Enhanced Investments - Financial Portal

Published: 2023-01-25 00:00:00 ET

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Exhibit 99.1

LOGO

Popular, Inc. Announces Fourth Quarter 2022 Financial Results

•

Net income of $257.1 million in Q4 2022, compared to net income of $422.4 million in Q3 2022; the results of Q4 2022 included a tax benefit of $68.2 million related to the partial release of the deferred tax valuation allowance in the U.S., while the Q3 2022 results included the benefit of the Evertec Transactions (as defined below) and related accounting adjustments of $226.6 million.

•

Net income of $1.1 billion for the year 2022, compared to net income of $934.9 million for the year 2021.

•

Net interest margin of 3.28% in Q4 2022, compared to 3.32% in Q3 2022; net interest margin on a taxable equivalent basis of 3.64% in Q4 2022, compared to 3.71% in Q3 2022.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $14.0 million from Q3 2022; NPLs to loans ratio remained flat at 1.4%;

•

Net charge-offs (“NCOs”) increased by $13 million from Q3 2022; annualized NCOs at 0.39% of average loans held-in-portfolio vs. 0.24% in Q3 2022;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.25% vs. 2.23% in Q3 2022; and

•

ACL to NPLs at 163.9% vs. 155.1% in Q3 2022.

•

Common Equity Tier 1 ratio of 16.39%, Common Equity per Share of $56.66 and Tangible Book Value per Share of $44.97 at December 31, 2022.

SAN JUAN, Puerto Rico – (BUSINESS WIRE) – Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $257.1 million for the quarter ended December 31, 2022, compared to net income of $422.4 million for the quarter ended September 30, 2022. Excluding the effects of the partial release of $68.2 million of the deferred tax asset valuation allowance, the net income for the fourth quarter was $188.9 million. The net income for the third quarter was $195.8 million after excluding the impact of the completed Evertec Transactions (as defined below) and related accounting adjustments.

Ignacio Alvarez, President and Chief Executive Officer, said: “We ended 2022 with a solid performance in the fourth quarter helping us achieve record earnings of $1.1 billion for the year. During the quarter, we continued to see broad-based loan growth and strong credit quality metrics, although our net interest income was impacted by higher deposit costs, primarily related to our portfolio of P.R. public deposits.

Our record annual earnings are the product of focusing on long-term customer relationships and sustainable growth strategies. In addition to outstanding earnings, during 2022, we also completed important strategic initiatives such as the acquisition of key customer-facing channels from Evertec and launched a broad-based multi-year, technological and business process transformation across the entire Company. We also returned $631 million to our shareholders through common stock share repurchases and increased our quarterly common stock dividend to $0.55 per share.

During 2023, we will continue to leverage the benefits of the Evertec transaction and will focus on growing and deepening our strong commercial and retail franchise in P.R. as we continue to look for appropriate opportunities in the U.S. market.

While we are aware of the macroeconomic headwinds related to inflation and geopolitical risks, we are confident that given the amount of stimulative support from federal funds, P.R. will continue its growth path, albeit perhaps at a slower pace.

2023 marks our 130th anniversary. During this time, we adapted and transformed ourselves on multiple occasions to address many political, economic and competitive changes that have occurred. We are committed to continuing that transformation by investing in the future of our organization, our people and the communities we serve to meet future challenges and continue to provide value to our shareholders.”

Significant Events

Transformation Initiative:

Popular has launched a significant, multi-year corporate transformation initiative designed to expand its digital capabilities, modernize its technology platform, and implement agile and efficient business processes across the Corporation.

Since completing the Evertec Transactions on July 1, 2022, through December 31, 2022, excluding compensation costs of our employees involved in the initiative, we expensed $24 million toward this effort, primarily in professional fees and technology related expenses. In 2023, we plan an expense of approximately $50 million toward this effort, excluding employee compensation and capitalized costs. We expect the expenses tied to this transformation initiative, which will continue through 2025 to result in an enhanced digital experience for our clients, as well as better technology and more efficient processes for our employees. We expect this effort to contribute to better efficiency and higher earnings, resulting in a targeted sustainable return on tangible common equity of 14% by the end of 2025.

To facilitate the transparency of our progress with these efforts, we have now separated technology, professional fees and transactional activities as standalone expense categories in the statement of operations.

Transfer of Securities from Available-for Sale to Held-To-Maturity

In October 2022, the Corporation transferred U.S. Treasury securities with a fair value of $6.5 billion (par value of $7.4 billion) from its available-for-sale portfolio to its held-to-maturity portfolio. Management changed its intent to hold these securities to maturity, given the Corporation’s liquidity position and its intention to reduce the impact on accumulated other comprehensive income (“AOCI”) and tangible capital of further increases in interest rates.

The securities were reclassified at fair value at the time of the transfer. At the date of the transfer, these securities had pre-tax unrealized losses of $873.0 million recorded in AOCI. This fair value discount is being accreted to interest income and the unrealized loss remaining in AOCI is being amortized, offsetting each other through the remaining life of the securities. There were no realized gains or losses recorded as a result of this transfer.

While changes in the amount of unrealized gains and losses in AOCI have an impact on the Corporation’s and its wholly-owned banking subsidiaries’ tangible capital ratios, they do not impact regulatory capital ratios, in accordance with the regulatory framework.

Capital Actions

On December 7, 2022 the Corporation completed the settlement of its previously announced accelerated share repurchase agreement (“ASR Agreement”) for the repurchase of an aggregate $231 million of Popular’s common stock, for which an initial 2,339,241 shares (the “Initial Shares”) were delivered on August 26, 2022. 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 $185 million in treasury stock and $46 million as a reduction of capital surplus. Upon the final settlement of the ASR Agreement, the Corporation received an additional 840,024 shares of common stock and recognized approximately $60 million as treasury stock with a corresponding increase in its capital surplus account. The Corporation repurchased a total of 3,179,265 shares at an average purchase price of $72.66 under the ASR Agreement.

Partial Release of the Deferred tax Asset Valuation Allowance

During the fourth quarter of 2022, the Corporation recorded a partial reversal of the deferred tax asset valuation allowance of the U.S. operations of $68.2 million. As of December 31, 2022 the deferred tax asset (“DTA”) for the U.S. operations, mainly related to net operating losses (“NOLs”), was valued at $278 million, net of the corresponding valuation allowance of $423 million. The additional reversal during the fourth quarter was determined based on management’s expectation of the realization of additional amounts of federal and states NOLs over their remining carryover period. The determination was based on the U.S. operations’ sustained profitability during the years ended December 31, 2021 and 2022, together with evidence of stable credit metrics and the length of the expiration of the net operating losses. As of December 31, 2022, the Corporation had approximately $525 million in DTA related to federal NOLs with expiration dates between 2028 and 2033 and approximately $155 million in DTA related to state NOLs with expiration dates between 2031 and 2036.

Earnings Highlights


(Unaudited)	Quarters ended								Years ended
(Dollars in thousands, except per share information)	31-Dec-22			30-Sep-22		31-Dec-21			31-Dec-22		31-Dec-21
Net interest income	$	559,566		$	579,619	$	501,283		$	2,167,359	$	1,957,590
Provision for credit losses (benefit)		49,531			39,637		(33,050	)		83,030		(193,464	)

Net interest income after provision for credit losses (benefit)		510,035			539,982		534,333			2,084,329		2,151,054
Other non-interest income		158,465			426,494		164,677			897,062		642,128
Operating expenses		461,708			476,095		417,394			1,746,420		1,549,275

Income before income tax		206,792			490,381		281,616			1,234,971		1,243,907
Income tax (benefit) expense		(50,347	)		67,986		75,552			132,330		309,018

Net income	$	257,139		$	422,395	$	206,064		$	1,102,641	$	934,889

Net income applicable to common stock	$	256,786		$	422,042	$	205,711		$	1,101,229	$	933,477

Net income per common share-basic	$	3.56		$	5.71	$	2.59		$	14.65	$	11.49

Net income per common share-diluted	$	3.56		$	5.70	$	2.58		$	14.63	$	11.46

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, 2022 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, 2022 was $559.6 million, compared to $579.6 million in the previous quarter, a decrease of $20.0 million. Net interest income on a taxable equivalent basis for the fourth quarter of 2022 was $621.5 million compared to $646.6 million in the previous quarter, a decrease of $25.1 million.

Net interest margin for the quarter was 3.28% compared to 3.32% in the previous quarter. On a taxable equivalent basis, net interest margin for the fourth quarter of 2022 was 3.64%, compared to 3.71% in the prior quarter. The decrease in net interest margin is mainly related to a higher interest expense on deposits, partially offset by higher volume of loans and change to the earning asset mix, with increases in loan balances and reductions to lower yielding money markets, investments and trading securities. The main variances in net interest income on a taxable equivalent basis were:

•

higher interest expense on deposits by $78.4 million due to the increase in rates, mainly from Puerto Rico government deposits.

partially offset by:

•

higher interest income from money market deposits by $13.9 million, resulting from higher yield of the portfolio by 166 basis points driven mainly by the full quarter’s effect of increases in the interest on excess funds at the Federal Reserve at the end of July and September, fully impacting the fourth quarter, and further increases at the beginning of November and mid-December, partially offset by lower volume by $1.5 billion mainly related to a decrease in deposits and a higher loan volume; and

•

quarter-over-quarter, the Corporation’s loan portfolio’s average balance increased by $980 million reflecting increases in the U.S. and P.R. and across all major loan segments except construction loans. Loan origination in a higher interest rate environment and the repricing of adjustable-rate loans resulted in a higher yield on loans by 31 basis points. The categories with the highest impact were commercial loans with an increase of $29.5 million in interest income or 49 basis points and consumer loans that increased $8.1 million or 52 basis points

Net interest income for the Banco Popular de Puerto Rico (“BPPR”) segment amounted to $472.4 million for the fourth quarter of 2022, compared to $488.1 million in the third quarter of 2022. Net interest margin remained flat at 3.26% compared to 3.27% in the third quarter of 2022. The decrease in net interest income of $15.7 million was mostly driven by a higher cost of deposits, partially offset by the improvement in the yield on earning assets and the change to the asset mix. The yield on earning assets increased 45 basis points driven by the repricing of money market investments and adjustable-rate loans and a higher volume of average loans by $671 million. Earning assets decreased by $1.6 billion mainly driven by the decrease of P.R. public sector and commercial interest-bearing deposits. The cost of interest-bearing deposits increased 67 basis points to 1.13% from 0.46% the previous quarter. The increase in the cost of deposits was mainly impacted by the repricing of public funds and corporate clients. Total deposit cost for the quarter increased by 49 basis points from 0.34% to 0.83%.

Net interest income for Popular Bank (“PB”) was $94.2 million for the quarter ended December 31, 2022, compared to $98.9 million during the previous quarter, a decrease of $4.7 million. Net interest margin decreased 29 basis points in the quarter to 3.55% compared to 3.84% in the third quarter of the year. The decrease in net interest margin was mostly driven by a higher cost of deposits, partially offset by higher volume of loans and the repricing, of adjustable-rate loans driven by the changes in interest rates. The cost of interest-bearing deposits was 1.71% compared to 0.85%, or an increase of 86 basis points while total deposit cost was 1.34% compared to 0.67% in the previous quarter.

Non-interest income

Non-interest income amounted to $158.5 million for the fourth quarter of 2022, a decrease of $268.0 million compared to $426.5 million in the previous quarter. The results for the third quarter of 2022 included $257.7 million from the gain on the sale of the Corporation’s shares from Evertec, Inc. (“Evertec”), including those sold in connection BPPR’s acquisition of certain assets from Evertec Group, LLC, a wholly owned subsidiary of Evertec, to service certain BPPR channels (the “Evertec Business Acquisition”), the subsequent the sale of BPPR’s remaining 7,065,634 shares of common stock of Evertec, Inc. (together with the Evertec Business Acquisition, the “Evertec Transactions”) and related accounting adjustments. Other factors that contributed to the variance in non-interest income were:

•

Lower service charges on deposit accounts by $5.3 million due to lower overdraft related charges and lower cash management service charges from commercial clients due to higher earnings credits on transactional accounts;

•

lower mortgage banking activities by $2.9 million due to a negative variance in the valuation of mortgage servicing rights by $2.1 million and a negative variance of $1.0 million in gains from loans securitization activity, net of valuation adjustments on loans held-for-sale;

•

an unfavorable variance in the adjustments for indemnity reserves on loans previously sold of $1.9 million;

•

a favorable adjustment recorded in the third quarter of $9.2 million in the fair value of the contingent consideration related to purchase price adjustments for the Popular Equipment Finance (“PEF”) acquisition of the K2 Capital Group LLC business in 2021 (‘’K2 Acquisition’’), after the Corporation updated its estimates related to the realizability of the earnings targets for the contingent payment; and

•

lower earnings from the portfolio of equity method investments by $2.2 million, excluding Evertec;

partially offset by:

•

a gain of $8.2 million from the sale of an investment which had been previously written off;

•

higher other service fees by $2.6 million mainly due to higher credit and debit card fees related to interchange income and seasonal activity, partially offset by lower insurance fees, including contingent payments of approximately $500,000 received during the third quarter; and

•

a favorable variance of $1.8 million on the fair value adjustments to the portfolio of equity securities related to deferred benefit plans, which have an offsetting effect recorded as higher personnel costs;

Refer to Table B for further details.

Operating expenses

Operating expenses for the fourth quarter of 2022 totaled $461.7 million, a decrease of $14.4 million when compared to the third quarter of 2022. The variance in operating expenses was driven primarily by:

•

lower personnel costs by $3.7 million mainly due to a decrease in health insurance costs by $4.7 million, lower profit-sharing accrual and lower commissions, incentives and other bonuses by $2.6 million partially offset by higher salaries and other personnel costs by $3.6 million;

•

lower credit and debit card processing and transactional expenses by $3.3 million mainly due to transaction volume rebates and incentives recognized during the quarter;

•

higher other real estate owned (OREO) benefit by $6.7 million mainly due to higher gain on sale of mortgage and commercial properties and higher expense claim reimbursement from federal government agency programs;

•

lower other operating expenses by $12.0 million, mainly due to the effect of a previous quarter expense related to the Evertec Transactions of $17.3 million, partially offset by $2.0 million of higher sundry loss reserves and

•

a goodwill impairment charge of $9.0 million recorded during the previous quarter due to a decrease in PEF’s projected earnings considered as part of the Corporation’s annual goodwill impairment analysis.

partially offset by:

•

higher equipment expenses by $1.1 million due to higher maintenance and repair costs of equipment;

•

higher professional fees by $1.5 million mainly due to higher advisory expense related to corporate initiatives;

•

higher technology and software expenses by $9.9 million mainly due to various ongoing technology projects;

•

higher other processing and transactional services by $3.7 million mainly due to higher incentives received during the prior quarter related to the ATH Network Participation Agreement entered into in connection with the Evertec Business Acquisition; and

•

higher business promotion expenses by $3.8 million mainly due to seasonal projects and sponsorships during the quarter.

Full-time equivalent employees were 8,813 as of December 31, 2022 compared to 8,747 as of September 30, 2022.

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

Income Taxes

For the quarter ended December 31, 2022, the Corporation recorded an income tax benefit of $50.3 million compared to an income tax expense of $68.0 million for the previous quarter. The favorable variance in income tax expense was mainly attributable to a partial reversal of the deferred tax asset valuation allowance of the U.S. operation during the fourth quarter of $68.2 million and lower income before tax, higher benefit from tax-exempt income, including true-up adjustment of $9.5 million in relation to the fiscal year 2021 tax returns for the P.R. subsidiaries filed in the fourth quarter and related year-to-date adjustments for the same concept. The effective tax rate (“ETR”) for the fourth quarter was of (24)%. Excluding the impact of the partial release of the valuation allowance and true up adjustment, the ETR for the fourth quarter was of 12%, compared to 14% for the previous quarter. The ETR of the Corporation is impacted by the composition and source of its taxable income. The Corporation expects its ETR for the year 2023 to be within a range from 18% to 22%.

Credit Quality

During the fourth quarter of 2022, the Corporation continued to reflect stable credit quality trends with low levels of NCOs and decreasing NPLs. We continue to closely monitor changes in the macroeconomic environment and on borrower performance, given inflationary pressures and geopolitical uncertainty. However, management believes that the improvement over recent 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 2022:

•

At December 31, 2022, total non-performing loans held-in-portfolio decreased by $14.0 million from September 30, 2022. BPPR’s NPLs decreased by $8.2 million, mostly driven by lower mortgage and commercial NPLs by $10.4 million and $5.3 million, respectively, in part offset by higher auto loans NPLs by $6.5 million. PB’s NPLs decreased by $5.8 million quarter-over-quarter, mostly due to a $8.7 million charge-off on a previously reserved commercial borrower in the healthcare industry that was placed in non-accrual status the previous quarter. At December 31, 2022, the ratio of NPLs to total loans held-in-portfolio remained flat at 1.4%, compared to the third quarter of 2022.

•

Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $2.7 million quarter-over-quarter. In BPPR, total inflows increased by $5.0 million, mostly driven by higher mortgage inflows of $5.1 million. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB decreased by $7.6 million quarter-over-quarter, mainly driven by the abovementioned commercial healthcare loan placed in non-accrual in the previous quarter.

•

NCOs amounted to $31.2 million, an increase of $13.0 million when compared to the third quarter of 2022. BPPR’s NCOs remained stable, increasing by $1.5 million quarter-over-quarter, mainly driven by higher consumer NCOs by $5.5 million, mostly due to higher auto NCOs, in part offset by lower mortgage NCOs by $4.0 million. PB’s NCOs increased by $11.5 million quarter-over-quarter, mainly due to the charge-off on the abovementioned healthcare loan. During the fourth quarter of 2022, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.39%, compared to 0.24% in the third quarter of 2022. Refer to Table M for further information on net charge-offs and related ratios.

•

At December 31, 2022, the ACL increased by $17.2 million, or 2.5%, from the third quarter of 2022 to $720.3 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.

•

The baseline scenario assumes a 2023 annualized GDP growth for Puerto Rico and the United States of 1.3% and 0.7%, respectively, compared to 2.2% and 1.5% in the previous quarter. For 2022, annualized expected growth was 2.6% and 1.8% for Puerto Rico and United States, respectively. The reduction in 2023 is due to the expected slowdown in the economy as a result of tight monetary policy, weaker job growth and persistent inflation.

•

The 2023 average unemployment rate remained largely consistent quarter-over-quarter forecasted at 7.8% and 4.0% for Puerto Rico and United States, respectively, compared to 7.8% and 3.9% respectively, in the previous forecast. In 2023, weaker job growth due to the expected slowdown in the economy will contribute to the increase in unemployment rate from 2022 average levels of 6.4% for Puerto Rico and 3.7% for the United States.

•

In BPPR, the ACL increased by $24.6 million, mostly driven by changes in the economic scenario, higher loan volumes and changes in credit quality. The ACL for the PB segment decreased by $7.4 million quarter-over-quarter, mainly driven by an $8.7 million charge-off on the previously mentioned commercial healthcare NPL. The Corporation’s ratio of the allowance for credit losses to loans held-in-portfolio was 2.25% in the fourth quarter of 2022, compared to 2.23% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 163.9%, compared to 155.1% in the previous quarter.

•

The provision for credit losses for the loan portfolios for the fourth quarter of 2022 was an expense of $48.3 million, compared to an expense of $39.5 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses. The provision for the BPPR segment was an expense of $44.4 million, compared to an expense of $28.7 million in the previous quarter, while the provision for the PB segment was an expense of $3.9 million, compared to an expense of $10.8 million in the previous quarter.

•

The provision for unfunded commitments for the third quarter of 2022 was an expense of $1.5 million, compared to an expense of $0.4 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $0.3 million, flat quarter-over-quarter. 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-22		30-Sep-22		31-Dec-21
Non-performing loans held-in-portfolio	$	439,441	$	453,419	$	547,877
Other real estate owned (“OREO”)		89,126		93,239		85,077

Total non-performing assets	$	528,567	$	546,658	$	632,954

Net charge-offs (recoveries) for the quarter	$	31,200	$	18,232	$	(7,881	)


Ratios:
Loans held-in-portfolio	$	32,077,769		$	31,523,188		$	29,240,557
Non-performing loans held-in-portfolio to loans held-in-portfolio		1.37	%		1.44	%		1.87	%
Allowance for credit losses to loans held-in-portfolio		2.25			2.23			2.38
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		163.91			155.07			126.92

Refer to Table K for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios


(Unaudited)	Quarters ended							Years ended
(In thousands)	31-Dec-22		30-Sep-22		31-Dec-21			31-Dec-22		31-Dec-21
Provision for credit losses (benefit) - loan portfolios:
BPPR	$	44,383	$	28,694	$	(30,562	)	$	69,544	$	(129,018	)
Popular U.S.		3,949		10,825		(859	)		13,763		(54,327	)

Total provision for credit losses (benefit) - loan portfolios	$	48,332	$	39,519	$	(31,421	)	$	83,307	$	(183,345	)

Credit Quality by Segment


(Unaudited) (In thousands)	Quarters ended
BPPR	31-Dec-22			30-Sep-22			31-Dec-21
Provision for credit losses (benefit) - loan portfolios	$	44,383		$	28,694		$	(30,562	)
Net charge-offs (recoveries)		19,846			18,396			(7,615	)
Total non-performing loans held-in-portfolio		402,009			410,215			514,289
Allowance / loans held-in-portfolio		2.73	%		2.65	%		2.85	%
Allowance / non-performing loans held-in-portfolio		153.12	%		144.05	%		115.53	%


	Quarters ended
Popular U.S.	31-Dec-22			30-Sep-22			31-Dec-21
Provision for credit losses (benefit) - loan portfolios	$	3,949		$	10,825		$	(859	)
Net charge-offs (recoveries)		11,354			(164	)		(266	)
Total non-performing loans held-in-portfolio		37,432			43,204			33,588
Allowance / loans held-in-portfolio		1.10	%		1.21	%		1.21	%
Allowance / non-performing loans held-in-portfolio		279.86	%		259.61	%		301.31	%

Financial Condition Highlights


(Unaudited)
(In thousands)	31-Dec-22		30-Sep-22		31-Dec-21
Cash and money market investments	$	6,084,096	$	5,992,360	$	17,965,152
Investment securities		26,553,317		30,434,052		25,267,418
Loans		32,077,769		31,523,188		29,240,557
Total assets		67,637,917		70,729,675		75,097,899
Deposits		61,227,227		64,819,327		67,005,088
Borrowings		1,400,319		1,300,984		1,155,166
Total liabilities		63,544,492		67,054,837		69,128,502
Stockholders’ equity		4,093,425		3,674,838		5,969,397

Total assets amounted to $67.6 billion at December 31, 2022, a decrease of $3.1 billion from the third quarter of 2022, driven by:

•

A decrease in debt securities of $3.9 billion due to maturities and paydowns, partially offset by purchases and a favorable variance of $193.4 million in net unrealized losses in the portfolio of available-for-sale securities.

partially offset by:

•

an increase in loans held-in-portfolio of $0.6 billion across all loan categories, except construction loans. The increase was mainly due to commercial loan growth at both BPPR and PB and an increase in mortgage and consumer loans at BPPR, mainly in personal loans and credit cards.

Total liabilities decreased by $3.5 billion from the third quarter of 2022, driven by:

•

a decrease of $3.6 billion in deposits, mainly in Puerto Rico public sector deposits by $2.2 billion, and non-public deposits by $1.4 billion mainly from commercial interest-bearing accounts in Puerto Rico;

partially offset by:

•

an increase in borrowings of $115.0 million, mainly due to advances from the FHLB at PB.

Stockholders’ equity increased by $418.6 million from the third quarter of 2022, principally due to net income for the quarter of $257.1 million and a favorable variance of $193.4 million in net unrealized losses in the portfolio of available-for-sale securities, partially offset by dividends declared for the quarter.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.39%, $56.66 and $44.97, respectively, at December 31, 2022, compared to 16.04%, $50.26 and $38.69 at September 30, 2022. 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 regarding 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, 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. Other factors include Popular’s ability to successfully execute its transformation initiative, including, but not limited to, achieving projected earnings, efficiencies and return on tangible common equity and accurately anticipating costs and expenses associated therewith. The Corporation’s ability to successfully transition and integrate the assets acquired as part of the Evertec Business Acquisition, related operations, employees and third party contractors; unexpected costs, including, without limitation, costs due to exposure to any unrecorded liabilities or issues not identified during due diligence investigation of the Evertec Business Acquisition or that are not subject to indemnification or reimbursement by Evertec; operational risks that may affect Popular and other risks arising from the acquisition of the acquired assets or by adverse effects on relationships with customers, employees and service providers and business and other risks arising from the extension of Popular’s current commercial agreements with Evertec may also cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. 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 Form 10-K for the year ended December 31, 2021, in our Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, and in our Form 10-K for the year ended December 31, 2022 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, January 25, 2023 at 10:00 a.m. Eastern Time. The call will be broadcast 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 a dial-in telephone number 1-844-200-6205 (Toll Free) or 1-646-904-5544 (Local). The dial-in access code is 922986.

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 Friday, February 24, 2023. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 431712.

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 2022 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 - BPPR 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 - BPPR 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 2022 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)


	Quarters ended									Years ended
	31-Dec-22			30-Sep-22			31-Dec-21			31-Dec-22			31-Dec-21
Basic EPS	$	3.56		$	5.71		$	2.59		$	14.65		$	11.49
Diluted EPS	$	3.56		$	5.70		$	2.58		$	14.63		$	11.46
Average common shares outstanding		72,101,177			73,955,184			79,477,823			75,147,263			81,263,027
Average common shares outstanding - assuming dilution		72,192,680			74,057,332			79,652,836			75,274,003			81,420,154
Common shares outstanding at end of period		71,853,720			72,673,344			79,851,169			71,853,720			79,851,169
Market value per common share	$	66.32		$	72.06		$	82.04		$	66.32		$	82.04
Market capitalization - (In millions)	$	4,765		$	5,237		$	6,551		$	4,765		$	6,551
Return on average assets		1.46	%		2.31	%		1.09	%		1.52	%		1.31	%
Return on average common equity		16.59	%		27.72	%		13.74	%		18.39	%		16.22	%
Net interest margin (non-taxable equivalent basis)		3.28	%		3.32	%		2.78	%		3.11	%		2.88	%
Net interest margin (taxable equivalent basis) -non-GAAP		3.64	%		3.71	%		3.02	%		3.46	%		3.19	%
Common equity per share	$	56.66		$	50.26		$	74.48		$	56.66		$	74.48
Tangible common book value per common share (non-GAAP) [1]	$	44.97		$	38.69		$	65.26		$	44.97		$	65.26
Tangible common equity to tangible assets (non-GAAP) [1]		4.84	%		4.02	%		7.01	%		4.84	%		7.01	%
Return on average tangible common equity [1]		19.23	%		31.86	%		15.66	%		21.13	%		18.47	%
Tier 1 capital		16.45	%		16.10	%		17.49	%		16.45	%		17.49	%
Total capital		18.26	%		17.92	%		19.35	%		18.26	%		19.35	%
Tier 1 leverage		8.15	%		7.65	%		7.41	%		8.15	%		7.41	%
Common Equity Tier 1 capital		16.39	%		16.04	%		17.42	%		16.39	%		17.42	%

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

POPULAR, INC.

Financial Supplement to Fourth Quarter 2022 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)


	Quarters ended						Variance			Quarter ended			Variance			Years ended
							Q4 2022						Q4 2022
(In thousands, except per share information)	31-Dec-22			30-Sep-22			vs. Q3 2022			31-Dec-21			vs. Q4 2021			31-Dec-22			31-Dec-21
Interest income:
Loans	$	522,042		$	481,088		$	40,954		$	444,101		$	77,941		$	1,876,166		$	1,747,827
Money market investments		50,908			36,966			13,942			6,847			44,061			118,080			21,147
Investment securities		140,244			133,181			7,063			88,315			51,929			471,665			353,663

Total interest income		713,194			651,235			61,959			539,263			173,931			2,465,911			2,122,637

Interest expense:
Deposits		139,338			60,897			78,441			26,331			113,007			252,845			111,621
Short-term borrowings		4,488			921			3,567			60			4,428			5,737			319
Long-term debt		9,802			9,798			4			11,589			(1,787	)		39,970			53,107

Total interest expense		153,628			71,616			82,012			37,980			115,648			298,552			165,047

Net interest income		559,566			579,619			(20,053	)		501,283			58,283			2,167,359			1,957,590
Provision for credit losses (benefit)		49,531			39,637			9,894			(33,050	)		82,581			83,030			(193,464	)

Net interest income after provision for credit losses (benefit)		510,035			539,982			(29,947	)		534,333			(24,298	)		2,084,329			2,151,054

Service charges on deposit accounts		34,682			40,006			(5,324	)		41,613			(6,931	)		157,210			162,698
Other service fees		89,022			86,402			2,620			83,793			5,229			334,009			311,248
Mortgage banking activities		6,562			9,448			(2,886	)		17,035			(10,473	)		42,450			50,133
Net gain on sale of debt securities		—			—			—			—			—			—			23
Net gain (loss), including impairment, on equity securities		317			(1,448	)		1,765			(1,454	)		1,771			(7,334	)		131
Net gain (loss) on trading account debt securities		162			(274	)		436			(355	)		517			(784	)		(389	)
Net loss on sale of loans, including valuation adjustments on loans held-for-sale		—			—			—			—			—			—			(73	)
Adjustments to indemnity reserves on loans sold		(221	)		1,715			(1,936	)		1,398			(1,619	)		919			4,406
Other operating income		27,941			290,645			(262,704	)		22,647			5,294			370,592			113,951

Total non-interest income		158,465			426,494			(268,029	)		164,677			(6,212	)		897,062			642,128

Operating expenses:
Personnel costs
Salaries		116,503			115,887			616			96,830			19,673			432,910			371,644
Commissions, incentives and other bonuses		39,570			42,209			(2,639	)		34,853			4,717			155,889			142,212
Pension, postretirement and medical insurance		12,452			17,120			(4,668	)		13,971			(1,519	)		56,085			52,077
Other personnel costs, including payroll taxes		21,612			18,627			2,985			14,818			6,794			74,880			65,869

Total personnel costs		190,137			193,843			(3,706	)		160,472			29,665			719,764			631,802
Net occupancy expenses		27,812			27,420			392			26,755			1,057			106,169			102,226
Equipment expenses		9,828			8,735			1,093			9,656			172			35,626			32,919
Other taxes		16,142			15,966			176			15,160			982			63,603			56,783
Professional fees		49,159			47,662			1,497			32,607			16,552			172,043			126,721
Technology and software expenses		78,264			68,341			9,923			70,916			7,348			291,902			277,979
Processing and transactional services
Credit and debit cards		10,278			13,531			(3,253	)		7,578			2,700			45,455			40,383
Other processing and transactional services		22,509			18,837			3,672			21,370			1,139			81,690			80,984

Total processing and transactional services		32,787			32,368			419			28,948			3,839			127,145			121,367
Communications		3,857			3,858			(1	)		3,559			298			14,885			14,029
Business promotion
Rewards and customer loyal programs		13,538			14,344			(806	)		11,752			1,786			51,832			38,919
Other business promotion		14,596			10,004			4,592			14,081			515			37,086			34,062

Total business promotion		28,134			24,348			3,786			25,833			2,301			88,918			72,981
FDIC deposit insurance		6,342			6,610			(268	)		6,688			(346	)		26,787			25,579
Other real estate owned (OREO) income		(9,180	)		(2,444	)		(6,736	)		(3,860	)		(5,320	)		(22,143	)		(14,414	)


Other operating expenses
Operational losses		9,018			7,145		1,873			16,820		(7,802	)		32,049		38,391
All other		18,614			32,448		(13,834	)		17,795		819			77,397		53,778

Total other operating expenses		27,632			39,593		(11,961	)		34,615		(6,983	)		109,446		92,169
Amortization of intangibles		794			795		(1	)		6,045		(5,251	)		3,275		9,134
Goodwill impairment charge		—			9,000		(9,000	)		—		—			9,000		—

Total operating expenses		461,708			476,095		(14,387	)		417,394		44,314			1,746,420		1,549,275

Income before income tax		206,792			490,381		(283,589	)		281,616		(74,824	)		1,234,971		1,243,907
Income tax (benefit) expense		(50,347	)		67,986		(118,333	)		75,552		(125,899	)		132,330		309,018

Net income	$	257,139		$	422,395	$	(165,256	)	$	206,064	$	51,075		$	1,102,641	$	934,889

Net income applicable to common stock	$	256,786		$	422,042	$	(165,256	)	$	205,711	$	51,075		$	1,101,229	$	933,477

Net income per common share - basic	$	3.56		$	5.71	$	(2.15	)	$	2.59	$	0.97		$	14.65	$	11.49

Net income per common share - diluted	$	3.56		$	5.70	$	(2.14	)	$	2.58	$	0.98		$	14.63	$	11.46

Dividends Declared per Common Share	$	0.55		$	0.55	$	—		$	0.45	$	0.10		$	2.20	$	1.75

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)


										Variance
										Q4 2022 vs.
(In thousands)	31-Dec-22			30-Sep-22			31-Dec-21			Q3 2022
Assets:
Cash and due from banks	$	469,501		$	2,017,312		$	428,433		$	(1,547,811	)
Money market investments		5,614,595			3,975,048			17,536,719			1,639,547
Trading account debt securities, at fair value		27,723			30,271			29,711			(2,548	)
Debt securities available-for-sale, at fair value		17,804,374			28,264,148			24,968,269			(10,459,774	)
Debt securities held-to-maturity, at amortized cost		8,525,366			1,953,710			79,461			6,571,656
Less: Allowance for credit losses		6,911			7,210			8,096			(299	)

Total debt securities held-to-maturity, net		8,518,455			1,946,500			71,365			6,571,955

Equity securities		195,854			185,923			189,977			9,931
Loans held-for-sale, at lower of cost or fair value		5,381			8,065			59,168			(2,684	)
Loans held-in-portfolio		32,372,925			31,805,921			29,506,225			567,004
Less: Unearned income		295,156			282,733			265,668			12,423
Allowance for credit losses		720,302			703,096			695,366			17,206

Total loans held-in-portfolio, net		31,357,467			30,820,092			28,545,191			537,375

Premises and equipment, net		498,711			492,685			494,240			6,026
Other real estate		89,126			93,239			85,077			(4,113	)
Accrued income receivable		240,195			224,307			203,096			15,888
Mortgage servicing rights, at fair value		128,350			130,541			121,570			(2,191	)
Other assets		1,847,813			1,700,378			1,628,571			147,435
Goodwill		827,428			827,428			720,293			—
Other intangible assets		12,944			13,738			16,219			(794	)

Total assets	$	67,637,917		$	70,729,675		$	75,097,899		$	(3,091,758	)

Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing	$	15,960,557		$	17,605,339		$	15,684,482		$	(1,644,782	)
Interest bearing		45,266,670			47,213,988			51,320,606			(1,947,318	)

Total deposits		61,227,227			64,819,327			67,005,088			(3,592,100	)

Assets sold under agreements to repurchase		148,609			162,450			91,603			(13,841	)
Other short-term borrowings		365,000			250,000			75,000			115,000
Notes payable		886,710			888,534			988,563			(1,824	)
Other liabilities		916,946			934,526			968,248			(17,580	)

Total liabilities		63,544,492			67,054,837			69,128,502			(3,510,345	)

Stockholders’ equity:
Preferred stock		22,143			22,143			22,143			—
Common stock		1,047			1,046			1,046			1
Surplus		4,790,993			4,652,508			4,650,182			138,485
Retained earnings		3,834,348			3,694,020			2,973,745			140,328
Treasury stock		(2,030,178	)		(1,970,548	)		(1,352,650	)		(59,630	)
Accumulated other comprehensive loss, net of tax		(2,524,928	)		(2,724,331	)		(325,069	)		199,403

Total stockholders’ equity		4,093,425			3,674,838			5,969,397			418,587

Total liabilities and stockholders’ equity	$	67,637,917		$	70,729,675		$	75,097,899		$	(3,091,758	)

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

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

(Unaudited)


	Quarters ended																								Variance
	31-Dec-22								30-Sep-22								31-Dec-21								Q4 2022 vs. Q3 2022									Q4 2022 vs. Q4 2021
($ 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 investments		5,262			50.9		3.84	%		6,721			37.0		2.18	%		17,885			6.9		0.15	%		(1,459	)		13.9			1.66	%		(12,623	)		44.0			3.69	%
Investment securities		30,843			189.2		2.44	%		31,859			186.8		2.33	%		24,797			118.4		1.90	%		(1,016	)		2.4			0.11	%		6,046			70.8			0.54	%
Trading securities		30			0.3		4.28	%		40			0.6		6.09	%		82			1.1		5.43	%		(10	)		(0.3	)		(1.81	)%		(52	)		(0.8	)		(1.15	)%

Total money market, investment and trading securities	$	36,135		$	240.4		2.65	%	$	38,620		$	224.4		2.31	%	$	42,764		$	126.4		1.18	%	($	2,485	)	$	16.0			0.34	%	($	6,629	)	$	114.0			1.47	%

Loans:
Commercial		15,503			234.7		6.01			14,750			205.2		5.52			13,395			188.6		5.59			753			29.5			0.49			2,108			46.1			0.42
Construction		769			14.6		7.54			835			13.4		6.38			777			10.7		5.46			(66	)		1.2			1.16			(8	)		3.9			2.08
Mortgage		7,346			98.9		5.38			7,264			98.4		5.42			7,504			96.4		5.14			82			0.5			(0.04	)		(158	)		2.5			0.24
Consumer		2,961			91.5		12.26			2,818			83.4		11.74			2,471			68.1		10.93			143			8.1			0.52			490			23.4			1.33
Auto		3,576			71.9		7.98			3,562			71.2		7.93			3,432			71.3		8.24			14			0.7			0.05			144			0.6			(0.26	)
Lease financing		1,557			23.1		5.92			1,503			22.2		5.90			1,359			20.3		5.97			54			0.9			0.02			198			2.8			(0.05	)

Total loans		31,712			534.7		6.70			30,732			493.8		6.39			28,938			455.4		6.26			980			40.9			0.31			2,774			79.3			0.44

Total interest earning assets	$	67,847		$	775.1		4.54	%	$	69,352		$	718.2		4.12	%	$	71,702		$	581.8		3.23	%	$	(1,505	)	$	56.9			0.42	%	$	(3,855	)	$	193.3			1.31	%

Allowance for credit losses - loan portfolio		(711	)							(691	)							(719	)							(20	)								8
Allowance for credit losses - investment securities		(7	)							(7	)							(9	)							—									2
Other non-interest earning assets		2,921								3,822								3,844								(901	)								(923	)

Total average assets	$	70,050							$	72,476							$	74,818							$	(2,426	)							$	(4,768	)

Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market	$	24,399		$	106.5		1.73	%	$	25,993		$	36.4		0.56	%	$	28,205		$	7.7		0.11	%	$	(1,594	)	$	70.1			1.17	%	$	(3,806	)	$	98.8			1.62	%
Savings		15,248			11.0		0.29			15,514			8.0		0.20			16,324			6.8		0.17			(266	)		3.0			0.09			(1,076	)		4.2			0.12
Time deposits		6,675			21.8		1.29			6,957			16.5		0.94			6,793			11.8		0.69			(282	)		5.3			0.35			(118	)		10.0			0.60

Total interest-bearing deposits		46,322			139.3		1.19			48,464			60.9		0.50			51,322			26.3		0.20			(2,142	)		78.4			0.69			(5,000	)		113.0			0.99
Borrowings		1,363			14.3		4.18			1,068			10.7		4.01			1,163			11.6		4.01			295			3.6			0.17			200			2.7			0.17

Total interest-bearing liabilities		47,685			153.6		1.28			49,532			71.6		0.57			52,485			37.9		0.29			(1,847	)		82.0			0.71			(4,800	)		115.7			0.99

Net interest spread							3.26	%							3.55	%							2.94	%								(0.29	)%								0.32	%

Non-interest bearing deposits		16,110								15,872								15,455								238									655
Other liabilities		930								1,010								917								(80	)								13
Stockholders’ equity		5,325								6,062								5,961								(737	)								(636	)

Total average liabilities and stockholders’ equity	$	70,050							$	72,476							$	74,818							$	(2,426	)							$	(4,768	)

Net interest income / margin on a taxable equivalent basis (Non-GAAP)				$	621.5		3.64	%				$	646.6		3.71	%				$	543.9		3.02	%					($25.1	)		(0.07	)%				$	77.6			0.62	%
Taxable equivalent adjustment					61.9								67.0								42.6								(5.1	)								19.3

Net interest income / margin non-taxable equivalent basis (GAAP)				$	559.6		3.28	%				$	579.6		3.32	%				$	501.3		2.78	%					($20.0	)		(0.04	)%				$	58.3			0.50	%

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

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

(Unaudited)


	Years ended
	31-Dec-22								31-Dec-21								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 investments		9,531			118.1		1.24	%		16,000			21.2		0.13	%		(6,469	)		96.9			1.11	%
Investment securities		29,743			664.3		2.23	%		22,931			508.1		2.22	%		6,812			156.2			0.01	%
Trading securities		51			3.0		5.94	%		84			4.3		5.16	%		(33	)		(1.3	)		0.78	%

Total money market, investment and trading securities	$	39,325		$	785.4		2.00	%	$	39,015		$	533.6		1.37	%	$	310		$	251.8			0.63	%

Loans:
Commercial		14,562			795.1		5.46			13,455			723.8		5.39			1,107			71.3			0.07
Construction		778			48.9		6.29			849			45.8		5.41			(71	)		3.1			0.88
Mortgage		7,323			391.1		5.34			7,696			392.0		5.09			(373	)		(0.9	)		0.25
Consumer		2,743			320.0		11.67			2,463			275.1		11.17			280			44.9			0.50
Auto		3,525			282.5		8.02			3,322			280.7		8.47			203			1.8			(0.45	)
Lease financing		1,475			87.3		5.92			1,289			77.4		6.00			186			9.9			(0.08	)

Total loans		30,406			1,924.9		6.33			29,074			1,794.8		6.19			1,332			130.1			0.14

Total interest earning assets	$	69,731		$	2,710.3		3.89	%	$	68,089		$	2,328.4		3.43	%	$	1,642		$	381.9			0.46	%

Allowance for credit losses - loan portfolio		(695	)							(796	)							101
Allowance for credit losses - investment securities		(8	)							(10	)							2
Other non-interest earning assets		3,570								3,886								(316	)

Total average assets	$	72,598							$	71,169							$	1,429

Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market	$	25,884		$	158.6		0.61	%	$	25,959		$	31.9		0.12	%		(75	)	$	126.7			0.49	%
Savings		15,886			32.4		0.20			15,429			27.1		0.18			457			5.3			0.02
Time deposits		6,853			61.8		0.90			7,028			52.6		0.75			(175	)		9.2			0.15

Total interest-bearing deposits		48,623			252.8		0.52			48,416			111.6		0.23			207			141.2			0.29
Borrowings		1,145			45.7		3.99			1,276			53.4		4.19			(131	)		(7.7	)		(0.20	)

Total interest-bearing liabilities		49,768			298.5		0.60			49,692			165.0		0.33			76			133.5			0.27

Net interest spread							3.29	%							3.10	%								0.19	%

Non-interest bearing deposits		16,094								14,687								1,407
Other liabilities		938								1,012								(74	)
Stockholders’ equity		5,798								5,778								20

Total average liabilities and stockholders’ equity	$	72,598							$	71,169							$	1,429

Net interest income / margin on a taxable equivalent basis (Non-GAAP)				$	2,411.8		3.46	%				$	2,163.4		3.19	%				$	248.4			0.27	%
Taxable equivalent adjustment					244.4								205.8								38.6

Net interest income / margin non-taxable equivalent basis (GAAP)				$	2,167.4		3.11	%				$	1,957.6		2.88	%				$	209.8			0.23	%

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 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-22			30-Sep-22			31-Dec-21			Q4 2022 vs.Q3 2022			Q4 2022 vs.Q4 2021			31-Dec-22			31-Dec-21			2022 vs. 2021
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees	$	8,852		$	9,126		$	9,492		$	(274	)	$	(640	)	$	36,487		$	38,105		$	(1,618	)
Mortgage servicing rights fair value adjustments		(2,610	)		(499	)		1,500			(2,111	)		(4,110	)		236			(10,206	)		10,442

Total mortgage servicing fees, net of fair value adjustments		6,242			8,627			10,992			(2,385	)		(4,750	)		36,723			27,899			8,824

Net gain (loss) on sale of loans, including valuation on loans held-for-sale		123			1,124			5,428			(1,001	)		(5,305	)		(251	)		21,684			(21,935	)

Trading account profit (loss):
Realized gains (losses) on closed derivative positions		310			(240	)		691			550			(381	)		6,635			1,323			5,312

Total trading account profit (loss)		310			(240	)		691			550			(381	)		6,635			1,323			5,312

Losses on repurchased loans, including interest advances		(113	)		(63	)		(76	)		(50	)		(37	)		(657	)		(773	)		116

Total mortgage banking activities	$	6,562		$	9,448		$	17,035		$	(2,886	)	$	(10,473	)	$	42,450		$	50,133		$	(7,683	)

Other Service Fees


	Quarters ended						Variance						Years ended				Variance
(In thousands)	31-Dec-22		30-Sep-22		31-Dec-21		Q4 2022 vs.Q3 2022			Q4 2022 vs.Q4 2021			31-Dec-22		31-Dec-21		2022 vs. 2021
Other service fees:
Debit card fees	$	13,379	$	12,133	$	12,392	$	1,246		$	987		$	50,173	$	48,637	$	1,536
Insurance fees		14,587		15,697		17,848		(1,110	)		(3,261	)		56,457		57,834		(1,377	)
Credit card fees		39,777		37,829		35,649		1,948			4,128			149,403		130,475		18,928
Sale and administration of investment products		5,793		5,952		5,908		(159	)		(115	)		23,553		23,634		(81	)
Trust fees		5,223		5,506		5,858		(283	)		(635	)		22,799		24,318		(1,519	)
Other fees		10,263		9,285		6,138		978			4,125			31,624		26,350		5,274

Total other service fees	$	89,022	$	86,402	$	83,793	$	2,620		$	5,229		$	334,009	$	311,248	$	22,761

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

Table G - Loans and Deposits

(Unaudited)

Loans - Ending Balances


							Variance
(In thousands)	31-Dec-22		30-Sep-22		31-Dec-21		Q4 2022 vs.Q3 2022			Q4 2022 vs.Q4 2021
Loans held-in-portfolio:
Commercial	$	15,739,132	$	15,366,859	$	13,732,701	$	372,273		$	2,006,431
Construction		757,984		816,290		716,220		(58,306	)		41,764
Leasing		1,585,739		1,538,504		1,381,319		47,235			204,420
Mortgage		7,397,471		7,311,713		7,427,196		85,758			(29,725	)
Auto		3,512,530		3,528,904		3,412,187		(16,374	)		100,343
Consumer		3,084,913		2,960,918		2,570,934		123,995			513,979

Total loans held-in-portfolio	$	32,077,769	$	31,523,188	$	29,240,557	$	554,581		$	2,837,212

Loans held-for-sale:
Mortgage	$	5,381	$	8,065	$	59,168	$	(2,684	)	$	(53,787	)

Total loans held-for-sale	$	5,381	$	8,065	$	59,168	$	(2,684	)	$	(53,787	)

Total loans	$	32,083,150	$	31,531,253	$	29,299,725	$	551,897		$	2,783,425

Deposits - Ending Balances


							Variance
(In thousands)	31-Dec-22		30-Sep-22		31-Dec-21		Q4 2022 vs. Q3 2022			Q4 2022 vs.Q4 2021
Demand deposits [1]	$	26,382,605	$	28,773,328	$	25,889,732	$	(2,390,723	)	$	492,873
Savings, NOW and money market deposits (non-brokered)		27,265,156		28,388,057		33,674,134		(1,122,901	)		(6,408,978	)
Savings, NOW and money market deposits (brokered)		798,064		728,651		729,073		69,413			68,991
Time deposits (non-brokered)		6,442,886		6,731,588		6,685,938		(288,702	)		(243,052	)
Time deposits (brokered CDs)		338,516		197,703		26,211		140,813			312,305

Total deposits	$	61,227,227	$	64,819,327	$	67,005,088	$	(3,592,100	)	$	(5,777,861	)

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

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

Table H - Loan Delinquency - BPPR Operations

(Unaudited)


31-Dec-22
BPPR
	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	$	425	$	—	$	242	$	667	$	280,706	$	281,373	$	242	$	—
Commercial real estate:
Non-owner occupied		941		428		23,662		25,031		2,732,296		2,757,327		23,662		—
Owner occupied		729		245		23,990		24,964		1,563,092		1,588,056		23,990		—
Commercial and industrial		3,036		941		35,777		39,754		3,756,754		3,796,508		34,277		1,500
Construction		—		—		—		—		147,041		147,041		—		—
Mortgage		222,926		91,881		579,993		894,800		5,215,479		6,110,279		242,391		337,602
Leasing		11,983		3,563		5,941		21,487		1,564,252		1,585,739		5,941		—
Consumer:
Credit cards		7,106		5,049		11,910		24,065		1,017,766		1,041,831		—		11,910
Home equity lines of credit		—		—		—		—		2,954		2,954		—		—
Personal		13,232		8,752		18,082		40,066		1,545,621		1,585,687		18,082		—
Auto		68,868		19,243		40,978		129,089		3,383,441		3,512,530		40,978		—
Other		487		87		12,682		13,256		124,324		137,580		12,446		236

Total	$	329,733	$	130,189	$	753,257	$	1,213,179	$	21,333,726	$	22,546,905	$	402,009	$	351,248


30-Sep-22
BPPR
	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	$	546	$	—	$	251	$	797	$	276,521	$	277,318	$	251	$	—
Commercial real estate:
Non-owner occupied		3,005		789		21,443		25,237		2,820,803		2,846,040		21,443		—
Owner occupied		10,992		7,834		28,379		47,205		1,540,932		1,588,137		28,379		—
Commercial and industrial		7,105		1,139		38,003		46,247		3,547,841		3,594,088		37,375		628
Construction		—		1,087		—		1,087		210,480		211,567		—		—
Mortgage		237,316		89,802		581,378		908,496		5,147,347		6,055,843		252,773		328,605
Leasing		14,487		2,740		5,697		22,924		1,515,580		1,538,504		5,697		—
Consumer:
Credit cards		7,268		4,481		10,361		22,110		966,406		988,516		—		10,361
Home equity lines of credit		—		—		—		—		2,957		2,957		—		—
Personal		13,725		7,348		18,137		39,210		1,478,746		1,517,956		18,117		20
Auto		71,230		21,852		34,432		127,514		3,401,390		3,528,904		34,432		—
Other		708		768		12,025		13,501		124,950		138,451		11,748		277

Total	$	366,382	$	137,840	$	750,106	$	1,254,328	$	21,033,953	$	22,288,281	$	410,215	$	339,891


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	$	(121	)	$	—		$	(9	)	$	(130	)	$	4,185		$	4,055		$	(9	)	$	—
Commercial real estate:
Non-owner occupied		(2,064	)		(361	)		2,219			(206	)		(88,507	)		(88,713	)		2,219			—
Owner occupied		(10,263	)		(7,589	)		(4,389	)		(22,241	)		22,160			(81	)		(4,389	)		—
Commercial and industrial		(4,069	)		(198	)		(2,226	)		(6,493	)		208,913			202,420			(3,098	)		872
Construction		—			(1,087	)		—			(1,087	)		(63,439	)		(64,526	)		—			—
Mortgage		(14,390	)		2,079			(1,385	)		(13,696	)		68,132			54,436			(10,382	)		8,997
Leasing		(2,504	)		823			244			(1,437	)		48,672			47,235			244			—
Consumer:
Credit cards		(162	)		568			1,549			1,955			51,360			53,315			—			1,549
Home equity lines of credit		—			—			—			—			(3	)		(3	)		—			—
Personal		(493	)		1,404			(55	)		856			66,875			67,731			(35	)		(20	)
Auto		(2,362	)		(2,609	)		6,546			1,575			(17,949	)		(16,374	)		6,546			—
Other		(221	)		(681	)		657			(245	)		(626	)		(871	)		698			(41	)

Total	$	(36,649	)	$	(7,651	)	$	3,151		$	(41,149	)	$	299,773		$	258,624		$	(8,206	)	$	11,357

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

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

(Unaudited)


31-Dec-22
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	$	2,177	$	—	$	—	$	2,177	$	2,038,163	$	2,040,340	$	—	$	—
Commercial real estate:
Non-owner occupied		484		—		1,454		1,938		1,740,405		1,742,343		1,454		—
Owner occupied		—		—		5,095		5,095		1,485,398		1,490,493		5,095		—
Commercial and industrial		12,960		2,205		4,685		19,850		2,022,842		2,042,692		4,319		366
Construction		—		—		—		—		610,943		610,943		—		—
Mortgage		16,131		5,834		20,488		42,453		1,244,739		1,287,192		20,488		—
Consumer:
Credit cards		—		—		—		—		39		39		—		—
Home equity lines of credit		413		161		4,110		4,684		64,278		68,962		4,110		—
Personal		1,808		1,467		1,958		5,233		232,659		237,892		1,958		—
Other		—		—		8		8		9,960		9,968		8		—

Total	$	33,973	$	9,667	$	37,798	$	81,438	$	9,449,426	$	9,530,864	$	37,432	$	366


30-Sep-22
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	$	—	$	—	$	—	$	—	$	1,926,791	$	1,926,791	$	—	$	—
Commercial real estate:
Non-owner occupied		—		136		10,631		10,767		1,660,668		1,671,435		10,631		—
Owner occupied		—		5,106		606		5,712		1,472,699		1,478,411		606		—
Commercial and industrial		924		2,144		5,803		8,871		1,975,768		1,984,639		5,191		612
Construction		—		—		—		—		604,723		604,723		—		—
Mortgage		1,501		4,558		21,533		27,592		1,228,278		1,255,870		21,533		—
Consumer:
Credit cards		—		—		—		—		34		34		—		—
Home equity lines of credit		256		577		3,970		4,803		65,036		69,839		3,970		—
Personal		1,495		1,529		1,261		4,285		233,780		238,065		1,261		—
Other		704		—		12		716		4,384		5,100		12		—

Total	$	4,880	$	14,050	$	43,816	$	62,746	$	9,172,161	$	9,234,907	$	43,204	$	612


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	$	2,177		$	—		$	—		$	2,177		$	111,372		$	113,549		$	—		$	—
Commercial real estate:
Non-owner occupied		484			(136	)		(9,177	)		(8,829	)		79,737			70,908			(9,177	)		—
Owner occupied		—			(5,106	)		4,489			(617	)		12,699			12,082			4,489			—
Commercial and industrial		12,036			61			(1,118	)		10,979			47,074			58,053			(872	)		(246	)
Construction		—			—			—			—			6,220			6,220			—			—
Mortgage		14,630			1,276			(1,045	)		14,861			16,461			31,322			(1,045	)		—
Consumer:
Credit cards		—			—			—			—			5			5			—			—
Home equity lines of credit		157			(416	)		140			(119	)		(758	)		(877	)		140			—
Personal		313			(62	)		697			948			(1,121	)		(173	)		697			—
Other		(704	)		—			(4	)		(708	)		5,576			4,868			(4	)		—

Total	$	29,093		$	(4,383	)	$	(6,018	)	$	18,692		$	277,265		$	295,957		$	(5,772	)	$	(246	)

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)


31-Dec-22
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	$	2,602	$	—	$	242	$	2,844	$	2,318,869	$	2,321,713	$	242	$	—
Commercial real estate:
Non-owner occupied		1,425		428		25,116		26,969		4,472,701		4,499,670		25,116		—
Owner occupied		729		245		29,085		30,059		3,048,490		3,078,549		29,085		—
Commercial and industrial		15,996		3,146		40,462		59,604		5,779,596		5,839,200		38,596		1,866
Construction		—		—		—		—		757,984		757,984		—		—
Mortgage		239,057		97,715		600,481		937,253		6,460,218		7,397,471		262,879		337,602
Leasing		11,983		3,563		5,941		21,487		1,564,252		1,585,739		5,941		—
Consumer:
Credit cards		7,106		5,049		11,910		24,065		1,017,805		1,041,870		—		11,910
Home equity lines of credit		413		161		4,110		4,684		67,232		71,916		4,110		—
Personal		15,040		10,219		20,040		45,299		1,778,280		1,823,579		20,040		—
Auto		68,868		19,243		40,978		129,089		3,383,441		3,512,530		40,978		—
Other		487		87		12,690		13,264		134,284		147,548		12,454		236

Total	$	363,706	$	139,856	$	791,055	$	1,294,617	$	30,783,152	$	32,077,769	$	439,441	$	351,614


30-Sep-22
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	$	546	$	—	$	251	$	797	$	2,203,312	$	2,204,109	$	251	$	—
Commercial real estate:
Non-owner occupied		3,005		925		32,074		36,004		4,481,471		4,517,475		32,074		—
Owner occupied		10,992		12,940		28,985		52,917		3,013,631		3,066,548		28,985		—
Commercial and industrial		8,029		3,283		43,806		55,118		5,523,609		5,578,727		42,566		1,240
Construction		—		1,087		—		1,087		815,203		816,290		—		—
Mortgage		238,817		94,360		602,911		936,088		6,375,625		7,311,713		274,306		328,605
Leasing		14,487		2,740		5,697		22,924		1,515,580		1,538,504		5,697		—
Consumer:
Credit cards		7,268		4,481		10,361		22,110		966,440		988,550		—		10,361
Home equity lines of credit		256		577		3,970		4,803		67,993		72,796		3,970		—
Personal		15,220		8,877		19,398		43,495		1,712,526		1,756,021		19,378		20
Auto		71,230		21,852		34,432		127,514		3,401,390		3,528,904		34,432		—
Other		1,412		768		12,037		14,217		129,334		143,551		11,760		277

Total	$	371,262	$	151,890	$	793,922	$	1,317,074	$	30,206,114	$	31,523,188	$	453,419	$	340,503


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	$	2,056		$	—		$	(9	)	$	2,047		$	115,557		$	117,604		$	(9	)	$	—
Commercial real estate:
Non-owner occupied		(1,580	)		(497	)		(6,958	)		(9,035	)		(8,770	)		(17,805	)		(6,958	)		—
Owner occupied		(10,263	)		(12,695	)		100			(22,858	)		34,859			12,001			100			—
Commercial and industrial		7,967			(137	)		(3,344	)		4,486			255,987			260,473			(3,970	)		626
Construction		—			(1,087	)		—			(1,087	)		(57,219	)		(58,306	)		—			—
Mortgage		240			3,355			(2,430	)		1,165			84,593			85,758			(11,427	)		8,997
Leasing		(2,504	)		823			244			(1,437	)		48,672			47,235			244			—
Consumer:
Credit cards		(162	)		568			1,549			1,955			51,365			53,320			—			1,549
Home equity lines of credit		157			(416	)		140			(119	)		(761	)		(880	)		140			—
Personal		(180	)		1,342			642			1,804			65,754			67,558			662			(20	)
Auto		(2,362	)		(2,609	)		6,546			1,575			(17,949	)		(16,374	)		6,546			—
Other		(925	)		(681	)		653			(953	)		4,950			3,997			694			(41	)

Total	$	(7,556	)	$	(12,034	)	$	(2,867	)	$	(22,457	)	$	577,038		$	554,581		$	(13,978	)	$	11,111

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

Table K - Non-Performing Assets

(Unaudited)


																			Variance
(Dollars in thousands)	31-Dec-22			As a % of loans HIP by category			30-Sep-22			As a % of loans HIP by category			31-Dec-21			As a % of loans HIP by category			Q4 2022 vs. Q3 2022			Q4 2022 vs. Q4 2021
Non-accrual loans:
Commercial	$	93,039			0.6	%	$	103,876			0.7	%	$	125,579			0.9	%	$	(10,837	)	$	(32,540	)
Construction		—			—			—			—			485			0.1			—			(485	)
Leasing		5,941			0.4			5,697			0.4			3,102			0.2			244			2,839
Mortgage		262,879			3.6			274,306			3.8			355,856			4.8			(11,427	)		(92,977	)
Auto		40,978			1.2			34,432			1.0			23,085			0.7			6,546			17,893
Consumer		36,604			1.2			35,108			1.2			39,770			1.5			1,496			(3,166	)

Total non-performing loans held-in-portfolio		439,441			1.4	%		453,419			1.4	%		547,877			1.9	%		(13,978	)		(108,436	)
Other real estate owned (“OREO”)		89,126						93,239						85,077						(4,113	)		4,049

Total non-performing assets [1]	$	528,567					$	546,658					$	632,954					$	(18,091	)	$	(104,387	)

Accruing loans past due 90 days or more [2]	$	351,614					$	340,503					$	480,767					$	11,111		$	(129,153	)

Ratios:
Non-performing assets to total assets		0.78	%					0.77	%					0.84	%
Non-performing loans held-in-portfolio to loans held-in-portfolio		1.37						1.44						1.87
Allowance for credit losses to loans held-in-portfolio		2.25						2.23						2.38
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		163.91						155.07						126.92

[1]	There were no non-performing loans held-for-sale as of December 31, 2022, September 30, 2022 and December 31, 2021.

[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 $14 million at December 31, 2022, 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, 2022 - $9 million; December 31, 2021 - $13 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 $190 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2022 (September 30, 2022 - $198 million; December 31, 2021 - $304 million). Furthermore, the Corporation has approximately $42 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, 2022 - $42 million; December 31, 2021 - $50 million).

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)


Commercial loans held-in-portfolio:
	Quarter ended									Quarter ended
	31-Dec-22									30-Sep-22
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	87,448		$	16,428		$	103,876		$	96,493		$	7,446		$	103,939
Plus:
New non-performing loans		5,770			8,572			14,342			5,913			14,965			20,878
Advances on existing non-performing loans		—			7			7			—			12			12
Less:
Non-performing loans transferred to OREO		(445	)		—			(445	)		(352	)		—			(352	)
Non-performing loans charged-off		(131	)		(8,725	)		(8,856	)		(4,534	)		(48	)		(4,582	)
Loans returned to accrual status / loan collections		(10,471	)		(5,414	)		(15,885	)		(10,072	)		(5,947	)		(16,019	)

Ending balance NPLs	$	82,171		$	10,868		$	93,039		$	87,448		$	16,428		$	103,876


Mortgage loans held-in-portfolio:
	Quarter ended									Quarter ended
	31-Dec-22									30-Sep-22
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	252,773		$	21,533		$	274,306		$	284,670		$	20,192		$	304,862
Plus:
New non-performing loans		34,449			3,561			38,010			29,345			4,739			34,084
Advances on existing non-performing loans		—			1			1			—			55			55
Less:
Non-performing loans transferred to OREO		(7,242	)		—			(7,242	)		(5,604	)		—			(5,604	)
Non-performing loans charged-off		(90	)		—			(90	)		(689	)		—			(689	)
Loans returned to accrual status / loan collections		(37,499	)		(4,607	)		(42,106	)		(54,949	)		(3,453	)		(58,402	)

Ending balance NPLs	$	242,391		$	20,488		$	262,879		$	252,773		$	21,533		$	274,306


Total non-performing loans held-in-portfolio (excluding consumer):
	Quarter ended									Quarter ended
	31-Dec-22									30-Sep-22
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	340,221		$	37,961		$	378,182		$	381,163		$	27,638		$	408,801
Plus:
New non-performing loans		40,219			12,133			52,352			35,258			19,704			54,962
Advances on existing non-performing loans		—			8			8			—			67			67
Less:
Non-performing loans transferred to OREO		(7,687	)		—			(7,687	)		(5,956	)		—			(5,956	)
Non-performing loans charged-off		(221	)		(8,725	)		(8,946	)		(5,223	)		(48	)		(5,271	)
Loans returned to accrual status / loan collections		(47,970	)		(10,021	)		(57,991	)		(65,021	)		(9,400	)		(74,421	)

Ending balance NPLs	$	324,562		$	31,356		$	355,918		$	340,221		$	37,961		$	378,182

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

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

(Unaudited)


	Quarters ended
(Dollars in thousands)	31-Dec-22			30-Sep-22			31-Dec-21
Balance at beginning of period - loans held-in-portfolio	$	703,096		$	681,750		$	718,575
Provision for credit losses (benefit)		48,332			39,519			(31,421	)
Initial allowance for credit losses - PCD Loans		74			59			331

		751,502			721,328			687,485

Net loans charged-off (recovered):
BPPR
Commercial		(2,100	)		(1,150	)		(11,346	)
Construction		—			—			(1,518	)
Lease financing		2,221			1,338			564
Mortgage		(6,135	)		(2,165	)		(4,398	)
Consumer		25,860			20,373			9,083

Total BPPR		19,846			18,396			(7,615	)

Popular U.S.
Commercial		8,394			(511	)		(387	)
Construction		—						(213	)
Mortgage		(32	)		(23	)		569
Consumer		2,992			370			(235	)

Total Popular U.S.		11,354			(164	)		(266	)

Total loans charged-off (recovered) - Popular, Inc.		31,200			18,232			(7,881	)

Balance at end of period - loans held-in-portfolio	$	720,302		$	703,096		$	695,366

Balance at beginning of period - unfunded commitments	$	7,307		$	6,904		$	8,400
Provision for credit losses (benefit)		1,498			403			(503	)

Balance at end of period - unfunded commitments [1]	$	8,805		$	7,307		$	7,897

POPULAR, INC.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.39	%		0.24	%		(0.11	)%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		154.91	%		216.76	%		N.M.
BPPR
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.35	%		0.34	%		(0.15	)%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		223.64	%		155.98	%		N.M.
Popular U.S.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.49	%		(0.01	)%		(0.01	)%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		34.78	%		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-22			31-Dec-21
	Total			Total
Balance at beginning of period - loans held-in-portfolio	$	695,366		$	896,250
Provision for credit losses (benefit)		83,307			(183,345	)
Initial allowance for credit losses - PCD Loans		915			3,142

		779,588			716,047

Net loans charged-off (recovered):
BPPR
Commercial		(10,892	)		(18,300	)
Construction		(811	)		1,697
Lease financing		3,792			1,379
Mortgage		(15,743	)		2,729
Consumer		72,730			32,207

Total BPPR		49,076			19,712

Popular U.S.
Commercial		7,393			(1,247	)
Construction		(1,132	)		(120	)
Mortgage		(12	)		18
Consumer		3,961			2,318

Total Popular U.S.		10,210			969

Total loans charged-off - Popular, Inc.		59,286			20,681

Balance at end of period - loans held-in-portfolio	$	720,302		$	695,366

Balance at beginning of period - unfunded commitments	$	7,897		$	15,851
Provision for credit losses (benefit)		908			(7,954	)

Balance at end of period - unfunded commitments [1]	$	8,805		$	7,897

POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio		0.20	%		0.07	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		140.52	%		N.M.
BPPR
Annualized net charge-offs to average loans held-in-portfolio		0.23	%		0.09	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		141.71	%		N.M.
Popular U.S.
Annualized net charge-offs to average loans held-in-portfolio		0.12	%		0.01	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		134.80	%		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.

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

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

(Unaudited)


31-Dec-22
(Dollars in thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL	$	235,376		$	4,246		$	135,254		$	20,618		$	324,808		$	720,302
Total loans held-in-portfolio	$	15,739,132		$	757,984		$	7,397,471		$	1,585,739		$	6,597,443		$	32,077,769

ACL to loans held-in-portfolio		1.50	%		0.56	%		1.83	%		1.30	%		4.92	%		2.25	%


30-Sep-22
(Dollars in thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL	$	229,857		$	6,199		$	138,534		$	19,814		$	308,692		$	703,096
Total loans held-in-portfolio	$	15,366,859		$	816,290		$	7,311,713		$	1,538,504		$	6,489,822		$	31,523,188

ACL to loans held-in-portfolio		1.50	%		0.76	%		1.89	%		1.29	%		4.76	%		2.23	%


Variance
(Dollars in thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL	$	5,519		$	(1,953	)	$	(3,280	)	$	804		$	16,116		$	17,206
Total loans held-in-portfolio	$	372,273		$	(58,306	)	$	85,758		$	47,235		$	107,621		$	554,581

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

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

(Unaudited)


31-Dec-22
BPPR
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	174,295		$	2,978		$	117,344		$	20,618		$	300,310		$	615,545
Loans held-in-portfolio	$	8,423,264		$	147,041		$	6,110,279		$	1,585,739		$	6,280,582		$	22,546,905

ACL to loans held-in-portfolio		2.07	%		2.03	%		1.92	%		1.30	%		4.78	%		2.73	%


30-Sep-22
BPPR
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	161,775		$	4,255		$	120,606		$	19,814		$	284,484		$	590,934
Loans held-in-portfolio	$	8,305,583		$	211,567		$	6,055,843		$	1,538,504		$	6,176,784		$	22,288,281

ACL to loans held-in-portfolio		1.95	%		2.01	%		1.99	%		1.29	%		4.61	%		2.65	%


Variance
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	12,520		$	(1,277	)	$	(3,262	)	$	804		$	15,826		$	24,611
Loans held-in-portfolio	$	117,681		$	(64,526	)	$	54,436		$	47,235		$	103,798		$	258,624

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

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

(Unaudited)


31-Dec-22
Popular U.S.
(In thousands)	Commercial			Construction			Mortgage			Consumer			Total
ACL	$	61,081		$	1,268		$	17,910		$	24,498		$	104,757
Loans held-in-portfolio	$	7,315,868		$	610,943		$	1,287,192		$	316,861		$	9,530,864

ACL to loans held-in-portfolio		0.83	%		0.21	%		1.39	%		7.73	%		1.10	%


30-Sep-22
Popular U.S.
(In thousands)	Commercial			Construction			Mortgage			Consumer			Total
ACL	$	68,082		$	1,944		$	17,928		$	24,208		$	112,162
Loans held-in-portfolio	$	7,061,276		$	604,723		$	1,255,870		$	313,038		$	9,234,907

ACL to loans held-in-portfolio		0.96	%		0.32	%		1.43	%		7.73	%		1.21	%


Variance
(In thousands)	Commercial			Construction			Mortgage			Consumer			Total
ACL	$	(7,001	)	$	(676	)	$	(18	)	$	290		$	(7,405	)
Loans held-in-portfolio	$	254,592		$	6,220		$	31,322		$	3,823		$	295,957

Popular, Inc.

Financial Supplement to Fourth Quarter 2022 Earnings Release

Table Q - Reconciliation to GAAP Financial Measures

(Unaudited)


(In thousands, except share or per share information)	31-Dec-22			30-Sep-22			31-Dec-21
Total stockholders’ equity	$	4,093,425		$	3,674,838		$	5,969,397
Less: Preferred stock		(22,143	)		(22,143	)		(22,143	)
Less: Goodwill		(827,428	)		(827,428	)		(720,293	)
Less: Other intangibles		(12,944	)		(13,738	)		(16,219	)

Total tangible common equity	$	3,230,910		$	2,811,529		$	5,210,742

Total assets	$	67,637,917		$	70,729,675		$	75,097,899
Less: Goodwill		(827,428	)		(827,428	)		(720,293	)
Less: Other intangibles		(12,944	)		(13,738	)		(16,219	)

Total tangible assets	$	66,797,545		$	69,888,509		$	74,361,387

Tangible common equity to tangible assets		4.84	%		4.02	%		7.01	%
Common shares outstanding at end of period		71,853,720			72,673,344			79,851,169
Tangible book value per common share	$	44.97		$	38.69		$	65.26


	Quarterly average
Total stockholders’ equity [1]	$	6,161,634		$	6,061,748		$	5,961,214
Less: Preferred Stock		(22,143	)		(22,143	)		(22,143	)
Less: Goodwill		(827,427	)		(759,318	)		(706,184	)
Less: Other intangibles		(13,440	)		(24,038	)		(19,889	)

Total tangible equity	$	5,298,624		$	5,256,249		$	5,212,998
Return on average tangible common equity		19.23	%		31.86	%		15.66	%

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



	Year-to-date average
Total stockholders’ equity [1]	$	6,009,225		$	5,777,652
Less: Preferred Stock		(22,143	)		(22,143	)
Less: Goodwill		(757,133	)		(679,959	)
Less: Other intangibles		(17,113	)		(20,861	)

Total tangible equity	$	5,212,836		$	5,054,689
Return on average tangible common equity		21.13	%		18.47	%

[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