Popular Turns To Profit In Q1 - Quick Facts

(RTTNews) - Popular, Inc (BPOP), a provider of retail and commercial banking products and services, Wednesday reported a net profit for the first quarter mainly on account of increase in interest and non-interest incomes, and a significant reduction in provision for loan losses.

For the first quarter, the company reported earnings of $85.48 million or $0.83 per share, compared with a net loss of $121.24 million or $1.18 per share reported for the same quarter last year.

On average, 7 analysts polled by Thomson-Reuters estimated the company's earnings to be $0.66 for the quarter. Analysts' estimates typically exclude one-time items.

Provision for loan losses for non-covered loans stood at $47.36 million, a sharp decrease from $206.3 million a year earlier. The company also recorded a net gain on sale of loans, including valuation adjustments on loans held-for-sale, of $11.78 million, compared with a net loss of $62.72 million a year ago.

Net interest income was $372.97 million for the first quarter, compared with $346.31 million a year ago. Non-interest income grew to $106.56 million from $34.06 million a year earlier.

Net interest margin advanced to 4.70 percent from 4.40 percent in the first quarter of last year.

Separately, the company announced it has agreed to sell its regional operations in California, Illinois and Central Florida to three different buyers and centralize certain back office operations in Puerto Rico and New York.

The transaction will give rise to a net premium of $25 million and an estimated non-cash goodwill write-down of about $160 million. The company will take an estimated restructuring charge of about $53 million, and expects annual operating expenses to be prospectively reduced by $45 million after the reorganization is complete.