Banco Popular de Puerto Rico explained

Popular, Inc.
Type:Public
Industry:Finance and Insurance
Key People:Ignacio Álvarez, Chief Executive Officer

Javier Ferrer, President and Chief Operating Officer

Jose Coleman, Executive Vice President, Chief Legal Council and Corporate Secretary

Richard Carrión, Chairman of the Board of Directors

Net Income:US$541.3 million (2023)[1]
Num Employees:9,132 (2023)
Location:Hato Rey, San Juan
Area Served:United States (Puerto Rico, US Virgin Islands, California, Florida, Illinois, New Jersey, New York)

Popular, Inc., doing business as Banco Popular in Puerto Rico and the Virgin Islands and as Popular Bank in the mainland United States, is a financial services conglomerate that has operated in Puerto Rico for over 125 years and in the mainland United States for over 52 years. In recent years, it has expanded into other areas of the Caribbean and Central America. The BPPR in the logo stands for Banco Popular de Puerto Rico, where the bank has its major historical footprint.

Popular, Inc. is the parent company of Banco Popular de Puerto Rico, Popular Bank, E-Loan, and several other companies.

The headquarters of Banco Popular Puerto Rico is in Hato Rey, San Juan.

History

The bank was founded in Puerto Rico in 1893 when the island was still under Spanish administration. It was led in its early stages by Rafael Carrión Sr. and Don Manuel Muñoz Barrios, the latter of which was the company's first president and administrator.

During the 1970s, the company's commercials were popular on Puerto Rican television: they presented a balding, middle aged man in a white tee shirt, announcing the company in a comic way. The 1970s also saw a giant step in the development of Banco Popular as Puerto Rico's biggest bank, when it bought two-thirds of the Banco de Crédito y Ahorro Ponceño. Through this purchase, Popular entered the credit-card industry.

During the following decades, Banco Popular put great of emphasis on the company's public image. It was during the 1980s, after Rafael Carrion, Sr.'s death, that Richard L. Carrión assumed the role as President of the corporation.

In 1989, the bank introduced a children's savings service with a bear, "Populoso", as its mascot. The Club del Ahorro (or Savings Club) was (and still is) intended to encourage children to open savings accounts and keep track of their money.

1990s

The following decade started with a big development for the bank, when in 1990 it merged with Banco de Ponce, one of the largest banks in Puerto Rico.[2] At this time, Banco Popular's holding company changed its name to BanPonce Corporation. Popular acquired Banco Roig, one of the main banks in the eastern side of the island, in 1997, entering a geographical market in which it had yet to succeed.[3]

During the late 1990s, the company began to diversify its services thanks to revisions of state laws that allowed banks certain 'privileges' related to different financial services other than banking. These years saw the birth of Popular Auto, Popular Finance, Popular Mortgage, Popular Insurance, Popular Leasing, among others.

During this time, the company created one of its flagship subsidiaries, Popular Securities. It quickly became the investment banking, retail brokerage, and institutional sales arm of Banco Popular. On the retail side, Popular Securities has an extensive network of brokers in Puerto Rico, rivaled only by Swiss giant UBS and more recently by Banco Santander. Popular Securities has additional offices in New York City, San Antonio, Houston, and Chicago.

2000s

Due to its growth in Puerto Rico, and the aggressive expansion in the United States, the company changed its name once again in 2000 to Popular, Inc., a name that goes back to the traditional roots of the corporation and which also reflects the common title in almost all of the subsidiaries of the company.

During this period, the company reorganized itself into three main subsidiary companies: Banco Popular de Puerto Rico, with David Chafey Jr. as president; Popular Bank, with Roberto Herencia as president; and Evertec, with Felix Villamil as president. Richard Carrión remained as president and CEO of the parent company, Popular, Inc.

In the January 24, 2005 issue of Fortune, Popular, Inc. was chosen as one of the 100 Best Companies to Work For.

On April 11, 2005, Popular Bank announced a five-year agreement with the New York Mets under which Popular would operate seven ATMs and display various advertisements at Shea Stadium until it closed in September 2008, and the team moved to the new Citi Field.

Present

Popular's world headquarters are located in the San Juan's Hato Rey business district, on a stretch of a thoroughfare commonly known as Milla de Oro ("The Golden Mile") due to the number of banks headquartered in the area. Travelers who fly into the Luis Muñoz Marín International Airport can appreciate Popular's landmark building below.

Between 2010 and 2012, the bank re-branded its mainland branches as Popular Community Bank in an effort to attract more non-Hispanic customers. The first branches to bear the new name were in the Chicago market followed by those in Southern California and Florida, then New York City and New Jersey.[4]

As of January, 2012, Popular, Inc. still owed $935 million to the US government Troubled Asset Relief Program.[5]

In March 2013, Popular announced it would sell a $568 million portfolio of non-performing loans to a joint venture between Caribbean Property Group and funds affiliated with Perella Weinberg Partners.[6]

In 2014, Popular Community Bank sold many of its mainland United States branches in Central Florida, Illinois and Southern California to cut costs and shore up its reserves against losses caused by foreclosures and the recession in Puerto Rico.[7] After the sale, Popular Community Bank retained 49 branches in South Florida, New Jersey, and New York.[7] [8] On September 12, 2014, Harbor Community Bank purchased Popular's branches in Orlando and central Florida.[8] On November 7, 2014, Banc of California in Irvine purchased 20 branches of Popular Community Bank in southern California.[7]

In 2018, Popular Community Bank changed its name to Popular Bank (Legal name) and Popular, commercial name.[9]

Stats

Timeline

Subsidiaries and Services

Puerto Rico

United States (mainland)

Virgin Islands

Former Subsidiaries

Musical tradition

For its 100th Anniversary celebration, Popular gathered a group of famous Latin-American musicians in an effort to create a musical televised show. After the large success of this venture, the company began to produce annual live Christmas concerts and television specials with various Puerto Rican and international singers and artists. The 1996 version included the future star Shakira. The concerts and specials are aired in local television stations and then released on CDs and DVD, raising money for the company's philanthropic foundation (Fundación Banco Popular) which benefits a variety of non-profit organizations in the island.

The titles of the musicals are:

Online Discography

Competitors (in Puerto Rico)

External links

Popular, Inc.

Subsidiaries

NASDAQ:

Notes and References

  1. Web site: Popular, Inc. . . 2022-05-06.
  2. News: Banponce Gets Merger Offer. The New York Times. July 11, 1989. February 4, 2018.
  3. The Federal Reserve Board today announced its approval of the application of Banco Popular de Puerto Rico to merge with Roig Commercial Bank. May 29, 1997. Federal Reserve Board of Governors.
  4. May 31, 2012. Banco Popular is Now Popular Community Bank in New York Metro. Popular Inc..
  5. News: Popular submits application to repay $935M TARP funds. Michelle. Kantrow. October 24, 2013. News Is My Business. February 4, 2018.
  6. News: Puerto Rico's Popular to sell $568 mln in bad loans. Reuters. March 1, 2013.
  7. News: California gets 20 Popular Community branches, Latino presence. Los Angeles Times. April 23, 2014. February 1, 2015.
  8. Web site: Banco Popular sells Orlando branches to Harbor Community Bank. Orlando Sentinel. Richard. Burnett. April 23, 2014.
  9. News: Lyons . David . Popular Community Bank rebrands as Popular, looks toward Broward expansion . July 12, 2018 . Sun-Sentinel . April 9, 2018.
  10. News: Popular to acquire Quaker City Bank. March 19, 2004. Los Angeles Business Journal.
  11. Prosperity Bank® to Acquire Branches of Banco Popular North America. Prosperity Bancshares, Inc.® and Banco Popular North America. October 22, 2007. February 4, 2018. dead. https://web.archive.org/web/20071128161646/http://www.prosperitybanktx.com/forms/press/Banco%20Popular%20Acquisistion.pdf. November 28, 2007.
  12. News: Citigroup to sell Puerto Rico retail bank to Popular. August 9, 2007. Reuters.
  13. News: Stempel. Jonathan. AIG unit to buy Popular's Equity One. Reuters. January 23, 2008.
  14. Popular, Inc. Announces Completion of Sale of Majority Interest in EVERTEC to Funds Managed by Apollo Management, L.P.. Popular, Inc.. September 30, 2010. February 4, 2018.
  15. News: Failed Doral Bank acquired by Banco Popular de Puerto Rico. Nehamas. Nicholas. March 2, 2015. Miami Herald. February 4, 2018.

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