Popular(BPOP) - 2024 Q4 - Annual Results

Executive Summary & Financial Highlights Popular, Inc. reported solid Q4 2024 financial results with increased net income, strong loan growth, and improved net interest income and margin Overall Performance & CEO Commentary Popular, Inc. reported solid Q4 2024 financial results with increased net income, strong loan growth, and improved net interest income and margin - Net income for Q4 2024 was $177.8 million, up from $155.3 million in Q3 2024[1] - Net income for the year 2024 was $614.2 million, compared to $541.3 million for the year 2023. Excluding expenses incurred in connection with the FDIC Special Assessment and prior period tax withholdings, the adjusted net income for 2024 was $646.1 million, compared to $586.6 million in 2023[2] - The Corporation recommenced share buybacks, repurchasing 2,256,420 shares for $217.3 million in 2024, and increased its quarterly common stock dividend from $0.62 to $0.70 per share[2] - The company is making meaningful progress in the modernization of customer channels and enhancement of customer experience through its Transformation initiative[4] Earnings Highlights This section presents a consolidated overview of key financial performance indicators for the quarters and years ended December 31, 2024, and 2023, including net interest income, provision for credit losses, non-interest income, operating expenses, and net income per common share Earnings Highlights (in thousands) | Metric | Q4 2024 (in thousands) | Q3 2024 (in thousands) | Q4 2023 (in thousands) | Year 2024 (in thousands) | Year 2023 (in thousands) | | :----------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Net interest income | $590,759 | $572,473 | $534,180 | $2,282,288 | $2,131,524 | | Provision for credit losses | 66,102 | 71,448 | 78,663 | 256,942 | 208,609 | | Other non-interest income | 164,703 | 164,082 | 168,743 | 658,909 | 650,724 | | Operating expenses | 467,627 | 467,321 | 531,145 | 1,887,637 | 1,898,100 | | Net income | $177,817 | $155,323 | $94,594 | $614,212 | $541,342 | | Net income per common share-basic | $2.51 | $2.16 | $1.31 | $8.56 | $7.53 | | Dividends Declared per Common Share | $0.70 | $0.62 | $0.62 | $2.56 | $2.27 | Non-GAAP Financial Measures This section clarifies the use of non-GAAP financial measures, such as Net Interest Income on a Taxable Equivalent Basis and Tangible Common Equity, explaining their utility for management and analysts Explanation of Non-GAAP Measures This section clarifies the use of non-GAAP financial measures, such as Net Interest Income on a Taxable Equivalent Basis and Tangible Common Equity, explaining that management uses them to provide more meaningful information about ongoing operations and for comparability, while also noting they should not be used in isolation from GAAP measures - Management uses non-GAAP financial measures when it has determined that these measures provide more meaningful information about the underlying performance of the Corporation's ongoing operations[6] - Net interest income on a taxable equivalent basis provides meaningful information as it facilitates the comparison of revenues arising from taxable and tax-exempt sources[7] - Tangible common equity and related ratios are commonly used by banks and analysts to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets[8] Adjusted Net Income Reconciliation This section provides a reconciliation of U.S. GAAP net income to adjusted net income (non-GAAP) for the years ended December 31, 2024, and 2023, detailing adjustments related to the FDIC Special Assessment and prior period tax withholdings Adjusted Net Income Reconciliation (in thousands) | (In thousands) | Income before income tax | Income tax expense (benefit) | Total | | :------------------------------------------------- | :----------------------- | :--------------------------- | :------ | | Year Ended December 31, 2024 | | | | | U.S. GAAP Net income | $796,618 | $182,406 | $614,212 | | FDIC Special Assessment | 14,287 | (5,234) | 9,053 | | Adjustments related to tax withholdings | 6,400 | 16,483 | 22,883 | | Adjusted net income (Non-GAAP) | $817,305 | $171,157 | $646,148 | | Year Ended December 31, 2023 | | | | | U.S. GAAP Net income | $675,539 | $134,197 | $541,342 | | FDIC Special Assessment | 71,435 | (26,170) | 45,265 | | Adjusted net income (Non-GAAP) | $746,974 | $160,367 | $586,607 | - There were no adjustments to net income for the quarters ended December 31, 2024, and September 30, 2024[12] Net Interest Income and Margin Analysis This section analyzes the Corporation's net interest income and margin performance, detailing contributions from consolidated operations and segment-specific results for BPPR and Popular Bank Consolidated Net Interest Income and Margin The Corporation's net interest income increased by $18.3 million to $590.8 million in Q4 2024, with the net interest margin rising by 11 basis points to 3.35% - Net interest income for Q4 2024 was $590.8 million, an increase of $18.3 million compared to $572.5 million in Q3 2024[16] - Net interest margin for Q4 2024 was 3.35%, compared to 3.24% in Q3 2024, an increase of 11 basis points[16] - Net interest income on a taxable equivalent basis for Q4 2024 was $638.5 million, an increase of $25.6 million from Q3 2024, with a margin of 3.62% (up 15 basis points)[17] - Lower interest expense on deposit accounts by $35.3 million, mainly associated with reductions in market-linked P.R. Government deposit accounts and repricing across most other deposit products[19] - Higher interest income from loans by $10.6 million driven by higher volumes across most loan portfolios[19] Banco Popular de Puerto Rico (BPPR) Segment The BPPR segment's net interest income increased by $18.9 million to $506.9 million in Q4 2024, with its net interest margin rising by 15 basis points to 3.56% - Net interest income for the BPPR segment amounted to $506.9 million in Q4 2024, an increase of $18.9 million from Q3 2024[20] - Net interest margin for BPPR increased by 15 basis points to 3.56% in Q4 2024[20] - Lower interest expense on deposit accounts by $30.7 million, mainly driven by a $27.4 million decrease in the cost of P.R. Government deposits[24] - Higher interest income from loans by $8.8 million, primarily from higher average balances in commercial, auto, and mortgage loans[24] - Offset by lower interest income from investments in securities and money market investments by $11.0 million and $10.0 million, respectively[21] Popular Bank (PB) Segment The Popular Bank segment experienced a slight decrease in net interest income by $1.0 million to $92.2 million in Q4 2024, with its net interest margin decreasing by 2 basis points to 2.71% - Net interest income for the Popular Bank segment was $92.2 million, $1.0 million lower when compared to Q3 2024[22] - Net interest margin for Popular Bank decreased by 2 basis points to 2.71% in Q4 2024[22] - Lower interest income from money markets by $6.7 million due to lower volumes and yields[22][25] - Offset by lower interest expense on deposit accounts by $4.7 million driven by a decrease in deposit costs and lower volumes in high-cost interest bearing deposit accounts[22][25] - Offset by higher income from loans by $0.4 million mainly due to higher volumes in the commercial and construction loan portfolios[22][25] Non-Interest Income Non-interest income for Q4 2024 increased slightly by $0.6 million to $164.7 million, primarily due to higher income from mortgage banking activities, driven by favorable fair value adjustments of mortgage servicing rights - Non-interest income amounted to $164.7 million for Q4 2024, an increase of $0.6 million when compared to $164.1 million for Q3 2024[26] - The variance was primarily due to higher income from mortgage banking activities by $3.6 million, mainly due to a favorable variance in the fair value adjustment of mortgage servicing rights[26] - Partially offset by lower income in equity securities by $1.9 million[26] - Popular Auto LLC completed the sale of its daily car rental business, transferring approximately $52.1 million in assets[27] Operating Expenses Operating expenses for Q4 2024 remained relatively flat at $467.6 million, with a slight increase of $0.3 million compared to the previous quarter - Operating expenses for Q4 2024 totaled $467.6 million, an increase of $0.3 million when compared to Q3 2024[28] - Higher professional fees by $5.7 million mainly due to consulting fees related to corporate initiatives and IT projects[31] - Higher business promotion expense by $4.2 million mainly due to seasonal projects and higher donations[31] - Higher personnel costs by $3.9 million mainly due to higher incentive compensation and health insurance costs[31] - Lower technology and software expenses by $7.1 million, mainly due to IT projects which have reached the development stage and whose related costs are capitalized[31] - Lower equipment expense by $4.5 million, mainly due to a decrease in daily rental vehicle fleet depreciation as a result of the vehicles sold as part of the daily car rental business transaction[31] - Full-time equivalent employees were 9,231 as of December 31, 2024, compared to 9,246 as of September 30, 2024[28] Income Taxes The Corporation recorded an income tax expense of $43.9 million in Q4 2024, with an effective tax rate (ETR) of 19.8%, down from 21.5% in the previous quarter - For Q4 2024, the Corporation recorded an income tax expense of $43.9 million, compared to $42.5 million for Q3 2024[29] - The effective tax rate (ETR) for Q4 2024 was 19.8%, compared to 21.5% for Q3 2024[30] - The ETR for the year ended December 31, 2024, was 22.9% (20.9% excluding FDIC Special Assessment and prior period tax withholding adjustment), compared to 19.9% for the previous year (21.5% adjusted)[30] Credit Quality This section provides an overview of Popular, Inc.'s credit quality, detailing trends in non-performing loans, net charge-offs, other real estate owned, and allowance for credit losses across segments Overview Popular, Inc.'s credit quality metrics remained stable in Q4 2024, with non-performing loans (NPLs), net charge-offs (NCOs), and inflows to NPLs below historical averages - The Corporation's credit quality metrics remained stable in Q4 2024, with NPLs, NCOs, and inflows to NPLs below historical averages[32] - Auto loans and credit cards portfolios continued to show increases in delinquencies and NCOs, while mortgage and commercial portfolios continued to operate with strong credit quality trends[32] - Management believes improvements in risk management practices and the overall risk profile of the loan portfolio position the Corporation to operate successfully in the current environment[32] Non-Performing Loans (NPLs) and Net Charge-Offs (NCOs) Total NPLs decreased by $10.6 million in Q4 2024, with the NPLs to total loans ratio falling to 0.95% - Total NPLs decreased by $10.6 million compared to Q3 2024[33] - The ratio of NPLs to total loans held in the portfolio was 0.95% for Q4 2024, compared to 1.0% for Q3 2024[33] - Total NCOs of $67.4 million, increased by $8.9 million when compared to Q3 2024. The annualized NCOs to average loans held-in-portfolio ratio was 0.74% vs. 0.65% in Q3 2024[33] - In the BPPR segment, NPLs increased by $3.3 million, mainly driven by higher auto loans and leases NPLs[40] - In the PB segment, NPLs decreased by $13.9 million driven by a $17.3 million commercial loan sale[40] - In the BPPR segment, NCOs increased by $8.0 million quarter-over-quarter, mainly driven by higher consumer NCOs[40] Other Real Estate Owned (OREO) The Corporation's OREO portfolio decreased by $5.8 million to $57.3 million as of December 31, 2024, primarily due to the sale of residential OREO properties within the BPPR segment - As of December 31, 2024, the Corporation's OREO portfolio amounted to $57.3 million, a decrease of $5.8 million when compared to Q3 2024[34] - The decrease in OREO assets was driven by the sale of residential OREO properties in the BPPR segment[34] Allowance for Credit Losses (ACL) and Provision for Credit Losses (PCL) The Allowance for Credit Losses (ACL) increased slightly by $1.7 million to $746.0 million as of December 31, 2024, with the ACL to loans held-in-portfolio ratio at 2.01% - The ACL as of December 31, 2024, amounted to $746.0 million, an increase of $1.7 million when compared to Q3 2024[36] - The Corporation's ratio of the ACL to loans held-in-portfolio was 2.01% in Q4 2024, compared to 2.06% in Q3 2024[41] - The ratio of the ACL to NPLs held-in-portfolio was 212.7%, compared to 206.0% in Q3 2024[41] - The provision for credit losses amounted to $66.1 million in Q4 2024, compared to $71.4 million in Q3 2024[43] - In the BPPR segment, the ACL increased by $4.5 million driven by an increase of $10.7 million in reserves for consumer loans, offset by a $6.1 million decrease in reserves for commercial loans[37] - In the PB segment, the ACL decreased by $2.8 million from Q3 2024, mainly due to improvements in risk ratings of certain commercial relationships[38] Credit Quality by Segment This section provides a detailed breakdown of credit quality metrics for the BPPR and Popular U.S. segments, including provision for credit losses, net charge-offs, total non-performing loans, and related ratios, highlighting segment-specific trends in loan performance Credit Quality by Segment (in thousands) | Metric | BPPR (31-Dec-24) | Popular U.S. (31-Dec-24) | | :------------------------------------------ | :--------------- | :----------------------- | | Provision for credit losses - loan portfolios | $67,088 | $2,041 | | Net charge-offs | 62,604 | 4,829 | | Total non-performing loans held-in-portfolio | 292,091 | 58,689 | | Annualized net charge-offs to average loans held-in-portfolio | 0.97% | 0.18% | | Allowance / loans held-in-portfolio | 2.56% | 0.69% | | Allowance / non-performing loans held-in-portfolio | 229.61% | 128.40% | Financial Condition This section reviews Popular, Inc.'s balance sheet, highlighting changes in total assets, liabilities, stockholders' equity, and key capital ratios as of December 31, 2024 Balance Sheet Overview Total assets increased by $1.7 billion to $73.0 billion at December 31, 2024, driven by increases in available-for-sale securities and loans held-in-portfolio, partially offset by decreases in money market investments and held-to-maturity securities - Total assets amounted to $73.0 billion at December 31, 2024, an increase of $1.7 billion from Q3 2024[48] - Increase in securities available-for-sale (AFS) of $1.1 billion[51] - Increase in loans held-in-portfolio by $912.7 million (BPPR up $453.6 million, PB up $459.1 million)[51] - Decrease in money market investments of $149.8 million[51] - Decrease in securities held-to-maturity (HTM) of $107.2 million[51] - Total liabilities increased by $1.9 billion from Q3 2024[48] - Increase of $1.2 billion in deposits (BPPR up $1.3 billion, PB down $187.1 million)[51] - Increase in other liabilities of $481.5 million, mainly driven by unsettled trade payables[51] - Increase in other short-term borrowings of $225.0 million, due to FHLB advances in PB[51] Stockholders' Equity and Capital Ratios Stockholders' equity decreased by $177.4 million, primarily due to increased net unrealized losses on AFS securities, higher Treasury Stock from common stock repurchases, and dividends declared, partially offset by net income - Stockholders' equity decreased by $177.4 million from Q3 2024[48] - Mainly due to the change in accumulated other comprehensive loss driven by the increase in net unrealized losses in the portfolio of AFS securities of $197.7 million[48] - Increase in Treasury Stock of $159.1 million due to common stock repurchases[48] - Common and preferred dividends declared during the quarter of $49.9 million[48] - Common Equity Tier 1 ratio of 16.03%, Common Equity per share of $79.71 and Tangible Book Value per share of $68.16 at December 31, 2024[49] Corporate Information This section provides essential corporate details, including cautionary notes on forward-looking statements, an overview of Popular, Inc.'s operations, and conference call information Cautionary Note Regarding Forward-Looking Statements This section advises readers that the press release contains forward-looking statements subject to various risks, uncertainties, estimates, and assumptions that could cause actual results to differ materially - This press release contains 'forward-looking statements' that are not guarantees of future performance and involve risks, uncertainties, estimates and assumptions[52] - Potential factors that could cause actual results to differ materially include competitive and economic factors, adequacy of the allowance for loan losses, market risk and interest rate changes, capital market conditions, and new regulatory requirements[52] - More information on risks and important factors is included in the Corporation's Form 10-K and 10-Q filings with the SEC[53] About Popular, Inc. Popular, Inc. is described as the leading financial institution in Puerto Rico and among the top 50 U.S. bank holding companies by assets - Popular, Inc. is the leading financial institution in Puerto Rico, by both assets and deposits, and ranks among the top 50 U.S. bank holding companies by assets[54] - Banco Popular de Puerto Rico, Popular's principal subsidiary, provides retail, mortgage and commercial banking services in Puerto Rico and the U.S. Virgin Islands[54] - In the mainland United States, Popular provides retail, mortgage and commercial banking services through its New York-chartered banking subsidiary, Popular Bank, which has branches located in New York, New Jersey and Florida[54] Conference Call Details This section provides details for Popular, Inc.'s conference call to discuss financial results, including the date, time, webcast access, dial-in numbers, and replay information - Popular will hold a conference call to discuss its financial results on Tuesday, January 28, 2025, at 10:00 a.m. Eastern Time[55] - The call will be broadcast live over the Internet via the Investor Relations section of www.popular.com[55](index=55&type=chunk) - Dial-in telephone numbers are 1-833-470-1428 (Toll Free) or 1-404-975-4839 (Local), with access code 200257. A replay will be available until Thursday, February 27, 2025[56][57] Financial Supplement This section presents a comprehensive collection of detailed financial tables, including selected ratios, statements of operations and financial condition, and analyses of credit quality and non-GAAP reconciliations Selected Ratios and Other Information (Table A) This table provides key financial ratios and other selected information for Popular, Inc., including EPS, return on assets/equity, net interest margins, common equity per share, tangible book value per share, and various capital ratios for the quarters and years ended December 31, 2024, and 2023 Selected Ratios and Other Information | Metric | 31-Dec-24 | 30-Sep-24 | 31-Dec-23 | | :------------------------------------------ | :-------- | :-------- | :-------- | | Basic EPS | $2.51 | $2.16 | $1.31 | | Diluted EPS | $2.51 | $2.16 | $1.31 | | Return on average assets | 0.97% | 0.84% | 0.52% | | Return on average common equity | 9.94% | 8.82% | 5.55% | | Net interest margin (non-taxable equivalent) | 3.35% | 3.24% | 3.08% | | Net interest margin (taxable equivalent basis) - non-GAAP | 3.62% | 3.47% | 3.26% | | Common equity per share | $79.71 | $80.35 | $71.03 | | Tangible common book value per common share (non-GAAP) | $68.16 | $69.04 | $59.74 | | Common Equity Tier 1 capital | 16.03% | 16.42% | 16.30% | Consolidated Statement of Operations (Table B) This table presents the consolidated statement of operations for Popular, Inc., detailing interest income and expense, net interest income, provision for credit losses, non-interest income, and operating expenses, leading to net income for quarterly and annual periods Consolidated Statement of Operations (in thousands) | (In thousands) | 31-Dec-24 | 30-Sep-24 | Variance Q4 2024 vs. Q3 2024 | | :------------------------------------------ | :-------- | :-------- | :----------------------------- | | Total interest income | $919,767 | $937,448 | $(17,681) | | Total interest expense | 329,008 | 364,975 | (35,967) | | Net interest income | 590,759 | 572,473 | 18,286 | | Provision for credit losses | 66,102 | 71,448 | (5,346) | | Total non-interest income | 164,703 | 164,082 | 621 | | Total operating expenses | 467,627 | 467,321 | 306 | | Net income | $177,817 | $155,323 | $22,494 | Consolidated Statement of Financial Condition (Table C) This table provides a consolidated statement of financial condition, outlining assets, liabilities, and stockholders' equity for Popular, Inc. as of December 31, 2024, September 30, 2024, and December 31, 2023 Consolidated Statement of Financial Condition (in thousands) | (In thousands) | 31-Dec-24 | 30-Sep-24 | Variance Q4 2024 vs. Q3 2024 | | :------------------------------------------ | :-------- | :-------- | :----------------------------- | | Total assets | $73,045,383 | $71,323,074 | $1,722,309 | | Loans held-in-portfolio | 37,522,995 | 36,599,612 | 923,383 | | Total deposits | 64,884,345 | 63,668,501 | 1,215,844 | | Total liabilities | 67,432,317 | 65,532,560 | 1,899,757 | | Total stockholders' equity | 5,613,066 | 5,790,514 | (177,448) | Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - Q4 2024 vs Q3 2024 (Table D) This table provides a detailed analysis of average volumes, yields, and interest income/expense on a taxable equivalent basis for earning assets and interest-bearing liabilities, comparing Q4 2024 with Q3 2024, and attributing variances to rate and volume changes Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - Q4 2024 vs Q3 2024 | Metric | 31-Dec-24 | 30-Sep-24 | Variance | | :------------------------------------------ | :-------- | :-------- | :------- | | Total earning assets (Avg Volume, in millions) | $70,182 | $70,411 | $(229) | | Total earning assets (Avg Yields) | 5.49% | 5.53% | (0.04)% | | Total interest bearing deposits (Avg Volume, in millions) | $49,178 | $49,539 | $(361) | | Total interest bearing deposits (Avg Costs) | 2.55% | 2.82% | (0.27)% | | Net interest margin/income on a taxable equivalent basis (Non-GAAP) | 3.62% | 3.47% | 0.15% | Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - Q4 2024 vs Q4 2023 (Table E) This table presents an analysis of average volumes, yields, and interest income/expense on a taxable equivalent basis for earning assets and interest-bearing liabilities, comparing Q4 2024 with Q4 2023, and attributing variances to rate and volume changes Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - Q4 2024 vs Q4 2023 | Metric | 31-Dec-24 | 31-Dec-23 | Variance | | :------------------------------------------ | :-------- | :-------- | :------- | | Total earning assets (Avg Volume, in millions) | $70,182 | $68,885 | $1,297 | | Total earning assets (Avg Yields) | 5.49% | 5.18% | 0.31% | | Total interest bearing deposits (Avg Volume, in millions) | $49,178 | $48,249 | $929 | | Total interest bearing deposits (Avg Costs) | 2.55% | 2.62% | (0.07)% | | Net interest margin/income on a taxable equivalent basis (Non-GAAP) | 3.62% | 3.26% | 0.36% | Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - Year-to-Date (Table F) This table provides a year-to-date analysis of average volumes, yields, and interest income/expense on a taxable equivalent basis for earning assets and interest-bearing liabilities, comparing the years ended December 31, 2024, and 2023, with variances attributed to rate and volume changes Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - Year-to-Date | Metric | 31-Dec-24 | 31-Dec-23 | Variance | | :------------------------------------------ | :-------- | :-------- | :------- | | Total earning assets (Avg Volume, in millions) | $70,327 | $68,175 | $2,152 | | Total earning assets (Avg Yields) | 5.47% | 4.94% | 0.53% | | Total interest bearing deposits (Avg Volume, in millions) | $49,380 | $47,239 | $2,141 | | Total interest bearing deposits (Avg Costs) | 2.71% | 2.22% | 0.49% | | Net interest margin/income on a taxable equivalent basis (Non-GAAP) | 3.49% | 3.31% | 0.18% | Mortgage Banking Activities and Other Service Fees (Table G) This table details income from mortgage banking activities and other service fees, including mortgage servicing fees, net gains/losses on loan sales, trading account profit, and various other service fees like debit card, insurance, and credit card fees, for quarterly and annual periods Mortgage Banking Activities (in thousands) | (In thousands) | 31-Dec-24 | 30-Sep-24 | Variance Q4 2024 vs. Q3 2024 | | :------------------------------------------ | :-------- | :-------- | :----------------------------- | | Total mortgage servicing fees, net of fair value adjustments | $6,225 | $2,663 | $3,562 | | Total mortgage banking activities | $6,306 | $2,670 | $3,636 | Other Service Fees (in thousands) | (In thousands) | 31-Dec-24 | 30-Sep-24 | Variance Q4 2024 vs. Q3 2024 | | :------------------------------------------ | :-------- | :-------- | :----------------------------- | | Debit card fees | $26,903 | $26,197 | $706 | | Credit card fees | 30,803 | 31,262 | (459) | | Sale and administration of investment products | 9,549 | 8,387 | 1,162 | | Total other service fees | $99,350 | $98,748 | $602 | Consolidated Loans and Deposits (Table H) This table provides a breakdown of ending balances for loans held-in-portfolio by category (Commercial, Construction, Leasing, Mortgage, Consumer) and deposits by type (non-P.R. government, P.R. government), showing quarterly and annual changes Consolidated Loans Held-in-Portfolio (in thousands) | (Dollars in thousands) | 31-Dec-24 | 30-Sep-24 | Variance Q4 2024 vs. Q3 2024 | | :------------------------------------------ | :-------- | :-------- | :----------------------------- | | Total Commercial | $18,662,163 | $18,083,629 | $578,534 | | Construction | 1,263,792 | 1,113,307 | 150,485 | | Mortgage | 8,114,183 | 7,993,348 | 120,835 | | Total Consumer | 7,142,109 | 7,117,631 | 24,478 | | Total loans held-in-portfolio | $37,107,652 | $36,194,967 | $912,685 | Consolidated Deposits (in thousands) | (In thousands) | 31-Dec-24 | 30-Sep-24 | Variance Q4 2024 vs. Q3 2024 | | :------------------------------------------ | :-------- | :-------- | :----------------------------- | | Sub-total non-P.R. government deposits | $45,420,914 | $44,952,629 | $468,285 | | Sub-total P.R. government deposits | 19,463,431 | 18,715,872 | 747,559 | | Total deposits | $64,884,345 | $63,668,501 | $1,215,844 | Loan Delinquency - BPPR Operations (Table I) This table provides a detailed breakdown of loan delinquency for the Banco Popular de Puerto Rico (BPPR) segment, categorizing loans by past due status (30-59, 60-89, 90+ days), non-accrual, and accruing loans, for Q4 2024 and Q3 2024 Loan Delinquency - BPPR Operations (in thousands) | (In thousands) | Past due 30-59 days | Past due 60-89 days | Past due 90 days or more | Total past due | Non-accrual loans | Accruing loans past due 90 days or more | | :------------------------------------------ | :------------------ | :------------------ | :----------------------- | :------------- | :---------------- | :-------------------------------------- | | Commercial multi-family | $1,491 | $113 | $79 | $1,683 | $79 | $— | | Mortgage | 262,222 | 116,694 | 365,759 | 744,675 | 158,442 | 207,317 | | Auto | 111,358 | 27,858 | 51,792 | 191,008 | 51,792 | $— | | Total | $458,730 | $179,963 | $534,341 | $1,173,034 | $292,091 | $242,250 | Loan Delinquency - Popular U.S. Operations (Table J) This table details loan delinquency for the Popular U.S. (PB) segment, showing loans categorized by past due status (30-59, 60-89, 90+ days), non-accrual, and accruing loans, for Q4 2024 and Q3 2024 Loan Delinquency - Popular U.S. Operations (in thousands) | (In thousands) | Past due 30-59 days | Past due 60-89 days | Past due 90 days or more | Total past due | Non-accrual loans | Accruing loans past due 90 days or more | | :------------------------------------------ | :------------------ | :------------------ | :----------------------- | :------------- | :---------------- | :-------------------------------------- | | Commercial multi-family | $— | $5,443 | $8,700 | $14,143 | $8,700 | $— | | Mortgage | 18,148 | 5,417 | 29,890 | 53,455 | 29,890 | $— | | Personal | 1,808 | 1,509 | 1,741 | 5,058 | 1,741 | $— | | Total | $38,128 | $18,678 | $58,879 | $115,685 | $58,689 | $190 | Loan Delinquency - Consolidated (Table K) This table provides a consolidated view of loan delinquency for Popular, Inc., categorizing loans by past due status (30-59, 60-89, 90+ days), non-accrual, and accruing loans, for Q4 2024 and Q3 2024 Loan Delinquency - Consolidated (in thousands) | (In thousands) | Past due 30-59 days | Past due 60-89 days | Past due 90 days or more | Total past due | Non-accrual loans | Accruing loans past due 90 days or more | | :------------------------------------------ | :------------------ | :------------------ | :----------------------- | :------------- | :---------------- | :-------------------------------------- | | Commercial multi-family | $1,491 | $5,556 | $8,779 | $15,826 | $8,779 | $— | | Mortgage | 280,370 | 122,111 | 395,649 | 798,130 | 188,332 | 207,317 | | Auto | 111,358 | 27,858 | 51,792 | 191,008 | 51,792 | $— | | Total | $496,858 | $198,641 | $593,220 | $1,288,719 | $350,780 | $242,440 | Non-Performing Assets (Table L) This table presents a summary of non-performing assets, including non-accrual loans by category and other real estate owned (OREO), along with key ratios such as non-performing assets to total assets and allowance for credit losses to non-performing loans, for various periods Non-Performing Assets (in thousands) | (In thousands) | 31-Dec-24 | 30-Sep-24 | Variance Q4 2024 vs. Q3 2024 | | :------------------------------------------ | :-------- | :-------- | :----------------------------- | | Total non-performing loans held-in-portfolio | $350,780 | $361,398 | $(10,618) | | Other real estate owned ("OREO") | 57,268 | 63,028 | (5,760) | | Total non-performing assets | $408,048 | $424,426 | $(16,378) | | Non-performing assets to total assets | 0.56% | 0.60% | | | Non-performing loans held-in-portfolio to loans held-in-portfolio | 0.95% | 1.00% | | | Allowance for credit losses to non-performing loans, excluding loans held-for-sale | 212.68% | 205.96% | | Activity in Non-Performing Loans (Table M) This table details the activity in non-performing loans (NPLs) for commercial, mortgage, and total non-consumer portfolios, broken down by BPPR and Popular U.S. segments, showing beginning balances, new NPLs, advances, transfers to OREO, charge-offs, and loans returned to accrual status or collections Activity in Non-Performing Commercial Loans (in thousands) | (In thousands) | BPPR | Popular U.S. | Popular, Inc. | | :------------------------------------------ | :----- | :----------- | :------------ | | Beginning balance NPLs | $53,819 | $38,476 | $92,295 | | Plus: New non-performing loans | 2,915 | 9,203 | 12,118 | | Less: Loans returned to accrual status / loan collections | (4,854) | (23,199) | (28,053) | | Ending balance NPLs | $51,101 | $23,654 | $74,755 | Activity in Non-Performing Mortgage Loans (in thousands) | (In thousands) | BPPR | Popular U.S. | Popular, Inc. | | :------------------------------------------ | :----- | :----------- | :------------ | | Beginning balance NPLs | $157,920 | $28,434 | $186,354 | | Plus: New non-performing loans | 44,670 | 4,637 | 49,307 | | Less: Loans returned to accrual status / loan collections | (40,307) | (3,202) | (43,509) | | Ending balance NPLs | $158,442 | $29,890 | $188,332 | Allowance for Credit Losses, Net Charge-offs and Related Ratios (Table N) This table provides a comprehensive overview of the Allowance for Credit Losses (ACL) and net charge-offs (NCOs) for Popular, Inc., including segment-specific breakdowns (BPPR and Popular U.S.), and related ratios such as annualized NCOs to average loans and provision for credit losses to net charge-offs Allowance for Credit Losses and Net Charge-offs (in thousands) | (In thousands) | 31-Dec-24 | 30-Sep-24 | | :------------------------------------------ | :-------- | :-------- | | Balance at beginning of period - loans held-in-portfolio | $744,320 | $730,077 | | Provision for credit losses | 69,129 | 72,769 | | Total loans charged-off - Popular, Inc. | $67,433 | $58,529 | | Balance at end of period - loans held-in-portfolio | $746,024 | $744,320 | Related Ratios | Metric | POPULAR, INC. | BPPR | Popular U.S. | | :------------------------------------------ | :------------ | :----- | :------------- | | Annualized net charge-offs (recoveries) to average loans held-in-portfolio | 0.74% | 0.97% | 0.18% | | Provision for credit losses (benefit) - loan portfolios to net charge-offs | 102.52% | 107.16% | 42.27% | Allowance for Credit Losses "ACL" - Loan Portfolios - BPPR Operations (Table O) This table details the Allowance for Credit Losses (ACL) for the Banco Popular de Puerto Rico (BPPR) segment's loan portfolios, broken down by loan category, and presents the ACL to loans held-in-portfolio ratio for Q4 2024 and Q3 2024 Allowance for Credit Losses "ACL" - Loan Portfolios - BPPR Operations (in thousands) | (In thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio | | :------------------------------------------ | :-------- | :---------------------------- | :----------------------------- | | Total commercial | $215,126 | $10,277,309 | 2.09% | | Mortgage | 72,901 | 6,809,881 | 1.07% | | Total consumer | $363,477 | $6,954,136 | 5.23% | | Total | $670,666 | $26,179,021 | 2.56% | Allowance for Credit Losses "ACL" - Loan Portfolios - Popular U.S. Operations (Table P) This table details the Allowance for Credit Losses (ACL) for the Popular U.S. (PB) segment's loan portfolios, broken down by loan category, and presents the ACL to loans held-in-portfolio ratio for Q4 2024 and Q3 2024 Allowance for Credit Losses "ACL" - Loan Portfolios - Popular U.S. Operations (in thousands) | (In thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio | | :------------------------------------------ | :-------- | :---------------------------- | :----------------------------- | | Total commercial | $44,438 | $8,384,854 | 0.53% | | Mortgage | 9,508 | 1,304,302 | 0.73% | | Total consumer | $12,891 | $187,973 | 6.86% | | Total | $75,358 | $10,928,631 | 0.69% | Allowance for Credit Losses "ACL" - Loan Portfolios - Consolidated (Table Q) This table provides a consolidated view of the Allowance for Credit Losses (ACL) for Popular, Inc.'s loan portfolios, broken down by loan category, and presents the ACL to loans held-in-portfolio ratio for Q4 2024 and Q3 2024 Allowance for Credit Losses "ACL" - Loan Portfolios - Consolidated (in thousands) | (In thousands) | Total ACL | Total loans held-in-portfolio | ACL to loans held-in-portfolio | | :------------------------------------------ | :-------- | :---------------------------- | :----------------------------- | | Total commercial | $259,564 | $18,662,163 | 1.39% | | Mortgage | 82,409 | 8,114,183 | 1.02% | | Total consumer | $376,368 | $7,142,109 | 5.27% | | Total | $746,024 | $37,107,652 | 2.01% | Reconciliation to GAAP Financial Measures (Table R) This table provides a reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures, specifically for tangible common equity, tangible assets, tangible book value per common share, and return on average tangible common equity, for various periods Reconciliation to GAAP Financial Measures (in thousands, except share or per share information) | (In thousands, except share or per share information) | 31-Dec-24 | 30-Sep-24 | 31-Dec-23 | | :------------------------------------------------- | :-------- | :-------- | :-------- | | Total stockholders' equity | $5,613,066 | $5,790,514 | $5,146,953 | | Total tangible common equity | $4,781,143 | $4,956,412 | $4,310,618 | | Total assets | $73,045,383 | $71,323,074 | $70,758,155 | | Total tangible assets | $72,235,603 | $70,511,115 | $69,943,963 | | Tangible common equity to tangible assets | 6.62% | 7.03% | 6.16% | | Tangible book value per common share | $68.16 | $69.04 | $59.74 |