines of credit

-

226

7

233

2,336

2,569

-

7

Personal

19,822

12,169

19,092

51,083

1,695,410

1,746,493

19,092

-

Auto

82,957

18,420

41,807

143,184

3,563,670

3,706,854

41,807

-

Other

1,022

150

939

2,111

151,567

153,678

632

307

Total

$

422,189

$

166,758

$

545,925

$

1,134,872

$

23,499,897

$

24,634,769

$

298,594

$

247,331

March 31, 2024

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

$

3,434

$

-

$

8,700

$

12,134

$

2,068,850

$

2,080,984

$

8,700

$

-

Commercial real estate:

Non-owner occupied

740

1,364

2,407

4,511

2,056,063

2,060,574

2,407

-

Owner occupied

6,107

19,009

3,877

28,993

1,662,759

1,691,752

3,877

-

Commercial and industrial

9,961

628

6,634

17,223

2,263,137

2,280,360

6,423

211

Construction

8,825

-

-

8,825

837,754

846,579

-

-

Mortgage

25,558

533

28,071

54,162

1,245,949

1,300,111

28,071

-

Consumer:

Credit cards

-

-

-

-

17

17

-

-

Home equity lines of

credit

846

390

3,986

5,222

58,926

64,148

3,986

-

Personal

2,142

1,695

2,068

5,905

144,612

150,517

2,068

-

Other

-

-

1

1

8,926

8,927

1

-

Total

$

57,613

$

23,619

$

55,744

$

136,976

$

10,346,993

$

10,483,969

$

55,533

$

211

March 31, 2024

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

$

22,818

$

2,027

$

8,806

$

33,651

$

2,350,984

$

2,384,635

$

8,806

$

-

Commercial real estate:

Non-owner occupied

3,118

4,642

10,329

18,089

5,038,970

5,057,059

10,329

-

Owner occupied

12,735

19,441

30,001

62,177

3,055,667

3,117,844

30,001

-

Commercial and industrial

12,981

9,180

40,375

62,536

6,962,947

7,025,483

35,594

4,781

Construction

8,825

-

-

8,825

1,000,478

1,009,303

-

-

Mortgage

[1]

279,566

107,757

413,133

800,456

6,983,206

7,783,662

194,544

218,589

Leasing

19,936

4,752

7,267

31,955

1,733,458

1,765,413

7,267

-

Consumer:

Credit cards

13,034

9,528

23,858

46,420

1,095,733

1,142,153

-

23,858

Home equity lines of credit

846

616

3,993

5,455

61,262

66,717

3,986

7

Personal

21,964

13,864

21,160

56,988

1,840,022

1,897,010

21,160

-

Auto

82,957

18,420

41,807

143,184

3,563,670

3,706,854

41,807

-

Other

1,022

150

940

2,112

160,493

162,605

633

307

Total

$

479,802

$

190,377

$

601,669

$

1,271,848

$

33,846,890

$

35,118,738

$

354,127

$

247,542

[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 $

93

 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no

longer accruing interest as of March 31, 2024. Furthermore, as of March 31, 2024, the Corporation had approximately $

37

 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 $

367

 million in unearned income and exclude $

5

 million in loans held-for-sale.

[3]

Includes $

14

 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral,

of which $

7.0

 billion were pledged at the Federal Home Loan Bank ("FHLB") as collateral for borrowings and $

7

 billion at the Federal Reserve

Bank ("FRB") for discount window borrowings. As of March 31, 2024, the Corporation had an available borrowing facility with the FHLB and the

discount window of Federal Reserve Bank of New York of $

3.8

 billion and $

4.6

 billion, respectively.

December 31, 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

$

524

$

-

$

1,991

$

2,515

$

289,427

$

291,942

$

1,991

$

-

Commercial real estate:

Non-owner occupied

5,510

77

8,745

14,332

2,990,922

3,005,254

8,745

-

Owner occupied

2,726

249

29,430

32,405

1,365,978

1,398,383

29,430

-

Commercial and industrial

6,998

3,352

36,210

46,560

4,749,666

4,796,226

32,826

3,384

Construction

-

-

6,378

6,378

163,479

169,857

6,378

-

Mortgage

260,897

114,282

416,528

791,707

5,600,117

6,391,824

175,106

241,422

Leasing

20,140

6,719

8,632

35,491

1,696,318

1,731,809

8,632

-

Consumer:

Credit cards

13,243

9,912

23,281

46,436

1,089,292

1,135,728

-

23,281

Home equity lines of credit

230

-

26

256

2,392

2,648

-

26

Personal

19,065

14,611

19,031

52,707

1,723,603

1,776,310

19,031

-

Auto

100,061

27,443

45,615

173,119

3,487,661

3,660,780

45,615

-

Other

1,641

204

1,213

3,058

147,104

150,162

964

249

Total

$

431,035

$

176,849

$

597,080

$

1,204,964

$

23,305,959

$

24,510,923

$

328,718

$

268,362

December 31, 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

$

9,141

$

2,001

$

-

$

11,142

$

2,112,536

$

2,123,678

$

-

$

-

Commercial real estate:

Non-owner occupied

566

1,036

1,117

2,719

2,079,448

2,082,167

1,117

-

Owner occupied

30,560

-

6,274

36,834

1,645,418

1,682,252

6,274

-

Commercial and industrial

7,815

697

3,881

12,393

2,317,502

2,329,895

3,772

109

Construction

-

-

-

-

789,423

789,423

-

-

Mortgage

48,818

7,821

11,191

67,830

1,236,263

1,304,093

11,191

-

Consumer:

Credit cards

-

-

-

-

19

19

-

-

Home equity lines of credit

1,472

4

3,733

5,209

58,096

63,305

3,733

-

Personal 

2,222

1,948

2,805

6,975

161,962

168,937

2,805

-

Other

4

-

1

5

10,274

10,279

1

-

Total

$

100,598

$

13,507

$

29,002

$

143,107

$

10,410,941

$

10,554,048

$

28,893

$

109

December 31, 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

$

9,665

$

2,001

$

1,991

$

13,657

$

2,401,963

$

2,415,620

$

1,991

$

-

Commercial real estate:

Non-owner occupied

6,076

1,113

9,862

17,051

5,070,370

5,087,421

9,862

-

Owner occupied

33,286

249

35,704

69,239

3,011,396

3,080,635

35,704

-

Commercial and industrial

14,813

4,049

40,091

58,953

7,067,168

7,126,121

36,598

3,493

Construction

-

-

6,378

6,378

952,902

959,280

6,378

-

Mortgage

[1]

309,715

122,103

427,719

859,537

6,836,380

7,695,917

186,297

241,422

Leasing

20,140

6,719

8,632

35,491

1,696,318

1,731,809

8,632

-

Consumer:

Credit cards

13,243

9,912

23,281

46,436

1,089,311

1,135,747

-

23,281

Home equity lines of credit

1,702

4

3,759

5,465

60,488

65,953

3,733

26

Personal

21,287

16,559

21,836

59,682

1,885,565

1,945,247

21,836

-

Auto

100,061

27,443

45,615

173,119

3,487,661

3,660,780

45,615

-

Other

1,645

204

1,214

3,063

157,378

160,441

965

249

Total

$

531,633

$

190,356

$

626,082

$

1,348,071

$

33,716,900

$

35,064,971

$

357,611

$

268,471

[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 include $

106

 million of residential

mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2023. Furthermore, as of

December 31, 2023, the Corporation had approximately $

38

 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 $

356

 million in unearned income and exclude $

4

 million in loans held-for-sale.

[3]

Includes $

14.2

 billion pledged to secure credit facilities and public funds that the secured parties are not permitted to sell or repledge the collateral,

of which $

7.0

 billion were pledged at the Federal Home Loan Bank (FHLB) as collateral for borrowings and $

7.2

 billion at the Federal Reserve

Bank (FRB) for discount window borrowings. As of December 31, 2023, the Corporation had an available borrowing facility with the FHLB and the

discount window of Federal Reserve Bank of New York of $

3.5

 billion and $

4.4

 billion, respectively.

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 the VA when 15 months delinquent as to principal or interest, since the principal repayment on these loans is

insured.

At March 31, 2024, mortgage loans held-in-portfolio include $

2.3

 billion (December 31, 2023 - $

2.2

 billion) of loans insured by the

FHA, or guaranteed by the VA of which $

218.7

 million (December 31, 2023 - $

241.6

 million) are 90 days or more past due. The

portfolio of guaranteed loans includes $

93

 million of residential mortgage loans in Puerto Rico that are no longer accruing interest as

of March 31, 2024 (December 31, 2023 - $

106

 million). The Corporation has approximately $

37

 million in reverse mortgage loans in

Puerto Rico which are guaranteed by FHA, but which are currently not accruing interest at March 31, 2024 (December 31, 2023 -

$

38

 million).

Loans with a delinquency status of 90 days past due as of March 31, 2024 include $

10

 million in loans previously pooled into GNMA

securities (December 31, 2023 - $

11

 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 March 31, 2024 and December 31, 2023 by class of

loans:

March 31, 2024

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

$

-

$

106

$

8,700

$

-

$

8,700

$

106

Commercial real estate non-owner occupied

3,635

4,287

1,344

1,063

4,979

5,350

Commercial real estate owner occupied

17,541

8,583

3,877

-

21,418

8,583

Commercial and industrial

18,914

10,257

-

6,423

18,914

16,680

Mortgage

82,843

83,630

190

27,881

83,033

111,511

Leasing

453

6,814

-

-

453

6,814

Consumer:

 HELOCs

-

-

-

3,986

-

3,986

 Personal 

3,458

15,634

-

2,068

3,458

17,702

 Auto 

1,809

39,998

-

-

1,809

39,998

 Other

263

369

-

1

263

370

Total

$

128,916

$

169,678

$

14,111

$

41,422

$

143,027

$

211,100

December 31, 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

$

-

$

1,991

$

-

$

-

$

-

$

1,991

Commercial real estate non-owner occupied

3,695

5,050

-

1,117

3,695

6,167

Commercial real estate owner occupied

20,432

8,998

3,877

2,397

24,309

11,395

Commercial and industrial

6,991

25,835

-

3,772

6,991

29,607

Construction

-

6,378

-

-

-

6,378

Mortgage

84,677

90,429

120

11,071

84,797

101,500

Leasing

481

8,151

-

-

481

8,151

Consumer:

 HELOCs

-

-

-

3,733

-

3,733

 Personal 

3,589

15,442

-

2,805

3,589

18,247

 Auto 

1,833

43,782

-

-

1,833

43,782

 Other

263

701

-

1

263

702

Total

$

121,961

$

206,757

$

3,997

$

24,896

$

125,958

$

231,653

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.

Loans in non-accrual status with no allowance at March 31, 2024 include $

143

 million in collateral dependent loans (December 31,

2023 - $

126

 million). The Corporation recognized $

3

 million in interest income on non-accrual loans during the quarter ended March

31, 2024 (March 31, 2023 - $

4

 million).

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 March 31, 2024 and December 31, 2023:

March 31, 2024

(In thousands)

Real Estate

Auto

Equipment

Accounts

Receivables

Other

Total

BPPR

Commercial multi-family

$

1,325

$

-

$

-

$

-

-

$

1,325

Commercial real estate:

Non-owner occupied

159,712

-

-

-

-

159,712

Owner occupied

22,840

-

-

-

-

22,840

Commercial and industrial

1,130

-

-

2,172

23,693

26,995

Mortgage

80,487

-

-

-

-

80,487

Leasing

-

1,257

-

-

-

1,257

Consumer:

Personal

3,708

-

-

-

-

3,708

Auto

-

13,910

-

-

-

13,910

Other

-

-

-

-

303

303

Total BPPR

$

269,202

$

15,167

$

-

$

2,172

23,996

$

310,537

Popular U.S.

Commercial multi-family

$

8,700

$

-

$

-

$

-

-

$

8,700

Commercial real estate:

Non-owner occupied

1,344

$

-

-

-

-

1,344

Owner occupied

3,877

$

-

-

-

-

3,877

Commercial and industrial

-

-

70

-

2,297

2,367

Mortgage

1,040

-

-

-

-

1,040

Total Popular U.S.

$

14,961

$

-

$

70

$

-

2,297

$

17,328

Popular, Inc.

Commercial multi-family

$

10,025

$

-

$

-

$

-

-

$

10,025

Commercial real estate:

Non-owner occupied

161,056

-

-

-

-

161,056

Owner occupied

26,717

-

-

-

-

26,717

Commercial and industrial

1,130

-

70

2,172

25,990

29,362

Mortgage

81,527

-

-

-

-

81,527

Leasing

-

1,257

-

-

-

1,257

Consumer:

Personal

3,708

-

-

-

-

3,708

Auto

-

13,910

-

-

-

13,910

Other

-

-

-

-

303

303

Total Popular, Inc.

$

284,163

$

15,167

$

70

$

2,172

26,293

$

327,865

December 31, 2023

(In thousands)

Real Estate

Auto

Equipment

Other

Total

BPPR

Commercial multi-family

$

1,339

$

-

$

-

$

-

$

1,339

Commercial real estate:

Non-owner occupied

160,555

-

-

-

160,555

Owner occupied

25,848

-

-

-

25,848

Commercial and industrial

1,103

-

-

30,287

31,390

Construction

6,378

-

-

-

6,378

Mortgage

85,113

-

-

-

85,113

Leasing

-

1,373

-

-

1,373

Consumer:

Personal

4,338

-

-

-

4,338

Auto

-

12,965

-

-

12,965

Other

-

-

-

305

305

Total BPPR

$

284,674

$

14,338

$

-

$

30,592

$

329,604

Popular U.S.

Commercial real estate:

Owner occupied

3,877

-

-

-

3,877

Commercial and industrial

-

-

105

400

505

Construction

5,990

-

-

-

5,990

Mortgage

1,303

-

-

-

1,303

Total Popular U.S.

$

11,170

$

-

$

105

$

400

$

11,675

Popular, Inc.

Commercial multi-family

$

1,339

$

-

$

-

$

-

$

1,339

Commercial real estate:

Non-owner occupied

160,555

-

-

-

160,555

Owner occupied

29,725

-

-

-

29,725

Commercial and industrial

1,103

-

105

30,687

31,895

Construction

12,368

-

-

-

12,368

Mortgage

86,416

-

-

-

86,416

Leasing

-

1,373

-

-

1,373

Consumer:

Personal

4,338

-

-

-

4,338

Auto

-

12,965

-

-

12,965

Other

-

-

-

305

305

Total Popular, Inc.

$

295,844

$

14,338

$

105

$

30,992

$

341,279

Purchased Credit Deteriorated (PCD) Loans

The Corporation has purchased loans during the quarter 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)

March 31, 2024

March 31, 2023

Purchase price of loans at acquisition

$

426

$

255

Allowance for credit losses at acquisition

17

68

Non-credit discount / (premium) at acquisition

-

9

Par value of acquired loans at acquisition

$

443

$

332