Popular (BPOP) 8-K Popular, Inc. Announces Second Quarter 2021 Financial Results

Exhibit 99.1

                

Popular, Inc. Announces Second Quarter 2021 Financial Results

• Net income of $218.1 million in Q2 2021, compared to net income of $262.6 million in Q1 2021.

• Net interest margin of 2.91% in Q2 2021, compared to 3.07% in Q1 2021; net interest margin on a taxable equivalent basis of 3.22% in Q2 2021, compared to 3.39% in Q1 2021.

• Credit Quality:

• Non-performing loans held-in-portfolio (“NPLs”) decreased by $13.0 million from Q1 2021; NPLs to loans ratio at 2.4% flat from Q1 2021;

• Net charge-offs (“NCOs”) was a net recovery of $1.3 million, a favorable variance by $22.3 million from Q1 2021; NCOs at (0.02)% of average loans held-in-portfolio vs. 0.29% in Q1 2021;

• Allowance for credit losses (“ACL”) to loans held-in-portfolio at 2.70% vs. 2.75% in Q1 2021; and

• ACL to NPLs at 114.7% flat from Q1 2021.

• Common Equity Tier 1 ratio of 16.55%, Common Equity per Share of $71.82 and Tangible Book Value per Share of $63.24 at June 30, 2021.

SAN JUAN, Puerto Rico — (BUSINESS WIRE) — Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $218.1 million for the quarter ended June 30, 2021, compared to net income of $262.6 million for the quarter ended March 31, 2021.

Ignacio Alvarez, President and Chief Executive Officer, said: “We had another strong quarter with net income of $218 million. These results reflect improving macro-economic conditions and credit quality as well as our diversified sources of revenue. Consumer spending in P.R. has increased and it is reflected in higher revenues from credit and debit card spending. Deposit balances grew by $5.9 billion and excluding forgiveness of PPP loans, we saw a small increase in our period end loans, led by strong auto loan originations in P.R. During the quarter we also continued to return capital to our shareholders, increased our common stock dividend, while maintaining a CET1 ratio of 16.6% at quarter end. While we are extremely pleased with the results for the first half of the year, we remain attentive on how the evolving health situation may impact the economic recovery.

We also continued to support the communities we serve. During the quarter we released our annual Corporate Sustainability Report, which summarizes our program, takes into account widely accepted sustainability reporting standards and highlights our commitment, progress and achievements in our efforts to operate as a responsible, ethical and sustainable company.”

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Significant Events

Financial Highlights

For the second quarter of 2021, the Corporation recorded net income of $218.1 million, compared to a net income of $262.6 million for the previous quarter. The second quarter’s results include a release of the allowance for credit losses of $17.0 million driven by improving credit quality and the improved macroeconomic outlook. Net Interest income was $487.8 million, an increase of $8.7 million compared to the previous quarter, mainly due to additional funds invested from the increase in deposits. The net interest margin decreased 16 basis points to 2.91%. Total assets grew by $5.8 billion from the previous quarter, reflecting an increase in deposits across various sectors, principally from the Puerto Rico public sector.

Capital Actions

On May 3, 2021, the Corporation announced that it had entered into an accelerated share repurchase agreement (the “ASR Agreement”) to repurchase an aggregate of $350 million of Popular’s common stock. Under the terms of the ASR Agreement, on May 4, 2021 the Corporation made an initial payment of $350 million and received an initial delivery of 3,785,831 shares of Popular’s Common Stock (the “Initial Shares”). The transaction was accounted for as a treasury stock transaction. Furthermore, as a result of the receipt of the Initial Shares, the Corporation recognized in shareholders’ equity approximately $280 million in treasury stock and $70 million as a reduction in capital surplus. Upon the final settlement of the ASR Agreement, the Corporation expects to further adjust its treasury stock and capital surplus accounts to reflect the final delivery or receipt of cash or shares, which will depend on the volume-weighted average price of the Corporation’s common stock during the term of the ASR Agreement, less a discount. The final settlement of the ASR Agreement is expected to occur no later than the third quarter of 2021.

On May 6, 2021, the Corporation’s Board of Directors approved a quarterly cash dividend of $0.45 per share, an increase from the previous $0.40 per share quarterly dividend, on its outstanding common stock. The dividend was paid on July 1, 2021 to shareholders of record at the close of business on May 26, 2021.

Earnings Highlights

(Unaudited)	Quarters ended								Six months ended
(Dollars in thousands, except per share information)	30-Jun-21			31-Mar-21			30-Jun-20		30-Jun-21			30-Jun-20
Net interest income	$	487,802		$	479,112		$	450,881	$	966,914		$	923,976
Provision for credit losses (benefit)		(17,015	)		(82,226	)		62,449		(99,241	)		252,180
Net interest income after provision for credit losses (benefit)		504,817			561,338			388,432		1,066,155			671,796
Other non-interest income		154,540			153,653			112,055		308,193			238,698
Operating expenses		368,185			375,528			348,231		743,713			720,839
Income before income tax		291,172			339,463			152,256		630,635			189,655
Income tax expense		73,093			76,831			24,628		149,924			27,725
Net income	$	218,079		$	262,632		$	127,628	$	480,711		$	161,930
Net income applicable to common stock	$	217,726		$	262,279		$	127,275	$	480,005		$	160,877
Net income per common share-basic	$	2.67		$	3.13		$	1.49	$	5.80		$	1.83
Net income per common share-diluted	$	2.66		$	3.12		$	1.49	$	5.79		$	1.83

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Net interest income on a taxable equivalent basis – Non-GAAP financial measure

Net interest income, on a taxable equivalent basis, is presented with its different components in Table D and E for the quarter and six months ended June 30, 2021 and comparable periods. Net interest income on a taxable equivalent basis is a non-GAAP financial measure. Management believes that this presentation provides meaningful information since it facilitates the comparison of revenues arising from taxable and tax-exempt sources.

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

Net interest income for the quarter ended June 30, 2021 was $487.8 million compared to $479.1 million in the previous quarter, an increase of $8.7 million. The total net impact on net interest income of one more day in the quarter when compared to the first quarter of 2021 is estimated at $3.7 million. Net interest income, on a taxable equivalent basis, for the second quarter of 2021 was $541.2 million, an increase of $11.4 million when compared to $529.8 million in the first quarter of 2021. On a taxable equivalent basis, the total net impact on net interest income of one more day in the quarter when compared to the first quarter of 2021 is estimated at $4.0 million.

Net interest margin decreased 16 basis points to 2.91% compared to 3.07% in the previous quarter. The decrease in the net interest margin is due to a higher proportion of money market and investment securities, which carry a low yield, resulting from a higher volume of deposits in the quarter, lower interest and fees related to loans issued under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), partially offset by higher discount amortization on purchased credit deteriorated (“PCD”) loans repaid during the quarter and a lower cost of deposits. On a taxable equivalent basis, net interest margin for the second quarter of 2021 was 3.22 % compared to 3.39% in the first quarter of 2021, a decrease of 17 basis points. The main variances in net interest income on a taxable equivalent basis were:

• Higher interest income from money market investments, trading and investment securities by $9.7 million due to higher volume by $4.4 billion driven by deposit increases across all business lines, mainly government deposits. The taxable equivalent yield on these assets was 1.44%, compared to 1.52% the previous quarter; and

• Lower interest expense on deposits by $2.1 million resulting from lower deposit cost by 4 basis points driven by a higher volume of low yielding deposits, reduction of costs in several non-maturity deposit products and renewals of time deposits in a lower interest rate environment. These positive variances in deposit costs were partially offset by higher volume of interest-bearing deposits by $3.3 billion.

Partially offset by:

• Lower interest income from loans by $0.6 million mainly due to the following:

• Lower interest income from commercial loans by $2.1 million resulting from lower SBA PPP interest income and fees of $9.2 million, partially offset by higher interest income by $7.2 million from PCD loans due to the accelerated discount amortization from several repaid loans and interest for one more day in the quarter of $1.9 million; and

• Auto and lease financing increasing $124 million in average balances resulting an increase in interest income of $2.5 million.

The Corporation recognized interest income of $13.9 million related to loans issued under the SBA PPP program, compared to $23.1 million in the previous quarter. These loans carried a yield of approximately 4.45% in this quarter, including the amortization of fees received under the program, compared to 7.21% last quarter.

Net interest income for the Banco Popular de Puerto Rico (“BPPR”) segment amounted to $419.2 million for the quarter ended June 30, 2021, compared to $410.3 million in the previous quarter. Net interest margin for the second quarter of 2021 was 2.91%, a decrease of 19 basis points when compared to 3.10% for the previous quarter. As discussed above, the net interest margin was negatively impacted by a higher volume of money market and investment securities, lower fees from the cancellation and amortization of PPP loans of approximately $8.8 million, partially offset by a higher amortization of discount on PCD loans. The cost of interest-bearing deposits was 0.18%, down 3 basis points from the 0.21% reported in the previous quarter. Total cost of deposits for the quarter was 0.14%, compared to 0.16% reported in the first quarter of 2021.

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Net interest income for Popular Bank (“PB”) was $78.7 million for the quarter ended June 30, 2021, compared to $79.2 million during the previous quarter. Net interest margin for the quarter was 3.33% lower than the 3.35% the previous quarter. The cost of interest-bearing deposits was 0.60%, compared to 0.66% in the previous quarter, decreasing for the seventh consecutive quarter. Total cost of deposits for the quarter, including demand deposits, was 0.47%, compared to 0.54% reported in the first quarter of 2021.

Non-interest income

Non-interest income increased by $0.9 million to $154.6 million for the quarter ended June 30, 2021, compared to $153.7 million for the quarter ended March 31, 2021. The variance in non-interest income was primarily driven by:

• higher other service fees by $5.8 million, principally at the BPPR segment, due to higher credit card fees by $4.0 million, mainly in interchange income resulting from higher transactional volumes;

• an increase in net gain on equity securities of $1.1 million mainly related to employee deferred compensation plans that have an offsetting expense on personnel related expenses;

• a favorable variance in adjustments to indemnity reserves on previously sold loans of $2.4 million mainly due to a reserve release related to loans previously sold with credit recourse; and

• higher other operating income by $1.1 million mainly due to higher net earnings from the combined portfolio of investments under the equity method by $2.4 million, partially offset by a lower gain on sale of daily auto rental units by $1.4 million;

partially offset by:

• lower income from mortgage banking activities by $9.9 million mainly due to an unfavorable variance in fair value adjustments on mortgage servicing rights (“MSRs”) of $6.8 million due to the negative adjustment in the second quarter mainly related to a reduction in estimated cash flows related to portfolio amortization and higher losses on closed derivative positions by $3.4 million.

Refer to Table B for further details.

Operating expenses

Operating expenses for the second quarter of 2021 totaled $368.2 million, a decrease of $7.3 million from the first quarter of 2021. The variance in operating expenses was driven primarily by:

• lower personnel cost by $5.3 million due to $6.8 million of lower commission, incentives, and other bonuses, including lower performance shares and restricted stock expenses by $5.5 million, partially offset by higher pension, postretirement and medical insurance by $2.4 million due to higher premiums accruals;

• lower net occupancy expense by $1.5 million due lower rent and electricity expenses;

• lower credit and debit card processing, volume, interchange and other expenses by $1.5 million mainly due to transaction volume rebates and incentives; and

• lower other operating expenses by $4.1 million due to a release of $4.5 million of mortgage servicing reserves related to claims and foreclosed loans, higher gain on sale of assets by $1.8 million and lower subsequent write-down of foreclosed auto units by $1.2 million; partially offset by higher sundry losses by $3.0 million due to higher legal reserves.

Partially offset by:

• higher business promotion expenses by $4.0 million due higher customer reward program expense in our credit card business by $2.5 million and higher advertising expense by $0.8 million.

Full-time equivalent employees were 8,439 as of June 30, 2021, compared to 8,469 as of March 31, 2021.

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

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Income taxes

For the quarter ended June 30, 2021, the Corporation recorded an income tax expense of $73.1 million, compared to $76.8 million for the previous quarter. The decrease in income tax expense was mainly attributable to lower income before tax during the second quarter of 2021, partially offset by higher effective income tax rate in the P.R. operations and an increase in the blended state income tax rate for the U.S. operations during the second quarter of 2021. The effective tax rate (“ETR”) for the second quarter of 2021 was 25%, compared to 23% for the previous quarter. The ETR of the Corporation is impacted by the composition and source of its taxable income. The increase in the ETR rate for the second quarter of 2021 was primarily attributed to higher income at the Puerto Rico marginal tax rate.

Credit Quality

During the second quarter of 2021, the Corporation continued to exhibit favorable credit quality and low credit costs, outperforming pre-pandemic trends. These improvements have been aided by the significant government stimulus and the rebound in the economy. We will continue to closely monitor COVID-19 related risks and the effects of the receding stimulus on macroeconomic conditions and on borrower performance. However, management believes that the improvement over the last few years in the risk profile of the Corporation’s loan portfolios positions Popular to operate successfully under the current environment.

The following presents credit quality results for the second quarter of 2021:

• At June 30, 2021, total non-performing loans held-in-portfolio decreased by $13.0 million from March 31, 2021. BPPR’s NPLs decreased by $9.2 million, driven by lower mortgage NPLs by $20.1 million, due to lower inflows for the quarter and lower consumer NPLs by $5.1 million, mostly driven by auto loans. This decrease was in part offset by higher commercial NPLs by $16.8 million mostly due to a single $32.4 million inflow, partially offset by the resolution of an $8.8 million relationship. PB’s NPLs decreased by $3.8 million, mostly related to a construction loan transferred to loans-held-for-sale. At June 30, 2021, the ratio of NPLs to total loans held-in-portfolio remained flat at 2.4% when compared to the first quarter of 2021.

• Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $11.2 million quarter-over-quarter. In BPPR, total inflows increased by $17.0 million, mostly driven by higher commercial inflows of $31.9 million related to the abovementioned $32.4 million relationship. This increase was partly offset by lower mortgage inflows of $15.0 million, mostly due to improvements in early delinquencies. The NPL inflows at PB decreased by $5.8 million during the quarter.

• NCOs decreased by $22.3 million from the first quarter of 2021 to net recoveries of $1.3 million. BPPR ‘s NCOs decreased by $21.0 million, primarily driven by lower commercial, mortgage and construction NCOs by $8.4 million, $7.4 million and $6.4 million, respectively. The decrease reflected in the commercial NCOs was mostly due to recoveries of $7.9 million related to the resolution of the abovementioned non-performing relationship. During the second quarter of 2021, the Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was (0.02)%, compared to 0.29% in the first quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios.

• At June 30, 2021, the allowance for credit losses (“ACL”) decreased by $15.0 million from the first quarter of 2021 to $785.8 million. The ACL incorporated updated economic scenarios for the United States and Puerto Rico, which continued to show a positive outlook of the economy. In BPPR, the ACL decreased by $19.8 million, led by improvements in commercial and mortgage loans. The decrease in the allowance for commercial loans was mainly prompted by the release of a qualitative reserve for the hotel and hospitality portfolio due to the favorable economic environment and improvements in borrower performance. The reduction in the allowance for mortgage loans was led by a combination of improvements in economic scenarios and other assumptions used to estimate the reserve, as well as lower volumes. The allowance for the PB segment increased by $4.8 million. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.70% in the second quarter of 2021, compared to 2.75% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 114.7%, flat from the previous quarter.

• Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The ACL is estimated by weighting the outputs of optimistic, baseline and pessimistic scenarios. Among the three scenarios used to estimate the ACL, the baseline is assigned the highest probability, followed by the pessimistic scenario given the uncertainties in the economic outlook and downside risk. The current baseline forecast continues to show a favorable economic scenario. The 2021 forecasted GDP growth is now at 6.8% for U.S. and 3.8% for P.R., compared to 4.9% and 3.4%, respectively,

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in the previous 2021 forecast. The forecasted U.S. unemployment rate average for 2021 is now 5.43%. This is an improvement over the previous estimate of 6.09%. In the case of P.R., the forecasted unemployment rate average for 2021 of 8.43% was slightly higher than the previous forecast of 7.98%. However, unemployment rate levels in P.R. are expected to continue declining through 2022. The P.R. forecasted average unemployment rate for 2022 of 7.25%, is lower than the previous forecast of 7.52%.

• The provision for credit losses for the loans portfolios for the second quarter of 2021 reflected a benefit of $17.5 million, compared to a benefit of $75.8 million in the previous quarter. The provision for the BPPR segment was a benefit of $22.5 million, an unfavorable variance of $17.5 million compared to the previous quarter, while the provision expense for the PB segment was $5.0 million, an unfavorable variance of $40.8 million from the previous quarter. In the prior quarter, improvements in the economic forecasts prompted substantial reductions in reserves.

• The provision for unfunded commitments for the second quarter of 2021 reflected an expense of $0.4 million, compared to a benefit of $6.2 million during the previous quarter. The provision for credit losses in our investment portfolio was an expense of $0.1 million, compared to a benefit of $0.2 million in the first quarter of 2021. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations.

Non-Performing Assets

(Unaudited)
(In thousands)	30-Jun-21			31-Mar-21			30-Jun-20
Non-performing loans held-in-portfolio	$	685,183		$	698,142		$	760,204
Non-performing loans held-for-sale		8,700			3,549			6,778
Other real estate owned (“OREO”)		73,272			72,060			113,940
Total non-performing assets	$	767,155		$	773,751		$	880,922
Net (recoveries) charge-offs for the quarter	$	(1,291	)	$	21,030		$	64,953
Ratios:
Loans held-in-portfolio	$	29,062,617		$	29,131,628		$	29,070,553
Non-performing loans held-in-portfolio to loans held-in-portfolio		2.36	%		2.40	%		2.62	%
Allowance for credit losses to loans held-in-portfolio		2.70			2.75			3.16
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		114.68			114.70			120.81
Refer to Table K for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios

(Unaudited)	Quarters ended								Six months ended
(In thousands)	30-Jun-21			31-Mar-21			30-Jun-20		30-Jun-21			30-Jun-20
Provision for credit losses (benefit) - loan portfolios:
BPPR	$	(22,488	)	$	(39,976	)	$	60,423	$	(62,464	)	$	173,427
Popular U.S.		4,988			(35,803	)		2,681		(30,815	)		78,672
Total provision for credit losses (benefit) - loan portfolios	$	(17,500	)	$	(75,779	)	$	63,104	$	(93,279	)	$	252,099

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Credit Quality by Segment

(Unaudited) (In thousands)	Quarters ended
BPPR	30-Jun-21			31-Mar-21			30-Jun-20
Provision for credit losses (benefit) - loan portfolios	$	(22,488	)	$	(39,976	)	$	60,423
Net charge-offs		(1,483	)		19,474			62,143
Total non-performing loans held-in-portfolio		656,789			665,978			726,603
Allowance / loans held-in-portfolio		3.13	%		3.20	%		3.53	%
	Quarters ended
Popular U.S.	30-Jun-21			31-Mar-21			30-Jun-20
Provision for credit losses (benefit) - loan portfolios	$	4,988		$	(35,803	)	$	2,681
Net charge-offs		192			1,556			2,810
Total non-performing loans held-in-portfolio		28,394			32,164			33,601
Allowance / loans held-in-portfolio		1.57	%		1.53	%		2.13	%

Financial Condition Highlights

(Unaudited)
(In thousands)	30-Jun-21		31-Mar-21		30-Jun-20
Cash and money market investments	$	18,333,650	$	12,064,592	$	10,060,358
Investment securities		22,647,401		23,076,488		21,058,918
Loans		29,062,617		29,131,628		29,070,553
Total assets		72,657,293		66,870,268		62,845,352
Deposits		64,641,776		58,742,801		53,844,300
Borrowings		1,267,545		1,311,064		1,339,339
Total liabilities		66,842,679		60,972,709		57,065,187
Stockholders’ equity		5,814,614		5,897,559		5,780,165

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Total assets increased by $5.8 billion from the first quarter of 2021, driven by:

• an increase of $6.3 billion in cash and money market investments mainly due to an increase in deposits;

partially offset by:

• a decrease of $0.4 billion in debt securities available-for-sale, mainly due to paydowns of agency mortgage-backed securities, partially offset by an increase of $0.1 billion in net unrealized gains in the portfolio and purchases of U.S. treasury securities.

Total liabilities increased by $5.9 billion from the first quarter of 2021, mainly due to an increase of $5.9 billion in deposits due to higher Puerto Rico public sector deposits by $4.3 billion and higher retail and commercial demand deposits by $1.5 billion at BPPR.

Stockholders’ equity decreased by approximately $82.9 million from the first quarter of 2021, principally due to the impact of the $350.0 million accelerated share repurchase transaction, offset by higher accumulated unrealized gains on debt securities available-for-sale by $73.0 million and net income for the quarter of $218.1 million, less declared dividends of $36.3 million on common stock and $0.4 million in dividends on preferred stock.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.55%, $71.82 and $63.24, respectively, at June 30, 2021, compared to 17.08%, $69.63 and $61.42 at March 31, 2021. Refer to Table A for capital ratios.

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Cautionary Note Regarding Forward-Looking Statements

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

More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2020, in our Form 10-Q for the quarter ended March 31, 2021 and in our Form 10-Q for the quarter ended June 30, 2021 to be filed with the Securities and Exchange Commission. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

About Popular, Inc.

Popular, Inc. (NASDAQ: BPOP) is the leading financial institution in Puerto Rico, by both assets and deposits, and ranks among the top 50 U.S. bank holding companies by assets. Founded in 1893, Banco Popular de Puerto Rico, Popular’s principal subsidiary, provides retail, mortgage and commercial banking services in Puerto Rico and the U.S. Virgin Islands. Popular also offers in Puerto Rico auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the mainland United States, Popular provides retail, mortgage and commercial banking services through its New York-chartered banking subsidiary, Popular Bank, which has branches located in New York, New Jersey and Florida.

Conference Call

Popular will hold a conference call to discuss its financial results today Thursday, July 22, 2021 at 11:00 a.m. Eastern Time. The call will be open to the public and broadcasted live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through the dial-in telephone number 1-866-235-1201 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 Sunday, August 22, 2021. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10158030.

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

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Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

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

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

Table F - Mortgage Banking Activities and Other Service Fees

Table G - Loans and Deposits

Table H - Loan Delinquency - PUERTO RICO OPERATIONS

Table I - Loan Delinquency - POPULAR U.S. OPERATIONS

Table J - Loan Delinquency - CONSOLIDATED

Table K - Non-Performing Assets

Table L - Activity in Non-Performing Loans

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

Table N - Allowance for Credit Losses - Loan Portfolios - CONSOLIDATED

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

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

Table Q - Reconciliation to GAAP Financial Measures

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POPULAR, INC.

Financial Supplement to Second Quarter 2021 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

	Quarters ended									Six months ended
	30-Jun-21			31-Mar-21			30-Jun-20			30-Jun-21			30-Jun-20
Basic EPS	$	2.67		$	3.13		$	1.49		$	5.80		$	1.83
Diluted EPS	$	2.66		$	3.12		$	1.49		$	5.79		$	1.83
Average common shares outstanding		81,609,435			83,899,769			85,135,522			82,748,275			87,962,040
Average common shares outstanding - assuming dilution		81,772,789			84,051,935			85,161,661			82,888,378			88,039,712
Common shares outstanding at end of period		80,656,480			84,379,180			84,184,927			80,656,480			84,184,927
Market value per common share	$	75.05		$	70.32		$	37.17		$	75.05		$	37.17
Market capitalization - (In millions)	$	6,053		$	5,934		$	3,129		$	6,053		$	3,129
Return on average assets		1.24	%		1.61	%		0.87	%		1.42	%		0.59	%
Return on average common equity		15.43	%		18.76	%		9.74	%		17.08	%		6.06	%
Net interest margin (non-taxable equivalent basis)		2.91	%		3.07	%		3.25	%		2.99	%		3.58	%
Net interest margin (taxable equivalent basis) -non-GAAP		3.22	%		3.39	%		3.56	%		3.31	%		3.93	%
Common equity per share	$	71.82		$	69.63		$	68.40		$	71.82		$	68.40
Tangible common book value per common share (non-GAAP) [1]	$	63.24		$	61.42		$	60.13		$	63.24		$	60.13
Tangible common equity to tangible assets (non-GAAP) [1]		7.09	%		7.83	%		8.15	%		7.09	%		8.15	%
Return on average tangible common equity [1]		17.58	%		21.37	%		11.23	%		19.46	%		6.97	%
Tier 1 capital		16.62	%		17.15	%		15.78	%		16.62	%		15.78	%
Total capital		19.09	%		19.62	%		18.29	%		19.09	%		18.29	%
Tier 1 leverage		7.34	%		8.06	%		8.13	%		7.34	%		8.13	%
Common Equity Tier 1 capital		16.55	%		17.08	%		15.71	%		16.55	%		15.71	%
[1]   Refer to Table Q for reconciliation to GAAP financial measures.

11

POPULAR, INC.

Financial Supplement to Second Quarter 2021 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

	Quarters ended						Variance			Quarter ended			Variance			Six months ended
							Q2 2021						Q2 2021
(In thousands, except per share information)	30-Jun-21			31-Mar-21			vs. Q1 2021			30-Jun-20			vs. Q2 2020			30-Jun-21			30-Jun-20
Interest income:
Loans	$	433,781		$	434,649		$	(868	)	$	429,670		$	4,111		$	868,430		$	880,116
Money market investments		4,274			3,112			1,162			2,015			2,259			7,386			14,015
Investment securities		91,706			85,690			6,016			76,884			14,822			177,396			164,796
Total interest income		529,761			523,451			6,310			508,569			21,192			1,053,212			1,058,927
Interest expense:
Deposits		28,060			30,201			(2,141	)		42,780			(14,720	)		58,261			104,881
Short-term borrowings		62			143			(81	)		645			(583	)		205			1,693
Long-term debt		13,837			13,995			(158	)		14,263			(426	)		27,832			28,377
Total interest expense		41,959			44,339			(2,380	)		57,688			(15,729	)		86,298			134,951
Net interest income		487,802			479,112			8,690			450,881			36,921			966,914			923,976
Provision for credit losses (benefit)		(17,015	)		(82,226	)		65,211			62,449			(79,464	)		(99,241	)		252,180
Net interest income after provision for credit losses (benefit)		504,817			561,338			(56,521	)		388,432			116,385			1,066,155			671,796
Service charges on deposit accounts		40,153			39,620			533			30,163			9,990			79,773			71,822
Other service fees		76,382			70,628			5,754			52,084			24,298			147,010			116,857
Mortgage banking activities		7,448			17,343			(9,895	)		3,777			3,671			24,791			10,197
Net gain (loss), including impairment, on equity securities		1,565			421			1,144			2,447			(882	)		1,986			(281	)
Net (loss) profit on trading account debt securities		(47	)		(45	)		(2	)		82			(129	)		(92	)		573
Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale		(73	)		—			(73	)		2,222			(2,295	)		(73	)		3,179
Adjustments (expense) to indemnity reserves on loans sold		1,668			(698	)		2,366			(1,160	)		2,828			970			(5,953	)
Other operating income		27,444			26,384			1,060			22,440			5,004			53,828			42,304
Total non-interest income		154,540			153,653			887			112,055			42,485			308,193			238,698
Operating expenses:
Personnel costs
Salaries		90,294			89,335			959			93,969			(3,675	)		179,629			186,225
Commissions, incentives and other bonuses		26,374			33,218			(6,844	)		16,076			10,298			59,592			41,334
Pension, postretirement and medical insurance		13,289			10,924			2,365			11,392			1,897			24,213			21,030
Other personnel costs, including payroll taxes		24,247			26,002			(1,755	)		17,729			6,518			50,249			37,408
Total personnel costs		154,204			159,479			(5,275	)		139,166			15,038			313,683			285,997
Net occupancy expenses		24,562			26,013			(1,451	)		25,487			(925	)		50,575			50,645
Equipment expenses		22,805			21,575			1,230			20,844			1,961			44,380			42,449
Other taxes		13,205			13,959			(754	)		13,323			(118	)		27,164			27,004
Professional fees
Collections, appraisals and other credit related fees		3,486			3,320			166			2,897			589			6,806			6,778
Programming, processing and other technology services		67,152			66,366			786			59,387			7,765			133,518			122,206
Legal fees, excluding collections		2,367			2,365			2			2,184			183			4,732			5,170
Other professional fees		28,148			27,897			251			28,079			69			56,045			59,464
Total professional fees		101,153			99,948			1,205			92,547			8,606			201,101			193,618
Communications		6,005			6,833			(828	)		5,574			431			12,838			11,528
Business promotion		16,511			12,521			3,990			12,281			4,230			29,032			26,478
FDIC deposit insurance		5,742			5,968			(226	)		5,340			402			11,710			10,420
Other real estate owned (OREO) (income) expenses		(4,299	)		(4,533	)		234			(344	)		(3,955	)		(8,832	)		2,135
Credit and debit card processing, volume, interchange and other expenses		10,917			12,454			(1,537	)		9,873			1,044			23,371			20,155
Other operating expenses
Operational losses		6,528			7,896			(1,368	)		4,128			2,400			14,424			12,502

12

All other		9,597		12,364		(2,767	)		18,217		(8,620	)		21,961		33,640
Total other operating expenses		16,125		20,260		(4,135	)		22,345		(6,220	)		36,385		46,142
Amortization of intangibles		1,255		1,051		204			1,795		(540	)		2,306		4,268
Total operating expenses		368,185		375,528		(7,343	)		348,231		19,954			743,713		720,839
Income before income tax		291,172		339,463		(48,291	)		152,256		138,916			630,635		189,655
Income tax expense		73,093		76,831		(3,738	)		24,628		48,465			149,924		27,725
Net income	$	218,079	$	262,632	$	(44,553	)	$	127,628	$	90,451		$	480,711	$	161,930
Net income applicable to common stock	$	217,726	$	262,279	$	(44,553	)	$	127,275	$	90,451		$	480,005	$	160,877
Net income per common share - basic	$	2.67	$	3.13	$	(0.46	)	$	1.49	$	1.18		$	5.80	$	1.83
Net income per common share - diluted	$	2.66	$	3.12	$	(0.46	)	$	1.49	$	1.17		$	5.79	$	1.83
Dividends Declared per Common Share	$	0.45	$	0.40	$	0.05		$	0.40	$	0.05		$	0.85	$	0.80

13

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

										Variance
										Q2 2021 vs.
(In thousands)	30-Jun-21			31-Mar-21			30-Jun-20			Q1 2021
Assets:
Cash and due from banks	$	530,849		$	495,915		$	435,080		$	34,934
Money market investments		17,802,801			11,568,677			9,625,278			6,234,124
Trading account debt securities, at fair value		35,931			36,504			33,560			(573	)
Debt securities available-for-sale, at fair value		22,335,167			22,771,609			20,763,453			(436,442	)
Debt securities held-to-maturity, at amortized cost		88,801			89,725			95,429			(924	)
Less: Allowance for credit losses		10,214			10,096			12,735			118
Total debt securities held-to-maturity, net		78,587			79,629			82,694			(1,042	)
Equity securities		187,502			178,650			166,476			8,852
Loans held-for-sale, at lower of cost or fair value		85,315			84,214			68,725			1,101
Loans held-in-portfolio		29,286,225			29,344,620			29,250,076			(58,395	)
Less: Unearned income		223,608			212,992			179,523			10,616
Allowance for credit losses		785,790			800,797			918,434			(15,007	)
Total loans held-in-portfolio, net		28,276,827			28,330,831			28,152,119			(54,004	)
Premises and equipment, net		486,443			508,023			513,680			(21,580	)
Other real estate		73,272			72,060			113,940			1,212
Accrued income receivable		203,419			215,993			220,126			(12,574	)
Mortgage servicing rights, at fair value		119,467			122,543			141,144			(3,076	)
Other assets		1,750,151			1,713,083			1,833,444			37,068
Goodwill		671,122			671,122			671,122			—
Other intangible assets		20,440			21,415			24,511			(975	)
Total assets	$	72,657,293		$	66,870,268		$	62,845,352		$	5,787,025
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits:
Non-interest bearing	$	14,920,887		$	14,263,548		$	12,520,510		$	657,339
Interest bearing		49,720,889			44,479,253			41,323,790			5,241,636
Total deposits		64,641,776			58,742,801			53,844,300			5,898,975
Assets sold under agreements to repurchase		90,925			86,834			153,065			4,091
Notes payable		1,176,620			1,224,230			1,186,274			(47,610	)
Other liabilities		933,358			918,844			1,881,548			14,514
Total liabilities		66,842,679			60,972,709			57,065,187			5,869,970
Stockholders’ equity:
Preferred stock		22,143			22,143			22,143			—
Common stock		1,045			1,045			1,044			—
Surplus		4,506,659			4,571,919			4,520,333			(65,260	)
Retained earnings		2,670,885			2,489,453			2,033,782			181,432
Treasury stock		(1,290,427	)		(1,012,263	)		(1,016,486	)		(278,164	)
Accumulated other comprehensive (loss) income, net of tax		(95,691	)		(174,738	)		219,349			79,047
Total stockholders’ equity		5,814,614			5,897,559			5,780,165			(82,945	)
Total liabilities and stockholders’ equity	$	72,657,293		$	66,870,268		$	62,845,352		$	5,787,025

14

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

	Quarters ended																								Variance
	30-Jun-21								31-Mar-21								30-Jun-20								Q2 2021 vs. Q1 2021									Q2 2021 vs. Q2 2020
($ amounts in millions)	Average balance			Income / Expense		Yield / Rate			Average balance			Income / Expense		Yield / Rate			Average balance			Income / Expense		Yield / Rate			Average balance			Income / Expense			Yield / Rate			Average balance				Income / Expense			Yield / Rate
Assets:
Interest earning assets:
Money market, trading and investment securities	$	38,136		$	137.5		1.44	%	$	33,756		$	127.8		1.52	%	$	27,356		$	111.5		1.64	%	$	4,380		$	9.7			(0.08	)%	$	10,780			$	26.0			(0.20	)%
Loans:
Commercial		13,539			176.9		5.24			13,624			179.0		5.33			13,350			168.8		5.09			(85	)		(2.1	)		(0.09	)		189				8.1			0.15
Construction		858			11.6		5.43			911			11.9		5.30			935			13.2		5.69			(53	)		(0.3	)		0.13			(77	)			(1.6	)		(0.26	)
Mortgage		7,765			99.4		5.12			7,869			98.4		5.00			7,038			92.2		5.24			(104	)		1.0			0.12			727				7.2			(0.12	)
Consumer		2,431			68.7		11.34			2,513			70.4		11.36			2,918			82.9		11.43			(82	)		(1.7	)		(0.02	)		(487	)			(14.2	)		(0.09	)
Auto		3,280			70.1		8.58			3,203			68.2		8.63			2,957			66.0		8.98			77			1.9			(0.05	)		323				4.1			(0.40	)
Lease financing		1,262			19.0		6.01			1,215			18.4		6.04			1,082			16.1		5.97			47			0.6			(0.03	)		180				2.9			0.04
Total loans		29,135			445.7		6.13			29,335			446.3		6.15			28,280			439.2		6.24			(200	)		(0.6	)		(0.02	)		855				6.5			(0.11	)
Total interest earning assets	$	67,271		$	583.2		3.47	%	$	63,091		$	574.1		3.67	%	$	55,636		$	550.7		3.98	%	$	4,180		$	9.1			(0.20	)%	$	11,635			$	32.5			(0.51	)%
Allowance for credit losses - loan portfolio		(801	)							(890	)							(926	)							89									125
Allowance for credit losses - investment securities		(10	)							(10	)							(13	)							—									3
Other non-interest earning assets		3,906								3,895								4,100								11									(194	)
Total average assets	$	70,366							$	66,086							$	58,797							$	4,280								$	11,569
Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market	$	25,102		$	8.0		0.13	%	$	22,674		$	8.3		0.15	%	$	19,392		$	11.6		0.24	%	$	2,428		$	(0.3	)		(0.02	)%	$	5,710			$	(3.6	)		(0.11	)%
Savings		15,384			6.9		0.18			14,364			7.0		0.20			11,856			10.2		0.35			1,020			(0.1	)		(0.02	)		3,528				(3.3	)		(0.17	)
Time deposits		7,104			13.2		0.74			7,265			14.9		0.83			8,730			21.0		0.97			(161	)		(1.7	)		(0.09	)		(1,626	)			(7.8	)		(0.23	)
Total interest-bearing deposits		47,590			28.1		0.24			44,303			30.2		0.28			39,978			42.8		0.43			3,287			(2.1	)		(0.04	)		7,612				(14.7	)		(0.19	)
Borrowings		1,316			13.9		4.24			1,344			14.1		4.23			1,336			14.9		4.48			(28	)		(0.2	)		0.01			(20	)			(1.0	)		(0.24	)
																																					��
Total interest-bearing liabilities		48,906			42.0		0.34			45,647			44.3		0.39			41,314			57.7		0.56			3,259			(2.3	)		(0.05	)		7,592				(15.7	)		(0.22	)
Net interest spread							3.13	%							3.28	%							3.42	%								(0.15	)%									(0.29	)%
Non-interest bearing deposits		14,920								13,394								11,006								1,526									3,914
Other liabilities		857								1,351								1,203								(494	)								(346	)
Stockholders’ equity		5,683								5,694								5,274								(11	)								409
Total average liabilities and stockholders’ equity	$	70,366							$	66,086							$	58,797							$	4,280								$	11,569
Net interest income / margin on a taxable equivalent basis (Non-GAAP)				$	541.2		3.22	%				$	529.8		3.39	%				$	493.0		3.56	%				$	11.4			(0.17	)%					$	48.2			(0.34	)%
Taxable equivalent adjustment					53.4								50.7								42.1								2.7										11.3
Net interest income / margin non-taxable equivalent basis (GAAP)				$	487.8		2.91	%				$	479.1		3.07	%				$	450.9		3.25	%				$	8.7			(0.16	)%					$	36.9			(0.34	)%

15

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

	Six months ended
	30-Jun-21								30-Jun-20								Variance
	Average			Income /		Yield /			Average			Income /		Yield /			Average			Income /			Yield /
($ amounts in millions)	balance			Expense		Rate			balance			Expense		Rate			balance			Expense			Rate
Assets:
Interest earning assets:
Money market, trading and investment securities	$	35,958		$	267.0		1.49	%	$	24,050		$	247.2		2.06	%	$	11,908		$	19.8			(0.57	)%
Loans:
Commercial		13,582			355.9		5.30			12,846			352.0		5.51			736			3.9			(0.21	)
Construction		884			23.5		5.38			898			26.4		5.91			(14	)		(2.9	)		(0.53	)
Mortgage		7,816			197.8		5.06			7,033			185.4		5.27			783			12.4			(0.21	)
Consumer		2,472			139.1		11.35			3,014			172.2		11.49			(542	)		(33.1	)		(0.14	)
Auto		3,241			138.3		8.63			2,975			133.8		9.04			266			4.5			(0.41	)
Lease financing		1,239			37.3		6.02			1,077			32.4		6.02			162			4.9			—
Total loans		29,234			891.9		6.15			27,843			902.2		6.51			1,391			(10.3	)		(0.36	)
Total interest earning assets	$	65,192		$	1,158.9		3.58	%	$	51,893		$	1,149.4		4.45	%	$	13,299		$	9.5			(0.87	)%
Allowance for credit losses—loan portfolio		(845	)							(867	)							22
Allowance for credit losses—investment securities		(10	)							(13	)							3
Other non-interest earning assets		3,900								4,064								(164	)
Total average assets	$	68,237							$	55,077							$	13,160
Liabilities and Stockholders’ Equity:
Interest bearing deposits:
NOW and money market	$	23,895		$	16.2		0.14	%	$	17,811		$	36.8		0.42	%	$	6,084		($	20.6	)		(0.28	)%
Savings		14,876			14.0		0.19			11,290			21.9		0.39			3,586			(7.9	)		(0.20	)
Time deposits		7,184			28.1		0.79			8,211			46.1		1.13			(1,027	)		(18.0	)		(0.34	)
Total interest-bearing deposits		45,955			58.3		0.26			37,312			104.8		0.57			8,643			(46.5	)		(0.31	)
Borrowings		1,330			28.0		4.24			1,331			30.1		4.53			(1	)		(2.1	)		(0.29	)
Total interest-bearing liabilities		47,285			86.3		0.37			38,643			134.9		0.70			8,642			(48.6	)		(0.33	)
Net interest spread							3.21	%							3.75	%								(0.54	)%
Non-interest bearing deposits		14,161								10,004								4,157
Other liabilities		1,103								1,052								51
Stockholders’ equity		5,688								5,378								310
Total average liabilities and stockholders’ equity	$	68,237							$	55,077							$	13,160
Net interest income / margin on a taxable equivalent basis (Non-GAAP)				$	1,072.6		3.31	%				$	1,014.5		3.93	%				$	58.1			(0.62	)%
Taxable equivalent adjustment					105.7								90.5								15.2
Net interest income / margin non-taxable equivalent basis (GAAP)				$	966.9		2.99	%				$	924.0		3.58	%				$	42.9			(0.59	)%

16

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)

Mortgage Banking Activities

	Quarters ended									Variance						Six months ended						Variance
(In thousands)	30-Jun-21			31-Mar-21			30-Jun-20			Q2 2021 vs.Q1 2021			Q2 2021 vs.Q2 2020			30-Jun-21			30-Jun-20			2021 vs. 2020
Mortgage servicing fees, net of fair value adjustments:
Mortgage servicing fees	$	9,522		$	9,715		$	9,058		$	(193	)	$	464		$	19,237		$	20,026		$	(789	)
Mortgage servicing rights fair value adjustments		(6,239	)		512			(7,640	)		(6,751	)		1,401			(5,727	)		(12,869	)		7,142
Total mortgage servicing fees, net of fair value adjustments		3,283			10,227			1,418			(6,944	)		1,865			13,510			7,157			6,353
Net gain on sale of loans, including valuation on loans held-for-sale		5,197			4,975			5,487			222			(290	)		10,172			9,473			699
Trading account (loss) profit:
Unrealized gains (losses) on outstanding derivative positions		—			—			1,695			—			(1,695	)		—			—			—
Realized (losses) gains on closed derivative positions		(866	)		2,502			(4,823	)		(3,368	)		3,957			1,636			(6,433	)		8,069
Total trading account (loss) profit		(866	)		2,502			(3,128	)		(3,368	)		2,262			1,636			(6,433	)		8,069
Losses on repurchased loans, including interest advances[1]		(166	)		(361	)		—			195			(166	)		(527	)		—			(527	)
Total mortgage banking activities	$	7,448		$	17,343		$	3,777		$	(9,895	)	$	3,671		$	24,791		$	10,197		$	14,594

[1] The Corporation, from time to time, repurchases delinquent loans from its GNMA servicing portfolio, in compliance with Guarantor guidelines, and may incur in losses related to previously advanced interest on delinquent loans. Effective for the quarter ended September 30, 2020, the Corporation has determined to present these losses as part of its Mortgage Banking Activities, which were previously presented with the indemnity reserves on loans sold component of non-interest income. The amount of these losses for prior years were considered immaterial for reclassification.

Other Service Fees

	Quarters ended							Variance					Six months ended				Variance
(In thousands)	30-Jun-21		31-Mar-21		30-Jun-20			Q2 2021 vs.Q1 2021			Q2 2021 vs.Q2 2020		30-Jun-21		30-Jun-20		2021 vs. 2020
Other service fees:
Debit card fees	$	12,458	$	11,577	$	7,082		$	881		$	5,376	$	24,035	$	17,319	$	6,716
Insurance fees		12,773		12,828		11,301			(55	)		1,472		25,601		24,270		1,331
Credit card fees		32,726		28,691		17,762			4,035			14,964		61,417		40,948		20,469
Sale and administration of investment products		5,970		5,540		4,910			430			1,060		11,510		11,173		337
Trust fees		6,165		5,842		5,546			323			619		12,007		10,806		1,201
Other fees		6,290		6,150		5,483			140			807		12,440		12,341		99
Total other service fees	$	76,382	$	70,628	$	52,084	��	$	5,754		$	24,298	$	147,010	$	116,857	$	30,153

17

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table G - Loans and Deposits

(Unaudited)

Loans - Ending Balances

							Variance
(In thousands)	30-Jun-21		31-Mar-21		30-Jun-20		Q2 2021 vs.Q1 2021			Q2 2021 vs.Q2 2020
Loans held-in-portfolio:
Commercial	$	13,437,932	$	13,442,486	$	13,744,579	$	(4,554	)	$	(306,647	)
Construction		865,113		907,736		936,010		(42,623	)		(70,897	)
Lease financing		1,297,928		1,244,956		1,098,188		52,972			199,740
Mortgage		7,678,478		7,808,852		7,521,795		(130,374	)		156,683
Auto		3,289,027		3,203,137		2,904,324		85,890			384,703
Consumer		2,494,139		2,524,461		2,865,657		(30,322	)		(371,518	)
Total loans held-in-portfolio	$	29,062,617	$	29,131,628	$	29,070,553	$	(69,011	)	$	(7,936	)
Loans held-for-sale:
Commercial	$	1,700	$	3,549	$	6,778	$	(1,849	)	$	(5,078	)
Construction		7,000		—		—		7,000			7,000
Mortgage		76,615		80,665		61,947		(4,050	)		14,668
Total loans held-for-sale	$	85,315	$	84,214	$	68,725	$	1,101		$	16,590
Total loans	$	29,147,932	$	29,215,842	$	29,139,278	$	(67,910	)	$	8,654

Deposits - Ending Balances
							Variance
(In thousands)	30-Jun-21		31-Mar-21		30-Jun-20		Q2 2021 vs. Q1 2021			Q2 2021 vs.Q2 2020
Demand deposits [1]	$	24,497,918	$	23,450,312	$	22,731,726	$	1,047,606		$	1,766,192
Savings, NOW and money market deposits (non-brokered)		32,452,829		27,356,136		22,457,951		5,096,693			9,994,878
Savings, NOW and money market deposits (brokered)		683,021		679,832		522,929		3,189			160,092
Time deposits (non-brokered)		6,979,349		7,143,221		7,919,265		(163,872	)		(939,916	)
Time deposits (brokered CDs)		28,659		113,300		212,429		(84,641	)		(183,770	)
Total deposits	$	64,641,776	$	58,742,801	$	53,844,300	$	5,898,975		$	10,797,476

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

18

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)

30-Jun-21
Puerto Rico
	Past due												Past due 90 days or more
	30-59		60-89		90 days		Total						Non-accrual		Accruing
(In thousands)	days		days		or more		past due		Current		Loans HIP		loans		loans
Commercial multi-family	$	128	$	—	$	397	$	525	$	151,258	$	151,783	$	397	$	—
Commercial real estate:
Non-owner occupied		32,749		—		72,378		105,127		1,888,302		1,993,429		72,378		—
Owner occupied		3,995		604		79,808		84,407		1,380,022		1,464,429		79,808		—
Commercial and industrial		2,314		682		65,727		68,723		3,952,675		4,021,398		65,120		607
Construction		—		3,080		14,877		17,957		124,990		142,947		14,877		—
Mortgage		164,779		73,492		995,175		1,233,446		5,281,711		6,515,157		370,653		624,522
Leasing		6,054		2,103		2,286		10,443		1,287,485		1,297,928		2,286		—
Consumer:
Credit cards		4,371		2,826		8,021		15,218		864,912		880,130		—		8,021
Home equity lines of credit		—		—		—		—		3,489		3,489		—		—
Personal		9,405		4,444		23,861		37,710		1,227,582		1,265,292		23,861		—
Auto		39,032		7,405		13,286		59,723		3,229,304		3,289,027		13,286		—
Other		214		97		14,288		14,599		108,427		123,026		14,123		165
Total	$	263,041	$	94,733	$	1,290,104	$	1,647,878	$	19,500,157	$	21,148,035	$	656,789	$	633,315
31-Mar-21
Puerto Rico
	Past due												Past due 90 days or more
	30-59		60-89		90 days		Total						Non-accrual		Accruing
(In thousands)	days		days		or more		past due		Current		Loans HIP		loans		loans
Commercial multi-family	$	196	$	—	$	814	$	1,010	$	137,097	$	138,107	$	814	$	—
Commercial real estate:
Non-owner occupied		939		25,406		76,524		102,869		1,958,129		2,060,998		76,524		—
Owner occupied		6,749		2,114		89,752		98,615		1,413,356		1,511,971		89,752		—
Commercial and industrial		3,870		650		34,333		38,853		4,032,359		4,071,212		33,773		560
Construction		639		—		14,877		15,516		145,081		160,597		14,877		—
Mortgage		175,930		83,770		1,211,935		1,471,635		5,204,344		6,675,979		390,781		821,154
Leasing		7,564		1,408		3,040		12,012		1,232,944		1,244,956		3,040		—
Consumer:
Credit cards		4,824		3,883		10,779		19,486		858,255		877,741		—		10,779
Home equity lines of credit		—		—		46		46		3,498		3,544		—		46
Personal		10,216		6,250		25,731		42,197		1,219,094		1,261,291		25,731		—
Auto		47,396		8,783		15,405		71,584		3,131,553		3,203,137		15,405		—
Other		360		375		15,489		16,224		108,508		124,732		15,281		208
Total	$	258,683	$	132,639	$	1,498,725	$	1,890,047	$	19,444,218	$	21,334,265	$	665,978	$	832,747

19

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	$	(68	)	$	—		$	(417	)	$	(485	)	$	14,161		$	13,676		$	(417	)	$	—
Commercial real estate:
Non-owner occupied		31,810			(25,406	)		(4,146	)		2,258			(69,827	)		(67,569	)		(4,146	)		—
Owner occupied		(2,754	)		(1,510	)		(9,944	)		(14,208	)		(33,334	)		(47,542	)		(9,944	)		—
Commercial and industrial		(1,556	)		32			31,394			29,870			(79,684	)		(49,814	)		31,347			47
Construction		(639	)		3,080			—			2,441			(20,091	)		(17,650	)		—			—
Mortgage		(11,151	)		(10,278	)		(216,760	)		(238,189	)		77,367			(160,822	)		(20,128	)		(196,632	)
Leasing		(1,510	)		695			(754	)		(1,569	)		54,541			52,972			(754	)		—
Consumer:
Credit cards		(453	)		(1,057	)		(2,758	)		(4,268	)		6,657			2,389			—			(2,758	)
Home equity lines of credit		—			—			(46	)		(46	)		(9	)		(55	)		—			(46	)
Personal		(811	)		(1,806	)		(1,870	)		(4,487	)		8,488			4,001			(1,870	)		—
Auto		(8,364	)		(1,378	)		(2,119	)		(11,861	)		97,751			85,890			(2,119	)		—
Other		(146	)		(278	)		(1,201	)		(1,625	)		(81	)		(1,706	)		(1,158	)		(43	)
Total	$	4,358		$	(37,906	)	$	(208,621	)	$	(242,169	)	$	55,939		$	(186,230	)	$	(9,189	)	$	(199,432	)

20

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

June 30, 2021
Popular U.S.
	Past due												Past due 90 days or more
(In thousands)	30-59 days		60-89 days		90 days or more		Total past due		Current		Loans HIP		Non-accrual loans		Accruing loans
Commercial multi-family	$	—	$	—	$	5,949	$	5,949	$	1,733,104	$	1,739,053	$	5,949	$	—
Commercial real estate:
Non-owner occupied		—		—		374		374		2,131,860		2,132,234		374		—
Owner occupied		907		639		193		1,739		338,445		340,184		193		—
Commercial and industrial		3,070		509		1,346		4,925		1,590,497		1,595,422		1,346		—
Construction		—		—		—		—		722,166		722,166		—		—
Mortgage		2,498		5,005		13,323		20,826		1,142,495		1,163,321		13,323		—
Consumer:
Credit cards		—		—		—		—		31		31		—		—
Home equity lines of credit		501		210		6,377		7,088		74,850		81,938		6,377		—
Personal		572		579		832		1,983		135,014		136,997		832		—
Other		—		—		—		—		3,236		3,236		—		—
Total	$	7,548	$	6,942	$	28,394	$	42,884	$	7,871,698	$	7,914,582	$	28,394	$	—

March 31, 2021
Popular U.S.
	Past due												Past due 90 days or more
(In thousands)	30-59 days		60-89 days		90 days or more		Total past due		Current		Loans HIP		Non-accrual loans		Accruing loans
Commercial multi-family	$	30,185	$	—	$	—	$	30,185	$	1,724,802	$	1,754,987	$	—	$	—
Commercial real estate:
Non-owner occupied		8,280		—		392		8,672		2,034,383		2,043,055		392		—
Owner occupied		5,437		644		323		6,404		323,541		329,945		323		—
Commercial and industrial		7,226		1,321		1,201		9,748		1,522,463		1,532,211		1,192		9
Construction		11,110		—		7,523		18,633		728,506		747,139		7,523		—
Mortgage		13,032		1,762		14,793		29,587		1,103,286		1,132,873		14,793		—
Consumer:
Credit cards		—		—		—		—		22		22		—		—
Home equity lines of credit		121		10		6,855		6,986		82,631		89,617		6,855		—
Personal		1,156		666		1,086		2,908		162,540		165,448		1,086		—
Other		—		—		—		—		2,066		2,066		—		—
Total	$	76,547	$	4,403	$	32,173	$	113,123	$	7,684,240	$	7,797,363	$	32,164	$	9

21

Variance
	Past due																		Past due 90 days or more
(In thousands)	30-59 days			60-89 days			90 days or more			Total past due			Current			Loans HIP			Non-accrual loans			Accruing loans
Commercial multi-family	$	(30,185	)	$	—		$	5,949		$	(24,236	)	$	8,302		$	(15,934	)	$	5,949		$	—
Commercial real estate:
Non-owner occupied		(8,280	)		—			(18	)		(8,298	)		97,477			89,179			(18	)		—
Owner occupied		(4,530	)		(5	)		(130	)		(4,665	)		14,904			10,239			(130	)		—
Commercial and industrial		(4,156	)		(812	)		145			(4,823	)		68,034			63,211			154			(9	)
Construction		(11,110	)		—			(7,523	)		(18,633	)		(6,340	)		(24,973	)		(7,523	)		—
Mortgage		(10,534	)		3,243			(1,470	)		(8,761	)		39,209			30,448			(1,470	)		—
Consumer:
Credit cards		—			—			—			—			9			9			—			—
Home equity lines of credit		380			200			(478	)		102			(7,781	)		(7,679	)		(478	)		—
Personal		(584	)		(87	)		(254	)		(925	)		(27,526	)		(28,451	)		(254	)		—
Other		—			—			—			—			1,170			1,170			—			—
Total	$	(68,999	)	$	2,539		$	(3,779	)	$	(70,239	)	$	187,458		$	117,219		$	(3,770	)	$	(9	)

22

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)

30-Jun-21
Popular, Inc.
	Past due												Past due 90 days or more
(In thousands)	30-59 days		60-89 days		90 days or more		Total past due		Current		Loans HIP		Non-accrual loans		Accruing loans
Commercial multi-family	$	128	$	—	$	6,346	$	6,474	$	1,884,362	$	1,890,836	$	6,346	$	—
Commercial real estate:
Non-owner occupied		32,749		—		72,752		105,501		4,020,162		4,125,663		72,752		—
Owner occupied		4,902		1,243		80,001		86,146		1,718,467		1,804,613		80,001		—
Commercial and industrial		5,384		1,191		67,073		73,648		5,543,172		5,616,820		66,466		607
Construction		—		3,080		14,877		17,957		847,156		865,113		14,877		—
Mortgage		167,277		78,497		1,008,498		1,254,272		6,424,206		7,678,478		383,976		624,522
Leasing		6,054		2,103		2,286		10,443		1,287,485		1,297,928		2,286		—
Consumer:
Credit cards		4,371		2,826		8,021		15,218		864,943		880,161		—		8,021
Home equity lines of credit		501		210		6,377		7,088		78,339		85,427		6,377		—
Personal		9,977		5,023		24,693		39,693		1,362,596		1,402,289		24,693		—
Auto		39,032		7,405		13,286		59,723		3,229,304		3,289,027		13,286		—
Other		214		97		14,288		14,599		111,663		126,262		14,123		165
Total	$	270,589	$	101,675	$	1,318,498	$	1,690,762	$	27,371,855	$	29,062,617	$	685,183	$	633,315

31-Mar-21
Popular, Inc.
	Past due												Past due 90 days or more
(In thousands)	30-59 days		60-89 days		90 days or more		Total past due		Current		Loans HIP		Non-accrual loans		Accruing loans
Commercial multi-family	$	30,381	$	—	$	814	$	31,195	$	1,861,899	$	1,893,094	$	814	$	—
Commercial real estate:
Non-owner occupied		9,219		25,406		76,916		111,541		3,992,512		4,104,053		76,916		—
Owner occupied		12,186		2,758		90,075		105,019		1,736,897		1,841,916		90,075		—
Commercial and industrial		11,096		1,971		35,534		48,601		5,554,822		5,603,423		34,965		569
Construction		11,749		—		22,400		34,149		873,587		907,736		22,400		—
Mortgage		188,962		85,532		1,226,728		1,501,222		6,307,630		7,808,852		405,574		821,154
Leasing		7,564		1,408		3,040		12,012		1,232,944		1,244,956		3,040		—
Consumer:
Credit cards		4,824		3,883		10,779		19,486		858,277		877,763		—		10,779
Home equity lines of credit		121		10		6,901		7,032		86,129		93,161		6,855		46
Personal		11,372		6,916		26,817		45,105		1,381,634		1,426,739		26,817		—
Auto		47,396		8,783		15,405		71,584		3,131,553		3,203,137		15,405		—
Other		360		375		15,489		16,224		110,574		126,798		15,281		208
Total	$	335,230	$	137,042	$	1,530,898	$	2,003,170	$	27,128,458	$	29,131,628	$	698,142	$	832,756

23

Variance
	Past due																		Past due 90 days or more
(In thousands)	30-59 days			60-89 days			90 days or more			Total past due			Current			Loans HIP			Non-accrual loans			Accruing loans
Commercial multi-family	$	(30,253	)	$	—		$	5,532		$	(24,721	)	$	22,463		$	(2,258	)	$	5,532		$	—
Commercial real estate:
Non-owner occupied		23,530			(25,406	)		(4,164	)		(6,040	)		27,650			21,610			(4,164	)		—
Owner occupied		(7,284	)		(1,515	)		(10,074	)		(18,873	)		(18,430	)		(37,303	)		(10,074	)		—
Commercial and industrial		(5,712	)		(780	)		31,539			25,047			(11,650	)		13,397			31,501			38
Construction		(11,749	)		3,080			(7,523	)		(16,192	)		(26,431	)		(42,623	)		(7,523	)		—
Mortgage		(21,685	)		(7,035	)		(218,230	)		(246,950	)		116,576			(130,374	)		(21,598	)		(196,632	)
Leasing		(1,510	)		695			(754	)		(1,569	)		54,541			52,972			(754	)		—
Consumer:
Credit cards		(453	)		(1,057	)		(2,758	)		(4,268	)		6,666			2,398			—			(2,758	)
Home equity lines of credit		380			200			(524	)		56			(7,790	)		(7,734	)		(478	)		(46	)
Personal		(1,395	)		(1,893	)		(2,124	)		(5,412	)		(19,038	)		(24,450	)		(2,124	)		—
Auto		(8,364	)		(1,378	)		(2,119	)		(11,861	)		97,751			85,890			(2,119	)		—
Other		(146	)		(278	)		(1,201	)		(1,625	)		1,089			(536	)		(1,158	)		(43	)
Total	$	(64,641	)	$	(35,367	)	$	(212,400	)	$	(312,408	)	$	243,397		$	(69,011	)	$	(12,959	)	$	(199,441	)

24

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table K - Non-Performing Assets

(Unaudited)

																			Variance
(Dollars in thousands)	30-Jun-21			As a % of loans HIP by category			31-Mar-21			As a % of loans HIP by category			30-Jun-20			As a % of loans HIP by category			Q2 2021 vs. Q1 2021			Q2 2021 vs. Q2 2020
Non-accrual loans:
Commercial	$	225,565			1.7	%	$	202,770			1.5	%	$	263,129			1.9	%	$	22,795		$	(37,564	)
Construction		14,877			1.7			22,400			2.5			—			—			(7,523	)		14,877
Lease financing		2,286			0.2			3,040			0.2			4,751			0.4			(754	)		(2,465	)
Mortgage		383,976			5.0			405,574			5.2			411,406			5.5			(21,598	)		(27,430	)
Auto		13,286			0.4			15,405			0.5			22,111			0.8			(2,119	)		(8,825	)
Consumer		45,193			1.8			48,953			1.9			58,807			2.1			(3,760	)		(13,614	)
Total non-performing loans held-in-portfolio		685,183			2.4	%		698,142			2.4	%		760,204			2.6	%		(12,959	)		(75,021	)
Non-performing loans held-for-sale [1]		8,700						3,549						6,778						5,151			1,922
Other real estate owned (“OREO”)		73,272						72,060						113,940						1,212			(40,668	)
Total non-performing assets	$	767,155					$	773,751					$	880,922					$	(6,596	)	$	(113,767	)
Accruing loans past due 90 days or more [2]	$	633,315					$	832,756					$	878,776					$	(199,441	)	$	(245,461	)
Ratios:
Non-performing assets to total assets		1.06	%					1.16	%					1.40	%
Non-performing loans held-in-portfolio to loans held-in-portfolio		2.36						2.40						2.62
Allowance for credit losses to loans held-in-portfolio		2.70						2.75						3.16
Allowance for credit losses to non-performing loans, excluding loans held-for-sale		114.68						114.70						120.81

[1] Non-performing loans held-for-sale as of June 30, 2021, were $7 million in construction loans and $2 million commercial loans (March 31, 2021 - $4 million in commercial loans; June 30, 2020 - $7 million in commercial loans).

[2] It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. The balance of these loans includes $15 million at June 30, 2021, related to the rebooking of loans previously pooled into GNMA securities, in which the Corporation had a buy-back option as further described below (March 31, 2021 - $29 million; June 30, 2020 - $522 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of BPPR with an offsetting liability. While the borrowers for our serviced GNMA portfolio benefited from the moratorium, the delinquency status of these loans continued to be reported to GNMA without considering the moratorium. These balances include $363 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of June 30, 2021 (March 31, 2021 - $341 million; June 30, 2020 - $234 million). Furthermore, the Corporation has approximately $56 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation’s policy to exclude these balances from non-performing assets (March 31, 2021 - $58 million; June 30, 2020 - $62 million).

25

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio:
	Quarter ended									Quarter ended
	30-Jun-21									31-Mar-21
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	200,863		$	1,907		$	202,770		$	204,092		$	5,988		$	210,080
Plus:
New non-performing loans		39,657			7,570			47,227			7,724			1,693			9,417
Advances on existing non-performing loans		—			1			1			—			6			6
Less:
Non-performing loans transferred to OREO		(2,346	)		—			(2,346	)		(3,850	)		—			(3,850	)
Non-performing loans charged-off		(1,515	)		(624	)		(2,139	)		(2,391	)		(352	)		(2,743	)
Loans returned to accrual status / loan collections		(18,956	)		(992	)		(19,948	)		(4,712	)		(3,655	)		(8,367	)
Loans transferred to held-for-sale		—			—			—			—			(1,773	)		(1,773	)
Ending balance NPLs	$	217,703		$	7,862		$	225,565		$	200,863		$	1,907		$	202,770
Construction loans held-in-portfolio:
	Quarter ended									Quarter ended
	30-Jun-21									31-Mar-21
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	14,877		$	7,523		$	22,400		$	21,497		$	7,560		$	29,057
Plus:
New non-performing loans		—			—			—			—			12,141			12,141
Less:
Non-performing loans charged-off		—			(523	)		(523	)		(6,620	)		—			(6,620	)
Loans returned to accrual status / loan collections		—			—			—			—			(12,178	)		(12,178	)
Loans transferred to held-for-sale		—			(7,000	)		(7,000	)		—			—			—
Ending balance NPLs	$	14,877		$	—		$	14,877		$	14,877		$	7,523		$	22,400
Mortgage loans held-in-portfolio:
	Quarter ended									Quarter ended
	30-Jun-21									31-Mar-21
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	390,781		$	14,793		$	405,574		$	414,343		$	14,864		$	429,207
Plus:
New non-performing loans		43,432			4,774			48,206			58,397			4,323			62,720
Advances on existing non-performing loans		—			11			11			—			5			5
Less:
Non-performing loans transferred to OREO		(8,257	)		—			(8,257	)		(801	)		—			(801	)
Non-performing loans charged-off		(4,297	)		—			(4,297	)		(8,722	)		(1	)		(8,723	)
Loans returned to accrual status / loan collections		(51,006	)		(6,255	)		(57,261	)		(72,436	)		(4,398	)		(76,834	)
Ending balance NPLs	$	370,653		$	13,323		$	383,976		$	390,781		$	14,793		$	405,574

26

Total non-performing loans held-in-portfolio (excluding consumer):
	Quarter ended									Quarter ended
	30-Jun-21									31-Mar-21
(In thousands)	BPPR			Popular U.S.			Popular, Inc.			BPPR			Popular U.S.			Popular, Inc.
Beginning balance NPLs	$	606,521		$	24,223		$	630,744		$	639,932		$	28,412		$	668,344
Plus:
New non-performing loans		83,089			12,344			95,433			66,121			18,157			84,278
Advances on existing non-performing loans		—			12			12			—			11			11
Less:
Non-performing loans transferred to OREO		(10,603	)		—			(10,603	)		(4,651	)		—			(4,651	)
Non-performing loans charged-off		(5,812	)		(1,147	)		(6,959	)		(17,733	)		(353	)		(18,086	)
Loans returned to accrual status / loan collections		(69,962	)		(7,247	)		(77,209	)		(77,148	)		(20,231	)		(97,379	)
Loans transferred to held-for-sale		—			(7,000	)		(7,000	)		—			(1,773	)		(1,773	)
Ending balance NPLs	$	603,233		$	21,185		$	624,418		$	606,521		$	24,223		$	630,744

27

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

	Quarters ended
(Dollars in thousands)	30-Jun-21			31-Mar-21			30-Jun-20
Balance at beginning of period - loans held-in-portfolio	$	800,797		$	896,250		$	919,716
Provision for credit losses (benefit)		(17,500	)		(75,779	)		63,104
Initial allowance for credit losses - PCD Loans		1,202			1,356			567
		784,499			821,827			983,387
Net loans charged-off (recovered):
BPPR
Commercial		(9,877	)		(1,434	)		1,097
Construction		(479	)		5,917			(195	)
Lease financing		393			118			3,390
Mortgage		935			8,303			7,554
Consumer		7,545			6,570			50,297
Total BPPR		(1,483	)		19,474			62,143
Popular U.S.
Commercial		(413	)		16			(784	)
Construction		93			—			—
Mortgage		(423	)		(80	)		(19	)
Consumer		935			1,620			3,613
Total Popular U.S.		192			1,556			2,810
Total loans charged-off (recovered) - Popular, Inc.		(1,291	)		21,030			64,953
Balance at end of period - loans held-in-portfolio	$	785,790		$	800,797		$	918,434
Balance at beginning of period - unfunded commitments	$	9,569		$	15,851		$	4,466
Provision for credit losses (benefit)		367			(6,282	)		2,251
Balance at end of period - unfunded commitments [1]	$	9,936		$	9,569		$	6,717
POPULAR, INC.
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		(0.02	)%		0.29	%		0.92	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M.			-360.34	%		97.15	%
BPPR
Annualized net charge-offs (recoveries) to average loans held-in-portfolio		(0.03	)%		0.36	%		1.20	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M			-205.28	%		97.23	%
Popular U.S.
Annualized net charge-offs to average loans held-in-portfolio		0.01	%		0.08	%		0.15	%
Provision for credit losses (benefit) - loan portfolios to net charge-offs		N.M.			N.M.			95.41	%

N.M. - Not meaningful.

[1] Allowance for credit losses of unfunded commitments is presented as part of Other Liabilities in the Consolidated Statements of Financial Condition.

28

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

30-Jun-21
(Dollars in thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL	$	271,144		$	11,256		$	182,619		$	17,551		$	303,220		$	785,790
Total loans held-in-portfolio	$	13,437,932		$	865,113		$	7,678,478		$	1,297,928		$	5,783,166		$	29,062,617
ACL to loans held-in-portfolio		2.02	%		1.30	%		2.38	%		1.35	%		5.24	%		2.70	%
31-Mar-21
(Dollars in thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL	$	276,219		$	9,195		$	202,126		$	12,687		$	300,570		$	800,797
Total loans held-in-portfolio	$	13,442,486		$	907,736		$	7,808,852		$	1,244,956		$	5,727,598		$	29,131,628
ACL to loans held-in-portfolio		2.05	%		1.01	%		2.59	%		1.02	%		5.25	%		2.75	%
Variance
(Dollars in thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
Total ACL	$	(5,075	)	$	2,061		$	(19,507	)	$	4,864		$	2,650		$	(15,007	)
Total loans held-in-portfolio	$	(4,554	)	$	(42,623	)	$	(130,374	)	$	52,972		$	55,568		$	(69,011	)

29

Popular, Inc.    

Financial Supplement to Second Quarter 2021 Earnings Release    

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

(Unaudited)    

30-Jun-21
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	186,784		$	1,220		$	166,808		$	17,551		$	289,490		$	661,853
Loans held-in-portfolio	$	7,631,039		$	142,947		$	6,515,157		$	1,297,928		$	5,560,964		$	21,148,035
ACL to loans held-in-portfolio		2.45	%		0.85	%		2.56	%		1.35	%		5.21	%		3.13	%
31-Mar-21
Puerto Rico
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	197,111		$	260		$	185,805		$	12,687		$	285,793		$	681,656
Loans held-in-portfolio	$	7,782,288		$	160,597		$	6,675,979		$	1,244,956		$	5,470,445		$	21,334,265
ACL to loans held-in-portfolio		2.53	%		0.16	%		2.78	%		1.02	%		5.22	%		3.20	%
Variance
(In thousands)	Commercial			Construction			Mortgage			Lease financing			Consumer			Total
ACL	$	(10,327	)	$	960		$	(18,997	)	$	4,864		$	3,697		$	(19,803	)
Loans held-in-portfolio	$	(151,249	)	$	(17,650	)	$	(160,822	)	$	52,972		$	90,519		$	(186,230	)

30

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

30-Jun-21
Popular U.S.
(In thousands)	Commercial			Construction			Mortgage			Consumer			Total
ACL	$	84,360		$	10,036		$	15,811		$	13,730		$	123,937
Loans held-in-portfolio	$	5,806,893		$	722,166		$	1,163,321		$	222,202		$	7,914,582
ACL to loans held-in-portfolio		1.45	%		1.39	%		1.36	%		6.18	%		1.57	%
31-Mar-21
Popular U.S.
(In thousands)	Commercial			Construction			Mortgage			Consumer			Total
ACL	$	79,108		$	8,935		$	16,321		$	14,777		$	119,141
Loans held-in-portfolio	$	5,660,198		$	747,139		$	1,132,873		$	257,153		$	7,797,363
ACL to loans held-in-portfolio		1.40	%		1.20	%		1.44	%		5.75	%		1.53	%
Variance
(In thousands)	Commercial			Construction			Mortgage			Consumer			Total
ACL	$	5,252		$	1,101		$	(510	)	$	(1,047	)	$	4,796
Loans held-in-portfolio	$	146,695		$	(24,973	)	$	30,448		$	(34,951	)	$	117,219

31

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table Q - Reconciliation to GAAP Financial Measures

(Unaudited)

(In thousands, except share or per share information)	30-Jun-21			31-Mar-21			30-Jun-20
Total stockholders’ equity	$	5,814,614		$	5,897,559		$	5,780,165
Less: Preferred stock		(22,143	)		(22,143	)		(22,143	)
Less: Goodwill		(671,122	)		(671,122	)		(671,122	)
Less: Other intangibles		(20,440	)		(21,415	)		(24,511	)
Total tangible common equity	$	5,100,909		$	5,182,879		$	5,062,389
Total assets	$	72,657,293		$	66,870,268		$	62,845,352
Less: Goodwill		(671,122	)		(671,122	)		(671,122	)
Less: Other intangibles		(20,440	)		(21,415	)		(24,511	)
Total tangible assets	$	71,965,731		$	66,177,731		$	62,149,719
Tangible common equity to tangible assets		7.09	%		7.83	%		8.15	%
Common shares outstanding at end of period		80,656,480			84,379,180			84,184,927
Tangible book value per common share	$	63.24		$	61.42		$	60.13
	Quarterly average
Total stockholders’ equity [1]	$	5,683,325		$	5,693,672		$	5,274,071
Less: Preferred Stock		(22,143	)		(22,143	)		(22,143	)
Less: Goodwill		(671,121	)		(671,121	)		(671,121	)
Less: Other intangibles		(21,350	)		(22,104	)		(25,497	)
Total tangible equity	$	4,968,711		$	4,978,304		$	4,555,310
Return on average tangible common equity		17.58	%		21.37	%		11.23	%

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

CONTACTS:

Popular, Inc.

Investor Relations:

Paul J. Cardillo, 212-417-6721

Investor Relations Officer

pcardillo@popular.com

or

Media Relations:

MC González Noguera, 917-804-5253

Executive Vice President and Chief Communications & Public Affairs Officer

mc.gonzalez@popular.com

32