|Over a week ago|
Popular implements branch realignment in New York metro region » 08:2010/2810/28/20
Popular announced Popular…
Popular announced Popular Bank's strategic realignment of its New York Metro branch network. As part of the realignment, select branches of Popular Bank will be consolidated, resulting in 11 branch closures. Popular Bank conducted a detailed review and analysis of its current network, including its usage, proximity to additional Popular Bank branches, the needs of customers and accessibility to supplemental services. The branch closures, which are expected to be completed simultaneously by January 29, 2021, are projected to reduce annual operating expenses by approximately $13 million. This realignment aims to better leverage resources to support small businesses, meet changing customer needs and reinvest in communities. To this end, it focuses resources on remaining branch locations to pursue local opportunities and deliver banking services and solutions to meet the unique needs of the communities. This initiative will also enable ongoing investments in digital capabilities as Popular Bank continues to meet rising customer adoption of digital service channels. Popular Bank will also bolster and enhance products and services to meet the needs of its consumers and small businesses, including the addition of business bankers to remaining branches to meet commercial and small business banking demand. Total expenses associated with the branch closures are anticipated to be approximately $24.5 million, of which $23.1 million are expected to be recognized in the fourth quarter of 2020. The expenses include a pre-tax charge of approximately $2.4 million in costs associated with severance and related benefit costs for the 83 impacted employees. The total cost of the branch consolidations is expected to be earned back through expense reductions in approximately two years.
Popular reports Q3 EPS $2.00, consensus $1.20 » 08:0310/2810/28/20
Net interest income for…
Net interest income for the quarter ended September 30, 2020 was $461.0 million compared to $450.9 million in the previous quarter, an increase of $10.1 million. Net interest income, on a taxable equivalent basis, for the third quarter of 2020 was $506.9 million, an increase of $13.9 million when compared to $493.0 million in the second quarter of 2020. The net interest margin decreased by 19 basis points to 3.06% in the third quarter of 2020, compared to 3.25% in the previous quarter. The reduction in the margin reflects an increase in the investments in overnight Fed Funds and in U.S. Treasury and U.S. Agency debt securities plus an average balance of $1.4 billion in SBA PPP loans, compared with an average balance of $913 million for the previous quarter. These assets, although accretive to net interest income, are lower yielding assets and therefore compressed the net interest margin. The redeployment into relatively short tenured assets responds in part to the uncertainty of the tenure of the deposit growth. On a taxable equivalent basis, net interest margin was 3.37 % compared to 3.56 % in the second quarter of 2020, a decrease of 19 basis points.
|Over a month ago|
Top five analyst initiations » 10:1109/2209/22/20
TDOC, PYPL, SQ, IMMP, BPOP, FISV
Catch up on today's…
Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Teladoc (TDOC) initiated with a Buy at DA Davidson. 2. PayPal (PYPL) and Square (SQ) both initiated with a Buy at Loop Capital. 3. Immutep (IMMP) initiated with a Buy at Alliance Global Partners. 4. Popular (BPOP) initiated with a Neutral at UBS. 5. Fiserv (FISV) initiated with a Hold at Loop Capital. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.
Popular initiated with a Neutral at UBS » 07:0609/2209/22/20
UBS analyst Brock…
UBS analyst Brock Vandervliet initiated coverage of Popular with a Neutral rating and $40 price target. The analyst notes the uncertainty related to the bank's balance sheet repositioning, its debt restructuring, and low ROTCE. Vandervliet adds that the risk-reward on the stock is "mixed" in spite of its "steep discount" to the sector given the downside risks to net interest margins and net interest income from lower spreads on public deposits.
|Over a quarter ago|
Popular reports Q2 EPS $1.49, consensus 92c » 08:1107/2307/23/20
Reports Q2 book value per…
Reports Q2 book value per share $68.40. Reports Q2 CET1 capital ratio 15.7%. Reports Q2 net charge-offs 0.92%. Ignacio Alvarez, President and CEO, said: "We reported net income of $127.6 million for the quarter, notwithstanding the challenging economic environment resulting from the coronavirus pandemic and the historically low interest rate scenario. After 126 years in the banking business, we know success requires that we act quickly and decisively, putting people first. I want to express my gratitude to our employees for their commitment to serve our customers and their creativity and ability to adapt to a rapidly changing situation. We continue to support the communities we serve during these difficult times by providing payment deferrals to more than 120,000 customers and have also provided assistance to health care professionals and non-profit organizations as they battle the pandemic. I would also like to thank our customers for their continued trust and for adapting to this new reality. They have accelerated their adoption of digital channels, helping us reach an important milestone - more than one million active users in our digital banking platform. We are aware that there remains much uncertainty as to the future of the economy. Economic performance will continue to be tied to developments on the health front, which are very difficult to predict. If the health situation deteriorates, leading to a new round of restrictions on businesses, this will obviously hamper the economic recovery. The strength of our balance sheet, levels of capital and liquidity place us in a strong position to continue to serve our clients and weather the challenges that may lie ahead."
Popular price target lowered to $48 from $58 at RBC Capital » 06:4707/0707/07/20
RBC Capital analyst…
RBC Capital analyst Gerard Cassidy lowered the firm's price target on Popular to $48 from $58 citing his forecasts for higher loan loss provision this year and a lower net interest income in FY20-21. The analyst keeps an Outperform rating on the shares however, noting the company's "aggressive" capital returns, credit recovery, dominant market share allowing for better pricing, and de-risking of its balance sheet after it lowered the risk profile of its loan portfolio over the past 5 years.
Banco Populars digital platform reaches 1M users during the pandemic » 11:0106/2306/23/20
Banco Popular reported…
Banco Popular reported that its digital platform Mi Banco has reached one million monthly active users. "Reaching one million active users of Mi Banco is a great honor, as it reflects the trust that customers have in our digital solutions," said Camille Burckhart, Chief Officer of Innovation, Technology & Operations at Popular, Inc. More than 70% of all Banco Popular customers have enrolled in Mi Banco, and 77% uses the platform on a monthly basis, the company said.
Popular processes $1.2B in SBA loans » 16:5205/0505/05/20
Popular announced today…
Popular announced today that, as of May 1, it had processed $1.2B in loans in the two rounds of the Small Business Administration's Paycheck Protection Program. These loans benefit 16,397 small and medium-sized businesses that employ more than 235,000 people. Of the total, $1.06 billion were granted through Banco Popular de Puerto Rico and $185 million through Popular Bank, Popular's banking subsidiary in the United States. The institution indicated that, since the start of the second round of the program on April 27, Banco Popular de Puerto Rico had processed 14,082 applications for $660 million in funds, of which $647 million were originated in Puerto Rico and $13 million in the Virgin Islands. Popular reported that, in Puerto Rico, it has so far processed 15,277 applications for a total of $1.04 billion in funds. These businesses employ more than 227,000 people. Of these, 61% percent have been for less than $25,000 and 31% for amounts between $25,000 and $150,000.
Popular reports Q1 EPS 37c, consensus $1.47 » 08:2404/3004/30/20
Reports Q1 CET1 capital…
Reports Q1 CET1 capital ratio 15.79%. Reports Q1 tangible book value per share $56.17. Reports Q1 net charge-offs .91%. Ignacio Alvarez, president and CEO, said: "The COVID-19 global pandemic has exposed the fragility of our economic and social systems and the need for greater collaboration between all sectors. I am hopeful that it will also reveal what we can accomplish when we come together in pursuit of a common goal. At Popular, the well-being of our customers, employees and communities is our priority. We have acted decisively to help our employees stay safe while we continue to offer essential banking services to our customers and communities. We have submitted more than $1.2 billion in loans, representing more than 15,000 small and medium size businesses, under the SBA's Payroll Protection Program. To date, we have received confirmation of SBA approval of $819 million of those submissions. We have also pledged more than $1 million dollars in support of COVID-19 emergency relief to non-profit organizations and health providers. I am deeply grateful to our colleagues for the efforts, commitment, and bravery exhibited under very difficult circumstances."
Popular price target lowered to $54 from $60 at BTIG » 09:1503/2703/27/20
BTIG analyst Mark Palmer…
BTIG analyst Mark Palmer lowered the firm's price target on Popular to $54 from $60 but keeps a Buy rating on the shares. The analyst cites the company's CFO indicating that only about 51 cases of COVID-19 have been reported on the island of Puerto Rico and adding that the negative impact from the aftermath of Hurricane Maria in 2018 was also much less than initially feared.