Mon, Apr. 27, 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)
Mon, Apr. 27, 8:50 AM
Sun, Apr. 26, 5:30 PM
Mon, Mar. 23, 10:15 AM
- The Moody's report will surely add to the factors blocking the closing of a $2.9B bond deal which could provide a financial lifeline to the island. Also among those factors, reports Reuters, are three prominent lawmakers who plan to try and amend Puerto Rico's constitution to allow for debt restructuring.
- An amendment would need two-thirds majority in the legislature, and then a majority from the electorate.
- In other news, Goldman Sachs upgrades Popular (BPOP -0.1%) to Neutral from Sell.
Mon, Mar. 2, 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)
Fri, Feb. 27, 3:17 PM
Thu, Jan. 22, 8:48 AM
Wed, Jan. 21, 5:30 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
Oct. 22, 2014, 8:40 AM
Oct. 21, 2014, 5:30 PM
Jul. 24, 2014, 8:56 AM
Jul. 23, 2014, 5:30 PM
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Jul. 3, 2014, 8:01 AM
- "We bring to a close a difficult chapter in our history and we emerge as a stronger and more focused institution," says BPOP CEO Richard Carrion after repurchasing $935M of trust capital securities issued to the Treasury in 2008 in exchange for TARP bailout funds.
- The bank also offers to repurchase the warrant issued to Treasury, representing the right to purchase 2.093M shares of Popular at $67 each.
- Source: Press Release
Jun. 27, 2014, 2:42 PM
- About $400M of the 5-year senior notes with 7% coupon will go towards repaying the government $935M. The other $50M will be for additional liquidity for the holding company.
- Popular's (BPOP +0.4%) nice run continues, with the stock ahead nearly 17% YTD.
- Press release
- Previously: Popular green-lighted to repay TARP funds
Jun. 19, 2014, 7:37 AM
- The catalyst many Popular (BPOP) bulls have been waiting for, the bank announces regulatory approval to repay $935M in TARP bailout money it received. Popular expects to fund the repayment with cash on hand and about a $400M debt issue.
- The bank also intends to repurchase all outstanding warrants (2.09M) issued to Treasury giving the government the right to buy Popular common stock at $67 per share.
- The stock gained 0.2% in after-hours trade following the announcement.
- Press release
BPOP vs. ETF Alternatives
Popular Inc is a publicly owned bank holding company, which offers retail and commercial banking services through its banking subsidiary, Banco Popular de Puerto Rico. The Bank also offers insurance and reinsurance services.
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