Popular, Inc. (NASDAQ:BPOP) Q1 2023 Earnings Conference Call April 26, 2023 11:00 AM ET

Participants

Paul Cardillo - Senior Vice President and Investor Relations Officer

Javier Ferrer - COO

Carlos Vazquez - CFO

Lidio Soriano - CRO

Analysts

Brody Preston - UBS

Timur Braziler - Wells Fargo

Alex Twerdahl - Piper Sandler

Kelly Motta - KBW

Thomas Leddy - RBC

Operator

Good morning, ladies and gentlemen. Thank you for attending today’s Popular, Inc Q1 2023 Earnings Call. My name is Tia, and I will be your moderator for today’s call. All lines will be muted during the presentation portion of the call with an opportunity for questions-and-answers at the end. [Operator Instructions]

I will now like to pass the conference over to your host, Paul Cardillo with Popular, Inc. Please proceed.

Paul Cardillo

Good morning and thank you for joining us. With us on the call today is our COO, Javier Ferrer; our CFO, Carlos Vazquez; and our CRO, Lidio Soriano. They will review our results for the first quarter and then answer your questions. Other members of our management team will also be available during the Q&A session. Our CEO, Ignacio Alvarez is unavailable today due to a medical matter. We expect him back at the office early next week.

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 COO, Javier Ferrer.

Javier Ferrer

Thank you, Paul. Good morning and thank you for joining the call. We began the year with a strong quarter, achieving net income of $159 million. Our quarterly net income was $30 million lower than the adjusted fourth quarter net income of $189 million.

First quarter results were impacted by lower net interest income, offset in part by lower expenses, higher net interest income and a slightly lower provision for credit losses. Loans increased during the quarter by $261 million Banco Popular generated loan growth across all segments, while Popular Bank saw commercial loan growth offset by runoff in the construction and consumer portfolios.