Slide 1: Investor Presentation Fourth Quarter 2015
Investor Presentation Fourth Quarter 2015 Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements The information contained in this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and are subject to risks and uncer
Slide 3: 2015 Full Year Highlights
1 See appendix for reconciliation to GAAP. 2015 Full Year Highlights NPLs decreased by $29 million YoY; ratio at 2.7% NPL inflows, excluding consumer loans, down by $114 million YoY NCOs ratio of 0.98% compared to 0.90% last year Credit (excluding covered loans) Reported adjusted net income of $375
Slide 4: Market Leadership in Puerto Rico
Market Leadership in Puerto Rico Source: Puerto Rico Office of the Commissioner of Financial Institutions, COSSEC, and 10K Reports.*Information included pertains to P.R. Commercial Banks and Credit Unions. ¹ Mortgage loan production and credit card data for certain competitors is not publicly availa
Slide 5: Q4 2015 Highlights
1 See appendix for reconciliation to GAAP. 2 Adjusted for Doral remeasurement, see appendix for GAAP results. Q4 2015 Highlights NPLs decreased by $33 million QoQ; ratio at 2.7% NPL inflows, excluding consumer loans, down by $87 million QoQ NCOs ratio of 1.48% compared to 0.83% last quarter Credit (
Slide 6: P.R. Public Sector Exposure
P.R. Public Sector Exposure Our current direct exposure to the P.R. Government, instrumentalities, and municipalities is $669 million, of which approximately $578 million is outstanding. The outstanding balance remained essentially flat from Q3 2015, but down $233 million from Q4 2014. Central Gover
Slide 7: Financial Summary (non-GAAP)
Financial Summary (non-GAAP)¹ ¹ Unaudited. See Appendix for reconciliation to GAAP.
Slide 8: FDIC Loss Share Asset
FDIC Loss Share Asset Composition of FDIC Loss Share Asset ($ in millions) $713 $636 $312 $149 $234 FDICLSA FDICLSA Ss FDICLSA = FDICLSA = FDICLSA | —FDICLSA = FDICLSA—FDICLSAQ2"15Claims —Claimsin 4 4 03.15 5 paid by FDIC Dispute (an 2016) a . = Clos Pld by Foe a ig Poputar. 7
Slide 9: Capital Ratios (%)
Capital Ratios (%) Popular’s capital metrics continued to be robust with Common Equity Tier 1 (CET1) of 16.2% Common stock quarterly dividend reinstated Regulatory capital ratios remained flat due to Doral fair value remeasurement which reduced CET1 by 41 basis points Note: Capital ratios for the cu
Slide 10: De-risked Loan Portfolios
De-risked Loan Portfolios The Corporation has de-risked its loan portfolios by reducing its exposure to asset classes with historically high loss content The P.R. commercial portfolio reductions include: Commercial portfolio, including construction, has decreased from 55% of total loans held-in-port
Slide 11: Non-Performing Assets
Non-Performing Assets Highlights NPAs, including covered loans, down by $36 million QoQ NPLs, excluding covered loans, down by $33 million QoQ P.R. NPLs at $575 million, or 3.3% of loans, down by $35 million Commercial NPLs down by $58 million mostly the result of: $31 million in charge-offs that we
Slide 12: NPL Inflows
NPL Inflows Total NPL Inflows ($ in millions) Highlights Total NPL inflows down $87 million QoQ P.R. commercial inflows, including construction, down by $74 million Prior quarter included the addition of three large credits, the largest of which was a $49 million relationship P.R. mortgage inflows d
Slide 13: Additional Credit Metrics
NCO ($ in millions) and NCO-to-Loan Ratio Provision ($ in millions) and Provision-to-NCO Ratio Additional Credit Metrics Highlights NCO increase of $37 million QoQ mainly driven by: Higher commercial NCOs by $35 million; $31 million related to previously reserved large relationships NCO ratio of 1.4
Slide 14: Driving Shareholder Value
Driving Shareholder Value Capital Robust capital with Common Equity Tier 1 Capital of 16.2% Strong DFAST Results Earnings Unique franchise in P.R. provides strong, stable revenue-generating capacity Continued strong loan growth in the U.S. Additional Value EVTC ownership and Banco BHD León stake Rec
Slide 15: Appendix
Investor Presentation Fourth Quarter 2015 APPENDIX
Slide 16: Who We Are – Popular, Inc.
Who We Are – Popular, Inc. Franchise Information as of December 31, 2015 ¹ Doing business as Popular Community Bank Summary Corporate Structure Assets = $36 billion Assets = $28 billion Assets = $8 billion Puerto Rico Operations United States Operations Selected equity investments EVERTEC and Banco
Slide 17: GAAP Reconciliation Full Year 2015
GAAP Reconciliation Full Year 2015 * Unaudited. ¹ Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements. ($ in thousands) Actual Results (U.S. GAAP) BPNA Reorganiza tion Doral Transaction OTTI Reversal of DTA U.S. Oper
Slide 18: GAAP Reconciliation Q4 2015
GAAP Reconciliation Q4 2015 * Unaudited. ¹ Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements. ($ in thousands) Actual Results (U.S. GAAP) BPNA Reorganization Doral Transaction Re measurement Bulk Sale Impairment of
Slide 19: GAAP Reconciliation Q3 2015
GAAP Reconciliation Q3 2015 * Unaudited. ¹ Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements. ($ in thousands) Actual Results (U.S. GAAP) BPNA Reorganization Doral Transaction MSRs Acquired Impairment of Loans Unde
Slide 20: Business Segments (GAAP)
Business Segments (GAAP)* * Unaudited ¹ Non-fully taxable equivalent
Slide 21: Consolidated Credit Summary (Excluding Covered Loans)
Consolidated Credit Summary (Excluding Covered Loans) 1 Excluding provision for loan losses and net write-downs related to the assets sales 2 Excluding the impact of the $5.1 million and $10.1 million impairment in Q4 2015 and Q3 2015, respectively, on the WB loans the Corporation has either sold or
Slide 22: Popular, Inc. Credit Ratings
Popular, Inc. Credit Ratings Our senior unsecured ratings have remained stable Moody’s B2 Negative Fitch BB- Stable Outlook S&P B+ Negative January Fitch raised to BB- from B+; outlook stable October Moody’s revised outlook to negative February Moody's placed BPOP on review for downgrade May Moody’s
Slide 23: Fourth Quarter 2015
Investor Presentation Fourth Quarter 2015