About Popular
Popular, Inc. (Popular) operates as a diversified, publicly-owned financial holding company. The company operates in two principal markets: Puerto Rico: The company provides retail, mortgage and commercial banking services through its principal banking subsidiary, Banco Popular de Puerto Rico (Banco Popular or BPPR), as well as auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. BPPR’s deposits are insured under the Deposit Insurance Fund (DIF) of the Federal Deposit Insurance Corporation (FDIC). The banking operations of BPPR are primarily based in Puerto Rico, where BPPR has the largest retail banking franchise. Mainland United States: The company provides retail, mortgage and commercial banking services through its New York-chartered banking subsidiary, Popular Bank (PB or Popular U.S.), which has branches in New York, New Jersey and Florida, as well as commercial direct financing leases through a specialized subsidiary, Popular Equipment Finance LLC in Minnesota. PB’s deposits are insured under the DIF of the FDIC. BPPR also conducts banking operations in the U.S. Virgin Islands, the British Virgin Islands and New York. In addition to BPPR’s commercial banking operations in New York that include direct loan origination and participating loans originated by PB, BPPR offers or holds financial products on a National scale in the U.S. market, including personal loans previously originated under the E-Loan brand, purchased personal loans originated by third parties, issuing co-branded credit cards offerings and gathering insured institutional deposits via online deposit gathering platforms. In the U.S. and British Virgin Islands, BPPR offers a range of banking products, including loans and deposits to both retail and commercial customers. Segments The company operates through Banco Popular de Puerto Rico and Popular U.S. segments. Banco Popular de Puerto Rico This segment includes commercial, consumer and retail banking operations conducted at BPPR, including the 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, LLC (Popular Insurance), Popular Risk Services, Popular Life Re, and Popular Re. Popular U.S. This segment consists of the banking operations of Popular Bank; Popular Insurance Agency, U.S.A.; and PEF. Popular Bank operates through a retail branch network in the United States (U.S.) mainland under the name of Popular, and equipment leasing and financing services through Popular Equipment Finance (PEF). Popular Insurance Agency, U.S.A. offers investment and insurance services across the PB branch network. Lending Activities The company concentrates its lending activities in the following areas: Commercial: Commercial loans are consisted of commercial and industrial (C&I) loans and leases to commercial customers for use in normal business operations and to finance working capital needs, equipment purchases or other projects, and commercial real estate (CRE) loans (excluding construction loans) for income-producing real estate properties, as well as owner-occupied properties. C&I loans are underwritten individually and usually secured with the assets of the company and the personal guarantee of the business owners. CRE loans consist of loans for income-producing real estate properties and the financing of owner-occupied facilities if there is real estate as collateral. Non-owner-occupied CRE loans are generally made to finance office and industrial buildings, healthcare facilities, multifamily buildings and retail shopping centers and are repaid through cash flows related to the operation, sale or refinancing of the property. Mortgage: Mortgage loans include residential mortgage loans to consumers for the purchase or refinancing of a residence and also include residential construction loans made to individuals for the construction of refurbishment of their residence. Consumer: Consumer loans are mainly consisted of personal loans, credit cards, and automobile loans, and to a lesser extent home equity lines of credit (HELOCs) and other loans made by banks to individual borrowers. Construction: Construction loans are CRE loans to companies or developers used for the construction of a commercial or residential property for which repayment will be generated by the sale or permanent financing of the property. The company’s construction loan portfolio primarily consists of retail, residential (land and condominiums), office and warehouse product types. Lease Financings: Lease financings are offered by BPPR and are primarily consisted of automobile loans/leases made through automotive dealerships and equipment lease financings. Deposits For the year ended December 31, 2022, the company’s deposits included NOW and money market, savings, time, certificates of deposit (under $250,000 and $250,000 and over) and demand deposits. Securities For the year ended December 31, 2022, the company’s investment securities included U.S. Treasury securities; collateralized mortgage obligations - federal agencies; mortgage-backed securities; and other. Regulation and Supervision The company and Popular North America, Inc. (PNA) are bank holding companies subject to consolidated supervision and regulation by the Board of Governors of the Federal Reserve System (the Federal Reserve Board) under the Bank Holding Company Act of 1956 (as amended, the BHC Act). BPPR and PB are subject to supervision and examination by applicable federal and state banking agencies, including in the case of BPPR, the Federal Reserve Board and the Office of the Commissioner of Financial Institutions of Puerto Rico (the Office of the Commissioner), and, in the case of PB, the Federal Reserve Board and the New York State Department of Financial Services (the NYSDFS). The company’s broker-dealer /investment adviser subsidiary, Popular Securities, LLC (PS) and investment advisor subsidiary Popular Asset Management LLC (PAM) are subject to regulation by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the Securities Investor Protection Corporation, among others. Other of the company’s non-bank subsidiaries conduct reinsurance and insurance producer and agency activities, which are subject to other federal, state and Puerto Rico laws and regulations, as well as licensing and regulation by the Puerto Rico Office of the Commissioner of Insurance and, for one insurance agency subsidiary, the NYSDFS. The company is subject to examination and regulation by the Consumer Financial Protection Bureau (CFPB). All the deposits of BPPR and PB are subject to insurance up to applicable limits by the FDIC’s DIF and, as a result, BPPR and PB are subject to FDIC deposit insurance assessments. BPPR and PB are subject to restrictions that limit the amount of extensions of credit and certain other ‘covered transactions’ (as defined in Section 23A of the Federal Reserve Act) between BPPR or PB, on the one hand, and Popular, PNA or any of the company’s other non-banking subsidiaries, on the other hand, and that impose collateralization requirements on such credit extensions. In addition, any transaction between BPPR or PB, on the one hand, and Popular, PNA or any of the company’s other non-banking subsidiaries, on the other, is required to be carried out on an arm’s length basis. The company’s subsidiary, PS, is a registered broker-dealer with the SEC and subject to regulation and examination by the SEC, as well as FINRA and other self-regulatory organizations. History Popular, Inc. was founded in 1893. The company was incorporated in 1984 under the laws of the Commonwealth of Puerto Rico.
