Popular, Inc. (NASDAQ:BPOP) Q2 2023 Earnings Conference Call July 26, 2023 11:00 AM ET

Company Participants

Paul Cardillo - Senior Vice President and Investor Relations Officer

Ignacio Alvarez - President and Chief Executive Officer

Carlos Vazquez - Executive Vice President and Chief Financial Officer

Lidio Soriano - Executive Vice President and Chief Risk Officer

Jorge Garcia - Senior Vice President and Corporate Comptroller

Conference Call Participants

Timur Braziler - Wells Fargo Securities

Broderick Preston - UBS

Alexander Twerdahl - Piper Sandler & Co.

Kelly Motta - Keefe, Bruyette & Woods, Inc.

Gerard Cassidy - RBC Capital Markets LLC

Operator

Good morning, everyone, and welcome to today's conference call titled Popular, Inc. Q2 2023 Earnings call. My name is Ellen, and I'll be coordinating the call for today. [Operator Instructions]

I will now hand over to Paul Cardillo, Investor Relations Officer to begin. Paul, please go ahead whenever you are ready.

Paul Cardillo

Good morning, and thank you for joining us. With us on the call today is our CEO, Ignacio Alvarez; our CFO, Carlos Vazquez; and our CRO, Lidio Soriano. They will review our results for the second quarter and then answer your questions. Other members of our management team will also be available during the Q&A session.

Before we begin, I would like to remind you that on today's call, we may make forward-looking statements that are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements are set forth within today's earnings press release and are detailed in our SEC filings. You may find today's press release and our SEC filings on our webpage at popular.com.

I will now turn the call over to our CEO, Ignacio Alvarez.

Ignacio Alvarez

Good morning, and thank you for joining the call. The second quarter was another strong one in which we achieved net income of $151 million, $8 million lower than the first quarter results of $159 million. Net interest income and non-interest income remained strong. The decrease in net income was driven by higher operating expenses, offset in part by a lower provision for credit losses. We grew loan balances by $693 million during the quarter.

Banco Popular generated loan growth across all segments, while Popular Bank achieved growth in commercial and construction loans, offset in part by runoff in the mortgage and consumer portfolios. Year-to-date, loan balances have grown by more than approximately $953 million.