Enhanced Investments - Financial Portal

Published: 2021-10-20 00:00:00 ET

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Exhibit 99.1

LOGO

Popular, Inc. Announces Third Quarter 2021 Financial Results

•

Net income of $248.1 million in Q3 2021, compared to net income of $218.1 million in Q2 2021.

•

Net interest margin of 2.77% in Q3 2021, compared to 2.91% in Q2 2021; net interest margin on a taxable equivalent basis of 3.04% in Q3 2021, compared to 3.22% in Q2 2021.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $52.3 million from Q2 2021; NPLs to loans ratio at 2.2% vs. 2.4% in Q2 2021;

•

Net charge-offs (“NCOs”) increased by $10.1 million from Q2 2021; NCOs at 0.12% of average loans held-in-portfolio vs. (0.02%) in Q2 2021;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.49% vs. 2.70% in Q2 2021; and

•

ACL to NPLs at 113.6% vs. 114.7% in Q2 2021.

•

Common Equity Tier 1 ratio of 17.36%, Common Equity per Share of $74.66 and Tangible Book Value per Share of $66.01 at September 30, 2021.

SAN JUAN, Puerto Rico — (BUSINESS WIRE) — Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $248.1 million for the quarter ended September 30, 2021, compared to net income of $218.1 million for the quarter ended June 30, 2021.

Ignacio Alvarez, President and Chief Executive Officer, said: “The third quarter was another strong quarter. We achieved net income of $248.1 million, driven by a reserve release of $61 million. The release reflects strong credit quality performance as well as a positive economic outlook. We continued to see higher credit and debit card spending, strong auto and mortgage originations as well as higher deposits. During the quarter we also continued to return capital to our shareholders, completing our $350 million accelerated repurchase program and announcing the redemption of $187 million in high-cost trust preferred securities. On October 15, 2021 we also completed a bolt-on acquisition of a national equipment leasing platform that complements our existing healthcare lending vertical. I am extremely proud of the work our team has accomplished during 2021 as we continue to serve our clients and communities.”

Significant Events

Financial Highlights

For the third quarter of 2021, the Corporation recorded net income of $248.1 million, compared to a net income of $218.1 million for the previous quarter. The third quarter’s results include a release in the allowance for credit losses of $61.2 million driven by improving credit quality and the improved macroeconomic outlook. Net Interest income was $489.4 million, an increase of $1.6 million compared to the previous quarter, mainly due to higher average earning assets and higher income from the loans issued under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), offset in part by a lower discount amortization of purchased credit deteriorated (“PCD”) loans. Net interest margin decreased 14 basis points to 2.77%. Total assets grew by $1.5 billion from the previous quarter, reflecting an increase in deposits across various sectors, principally from the Puerto Rico public sector.

Acquisition of K2 Capital Group LLC

On October 15, 2021, Popular Equipment Finance, LLC (“PEF”), a newly-formed wholly-owned subsidiary of Popular Bank (“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 at closing of approximately $159 million in cash, representing a premium of approximately $40 million over the book value of K2’s net assets. An additional approximately $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 capital 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 $119 million in net assets that consisted mainly of capital leases. All of K2’s former employees, including its management team, became PEF employees at the closing of the transaction. The transaction will be accounted for as a business combination.

Capital Actions

Accelerated Share Repurchase

On September 9, 2021, the Corporation completed its previously announced accelerated share repurchase program for the repurchase of an aggregate $350 million of Popular’s common stock. Under the terms of the accelerated share repurchase agreement (the “ASR Agreement”), on May 4, 2021, the Corporation made an initial payment of $350 million and received an initial delivery of 3,785,831 shares of Popular’s Common Stock (the “Initial Shares”). The transaction was accounted for as a treasury stock transaction. As a result of the receipt of the Initial Shares, the Corporation recognized in shareholders’ equity approximately $280 million in treasury stock and $70 million as a reduction in capital surplus. Upon the final settlement of the ASR Agreement, the Corporation received an additional 828,965 shares and recognized $61 million as treasury stock with a corresponding increase in its capital surplus account. The Corporation repurchased a total of 4,614,796 shares at an average purchase price of $75.84 under the ASR Agreement.

Redemption of Trust Preferred Securities

On September 30, 2021, the Corporation announced that it had sent a redemption notice to The Bank of New York Mellon, the Property Trustee for Popular Capital Trust I (the “Trust”), to redeem, on November 1, 2021, all outstanding 6.70% Cumulative Monthly Income Trust Preferred Securities (the “Capital Securities”) issued by the Trust (liquidation amount of $25 per security and amounting to $186,663,800 (or $181,063,250 after excluding Popular’s participation in the Trust of $5,600,550) in the aggregate). The redemption price for the Capital Securities will be 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 intends to apply for delisting of the Popular Capital Trust I (NASDAQ: BPOPN) from the Nasdaq Global Select Market

Earnings Highlights


(Unaudited)	Quarters ended								Nine months ended
(Dollars in thousands, except per share information)	30-Sep-21			30-Jun-21			30-Sep-20		30-Sep-21			30-Sep-20
Net interest income	$	489,393		$	487,802		$	461,021	$	1,456,307		$	1,384,997
Provision for credit losses (benefit)		(61,173	)		(17,015	)		19,138		(160,414	)		271,318

Net interest income after provision for credit losses (benefit)		550,566			504,817			441,883		1,616,721			1,113,679
Other non-interest income		169,258			154,540			128,767		477,451			367,465
Operating expenses		388,168			368,185			361,066		1,131,881			1,081,905

Income before income tax		331,656			291,172			209,584		962,291			399,239
Income tax expense		83,542			73,093			41,168		233,466			68,893

Net income	$	248,114		$	218,079		$	168,416	$	728,825		$	330,346

Net income applicable to common stock	$	247,761		$	217,726		$	168,064	$	727,766		$	328,941

Net income per common share-basic	$	3.09		$	2.67		$	2.01	$	8.89		$	3.80

Net income per common share-diluted	$	3.09		$	2.66		$	2.00	$	8.87		$	3.80

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 nine months ended September 30, 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 September 30, 2021 was $489.4 million compared to $487.8 million in the previous quarter, an increase of $1.6 million. The total net impact on net interest income of the third quarter having one more day than the second quarter of 2021 is estimated at $3.8 million. Net interest income, on a taxable equivalent basis, for the third quarter of 2021 was $536.3 million, a decrease of $4.9 million when compared to $541.2 million in the second quarter of 2021. The decrease in net interest income on a taxable equivalent is related to lower exempt income mainly from mortgage-backed securities. On a taxable equivalent basis, the total net impact on net interest income of the third quarter having of one more day than the second quarter of 2021 is estimated at $4.1 million.

The net interest margin decreased 14 basis points to 2.77% compared to 2.91% in the previous quarter. The decrease in the net interest margin is due to a higher proportion of money market and investment securities, which carry a low yield, resulting from a higher volume of deposits in the quarter, lower discount amortization of PCD loans, partially offset by higher loan fees related to loans issued under the SBA PPP and a lower cost of deposits. On a taxable equivalent basis, net interest margin for the third quarter of 2021 was 3.04% compared to 3.22% in the second quarter of 2021, a decrease of 18 basis points. The main variances in net interest income on a taxable equivalent basis were:

•

Lower interest income from money market investments, trading and investment securities by $7.7 million due to lower volume and yield of mortgage-backed securities, partially offset by a higher volume of lower yielding U.S. Treasury notes

Partially offset by:

•

Higher interest income from loans by $1.5 million mainly due to the following:

•

Higher interest income from commercial loans driven by higher interest income and fees from PPP loans by $8.1 million and the impact of one more day in the quarter or $1.9 million, offset in part by a lower discount amortization on PCD loans of approximately $9.3 million; and

•

auto and lease financing continuing its positive trend increasing $147 million in average loan balances and reflecting an increase in interest income of $1.8 million. The decrease in yield of the portfolio is driven by lower amortization on a previously purchased auto loans portfolio Partially offset by:

•

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

•

lower interest income from consumer loans, mainly credit cards, due to the reversal last quarter of $1.6 million from the reserve for uncollectible interest.

•

Lower interest expense on deposits by $1.1 million resulting from a lower cost by 3 basis points driven by a higher volume of low yielding deposits, reduction of costs in several non-maturity deposit products and renewals of time deposits in a lower interest rate environment. These positive variances in deposit cost were partially offset by higher volume of interest-bearing deposits by $2.8 billion.

The Corporation recognized income of $22.0 million related to loans issued under the SBA PPP program during the third quarter, compared to $13.9 million in the previous quarter. These loans carried a yield of approximately 10.10% during this quarter, including the amortization of fee income received under the SBA PPP program, compared to 4.45% last quarter. At September 30, 2021, the Corporation had unamortized fee income related to the SBA PPP program of $40.0 million and outstanding loan balances of $669.8 million.

Net interest income for the BPPR segment amounted to $419.2 million for the quarter ended September 30, 2021, flat quarter over quarter. The net interest margin for the third quarter of 2021 was 2.75%, a decrease of 16 basis points when compared to 2.91% for the previous quarter. As discussed above, net interest margin was negatively impacted by a higher volume of money market and investment securities, lower amortization of discount on PCD loans, partially offset by higher fees resulting from the forgiveness and amortization of SBA PPP loans of approximately $8.1 million and lower deposit cost. The cost of interest-bearing deposits was 0.17%, compared to 0.18% reported in the second quarter. Total cost of deposits for the quarter was 0.13%, compared to 0.14% reported in the second quarter of 2021.

Net interest income for the PB segment was $80.0 million for the quarter ended September 30, 2021, compared to $78.7 million during the previous quarter. Net interest margin for the quarter was 3.36% higher than the 3.33% the previous quarter. The cost of interest-bearing deposits was 0.56%, compared to 0.60% in the previous quarter, decreasing for the eighth consecutive quarter. Total cost of deposits for the quarter, including demand deposits, was 0.43%, compared to 0.47% reported in the second quarter of 2021.

Non-interest income

Non-interest income increased by $14.8 million to $169.3 million for the quarter ended September 30, 2021, compared to $154.5 million for the quarter ended June 30, 2021. The variance in non-interest income was primarily driven by:

•

higher other service fees by $4.1 million mainly due to higher insurance fees by $1.6 million, higher other fees by $1.5 million mostly related to loan syndication activities and higher credit card fees by $0.7 million mainly in interchange income and late fees; and

•

higher other operating income by $10.0 million mostly due to a gain of $7.0 million recognized by BPPR as a result of the sale and partial leaseback of two corporate office buildings and higher net earnings from the combined portfolio of investments under the equity method by $3.0 million.

Refer to Table B for further details.

Operating expenses

Operating expenses for the third quarter of 2021 totaled $388.2 million, an increase of $20.0 million from the second quarter of 2021. The variance in operating expenses was driven primarily by:

•

higher personnel cost by $3.4 million due to higher salaries as a result of salary and annual merit increases granted during the quarter;

•

higher professional fees by $3.6 million mainly due to higher advisory expenses related to corporate initiatives;

•

higher business promotion expense by $1.6 million mainly due to promotional events during the quarter;

•

higher FDIC deposit insurance expense by $1.4 million mainly due to higher average total assets;

•

lower other real estate owned (OREO) net benefit by $2.6 million mainly due to lower gain on sale of mortgage properties;

•

higher credit and debit card processing, volume, interchange and other expenses by $2.0 million mainly due to higher volume of transactions; and

•

higher other operating expenses by $4.3 million due to higher printing and supplies cost by $1.1 million and lower gain on sale of repossessed auto units by $1.4 million.

Full-time equivalent employees were 8,342 as of September 30, 2021, compared to 8,439 as of June 30, 2021.

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

Income taxes

For the quarter ended September 30, 2021, the Corporation recorded an income tax expense of $83.5 million, compared to $73.1 million for the previous quarter. The increase in income tax expense was mainly attributable to higher income before tax during the third quarter of 2021 and lower exempt income. The effective tax rate (“ETR”) for the third quarter of 2021 was 25%, flat when compared with the previous quarter. The ETR of the Corporation is impacted by the composition and source of its taxable income.

Credit Quality

During the third quarter of 2021, the Corporation continued to exhibit favorable credit quality and low credit costs. Early delinquencies and NCOs, remained at relatively low levels when compared to the trend for the past 10-years, although higher than the prior quarter. We will continue to closely monitor COVID-19 pandemic related risks and the effects of the receding stimulus on economic conditions and on borrower performance. 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 third quarter of 2021:

•

At September 30, 2021, total non-performing loans held-in-portfolio decreased by $52.3 million from June 30, 2021. BPPR’s NPLs decreased by $47.9 million, driven by lower commercial and mortgage NPLs by $34.3 million and $16.1 million, respectively. The commercial NPLs decrease was mainly due to repayment activity, coupled with charge-offs of $7.6 million related to certain collateral dependent loans, while the mortgage NPLs decrease was due to lower inflows for the quarter. PB’s NPLs decreased by $4.4 million, mostly related to a $5.9 million commercial loan pay-off. At September 30, 2021, the ratio of NPLs to total loans held-in-portfolio was 2.2%, compared to 2.4% in the second quarter of 2021.

•

Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $43.7 million quarter-over-quarter. In BPPR, total inflows decreased by $37.0 million, mostly driven by lower commercial inflows of $32.2 million, as the prior quarter included the inflow of a single $32.4 million relationship. Mortgage inflows decreased by $4.8 million from the prior quarter, as inflows continue trending lower than pre-pandemic levels. NPL inflows at PB decreased by $6.6 million during the quarter, mostly due to lower commercial inflows.

•

NCOs experienced a negative variance of $10.1 million from a net recovery of $1.3 million in the second quarter of 2021 to charge-offs of $8.8 million this quarter. BPPR ‘s NCOs increased by $10.8 million, primarily driven by higher commercial NCOs by $14.2 million partially offset by lower mortgage NCOs by $3.0 million. The increase reflected in the commercial NCOs was mostly driven by two commercial loans with aggregate charge-offs of $7.6 million, combined with the effect of recoveries of $7.9 million in the prior period from the resolution of a non-performing relationship. During the third quarter of 2021, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.12%, compared to (0.02)% in the second quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios.

•

At September 30, 2021, the allowance for credit losses (“ACL”) decreased by $67.2 million, or 8.6%, from the second quarter of 2021 to $718.6 million. The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States, which continued to show a positive outlook for the economy. In BPPR, the ACL decreased by $45.1 million mainly driven by changes in the macroeconomic scenarios, particularly certain income-related variables, and credit quality. The allowance for the PB segment decreased by $22.1 million mainly driven by a reduction in the qualitative reserve for commercial real estate loans, also influenced by the changes in the macroeconomic scenarios. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.49% in the third quarter of 2021, compared to 2.70% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 113.6%, compared to 114.7% in the previous quarter.

•

Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The ACL is estimated by weighting the outputs of optimistic, baseline and pessimistic scenarios. Among the three scenarios used to estimate the ACL, the baseline is assigned the highest probability, followed by the pessimistic scenario given the uncertainties in the economic outlook and downside risk. The current baseline forecast continues to show a favorable economic scenario. The 2021 forecasted GDP growth is at 6.4% for U.S. and 3.8% for P.R., consistent with the previous 2021 forecast of 6.8% and 3.8%, respectively. The forecasted U.S. unemployment rate average for 2021 of 5.5% remained consistent with the previous estimate of 5.4%. In the case of P.R., the forecasted unemployment rate average for 2021 of 8.2% showed a slight improvement when compared to the previous forecast of 8.4%. Average unemployment rate in P.R. is expected to continue declining through 2022, which is now forecasted at 7.2%, improving from the previous forecast of 7.3%.

•

The provision for credit losses for the loan portfolios for the third quarter of 2021 reflected a benefit of $58.6 million, compared to a benefit of $17.5 million in the previous quarter, reflecting changes in the macroeconomic outlook, as well as credit quality trend. The provision for the BPPR segment was a benefit of $36.0 million, a favorable variance of $13.5 million compared to the previous quarter, while the provision expense for the PB segment was a benefit of $22.7 million, a favorable variance of $27.6 million from the previous quarter.

•

The provision for unfunded commitments for the third quarter of 2021 reflected a benefit of $1.5 million, compared to an expense of $0.4 million during the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $1.0 million, compared to an expense of $0.1 million in the second 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)	30-Sep-21			30-Jun-21			30-Sep-20
Non-performing loans held-in-portfolio	$	632,835		$	685,183		$	734,368
Non-performing loans held-for-sale		—			8,700			4,070
Other real estate owned (“OREO”)		76,828			73,272			100,592

Total non-performing assets	$	709,663		$	767,155		$	839,030

Net charge-offs (recoveries) for the quarter	$	8,823		$	(1,291	)	$	16,859

Ratios:
Loans held-in-portfolio	$	28,855,372		$	29,062,617		$	29,392,510
Non-performing loans held-in-portfolio to loans held-in-portfolio		2.19	%		2.36	%		2.50	%
Allowance for credit losses to loans held-in-portfolio		2.49			2.70			3.15
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		113.55			114.68			126.07

Refer to Table K for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios


(Unaudited)	Quarters ended								Nine months ended
(In thousands)	30-Sep-21			30-Jun-21			30-Sep-20		30-Sep-21			30-Sep-20
Provision for credit losses (benefit) - loan portfolios:
BPPR	$	(35,992	)	$	(22,488	)	$	7,682	$	(98,456	)	$	181,109
Popular U.S.		(22,653	)		4,988			11,770		(53,468	)		90,442

Total provision for credit losses (benefit) - loan portfolios	$	(58,645	)	$	(17,500	)	$	19,452	$	(151,924	)	$	271,551

Credit Quality by Segment


(Unaudited)
(In thousands)	Quarters ended
BPPR	30-Sep-21			30-Jun-21			30-Sep-20
Provision for credit losses (benefit) - loan portfolios	$	(35,992	)	$	(22,488	)	$	7,682
Net charge-offs (recoveries)		9,336			(1,483	)		13,769
Total non-performing loans held-in-portfolio		608,871			656,789			693,676
Allowance / loans held-in-portfolio		2.92	%		3.13	%		3.48	%


	Quarters ended
Popular U.S.	30-Sep-21			30-Jun-21			30-Sep-20
Provision for credit losses (benefit) - loan portfolios	$	(22,653	)	$	4,988		$	11,770
Net charge-offs (recoveries)		(513	)		192			3,090
Total non-performing loans held-in-portfolio		23,964			28,394			40,692
Allowance / loans held-in-portfolio		1.32	%		1.57	%		2.22	%

Financial Condition Highlights


(Unaudited)
(In thousands)	30-Sep-21		30-Jun-21		30-Sep-20
Cash and money market investments	$	18,065,211	$	18,333,650	$	12,425,126
Investment securities		24,697,876		22,647,401		21,478,048
Loans		28,855,372		29,062,617		29,392,510
Total assets		74,189,163		72,657,293		65,910,369
Deposits		66,013,561		64,641,776		56,021,983
Borrowings		1,263,413		1,267,545		1,407,424
Total liabilities		68,206,192		66,842,679		59,998,284
Stockholders’ equity		5,982,971		5,814,614		5,912,085

Total assets increased by $1.5 billion from the second quarter of 2021, driven by:

•

an increase of $2.1 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;

partially offset by:

•

a decrease of $0.3 billion in cash and money market investments due to purchases of debt securities available-for-sale; and

•

a decrease in loans held-in-portfolio by $0.2 billion mainly due to the forgiveness of approximately $0.4 billion in PPP loans during the quarter. Excluding the decrease in the PPP portfolio, loan balances increased by approximately $0.2 billion mainly in the commercial and auto loan portfolios in BPPR.

Total liabilities increased by $1.4 billion from the second quarter of 2021, mainly due to higher Puerto Rico public sector deposits by $0.7 billion and higher retail and commercial demand deposits by $0.5 billion at BPPR.

Stockholders’ equity increased by approximately $168.4 million from the second quarter of 2021, principally due to net income for the quarter of $248.1 million, partially offset by declared dividends of $36.3 million on common stock, $0.3 million in dividends on preferred stock and lower accumulated unrealized gains on debt securities available-for-sale by $47.0 million.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 17.36%, $74.66 and $66.01, respectively, at September 30, 2021, compared to 16.55%, $71.82 and $63.24 at June 30, 2021. Refer to Table A for capital ratios.

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 and June 30, 2021, and in our Form 10-Q for the quarter ended September 30, 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 Wednesday, October 20, 2021 at 11:00 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).

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 Wednesday, November 17, 2021. The replay dial-in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 928924.

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

Popular, Inc.

Financial Supplement to Third 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 Third Quarter 2021 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)


	Quarters ended									Nine months ended
	30-Sep-21			30-Jun-21			30-Sep-20			30-Sep-21			30-Sep-20
Basic EPS	$	3.09		$	2.67		$	2.01		$	8.89		$	3.80
Diluted EPS	$	3.09		$	2.66		$	2.00		$	8.87		$	3.80
Average common shares outstanding		80,126,166			81,609,435			83,809,272			81,864,634			86,567,680
Average common shares outstanding - assuming dilution		80,274,942			81,772,789			83,836,151			82,014,113			86,645,691
Common shares outstanding at end of period		79,841,564			80,656,480			84,219,464			79,841,564			84,219,464
Market value per common share	$	77.67		$	75.05		$	36.27		$	77.67		$	36.27
Market capitalization - (In millions)	$	6,201		$	6,053		$	3,055		$	6,201		$	3,055
Return on average assets		1.34	%		1.24	%		1.06	%		1.39	%		0.76	%
Return on average common equity		17.10	%		15.43	%		12.46	%		17.09	%		8.21	%
Net interest margin (non-taxable equivalent basis)		2.77	%		2.91	%		3.06	%		2.92	%		3.39	%
Net interest margin (taxable equivalent basis) -non-GAAP		3.04	%		3.22	%		3.37	%		3.23	%		3.72	%
Common equity per share	$	74.66		$	71.82		$	69.94		$	74.66		$	69.94
Tangible common book value per common share (non-GAAP) [1]	$	66.01		$	63.24		$	61.69		$	66.01		$	61.69
Tangible common equity to tangible assets (non-GAAP) [1]		7.17	%		7.09	%		7.97	%		7.17	%		7.97	%
Return on average tangible common equity [1]		19.44	%		17.58	%		14.32	%		19.46	%		9.44	%
Tier 1 capital		17.43	%		16.62	%		16.01	%		17.43	%		16.01	%
Total capital		19.90	%		19.09	%		18.49	%		19.90	%		18.49	%
Tier 1 leverage		7.38	%		7.34	%		7.80	%		7.38	%		7.80	%
Common Equity Tier 1 capital		17.36	%		16.55	%		15.93	%		17.36	%		15.93	%

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

POPULAR, INC.

Financial Supplement to Third Quarter 2021 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)


	Quarters ended						Variance			Quarter ended			Variance			Nine months ended
							Q3 2021						Q3 2021

(In thousands, except per share information)	30-Sep-21			30-Jun-21			vs. Q2 2021			30-Sep-20			vs. Q3 2020			30-Sep-21			30-Sep-20
Interest income:
Loans	$	435,296		$	433,781		$	1,515		$	431,286		$	4,010		$	1,303,726		$	1,311,402
Money market investments		6,914			4,274			2,640			2,773			4,141			14,300			16,788
Investment securities		87,952			91,706			(3,754	)		79,142			8,810			265,348			243,938

Total interest income		530,162			529,761			401			513,201			16,961			1,583,374			1,572,128

Interest expense:
Deposits		27,029			28,060			(1,031	)		37,554			(10,525	)		85,290			142,435
Short-term borrowings		54			62			(8	)		416			(362	)		259			2,109
Long-term debt		13,686			13,837			(151	)		14,210			(524	)		41,518			42,587

Total interest expense		40,769			41,959			(1,190	)		52,180			(11,411	)		127,067			187,131

Net interest income		489,393			487,802			1,591			461,021			28,372			1,456,307			1,384,997
Provision for credit losses (benefit)		(61,173	)		(17,015	)		(44,158	)		19,138			(80,311	)		(160,414	)		271,318

Net interest income after provision for credit losses (benefit)		550,566			504,817			45,749			441,883			108,683			1,616,721			1,113,679

Service charges on deposit accounts		41,312			40,153			1,159			36,849			4,463			121,085			108,671
Other service fees		80,445			76,382			4,063			69,879			10,566			227,455			186,736
Mortgage banking activities		8,307			7,448			859			(9,526	)		17,833			33,098			671
Net gain on sale of debt securities		23			—			23			41			(18	)		23			41
Net (loss) gain, including impairment, on equity securities		(401	)		1,565			(1,966	)		5,150			(5,551	)		1,585			4,869
Net profit (loss) on trading account debt securities		58			(47	)		105			20			38			(34	)		593
Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale		—			(73	)		73			(2,198	)		2,198			(73	)		981
Adjustments (expense) to indemnity reserves on loans sold		2,038			1,668			370			4,183			(2,145	)		3,008			(1,770	)
Other operating income		37,476			27,444			10,032			24,369			13,107			91,304			66,673

Total non-interest income		169,258			154,540			14,718			128,767			40,491			477,451			367,465

Operating expenses:
Personnel costs
Salaries		95,185			90,294			4,891			91,891			3,294			274,814			278,116
Commissions, incentives and other bonuses		25,892			26,374			(482	)		17,849			8,043			85,484			59,183
Pension, postretirement and medical insurance		13,893			13,289			604			10,639			3,254			38,106			31,669
Other personnel costs, including payroll taxes		22,677			24,247			(1,570	)		15,562			7,115			72,926			52,970

Total personnel costs		157,647			154,204			3,443			135,941			21,706			471,330			421,938
Net occupancy expenses		24,896			24,562			334			25,907			(1,011	)		75,471			76,552
Equipment expenses		22,537			22,805			(268	)		24,088			(1,551	)		66,917			66,537
Other taxes		14,459			13,205			1,254			13,918			541			41,623			40,922
Professional fees
Collections, appraisals and other credit related fees		3,166			3,486			(320	)		2,862			304			9,972			9,640
Programming, processing and other technology services		69,221			67,152			2,069			64,876			4,345			202,739			187,082
Legal fees, excluding collections		2,535			2,367			168			2,707			(172	)		7,267			7,877
Other professional fees		29,787			28,148			1,639			26,029			3,758			85,832			85,493

Total professional fees		104,709			101,153			3,556			96,474			8,235			305,810			290,092
Communications		6,133			6,005			128			5,694			439			18,971			17,222
Business promotion		18,116			16,511			1,605			14,664			3,452			47,148			41,142
FDIC deposit insurance		7,181			5,742			1,439			6,568			613			18,891			16,988
Other real estate owned (OREO) (income) expenses		(1,722	)		(4,299	)		2,577			(1,615	)		(107	)		(10,554	)		520
Credit and debit card processing, volume, interchange and other expenses		12,960			10,917			2,043			11,744			1,216			36,331			31,899
Other operating expenses


Operational losses		7,147		6,528		619			8,837		(1,690	)		21,571		21,339
All other		13,322		9,597		3,725			17,770		(4,448	)		35,283		51,409

Total other operating expenses		20,469		16,125		4,344			26,607		(6,138	)		56,854		72,748
Amortization of intangibles		783		1,255		(472	)		1,076		(293	)		3,089		5,345

Total operating expenses		388,168		368,185		19,983			361,066		27,102			1,131,881		1,081,905

Income before income tax		331,656		291,172		40,484			209,584		122,072			962,291		399,239
Income tax expense		83,542		73,093		10,449			41,168		42,374			233,466		68,893

Net income	$	248,114	$	218,079	$	30,035		$	168,416	$	79,698		$	728,825	$	330,346

Net income applicable to common stock	$	247,761	$	217,726	$	30,035		$	168,064	$	79,697		$	727,766	$	328,941

Net income per common share - basic	$	3.09	$	2.67	$	0.42		$	2.01	$	1.08		$	8.89	$	3.80

Net income per common share - diluted	$	3.09	$	2.66	$	0.43		$	2.00	$	1.09		$	8.87	$	3.80

Dividends Declared per Common Share	$	0.45	$	0.45	$	—		$	0.40	$	0.05		$	1.30	$	1.20

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)


										Variance
										Q3 2021 vs.
(In thousands)	30-Sep-21			30-Jun-21			30-Sep-20			Q2 2021
Assets:
Cash and due from banks	$	538,973		$	530,849		$	565,202		$	8,124
Money market investments		17,526,238			17,802,801			11,859,924			(276,563	)
Trading account debt securities, at fair value		36,064			35,931			33,053			133
Debt securities available-for-sale, at fair value		24,391,226			22,335,167			21,177,839			2,056,059
Debt securities held-to-maturity, at amortized cost		85,655			88,801			93,163			(3,146	)
Less: Allowance for credit losses		9,222			10,214			12,421			(992	)

Total debt securities held-to-maturity, net		76,433			78,587			80,742			(2,154	)

Equity securities		184,931			187,502			173,993			(2,571	)
Loans held-for-sale, at lower of cost or fair value		91,313			85,315			102,760			5,998
Loans held-in-portfolio		29,089,241			29,286,225			29,586,348			(196,984	)
Less: Unearned income		233,869			223,608			193,838			10,261
Allowance for credit losses		718,575			785,790			925,850			(67,215	)

Total loans held-in-portfolio, net		28,136,797			28,276,827			28,466,660			(140,030	)

Premises and equipment, net		487,526			486,443			510,473			1,083
Other real estate		76,828			73,272			100,592			3,556
Accrued income receivable		200,649			203,419			204,233			(2,770	)
Mortgage servicing rights, at fair value		116,567			119,467			123,552			(2,900	)
Other assets		1,634,839			1,750,151			1,816,706			(115,312	)
Goodwill		671,122			671,122			671,122			—
Other intangible assets		19,657			20,440			23,518			(783	)

Total assets	$	74,189,163		$	72,657,293		$	65,910,369		$	1,531,870

Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing	$	15,147,567		$	14,920,887		$	13,546,432		$	226,680
Interest bearing		50,865,994			49,720,889			42,475,551			1,145,105

Total deposits		66,013,561			64,641,776			56,021,983			1,371,785

Assets sold under agreements to repurchase		86,470			90,925			106,028			(4,455	)
Other short-term borrowings		—			—			100,000			—
Notes payable		1,176,943			1,176,620			1,201,396			323
Other liabilities		929,218			933,358			2,568,877			(4,140	)

Total liabilities		68,206,192			66,842,679			59,998,284			1,363,513

Stockholders’ equity:
Preferred stock		22,143			22,143			22,143			—
Common stock		1,046			1,045			1,045			1
Surplus		4,569,641			4,506,659			4,521,689			62,982
Retained earnings		2,882,340			2,670,885			2,168,153			211,455
Treasury stock		(1,352,104	)		(1,290,427	)		(1,016,361	)		(61,677	)
Accumulated other comprehensive (loss) income, net of tax		(140,095	)		(95,691	)		215,416			(44,404	)

Total stockholders’ equity		5,982,971			5,814,614			5,912,085			168,357

Total liabilities and stockholders’ equity	$	74,189,163		$	72,657,293		$	65,910,369		$	1,531,870

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

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

(Unaudited)


	Quarters ended																								Variance
	30-Sep-21								30-Jun-21								30-Sep-20								Q3 2021 vs. Q2 2021									Q3 2021 vs. Q3 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	$	41,279		$	129.8		1.25	%	$	38,136		$	137.5		1.44	%	$	31,337		$	117.5		1.49	%	$	3,143		($	7.7	)		(0.19	)%	$	9,942		$	12.3			(0.24	)%

Loans:
Commercial		13,265			179.2		5.36			13,539			176.9		5.24			13,669			170.1		4.95			(274	)		2.3			0.12			(404	)		9.1			0.41
Construction		854			11.6		5.40			858			11.6		5.43			930			13.3		5.67			(4	)		—			(0.03	)		(76	)		(1.7	)		(0.27	)
Mortgage		7,652			97.8		5.11			7,765			99.4		5.12			7,094			95.8		5.40			(113	)		(1.6	)		(0.01	)		558			2.0			(0.29	)
Consumer		2,435			67.7		11.03			2,431			68.7		11.34			2,722			76.7		11.21			4			(1.0	)		(0.31	)		(287	)		(9.0	)		(0.18	)
Auto		3,372			71.2		8.37			3,280			70.1		8.58			3,006			68.6		9.08			92			1.1			(0.21	)		366			2.6			(0.71	)
Lease financing		1,317			19.7		5.99			1,262			19.0		6.01			1,122			17.1		6.08			55			0.7			(0.02	)		195			2.6			(0.09	)

Total loans		28,895			447.2		6.15			29,135			445.7		6.13			28,543			441.6		6.16			(240	)		1.5			0.02			352			5.6			(0.01	)

Total interest earning assets	$	70,174		$	577.0		3.27	%	$	67,271		$	583.2		3.47	%	$	59,880		$	559.1		3.72	%	$	2,903		$	(6.2	)		(0.20	)%	$	10,294		$	17.9			(0.45	)%

Allowance for credit losses - loan portfolio		(778	)							(801	)							(923	)							23									145
Allowance for credit losses - investment securities		(10	)							(10	)							(13	)							—									3
Other non-interest earning assets		3,901								3,906								4,176								(5	)								(275	)

Total average assets	$	73,287							$	70,366							$	63,120							$	2,921								$	10,167

Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market	$	27,773		$	7.9		0.11	%	$	25,102		$	8.0		0.13	%	$	21,225		$	9.1		0.17	%	$	2,671		$	(0.1	)		(0.02	)%	$	6,548		$	(1.2	)		(0.06	)%
Savings		15,621			6.4		0.16			15,384			6.9		0.18			13,103			8.3		0.25			237			(0.5	)		(0.02	)		2,518			(1.9	)		(0.09	)
Time deposits		6,957			12.7		0.73			7,104			13.2		0.74			7,810			20.2		1.03			(147	)		(0.5	)		(0.01	)		(853	)		(7.5	)		(0.30	)

Total interest-bearing deposits		50,351			27.0		0.21			47,590			28.1		0.24			42,138			37.6		0.35			2,761			(1.1	)		(0.03	)		8,213			(10.6	)		(0.14	)
Borrowings		1,284			13.7		4.28			1,316			13.9		4.24			1,358			14.6		4.31			(32	)		(0.2	)		0.04			(74	)		(0.9	)		(0.03	)

Total interest-bearing liabilities		51,635			40.7		0.31			48,906			42.0		0.34			43,496			52.2		0.48			2,729			(1.3	)		(0.03	)		8,139			(11.5	)		(0.17	)

Net interest spread							2.96	%							3.13	%							3.24	%								(0.17	)%								(0.28	)%

Non-interest bearing deposits		14,955								14,920								12,806								35									2,149
Other liabilities		927								857								1,435								70									(508	)
Stockholders’ equity		5,770								5,683								5,383								87									387

Total average liabilities and stockholders’ equity	$	73,287							$	70,366							$	63,120							$	2,921								$	10,167

Net interest income / margin on a taxable equivalent basis (Non-GAAP)				$	536.3		3.04	%				$	541.2		3.22	%				$	506.9		3.37	%				($	4.9	)		(0.18	)%				$	29.4			(0.33	)%
Taxable equivalent adjustment					46.9								53.4								45.8								(6.5	)								1.1

Net interest income / margin non-taxable equivalent basis (GAAP)				$	489.4		2.77	%				$	487.8		2.91	%				$	461.0		3.06	%				$	1.6			(0.14	)%				$	28.3			(0.29	)%

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

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

(Unaudited)


	Nine months ended
	30-Sep-21								30-Sep-20								Variance
($ amounts in millions)	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	$	37,751		$	399.8		1.42	%	$	26,497		$	364.7		1.84	%	$	11,254		$	35.1			(0.42	)%

Loans:
Commercial		13,475			535.1		5.32			13,122			522.1		5.31			353			13.0			0.01
Construction		874			35.1		5.39			909			39.6		5.83			(35	)		(4.5	)		(0.44	)
Mortgage		7,761			295.6		5.08			7,054			281.2		5.32			707			14.4			(0.24	)
Consumer		2,460			206.9		11.24			2,916			248.9		11.43			(456	)		(42.0	)		(0.19	)
Auto		3,285			209.5		8.55			2,985			202.4		9.06			300			7.1			(0.51	)
Lease financing		1,265			57.1		6.01			1,092			49.5		6.04			173			7.6			(0.03	)

Total loans		29,120			1,339.3		6.16			28,078			1,343.7		6.39			1,042			(4.4	)		(0.23	)

Total interest earning assets	$	66,871		$	1,739.1		3.48	%	$	54,575		$	1,708.4		4.18	%	$	12,296		$	30.7			(0.70	)%

Allowance for credit losses - loan portfolio		(822	)							(886	)							64
Allowance for credit losses - investment securities		(10	)							(13	)							3
Other non-interest earning assets		3,900								4,100								(200	)

Total average assets	$	69,939							$	57,776							$	12,163

Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market	$	25,201		$	24.2		0.13	%	$	18,956		$	45.9		0.32	%	$	6,245		($	21.7	)		(0.19	)%
Savings		15,127			20.3		0.18			11,899			30.2		0.34			3,228			(9.9	)		(0.16	)
Time deposits		7,108			40.8		0.77			8,076			66.3		1.10			(968	)		(25.5	)		(0.33	)

Total interest-bearing deposits		47,436			85.3		0.24			38,931			142.4		0.49			8,505			(57.1	)		(0.25	)
Borrowings		1,315			41.8		4.25			1,340			44.7		4.45			(25	)		(2.9	)		(0.20	)

Total interest-bearing liabilities		48,751			127.1		0.35			40,271			187.1		0.62			8,480			(60.0	)		(0.27	)

Net interest spread							3.13	%							3.56	%								(0.43	)%

Non-interest bearing deposits		14,428								10,945								3,483
Other liabilities		1,044								1,180								(136	)
Stockholders’ equity		5,716								5,380								336

Total average liabilities and stockholders’ equity	$	69,939							$	57,776							$	12,163

Net interest income / margin on a taxable equivalent basis (Non-GAAP)				$	1,612.0		3.23	%				$	1,521.3		3.72	%				$	90.7			(0.49	)%
Taxable equivalent adjustment					155.7								136.3								19.4

Net interest income / margin non-taxable equivalent basis (GAAP)				$	1,456.3		2.92	%				$	1,385.0		3.39	%				$	71.3			(0.47	)%

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)

Mortgage Banking Activities


	Quarters ended									Variance						Nine months ended						Variance
(In thousands)	30-Sep-21			30-Jun-21			30-Sep-20			Q3 2021 vs.Q2 2021			Q3 2021 vs.Q3 2020			30-Sep-21			30-Sep-20			2021 vs. 2020
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees	$	9,376		$	9,522		$	12,966		$	(146	)	$	(3,590	)	$	28,613		$	32,992		$	(4,379	)
Mortgage servicing rights fair value adjustments		(5,979	)		(6,239	)		(20,491	)		260			14,512			(11,706	)		(33,360	)		21,654

Total mortgage servicing fees, net of fair value adjustments		3,397			3,283			(7,525	)		114			10,922			16,907			(368	)		17,275

Net gain on sale of loans, including valuation on loans held-for-sale		6,084			5,197			10,916			887			(4,832	)		16,256			20,389			(4,133	)

Trading account (loss) profit:
Unrealized losses on outstanding derivative positions		—			—			(4	)		—			4			—			(4	)		4
Realized (losses) gains on closed derivative positions		(1,004	)		(866	)		(1,958	)		(138	)		954			632			(8,391	)		9,023

Total trading account (loss) profit		(1,004	)		(866	)		(1,962	)		(138	)		958			632			(8,395	)		9,027

Losses on repurchased loans, including interest advances		(170	)		(166	)		(10,955	)		(4	)		10,785			(697	)		(10,955	)		10,258

Total mortgage banking activities	$	8,307		$	7,448		$	(9,526	)	$	859		$	17,833		$	33,098		$	671		$	32,427

Other Service Fees


	Quarters ended						Variance					Nine months ended				Variance
(In thousands)	30-Sep-21		30-Jun-21		30-Sep-20		Q3 2021 vs.Q2 2021			Q3 2021 vs.Q3 2020		30-Sep-21		30-Sep-20		2021 vs. 2020
Other service fees:
Debit card fees	$	12,210	$	12,458	$	11,123	$	(248	)	$	1,087	$	36,245	$	28,442	$	7,803
Insurance fees		14,385		12,773		13,941		1,612			444		39,986		38,211		1,775
Credit card fees		33,409		32,726		27,077		683			6,332		94,826		68,025		26,801
Sale and administration of investment products		6,216		5,970		5,094		246			1,122		17,726		16,267		1,459
Trust fees		6,453		6,165		4,886		288			1,567		18,460		15,692		2,768
Other fees		7,772		6,290		7,758		1,482			14		20,212		20,099		113

Total other service fees	$	80,445	$	76,382	$	69,879	$	4,063		$	10,566	$	227,455	$	186,736	$	40,719

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table G - Loans and Deposits

(Unaudited)

Loans - Ending Balances


							Variance
(In thousands)	30-Sep-21		30-Jun-21		30-Sep-20		Q3 2021 vs.Q2 2021			Q3 2021 vs.Q3 2020
Loans held-in-portfolio:
Commercial	$	13,303,671	$	13,437,932	$	13,620,069	$	(134,261	)	$	(316,398	)
Construction		801,040		865,113		943,747		(64,073	)		(142,707	)
Lease financing		1,348,679		1,297,928		1,153,108		50,751			195,571
Mortgage		7,539,152		7,678,478		7,924,441		(139,326	)		(385,289	)
Auto		3,376,694		3,289,027		3,045,453		87,667			331,241
Consumer		2,486,136		2,494,139		2,705,692		(8,003	)		(219,556	)

Total loans held-in-portfolio	$	28,855,372	$	29,062,617	$	29,392,510	$	(207,245	)	$	(537,138	)

Loans held-for-sale:
Commercial	$	—	$	1,700	$	4,070	$	(1,700	)	$	(4,070	)
Construction		—		7,000		—		(7,000	)		—
Mortgage		91,313		76,615		98,690		14,698			(7,377	)

Total loans held-for-sale	$	91,313	$	85,315	$	102,760	$	5,998		$	(11,447	)

Total loans	$	28,946,685	$	29,147,932	$	29,495,270	$	(201,247	)	$	(548,585	)

Deposits - Ending Balances


							Variance
(In thousands)	30-Sep-21		30-Jun-21		30-Sep-20		Q3 2021 vs. Q2 2021			Q3 2021 vs. Q3 2020
Demand deposits [1]	$	25,495,481	$	24,497,918	$	22,929,040	$	997,563		$	2,566,441
Savings, NOW and money market deposits (non-brokered)		32,867,805		32,452,829		24,696,244		414,976			8,171,561
Savings, NOW and money market deposits (brokered)		718,155		683,021		551,770		35,134			166,385
Time deposits (non-brokered)		6,906,509		6,979,349		7,664,361		(72,840	)		(757,852	)
Time deposits (brokered CDs)		25,611		28,659		180,568		(3,048	)		(154,957	)

Total deposits	$	66,013,561	$	64,641,776	$	56,021,983	$	1,371,785		$	9,991,578

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

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)


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


30-Jun-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	$	128	$	—	$	397	$	525	$	151,258	$	151,783	$	397	$	—
Commercial real estate:
Non-owner occupied		32,749		—		72,378		105,127		1,888,302		1,993,429		72,378		—
Owner occupied		3,995		604		79,808		84,407		1,380,022		1,464,429		79,808		—
Commercial and industrial		2,314		682		65,727		68,723		3,952,675		4,021,398		65,120		607
Construction		—		3,080		14,877		17,957		124,990		142,947		14,877		—
Mortgage		164,779		73,492		995,175		1,233,446		5,281,711		6,515,157		370,653		624,522
Leasing		6,054		2,103		2,286		10,443		1,287,485		1,297,928		2,286		—
Consumer:
Credit cards		4,371		2,826		8,021		15,218		864,912		880,130		—		8,021
Home equity lines of credit		—		—		—		—		3,489		3,489		—		—
Personal		9,405		4,444		23,861		37,710		1,227,582		1,265,292		23,861		—
Auto		39,032		7,405		13,286		59,723		3,229,304		3,289,027		13,286		—
Other		214		97		14,288		14,599		108,427		123,026		14,123		165

Total	$	263,041	$	94,733	$	1,290,104	$	1,647,878	$	19,500,157	$	21,148,035	$	656,789	$	633,315


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	$	264		$	—		$	(1	)	$	263		$	(1,619	)	$	(1,356	)	$	(1	)	$	—
Commercial real estate:
Non-owner occupied		(32,088	)		17,383			(12,235	)		(26,940	)		380,139			353,199			(12,235	)		—
Owner occupied		(1,276	)		10			(7,945	)		(9,211	)		14,481			5,270			(7,945	)		—
Commercial and industrial		(673	)		(106	)		(14,271	)		(15,050	)		(334,409	)		(349,459	)		(14,128	)		(143	)
Construction		—			(3,080	)		—			(3,080	)		(12,388	)		(15,468	)		—			—
Mortgage		33,176			2,853			(98,967	)		(62,938	)		(77,170	)		(140,108	)		(16,098	)		(82,869	)
Leasing		2,139			(134	)		256			2,261			48,490			50,751			256			—
Consumer:
Credit cards		840			841			(463	)		1,218			5,227			6,445			—			(463	)
Home equity lines of credit		46			—			—			46			18			64			—			—
Personal		(76	)		1,510			(2,215	)		(781	)		10,866			10,085			(2,215	)		—
Auto		13,454			4,258			4,059			21,771			65,896			87,667			4,059			—
Other		179			(21	)		333			491			65			556			389			(56	)

Total	$	15,985		$	23,514		$	(131,449	)	$	(91,950	)	$	99,596		$	7,646		$	(47,918	)	$	(83,531	)

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

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

(Unaudited)


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


June 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	$	—	$	—	$	5,949	$	5,949	$	1,733,104	$	1,739,053	$	5,949	$	—
Commercial real estate:
Non-owner occupied		—		—		374		374		2,131,860		2,132,234		374		—
Owner occupied		907		639		193		1,739		338,445		340,184		193		—
Commercial and industrial		3,070		509		1,346		4,925		1,590,497		1,595,422		1,346		—
Construction		—		—		—		—		722,166		722,166		—		—
Mortgage		2,498		5,005		13,323		20,826		1,142,495		1,163,321		13,323		—
Consumer:
Credit cards		—		—		—		—		31		31		—		—
Home equity lines of credit		501		210		6,377		7,088		74,850		81,938		6,377		—
Personal		572		579		832		1,983		135,014		136,997		832		—
Other		—		—		—		—		3,236		3,236		—		—

Total	$	7,548	$	6,942	$	28,394	$	42,884	$	7,871,698	$	7,914,582	$	28,394	$	—


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	$	—		$	22,171		$	(5,949	)	$	16,222		$	(23,596	)	$	(7,374	)	$	(5,949	)	$	—
Commercial real estate:
Non-owner occupied		2,569			4,632			—			7,201			(102,346	)		(95,145	)		—			—
Owner occupied		251			(639	)		793			405			4,985			5,390			793			—
Commercial and industrial		(2,266	)		(508	)		82			(2,692	)		(42,094	)		(44,786	)		81			1
Construction		14,978			—			—			14,978			(63,583	)		(48,605	)		—			—
Mortgage		(1,129	)		(2,172	)		1,165			(2,136	)		2,918			782			1,165			—
Consumer:
Credit cards		—			—			—			—			(5	)		(5	)		—			—
Home equity lines of credit		189			(134	)		(436	)		(381	)		(1,808	)		(2,189	)		(436	)		—
Personal		16			(35	)		(84	)		(103	)		(23,416	)		(23,519	)		(84	)		—
Other		16			—			—			16			544			560			—			—

Total	$	14,624		$	23,315		$	(4,429	)	$	33,510		$	(248,401	)	$	(214,891	)	$	(4,430	)	$	1

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)


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


30-Jun-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	$	128	$	—	$	6,346	$	6,474	$	1,884,362	$	1,890,836	$	6,346	$	—
Commercial real estate:
Non-owner occupied		32,749		—		72,752		105,501		4,020,162		4,125,663		72,752		—
Owner occupied		4,902		1,243		80,001		86,146		1,718,467		1,804,613		80,001		—
Commercial and industrial		5,384		1,191		67,073		73,648		5,543,172		5,616,820		66,466		607
Construction		—		3,080		14,877		17,957		847,156		865,113		14,877		—
Mortgage		167,277		78,497		1,008,498		1,254,272		6,424,206		7,678,478		383,976		624,522
Leasing		6,054		2,103		2,286		10,443		1,287,485		1,297,928		2,286		—
Consumer:
Credit cards		4,371		2,826		8,021		15,218		864,943		880,161		—		8,021
Home equity lines of credit		501		210		6,377		7,088		78,339		85,427		6,377		—
Personal		9,977		5,023		24,693		39,693		1,362,596		1,402,289		24,693		—
Auto		39,032		7,405		13,286		59,723		3,229,304		3,289,027		13,286		—
Other		214		97		14,288		14,599		111,663		126,262		14,123		165

Total	$	270,589	$	101,675	$	1,318,498	$	1,690,762	$	27,371,855	$	29,062,617	$	685,183	$	633,315


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	$	264		$	22,171		$	(5,950	)	$	16,485		$	(25,215	)	$	(8,730	)	$	(5,950	)	$	—
Commercial real estate:
Non-owner occupied		(29,519	)		22,015			(12,235	)		(19,739	)		277,793			258,054			(12,235	)		—
Owner occupied		(1,025	)		(629	)		(7,152	)		(8,806	)		19,466			10,660			(7,152	)		—
Commercial and industrial		(2,939	)		(614	)		(14,189	)		(17,742	)		(376,503	)		(394,245	)		(14,047	)		(142	)
Construction		14,978			(3,080	)		—			11,898			(75,971	)		(64,073	)		—			—
Mortgage		32,047			681			(97,802	)		(65,074	)		(74,252	)		(139,326	)		(14,933	)		(82,869	)
Leasing		2,139			(134	)		256			2,261			48,490			50,751			256			—
Consumer:
Credit cards		840			841			(463	)		1,218			5,222			6,440			—			(463	)
Home equity lines of credit		235			(134	)		(436	)		(335	)		(1,790	)		(2,125	)		(436	)		—
Personal		(60	)		1,475			(2,299	)		(884	)		(12,550	)		(13,434	)		(2,299	)		—
Auto		13,454			4,258			4,059			21,771			65,896			87,667			4,059			—
Other		195			(21	)		333			507			609			1,116			389			(56	)

Total	$	30,609		$	46,829		$	(135,878	)	$	(58,440	)	$	(148,805	)	$	(207,245	)	$	(52,348	)	$	(83,530	)

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table K - Non-Performing Assets

(Unaudited)


																			Variance
(Dollars in thousands)	30-Sep-21			As a % of loans HIP by category			30-Jun-21			As a % of loans HIP by category			30-Sep-20			As a % of loans HIP by category			Q3 2021 vs. Q2 2021			Q3 2021 vs. Q3 2020
Non-accrual loans:
Commercial	$	186,181			1.4	%	$	225,565			1.7	%	$	249,738			1.8	%	$	(39,384	)	$	(63,557	)
Construction		14,877			1.9			14,877			1.7			30,583			3.2			—			(15,706	)
Lease financing		2,542			0.2			2,286			0.2			3,217			0.3			256			(675	)
Mortgage		369,043			4.9			383,976			5.0			384,544			4.9			(14,933	)		(15,501	)
Auto		17,345			0.5			13,286			0.4			13,454			0.4			4,059			3,891
Consumer		42,847			1.7			45,193			1.8			52,832			2.0			(2,346	)		(9,985	)

Total non-performing loans held-in-portfolio		632,835			2.2	%		685,183			2.4	%		734,368			2.5	%		(52,348	)		(101,533	)
Non-performing loans held-for-sale [1]		—						8,700						4,070						(8,700	)		(4,070	)
Other real estate owned (“OREO”)		76,828						73,272						100,592						3,556			(23,764	)

Total non-performing assets	$	709,663					$	767,155					$	839,030					$	(57,492	)	$	(129,367	)

Accruing loans past due 90 days or more [2]	$	549,785					$	633,315					$	1,212,947					$	(83,530	)	$	(663,162	)

Ratios:
Non-performing assets to total assets		0.96	%					1.06	%					1.27	%
Non-performing loans held-in-portfolio to loans held-in-portfolio		2.19						2.36						2.50
Allowance for credit losses to loans held-in-portfolio		2.49						2.70						3.15
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		113.55						114.68						126.07

[1]	There were no non-performing loans held-for-sale as of September 30, 2021 (June 30, 2021 - $7 million in construction loans and $2 million commercial loans; September 30, 2020 - $4 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 $12 million at September 30, 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 (June 30, 2021 - $15 million; September 30, 2020 - $161 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. While the borrowers for our serviced GNMA portfolio benefited from the moratorium, the delinquency status of these loans continued to be reported to GNMA without considering the moratorium. These balances include $350 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of September 30, 2021 (June 30, 2021 - $363 million; September 30, 2020 - $318 million). Furthermore, the Corporation has approximately $53 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 (June 30, 2021 - $56 million; September 30, 2020 - $60 million).

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio:


	Quarter ended 30-Sep-21									Quarter ended 30-Jun-21
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	217,703		$	7,862		$	225,565		$	200,863		$	1,907		$	202,770
Plus:
New non-performing loans		7,454			1,039			8,493			39,657			7,570			47,227
Advances on existing non-performing loans		—			10			10			—			1			1
Less:
Non-performing loans transferred to OREO		(2,069	)		—			(2,069	)		(2,346	)		—			(2,346	)
Non-performing loans charged-off		(8,617	)		—			(8,617	)		(1,515	)		(624	)		(2,139	)
Loans returned to accrual status / loan collections		(31,077	)		(6,124	)		(37,201	)		(18,956	)		(992	)		(19,948	)

Ending balance NPLs	$	183,394		$	2,787		$	186,181		$	217,703		$	7,862		$	225,565

Construction loans held-in-portfolio:
	Quarter ended 30-Sep-21									Quarter ended 30-Jun-21
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	14,877		$	—		$	14,877		$	14,877		$	7,523		$	22,400
Less:
Non-performing loans charged-off		—			—			—			—			(523	)		(523	)
Loans transferred to held-for-sale		—			—			—			—			(7,000	)		(7,000	)

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

Mortgage loans held-in-portfolio:
	Quarter ended 30-Sep-21									Quarter ended 30-Jun-21
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	370,653		$	13,323		$	383,976		$	390,781		$	14,793		$	405,574
Plus:
New non-performing loans		38,606			4,662			43,268			43,432			4,774			48,206
Advances on existing non-performing loans		—			2			2			—			11			11
Less:
Non-performing loans transferred to OREO		(8,984	)		—			(8,984	)		(8,257	)		—			(8,257	)
Non-performing loans charged-off		(1,023	)		—			(1,023	)		(4,297	)		—			(4,297	)
Loans returned to accrual status / loan collections		(44,697	)		(3,499	)		(48,196	)		(51,006	)		(6,255	)		(57,261	)

Ending balance NPLs	$	354,555		$	14,488		$	369,043		$	370,653		$	13,323		$	383,976

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


	Quarter ended 30-Sep-21									Quarter ended 30-Jun-21
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	603,233		$	21,185		$	624,418		$	606,521		$	24,223		$	630,744
Plus:
New non-performing loans		46,060			5,701			51,761			83,089			12,344			95,433
Advances on existing non-performing loans		—			12			12			—			12			12
Less:
Non-performing loans transferred to OREO		(11,053	)		—			(11,053	)		(10,603	)		—			(10,603	)
Non-performing loans charged-off		(9,640	)		—			(9,640	)		(5,812	)		(1,147	)		(6,959	)
Loans returned to accrual status / loan collections		(75,774	)		(9,623	)		(85,397	)		(69,962	)		(7,247	)		(77,209	)
Loans transferred to held-for-sale		—			—			—			—			(7,000	)		(7,000	)

Ending balance NPLs	$	552,826		$	17,275		$	570,101		$	603,233		$	21,185		$	624,418

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

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

(Unaudited)


	Quarters ended
(Dollars in thousands)	30-Sep-21			30-Jun-21			30-Sep-20
Balance at beginning of period - loans held-in-portfolio	$	785,790		$	800,797		$	918,434
Provision for credit losses (benefit)		(58,645	)		(17,500	)		19,452
Initial allowance for credit losses - PCD Loans		253			1,202			4,823

		727,398			784,499			942,709

Net loans charged-off (recovered):
BPPR
Commercial		4,357			(9,877	)		(1,959	)
Construction		(2,223	)		(479	)		(156	)
Lease financing		304			393			(329	)
Mortgage		(2,111	)		935			1,964
Consumer		9,009			7,545			14,249

Total BPPR		9,336			(1,483	)		13,769

Popular U.S.
Commercial		(463	)		(413	)		309
Construction		—			93			—
Mortgage		(48	)		(423	)		(5	)
Consumer		(2	)		935			2,786

Total Popular U.S.		(513	)		192			3,090

Total loans charged-off (recovered) - Popular, Inc.		8,823			(1,291	)		16,859

Balance at end of period - loans held-in-portfolio	$	718,575		$	785,790		$	925,850

Balance at beginning of period - unfunded commitments	$	9,936		$	9,569		$	6,717
Provision for credit losses (benefit)		(1,536	)		367			6,578

Balance at end of period - unfunded commitments [1]	$	8,400		$	9,936		$	13,295

POPULAR, INC.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.12	%		(0.02	)%		0.24	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M.			N.M.			115.38	%
BPPR
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.18	%		(0.03	)%		0.26	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M.			N.M.			55.79	%
Popular U.S.
Annualized net charge-offs to average loans held-in-portfolio		(0.03	)%		0.01	%		0.16	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M.			N.M.			380.91	%

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 Third Quarter 2021 Earnings Release

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

(Unaudited)


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	%


30-Jun-21
(Dollars in thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL	$	271,144		$	11,256		$	182,619		$	17,551		$	303,220		$	785,790
Total loans held-in-portfolio	$	13,437,932		$	865,113		$	7,678,478		$	1,297,928		$	5,783,166		$	29,062,617

ACL to loans held-in-portfolio		2.02	%		1.30	%		2.38	%		1.35	%		5.24	%		2.70	%


Variance
(Dollars in thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL	$	(36,330	)	$	(1,406	)	$	(12,241	)	$	(5,917	)	$	(11,321	)	$	(67,215	)
Total loans held-in-portfolio	$	(134,261	)	$	(64,073	)	$	(139,326	)	$	50,751		$	79,664		$	(207,245	)

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

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

(Unaudited)


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	%


30-Jun-21
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	186,784		$	1,220		$	166,808		$	17,551		$	289,490		$	661,853
Loans held-in-portfolio	$	7,631,039		$	142,947		$	6,515,157		$	1,297,928		$	5,560,964		$	21,148,035

ACL to loans held-in-portfolio		2.45	%		0.85	%		2.56	%		1.35	%		5.21	%		3.13	%


Variance
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	(18,280	)	$	691		$	(11,746	)	$	(5,917	)	$	(9,823	)	$	(45,075	)
Loans held-in-portfolio	$	7,654		$	(15,468	)	$	(140,108	)	$	50,751		$	104,817		$	7,646

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

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

(Unaudited)


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	%


30-Jun-21
Popular U.S.
(In thousands)	Commercial			Construction			Mortgage			Consumer			Total
ACL	$	84,360		$	10,036		$	15,811		$	13,730		$	123,937
Loans held-in-portfolio	$	5,806,893		$	722,166		$	1,163,321		$	222,202		$	7,914,582

ACL to loans held-in-portfolio		1.45	%		1.39	%		1.36	%		6.18	%		1.57	%


Variance
(In thousands)	Commercial			Construction			Mortgage			Consumer			Total
ACL	$	(18,050	)	$	(2,097	)	$	(495	)	$	(1,498	)	$	(22,140	)
Loans held-in-portfolio	$	(141,915	)	$	(48,605	)	$	782		$	(25,153	)	$	(214,891	)

Popular, Inc.

Financial Supplement to Third Quarter 2021 Earnings Release

Table Q - Reconciliation to GAAP Financial Measures

(Unaudited)


(In thousands, except share or per share information)	30-Sep-21			30-Jun-21			30-Sep-20
Total stockholders’ equity	$	5,982,971		$	5,814,614		$	5,912,085
Less: Preferred stock		(22,143	)		(22,143	)		(22,143	)
Less: Goodwill		(671,122	)		(671,122	)		(671,122	)
Less: Other intangibles		(19,657	)		(20,440	)		(23,518	)

Total tangible common equity	$	5,270,049		$	5,100,909		$	5,195,302

Total assets	$	74,189,163		$	72,657,293		$	65,910,369
Less: Goodwill		(671,122	)		(671,122	)		(671,122	)
Less: Other intangibles		(19,657	)		(20,440	)		(23,518	)

Total tangible assets	$	73,498,384		$	71,965,731		$	65,215,729

Tangible common equity to tangible assets		7.17	%		7.09	%		7.97	%
Common shares outstanding at end of period		79,841,564			80,656,480			84,219,464
Tangible book value per common share	$	66.01		$	63.24		$	61.69


	Quarterly average
Total stockholders’ equity [1]	$	5,769,545		$	5,683,325		$	5,383,126
Less: Preferred Stock		(22,143	)		(22,143	)		(22,143	)
Less: Goodwill		(671,121	)		(671,121	)		(671,121	)
Less: Other intangibles		(20,132	)		(21,350	)		(24,161	)

Total tangible equity	$	5,056,149		$	4,968,711		$	4,665,701
Return on average tangible common equity		19.44	%		17.58	%		14.32	%

[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