Stephen Simpson, CFA
Stephen Simpson, CFA
Mon, Apr. 25, 12:10 PM
- Popular (BPOP +0.1%) earned $0.81 last quarter, shy of consensus by a penny, and missing bullish analyst Mark Palmer's forecast by a full nickel.
- Still, says Palmer, credit metrics were solid, with the net charge-off ratio slipping 72 basis points to 0.76%, while NPLs fell $2M, and the NPL ratio stayed stable at 2.7%.
- In light of concern over a Puerto Rican debt default, Palmer notes of Popular's $565M in direct exposure to government debt, $490M of that amount is in municipal loans, most of which are senior in priority and backed by tax receipts.
- Palmer reiterates his Buy rating and $41 price target (37% upside).
Fri, Apr. 8, 10:03 AM
Sep. 2, 2015, 11:29 AM
- The Puerto Rico Electric Power Authority and a group of creditors earlier reached a deal to keep which will keep the debt service payments coming, though the haircut on principal looks to be 15%.
- OFG Bancorp (OFG +22.2%), First Bancorp (FBP +9.8%), Popular (BPOP +5.9%)
- MBIA (MBI +13.6%), Assured Guaranty (AGO +4.5%), Ambac (AMBC +3.1%)
Sep. 1, 2015, 12:34 PM
- Puerto Rico's OFG Bancorp (OFG -14.5%) fell as low as about $6.70 in last Monday's panicky action, but had bounced nearly 30% from that level after yesterday's 19% gain.
- It's back to the downside today, and the stock is lower by 15% to $7.34.
- Alone among the notable news items (other than Puerto Rico's continuing debt troubles) since last Monday was the purchase of 7K shares by board member Josen Rossi at prices less than $7 per share.
- Popular (BPOP -2.5%), First Bancorp (FBP -3.7%)
Jul. 24, 2015, 9:08 AM
- Q2 adjusted net income of $90.1M compares to $90.3M in Q1, but net income jumps to $597.5M as the company determines it is more likely than not it will realize at least part of the $1.2B DTA at its U.S. operations.
- Back to operations, non-performing loans fell $89M during quarter. NPL to loans ratio of 2.6% falls 60 basis points. Net charge-offs of 0.89% of average loans in portfolio is up 17 basis points.
- Allowance for loan losses of $512.7M vs. $516.2M in Q1. Ratio to total loans of 2.29% vs. 2.46%. Allowance for loan losses to NPLs ratio of 89.02% vs. 77.63%.
- Net interest margin of 4.54% down three basis points.
- CET1 ratio of 15.61%. Tangible book value per share of $41.75.
- Previously: Popular EPS of $5.79 (July 24)
- BPOP +5.8% premarket
Jul. 1, 2015, 10:10 AM
- It was earlier reported that Puerto Rico's power authority was planning on making its $416M debt payments due today, and the utility says the payments have indeed been made.
- Popular (BPOP +5.2%), First Bancorp (FBP +2.9%), OFG Bancorp (OFG +2.5%)
- Previously: PREPA reportedly reaches deal to cover debt payment (July 1)
Jun. 29, 2015, 10:15 AM
- Popular (BPOP -7.5%), First Bancorp (FBP -8.1%), and OFG Bancorp (OFG -5.9%) following a weekend interview in which Puerto Rico Governor Alejandro Garcia Padilla said the Commonwealth cannot pay its debts. He's expected this week to lay out a plan to defer payments while a deal is worked out with creditors.
- Guggenheim pulls its Buy ratings on Popular and First Bancorp.
- Previously: Bond insurers tumble as Puerto Rico heads to default (June 29)
- Previously: Longtime bull throws in the towel on MBIA, Assured Guaranty (June 29)
Apr. 27, 2015, 10:55 AM
- The level of EPS is of less importance than a couple of other factors, says the bullish team at BTIG. First, the bank's credit metrics continue to improve - even as the recession in Puerto Rico nears a decade. Net charge-offs fell 32 basis points to 0.72% of average loans, while the loan loss allowance fell 22 bps to 2.46%.
- While NPLs did increase, this was mostly due to loans acquired from Doral Bank after its failure. "We believe the increase in NPLs was a small price for Popular (BPOP -3.5%) to pay for the $2.2B in deposits and $1.7B in commercial and residential loans it acquired in the deal, as the loans will help the company to offset the runoff of its loan portfolio, which is one of its most significant challenges."
- Then there's capital, and BPOP has about $2B more than it needs based on its CET1 ratio of 15.8%. The bank in June expects to announce the Fed's response to its capital return plans - it could mark the first dividends/buybacks since the financial crisis.
- BTIG reiterates its Buy rating and $41 price target, which is 1.0x estimated TBV.
- Previously: Popular misses by $0.03, misses on revenue (April 27)
Mar. 2, 2015, 9:44 AM
- Popular (BPOP +1.7%) and First BanCorp (FBP +1.1%) are "major winners" from the closing of Doral Financial, says Sterne Agee's Brett Rabatin, and weekend deals to take over Doral assets could add $1 per share to BPOP's tangible book value.
- The shutdown of Doral, says Rabatin, should give investors confidence steps are being taken to improve the banking climate on the island. The space, he says, is highly value-oriented and underappreciated. BPOP, FBP, and OFG Bancorp (NYSE:OFG) are all buy-rated, with BPOP Rabatin's island favorite.
- BPOP's slide deck on the Doral acquisition
- Previously: Doral Financial taken over by FDIC (Feb. 27)
Feb. 27, 2015, 3:17 PM
Oct. 22, 2014, 10:23 AM
- Adj. Net Income from continuing operations of $81.7M
- Adj. Net Interest Income of $347.1M. Adj. NIM of 4.64% vs. 4.68% in Q2 due to 180bps decline in income from the covered loans portfolio
- Tangible book value per share of $36.24 vs. $35.84 in Q2
- Return on Average Assets 0.71%.
- Tier I risk based capital of 16.93% vs. 19.23% in Q2
- Conference call at 10:30 ET. Webcast here.
- BPOP +2.3%
- Previously: Popular Adj. Net Income of $81.7M
Jun. 3, 2014, 1:20 PM
- Popular (BPOP +3.8%) and First Bancorp (FBP +4.5%) are posting strong gains in the wake of fellow Puerto Rico lender Doral Financial's (DRL -17.7%) escalating liquidity issues.
- Both Popular and First Bancorp are no doubt eyeing assets they can maybe pick up on the cheap, and yesterday FBP purchased from Doral servicing rights on mortgages with about $242.1M of UPB.
- Previously: Doral completes sale of mortgages; evaluating strategic alternatives
Apr. 23, 2014, 8:53 AM
- As tipped last night, Popular (BPOP) inks deals to sell its operations in Chicago, Southern California, and Central Florida, leaving the lender to concentrate its U.S. mainland business in New York and South Florida.
- Together the deals include 41 branches, about $1.8B in related loan portfolios, and about $2.1B in deposits. The Chicago buyer is First Midwest Bank (FMBI), the California buyer is Banc of California (BANC), and Florida is Harbor Community Bank.
- The deal will include the closing of Popular's mainland headquarters in Rosemont, IL along with an Orlando office. Off the roughly 550 positions at those locations, 100 will be move to other mainland offices and 200 to Puerto Rico.
- Popular says the sales will results in a net premium of about $25M along with a goodwill writedown of $160M and restructuring charges of $53M.
- Shares +1.9% premarket
- Previously: Popular nears sale of some mainland U.S. branches
Mar. 18, 2014, 9:43 AM
- Popular (BPOP +2.2%) opens with a pop after hot-handed Mark Palmer at BTIG initiates coverage in the Puerto Rican lender with a Buy and $42 price target. "We believe that BPOP’s discount valuation and upcoming catalysts make it a compelling risk/reward proposition."
Sep. 19, 2013, 12:45 PM
Jul. 5, 2013, 12:51 PM
Regional banks (KRE +2%) are the day's strongest performers - sailing through today's big rise in interest rates the way they cruised through June's increase. Interest rate margins are on the rise, economic growth should help sluggish loan volume, and the idea new bank capital rules will go easier on them than the TBTFs all factor in. Huntington (HBAN +2.9%), Regions (RF +1.8%), BB&T (BBT +1.9%), PNC (PNC +2.2%), Hudson City (HCBK +1.5%), Fifth Third (FITB +1.6%), SunTrust (STI +3.5%), KeyCorp (KEY +3%), Zions (ZION +3.5%), Comerica (CMA +2.7%), Popular (BPOP +1.2%).| Jul. 5, 2013, 12:51 PM