Popular (BPOP) 8-K Popular, Inc. Announces First Quarter 2020 Financial Results

Exhibit 99.1

                

Popular, Inc. Announces First Quarter 2020 Financial Results

• Net income of $34.3 million in Q1 2020, compared to net income of $166.8 million in Q4 2019.

• Net interest margin of 3.94% in Q1 2020, compared to 3.83% in Q4 2019; Net interest margin on a taxable equivalent basis of 4.34% in Q1 2020, compared to 4.20% in Q4 2019.

• Q1 2020 results reflect the impact of the adoption of the Current Expected Credit Losses (“CECL”) accounting standard.

• Credit Quality:

• Non-performing loansheld-in-portfolio (“NPLs”) increased by $240.8 million from Q4 2019, mostly due to the effect of the adoption of CECL on previously acquired credit deteriorated loans; excluding this impact, NPLs decreased by $26.7 million; NPLs to loans ratio at 2.8% vs. 1.9% in Q4 2019;

• Net charge-offs (“NCOs”) decreased by $19.4 million from Q4 2019; NCOs at 0.91% of average loansheld-in-portfolio vs. 1.21% in Q4 2019;

• Allowance for credit losses (“ACL”) to loansheld-in-portfolio at 3.32% vs. 1.74% in Q4 2019; and

• ACL to NPLs at 119.7% vs. 90.5% in Q4 2019.

• Common Equity Tier 1 ratio of 15.79%, Common Equity per Share of $64.08 and Tangible Book Value per Share of $56.17 at March 31, 2020.

SAN JUAN, Puerto Rico — (BUSINESS WIRE) — Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $34.3 million for the quarter ended March 31, 2020, compared to net income of $166.8 million for the quarter ended December 31, 2019.

Ignacio Alvarez, President and Chief Executive Officer, said: “TheCOVID-19 global pandemic has exposed the fragility of our economic and social systems and the need for greater collaboration between all sectors. I am hopeful that it will also reveal what we can accomplish when we come together in pursuit of a common goal. At Popular, the well-being of our customers, employees and communities is our priority. We have acted decisively to help our employees stay safe while we continue to offer essential banking services to our customers and communities. We have submitted more than $1.2 billion in loans, representing more than 15,000 small and medium size businesses, under the SBA’s Payroll Protection Program. To date, we have received confirmation of SBA approval of $819 million of those submissions. We have also pledged more than $1 million dollars in support ofCOVID-19 emergency relief to non-profit organizations and health providers. I am deeply grateful to our colleagues for the efforts, commitment, and bravery exhibited under very difficult circumstances.

Our net income for the quarter was significantly lower than the fourth quarter of 2019 and the same period last year. The primary driver of this decrease was a large increase in our provision expense, reflecting the newly adopted CECL methodology and the most recent post-COVID macroeconomic forecast for Puerto Rico and the U.S. Our operating results for the first quarter were solid considering the extent of the economic deceleration experienced during the second half of March. Net interest income, net interest margin as well as our net charge off ratio improved compared to the fourth quarter. We ended the quarter with a CET1 capital ratio of 15.8%

During our 126 years, we have often operated in highly uncertain and volatile economic periods and have managed through them successfully. Almost three years ago we faced the impact of Hurricane Maria, which caused extensive damage and left Puerto Rico and the Virgin Islands without power, water and telecommunications, in some cases for months. We responded decisively, adapted to change and delivered positive results even under difficult conditions. While each situation has unique challenges, we have the team, the experience and the financial resources to do so again.

Despite the uncertainty we are all facing as we fight this pandemic, we are confident that, with our strong liquidity position and capital levels, we are well prepared to successfully manage through the current challenges.”

Earnings Highlights    

(Unaudited)	Quarters ended
(Dollars in thousands, except per share information)	31-Mar-20		31-Dec-19		31-Mar-19
Net interest income	$	473,095	$	467,424	$	470,963
Provision for credit losses - loan portfolios		188,995		47,224		41,825
Provision for credit losses - investment securities		736		—		—
Net interest income after provision for credit losses		283,364		420,200		429,138
Othernon-interest income		126,643		152,415		136,430
Operating expenses		372,608		390,572		347,420
Income before income tax		37,399		182,043		218,148
Income tax expense		3,097		15,258		50,223
Net income	$	34,302	$	166,785	$	167,925
Net income applicable to common stock	$	33,632	$	165,854	$	166,994
Net income per common share - Basic	$	0.37	$	1.72	$	1.69
Net income per common share - Diluted	$	0.37	$	1.72	$	1.69

Significant events

Impact of the adoption of the current expected credit loss model (“CECL”)

The Corporation adopted the new CECL accounting standard effective on January 1, 2020. As a result of the adoption of the CECL model, the Corporation recorded a net increase in its allowance for credit losses related to its loan portfolio, unfunded commitments and credit recourse guarantees amounting to $306 million. The Corporation also recognized an allowance for credit losses of approximately $13 million related to itsheld-to-maturity debt securities portfolio. The adjustments to reflect the increase in the allowance for credit losses was recorded as a decrease to the opening balance of retained earnings at January 1, 2020, net of deferred tax asset, except for approximately $17 million related to purchased credit impaired (“PCI”) loans previously accounted under ASC Subtopic310-30, which resulted in a reclassification between certain contra loan balance accounts to the allowance for credit losses.

As part of the adoption of CECL, the Corporation made the election to break the existing pools of PCI loans, which were excluded fromnon-performing status, in accordance with the applicable accounting guidance. Upon being measured at the individual loan level, these loans are no longer excluded fromnon-performing status, resulting in an increase of $278 million in NPLs as of January 1, 2020. This increase included $144 million in loans currently over 90 days past due and $134 million in loans that are not delinquent in their payment terms but that are reported asnon-performing due to other credit quality considerations.

The Corporation will avail itself of the option to phase in over a period of three years, beginning on January 1, 2022, theday-one effects on regulatory capital arising from the adoption of CECL.

Coronavirus(COVID-19) pandemic

TheCOVID-19 pandemic has negatively impacted the global economy, created significant volatility and disruption in financial markets, and increased unemployment levels. In Puerto Rico, in March 2020, the government declared a state of emergency as a result of the pandemic and has ordered a temporary closure of all businesses through at least early May, with the exception of certain businesses that provide essential services, including banking and financial institutions such as Banco Popular de Puerto Rico (“BPPR”). While banking and financial institutions are exempted from the closure order in Puerto Rico, that exemption is limited to basic banking services, therefore many activities, including mortgage loan and auto loan or lease originations have been suspended since March 16, 2020. Furthermore, the Puerto Rico government has mandated its citizens to remain sheltered in place and imposed a mandatory curfew, significantly limiting the activities that may be done in public. Most business establishments, including retailers and wholesalers, shopping centers and hotels are partially operating or remain closed, causing a significant disruption to the island’s economic activity. As a result of restrictions onnon-essential business activities imposed on some of our third-party service providers in Puerto Rico, certain of the Corporation’s lines of business on the island, including mortgage originations, have been temporarily suspended and may remain suspended until at least May.

The government of the U.S.V.I. and state governments in the U.S. mainland, including New York, New Jersey and Florida, where Popular Bank (“Popular U.S.” or “PB”) has branches, have also declared states of emergency as a result of the pandemic, ordered the temporary closure of allnon-essential businesses and its citizens to remain sheltered in place and observe social distancing, causing a similar significant economic disruption.

In response to the pandemic, the Corporation has taken measures to ensure the continuity of our operations and the safety of our employees and customers through this pandemic, while providing financial relief to customers through programs such as payment moratoriums, suspensions of foreclosures and other collection activity, as well as waivers of certain fees and service charges, including late-payment charges and ATM transaction fees.

The following is a summary of the main steps the Corporation has undertaken in response to theCOVID-19 outbreak.

Employees •  Broadened remote working capabilities through the use of technology •  Executed actions to support employees working in our offices, including sanitation measures, social distance, staggered shifts and the distribution of masks and gloves •  Special compensation incentives to front-line employees (branches and call centers) •  Expanded health insurance benefits, including freeCOVID-19 tests and the availability of telephone consultations to employees and covered family members

Branch Operations •  PR and USVI - Branches are operating under a reduced schedule and are rotating personnel to reduce their health exposure. In PR approximately60%-70% of BPPR’s branches are in operation, many primarily by drive-thru. In USVI, approximately 70% of BPPR’s branches are in operation. •  Mainland U.S. operations - Nearly all branches are operating on daily alternating schedules.

Customers •  Published dedicated phoneline and online tool to request financial assistance for customers impacted byCOVID-19 •  Offering payment moratoriums for eligible customers in mortgage, consumer loans, credit cards, auto loans and leases and certain commercial credit facilities, subject to certain terms and conditions •  Suspended residential property foreclosures and evictions, as well as most other collection activity •  Waived ATM fees and early withdrawal penalties on Certificates of Deposits •  Offering expedited lines of credit of up to $100,000 for BPPR commercial clients with favorable terms •  Mobilized to offer Small Business Administration loans under the Paycheck Protection Program (“PPP”) to affected businesses; submitted more than $1.2 billion of PPP loans.

Community •  Established a fund with an initial contribution of $1M to support efforts in three primary areas: a) medical equipment and healthcare projects that combatCOVID-19; b) entrepreneurs, small and medium businesses, providing financial advice and business continuity support; and c)non-profit organizations to ensure the continuity of their services.

The results for the first quarter of 2020 reflect the impact during the month of March 2020 of the business disruption and relief measures described above. The provision for credit losses for the loans and investments portfolios, which reflects the adoption of CECL, was $189.7 million, including $134 million in incremental reserves due to the expected economic impact ofCOVID-19. The Corporation’s revenue streams were impacted in the form of reduced consumer transaction activity, the waiver of certain late fees and service charges, including ATM transaction fees, as well as the suspension in mortgage origination and related securitization and loan sale activities. These revenue captions resulted in a decrease in income of approximately $6.8 million when compared to the previous quarter, reflecting the impact of theCOVID-19 disruptions, mainly over the last two weeks of March. Furthermore, the Corporation has incurred in additional expenses related to front-line employee bonuses, the enabling of remote access for employees to work from home, the expansion of employee benefits, as well as the impact of specific measures to prevent the spread of the disease and efforts related to customer relief programs, among other related expenses.

The extent to which theCOVID-19 pandemic further impacts our business, results of operations and financial condition (including our regulatory capital, liquidity ratios and realizability of deferred tax assets), as well as the operations of our clients, customers, service providers and suppliers, will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response thereto. To the extent that theCOVID-19 pandemic results in the continued closure of businesses and a reduction in economic activity, the Corporation will be further impacted in the form of reduced revenues, additional expenses and higher credit losses.

Common Stock Repurchase Plan

On January 30, 2020, the Corporation entered into an accelerated share repurchase transaction (“ASR”) of $500 million with respect to its common stock, which was accounted for as a treasury stock transaction. As a result of the receipt of the initial 7,055,919 shares under the ASR, the Corporation recognized in shareholders’ equity approximately $400 million in treasury stock and $100 million as a reduction of capital surplus. The ASR provided that the final number of shares delivered at settlement would be based on the average daily volume weighted average price (“VWAP”) of the Corporation’s common stock, net of a discount, during the term of the ASR.

As a result of the recent decrease in the trading price of the Corporation’s common stock during theCOVID-19 pandemic, on March 19, 2020, the dealer counterparty to the ASR exercised its right under the ASR Agreement to terminate the ASR as a result of the trading price of the Corporation’s common stock falling below a specified level, allowing the dealer counterparty to terminate the ASR. The agreement executed in connection with such termination (the “Termination Agreement”) provides for the acceleration of the final settlement of the ASR, which was originally expected to occur during the fourth quarter of 2020.

Under the settlement resulting from the Termination Agreement, the Corporation will receive a further number of shares of common stock, equivalent to approximately $167 million. As of March 31, 2020, the Corporation had received 642,400 additional shares after the early termination of the ASR. In connection with such receipt, the Corporation recorded approximately $23 million as treasury stock and recognized that amount as an increase in capital surplus.

Goodwill impairment evaluation

Due to the effects of the current and projected interest rate environment and the effects of the COVID-19 pandemic on the valuation of the Corporation and its subsidiaries, the Corporation deemed these factors as an interim triggering event and is currently in the process of evaluating its reporting units’ goodwill for impairment. The Corporation expects to complete its evaluation prior to the submission of its Form 10Q to be filed with the Securities and Exchange Commission. An impairment of goodwill would result in a non-cash expense, net of tax impact. A charge to earnings related to a goodwill impairment would not impact regulatory capital calculations.

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 for the quarters ended March 31, 2020 as compared with previous quarters, segregated by major categories of interest earning assets and interest-bearing liabilities.

Interest earning assets include investment securities and loans that are exempt from income tax, principally in Puerto Rico. The main sources oftax-exempt interest income are certain investments in obligations of the U.S. Government, its agencies and sponsored entities, and certain obligations of the Commonwealth of Puerto Rico and/or its agencies and municipalities and assets held by the Corporation’s international banking entities. To facilitate the comparison of all interest related to these assets, the interest income has been converted to a taxable equivalent basis, using the applicable statutory income tax rates for each period. Net interest income on a taxable equivalent basis is anon-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable andtax-exempt sources.

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

Net interest income

Net interest income for the quarter ended March 31, 2020 was $473.1 million compared to $467.4 million in the previous quarter, an increase of $5.7 million despite the decrease in market rates during the first quarter of 2020, during which the federal funds rate was decreased to a0-25 basis points range. Net interest income, on a taxable equivalent basis, for the first quarter of 2020 was $521.4 million, an increase of $8.1 million when compared to $513.3 million in the fourth quarter of 2019. The increase of $2.4 million in the taxable equivalent adjustment quarter over quarter is directly related to a higher volume oftax-exempt investments in BPPR.

Net interest margin increased by 11 basis points to 3.94% in the first quarter of 2020, compared to 3.83% in the previous quarter. On a taxable equivalent basis, net interest margin was 4.34% compared to 4.20% in the fourth quarter of 2019, an increase of 14 basis points. The main variances in net interest income on a taxable equivalent basis were:

• Higher interest income from loans by $3.6 million mainly driven by an increase in average volume of $324 million resulting from the acquisition of a $74 million credit card portfolio at the end of 2019, the growth of the auto and lease portfolio and commercial loans in BPPR and growth in construction loans and mortgage loans in PB; and

• lower interest expense on deposits by $14.7 million due to lower interest cost by 15 basis points resulting from the decrease in deposit rates mainly in P.R. Government deposits and PB deposits, and a lower average balance of $247 million.

Partially offset by:

• Lower income from money market, trading and investments by $10.6 million due to lower average volume by $721 million as a result of the increase in loan volume and the decrease in deposits, as mentioned above, and lower yield by 8 basis points.

BPPR’s net interest income amounted to $409.6 million for the quarter ended March 31, 2020, compared to $402.9 million in the previous quarter. The net interest margin for the first quarter 2020 was 4.22%, an increase of 14 basis points when compared to 4.08% for the previous quarter. The increase in net interest margin was impacted by a higher average volume of loans, which carry a higher yield than money market investments or investment securities and a decrease in the cost of interest-bearing government deposits. Partially offsetting these positive variances was a lower yield on money market, trading and investment securities driven by lower market rates, as mentioned above. BPPR’s earning assets’ yield was 4.64%, compared to 4.62% in the previous quarter, while the cost of interest-bearing deposits was 0.56%, or 17 basis points lower than the 0.73% reported in the previous quarter, mostly driven by a lower cost of P.R. Government deposits. Total cost of deposits for the quarter was 0.44%, compared to 0.57% reported in the fourth quarter of 2019, a decrease of 13 basis points.

Net interest income for Popular U.S. was $72.7 million for the quarter ended March 31, 2020, compared to $73.6 million during the previous quarter. The decrease of $0.9 million in net interest income was primarily due to a lower yield on loans by 12 basis points, mainly commercial and construction loans, partially offset by a lower cost of deposits by 11 basis points mainly associated to the decrease in market rates and a change in deposit mix. Net interest margin for the quarter was 3.21%, an increase of 3 basis points when compared to 3.18% in the previous quarter driven by a decrease in money market investments and investment securities and an increase in loans, coupled with a decrease in deposits. Earning assets yielded 4.37%, compared to 4.42% in the previous quarter, while the cost of interest-bearing deposits was 1.44%, compared to 1.55% in the previous quarter. Total cost of deposits for the quarter was 1.25% compared to 1.34% reported in the fourth quarter.

Non-interest income

Non-interest income decreased by $25.8 million to $126.6 million for the quarter ended March 31, 2020, compared to $152.4 million for the quarter ended December 31, 2019. The decrease innon-interest income was primarily driven by:

• Lower other services by $10.8 million, mainly in the BPPR segment, due to lower debit and credit card fees by $5.0 million due to lower transactional volumes resulting from business disruptions during the last two weeks of March related to theCOVID-19 pandemic which also resulted in the elimination of service charges and late fees; and lower insurance fees principally resulting from $4.2 million in contingent insurance commissions recognized during the fourth quarter;

• lower income from mortgage banking activities by $7.0 million mainly due to higher fair value adjustments on mortgage servicing rights (“MSRs”) by $3.7 million due to an increase in estimated prepayments driven by declines in market rates, coupled with higher trading account losses by $2.6 million;

• a net unrealized loss on equity securities of $2.7 million related to employee deferred compensation plans that have an offsetting expense reduction in personnel related expenses; and

• an unfavorable variance in adjustments to indemnity reserves on previously sold loans of $6.1 million mainly due to higher provision related to loans previously sold with credit recourse.

Refer to Table B for further details.

Operating expenses

Operating expenses for the first quarter of 2020 totaled $372.6 million, a decrease of $18.0 million when compared to the fourth quarter of 2019. The decrease in operating expenses was driven primarily by:

• Lower personnel cost by $11.5 million due to lower incentives compensation by $15.4 million mainly related to annual incentives tied to the Corporation’s financial performance, including the Corporation’s Profit-Sharing plan, recognized during the fourth quarter of 2019, partially offset by a special incentive to front-line employees due toCOVID-19 amounting to $3.4 million;

• lower professional fees by $2.1 million mainly due to lower advisory expenses; and

• lower business promotion by $9.0 million due to lower advertising, sponsorship and promotions expenses by $4.3 million, which were higher in the previous quarter due to seasonal initiatives and lower customer reward program expense by $3.2 million due to lower customer transaction activity.

These decreases were partially offset by:

• Higher OREO expenses by $1.9 million due to lower gain on sale of properties and higher write-downs on commercial, construction and mortgage properties; and

• higher other operating expenses by $2.1 million due to higher operational losses by $5.5 million, including legal contingency reserves, partially offset by lower pension plan cost by $3.3 million due to annual changes in actuarial assumptions.

Full-time equivalent employees were 8,551 as of March 31, 2020, compared to 8,560 as of December 31, 2019.

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

Income taxes

For the quarter ended March 31, 2020, the Corporation recorded an income tax expense of $3.1 million, compared to $15.3 million for the previous quarter. The income tax expense for the first quarter of 2020 was lower than the previous quarter due to lower income before taxes resulting primarily from a higher provision for credit losses due to the implementation of CECL and the impact of the COVID-19 pandemic. During the fourth quarter of 2019, the Corporation recorded a tax benefit of approximately $18 million related to the revision of the amount of exempt income earned in prior years, which resulted in the amendment of income tax returns for BPPR for the years 2015 to 2017. The effective tax rate (“ETR”) for the first quarter of 2020 was of 8%.

The ETR of the Corporation is impacted by the composition and source of its taxable income. For the year 2020, the Corporation currently expects its consolidated effective tax rate to be within a range of 14% to 18%.

Credit Quality

As discussed above, the Corporation adopted the CECL accounting standard effective January 1, 2020. This framework requires management to estimate credit losses over the full remaining expected life of the loan using economic forecasts over a reasonable and supportable period, and historical information thereafter.

Excluding the impact of the adoption of CECL as well as theCOVID-19 pandemic, the Corporation exhibited stable credit quality metrics throughout the first quarter of 2020. Significant changes in certain metrics reflect the adoption of the CECL methodology, as well as the impact of the unprecedented events that have unfolded as a result of theCOVID-19 pandemic. The allowance for credit losses as of the first quarter of 2020 increased considerably due to the actual and expected impact ofCOVID-19 pandemic on the economic environment and the CECL adoption. The effects of theCOVID-19 pandemic continue to evolve and the full extent of the economic disruption is uncertain. Management believes that the improvement over the last few years in the risk profile of the Corporation’s loan portfolios positions Popular to operate under challenging environments. Management will continue to carefully review the exposure of the portfolios toCOVID-19 related risks, as well as changes in the economic outlook and their effect on credit quality.

To support its customers adversely affected by theCOVID-19 pandemic, Popular is offering payment moratoriums to eligible customers in mortgage, consumer loans, credit cards, auto loans and leases and certain commercial credit facilities, subject to certain terms and conditions.

The following presents credit quality results for the first quarter of 2020:

• At March 31, 2020, totalnon-performing loansheld-in-portfolio increased by $240.8 million from December 31, 2019, mainly driven by loans previously accounted for as purchased credit impaired. Following existing accounting guidance, PCI loans were excluded fromnon-performing status due to the estimation of cash flows at the pool level. Under CECL, these loans are accounted for on an individual loan basis under the purchased credit deteriorated loans (“PCD”) accounting methodology and are no longer excluded fromnon-performing status. BPPR’s NPLs increased by $236.5 million, mostly related to PCI loans transition impact of $259.7 million. Excluding this impact, NPLs decreased by $23.2 million, mostly related to lower mortgage NPLs. Popular Bank’s NPLs increased by $4.4 million, also driven by the PCI transition of the taxi medallion portfolio. At March 31, 2020, the ratio of NPLs to total loansheld-in-portfolio was 2.8% compared to 1.9% in the fourth quarter of 2019.

• Excluding the PCI to PCD transition impact mentioned above, inflows of NPLsheld-in-portfolio, excluding consumer loans, increased by $9.9 million quarter-over-quarter. The P.R. mortgage inflows increased by $20.6 million sequentially, mainly due to repurchased PCD loans. This increase was offset by a decrease of $9.7 million in the P.R. commercial inflows. The U.S. inflows remained essentially flat quarter-over-quarter.

• NCOs decreased by $19.4 million from the fourth quarter of 2019, primarily driven by a decrease in PB commercial NCOs of $19.1 million mostly related to charge-offs of taxi medallion loans taken during the fourth quarter of 2019. BPPR NCOs remained flat quarter-over-quarter. The Corporation’s ratio of annualized net charge-offs to average loansheld-in-portfolio was 0.91%, compared to 1.21% in the fourth quarter of 2019. Refer to Table M for further information on net charge-offs and related ratios.

• At March 31, 2020, the allowance for credit losses increased by $442.0 million from the fourth quarter of 2019 to $919.7 million; an increase of 93%. The CECL adoption impact resulted in an increase of $315.1 million (“Day 1 impact”) in the allowance for credit losses related to loans. Approximately, $298.1 million of this increase was reflected as a reduction of the opening balance of retained earnings, net of income taxes. The remaining $17.0 million, related to PCD loans previously accounted for under the Accounting Standards Codification (“ASC”) Subtopic310-30, were reclassified from certain contra loan balance accounts of that portfolio. The Day 1 impact was mainly driven by the consumer and mortgage portfolios within

the BPPR segment. Excluding such Day 1 impact, the ACL increase of $126.9 million was mainly attributable to the significant change in macroeconomic conditions from theCOVID-19 pandemic. The ratio of the allowance for credit losses to loansheld-in-portfolio was 3.32% in the first quarter of 2020, compared to 1.74% in the previous quarter. The ratio of the allowance for credit losses to NPLsheld-in-portfolio stood at 119.7% compared to 90.5% in the previous quarter.

• The provision for credit losses for the first quarter of 2020 increased by $141.8 million from the prior quarter. The provision for the BPPR and PB segments increased by $72.2 million and $69.6 million, respectively. The increase in provision was mainly driven by theCOVID-19 impact on the macroeconomic scenarios. The provision to net charge-offs ratio was 302.3% in the first quarter of 2020, compared to 57.7% in the previous quarter.

Non-Performing Assets    

(Unaudited)
(In thousands)	31-Mar-20			31-Dec-19			31-Mar-19
Totalnon-performing loansheld-in-portfolio	$	768,675		$	527,841		$	586,202
Non-performing loansheld-for-sale		10,679			—			—
Other real estate owned (“OREO”)		123,922			122,072			125,478
Totalnon-performing assets	$	903,276		$	649,913		$	711,680
Net charge-offs for the quarter	$	62,523		$	81,881		$	60,545
Ratios:
Loansheld-in-portfolio	$	27,662,272		$	27,406,873		$	26,647,708
Non-performing loansheld-in-portfolio to loansheld-in-portfolio		2.78	%		1.93	%		2.20	%
Allowance for credit losses to loansheld-in-portfolio		3.32			1.74			2.07
Allowance for credit losses tonon-performing loans, excluding loansheld-for-sale		119.65			90.50			93.93

Refer to Table K for additional information.

Provision for Credit Losses - Loan Portfolios    

(Unaudited)	Quarters ended
(In thousands)	31-Mar-20		31-Dec-19		31-Mar-19
Provision for credit losses:
BPPR	$	113,004	$	40,843	$	31,454
Popular U.S.		75,991		6,381		10,371
Total provision for credit losses	$	188,995	$	47,224	$	41,825

Credit Quality by Segment    

(Unaudited)
(In thousands)	Quarters ended
BPPR	31-Mar-20			31-Dec-19			31-Mar-19
Provision for credit losses - loan portfolios	$	113,004		$	40,843		$	31,454
Net charge-offs		59,517			58,962			54,229
Totalnon-performing loansheld-in-portfolio		735,683			499,200			544,992
Allowance / loansheld-in-portfolio		3.74	%		2.14	%		2.42	%
	Quarters ended
Popular U.S.	31-Mar-20			31-Dec-19			31-Mar-19
Provision for credit losses - loan portfolios	$	75,991		$	6,381		$	10,371
Net charge-offs		3,006			22,919			6,316
Totalnon-performing loansheld-in-portfolio		32,992			28,641			41,210
Allowance / loansheld-in-portfolio		2.19	%		0.62	%		1.00	%

Financial Condition Highlights    

(Unaudited)
(In thousands)	31-Mar-20		31-Dec-19		31-Mar-19
Cash and money market investments	$	6,387,267	$	3,650,597	$	5,190,692
Investment securities		16,114,167		17,946,343		13,839,874
Loans		27,662,272		27,406,873		26,647,708
Total assets		52,803,639		52,115,324		48,680,607
Deposits		44,797,176		43,758,606		40,879,838
Borrowings		1,336,897		1,294,986		1,377,401
Total liabilities		47,134,034		46,098,545		43,240,547
Stockholders’ equity		5,669,605		6,016,779		5,440,060

Total assets increased by $0.7 billion from the fourth quarter of 2019, driven by:

• An increase of $2.7 billion in cash and money market investments, mainly due to an increase in deposits and lower investment portfolio balances.

Partially offset by:

• A decrease of $1.8 billion in debt securitiesavailable-for-sale mainly due to maturities and paydowns of mortgage-backed securities, partially offset by purchases of U.S. Treasury securities and unrealized gains on the portfolio by $381.8 million mainly driven by the declines in market rates; and

• An increase of the Allowance for credit losses of $442 million, which includes the impact of the adoption of CECL and reserves resulting from the deterioration in the economic outlook as a result of theCOVID-19 pandemic.

Total liabilities increase by $1.0 billion from the fourth quarter of 2019, mainly due to:

• An increase of $1.0 billion in deposits, mainly from an increase in time deposits from trust accounts and saving accounts, partially offset by a decrease in Puerto Rico public sector deposits.

Stockholders’ equity decreased by approximately $347.3 million from the fourth quarter of 2019, principally due to the impact of the $500 million accelerated share repurchase transaction, the cumulative effect of $205.8 million related to the adoption of CECL, declared dividends of $35.5 million on common stock, the redemption of $28 million in Series B Preferred Stock and $0.7 million in dividends on preferred stock, partially offset by the net income for the quarter of $34.3 million and an increase of unrealized gains on debt securitiesavailable-for-sale by $381.8 million.

Common equitytier-1 ratio (“CET1”), common equity per share and tangible book value per share were 15.79%, $64.08 and $56.17, respectively, at March 31, 2020, compared to 17.76%, $62.42 and $55.10 at December 31, 2019. Refer to Table A for capital ratios.

Increase in common stock dividends

On January 9, 2020, the Corporation announced an increase in its quarterly common stock dividend from $0.30 per share to $0.40 per share, payable commencing in the second quarter of 2020, subject to the approval of the Corporation’s Board of Directors. On February 28, 2020, the Corporation’s Board of Directors approved the first quarterly cash dividend of $0.40 per share on its outstanding common stock, which was paid on April 1, 2020 to shareholders of record at the close of business on March 19, 2020.

Redemption of Series B Preferred Stock

On February 24, 2020, the Corporation redeemed all outstanding shares of its 8.25%Non-Cumulative Monthly Income Preferred Stock, Series B (“Series B Preferred Stock”). The Series B Preferred Stock was redeemed at the redemption price of $25.00 per share, plus $0.1375 in accrued and unpaid dividends on each share, for a total payment per share in the amount of $25.1375 and a total aggregate payment of $28.2 million.

Cautionary Note Regarding Forward-Looking Statements

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

More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form10-K for the year ended December 31, 2019, and in our Form 10Q for the quarter ended March 31, 2020 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, April 30, 2020 at 11:30 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 thedial-in telephone number1-866-235-1201 or1-412-902-4127. 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, May 28, 2020. The replaydial-in is:1-877-344-7529 or1-412-317-0088. The replay passcode is 10143155.

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

Popular, Inc.

Financial Supplement to First Quarter 2020 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 & Other Service Fees

Table G - Loans and Deposits

Table H - Loan Delinquency - PUERTO RICO

Table I - Loan Delinquency - POPULAR U.S.

Table J - Loan Delinquency - CONSOLIDATED

Table K -Non-Performing Assets

Table L - Activity inNon-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 First Quarter 2020 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

	Quarters ended
	31-Mar-20			31-Dec-19			31-Mar-19
Basic EPS	$	0.37		$	1.72		$	1.69
Diluted EPS	$	0.37		$	1.72		$	1.69
Average common shares outstanding		90,788,557			96,183,126			98,581,743
Average common shares outstanding - assuming dilution		90,892,961			96,330,785			98,758,898
Common shares outstanding at end of period		88,125,974			95,589,629			96,629,891
Market value per common share	$	35.00		$	58.75		$	52.13
Market capitalization - (In millions)	$	3,084		$	5,616		$	5,037
Return on average assets		0.27	%		1.27	%		1.40	%
Return on average common equity		2.50	%		11.27	%		12.17	%
Net interest margin(non-taxable equivalent basis)		3.94	%		3.83	%		4.20	%
Net interest margin (taxable equivalent basis)-non-GAAP		4.34	%		4.20	%		4.56	%
Common equity per share	$	64.08		$	62.42		$	55.78
Tangible common book value per common share(non-GAAP) [1]	$	56.17		$	55.10		$	48.58
Tangible common equity to tangible assets(non-GAAP) [1]		9.50	%		10.24	%		9.78	%
Return on average tangible common equity [1]		2.87	%		12.79	%		13.91	%
Tier 1 capital		15.79	%		17.76	%		16.39	%
Total capital		18.36	%		20.31	%		19.00	%
Tier 1 leverage		8.94	%		10.03	%		9.57	%
Common Equity Tier 1 capital		15.79	%		17.76	%		16.39	%

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

POPULAR, INC.

Financial Supplement to First Quarter 2020 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

	Quarters ended					Variance			Quarter ended			Variance
						Q1 2020						Q1 2020
(In thousands, except per share information)	31-Mar-20			31-Dec-19		vs. Q4 2019			31-Mar-19			vs. Q1 2019
Interest income:
Loans	$	450,446		$	447,736	$	2,710		$	447,713		$	2,733
Money market investments		12,000			18,950		(6,950	)		29,220			(17,220	)
Investment securities		87,912			93,183		(5,271	)		81,036			6,876
Total interest income		550,358			559,869		(9,511	)		557,969			(7,611	)
Interest expense:
Deposits		62,101			76,823		(14,722	)		70,826			(8,725	)
Short-term borrowings		1,048			1,272		(224	)		1,600			(552	)
Long-term debt		14,114			14,350		(236	)		14,580			(466	)
Total interest expense		77,263			92,445		(15,182	)		87,006			(9,743	)
Net interest income		473,095			467,424		5,671			470,963			2,132
Provision for credit losses - loan portfolios		188,995			47,224		141,771			41,825			147,170
Provision for credit losses - investment securities		736			—		736			—			736
Net interest income after provision for credit losses		283,364			420,200		(136,836	)		429,138			(145,774	)
Service charges on deposit accounts		41,659			41,656		3			38,691			2,968
Other service fees		64,773			75,559		(10,786	)		64,307			466
Mortgage banking activities		6,420			13,448		(7,028	)		9,926			(3,506	)
Net (loss) gain, including impairment, on equity securities		(2,728	)		332		(3,060	)		1,433			(4,161	)
Net profit on trading account debt securities		491			17		474			260			231
Net gain on sale of loans, including valuation adjustments on loansheld-for-sale		957			—		957			—			957
Adjustments (expense) to indemnity reserves on loans sold		(4,793	)		1,321		(6,114	)		(93	)		(4,700	)
Other operating income		19,864			20,082		(218	)		21,906			(2,042	)
Totalnon-interest income		126,643			152,415		(25,772	)		136,430			(9,787	)
Operating expenses:
Personnel costs
Salaries		92,256			91,161		1,095			84,450			7,806
Commissions, incentives and other bonuses		25,258			27,007		(1,749	)		25,761			(503	)
Pension, postretirement and medical insurance		9,638			11,281		(1,643	)		9,761			(123	)
Other personnel costs, including payroll taxes		19,679			28,878		(9,199	)		23,145			(3,466	)
Total personnel costs		146,831			158,327		(11,496	)		143,117			3,714
Net occupancy expenses		25,158			24,908		250			23,537			1,621
Equipment expenses		21,605			21,591		14			19,705			1,900
Other taxes		13,681			13,386		295			11,662			2,019
Professional fees
Collections, appraisals and other credit related fees		3,881			3,704		177			3,724			157
Programming, processing and other technology services		62,819			63,029		(210	)		60,178			2,641
Legal fees, excluding collections		2,986			2,527		459			3,489			(503	)
Other professional fees		31,385			33,876		(2,491	)		20,075			11,310
Total professional fees		101,071			103,136		(2,065	)		87,466			13,605
Communications		5,954			5,765		189			5,849			105
Business promotion		14,197			23,214		(9,017	)		14,674			(477	)
FDIC deposit insurance		5,080			5,172		(92	)		4,806			274
Other real estate owned (OREO) expense		2,479			569		1,910			2,677			(198	)
Credit and debit card processing, volume, interchange and other expenses		10,282			10,486		(204	)		8,223			2,059
Other operating expenses
Operational losses		8,374			2,916		5,458			4,888			3,486
All other		15,423			18,814		(3,391	)		18,504			(3,081	)
Total other operating expenses		23,797			21,730		2,067			23,392			405
Amortization of intangibles		2,473			2,288		185			2,312			161
Total operating expenses		372,608			390,572		(17,964	)		347,420			25,188
Income before income tax		37,399			182,043		(144,644	)		218,148			(180,749	)
Income tax expense		3,097			15,258		(12,161	)		50,223			(47,126	)
Net income	$	34,302		$	166,785	$	(132,483	)	$	167,925		$	(133,623	)
Net income applicable to common stock	$	33,632		$	165,854	$	(132,222	)	$	166,994		$	(133,362	)
Net income per common share - basic	$	0.37		$	1.72	$	(1.35	)	$	1.69		$	(1.32	)
Net income per common share - diluted	$	0.37		$	1.72	$	(1.35	)	$	1.69		$	(1.32	)
Dividends Declared per Common Share	$	0.40		$	0.30	$	0.10		$	0.30		$	0.10

Popular, Inc.

Financial Supplement to First Quarter 2020 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

										Variance
										Q1 2020 vs.
(In thousands)	31-Mar-20			31-Dec-19			31-Mar-19			Q4 2019
Assets:
Cash and due from banks	$	445,551		$	388,311		$	376,558		$	57,240
Money market investments		5,941,716			3,262,286			4,814,134			2,679,430
Trading account debt securities, at fair value		42,545			40,321			39,217			2,224
Debt securitiesavailable-for-sale, at fair value		15,813,301			17,648,473			13,542,695			(1,835,172	)
Debt securitiesheld-to-maturity, at amortized cost (net of allowance for credit losses of $13,390)		81,873			97,662			99,455			(15,789	)
Equity securities		163,058			159,887			158,507			3,171
Loansheld-for-sale, at lower of cost or fair value		87,855			59,203			43,985			28,652
Loansheld-in-portfolio		27,847,840			27,587,856			26,808,287			259,984
Less: Unearned income		185,568			180,983			160,579			4,585
Allowance for credit losses		919,716			477,708			550,628			442,008
Total loansheld-in-portfolio, net		26,742,556			26,929,165			26,097,080			(186,609	)
Premises and equipment, net		552,007			556,650			557,517			(4,643	)
Other real estate		123,922			122,072			125,478			1,850
Accrued income receivable		176,078			180,871			162,797			(4,793	)
Mortgage servicing assets, at fair value		147,311			150,906			167,813			(3,595	)
Other assets		1,788,437			1,819,615			1,799,728			(31,178	)
Goodwill		671,122			671,122			671,122			—
Other intangible assets		26,307			28,780			24,521			(2,473	)
Total assets	$	52,803,639		$	52,115,324		$	48,680,607		$	688,315
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing	$	9,396,449		$	9,160,173		$	9,046,104		$	236,276
Interest bearing		35,400,727			34,598,433			31,833,734			802,294
Total deposits		44,797,176			43,758,606			40,879,838			1,038,570
Assets sold under agreements to repurchase		178,766			193,378			200,871			(14,612	)
Other short-term borrowings		100,000			—			42			100,000
Notes payable		1,058,131			1,101,608			1,176,488			(43,477	)
Other liabilities		999,961			1,044,953			983,308			(44,992	)
Total liabilities		47,134,034			46,098,545			43,240,547			1,035,489
Stockholders’ equity:
Preferred stock		22,143			50,160			50,160			(28,017	)
Common stock		1,044			1,044			1,043			—
Surplus		4,366,300			4,447,412			4,313,040			(81,112	)
Retained earnings		1,940,170			2,147,915			1,794,644			(207,745	)
Treasury stock		(870,675	)		(459,814	)		(394,848	)		(410,861	)
Accumulated other comprehensive income (loss), net of tax		210,623			(169,938	)		(323,979	)		380,561
Total stockholders’ equity		5,669,605			6,016,779			5,440,060			(347,174	)
Total liabilities and stockholders’ equity	$	52,803,639		$	52,115,324		$	48,680,607		$	688,315

Popular, Inc.

Financial Supplement to First Quarter 2020 Earnings Release

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

(Unaudited)

	Quarters ended																								Variance
	31-Mar-20								31-Dec-19								31-Mar-19								Q1 2020 vs. Q4 2019									Q1 2020 vs. Q1 2019
($ 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	$	20,744		$	135.7		2.63	%	$	21,465		$	146.3		2.71	%	$	18,773		$	141.3		3.04	%	($	721	)	($	10.6	)		(0.08	)%	$	1,971		($	5.6	)		(0.41	)%
Loans:
Commercial		12,342			183.2		5.97			12,276			181.3		5.86			12,064			182.7		6.14			66			1.9			0.11			278			0.5			(0.17	)
Construction		861			13.2		6.16			781			12.3		6.27			807			13.6		6.85			80			0.9			(0.11	)		54			(0.4	)		(0.69	)
Mortgage		7,028			93.2		5.30			7,109			95.2		5.36			7,134			95.2		5.34			(81	)		(2.0	)		(0.06	)		(106	)		(2.0	)		(0.04	)
Consumer		3,110			89.4		11.56			2,942			86.2		11.62			2,814			82.8		11.93			168			3.2			(0.06	)		296			6.6			(0.37	)
Auto		2,992			67.7		9.10			2,935			68.7		9.28			2,729			67.6		10.04			57			(1.0	)		(0.18	)		263			0.1			(0.94	)
Lease financing		1,072			16.3		6.07			1,038			15.7		6.06			944			14.3		6.08			34			0.6			0.01			128			2.0			(0.01	)
Total loans		27,405			463.0		6.79			27,081			459.4		6.75			26,492			456.2		6.96			324			3.6			0.04			913			6.8			(0.17	)
Total interest earning assets	$	48,149		$	598.7		4.99	%	$	48,546		$	605.7		4.96	%	$	45,265		$	597.5		5.33	%	$	(397	)		(7.0	)		0.03	%	$	2,884		$	1.2			(0.34	)%
Allowance for credit losses - loan portfolio		(808	)							(515	)							(576	)							(293	)								(232	)
Allowance for credit losses - investment securities		(13	)							—								—								(13	)								(13	)
Othernon-interest earning assets		4,026								3,943								3,938								83									88
Total average assets	$	51,354							$	51,974							$	48,627							$	(620	)							$	2,727
Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market	$	16,229		$	25.3		0.63	%	$	16,312		$	36.0		0.88	%	$	14,051		$	33.8		0.97	%	$	(83	)	$	(10.7	)		(0.25	)%	$	2,178		$	(8.5	)		(0.34	)%
Savings		10,724			11.7		0.44			10,830			13.3		0.49			9,847			9.9		0.41			(106	)		(1.6	)		(0.05	)		877			1.8			0.03
Time deposits		7,691			25.1		1.31			7,749			27.5		1.41			7,676			27.1		1.43			(58	)		(2.4	)		(0.10	)		15			(2.0	)		(0.12	)
Total interest-bearing deposits		34,644			62.1		0.72			34,891			76.8		0.87			31,574			70.8		0.91			(247	)		(14.7	)		(0.15	)		3,070			(8.7	)		(0.19	)
Borrowings		1,327			15.2		4.59			1,345			15.6		4.65			1,469			16.2		4.44			(18	)		(0.4	)		(0.06	)		(142	)		(1.0	)		0.15
Total interest-bearing liabilities		35,971			77.3		0.86			36,236			92.4		1.01			33,043			87.0		1.07			(265	)		(15.1	)		(0.15	)		2,928			(9.7	)		(0.21	)
Net interest spread							4.13	%							3.95	%							4.26	%								0.18	%								(0.13	)%
Non-interest bearing deposits		9,005								8,894								8,953								111									52
Other liabilities		897								957								1,016								(60	)								(119	)
Stockholders’ equity		5,481								5,887								5,615								(406	)								(134	)
Total average liabilities and stockholders’ equity	$	51,354							$	51,974							$	48,627							$	(620	)							$	2,727
Net interest income / margin on a taxable equivalent basis(Non-GAAP)				$	521.4		4.34	%				$	513.3		4.20	%				$	510.5		4.56	%				$	8.1			0.14	%				$	10.9			(0.22	)%
Taxable equivalent adjustment					48.3								45.9								39.5								2.4									8.8
Net interest income / marginnon-taxable equivalent basis (GAAP)				$	473.1		3.94	%				$	467.4		3.83	%				$	471.0		4.20	%				$	5.7			0.11	%				$	2.1			(0.26	)%

Popular, Inc.

Financial Supplement to First Quarter 2020 Earnings Release

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

[THIS PAGE INTENTIONALLY LEFT BLANK]

Popular, Inc.    

Financial Supplement to First Quarter 2020 Earnings Release    

Table F - Mortgage Banking Activities and Other Service Fees    

(Unaudited)    

Mortgage Banking Activities    

	Quarters ended									Variance
(In thousands)	31-Mar-20			31-Dec-19			31-Mar-19			Q1 2020 vs.Q4 2019			Q1 2020 vs.Q1 2019
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees	$	10,968		$	11,552		$	11,687		$	(584	)	$	(719	)
Mortgage servicing rights fair value adjustments		(5,229	)		(1,577	)		(3,825	)		(3,652	)		(1,404	)
Total mortgage servicing fees, net of fair value adjustments		5,739			9,975			7,862			(4,236	)		(2,123	)
Net gain on sale of loans, including valuation on loansheld-for-sale		3,986			4,164			4,017			(178	)		(31	)
Trading account loss:
Unrealized losses on outstanding derivative positions		(1,695	)		—			—			(1,695	)		(1,695	)
Realized losses on closed derivative positions		(1,610	)		(691	)		(1,953	)		(919	)		343
Total trading account loss		(3,305	)		(691	)		(1,953	)		(2,614	)		(1,352	)
Total mortgage banking activities	$	6,420		$	13,448		$	9,926		$	(7,028	)	$	(3,506	)

Other Service Fees    

	Quarters ended						Variance
(In thousands)	31-Mar-20		31-Dec-19		31-Mar-19		Q1 2020 vs.Q4 2019			Q1 2020 vs.Q1 2019
Other service fees:
Debit card fees	$	10,237	$	12,219	$	11,170	$	(1,982	)	$	(933	)
Insurance fees		12,969		17,574		12,791		(4,605	)		178
Credit card fees		23,186		26,155		22,286		(2,969	)		900
Sale and administration of investment products		6,263		6,367		5,259		(104	)		1,004
Trust fees		5,260		5,263		4,716		(3	)		544
Other fees		6,858		7,981		8,085		(1,123	)		(1,227	)
Total other service fees	$	64,773	$	75,559	$	64,307	$	(10,786	)	$	466

Popular, Inc.    

Financial Supplement to First Quarter 2020 Earnings Release

Table G - Loans and Deposits    

(Unaudited)    

Loans - Ending Balances    

							Variance
(In thousands)	31-Mar-20		31-Dec-19		31-Mar-19		Q1 2020 vs. Q4 2019			Q1 2020 vs. Q1 2019
Loansheld-in-portfolio:
Commercial	$	12,498,969	$	12,312,751	$	12,058,310	$	186,218		$	440,659
Construction		902,380		831,092		791,320		71,288			111,060
Legacy [1]		20,435		22,105		24,404		(1,670	)		(3,969	)
Lease financing		1,088,542		1,059,507		963,232		29,035			125,310
Mortgage		7,094,757		7,183,532		7,207,180		(88,775	)		(112,423	)
Auto		2,954,150		2,917,522		2,742,095		36,628			212,055
Consumer		3,103,039		3,080,364		2,861,167		22,675			241,872
Total loansheld-in-portfolio	$	27,662,272	$	27,406,873	$	26,647,708	$	255,399		$	1,014,564
Loansheld-for-sale:
Commercial	$	10,679	$	—	$	—	$	10,679		$	10,679
Mortgage		77,176		59,203		43,985		17,973			33,191
Total loansheld-for-sale	$	87,855	$	59,203	$	43,985	$	28,652		$	43,870
Total loans	$	27,750,127	$	27,466,076	$	26,691,693	$	284,051		$	1,058,434

[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 Popular U.S. segment.

Deposits - Ending Balances    

							Variance
(In thousands)	31-Mar-20		31-Dec-19		31-Mar-19		Q1 2020 vs. Q4 2019			Q1 2020 vs. Q1 2019
Demand deposits [1]	$	17,023,170	$	16,566,145	$	16,871,934	$	457,025		$	151,236
Savings, NOW and money market deposits(non-brokered)		18,786,042		19,169,899		15,806,355		(383,857	)		2,979,687
Savings, NOW and money market deposits (brokered)		460,140		347,765		395,795		112,375			64,345
Time deposits(non-brokered)		8,404,525		7,546,621		7,724,151		857,904			680,374
Time deposits (brokered CDs)		123,299		128,176		81,603		(4,877	)		41,696
Total deposits	$	44,797,176	$	43,758,606	$	40,879,838	$	1,038,570		$	3,917,338

[1] Includes interest andnon-interest bearing demand deposits.    

Popular, Inc.    

Financial Supplement to First Quarter 2020 Earnings Release    

Table H - Loan Delinquency - Puerto Rico    

(Unaudited)    

31-Mar-20
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	$	8,382	$	359	$	1,379	$	10,120	$	137,145	$	147,265	$	1,379	$	—
Commercial real estate:
Non-owner occupied		4,632		4,382		109,054		118,068		1,968,831		2,086,899		109,054		—
Owner occupied		11,649		4,276		101,887		117,812		1,460,599		1,578,411		101,887		—
Commercial and industrial		17,112		3,608		39,280		60,000		3,458,407		3,518,407		38,784		496
Construction		4,411		—		—		4,411		159,979		164,390		—		—
Mortgage		339,648		141,841		854,105		1,335,594		4,680,414		6,016,008		404,465		449,640
Leasing		18,301		5,938		4,076		28,315		1,060,227		1,088,542		4,076		—
Consumer:
Credit cards		14,062		9,297		20,588		43,947		1,020,740		1,064,687		—		20,588
Home equity lines of credit		49		51		93		193		4,736		4,929		—		93
Personal		23,697		13,078		36,125		72,900		1,390,326		1,463,226		36,064		61
Auto		110,408		38,018		26,431		174,857		2,779,293		2,954,150		26,431		—
Other		622		293		13,966		14,881		122,086		136,967		13,543		423
Total	$	552,973	$	221,141	$	1,206,984	$	1,981,098	$	18,242,783	$	20,223,881	$	735,683	$	471,301
31-Dec-19
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	$	2,941	$	129	$	1,512	$	4,582	$	143,267	$	147,849	$	1,473	$	—
Commercial real estate:
Non-owner occupied		10,439		5,244		43,664		59,347		2,048,871		2,108,218		39,968		—
Owner occupied		5,704		3,978		84,537		94,219		1,492,110		1,586,329		69,276		—
Commercial and industrial		8,780		1,646		37,156		47,582		3,371,152		3,418,734		36,538		544
Construction		1,555		—		119		1,674		135,796		137,470		119		—
Mortgage		285,006		146,197		837,651		1,268,854		4,897,894		6,166,748		283,708		439,662
Leasing		12,014		3,053		3,657		18,724		1,040,783		1,059,507		3,657		—
Consumer:
Credit cards		11,358		7,928		19,461		38,747		1,085,053		1,123,800		—		19,461
Home equity lines of credit		—		85		—		85		4,953		5,038		—		—
Personal		13,481		9,352		20,296		43,129		1,325,021		1,368,150		19,529		61
Auto		81,169		23,182		31,148		135,499		2,782,023		2,917,522		31,148		—
Other		358		1,418		14,189		15,965		124,902		140,867		13,784		405
Total	$	432,805	$	202,212	$	1,093,390	$	1,728,407	$	18,451,825	$	20,180,232	$	499,200	$	460,133

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	$	5,441		$	230			$	(133	)	$	5,538		$	(6,122	)	$	(584	)	$	(94	)	$	—
Commercial real estate:
Non-owner occupied		(5,807	)		(862	)			65,390			58,721			(80,040	)		(21,319	)		69,086			—
Owner occupied		5,945			298				17,350			23,593			(31,511	)		(7,918	)		32,611			—
Commercial and industrial		8,332			1,962				2,124			12,418			87,255			99,673			2,246			(48	)
Construction		2,856			—				(119	)		2,737			24,183			26,920			(119	)		—
Mortgage		54,642			(4,356	)			16,454			66,740			(217,480	)		(150,740	)		120,757			9,978
Leasing		6,287			2,885				419			9,591			19,444			29,035			419			—
Consumer:
Credit cards		2,704			1,369				1,127			5,200			(64,313	)		(59,113	)		—			1,127
Home equity lines of credit		49			(34	)			93			108			(217	)		(109	)		—			93
Personal		10,216			3,726				15,829			29,771			65,305			95,076			16,535			—
Auto		29,239			14,836		��		(4,717	)		39,358			(2,730	)		36,628			(4,717	)		—
Other		264			(1,125	)			(223	)		(1,084	)		(2,816	)		(3,900	)		(241	)		18
Total	$	120,168		$	18,929			$	113,594		$	252,691		$	(209,042	)	$	43,649		$	236,483		$	11,168

Popular, Inc.    

Financial Supplement to First Quarter 2020 Earnings Release    

Table I - Loan Delinquency - Popular U.S.    

(Unaudited)    

March 31, 2020
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	$	974	$	—	$	2,097	$	3,071	$	1,627,274	$	1,630,345	$	2,097	$	—
Commercial real estate:
Non-owner occupied		25,944		—		269		26,213		1,950,611		1,976,824		269		—
Owner occupied		3,910		—		245		4,155		338,805		342,960		245		—
Commercial and industrial		1,067		3,546		4,793		9,406		1,208,452		1,217,858		4,793		—
Construction		—		—		—		—		737,990		737,990		—		—
Mortgage		25,639		391		12,176		38,206		1,040,543		1,078,749		12,176		—
Legacy		37		41		1,980		2,058		18,377		20,435		1,980		—
Consumer:
Credit cards		—		—		—		—		36		36		—		—
Home equity lines of credit		1,438		72		9,322		10,832		106,579		117,411		9,322		—
Personal		2,687		1,632		2,110		6,429		308,559		314,988		2,110		—
Other		21		—		—		21		774		795		—		—
Total	$	61,717	$	5,682	$	32,992	$	100,391	$	7,338,000	$	7,438,391	$	32,992	$	—
December 31, 2019
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	$	9	$	—	$	2,097	$	2,106	$	1,645,204	$	1,647,310	$	2,097	$	—
Commercial real estate:
Non-owner occupied		1,047		—		281		1,328		1,868,968		1,870,296		281		—
Owner occupied		1,750		—		251		2,001		337,134		339,135		251		—
Commercial and industrial		454		128		19,945		20,527		1,174,353		1,194,880		876		—
Construction		—		—		26		26		693,596		693,622		26		—
Mortgage		15,474		4,024		11,091		30,589		986,195		1,016,784		11,091		—
Legacy		49		8		1,999		2,056		20,049		22,105		1,999		—
Consumer:
Credit cards		—		—		—		—		36		36		—		—
Home equity lines of credit		404		267		9,954		10,625		106,718		117,343		9,954		—
Personal		2,286		1,582		2,066		5,934		318,506		324,440		2,066		—
Other		3		—		—		3		687		690		—		—
Total	$	21,476	$	6,009	$	47,710	$	75,195	$	7,151,446	$	7,226,641	$	28,641	$	—

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	$	965		$	—		$	—		$	965		$	(17,930	)	$	(16,965	)	$	—		$	—
Commercial real estate:
Non-owner occupied		24,897			—			(12	)		24,885			81,643			106,528			(12	)		—
Owner occupied		2,160			—			(6	)		2,154			1,671			3,825			(6	)		—
Commercial and industrial		613			3,418			(15,152	)		(11,121	)		34,099			22,978			3,917			—
Construction		—			—			(26	)		(26	)		44,394			44,368			(26	)		—
Mortgage		10,165			(3,633	)		1,085			7,617			54,348			61,965			1,085			—
Legacy		(12	)		33			(19	)		2			(1,672	)		(1,670	)		(19	)		—
Consumer:
Credit cards		—			—			—			—			—			—			—			—
Home equity lines of credit		1,034			(195	)		(632	)		207			(139	)		68			(632	)		—
Personal		401			50			44			495			(9,947	)		(9,452	)		44			—
Auto		—			—			—			—			—			—			—			—
Other		18			—			—			18			87			105			—			—
Total	$	40,241		$	(327	)	$	(14,718	)	$	25,196		$	186,554		$	211,750		$	4,351		$	—

Popular, Inc.    

Financial Supplement to First Quarter 2020 Earnings Release    

Table J - Loan Delinquency - Consolidated    

(Unaudited)    

31-Mar-20
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	$	9,356	$	359	$	3,476	$	13,191	$	1,764,419	$	1,777,610	$	3,476	$	—
Commercial real estate:
Non-owner occupied		30,576		4,382		109,323		144,281		3,919,442		4,063,723		109,323		—
Owner occupied		15,559		4,276		102,132		121,967		1,799,404		1,921,371		102,132		—
Commercial and industrial		18,179		7,154		44,073		69,406		4,666,859		4,736,265		43,577		496
Construction		4,411		—		—		4,411		897,969		902,380		—		—
Mortgage		365,287		142,232		866,281		1,373,800		5,720,957		7,094,757		416,641		449,640
Leasing		18,301		5,938		4,076		28,315		1,060,227		1,088,542		4,076		—
Legacy		37		41		1,980		2,058		18,377		20,435		1,980		—
Consumer:
Credit cards		14,062		9,297		20,588		43,947		1,020,776		1,064,723		—		20,588
Home equity lines of credit		1,487		123		9,415		11,025		111,315		122,340		9,322		93
Personal		26,384		14,710		38,235		79,329		1,698,885		1,778,214		38,174		61
Auto		110,408		38,018		26,431		174,857		2,779,293		2,954,150		26,431		—
Other		643		293		13,966		14,902		122,860		137,762		13,543		423
Total	$	614,690	$	226,823	$	1,239,976	$	2,081,489	$	25,580,783	$	27,662,272	$	768,675	$	471,301
31-Dec-19
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	$	2,950	$	129	$	3,609	$	6,688	$	1,788,471	$	1,795,159	$	3,570	$	—
Commercial real estate:
Non-owner occupied		11,486		5,244		43,945		60,675		3,917,839		3,978,514		40,249		—
Owner occupied		7,454		3,978		84,788		96,220		1,829,244		1,925,464		69,527		—
Commercial and industrial		9,234		1,774		57,101		68,109		4,545,505		4,613,614		37,414		544
Construction		1,555		—		145		1,700		829,392		831,092		145		—
Mortgage		300,480		150,221		848,742		1,299,443		5,884,089		7,183,532		294,799		439,662
Leasing		12,014		3,053		3,657		18,724		1,040,783		1,059,507		3,657		—
Legacy		49		8		1,999		2,056		20,049		22,105		1,999		—
Consumer:
Credit cards		11,358		7,928		19,461		38,747		1,085,089		1,123,836		—		19,461
Home equity lines of credit		404		352		9,954		10,710		111,671		122,381		9,954		—
Personal		15,767		10,934		22,362		49,063		1,643,527		1,692,590		21,595		61
Auto		81,169		23,182		31,148		135,499		2,782,023		2,917,522		31,148		—
Other		361		1,418		14,189		15,968		125,589		141,557		13,784		405
Total	$	454,281	$	208,221	$	1,141,100	$	1,803,602	$	25,603,271	$	27,406,873	$	527,841	$	460,133

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	$	6,406		$	230		$	(133	)	$	6,503		$	(24,052	)	$	(17,549	)	$	(94	)	$	—
Commercial real estate:
Non-owner occupied		19,090			(862	)		65,378			83,606			1,603			85,209			69,074			—
Owner occupied		8,105			298			17,344			25,747			(29,840	)		(4,093	)		32,605			—
Commercial and industrial		8,945			5,380			(13,028	)		1,297			121,354			122,651			6,163			(48	)
Construction		2,856			—			(145	)		2,711			68,577			71,288			(145	)		—
Mortgage		64,807			(7,989	)		17,539			74,357			(163,132	)		(88,775	)		121,842			9,978
Leasing		6,287			2,885			419			9,591			19,444			29,035			419			—
Legacy		(12	)		33			(19	)		2			(1,672	)		(1,670	)		(19	)		—
Consumer:
Credit cards		2,704			1,369			1,127			5,200			(64,313	)		(59,113	)		—			1,127
Home equity lines of credit		1,083			(229	)		(539	)		315			(356	)		(41	)		(632	)		93
Personal		10,617			3,776			15,873			30,266			55,358			85,624			16,579			—
Auto		29,239			14,836			(4,717	)		39,358			(2,730	)		36,628			(4,717	)		—
Other		282			(1,125	)		(223	)		(1,066	)		(2,729	)		(3,795	)		(241	)		18
Total	$	160,409		$	18,602		$	98,876		$	277,887		$	(22,488	)	$	255,399		$	240,834		$	11,168

Popular, Inc.

Financial Supplement to First Quarter 2020 Earnings Release

Table K -Non-Performing Assets

(Unaudited)

																			Variance
(Dollars in thousands)	31-Mar-20			As a % of loans HIP by category			31-Dec-19			As a % of loans HIP by category			31-Mar-19			As a % of loans HIP by category			Q1 2020 vs. Q4 2019			Q1 2020 vs. Q1 2019
Non-accrual loans:
Commercial [1]	$	258,508			2.1	%	$	150,760			1.2	%	$	169,154			1.4	%	$	107,748		$	89,354
Construction		—			—			145			—			13,848			1.7			(145	)		(13,848	)
Legacy [2]		1,980			9.7			1,999			9.0			2,583			10.6			(19	)		(603	)
Lease financing		4,076			0.4			3,657			0.3			2,525			0.3			419			1,551
Mortgage [1]		416,641			5.9			294,799			4.1			327,658			4.5			121,842			88,983
Auto		26,431			0.9			31,148			1.1			25,162			0.9			(4,717	)		1,269
Consumer [1]		61,039			2.0			45,333			1.5			45,272			1.6			15,706			15,767
Totalnon-performing loansheld-in-portfolio		768,675			2.8	%		527,841			1.9	%		586,202			2.2	%		240,834			182,473
Non-performing loansheld-for-sale [3]		10,679						—						—						10,679			10,679
Other real estate owned (“OREO”)		123,922						122,072						125,478						1,850			(1,556	)
Totalnon-performing assets	$	903,276					$	649,913					$	711,680					$	253,363		$	191,596
Accruing loans past due 90 days or more [4] [5]	$	471,301					$	460,133					$	550,717					$	11,168		$	(79,416	)
Ratios:
Non-performing assets to total assets		1.71	%					1.25	%					1.46	%
Non-performing loansheld-in-portfolio to loansheld-in-portfolio		2.78						1.93						2.20
Allowance for credit losses to loansheld-in-portfolio		3.32						1.74						2.07
Allowance for credit losses tonon-performing loans, excluding loansheld-for-sale		119.65						90.50						93.93

[1] The increase innon-accrual loans includes the initial impact of $278 million related to the adoption of CECL on the portfolio of previously purchased credit deteriorated loans. This included mortgage loans for $133 million, commercial loans for $131 million and $14 million in consumer loans.

[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 Popular U.S. segment.

[3] There were $11 million innon-performing commercial loansheld-for-sale as of March 31, 2020, none for the quarters ended December 31, 2019 and March 31, 2019.

[4] 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 tonon-performing since the principal repayment is insured. These include loans rebooked, which were previously pooled into GNMA securities amounting to $111 million (December 31, 2019 - $103 million; March 31, 2019 - $106 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 on the financial statements of BPPR with an offsetting liability. These balances include $222 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2020 (December 31, 2019 - $213 million; March 31, 2019 - $292 million). Furthermore, the Corporation has approximately $62 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 fromnon-performing assets (December 31, 2019 - $65 million; March 31, 2019 - $67 million).

[5] The carrying value of loans accounted for under ASC Subtopic310-30 that are contractually 90 days or more past due was $153 million at December 31, 2019 and $257 million at March 31, 2019. This amount is excluded from the above table as the loans’ accretable yield interest recognition is independent from the underlying contractual loan delinquency status.

Popular, Inc.

Financial Supplement to First Quarter 2020 Earnings Release

Table L - Activity inNon-Performing Loans

(Unaudited)

Commercial loansheld-in-portfolio:

	Quarter ended									Quarter ended
	31-Mar-20									31-Dec-19
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	147,255		$	3,505		$	150,760		$	166,366		$	3,331		$	169,697
Transition of PCI to PCD loans under CECL		112,517			18,547			131,064			—			—			—
Plus:
Newnon-performing loans		4,954			166			5,120			14,650			248			14,898
Advances on existingnon-performing loans		—			95			95			—			80			80
Less:
Non-performing loans transferred to OREO		(2,202	)		—			(2,202	)		(4,009	)		—			(4,009	)
Non-performing loanscharged-off		(2,146	)		(554	)		(2,700	)		(10,708	)		(42	)		(10,750	)
Loans returned to accrual status / loan collections		(9,274	)		(3,676	)		(12,950	)		(14,207	)		(112	)		(14,319	)
Loans transferred toheld-for-sale		—			(10,679	)		(10,679	)		—			—			—
Non-performing loans sold		—			—			—			(4,837	)		—			(4,837	)
Ending balance NPLs	$	251,104		$	7,404		$	258,508		$	147,255		$	3,505		$	150,760
Construction loansheld-in-portfolio:
	Quarter ended									Quarter ended
	31-Mar-20									31-Dec-19
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	119		$	26		$	145		$	274		$	10,060		$	10,334
Less:
Loans returned to accrual status / loan collections		(119	)		(26	)		(145	)		(155	)		—			(155	)
Non-performing loans sold		—			—			—			—			(10,034	)		(10,034	)
Ending balance NPLs	$	—		$	—		$	—		$	119		$	26		$	145

Mortgage loansheld-in-portfolio:

	Quarter ended									Quarter ended
	31-Mar-20									31-Dec-19
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	283,708		$	11,091		$	294,799		$	296,025		$	9,517		$	305,542
Transition of PCI to PCD loans under CECL		133,186			—			133,186			—			—			—
Plus:
Newnon-performing loans		75,966			4,007			79,973			55,379			4,923			60,302
Advances on existingnon-performing loans		—			52			52			—			39			39
Less:
Non-performing loans transferred to OREO		(8,188	)		—			(8,188	)		(7,988	)		(111	)		(8,099	)
Non-performing loanscharged-off		(4,747	)		—			(4,747	)		(4,800	)		—			(4,800	)
Loans returned to accrual status / loan collections		(75,460	)		(2,974	)		(78,434	)		(54,908	)		(3,277	)		(58,185	)
Ending balance NPLs	$	404,465		$	12,176		$	416,641		$	283,708		$	11,091		$	294,799

Totalnon-performing loansheld-in-portfolio (excluding consumer):

	Quarter ended									Quarter ended
	31-Mar-20									31-Dec-19
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	431,082		$	16,621		$	447,703		$	462,665		$	25,226		$	487,891
Transition of PCI to PCD loans under CECL		245,703			18,547			264,250			—			—			—
Plus:
Newnon-performing loans		80,920			4,173			85,093			70,029			5,171			75,200
Advances on existingnon-performing loans		—			171			171			—			121			121
Less:
Non-performing loans transferred to OREO		(10,390	)		—			(10,390	)		(11,997	)		(111	)		(12,108	)
Non-performing loanscharged-off		(6,893	)		(554	)		(7,447	)		(15,508	)		(42	)		(15,550	)
Loans returned to accrual status / loan collections		(84,853	)		(6,719	)		(91,572	)		(69,270	)		(3,710	)		(72,980	)
Loans transferred toheld-for-sale		—			(10,679	)		(10,679	)		—			—			—
Non-performing loans sold		—			—			—			(4,837	)		(10,034	)		(14,871	)
Ending balance NPLs[1]	$	655,569		$	21,560		$	677,129		$	431,082		$	16,621		$	447,703

[1] Includes $2.0 million of NPLs related to the legacy portfolio as of March 31, 2020 (December 31, 2019 - $2.0 million).

Popular, Inc.

Financial Supplement to First Quarter 2020 Earnings Release

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

(Unaudited)

	Quarter ended			Quarter ended			Quarter ended
	31-Mar-20			31-Dec-19			31-Mar-19
(Dollars in thousands)	Total			Total			Total
Balance at beginning of period	$	477,708		$	512,365		$	569,348
Impact of adopting CECL		315,107			—			—
Provision for credit losses		188,995			47,224			41,825
Initial allowance for credit losses - PCD Loans		429			—			—
		982,239			559,589			611,173
Net loanscharged-off:
BPPR
Commercial		580			7,301			16,594
Construction		(19	)		(48	)		(17	)
Lease financing		3,307			2,768			1,486
Mortgage		5,538			8,770			11,183
Consumer		50,111			40,171			24,983
Total BPPR		59,517			58,962			54,229
Popular U.S.
Commercial		100			19,150			2,834
Construction		(155	)		—			(8	)
Legacy [1]		(101	)		(110	)		(715	)
Mortgage		(1	)		(6	)		229
Consumer		3,163			3,885			3,976
Total Popular U.S.		3,006			22,919			6,316
Total loanscharged-off - Popular, Inc.		62,523			81,881			60,545
Balance at end of period	$	919,716		$	477,708		$	550,628
POPULAR, INC.
Annualized net charge-offs to average loansheld-in-portfolio		0.91	%		1.21	%		0.92	%
Provision for credit losses to net charge-offs		302.28	%		57.67	%		69.08	%
BPPR
Annualized net charge-offs to average loansheld-in-portfolio		1.18	%		1.18	%		1.09	%
Provision for credit losses to net charge-offs		189.87	%		69.27	%		58.00	%
Popular U.S.
Annualized net charge-offs to average loansheld-in-portfolio		0.17	%		1.29	%		0.38	%
Provision for credit losses to net charge-offs		2,527.98	%		27.84	%		164.20	%

[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 Popular U.S. segment.

Popular, Inc.

Financial Supplement to First Quarter 2020 Earnings Release

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

(Unaudited)

31-Mar-20
(Dollars in thousands)	Commercial			Construction			Legacy [1]			Mortgage			Lease financing			Consumer			Total
Total ACL	$	305,048		$	2,591		$	2,026		$	227,087		$	12,589		$	370,375		$	919,716
Total loansheld-in-portfolio	$	12,498,969		$	902,380		$	20,435		$	7,094,757		$	1,088,542		$	6,057,189		$	27,662,272
ACL to loansheld-in-portfolio		2.44	%		0.29	%		9.91	%		3.20	%		1.16	%		6.11	%		3.32	%

[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 Popular U.S. reportable segment.

31-Dec-19
(Dollars in thousands)	Commercial			Construction			Legacy [1]			Mortgage			Lease financing			Consumer			Total
Total ACL	$	147,052		$	4,778		$	630		$	121,108		$	10,768		$	193,372		$	477,708
Total loansheld-in-portfolio	$	12,312,751		$	831,092		$	22,105		$	7,183,532		$	1,059,507		$	5,997,886		$	27,406,873
ACL to loansheld-in-portfolio		1.19	%		0.57	%		2.85	%		1.69	%		1.02	%		3.22	%		1.74	%

[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 Popular U.S. reportable segment.

Variance
(Dollars in thousands)	Commercial		Construction			Legacy			Mortgage			Lease financing		Consumer		Total
Total ACL	$	157,996	$	(2,187	)	$	1,396		$	105,979		$	1,821	$	177,003	$	442,008
Total loansheld-in-portfolio	$	186,218	$	71,288		$	(1,670	)	$	(88,775	)	$	29,035	$	59,303	$	255,399

Popular, Inc.    

Financial Supplement to First Quarter 2020 Earnings Release    

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

(Unaudited)    

31-Mar-20
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:	$	207,850		$	419		$	202,800		$	12,589		$	333,277		$	756,935
Loansheld-in-portfolio:		7,330,982			164,390			6,016,008			1,088,542			5,623,959			20,223,881
ACL to loansheld-in-portfolio:		2.84	%		0.25	%		3.37	%		1.16	%		5.93	%		3.74	%
31-Dec-19
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:	$	131,063		$	574		$	116,281		$	10,768		$	173,965		$	432,651
Loansheld-in-portfolio:		7,261,130			137,470			6,166,748			1,059,507			5,555,377			20,180,232
ACL to loansheld-in-portfolio:		1.80	%		0.42	%		1.89	%		1.02	%		3.13	%		2.14	%
Variance
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Allowance for credit losses:	$	76,787		$	(155	)	$	86,519		$	1,821		$	159,312		$	324,284
Loansheld-in-portfolio:		69,852			26,920			(150,740	)		29,035			68,582			43,649

Popular, Inc.    

Financial Supplement to First Quarter 2020 Earnings Release    

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

(Unaudited)    

31-Mar-20
Popular U.S.
(In thousands)	Commercial			Construction			Legacy			Mortgage			Consumer			Total
Allowance for credit losses:	$	97,198		$	2,172		$	2,026		$	24,287		$	37,098		$	162,781
Loansheld-in-portfolio:		5,167,987			737,990			20,435			1,078,749			433,230			7,438,391
ACL to loansheld-in-portfolio:		1.88	%		0.29	%		9.91	%		2.25	%		8.56	%		2.19	%
31-Dec-19
Popular U.S.
(In thousands)	Commercial			Construction			Legacy			Mortgage			Consumer			Total
Allowance for credit losses:	$	15,989		$	4,204		$	630		$	4,827		$	19,407		$	45,057
Loansheld-in-portfolio:		5,051,621			693,622			22,105			1,016,784			442,509			7,226,641
ACL to loansheld-in-portfolio:		0.32	%		0.61	%		2.85	%		0.47	%		4.39	%		0.62	%
Variance
(In thousands)	Commercial			Construction			Legacy			Mortgage			Consumer			Total
Allowance for credit losses:	$	81,209		$	(2,032	)	$	1,396		$	19,460		$	17,691		$	117,724
Loansheld-in-portfolio:		116,366			44,368			(1,670	)		61,965			(9,279	)		211,750

Popular, Inc.    

Financial Supplement to First Quarter 2020 Earnings Release

Table Q - Reconciliation to GAAP Financial Measures

(Unaudited)    

(In thousands, except share or per share information)	31-Mar-20			31-Dec-19			31-Mar-19
Total stockholders’ equity	$	5,669,605		$	6,016,779		$	5,440,060
Less: Preferred stock		(22,143	)		(50,160	)		(50,160	)
Less: Goodwill		(671,122	)		(671,122	)		(671,122	)
Less: Other intangibles		(26,307	)		(28,780	)		(24,521	)
Total tangible common equity	$	4,950,033		$	5,266,717		$	4,694,257
Total assets	$	52,803,639		$	52,115,324		$	48,680,607
Less: Goodwill		(671,122	)		(671,122	)		(671,122	)
Less: Other intangibles		(26,307	)		(28,780	)		(24,521	)
Total tangible assets	$	52,106,210		$	51,415,422		$	47,984,964
Tangible common equity to tangible assets		9.50	%		10.24	%		9.78	%
Common shares outstanding at end of period		88,125,974			95,589,629			96,629,891
Tangible book value per common share	$	56.17		$	55.10		$	48.58
	Quarterly average
Total stockholders’ equity	$	5,481,179		$	5,887,125		$	5,614,777
Less: Preferred Stock		(38,768	)		(50,160	)		(50,160	)
Less: Goodwill		(671,121	)		(671,121	)		(671,121	)
Less: Other intangibles		(27,826	)		(20,674	)		(25,971	)
Total tangible equity	$	4,743,464		$	5,145,170		$	4,867,525
Return on average tangible common equity		2.87	%		12.79	%		13.91	%

CONTACT:

Popular, Inc.

Investor Relations:

Paul Cardillo,212-417-6721

Senior Vice President, Investor Relations Officer

or

Media Relations:

Teruca Rullán,787-281-5170 or917-679-3596 (mobile)

Senior Vice President, Corporate Communications