Popular (BPOP) 8-K Popular, Inc. Announces Third Quarter Financial Results

Exhibit 99.1

Popular, Inc. Announces Third Quarter Financial Results

• Net income of $20.7 million for the third quarter of 2017, reflecting $79.4 million in hurricane-associated expenses and an income tax benefit of $20.0 million
• Net interest margin of 3.96% in Q3 2017, compared to 4.02% in Q2 2017
• Credit Quality (excluding “covered” loans):
  • Non-performing loans held-in-portfolio (“NPLs”) as of Q3 2017 increased by $38.8 million from Q2 2017; NPLs to loans ratio as of Q3 at 2.5% vs. 2.4% in Q2 2017;
  • Net charge-offs (“NCOs”) decreased by $4.5 million; NCOs at 0.92% of average loans held-in-portfolio vs. 1.01% in Q2 2017;
  • Provision expense of $157.7 million, which includes a $66.4 million provision for loan losses related to the hurricanes and a $37.0 million provision related to the U.S. segment’s taxi medallion portfolio;
  • Allowance for loan losses of $613.9 million vs. $509.2 million in Q2 2017; allowance for loan losses to loans held-in-portfolio at 2.65% for Q3 vs. 2.22% in Q2 2017; and
  • Allowance for loan losses to NPLs at 104.8% for Q3 vs. 93.1% in Q2 2017.
• Common Equity Tier 1 ratio of 16.63%, Common Equity per Share of $51.31 and Tangible Book Value per Share of $44.79 at September 30, 2017

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--October 31, 2017--Popular, Inc. (the “Corporation,” “Popular,” "we," "us," "our,") (NASDAQ:BPOP) reported a net income of $20.7 million for the quarter ended September 30, 2017, compared to a net income of $96.2 million for the quarter ended June 30, 2017. The results for the quarter reflect the impact of Hurricanes Irma and Maria on those markets in which the Corporation operates a significant portion of its business, including Puerto Rico, the U.S. Virgin Islands (“USVI”) and the British Virgin Islands (“BVI”).

Ignacio Alvarez, President and Chief Executive Officer, said: “Hurricanes Irma and Maria struck Puerto Rico and the Virgin Islands in a two-week period, leaving unprecedented destruction in their wake. Since day one, our priority has been to take care of our clients, our colleagues and our communities.

For the past five weeks, we have been dealing with the logistical challenges resulting from the collapse of the electric, water and telecommunications systems in Puerto Rico. Despite these challenges, we have worked relentlessly to provide access to cash and other essential banking services as quickly as possible. Thanks to the efforts of our colleagues, which have been nothing short of heroic, the number of branches and ATMs in operation has increased consistently. Only one week after Maria, we had 53 branches out of 168 and 150 ATMs out of 635 up and running, as well as all digital channels, which remained available throughout and after the hurricane. We currently have 137 branches and 397 ATMs in operation, covering the entire island, including Puerto Rico's central mountain region and the island municipalities of Culebra and Vieques, which were severely impacted by the hurricanes. In the U.S. and British Virgin Islands we are currently operating 7 out of our 9 branches.

We are working closely with our clients to assess their needs, help them rebuild and take advantage of opportunities that will surely arise. To provide relief, we offered automatic payment deferrals and loan extensions to most of our clients. In addition, we have taken various measures to support our employees in these difficult times, including monetary assistance to those that suffered significant damages to their homes and interest-free loans.

We also mobilized to help severely impacted communities through Fundación Banco Popular and the Popular Community Bank Foundation, our philanthropic arms. We launched the Embracing Puerto Rico effort, seeded the fund with a $1.1 million donation and have obtained additional funds thanks to the generosity of partners, suppliers and friends. We also contributed to “Unidos por Puerto Rico”, a fundraising campaign spearheaded by Puerto Rico’s First Lady and were one of two sponsors of the “Somos Una Voz” concert that has raised over $35 million for earthquake victims in Mexico and hurricane victims in Texas, Florida, Puerto Rico and the Caribbean. Fundación Banco Popular is leveraging the relationships it has developed with non-profit organizations and community leaders throughout its almost 40-year history, delivering assistance directly to those who need it most.

While deeply saddened by the human losses and material damage brought by the hurricanes, the resilience we have witnessed inspires us and gives us confidence that we will recover and emerge stronger than before. The current situation presents a unique opportunity to make much needed structural changes on the island, and, as the leading financial institution, Popular is ready to play an important role in efforts to build a stronger and more sustainable Puerto Rico.”

Significant Events

During the month of September, Hurricanes Irma and Maria (the "hurricanes") made landfall and subsequently caused extensive destruction in Puerto Rico, the U.S. and British Virgin Islands, disrupting the markets in which Banco Popular de Puerto Rico (“BPPR”) does business.

On September 6, 2017, Hurricane Irma made landfall in the USVI and the BVI as a Category 5 hurricane on the Saffir-Simpson scale, causing catastrophic wind and water damage to the islands’ infrastructure, homes and businesses. Hurricane Irma’s winds and resulting flooding also impacted certain municipalities of Puerto Rico, causing the failure of electricity infrastructure in a significant portion of the island. While hurricane Irma also struck Popular’s operations in Florida, neither our operations nor those of our clients in the region were materially impacted.

Two weeks later, on September 20, 2017, Hurricane Maria, made landfall in Puerto Rico as a Category 4 hurricane, causing extensive destruction and flooding throughout Puerto Rico. As a result of the Hurricane, 100% of the island’s population was left without electrical power and there was significant disruption to the water distribution system. Other basic utility and infrastructure services such as communications, ports and transportation were also materially affected, causing a significant disruption to the island’s economic activity.

Prior to the hurricanes, the Corporation had implemented its business continuity action program. Although the Corporation’s business critical systems experienced minimal outages as a result of the storms, the Corporation’s physical operations in Puerto Rico, the USVI and the BVI, including its branch and ATM networks, were materially disrupted by the storms mostly due to lack of electricity and communication as well as limited accessibility. Currently, 82% of BPPR’s bank branches are open and 63% of ATMs are operating. Popular is working on a plan to reopen its remaining closed retail locations as soon as possible.

Reconstruction of the island’s electric infrastructure and restoration of the telecommunications network remain the most critical challenges for Puerto Rico’s recovery from the hurricanes. As of October 27, 2017, the Government of Puerto Rico estimated that electricity generation remained at 28% of pre-hurricane levels. “Point of sale” (POS) activity throughout the Island has been impacted by lack of electricity and telecommunications at many merchant locations. By the third week of October, debit and credit card purchase activity from our clients stood at approximately 55% to 65% when compared to pre-hurricane activity.

Impact on Earnings Related to Hurricanes

The following summarizes the estimated impact on the Corporation’s earnings for the quarter ended September 30, 2017 as a result of the impact caused by Hurricanes Irma and Maria, net of estimated insurance receivables of $7.5 million.

(In thousands)	Quarter ended September 30, 2017
Provision for loan losses (1)	$	69,887
Operating expenses:
Personnel costs	$	58
Net occupancy expenses		468
Business promotion
Donations		1,123
Other sponsorship and promotions expenses		203
Total business promotion		1,326
OREO expenses		2,685
Other expenses
Write-down of premises and equipment		3,932
Other operating expense		1,033
Total other expenses		4,965
Total operating expenses	$	9,502
Total pre-tax hurricane expenses	$	79,389
(1) Includes $3.5 million in provision for covered loans.

Provision for Loan Losses

Damages associated with Hurricanes Irma and Maria impacted certain of the Corporation’s asset quality measures, including higher delinquencies and non-performing loans. Payment channels, collection efforts and loss mitigation operations were interrupted during the last month of the quarter as a result of the hurricanes. An incremental provision expense of $69.9 million was made to the allowance for loan losses based on management’s best estimate of the impact of the hurricanes on the Corporation’s loan portfolios and the ability of borrowers to repay their loans, taking into consideration currently available information and the already challenging economic environment in Puerto Rico prior to the hurricanes.

Management has initially estimated that the effects of the hurricanes could result in loan losses in the range of $70 to $160 million. However, since the Corporation’s base allowance for loan losses already incorporated reserves for environmental factors such as unemployment and deterioration in economic activity of approximately $58 million, management increased the environmental factors reserve by $64.3 million to $122.2 million using the near mid-range as the best estimate. The $69.9 million provision also includes $5.6 million for the portfolio of purchased credit impaired loans, accounted for under ASC 310-30, for which the estimated cash flows were adjusted to reflect the three-month payment forbearance offered to certain eligible borrowers, as discussed above. Since there is significant uncertainty with respect to the full extent of the impact due to the unprecedented nature of Hurricane Maria, the estimate is judgmental and subject to change as conditions evolve. Management will continue to carefully assess and review the exposure of the portfolios to hurricane-related factors, economic trends and their effect on credit quality. Refer to additional information on the Credit Quality section of this earnings release.

Operating Expenses

The Corporation has over 200 branches and office buildings and over 2,000 repossessed properties in the areas affected by the hurricanes. While the Corporation has completed a preliminary estimate of the physical damages to these properties, it has been unable to individually examine each of these properties. As the Corporation continues to evaluate the extent of the damages, additional adjustments may be necessary. However, the Corporation believes that given its level of insurance coverage, the estimated impact of damages to these properties should not vary materially.

The results for the quarter include $6.6 million in expenses, net of $7.5 million in insurance receivables, from structural damages caused by the hurricanes to branches, buildings and repossessed properties as a result of the hurricanes. An additional $2.9 million in other operating expenses are reflected for costs such as donations, debris removal, fuel for backup generators and other ancillary costs associated with hurricane recovery efforts.

Expenses for the fourth quarter are expected to be between $320 and $330 million and consistent with our previous estimate of annual expenses.

Revenue Reduction

In addition to the previously mentioned incremental provision and direct operating expenses, results for the three months ended September 30, 2017 were impacted by the hurricanes in the form of a reduction in revenue resulting from reduced merchant transaction activity, the waiver of certain late fees and service charges, including ATM transaction fees, to businesses and consumers in hurricane-affected areas, as well as the economic and operational disruption in the Corporation’s mortgage origination, servicing and loss mitigation activities due to the hurricanes' operational and economic impact. These revenue captions resulted in a decrease in income of approximately $11 million in lower income when compared to the previous quarter, primarily driven by the disruption in our operations over the last 10 days of the quarter.

While the continued impact on transactional and collection based revenues will depend on the speed at which electricity, telecommunications and general merchant services can be restored across the region, we currently estimate that revenues in the fourth quarter could be further negatively impacted in an amount representing an additional $5 to $20 million from this quarter's results, excluding any impact on valuation of MSRs.

Refer to the Interest Income, Non-Interest Income and Expense sections of this earnings release for further information.

Earnings Highlights
(Unaudited)	Quarters ended							Nine months ended
(Dollars in thousands, except per share information)	30-Sep-17		30-Jun-17		30-Sep-16			30-Sep-17			30-Sep-16
Net interest income	$378,171		$374,479		$	353,687		$	1,114,748		$	1,066,650
Provision for loan losses	157,659		49,965			42,594			249,681			130,202
Provision for loan losses - covered loans [1]	3,100		2,514			750			4,255			(1,551	)
Net interest income after provision for loan losses	217,412		322,000			310,343			860,812			937,999
FDIC loss-share expense	(3,948	)	(475	)		(61,723	)		(12,680	)		(77,445	)
Other non-interest income	104,322		117,268			137,701			345,716			375,556
Goodwill impairment charge	-		-			3,801			-			3,801
Other operating expenses	317,088		306,835			319,871			935,241			930,963
Income before income tax	698		131,958			62,649			258,607			301,346
Income tax (benefit) expense	(19,966	)	35,732			15,839			48,772			80,550
Net income	$20,664		$96,226		$	46,810		$	209,835		$	220,796
Net income applicable to common stock	$19,734		$95,295		$	45,880		$	207,043		$	218,004
Net income per common share - Basic	$0.19		$0.94		$	0.44		$	2.03		$	2.11
Net income per common share - Diluted	$0.19		$0.94		$	0.44		$	2.03		$	2.11
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under an FDIC loss-sharing agreement.

Net interest income

Net interest income for the quarter ended September 30, 2017 was $378.2 million, compared to $374.5 million for the previous quarter. The impact of having one more day in the quarter had a positive effect in net interest income of $2.7 million. Net interest margin was 3.96% for the quarter compared to 4.02% for the previous quarter.

The increase of $3.7 million in net interest income was mainly related to the following:

Positive variances:

• Higher income from money market investments by $4.4 million, or 21 basis points, due to both a higher average volume of funds available to invest related mostly to a higher balance of deposits and a higher yield due to the increases in rates by the U.S. Federal Reserve late in the second quarter of 2017. The average rate of the money market investments portfolio for the quarter was 1.27%, compared to 1.06% in the second quarter of 2017;
• Higher income from commercial loans by $6.1 million, or 6 basis points, driven by higher average loan balances in both U.S. and Puerto Rico and a higher yield at BPPR due in part to one additional day in the quarter and the impact on the variable rate portfolio from the above-mentioned increases in rates; and
• Higher income from the consumer loans portfolio by $1.9 million, due to higher balances in both U.S. and Puerto Rico mostly resulting from loans acquired during the quarter, partially offset by lower yields mainly in the credit cards portfolio and the waiver of late payment fees from clients granted as part of Popular’s hurricane relief efforts,

Negative variances:

• Lower interest income from investment securities by $1.3 million, or 2 basis points, mainly due to lower yields, particularly on mortgage backed securities and collateralized mortgage obligations, and lower average balances driven by the amortization and prepayments of the portfolios;
• Lower income from mortgage loans by $2.5 million, or 10 basis points, due to lower yields impacted by loan delinquencies as a result of the business disruption from hurricanes Irma and Maria and the above-mentioned waiver of late payment fees to clients. Also, lower average balances resulting from lower lending activity and portfolio run-off both in P.R, and the U.S., contributed to the decline.
• Lower income from the portfolio acquired from Westernbank (“WB loans”) by $2.0 million, due to the normal portfolio amortization and lower yields; and
• Higher interest expense from deposits by $0.3 million, or 3 basis points, mostly due to higher volume of government and commercial deposits in Puerto Rico, a higher volume of time deposits in the U.S. to fund its commercial loan growth and the negative impact of one more day in the quarter.

BPPR’s net interest income amounted to $321.1 million for the quarter ended September 30, 2017, compared to $319.7 million for the previous quarter. The increase of $1.4 million in net interest income was mainly due to higher income from money market investments resulting from higher volumes and yields, as previously stated. Also, the results for the quarter reflected a higher yield from commercial loans resulting from higher volumes and the increase in market rates and higher income from consumer loans due to the acquisition of loans, as discussed above. These positive variances were partially offset by lower income from mortgage loans impacted by delinquencies resulting from the business disruption from Hurricanes Irma and Maria and the waiver of late payment fees related to the hurricanes, lower income from WB loans and higher interest expense on deposits mainly from the P.R. government. The net interest margin for the third quarter was 4.28%, a decline of 8 basis points when compared to 4.36% for the previous quarter. The decrease in net interest margin results mainly from the composition of earning assets, which has shifted towards lower yielding assets resulting from higher balances of Fed Funds, mainly as a result of higher balances of deposits and lower volume of WB loans, which carry a high yield relative to the non-WB portfolio. Puerto Rico assets yielded 4.63%, compared to 4.69% in the previous quarter, while the cost of interest bearing liabilities was 0.49%, compared to 0.46% in the previous quarter.

Banco Popular North America’s (“BPNA”) net interest income was $71.5 million, compared to $69.7 million in the previous quarter, mainly due to higher income resulting mostly from higher volume of commercial and consumer loans and the positive impact of one more day in the quarter, partially offset by higher deposit and short-term borrowing costs. Net interest margin decreased 4 basis points to 3.50%, compared to 3.54% for the previous quarter mostly due to higher cost of funds. U.S. earning assets yielded 4.29%, compared to 4.30% in the previous quarter, while the cost of interest bearing liabilities was 1.03% compared to 0.99% in the previous quarter.

Non-interest income

Non-interest income amounted to $100.4 million for the quarter ended September 30, 2017, compared to $116.8 million for the previous quarter. The results for the quarter reflect a reduction in various revenue streams, as a result of the impact of Hurricanes Irma and Maria. The reduction in revenues resulted from business interruptions causing lower volumes of transactions as well as disaster relief measures taken by the Corporation to help its customers. The unfavorable variance of $16.4 million in non-interest income was primarily driven by:

• Lower other service fees by $5.7 million mainly in credit and debit card fees at BPPR largely impacted by lower interchange income resulting from lower transaction volumes due to the business disruption in the regions impacted by the hurricanes and the waivers of credit card late fees during the month of September as a result of the disaster relief measures for customers implemented in response to the hurricanes;
• Lower income on mortgage banking activities by $5.5 million due to lower mortgage servicing fees driven by an increase in delinquency, due to the impact of the hurricanes on payment channels, collection and loss mitigation efforts; higher unfavorable fair value adjustments on mortgage servicing rights; and lower net gain on sale of loans mostly due to lower volume from securitization transactions also in part due to the aforementioned business disruption;
• Unfavorable variance in adjustments to indemnity reserves of $3.5 million due to an increase in the reserve for credit recourse;
• Higher FDIC loss-share expense by $3.5 million due to an unfavorable impact in the mirror accounting of impaired loans and higher recoveries on assets to be shared with the FDIC in the recovery period; and
• Lower other operating income by $5.4 million mainly due to lower earnings from investments under the equity method.

These negative variances were partially offset by an other-than-temporary impairment charge of $8.3 million on senior Puerto Rico Sales Tax Financing Corporation (“COFINA”) bonds classified as available-for-sale recorded during the previous quarter.

Refer to Table B for further details.

Financial Impact of the 2010 FDIC-Assisted Transaction
(Unaudited)	Quarters ended
(In thousands)	30-Sep-17			30-Jun-17			30-Sep-16
Income Statement
Interest income on WB loans	$	35,939		$	37,900		$	40,867
Total FDIC loss-share expense		(3,948	)		(475	)		(61,723	)
Provision (reversal) for loan losses- WB loans [1]		14,751			(417	)		6,612
Total revenues less provision (reversal) for loan losses	$	17,240		$	37,842		$	(27,468	)
Balance Sheet
WB loans	$	1,705,531		$	1,737,448		$	1,896,099
FDIC loss-share asset		48,470			52,583			152,467
FDIC true-up payment obligation		166,876			163,668			134,487
[1] The quarter ended June 30, 2017 includes the elimination of an incremental $6.0 million provision for loan losses related to the inter-company transfer of a loan between BPPR and Popular, Inc., its bank holding company, the impact of which is eliminated in the consolidated results of the Corporation in accordance with U.S. GAAP.

See additional details on accounting for the 2010 FDIC-Assisted transaction in Table O.

Operating expenses

Operating expenses amounted to $317.1 million for the third quarter of 2017, an increase of $10.3 million when compared to the second quarter of 2017. The increase in operating expenses was driven primarily by:

• Higher personnel cost by $0.8 million mostly due to higher salaries;
• Higher business promotion expense by $1.9 million mainly due to higher donations, which includes $1.1 million in donations to the hurricane relief efforts, and higher advertising expense, partially offset by lower customer reward program expense; and
• Higher other operating expenses by $13.8 million which includes $3.9 million of write-down of premises and equipment, $1.0 million in debris removal and other costs related to Hurricane Maria, higher provision for unused commitments by $1.5 million and higher legal contingency reserves.

These increases were partially offset by:

• Lower professional fees by $2.2 million mainly due to lower programming, processing and other technology services; and
• Lower OREO expenses by $4.9 million due to lower write-downs on valuation of mortgage properties at BPPR.

Non-personnel credit-related costs, which include collections, appraisals, credit related fees and OREO expenses, amounted to $15.3 million for the third quarter of 2017, compared to $20.4 million for the second quarter of 2017. The decrease was principally due to lower write-downs on OREO at BPPR.

Full-time equivalent employees were 7,787 as of September 30, 2017, compared to 7,789 as of June 30, 2017.

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

Income taxes

For the quarter ended September 30, 2017, the Corporation recorded an income tax benefit of $20.0 million, compared to an income tax expense of $35.7 million for the previous quarter.

The income tax benefit for the quarter reflects the impact of the losses related to the hurricanes, which result in a reduction of taxable income and the related effective tax rate in our Puerto Rico operations, as the level of exempt income increases in proportion to the Corporation’s taxable income. The Corporation expects its effective tax rate for the year 2017 to be between 21% and 23%.

Credit Quality

As previously noted, asset quality measures were impacted by the damages caused by the hurricanes, which led to higher delinquencies and non-performing loans, as payment channels, collection efforts and loss mitigation operations were interrupted and mainly unavailable for the last 10 days of the quarter. A provision was made to the allowance for loans losses based on management’s best estimate of the impact of the hurricanes on the ability of the borrowers to repay their loans, in light of an already fragile economy in Puerto Rico prior to the hurricanes. Management will continue to carefully assess the exposure of the portfolios to hurricane-related factors, economic trends, and their effect on credit quality.

In response to the hurricanes’ effects on its customers, the Corporation implemented a 90-day moratorium, equal to three months of suspended payments for consumer and certain commercial borrowers that were current or less than ninety days past due in their payments as of September 30, 2017. The following presents asset quality results for the third quarter of 2017:

• Total non-performing loans held-in-portfolio increased by $38.8 million from the second quarter of 2017, driven by higher P.R. mortgage NPLs of $31.3 million, negatively impacted by the disruptions caused by Hurricane Maria. At September 30, 2017, NPLs to total loans held-in-portfolio were at 2.5% compared to 2.4% in the second quarter of 2017.
• Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $13.4 million quarter-over-quarter, mainly driven by higher inflows in the P.R. mortgage portfolio of $15.7 million.
• Net charge-offs decreased by $4.5 million from the second quarter of 2017, driven by: (i) lower P.R. commercial NCOs of $12.2 million, driven by the effect of a $12.3 million charge-off taken on a large commercial relationship during the previous quarter, partially offset by, (ii) higher U.S. commercial NCOs of $4.9 million related to the Taxi Medallion portfolio, and (iii) higher P.R. consumer NCOs of $4.5 million, mainly due to collection disruptions caused by Hurricane Maria. The Corporation’s ratio of annualized net charge-offs to average non-covered loans held-in-portfolio was at 0.92%, compared to 1.01% in the second quarter of 2017. Refer to Table J for further information on net charge-offs and related ratios.
• The allowance for loan losses (“ALLL”) increased by $104.7 million from the second quarter of 2017 to $613.9 million at September 30, 2017. The P.R. segment ALLL increased by $69.8 million. The environmental factors reserve, which considers unemployment and deterioration in economic activity, increased by $64.3 million to $122.2 million based on management’s best estimate, including the hurricanes’ impact on the loan portfolios using currently available information. While the reserve was increased to $122.2 million as the near mid-range estimate, management’s estimate ranged from approximately $70 million to $160 million. The provision expense for the quarter also includes $2.1 million for the portfolio of non-covered purchased credit impaired loans, accounted for under ASC 310-30, for which the estimated cash flows were adjusted to reflect the three-month payment forbearance offered to certain eligible borrowers. Since there is significant uncertainty with respect to the full extent of the impact due to the unprecedented effects of Hurricane Maria, the estimate is judgmental and subject to change as conditions evolve. Management will continue to carefully assess and review the exposure of the portfolios to hurricane-related factors, economic trends and their effect on credit quality. The U.S. segment ALLL increased by $34.8 million, driven by higher reserves for the U.S. taxi medallion portfolio.

• The general and specific reserves related to non-covered loans totaled $498.7 million and $115.2 million, respectively, at quarter-end, compared with $393.9 million and $115.3 million, respectively, at June 30, 2017. The ratio of the allowance for loan losses to loans held-in-portfolio was 2.65% in the third quarter of 2017, compared to 2.22% from the previous quarter.
• The ratio of the allowance for loan losses to NPLs held-in-portfolio increased to 104.8%, compared to 93.1% in the previous quarter.
• The provision for loan losses for non-covered loans for the third quarter of 2017 increased by $107.7 million quarter-over-quarter, which includes the above mentioned charge of $64.3 million related to Hurricane Maria’s estimated impact on the P.R. loan portfolios. The $34.8 million increase in the U.S. segment was mostly related to higher impairments for the taxi medallion portfolio. The provision to net charge-offs ratio was 297.4% in the third quarter of 2017, compared to 86.92% in the previous quarter.

Non-Performing Assets
(Unaudited)
(In thousands)	30-Sep-17			30-Jun-17			30-Sep-16
Total non-performing loans held-in-portfolio, excluding covered loans	$	585,928		$	547,129		$	579,325
Other real estate owned (“OREO”), excluding covered OREO		176,728			181,096			184,828
Total non-performing assets, excluding covered assets		762,656			728,225			764,153
Covered loans and OREO		24,951			29,376			41,211
Total non-performing assets	$	787,607		$	757,601		$	805,364
Net charge-offs for the quarter (excluding covered loans)	$	53,009		$	57,484		$	35,140
Ratios (excluding covered loans):
Non-covered loans held-in-portfolio	$	23,173,450		$	22,918,271		$	22,595,972
Non-performing loans held-in-portfolio to loans held-in-portfolio		2.53	%		2.39	%		2.56	%
Allowance for loan losses to loans held-in-portfolio		2.65			2.22			2.33
Allowance for loan losses to non-performing loans, excluding loans held-for-sale		104.71			93.07			90.73
Refer to Table H for additional information.

Provision for Loan Losses
(Unaudited)	Quarters ended						Nine months ended
(In thousands)	30-Sep-17		30-Jun-17		30-Sep-16		30-Sep-17		30-Sep-16
Provision for loan losses:
BPPR [1]	$	115,115	$	42,173	$	36,281	$	188,766	$	118,503
BPNA		42,544		7,792		6,313		60,915		11,699
Total provision for loan losses - non-covered loans	$	157,659	$	49,965	$	42,594	$	249,681	$	130,202
Provision (reversal) for loan losses - covered loans		3,100		2,514		750		4,255		(1,551	)
Total provision for loan losses	$	160,759	$	52,479	$	43,344	$	253,936	$	128,651
[1] For the quarter ended June 30, 2017, and for the nine months ended September 30, 2017, includes the elimination of an incremental $6.0 million provision for loan losses related to the inter-company transfer of a loan between BPPR and Popular, Inc., its bank holding company, the impact of which is eliminated in the consolidated results of the Corporation in accordance with U.S. GAAP.

Credit Quality by Segment
(Unaudited)
(In thousands)	Quarters ended
BPPR		30-Sep-17			30-Jun-17			30-Sep-16
Provision for loan losses	[1]	$	115,115		$	42,173		$	36,281
Net charge-offs	[1]		45,301			54,255			32,959
Total non-performing loans held-in-portfolio, excluding covered loans			548,666			517,382			551,238
Allowance / non-covered loans held-in-portfolio			3.06	%		2.66	%		2.80	%
[1] For the quarter ended June 30, 2017, includes the elimination of an incremental $6.0 million provision for loan losses and corresponding charge-off related to the inter-company transfer of a loan between BPPR and Popular, Inc., its bank holding company, the impact of which is eliminated in the consolidated results of the Corporation in accordance with U.S. GAAP.

	Quarters ended
BPNA	30-Sep-17			30-Jun-17			30-Sep-16
Provision for loan losses	$	42,544		$	7,792		$	6,313
Net charge-offs		7,708			3,229			2,181
Total non-performing loans held-in-portfolio		37,262			29,747			28,087
Allowance / non-covered loans held-in-portfolio		1.48	%		0.94	%		0.78	%

Financial Condition Highlights
(Unaudited)
(In thousands)	30-Sep-17		30-Jun-17		30-Sep-16
Cash and money market investments	$	6,005,649	$	4,625,318	$	4,314,040
Trading and investment securities		9,374,355		9,726,158		7,968,004
Loans not covered under loss-sharing agreements with the FDIC		23,173,450		22,918,271		22,595,972
Loans covered under loss-sharing agreements with the FDIC		524,854		536,341		588,211
Total assets		42,601,267		41,242,669		39,054,296
Deposits		34,248,936		33,122,033		30,327,045
Borrowings		2,147,064		1,968,419		2,364,984
Liabilities from discontinued operations		-		-		1,815
Total liabilities		37,315,836		35,964,624		33,673,901
Stockholders’ equity		5,285,431		5,278,045		5,380,395

Total assets increased by $1.4 billion from the second quarter of 2017, driven by:

• An increase of $1.3 billion in money market investments, mainly at BPPR, due to higher liquidity driven by an increase in deposit balances;
• A net increase of $0.3 billion in non-covered loans held-in-portfolio, mainly driven by growth of commercial loans at BPNA; and
• An increase of $0.2 billion primarily in accounts receivable related to maturities of U.S. Treasury securities pending to be settled.

These positive variances were partially offset by:

• A decrease of $0.3 billion in investment securities available-for-sale mainly in U.S. Treasury securities at BPPR.

Total liabilities increased by $1.4 billion from the second quarter of 2017, principally driven by:

• An increase of $1.1 billion in deposits mainly due to an increase in commercial savings and NOW deposits and demand deposits from the Puerto Rico public sector at BPPR. Refer to Table G for additional information on deposits; and
• An increase of $0.2 billion in other short-term borrowings at BPNA.

Stockholders’ equity increased by approximately $7.4 million from the second quarter of 2017, mainly as a result of net income for the quarter of $20.7 million and lower unrealized losses on securities available-for-sale, offset by declared dividends of $25.5 million on common stock and $0.9 million in dividends on preferred stock.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.63%, $51.31 and $44.79, respectively at September 30, 2017, compared to 16.68%, $51.26 and $44.71 at June 30, 2017. Refer to Table A for capital ratios.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular’s business, financial condition, results of operations, plans, objectives, and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include without limitation the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal proceedings and new accounting standards on the Corporation’s financial condition and results of operations, and the impact of Hurricanes Irma and Maria on us. 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, 2016, the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2017 and June 30, 2017, and in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 to be filed with the SEC. Those 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.

Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks among the top 50 U.S. banks by assets. Popular provides retail, mortgage and commercial banking services through its principal banking subsidiary, Banco Popular de Puerto Rico, as well as auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey and Florida under the name of Popular Community Bank.

Conference Call

Popular will hold a conference call to discuss its financial results today Tuesday, October 31, 2017 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 1-866-235-1201 or 1-412-902-4127. There is no charge to access the call.

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, November 30, 2017. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10113654.

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

Popular, Inc.

Financial Supplement to Third Quarter 2017 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER

Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE

Table F - Mortgage Banking Activities and Other Service Fees

Table G - Loans and Deposits

Table H - Non-Performing Assets

Table I - Activity in Non-Performing Loans

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

Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED

Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS

Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS

Table N - Reconciliation to GAAP Financial Measures

Table O - Financial Information - Westernbank Loans

POPULAR, INC.
Financial Supplement to Third Quarter 2017 Earnings Release
Table A - Selected Ratios and Other Information
(Unaudited)
	Quarters ended									Nine months ended
	30-Sep-17			30-Jun-17			30-Sep-16			30-Sep-17			30-Sep-16
Basic EPS	$	0.19		$	0.94		$	0.44		$	2.03		$	2.11
Diluted EPS	$	0.19		$	0.94		$	0.44		$	2.03		$	2.11
Average common shares outstanding		101,652,352			101,601,552			103,296,443			102,057,607			103,243,851
Average common shares outstanding - assuming dilution		101,763,872			101,708,703			103,465,385			102,185,544			103,383,949
Common shares outstanding at end of period		102,026,417			101,986,758			103,762,596			102,026,417			103,762,596
Market value per common share	$	35.94		$	41.71		$	38.22		$	35.94		$	38.22
Market capitalization - (In millions)	$	3,667		$	4,254		$	3,966		$	3,667		$	3,966
Return on average assets		0.20	%		0.94	%		0.49	%		0.69	%		0.79	%
		.			.
Return on average common equity		1.47	%		7.24	%		3.46	%		5.24	%		5.59	%
Net interest margin		3.96	%		4.02	%		4.12	%		4.02	%		4.29	%
Common equity per share	$	51.31		$	51.26		$	51.37		$	51.31		$	51.37
Tangible common book value per common share (non-GAAP) [1]	$	44.79		$	44.71		$	44.86		$	44.79		$	44.86
Tangible common equity to tangible assets (non-GAAP) [1]		10.90	%		11.24	%		12.13	%		10.90	%		12.13	%
Tier 1 capital		16.63	%		16.68	%		16.64	%		16.63	%		16.64	%
Total capital		19.62	%		19.66	%		19.65	%		19.62	%		19.65	%
Tier 1 leverage		10.29	%		10.48	%		11.21	%		10.29	%		11.21	%
Common Equity Tier 1 capital		16.63	%		16.68	%		16.64	%		16.63	%		16.64	%
[1] Refer to Table N for the reconciliation to GAAP financial measures.

POPULAR, INC.
Financial Supplement to Third Quarter 2017 Earnings Release
Table B - Consolidated Statement of Operations
(Unaudited)
	Quarters ended						Variance			Quarter ended			Variance			Nine months ended
(In thousands, except per share information)	30-Sep-17			30-Jun-17			Q3 2017 vs. Q2 2017			30-Sep-16			Q3 2017 vs. Q3 2016			30-Sep-17			30-Sep-16
Interest income:
Loans	$	371,979		$	367,669		$	4,310		$	363,550		$	8,429		$	1,102,784		$	1,096,468
Money market investments		15,529			11,131			4,398			4,568			10,961			33,233			11,320
Investment securities		47,276			48,537			(1,261	)		37,732			9,544			140,699			110,728
Trading account securities		1,099			1,396			(297	)		1,449			(350	)		3,895			5,013
Total interest income		435,883			428,733			7,150			407,299			28,584			1,280,611			1,223,529
Interest expense:
Deposits		37,058			34,092			2,966			32,362			4,696			104,907			92,835
Short-term borrowings		1,524			1,115			409			2,132			(608	)		3,734			6,051
Long-term debt		19,130			19,047			83			19,118			12			57,222			57,993
Total interest expense		57,712			54,254			3,458			53,612			4,100			165,863			156,879
Net interest income		378,171			374,479			3,692			353,687			24,484			1,114,748			1,066,650
Provision for loan losses - non-covered loans		157,659			49,965			107,694			42,594			115,065			249,681			130,202
Provision (reversal) for loan losses - covered loans		3,100			2,514			586			750			2,350			4,255			(1,551	)
Net interest income after provision for loan losses		217,412			322,000			(104,588	)		310,343			(92,931	)		860,812			937,999
Service charges on deposit accounts		39,273			41,073			(1,800	)		40,776			(1,503	)		119,882			120,934
Other service fees		53,481			59,168			(5,687	)		59,169			(5,688	)		168,824			169,496
Mortgage banking activities		5,239			10,741			(5,502	)		15,272			(10,033	)		27,349			42,050
Net gain and valuation adjustments on investment securities		103			19			84			349			(246	)		284			1,932
Other-than-temporary impairment losses on investment securities		-			(8,299	)		8,299			-			-			(8,299	)		(209	)
Trading account profit (loss)		253			(655	)		908			(113	)		366			(680	)		842
Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale		(420	)		-			(420	)		8,549			(8,969	)		(420	)		8,245
Adjustments (expense) to indemnity reserves on loans sold		(6,406	)		(2,930	)		(3,476	)		(4,390	)		(2,016	)		(11,302	)		(14,234	)
FDIC loss-share expense		(3,948	)		(475	)		(3,473	)		(61,723	)		57,775			(12,680	)		(77,445	)
Other operating income		12,799			18,151			(5,352	)		18,089			(5,290	)		50,078			46,500
Total non-interest income		100,374			116,793			(16,419	)		75,978			24,396			333,036			298,111
Operating expenses:
Personnel costs
Salaries		78,976			77,703			1,273			77,770			1,206			235,055			230,860
Commissions, incentives and other bonuses		16,879			18,295			(1,416	)		18,528			(1,649	)		55,252			56,279
Pension, postretirement and medical insurance		11,535			12,590			(1,055	)		13,413			(1,878	)		35,369			38,803
Other personnel costs, including payroll taxes		12,246			10,227			2,019			11,513			733			38,382			39,081
Total personnel costs		119,636			118,815			821			121,224			(1,588	)		364,058			365,023
Net occupancy expenses		22,254			22,265			(11	)		21,626			628			65,295			63,770
Equipment expenses		16,457			16,250			207			15,922			535			48,677			45,731
Other taxes		10,858			10,740			118			11,324			(466	)		32,567			31,689
Professional fees
Collections, appraisals and other credit related fees		3,559			3,779			(220	)		4,005			(446	)		11,161			13,479
Programming, processing and other technology services		49,717			51,569			(1,852	)		52,174			(2,457	)		149,377			152,270
Legal fees, excluding collections		2,928			2,314			614			11,428			(8,500	)		8,538			27,691
Other professional fees		14,568			15,272			(704	)		13,659			909			43,880			43,910
Total professional fees		70,772			72,934			(2,162	)		81,266			(10,494	)		212,956			237,350
Communications		5,394			5,899			(505	)		5,785			(391	)		17,242			18,117
Business promotion		15,216			13,366			1,850			12,726			2,490			40,158			37,541
FDIC deposit insurance		6,271			6,172			99			5,854			417			18,936			18,586
Other real estate owned (OREO) expenses		11,724			16,670			(4,946	)		11,295			429			41,212			33,416
Credit and debit card processing, volume, interchange and other expenses		7,375			6,441			934			3,640			3,735			19,348			15,979
Other operating expenses
Operational losses		13,222			7,215			6,007			19,609			(6,387	)		27,973			29,416
All other		15,564			7,724			7,840			6,503			9,061			39,785			25,037
Total other operating expenses		28,786			14,939			13,847			26,112			2,674			67,758			54,453
Amortization of intangibles		2,345			2,344			1			3,097			(752	)		7,034			9,308
Goodwill impairment charge		-			-			-			3,801			(3,801	)		-			3,801
Total operating expenses		317,088			306,835			10,253			323,672			(6,584	)		935,241			934,764
Income before income tax		698			131,958			(131,260	)		62,649			(61,951	)		258,607			301,346
Income tax (benefit) expense		(19,966	)		35,732			(55,698	)		15,839			(35,805	)		48,772			80,550
Net income	$	20,664		$	96,226		$	(75,562	)	$	46,810		$	(26,146	)	$	209,835		$	220,796
Net income applicable to common stock	$	19,734		$	95,295		$	(75,561	)	$	45,880		$	(26,146	)	$	207,043		$	218,004
Net income per common share - basic	$	0.19		$	0.94		$	(0.75	)	$	0.44		$	(0.25	)	$	2.03		$	2.11
Net income per common share - diluted	$	0.19		$	0.94		$	(0.75	)	$	0.44		$	(0.25	)	$	2.03		$	2.11
Dividends Declared per Common Share	$	0.25		$	0.25		$	-		$	0.15		$	0.10		$	0.75		$	0.45

Popular, Inc.
Financial Supplement to Third Quarter 2017 Earnings Release
Table C - Consolidated Statement of Financial Condition
(Unaudited)
										Variance
										Q3 2017 vs.
(In thousands)	30-Sep-17			30-Jun-17			30-Sep-16			Q2 2017
Assets:
Cash and due from banks	$	517,437		$	405,688		$	350,545		$	111,749
Money market investments		5,488,212			4,219,630			3,963,495			1,268,582
Trading account securities, at fair value		45,951			50,293			72,584			(4,342	)
Investment securities available-for-sale, at fair value		9,061,001			9,409,402			7,628,656			(348,401	)
Investment securities held-to-maturity, at amortized cost		93,438			96,286			97,973			(2,848	)
Other investment securities, at lower of cost or realizable value		173,965			170,177			168,791			3,788
Loans held-for-sale, at lower of cost or fair value		68,864			69,797			72,076			(933	)
Loans held-in-portfolio:
Loans not covered under loss-sharing agreements with the FDIC		23,302,047			23,046,078			22,714,358			255,969
Loans covered under loss-sharing agreements with the FDIC		524,854			536,341			588,211			(11,487	)
Less: Unearned income		128,597			127,807			118,386			790
Allowance for loan losses		646,913			540,014			555,855			106,899
Total loans held-in-portfolio, net		23,051,391			22,914,598			22,628,328			136,793
FDIC loss-share asset		48,470			52,583			152,467			(4,113	)
Premises and equipment, net		532,532			546,986			537,975			(14,454	)
Other real estate not covered under loss-sharing agreements with the FDIC		176,728			181,096			184,828			(4,368	)
Other real estate covered under loss-sharing agreements with the FDIC		21,545			25,350			37,414			(3,805	)
Accrued income receivable		146,339			136,104			119,691			10,235
Mortgage servicing assets, at fair value		180,157			188,728			200,354			(8,571	)
Other assets		2,329,927			2,108,296			2,163,939			221,631
Goodwill		627,294			627,294			627,294			-
Other intangible assets		38,016			40,361			47,886			(2,345	)
Total assets	$	42,601,267		$	41,242,669		$	39,054,296		$	1,358,598
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing	$	7,449,857		$	7,481,732		$	6,950,287		$	(31,875	)
Interest bearing		26,799,079			25,640,301			23,376,758			1,158,778
Total deposits		34,248,936			33,122,033			30,327,045			1,126,903
Federal funds purchased and assets sold under agreements to repurchase		374,405			406,385			765,251			(31,980	)
Other short-term borrowings		240,598			1,200			1,200			239,398
Notes payable		1,532,061			1,560,834			1,598,533			(28,773	)
Other liabilities		919,836			874,172			980,057			45,664
Liabilities from discontinued operations		-			-			1,815			-
Total liabilities		37,315,836			35,964,624			33,673,901			1,351,212
Stockholders’ equity:
Preferred stock		50,160			50,160			50,160			-
Common stock		1,042			1,041			1,040			1
Surplus		4,265,053			4,263,370			4,234,842			1,683
Retained earnings		1,350,730			1,356,504			1,259,295			(5,774	)
Treasury stock		(90,222	)		(90,087	)		(7,647	)		(135	)
Accumulated other comprehensive loss		(291,332	)		(302,943	)		(157,295	)		11,611
Total stockholders’ equity		5,285,431			5,278,045			5,380,395			7,386
Total liabilities and stockholders’ equity	$	42,601,267		$	41,242,669		$	39,054,296		$	1,358,598

Popular, Inc.
Financial Supplement to Third Quarter 2017 Earnings Release
Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER
(Unaudited)
	Quarter ended							Quarter ended							Quarter ended							Variance									Variance
	30-Sep-17							30-Jun-17							30-Sep-16							Q3 2017 vs. Q2 2017									Q3 2017 vs. Q3 2016
($ amounts in millions; yields not on a taxable equivalent basis)	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	$	14,483		$	63.9	1.76	%	$	14,018		$	61.1	1.74	%	$	11,159		$	43.7	1.57	%	$	465		$	2.8		0.02		%	$	3,324		$	20.2		0.19		%
Loans not covered under loss-sharing agreements with the FDIC:
Commercial		10,065			128.3	5.06			9,815			122.2	5.00			9,269			113.8	4.88			250			6.1		0.06				796			14.5		0.18
Construction		826			12.0	5.77			812			11.2	5.54			739			10.1	5.44			14			0.8		0.23				87			1.9		0.33
Mortgage		6,444			84.8	5.26			6,518			87.3	5.36			6,637			88.3	5.32			(74	)		(2.5	)	(0.10	)			(193	)		(3.5	)	(0.06	)
Consumer		3,782			99.1	10.40			3,698			97.2	10.55			3,847			99.3	10.27			84			1.9		(0.15	)			(65	)		(0.2	)	0.13
Lease financing		750			11.9	6.37			727			11.8	6.48			669			11.2	6.72			23			0.1		(0.11	)			81			0.7		(0.35	)
Total loans (excluding WB loans)		21,867			336.1	6.11			21,570			329.7	6.13			21,161			322.7	6.08			297			6.4		(0.02	)			706			13.4		0.03
WB loans		1,681			35.9	8.50			1,739			37.9	8.73			1,881			40.9	8.65			(58	)		(2.0	)	(0.23	)			(200	)		(5.0	)	(0.15	)
Total loans		23,548			372.0	6.28			23,309			367.6	6.32			23,042			363.6	6.29			239			4.4		(0.04	)			506			8.4		(0.01	)
Total interest earning assets	$	38,031		$	435.9	4.56	%	$	37,327		$	428.7	4.60	%	$	34,201		$	407.3	4.75	%	$	704		$	7.2		(0.04	)	%	$	3,830		$	28.6		(0.19	)	%
Allowance for loan losses		(566	)						(537	)						(553	)						(29	)								(13	)
Other non-interest earning assets		4,238							4,281							4,443							(43	)								(205	)
Total average assets	$	41,703						$	41,071						$	38,091						$	632								$	3,612
Liabilities and Stockholders' Equity:
Interest bearing deposits:
NOW and money market	$	10,465		$	10.3	0.39	%	$	9,941		$	8.9	0.36	%	$	7,326		$	7.0	0.38	%	$	524		$	1.4		0.03		%	$	3,139		$	3.3		0.01		%
Savings		8,260			5.0	0.24			8,134			5.0	0.24			7,550			4.6	0.24			126			-		-				710			0.4		-
Time deposits		7,543			21.8	1.14			7,661			20.2	1.06			7,859			20.7	1.05			(118	)		1.6		0.08				(316	)		1.1		0.09
Total interest bearing deposits		26,268			37.1	0.56			25,736			34.1	0.53			22,735			32.3	0.57			532			3.0		0.03				3,533			4.8		(0.01	)
Borrowings		1,982			20.6	4.17			1,936			20.1	4.18			2,398			21.3	3.55			46			0.5		(0.01	)			(416	)		(0.7	)	0.62
Total interest bearing liabilities		28,250			57.7	0.81			27,672			54.2	0.79			25,133			53.6	0.85			578			3.5		0.02				3,117			4.1		(0.04	)
Net interest spread						3.75	%						3.81	%						3.90	%							(0.06	)	%							(0.15	)	%
Non-interest bearing deposits		7,235							7,204							6,676							31									559
Other liabilities		832							869							955							(37	)								(123	)
Liabilities from discontinued operations		-							-							2							-									(2	)
Stockholders' equity		5,386							5,326							5,325							60									61
Total average liabilities and stockholders' equity	$	41,703						$	41,071						$	38,091						$	632								$	3,612
Net interest income / margin non-taxable equivalent basis				$	378.2	3.96	%				$	374.5	4.02	%				$	353.7	4.12	%				$	3.7		(0.06	)	%				$	24.5		(0.16	)	%

Popular, Inc.
Financial Supplement to Third Quarter 2017 Earnings Release
Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE
(Unaudited)
	Nine months ended							Nine months ended
	30-Sep-17							30-Sep-16							Variance
	Average			Income /		Yield /		Average			Income /		Yield /		Average			Income /			Yield /
($ amounts in millions; yields not on a taxable equivalent basis)	balance			Expense		Rate		balance			Expense		Rate		balance			Expense			Rate
Assets:
Interest earning assets:
Money market, trading and investment securities	$	13,649		$	177.8	1.74	%	$	10,136		$	127.0	1.67	%	$	3,513		$	50.8		0.07		%
Loans not covered under loss-sharing agreements with the FDIC:
Commercial		9,863			369.3	5.01			9,126			335.3	4.91			737			34.0		0.10
Construction		819			34.2	5.57			722			29.1	5.39			97			5.1		0.18
Mortgage		6,522			260.4	5.32			6,736			266.9	5.28			(214	)		(6.5	)	0.04
Consumer		3,728			291.6	10.46			3,839			296.7	10.32			(111	)		(5.1	)	0.14
Lease financing		728			35.3	6.46			650			32.9	6.74			78			2.4		(0.28	)
Total loans (excluding WB loans)		21,660			990.8	6.11			21,073			960.9	6.09			587			29.9		0.02
WB loans		1,743			112.0	8.59			1,984			135.6	9.12			(241	)		(23.6	)	(0.53	)
Total loans		23,403			1,102.8	6.29			23,057			1,096.5	6.35			346			6.3		(0.06	)
Total interest earning assets	$	37,052		$	1,280.6	4.62	%	$	33,193		$	1,223.5	4.92	%	$	3,859		$	57.1		(0.30	)	%
Allowance for loan losses		(548	)						(542	)						(6	)
Other non-interest earning assets		4,277							4,469							(192	)
Total average assets	$	40,781						$	37,120						$	3,661
Liabilities and Stockholders' Equity:
Interest bearing deposits:
NOW and money market	$	9,647		$	27.7	0.38	%	$	6,689		$	19.2	0.38	%	$	2,958		$	8.5		-		%
Savings		8,146			14.9	0.24			7,438			13.3	0.24			708			1.6		-
Time deposits		7,653			62.3	1.09			7,928			60.3	1.02			(275	)		2.0		0.07
Total interest bearing deposits		25,446			104.9	0.55			22,055			92.8	0.56			3,391			12.1		(0.01	)
Borrowings		1,981			61.0	4.11			2,382			64.0	3.59			(401	)		(3.0	)	0.52
Total interest bearing liabilities		27,427			165.9	0.81			24,437			156.8	0.86			2,990			9.1		(0.05	)
Net interest spread						3.81	%						4.06	%							(0.25	)	%
Non-interest bearing deposits		7,156							6,484							672
Other liabilities		865							937							(72	)
Liabilities from discontinued operations		-							2							(2	)
Stockholders' equity		5,333							5,260							73
Total average liabilities and stockholders' equity	$	40,781						$	37,120						$	3,661
Net interest income / margin non-taxable equivalent basis				$	1,114.7	4.02	%				$	1,066.7	4.29	%				$	48.0		(0.27	)	%

Financial Supplement to Third Quarter 2017 Earnings Release
Table F - Mortgage Banking Activities and Other Service Fees
(Unaudited)
Mortgage Banking Activities
	Quarters ended									Variance						Nine months ended						Variance
(In thousands)	30-Sep-17			30-Jun-17			30-Sep-16			Q3 2017 vs.Q2 2017			Q3 2017 vs.Q3 2016			30-Sep-17			30-Sep-16			2017 vs. 2016
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees	$	12,012		$	13,021		$	14,520		$	(1,009	)	$	(2,508	)	$	38,485		$	43,997		$	(5,512	)
Mortgage servicing rights fair value adjustments		(10,262	)		(8,046	)		(6,062	)		(2,216	)		(4,200	)		(24,262	)		(18,879	)		(5,383	)
Total mortgage servicing fees, net of fair value adjustments		1,750			4,975			8,458			(3,225	)		(6,708	)		14,223			25,118			(10,895	)
Net gain on sale of loans, including valuation on loans held-for-sale		4,244			7,250			8,857			(3,006	)		(4,613	)		16,875			24,441			(7,566	)
Trading account loss:
Unrealized (losses) gains on outstanding derivative positions		(147	)		83			95			(230	)		(242	)		(104	)		(44	)		(60	)
Realized losses on closed derivative positions		(608	)		(1,567	)		(2,138	)		959			1,530			(3,645	)		(7,465	)		3,820
Total trading account loss		(755	)		(1,484	)		(2,043	)		729			1,288			(3,749	)		(7,509	)		3,760
Total mortgage banking activities	$	5,239		$	10,741		$	15,272		$	(5,502	)	$	(10,033	)	$	27,349		$	42,050		$	(14,701	)
Other Service Fees
	Quarters ended									Variance						Nine months ended						Variance
(In thousands)	30-Sep-17			30-Jun-17			30-Sep-16			Q3 2017 vs.Q2 2017			Q3 2017 vs.Q3 2016			30-Sep-17			30-Sep-16			2017 vs. 2016
Other service fees:
Debit card fees	$	10,359		$	11,576		$	11,483		$	(1,217	)	$	(1,124	)	$	33,478		$	34,153		$	(675	)
Insurance fees		13,076			13,529			15,943			(453	)		(2,867	)		39,410			42,678			(3,268	)
Credit card fees		16,699			19,305			17,644			(2,606	)		(945	)		54,280			52,202			2,078
Sale and administration of investment products		5,496			5,799			5,542			(303	)		(46	)		16,377			15,798			579
Trust fees		4,817			4,903			4,968			(86	)		(151	)		14,675			14,029			646
Other fees		3,034			4,056			3,589			(1,022	)		(555	)		10,604			10,636			(32	)
Total other service fees	$	53,481		$	59,168		$	59,169		$	(5,687	)	$	(5,688	)	$	168,824		$	169,496		$	(672	)

Popular, Inc.
Financial Supplement to Third Quarter 2017 Earnings Release
Table G - Loans and Deposits
(Unaudited)
Loans - Ending Balances
							Variance
(In thousands)	30-Sep-17		30-Jun-17		30-Sep-16		Q3 2017 vs. Q2 2017			Q3 2017 vs. Q3 2016
Loans not covered under FDIC loss-sharing agreements:
Commercial	$	11,227,095	$	11,047,359	$	10,537,191	$	179,736		$	689,904
Construction		823,325		784,389		731,352		38,936			91,973
Legacy [1]		37,508		39,067		47,914		(1,559	)		(10,406	)
Lease financing		754,881		743,603		682,810		11,278			72,071
Mortgage		6,529,235		6,552,796		6,774,497		(23,561	)		(245,262	)
Consumer		3,801,406		3,751,057		3,822,208		50,349			(20,802	)
Total non-covered loans held-in-portfolio	$	23,173,450	$	22,918,271	$	22,595,972	$	255,179		$	577,478
Loans covered under FDIC loss-sharing agreements		524,854		536,341		588,211		(11,487	)		(63,357	)
Total loans held-in-portfolio	$	23,698,304	$	23,454,612	$	23,184,183	$	243,692		$	514,121
Loans held-for-sale:
Mortgage		68,864		69,797		72,076		(933	)		(3,212	)
Total loans held-for-sale	$	68,864	$	69,797	$	72,076	$	(933	)	$	(3,212	)
Total loans	$	23,767,168	$	23,524,409	$	23,256,259	$	242,759		$	510,909
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.
Deposits - Ending Balances
							Variance
(In thousands)	30-Sep-17		30-Jun-17		30-Sep-16		Q3 2017 vs. Q2 2017			Q3 2017 vs.Q3 2016
Demand deposits [1]	$	11,576,048	$	11,194,860	$	9,161,839	$	381,188		$	2,414,209
Savings, NOW and money market deposits (non-brokered)		14,638,191		13,946,680		12,872,072		691,511			1,766,119
Savings, NOW and money market deposits (brokered)		422,174		424,303		391,128		(2,129	)		31,046
Time deposits (non-brokered)		7,446,922		7,361,587		7,619,232		85,335			(172,310	)
Time deposits (brokered CDs)		165,601		194,603		282,774		(29,002	)		(117,173	)
Total deposits	$	34,248,936	$	33,122,033	$	30,327,045	$	1,126,903		$	3,921,891
[1] Includes interest and non-interest bearing demand deposits.

Popular, Inc.
Financial Supplement to Third Quarter 2017 Earnings Release
Table H - Non-Performing Assets
(Unaudited)
													Variance
(Dollars in thousands)	30-Sep-17		As a % of loans HIP by category		30-Jun-17		As a % of loans HIP by category		30-Sep-16		As a % of loans HIP by category		Q3 2017 vs. Q2 2017			Q3 2017 vs. Q3 2016
Non-accrual loans:
Commercial	$	165,352	1.5	%	$	166,864	1.5	%	$	170,571	1.6	%	$	(1,512	)	$	(5,219	)
Construction		99	-			-	-			-	―			99			99
Legacy [1]		3,268	8.7			3,360	8.6			3,450	7.2			(92	)		(182	)
Lease financing		2,684	0.4			2,065	0.3			2,878	0.4			619			(194	)
Mortgage		352,315	5.4			318,922	4.9			345,776	5.1			33,393			6,539
Consumer		62,210	1.6			55,918	1.5			56,650	1.5			6,292			5,560
Total non-performing loans held-in-portfolio, excluding covered loans		585,928	2.5	%		547,129	2.4	%		579,325	2.6	%		38,799			6,603
Other real estate owned (“OREO”), excluding covered OREO		176,728				181,096				184,828				(4,368	)		(8,100	)
Total non-performing assets, excluding covered assets		762,656				728,225				764,153				34,431			(1,497	)
Covered loans and OREO		24,951				29,376				41,211				(4,425	)		(16,260	)
Total non-performing assets	$	787,607			$	757,601			$	805,364			$	30,006		$	(17,757	)
Accruing loans past due 90 days or more [3]	$	465,127			$	391,569			$	418,652			$	73,558		$	46,475
Ratios excluding covered loans:
Non-performing loans held-in-portfolio to loans held-in-portfolio		2.53	%			2.39	%			2.56	%
Allowance for loan losses to loans held-in-portfolio		2.65				2.22				2.33
Allowance for loan losses to non-performing loans, excluding loans held-for-sale		104.77				93.07				90.73
Ratios including covered loans:
Non-performing assets to total assets		1.85	%			1.84	%			2.06	%
Non-performing loans held-in-portfolio to loans held-in-portfolio		2.49				2.35				2.52
Allowance for loan losses to loans held-in-portfolio		2.73				2.30				2.40
Allowance for loan losses to non-performing loans, excluding loans held-for-sale		109.77				97.98				95.32
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.
[2] There were no non-performing loans held-for-sale as of September 30, 2017, June 30, 2017 and September 30, 2016.
[3] 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. These balances include $157 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of September 30, 2017 (June 30, 2017 - $160 million; September 30, 2016 - $174 million). Furthermore, the Corporation has approximately $57 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (June 30, 2017 - $57 million; September 30, 2016 - $72 million).

Popular, Inc.
Financial Supplement to Third Quarter 2017 Earnings Release
Table I - Activity in Non-Performing Loans
(Unaudited)
Commercial loans held-in-portfolio:
	Quarter ended									Quarter ended
	30-Sep-17									30-Jun-17
(In thousands)	BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs	$	162,863		$	4,001		$	166,864		$	175,477		$	3,764		$	179,241
Plus:
New non-performing loans		8,085			4,027			12,112			13,809			1,027			14,836
Advances on existing non-performing loans		-			-			-			-			4			4
Less:
Non-performing loans transferred to OREO		(76	)		-			(76	)		(2,442	)		-			(2,442	)
Non-performing loans charged-off		(3,587	)		(49	)		(3,636	)		(19,184	)		(22	)		(19,206	)
Loans returned to accrual status / loan collections		(7,242	)		(2,670	)		(9,912	)		(4,797	)		(772	)		(5,569	)
Ending balance NPLs	$	160,043		$	5,309		$	165,352		$	162,863		$	4,001		$	166,864
Construction loans held-in-portfolio:
	Quarter ended									Quarter ended
	30-Sep-17									30-Jun-17
(In thousands)	BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs	$	-		$	-		$	-		$	-		$	-		$	-
Plus:
New non-performing loans		99			-			99			-			-			-
Ending balance NPLs	$	99		$	-		$	99		$	-		$	-		$	-
Mortgage loans held-in-portfolio:
	Quarter ended									Quarter ended
	30-Sep-17									30-Jun-17
(In thousands)	BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs	$	306,642		$	12,280		$	318,922		$	319,450		$	11,889		$	331,339
Plus:
New non-performing loans		97,314			5,349			102,663			81,582			4,990			86,572
Less:
Non-performing loans transferred to OREO		(9,408	)		-			(9,408	)		(12,229	)		-			(12,229	)
Non-performing loans charged-off		(10,864	)		(66	)		(10,930	)		(14,123	)		(580	)		(14,703	)
Loans returned to accrual status / loan collections		(45,717	)		(3,215	)		(48,932	)		(68,038	)		(4,019	)		(72,057	)
Ending balance NPLs	$	337,967		$	14,348		$	352,315		$	306,642		$	12,280		$	318,922

Legacy loans held-in-portfolio:
	Quarter ended									Quarter ended
	30-Sep-17									30-Jun-17
(In thousands)	BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs	$	-		$	3,360		$	3,360		$	-		$	3,335		$	3,335
Plus:
New non-performing loans		-			-			-			-			114			114
Advances on existing non-performing loans		-			64			64			-			8			8
Less:
Non-performing loans charged-off		-			(14	)		(14	)		-			(11	)		(11	)
Loans returned to accrual status / loan collections		-			(142	)		(142	)		-			(86	)		(86	)
Ending balance NPLs	$	-		$	3,268		$	3,268		$	-		$	3,360		$	3,360
Total non-performing loans held-in-portfolio (excluding consumer and covered loans):
	Quarter ended									Quarter ended
	30-Sep-17									30-Jun-17
(In thousands)	BPPR			BPNA			Popular, Inc.			BPPR			BPNA			Popular, Inc.
Beginning balance NPLs	$	469,505		$	19,641		$	489,146		$	494,927		$	18,988		$	513,915
Plus:
New non-performing loans		105,498			9,376			114,874			95,391			6,131			101,522
Advances on existing non-performing loans		-			64			64			-			12			12
Less:
Non-performing loans transferred to OREO		(9,484	)		-			(9,484	)		(14,671	)		-			(14,671	)
Non-performing loans charged-off		(14,451	)		(129	)		(14,580	)		(33,307	)		(613	)		(33,920	)
Loans returned to accrual status / loan collections		(52,959	)		(6,027	)		(58,986	)		(72,835	)		(4,877	)		(77,712	)
Ending balance NPLs	$	498,109		$	22,925		$	521,034		$	469,505		$	19,641		$	489,146

Popular, Inc.
Financial Supplement to Third Quarter 2017 Earnings Release
Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios
(Unaudited)
	Quarter ended								Quarter ended									Quarter ended
	30-Sep-17								30-Jun-17									30-Sep-16
(Dollars in thousands)	Non-covered loans			Covered loans		Total			Non-covered loans			Covered loans			Total			Non-covered loans			Covered loans		Total
Balance at beginning of period	$	509,206		$	30,808	$	540,014		$	516,725		$	27,771		$	544,496		$	518,139		$	30,581	$	548,720
Provision (reversal) for loan losses		157,659			3,100		160,759			49,965			2,514			52,479			42,594			750		43,344
		666,865			33,908		700,773			566,690			30,285			596,975			560,733			31,331		592,064
Net loans charged-off (recovered):
BPPR
Commercial [2]		(438	)		-		(438	)		11,745			-			11,745			3,199			-		3,199
Construction		(50	)		-		(50	)		(2,370	)		-			(2,370	)		886			-		886
Lease financing		1,495			-		1,495			1,438			-			1,438			816			-		816
Mortgage		17,071			831		17,902			20,753			(538	)		20,215			15,237			661		15,898
Consumer		27,223			20		27,243			22,689			15			22,704			12,821			408		13,229
Total BPPR		45,301			851		46,152			54,255			(523	)		53,732			32,959			1,069		34,028
BPNA
Commercial		4,282			-		4,282			(643	)		-			(643	)		(1,173	)		-		(1,173	)
Legacy [1]		(297	)		-		(297	)		(298	)		-			(298	)		(520	)		-		(520	)
Mortgage		(174	)		-		(174	)		462			-			462			1,942			-		1,942
Consumer		3,897			-		3,897			3,708			-			3,708			1,932			-		1,932
Total BPNA		7,708			-		7,708			3,229			-			3,229			2,181			-		2,181
Total loans charged-off - Popular, Inc.		53,009			851		53,860			57,484			(523	)		56,961			35,140			1,069		36,209
Balance at end of period	$	613,856		$	33,057	$	646,913		$	509,206		$	30,808		$	540,014		$	525,593		$	30,262	$	555,855
POPULAR, INC.
Annualized net charge-offs to average loans held-in-portfolio		0.92	%				0.92	%		1.01	%					0.98	%		0.63	%				0.63	%
Provision for loan losses to net charge-offs		2.97	x				2.98	x		0.87	x					0.92	x		1.21	x				1.20	x
BPPR
Annualized net charge-offs to average loans held-in-portfolio		1.07	%				1.05	%		1.28	%					1.23	%		0.77	%				0.77	%
Provision for loan losses to net charge-offs		2.54	x				2.56	x		0.78	x					0.83	x		1.10	x				1.09	x
BPNA
Annualized net charge-offs (recoveries) to average loans held-in-portfolio							0.52	%								0.22	%							0.17	%
Provision for loan losses to net charge-offs (recoveries)							5.52	x								2.41	x							2.89	x
[1] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA segment.
[2] For the quarter ended June 30, 2017, includes the elimination of an incremental $6.0 million charge-off related to the inter-company transfer of a loan between BPPR and Popular, Inc., its bank holding company, the impact of which is eliminated in the consolidated results of the Corporation in accordance with U.S. GAAP.

Popular, Inc.
Financial Supplement to Third Quarter 2017 Earnings Release
Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED
(Unaudited)
30-Sep-17
(Dollars in thousands)		Commercial				Construction			Legacy [2]				Mortgage				Lease financing				Consumer				Total			[3]
Specific ALLL		$	40,863			$	-		$	-			$	51,421			$	450			$	22,457			$	115,191
Impaired loans	[1]	$	328,704			$	-		$	-			$	519,228			$	1,468			$	105,387			$	954,787
Specific ALLL to impaired loans	[1]		12.43		%		-	%		-		%		9.90		%		30.65		%		21.31		%		12.06		%
General ALLL		$	228,106			$	8,822		$	872			$	122,469			$	9,982			$	128,414			$	498,665
Loans held-in-portfolio, excluding impaired loans	[1]	$	10,898,391			$	823,325		$	37,508			$	6,010,007			$	753,413			$	3,696,019			$	22,218,663
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]		2.09		%		1.07	%		2.32		%		2.04		%		1.32		%		3.47		%		2.24		%
Total ALLL		$	268,969			$	8,822		$	872			$	173,890			$	10,432			$	150,871			$	613,856
Total non-covered loans held-in-portfolio	[1]	$	11,227,095			$	823,325		$	37,508			$	6,529,235			$	754,881			$	3,801,406			$	23,173,450
ALLL to loans held-in-portfolio	[1]		2.40		%		1.07	%		2.32		%		2.66		%		1.38		%		3.97		%		2.65		%
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
[2] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.
[3] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of September 30, 2017 the general allowance on the covered loans amounted to $33.1 million.
30-Jun-17
(Dollars in thousands)		Commercial				Construction			Legacy [2]				Mortgage				Lease financing				Consumer				Total			[3]
Specific ALLL		$	41,982			$	-		$	-			$	50,148			$	487			$	22,693			$	115,310
Impaired loans	[1]	$	333,936			$	-		$	-			$	514,140			$	1,668			$	107,027			$	956,771
Specific ALLL to impaired loans	[1]		12.57		%		-	%		-		%		9.75		%		29.20		%		21.20		%		12.05		%
General ALLL		$	160,526			$	8,001		$	993			$	101,840			$	7,516			$	115,020			$	393,896
Loans held-in-portfolio, excluding impaired loans	[1]	$	10,713,423			$	784,389		$	39,067			$	6,038,656			$	741,935			$	3,644,030			$	21,961,500
General ALLL to loans held-in-portfolio, excluding impaired loans	[1]		1.50		%		1.02	%		2.54		%		1.69		%		1.01		%		3.16		%		1.79		%
Total ALLL		$	202,508			$	8,001		$	993			$	151,988			$	8,003			$	137,713			$	509,206
Total non-covered loans held-in-portfolio	[1]	$	11,047,359			$	784,389		$	39,067			$	6,552,796			$	743,603			$	3,751,057			$	22,918,271
ALLL to loans held-in-portfolio	[1]		1.83		%		1.02	%		2.54		%		2.32		%		1.08		%		3.67		%		2.22		%
[1] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction.
[2] The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.
[3] Excludes covered loans acquired on the Westernbank FDIC-assisted transaction. As of June 30, 2017 the general allowance on the covered loans amounted to $30.8 million.
Variance
(Dollars in thousands)		Commercial				Construction			Legacy				Mortgage				Lease financing				Consumer				Total
Specific ALLL		$	(1,119	)		$	-		$	-			$	1,273			$	(37	)		$	(236	)		$	(119	)
Impaired loans		$	(5,232	)		$	-		$	-			$	5,088			$	(200	)		$	(1,640	)		$	(1,984	)
General ALLL		$	67,580			$	821		$	(121	)		$	20,629			$	2,466			$	13,394			$	104,769
Loans held-in-portfolio, excluding impaired loans		$	184,968			$	38,936		$	(1,559	)		$	(28,649	)		$	11,478			$	51,989			$	257,163
Total ALLL		$	66,461			$	821		$	(121	)		$	21,902			$	2,429			$	13,158			$	104,650
Total non-covered loans held-in-portfolio		$	179,736			$	38,936		$	(1,559	)		$	(23,561	)		$	11,278			$	50,349			$	255,179

Popular, Inc.
Financial Supplement to Third Quarter 2017 Earnings Release
Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS
(Unaudited)
30-Sep-17
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
Specific ALLL non-covered loans	$	40,863		$	-		$	49,129		$	450		$	21,730		$	112,172
General ALLL non-covered loans		164,823			1,699			120,504			9,982			115,069			412,077
ALLL - non-covered loans		205,686			1,699			169,633			10,432			136,799			524,249
Specific ALLL covered loans		-			-			-			-			-			-
General ALLL covered loans		-			-			31,991			-			1,066			33,057
ALLL - covered loans		-			-			31,991			-			1,066			33,057
Total ALLL	$	205,686		$	1,699		$	201,624		$	10,432		$	137,865		$	557,306
Loans held-in-portfolio:
Impaired non-covered loans	$	328,704		$	-		$	510,134		$	1,468		$	101,948		$	942,254
Non-covered loans held-in-portfolio, excluding impaired loans		6,840,907			87,705			5,305,371			753,413			3,188,422			16,175,818
Non-covered loans held-in-portfolio		7,169,611			87,705			5,815,505			754,881			3,290,370			17,118,072
Impaired covered loans		-			-			-			-			-			-
Covered loans held-in-portfolio, excluding impaired loans		-			-			510,211			-			14,643			524,854
Covered loans held-in-portfolio		-			-			510,211			-			14,643			524,854
Total loans held-in-portfolio	$	7,169,611		$	87,705		$	6,325,716		$	754,881		$	3,305,013		$	17,642,926
30-Jun-17
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
Specific ALLL non-covered loans	$	41,982		$	-		$	47,954		$	487		$	21,999		$	112,422
General ALLL non-covered loans		132,207			1,473			99,912			7,516			100,905			342,013
ALLL - non-covered loans		174,189			1,473			147,866			8,003			122,904			454,435
Specific ALLL covered loans		-			-			-			-			-			-
General ALLL covered loans		-			-			30,284			-			524			30,808
ALLL - covered loans		-			-			30,284			-			524			30,808
Total ALLL	$	174,189		$	1,473		$	178,150		$	8,003		$	123,428		$	485,243
Loans held-in-portfolio:
Impaired non-covered loans	$	333,936		$	-		$	505,244		$	1,668		$	103,798		$	944,646
Non-covered loans held-in-portfolio, excluding impaired loans		6,822,150			96,904			5,313,039			741,935			3,157,991			16,132,019
Non-covered loans held-in-portfolio		7,156,086			96,904			5,818,283			743,603			3,261,789			17,076,665
Impaired covered loans		-			-			-			-			-			-
Covered loans held-in-portfolio, excluding impaired loans		-			-			521,066			-			15,275			536,341
Covered loans held-in-portfolio		-			-			521,066			-			15,275			536,341
Total loans held-in-portfolio	$	7,156,086		$	96,904		$	6,339,349		$	743,603		$	3,277,064		$	17,613,006
Variance
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:
Specific ALLL non-covered loans	$	(1,119	)	$	-		$	1,175		$	(37	)	$	(269	)	$	(250	)
General ALLL non-covered loans		32,616			226			20,592			2,466			14,164			70,064
ALLL - non-covered loans		31,497			226			21,767			2,429			13,895			69,814
Specific ALLL covered loans		-			-			-			-			-			-
General ALLL covered loans		-			-			1,707			-			542			2,249
ALLL - covered loans		-			-			1,707			-			542			2,249
Total ALLL	$	31,497		$	226		$	23,474		$	2,429		$	14,437		$	72,063
Loans held-in-portfolio:
Impaired non-covered loans	$	(5,232	)	$	-		$	4,890		$	(200	)	$	(1,850	)	$	(2,392	)
Non-covered loans held-in-portfolio, excluding impaired loans		18,757			(9,199	)		(7,668	)		11,478			30,431			43,799
Non-covered loans held-in-portfolio		13,525			(9,199	)		(2,778	)		11,278			28,581			41,407
Impaired covered loans		-			-			-			-			-			-
Covered loans held-in-portfolio, excluding impaired loans		-			-			(10,855	)		-			(632	)		(11,487	)
Covered loans held-in-portfolio		-			-			(10,855	)		-			(632	)		(11,487	)
Total loans held-in-portfolio	$	13,525		$	(9,199	)	$	(13,633	)	$	11,278		$	27,949		$	29,920

Popular, Inc.
Financial Supplement to Third Quarter 2017 Earnings Release
Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - U.S. MAINLAND OPERATIONS
(Unaudited)
30-Sep-17
U.S. Mainland
(In thousands)	Commercial		Construction		Legacy			Mortgage			Consumer			Total
Allowance for credit losses:
Specific ALLL	$	-	$	-	$	-		$	2,292		$	727		$	3,019
General ALLL		63,283		7,123		872			1,965			13,345			86,588
Total ALLL	$	63,283	$	7,123	$	872		$	4,257		$	14,072		$	89,607
Loans held-in-portfolio:
Impaired loans	$	-	$	-	$	-		$	9,094		$	3,439		$	12,533
Loans held-in-portfolio, excluding impaired loans		4,057,484		735,620		37,508			704,636			507,597			6,042,845
Total loans held-in-portfolio	$	4,057,484	$	735,620	$	37,508		$	713,730		$	511,036		$	6,055,378
30-Jun-17
U.S. Mainland
(In thousands)	Commercial		Construction		Legacy			Mortgage			Consumer			Total
Allowance for credit losses:
Specific ALLL	$	-	$	-	$	-		$	2,194		$	694		$	2,888
General ALLL		28,319		6,528		993			1,928			14,115			51,883
Total ALLL	$	28,319	$	6,528	$	993		$	4,122		$	14,809		$	54,771
Loans held-in-portfolio:
Impaired loans	$	-	$	-	$	-		$	8,896		$	3,229		$	12,125
Loans held-in-portfolio, excluding impaired loans		3,891,273		687,485		39,067			725,617			486,039			5,829,481
Total loans held-in-portfolio	$	3,891,273	$	687,485	$	39,067		$	734,513		$	489,268		$	5,841,606
Variance
(In thousands)	Commercial		Construction		Legacy			Mortgage			Consumer			Total
Allowance for credit losses:
Specific ALLL	$	-	$	-	$	-		$	98		$	33		$	131
General ALLL		34,964		595		(121	)		37			(770	)		34,705
Total ALLL	$	34,964	$	595	$	(121	)	$	135		$	(737	)	$	34,836
Loans held-in-portfolio:
Impaired loans	$	-	$	-	$	-		$	198		$	210		$	408
Loans held-in-portfolio, excluding impaired loans		166,211		48,135		(1,559	)		(20,981	)		21,558			213,364
Total loans held-in-portfolio	$	166,211	$	48,135	$	(1,559	)	$	(20,783	)	$	21,768		$	213,772

Popular, Inc.
Financial Supplement to Third Quarter 2017 Earnings Release
Table N - Reconciliation to GAAP Financial Measures
(Unaudited)
(In thousands, except share or per share information)	30-Sep-17				30-Jun-17				30-Sep-16
Total stockholders’ equity	$	5,285,431			$	5,278,045			$	5,380,395
Less: Preferred stock		(50,160	)			(50,160	)			(50,160	)
	$	5,235,271			$	5,227,885			$	5,330,235
Common shares outstanding at end of period		102,026,417				101,986,758				103,762,596
Common equity per share	$	51.31			$	51.26			$	51.37
Total stockholders’ equity	$	5,285,431			$	5,278,045			$	5,380,395
Less: Preferred stock		(50,160	)			(50,160	)			(50,160	)
Less: Goodwill		(627,294	)			(627,294	)			(627,294	)
Less: Other intangibles		(38,016	)			(40,361	)			(47,886	)
Total tangible common equity	$	4,569,961			$	4,560,230			$	4,655,055
Total assets	$	42,601,267			$	41,242,669			$	39,054,296
Less: Goodwill		(627,294	)			(627,294	)			(627,294	)
Less: Other intangibles		(38,016	)			(40,361	)			(47,886	)
Total tangible assets	$	41,935,957			$	40,575,014			$	38,379,116
Tangible common equity to tangible assets		10.90		%		11.24		%		12.13		%
Common shares outstanding at end of period		102,026,417				101,986,758				103,762,596
Tangible book value per common share	$	44.79			$	44.71			$	44.86

Popular, Inc.
Financial Supplement to Third Quarter 2017 Earnings Release
Table O - Financial Information - Westernbank Loans
(Unaudited)
Revenues (Expenses)
	Quarters ended
(In thousands)	30-Sep-17			30-Jun-17			Variance
Interest income on WB loans	$	35,939		$	37,900		$	(1,961	)
FDIC loss-share expense:
Accretion of indemnification asset		567			147			420
80% mirror accounting on credit impairment losses [1]		(329	)		2,126			(2,455	)
80% mirror accounting on reimbursable expenses		588			723			(135	)
80% mirror accounting on recoveries on covered assets, including rental income on OREOs, subject to reimbursement to the FDIC		(1,601	)		(400	)		(1,201	)
Change in true-up payment obligation		(3,208	)		(3,125	)		(83	)
Other		35			54			(19	)
Total FDIC loss-share expense		(3,948	)		(475	)		(3,473	)
Total income		31,991			37,425			(5,434	)
Provision (reversal) for loan losses- WB loans [2]		14,751			(417	)		15,168
Total income less provision (reversal) for loan losses	$	17,240		$	37,842		$	(20,602	)
[1] Reductions in expected cash flows for ASC 310-30 loans, which may impact the provision for loan losses, may consider reductions in both principal and interest cash flow expectations. The amount covered under the FDIC loss-sharing agreement for interest not collected from borrowers is limited under the agreement (approximately 90 days); accordingly, these amounts are not subject fully to the 80% mirror accounting.
[2] The quarter ended June 30, 2017 includes the elimination of an incremental $6.0 million provision for loan losses related to the inter-company transfer of a loan between BPPR and Popular, Inc., its bank holding company, the impact of which is eliminated in the consolidated results of the Corporation in accordance with U.S. GAAP.
Non-personnel operating expenses
	Quarters ended [1][2]
(In thousands)	30-Sep-17			30-Jun-17			Variance
Professional fees	$	315		$	735		$	(420	)
OREO expenses		1,807			3,166			(1,359	)
Other operating expenses		1,748			1,685			63
Total operating expenses	$	3,870		$	5,586		$	(1,716	)
[1] Includes expenses related to loans subject, and not subject, to the FDIC loss-sharing agreements.
[2] Expense reimbursements from the FDIC may be recorded with a time lag, since these are claimed upon the event of loss or charge-off of the loans which may occur in a subsequent period.
Quarterly average assets
	Quarters ended
(In millions)	30-Sep-17			30-Jun-17			Variance
Loans	$	1,681		$	1,740		$	(59	)
FDIC loss-share asset		52			54			(2	)

Activity in the carrying amount and accretable yield of loans accounted for under ASC 310-30
	Quarters ended
	30-Sep-17						30-Jun-17
(In thousands)	Accretable yield			Carrying amount of loans			Accretable yield			Carrying amount of loans
Beginning balance	$	942,668		$	1,617,787		$	981,206		$	1,688,900
Accretion		(34,791	)		34,791			(36,488	)		36,488
Changes in expected cash flows		1,451			-			(2,050	)		-
Collections / loan sales / charge-offs		-			(64,030	)		-			(107,601	)
Ending balance[1]		909,328			1,588,548			942,668			1,617,787
Allowance for loan losses - ASC 310-30 loans		-			(67,100	)		-			(65,674	)
Ending balance, net of allowance for loan losses	$	909,328		$	1,521,448		$	942,668		$	1,552,113
[1] The carrying amount of loans acquired from Westernbank and accounted for under ASC 310-30 which remain subject to the loss-sharing agreement with the FDIC amounted to approximately $515 million as of September 30, 2017 and $526 million as of June 30, 2017.
Activity in the carrying amount of the FDIC indemnity asset
				Quarters ended
(In thousands)				30-Sep-17						30-Jun-17
Balance at beginning of period				$	53,070					$	64,077
Accretion					567						147
Credit impairment losses to be covered under loss-sharing agreements					(329	)					2,126
Reimbursable expenses to be covered under loss-sharing agreements					588						723
Net payments from FDIC under loss-sharing agreements					(4,502	)					(14,003	)
Balance at end of period					49,394						53,070
Balance due to the FDIC for recoveries on covered assets					(924	)					(487	)
Net balance of indemnity asset and amounts due from the FDIC				$	48,470					$	52,583
Activity in the remaining FDIC loss-share asset accretion
				Quarters ended
(In thousands)				30-Sep-17						30-Jun-17
Balance at beginning of period [1]				$	(725	)				$	3,929
Accretion [2]					567						147
Impact of change in projected losses					(2,399	)					(4,801	)
Balance at end of period				$	(2,557	)				$	(725	)
[1] Positive balance represents negative discount (debit to assets), while a negative balance represents a discount (credit to assets).
[2] Amortization results in a negative impact non-impact to non-interest income, while accretion results in a positive impact to non-interest income, particularly FDIC loss-share expense.

CONTACT:
Popular, Inc.
Investor Relations:
Brett Scheiner, 212-417-6721
Investor Relations Officer
BScheiner@BPOP.com
or
Media Relations:
Teruca Rullán, 787-281-5170
Mobile: 917-679-3596
Senior Vice President, Corporate Communications