Enhanced Investments - Financial Portal

Published: 2022-01-27 00:00:00 ET

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Exhibit 99.1

LOGO

Popular, Inc. Announces Fourth Quarter 2021 Financial Results

•

Net income of $206.1 million in Q4 2021, compared to net income of $248.1 million in Q3 2021.

•

Net income of $934.9 million for the year 2021, compared to net income of $506.6 million for the year 2020.

•

Net interest margin of 2.78% in Q4 2021, compared to 2.77% in Q3 2021; net interest margin on a taxable equivalent basis of 3.02% in Q4 2021, compared to 3.04% in Q3 2021.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $85.0 million from Q3 2021; NPLs to loans ratio at 1.9% vs. 2.2% in Q3 2021;

•

Net charge-offs (“NCOs”) was a net recovery of $7.9 million, a favorable variance by $16.7 million from Q3 2021; NCOs at (0.11%) of average loans held-in-portfolio vs. 0.12% in Q3 2021; NCOs of $20.7 million for the year 2021, a favorable variance by $165.7 million from the year 2020; NCOs at 0.07% of average loans held-in-portfolio for the year 2021 vs. 0.66% for the year 2020;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.38% vs. 2.49% in Q3 2021; and

•

ACL to NPLs at 126.9% vs. 113.6% in Q3 2021.

•

Common Equity Tier 1 ratio of 17.45%, Common Equity per Share of $74.48 and Tangible Book Value per Share of $65.39 at December 31, 2021.

SAN JUAN, Puerto Rico — (BUSINESS WIRE) — Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $206.1 million for the quarter ended December 31, 2021, compared to net income of $248.1 million for the quarter ended September 30, 2021.

Ignacio Alvarez, President and Chief Executive Officer, said: “Our fourth quarter results reflect a strong finish to a record year. During the quarter we continued adding new clients, increasing our deposit base and growing most of our loan portfolios. We also launched a new digital platform where small business customers in Puerto Rico can apply for loans in a more convenient way. And we were especially pleased by the performance of our U.S. mainland operations that achieved commercial loan growth of $726 million, including the $105 million from the K-2 acquisition. Our financial performance in 2021 was driven by solid credit quality trends that led to a benefit in the provision of $194 million. Our net charge-off ratio of 0.07% was the lowest since at least 2004.

Our results reflect the strength of our diverse sources of revenues. Solid financial performance and a strong capital position led to a dividend increase of 22% on our common stock effective Q2 2022 and a common stock repurchase program of $500 million for 2022.

Further demonstrating our commitment to the communities we serve, this fall we gained the certification to a host of our low-cost deposit products that meet the Bank On certification requirements. We are also proud to be included in this year’s Bloomberg Gender-Equality Index (GEI) as we continue to make strides in gender parity at Popular and across the financial industry.

While cognizant of the challenges related to the pandemic, we enter this year ready to build on the momentum of 2021, with an improving economic and fiscal environment in Puerto Rico and the rising interest rate environment.

I want to thank our colleagues whose dedication, resilience and talent helped us achieve our record results. They continue to be our most valuable asset.”

Significant Events

Fourth Quarter Financial Highlights

For the fourth quarter of 2021, the Corporation recorded net income of $206.1 million, compared to net income of $248.1 million for the previous quarter. The fourth quarter’s results include a release in the allowance for credit losses of $33.1 million driven by the releases in the Puerto Rico commercial and mortgage portfolios, resulting from improving credit quality, partially offset by reserve increases related to an increase in weight to downside economic scenarios and higher loan volumes. Net interest income was $501.3 million, an increase of $11.9 million compared to the previous quarter, mainly due to higher income from loans issued under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), loan growth, coupled with activity from lease financing business acquired in October 2021 by Popular Equipment Finance LLC (“PEF”) and higher income from the repayment of purchased credit deteriorated (“PCD”) loans. Net interest margin increased 1 basis point to 2.78%. Total assets grew by $0.9 billion from the previous quarter, reflecting loan growth in Popular Bank (“PB”) and an increase in deposits across all sectors in Puerto Rico.

Acquisition of K2 Capital Group LLC

On October 15, 2021, PEF, a newly-formed wholly-owned subsidiary of PB, completed the acquisition of certain assets and the assumption of certain liabilities of Minnesota-based K2 Capital Group LLC’s (“K2”) equipment leasing and financing business (the “Acquired Business”). PEF made a payment to K2 of approximately $157 million in cash, representing a premium of approximately $42 million over the book value of K2’s net assets, which has been preliminarily recorded as goodwill. An additional approximate $29 million in earnout payments could be payable to K2 over the next three years, contingent upon the achievement of certain agreed-upon financial targets during such period.

Specializing in the healthcare industry, the Acquired Business provides a variety of lease products, including operating and finance leases, and also offers private label vendor finance programs to equipment manufacturers and healthcare organizations. The acquisition provides PB with a national equipment leasing platform that complements its existing healthcare lending business.

As part of the transaction, PEF acquired approximately $115 million in net assets that consisted mainly of commercial finance leases.

The transaction was accounted for as a business combination. The Corporation is in the process of finalizing the assessment of the fair value of the net assets acquired as part of the transaction and expects to complete its assessment before the filing of its annual report on Form 10-K for the year ended December 31, 2021. Any fair value adjustments would impact the value of the recorded assets and liabilities with a corresponding offset to goodwill.

Capital Actions

Redemption of Trust Preferred Securities

On November 1, 2021, the Corporation redeemed all outstanding 6.70% Cumulative Monthly Income Trust Preferred Securities (the “Trust Preferred Securities”) issued by the Popular Capital Trust I (the “Trust”) (liquidation amount of $25 per security and amounting to $186,663,800 (or $181,063,250 after excluding the Corporation’s participation in the Trust of $5,600,550) in the aggregate). The redemption price for the Trust Preferred Securities was equal to $25 per security plus accrued and unpaid distributions up to and excluding the redemption date in the amount of $0.139583 per security, for a total payment per security in the amount of $25.139583. Upon redemption, Popular delisted the Trust Preferred Securities (NASDAQ: BPOPN) from the Nasdaq Global Select Market.

Announcement of 2022 Capital Actions

On January 12, 2022 the Corporation announced the following capital actions:

•

an increase in the Corporation’s quarterly common stock dividend from $0.45 per share to $0.55 per share, commencing with the dividend payable in the second quarter of 2022, subject to the approval by the Corporation’s Board of Directors; and

•

common stock repurchases of up to $500 million during 2022.

The Corporation’s planned common stock repurchases may be executed in the open market or in privately negotiated transactions. The timing and exact amount of such repurchases will be subject to various factors, including market conditions and the Corporation’s capital position and financial performance.

Earnings Highlights


(Unaudited)	Quarters ended								Years ended
(Dollars in thousands, except per share information)	31-Dec-21			30-Sep-21			31-Dec-20		31-Dec-21			31-Dec-20
Net interest income	$	501,283		$	489,393		$	471,616	$	1,957,590		$	1,856,613
Provision for credit losses (benefit)		(33,050	)		(61,173	)		21,218		(193,464	)		292,536

Net interest income after provision for credit losses (benefit)		534,333			550,566			450,398		2,151,054			1,564,077
Other non-interest income		164,677			169,258			144,847		642,128			512,312
Operating expenses		417,394			388,168			375,924		1,549,275			1,457,829

Income before income tax		281,616			331,656			219,321		1,243,907			618,560
Income tax expense		75,552			83,542			43,045		309,018			111,938

Net income	$	206,064		$	248,114		$	176,276	$	934,889		$	506,622

Net income applicable to common stock	$	205,711		$	247,761		$	175,923	$	933,477		$	504,864

Net income per common share-basic	$	2.59		$	3.09		$	2.10	$	11.49		$	5.88

Net income per common share-diluted	$	2.58		$	3.09		$	2.10	$	11.46		$	5.87

Net interest income on a taxable equivalent basis – Non-GAAP financial measure

Net interest income, on a taxable equivalent basis, is presented with its different components in Table D and E for the quarter and year ended December 31, 2021, and comparable periods. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.

Net interest income for the quarter ended December 31, 2021 was $501.3 million compared to $489.4 million in the previous quarter, an increase of $11.9 million. Net interest income, on a taxable equivalent basis, for the fourth quarter of 2021 was $543.9 million, an increase of $7.6 million when compared to $536.3 million in the third quarter of 2021. The increase in net interest income on a taxable equivalent is mainly related to the repayment of PCD loans, higher PPP fees during the quarter and the activity recognized in the quarter from PEF’s recently acquired lease financing business.

Net interest margin for the fourth quarter was 2.78% compared to 2.77% in the previous quarter. The increase in net interest margin is due to the repayment of PCD loans and higher PPP loan fees related to loans, partially offset by a lower yield on money markets and investment securities due to lower volume of mortgage-backed securities. On a taxable equivalent basis, net interest margin for the fourth quarter of 2021 was 3.02% compared to 3.04% in the third quarter of 2021, a decrease of 2 basis points. The main variances in net interest income on a taxable equivalent basis were:

•

Higher interest income from loans by $8.2 million mainly due to the following:

•

Higher income from commercial loans including $3.7 million from the repayment of PCD loans, interest income and fees from PPP loans by $1.2 million and $2.4 million from loans acquired by PEF from K2. Interest income for the commercial portfolio also reflected loan growth at PB which, excluding PPP loans and including the finance lease portfolio acquired by PEF, increased by $726 million or 13% and $284 million in average balances from the previous quarter;

•

Auto and lease financing continued its positive trend increasing by $102 million in average balances and reflecting an increase in interest income of $0.7 million

Partially offset by:

•

Lower interest income from mortgage loans due lower average volume resulting from continued amortization of the Banco Popular de Puerto Rico (“BPPR”) portfolio

•

Lower interest expense on borrowings resulting from the redemption during the quarter of the Trust Preferred Securities, totaling $186.7 million.

These positive variances were partially offset by:

•

Lower interest income from money market investments, trading and investment securities by $3.4 million due lower volume and yield of mortgage-backed securities, partially offset by a higher volume of lower yielding U.S. Treasury notes.

The Corporation recognized income of $23.2 million related to loans issued under the SBA PPP program, compared to $22.0 million in the previous quarter. These loans carried a yield of approximately 17.86% in this quarter, including the amortization of fees received under the program, compared to 10.10% last quarter. This portfolio of loans issued under the SBA PPP declined by $265.2 million in BPPR to a balance of $255.3 million and declined by $51.4 million in PB to a balance of $97.9 million. On December 31, 2021, the portfolio [at BPPR and PB] had a remaining [aggregate] balance of unamortized fees of $18.1 million.

Net interest income for the BPPR segment amounted to $425.9 million for the fourth quarter of 2021, compared to $419.2 million for the third quarter. Net interest margin for the fourth quarter of 2021 was 2.73%, a decrease of 2 basis points when compared to 2.75% for the previous quarter. As discussed above, net interest margin was positively impacted by the repayment of PCD loans, higher PPP fees and a higher volume of auto and lease financing loans, but the earning assets mix continues to impact the net interest margin. The cost of interest-bearing deposits was 0.16% compared to 0.17% in the previous quarter. Total cost of deposits for the quarter was 0.12%, compared to 0.13% reported for the third quarter of 2021.

Net interest income for PB was $83.2 million for the quarter ended December 31, 2021, compared to $80.0 million during the previous quarter. Net interest margin for the quarter was 3.47% or 11 basis point higher than the previous quarter. The increase in net interest income is driven by a higher volume of commercial loans, as discussed above, from both origination activity and the acquisition of the equipment finance leases business from K2. The lower cost on deposits also benefited the net interest margin at PB. The cost of interest-bearing deposits was 0.52% or 4 basis points lower than the 0.56% reported in the third quarter, decreasing for the ninth consecutive quarter. Total cost of deposits for the quarter, including demand deposits, was 0.40%, compared to 0.43% in the previous quarter.

Non-interest income

Non-interest income decreased by $4.6 million to $164.7 million for the quarter ended December 31, 2021, compared to $169.3 million for the quarter ended September 30, 2021. The variance in non-interest income was primarily driven by:

•

lower other operating income by $14.8 million mainly due to lower net earnings from the combined portfolio of investments under the equity method by $5.4 million and the impact of a gain of $7.0 million recognized in the third quarter of 2021 by BPPR as a result of the sale and partial leaseback of two corporate office buildings;

partially offset by:

•

higher other service fees by $3.3 million mainly due to higher insurance fees by $3.5 million principally resulting from contingent insurance commissions that are typically recognized during the fourth quarter and higher credit card fees by $2.2 million mainly in interchange income; and

•

higher income from mortgage banking activities by $8.7 million mostly due to a favorable variance in fair value adjustments on mortgage servicing rights (“MSRs”) of $7.5 million mainly due to a decrease in estimated prepayments and an increase in float earnings and higher realized gains on closed derivative positions by $1.7 million.

Refer to Table B for further details.

Operating expenses

Operating expenses for the fourth quarter of 2021 totaled $417.4 million, an increase of $29.2 million when compared to the third quarter of 2021. The variance in operating expenses was driven primarily by:

•

higher personnel cost by $2.8 million mainly due to salary increases and higher incentives and commissions;

•

higher equipment expense by $2.6 million due to higher purchases of equipment by $0.6 million, higher amortization of software maintenance and higher depreciation of equipment held for operating leases by $0.5 million, the latter, related to the activity at PEF;

•

higher business promotion expenses by $7.7 million mainly as a result of seasonal activities, higher donations by $1.8 million and higher credit cards rewards expense related to transactional volumes by $2.0 million;

•

higher other operating expenses by $14.6 million due to impairment losses on undeveloped properties by $5.0 million, based on the estimated fair value as these were reclassified to held for sale or held for investments based on management’s intended use, and higher sundry losses by $9.7 million, including $3.7 million related to the termination of a white label credit card contract and higher legal reserves; and

•

higher amortization of intangibles by $5.3 million due to a write-down on impairment of a trademark.

Partially offset by:

•

lower credit and debit card processing and other expenses by $4.2 million mainly due to volume incentives.

Full-time equivalent employees were 8,351 as of December 31, 2021, compared to 8,342 as of September 30, 2021.

For a breakdown of operating expenses by category refer to Table B.

Income taxes

For the quarter ended December 31, 2021, the Corporation recorded an income tax expense of $75.6 million, compared to $83.5 million for the previous quarter. The decrease in income tax expense was mainly attributable to lower income before tax during the fourth quarter of 2021. The effective tax rate (“ETR”) for the fourth quarter of 2021 was 27%, or 2% higher when compared with the previous quarter. The ETR for the year was 25%. The ETR of the Corporation is impacted by the composition and source of its taxable income.

Credit Quality

During the fourth quarter of 2021, the Corporation continued to exhibit strong credit quality trends and low credit costs with net recoveries in NCOs and decreasing NPLs. We continue to closely monitor COVID-19 pandemic related risks on borrower performance and changes in the pace of economic recovery as new variants continue to emerge. However, management believes that the improvement over the last few years in the risk profile of the Corporation’s loan portfolios positions Popular to operate successfully under the current environment.

The following presents credit quality results for the fourth quarter of 2021:

•

At December 31, 2021, total non-performing loans held-in-portfolio decreased by $85.0 million from September 30, 2021. BPPR’s NPLs decreased by $94.6 million, driven by lower commercial, mortgage and construction NPLs by $63.3 million, $20.7 million and $14.4 million, respectively. The commercial and construction NPLs decrease reflects payoffs related to troubled loan resolutions, and loans that were returned to accrual status during the quarter. The mortgage NPLs decrease was mainly due to the combined effects of collection efforts, increased foreclosure activity and the on-going low levels of early delinquency compared with pre-pandemic trends. PB’s NPLs increased by $9.6 million, mostly due to higher mortgage and commercial NPLs by $7.5 million and $2.7 million, respectively. The mortgage NPLs increase was mostly driven by loans that did not resume payment at the end of the deferral period. At December 31, 2021, the ratio of NPLs to total loans held-in-portfolio was 1.9%, compared to 2.2% in the third quarter of 2021.

•

Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $2.6 million quarter-over-quarter. In BPPR, total inflows decreased by $7.1 million, mostly driven by lower commercial and mortgage inflows of $5.2 million and $2.4 million, respectively. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB increased by $9.6 million during the quarter, mostly due to higher mortgage NPL inflows by $7.4 million, as explained above.

•

NCOs decreased by $16.7 million from the third quarter to net recoveries of $7.9 million. BPPR‘s NCOs decreased by $17.0 million, primarily driven by lower commercial NCOs by $15.7 million mostly related to recoveries from the resolution of the abovementioned commercial non-performing loans. During the fourth quarter of 2021, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was (0.11%), compared to 0.12% in the third quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios.

•

At December 31, 2021, the ACL decreased by $23.2 million, or 3.2%, from the third quarter of 2021 to $695.4 million. The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario. In response to recent events that impact both epidemiological and fiscal assumptions, the weight assigned to the pessimistic scenario was increased this quarter.

•

In BPPR, the ACL decreased by $22.6 million mainly driven by reductions in the commercial and mortgage loans ACL. Improved appraisals, releases of qualitative reserves as well as continued borrower performance contributed to the lower ACL for these segments. The ACL for the PB segment remained flat quarter-over-quarter, as the effect of releases in qualitative reserves was partially offset by higher loan volumes and the increase in weight applied to the pessimistic scenario. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.38% in the fourth quarter of 2021, compared to 2.49% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 126.9%, compared to 113.6% in the previous quarter.

•

The current baseline forecast continues to show a favorable economic scenario. GDP growth is expected for Puerto Rico and United States in 2022 and 2023. In addition, the unemployment rate is expected to continue to improve in both regions through 2022 and remain stable in 2023.

•

The provision for credit losses for the loan portfolios for the fourth quarter of 2021 reflected a benefit of $31.4 million, compared to a benefit of $58.6 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses and NCOs recoveries. The provision for the BPPR segment was a benefit of $30.6 million, compared to a benefit of $36.0 million in the previous quarter, while the provision for the PB segment was a benefit of $0.9 million, compared to a benefit of $22.7 million in the previous quarter.

•

The provision for unfunded commitments for the fourth quarter of 2021 reflected a benefit of $0.5 million, compared to a benefit of $1.5 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $1.1 million, compared to a benefit of $1.0 million in the third quarter of 2021. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations.

Non-Performing Assets


(Unaudited)
(In thousands)	31-Dec-21			30-Sep-21			31-Dec-20
Non-performing loans held-in-portfolio	$	547,877		$	632,835		$	737,774
Non-performing loans held-for-sale		—			—			2,738
Other real estate owned (“OREO”)		85,077			76,828			83,146

Total non-performing assets	$	632,954		$	709,663		$	823,658

Net (recoveries) charge-offs for the quarter	$	(7,881	)	$	8,823		$	42,078

Ratios:
Loans held-in-portfolio	$	29,243,889		$	28,855,372		$	29,385,196
Non-performing loans held-in-portfolio to loans held-in-portfolio		1.87	%		2.19	%		2.51	%
Allowance for credit losses to loans held-in-portfolio		2.38			2.49			3.05
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		126.92			113.55			121.48

Refer to Table K for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios


(Unaudited)	Quarters ended									Years ended
(In thousands)	31-Dec-21			30-Sep-21			31-Dec-20			31-Dec-21			31-Dec-20
Provision for credit losses (benefit) - loan portfolios:
BPPR	$	(30,562	)	$	(35,992	)	$	24,756		$	(129,018	)	$	205,865
Popular U.S.		(859	)		(22,653	)		(13,971	)		(54,327	)		76,471

Total provision for credit losses (benefit) - loan portfolios	$	(31,421	)	$	(58,645	)	$	10,785		$	(183,345	)	$	282,336

Credit Quality by Segment


(Unaudited)
(In thousands)	Quarters ended
BPPR	31-Dec-21			30-Sep-21			31-Dec-20
Provision for credit losses (benefit) - loan portfolios	$	(30,562	)	$	(35,992	)	$	24,756
Net charge-offs (recoveries)		(7,615	)		9,336			41,217
Total non-performing loans held-in-portfolio		514,289			608,871			700,377
Allowance / loans held-in-portfolio		2.85	%		2.92	%		3.43	%
Allowance / non-performing loans held-in-portfolio		115.53	%		101.30	%		105.62	%


	Quarters ended
Popular U.S.	31-Dec-21			30-Sep-21			31-Dec-20
Provision for credit losses (benefit) - loan portfolios	$	(859	)	$	(22,653	)	$	(13,971	)
Net charge-offs (recoveries)		(266	)		(513	)		861
Total non-performing loans held-in-portfolio		33,588			23,964			37,397
Allowance / loans held-in-portfolio		1.21	%		1.32	%		2.00	%
Allowance / non-performing loans held-in-portfolio		301.31	%		424.79	%		418.48	%

Financial Condition Highlights


(Unaudited)
(In thousands)	31-Dec-21		30-Sep-21		31-Dec-20
Cash and money market investments	$	17,965,152	$	18,065,211	$	12,131,945
Investment securities		25,267,418		24,697,876		21,864,184
Loans		29,243,889		28,855,372		29,385,196
Total assets		75,088,659		74,189,163		65,926,000
Deposits		67,005,088		66,013,561		56,866,340
Borrowings		1,155,166		1,263,413		1,346,284
Total liabilities		69,119,262		68,206,192		59,897,313
Stockholders’ equity		5,969,397		5,982,971		6,028,687

Total assets increased by $0.9 billion from the third quarter of 2021, driven by:

•

an increase of $0.6 billion in debt securities available-for-sale, mainly due to purchases of U.S. treasury securities, partially offset by paydowns of agency mortgage-backed securities; and

•

an increase in loans held-in-portfolio by $0.4 billion mainly due to an increase of $0.7 billion in commercial loans at PB principally in the health care industry from which $0.1 billion was related to the acquisition by PEF of K2’s lease financing business during the quarter, partially offset by a decrease of $0.2 billion in commercial loans at BPPR mainly due to the collection of PPP loans during the quarter.

Total liabilities increased by $0.9 billion from the third quarter of 2021, driven by:

•

an increase of $1.0 billion in deposits, mainly due to higher retail and commercial demand deposits by $0.7 billion and higher Puerto Rico public sector deposits by $0.3 billion at BPPR; partially offset by

•

a net reduction in borrowings of $0.1 billion, from which $0.2 billion was related to the redemption of the Trust Preferred Securities.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 17.45%, $74.48 and $65.39, respectively, at December 31, 2021, compared to 17.36%, $74.66 and $66.01 at September 30, 2021. Refer to Table A for capital ratios.

Refer to Table C for the Statements of Financial Condition.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings (including as a result of any participation in and execution of government programs related to the COVID-19 pandemic), new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic (including the appearance of new strains of the virus), actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements.

More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2020, in our Form 10-Q for the quarters ended March 31, 2021, June 30, 2021, September 30, 2021 and in our Form 10-K for the year ended December 31, 2021 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

About Popular, Inc.

Popular, Inc. (NASDAQ: BPOP) is the leading financial institution in Puerto Rico, by both assets and deposits, and ranks among the top 50 U.S. bank holding companies by assets. Founded in 1893, Banco Popular de Puerto Rico, Popular’s principal subsidiary, provides retail, mortgage and commercial banking services in Puerto Rico and the U.S. Virgin Islands. Popular also offers in Puerto Rico auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the mainland United States, Popular provides retail, mortgage and commercial banking services through its New York-chartered banking subsidiary, Popular Bank, which has branches located in New York, New Jersey and Florida.

Conference Call

Popular will hold a conference call to discuss its financial results today Thursday, January 27, 2022 at 10:00 a.m. Eastern Time. The call will be open to the public and broadcasted live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through the dial-in telephone number 1-844-200-6205 (Toll Free) or 1-646-904-5544 (Local). The dial-in access code is 476774.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Thursday, February 24, 2022. The replay dial-in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 565254.

An electronic version of this press release can be found at the Corporation’s website: www.popular.com.

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER

Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE

Table F - Mortgage Banking Activities and Other Service Fees

Table G - Loans and Deposits

Table H - Loan Delinquency - PUERTO RICO OPERATIONS

Table I - Loan Delinquency - POPULAR U.S. OPERATIONS

Table J - Loan Delinquency - CONSOLIDATED

Table K - Non-Performing Assets

Table L - Activity in Non-Performing Loans

Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios

Table N - Allowance for Credit Losses - Loan Portfolios - CONSOLIDATED

Table O - Allowance for Credit Losses - Loan Portfolios - PUERTO RICO OPERATIONS

Table P - Allowance for Credit Losses - Loan Portfolios - POPULAR U.S. OPERATIONS

Table Q - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)


	Quarters ended									Years ended
	31-Dec-21			30-Sep-21			31-Dec-20			31-Dec-21			31-Dec-20

Basic EPS	$	2.59		$	3.09		$	2.10		$	11.49		$	5.88
Diluted EPS	$	2.58		$	3.09		$	2.10		$	11.46		$	5.87
Average common shares outstanding		79,477,823			80,126,166			83,841,343			81,263,027			85,882,371
Average common shares outstanding - assuming dilution		79,652,836			80,274,942			83,940,412			81,420,154			85,975,259
Common shares outstanding at end of period		79,851,169			79,841,564			84,244,235			79,851,169			84,244,235
Market value per common share	$	82.04		$	77.67		$	56.32		$	82.04		$	56.32
Market capitalization - (In millions)	$	6,551		$	6,201		$	4,745		$	6,551		$	4,745
Return on average assets		1.09	%		1.34	%		1.08	%		1.31	%		0.85	%
Return on average common equity		13.74	%		17.10	%		12.68	%		16.22	%		9.36	%
Net interest margin (non-taxable equivalent basis)		2.78	%		2.77	%		3.04	%		2.88	%		3.29	%
Net interest margin (taxable equivalent basis) -non-GAAP		3.02	%		3.04	%		3.35	%		3.19	%		3.62	%
Common equity per share	$	74.48		$	74.66		$	71.30		$	74.48		$	71.30
Tangible common book value per common share (non-GAAP) [1]	$	65.39		$	66.01		$	63.07		$	65.39		$	63.07
Tangible common equity to tangible assets (non-GAAP) [1]		7.02	%		7.17	%		8.14	%		7.02	%		8.14	%
Return on average tangible common equity [1]		15.66	%		19.44	%		14.50	%		18.47	%		10.75	%
Tier 1 capital		17.52	%		17.43	%		16.33	%		17.52	%		16.33	%
Total capital		19.38	%		19.90	%		18.81	%		19.38	%		18.81	%
Tier 1 leverage		7.42	%		7.38	%		7.80	%		7.42	%		7.80	%
Common Equity Tier 1 capital		17.45	%		17.36	%		16.26	%		17.45	%		16.26	%

[1]	Refer to Table Q for reconciliation to GAAP financial measures.

POPULAR, INC.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)


	Quarters ended						Variance			Quarter ended			Variance			Years ended
							Q4 2021						Q4 2021
(In thousands, except per share information)	31-Dec-21			30-Sep-21			vs. Q3 2021			31-Dec-20			vs. Q4 2020			31-Dec-21			31-Dec-20
Interest income:
Loans	$	444,101		$	435,296		$	8,805		$	430,988		$	13,113		$	1,747,827		$	1,742,390
Money market investments		6,847			6,914			(67	)		2,933			3,914			21,147			19,721
Investment securities		88,315			87,952			363			85,502			2,813			353,663			329,440

Total interest income		539,263			530,162			9,101			519,423			19,840			2,122,637			2,091,551

Interest expense:
Deposits		26,331			27,029			(698	)		33,420			(7,089	)		111,621			175,855
Short-term borrowings		60			54			6			348			(288	)		319			2,457
Long-term debt		11,589			13,686			(2,097	)		14,039			(2,450	)		53,107			56,626

Total interest expense		37,980			40,769			(2,789	)		47,807			(9,827	)		165,047			234,938

Net interest income		501,283			489,393			11,890			471,616			29,667			1,957,590			1,856,613
Provision for credit losses (benefit)		(33,050	)		(61,173	)		28,123			21,218			(54,268	)		(193,464	)		292,536

Net interest income after provision for credit losses (benefit)		534,333			550,566			(16,233	)		450,398			83,935			2,151,054			1,564,077

Service charges on deposit accounts		41,613			41,312			301			39,152			2,461			162,698			147,823
Other service fees		83,793			80,445			3,348			71,156			12,637			311,248			257,892
Mortgage banking activities		17,035			8,307			8,728			9,730			7,305			50,133			10,401
Net gain on sale of debt securities		—			23			(23	)		—			—			23			41
Net (loss) gain, including impairment, on equity securities		(1,454	)		(401	)		(1,053	)		1,410			(2,864	)		131			6,279
Net (loss) profit on trading account debt securities		(355	)		58			(413	)		440			(795	)		(389	)		1,033
Net gain (loss) on sale of loans, including valuation adjustments on loans held-for-sale		—			—			—			253			(253	)		(73	)		1,234
Adjustments to indemnity reserves on loans sold		1,398			2,038			(640	)		2,160			(762	)		4,406			390
Other operating income		22,647			37,476			(14,829	)		20,546			2,101			113,951			87,219

Total non-interest income		164,677			169,258			(4,581	)		144,847			19,830			642,128			512,312

Operating expenses:
Personnel costs
Salaries		96,830			95,185			1,645			92,063			4,767			371,644			370,179
Commissions, incentives and other bonuses		27,611			25,892			1,719			19,399			8,212			113,095			78,582
Pension, postretirement and medical insurance		13,971			13,893			78			12,454			1,517			52,077			44,123
Other personnel costs, including payroll taxes		22,060			22,677			(617	)		18,351			3,709			94,986			71,321

Total personnel costs		160,472			157,647			2,825			142,267			18,205			631,802			564,205
Net occupancy expenses		26,755			24,896			1,859			42,793			(16,038	)		102,226			119,345
Equipment expenses		25,180			22,537			2,643			22,395			2,785			92,097			88,932
Other taxes		15,160			14,459			701			13,532			1,628			56,783			54,454
Professional fees
Collections, appraisals and other credit related fees		3,227			3,166			61			2,948			279			13,199			12,588
Programming, processing and other technology services		69,647			69,221			426			66,483			3,164			272,386			253,565
Legal fees, excluding collections		3,445			2,535			910			2,734			711			10,712			10,611
Other professional fees		28,736			29,787			(1,051	)		31,865			(3,129	)		114,568			117,358

Total professional fees		105,055			104,709			346			104,030			1,025			410,865			394,122
Communications		6,263			6,133			130			6,274			(11	)		25,234			23,496
Business promotion		25,833			18,116			7,717			16,466			9,367			72,981			57,608
FDIC deposit insurance		6,688			7,181			(493	)		6,880			(192	)		25,579			23,868
Other real estate owned (OREO) income		(3,860	)		(1,722	)		(2,138	)		(4,000	)		140			(14,414	)		(3,480	)
Credit and debit card processing, volume, interchange and other expenses		8,757			12,960			(4,203	)		13,209			(4,452	)		45,088			45,108
Other operating expenses


Operational losses		16,820		7,147		9,673			4,992		11,828		38,391		26,331
All other		18,226		13,322		4,904			6,034		12,192		53,509		57,443

Total other operating expenses		35,046		20,469		14,577			11,026		24,020		91,900		83,774
Amortization of intangibles		6,045		783		5,262			1,052		4,993		9,134		6,397

Total operating expenses		417,394		388,168		29,226			375,924		41,470		1,549,275		1,457,829

Income before income tax		281,616		331,656		(50,040	)		219,321		62,295		1,243,907		618,560
Income tax expense		75,552		83,542		(7,990	)		43,045		32,507		309,018		111,938

Net income	$	206,064	$	248,114	$	(42,050	)	$	176,276	$	29,788	$	934,889	$	506,622

Net income applicable to common stock	$	205,711	$	247,761	$	(42,050	)	$	175,923	$	29,788	$	933,477	$	504,864

Net income per common share - basic	$	2.59	$	3.09	$	(0.50	)	$	2.10	$	0.49	$	11.49	$	5.88

Net income per common share - diluted	$	2.58	$	3.09	$	(0.51	)	$	2.10	$	0.48	$	11.46	$	5.87

Dividends Declared per Common Share	$	0.45	$	0.45	$	—		$	0.40	$	0.05	$	1.75	$	1.60

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)


										Variance
										Q4 2021 vs.
(In thousands)	31-Dec-21			30-Sep-21			31-Dec-20			Q3 2021
Assets:
Cash and due from banks	$	428,433		$	538,973		$	491,065		$	(110,540	)
Money market investments		17,536,719			17,526,238			11,640,880			10,481
Trading account debt securities, at fair value		29,711			36,064			36,674			(6,353	)
Debt securities available-for-sale, at fair value		24,968,269			24,391,226			21,561,152			577,043
Debt securities held-to-maturity, at amortized cost		79,461			85,655			92,621			(6,194	)
Less: Allowance for credit losses		8,096			9,222			10,261			(1,126	)

Total debt securities held-to-maturity, net		71,365			76,433			82,360			(5,068	)

Equity securities		189,977			184,931			173,737			5,046
Loans held-for-sale, at lower of cost or fair value		59,168			91,313			99,455			(32,145	)
Loans held-in-portfolio		29,491,330			29,089,241			29,588,430			402,089
Less: Unearned income		247,441			233,869			203,234			13,572
Allowance for credit losses		695,366			718,575			896,250			(23,209	)

Total loans held-in-portfolio, net		28,548,523			28,136,797			28,488,946			411,726

Premises and equipment, net		492,231			487,526			510,241			4,705
Other real estate		85,077			76,828			83,146			8,249
Accrued income receivable		203,096			200,649			209,320			2,447
Mortgage servicing rights, at fair value		121,570			116,567			118,395			5,003
Other assets		1,628,572			1,634,839			1,737,041			(6,267	)
Goodwill		712,616			671,122			671,122			41,494
Other intangible assets		13,332			19,657			22,466			(6,325	)

Total assets	$	75,088,659		$	74,189,163		$	65,926,000		$	899,496

Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing	$	15,684,482		$	15,147,567		$	13,128,699		$	536,915
Interest bearing		51,320,606			50,865,994			43,737,641			454,612

Total deposits		67,005,088			66,013,561			56,866,340			991,527

Assets sold under agreements to repurchase		91,603			86,470			121,303			5,133
Other short-term borrowings		75,000			—			—			75,000
Notes payable		988,563			1,176,943			1,224,981			(188,380	)
Other liabilities		959,008			929,218			1,684,689			29,790

Total liabilities		69,119,262			68,206,192			59,897,313			913,070

Stockholders’ equity:
Preferred stock		22,143			22,143			22,143			—
Common stock		1,046			1,046			1,045			—
Surplus		4,650,182			4,569,641			4,571,534			80,541
Retained earnings		2,973,745			2,882,340			2,260,928			91,405
Treasury stock		(1,352,650	)		(1,352,104	)		(1,016,954	)		(546	)
Accumulated other comprehensive (loss) income, net of tax		(325,069	)		(140,095	)		189,991			(184,974	)

Total stockholders’ equity		5,969,397			5,982,971			6,028,687			(13,574	)

Total liabilities and stockholders’ equity	$	75,088,659		$	74,189,163		$	65,926,000		$	899,496

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table D - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - QUARTER

(Unaudited)


	Quarters ended																								Variance
	31-Dec-21								30-Sep-21								31-Dec-20								Q4 2021 vs. Q3 2021									Q4 2021 vs. Q4 2020
($ amounts in millions)	Average balance			Income / Expense		Yield / Rate			Average balance			Income / Expense		Yield / Rate			Average balance			Income / Expense		Yield / Rate			Average balance			Income / Expense			Yield / Rate			Average balance			Income / Expense			Yield / Rate
Assets:
Interest earning assets:
Money market, trading and investment securities	$	42,764		$	126.4		1.18	%	$	41,279		$	129.8		1.25	%	$	32,554		$	127.2		1.56	%	$	1,485		($	3.4	)		(0.07	)%	$	10,210		$	(0.8	)		(0.38	)%

Loans:
Commercial		13,395			188.6		5.59			13,265			179.2		5.36			13,610			170.2		4.98			130			9.4			0.23			(215	)		18.4			0.61
Construction		777			10.7		5.46			854			11.6		5.40			928			12.8		5.48			(77	)		(0.9	)		0.06			(151	)		(2.1	)		(0.02	)
Mortgage		7,504			96.4		5.14			7,652			97.8		5.11			7,856			98.6		5.02			(148	)		(1.4	)		0.03			(352	)		(2.2	)		0.12
Consumer		2,471			68.1		10.93			2,435			67.7		11.03			2,606			73.1		11.16			36			0.4			(0.10	)		(135	)		(5.0	)		(0.23	)
Auto		3,432			71.3		8.24			3,372			71.2		8.37			3,130			68.8		8.74			60			0.1			(0.13	)		302			2.5			(0.50	)
Lease financing		1,359			20.3		5.97			1,317			19.7		5.99			1,170			17.8		6.07			42			0.6			(0.02	)		189			2.5			(0.10	)

Total loans		28,938			455.4		6.26			28,895			447.2		6.15			29,300			441.3		6.00			43			8.2			0.11			(362	)		14.1			0.26

Total interest earning assets	$	71,702		$	581.8		3.23	%	$	70,174		$	577.0		3.27	%	$	61,854		$	568.5		3.66	%	$	1,528		$	4.8			(0.04	)%	$	9,848		$	13.3			(0.43	)%

Allowance for credit losses - loan portfolio		(719	)							(778	)							(930	)							59									211
Allowance for credit losses - investment securities		(9	)							(10	)							(12	)							1									3
Other non-interest earning assets		3,844								3,901								4,054								(57	)								(210	)

Total average assets	$	74,818							$	73,287							$	64,966							$	1,531								$	9,852

Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market	$	28,205		$	7.7		0.11	%	$	27,773		$	7.9		0.11	%	$	21,829		$	8.7		0.16	%	$	432		$	(0.2	)		-	%	$	6,376		$	(1.0	)		(0.05	)%
Savings		16,324			6.8		0.17			15,621			6.4		0.16			13,890			7.5		0.22			703			0.4			0.01			2,434			(0.7	)		(0.05	)
Time deposits		6,793			11.8		0.69			6,957			12.7		0.73			7,656			17.2		0.89			(164	)		(0.9	)		(0.04	)		(863	)		(5.4	)		(0.20	)

Total interest-bearing deposits		51,322			26.3		0.20			50,351			27.0		0.21			43,375			33.4		0.31			971			(0.7	)		(0.01	)		7,947			(7.1	)		(0.11	)
Borrowings		1,163			11.6		4.01			1,284			13.7		4.28			1,354			14.4		4.26			(121	)		(2.1	)		(0.27	)		(191	)		(2.8	)		(0.25	)

Total interest-bearing liabilities		52,485			37.9		0.29			51,635			40.7		0.31			44,729			47.8		0.43			850			(2.8	)		(0.02	)		7,756			(9.9	)		(0.14	)

Net interest spread							2.94	%							2.96	%							3.23	%								(0.02	)%								(0.29	)%

Non-interest bearing deposits		15,455								14,955								13,303								500									2,152
Other liabilities		917								927								1,393								(10	)								(476	)
Stockholders’ equity		5,961								5,770								5,541								191									420

Total average liabilities and stockholders’ equity	$	74,818							$	73,287							$	64,966							$	1,531								$	9,852

Net interest income / margin on a taxable equivalent basis (Non-GAAP)				$	543.9		3.02	%				$	536.3		3.04	%				$	520.7		3.35	%				$	7.6			(0.02	)%				$	23.2			(0.33	)%
Taxable equivalent adjustment					42.6								46.9								49.1								(4.3	)								(6.5	)

Net interest income / margin non-taxable equivalent basis (GAAP)				$	501.3		2.78	%				$	489.4		2.77	%				$	471.6		3.04	%				$	11.9			0.01	%				$	29.7			(0.26	)%

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table E - Analysis of Levels and Yields on a Taxable Equivalent Basis (Non-GAAP) - YEAR-TO-DATE

(Unaudited)


	Years ended
	31-Dec-21								31-Dec-20								Variance
	Average			Income /		Yield /			Average			Income /		Yield /			Average			Income /			Yield /
($ amounts in millions)	balance			Expense		Rate			balance			Expense		Rate			balance			Expense			Rate
Assets:
Interest earning assets:
Money market, trading and investment securities	$	39,015		$	533.6		1.37	%	$	28,020		$	491.9		1.76	%	$	10,995		$	41.7			(0.39	)%

Loans:
Commercial		13,455			723.8		5.39			13,245			692.4		5.23			210			31.4			0.16
Construction		849			45.8		5.41			913			52.4		5.74			(64	)		(6.6	)		(0.33	)
Mortgage		7,696			392.0		5.09			7,255			379.8		5.23			441			12.2			(0.14	)
Consumer		2,463			275.1		11.17			2,839			322.0		11.34			(376	)		(46.9	)		(0.17	)
Auto		3,322			280.7		8.47			3,021			271.2		8.97			301			9.5			(0.50	)
Lease financing		1,289			77.4		6.00			1,112			67.2		6.05			177			10.2			(0.05	)

Total loans		29,074			1,794.8		6.19			28,385			1,785.0		6.29			689			9.8			(0.10	)

Total interest earning assets	$	68,089		$	2,328.4		3.43	%	$	56,405		$	2,276.9		4.04	%	$	11,684		$	51.5			(0.61	)%

Allowance for credit losses—loan portfolio		(796	)							(897	)							101
Allowance for credit losses—investment securities		(10	)							(13	)							3
Other non-interest earning assets		3,886								4,089								(203	)

Total average assets	$	71,169							$	59,584							$	11,585

Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market	$	25,959		$	31.9		0.12	%	$	19,678		$	54.7		0.28	%	$	6,281		($	22.8	)		(0.16	)%
Savings		15,429			27.1		0.18			12,399			37.8		0.30			3,030			(10.7	)		(0.12	)
Time deposits		7,028			52.6		0.75			7,971			83.4		1.05			(943	)		(30.8	)		(0.30	)

Total interest-bearing deposits		48,416			111.6		0.23			40,048			175.9		0.44			8,368			(64.3	)		(0.21	)
Borrowings		1,276			53.4		4.19			1,344			59.1		4.40			(68	)		(5.7	)		(0.21	)

Total interest-bearing liabilities		49,692			165.0		0.33			41,392			235.0		0.57			8,300			(70.0	)		(0.24	)

Net interest spread							3.10	%							3.47	%								(0.37	)%

Non-interest bearing deposits		14,687								11,538								3,149
Other liabilities		1,012								1,234								(222	)
Stockholders’ equity		5,778								5,420								358

Total average liabilities and stockholders’ equity	$	71,169							$	59,584							$	11,585

Net interest income / margin on a taxable equivalent basis (Non-GAAP)				$	2,163.4		3.19	%				$	2,041.9		3.62	%				$	121.5			(0.43	)%
Taxable equivalent adjustment					205.8								185.4								20.4

Net interest income / margin non-taxable equivalent basis (GAAP)				$	1,957.6		2.88	%				$	1,856.6		3.29	%				$	101.0			(0.41	)%

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)

Mortgage Banking Activities


	Quarters ended									Variance						Years ended						Variance
(In thousands)	31-Dec-21			30-Sep-21			31-Dec-20			Q4 2021 vs.Q3 2021			Q4 2021 vs.Q4 2020			31-Dec-21			31-Dec-20			2021 vs. 2020
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees	$	9,492		$	9,376		$	10,242		$	116		$	(750	)	$	38,105		$	43,234		$	(5,129	)
Mortgage servicing rights fair value adjustments		1,500			(5,979	)		(8,695	)		7,479			10,195			(10,206	)		(42,055	)		31,849

Total mortgage servicing fees, net of fair value adjustments		10,992			3,397			1,547			7,595			9,445			27,899			1,179			26,720

Net gain on sale of loans, including valuation on loans held-for-sale		5,428			6,084			10,826			(656	)		(5,398	)		21,684			31,215			(9,531	)

Trading account profit (loss):
Unrealized gains on outstanding derivative positions		—			—			4			—			(4	)		—			—			—
Realized gains (losses) on closed derivative positions		691			(1,004	)		(2,195	)		1,695			2,886			1,323			(10,586	)		11,909

Total trading account profit (loss)		691			(1,004	)		(2,191	)		1,695			2,882			1,323			(10,586	)		11,909

Losses on repurchased loans, including interest advances		(76	)		(170	)		(452	)		94			376			(773	)		(11,407	)		10,634

Total mortgage banking activities	$	17,035		$	8,307		$	9,730		$	8,728		$	7,305		$	50,133		$	10,401		$	39,732

Other Service Fees


	Quarters ended						Variance						Years ended				Variance
(In thousands)	31-Dec-21		30-Sep-21		31-Dec-20		Q4 2021 vs.Q3 2021			Q4 2021 vs.Q4 2020			31-Dec-21		31-Dec-20		2021 vs. 2020
Other service fees:
Debit card fees	$	12,392	$	12,210	$	11,210	$	182		$	1,182		$	48,637	$	39,652	$	8,985
Insurance fees		17,848		14,385		13,803		3,463			4,045			57,834		52,014		5,820
Credit card fees		35,649		33,409		27,986		2,240			7,663			130,475		96,011		34,464
Sale and administration of investment products		5,908		6,216		5,488		(308	)		420			23,634		21,755		1,879
Trust fees		5,858		6,453		5,499		(595	)		359			24,318		21,191		3,127
Other fees		6,138		7,772		7,170		(1,634	)		(1,032	)		26,350		27,269		(919	)

Total other service fees	$	83,793	$	80,445	$	71,156	$	3,348		$	12,637		$	311,248	$	257,892	$	53,356

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table G - Loans and Deposits

(Unaudited)

Loans - Ending Balances


							Variance
(In thousands)	31-Dec-21		30-Sep-21		31-Dec-20		Q4 2021 vs.Q3 2021			Q4 2021 vs.Q4 2020
Loans held-in-portfolio:
Commercial	$	13,736,033	$	13,303,671	$	13,614,310	$	432,362		$	121,723
Construction		716,220		801,040		926,208		(84,820	)		(209,988	)
Leasing		1,381,319		1,348,679		1,197,661		32,640			183,658
Mortgage		7,427,196		7,539,152		7,890,680		(111,956	)		(463,484	)
Auto		3,412,187		3,376,694		3,132,228		35,493			279,959
Consumer		2,570,934		2,486,136		2,624,109		84,798			(53,175	)

Total loans held-in-portfolio	$	29,243,889	$	28,855,372	$	29,385,196	$	388,517		$	(141,307	)

Loans held-for-sale:
Commercial	$	—	$	—	$	2,738	$	—		$	(2,738	)
Mortgage		59,168		91,313		96,717		(32,145	)		(37,549	)

Total loans held-for-sale	$	59,168	$	91,313	$	99,455	$	(32,145	)	$	(40,287	)

Total loans	$	29,303,057	$	28,946,685	$	29,484,651	$	356,372		$	(181,594	)

Deposits - Ending Balances


							Variance
(In thousands)	31-Dec-21		30-Sep-21		31-Dec-20		Q4 2021 vs. Q3 2021			Q4 2021 vs.Q4 2020
Demand deposits [1]	$	25,889,732	$	25,495,481	$	22,532,729	$	394,251		$	3,357,003
Savings, NOW and money market deposits (non-brokered)		33,674,134		32,867,805		26,390,565		806,329			7,283,569
Savings, NOW and money market deposits (brokered)		729,073		718,155		635,198		10,918			93,875
Time deposits (non-brokered)		6,685,938		6,906,509		7,130,749		(220,571	)		(444,811	)
Time deposits (brokered CDs)		26,211		25,611		177,099		600			(150,888	)

Total deposits	$	67,005,088	$	66,013,561	$	56,866,340	$	991,527		$	10,138,748

[1]	Includes interest and non-interest bearing demand deposits.

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)


31-Dec-21
Puerto Rico
	Past due												Past due 90 days or more
	30-59		60-89		90 days		Total						Non-accrual		Accruing
(In thousands)	days		days		or more		past due		Current		Loans HIP		loans		loans
Commercial multi-family	$	314	$	—	$	272	$	586	$	154,183	$	154,769	$	272	$	—
Commercial real estate:
Non-owner occupied		2,399		136		20,716		23,251		2,266,672		2,289,923		20,716		—
Owner occupied		3,329		278		54,335		57,942		1,365,787		1,423,729		54,335		—
Commercial and industrial		3,438		1,727		45,242		50,407		3,478,041		3,528,448		44,724		518
Construction		—		—		485		485		86,626		87,111		485		—
Mortgage		217,830		81,754		805,245		1,104,829		5,147,037		6,251,866		333,887		471,358
Leasing		9,240		2,037		3,102		14,379		1,366,940		1,381,319		3,102		—
Consumer:
Credit cards		5,768		3,520		8,577		17,865		901,986		919,851		—		8,577
Home equity lines of credit		46		—		23		69		3,502		3,571		—		23
Personal		10,027		6,072		21,235		37,334		1,250,726		1,288,060		21,235		—
Auto		59,128		15,019		23,085		97,232		3,314,955		3,412,187		23,085		—
Other		432		714		12,621		13,767		110,781		124,548		12,448		173

Total	$	311,951	$	111,257	$	994,938	$	1,418,146	$	19,447,236	$	20,865,382	$	514,289	$	480,649


30-Sep-21
Puerto Rico
	Past due												Past due 90 days or more
	30-59		60-89		90 days		Total						Non-accrual		Accruing
(In thousands)	days		days		or more		past due		Current		Loans HIP		loans		loans
Commercial multi-family	$	392	$	—	$	396	$	788	$	149,639	$	150,427	$	396	$	—
Commercial real estate:
Non-owner occupied		661		17,383		60,143		78,187		2,268,441		2,346,628		60,143		—
Owner occupied		2,719		614		71,863		75,196		1,394,503		1,469,699		71,863		—
Commercial and industrial		1,641		576		51,456		53,673		3,618,266		3,671,939		50,992		464
Construction		—		—		14,877		14,877		112,602		127,479		14,877		—
Mortgage		197,955		76,345		896,208		1,170,508		5,204,541		6,375,049		354,555		541,653
Leasing		8,193		1,969		2,542		12,704		1,335,975		1,348,679		2,542		—
Consumer:
Credit cards		5,211		3,667		7,558		16,436		870,139		886,575		—		7,558
Home equity lines of credit		46		—		—		46		3,507		3,553		—		—
Personal		9,329		5,954		21,646		36,929		1,238,448		1,275,377		21,646		—
Auto		52,486		11,663		17,345		81,494		3,295,200		3,376,694		17,345		—
Other		393		76		14,621		15,090		108,492		123,582		14,512		109

Total	$	279,026	$	118,247	$	1,158,655	$	1,555,928	$	19,599,753	$	21,155,681	$	608,871	$	549,784


Variance
	Past due																		Past due 90 days or more
	30-59			60-89			90 days			Total									Non-accrual			Accruing
(In thousands)	days			days			or more			past due			Current			Loans HIP			loans			loans
Commercial multi-family	$	(78	)	$	—		$	(124	)	$	(202	)	$	4,544		$	4,342		$	(124	)	$	—
Commercial real estate:
Non-owner occupied		1,738			(17,247	)		(39,427	)		(54,936	)		(1,769	)		(56,705	)		(39,427	)		—
Owner occupied		610			(336	)		(17,528	)		(17,254	)		(28,716	)		(45,970	)		(17,528	)		—
Commercial and industrial		1,797			1,151			(6,214	)		(3,266	)		(140,225	)		(143,491	)		(6,268	)		54
Construction		—			—			(14,392	)		(14,392	)		(25,976	)		(40,368	)		(14,392	)		—
Mortgage		19,875			5,409			(90,963	)		(65,679	)		(57,504	)		(123,183	)		(20,668	)		(70,295	)
Leasing		1,047			68			560			1,675			30,965			32,640			560			—
Consumer:
Credit cards		557			(147	)		1,019			1,429			31,847			33,276			—			1,019
Home equity lines of credit		—			—			23			23			(5	)		18			—			23
Personal		698			118			(411	)		405			12,278			12,683			(411	)		—
Auto		6,642			3,356			5,740			15,738			19,755			35,493			5,740			—
Other		39			638			(2,000	)		(1,323	)		2,289			966			(2,064	)		64

Total	$	32,925		$	(6,990	)	$	(163,717	)	$	(137,782	)	$	(152,517	)	$	(290,299	)	$	(94,582	)	$	(69,135	)

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table I - Loan Delinquency - Popular U.S. Operations

(Unaudited)


December 31, 2021
Popular U.S.
	Past due												Past due 90 days or more
	30-59		60-89		90 days		Total						Non-accrual		Accruing
(In thousands)	days		days		or more		past due		Current		Loans HIP		loans		loans
Commercial multi-family	$	3,826	$	—	$	—	$	3,826	$	1,804,035	$	1,807,861	$	—	$	—
Commercial real estate:
Non-owner occupied		5,721		683		622		7,026		2,316,441		2,323,467		622		—
Owner occupied		1,095		—		1,013		2,108		392,265		394,373		1,013		—
Commercial and industrial		9,410		2,680		4,015		16,105		1,797,358		1,813,463		3,897		118
Construction		—		—		—		—		629,109		629,109		—		—
Mortgage		11,711		2,573		21,969		36,253		1,139,077		1,175,330		21,969		—
Consumer:
Credit cards		—		—		—		—		10		10		—		—
Home equity lines of credit		71		34		5,406		5,511		69,780		75,291		5,406		—
Personal		863		574		681		2,118		152,827		154,945		681		—
Other		—		—		—		—		4,658		4,658		—		—

Total	$	32,697	$	6,544	$	33,706	$	72,947	$	8,305,560	$	8,378,507	$	33,588	$	118


September 30, 2021
Popular U.S.
	Past due												Past due 90 days or more
	30-59		60-89		90 days		Total						Non-accrual		Accruing
(In thousands)	days		days		or more		past due		Current		Loans HIP		loans		loans
Commercial multi-family	$	—	$	22,171	$	—	$	22,171	$	1,709,508	$	1,731,679	$	—	$	—
Commercial real estate:
Non-owner occupied		2,569		4,632		374		7,575		2,029,514		2,037,089		374		—
Owner occupied		1,158		—		986		2,144		343,430		345,574		986		—
Commercial and industrial		804		1		1,428		2,233		1,548,403		1,550,636		1,427		1
Construction		14,978		—		—		14,978		658,583		673,561		—		—
Mortgage		1,369		2,833		14,488		18,690		1,145,413		1,164,103		14,488		—
Consumer:
Credit cards		—		—		—		—		26		26		—		—
Home equity lines of credit		690		76		5,941		6,707		73,042		79,749		5,941		—
Personal		588		544		748		1,880		111,598		113,478		748		—
Other		16		—		—		16		3,780		3,796		—		—

Total	$	22,172	$	30,257	$	23,965	$	76,394	$	7,623,297	$	7,699,691	$	23,964	$	1


Variance
	Past due																		Past due 90 days or more
	30-59			60-89			90 days			Total									Non-accrual			Accruing
(In thousands)	days			days			or more			past due			Current			Loans HIP			loans			loans
Commercial multi-family	$	3,826		$	(22,171	)	$	—		$	(18,345	)	$	94,527		$	76,182		$	—		$	—
Commercial real estate:
Non-owner occupied		3,152			(3,949	)		248			(549	)		286,927			286,378			248			—
Owner occupied		(63	)		—			27			(36	)		48,835			48,799			27			—
Commercial and industrial		8,606			2,679			2,587			13,872			248,955			262,827			2,470			117
Construction		(14,978	)		—			—			(14,978	)		(29,474	)		(44,452	)		—			—
Mortgage		10,342			(260	)		7,481			17,563			(6,336	)		11,227			7,481			—
Consumer:
Credit cards		—			—			—			—			(16	)		(16	)		—			—
Home equity lines of credit		(619	)		(42	)		(535	)		(1,196	)		(3,262	)		(4,458	)		(535	)		—
Personal		275			30			(67	)		238			41,229			41,467			(67	)		—
Other		(16	)		—			—			(16	)		878			862			—			—

Total	$	10,525		$	(23,713	)	$	9,741		$	(3,447	)	$	682,263		$	678,816		$	9,624		$	117

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)


31-Dec-21
Popular, Inc.
	Past due												Past due 90 days or more
	30-59		60-89		90 days		Total						Non-accrual		Accruing
(In thousands)	days		days		or more		past due		Current		Loans HIP		loans		loans
Commercial multi-family	$	4,140	$	—	$	272	$	4,412	$	1,958,218	$	1,962,630	$	272	$	—
Commercial real estate:
Non-owner occupied		8,120		819		21,338		30,277		4,583,113		4,613,390		21,338		—
Owner occupied		4,424		278		55,348		60,050		1,758,052		1,818,102		55,348		—
Commercial and industrial		12,848		4,407		49,257		66,512		5,275,399		5,341,911		48,621		636
Construction		—		—		485		485		715,735		716,220		485		—
Mortgage		229,541		84,327		827,214		1,141,082		6,286,114		7,427,196		355,856		471,358
Leasing		9,240		2,037		3,102		14,379		1,366,940		1,381,319		3,102		—
Consumer:
Credit cards		5,768		3,520		8,577		17,865		901,996		919,861		—		8,577
Home equity lines of credit		117		34		5,429		5,580		73,282		78,862		5,406		23
Personal		10,890		6,646		21,916		39,452		1,403,553		1,443,005		21,916		—
Auto		59,128		15,019		23,085		97,232		3,314,955		3,412,187		23,085		—
Other		432		714		12,621		13,767		115,439		129,206		12,448		173

Total	$	344,648	$	117,801	$	1,028,644	$	1,491,093	$	27,752,796	$	29,243,889	$	547,877	$	480,767


30-Sep-21
Popular, Inc.
	Past due												Past due 90 days or more
	30-59		60-89		90 days		Total						Non-accrual		Accruing
(In thousands)	days		days		or more		past due		Current		Loans HIP		loans		loans
Commercial multi-family	$	392	$	22,171	$	396	$	22,959	$	1,859,147	$	1,882,106	$	396	$	—
Commercial real estate:
Non-owner occupied		3,230		22,015		60,517		85,762		4,297,955		4,383,717		60,517		—
Owner occupied		3,877		614		72,849		77,340		1,737,933		1,815,273		72,849		—
Commercial and industrial		2,445		577		52,884		55,906		5,166,669		5,222,575		52,419		465
Construction		14,978		—		14,877		29,855		771,185		801,040		14,877		—
Mortgage		199,324		79,178		910,696		1,189,198		6,349,954		7,539,152		369,043		541,653
Leasing		8,193		1,969		2,542		12,704		1,335,975		1,348,679		2,542		—
Consumer:
Credit cards		5,211		3,667		7,558		16,436		870,165		886,601		—		7,558
Home equity lines of credit		736		76		5,941		6,753		76,549		83,302		5,941		—
Personal		9,917		6,498		22,394		38,809		1,350,046		1,388,855		22,394		—
Auto		52,486		11,663		17,345		81,494		3,295,200		3,376,694		17,345		—
Other		409		76		14,621		15,106		112,272		127,378		14,512		109

Total	$	301,198	$	148,504	$	1,182,620	$	1,632,322	$	27,223,050	$	28,855,372	$	632,835	$	549,785


Variance
	Past due																		Past due 90 days or more
	30-59			60-89			90 days			Total									Non-accrual			Accruing
(In thousands)	days			days			or more			past due			Current			Loans HIP			loans			loans
Commercial multi-family	$	3,748		$	(22,171	)	$	(124	)	$	(18,547	)	$	99,071		$	80,524		$	(124	)	$	—
Commercial real estate:
Non-owner occupied		4,890			(21,196	)		(39,179	)		(55,485	)		285,158			229,673			(39,179	)		—
Owner occupied		547			(336	)		(17,501	)		(17,290	)		20,119			2,829			(17,501	)		—
Commercial and industrial		10,403			3,830			(3,627	)		10,606			108,730			119,336			(3,798	)		171
Construction		(14,978	)		—			(14,392	)		(29,370	)		(55,450	)		(84,820	)		(14,392	)		—
Mortgage		30,217			5,149			(83,482	)		(48,116	)		(63,840	)		(111,956	)		(13,187	)		(70,295	)
Leasing		1,047			68			560			1,675			30,965			32,640			560			—
Consumer:
Credit cards		557			(147	)		1,019			1,429			31,831			33,260			—			1,019
Home equity lines of credit		(619	)		(42	)		(512	)		(1,173	)		(3,267	)		(4,440	)		(535	)		23
Personal		973			148			(478	)		643			53,507			54,150			(478	)		—
Auto		6,642			3,356			5,740			15,738			19,755			35,493			5,740			—
Other		23			638			(2,000	)		(1,339	)		3,167			1,828			(2,064	)		64

Total	$	43,450		$	(30,703	)	$	(153,976	)	$	(141,229	)	$	529,746		$	388,517		$	(84,958	)	$	(69,018	)

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table K - Non-Performing Assets

(Unaudited)


																			Variance
(Dollars in thousands)	31-Dec-21			As a % of loans HIP by category			30-Sep-21			As a % of loans HIP by category			31-Dec-20			As a % of loans HIP by category			Q4 2021 vs. Q3 2021			Q4 2021 vs. Q4 2020
Non-accrual loans:
Commercial	$	125,579			0.9	%	$	186,181			1.4	%	$	210,080			1.5	%	$	(60,602	)	$	(84,501	)
Construction		485			0.1			14,877			1.9			29,057			3.1			(14,392	)		(28,572	)
Leasing		3,102			0.2			2,542			0.2			3,441			0.3			560			(339	)
Mortgage		355,856			4.8			369,043			4.9			429,207			5.4			(13,187	)		(73,351	)
Auto		23,085			0.7			17,345			0.5			15,736			0.5			5,740			7,349
Consumer		39,770			1.5			42,847			1.7			50,253			1.9			(3,077	)		(10,483	)

Total non-performing loans held-in-portfolio		547,877			1.9	%		632,835			2.2	%		737,774			2.5	%		(84,958	)		(189,897	)
Non-performing loans held-for-sale [1]		—						—						2,738						—			(2,738	)
Other real estate owned (“OREO”)		85,077						76,828						83,146						8,249			1,931

Total non-performing assets	$	632,954					$	709,663					$	823,658					$	(76,709	)	$	(190,704	)

Accruing loans past due 90 days or more [2]	$	480,767					$	549,785					$	1,028,064					$	(69,018	)	$	(547,297	)

Ratios:
Non-performing assets to total assets		0.84	%					0.96	%					1.25	%
Non-performing loans held-in-portfolio to loans held-in-portfolio		1.87						2.19						2.51
Allowance for credit losses to loans held-in-portfolio		2.38						2.49						3.05
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		126.92						113.55						121.48

[1]	There were no non-performing loans held-for-sale as of December 31, 2021 and September 30, 2021 (December 31, 2020 - $3 million in commercial loans).

[2]

It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $13 million at December 31, 2021, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (September 30, 2021 - $12 million; December 31, 2020 - $57 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of BPPR with an offsetting liability. These balances include $304 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2021 (September 30, 2021 - $350 million; December 31, 2020 - $329 million). Furthermore, the Corporation has approximately $50 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation’s policy to exclude these balances from non-performing assets (September 30, 2021 - $53 million; December 31, 2020 - $60 million).

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio:


	Quarter ended									Quarter ended
	31-Dec-21									30-Sep-21
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	183,394		$	2,787		$	186,181		$	217,703		$	7,862		$	225,565
Plus:
New non-performing loans		2,297			3,208			5,505			7,454			1,039			8,493
Advances on existing non-performing loans		—			35			35			—			10			10
Less:
Non-performing loans transferred to OREO		(996	)		—			(996	)		(2,069	)		—			(2,069	)
Non-performing loans charged-off		(2,412	)		(66	)		(2,478	)		(8,617	)		—			(8,617	)
Loans returned to accrual status / loan collections		(62,236	)		(432	)		(62,668	)		(31,077	)		(6,124	)		(37,201	)

Ending balance NPLs	$	120,047		$	5,532		$	125,579		$	183,394		$	2,787		$	186,181

Construction loans held-in-portfolio:


	Quarter ended								Quarter ended
	31-Dec-21								30-Sep-21
(In thousands)	BPPR			Popular U.S.		Popular, Inc.			BPPR		Popular U.S.		Popular, Inc.
Beginning balance NPLs	$	14,877		$	—	$	14,877		$	14,877	$	—	$	14,877
Plus:
New non-performing loans		481			—		481			—		—		—
Less:
Loans returned to accrual status / loan collections		(14,873	)		—		(14,873	)		—		—		—

Ending balance NPLs	$	485		$	—	$	485		$	14,877	$	—	$	14,877

Mortgage loans held-in-portfolio:


	Quarter ended									Quarter ended
	31-Dec-21									30-Sep-21
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	354,555		$	14,488		$	369,043		$	370,653		$	13,323		$	383,976
Plus:
New non-performing loans		36,210			12,084			48,294			38,606			4,662			43,268
Advances on existing non-performing loans		—			14			14			—			2			2
Less:
Non-performing loans transferred to OREO		(7,116	)		—			(7,116	)		(8,984	)		—			(8,984	)
Non-performing loans charged-off		(366	)		(26	)		(392	)		(1,023	)		—			(1,023	)
Loans returned to accrual status / loan collections		(49,396	)		(4,591	)		(53,987	)		(44,697	)		(3,499	)		(48,196	)

Ending balance NPLs	$	333,887		$	21,969		$	355,856		$	354,555		$	14,488		$	369,043

Total non-performing loans held-in-portfolio (excluding consumer):


	Quarter ended									Quarter ended
	31-Dec-21									30-Sep-21
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	552,826		$	17,275		$	570,101		$	603,233		$	21,185		$	624,418
Plus:
New non-performing loans		38,988			15,292			54,280			46,060			5,701			51,761
Advances on existing non-performing loans		—			49			49			—			12			12
Less:
Non-performing loans transferred to OREO		(8,112	)		—			(8,112	)		(11,053	)		—			(11,053	)
Non-performing loans charged-off		(2,778	)		(92	)		(2,870	)		(9,640	)		—			(9,640	)
Loans returned to accrual status / loan collections		(126,505	)		(5,023	)		(131,528	)		(75,774	)		(9,623	)		(85,397	)

Ending balance NPLs	$	454,419		$	27,501		$	481,920		$	552,826		$	17,275		$	570,101

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table M - Allowance for Credit Losses, Net Charge-offs and Related Ratios

(Unaudited)


	Quarters ended
(Dollars in thousands)	31-Dec-21			30-Sep-21			31-Dec-20
Balance at beginning of period - loans held-in-portfolio	$	718,575		$	785,790		$	925,850
Provision for credit losses (benefit)		(31,421	)		(58,645	)		10,785
Initial allowance for credit losses - PCD Loans		331			253			1,693

		687,485			727,398			938,328

Net loans charged-off (recovered):
BPPR
Commercial		(11,346	)		4,357			17,171
Construction		(1,518	)		(2,223	)		(584	)
Lease financing		564			304			996
Mortgage		(4,398	)		(2,111	)		4,579
Consumer		9,083			9,009			19,055

Total BPPR		(7,615	)		9,336			41,217

Popular U.S.
Commercial		(387	)		(463	)		(1,739	)
Construction		(213	)		—			444
Mortgage		569			(48	)		15
Consumer		(235	)		(2	)		2,141

Total Popular U.S.		(266	)		(513	)		861

Total loans charged-off (recovered) - Popular, Inc.		(7,881	)		8,823			42,078

Balance at end of period - loans held-in-portfolio	$	695,366		$	718,575		$	896,250

Balance at beginning of period - unfunded commitments	$	8,400		$	9,936		$	13,295
Provision for credit losses (benefit)		(503	)		(1,536	)		2,556

Balance at end of period - unfunded commitments [1]	$	7,897		$	8,400		$	15,851

POPULAR, INC.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		(0.11	)%		0.12	%		0.58	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M.			N.M.			25.63	%
BPPR
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		(0.15	)%		0.18	%		0.77	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M.			N.M.			60.06	%
Popular U.S.
Annualized net charge-offs to average loans held-in-portfolio		(0.01	)%		(0.03	)%		0.04	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M.			N.M.			N.M.
N.M. - Not meaningful.

[1]	Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.


	Year ended			Year ended
(Dollars in thousands)	31-Dec-21			31-Dec-20
	Total			Total
Balance at beginning of period - loans held-in-portfolio	$	896,250		$	477,708
Impact of adopting CECL		—			315,107
Provision for credit losses (benefit)		(183,345	)		282,336
Initial allowance for credit losses - PCD Loans		3,142			7,512

		716,047			1,082,663

Net loans charged-off (recovered):
BPPR
Commercial		(18,300	)		16,889
Construction		1,697			(954	)
Lease financing		1,379			7,364
Mortgage		2,729			19,635
Consumer		32,207			133,712

Total BPPR		19,712			176,646

Popular U.S.
Commercial		(1,247	)		(2,215	)
Construction		(120	)		289
Mortgage		18			(10	)
Consumer		2,318			11,703

Total Popular U.S.		969			9,767

Total loans charged-off - Popular, Inc.		20,681			186,413

Balance at end of period - loans held-in-portfolio	$	695,366		$	896,250

Balance at beginning of period - unfunded commitments	$	15,851		$	8,717
Impact of adopting CECL		—			(5,460	)
Provision for credit losses (benefit)		(7,954	)		12,594

Balance at end of period - unfunded commitments [1]	$	7,897		$	15,851

POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio		0.07	%		0.66	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M.			151.46	%
BPPR
Annualized net charge-offs to average loans held-in-portfolio		0.09	%		0.85	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M.			116.54	%
Popular U.S.
Annualized net charge-offs to average loans held-in-portfolio		0.01	%		0.13	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M.			782.95	%
N.M. - Not meaningful.

[1]	Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table N - Allowance for Credit Losses “ACL”- Loan Portfolios—CONSOLIDATED

(Unaudited)


31-Dec-21
(Dollars in thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL	$	215,805		$	6,363		$	154,478		$	17,578		$	301,142		$	695,366
Total loans held-in-portfolio	$	13,736,033		$	716,220		$	7,427,196		$	1,381,319		$	5,983,121		$	29,243,889

ACL to loans held-in-portfolio		1.57	%		0.89	%		2.08	%		1.27	%		5.03	%		2.38	%


30-Sep-21
(Dollars in thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL	$	234,814		$	9,850		$	170,378		$	11,634		$	291,899		$	718,575
Total loans held-in-portfolio	$	13,303,671		$	801,040		$	7,539,152		$	1,348,679		$	5,862,830		$	28,855,372

ACL to loans held-in-portfolio		1.77	%		1.23	%		2.26	%		0.86	%		4.98	%		2.49	%


Variance
(Dollars in thousands)	Commercial			Construction			Mortgage			Lease financing		Consumer		Total
Total ACL	$	(19,009	)	$	(3,487	)	$	(15,900	)	$	5,944	$	9,243	$	(23,209	)
Total loans held-in-portfolio	$	432,362		$	(84,820	)	$	(111,956	)	$	32,640	$	120,291	$	388,517

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table O - Allowance for Credit Losses “ACL”- Loan Portfolios - PUERTO RICO OPERATIONS

(Unaudited)


31-Dec-21
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	151,928		$	1,641		$	138,286		$	17,578		$	284,729		$	594,162
Loans held-in-portfolio	$	7,396,869		$	87,111		$	6,251,866		$	1,381,319		$	5,748,217		$	20,865,382

ACL to loans held-in-portfolio		2.05	%		1.88	%		2.21	%		1.27	%		4.95	%		2.85	%


30-Sep-21
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	168,504		$	1,911		$	155,062		$	11,634		$	279,667		$	616,778
Loans held-in-portfolio	$	7,638,693		$	127,479		$	6,375,049		$	1,348,679		$	5,665,781		$	21,155,681

ACL to loans held-in-portfolio		2.21	%		1.50	%		2.43	%		0.86	%		4.94	%		2.92	%


Variance
(In thousands)	Commercial			Construction			Mortgage			Lease financing		Consumer		Total
ACL	$	(16,576	)	$	(270	)	$	(16,776	)	$	5,944	$	5,062	$	(22,616	)
Loans held-in-portfolio	$	(241,824	)	$	(40,368	)	$	(123,183	)	$	32,640	$	82,436	$	(290,299	)

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table P - Allowance for Credit Losses “ACL”- Loan Portfolios - POPULAR U.S. OPERATIONS

(Unaudited)


31-Dec-21
Popular U.S.
(In thousands)	Commercial			Construction			Mortgage			Consumer			Total
ACL	$	63,877		$	4,722		$	16,192		$	16,413		$	101,204
Loans held-in-portfolio	$	6,339,164		$	629,109		$	1,175,330		$	234,904		$	8,378,507

ACL to loans held-in-portfolio		1.01	%		0.75	%		1.38	%		6.99	%		1.21	%


30-Sep-21
Popular U.S.
(In thousands)	Commercial			Construction			Mortgage			Consumer			Total
ACL	$	66,310		$	7,939		$	15,316		$	12,232		$	101,797
Loans held-in-portfolio	$	5,664,978		$	673,561		$	1,164,103		$	197,049		$	7,699,691

ACL to loans held-in-portfolio		1.17	%		1.18	%		1.32	%		6.21	%		1.32	%


Variance
(In thousands)	Commercial			Construction			Mortgage		Consumer		Total
ACL	$	(2,433	)	$	(3,217	)	$	876	$	4,181	$	(593	)
Loans held-in-portfolio	$	674,186		$	(44,452	)	$	11,227	$	37,855	$	678,816

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table Q - Reconciliation to GAAP Financial Measures

(Unaudited)


(In thousands, except share or per share information)	31-Dec-21			30-Sep-21			31-Dec-20
Total stockholders’ equity	$	5,969,397		$	5,982,971		$	6,028,687
Less: Preferred stock		(22,143	)		(22,143	)		(22,143	)
Less: Goodwill		(712,616	)		(671,122	)		(671,122	)
Less: Other intangibles		(13,332	)		(19,657	)		(22,466	)

Total tangible common equity	$	5,221,306		$	5,270,049		$	5,312,956

Total assets	$	75,088,659		$	74,189,163		$	65,926,000
Less: Goodwill		(712,616	)		(671,122	)		(671,122	)
Less: Other intangibles		(13,332	)		(19,657	)		(22,466	)

Total tangible assets	$	74,362,711		$	73,498,384		$	65,232,412

Tangible common equity to tangible assets		7.02	%		7.17	%		8.14	%
Common shares outstanding at end of period		79,851,169			79,841,564			84,244,235
Tangible book value per common share	$	65.39		$	66.01		$	63.07


	Quarterly average
Total stockholders’ equity [1]	$	5,961,214		$	5,769,545		$	5,540,456
Less: Preferred Stock		(22,143	)		(22,143	)		(22,143	)
Less: Goodwill		(706,101	)		(671,121	)		(671,121	)
Less: Other intangibles		(19,858	)		(20,132	)		(23,166	)

Total tangible equity	$	5,213,112		$	5,056,149		$	4,824,026
Return on average tangible common equity		15.66	%		19.44	%		14.50	%

[1]	Average balances exclude unrealized gains or losses on debt securities available-for-sale.


	Year-to-date average
Total stockholders’ equity [1]	$	5,777,652		$	5,419,938
Less: Preferred Stock		(22,143	)		(26,277	)
Less: Goodwill		(679,938	)		(671,121	)
Less: Other intangibles		(20,853	)		(25,154	)

Total tangible equity	$	5,054,718		$	4,697,386
Return on average tangible common equity		18.47	%		10.75	%

[1]	Average balances exclude unrealized gains or losses on debt securities available-for-sale.

CONTACTS:

Popular, Inc.

Investor Relations:

Paul J. Cardillo, 212-417-6721

Investor Relations Officer

pcardillo@popular.com

Media Relations:

MC González Noguera, 917-804-5253

Executive Vice President and Chief Communications & Public Affairs Officer

mc.gonzalez@popular.com