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Segment Reporting
 12 Months Ended
Dec. 31, 2014
Notes to Financial Statements [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 45 – Segment reporting

The Corporation's corporate structure consists of two reportable segments – Banco Popular de Puerto Rico and Banco Popular North America. These reportable segments pertain only to the continuing operations of Popular, Inc. As previously indicated in Note 4 to the consolidated financial statements, the regional operations in California, Illinois and Central Florida were classified as discontinued operations in the second quarter of 2014.

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:

Given that Banco Popular de Puerto Rico constitutes a significant portion of the Corporation's results of operations and total assets at December 31, 2014, additional disclosures are provided for the business areas included in this reportable segment, as described below:

  • Commercial banking represents the Corporation's banking operations conducted at BPPR, which are targeted mainly to corporate, small and middle size businesses. It includes aspects of the lending and depository businesses, as well as other finance and advisory services. BPPR allocates funds across business areas based on duration matched transfer pricing at market rates. This area also incorporates income related with the investment of excess funds, as well as a proportionate share of the investment function of BPPR.
  • Consumer and retail banking represents the branch banking operations of BPPR which focus on retail clients. It includes the consumer lending business operations of BPPR, as well as the lending operations of Popular Auto and Popular Mortgage. Popular Auto focuses on auto and lease financing, while Popular Mortgage focuses principally on residential mortgage loan originations. The consumer and retail banking area also incorporates income related with the investment of excess funds from the branch network, as well as a proportionate share of the investment function of BPPR.
  • Other financial services include the trust and asset management service units of BPPR, the brokerage and investment banking operations of Popular Securities, and the insurance agency and reinsurance businesses of Popular Insurance, Popular Insurance V.I., Popular Risk Services, and Popular Life Re. Most of the services that are provided by these subsidiaries generate profits based on fee income.

Banco Popular North America:

Banco Popular North America's reportable segment consists of the banking operations of BPNA, E-LOAN, Popular Equipment Finance, Inc. and Popular Insurance Agency, U.S.A. BPNA operates through a retail branch network in the U.S. mainland under the name of Popular Community Bank, while E-LOAN supports BPNA's deposit gathering through its online platform. All direct lending activities at E-LOAN were ceased during the fourth quarter of 2008. Popular Equipment Finance, Inc. also holds a running-off loan portfolio as this subsidiary ceased originating loans during 2009. Popular Insurance Agency, U.S.A. offers investment and insurance services across the BPNA 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 EVERTEC and Centro Financiero BHD, S.A. The Corporate group also includes the expenses of certain corporate areas that are identified as critical to the organization: Finance, Risk Management and Legal.

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:

December 31, 2014
  Banco Popular  Banco Popular  Intersegment
(In thousands) de Puerto Rico North America Eliminations
Net interest income$ 1,288,889$ 157,701$ -
Provision (reversal of provision) for loan losses  289,184  (18,850)  -
Non-interest income   283,251  64,319  -
Amortization of intangibles  7,351  809  -
Depreciation expense  39,062  6,617  -
Loss on early extinguishment of debt  -  532  -
Other operating expenses  884,289  184,369  -
Income tax expense  77,973  3,101  -
Net income $ 274,281$ 45,442$ -
Segment assets$ 27,384,169$ 5,503,433$ (17,972)

December 31, 2014
  Reportable      
(In thousands)  Segments Corporate Eliminations Total Popular, Inc.
Net interest income (expense)$ 1,446,590$ (501,518)$ -$ 945,072
Provision (reversal of provision) for loan losses  270,334  (200)  -  270,134
Non-interest income  347,570  41,695  (2,750)  386,515
Amortization of intangibles  8,160  -  -  8,160
Depreciation expense  45,679  648  -  46,327
Loss on early extinguishment of debt  532  -  -  532
Other operating expenses  1,068,658  72,759  (2,752)  1,138,665
Income tax expense (benefit)  81,074  (22,796)  1  58,279
Net income (loss)$ 319,723$ (510,234)$ 1$ (190,510)
Segment assets$ 32,869,630$ 4,937,372$ (4,710,307)$ 33,096,695

December 31, 2013
  Banco Popular  Banco Popular  Intersegment
(In thousands) de Puerto Rico North America  Eliminations
Net interest income$ 1,260,537$ 192,265$ -
Provision for loan losses  616,883  (11,175)  -
Non-interest income   281,894  36,252  -
Amortization of intangibles  7,162  809  -
Depreciation expense  38,282  6,839  -
Other operating expenses  943,444  153,207  -
Income tax (benefit) expense  (236,898)  2,795  -
Net income$ 173,558$ 76,042$ -
Segment assets$ 26,883,073$ 8,724,784$ (24,609)

December 31, 2013
  Reportable      
(In thousands)  Segments Corporate Eliminations Total Popular, Inc.
Net interest income (expense)$ 1,452,802$ (108,228)$ -$ 1,344,574
Provision for loan losses  605,708  398  -  606,106
Non-interest income  318,146  475,663  (2,796)  791,013
Amortization of intangibles  7,971  -  -  7,971
Depreciation expense  45,121  643  -  45,764
Loss on early extinguishment of debt  -  3,388  -  3,388
Other operating expenses  1,096,651  70,997  (2,781)  1,164,867
Income tax benefit  (234,103)  (17,082)  (142)  (251,327)
Net income$ 249,600$ 309,091$ 127$ 558,818
Segment assets$ 35,583,248$ 5,495,498$ (5,329,413)$ 35,749,333

December 31, 2012
  Banco Popular  Banco Popular  Intersegment
(In thousands) de Puerto Rico North America  Eliminations
Net interest income$ 1,199,210$ 186,680$ -
Provision for loan losses  356,496  40,173  -
Non-interest income   401,417  37,141  -
Amortization of intangibles  7,351  810  -
Depreciation expense  37,321  5,785  -
Loss on early extinguishment of debt  25,196  -  -
Other operating expenses  903,677  165,133  -
Income tax expense  (20,245)  3,745  -
Net income$ 290,831$ 8,175$ -
Segment assets$ 27,600,235$ 8,651,790$ (31,792)

December 31, 2012
  Reportable      
(In thousands)  Segments Corporate Eliminations Total Popular, Inc.
Net interest income (expense)$ 1,385,890$ (104,750)$ 487$ 1,281,627
Provision for loan losses  396,669  404  -  397,073
Non-interest income  438,558  76,156  (3,225)  511,489
Amortization of intangibles  8,161  -  -  8,161
Depreciation expense  43,106  1,258  -  44,364
Loss on early extinguishment of debt  25,196  -  -  25,196
Other operating expenses  1,068,810  71,579  (3,121)  1,137,268
Income tax expense (benefit)  (16,500)  (9,945)  42  (26,403)
Net income (loss)$ 299,006$ (91,890)$ 341$ 207,457
Segment assets$ 36,220,233$ 5,308,327$ (5,021,025)$ 36,507,535

Additional disclosures with respect to the Banco Popular de Puerto Rico reportable segment are as follows:

 

December 31, 2014
Banco Popular de Puerto Rico
    Consumer  Other    Total Banco
  Commercial and Retail  Financial    Popular de
(In thousands)  Banking Banking Services Eliminations Puerto Rico
Net interest income $ 521,957$ 757,721$ 9,207$ 4$ 1,288,889
Provision for loan losses  138,213  150,971  -  -  289,184
Non-interest (expense) income  3,534  181,117  98,794  (194)  283,251
Amortization of intangibles  4  6,836  511  -  7,351
Depreciation expense  16,407  21,551  1,104  -  39,062
Other operating expenses  254,146  562,345  67,992  (194)  884,289
Income tax expense  22,899  38,825  16,249  -  77,973
Net income $ 93,822$ 158,310$ 22,145$ 4$ 274,281
Segment assets$ 10,267,633$ 18,895,974$ 591,955$ (2,371,393)$ 27,384,169

December 31, 2013
Banco Popular de Puerto Rico
    Consumer Other    Total Banco
  Commercial   and Retail  Financial   Popular de
(In thousands) Banking Banking  Services Eliminations Puerto Rico
Net interest income $ 493,836$ 757,039$ 9,662$ -$ 1,260,537
Provision for loan losses  180,228  436,655  -  -  616,883
Non-interest (expense) income  (41,362)  224,080  99,243  (67)  281,894
Amortization of intangibles  4  6,837  321  -  7,162
Depreciation expense  16,083  20,981  1,218  -  38,282
Other operating expenses  296,319  578,903  68,289  (67)  943,444
Income tax (benefit) expense  (66,747)  (182,471)  12,320  -  (236,898)
Net income $ 26,587$ 120,214$ 26,757$ -$ 173,558
Segment assets$ 10,803,992$ 18,083,293$ 576,299$ (2,580,511)$ 26,883,073

December 31, 2012
Banco Popular de Puerto Rico
    Consumer Other    Total Banco
  Commercial   and Retail  Financial   Popular de
(In thousands) Banking Banking  Services Eliminations Puerto Rico
Net interest income $ 424,467$ 762,857$ 11,882$ 4$ 1,199,210
Provision for loan losses  149,597  206,899  -  -  356,496
Non-interest income  19,426  269,190  112,949  (148)  401,417
Amortization of intangibles  13  6,833  505  -  7,351
Depreciation expense  16,840  19,522  959  -  37,321
Loss on early extinguishment of debt  8,037  17,159  -  -  25,196
Other operating expenses  279,358  555,797  68,670  (148)  903,677
Income tax expense  (33,068)  (1,460)  14,281  2  (20,245)
Net income $ 23,116$ 227,297$ 40,416$ 2$ 290,831
Segment assets$ 12,770,793$ 19,668,009$ 632,676$ (5,471,243)$ 27,600,235

Additional disclosures with respect to the Banco Popular North America reportable segments are as follows:

 

December 31, 2014
Banco Popular North America
  Banco Popular      Total Banco Popular North
(In thousands) North America E-LOAN Eliminations America
Net interest income $ 154,806$ 2,895$ -$ 157,701
Reversal of provision for loan losses  (16,416)  (2,434)  -  (18,850)
Non-interest income  61,982  2,337  -  64,319
Amortization of intangibles  809  -  -  809
Depreciation expense  6,617  -  -  6,617
Loss on early extinguishment of debt  532  -  -  532
Other operating expenses  181,452  2,917  -  184,369
Income tax expense  3,101  -  -  3,101
Net income$ 40,693$ 4,749$ -$ 45,442
Net income ( loss)$ 6,222,580$ 255,757$ (974,904)$ 5,503,433

December 31, 2013
Banco Popular North America
        Total Banco
  Banco Popular      Popular North
(In thousands) North America E-LOAN Eliminations  America
Net interest income $ 189,229$ 3,036$ -$ 192,265
(Reversal of provision) provision for loan losses  (13,998)  2,823  -  (11,175)
Non-interest income  35,833  419  -  36,252
Amortization of intangibles  809  -  -  809
Depreciation expense  6,839  -  -  6,839
Other operating expenses  150,767  2,440  -  153,207
Income tax expense   4,012  (1,217)  -  2,795
Net income (loss)$ 76,633$ (591)$ -$ 76,042
Segment assets$ 9,453,934$ 315,712$ (1,044,862)$ 8,724,784

December 31, 2012
Banco Popular North America
        Total Banco
  Banco Popular      Popular North
(In thousands) North America E-LOAN Eliminations  America
Net interest income $ 183,222$ 3,458$ -$ 186,680
Provision for loan losses  24,973  15,200  -  40,173
Non-interest income  34,026  3,115  -  37,141
Amortization of intangibles  810  -  -  810
Depreciation expense  5,785  -  -  5,785
Other operating expenses  162,309  2,824  -  165,133
Income tax expense   3,745  -  -  3,745
Net income (loss)$ 19,626$ (11,451)$ -$ 8,175
Segment assets$ 9,378,779$ 367,362$ (1,094,351)$ 8,651,790

Geographic Information   
     
(In thousands) 2014 2013 2012 
Revenues:[1]       
Puerto Rico $ 1,024,416$ 1,838,657$ 1,492,796 
United States  223,264  218,295  202,177 
Other  83,907  78,635  98,143 
Total consolidated revenues $ 1,331,587$ 2,135,587$ 1,793,116 

[1] Total revenues include net interest income (expense), service charges on deposit accounts, other service fees, mortgage banking activities, net gain (loss) and valuation adjustments on investment securities, trading account (loss) profit, net (loss) gain on sale of loans and valuation adjustments on loans held-for-sale, adjustments to indemnity reserves on loans sold, FDIC loss share (expense) income and other operating income.

Selected Balance Sheet Information
(In thousands) 2014 2013 2012
Puerto Rico      
Total assets$ 26,276,561$ 25,714,758$ 26,582,248
Loans  17,704,170  18,107,764  18,484,977
Deposits  20,365,445  19,730,408  19,984,830
United States      
Total assets$ 5,689,604$ 8,897,535$ 8,816,143
Loans  3,568,564  5,839,115  5,852,705
Deposits  3,442,084  6,007,159  6,049,168
Other      
Total assets$ 1,130,530$ 1,137,040$ 1,109,144
Loans  780,483  759,840  755,950
Deposits [1]  1,000,006  973,578  966,615
[1] Represents deposits from BPPR operations located in the US and British Virgin Islands.