Popular, Inc. · NASDAQ:BPOP
Popular — Stern Agee Financial Services Symposium 2011
14 slides from Popular's conference presentation, Feb 17, 2011
Slide 1: Fourth Quarter 2010 Financial Results
Fourth Quarter 2010 Financial Results Stern Agee Financial Services Symposium February 17, 2011
Slide 2: Forward Looking Statements
1 Forward Looking Statements Statements contained in this Presentation that are not based on current or historical fact are forward-looking in nature. Such forward-looking statements are based on current plans, estimates and expectations and are made pursuant to the Private Securities Litigation Ref
Slide 3: Q4 2010 Highlights
Q4 2010 Highlights 2 Net loss of ($227M) or EPS of ($0.22) While top line income remained stable, results were impacted by several significant events Reclassification of $1B in loans to held for sale (LHFS) negatively impacted earnings by $186M ($176M additional provision and $10M in related expense
Slide 4: Puerto Rico Economic Update
3 Puerto Rico Economic Update BPPR-Index of Real Economic Activity - Annualized Rate Retail Sales - Annual Percentage Change Employment, Unemployment and Labor Force Sources: Puerto Rico Labor Department, U.S. Labor Bureau, P.R. Government Development Bank, Consultec and Puerto Rico Commerce and Exp
Slide 5: Financial Results
4 Financial Results 1 Unaudited $ in thousands (except per share data) $ in thousands (except per share data) $ in thousands (except per share data) Q4 20101 Q3 20101 Net Interest Income $354,575 $356,778 Service fees & Other Oper. Income 126,080 814,902 FV Adjustment FDIC Equity Appreciation 7,520
Slide 6: Q4 2010 Significant Events
Q4 2010 Significant Events 5 Reclassification of loan portfolios & charge-off of impaired collateral dependent loans: I. Loans with significant credit risk were reclassified as LHFS: Puerto Rico: $510M in construction loans and $99M in commercial US: $396M in NCM loans which include all NPLs, TDRs a
Slide 7: Q4 2010 Significant Events: Westernbank Loan Revaluation
Q4 2010 Significant Events 6 Revaluation of FDIC-assisted Westernbank loan portfolio The changes in valuation led to the revision of previously reported results for the second and third quarters. The loans acquired from WB were revalued as of April 30: Estimated cumulative losses decreased by $1.1B
Slide 8: P.R. Business
7 P.R. Business Reclassification of $609M in construction and CRE loans added $55M to provision expense Excluding loan reclassifications, provision expense decreased by $40M Paid down $796M in FDIC note during Q4; FDIC note balance as of 12-31-2010 was $2.5B Despite our 2010 accomplishments, there a
Slide 9: U.S. Business
8 U.S. Business $ in millions Q4 10 Q3 10 Net Interest Income $78 $77 Non Interest Income 9 13 Gross Revenue 87 90 Provision for loan losses (157) (33) Expenses (93) (70) Taxes Benefit (Expense) (1) (2) Net Loss ($164) ($15) NPLs (HTM) $460 $681 NPLs (HTM + HFS) 658 681 Loan loss reserve $338 $530 A
Slide 10: Credit Quality Overview
Credit Quality Overview Non-Performing Loans Excludes WB Covered Loans 9 NPLs to total loans decreased to 10.48%. Excluding LHFS, NPLs to total loans were 7.58% Excluding the LHFS portfolio, NPLs in the quarter declined by $771M to $1.6B Including the LHFS, the largest NPL decline occurred in the co
Slide 11: Credit Summary - Popular Inc Consolidated
10 Credit Summary- Popular Inc Consolidated Credit quality ratios excludes covered asserts.
Slide 12: Capital Ratios
11 Capital Ratios As of December 31, 2010* (%) Total Capital Tier 1 Capital (%) Tier 1 Common (%) Tier 1 Leverage (%) After the successful implementation of our 2010 plan, we now have a solid capital base () *Capital ratios as of 12-31-2010 are estimated. Current Minimum Well-Capitalized (Tier 1 Com
Slide 13: Popular, Inc. - Recap & Outlook
We set a solid base for Popular in 2010... Raised $1.7B in capital Acquired a significant volume of low-risk assets in our home market with close to 140,000 new customers Significantly reduced non-performing loans and lowered risk In the U.S. business, we strengthened the management team and renewed
Slide 14: Popular
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Popular — Stern Agee Financial Services Symposium 2011 on 6ix