Segment reporting

3 Months Ended

Mar. 31, 2024

Segment reporting disclosure

Segment Reporting

Note 32 – Segment reporting

The Corporation’s corporate structure consists of

two

 reportable segments –

Banco Popular de Puerto Rico and Popular U.S.

Management determined the reportable segments based on the internal reporting used to evaluate performance and to assess

where to allocate resources.

 The segments were determined based on the organizational structure, which focuses primarily on the

markets the segments serve, as well as on the products and services offered by the segments.

Banco Popular de Puerto Rico: 

The Banco Popular de Puerto Rico reportable segment includes commercial, consumer and retail banking operations conducted at

BPPR, including U.S. based activities conducted through its New York Branch. It also includes the lending operations of Popular

Auto and Popular Mortgage. Other financial services within the BPPR segment include the trust service units of BPPR, asset

management services of Popular Asset Management, the brokerage and investment banking operations of Popular Securities, and

the insurance agency and reinsurance businesses of Popular Insurance, Popular Risk Services, Popular Life Re, and Popular Re.

Popular U.S.: 

Popular U.S. reportable segment consists of the banking operations of Popular Bank (PB), Popular Insurance Agency, U.S.A., and

PEF. PB operates through a retail branch network in the U.S. mainland under the name of Popular, and equipment leasing and

financing services through PEF. Popular Insurance Agency, U.S.A. offers investment and insurance services across the PB branch

network. 

The Corporate group consists primarily of the holding companies Popular, Inc., Popular North America, Popular International Bank

and certain of the Corporation’s investments accounted for under the equity method, including Centro Financiero BHD, León. 

The accounting policies of the individual operating segments are the same as those of the Corporation. Transactions between

reportable segments are primarily conducted at market rates, resulting in profits that are eliminated for reporting consolidated results

of operations.

The tables that follow present the results of operations and total assets by reportable segments:

2024

For the quarter ended March 31, 2024

Intersegment 

(In thousands)

BPPR

Popular U.S.

Eliminations

Net interest income

$

472,841

$

84,853

$

-

Provision for credit losses

 (benefit)

60,680

11,435

-

Non-interest income 

145,669

7,120

(56)

Amortization of intangibles

484

311

-

Depreciation expense

13,009

1,943

-

Other operating expenses

393,805

67,788

(56)

Income tax expense

29,206

3,456

-

Net income

$

121,326

$

7,040

$

-

Segment assets

$

57,250,662

$

13,686,037

$

(359,383)

For the quarter ended March 31, 2024

Reportable 

(In thousands)

Segments

Corporate

Eliminations

Total Popular, Inc.

Net interest income (expense)

$

557,694

$

(6,950)

$

-

$

550,744

Provision for credit losses

72,115

483

-

72,598

Non-interest income

152,733

11,722

(637)

163,818

Amortization of intangibles

795

-

-

795

Depreciation expense

14,952

409

-

15,361

Other operating expenses

461,537

6,611

(1,191)

466,957

Income tax expense

32,662

22,676

230

55,568

Net income (loss)

$

128,366

$

(25,407)

$

324

$

103,283

Segment assets

$

70,577,316

$

5,723,198

$

(5,363,575)

$

70,936,939

2023

For the quarter ended March 31, 2023

Intersegment 

(In thousands)

BPPR

 Popular U.S.

Eliminations

Net interest income

$

449,820

$

90,086

$

1

Provision for credit losses

45,708

2,065

-

Non-interest income 

147,471

6,384

(136)

Amortization of intangibles

484

311

-

Depreciation expense

11,669

1,814

-

Other operating expenses

363,715

63,317

(136)

Income tax expense

42,832

3,976

-

Net income

$

132,883

$

24,987

$

1

Segment assets

$

55,770,442

$

12,147,556

$

(541,534)

For the quarter ended March 31, 2023

Reportable 

(In thousands)

Segments

Corporate

Eliminations

Total Popular, Inc.

Net interest income (expense)

$

539,907

$

(8,251)

$

-

$

531,656

Provision for credit losses (benefit)

47,773

(136)

-

47,637

Non-interest income

153,719

9,714

(1,472)

161,961

Amortization of intangibles

795

-

-

795

Depreciation expense

13,483

359

-

13,842

Other operating expenses

426,896

230

(1,076)

426,050

Income tax expense (benefit)

46,808

(321)

(173)

46,314

Net income

$

157,871

$

1,331

$

(223)

$

158,979

Segment assets

$

67,376,464

$

5,803,751

$

(5,504,456)

$

67,675,759

Geographic Information

The following information presents selected financial information based on the geographic location where the Corporation conducts

its business. The banking operations of BPPR are primarily based in Puerto Rico, where it has the largest retail banking franchise.

BPPR also conducts banking operations in the U.S. Virgin Islands, the British Virgin Islands and New York. BPPR’s banking

operations in the mainland United States include commercial lending activities. BPPR’s commercial lending activities in the U.S.,

through its New York Branch, include periodic loan participations with PB. During the quarter ended March 31, 2024, BPPR did

no

t

participate in loans originated by PB (March 31, 2023 - $

23

 million). Total assets for the BPPR segment related to its operations in

the United States amounted to $

1.5

 billion (December 31, 2023 - $

1.5

 billion), including $

106

 million in multifamily loans (December

31, 2023 - $

106

 million), $

526

 million in commercial real estate loans (December 31, 2023 - $

528

 million), $

592

 million in C&I loans

(December 31, 2023 - $

557

 million), and $

198

 million in unsecured personal loans (December 31, 2023 - $

229

 million). During the

quarter ended March 31, 2024, the BPPR segment generated approximately $

29.8

 million (March 31, 2023 - $

25.4

 million) in

revenues from its operations in the United States, including net interest income and other service fees. In the Virgin Islands, the

BPPR segment offers banking products, including loans and deposits. The BPPR segment generated $

10.6

 million in revenues

during the first quarter of 2024 (March 31, 2023 - $

11.6

 million) from its operations in the U.S. and British Virgin Islands.

Geographic Information 

Quarter ended

(In thousands)

March 31, 2024

March 31, 2023

Revenues:

[1]

 Puerto Rico 

$

565,744

$

547,903

 United States

126,741

125,045

 Other

22,077

20,669

Total consolidated revenues 

$

714,562

$

693,617

[1]

Total revenues include net interest income, service charges on deposit accounts, other service fees, mortgage banking activities, net gain,

including impairment on equity securities, net gain on trading account debt securities, adjustments to indemnity reserves on loans sold and

other operating income.

Selected Balance Sheet Information:

(In thousands)

March 31, 2024

December 31, 2023

Puerto Rico

Total assets

$

54,507,722

$

54,181,300

Loans

22,649,624

22,519,961

Deposits

51,350,879

51,282,007

United States

Total assets

$

15,186,839

$

15,343,156

Loans

11,931,955

12,006,012

Deposits

10,716,008

10,643,602

Other

Total assets

$

1,242,378

$

1,233,699

Loans

542,511

543,299

Deposits

[1]

1,741,897

1,692,634

[1]

Represents deposits from BPPR operations located in the U.S. and British Virgin Islands.