Business Wire | Oct 28, 2020 08:06AM EDT

Popular, Inc. Announces Third Quarter 2020 Financial Results

Oct. 28, 2020

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Oct. 28, 2020--Popular, Inc. (the "Corporation," "Popular," "we," "us," "our") (NASDAQ:BPOP) reported net income of $168.4 million for the quarter ended September 30, 2020, compared to net income of $127.6 million for the quarter ended June 30, 2020.

Ignacio Alvarez, President and Chief Executive Officer, said: "We generated $168.4 million in earnings in the third quarter, reflecting the economic rebound fueled by the unprecedented level of federal stimulus. While the economic scenario remains uncertain, the strong results reflect our diversified sources of revenue and prudent risk management. Deposits continued to grow and loan demand remains low as customers are cautious and conserving cash. Our capital and liquidity levels are robust and we are well positioned to continue to serve our customers as they manage through these uncertain times. The American Bankers Association recently recognized our commitment to the community, selecting us as one of seven banks to receive the 2020 Community Commitment Award for our financial education program.

I want to thank all our colleagues who, while facing their own personal challenges as a result of the pandemic, continue to go the extra mile to serve our customers."

Significant Events

Financial Highlights

For the third quarter of 2020, the Corporation recorded net income of $168.4 million, compared to a net income of $127.6 million for the previous quarter. The Corporation continues to monitor and be attentive to the impact of the COVID-19 pandemic, on the markets in which we operate and our results of operations, as further explained below.

The Corporation's total assets increased by $3.1 billion during the quarter to $65.9 billion, primarily due to an increase in deposits of $2.2 billion, of which $2.0 billion were from commercial and retail clients and $0.8 billion were from the public sector in Puerto Rico, driven in part by Federal and Puerto Rico Government assistance programs related to the pandemic. The net interest margin continues to reflect the increase in earning assets concentrated in investments in overnight Fed Funds, U.S. Treasury and U.S. Agency debt securities plus an average balance of $1.4 billion loans issued pursuant to the U.S. Small Business Administration's ("SBA") Payment Protection Program ("PPP"), which are all lower yielding assets. Net interest income for the quarter increased by $10.1 million, although the net interest margin declined by 19 basis points to 3.06% due to the increase in lower earning assets.

Coronavirus (COVID-19) Pandemic

The disruptions related to the COVID-19 pandemic continue to have an impact on the macroeconomic environment and therefore on the financial results of the Corporation. Although certain measures imposed by the governments of Puerto Rico, the United States and United States Virgin Islands, including lockdowns, business closures, mandatory curfews and limits to public activities, were relaxed during the second and third quarters of 2020 to allow for the gradual reopening of the economy, certain restrictions continue in place which results in many businesses not being able to operate at their full capacity. The Corporation's results for the third quarter of 2020 reflect the benefit of increased economic activity resulting from such reopening and the related improvement in the macroeconomic environment, as well as the impact of the various government stimulus programs launched in response to the pandemic.

As previously disclosed, beginning in March 2020, the Corporation implemented several financial relief programs in response to the pandemic, including loan payment moratoriums, suspensions of foreclosures and other collection activity, as well as waivers of certain fees and service charges. During the third quarter of 2020, the Corporation reinstated the imposition of the fees the Corporation elected to waive in connection with such financial relief programs and resumed its delinquent loan collection efforts. As of September 30, 2020, the Corporation had granted loan payment moratoriums to 125,736 eligible retail customers with an aggregate book value of $4.5 billion, and to 5,063 eligible commercial clients with an aggregate book value of $4.1 billion as further detailed below. COVID-19-related moratoriums were offered beginning in March of 2020. Certain clients benefitted from loan payment moratoriums offered by the Corporation since mid-January 2020 as a result of seismic activity in the Southern region of the island in January 2020. At September 30, 2020, 124,884 loans with an aggregate book value of $7.9 billion had already completed their payment moratorium period, while 5,915 loans with an aggregate book value of $0.7 billion are still under the moratorium. As of quarter end, 95% of COVID-19 payment deferrals have expired. After excluding government guaranteed loans that are still pending to complete their COVID-19 related modifications, 95% of the remaining loans were in turn current on their payments. The following table presents the moratoriums granted by loan portfolio.

Loan portfolio Total Moratoriums Granted Active Moratoriumsaffected byCovid-related Loan Book Value Percentage Loan Book Value Percentagemoratoriums count (In by count (In by thousands) portfolio thousands) portfolio

Mortgage 23,209 $ 2,812,171 35.5 % 5,240 $ 552,095 7.0 %

Auto loans 48,819 860,419 28.3 % - - - %

Lease financing 10,803 402,258 34.9 % - - - %

Credit cards 19,615 100,711 10.8 % 18 95 - %

Other consumer 23,290 340,561 19.2 % 595 8,706 0.5 %loans

Commercial 5,063 4,064,352 27.9 % 62 137,470 0.9 %

Total 130,799 $ 8,580,472 29.2 % 5,915 $ 698,366 2.4 %

The delinquency status of loans subject to the Corporation's payment moratorium programs remains unaltered during the payment deferral period and the Corporation continues to accrue interest income during such term.

The extent to which the 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, the speed and strength of economic recovery and actions taken by governmental authorities and other third parties in response thereto.

Loan repurchase transaction

During the quarter ended September 30, 2020, the Corporation completed bulk loan repurchases from its Ginnie Mae ("GNMA''), Fannie Mae ("FNMA'') and Freddie Mac (''FHMLC'') (combined ''GSEs'') loan servicing portfolios with an aggregate balance of $807.6 million. The transactions were executed to limit future exposures to principal and interest advances as well as sundry losses and to deploy liquidity to increase interest income. At September 30, 2020, loans with an aggregate unpaid principal balance of $106 million, corresponding to the portfolio acquired from FNMA and FHMLC, had been modified under the Corporation's COVID-19 relief or other loss mitigation programs.

The following table presents a summary of the impact of the transactions.

Transaction highlights (in thousands) FHLMC & GNMA ^[1] Total FNMA

Balance Sheet:

Repurchased mortgage loans $ 119,764 $ 687,871 $ 807,635

Loan premium ^[2] 6,297 - 6,297

Allowance for credit losses ("ACL'') ^[2] (4,144) - (4,144)

Advanced interest receivable 816 20,575 21,391

Income Statement:

Adjustments to indemnity reserves $ 5,052 $ - $ 5,052

Mortgage banking activities:

Mortgage servicing fees 208 3,145 3,353

Mortgage servicing rights fair value (936) (7,819) (8,755)adjustments

Losses on repurchased loans, including - (10,548) (10,548)interest advances

Total mortgage banking activities (728) (15,222) (15,950)

Pre-tax income (loss) $ 4,324 $ (15,222) $ (10,898)

[1] The GNMA repurchase transaction resulted in an increase in the mortgageportfolio of $364 million QoQ. A portion of the acquired loans amounting to$324 million were included in the prior period's ending portfolio balance, inaccordance with U.S. GAAP, due to the delinquency status of the loans and theCorporation's right but not the obligation to repurchase the assets.

[2] The repurchased FNMA loans were previously sold with credit recourse andare considered Purchased Credit Deteriorated (''PCD'') at the time ofrepurchase. Therefore, the establishment of the related ACL is recorded as agross up of the acquired loan balance that will be amortized (decreaseinterest income) over the life of the loan.

Goodwill Impairment Evaluation

The Corporation is in the process of completing its annual goodwill impairment test, using July 31, 2020 as the evaluation date. Management has continued to monitor changes in circumstances related to the impact of the COVID-19 pandemic and the effect of the current and projected interest rate environment to determine if these changes would more likely than not result in an impairment of goodwill. The Corporation expects to complete its evaluation prior to the filing of its Form 10-Q for the quarter ended September 30, 2020 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.

Popular Bank New York Branches Optimization Strategy

On October 27, 2020, Popular Bank ("PB"), the United States mainland banking subsidiary of the Corporation, authorized and approved a strategic realignment of its New York Metro branch network that will result in eleven (11) branch closures and related staffing reductions. The branch closures are expected to be completed, subject to applicable regulatory requirements, by January 29, 2021.

This strategic realignment, which will allow PB to reduce its operating expenses, leverage resources to enhance its focus on small and medium size businesses, as well as support changing customer behaviors, was approved after an assessment of PB's current branch network, including its usage, proximity to its other branches and customer needs. PB will maintain our largest regional retail network in the mainland US with twenty-seven (27) branches in its New York Metro region, located throughout Brooklyn, Bronx, Manhattan and Queens, as well as in northern New Jersey.

As a result of PB's closure of the eleven (11) New York Metro region branches, the Corporation expects to record a total pre-tax charge of approximately $24.5 million, of which $23.1 million is expected to be recognized during the fourth quarter of 2020. This aggregate pre-tax charge includes approximately $2.4 million in costs associated with severance and related benefit costs for the 83 impacted employees and charges of approximately $20.0 million associated with the impairment of right-of-use assets related to the abandonment of real property leases. The Corporation anticipates annual operating expense savings of approximately $13 million as a result of this strategic realignment. These estimates could change as the Corporation's plan evolves and becomes finalized.

Earnings Highlights



(Unaudited) Quarters ended Nine months ended

(Dollars in thousands,except per share 30-Sep-20 30-Jun-20 30-Sep-19 30-Sep-20 30-Sep-19information)

Net interest income $461,021 $450,881 $476,991 $1,384,997 $1,424,270

Provision for credit 19,452 63,104 36,539 271,551 118,555losses - loan portfolios

Provision (reversal) forcredit losses - (314) (655) - (233) -investment securities

Net interest income afterprovision for credit 441,883 388,432 440,452 1,113,679 1,305,715losses

Other non-interest income 128,767 112,055 142,712 367,465 417,468

Operating expenses 361,066 348,231 376,475 1,081,905 1,086,910

Income before income tax 209,584 152,256 206,689 399,239 636,273

Income tax expense 41,168 24,628 41,370 68,893 131,923

Net income $168,416 $127,628 $165,319 $330,346 $504,350

Net income applicable to $168,064 $127,275 $164,389 $328,941 $501,558common stock

Net income per common $2.01 $1.49 $1.71 $3.80 $5.17share - basic

Net income per common $2.00 $1.49 $1.70 $3.80 $5.16share - diluted

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

Net interest income for the quarter ended September 30, 2020 was $461.0 million compared to $450.9 million in the previous quarter, an increase of $10.1 million. Net interest income, on a taxable equivalent basis, for the third quarter of 2020 was $506.9 million, an increase of $13.9 million when compared to $493.0 million in the second quarter of 2020.

The net interest margin decreased by 19 basis points to 3.06% in the third quarter of 2020, compared to 3.25% in the previous quarter. The reduction in the margin reflects an increase in the investments in overnight Fed Funds and in U.S. Treasury and U.S. Agency debt securities plus an average balance of $1.4 billion in SBA PPP loans, compared with an average balance of $913 million for the previous quarter. These assets, although accretive to net interest income, are lower yielding assets and therefore compressed the net interest margin. The redeployment into relatively short tenured assets responds in part to the uncertainty of the tenure of the deposit growth. On a taxable equivalent basis, net interest margin was 3.37 % compared to 3.56 % in the second quarter of 2020, a decrease of 19 basis points. The main variances in net interest income on a taxable equivalent basis were:

* Higher income from money market, trading and investment securities by $6.0 million, mainly due to higher average balance of U.S. Agency mortgage backed debt securities; * higher interest income from loans by $2.4 million mainly driven by the acceleration of the discount amortization related to the prepayment of a commercial loan, higher income from mortgage and auto loans driven by higher originations and higher average balance of SBA PPP loans by approximately $0.5 billion, partially offset by lower income from personal and credit card loans. During the quarter, the Corporation recognized income of $10.3 million related to loans issued under the SBA PPP program, compared to $6.5 million in the previous quarter. As mentioned above, these loans carry a lower yield (approximately 2.88%, including the amortization of fees received under the program that at September 30, 2020 still had $41.4 million in unamortized balance); and * lower interest expense on deposits by $5.2 million, or 8 basis points, due to lower interest cost, mainly at Popular Bank

The net interest income for the Banco Popular de Puerto Rico ("BPPR") segment amounted to $394.7 million for the quarter ended September 30, 2020, compared to $387.2 million in the previous quarter. The net interest margin for the third quarter of 2020 was 3.13%, a decrease of 26 basis points when compared to 3.39% for the previous quarter. As discussed above, the net interest margin was impacted by higher average balances of SBA PPP loans by approximately $0.4 billion and of the investments in overnight Fed Funds and other short-term investments, which carry a low yield. The cost of interest-bearing deposits was 0.24%, compared to 0.28% for the previous quarter. Total cost of deposits for the quarter was 0.18%, compared to 0.22% reported in the second quarter of 2020, a decrease of 4 basis points.

Net interest income for Popular Bank ("Popular U.S." or "PB") was $76.5 million for the quarter ended September 30, 2020, compared to $73.7 million during the previous quarter. The increase of $2.8 million in net interest income was primarily due to lower deposit costs by 20 basis points, partially offset by lower income from loans, mainly personal loans. Net interest margin for the quarter was 3.18%, an increase of 11 basis points when compared to 3.07% reported in the second quarter of 2020, mainly due to a decrease in deposit costs. The cost of interest-bearing deposits was 0.98%, compared to 1.18% in the previous quarter. Total cost of deposits for the quarter was 0.81%, compared to 1.01% reported in the second quarter.

Non-interest income

Non-interest income increased by $16.7 million to $128.8 million for the quarter ended September 30, 2020, compared to $112.1 million for the quarter ended June 30, 2020. The increase in non-interest income was primarily driven by:

* Higher service charges on deposit accounts by $6.7 million, mainly in the BPPR segment, due to higher transaction volumes and the reinstatement of certain fees and service charges which were waived during the second quarter of 2020 as part of the financial relief programs implemented in response to the COVID-19 pandemic; * higher other service fees by $17.8 million, mainly at the BPPR segment, due to higher debit and credit card fees by $13.4 million as a result of increased economic activity after business disruptions caused by the COVID-19 pandemic and the reinstatement of previously waived fees; * an increase in net gain, including impairment, on equity securities of $2.7 million mainly related to a gain on sale of certain equity securities at PB; * a favorable variance in adjustments to indemnity reserves on previously sold loans of $5.3 million mainly due to a recourse reserve release related to the bulk loan repurchase from FNMA and FHLMC; and * higher other operating income by $1.9 million mainly due to higher net earnings from the combined portfolio of investments under the equity method by $2.8 million and $4.1 million in higher revenues recognized by our auto lending subsidiary principally associated to daily car rental activities. The second quarter included a gain of $5.6 million as a result of the sale and partial leaseback of the corporate office building that houses our auto lending subsidiary;

Partially offset by:

* lower income from mortgage banking activities by $13.3 million mainly due to higher unfavorable fair value adjustments on mortgage servicing rights ("MSRs") by $12.9 million, of which $8.8 million was related to the bulk loan repurchases from the Corporation's GNMA, FNMA and FHLMC loan servicing portfolio; and $10.5 million in interest advanced losses related to the loans repurchased in bulk from GNMA; partially offset by higher mortgage servicing fees by $3.9 million mainly related to fees in arrears collected and recognized in connection with the bulk repurchase transactions, and higher gains on securitization transactions and whole loan sales by $5.4 million; and * an unfavorable variance in net (loss) gain on sale of loans, including valuation adjustments, of $4.4 million mainly due to a $2.0 million negative adjustment recognized during the third quarter of 2020 on the held-for-sale taxi medallion portfolio at PB compared to a net gain of $2.2 million recognized on the sale of taxi medallions during the second quarter of 2020.

Refer to Table B for further details.

Operating expenses

Operating expenses for the third quarter of 2020 totaled $361.1 million, an increase of $12.8 million from the second quarter of 2020. The increase in operating expenses was driven primarily by:

* Higher equipment expenses by $3.2 million mainly due to higher amortization expense; * higher professional fees by $3.9 million mainly due to higher processing and technology services by $5.5 million related to increased customer activity; * higher business promotion expenses by $2.4 million due primarily to higher customer reward program expense in our credit card business by $1.9 million due to higher purchasing activities by our customers; * higher credit and debit card processing fees and higher interchange and other expenses by $1.9 million due to higher volume of transactions; and * higher other operating expenses by $4.3 million mainly due to higher operational losses reserves by $4.7 million and a higher provision for unused loan commitments by $4.3 million, partially offset by lower subsequent write-downs of foreclosed auto units by $3.5 million.

Partially offset by:

* Lower personnel cost by $3.2 million due to lower salaries by $2.1 million, lower employee deferred compensation plans expense by $1.2 million; partially offset by higher commission, incentives and other bonuses by $1.8 million due to higher production.

Full-time equivalent employees were 8,514 as of September 30, 2020, compared to 8,525 as of June 30, 2020.

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

Income taxes

For the quarter ended September 30, 2020, the Corporation recorded an income tax expense of $41.2 million, compared to $24.6 million for the previous quarter. The increase in income tax expense was mainly attributed to higher income before tax during the third quarter of 2020. The effective tax rate ("ETR") for the third quarter of 2020 was of 20%, compared to 16% in the previous quarter.

The ETR of the Corporation is impacted by the composition and source of its taxable income. For the fourth quarter of 2020, the Corporation currently expects its consolidated ETR to be within the 19% to 22% range.

Credit Quality

The Corporation's credit performance remained stable during the third quarter of 2020, aided by payment deferrals, government stimulus measures instituted in response to the COVID-19 pandemic and the resumption of collection efforts. Notwithstanding these indicators and the increase in economic activity experienced during the quarter, the effect of the pandemic and the full extent of its economic disruption remains uncertain. Management believes that the improvement over the last few years in the risk profile of the Corporation's loan portfolios better positions Popular to operate successfully under the ongoing challenging environment. Management will continue to carefully monitor the exposure of the portfolios to the COVID-19 pandemic related risks, changes in the economic outlook of the regions in which we operate and how delinquencies and NCOs evolve during the next several quarters.

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

* At September 30, 2020, total non-performing loans held-in-portfolio decreased by $25.8 million from June 30, 2020. BPPR's NPLs decreased by $32.9 million, driven by lower mortgage, consumer (mostly auto loans), and commercial NPLs by $27.2 million, $13.8 million, and $11.9 million, respectively, offset in part by an increase of $21.5 million in construction NPLs. PB's NPLs increased by $7.1 million, driven by a $9.1 million construction relationship. During the first quarter of 2020, NPLs increased by $278 million as a result of the implementation of CECL for purchased credit deteriorated ("PCD") loans. At September 30, 2020, the ratio of NPLs to total loans held-in-portfolio was 2.5% compared to 2.6% in the second quarter of 2020.

* Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $5.9 million quarter-over-quarter. In BPPR, total inflows decreased by $13.5 million driven by a mortgage inflow decrease of $41.0 million, while the commercial and construction inflows in aggregate increased by $27.6 million, mostly related to a $21.5 million construction relationship, as mentioned above. The NPL inflows at PB increased by $19.4 million from the previous quarter, mainly driven by higher construction inflows related to a $9.1 million loan from a single borrower in the New York region and commercial inflows of $10.8 million related to an administrative delinquency on a performing loan that matured and reached 90 days during its renewal process. The loan renewal was completed during the quarter and the loan was returned to accrual status before the quarter ended.

* NCOs trended significantly lower during the quarter, decreasing by $48.1 million from the second quarter of 2020, aided by the pandemic relief programs, as well as the resumption of collection and repossession activity. BPPR 's NCOs decreased by $48.4 million, primarily driven by lower consumer NCOs by $36.0 million, mostly related to auto loans. We continue to be attentive to changes in delinquencies and NCOs, as most deferrals expired during the third quarter of 2020 and given the uncertainty around the outlook of the pandemic. The Corporation's ratio of annualized net charge-offs to average loans held-in-portfolio was 0.24%, compared to 0.92% in the second quarter of 2020. Refer to Table M for further information on net charge-offs and related ratios.

* At September 30, 2020, the allowance for credit losses ("ACL") reflected an increase of $7.4 million from the second quarter of 2020 to $925.9 million. The ACL incorporates the current economic outlook using Moody's Analytics' September scenarios, as well as the effect of the credit risk rating downgrades of certain commercial borrowers during the quarter, the hotel industry representing the largest impacted segment. These increases were in part offset by lower reserves for consumer loans influenced by lower balances, delinquencies and the impact of the macroeconomic scenario. The ratio of the allowance for credit losses to loans held-in-portfolio was 3.15% in the third quarter of 2020, compared to 3.16% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 126.1%, compared to 120.8% in the previous quarter.

* Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. For the third quarter's ACL computation, the Corporation combined Moody's Analytics' September S1 (optimistic), Baseline, and S3 (pessimistic) scenarios. Probability weights were applied to each such scenario's outputs as part of the ACL estimation process. When compared to the Moody's Analytics' second quarter's June Baseline scenario, the third quarter's Baseline scenario assumes a more favorable increase in economic activity from the third quarter of 2020 through the second quarter of 2021, with continued growth thereafter. A significant second wave of COVID-19 infections as well as delays in the additional government stimulus continue to be key risks to the Baseline forecast. Among the three scenarios used in the ACL, the Baseline is assigned the highest probability, followed by the S3 scenario given the uncertainties in the economic outlook and downside risk. For the second quarter's ACL computation, the Corporation only utilized Moody's Analytics' June Baseline scenario, which assumed that a significant pickup in economic activity would occur in the third quarter of 2020 driven by federal assistance programs, followed by a period of tepid growth.

* The provision for credit losses for the third quarter of 2020 decreased by $43.7 million from the prior quarter, linked to significantly lower NCOs for the quarter. The provision for the BPPR segment decreased by $52.7 million, reflective of lower NCOs, while the provision for the PB segment increased by $9.1 million mainly due to the use of the probability weights in the estimation process. The provision to net charge-offs ratio was 115.4% in the third quarter of 2020, compared to 97.2% in the previous quarter.

Non-Performing Assets

(Unaudited)

(In thousands) 30-Sep-20 30-Jun-20 30-Sep-19

Total non-performing loans $734,368 $760,204 $557,792held-in-portfolio

Non-performing loans held-for-sale 4,070 6,778 -

Other real estate owned ("OREO") 100,592 113,940 117,928

Total non-performing assets $839,030 $880,922 $675,720

Net charge-offs for the quarter $16,859 $64,953 $67,840





Ratios:

Loans held-in-portfolio $29,392,510 $29,070,553 $27,007,975

Non-performing loans held-in-portfolio 2.50% 2.62% 2.07%to loans held-in-portfolio

Allowance for credit losses to loans 3.15 3.16 1.90held-in-portfolio

Allowance for credit losses tonon-performing loans, excluding loans 126.07 120.81 91.86held-for-sale

Refer to Table K for additional information.

Provision for Credit Losses- Loan Portfolios

(Unaudited)

Quarters ended

Nine months ended

(In thousands)

30-Sep-20

30-Jun-20

30-Sep-19

30-Sep-20

30-Sep-19

Provision for credit losses:

BPPR

$7,682

$60,423

$34,479

$181,109

$94,908

Popular U.S.

11,770

2,681

2,060

90,442

23,647

Total provision for credit losses

$19,452

$63,104

$36,539

$271,551

$118,555

Provision for CreditLosses - Loan Portfolios



(Unaudited) Quarters ended Nine months ended

(In thousands) 30-Sep-20 30-Jun-20 30-Sep-19 30-Sep-20 30-Sep-19

Provision for credit losses:

BPPR $7,682 $60,423 $34,479 $181,109 $94,908

Popular U.S. 11,770 2,681 2,060 90,442 23,647

Total provision for $19,452 $63,104 $36,539 $271,551 $118,555credit losses

Credit Quality by Segment

(Unaudited)

(In thousands)

Quarters ended

BPPR

30-Sep-20

30-Jun-20

30-Sep-19

Provision for credit losses - loan portfolios

$7,682

$60,423

$34,479

Net charge-offs

13,769

62,143

59,900

Total non-performing loans held-in-portfolio

693,676

726,603

520,773

Allowance / loans held-in-portfolio

3.48%

3.53%

2.26%

Quarters ended

Popular U.S.

30-Sep-20

30-Jun-20

30-Sep-19

Provision for credit losses - loan portfolios

$11,770

$2,681

$2,060

Net charge-offs

3,090

2,810

7,940

Total non-performing loans held-in-portfolio

40,692

33,601

37,019

Allowance / loans held-in-portfolio

2.22%

2.13%

0.87%

Credit Quality by Segment

(Unaudited)

(In thousands) Quarters ended

BPPR 30-Sep-20 30-Jun-20 30-Sep-19

Provision for credit losses - loan $7,682 $60,423 $34,479portfolios

Net charge-offs 13,769 62,143 59,900

Total non-performing loans held-in-portfolio 693,676 726,603 520,773

Allowance / loans held-in-portfolio 3.48% 3.53% 2.26%



Quarters ended

Popular U.S. 30-Sep-20 30-Jun-20 30-Sep-19

Provision for credit losses - loan $11,770 $2,681 $2,060portfolios

Net charge-offs 3,090 2,810 7,940

Total non-performing loans 40,692 33,601 37,019held-in-portfolio

Allowance / loans held-in-portfolio 2.22% 2.13% 0.87%

Financial Condition Highlights

(Unaudited)

(In thousands)

30-Sep-20

30-Jun-20

30-Sep-19

Cash and money market investments

$12,425,126

$10,060,358

$5,670,645

Investment securities

21,478,048

21,058,918

16,773,578

Loans

29,392,510

29,070,553

27,007,975

Total assets

65,910,369

62,845,352

52,480,415

Deposits

56,021,983

53,844,300

44,166,195

Borrowings

1,407,424

1,339,339

1,379,767

Total liabilities

59,998,284

57,065,187

46,571,967

Stockholders' equity

5,912,085

5,780,165

5,908,448

Total assets increased by $3.1 billion from the second quarter of 2020, driven by:

* An increase of $2.4 billion in cash and money market investments, mainly due to an increase in deposits;

* an increase of $0.4 billion in debt securities available-for-sale mainly due to purchases of U.S. agency mortgage-backed securities, partially offset by maturities and paydowns of U.S. Treasury securities; and

* an increase of $0.3 billion in loans held-in-portfolio mainly due to growth of auto loans at BPPR by $0.1 billion and an increase of $0.4 billion in mortgage loans at BPPR mainly due to loan repurchases from its GSEs loan servicing portfolio.

Total liabilities increased by $3.0 billion from the second quarter of 2020, mainly due to:

* An increase of $2.2 billion in deposits, mainly from an increase at BPPR, of which $0.8 billion related to public sector deposits and $2.0 billion related to retail and commercial demand and savings accounts, including an increase of $0.7 billion in GNMA custodial deposit balances related to the repurchases that were transferred out in early October, partially offset by a decrease of $0.5 billion in deposits at PB; and

* an increase of $0.7 billion in other liabilities due to an increase of $1.0 billion in unsettled purchases of debt securities; partially offset by a reduction in the liability for GNMA loans sold with a repurchase option of $0.4 billion as a result of the previously mentioned GNMA repurchase.

Stockholders' equity increased by approximately $131.9 million from the second quarter of 2020, principally due to net income for the quarter of $168.4 million, partially offset by declared dividends of $33.7 million on common stock and $0.3 million in dividends on preferred stock.

Common equity tier-1 ratio ("CET1"), common equity per share and tangible book value per share were 15.93%, $69.94 and $61.69, respectively, at September 30, 2020, compared to 15.71%, $68.40 and $60.13 at June 30, 2020. Refer to Table A for capital ratios.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular's business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management's current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation's control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include without limitation the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal 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, 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, 2019, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020, and in our Quarterly Report on Form 10-Q for the quarter ended September 30, 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 Wednesday, October 28, 2020 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 Saturday, November 28, 2020. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10148486.

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

Financial Condition Highlights



(Unaudited)

(In thousands) 30-Sep-20 30-Jun-20 30-Sep-19

Cash and money market investments $12,425,126 $10,060,358 $5,670,645

Investment securities 21,478,048 21,058,918 16,773,578

Loans 29,392,510 29,070,553 27,007,975

Total assets 65,910,369 62,845,352 52,480,415

Deposits 56,021,983 53,844,300 44,166,195

Borrowings 1,407,424 1,339,339 1,379,767

Total liabilities 59,998,284 57,065,187 46,571,967

Stockholders' equity 5,912,085 5,780,165 5,908,448

Total assets increased by $3.1 billion from the second quarter of 2020, driven by:

* An increase of $2.4 billion in cash and money market investments, mainly due to an increase in deposits;

* an increase of $0.4 billion in debt securities available-for-sale mainly due to purchases of U.S. agency mortgage-backed securities, partially offset by maturities and paydowns of U.S. Treasury securities; and

* an increase of $0.3 billion in loans held-in-portfolio mainly due to growth of auto loans at BPPR by $0.1 billion and an increase of $0.4 billion in mortgage loans at BPPR mainly due to loan repurchases from its GSEs loan servicing portfolio.

Total liabilities increased by $3.0 billion from the second quarter of 2020, mainly due to:

* An increase of $2.2 billion in deposits, mainly from an increase at BPPR, of which $0.8 billion related to public sector deposits and $2.0 billion related to retail and commercial demand and savings accounts, including an increase of $0.7 billion in GNMA custodial deposit balances related to the repurchases that were transferred out in early October, partially offset by a decrease of $0.5 billion in deposits at PB; and

* an increase of $0.7 billion in other liabilities due to an increase of $1.0 billion in unsettled purchases of debt securities; partially offset by a reduction in the liability for GNMA loans sold with a repurchase option of $0.4 billion as a result of the previously mentioned GNMA repurchase.

Stockholders' equity increased by approximately $131.9 million from the second quarter of 2020, principally due to net income for the quarter of $168.4 million, partially offset by declared dividends of $33.7 million on common stock and $0.3 million in dividends on preferred stock.

Common equity tier-1 ratio ("CET1"), common equity per share and tangible book value per share were 15.93%, $69.94 and $61.69, respectively, at September 30, 2020, compared to 15.71%, $68.40 and $60.13 at June 30, 2020. Refer to Table A for capital ratios.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular's business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management's current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation's control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include without limitation the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal 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, 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, 2019, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020, and in our Quarterly Report on Form 10-Q for the quarter ended September 30, 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 Wednesday, October 28, 2020 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 Saturday, November 28, 2020. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10148486.

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

Popular, Inc.

Financial Supplement to Third Quarter 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 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 RICOOPERATIONS



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



Table Q - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to Third Quarter 2020 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

Quarters ended

Nine months ended

30-Sep-20

30-Jun-20

30-Sep-19

30-Sep-20

30-Sep-19

Basic EPS

$2.01

$1.49

$1.71

$3.80

$5.17

Diluted EPS

$2.00

$1.49

$1.70

$3.80

$5.16

Average common shares outstanding

83,809,272

85,135,522

96,357,117

86,567,680

97,073,177

Average common shares outstanding - assuming dilution

83,836,151

85,161,661

96,478,327

86,645,691

97,212,396

Common shares outstanding at end of period

84,219,464

84,184,927

96,714,664

84,219,464

96,714,664

Market value per common share

$36.27

$37.17

$54.08

$36.27

$54.08

Market capitalization - (In millions)

$3,055

$3,129

$5,230

$3,055

$5,230

Return on average assets

1.06%

0.87%

1.29%

0.76%

1.35%

Return on average common equity

12.46%

9.74%

11.44%

8.21%

11.96%

Net interest margin (non-taxable equivalent basis)

3.06%

3.25%

4.00%

3.39%

4.10%

Net interest margin (taxable equivalent basis) -non-GAAP

3.37%

3.56%

4.45%

3.72%

4.51%

Common equity per share

$69.94

$68.40

$60.57

$69.94

$60.57

Tangible common book value per common share (non-GAAP) [1]

$61.69

$60.13

$53.41

$61.69

$53.41

Tangible common equity to tangible assets (non-GAAP) [1]

7.97%

8.15%

9.97%

7.97%

9.97%

Return on average tangible common equity [1]

14.32%

11.23%

13.00%

9.44%

13.65%

Tier 1 capital

16.01%

15.78%

17.46%

16.01%

17.46%

Total capital

18.49%

18.29%

20.05%

18.49%

20.05%

Tier 1 leverage

7.80%

8.13%

9.87%

7.80%

9.87%

Common Equity Tier 1 capital

15.93%

15.71%

17.46%

15.93%

17.46%

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

POPULAR, INC.

Financial Supplement to Third Quarter 2020 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)



Quarters ended Nine months ended

30-Sep-20 30-Jun-20 30-Sep-19 30-Sep-20 30-Sep-19

Basic EPS $2.01 $1.49 $1.71 $3.80 $5.17

Diluted EPS $2.00 $1.49 $1.70 $3.80 $5.16

Average common shares 83,809,272 85,135,522 96,357,117 86,567,680 97,073,177outstanding

Average common sharesoutstanding - assuming 83,836,151 85,161,661 96,478,327 86,645,691 97,212,396dilution

Common sharesoutstanding at end of 84,219,464 84,184,927 96,714,664 84,219,464 96,714,664period

Market value per common $36.27 $37.17 $54.08 $36.27 $54.08share

Market capitalization - $3,055 $3,129 $5,230 $3,055 $5,230(In millions)

Return on average assets 1.06% 0.87% 1.29% 0.76% 1.35%

Return on average common 12.46% 9.74% 11.44% 8.21% 11.96%equity

Net interest margin(non-taxable equivalent 3.06% 3.25% 4.00% 3.39% 4.10%basis)

Net interest margin(taxable equivalent 3.37% 3.56% 4.45% 3.72% 4.51%basis) -non-GAAP

Common equity per share $69.94 $68.40 $60.57 $69.94 $60.57

Tangible common bookvalue per common share $61.69 $60.13 $53.41 $61.69 $53.41(non-GAAP) [1]

Tangible common equityto tangible assets 7.97% 8.15% 9.97% 7.97% 9.97%(non-GAAP) [1]

Return on averagetangible common equity 14.32% 11.23% 13.00% 9.44% 13.65%[1]

Tier 1 capital 16.01% 15.78% 17.46% 16.01% 17.46%

Total capital 18.49% 18.29% 20.05% 18.49% 20.05%

Tier 1 leverage 7.80% 8.13% 9.87% 7.80% 9.87%

Common Equity Tier 1 15.93% 15.71% 17.46% 15.93% 17.46%capital

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

POPULAR, INC.

Financial Supplement to Third Quarter 2020 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

Quarters ended

Variance

Quarter ended

Variance

Nine months ended

Q3 2020

Q3 2020

(In thousands, except per share information)

30-Sep-20

30-Jun-20

vs. Q2 2020

30-Sep-19

vs. Q3 2019

30-Sep-20

30-Sep-19

Interest income:

Loans

$431,286

$429,670

$1,616

$453,315

$(22,029)

$1,311,402

$1,355,232

Money market investments

2,773

2,015

758

19,119

(16,346)

16,788

70,873

Investment securities

79,142

76,884

2,258

99,542

(20,400)

243,938

274,819

Total interest income

513,201

508,569

4,632

571,976

(58,775)

1,572,128

1,700,924

Interest expense:

Deposits

37,554

42,780

(5,226)

78,760

(41,206)

142,435

228,035

Short-term borrowings

416

645

(229)

1,572

(1,156)

2,109

4,828

Long-term debt

14,210

14,263

(53)

14,653

(443)

42,587

43,791

Total interest expense

52,180

57,688

(5,508)

94,985

(42,805)

187,131

276,654

Net interest income

461,021

450,881

10,140

476,991

(15,970)

1,384,997

1,424,270

Provision for credit losses - loan portfolios

19,452

63,104

(43,652)

36,539

(17,087)

271,551

118,555

Provision (reversal) for credit losses - investment securities

(314)

(655)

341

-

(314)

(233)

-

Net interest income after provision for credit losses

441,883

388,432

53,451

440,452

1,431

1,113,679

1,305,715

Service charges on deposit accounts

36,849

30,163

6,686

40,969

(4,120)

108,671

119,277

Other service fees

69,879

52,084

17,795

71,309

(1,430)

186,736

209,647

Mortgage banking activities

(9,526)

3,777

(13,303)

10,492

(20,018)

671

18,645

Net gain (loss) on sale of debt securities

41

-

41

(20)

61

41

(20)

Net gain, including impairment, on equity securities

5,150

2,447

2,703

213

4,937

4,869

2,174

Net profit on trading account debt securities

20

82

(62)

295

(275)

593

977

Net (loss) gain on sale of loans, including valuation adjustments on loans held-for-sale

(2,198)

2,222

(4,420)

-

(2,198)

981

-

Adjustments (expense) to indemnity reserves on loans sold

4,183

(1,160)

5,343

(3,411)

7,594

(1,770)

(1,664)

Other operating income

24,369

22,440

1,929

22,865

1,504

66,673

68,432

Total non-interest income

128,767

112,055

16,712

142,712

(13,945)

367,465

417,468

Operating expenses:

Personnel costs

Salaries

91,891

93,969

(2,078)

90,016

1,875

278,116

260,627

Commissions, incentives and other bonuses

17,849

16,076

1,773

22,360

(4,511)

59,183

70,757

Pension, postretirement and medical insurance

10,639

11,392

(753)

10,356

283

31,669

30,523

Other personnel costs, including payroll taxes

15,562

17,729

(2,167)

24,950

(9,388)

52,970

70,391

Total personnel costs

135,941

139,166

(3,225)

147,682

(11,741)

421,938

432,298

Net occupancy expenses

25,907

25,487

420

24,595

1,312

76,552

71,431

Equipment expenses

24,088

20,844

3,244

21,596

2,492

66,537

62,624

Other taxes

13,918

13,323

595

14,028

(110)

40,922

38,267

Professional fees

Collections, appraisals and other credit related fees

2,862

2,897

(35)

4,131

(1,269)

9,640

12,596

Programming, processing and other technology services

64,876

59,387

5,489

63,092

1,784

187,082

184,303

Legal fees, excluding collections

2,707

2,184

523

2,415

292

7,877

10,350

Other professional fees

26,029

28,079

(2,050)

28,923

(2,894)

85,493

74,026

Total professional fees

96,474

92,547

3,927

98,561

(2,087)

290,092

281,275

Communications

5,694

5,574

120

5,881

(187)

17,222

17,685

Business promotion

14,664

12,281

2,383

18,365

(3,701)

41,142

52,158

FDIC deposit insurance

6,568

5,340

1,228

2,923

3,645

16,988

13,007

POPULAR, INC.

Financial Supplement to Third Quarter 2020 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

Quarters ended Variance Quarter Variance Nine months ended ended

Q3 2020 Q3 2020

(In thousands, vs. Q2 vs. Q3except per share 30-Sep-20 30-Jun-20 2020 30-Sep-19 2019 30-Sep-20 30-Sep-19information)

Interest income:

Loans $431,286 $429,670 $1,616 $453,315 $ $1,311,402 $1,355,232 (22,029)

Money market 2,773 2,015 758 19,119 (16,346) 16,788 70,873 investments

Investment 79,142 76,884 2,258 99,542 (20,400) 243,938 274,819 securities

Total interest 513,201 508,569 4,632 571,976 (58,775) 1,572,128 1,700,924 income

Interest expense:

Deposits 37,554 42,780 (5,226) 78,760 (41,206) 142,435 228,035

Short-term 416 645 (229) 1,572 (1,156) 2,109 4,828 borrowings

Long-term debt 14,210 14,263 (53) 14,653 (443) 42,587 43,791

Total interest 52,180 57,688 (5,508) 94,985 (42,805) 187,131 276,654 expense

Net interest 461,021 450,881 10,140 476,991 (15,970) 1,384,997 1,424,270income

Provision forcredit losses - 19,452 63,104 (43,652) 36,539 (17,087) 271,551 118,555loan portfolios

Provision(reversal) forcredit losses - (314) (655) 341 - (314) (233) -investmentsecurities

Net interestincome after 441,883 388,432 53,451 440,452 1,431 1,113,679 1,305,715provision forcredit losses

Service chargeson deposit 36,849 30,163 6,686 40,969 (4,120) 108,671 119,277accounts

Other service 69,879 52,084 17,795 71,309 (1,430) 186,736 209,647fees

Mortgage banking (9,526) 3,777 (13,303) 10,492 (20,018) 671 18,645activities

Net gain (loss)on sale of debt 41 - 41 (20) 61 41 (20)securities

Net gain,includingimpairment, on 5,150 2,447 2,703 213 4,937 4,869 2,174equitysecurities

Net profit ontrading account 20 82 (62) 295 (275) 593 977debt securities

Net (loss) gainon sale ofloans, includingvaluation (2,198) 2,222 (4,420) - (2,198) 981 -adjustments onloansheld-for-sale

Adjustments(expense) toindemnity 4,183 (1,160) 5,343 (3,411) 7,594 (1,770) (1,664)reserves onloans sold

Other operating 24,369 22,440 1,929 22,865 1,504 66,673 68,432income

Total non-interest 128,767 112,055 16,712 142,712 (13,945) 367,465 417,468 income

Operating expenses:

Personnel costs

Salaries 91,891 93,969 (2,078) 90,016 1,875 278,116 260,627

Commissions, incentives and 17,849 16,076 1,773 22,360 (4,511) 59,183 70,757 other bonuses

Pension, postretirement 10,639 11,392 (753) 10,356 283 31,669 30,523 and medical insurance

Other personnel costs, 15,562 17,729 (2,167) 24,950 (9,388) 52,970 70,391 including payroll taxes

Total personnel 135,941 139,166 (3,225) 147,682 (11,741) 421,938 432,298 costs

Net occupancy 25,907 25,487 420 24,595 1,312 76,552 71,431expenses

Equipment 24,088 20,844 3,244 21,596 2,492 66,537 62,624expenses

Other taxes 13,918 13,323 595 14,028 (110) 40,922 38,267

Professional fees

Collections, appraisals and 2,862 2,897 (35) 4,131 (1,269) 9,640 12,596 other credit related fees

Programming, processing and other 64,876 59,387 5,489 63,092 1,784 187,082 184,303 technology services

Legal fees, excluding 2,707 2,184 523 2,415 292 7,877 10,350 collections

Other professional 26,029 28,079 (2,050) 28,923 (2,894) 85,493 74,026 fees

Total professional 96,474 92,547 3,927 98,561 (2,087) 290,092 281,275 fees

Communications 5,694 5,574 120 5,881 (187) 17,222 17,685

Business 14,664 12,281 2,383 18,365 (3,701) 41,142 52,158promotion

FDIC deposit 6,568 5,340 1,228 2,923 3,645 16,988 13,007insurance

Other real estate owned (OREO) (income) expenses

(1,615)

(344)

(1,271)

(185)

(1,430)

520

3,729

Credit and debit card processing, volume, interchange and other expenses

11,744

9,873

1,871

9,450

2,294

31,899

27,573

Other operating expenses

Operational losses

8,837

4,128

4,709

8,832

5

21,339

18,498

All other

17,770

18,216

(446)

22,348

(4,578)

51,409

61,283

Total other operating expenses

26,607

22,344

4,263

31,180

(4,573)

72,748

79,781

Amortization of intangibles

1,076

1,796

(720)

2,399

(1,323)

5,345

7,082

Total operating expenses

361,066

348,231

12,835

376,475

(15,409)

1,081,905

1,086,910

Income before income tax

209,584

152,256

57,328

206,689

2,895

399,239

636,273

Income tax expense

41,168

24,628

16,540

41,370

(202)

68,893

131,923

Net income

$168,416

$127,628

$40,788

$165,319

$3,097

$330,346

$504,350

Net income applicable to common stock

$168,064

$127,275

$40,789

$164,389

$3,675

$328,941

$501,558

Net income per common share - basic

$2.01

$1.49

$0.52

$1.71

$0.30

$3.80

$5.17

Net income per common share - diluted

$2.00

$1.49

$0.51

$1.70

$0.30

$3.80

$5.16

Dividends Declared per Common Share

$0.40

$0.40

$-

$0.30

$0.10

$1.20

$0.90

Other realestate owned (1,615) (344) (1,271) (185) (1,430) 520 3,729(OREO) (income)expenses

Credit anddebit cardprocessing, 11,744 9,873 1,871 9,450 2,294 31,899 27,573volume,interchange andother expenses

Other operating expenses

Operational 8,837 4,128 4,709 8,832 5 21,339 18,498 losses

All other 17,770 18,216 (446) 22,348 (4,578) 51,409 61,283

Total other operating 26,607 22,344 4,263 31,180 (4,573) 72,748 79,781 expenses

Amortization of 1,076 1,796 (720) 2,399 (1,323) 5,345 7,082intangibles

Total operating 361,066 348,231 12,835 376,475 (15,409) 1,081,905 1,086,910 expenses

Income before 209,584 152,256 57,328 206,689 2,895 399,239 636,273income tax

Income tax 41,168 24,628 16,540 41,370 (202) 68,893 131,923expense

Net income $168,416 $127,628 $40,788 $165,319 $3,097 $330,346 $504,350

Net incomeapplicable to $168,064 $127,275 $40,789 $164,389 $3,675 $328,941 $501,558common stock

Net income percommon share - $2.01 $1.49 $0.52 $1.71 $0.30 $3.80 $5.17basic

Net income percommon share - $2.00 $1.49 $0.51 $1.70 $0.30 $3.80 $5.16diluted

DividendsDeclared per $0.40 $0.40 $- $0.30 $0.10 $1.20 $0.90Common Share

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

Variance

Q3 2020 vs.

(In thousands)

30-Sep-20

30-Jun-20

30-Sep-19

Q2 2020

Assets:

Cash and due from banks

$565,202

$435,080

$502,060

$130,122

Money market investments

11,859,924

9,625,278

5,168,585

2,234,646

Trading account debt securities, at fair value

33,053

33,560

36,303

(507)

Debt securities available-for-sale, at fair value

21,177,839

20,763,453

16,479,110

414,386

Debt securities held-to-maturity, at amortized cost

93,163

95,429

97,707

(2,266)

Less: Allowance for credit losses

12,421

12,735

-

(314)

Total debt securities held-to-maturity, net

80,742

82,694

97,707

(1,952)

Equity securities

173,993

166,476

160,458

7,517

Loans held-for-sale, at lower of cost or fair value

102,760

68,725

56,370

34,035

Loans held-in-portfolio

29,586,348

29,250,076

27,181,241

336,272

Less: Unearned income

193,838

179,523

173,266

14,315

Allowance for credit losses

925,850

918,434

512,365

7,416

Total loans held-in-portfolio, net

28,466,660

28,152,119

26,495,610

314,541

Premises and equipment, net

510,473

513,680

547,063

(3,207)

Other real estate

100,592

113,940

117,928

(13,348)

Accrued income receivable

204,233

220,126

164,778

(15,893)

Mortgage servicing rights, at fair value

123,552

141,144

150,652

(17,592)

Other assets

1,816,706

1,833,444

1,811,190

(16,738)

Goodwill

671,122

671,122

671,122

-

Other intangible assets

23,518

24,511

21,479

(993)

Total assets

$65,910,369

$62,845,352

$52,480,415

$3,065,017

Liabilities and Stockholders' Equity:

Liabilities:

Deposits:

Non-interest bearing

$13,546,432

$12,520,510

$8,771,970

$1,025,922

Interest bearing

42,475,551

41,323,790

35,394,225

1,151,761

Total deposits

56,021,983

53,844,300

44,166,195

2,177,683

Assets sold under agreements to repurchase

106,028

153,065

213,097

(47,037)

Other short-term borrowings

100,000

-

-

100,000

Notes payable

1,201,396

1,186,274

1,166,670

15,122

Other liabilities

2,568,877

1,881,548

1,026,005

687,329

Total liabilities

59,998,284

57,065,187

46,571,967

2,933,097

Stockholders' equity:

Preferred stock

22,143

22,143

50,160

-

Common stock

1,045

1,044

1,044

1

Surplus

4,521,689

4,520,333

4,317,556

1,356

Retained earnings

2,168,153

2,033,782

2,071,198

134,371

Treasury stock

(1,016,361)

(1,016,486)

(392,630)

125

Accumulated other comprehensive income (loss), net of tax

215,416

219,349

(138,880)

(3,933)

Total stockholders' equity

5,912,085

5,780,165

5,908,448

131,920

Total liabilities and stockholders' equity

$65,910,369

$62,845,352

$52,480,415

$3,065,017

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

Variance

Q3 2020 vs.

(In thousands) 30-Sep-20 30-Jun-20 30-Sep-19 Q2 2020

Assets:

Cash and due from banks $565,202 $435,080 $502,060 $130,122

Money market investments 11,859,924 9,625,278 5,168,585 2,234,646

Trading account debt securities, 33,053 33,560 36,303 (507)at fair value

Debt securitiesavailable-for-sale, at fair 21,177,839 20,763,453 16,479,110 414,386value

Debt securitiesheld-to-maturity, at amortized 93,163 95,429 97,707 (2,266)cost

Less: Allowance for credit 12,421 12,735 - (314) losses

Total debt securities 80,742 82,694 97,707 (1,952) held-to-maturity, net

Equity securities 173,993 166,476 160,458 7,517

Loans held-for-sale, at lower of 102,760 68,725 56,370 34,035cost or fair value

Loans held-in-portfolio 29,586,348 29,250,076 27,181,241 336,272

Less: Unearned income 193,838 179,523 173,266 14,315

Allowance for credit losses 925,850 918,434 512,365 7,416

Total loans 28,466,660 28,152,119 26,495,610 314,541 held-in-portfolio, net

Premises and equipment, net 510,473 513,680 547,063 (3,207)

Other real estate 100,592 113,940 117,928 (13,348)

Accrued income receivable 204,233 220,126 164,778 (15,893)

Mortgage servicing rights, at 123,552 141,144 150,652 (17,592)fair value

Other assets 1,816,706 1,833,444 1,811,190 (16,738)

Goodwill 671,122 671,122 671,122 -

Other intangible assets 23,518 24,511 21,479 (993)

Total assets $65,910,369 $62,845,352 $52,480,415 $3,065,017

Liabilities and Stockholders' Equity:

Liabilities:

Deposits:

Non-interest bearing $13,546,432 $12,520,510 $8,771,970 $1,025,922

Interest bearing 42,475,551 41,323,790 35,394,225 1,151,761

Total deposits 56,021,983 53,844,300 44,166,195 2,177,683

Assets sold under agreements to 106,028 153,065 213,097 (47,037)repurchase

Other short-term borrowings 100,000 - - 100,000

Notes payable 1,201,396 1,186,274 1,166,670 15,122

Other liabilities 2,568,877 1,881,548 1,026,005 687,329

Total liabilities 59,998,284 57,065,187 46,571,967 2,933,097

Stockholders' equity:

Preferred stock 22,143 22,143 50,160 -

Common stock 1,045 1,044 1,044 1

Surplus 4,521,689 4,520,333 4,317,556 1,356

Retained earnings 2,168,153 2,033,782 2,071,198 134,371

Treasury stock (1,016,361) (1,016,486) (392,630) 125

Accumulated other comprehensive 215,416 219,349 (138,880) (3,933)income (loss), net of tax

Total stockholders' equity 5,912,085 5,780,165 5,908,448 131,920

Total liabilities and $65,910,369 $62,845,352 $52,480,415 $3,065,017stockholders' equity

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

Quarters ended

Variance

30-Sep-20

30-Jun-20

30-Sep-19

Q3 2020 vs. Q2 2020

Q3 2020 vs. Q3 2019

($ 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

$31,337

$117.5

1.49

%

$27,356

$111.5

1.64

%

$20,617

$159.5

3.08

%

$3,981

$6.0

(0.15)

%

$10,720

($42.0)

(1.59)

%

Loans:

Commercial

13,669

170.1

4.95

13,350

168.8

5.09

12,167

187.3

6.11

319

1.3

(0.14)

1,502

(17.2)

(1.16)

Construction

930

13.3

5.67

935

13.2

5.69

809

13.3

6.50

(5)

0.1

(0.02)

121

-

(0.83)

Mortgage

7,094

95.8

5.40

7,038

92.2

5.24

7,127

95.7

5.37

56

3.6

0.16

(33)

0.1

0.03

Consumer

2,722

76.7

11.21

2,918

82.9

11.43

2,918

86.5

11.77

(196)

(6.2)

(0.22)

(196)

(9.8)

(0.56)

Auto

3,006

68.6

9.08

2,957

66.0

8.98

2,867

68.2

9.44

49

2.6

0.10

139

0.4

(0.36)

Lease financing

1,122

17.1

6.08

1,082

16.1

5.97

1,004

15.1

6.03

40

1.0

0.11

118

2.0

0.05

Total loans

28,543

441.6

6.16

28,280

439.2

6.24

26,892

466.1

6.89

263

2.4

(0.08)

1,651

(24.5)

(0.73)

Total interest earning assets

$59,880

$559.1

3.72

%

$55,636

$550.7

3.98

%

$47,509

$625.6

5.24

%

$4,244

$8.4

(0.26)

%

$12,371

$(66.5)

(1.52)

%

Allowance for credit losses - loan portfolio

(923)

(926)

(532)

3

(391)

Allowance for credit losses - investment securities

(13)

(13)

-

-

(13)

Other non-interest earning assets

4,176

4,100

3,964

76

212

Total average assets

$63,120

$58,797

$50,941

$4,323

$12,179

Liabilities and Stockholders' Equity:

Interest bearing deposits:

NOW and money market

$21,225

$9.1

0.17

%

$19,392

$11.6

0.24

%

$15,958

$37.7

0.94

%

$1,833

$(2.5)

(0.07)

%

$5,267

$(28.6)

(0.77)

%

Savings

13,103

8.3

0.25

11,856

10.2

0.35

10,241

11.8

0.46

1,247

(1.9)

(0.10)

2,862

(3.5)

(0.21)

Time deposits

7,810

20.2

1.03

8,730

21.0

0.97

7,829

29.3

1.48

(920)

(0.8)

0.06

(19)

(9.1)

(0.45)

Total interest-bearing deposits

42,138

37.6

0.35

39,978

42.8

0.43

34,028

78.8

0.92

2,160

(5.2)

(0.08)

8,110

(41.2)

(0.57)

Borrowings

1,358

14.6

4.31

1,336

14.9

4.48

1,440

16.2

4.51

22

(0.3)

(0.17)

(82)

(1.6)

(0.20)

Total interest-bearing liabilities

43,496

52.2

0.48

41,314

57.7

0.56

35,468

95.0

1.06

2,182

(5.5)

(0.08)

8,028

(42.8)

(0.58)

Net interest spread

3.24

%

3.42

%

4.18

%

(0.18)

%

(0.94)

%

Non-interest bearing deposits

12,806

11,006

8,794

1,800

4,012

Other liabilities

1,435

1,203

926

232

509

Stockholders' equity

5,383

5,274

5,753

109

(370)

Total average liabilities and stockholders' equity

$63,120

$58,797

$50,941

$4,323

$12,179

Net interest income / margin on a taxable equivalent basis (Non-GAAP)

$506.9

3.37

%

$493.0

3.56

%

$530.6

4.45

%

$13.9

(0.19)

%

($23.7)

(1.08)

%

Taxable equivalent adjustment

45.8

42.1

53.7

3.7

(7.9)

Net interest income / margin non-taxable equivalent basis (GAAP)

$461.0

3.06

%

$450.9

3.25

%

$476.9

4.00

%

$10.1

(0.19)

%

($15.9)

(0.94)

%

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)



Quarters ended Variance

30-Sep-20 30-Jun-20 30-Sep-19 Q3 2020 vs. Q2 2020 Q3 2020 vs. Q3 2019

($ amounts in Average Income/ Yield Average Income/ Yield Average Income/ Yield Average Income/ Yield/ Average Income/ Yield/millions) balance Expense / balance Expense / balance Expense / balance Expense Rate balance Expense Rate Rate Rate Rate

Assets:

Interest earning assets:

Money market, trading and $31,337 $117.5 1.49 % $27,356 $111.5 1.64 % $20,617 $159.5 3.08 % $3,981 $6.0 (0.15) % $10,720 ($42.0) (1.59) % investment securities

Loans:

Commercial 13,669 170.1 4.95 13,350 168.8 5.09 12,167 187.3 6.11 319 1.3 (0.14) 1,502 (17.2) (1.16)

Construction 930 13.3 5.67 935 13.2 5.69 809 13.3 6.50 (5) 0.1 (0.02) 121 - (0.83)

Mortgage 7,094 95.8 5.40 7,038 92.2 5.24 7,127 95.7 5.37 56 3.6 0.16 (33) 0.1 0.03

Consumer 2,722 76.7 11.21 2,918 82.9 11.43 2,918 86.5 11.77 (196) (6.2) (0.22) (196) (9.8) (0.56)

Auto 3,006 68.6 9.08 2,957 66.0 8.98 2,867 68.2 9.44 49 2.6 0.10 139 0.4 (0.36)

Lease financing 1,122 17.1 6.08 1,082 16.1 5.97 1,004 15.1 6.03 40 1.0 0.11 118 2.0 0.05

Total loans 28,543 441.6 6.16 28,280 439.2 6.24 26,892 466.1 6.89 263 2.4 (0.08) 1,651 (24.5) (0.73)

Total interest $59,880 $559.1 3.72 % $55,636 $550.7 3.98 % $47,509 $625.6 5.24 % $4,244 $8.4 (0.26) % $12,371 $(66.5) (1.52) % earning assets

Allowance for credit losses - (923) (926) (532) 3 (391) loan portfolio

Allowance for credit losses - (13) (13) - - (13) investment securities

Other non-interest 4,176 4,100 3,964 76 212 earning assets

Total average $63,120 $58,797 $50,941 $4,323 $12,179 assets

Liabilities and Stockholders' Equity:

Interest bearing deposits:

NOW and money $21,225 $9.1 0.17 % $19,392 $11.6 0.24 % $15,958 $37.7 0.94 % $1,833 $(2.5) (0.07) % $5,267 $(28.6) (0.77) % market

Savings 13,103 8.3 0.25 11,856 10.2 0.35 10,241 11.8 0.46 1,247 (1.9) (0.10) 2,862 (3.5) (0.21)

Time deposits 7,810 20.2 1.03 8,730 21.0 0.97 7,829 29.3 1.48 (920) (0.8) 0.06 (19) (9.1) (0.45)

Total interest-bearing 42,138 37.6 0.35 39,978 42.8 0.43 34,028 78.8 0.92 2,160 (5.2) (0.08) 8,110 (41.2) (0.57) deposits

Borrowings 1,358 14.6 4.31 1,336 14.9 4.48 1,440 16.2 4.51 22 (0.3) (0.17) (82) (1.6) (0.20)

Total interest-bearing 43,496 52.2 0.48 41,314 57.7 0.56 35,468 95.0 1.06 2,182 (5.5) (0.08) 8,028 (42.8) (0.58) liabilities

Net interest 3.24 % 3.42 % 4.18 % (0.18) % (0.94) % spread

Non-interest 12,806 11,006 8,794 1,800 4,012 bearing deposits

Other liabilities 1,435 1,203 926 232 509

Stockholders' 5,383 5,274 5,753 109 (370) equity

Total average liabilities and $63,120 $58,797 $50,941 $4,323 $12,179 stockholders' equity

Net interest income / marginon a taxable equivalent $506.9 3.37 % $493.0 3.56 % $530.6 4.45 % $13.9 (0.19) % ($23.7) (1.08) %basis (Non-GAAP)

Taxable equivalent 45.8 42.1 53.7 3.7 (7.9) adjustment



Net interest income / marginnon-taxable equivalent basis $461.0 3.06 % $450.9 3.25 % $476.9 4.00 % $10.1 (0.19) % ($15.9) (0.94) %(GAAP)

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

Nine months ended

30-Sep-20

30-Sep-19

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

$26,497

$364.7

1.84

%

$19,691

$450.4

3.06

%

$6,806

($85.7)

(1.22)

%

Loans not covered under loss-sharing agreements with the FDIC:

Commercial

13,122

522.1

5.31

12,137

562.4

6.20

985

(40.3)

(0.89)

Construction

909

39.6

5.83

807

40.4

6.69

102

(0.8)

(0.86)

Mortgage

7,054

281.2

5.32

7,125

286.3

5.36

(71)

(5.1)

(0.04)

Consumer

2,916

248.9

11.40

2,865

254.6

11.88

51

(5.7)

(0.48)

Auto

2,985

202.4

9.06

2,807

203.5

9.69

178

(1.1)

(0.63)

Lease financing

1,092

49.5

6.04

973

44.2

6.06

119

5.3

(0.02)

Total loans

28,078

1,343.7

6.39

26,714

1,391.4

6.96

1,364

(47.7)

(0.57)

Total interest earning assets

$54,575

$1,708.4

4.18

%

$46,405

$1,841.8

5.30

%

$8,170

($133.4)

(1.12)

%

Allowance for credit losses - loan portfolio

(886)

(553)

(333)

Allowance for credit losses - investment securities

(13)

-

(13)

Other non-interest earning assets

4,100

3,944

156

Total average assets

$57,776

$49,796

$7,980

Liabilities and Stockholders' Equity:

Interest bearing deposits:

NOW and money market

$18,956

$45.9

0.32

%

$14,994

$110.7

0.99

%

$3,962

($64.8)

(0.67)

%

Savings

11,899

30.2

0.34

10,053

32.2

0.43

1,846

(2.0)

(0.09)

Time deposits

8,076

66.3

1.10

7,778

85.1

1.46

298

(18.8)

(0.36)

Total interest-bearing deposits

38,931

142.4

0.49

32,825

228.0

0.93

6,106

(85.6)

(0.44)

Borrowings

1,340

44.7

4.45

1,452

48.6

4.47

(112)

(3.9)

(0.02)

Total interest-bearing liabilities

40,271

187.1

0.62

34,277

276.6

1.08

5,994

(89.5)

(0.46)

Net interest spread

3.56

%

4.22

%

(0.66)

%

Non-interest bearing deposits

10,945

8,871

2,074

Other liabilities

1,180

993

187

Stockholders' equity

5,380

5,655

(275)

Total average liabilities and stockholders' equity

$57,776

$49,796

$7,980

Net interest income / margin on a taxable equivalent basis (Non-GAAP)

$1,521.3

3.72

%

$1,565.2

4.51

%

($43.9)

(0.79)

%

Taxable equivalent adjustment

136.3

140.9

(4.6)

Net interest income / margin non-taxable equivalent basis (GAAP)

$1,385.0

3.39

%

$1,424.3

4.10

%

($39.3)

(0.71)

%

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

Nine months ended

30-Sep-20 30-Sep-19 Variance

Average Income/ Yield Average Income/ Yield Average Income/ Yield/ / /

($ amounts in balance Expense Rate balance Expense Rate balance Expense Rate millions)

Assets:

Interest earning assets:

Money market, trading and $26,497 $364.7 1.84 % $19,691 $450.4 3.06 % $6,806 ($85.7) (1.22) % investment securities

Loans not covered under loss-sharing agreements with the FDIC:

Commercial 13,122 522.1 5.31 12,137 562.4 6.20 985 (40.3) (0.89)

Construction 909 39.6 5.83 807 40.4 6.69 102 (0.8) (0.86)

Mortgage 7,054 281.2 5.32 7,125 286.3 5.36 (71) (5.1) (0.04)

Consumer 2,916 248.9 11.40 2,865 254.6 11.88 51 (5.7) (0.48)

Auto 2,985 202.4 9.06 2,807 203.5 9.69 178 (1.1) (0.63)

Lease financing 1,092 49.5 6.04 973 44.2 6.06 119 5.3 (0.02)

Total loans 28,078 1,343.7 6.39 26,714 1,391.4 6.96 1,364 (47.7) (0.57)

Total interest $54,575 $1,708.4 4.18 % $46,405 $1,841.8 5.30 % $8,170 ($133.4) (1.12) % earning assets

Allowance for credit losses - (886) (553) (333) loan portfolio

Allowance for credit losses - (13) - (13) investment securities

Other non-interest 4,100 3,944 156 earning assets

Total average $57,776 $49,796 $7,980 assets

Liabilities andStockholders' Equity:

Interest bearing deposits:

NOW and money $18,956 $45.9 0.32 % $14,994 $110.7 0.99 % $3,962 ($64.8) (0.67) % market

Savings 11,899 30.2 0.34 10,053 32.2 0.43 1,846 (2.0) (0.09)

Time deposits 8,076 66.3 1.10 7,778 85.1 1.46 298 (18.8) (0.36)

Total interest-bearing 38,931 142.4 0.49 32,825 228.0 0.93 6,106 (85.6) (0.44) deposits

Borrowings 1,340 44.7 4.45 1,452 48.6 4.47 (112) (3.9) (0.02)

Total interest-bearing 40,271 187.1 0.62 34,277 276.6 1.08 5,994 (89.5) (0.46) liabilities

Net interest 3.56 % 4.22 % (0.66) % spread

Non-interest 10,945 8,871 2,074 bearing deposits

Other liabilities 1,180 993 187

Stockholders' 5,380 5,655 (275) equity

Total average liabilities and $57,776 $49,796 $7,980 stockholders' equity

Net interest income / marginon a taxable equivalent $1,521.3 3.72 % $1,565.2 4.51 % ($43.9) (0.79) %basis (Non-GAAP)

Taxable equivalent 136.3 140.9 (4.6) adjustment



Net interest income / marginnon-taxable equivalent basis $1,385.0 3.39 % $1,424.3 4.10 % ($39.3) (0.71) %(GAAP)

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)

Mortgage Banking Activities

Quarters ended

Variance

Nine months ended

Variance

(In thousands)

30-Sep-20

30-Jun-20

30-Sep-19

Q3 2020 vs.Q2 2020

Q3 2020 vs.Q3 2019

30-Sep-20

30-Sep-19

2020 vs. 2019

Mortgage servicing fees, net of fair value adjustments:

Mortgage servicing fees

$12,966

$9,058

$11,797

$3,908

$1,169

$32,992

$35,400

$(2,408)

Mortgage servicing rights fair value adjustments

(20,491)

(7,640)

(4,842)

(12,851)

(15,649)

(33,360)

(25,853)

(7,507)

Total mortgage servicing fees, net of fair value adjustments

(7,525)

1,418

6,955

(8,943)

(14,480)

(368)

9,547

(9,915)

Net gain on sale of loans, including valuation on loans held-for-sale

10,916

5,487

5,421

5,429

5,495

20,389

14,695

5,694

Trading account (loss) profit:

Unrealized (losses) gains on outstanding derivative positions

(4)

1,695

227

(1,699)

(231)

(4)

-

(4)

Realized losses on closed derivative positions

(1,958)

(4,823)

(2,111)

2,865

153

(8,391)

(5,555)

(2,836)

Total trading account loss

(1,962)

(3,128)

(1,884)

1,166

(78)

(8,395)

(5,555)

(2,840)

Losses on repurchased loans, including interest advances[1]

(10,955)

-

-

(10,955)

(10,955)

(10,955)

-

(10,955)

Total mortgage banking activities

$(9,526)

$3,777

$10,492

$(13,303)

$(20,018)

$671

$18,687

$(18,016)

[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. During the quarter ended September 30, 2020 the Corporation repurchased $687.9 million of GNMA loans and recorded a loss of $10.5 million for 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 within the indemnity reserves on loans sold component of non-interest income.

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)



MortgageBanking Activities

Quarters ended Variance Nine months ended Variance

(In Q3 2020 Q3 2020 2020 vs.thousands) 30-Sep-20 30-Jun-20 30-Sep-19 vs.Q2 vs.Q3 30-Sep-20 30-Sep-19 2019 2020 2019

Mortgageservicingfees, net of fair valueadjustments:

Mortgage servicing $12,966 $9,058 $11,797 $3,908 $1,169 $32,992 $35,400 $(2,408) fees

Mortgage servicing rights fair (20,491) (7,640) (4,842) (12,851) (15,649) (33,360) (25,853) (7,507) value adjustments

Totalmortgageservicing (7,525) 1,418 6,955 (8,943) (14,480) (368) 9,547 (9,915)fees, net offair valueadjustments

Net gain onsale ofloans,including 10,916 5,487 5,421 5,429 5,495 20,389 14,695 5,694valuation onloansheld-for-sale

Tradingaccount (loss)profit:

Unrealized (losses) gains on (4) 1,695 227 (1,699) (231) (4) - (4) outstanding derivative positions

Realized losses on closed (1,958) (4,823) (2,111) 2,865 153 (8,391) (5,555) (2,836) derivative positions

Total trading (1,962) (3,128) (1,884) 1,166 (78) (8,395) (5,555) (2,840)account loss

Losses onrepurchasedloans, (10,955) - - (10,955) (10,955) (10,955) - (10,955)includinginterestadvances^[1]

Totalmortgage $(9,526) $3,777 $10,492 $ $ $671 $18,687 $banking (13,303) (20,018) (18,016)activities

[1] The Corporation, from time to time, repurchases delinquent loans from itsGNMA servicing portfolio, in compliance with Guarantor guidelines, and mayincur in losses related to previously advanced interest on delinquent loans.During the quarter ended September 30, 2020 the Corporation repurchased $687.9million of GNMA loans and recorded a loss of $10.5 million for previouslyadvanced interest on delinquent loans. Effective for the quarter endedSeptember 30, 2020, the Corporation has determined to present these losses aspart of its Mortgage Banking Activities, which were previously presented withinthe indemnity reserves on loans sold component of non-interest income.

Other Service Fees

Quarters ended

Variance

Nine months ended

Variance

(In thousands)

30-Sep-20

30-Jun-20

30-Sep-19

Q3 2020 vs.Q2 2020

Q3 2020 vs.Q3 2019

30-Sep-20

30-Sep-19

2020 vs. 2019

Other service fees:

Debit card fees

$11,123

$7,082

$11,719

$4,041

$(596)

$28,442

$34,923

$(6,481)

Insurance fees

13,941

11,301

14,608

2,640

(667)

38,211

44,652

(6,441)

Credit card fees

27,077

17,762

25,625

9,315

1,452

68,025

72,705

(4,680)

Sale and administration of investment products

5,094

4,910

5,714

184

(620)

16,267

16,705

(438)

Trust fees

4,886

5,546

5,193

(660)

(307)

15,692

15,431

261

Other fees

7,758

5,483

8,450

2,275

(692)

20,099

25,231

(5,132)

Total other service fees

$69,879

$52,084

$71,309

$17,795

$(1,430)

$186,736

$209,647

$(22,911)



Other Service Fees

Quarters ended Variance Nine months ended Variance

Q3 2020 Q3 2020 2020 vs.(In thousands) 30-Sep-20 30-Jun-20 30-Sep-19 vs.Q2 vs.Q3 30-Sep-20 30-Sep-19 2019 2020 2019

Other service fees:

Debit card $11,123 $7,082 $11,719 $4,041 $(596) $28,442 $34,923 $(6,481) fees

Insurance fees 13,941 11,301 14,608 2,640 (667) 38,211 44,652 (6,441)

Credit card 27,077 17,762 25,625 9,315 1,452 68,025 72,705 (4,680) fees

Sale and administration 5,094 4,910 5,714 184 (620) 16,267 16,705 (438) of investment products

Trust fees 4,886 5,546 5,193 (660) (307) 15,692 15,431 261

Other fees 7,758 5,483 8,450 2,275 (692) 20,099 25,231 (5,132)

Total other $69,879 $52,084 $71,309 $17,795 $ $186,736 $209,647 $service fees (1,430) (22,911)

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table G - Loans and Deposits

(Unaudited)

Loans - Ending Balances

Variance

(In thousands)

30-Sep-20

30-Jun-20

30-Sep-19

Q3 2020 vs.Q2 2020

Q3 2020 vs.Q3 2019

Loans held-in-portfolio:

Commercial

$13,611,374

$13,735,082

$12,208,449

$(123,708)

$1,402,925

Construction

936,274

928,507

754,056

7,767

182,218

Legacy [1]

16,168

17,000

23,192

(832)

(7,024)

Lease financing

1,153,108

1,098,188

1,022,484

54,920

130,624

Mortgage

7,924,441

7,521,795

7,168,619

402,646

755,822

Auto

3,045,453

2,904,324

2,847,758

141,129

197,695

Consumer

2,705,692

2,865,657

2,983,417

(159,965)

(277,725)

Total loans held-in-portfolio

$29,392,510

$29,070,553

$27,007,975

$321,957

$2,384,535

Loans held-for-sale:

Commercial

$4,070

$6,778

$-

$(2,708)

$4,070

Mortgage

98,690

61,947

56,370

36,743

42,320

Total loans held-for-sale

$102,760

$68,725

$56,370

$34,035

$46,390

Total loans

$29,495,270

$29,139,278

$27,064,345

$355,992

$2,430,925

[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 Third Quarter 2020 Earnings Release

Table G - Loans and Deposits

(Unaudited)



Loans - Ending Balances

Variance

Q3 2020 Q3 2020(In thousands) 30-Sep-20 30-Jun-20 30-Sep-19 vs.Q2 vs.Q3 2019 2020

Loans held-in-portfolio:

Commercial $13,611,374 $13,735,082 $12,208,449 $ $1,402,925 (123,708)

Construction 936,274 928,507 754,056 7,767 182,218

Legacy [1] 16,168 17,000 23,192 (832) (7,024)

Lease financing 1,153,108 1,098,188 1,022,484 54,920 130,624

Mortgage 7,924,441 7,521,795 7,168,619 402,646 755,822

Auto 3,045,453 2,904,324 2,847,758 141,129 197,695

Consumer 2,705,692 2,865,657 2,983,417 (159,965) (277,725)

Total loans $29,392,510 $29,070,553 $27,007,975 $321,957 $2,384,535held-in-portfolio

Loans held-for-sale:

Commercial $4,070 $6,778 $- $(2,708) $4,070

Mortgage 98,690 61,947 56,370 36,743 42,320

Total loans $102,760 $68,725 $56,370 $34,035 $46,390held-for-sale

Total loans $29,495,270 $29,139,278 $27,064,345 $355,992 $2,430,925

[1] The legacy portfolio is comprised of commercial loans, construction loansand lease financings related to certain lending products exited by theCorporation as part of restructuring efforts carried out in prior years at thePopular U.S. segment.

Deposits - Ending Balances

Variance

(In thousands)

30-Sep-20

30-Jun-20

30-Sep-19

Q3 2020 vs. Q2 2020

Q3 2020 vs.Q3 2019

Demand deposits [1]

$22,929,040

$22,731,726

$19,191,657

$197,314

$3,737,383

Savings, NOW and money market deposits (non-brokered)

24,696,244

22,457,951

16,778,332

2,238,293

7,917,912

Savings, NOW and money market deposits (brokered)

551,770

522,929

400,049

28,841

151,721

Time deposits (non-brokered)

7,664,361

7,919,265

7,614,393

(254,904)

49,968

Time deposits (brokered CDs)

180,568

212,429

181,764

(31,861)

(1,196)

Total deposits

$56,021,983

$53,844,300

$44,166,195

$2,177,683

$11,855,788

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

Deposits - Ending Balances

Variance

Q3 2020 Q3 2020(In thousands) 30-Sep-20 30-Jun-20 30-Sep-19 vs. Q2 vs.Q3 2019 2020

Demand deposits [1] $22,929,040 $22,731,726 $19,191,657 $197,314 $3,737,383

Savings, NOW andmoney market 24,696,244 22,457,951 16,778,332 2,238,293 7,917,912deposits(non-brokered)

Savings, NOW andmoney market 551,770 522,929 400,049 28,841 151,721deposits (brokered)

Time deposits 7,664,361 7,919,265 7,614,393 (254,904) 49,968(non-brokered)

Time deposits 180,568 212,429 181,764 (31,861) (1,196)(brokered CDs)

Total deposits $56,021,983 $53,844,300 $44,166,195 $2,177,683 $11,855,788

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

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)

30-Sep-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

$

3,480

$

129

$

1,400

$

5,009

$

139,169

$

144,178

$

1,400

$

-

Commercial real estate:

Non-owner occupied

19,523

2,014

98,811

120,348

1,950,794

2,071,142

98,811

-

Owner occupied

10,187

4,223

97,453

111,863

1,458,412

1,570,275

97,453

-

Commercial and industrial

6,809

6,376

45,013

58,198

4,233,554

4,291,752

44,320

693

Construction

4,895

-

21,514

26,409

169,656

196,065

21,514

-

Mortgage

336,824

59,386

1,567,504

1,963,714

4,863,266

6,826,980

370,060

1,197,444

Leasing

8,254

2,450

3,217

13,921

1,139,187

1,153,108

3,217

-

Consumer:

Credit cards

6,125

6,305

14,505

26,935

904,604

931,539

-

14,505

Home equity lines of credit

181

-

58

239

4,075

4,314

-

58

Personal

13,166

7,569

29,343

50,078

1,255,707

1,305,785

29,343

-

Auto

39,887

10,377

13,454

63,718

2,981,735

3,045,453

13,454

-

Other

190

1,224

14,348

15,762

108,290

124,052

14,104

244

Total

$

449,521

$

100,053

$

1,906,620

$

2,456,194

$

19,208,449

$

21,664,643

$

693,676

$

1,212,944

30-Jun-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

$

1,641

$

2,524

$

1,368

$

5,533

$

142,630

$

148,163

$

1,368

$

-

Commercial real estate:

Non-owner occupied

24,091

4,120

108,671

136,882

1,940,018

2,076,900

108,671

-

Owner occupied

19,439

5,471

101,112

126,022

1,554,153

1,680,175

101,112

-

Commercial and industrial

5,422

15,404

43,892

64,718

4,382,221

4,446,939

42,739

1,153

Construction

-

-

-

-

176,612

176,612

-

-

Mortgage

279,498

123,158

1,256,359

1,659,015

4,751,803

6,410,818

397,262

859,097

Leasing

11,386

10,355

4,751

26,492

1,071,696

1,098,188

4,751

-

Consumer:

Credit cards

9,128

15,424

17,849

42,401

934,981

977,382

-

17,849

Home equity lines of credit

14

262

6

282

4,284

4,566

-

6

Personal

20,485

13,730

34,834

69,049

1,300,646

1,369,695

34,834

-

Auto

64,977

29,813

22,111

116,901

2,787,423

2,904,324

22,111

-

Other

700

344

14,426

15,470

114,971

130,441

13,755

671

Total

$

436,781

$

220,605

$

1,605,379

$

2,262,765

$

19,161,438

$

21,424,203

$

726,603

$

878,776

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)

30-Sep-20

Puerto Rico

Past due Past due 90 days or more

30-59 60-89 90 days Total Non-accrual Accruing

(In days days or more past due Current Loans HIP loans loansthousands)

Commercial $ 3,480 $ 129 $ 1,400 $ 5,009 $ 139,169 $ 144,178 $ 1,400 $ -multi-family

Commercial real estate:

Non-owner 19,523 2,014 98,811 120,348 1,950,794 2,071,142 98,811 - occupied

Owner 10,187 4,223 97,453 111,863 1,458,412 1,570,275 97,453 - occupied

Commercialand 6,809 6,376 45,013 58,198 4,233,554 4,291,752 44,320 693industrial

Construction 4,895 - 21,514 26,409 169,656 196,065 21,514 -

Mortgage 336,824 59,386 1,567,504 1,963,714 4,863,266 6,826,980 370,060 1,197,444

Leasing 8,254 2,450 3,217 13,921 1,139,187 1,153,108 3,217 -

Consumer:

Credit 6,125 6,305 14,505 26,935 904,604 931,539 - 14,505 cards

Home equity 181 - 58 239 4,075 4,314 - 58 lines of credit

Personal 13,166 7,569 29,343 50,078 1,255,707 1,305,785 29,343 -

Auto 39,887 10,377 13,454 63,718 2,981,735 3,045,453 13,454 -

Other 190 1,224 14,348 15,762 108,290 124,052 14,104 244

Total $ 449,521 $ 100,053 $ 1,906,620 $ 2,456,194 $ 19,208,449 $ 21,664,643 $ 693,676 $ 1,212,944



30-Jun-20

Puerto Rico

Past due Past due 90 days or more

30-59 60-89 90 days Total Non-accrual Accruing

(In days days or more past due Current Loans HIP loans loansthousands)

Commercial $ 1,641 $ 2,524 $ 1,368 $ 5,533 $ 142,630 $ 148,163 $ 1,368 $ -multi-family

Commercial real estate:

Non-owner 24,091 4,120 108,671 136,882 1,940,018 2,076,900 108,671 - occupied

Owner 19,439 5,471 101,112 126,022 1,554,153 1,680,175 101,112 - occupied

Commercialand 5,422 15,404 43,892 64,718 4,382,221 4,446,939 42,739 1,153industrial

Construction - - - - 176,612 176,612 - -

Mortgage 279,498 123,158 1,256,359 1,659,015 4,751,803 6,410,818 397,262 859,097

Leasing 11,386 10,355 4,751 26,492 1,071,696 1,098,188 4,751 -

Consumer:

Credit 9,128 15,424 17,849 42,401 934,981 977,382 - 17,849 cards

Home equity 14 262 6 282 4,284 4,566 - 6 lines of credit

Personal 20,485 13,730 34,834 69,049 1,300,646 1,369,695 34,834 -

Auto 64,977 29,813 22,111 116,901 2,787,423 2,904,324 22,111 -

Other 700 344 14,426 15,470 114,971 130,441 13,755 671

Total $ 436,781 $ 220,605 $ 1,605,379 $ 2,262,765 $ 19,161,438 $ 21,424,203 $ 726,603 $ 878,776

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

$

1,839

$

(2,395)

$

32

$

(524)

$

(3,461)

$

(3,985)

$

32

$

-

Commercial real estate:

Non-owner occupied

(4,568)

(2,106)

(9,860)

(16,534)

10,776

(5,758)

(9,860)

-

Owner occupied

(9,252)

(1,248)

(3,659)

(14,159)

(95,741)

(109,900)

(3,659)

-

Commercial and industrial

1,387

(9,028)

1,121

(6,520)

(148,667)

(155,187)

1,581

(460)

Construction

4,895

-

21,514

26,409

(6,956)

19,453

21,514

-

Mortgage

57,326

(63,772)

311,145

304,699

111,463

416,162

(27,202)

338,347 [1]

Leasing

(3,132)

(7,905)

(1,534)

(12,571)

67,491

54,920

(1,534)

-

Consumer:

Credit cards

(3,003)

(9,119)

(3,344)

(15,466)

(30,377)

(45,843)

-

(3,344)

Home equity lines of credit

167

(262)

52

(43)

(209)

(252)

-

52

Personal

(7,319)

(6,161)

(5,491)

(18,971)

(44,939)

(63,910)

(5,491)

-

Auto

(25,090)

(19,436)

(8,657)

(53,183)

194,312

141,129

(8,657)

-

Other

(510)

880

(78)

292

(6,681)

(6,389)

349

(427)

Total

$

12,740

$

(120,552)

$

301,241

$

193,429

$

47,011

$

240,440

$

(32,927)

$

334,168

[1]

It is the Corporation's policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These include $161 million in loans rebooked under the GNMA program at September 30, 2020, in which issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. During the third quarter the Corporation purchased $688 million in GNMA loans of which $684 are included in the 90 days past due category including $324 million previously accounted under the repurchase option at June 30, 2020.

Variance

Past due Past due 90 days or more

30-59 60-89 90 days Total Non-accrual Accruing

(In days days or more past due Current Loans HIP loans Loansthousands)

Commercial $ 1,839 $ (2,395) $ 32 $ (524) $ (3,461) $ (3,985) $ 32 $ -multi-family

Commercial real estate:

Non-owner (4,568) (2,106) (9,860) (16,534) 10,776 (5,758) (9,860) - occupied

Owner (9,252) (1,248) (3,659) (14,159) (95,741) (109,900) (3,659) - occupied

Commercialand 1,387 (9,028) 1,121 (6,520) (148,667) (155,187) 1,581 (460)industrial

Construction 4,895 - 21,514 26,409 (6,956) 19,453 21,514 -

Mortgage 57,326 (63,772) 311,145 304,699 111,463 416,162 (27,202) 338,347 ^[1]

Leasing (3,132) (7,905) (1,534) (12,571) 67,491 54,920 (1,534) -

Consumer:

Credit (3,003) (9,119) (3,344) (15,466) (30,377) (45,843) - (3,344) cards

Home equity 167 (262) 52 (43) (209) (252) - 52 lines of credit

Personal (7,319) (6,161) (5,491) (18,971) (44,939) (63,910) (5,491) -

Auto (25,090) (19,436) (8,657) (53,183) 194,312 141,129 (8,657) -

Other (510) 880 (78) 292 (6,681) (6,389) 349 (427)

Total $ 12,740 $ (120,552) $ 301,241 $ 193,429 $ 47,011 $ 240,440 $ (32,927) $ 334,168

It is the Corporation's policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These include $161 million in loans rebooked under the GNMA program at[1] September 30, 2020, in which issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. During the third quarter the Corporation purchased $688 million in GNMA loans of which $684 are included in the 90 days past due category including $324 million previously accounted under the repurchase option at June 30, 2020.

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

September 30, 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

$

-

$

-

$

1,755

$

1,755

$

1,734,982

$

1,736,737

$

1,755

$

-

Commercial real estate:

Non-owner occupied

-

-

396

396

1,938,617

1,939,013

396

-

Owner occupied

653

-

342

995

360,131

361,126

342

-

Commercial and industrial

552

50

3,901

4,503

1,492,648

1,497,151

3,901

-

Construction

-

-

9,069

9,069

731,140

740,209

9,069

-

Mortgage

2,467

6,433

14,484

23,384

1,074,077

1,097,461

14,484

-

Legacy

41

16

1,360

1,417

14,751

16,168

1,360

-

Consumer:

Credit cards

-

3

3

6

25

31

-

3

Home equity lines of credit

1,257

351

7,586

9,194

95,715

104,909

7,586

-

Personal

1,641

1,597

1,770

5,008

228,754

233,762

1,770

-

Other

22

2

29

53

1,247

1,300

29

-

Total

$

6,633

$

8,452

$

40,695

$

55,780

$

7,672,087

$

7,727,867

$

40,692

$

3

June 30, 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

$

-

$

366

$

2,097

$

2,463

$

1,637,996

$

1,640,459

$

2,097

$

-

Commercial real estate:

Non-owner occupied

1,692

5,136

397

7,225

1,945,365

1,952,590

397

-

Owner occupied

1,010

-

352

1,362

345,412

346,774

352

-

Commercial and industrial

4,441

6,061

4,392

14,894

1,428,188

1,443,082

4,392

-

Construction

23,209

9,600

-

32,809

719,086

751,895

-

-

Mortgage

2,532

4,477

14,144

21,153

1,089,824

1,110,977

14,144

-

Legacy

29

83

2,001

2,113

14,887

17,000

2,001

-

Consumer:

Credit cards

-

-

-

-

26

26

-

-

Home equity lines of credit

1,715

655

8,242

10,612

100,095

110,707

8,242

-

Personal

1,638

1,524

1,976

5,138

266,330

271,468

1,976

-

Other

-

-

-

-

1,372

1,372

-

-

Total

$

36,266

$

27,902

$

33,601

$

97,769

$

7,548,581

$

7,646,350

$

33,601

$

-

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

September 30, 2020

Popular U.S.

Past due Past due 90 days or more

30-59 60-89 90 days Total Non-accrual Accruing

(In days days or more past due Current Loans HIP loans loansthousands)

Commercial $ - $ - $ 1,755 $ 1,755 $ 1,734,982 $ 1,736,737 $ 1,755 $ -multi-family

Commercial real estate:

Non-owner - - 396 396 1,938,617 1,939,013 396 - occupied

Owner 653 - 342 995 360,131 361,126 342 - occupied

Commercialand 552 50 3,901 4,503 1,492,648 1,497,151 3,901 -industrial

Construction - - 9,069 9,069 731,140 740,209 9,069 -

Mortgage 2,467 6,433 14,484 23,384 1,074,077 1,097,461 14,484 -

Legacy 41 16 1,360 1,417 14,751 16,168 1,360 -

Consumer:

Credit - 3 3 6 25 31 - 3 cards

Home equity 1,257 351 7,586 9,194 95,715 104,909 7,586 - lines of credit

Personal 1,641 1,597 1,770 5,008 228,754 233,762 1,770 -

Other 22 2 29 53 1,247 1,300 29 -

Total $ 6,633 $ 8,452 $ 40,695 $ 55,780 $ 7,672,087 $ 7,727,867 $ 40,692 $ 3



June 30, 2020

Popular U.S.

Past due Past due 90 days or more

30-59 60-89 90 days Total Non-accrual Accruing

(In days days or more past due Current Loans HIP loans loansthousands)

Commercial $ - $ 366 $ 2,097 $ 2,463 $ 1,637,996 $ 1,640,459 $ 2,097 $ -multi-family

Commercial real estate:

Non-owner 1,692 5,136 397 7,225 1,945,365 1,952,590 397 - occupied

Owner 1,010 - 352 1,362 345,412 346,774 352 - occupied

Commercialand 4,441 6,061 4,392 14,894 1,428,188 1,443,082 4,392 -industrial

Construction 23,209 9,600 - 32,809 719,086 751,895 - -

Mortgage 2,532 4,477 14,144 21,153 1,089,824 1,110,977 14,144 -

Legacy 29 83 2,001 2,113 14,887 17,000 2,001 -

Consumer:

Credit - - - - 26 26 - - cards

Home equity 1,715 655 8,242 10,612 100,095 110,707 8,242 - lines of credit

Personal 1,638 1,524 1,976 5,138 266,330 271,468 1,976 -

Other - - - - 1,372 1,372 - -

-Total $ 36,266 $ 27,902 $ 33,601 $ 97,769 $ 7,548,581 $ 7,646,350 $ 33,601 $

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

$

-

$

(366)

$

(342)

$

(708)

$

96,986

$

96,278

$

(342)

$

-

Commercial real estate:

Non-owner occupied

(1,692)

(5,136)

(1)

(6,829)

(6,748)

(13,577)

(1)

-

Owner occupied

(357)

-

(10)

(367)

14,719

14,352

(10)

-

Commercial and industrial

(3,889)

(6,011)

(491)

(10,391)

64,460

54,069

(491)

-

Construction

(23,209)

(9,600)

9,069

(23,740)

12,054

(11,686)

9,069

-

Mortgage

(65)

1,956

340

2,231

(15,747)

(13,516)

340

-

Legacy

12

(67)

(641)

(696)

(136)

(832)

(641)

-

Consumer:

Credit cards

-

3

3

6

(1)

5

-

3

Home equity lines of credit

(458)

(304)

(656)

(1,418)

(4,380)

(5,798)

(656)

-

Personal

3

73

(206)

(130)

(37,576)

(37,706)

(206)

-

Auto

-

-

-

-

-

-

-

-

Other

22

2

29

53

(125)

(72)

29

-

Total

$

(29,633)

$

(19,450)

$

7,094

$

(41,989)

$

123,506

$

81,517

$

7,091

$

3

Variance

Past due Past due 90 days or more

30-59 60-89 90 days Total Non-accrual Accruing

(In days days or more past due Current Loans HIP loans loansthousands)

Commercial $ - $ (366) $ (342) $ (708) $ 96,986 $ 96,278 $ (342) $ -multi-family

Commercial real estate:

Non-owner (1,692) (5,136) (1) (6,829) (6,748) (13,577) (1) - occupied

Owner (357) - (10) (367) 14,719 14,352 (10) - occupied

Commercialand (3,889) (6,011) (491) (10,391) 64,460 54,069 (491) -industrial

Construction (23,209) (9,600) 9,069 (23,740) 12,054 (11,686) 9,069 -

Mortgage (65) 1,956 340 2,231 (15,747) (13,516) 340 -

Legacy 12 (67) (641) (696) (136) (832) (641) -

Consumer:

Credit - 3 3 6 (1) 5 - 3 cards

Home equity (458) (304) (656) (1,418) (4,380) (5,798) (656) - lines of credit

Personal 3 73 (206) (130) (37,576) (37,706) (206) -

Auto - - - - - - - -

Other 22 2 29 53 (125) (72) 29 -

Total $ (29,633) $ (19,450) $ 7,094 $ (41,989) $ 123,506 $ 81,517 $ 7,091 $ 3

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)

30-Sep-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

$

3,480

$

129

$

3,155

$

6,764

$

1,874,151

$

1,880,915

$

3,155

$

-

Commercial real estate:

Non-owner occupied

19,523

2,014

99,207

120,744

3,889,411

4,010,155

99,207

-

Owner occupied

10,840

4,223

97,795

112,858

1,818,543

1,931,401

97,795

-

Commercial and industrial

7,361

6,426

48,914

62,701

5,726,202

5,788,903

48,221

693

Construction

4,895

-

30,583

35,478

900,796

936,274

30,583

-

Mortgage

339,291

65,819

1,581,988

1,987,098

5,937,343

7,924,441

384,544

1,197,444

Leasing

8,254

2,450

3,217

13,921

1,139,187

1,153,108

3,217

-

Legacy

41

16

1,360

1,417

14,751

16,168

1,360

-

Consumer:

Credit cards

6,125

6,308

14,508

26,941

904,629

931,570

-

14,508

Home equity lines of credit

1,438

351

7,644

9,433

99,790

109,223

7,586

58

Personal

14,807

9,166

31,113

55,086

1,484,461

1,539,547

31,113

-

Auto

39,887

10,377

13,454

63,718

2,981,735

3,045,453

13,454

-

Other

212

1,226

14,377

15,815

109,537

125,352

14,133

244

Total

$

456,154

$

108,505

$

1,947,315

$

2,511,974

$

26,880,536

$

29,392,510

$

734,368

$

1,212,947

30-Jun-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

$

1,641

$

2,890

$

3,465

$

7,996

$

1,780,626

$

1,788,622

$

3,465

$

-

Commercial real estate:

Non-owner occupied

25,783

9,256

109,068

144,107

3,885,383

4,029,490

109,068

-

Owner occupied

20,449

5,471

101,464

127,384

1,899,565

2,026,949

101,464

-

Commercial and industrial

9,863

21,465

48,284

79,612

5,810,409

5,890,021

47,131

1,153

Construction

23,209

9,600

-

32,809

895,698

928,507

-

-

Mortgage

282,030

127,635

1,270,503

1,680,168

5,841,627

7,521,795

411,406

859,097

Leasing

11,386

10,355

4,751

26,492

1,071,696

1,098,188

4,751

-

Legacy

29

83

2,001

2,113

14,887

17,000

2,001

-

Consumer:

Credit cards

9,128

15,424

17,849

42,401

935,007

977,408

-

17,849

Home equity lines of credit

1,729

917

8,248

10,894

104,379

115,273

8,242

6

Personal

22,123

15,254

36,810

74,187

1,566,976

1,641,163

36,810

-

Auto

64,977

29,813

22,111

116,901

2,787,423

2,904,324

22,111

-

Other

700

344

14,426

15,470

116,343

131,813

13,755

671

Total

$

473,047

$

248,507

$

1,638,980

$

2,360,534

$

26,710,019

$

29,070,553

$

760,204

$

878,776

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)



30-Sep-20

Popular, Inc.

Past due Past due 90 days or more

30-59 60-89 90 days Total Non-accrual Accruing

(In days days or more past due Current Loans HIP loans loansthousands)

Commercial $ 3,480 $ 129 $ 3,155 $ 6,764 $ 1,874,151 $ 1,880,915 $ 3,155 $ -multi-family

Commercial real estate:

Non-owner 19,523 2,014 99,207 120,744 3,889,411 4,010,155 99,207 - occupied

Owner 10,840 4,223 97,795 112,858 1,818,543 1,931,401 97,795 - occupied

Commercialand 7,361 6,426 48,914 62,701 5,726,202 5,788,903 48,221 693industrial

Construction 4,895 - 30,583 35,478 900,796 936,274 30,583 -

Mortgage 339,291 65,819 1,581,988 1,987,098 5,937,343 7,924,441 384,544 1,197,444

Leasing 8,254 2,450 3,217 13,921 1,139,187 1,153,108 3,217 -

Legacy 41 16 1,360 1,417 14,751 16,168 1,360 -

Consumer:

Credit 6,125 6,308 14,508 26,941 904,629 931,570 - 14,508 cards

Home equity 1,438 351 7,644 9,433 99,790 109,223 7,586 58 lines of credit

Personal 14,807 9,166 31,113 55,086 1,484,461 1,539,547 31,113 -

Auto 39,887 10,377 13,454 63,718 2,981,735 3,045,453 13,454 -

Other 212 1,226 14,377 15,815 109,537 125,352 14,133 244

Total $ 456,154 $ 108,505 $ 1,947,315 $ 2,511,974 $ 26,880,536 $ 29,392,510 $ 734,368 $ 1,212,947



30-Jun-20

Popular, Inc.

Past due Past due 90 days or more

30-59 60-89 90 days Total Non-accrual Accruing

(In days days or more past due Current Loans HIP loans loansthousands)

Commercial $ 1,641 $ 2,890 $ 3,465 $ 7,996 $ 1,780,626 $ 1,788,622 $ 3,465 $ -multi-family

Commercial real estate:

Non-owner 25,783 9,256 109,068 144,107 3,885,383 4,029,490 109,068 - occupied

Owner 20,449 5,471 101,464 127,384 1,899,565 2,026,949 101,464 - occupied

Commercialand 9,863 21,465 48,284 79,612 5,810,409 5,890,021 47,131 1,153industrial

Construction 23,209 9,600 - 32,809 895,698 928,507 - -

Mortgage 282,030 127,635 1,270,503 1,680,168 5,841,627 7,521,795 411,406 859,097

Leasing 11,386 10,355 4,751 26,492 1,071,696 1,098,188 4,751 -

Legacy 29 83 2,001 2,113 14,887 17,000 2,001 -

Consumer:

Credit 9,128 15,424 17,849 42,401 935,007 977,408 - 17,849 cards

Home equity 1,729 917 8,248 10,894 104,379 115,273 8,242 6 lines of credit

Personal 22,123 15,254 36,810 74,187 1,566,976 1,641,163 36,810 -

Auto 64,977 29,813 22,111 116,901 2,787,423 2,904,324 22,111 -

Other 700 344 14,426 15,470 116,343 131,813 13,755 671

Total $ 473,047 $ 248,507 $ 1,638,980 $ 2,360,534 $ 26,710,019 $ 29,070,553 $ 760,204 $ 878,776

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

$

1,839

$

(2,761)

$

(310)

$

(1,232)

$

93,525

$

92,293

$

(310)

$

-

Commercial real estate:

Non-owner occupied

(6,260)

(7,242)

(9,861)

(23,363)

4,028

(19,335)

(9,861)

-

Owner occupied

(9,609)

(1,248)

(3,669)

(14,526)

(81,022)

(95,548)

(3,669)

-

Commercial and industrial

(2,502)

(15,039)

630

(16,911)

(84,207)

(101,118)

1,090

(460)

Construction

(18,314)

(9,600)

30,583

2,669

5,098

7,767

30,583

-

Mortgage

57,261

(61,816)

311,485

306,930

95,716

402,646

(26,862)

338,347 [1]

Leasing

(3,132)

(7,905)

(1,534)

(12,571)

67,491

54,920

(1,534)

-

Legacy

12

(67)

(641)

(696)

(136)

(832)

(641)

-

Consumer:

Credit cards

(3,003)

(9,116)

(3,341)

(15,460)

(30,378)

(45,838)

-

(3,341)

Home equity lines of credit

(291)

(566)

(604)

(1,461)

(4,589)

(6,050)

(656)

52

Personal

(7,316)

(6,088)

(5,697)

(19,101)

(82,515)

(101,616)

(5,697)

-

Auto

(25,090)

(19,436)

(8,657)

(53,183)

194,312

141,129

(8,657)

-

Other

(488)

882

(49)

345

(6,806)

(6,461)

378

(427)

Total

$

(16,893)

$

(140,002)

$

308,335

$

151,440

$

170,517

$

321,957

$

(25,836)

$

334,171

[1]

It is the Corporation's policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These include $161 million in loans rebooked under the GNMA program at September 30, 2020, in which issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. During the third quarter the Corporation purchased $688 million in GNMA loans of which $684 are included in the 90 days past due category including $324 million previously accounted under the repurchase option at June 30, 2020.

Variance

Past due Past due 90 days or more

30-59 60-89 90 days Total Non-accrual Accruing

(In days days or more past due Current Loans HIP loans loansthousands)

Commercial $ 1,839 $ (2,761) $ (310) $ (1,232) $ 93,525 $ 92,293 $ (310) $ -multi-family

Commercial real estate:

Non-owner (6,260) (7,242) (9,861) (23,363) 4,028 (19,335) (9,861) - occupied

Owner (9,609) (1,248) (3,669) (14,526) (81,022) (95,548) (3,669) - occupied

Commercialand (2,502) (15,039) 630 (16,911) (84,207) (101,118) 1,090 (460)industrial

Construction (18,314) (9,600) 30,583 2,669 5,098 7,767 30,583 -

Mortgage 57,261 (61,816) 311,485 306,930 95,716 402,646 (26,862) 338,347 ^[1]

Leasing (3,132) (7,905) (1,534) (12,571) 67,491 54,920 (1,534) -

Legacy 12 (67) (641) (696) (136) (832) (641) -

Consumer:

Credit (3,003) (9,116) (3,341) (15,460) (30,378) (45,838) - (3,341) cards

Home equity (291) (566) (604) (1,461) (4,589) (6,050) (656) 52 lines of credit

Personal (7,316) (6,088) (5,697) (19,101) (82,515) (101,616) (5,697) -

Auto (25,090) (19,436) (8,657) (53,183) 194,312 141,129 (8,657) -

Other (488) 882 (49) 345 (6,806) (6,461) 378 (427)

Total $ (16,893) $ (140,002) $ 308,335 $ 151,440 $ 170,517 $ 321,957 $ (25,836) $ 334,171

It is the Corporation's policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These include $161 million in loans rebooked under the GNMA program at[1] September 30, 2020, in which issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. During the third quarter the Corporation purchased $688 million in GNMA loans of which $684 are included in the 90 days past due category including $324 million previously accounted under the repurchase option at June 30, 2020.

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table K - Non-Performing Assets

(Unaudited)

Variance

(Dollars in thousands)

30-Sep-20

As a % of loans HIP by category

30-Jun-20

As a % of loans HIP by category

30-Sep-19

As a % of loans HIP by category

Q3 2020 vs. Q2 2020

Q3 2020 vs. Q3 2019

Non-accrual loans:

Commercial [1]

$248,378

1.8

%

$261,128

1.9

%

$169,697

1.4

%

$(12,750)

$78,681

Construction

30,583

3.3

-

-

10,334

1.4

30,583

20,249

Legacy [2]

1,360

8.4

2,001

11.8

2,318

10.0

(641)

(958)

Lease financing

3,217

0.3

4,751

0.4

2,733

0.3

(1,534)

484

Mortgage [1]

384,544

4.9

411,406

5.5

305,542

4.3

(26,862)

79,002

Auto

13,454

0.4

22,111

0.8

22,954

0.8

(8,657)

(9,500)

Consumer [1]

52,832

2.0

58,807

2.1

44,214

1.5

(5,975)

8,618

Total non-performing loans held-in-portfolio

734,368

2.5

%

760,204

2.6

%

557,792

2.1

%

(25,836)

176,576

Non-performing loans held-for-sale [3]

4,070

6,778

-

(2,708)

4,070

Other real estate owned ("OREO")

100,592

113,940

117,928

(13,348)

(17,336)

Total non-performing assets

$839,030

$880,922

$675,720

$(41,892)

$163,310

Accruing loans past due 90 days or more [4] [5]

$1,212,947

$878,776

$476,814

$334,171

$736,133

Ratios:

Non-performing assets to total assets

1.27

%

1.40

%

1.29

%

Non-performing loans held-in-portfolio to loans held-in-portfolio

2.50

2.62

2.07

Allowance for credit losses to loans held-in-portfolio

3.15

3.16

1.90

Allowance for credit losses to non-performing loans, excluding loans held-for-sale

126.07

120.81

91.86

[1] The increase in non-accrual loans during 2020 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 $4 million in non-performing commercial loans held-for-sale as of September 30, 2020, $7 million for the quarter ended June 30, 2020 and none for the quarter ended September 30, 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 to non-performing since the principal repayment is insured. During the third quarter the Corporation purchased $688 million in GNMA loans of which $684 are included in the 90 days past due category including $324 million previously accounted under the repurchase option at June 30, 2020. These include loans rebooked this quarter, which were previously pooled into GNMA securities, amounting to $161 million (June 30, 2020 - $522 million; September 30, 2019 - $99 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. Additionally, these balances include $318 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of September 30, 2020 (June 30, 2020 - $234 million; September 30, 2019 - $241 million). Furthermore, the Corporation has approximately $60 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation's policy to exclude these balances from non-performing assets (June 30, 2020 - $62 million; September 30, 2019 - $65 million).

[5] The carrying value of loans accounted for under ASC Subtopic 310-30 that are contractually 90 days or more past due was $189 million at September 30, 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 Third Quarter 2020 Earnings Release

Table K - Non-Performing Assets

(Unaudited)

Variance

As a % As a % As a % of of of Q3 2020 Q3 2020(Dollars in 30-Sep-20 loans 30-Jun-20 loans 30-Sep-19 loans vs. vs.thousands) HIP HIP HIP Q2 2020 Q3 2019 by by by category category category

Non-accrual loans:

Commercial [1] $248,378 1.8 % $261,128 1.9 % $169,697 1.4 % $ $78,681 (12,750)

Construction 30,583 3.3 - - 10,334 1.4 30,583 20,249

Legacy [2] 1,360 8.4 2,001 11.8 2,318 10.0 (641) (958)

Lease financing 3,217 0.3 4,751 0.4 2,733 0.3 (1,534) 484

Mortgage [1] 384,544 4.9 411,406 5.5 305,542 4.3 (26,862) 79,002

Auto 13,454 0.4 22,111 0.8 22,954 0.8 (8,657) (9,500)

Consumer [1] 52,832 2.0 58,807 2.1 44,214 1.5 (5,975) 8,618

Totalnon-performing 734,368 2.5 % 760,204 2.6 % 557,792 2.1 % (25,836) 176,576loansheld-in-portfolio

Non-performingloans 4,070 6,778 - (2,708) 4,070held-for-sale [3]

Other real estate 100,592 113,940 117,928 (13,348) (17,336)owned ("OREO")

Total $non-performing $839,030 $880,922 $675,720 (41,892) $163,310assets

Accruing loanspast due 90 days $1,212,947 $878,776 $476,814 $334,171 $736,133or more [4] [5]

Ratios:

Non-performingassets to total 1.27 % 1.40 % 1.29 % assets

Non-performingloansheld-in-portfolio 2.50 2.62 2.07 to loansheld-in-portfolio

Allowance forcredit losses to 3.15 3.16 1.90 loansheld-in-portfolio

Allowance forcredit losses tonon-performing 126.07 120.81 91.86 loans, excludingloansheld-for-sale

[1] The increase in non-accrual loans during 2020 includes the initial impactof $278 million related to the adoption of CECL on the portfolio of previouslypurchased credit deteriorated loans. This included mortgage loans for $133million, commercial loans for $131 million and $14 million in consumer loans.

[2] The legacy portfolio is comprised of commercial loans, construction loansand lease financings related to certain lending products exited by theCorporation as part of restructuring efforts carried out in prior years at thePopular U.S. segment.

[3] There were $4 million in non-performing commercial loans held-for-sale asof September 30, 2020, $7 million for the quarter ended June 30, 2020 and nonefor the quarter ended September 30, 2019.

[4] It is the Corporation's policy to report delinquent residential mortgageloans insured by FHA or guaranteed by the VA as accruing loans past due 90 daysor more as opposed to non-performing since the principal repayment is insured.During the third quarter the Corporation purchased $688 million in GNMA loansof which $684 are included in the 90 days past due category including $324million previously accounted under the repurchase option at June 30, 2020.These include loans rebooked this quarter, which were previously pooled intoGNMA securities, amounting to $161 million (June 30, 2020 - $522 million;September 30, 2019 - $99 million). Under the GNMA program, issuers such as BPPRhave the option but not the obligation to repurchase loans that are 90 days ormore past due. For accounting purposes, these loans subject to the repurchaseoption are required to be reflected (rebooked) on the financial statements ofBPPR with an offsetting liability. While the borrowers for our serviced GNMAportfolio benefited from the moratorium, the delinquency status of these loanscontinued to be reported to GNMA without considering the moratorium.Additionally, these balances include $318 million of residential mortgage loansinsured by FHA or guaranteed by the VA that are no longer accruing interest asof September 30, 2020 (June 30, 2020 - $234 million; September 30, 2019 - $241million). Furthermore, the Corporation has approximately $60 million in reversemortgage loans which are guaranteed by FHA, but which are currently notaccruing interest. Due to the guaranteed nature of the loans, it is theCorporation's policy to exclude these balances from non-performing assets (June30, 2020 - $62 million; September 30, 2019 - $65 million).

[5] The carrying value of loans accounted for under ASC Subtopic 310-30 thatare contractually 90 days or more past due was $189 million at September 30,2019. This amount is excluded from the above table as the loans' accretableyield interest recognition is independent from the underlying contractual loandelinquency status.

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio:

Quarter ended

Quarter ended

30-Sep-20

30-Jun-20

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$253,890

$7,238

$261,128

$251,104

$7,404

$258,508

Plus:

New non-performing loans

20,250

12,877

33,127

14,187

1,986

16,173

Advances on existing non-performing loans

-

-

-

-

100

100

Less:

Non-performing loans transferred to OREO

(39)

-

(39)

-

-

-

Non-performing loans charged-off

(1,000)

(452)

(1,452)

(1,402)

(368)

(1,770)

Loans returned to accrual status / loan collections

(31,117)

(13,269)

(44,386)

(9,999)

(1,884)

(11,883)

Ending balance NPLs

$241,984

$6,394

$248,378

$253,890

$7,238

$261,128

Construction loans held-in-portfolio:

Quarter ended

Quarter ended

30-Sep-20

30-Jun-20

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$-

$-

$-

$-

$-

$-

Plus:

New non-performing loans

21,514

9,069

30,583

-

-

-

Ending balance NPLs

$21,514

$9,069

$30,583

$-

$-

$-

Mortgage loans held-in-portfolio:

Quarter ended

Quarter ended

30-Sep-20

30-Jun-20

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$397,262

$14,144

$411,406

$404,465

$12,176

$416,641

Plus:

New non-performing loans

41,513

6,897

48,410

82,560

7,440

90,000

Advances on existing non-performing loans

-

48

48

-

11

11

Less:

Non-performing loans transferred to OREO

(492)

-

(492)

(48)

-

(48)

Non-performing loans charged-off

(3,738)

(11)

(3,749)

(7,847)

(7)

(7,854)

Loans returned to accrual status / loan collections

(64,485)

(6,594)

(71,079)

(81,868)

(5,476)

(87,344)

Ending balance NPLs

$370,060

$14,484

$384,544

$397,262

$14,144

$411,406

Total non-performing loans held-in-portfolio (excluding consumer):

Quarter ended

Quarter ended

30-Sep-20

30-Jun-20

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$651,152

$23,383

$674,535

$655,569

$21,560

$677,129

Plus:

New non-performing loans

83,277

28,843

112,120

96,747

9,426

106,173

Advances on existing non-performing loans

-

106

106

-

137

137

Less:

Non-performing loans transferred to OREO

(531)

-

(531)

(48)

-

(48)

Non-performing loans charged-off

(4,738)

(463)

(5,201)

(9,249)

(375)

(9,624)

Loans returned to accrual status / loan collections

(95,602)

(20,562)

(116,164)

(91,867)

(7,365)

(99,232)

Ending balance NPLs [1]

$633,558

$31,307

$664,865

$651,152

$23,383

$674,535

[1] Includes $1.4 million of NPLs related to the legacy portfolio as of September 30, 2020 (June 30, 2020 - $2.0 million).

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)



Commercial loans held-in-portfolio:

Quarter ended Quarter ended

30-Sep-20 30-Jun-20

(In thousands) BPPR Popular Popular, BPPR Popular Popular, U.S. Inc. U.S. Inc.

Beginning balance NPLs $253,890 $7,238 $261,128 $251,104 $7,404 $258,508

Plus:

New non-performing 20,250 12,877 33,127 14,187 1,986 16,173 loans

Advances on existing - - - - 100 100 non-performing loans

Less:

Non-performing loans (39) - (39) - - - transferred to OREO

Non-performing loans (1,000) (452) (1,452) (1,402) (368) (1,770) charged-off

Loans returned to accrual status / loan (31,117) (13,269) (44,386) (9,999) (1,884) (11,883) collections

Ending balance NPLs $241,984 $6,394 $248,378 $253,890 $7,238 $261,128



Construction loans held-in-portfolio:

Quarter ended Quarter ended

30-Sep-20 30-Jun-20

(In thousands) BPPR Popular Popular, BPPR Popular Popular, U.S. Inc. U.S. Inc.

Beginning balance NPLs $- $- $- $- $- $-

Plus:

New non-performing 21,514 9,069 30,583 - - - loans

Ending balance NPLs $21,514 $9,069 $30,583 $- $- $-



Mortgage loans held-in-portfolio:

Quarter ended Quarter ended

30-Sep-20 30-Jun-20

(In thousands) BPPR Popular Popular, BPPR Popular Popular, U.S. Inc. U.S. Inc.

Beginning balance NPLs $397,262 $14,144 $411,406 $404,465 $12,176 $416,641

Plus:

New non-performing 41,513 6,897 48,410 82,560 7,440 90,000 loans

Advances on existing - 48 48 - 11 11 non-performing loans

Less:

Non-performing loans (492) - (492) (48) - (48) transferred to OREO

Non-performing loans (3,738) (11) (3,749) (7,847) (7) (7,854) charged-off

Loans returned to accrual status / loan (64,485) (6,594) (71,079) (81,868) (5,476) (87,344) collections

Ending balance NPLs $370,060 $14,484 $384,544 $397,262 $14,144 $411,406









Total non-performing loans held-in-portfolio (excluding consumer):

Quarter ended Quarter ended

30-Sep-20 30-Jun-20

(In thousands) BPPR Popular Popular, BPPR Popular Popular, U.S. Inc. U.S. Inc.

Beginning balance NPLs $651,152 $23,383 $674,535 $655,569 $21,560 $677,129

Plus:

New non-performing 83,277 28,843 112,120 96,747 9,426 106,173 loans

Advances on existing - 106 106 - 137 137 non-performing loans

Less:

Non-performing loans (531) - (531) (48) - (48) transferred to OREO

Non-performing loans (4,738) (463) (5,201) (9,249) (375) (9,624) charged-off

Loans returned to accrual status / loan (95,602) (20,562) (116,164) (91,867) (7,365) (99,232) collections

Ending balance NPLs ^[1] $633,558 $31,307 $664,865 $651,152 $23,383 $674,535

[1] Includes $1.4 million of NPLs related to the legacy portfolio as ofSeptember 30, 2020 (June 30, 2020 - $2.0 million).

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

Quarter ended

Quarter ended

Quarter ended

30-Sep-20

30-Jun-20

30-Sep-19

(Dollars in thousands)

Total

Total

Total

Balance at beginning of period

$918,434

$919,716

$543,666

Provision for credit losses

19,452

63,104

36,539

Initial allowance for credit losses - PCD Loans

4,823

567

-

942,709

983,387

580,205

Net loans charged-off:

BPPR

Commercial

(1,959)

1,097

10,632

Construction

(156)

(195)

(2,986)

Lease financing

(329)

3,390

3,453

Mortgage

1,964

7,554

12,689

Consumer

14,249

50,297

36,112

Total BPPR

13,769

62,143

59,900

Popular U.S.

Commercial

360

(897)

3,633

Construction

-

-

2,215

Legacy [1]

(51)

113

(297)

Mortgage

(5)

(19)

(18)

Consumer

2,786

3,613

2,407

Total Popular U.S.

3,090

2,810

7,940

Total loans charged-off - Popular, Inc.

16,859

64,953

67,840

Balance at end of period

$925,850

$918,434

$512,365

POPULAR, INC.

Annualized net charge-offs to average loans held-in-portfolio

0.24

%

0.92

%

1.01

%

Provision for credit losses to net charge-offs

115.38

%

97.15

%

53.86

%

BPPR

Annualized net charge-offs to average loans held-in-portfolio

0.26

%

1.20

%

1.21

%

Provision for credit losses to net charge-offs

55.79

%

97.23

%

57.56

%

Popular U.S.

Annualized net charge-offs to average loans held-in-portfolio

0.16

%

0.15

%

0.45

%

Provision for credit losses to net charge-offs

380.91

%

95.41

%

25.94

%

[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 Third Quarter 2020 Earnings Release

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

(Unaudited)





Quarter Quarter Quarter ended ended ended

30-Sep-20 30-Jun-20 30-Sep-19

(Dollars in thousands) Total Total Total

Balance at beginning of period $918,434 $919,716 $543,666

Provision for credit losses 19,452 63,104 36,539

Initial allowance for credit losses - PCD 4,823 567 - Loans

942,709 983,387 580,205

Net loans charged-off:

BPPR

Commercial (1,959) 1,097 10,632

Construction (156) (195) (2,986)

Lease financing (329) 3,390 3,453

Mortgage 1,964 7,554 12,689

Consumer 14,249 50,297 36,112

Total BPPR 13,769 62,143 59,900

Popular U.S.

Commercial 360 (897) 3,633

Construction - - 2,215

Legacy [1] (51) 113 (297)

Mortgage (5) (19) (18)

Consumer 2,786 3,613 2,407

Total Popular U.S. 3,090 2,810 7,940

Total loans charged-off - Popular, Inc. 16,859 64,953 67,840

Balance at end of period $925,850 $918,434 $512,365



POPULAR, INC.

Annualized net charge-offs to average 0.24 % 0.92 % 1.01 %loans held-in-portfolio

Provision for credit losses to net 115.38 % 97.15 % 53.86 %charge-offs

BPPR

Annualized net charge-offs to average 0.26 % 1.20 % 1.21 %loans held-in-portfolio

Provision for credit losses to net 55.79 % 97.23 % 57.56 %charge-offs

Popular U.S.

Annualized net charge-offs to average 0.16 % 0.15 % 0.45 %loans held-in-portfolio

Provision for credit losses to net 380.91 % 95.41 % 25.94 %charge-offs

[1] The legacy portfolio is comprised of commercial loans, construction loansand lease financings related to certain lending products exited by theCorporation as part of restructuring efforts carried out in prior years at thePopular U.S. segment.

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

30-Sep-20

(Dollars in thousands)

Commercial

Construction

Legacy [1]

Mortgage

Lease financing

Consumer

Total

Total ACL

$330,276

$12,334

$1,905

$225,338

$15,168

$340,829

$925,850

Total loans held-in-portfolio

$13,611,374

$936,274

$16,168

$7,924,441

$1,153,108

$5,751,145

$29,392,510

ACL to loans held-in-portfolio

2.43

%

1.32

%

11.78

%

2.84

%

1.32

%

5.93

%

3.15

%

[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.

30-Jun-20

(Dollars in thousands)

Commercial

Construction

Legacy [1]

Mortgage

Lease financing

Consumer

Total

Total ACL

$314,956

$6,417

$2,052

$222,237

$13,093

$359,679

$918,434

Total loans held-in-portfolio

$13,735,082

$928,507

$17,000

$7,521,795

$1,098,188

$5,769,981

$29,070,553

ACL to loans held-in-portfolio

2.29

%

0.69

%

12.07

%

2.95

%

1.19

%

6.23

%

3.16

%

[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

$15,320

$5,917

$(147)

$3,101

$2,075

$(18,850)

$7,416

Total loans held-in-portfolio

$(123,708)

$7,767

$(832)

$402,646

$54,920

$(18,836)

$321,957

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)





30-Sep-20

(Dollars in Commercial Construction Legacy Mortgage Lease Consumer Total thousands) [1] financing

Total ACL $330,276 $12,334 $1,905 $225,338 $15,168 $340,829 $925,850

Total loans $13,611,374 $936,274 $16,168 $7,924,441 $1,153,108 $5,751,145 $29,392,510 held-in-portfolio

ACL to loans 2.43 % 1.32 % 11.78 % 2.84 % 1.32 % 5.93 % 3.15 %held-in-portfolio

[1] The legacy portfolio is comprised of commercial loans, construction loansand lease financings related to certain lending products exited by theCorporation as part of restructuring efforts carried out in prior years at thePopular U.S. reportable segment.





30-Jun-20

(Dollars in Commercial Construction Legacy Mortgage Lease Consumer Total thousands) [1] financing

Total ACL $314,956 $6,417 $2,052 $222,237 $13,093 $359,679 $918,434

Total loans $13,735,082 $928,507 $17,000 $7,521,795 $1,098,188 $5,769,981 $29,070,553 held-in-portfolio

ACL to loans 2.29 % 0.69 % 12.07 % 2.95 % 1.19 % 6.23 % 3.16 %held-in-portfolio

[1] The legacy portfolio is comprised of commercial loans, construction loansand lease financings related to certain lending products exited by theCorporation as part of restructuring efforts carried out in prior years at thePopular U.S. reportable segment.



Variance

(Dollars in Commercial Construction Legacy Mortgage Lease Consumer Total thousands) financing

Total ACL $15,320 $5,917 $(147) $3,101 $2,075 $(18,850) $7,416

Total loans $(123,708) $7,767 $(832) $402,646 $54,920 $(18,836) $321,957 held-in-portfolio

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

30-Sep-20

Puerto Rico

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Allowance for credit losses:

$218,448

$4,868

$203,658

$15,168

$312,376

$754,518

Loans held-in-portfolio:

8,077,347

196,065

6,826,980

1,153,108

5,411,143

21,664,643

ACL to loans held-in-portfolio:

2.70

%

2.48

%

2.98

%

1.32

%

5.77

%

3.48

%

30-Jun-20

Puerto Rico

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Allowance for credit losses:

$214,927

$354

$199,250

$13,093

$328,158

$755,782

Loans held-in-portfolio:

8,352,177

176,612

6,410,818

1,098,188

5,386,408

21,424,203

ACL to loans held-in-portfolio:

2.57

%

0.20

%

3.11

%

1.19

%

6.09

%

3.53

%

Variance

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Allowance for credit losses:

$3,521

$4,514

$4,408

$2,075

$(15,782)

$(1,264)

Loans held-in-portfolio:

(274,830)

19,453

416,162

54,920

24,735

240,440

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)



30-Sep-20

Puerto Rico

(In thousands) Commercial Construction Mortgage Lease Consumer Total financing

Allowance for $218,448 $4,868 $203,658 $15,168 $312,376 $754,518 credit losses:

Loans 8,077,347 196,065 6,826,980 1,153,108 5,411,143 21,664,643 held-in-portfolio:

ACL to loans 2.70 % 2.48 % 2.98 % 1.32 % 5.77 % 3.48 %held-in-portfolio:





30-Jun-20

Puerto Rico

(In thousands) Commercial Construction Mortgage Lease Consumer Total financing

Allowance for $214,927 $354 $199,250 $13,093 $328,158 $755,782 credit losses:

Loans 8,352,177 176,612 6,410,818 1,098,188 5,386,408 21,424,203 held-in-portfolio:

ACL to loans 2.57 % 0.20 % 3.11 % 1.19 % 6.09 % 3.53 %held-in-portfolio:





Variance

(In thousands) Commercial Construction Mortgage Lease Consumer Total financing

Allowance for $3,521 $4,514 $4,408 $2,075 $(15,782) $(1,264) credit losses:

Loans (274,830) 19,453 416,162 54,920 24,735 240,440 held-in-portfolio:

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)

30-Sep-20

Popular U.S.

(In thousands)

Commercial

Construction

Legacy

Mortgage

Consumer

Total

Allowance for credit losses:

$111,828

$7,466

$1,905

$21,680

$28,453

$171,332

Loans held-in-portfolio:

5,534,027

740,209

16,168

1,097,461

340,002

7,727,867

ACL to loans held-in-portfolio:

2.02

%

1.01

%

11.78

%

1.98

%

8.37

%

2.22

%

30-Jun-20

Popular U.S.

(In thousands)

Commercial

Construction

Legacy

Mortgage

Consumer

Total

Allowance for credit losses:

$100,029

$6,063

$2,052

$22,987

$31,521

$162,652

Loans held-in-portfolio:

5,382,905

751,895

17,000

1,110,977

383,573

7,646,350

ACL to loans held-in-portfolio:

1.86

%

0.81

%

12.07

%

2.07

%

8.22

%

2.13

%

Variance

(In thousands)

Commercial

Construction

Legacy

Mortgage

Consumer

Total

Allowance for credit losses:

$11,799

$1,403

$(147)

$(1,307)

$(3,068)

$8,680

Loans held-in-portfolio:

151,122

(11,686)

(832)

(13,516)

(43,571)

81,517

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

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

(Unaudited)



30-Sep-20

Popular U.S.

(In thousands) Commercial Construction Legacy Mortgage Consumer Total

Allowance for $111,828 $7,466 $1,905 $21,680 $28,453 $171,332 credit losses:

Loans 5,534,027 740,209 16,168 1,097,461 340,002 7,727,867 held-in-portfolio:

ACL to loans 2.02 % 1.01 % 11.78 % 1.98 % 8.37 % 2.22 %held-in-portfolio:





30-Jun-20

Popular U.S.

(In thousands) Commercial Construction Legacy Mortgage Consumer Total

Allowance for $100,029 $6,063 $2,052 $22,987 $31,521 $162,652 credit losses:

Loans 5,382,905 751,895 17,000 1,110,977 383,573 7,646,350 held-in-portfolio:

ACL to loans 1.86 % 0.81 % 12.07 % 2.07 % 8.22 % 2.13 %held-in-portfolio:





Variance

(In thousands) Commercial Construction Legacy Mortgage Consumer Total

Allowance for $11,799 $1,403 $(147) $(1,307) $(3,068) $8,680 credit losses:

Loans 151,122 (11,686) (832) (13,516) (43,571) 81,517 held-in-portfolio:

Popular, Inc.

Financial Supplement to Third Quarter 2020 Earnings Release

Table Q - Reconciliation to GAAP Financial Measures

(Unaudited)

(In thousands, except share or per share information)

30-Sep-20

30-Jun-20

30-Sep-19

Total stockholders' equity

$5,912,085

$5,780,165

$5,908,448

Less: Preferred stock

(22,143)

(22,143)

(50,160)

Less: Goodwill

(671,122)

(671,122)

(671,122)

Less: Other intangibles

(23,518)

(24,511)

(21,479)

Total tangible common equity

$5,195,302

$5,062,389

$5,165,687

Total assets

$65,910,369

$62,845,352

$52,480,415

Less: Goodwill

(671,122)

(671,122)

(671,122)

Less: Other intangibles

(23,518)

(24,511)

(21,479)

Total tangible assets

$65,215,729

$62,149,719

$51,787,814

Tangible common equity to tangible assets

7.97

%

8.15

%

9.97

%

Common shares outstanding at end of period

84,219,464

84,184,927

96,714,664

Tangible book value per common share

$61.69

$60.13

$53.41

Quarterly average

Total stockholders' equity [1]

$5,383,126

$5,274,071

$5,753,047

Less: Preferred Stock

(22,143)

(22,143)

(50,160)

Less: Goodwill

(671,121)

(671,121)

(663,499)

Less: Other intangibles

(24,161)

(25,497)

(22,957)

Total tangible equity

$4,665,701

$4,555,310

$5,016,431

Return on average tangible common equity

14.32

%

11.23

%

13.00

%

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

P-EN-FIN

View source version on businesswire.com: https://www.businesswire.com/news/home/20201028005316/en/

CONTACT: Popular, Inc. Investor Relations: Paul Cardillo, 212-417-6721 Senior Vice President, Investor Relations Officer or Media Relations: Teruca Rulln, 787-281-5170 or 917-679-3596 (mobile) Senior Vice President, Corporate Communications