Enhanced Investments - Financial Portal

Published: 2022-07-28 00:00:00 ET

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Exhibit 99.1

LOGO

Popular, Inc. Announces Second Quarter 2022 Financial Results

•

Net income of $211.4 million in Q2 2022, compared to net income of $211.7 million in Q1 2022.

•

Net interest margin of 3.09% in Q2 2022, compared to 2.75% in Q1 2022; net interest margin on a taxable equivalent basis of 3.45% in Q2 2022, compared to 3.05% in Q1 2022.

•

Credit Quality:

•

Non-performing loans held-in-portfolio (“NPLs”) decreased by $42.0 million from Q1 2022; NPLs to loans ratio at 1.6% vs. 1.8% in Q1 2022;

•

Net charge-offs (“NCOs”) increased by $2.3 million from Q1 2022; annualized NCOs at 0.08% of average loans held-in-portfolio vs. 0.05% in Q1 2022;

•

Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.24% vs. 2.29% in Q1 2022; and

•

ACL to NPLs at 142.7% vs. 130.4% in Q1 2022.

•

Common Equity Tier 1 ratio of 16.39%, Common Equity per Share of $55.78 and Tangible Book Value per Share of $46.18 at June 30, 2022.

SAN JUAN, Puerto Rico — (BUSINESS WIRE) — Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $211.4 million for the quarter ended June 30, 2022, compared to net income of $211.7 million for the quarter ended March 31, 2022.

Ignacio Alvarez, President and Chief Executive Officer, said: “We are very pleased with our results for the second quarter. We earned $211.4 million in net income, with increases in both net interest income and non-interest income as compared to the first quarter. Our net interest income increased by $39.6 million to $533.9 million, driven by improved margin and growth in our loan and investment portfolios. Loan growth was broad based with balances increasing in all categories, except mortgage. The increase in our net interest margin reflects higher interest rates and the strength of our deposit franchise. Consumer spending remained resilient during the quarter and deposit balances continued to grow. Credit quality remained strong with net charge offs at near record lows, and we continued to reduce our non-performing loans. Our liquidity and capital positions remain strong which provide us the flexibility to continue to invest for growth in the future while we continue returning capital to our shareholders.

While we are vigilant regarding the possible negative impacts of record inflation, higher interest rates and the war in Ukraine, we are still seeing growth in the U.S. and P.R. with a historically strong employment market and healthy consumer deposit and spending levels. In Puerto Rico we continue to benefit from the stimulative impact of federal disaster relief spending. We are confident in our ability to continue to deliver results for our shareholders at the same time as we invest in our people, businesses and communities.”

Significant Events

Acquisition of Key Customer Channels and Amendments to Commercial Contracts with Evertec

On July 1, 2022, the Corporation’s wholly owned subsidiary, Banco Popular de Puerto Rico (“BPPR”) completed its previously announced acquisition of certain assets and assumption of certain liabilities used by Evertec Group, LLC (“Evertec Group”), a wholly owned subsidiary of Evertec, Inc. (“Evertec”) (NYSE: EVTC), to service certain BPPR channels.

As a result of the closing of the transaction, BPPR acquired from Evertec Group certain critical channels, including BPPR’s retail and business digital banking and commercial cash management applications. BPPR also entered into amended and restated service agreements with Evertec Group pursuant to which Evertec Group will continue to provide various information technology and transaction processing services to Popular, BPPR and their respective subsidiaries.

Under the amended service agreements, Popular will have greater optionality to develop and enhance technology platforms and more flexibility to select service vendors, as Evertec Group will no longer have exclusive rights to provide certain of Popular’s technology services. This is expected to improve Popular’s ability to meet its customer needs in a timely manner. In addition, the amended service agreements are projected to reduce service costs as a result of discounted pricing and lowered caps on contractual pricing escalators tied to the Consumer Price Index. As part of the transaction, BPPR also strengthened its relationship with Evertec in the payments business, including through the incorporation of a revenue sharing structure for BPPR in connection with its merchant acquiring relationship with Evertec.

As consideration for the transaction, BPPR delivered to Evertec Group 4,589,169 shares of Evertec common stock valued at closing at $169 million (based on Evertec’s stock price on June 30, 2022 of $36.88), resulting in an after-tax gain of approximately $112 million.

In terms of capital, the transaction results in a negative impact of approximately $55 million in Popular’s tangible book value as a result of the net effect of the after-tax gain of the Evertec shares used as consideration for the transaction (approximately $112 million), minus approximately $167 million in goodwill and other intangible assets recognized by the Corporation in connection with the transaction and the effect of purchase accounting-related adjustments.

As a result of the transfer of the shares used as consideration for the transaction, Popular’s ownership stake in Evertec was reduced from approximately 16.3% to approximately 10.6% at the closing of the transaction. In connection with the transaction, Popular has agreed to further reduce its voting interest in Evertec to no more than 4.5%, whether through selling shares of Evertec common stock or a conversion of such shares into non-voting preferred stock within 90 days of the closing of the transaction. Popular expects to sell down its stake in Evertec to no more than 4.5%, subject to market conditions, and intends to return to shareholders, via common stock repurchases, any after-tax gains resulting from such sale, subject to the receipt of regulatory approvals.

Completion of Accelerated Share Repurchase

On July 12, 2022, the Corporation completed its previously announced accelerated share repurchase program for the repurchase of an aggregate $400 million of Popular’s common stock. Under the terms of the accelerated share repurchase agreement (the “ASR Agreement”), on March 2, 2022 the Corporation made an initial payment of $400 million and received an initial delivery of 3,483,942 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 $320 million in treasury stock and $80 million as a reduction in capital surplus. Upon the final settlement of the ASR Agreement, the Corporation received an additional 1,582,922 shares of common stock and recognized approximately $120 million as treasury stock with a corresponding increase in its capital surplus account. The Corporation repurchased a total of 5,066,864 shares at an average purchase price of $78.9443 under the ASR Agreement.

Earnings Highlights


(Unaudited)	Quarters ended								Six months ended
(Dollars in thousands, except per share information)	30-Jun-22		31-Mar-22			30-Jun-21			30-Jun-22			30-Jun-21
Net interest income	$	533,862	$	494,312		$	487,802		$	1,028,174		$	966,914
Provision for credit losses (benefit)		9,362		(15,500	)		(17,015	)		(6,138	)		(99,241	)

Net interest income after provision for credit losses (benefit)		524,500		509,812			504,817			1,034,312			1,066,155
Other non-interest income		157,411		154,692			154,540			312,103			308,193
Operating expenses		406,278		402,339			368,185			808,617			743,713

Income before income tax		275,633		262,165			291,172			537,798			630,635
Income tax expense		64,212		50,479			73,093			114,691			149,924

Net income	$	211,421	$	211,686		$	218,079		$	423,107		$	480,711

Net income applicable to common stock	$	211,068	$	211,333		$	217,726		$	422,401		$	480,005

Net income per common share-basic	$	2.77	$	2.69		$	2.67		$	5.46		$	5.80

Net income per common share-diluted	$	2.77	$	2.69		$	2.66		$	5.46		$	5.79

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 June 30, 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 June 30, 2022 was $533.9 million, compared to $494.3 million in the previous quarter, an increase of $39.6 million. Net interest income, on a taxable equivalent basis, for the second quarter of 2022 was $595.5 million compared to $548.1 million in the first quarter of 2022, or an increase of $47.4 million.

Net interest margin for the quarter increased 34 basis points to 3.09% from 2.75% in the first quarter of 2022. On a taxable equivalent basis, net interest margin for the second quarter of 2022 was 3.45%, compared to 3.05% in the prior quarter. The improved net interest margin is driven by a higher interest rate environment that resulted in higher yields on variable rate assets, as well as new originations and investments, partially offset by an increase in funding costs. The composition of earning assets in the second quarter of the year also impacted the net interest margin positively as a higher proportion of earning assets was concentrated in loan portfolios. The main variances in net interest income on a taxable equivalent basis were:

•

higher interest income from money market, trading and investment securities by $30.9 million, resulting from higher yield of the portfolio by 44 basis points driven by the increase in the interest on excess funds at the Federal Reserve and higher yield of the investment portfolio. The latter increase is mainly due to the maturity of U.S. Treasury Bills held in the available-for-sale securities portfolio and further re-investment on longer-term tax-exempt U.S. Treasury notes;

•

higher interest income from commercial loans by $10.9 million due to higher average volume of loans by $486 million in a higher rate environment, partially offset by lower average volume and income of loans under the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) by $116 million and $5.5 million, respectively. Both BPPR and Popular Bank (“PB” or “Popular U.S.”) experienced growth in commercial loans despite the anticipated cancellation of PPP loans. Quarter-over-quarter, the Corporation’s loan portfolio increased by $654 million, in average, reflecting increases across all major loan segments except mortgages, including loan growth of $351 million in BPPR. Furthermore, one more day in the quarter resulted in approximately $1.9 million increase in interest income; and

•

higher interest income from consumer loans, mainly driven by higher average volume by $116 million and increase in the yield of the portfolio by 14 basis points; both banks contributed to the increase in consumer loans;

partially offset by:

•

higher interest expense on deposits by $3.0 million due to the increase in rates, partially offset by the decrease in average deposit balances driven by Puerto Rico government deposits due to the closing of the Commonwealth of Puerto Rico’s Plan of Adjustment at the end of the first quarter.

The Corporation recognized income of $5.1 million related to loans issued under the SBA PPP, compared to $10.6 million in the previous quarter. These loans carried a yield of approximately 15.04% in the quarter, including the amortization of fees received under the program, compared to 17.01% in the first quarter of 2022. This portfolio of loans issued under the SBA PPP declined by $68 million in BPPR to a balance of $46 million and declined by $16 million in PB to a balance of $43 million. On June 30, 2022, the SBA PPP portfolio at BPPR and PB had a remaining aggregate balance of unamortized fees of $3.3 million.

Net interest income for the BPPR segment amounted to $447.8 million for the second quarter of 2022, compared to $415.2 million for the first quarter of 2022. Net interest margin for the second and first quarters of 2022 was 3.02% and 2.67%, respectively, an improvement of 35 basis points quarter-over-quarter. As discussed above, the net interest margin was impacted by higher volume and yield on investments and loans, partially offset by lower SBA PPP income. The cost of interest-bearing deposits was 0.19%, increasing 3 basis points from the first quarter of 2022. Total deposit cost for the quarter also increased by 2 basis points to 0.14%.

Net interest income for PB was $93.4 million for the quarter ended June 30, 2022, compared to $86.5 million during the previous quarter. Net interest margin for the quarter was 3.76%, an increase of 20 basis points from the 3.56% reported in the first quarter. The increase in net interest income results mostly from a higher volume of commercial and consumer loans, partially offset by higher costs on deposit driven by the change in market rates. The cost of interest-bearing deposits was 0.54%, increasing 8 basis points from the 0.46% reported in the first quarter of 2022, while the total cost of deposits, including demand deposits, was 0.42%, an increase of 6 basis points when compared to 0.36% in the previous quarter.

Non-interest income

Non-interest income increased by $2.7 million to $157.4 million for the quarter ended June 30, 2022, compared to $154.7 million for the quarter ended March 31, 2022. The variance in non-interest income was primarily driven by:

•

higher other service fees by $4.3 million due to higher credit card fees by $4.5 million mainly in interchange income and higher debit card fees, partially offset by lower insurance fees;

partially offset by:

•

higher losses on equity securities by $2.0 million mainly related to securities held for deferred benefit plans, which have an offsetting positive variance in personnel costs; and

•

lower other operating income by $3.1 million mainly due to lower earnings from the portfolio of equity method investments and lower income from the sale of auto rental units.

Refer to Table B for further details.

Operating expenses

Operating expenses for the second quarter of 2022 totaled $406.3 million, an increase of $3.9 million when compared to the first quarter of 2022. The variance in operating expenses was driven primarily by:

•

higher personnel cost by $1.8 million mainly due to higher incentives related to the profit-sharing plan which is tied to the Corporation’s financial performance, and higher salaries; partially offset by lower performance shares and restricted stock expenses;

•

higher professional fees by $6.4 million mainly due to higher programming, processing and other technology services due to higher processing and service charges; and

•

higher business promotion expenses by $6.3 million mainly due to higher credit cards rewards expense by $3.9 million as a result of transactional volumes.

partially offset by:

•

lower other real estate owned (OREO) expenses by $5.1 million mainly due to higher gain on sale on mortgage and commercial properties; and

•

lower other operating expenses by $6.3 million mainly as result of lower legal reserves.

Full-time equivalent employees were 8,615 as of June 30, 2022, compared to 8,492 as of March 31, 2022.

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

Income taxes

For the quarter ended June 30, 2022, the Corporation recorded an income tax expense of $64.2 million, compared to $50.5 million for the previous quarter. The increase in income tax expense was mainly attributable to higher income before tax and lower exempt income during the second quarter of 2022. The effective tax rate (“ETR”) for the second quarter of 2022 was 23%, compared to 19% 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 2022 to be within a range from 17% to 20%. This range includes the impact of the recently closed Evertec transaction and the effect of the expected reduction in Popular’s voting interest in Evertec through the sale of its holdings of common stock or a conversion of such shares to non-voting preferred stock, either of which would trigger mark-to-market accounting on any remaining stake in Evertec.

Credit Quality

During the second quarter of 2022, the Corporation continued to show strong credit quality trends and low credit costs with low levels of NCOs and decreasing NPLs. We continue to closely monitor changes in the macroeconomic environment and on borrower performance, given potential economic headwinds, rising interest rates and geopolitical uncertainty. 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 second quarter of 2022:

•

At June 30, 2022, total non-performing loans held-in-portfolio decreased by $42.0 million from March 31, 2022. BPPR’s NPLs decreased by $42.0 million, mostly driven by lower commercial and mortgage NPLs by $21.3 million and $21.9 million, respectively. The mortgage NPLs decrease was mainly due to the combined effects of collection efforts, increased foreclosure activity and sustained low levels of early delinquency compared with pre-pandemic trends. PB’s NPLs remained flat quarter-over-quarter. At June 30, 2022, the ratio of NPLs to total loans held-in-portfolio was 1.6%, compared to 1.8% in the first quarter of 2022.

•

Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $5.2 million quarter-over-quarter. In BPPR, total inflows decreased by $6.0 million, mostly driven by lower commercial and mortgage inflows of $4.5 million and $1.5 million, respectively. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB remained essentially flat quarter-over-quarter.

•

NCOs amounted to $6.1 million, an unfavorable variance of $2.3 million when compared to the first quarter of 2022. PB’s NCOs reflected an unfavorable variance of $2.5 million, as the prior quarter was a net recovery of $1.7 million. BPPR‘s NCOs were $5.3 million, flat quarter-over-quarter. During the second quarter of 2022, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.08%, compared to 0.05% in the first quarter of 2022. Refer to Table M for further information on net charge-offs and related ratios.

•

At June 30, 2022, the ACL increased by $4.0 million, or 0.6%, from the first quarter of 2022 to $681.8 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 current baseline forecast continues to show a favorable economic scenario. Annualized 2022 GDP growth of 2.8% is expected for both Puerto Rico and United States, compared to 3.5% and 3.7%, respectively, in the previous quarter. Changes in assumptions related to fiscal stimulus, higher energy prices and tighter financial market conditions contributed to the reduction. The 2022 average unemployment rate is forecasted at 6.9% and 3.5% for Puerto Rico and United States, respectively, improving from 7.3% and 3.6%, respectively, in the previous forecast. Puerto Rico’s unemployment rate forecast benefits from the Bureau of Labor Statistics (“BLS”) revisions that showed a stronger than expected labor market.

•

In BPPR, the ACL increased by $4.0 million, mainly driven by higher loan volumes and changes in the macroeconomic scenarios. The ACL for the PB segment remained flat quarter-over-quarter as higher loan volumes in the commercial real estate and consumer portfolios offset reductions in qualitative reserves and favorable credit quality. The Corporation’s ratio of the allowance for credit losses to loans held-in-portfolio was 2.24% in the second quarter of 2022, compared to 2.29% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 142.7%, compared to 130.4% in the previous quarter.

•

The provision for credit losses for the loan portfolios for the second quarter of 2022 was an expense of $9.9 million, compared to a benefit of $14.4 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 $9.1 million, compared to a benefit of $12.7 million in the previous quarter, while the provision for the PB segment was an expense of $0.7 million, compared to a benefit of $1.7 million in the previous quarter.

•

The provision for unfunded commitments for the second quarter of 2022 was a benefit of $0.2 million, compared to a benefit of $0.8 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $0.3 million flat from the first quarter of 2022. 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-Jun-22			31-Mar-22			30-Jun-21
Non-performing loans held-in-portfolio	$	477,924		$	519,921		$	685,183
Non-performing loans held-for-sale		—			—			8,700
Other real estate owned (“OREO”)		92,137			90,567			73,272

Total non-performing assets	$	570,061		$	610,488		$	767,155

Net charge-offs (recoveries) for the quarter	$	6,073		$	3,781		$	(1,291	)

Ratios:
Loans held-in-portfolio	$	30,370,936		$	29,588,190		$	29,062,617
Non-performing loans held-in-portfolio to loans held-in-portfolio		1.57	%		1.76	%		2.36	%
Allowance for credit losses to loans held-in-portfolio		2.24			2.29			2.70
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		142.65			130.36			114.68

Refer to Table K for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios


(Unaudited)	Quarters ended								Six months ended
(In thousands)	30-Jun-22		31-Mar-22			30-Jun-21			30-Jun-22			30-Jun-21
Provision for credit losses (benefit) - loan portfolios:
BPPR	$	9,128	$	(12,661	)	$	(22,488	)	$	(3,533	)	$	(62,464	)
Popular U.S.		733		(1,744	)		4,988			(1,011	)		(30,815	)

Total provision for credit losses (benefit) - loan portfolios	$	9,861	$	(14,405	)	$	(17,500	)	$	(4,544	)	$	(93,279	)

Credit Quality by Segment


(Unaudited)
(In thousands)	Quarters ended
BPPR	30-Jun-22			31-Mar-22			30-Jun-21
Provision for credit losses (benefit) - loan portfolios	$	9,128		$	(12,661	)	$	(22,488	)
Net charge-offs (recoveries)		5,332			5,502			(1,483	)
Total non-performing loans held-in-portfolio		444,831			486,816			656,789
Allowance / loans held-in-portfolio		2.70	%		2.74	%		3.13	%
Allowance / non-performing loans held-in-portfolio		130.52	%		118.45	%		100.77	%


	Quarters ended
Popular U.S.	30-Jun-22			31-Mar-22			30-Jun-21
Provision for credit losses (benefit) - loan portfolios	$	733		$	(1,744	)	$	4,988
Net charge-offs (recoveries)		741			(1,721	)		192
Total non-performing loans held-in-portfolio		33,093			33,105			28,394
Allowance / loans held-in-portfolio		1.14	%		1.18	%		1.57	%
Allowance / non-performing loans held-in-portfolio		305.72	%		305.64	%		436.49	%

Financial Condition Highlights


(Unaudited)
(In thousands)	30-Jun-22		31-Mar-22		30-Jun-21
Cash and money market investments	$	10,215,946	$	10,508,840	$	18,333,650
Investment securities		28,138,453		26,658,289		22,647,401
Loans		30,370,936		29,588,190		29,062,617
Total assets		71,501,931		69,525,082		72,657,293
Deposits		65,327,664		62,862,295		64,641,776
Borrowings		959,135		1,060,706		1,267,545
Total liabilities		67,208,582		64,853,836		66,842,679
Stockholders’ equity		4,293,349		4,671,246		5,814,614

Total assets increased by $2.0 billion from the first quarter of 2022, driven by:

•

an increase in debt securities held-to-maturity of $1.6 billion due to the purchase of U.S. Treasuries; and

•

an increase in loans held-in-portfolio of $0.8 billion mainly due to commercial loans growth at both BPPR and PB and an increase in consumer loans, mainly at BPPR, including auto loans, credit cards and other consumer loans;

partially offset by:

•

a decrease of $0.4 billion in money market investments, in part due to the purchase of U.S. Treasury securities;

Total liabilities increased by $2.4 billion from the first quarter of 2022, driven by:

•

an increase of $2.5 billion in deposits, mainly in Puerto Rico public sector as well as private demand deposit and savings accounts;

partially offset by:

•

a decrease in borrowings of $99.7 million, mainly due to the maturity during this quarter of $100 million in borrowings at PB.

Stockholders’ equity decreased by $377.9 million from the first quarter of 2022, principally due to an increase in accumulated unrealized losses on debt securities available-for-sale by $563.4 million due to a decline in the fair value of fixed-rate debt securities as a result of the rising interest rate environment, and to dividends, partially offset by the net income of $211.4 million for the quarter.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.39%, $55.78 and $46.18, respectively, at June 30, 2022, compared to 16.26%, $60.78 and $51.16 at March 31, 2022. 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 regarding Popular’s acquisition of certain assets and assumption of certain liabilities from EVERTEC and the transactions described in this press release (the “Transaction”) and 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 transition and integrate the assets acquired as part of the Transaction, 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 Transaction 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. 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, 2021, in our Form 10-Q for the quarter ended March 31, 2022 and in our Form 10-Q for the quarter ended June 30, 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 Thursday, July 28, 2022 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 a dial-in telephone number 1-844-200-6205 (Toll Free) or 1-646-904-5544 (Local). The dial-in access code is 491702.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Thursday, August 25, 2022. The replay dial in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 436694.

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

Popular, Inc.

Financial Supplement to Second 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 - 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 Second Quarter 2022 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)


	Quarters ended									Six months ended
	30-Jun-22			31-Mar-22			30-Jun-21			30-Jun-22			30-Jun-21
Basic EPS	$	2.77		$	2.69		$	2.67		$	5.46		$	5.80
Diluted EPS	$	2.77		$	2.69		$	2.66		$	5.46		$	5.79
Average common shares outstanding		76,171,784			78,443,706			81,609,435			77,301,469			82,748,275
Average common shares outstanding - assuming dilution		76,286,883			78,595,463			81,772,789			77,426,274			82,888,378
Common shares outstanding at end of period		76,576,397			76,487,523			80,656,480			76,576,397			80,656,480
Market value per common share	$	76.93		$	81.74		$	75.05		$	76.93		$	75.05
Market capitalization - (In millions)	$	5,891		$	6,252		$	6,053		$	5,891		$	6,053
Return on average assets		1.17	%		1.14	%		1.24	%		1.15	%		1.42	%
Return on average common equity		14.58	%		14.38	%		15.43	%		14.48	%		17.08	%
Net interest margin (non-taxable equivalent basis)		3.09	%		2.75	%		2.91	%		2.92	%		2.99	%
Net interest margin (taxable equivalent basis) -non-GAAP		3.45	%		3.05	%		3.22	%		3.24	%		3.31	%
Common equity per share	$	55.78		$	60.78		$	71.82		$	55.78		$	71.82
Tangible common book value per common share (non-GAAP) [1]	$	46.18		$	51.16		$	63.24		$	46.18		$	63.24
Tangible common equity to tangible assets (non-GAAP) [1]		5.00	%		5.69	%		7.09	%		5.00	%		7.09	%
Return on average tangible common equity [1]		16.70	%		16.40	%		17.58	%		16.55	%		19.46	%
Tier 1 capital		16.46	%		16.33	%		16.62	%		16.46	%		16.62	%
Total capital		18.29	%		18.19	%		19.09	%		18.29	%		19.09	%
Tier 1 leverage		7.56	%		6.98	%		7.34	%		7.56	%		7.34	%
Common Equity Tier 1 capital		16.39	%		16.26	%		16.55	%		16.39	%		16.55	%

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

POPULAR, INC.

Financial Supplement to Second Quarter 2022 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)


	Quarters ended						Variance			Quarter ended			Variance			Six months ended
							Q2 2022						Q2 2022
(In thousands, except per share information)	30-Jun-22			31-Mar-22			vs. Q1 2022			30-Jun-21			vs. Q2 2021			30-Jun-22			30-Jun-21
Interest income:
Loans	$	446,245		$	426,791		$	19,454		$	433,781		$	12,464		$	873,036		$	868,430
Money market investments		23,742			6,464			17,278			4,274			19,468			30,206			7,386
Investment securities		101,774			96,466			5,308			91,706			10,068			198,240			177,396

Total interest income		571,761			529,721			42,040			529,761			42,000			1,101,482			1,053,212

Interest expense:
Deposits		27,827			24,783			3,044			28,060			(233	)		52,610			58,261
Short-term borrowings		248			80			168			62			186			328			205
Long-term debt		9,824			10,546			(722	)		13,837			(4,013	)		20,370			27,832

Total interest expense		37,899			35,409			2,490			41,959			(4,060	)		73,308			86,298

Net interest income		533,862			494,312			39,550			487,802			46,060			1,028,174			966,914
Provision for credit losses (benefit)		9,362			(15,500	)		24,862			(17,015	)		26,377			(6,138	)		(99,241	)

Net interest income after provision for credit losses (benefit)		524,500			509,812			14,688			504,817			19,683			1,034,312			1,066,155

Service charges on deposit accounts		41,809			40,713			1,096			40,153			1,656			82,522			79,773
Other service fees		81,451			77,134			4,317			76,382			5,069			158,585			147,010
Mortgage banking activities		13,575			12,865			710			7,448			6,127			26,440			24,791
Net (loss) gain, including impairment, on equity securities		(4,109	)		(2,094	)		(2,015	)		1,565			(5,674	)		(6,203	)		1,986
Net loss on trading account debt securities		51			(723	)		774			(47	)		98			(672	)		(92	)
Net loss on sale of loans, including valuation adjustments on loans held-for-sale		—			—			—			(73	)		73			—			(73	)
Adjustments (expense) to indemnity reserves on loans sold		170			(745	)		915			1,668			(1,498	)		(575	)		970
Other operating income		24,464			27,542			(3,078	)		27,444			(2,980	)		52,006			53,828

Total non-interest income		157,411			154,692			2,719			154,540			2,871			312,103			308,193

Operating expenses:
Personnel costs
Salaries		101,847			98,673			3,174			90,294			11,553			200,520			179,629
Commissions, incentives and other bonuses		29,787			31,339			(1,552	)		26,374			3,413			61,126			59,592
Pension, postretirement and medical insurance		13,730			12,783			947			13,289			441			26,513			24,213
Other personnel costs, including payroll taxes		23,424			24,201			(777	)		24,247			(823	)		47,625			50,249

Total personnel costs		168,788			166,996			1,792			154,204			14,584			335,784			313,683
Net occupancy expenses		26,214			24,723			1,491			24,562			1,652			50,937			50,575
Equipment expenses		25,088			23,479			1,609			22,805			2,283			48,567			44,380
Other taxes		15,780			15,715			65			13,205			2,575			31,495			27,164
Professional fees
Collections, appraisals and other credit related fees		2,802			2,226			576			3,486			(684	)		5,028			6,806
Programming, processing and other technology services		73,305			69,374			3,931			67,152			6,153			142,679			133,518
Legal fees, excluding collections		3,091			3,954			(863	)		2,367			724			7,045			4,732
Other professional fees		35,674			32,943			2,731			28,148			7,526			68,617			56,045

Total professional fees		114,872			108,497			6,375			101,153			13,719			223,369			201,101
Communications		5,993			6,147			(154	)		6,005			(12	)		12,140			12,838
Business promotion		21,353			15,083			6,270			16,511			4,842			36,436			29,032
FDIC deposit insurance		6,463			7,372			(909	)		5,742			721			13,835			11,710
Other real estate owned (OREO) income		(7,806	)		(2,713	)		(5,093	)		(4,299	)		(3,507	)		(10,519	)		(8,832	)
Credit and debit card processing, volume, interchange and other expenses		11,375			12,509			(1,134	)		10,917			458			23,884			23,371
Other operating expenses
Operational losses		4,061			11,825			(7,764	)		6,528			(2,467	)		15,886			14,424
All other		13,302			11,815			1,487			9,597			3,705			25,117			21,961

Total other operating expenses		17,363			23,640			(6,277	)		16,125			1,238			41,003			36,385
Amortization of intangibles		795			891			(96	)		1,255			(460	)		1,686			2,306

Total operating expenses		406,278			402,339			3,939			368,185			38,093			808,617			743,713

Income before income tax		275,633			262,165			13,468			291,172			(15,539	)		537,798			630,635
Income tax expense		64,212			50,479			13,733			73,093			(8,881	)		114,691			149,924

Net income	$	211,421		$	211,686		$	(265	)	$	218,079		$	(6,658	)	$	423,107		$	480,711

Net income applicable to common stock	$	211,068		$	211,333		$	(265	)	$	217,726		$	(6,658	)	$	422,401		$	480,005

Net income per common share - basic	$	2.77		$	2.69		$	0.08		$	2.67		$	0.10		$	5.46		$	5.80

Net income per common share - diluted	$	2.77		$	2.69		$	0.08		$	2.66		$	0.11		$	5.46		$	5.79

Dividends Declared per Common Share	$	0.55		$	0.55		$	—		$	0.45		$	0.10		$	1.10		$	0.85

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)


										Variance
										Q2 2022 vs.
(In thousands)	30-Jun-22			31-Mar-22			30-Jun-21			Q1 2022
Assets:
Cash and due from banks	$	528,590		$	439,148		$	530,849		$	89,442
Money market investments		9,687,356			10,069,692			17,802,801			(382,336	)
Trading account debt securities, at fair value		32,317			36,042			35,931			(3,725	)
Debt securities available-for-sale, at fair value		26,266,251			26,359,915			22,335,167			(93,664	)
Debt securities held-to-maturity, at amortized cost		1,664,015			75,984			88,801			1,588,031
Less: Allowance for credit losses		7,495			7,844			10,214			(349	)

Total debt securities held-to-maturity, net		1,656,520			68,140			78,587			1,588,380

Equity securities		175,870			186,348			187,502			(10,478	)
Loans held-for-sale, at lower of cost or fair value		28,546			55,150			85,315			(26,604	)
Loans held-in-portfolio		30,643,443			29,856,356			29,286,225			787,087
Less: Unearned income		272,507			268,166			223,608			4,341
Allowance for credit losses		681,750			677,792			785,790			3,958

Total loans held-in-portfolio, net		29,689,186			28,910,398			28,276,827			778,788

Premises and equipment, net		490,152			488,390			486,443			1,762
Other real estate		92,137			90,567			73,272			1,570
Accrued income receivable		216,780			204,466			203,419			12,314
Mortgage servicing rights, at fair value		129,877			125,358			119,467			4,519
Other assets		1,773,523			1,755,847			1,750,151			17,676
Goodwill		720,293			720,293			671,122			—
Other intangible assets		14,533			15,328			20,440			(795	)

Total assets	$	71,501,931		$	69,525,082		$	72,657,293		$	1,976,849

Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing	$	16,663,259		$	16,096,666		$	14,920,887		$	566,593
Interest bearing		48,664,405			46,765,629			49,720,889			1,898,776

Total deposits		65,327,664			62,862,295			64,641,776			2,465,369

Assets sold under agreements to repurchase		70,925			72,819			90,925			(1,894	)
Notes payable		888,210			987,887			1,176,620			(99,677	)
Other liabilities		921,783			930,835			933,358			(9,052	)

Total liabilities		67,208,582			64,853,836			66,842,679			2,354,746

Stockholders’ equity:
Preferred stock		22,143			22,143			22,143			—
Common stock		1,046			1,046			1,045			—
Surplus		4,576,478			4,571,111			4,506,659			5,367
Retained earnings		3,311,951			3,143,004			2,670,885			168,947
Treasury stock		(1,665,253	)		(1,668,820	)		(1,290,427	)		3,567
Accumulated other comprehensive loss, net of tax		(1,953,016	)		(1,397,238	)		(95,691	)		(555,778	)

Total stockholders’ equity		4,293,349			4,671,246			5,814,614			(377,897	)

Total liabilities and stockholders’ equity	$	71,501,931		$	69,525,082		$	72,657,293		$	1,976,849

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

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

(Unaudited)


	Quarters ended																								Variance
	30-Jun-22								31-Mar-22								30-Jun-21								Q2 2022 vs. Q1 2022									Q2 2022 vs. Q2 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, trading and investment securities	$	39,326		$	175.7		1.79	%	$	43,304		$	144.8		1.35	%	$	38,136		$	137.5		1.44	%	($	3,978	)	$	30.9			0.44	%	$	1,190		$	38.2			0.35	%
Loans:
Commercial		14,227			183.0		5.16			13,741			172.1		5.08			13,539			176.9		5.24			486			10.9			0.08			688			6.1			(0.08	)
Construction		781			11.1		5.71			726			9.8		5.45			858			11.6		5.43			55			1.3			0.26			(77	)		(0.5	)		0.28
Mortgage		7,294			97.1		5.33			7,388			96.8		5.24			7,765			99.4		5.12			(94	)		0.3			0.09			(471	)		(2.3	)		0.21
Consumer		2,654			75.0		11.33			2,538			70.0		11.19			2,431			68.7		11.34			116			5.0			0.14			223			6.3			(0.01	)
Auto		3,499			70.1		8.04			3,460			69.3		8.12			3,280			70.1		8.58			39			0.8			(0.08	)		219			—			(0.54	)
Lease financing		1,445			21.4		5.91			1,393			20.7		5.95			1,262			19.0		6.01			52			0.7			(0.04	)		183			2.4			(0.10	)

Total loans		29,900			457.7		6.14			29,246			438.7		6.06			29,135			445.7		6.13			654			19.0			0.08			765			12.0			0.01

Total interest earning assets	$	69,226		$	633.4		3.67	%	$	72,550		$	583.5		3.25	%	$	67,271		$	583.2		3.47	%	$	(3,324	)	$	49.9			0.42	%	$	1,955		$	50.2			0.20	%

Allowance for credit losses - loan portfolio		(682	)							(695	)							(801	)							13									119
Allowance for credit losses - investment securities		(8	)							(8	)							(10	)							—									2
Other non-interest earning assets		3,787								3,782								3,906								5									(119	)

Total average assets	$	72,323							$	75,629							$	70,366							$	(3,306	)							$	1,957

Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market	$	24,897		$	8.3		0.13	%	$	28,289		$	7.3		0.10	%	$	25,102		$	8.0		0.13	%	$	(3,392	)	$	1.0			0.03	%	$	(205	)	$	0.3			-	%
Savings		16,363			6.9		0.17			16,434			6.6		0.16			15,384			6.9		0.18			(71	)		0.3			0.01			979			—			(0.01	)
Time deposits		7,044			12.6		0.72			6,737			10.9		0.66			7,104			13.2		0.74			307			1.7			0.06			(60	)		(0.6	)		(0.02	)

Total interest-bearing deposits		48,304			27.8		0.23			51,460			24.8		0.20			47,590			28.1		0.24			(3,156	)		3.0			0.03			714			(0.3	)		(0.01	)
Borrowings		1,043			10.1		3.87			1,105			10.6		3.87			1,316			13.9		4.24			(62	)		(0.5	)		—			(273	)		(3.8	)		(0.37	)

Total interest-bearing liabilities		49,347			37.9		0.31			52,565			35.4		0.27			48,906			42.0		0.34			(3,218	)		2.5			0.04			441			(4.1	)		(0.03	)

Net interest spread							3.36	%							2.98	%							3.13	%								0.38	%								0.23	%

Non-interest bearing deposits		16,254								16,142								14,920								112									1,334
Other liabilities		894								939								857								(45	)								37
Stockholders’ equity		5,828								5,983								5,683								(155	)								145

Total average liabilities and stockholders’ equity	$	72,323							$	75,629							$	70,366							$	(3,306	)							$	1,957

Net interest income / margin on a taxable equivalent basis (Non-GAAP)				$	595.5		3.45	%				$	548.1		3.05	%				$	541.2		3.22	%				$	47.4			0.40	%				$	54.3			0.23	%
Taxable equivalent adjustment					61.6								53.8								53.4								7.8									8.2

Net interest income / margin non-taxable equivalent basis (GAAP)				$	533.9		3.09	%				$	494.3		2.75	%				$	487.8		2.91	%				$	39.6			0.34	%				$	46.1			0.18	%

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

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

(Unaudited)


	Six months ended
	30-Jun-22								30-Jun-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, trading and investment securities	$	41,304		$	320.6		1.56	%	$	35,958		$	267.0		1.49	%	$	5,346		$	53.6			0.07	%

Loans:
Commercial		13,987			355.2		5.12			13,582			355.9		5.30			405			(0.7	)		(0.18	)
Construction		754			20.9		5.58			884			23.5		5.38			(130	)		(2.6	)		0.20
Mortgage		7,341			193.9		5.28			7,816			197.8		5.06			(475	)		(3.9	)		0.22
Consumer		2,595			145.0		11.27			2,472			139.1		11.35			123			5.9			(0.08	)
Auto		3,480			139.4		8.08			3,241			138.3		8.63			239			1.1			(0.55	)
Lease financing		1,419			42.0		5.93			1,239			37.3		6.02			180			4.7			(0.09	)

Total loans		29,576			896.4		6.10			29,234			891.9		6.15			342			4.5			(0.05	)

Total interest earning assets	$	70,880		$	1,217.0		3.45	%	$	65,192		$	1,158.9		3.58	%	$	5,688		$	58.1			(0.13	)%

Allowance for credit losses - loan portfolio		(689	)							(845	)							156
Allowance for credit losses - investment securities		(8	)							(10	)							2
Other non-interest earning assets		3,779								3,900								(121	)

Total average assets	$	73,962							$	68,237							$	5,725

Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market	$	26,584		$	15.6		0.12	%	$	23,895		$	16.2		0.14	%	$	2,689		($	0.6	)		(0.02	)%
Savings		16,399			13.5		0.17			14,876			14.0		0.19			1,523			(0.5	)		(0.02	)
Time deposits		6,891			23.5		0.69			7,184			28.1		0.79			(293	)		(4.6	)		(0.10	)

Total interest-bearing deposits		49,874			52.6		0.21			45,955			58.3		0.26			3,919			(5.7	)		(0.05	)
Borrowings		1,074			20.7		3.88			1,330			28.0		4.24			(256	)		(7.3	)		(0.36	)

Total interest-bearing liabilities		50,948			73.3		0.29			47,285			86.3		0.37			3,663			(13.0	)		(0.08	)

Net interest spread							3.16	%							3.21	%								(0.05	)%

Non-interest bearing deposits		16,198								14,161								2,037
Other liabilities		911								1,103								(192	)
Stockholders’ equity		5,905								5,688								217

Total average liabilities and stockholders’ equity	$	73,962							$	68,237							$	5,725

Net interest income / margin on a taxable equivalent basis (Non-GAAP)				$	1,143.7		3.24	%				$	1,072.6		3.31	%				$	71.1			(0.07	)%
Taxable equivalent adjustment					115.5								105.7								9.8

Net interest income / margin non-taxable equivalent basis (GAAP)				$	1,028.2		2.92	%				$	966.9		2.99	%				$	61.3			(0.07	)%

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)


Mortgage Banking Activities
	Quarters ended									Variance						Six months ended						Variance
(In thousands)	30-Jun-22			31-Mar-22			30-Jun-21			Q2 2022 vs.Q1 2022			Q2 2022 vs.Q2 2021			30-Jun-22			30-Jun-21			2022 vs. 2021
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees	$	9,186		$	9,323		$	9,522		$	(137	)	$	(336	)	$	18,509		$	19,237		$	(728	)
Mortgage servicing rights fair value adjustments		2,257			1,088			(6,239	)		1,169			8,496			3,345			(5,727	)		9,072

Total mortgage servicing fees, net of fair value adjustments		11,443			10,411			3,283			1,032			8,160			21,854			13,510			8,344

Net gain (loss) on sale of loans, including valuation on loans held-for-sale		36			(1,534	)		5,197			1,570			(5,161	)		(1,498	)		10,172			(11,670	)

Trading account profit (loss):
Unrealized (losses) gains on outstanding derivative positions		(2	)		2			—			(4	)		(2	)		—			—			—
Realized gains (losses) on closed derivative positions		2,430			4,135			(866	)		(1,705	)		3,296			6,565			1,636			4,929

Total trading account profit (loss)		2,428			4,137			(866	)		(1,709	)		3,294			6,565			1,636			4,929

Losses on repurchased loans, including interest advances		(332	)		(149	)		(166	)		(183	)		(166	)		(481	)		(527	)		46

Total mortgage banking activities	$	13,575		$	12,865		$	7,448		$	710		$	6,127		$	26,440		$	24,791		$	1,649


Other Service Fees
	Quarters ended						Variance						Six months ended				Variance
(In thousands)	30-Jun-22		31-Mar-22		30-Jun-21		Q2 2022 vs.Q1 2022			Q2 2022 vs.Q2 2021			30-Jun-22		30-Jun-21		2022 vs. 2021
Other service fees:
Debit card fees	$	12,882	$	11,779	$	12,458	$	1,103		$	424		$	24,661	$	24,035	$	626
Insurance fees		12,017		14,156		12,773		(2,139	)		(756	)		26,173		25,601		572
Credit card fees		38,155		33,642		32,726		4,513			5,429			71,797		61,417		10,380
Sale and administration of investment products		6,017		5,791		5,970		226			47			11,808		11,510		298
Trust fees		6,143		5,927		6,165		216			(22	)		12,070		12,007		63
Other fees		6,237		5,839		6,290		398			(53	)		12,076		12,440		(364	)

Total other service fees	$	81,451	$	77,134	$	76,382	$	4,317		$	5,069		$	158,585	$	147,010	$	11,575

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

Table G - Loans and Deposits

(Unaudited)

Loans - Ending Balances


							Variance
(In thousands)	30-Jun-22		31-Mar-22		30-Jun-21		Q2 2022 vs.Q1 2022			Q2 2022 vs.Q2 2021
Loans held-in-portfolio:
Commercial	$	14,545,301	$	14,028,246	$	13,437,932	$	517,055		$	1,107,369
Construction		790,920		744,783		865,113		46,137			(74,193	)
Leasing		1,480,222		1,426,122		1,297,928		54,100			182,294
Mortgage		7,261,955		7,326,346		7,678,478		(64,391	)		(416,523	)
Auto		3,489,976		3,430,162		3,289,027		59,814			200,949
Consumer		2,802,562		2,632,531		2,494,139		170,031			308,423

Total loans held-in-portfolio	$	30,370,936	$	29,588,190	$	29,062,617	$	782,746		$	1,308,319

Loans held-for-sale:
Commercial	$	—	$	—	$	1,700	$	—		$	(1,700	)
Construction		—		—		7,000		—			(7,000	)
Mortgage		28,546		55,150		76,615		(26,604	)		(48,069	)

Total loans held-for-sale	$	28,546	$	55,150	$	85,315	$	(26,604	)	$	(56,769	)

Total loans	$	30,399,482	$	29,643,340	$	29,147,932	$	756,142		$	1,251,550

Deposits - Ending Balances


							Variance
(In thousands)	30-Jun-22		31-Mar-22		30-Jun-21		Q2 2022 vs. Q1 2022			Q2 2022 vs.Q2 2021
Demand deposits [1]	$	27,798,243	$	25,684,715	$	24,497,918	$	2,113,528		$	3,300,325
Savings, NOW and money market deposits (non-brokered)		29,672,655		29,318,333		32,452,829		354,322			(2,780,174	)
Savings, NOW and money market deposits (brokered)		761,244		768,558		683,021		(7,314	)		78,223
Time deposits (non-brokered)		6,896,786		6,964,848		6,979,349		(68,062	)		(82,563	)
Time deposits (brokered CDs)		198,736		125,841		28,659		72,895			170,077

Total deposits	$	65,327,664	$	62,862,295	$	64,641,776	$	2,465,369		$	685,888

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

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)


30-Jun-22
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	$	1,992	$	—	$	254	$	2,246	$	234,308	$	236,554	$	254	$	—
Commercial real estate:
Non-owner occupied		1,379		110		20,435		21,924		2,630,194		2,652,118		20,435		—
Owner occupied		4,894		2,860		32,155		39,909		1,366,840		1,406,749		32,155		—
Commercial and industrial		2,534		1,526		44,176		48,236		3,472,447		3,520,683		43,649		527
Construction		498		—		—		498		161,864		162,362		—		—
Mortgage		211,483		82,898		681,757		976,138		5,065,785		6,041,923		284,670		397,087
Leasing		9,970		2,164		4,665		16,799		1,463,423		1,480,222		4,665		—
Consumer:
Credit cards		5,785		4,142		8,896		18,823		947,876		966,699		—		8,896
Home equity lines of credit		—		—		—		—		3,122		3,122		—		—
Personal		11,216		6,043		19,045		36,304		1,351,796		1,388,100		19,045		—
Auto		56,577		13,815		28,045		98,437		3,391,539		3,489,976		28,045		—
Other		242		131		12,125		12,498		120,651		133,149		11,913		212

Total	$	306,570	$	113,689	$	851,553	$	1,271,812	$	20,209,845	$	21,481,657	$	444,831	$	406,722


31-Mar-22
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	$	2,130	$	189	$	274	$	2,593	$	160,648	$	163,241	$	274	$	—
Commercial real estate:
Non-owner occupied		3,646		93		20,627		24,366		2,536,174		2,560,540		20,627		—
Owner occupied		4,024		50		49,732		53,806		1,396,696		1,450,502		49,732		—
Commercial and industrial		1,218		169		48,167		49,554		3,333,918		3,383,472		47,149		1,018
Construction		715		—		—		715		126,610		127,325		—		—
Mortgage		182,397		79,374		736,338		998,109		5,125,554		6,123,663		306,560		429,778
Leasing		9,819		2,446		3,766		16,031		1,410,091		1,426,122		3,766		—
Consumer:
Credit cards		5,817		3,728		9,049		18,594		896,966		915,560		—		9,049
Home equity lines of credit		—		—		23		23		3,093		3,116		—		23
Personal		10,215		6,184		19,157		35,556		1,267,920		1,303,476		19,157		—
Auto		51,497		11,353		27,514		90,364		3,339,798		3,430,162		27,514		—
Other		537		37		12,184		12,758		112,322		125,080		12,037		147

Total	$	272,015	$	103,623	$	926,831	$	1,302,469	$	19,709,790	$	21,012,259	$	486,816	$	440,015


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	$	(138	)	$	(189	)	$	(20	)	$	(347	)	$	73,660		$	73,313		$	(20	)	$	—
Commercial real estate:
Non-owner occupied		(2,267	)		17			(192	)		(2,442	)		94,020			91,578			(192	)		—
Owner occupied		870			2,810			(17,577	)		(13,897	)		(29,856	)		(43,753	)		(17,577	)		—
Commercial and industrial		1,316			1,357			(3,991	)		(1,318	)		138,529			137,211			(3,500	)		(491	)
Construction		(217	)		—			—			(217	)		35,254			35,037			—			—
Mortgage		29,086			3,524			(54,581	)		(21,971	)		(59,769	)		(81,740	)		(21,890	)		(32,691	)
Leasing		151			(282	)		899			768			53,332			54,100			899			—
Consumer:
Credit cards		(32	)		414			(153	)		229			50,910			51,139			—			(153	)
Home equity lines of credit		—			—			(23	)		(23	)		29			6			—			(23	)
Personal		1,001			(141	)		(112	)		748			83,876			84,624			(112	)		—
Auto		5,080			2,462			531			8,073			51,741			59,814			531			—
Other		(295	)		94			(59	)		(260	)		8,329			8,069			(124	)		65

Total	$	34,555		$	10,066		$	(75,278	)	$	(30,657	)	$	500,055		$	469,398		$	(41,985	)	$	(33,293	)

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

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

(Unaudited)


30-Jun-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	$	—	$	187	$	280	$	467	$	1,895,352	$	1,895,819	$	280	$	—
Commercial real estate:
Non-owner occupied		288		—		—		288		1,467,935		1,468,223		—		—
Owner occupied		144		—		1,416		1,560		1,465,252		1,466,812		1,416		—
Commercial and industrial		9,278		2,037		6,326		17,641		1,880,702		1,898,343		5,750		576
Construction		—		7,000		—		7,000		621,558		628,558		—		—
Mortgage		1,561		3,587		20,192		25,340		1,194,692		1,220,032		20,192		—
Consumer:
Credit cards		—		—		—		—		47		47		—		—
Home equity lines of credit		303		16		4,705		5,024		66,431		71,455		4,705		—
Personal		755		470		749		1,974		232,339		234,313		749		—
Other		—		13		1		14		5,663		5,677		1		—

Total	$	12,329	$	13,310	$	33,669	$	59,308	$	8,829,971	$	8,889,279	$	33,093	$	576


31-Mar-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	$	—	$	—	$	—	$	—	$	1,865,623	$	1,865,623	$	—	$	—
Commercial real estate:
Non-owner occupied		902		740		374		2,016		1,391,874		1,393,890		374		—
Owner occupied		6,385		—		677		7,062		1,398,580		1,405,642		677		—
Commercial and industrial		10,925		602		4,891		16,418		1,788,918		1,805,336		4,352		539
Construction		—		—		—		—		617,458		617,458		—		—
Mortgage		13,006		1,069		21,826		35,901		1,166,782		1,202,683		21,826		—
Consumer:
Credit cards		—		—		—		—		26		26		—		—
Home equity lines of credit		259		15		5,248		5,522		68,437		73,959		5,248		—
Personal		739		558		627		1,924		203,381		205,305		627		—
Other		—		1		1		2		6,007		6,009		1		—

Total	$	32,216	$	2,985	$	33,644	$	68,845	$	8,507,086	$	8,575,931	$	33,105	$	539


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	$	—		$	187		$	280		$	467		$	29,729		$	30,196		$	280		$	—
Commercial real estate:
Non-owner occupied		(614	)		(740	)		(374	)		(1,728	)		76,061			74,333			(374	)		—
Owner occupied		(6,241	)		—			739			(5,502	)		66,672			61,170			739			—
Commercial and industrial		(1,647	)		1,435			1,435			1,223			91,784			93,007			1,398			37
Construction		—			7,000			—			7,000			4,100			11,100			—			—
Mortgage		(11,445	)		2,518			(1,634	)		(10,561	)		27,910			17,349			(1,634	)		—
Consumer:
Credit cards		—			—			—			—			21			21			—			—
Home equity lines of credit		44			1			(543	)		(498	)		(2,006	)		(2,504	)		(543	)		—
Personal		16			(88	)		122			50			28,958			29,008			122			—
Other		—			12			—			12			(344	)		(332	)		—			—

Total	$	(19,887	)	$	10,325		$	25		$	(9,537	)	$	322,885		$	313,348		$	(12	)	$	37

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)


30-Jun-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	$	1,992	$	187	$	534	$	2,713	$	2,129,660	$	2,132,373	$	534	$	—
Commercial real estate:
Non-owner occupied		1,667		110		20,435		22,212		4,098,129		4,120,341		20,435		—
Owner occupied		5,038		2,860		33,571		41,469		2,832,092		2,873,561		33,571		—
Commercial and industrial		11,812		3,563		50,502		65,877		5,353,149		5,419,026		49,399		1,103
Construction		498		7,000		—		7,498		783,422		790,920		—		—
Mortgage		213,044		86,485		701,949		1,001,478		6,260,477		7,261,955		304,862		397,087
Leasing		9,970		2,164		4,665		16,799		1,463,423		1,480,222		4,665		—
Consumer:
Credit cards		5,785		4,142		8,896		18,823		947,923		966,746		—		8,896
Home equity lines of credit		303		16		4,705		5,024		69,553		74,577		4,705		—
Personal		11,971		6,513		19,794		38,278		1,584,135		1,622,413		19,794		—
Auto		56,577		13,815		28,045		98,437		3,391,539		3,489,976		28,045		—
Other		242		144		12,126		12,512		126,314		138,826		11,914		212

Total	$	318,899	$	126,999	$	885,222	$	1,331,120	$	29,039,816	$	30,370,936	$	477,924	$	407,298


31-Mar-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	$	2,130	$	189	$	274	$	2,593	$	2,026,271	$	2,028,864	$	274	$	—
Commercial real estate:
Non-owner occupied		4,548		833		21,001		26,382		3,928,048		3,954,430		21,001		—
Owner occupied		10,409		50		50,409		60,868		2,795,276		2,856,144		50,409		—
Commercial and industrial		12,143		771		53,058		65,972		5,122,836		5,188,808		51,501		1,557
Construction		715		—		—		715		744,068		744,783		—		—
Mortgage		195,403		80,443		758,164		1,034,010		6,292,336		7,326,346		328,386		429,778
Leasing		9,819		2,446		3,766		16,031		1,410,091		1,426,122		3,766		—
Consumer:
Credit cards		5,817		3,728		9,049		18,594		896,992		915,586		—		9,049
Home equity lines of credit		259		15		5,271		5,545		71,530		77,075		5,248		23
Personal		10,954		6,742		19,784		37,480		1,471,301		1,508,781		19,784		—
Auto		51,497		11,353		27,514		90,364		3,339,798		3,430,162		27,514		—
Other		537		38		12,185		12,760		118,329		131,089		12,038		147

Total	$	304,231	$	106,608	$	960,475	$	1,371,314	$	28,216,876	$	29,588,190	$	519,921	$	440,554


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	$	(138	)	$	(2	)	$	260		$	120		$	103,389		$	103,509		$	260		$	—
Commercial real estate:
Non-owner occupied		(2,881	)		(723	)		(566	)		(4,170	)		170,081			165,911			(566	)		—
Owner occupied		(5,371	)		2,810			(16,838	)		(19,399	)		36,816			17,417			(16,838	)		—
Commercial and industrial		(331	)		2,792			(2,556	)		(95	)		230,313			230,218			(2,102	)		(454	)
Construction		(217	)		7,000			—			6,783			39,354			46,137			—			—
Mortgage		17,641			6,042			(56,215	)		(32,532	)		(31,859	)		(64,391	)		(23,524	)		(32,691	)
Leasing		151			(282	)		899			768			53,332			54,100			899			—
Consumer:
Credit cards		(32	)		414			(153	)		229			50,931			51,160			—			(153	)
Home equity lines of credit		44			1			(566	)		(521	)		(1,977	)		(2,498	)		(543	)		(23	)
Personal		1,017			(229	)		10			798			112,834			113,632			10			—
Auto		5,080			2,462			531			8,073			51,741			59,814			531			—
Other		(295	)		106			(59	)		(248	)		7,985			7,737			(124	)		65

Total	$	14,668		$	20,391		$	(75,253	)	$	(40,194	)	$	822,940		$	782,746		$	(41,997	)	$	(33,256	)

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

Table K - Non-Performing Assets

(Unaudited)


																			Variance
(Dollars in thousands)	30-Jun-22			As a % of loans HIP by category			31-Mar-22			As a % of loans HIP by category			30-Jun-21			As a % of loans HIP by category			Q2 2022 vs. Q1 2022			Q2 2022 vs. Q2 2021
Non-accrual loans:
Commercial	$	103,939			0.7	%	$	123,185			0.9	%	$	225,565			1.7	%	$	(19,246	)	$	(121,626	)
Construction		—			—			—			—			14,877			1.7			—			(14,877	)
Leasing		4,665			0.3			3,766			0.3			2,286			0.2			899			2,379
Mortgage		304,862			4.2			328,386			4.5			383,976			5.0			(23,524	)		(79,114	)
Auto		28,045			0.8			27,514			0.8			13,286			0.4			531			14,759
Consumer		36,413			1.3			37,070			1.4			45,193			1.8			(657	)		(8,780	)

Total non-performing loans held-in-portfolio		477,924			1.6	%		519,921			1.8	%		685,183			2.4	%		(41,997	)		(207,259	)
Non-performing loans held-for-sale [1]		—						—						8,700						—			(8,700	)
Other real estate owned (“OREO”)		92,137						90,567						73,272						1,570			18,865

Total non-performing assets	$	570,061					$	610,488					$	767,155					$	(40,427	)	$	(197,094	)

Accruing loans past due 90 days or more [2]	$	407,298					$	440,554					$	633,315					$	(33,256	)	$	(226,017	)

Ratios:
Non-performing assets to total assets		0.80	%					0.88	%					1.06	%
Non-performing loans held-in-portfolio to loans held-in-portfolio		1.57						1.76						2.36
Allowance for credit losses to loans held-in-portfolio		2.24						2.29						2.70
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		142.65						130.36						114.68

[1]	There were no non-performing loans held-for-sale as of June 30, 2022 and March 31, 2022 (June 30, 2021 - $7 million in construction loans and $2 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 $11 million at June 30, 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 (March 31, 2022 - $13 million; June 30, 2021 - $15 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 $237 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2022 (March 31, 2022 - $266 million; June 30, 2021 - $363 million). Furthermore, the Corporation has approximately $43 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 (March 31, 2022 - $45 million; June 30, 2021 - $56 million).

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)


Commercial loans held-in-portfolio:
	Quarter ended									Quarter ended
	30-Jun-22									31-Mar-22
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	117,782		$	5,403		$	123,185		$	120,047		$	5,532		$	125,579
Plus:
New non-performing loans		1,666			7,325			8,991			6,127			2,999			9,126
Advances on existing non-performing loans		—			1			1			—			2,505			2,505
Less:
Non-performing loans transferred to OREO		(914	)		—			(914	)		(3,052	)		—			(3,052	)
Non-performing loans charged-off		(951	)		(89	)		(1,040	)		(256	)		(73	)		(329	)
Loans returned to accrual status / loan collections		(21,090	)		(5,194	)		(26,284	)		(5,084	)		(5,560	)		(10,644	)

Ending balance NPLs	$	96,493		$	7,446		$	103,939		$	117,782		$	5,403		$	123,185


Construction loans held-in-portfolio:
	Quarter ended									Quarter ended
	30-Jun-22									31-Mar-22
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	—		$	—		$	—		$	485		$	—		$	485
Less:
Loans returned to accrual status / loan collections		—			—			—			(485	)		—			(485	)

Ending balance NPLs	$	—		$	—		$	—		$	—		$	—		$	—


Mortgage loans held-in-portfolio:
	Quarter ended									Quarter ended
	30-Jun-22									31-Mar-22
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	306,560		$	21,826		$	328,386		$	333,887		$	21,969		$	355,856
Plus:
New non-performing loans		36,665			3,793			40,458			38,193			4,800			42,993
Advances on existing non-performing loans		—			110			110			—			134			134
Less:
Non-performing loans transferred to OREO		(10,627	)		—			(10,627	)		(10,344	)		(85	)		(10,429	)
Non-performing loans charged-off		(295	)		(127	)		(422	)		(467	)		—			(467	)
Loans returned to accrual status / loan collections		(47,633	)		(5,410	)		(53,043	)		(54,709	)		(4,992	)		(59,701	)

Ending balance NPLs	$	284,670		$	20,192		$	304,862		$	306,560		$	21,826		$	328,386


Total non-performing loans held-in-portfolio (excluding consumer):
	Quarter ended									Quarter ended
	30-Jun-22									31-Mar-22
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	424,342		$	27,229		$	451,571		$	454,419		$	27,501		$	481,920
Plus:
New non-performing loans		38,331			11,118			49,449			44,320			7,799			52,119
Advances on existing non-performing loans		—			111			111			—			2,639			2,639
Less:
Non-performing loans transferred to OREO		(11,541	)		—			(11,541	)		(13,396	)		(85	)		(13,481	)
Non-performing loans charged-off		(1,246	)		(216	)		(1,462	)		(723	)		(73	)		(796	)
Loans returned to accrual status / loan collections		(68,723	)		(10,604	)		(79,327	)		(60,278	)		(10,552	)		(70,830	)

Ending balance NPLs	$	381,163		$	27,638		$	408,801		$	424,342		$	27,229		$	451,571

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

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

(Unaudited)


	Quarters ended
(Dollars in thousands)	30-Jun-22			31-Mar-22			30-Jun-21
Balance at beginning of period - loans held-in-portfolio	$	677,792		$	695,366		$	800,797
Provision for credit losses (benefit)		9,861			(14,405	)		(17,500	)
Initial allowance for credit losses - PCD Loans		170			612			1,202

		687,823			681,573			784,499

Net loans charged-off (recovered):
BPPR
Commercial		(3,412	)		(4,230	)		(9,877	)
Construction		(395	)		(416	)		(479	)
Lease financing		667			(434	)		393
Mortgage		(4,451	)		(2,992	)		935
Consumer		12,923			13,574			7,545

Total BPPR		5,332			5,502			(1,483	)

Popular U.S.
Commercial		137			(627	)		(413	)
Construction		(4	)		(1,128	)		93
Mortgage		63			(20	)		(423	)
Consumer		545			54			935

Total Popular U.S.		741			(1,721	)		192

Total loans charged-off (recovered) - Popular, Inc.		6,073			3,781			(1,291	)

Balance at end of period - loans held-in-portfolio	$	681,750		$	677,792		$	785,790

Balance at beginning of period - unfunded commitments	$	7,054		$	7,897		$	9,569
Provision for credit losses (benefit)		(150	)		(843	)		367

Balance at end of period - unfunded commitments [1]	$	6,904		$	7,054		$	9,936

POPULAR, INC.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.08	%		0.05	%		(0.02	)%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		162.37	%		(380.98	)%		N.M.
BPPR
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.10	%		0.11	%		(0.03	)%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		171.19	%		(230.12	)%		N.M.
Popular U.S.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		0.03	%		(0.08	)%		0.01	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		98.92	%		101.34	%		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 Second Quarter 2022 Earnings Release

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

(Unaudited)


30-Jun-22
(Dollars in thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL	$	209,630		$	6,913		$	148,305		$	19,037		$	297,865		$	681,750
Total loans held-in-portfolio	$	14,545,301		$	790,920		$	7,261,955		$	1,480,222		$	6,292,538		$	30,370,936

ACL to loans held-in-portfolio		1.44	%		0.87	%		2.04	%		1.29	%		4.73	%		2.24	%


31-Mar-22
(Dollars in thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL	$	204,643		$	6,539		$	149,206		$	18,398		$	299,006		$	677,792
Total loans held-in-portfolio	$	14,028,246		$	744,783		$	7,326,346		$	1,426,122		$	6,062,693		$	29,588,190

ACL to loans held-in-portfolio		1.46	%		0.88	%		2.04	%		1.29	%		4.93	%		2.29	%


Variance
(Dollars in thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL	$	4,987		$	374		$	(901	)	$	639		$	(1,141	)	$	3,958
Total loans held-in-portfolio	$	517,055		$	46,137		$	(64,391	)	$	54,100		$	229,845		$	782,746

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

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

(Unaudited)


30-Jun-22
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	153,547		$	3,074		$	130,030		$	19,037		$	274,889		$	580,577
Loans held-in-portfolio	$	7,816,104		$	162,362		$	6,041,923		$	1,480,222		$	5,981,046		$	21,481,657

ACL to loans held-in-portfolio		1.96	%		1.89	%		2.15	%		1.29	%		4.60	%		2.70	%


31-Mar-22
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	145,471		$	2,414		$	131,362		$	18,398		$	278,966		$	576,611
Loans held-in-portfolio	$	7,557,755		$	127,325		$	6,123,663		$	1,426,122		$	5,777,394		$	21,012,259

ACL to loans held-in-portfolio		1.92	%		1.90	%		2.15	%		1.29	%		4.83	%		2.74	%


Variance
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	8,076		$	660		$	(1,332	)	$	639		$	(4,077	)	$	3,966
Loans held-in-portfolio	$	258,349		$	35,037		$	(81,740	)	$	54,100		$	203,652		$	469,398

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

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

(Unaudited)


30-Jun-22
Popular U.S.
(In thousands)	Commercial			Construction			Mortgage			Consumer			Total
ACL	$	56,083		$	3,839		$	18,275		$	22,976		$	101,173
Loans held-in-portfolio	$	6,729,197		$	628,558		$	1,220,032		$	311,492		$	8,889,279

ACL to loans held-in-portfolio		0.83	%		0.61	%		1.50	%		7.38	%		1.14	%


31-Mar-22
Popular U.S.
(In thousands)	Commercial			Construction			Mortgage			Consumer			Total
ACL	$	59,172		$	4,125		$	17,844		$	20,040		$	101,181
Loans held-in-portfolio	$	6,470,491		$	617,458		$	1,202,683		$	285,299		$	8,575,931

ACL to loans held-in-portfolio		0.91	%		0.67	%		1.48	%		7.02	%		1.18	%


Variance
(In thousands)	Commercial			Construction			Mortgage			Consumer			Total
ACL	$	(3,089	)	$	(286	)	$	431		$	2,936		$	(8	)
Loans held-in-portfolio	$	258,706		$	11,100		$	17,349		$	26,193		$	313,348

Popular, Inc.

Financial Supplement to Second Quarter 2022 Earnings Release

Table Q - Reconciliation to GAAP Financial Measures

(Unaudited)


(In thousands, except share or per share information)	30-Jun-22			31-Mar-22			30-Jun-21
Total stockholders’ equity	$	4,293,349		$	4,671,246		$	5,814,614
Less: Preferred stock		(22,143	)		(22,143	)		(22,143	)
Less: Goodwill		(720,293	)		(720,293	)		(671,122	)
Less: Other intangibles		(14,533	)		(15,328	)		(20,440	)

Total tangible common equity	$	3,536,380		$	3,913,482		$	5,100,909

Total assets	$	71,501,931		$	69,525,082		$	72,657,293
Less: Goodwill		(720,293	)		(720,293	)		(671,122	)
Less: Other intangibles		(14,533	)		(15,328	)		(20,440	)

Total tangible assets	$	70,767,105		$	68,789,461		$	71,965,731

Tangible common equity to tangible assets		5.00	%		5.69	%		7.09	%
Common shares outstanding at end of period		76,576,397			76,487,523			80,656,480
Tangible book value per common share	$	46.18		$	51.16		$	63.24


	Quarterly average
Total stockholders’ equity [1]	$	5,827,666		$	5,983,309		$	5,683,325
Less: Preferred Stock		(22,143	)		(22,143	)		(22,143	)
Less: Goodwill		(720,292	)		(720,292	)		(671,121	)
Less: Other intangibles		(15,043	)		(15,881	)		(21,350	)

Total tangible equity	$	5,070,188		$	5,224,993		$	4,968,711
Return on average tangible common equity		16.70	%		16.40	%		17.58	%

[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