Business Wire | Jul 22, 2021 08:01AM EDT

Popular, Inc. Announces Second Quarter 2021 Financial Results

Jul. 22, 2021

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Jul. 22, 2021--Popular, Inc. (the "Corporation," "Popular," "we," "us," "our") (NASDAQ:BPOP) reported net income of $218.1 million for the quarter ended June 30, 2021, compared to net income of $262.6 million for the quarter ended March 31, 2021.

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

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

Significant Events

Financial Highlights

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

Capital Actions

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

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

Earnings Highlights



(Unaudited) Quarters ended Six months ended

(Dollars inthousands, except 30-Jun-21 31-Mar-21 30-Jun-20 30-Jun-21 30-Jun-20per shareinformation)

Net interest income $487,802 $479,112 $450,881 $966,914 $923,976

Provision for credit (17,015) (82,226 ) 62,449 (99,241) 252,180losses (benefit)

Net interest incomeafter provision for 504,817 561,338 388,432 1,066,155 671,796credit losses(benefit)

Other non-interest 154,540 153,653 112,055 308,193 238,698income

Operating expenses 368,185 375,528 348,231 743,713 720,839

Income before income 291,172 339,463 152,256 630,635 189,655tax

Income tax expense 73,093 76,831 24,628 149,924 27,725

Net income $218,079 $262,632 $127,628 $480,711 $161,930

Net incomeapplicable to common $217,726 $262,279 $127,275 $480,005 $160,877stock

Net income per $2.67 $3.13 $1.49 $5.80 $1.83common share-basic

Net income per $2.66 $3.12 $1.49 $5.79 $1.83common share-diluted

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

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

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

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

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

* Higher interest income from money market investments, trading and investment securities by $9.7 million due to higher volume by $4.4 billion driven by deposit increases across all business lines, mainly government deposits. The taxable equivalent yield on these assets was 1.44%, compared to 1.52% the previous quarter; and * Lower interest expense on deposits by $2.1 million resulting from lower deposit cost by 4 basis points driven by a higher volume of low yielding deposits, reduction of costs in several non-maturity deposit products and renewals of time deposits in a lower interest rate environment. These positive variances in deposit costs were partially offset by higher volume of interest-bearing deposits by $3.3 billion.

Partially offset by:

* Lower interest income from loans by $0.6 million mainly due to the following: Lower interest income from commercial loans by $2.1 million resulting from lower SBA PPP interest income and fees of $9.2 million, partially offset by higher interest income by $7.2 million from PCD loans due to the accelerated discount amortization from several repaid loans and interest for one more day in the quarter of $1.9 million; and Auto and lease financing increasing $124 million in average balances resulting an increase in interest income of $2.5 million.

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

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

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

Non-interest income

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

* higher other service fees by $5.8 million, principally at the BPPR segment, due to higher credit card fees by $4.0 million, mainly in interchange income resulting from higher transactional volumes; * an increase in net gain on equity securities of $1.1 million mainly related to employee deferred compensation plans that have an offsetting expense on personnel related expenses; * a favorable variance in adjustments to indemnity reserves on previously sold loans of $2.4 million mainly due to a reserve release related to loans previously sold with credit recourse; and * higher other operating income by $1.1 million mainly due to higher net earnings from the combined portfolio of investments under the equity method by $2.4 million, partially offset by a lower gain on sale of daily auto rental units by $1.4 million; partially offset by:

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

Refer to Table B for further details.

Operating expenses

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

* lower personnel cost by $5.3 million due to $6.8 million of lower commission, incentives, and other bonuses, including lower performance shares and restricted stock expenses by $5.5 million, partially offset by higher pension, postretirement and medical insurance by $2.4 million due to higher premiums accruals; * lower net occupancy expense by $1.5 million due lower rent and electricity expenses; * lower credit and debit card processing, volume, interchange and other expenses by $1.5 million mainly due to transaction volume rebates and incentives; and * lower other operating expenses by $4.1 million due to a release of $4.5 million of mortgage servicing reserves related to claims and foreclosed loans, higher gain on sale of assets by $1.8 million and lower subsequent write-down of foreclosed auto units by $1.2 million; partially offset by higher sundry losses by $3.0 million due to higher legal reserves. Partially offset by:

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

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

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

Income taxes

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

Credit Quality

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

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

* At June 30, 2021, total non-performing loans held-in-portfolio decreased by $13.0 million from March 31, 2021. BPPR's NPLs decreased by $9.2 million, driven by lower mortgage NPLs by $20.1 million, due to lower inflows for the quarter and lower consumer NPLs by $5.1 million, mostly driven by auto loans. This decrease was in part offset by higher commercial NPLs by $16.8 million mostly due to a single $32.4 million inflow, partially offset by the resolution of an $8.8 million relationship. PB's NPLs decreased by $3.8 million, mostly related to a construction loan transferred to loans-held-for-sale. At June 30, 2021, the ratio of NPLs to total loans held-in-portfolio remained flat at 2.4% when compared to the first quarter of 2021. * Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $11.2 million quarter-over-quarter. In BPPR, total inflows increased by $17.0 million, mostly driven by higher commercial inflows of $31.9 million related to the abovementioned $32.4 million relationship. This increase was partly offset by lower mortgage inflows of $15.0 million, mostly due to improvements in early delinquencies. The NPL inflows at PB decreased by $5.8 million during the quarter. * NCOs decreased by $22.3 million from the first quarter of 2021 to net recoveries of $1.3 million. BPPR 's NCOs decreased by $21.0 million, primarily driven by lower commercial, mortgage and construction NCOs by $8.4 million, $7.4 million and $6.4 million, respectively. The decrease reflected in the commercial NCOs was mostly due to recoveries of $7.9 million related to the resolution of the abovementioned non-performing relationship. During the second quarter of 2021, the Corporation's ratio of annualized net charge-offs to average loans held-in-portfolio was (0.02)%, compared to 0.29% in the first quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios. * At June 30, 2021, the allowance for credit losses ("ACL") decreased by $15.0 million from the first quarter of 2021 to $785.8 million. The ACL incorporated updated economic scenarios for the United States and Puerto Rico, which continued to show a positive outlook of the economy. In BPPR, the ACL decreased by $19.8 million, led by improvements in commercial and mortgage loans. The decrease in the allowance for commercial loans was mainly prompted by the release of a qualitative reserve for the hotel and hospitality portfolio due to the favorable economic environment and improvements in borrower performance. The reduction in the allowance for mortgage loans was led by a combination of improvements in economic scenarios and other assumptions used to estimate the reserve, as well as lower volumes. The allowance for the PB segment increased by $4.8 million. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.70% in the second quarter of 2021, compared to 2.75% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 114.7%, flat from the previous quarter. * Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The ACL is estimated by weighting the outputs of optimistic, baseline and pessimistic scenarios. Among the three scenarios used to estimate the ACL, the baseline is assigned the highest probability, followed by the pessimistic scenario given the uncertainties in the economic outlook and downside risk. The current baseline forecast continues to show a favorable economic scenario. The 2021 forecasted GDP growth is now at 6.8% for U.S. and 3.8% for P.R., compared to 4.9% and 3.4%, respectively, in the previous 2021 forecast. The forecasted U.S. unemployment rate average for 2021 is now 5.43%. This is an improvement over the previous estimate of 6.09%. In the case of P.R., the forecasted unemployment rate average for 2021 of 8.43% was slightly higher than the previous forecast of 7.98%. However, unemployment rate levels in P.R. are expected to continue declining through 2022. The P.R. forecasted average unemployment rate for 2022 of 7.25%, is lower than the previous forecast of 7.52%. * The provision for credit losses for the loans portfolios for the second quarter of 2021 reflected a benefit of $17.5 million, compared to a benefit of $75.8 million in the previous quarter. The provision for the BPPR segment was a benefit of $22.5 million, an unfavorable variance of $17.5 million compared to the previous quarter, while the provision expense for the PB segment was $5.0 million, an unfavorable variance of $40.8 million from the previous quarter. In the prior quarter, improvements in the economic forecasts prompted substantial reductions in reserves. * The provision for unfunded commitments for the second quarter of 2021 reflected an expense of $0.4 million, compared to a benefit of $6.2 million during the previous quarter. The provision for credit losses in our investment portfolio was an expense of $0.1 million, compared to a benefit of $0.2 million in the first quarter of 2021. The provision for unfunded loan commitments, provision for credit losses on our loan and lease portfolios and provision for credit losses on our investment portfolio are aggregated and presented in the provision for credit losses caption in our Statement of Operations.

Non-Performing Assets

(Unaudited)

(In thousands) 30-Jun-21 31-Mar-21 30-Jun-20

Non-performing loans held-in-portfolio $685,183 $698,142 $760,204

Non-performing loans held-for-sale 8,700 3,549 6,778

Other real estate owned ("OREO") 73,272 72,060 113,940

Total non-performing assets $767,155 $773,751 $880,922

Net (recoveries) charge-offs for the $(1,291) $21,030 $64,953quarter





Ratios:

Loans held-in-portfolio $29,062,617 $29,131,628 $29,070,553

Non-performing loans held-in-portfolio 2.36% 2.40% 2.62%to loans held-in-portfolio

Allowance for credit losses to loans 2.70 2.75 3.16held-in-portfolio

Allowance for credit losses tonon-performing loans, excluding loans 114.68 114.70 120.81held-for-sale

Refer to Table K for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios

(Unaudited)

Quarters ended

Six months ended

(In thousands)

30-Jun-21

31-Mar-21

30-Jun-20

30-Jun-21

30-Jun-20

Provision for credit losses (benefit) - loan portfolios:

BPPR

$(22,488)

$(39,976)

$60,423

$(62,464)

$173,427

Popular U.S.

4,988

(35,803)

2,681

(30,815)

78,672

Total provision for credit losses (benefit) - loan portfolios

$(17,500)

$(75,779)

$63,104

$(93,279)

$252,099

Provision for Credit Losses (Benefit) - Loan Portfolios



(Unaudited) Quarters ended Six months ended

(In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 30-Jun-21 30-Jun-20

Provision for creditlosses (benefit) - loan portfolios:

BPPR $(22,488) $(39,976) $60,423 $(62,464) $173,427

Popular U.S. 4,988 (35,803) 2,681 (30,815) 78,672

Total provision forcredit losses $(17,500) $(75,779) $63,104 $(93,279) $252,099(benefit) - loanportfolios

Credit Quality by Segment

(Unaudited)

(In thousands)

Quarters ended

BPPR

30-Jun-21

31-Mar-21

30-Jun-20

Provision for credit losses (benefit) - loan portfolios

$(22,488)

$(39,976)

$60,423

Net charge-offs

(1,483)

19,474

62,143

Total non-performing loans held-in-portfolio

656,789

665,978

726,603

Allowance / loans held-in-portfolio

3.13%

3.20%

3.53%

Quarters ended

Popular U.S.

30-Jun-21

31-Mar-21

30-Jun-20

Provision for credit losses (benefit) - loan portfolios

$4,988

$(35,803)

$2,681

Net charge-offs

192

1,556

2,810

Total non-performing loans held-in-portfolio

28,394

32,164

33,601

Allowance / loans held-in-portfolio

1.57%

1.53%

2.13%

Credit Quality by Segment

(Unaudited)

(In thousands) Quarters ended

BPPR 30-Jun-21 31-Mar-21 30-Jun-20

Provision for credit losses (benefit) - loan $(22,488) $(39,976) $60,423portfolios

Net charge-offs (1,483) 19,474 62,143

Total non-performing loans held-in-portfolio 656,789 665,978 726,603

Allowance / loans held-in-portfolio 3.13% 3.20% 3.53%



Quarters ended

Popular U.S. 30-Jun-21 31-Mar-21 30-Jun-20

Provision for credit losses (benefit) - loan $4,988 $(35,803) $2,681portfolios

Net charge-offs 192 1,556 2,810

Total non-performing loans held-in-portfolio 28,394 32,164 33,601

Allowance / loans held-in-portfolio 1.57% 1.53% 2.13%

Financial Condition Highlights

(Unaudited)

(In thousands)

30-Jun-21

31-Mar-21

30-Jun-20

Cash and money market investments

$18,333,650

$12,064,592

$10,060,358

Investment securities

22,647,401

23,076,488

21,058,918

Loans

29,062,617

29,131,628

29,070,553

Total assets

72,657,293

66,870,268

62,845,352

Deposits

64,641,776

58,742,801

53,844,300

Borrowings

1,267,545

1,311,064

1,339,339

Total liabilities

66,842,679

60,972,709

57,065,187

Stockholders' equity

5,814,614

5,897,559

5,780,165

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

* an increase of $6.3 billion in cash and money market investments mainly due to an increase in deposits; partially offset by:

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

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

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

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

Cautionary Note Regarding Forward-Looking Statements

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

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

About Popular, Inc.

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

Conference Call

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

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through the dial-in telephone number 1-866-235-1201 or 1-412-902-4127. There is no charge to access the call.

A replay of the webcast will be archived in Popular's website. A telephone replay will be available one hour after the end of the conference call through Sunday, August 22, 2021. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10158030.

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

Financial Condition Highlights



(Unaudited)

(In thousands) 30-Jun-21 31-Mar-21 30-Jun-20

Cash and money market investments $18,333,650 $12,064,592 $10,060,358

Investment securities 22,647,401 23,076,488 21,058,918

Loans 29,062,617 29,131,628 29,070,553

Total assets 72,657,293 66,870,268 62,845,352

Deposits 64,641,776 58,742,801 53,844,300

Borrowings 1,267,545 1,311,064 1,339,339

Total liabilities 66,842,679 60,972,709 57,065,187

Stockholders' equity 5,814,614 5,897,559 5,780,165

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

* an increase of $6.3 billion in cash and money market investments mainly due to an increase in deposits; partially offset by:

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

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

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

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

Cautionary Note Regarding Forward-Looking Statements

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

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

About Popular, Inc.

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

Conference Call

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

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through the dial-in telephone number 1-866-235-1201 or 1-412-902-4127. There is no charge to access the call.

A replay of the webcast will be archived in Popular's website. A telephone replay will be available one hour after the end of the conference call through Sunday, August 22, 2021. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10158030.

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

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release



Table A - Selected Ratios and Other Information



Table B - Consolidated Statement of Operations



Table C - Consolidated Statement of Financial Condition



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



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



Table F - Mortgage Banking Activities and Other Service Fees



Table G - Loans and Deposits



Table H - Loan Delinquency - PUERTO RICO OPERATIONS



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



Table J - Loan Delinquency - CONSOLIDATED



Table K - Non-Performing Assets



Table L - Activity in Non-Performing Loans



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



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



Table O - Allowance for Credit Losses - Loan Portfolios - PUERTO 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 Second Quarter 2021 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

Quarters ended

Six months ended

30-Jun-21

31-Mar-21

30-Jun-20

30-Jun-21

30-Jun-20

Basic EPS

$2.67

$3.13

$1.49

$5.80

$1.83

Diluted EPS

$2.66

$3.12

$1.49

$5.79

$1.83

Average common shares outstanding

81,609,435

83,899,769

85,135,522

82,748,275

87,962,040

Average common shares outstanding - assuming dilution

81,772,789

84,051,935

85,161,661

82,888,378

88,039,712

Common shares outstanding at end of period

80,656,480

84,379,180

84,184,927

80,656,480

84,184,927

Market value per common share

$75.05

$70.32

$37.17

$75.05

$37.17

Market capitalization - (In millions)

$6,053

$5,934

$3,129

$6,053

$3,129

Return on average assets

1.24%

1.61%

0.87%

1.42%

0.59%

Return on average common equity

15.43%

18.76%

9.74%

17.08%

6.06%

Net interest margin (non-taxable equivalent basis)

2.91%

3.07%

3.25%

2.99%

3.58%

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

3.22%

3.39%

3.56%

3.31%

3.93%

Common equity per share

$71.82

$69.63

$68.40

$71.82

$68.40

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

$63.24

$61.42

$60.13

$63.24

$60.13

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

7.09%

7.83%

8.15%

7.09%

8.15%

Return on average tangible common equity [1]

17.58%

21.37%

11.23%

19.46%

6.97%

Tier 1 capital

16.62%

17.15%

15.78%

16.62%

15.78%

Total capital

19.09%

19.62%

18.29%

19.09%

18.29%

Tier 1 leverage

7.34%

8.06%

8.13%

7.34%

8.13%

Common Equity Tier 1 capital

16.55%

17.08%

15.71%

16.55%

15.71%

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

POPULAR, INC.

Financial Supplement to Second Quarter 2021 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)



Quarters ended Six months ended

30-Jun-21 31-Mar-21 30-Jun-20 30-Jun-21 30-Jun-20

Basic EPS $2.67 $3.13 $1.49 $5.80 $1.83

Diluted EPS $2.66 $3.12 $1.49 $5.79 $1.83

Average common 81,609,435 83,899,769 85,135,522 82,748,275 87,962,040shares outstanding

Average commonshares outstanding 81,772,789 84,051,935 85,161,661 82,888,378 88,039,712- assuming dilution

Common sharesoutstanding at end 80,656,480 84,379,180 84,184,927 80,656,480 84,184,927of period

Market value per $75.05 $70.32 $37.17 $75.05 $37.17common share

Marketcapitalization - $6,053 $5,934 $3,129 $6,053 $3,129(In millions)

Return on average 1.24% 1.61% 0.87% 1.42% 0.59%assets

Return on average 15.43% 18.76% 9.74% 17.08% 6.06%common equity

Net interest margin(non-taxable 2.91% 3.07% 3.25% 2.99% 3.58%equivalent basis)

Net interest margin(taxable equivalent 3.22% 3.39% 3.56% 3.31% 3.93%basis) -non-GAAP

Common equity per $71.82 $69.63 $68.40 $71.82 $68.40share

Tangible commonbook value per $63.24 $61.42 $60.13 $63.24 $60.13common share(non-GAAP) [1]

Tangible commonequity to tangible 7.09% 7.83% 8.15% 7.09% 8.15%assets (non-GAAP)[1]

Return on averagetangible common 17.58% 21.37% 11.23% 19.46% 6.97%equity [1]

Tier 1 capital 16.62% 17.15% 15.78% 16.62% 15.78%

Total capital 19.09% 19.62% 18.29% 19.09% 18.29%

Tier 1 leverage 7.34% 8.06% 8.13% 7.34% 8.13%

Common Equity Tier 16.55% 17.08% 15.71% 16.55% 15.71%1 capital

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

POPULAR, INC.

Financial Supplement to Second Quarter 2021 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

Quarters ended

Variance

Quarter ended

Variance

Six months ended

Q2 2021

Q2 2021

(In thousands, except per share information)

30-Jun-21

31-Mar-21

vs. Q1 2021

30-Jun-20

vs. Q2 2020

30-Jun-21

30-Jun-20

Interest income:

Loans

$433,781

$434,649

$(868)

$429,670

$4,111

$868,430

$880,116

Money market investments

4,274

3,112

1,162

2,015

2,259

7,386

14,015

Investment securities

91,706

85,690

6,016

76,884

14,822

177,396

164,796

Total interest income

529,761

523,451

6,310

508,569

21,192

1,053,212

1,058,927

Interest expense:

Deposits

28,060

30,201

(2,141)

42,780

(14,720)

58,261

104,881

Short-term borrowings

62

143

(81)

645

(583)

205

1,693

Long-term debt

13,837

13,995

(158)

14,263

(426)

27,832

28,377

Total interest expense

41,959

44,339

(2,380)

57,688

(15,729)

86,298

134,951

Net interest income

487,802

479,112

8,690

450,881

36,921

966,914

923,976

Provision for credit losses (benefit)

(17,015)

(82,226)

65,211

62,449

(79,464)

(99,241)

252,180

Net interest income after provision for credit losses (benefit)

504,817

561,338

(56,521)

388,432

116,385

1,066,155

671,796

Service charges on deposit accounts

40,153

39,620

533

30,163

9,990

79,773

71,822

Other service fees

76,382

70,628

5,754

52,084

24,298

147,010

116,857

Mortgage banking activities

7,448

17,343

(9,895)

3,777

3,671

24,791

10,197

Net gain (loss), including impairment, on equity securities

1,565

421

1,144

2,447

(882)

1,986

(281)

Net (loss) profit on trading account debt securities

(47)

(45)

(2)

82

(129)

(92)

573

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

(73)

-

(73)

2,222

(2,295)

(73)

3,179

Adjustments (expense) to indemnity reserves on loans sold

1,668

(698)

2,366

(1,160)

2,828

970

(5,953)

Other operating income

27,444

26,384

1,060

22,440

5,004

53,828

42,304

Total non-interest income

154,540

153,653

887

112,055

42,485

308,193

238,698

Operating expenses:

Personnel costs

Salaries

90,294

89,335

959

93,969

(3,675)

179,629

186,225

Commissions, incentives and other bonuses

26,374

33,218

(6,844)

16,076

10,298

59,592

41,334

Pension, postretirement and medical insurance

13,289

10,924

2,365

11,392

1,897

24,213

21,030

Other personnel costs, including payroll taxes

24,247

26,002

(1,755)

17,729

6,518

50,249

37,408

Total personnel costs

154,204

159,479

(5,275)

139,166

15,038

313,683

285,997

Net occupancy expenses

24,562

26,013

(1,451)

25,487

(925)

50,575

50,645

Equipment expenses

22,805

21,575

1,230

20,844

1,961

44,380

42,449

Other taxes

13,205

13,959

(754)

13,323

(118)

27,164

27,004

Professional fees

Collections, appraisals and other credit related fees

3,486

3,320

166

2,897

589

6,806

6,778

Programming, processing and other technology services

67,152

66,366

786

59,387

7,765

133,518

122,206

Legal fees, excluding collections

2,367

2,365

2

2,184

183

4,732

5,170

Other professional fees

28,148

27,897

251

28,079

69

56,045

59,464

Total professional fees

101,153

99,948

1,205

92,547

8,606

201,101

193,618

Communications

6,005

6,833

(828)

5,574

431

12,838

11,528

Business promotion

16,511

12,521

3,990

12,281

4,230

29,032

26,478

FDIC deposit insurance

5,742

5,968

(226)

5,340

402

11,710

10,420

Other real estate owned (OREO) (income) expenses

(4,299)

(4,533)

234

(344)

(3,955)

(8,832)

2,135

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

10,917

12,454

(1,537)

9,873

1,044

23,371

20,155

Other operating expenses

Operational losses

6,528

7,896

(1,368)

4,128

2,400

14,424

12,502

All other

9,597

12,364

(2,767)

18,217

(8,620)

21,961

33,640

Total other operating expenses

16,125

20,260

(4,135)

22,345

(6,220)

36,385

46,142

Amortization of intangibles

1,255

1,051

204

1,795

(540)

2,306

4,268

Total operating expenses

368,185

375,528

(7,343)

348,231

19,954

743,713

720,839

Income before income tax

291,172

339,463

(48,291)

152,256

138,916

630,635

189,655

Income tax expense

73,093

76,831

(3,738)

24,628

48,465

149,924

27,725

Net income

$218,079

$262,632

$(44,553)

$127,628

$90,451

$480,711

$161,930

Net income applicable to common stock

$217,726

$262,279

$(44,553)

$127,275

$90,451

$480,005

$160,877

Net income per common share - basic

$2.67

$3.13

$(0.46)

$1.49

$1.18

$5.80

$1.83

Net income per common share - diluted

$2.66

$3.12

$(0.46)

$1.49

$1.17

$5.79

$1.83

Dividends Declared per Common Share

$0.45

$0.40

$0.05

$0.40

$0.05

$0.85

$0.80

POPULAR, INC.

Financial Supplement to Second Quarter 2021 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

Quarters ended Variance Quarter Variance Six months ended ended

Q2 2021 Q2 2021

(In thousands,except per 30-Jun-21 31-Mar-21 vs. Q1 30-Jun-20 vs. Q2 30-Jun-21 30-Jun-20share 2021 2020information)

Interest income:

Loans $433,781 $434,649 $(868) $429,670 $4,111 $868,430 $880,116

Money market 4,274 3,112 1,162 2,015 2,259 7,386 14,015investments

Investment 91,706 85,690 6,016 76,884 14,822 177,396 164,796securities

Total interest 529,761 523,451 6,310 508,569 21,192 1,053,212 1,058,927income

Interest expense:

Deposits 28,060 30,201 (2,141) 42,780 (14,720) 58,261 104,881

Short-term 62 143 (81) 645 (583) 205 1,693borrowings

Long-term debt 13,837 13,995 (158) 14,263 (426) 27,832 28,377

Total interest 41,959 44,339 (2,380) 57,688 (15,729) 86,298 134,951expense

Net interest 487,802 479,112 8,690 450,881 36,921 966,914 923,976income

Provision forcredit losses (17,015) (82,226) 65,211 62,449 (79,464) (99,241) 252,180(benefit)

Net interestincome afterprovision for 504,817 561,338 (56,521) 388,432 116,385 1,066,155 671,796credit losses(benefit)

Servicecharges on 40,153 39,620 533 30,163 9,990 79,773 71,822depositaccounts

Other service 76,382 70,628 5,754 52,084 24,298 147,010 116,857fees

Mortgagebanking 7,448 17,343 (9,895) 3,777 3,671 24,791 10,197activities

Net gain(loss),including 1,565 421 1,144 2,447 (882) 1,986 (281)impairment, onequitysecurities

Net (loss)profit ontrading (47) (45) (2) 82 (129) (92) 573account debtsecurities

Net (loss)gain on saleof loans,including (73) - (73) 2,222 (2,295) (73) 3,179valuationadjustments onloansheld-for-sale

Adjustments(expense) toindemnity 1,668 (698) 2,366 (1,160) 2,828 970 (5,953)reserves onloans sold

Otheroperating 27,444 26,384 1,060 22,440 5,004 53,828 42,304income

Totalnon-interest 154,540 153,653 887 112,055 42,485 308,193 238,698income

Operating expenses:

Personnel costs

Salaries 90,294 89,335 959 93,969 (3,675) 179,629 186,225

Commissions,incentives and 26,374 33,218 (6,844) 16,076 10,298 59,592 41,334other bonuses

Pension,postretirement 13,289 10,924 2,365 11,392 1,897 24,213 21,030and medicalinsurance

Otherpersonnelcosts, 24,247 26,002 (1,755) 17,729 6,518 50,249 37,408includingpayroll taxes

Totalpersonnel 154,204 159,479 (5,275) 139,166 15,038 313,683 285,997costs

Net occupancy 24,562 26,013 (1,451) 25,487 (925) 50,575 50,645expenses

Equipment 22,805 21,575 1,230 20,844 1,961 44,380 42,449expenses

Other taxes 13,205 13,959 (754) 13,323 (118) 27,164 27,004

Professional fees

Collections,appraisals and 3,486 3,320 166 2,897 589 6,806 6,778other creditrelated fees

Programming,processing andother 67,152 66,366 786 59,387 7,765 133,518 122,206technologyservices

Legal fees,excluding 2,367 2,365 2 2,184 183 4,732 5,170collections

Otherprofessional 28,148 27,897 251 28,079 69 56,045 59,464fees

Totalprofessional 101,153 99,948 1,205 92,547 8,606 201,101 193,618fees

Communications 6,005 6,833 (828) 5,574 431 12,838 11,528

Business 16,511 12,521 3,990 12,281 4,230 29,032 26,478promotion

FDIC deposit 5,742 5,968 (226) 5,340 402 11,710 10,420insurance

Other realestate owned(OREO) (4,299) (4,533) 234 (344) (3,955) (8,832) 2,135(income)expenses

Credit anddebit cardprocessing,volume, 10,917 12,454 (1,537) 9,873 1,044 23,371 20,155interchangeand otherexpenses

Otheroperating expenses

Operational 6,528 7,896 (1,368) 4,128 2,400 14,424 12,502losses

All other 9,597 12,364 (2,767) 18,217 (8,620) 21,961 33,640

Total otheroperating 16,125 20,260 (4,135) 22,345 (6,220) 36,385 46,142expenses

Amortization 1,255 1,051 204 1,795 (540) 2,306 4,268of intangibles

Totaloperating 368,185 375,528 (7,343) 348,231 19,954 743,713 720,839expenses

Income before 291,172 339,463 (48,291) 152,256 138,916 630,635 189,655income tax

Income tax 73,093 76,831 (3,738) 24,628 48,465 149,924 27,725expense

Net income $218,079 $262,632 $ $127,628 $90,451 $480,711 $161,930 (44,553)

Net income $applicable to $217,726 $262,279 (44,553) $127,275 $90,451 $480,005 $160,877common stock

Net income percommon share - $2.67 $3.13 $(0.46) $1.49 $1.18 $5.80 $1.83basic

Net income percommon share - $2.66 $3.12 $(0.46) $1.49 $1.17 $5.79 $1.83diluted

DividendsDeclared per $0.45 $0.40 $0.05 $0.40 $0.05 $0.85 $0.80Common Share

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

Variance

Q2 2021 vs.

(In thousands)

30-Jun-21

31-Mar-21

30-Jun-20

Q1 2021

Assets:

Cash and due from banks

$530,849

$495,915

$435,080

$34,934

Money market investments

17,802,801

11,568,677

9,625,278

6,234,124

Trading account debt securities, at fair value

35,931

36,504

33,560

(573)

Debt securities available-for-sale, at fair value

22,335,167

22,771,609

20,763,453

(436,442)

Debt securities held-to-maturity, at amortized cost

88,801

89,725

95,429

(924)

Less: Allowance for credit losses

10,214

10,096

12,735

118

Total debt securities held-to-maturity, net

78,587

79,629

82,694

(1,042)

Equity securities

187,502

178,650

166,476

8,852

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

85,315

84,214

68,725

1,101

Loans held-in-portfolio

29,286,225

29,344,620

29,250,076

(58,395)

Less: Unearned income

223,608

212,992

179,523

10,616

Allowance for credit losses

785,790

800,797

918,434

(15,007)

Total loans held-in-portfolio, net

28,276,827

28,330,831

28,152,119

(54,004)

Premises and equipment, net

486,443

508,023

513,680

(21,580)

Other real estate

73,272

72,060

113,940

1,212

Accrued income receivable

203,419

215,993

220,126

(12,574)

Mortgage servicing rights, at fair value

119,467

122,543

141,144

(3,076)

Other assets

1,750,151

1,713,083

1,833,444

37,068

Goodwill

671,122

671,122

671,122

-

Other intangible assets

20,440

21,415

24,511

(975)

Total assets

$72,657,293

$66,870,268

$62,845,352

$5,787,025

Liabilities and Stockholders' Equity:

Liabilities:

Deposits:

Non-interest bearing

$14,920,887

$14,263,548

$12,520,510

$657,339

Interest bearing

49,720,889

44,479,253

41,323,790

5,241,636

Total deposits

64,641,776

58,742,801

53,844,300

5,898,975

Assets sold under agreements to repurchase

90,925

86,834

153,065

4,091

Notes payable

1,176,620

1,224,230

1,186,274

(47,610)

Other liabilities

933,358

918,844

1,881,548

14,514

Total liabilities

66,842,679

60,972,709

57,065,187

5,869,970

Stockholders' equity:

Preferred stock

22,143

22,143

22,143

-

Common stock

1,045

1,045

1,044

-

Surplus

4,506,659

4,571,919

4,520,333

(65,260)

Retained earnings

2,670,885

2,489,453

2,033,782

181,432

Treasury stock

(1,290,427)

(1,012,263)

(1,016,486)

(278,164)

Accumulated other comprehensive (loss) income, net of tax

(95,691)

(174,738)

219,349

79,047

Total stockholders' equity

5,814,614

5,897,559

5,780,165

(82,945)

Total liabilities and stockholders' equity

$72,657,293

$66,870,268

$62,845,352

$5,787,025

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

Variance

Q2 2021 vs.

(In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 Q1 2021

Assets:

Cash and due from banks $530,849 $495,915 $435,080 $34,934

Money market investments 17,802,801 11,568,677 9,625,278 6,234,124

Trading account debt 35,931 36,504 33,560 (573)securities, at fair value

Debt securitiesavailable-for-sale, at fair 22,335,167 22,771,609 20,763,453 (436,442)value

Debt securitiesheld-to-maturity, at 88,801 89,725 95,429 (924)amortized cost

Less: Allowance for credit 10,214 10,096 12,735 118losses

Total debt securities 78,587 79,629 82,694 (1,042)held-to-maturity, net

Equity securities 187,502 178,650 166,476 8,852

Loans held-for-sale, at 85,315 84,214 68,725 1,101lower of cost or fair value

Loans held-in-portfolio 29,286,225 29,344,620 29,250,076 (58,395)

Less: Unearned income 223,608 212,992 179,523 10,616

Allowance for credit losses 785,790 800,797 918,434 (15,007)

Total loans 28,276,827 28,330,831 28,152,119 (54,004)held-in-portfolio, net

Premises and equipment, net 486,443 508,023 513,680 (21,580)

Other real estate 73,272 72,060 113,940 1,212

Accrued income receivable 203,419 215,993 220,126 (12,574)

Mortgage servicing rights, 119,467 122,543 141,144 (3,076)at fair value

Other assets 1,750,151 1,713,083 1,833,444 37,068

Goodwill 671,122 671,122 671,122 -

Other intangible assets 20,440 21,415 24,511 (975)

Total assets $72,657,293 $66,870,268 $62,845,352 $5,787,025

Liabilities and Stockholders' Equity:

Liabilities:

Deposits:

Non-interest bearing $14,920,887 $14,263,548 $12,520,510 $657,339

Interest bearing 49,720,889 44,479,253 41,323,790 5,241,636

Total deposits 64,641,776 58,742,801 53,844,300 5,898,975

Assets sold under agreements 90,925 86,834 153,065 4,091to repurchase

Notes payable 1,176,620 1,224,230 1,186,274 (47,610)

Other liabilities 933,358 918,844 1,881,548 14,514

Total liabilities 66,842,679 60,972,709 57,065,187 5,869,970

Stockholders' equity:

Preferred stock 22,143 22,143 22,143 -

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

Surplus 4,506,659 4,571,919 4,520,333 (65,260)

Retained earnings 2,670,885 2,489,453 2,033,782 181,432

Treasury stock (1,290,427) (1,012,263) (1,016,486) (278,164)

Accumulated othercomprehensive (loss) income, (95,691) (174,738) 219,349 79,047net of tax

Total stockholders' equity 5,814,614 5,897,559 5,780,165 (82,945)

Total liabilities and $72,657,293 $66,870,268 $62,845,352 $5,787,025stockholders' equity

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

Quarters ended

Variance

30-Jun-21

31-Mar-21

30-Jun-20

Q2 2021 vs. Q1 2021

Q2 2021 vs. Q2 2020

($ amounts in millions)

Average balance

Income / Expense

Yield / Rate

Average balance

Income / Expense

Yield / Rate

Average balance

Income / Expense

Yield / Rate

Average balance

Income / Expense

Yield / Rate

Average balance

Income / Expense

Yield / Rate

Assets:

Interest earning assets:

Money market, trading and investment securities

$38,136

$137.5

1.44

%

$33,756

$127.8

1.52

%

$27,356

$111.5

1.64

%

$4,380

$9.7

(0.08)

%

$10,780

$26.0

(0.20)

%

Loans:

Commercial

13,539

176.9

5.24

13,624

179.0

5.33

13,350

168.8

5.09

(85)

(2.1)

(0.09)

189

8.1

0.15

Construction

858

11.6

5.43

911

11.9

5.30

935

13.2

5.69

(53)

(0.3)

0.13

(77)

(1.6)

(0.26)

Mortgage

7,765

99.4

5.12

7,869

98.4

5.00

7,038

92.2

5.24

(104)

1.0

0.12

727

7.2

(0.12)

Consumer

2,431

68.7

11.34

2,513

70.4

11.36

2,918

82.9

11.43

(82)

(1.7)

(0.02)

(487)

(14.2)

(0.09)

Auto

3,280

70.1

8.58

3,203

68.2

8.63

2,957

66.0

8.98

77

1.9

(0.05)

323

4.1

(0.40)

Lease financing

1,262

19.0

6.01

1,215

18.4

6.04

1,082

16.1

5.97

47

0.6

(0.03)

180

2.9

0.04

Total loans

29,135

445.7

6.13

29,335

446.3

6.15

28,280

439.2

6.24

(200)

(0.6)

(0.02)

855

6.5

(0.11)

Total interest earning assets

$67,271

$583.2

3.47

%

$63,091

$574.1

3.67

%

$55,636

$550.7

3.98

%

$4,180

$9.1

(0.20)

%

$11,635

$32.5

(0.51)

%

Allowance for credit losses - loan portfolio

(801)

(890)

(926)

89

125

Allowance for credit losses - investment securities

(10)

(10)

(13)

-

3

Other non-interest earning assets

3,906

3,895

4,100

11

(194)

Total average assets

$70,366

$66,086

$58,797

$4,280

$11,569

Liabilities and Stockholders' Equity:

Interest bearing deposits:

NOW and money market

$25,102

$8.0

0.13

%

$22,674

$8.3

0.15

%

$19,392

$11.6

0.24

%

$2,428

$(0.3)

(0.02)

%

$5,710

$(3.6)

(0.11)

%

Savings

15,384

6.9

0.18

14,364

7.0

0.20

11,856

10.2

0.35

1,020

(0.1)

(0.02)

3,528

(3.3)

(0.17)

Time deposits

7,104

13.2

0.74

7,265

14.9

0.83

8,730

21.0

0.97

(161)

(1.7)

(0.09)

(1,626)

(7.8)

(0.23)

Total interest-bearing deposits

47,590

28.1

0.24

44,303

30.2

0.28

39,978

42.8

0.43

3,287

(2.1)

(0.04)

7,612

(14.7)

(0.19)

Borrowings

1,316

13.9

4.24

1,344

14.1

4.23

1,336

14.9

4.48

(28)

(0.2)

0.01

(20)

(1.0)

(0.24)

Total interest-bearing liabilities

48,906

42.0

0.34

45,647

44.3

0.39

41,314

57.7

0.56

3,259

(2.3)

(0.05)

7,592

(15.7)

(0.22)

Net interest spread

3.13

%

3.28

%

3.42

%

(0.15)

%

(0.29)

%

Non-interest bearing deposits

14,920

13,394

11,006

1,526

3,914

Other liabilities

857

1,351

1,203

(494)

(346)

Stockholders' equity

5,683

5,694

5,274

(11)

409

Total average liabilities and stockholders' equity

$70,366

$66,086

$58,797

$4,280

$11,569

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

$541.2

3.22

%

$529.8

3.39

%

$493.0

3.56

%

$11.4

(0.17)

%

$48.2

(0.34)

%

Taxable equivalent adjustment

53.4

50.7

42.1

2.7

11.3

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

$487.8

2.91

%

$479.1

3.07

%

$450.9

3.25

%

$8.7

(0.16)

%

$36.9

(0.34)

%

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)



Quarters ended Variance

30-Jun-21 31-Mar-21 30-Jun-20 Q2 2021 vs. Q1 2021 Q2 2021 vs. Q2 2020

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

Assets:

Interest earning assets:

Money market, tradingand investment $38,136 $137.5 1.44 % $33,756 $127.8 1.52 % $27,356 $111.5 1.64 % $4,380 $9.7 (0.08) % $10,780 $26.0 (0.20) %securities

Loans:

Commercial 13,539 176.9 5.24 13,624 179.0 5.33 13,350 168.8 5.09 (85) (2.1) (0.09) 189 8.1 0.15

Construction 858 11.6 5.43 911 11.9 5.30 935 13.2 5.69 (53) (0.3) 0.13 (77) (1.6) (0.26)

Mortgage 7,765 99.4 5.12 7,869 98.4 5.00 7,038 92.2 5.24 (104) 1.0 0.12 727 7.2 (0.12)

Consumer 2,431 68.7 11.34 2,513 70.4 11.36 2,918 82.9 11.43 (82) (1.7) (0.02) (487) (14.2) (0.09)

Auto 3,280 70.1 8.58 3,203 68.2 8.63 2,957 66.0 8.98 77 1.9 (0.05) 323 4.1 (0.40)

Lease financing 1,262 19.0 6.01 1,215 18.4 6.04 1,082 16.1 5.97 47 0.6 (0.03) 180 2.9 0.04

Total loans 29,135 445.7 6.13 29,335 446.3 6.15 28,280 439.2 6.24 (200) (0.6) (0.02) 855 6.5 (0.11)

Total interest $67,271 $583.2 3.47 % $63,091 $574.1 3.67 % $55,636 $550.7 3.98 % $4,180 $9.1 (0.20) % $11,635 $32.5 (0.51) %earning assets

Allowance for creditlosses - loan (801) (890) (926) 89 125 portfolio

Allowance for creditlosses - investment (10) (10) (13) - 3 securities

Other non-interest 3,906 3,895 4,100 11 (194) earning assets

Total average assets $70,366 $66,086 $58,797 $4,280 $11,569

Liabilities and Stockholders' Equity:

Interest bearing deposits:

NOW and money market $25,102 $8.0 0.13 % $22,674 $8.3 0.15 % $19,392 $11.6 0.24 % $2,428 $(0.3) (0.02) % $5,710 $(3.6) (0.11) %

Savings 15,384 6.9 0.18 14,364 7.0 0.20 11,856 10.2 0.35 1,020 (0.1) (0.02) 3,528 (3.3) (0.17)

Time deposits 7,104 13.2 0.74 7,265 14.9 0.83 8,730 21.0 0.97 (161) (1.7) (0.09) (1,626) (7.8) (0.23)

Totalinterest-bearing 47,590 28.1 0.24 44,303 30.2 0.28 39,978 42.8 0.43 3,287 (2.1) (0.04) 7,612 (14.7) (0.19) deposits

Borrowings 1,316 13.9 4.24 1,344 14.1 4.23 1,336 14.9 4.48 (28) (0.2) 0.01 (20) (1.0) (0.24)

Totalinterest-bearing 48,906 42.0 0.34 45,647 44.3 0.39 41,314 57.7 0.56 3,259 (2.3) (0.05) 7,592 (15.7) (0.22) liabilities

Net interest spread 3.13 % 3.28 % 3.42 % (0.15) % (0.29) %

Non-interest bearing 14,920 13,394 11,006 1,526 3,914 deposits

Other liabilities 857 1,351 1,203 (494) (346)

Stockholders' equity 5,683 5,694 5,274 (11) 409

Total averageliabilities and $70,366 $66,086 $58,797 $4,280 $11,569 stockholders' equity

Net interest income / marginon a taxable equivalent basis $541.2 3.22 % $529.8 3.39 % $493.0 3.56 % $11.4 (0.17) % $48.2 (0.34) %(Non-GAAP)

Taxable equivalent adjustment 53.4 50.7 42.1 2.7 11.3



Net interest income / marginnon-taxable equivalent basis $487.8 2.91 % $479.1 3.07 % $450.9 3.25 % $8.7 (0.16) % $36.9 (0.34) %(GAAP)

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

Six months ended

30-Jun-21

30-Jun-20

Variance

Average

Income /

Yield /

Average

Income /

Yield /

Average

Income /

Yield /

($ amounts in millions)

balance

Expense

Rate

balance

Expense

Rate

balance

Expense

Rate

Assets:

Interest earning assets:

Money market, trading and investment securities

$35,958

$267.0

1.49

%$24,050

$247.2

2.06

%

$11,908

$19.8

(0.57)

%Loans:

Commercial

13,582

355.9

5.30

12,846

352.0

5.51

736

3.9

(0.21)

Construction

884

23.5

5.38

898

26.4

5.91

(14)

(2.9)

(0.53)

Mortgage

7,816

197.8

5.06

7,033

185.4

5.27

783

12.4

(0.21)

Consumer

2,472

139.1

11.35

3,014

172.2

11.49

(542)

(33.1)

(0.14)

Auto

3,241

138.3

8.63

2,975

133.8

9.04

266

4.5

(0.41)

Lease financing

1,239

37.3

6.02

1,077

32.4

6.02

162

4.9

-

Total loans

29,234

891.9

6.15

27,843

902.2

6.51

1,391

(10.3)

(0.36)

Total interest earning assets

$65,192

$1,158.9

3.58

%$51,893

$1,149.4

4.45

%

$13,299

$9.5

(0.87)

%Allowance for credit losses - loan portfolio

(845)

(867)

22

Allowance for credit losses - investment securities

(10)

(13)

3

Other non-interest earning assets

3,900

4,064

(164)

Total average assets

$68,237

$55,077

$13,160

Liabilities and Stockholders' Equity:

Interest bearing deposits:

NOW and money market

$23,895

$16.2

0.14

%$17,811

$36.8

0.42

%

$6,084

($20.6)

(0.28)

%Savings

14,876

14.0

0.19

11,290

21.9

0.39

3,586

(7.9)

(0.20)

Time deposits

7,184

28.1

0.79

8,211

46.1

1.13

(1,027)

(18.0)

(0.34)

Total interest-bearing deposits

45,955

58.3

0.26

37,312

104.8

0.57

8,643

(46.5)

(0.31)

Borrowings

1,330

28.0

4.24

1,331

30.1

4.53

(1)

(2.1)

(0.29)

Total interest-bearing liabilities

47,285

86.3

0.37

38,643

134.9

0.70

8,642

(48.6)

(0.33)

Net interest spread

3.21

%3.75

%

(0.54)

%Non-interest bearing deposits

14,161

10,004

4,157

Other liabilities

1,103

1,052

51

Stockholders' equity

5,688

5,378

310

Total average liabilities and stockholders' equity

$68,237

$55,077

$13,160

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

$1,072.6

3.31

%$1,014.5

3.93

%

$58.1

(0.62)

%Taxable equivalent adjustment

105.7

90.5

15.2

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

$966.9

2.99

%$924.0

3.58

%

$42.9

(0.59)

%Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

Six months ended

30-Jun-21 30-Jun-20 Variance

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

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

Assets:

Interest earning assets:

Money market,trading and $35,958 $267.0 1.49 $24,050 $247.2 2.06 % $11,908 $19.8 (0.57)investment % %securities

Loans:

Commercial 13,582 355.9 5.30 12,846 352.0 5.51 736 3.9 (0.21)

Construction 884 23.5 5.38 898 26.4 5.91 (14) (2.9) (0.53)

Mortgage 7,816 197.8 5.06 7,033 185.4 5.27 783 12.4 (0.21)

Consumer 2,472 139.1 11.35 3,014 172.2 11.49 (542) (33.1) (0.14)

Auto 3,241 138.3 8.63 2,975 133.8 9.04 266 4.5 (0.41)

Lease financing 1,239 37.3 6.02 1,077 32.4 6.02 162 4.9 -

Total loans 29,234 891.9 6.15 27,843 902.2 6.51 1,391 (10.3) (0.36)

Total interest $65,192 $1,158.9 3.58 $51,893 $1,149.4 4.45 % $13,299 $9.5 (0.87)earning assets % %

Allowance forcredit losses - (845) (867) 22 loan portfolio

Allowance forcredit losses - (10) (13) 3 investmentsecurities

Othernon-interest 3,900 4,064 (164) earning assets

Total average $68,237 $55,077 $13,160 assets

Liabilities andStockholders' Equity:

Interest bearing deposits:

NOW and money $23,895 $16.2 0.14 $17,811 $36.8 0.42 % $6,084 ($20.6) (0.28)market % %

Savings 14,876 14.0 0.19 11,290 21.9 0.39 3,586 (7.9) (0.20)

Time deposits 7,184 28.1 0.79 8,211 46.1 1.13 (1,027) (18.0) (0.34)

Totalinterest-bearing 45,955 58.3 0.26 37,312 104.8 0.57 8,643 (46.5) (0.31)deposits

Borrowings 1,330 28.0 4.24 1,331 30.1 4.53 (1) (2.1) (0.29)

Totalinterest-bearing 47,285 86.3 0.37 38,643 134.9 0.70 8,642 (48.6) (0.33)liabilities

Net interest 3.21 3.75 % (0.54)spread % %

Non-interest 14,161 10,004 4,157 bearing deposits

Other 1,103 1,052 51 liabilities

Stockholders' 5,688 5,378 310 equity

Total averageliabilities and $68,237 $55,077 $13,160 stockholders'equity

Net interest income /margin on a taxable $1,072.6 3.31 $1,014.5 3.93 % $58.1 (0.62)equivalent basis % %(Non-GAAP)

Taxable equivalent 105.7 90.5 15.2 adjustment



Net interest income /margin non-taxable $966.9 2.99 % $924.0 3.58 % $42.9 (0.59) %equivalent basis (GAAP)

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)

Mortgage Banking Activities

Quarters ended

Variance

Six months ended

Variance

(In thousands)

30-Jun-21

31-Mar-21

30-Jun-20

Q2 2021 vs. Q1 2021

Q2 2021 vs. Q2 2020

30-Jun-21

30-Jun-20

2021 vs. 2020

Mortgage servicing fees, net of fair value adjustments:

Mortgage servicing fees

$9,522

$9,715

$9,058

$(193)

$464

$19,237

$20,026

$(789)

Mortgage servicing rights fair value adjustments

(6,239)

512

(7,640)

(6,751)

1,401

(5,727)

(12,869)

7,142

Total mortgage servicing fees, net of fair value adjustments

3,283

10,227

1,418

(6,944)

1,865

13,510

7,157

6,353

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

5,197

4,975

5,487

222

(290)

10,172

9,473

699

Trading account (loss) profit:

Unrealized gains (losses) on outstanding derivative positions

-

-

1,695

-

(1,695)

-

-

-

Realized (losses) gains on closed derivative positions

(866)

2,502

(4,823)

(3,368)

3,957

1,636

(6,433)

8,069

Total trading account (loss) profit

(866)

2,502

(3,128)

(3,368)

2,262

1,636

(6,433)

8,069

Losses on repurchased loans, including interest advances[1]

(166)

(361)

-

195

(166)

(527)

-

(527)

Total mortgage banking activities

$7,448

$17,343

$3,777

$(9,895)

$3,671

$24,791

$10,197

$14,594

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

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)



Mortgage Banking Activities

Quarters ended Variance Six months ended Variance

(In Q2 2021 Q2 2021 2021 vs.thousands) 30-Jun-21 31-Mar-21 30-Jun-20 vs. vs. 30-Jun-21 30-Jun-20 2020 Q1 2021 Q2 2020

Mortgageservicingfees, net of fair valueadjustments:

Mortgageservicing $9,522 $9,715 $9,058 $(193) $464 $19,237 $20,026 $(789)fees

Mortgageservicingrights fair (6,239) 512 (7,640) (6,751) 1,401 (5,727) (12,869) 7,142valueadjustments

Totalmortgageservicing 3,283 10,227 1,418 (6,944) 1,865 13,510 7,157 6,353fees, net offair valueadjustments

Net gain onsale ofloans,including 5,197 4,975 5,487 222 (290) 10,172 9,473 699valuation onloansheld-for-sale

Tradingaccount (loss)profit:

Unrealizedgains(losses) on - - 1,695 - (1,695) - - -outstandingderivativepositions

Realized(losses)gains on (866) 2,502 (4,823) (3,368) 3,957 1,636 (6,433) 8,069closedderivativepositions

Total tradingaccount (866) 2,502 (3,128) (3,368) 2,262 1,636 (6,433) 8,069(loss) profit

Losses onrepurchasedloans, (166) (361) - 195 (166) (527) - (527)includinginterestadvances^[1]

Totalmortgage $7,448 $17,343 $3,777 $ $3,671 $24,791 $10,197 $14,594banking (9,895)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.Effective for the quarter ended September 30, 2020, the Corporation hasdetermined to present these losses as part of its Mortgage Banking Activities,which were previously presented with the indemnity reserves on loans soldcomponent of non-interest income. The amount of these losses for prior yearswere considered immaterial for reclassification.

Other Service Fees

Quarters ended

Variance

Six months ended

Variance

(In thousands)

30-Jun-21

31-Mar-21

30-Jun-20

Q2 2021 vs. Q1 2021

Q2 2021 vs. Q2 2020

30-Jun-21

30-Jun-20

2021 vs. 2020

Other service fees:

Debit card fees

$12,458

$11,577

$7,082

$881

$5,376

$24,035

$17,319

$6,716

Insurance fees

12,773

12,828

11,301

(55)

1,472

25,601

24,270

1,331

Credit card fees

32,726

28,691

17,762

4,035

14,964

61,417

40,948

20,469

Sale and administration of investment products

5,970

5,540

4,910

430

1,060

11,510

11,173

337

Trust fees

6,165

5,842

5,546

323

619

12,007

10,806

1,201

Other fees

6,290

6,150

5,483

140

807

12,440

12,341

99

Total other service fees

$76,382

$70,628

$52,084

$5,754

$24,298

$147,010

$116,857

$30,153



Other Service Fees

Quarters ended Variance Six months ended Variance

Q2 Q2 2021(In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 2021 vs. Q2 30-Jun-21 30-Jun-20 2021 vs. vs. Q1 2020 2020 2021

Other service fees:

Debit card $12,458 $11,577 $7,082 $881 $5,376 $24,035 $17,319 $6,716fees

Insurance fees 12,773 12,828 11,301 (55) 1,472 25,601 24,270 1,331

Credit card 32,726 28,691 17,762 4,035 14,964 61,417 40,948 20,469fees

Sale andadministration 5,970 5,540 4,910 430 1,060 11,510 11,173 337of investmentproducts

Trust fees 6,165 5,842 5,546 323 619 12,007 10,806 1,201

Other fees 6,290 6,150 5,483 140 807 12,440 12,341 99

Total other $76,382 $70,628 $52,084 $5,754 $24,298 $147,010 $116,857 $30,153service fees

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table G - Loans and Deposits

(Unaudited)

Loans - Ending Balances

Variance

(In thousands)

30-Jun-21

31-Mar-21

30-Jun-20

Q2 2021 vs. Q1 2021

Q2 2021 vs. Q2 2020

Loans held-in-portfolio:

Commercial

$13,437,932

$13,442,486

$13,744,579

$(4,554)

$(306,647)

Construction

865,113

907,736

936,010

(42,623)

(70,897)

Lease financing

1,297,928

1,244,956

1,098,188

52,972

199,740

Mortgage

7,678,478

7,808,852

7,521,795

(130,374)

156,683

Auto

3,289,027

3,203,137

2,904,324

85,890

384,703

Consumer

2,494,139

2,524,461

2,865,657

(30,322)

(371,518)

Total loans held-in-portfolio

$29,062,617

$29,131,628

$29,070,553

$(69,011)

$(7,936)

Loans held-for-sale:

Commercial

$1,700

$3,549

$6,778

$(1,849)

$(5,078)

Construction

7,000

-

-

7,000

7,000

Mortgage

76,615

80,665

61,947

(4,050)

14,668

Total loans held-for-sale

$85,315

$84,214

$68,725

$1,101

$16,590

Total loans

$29,147,932

$29,215,842

$29,139,278

$(67,910)

$8,654

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table G - Loans and Deposits

(Unaudited)



Loans - Ending Balances

Variance

Q2 2021 Q2 2021(In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 vs. vs. Q1 2021 Q2 2020

Loans held-in-portfolio:

Commercial $13,437,932 $13,442,486 $13,744,579 $(4,554) $ (306,647)

Construction 865,113 907,736 936,010 (42,623) (70,897)

Lease financing 1,297,928 1,244,956 1,098,188 52,972 199,740

Mortgage 7,678,478 7,808,852 7,521,795 (130,374) 156,683

Auto 3,289,027 3,203,137 2,904,324 85,890 384,703

Consumer 2,494,139 2,524,461 2,865,657 (30,322) (371,518)

Total loans $29,062,617 $29,131,628 $29,070,553 $(69,011) $(7,936)held-in-portfolio

Loans held-for-sale:

Commercial $1,700 $3,549 $6,778 $(1,849) $(5,078)

Construction 7,000 - - 7,000 7,000

Mortgage 76,615 80,665 61,947 (4,050) 14,668

Total loans $85,315 $84,214 $68,725 $1,101 $16,590held-for-sale

Total loans $29,147,932 $29,215,842 $29,139,278 $(67,910) $8,654

Deposits - Ending Balances

Variance

(In thousands)

30-Jun-21

31-Mar-21

30-Jun-20

Q2 2021 vs. Q1 2021

Q2 2021 vs. Q2 2020

Demand deposits [1]

$24,497,918

$23,450,312

$22,731,726

$1,047,606

$1,766,192

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

32,452,829

27,356,136

22,457,951

5,096,693

9,994,878

Savings, NOW and money market deposits (brokered)

683,021

679,832

522,929

3,189

160,092

Time deposits (non-brokered)

6,979,349

7,143,221

7,919,265

(163,872)

(939,916)

Time deposits (brokered CDs)

28,659

113,300

212,429

(84,641)

(183,770)

Total deposits

$64,641,776

$58,742,801

$53,844,300

$5,898,975

$10,797,476

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

Deposits - Ending Balances

Variance

Q2 2021 Q2 2021(In thousands) 30-Jun-21 31-Mar-21 30-Jun-20 vs. vs. Q1 2021 Q2 2020

Demand deposits $24,497,918 $23,450,312 $22,731,726 $1,047,606 $1,766,192[1]

Savings, NOWand money 32,452,829 27,356,136 22,457,951 5,096,693 9,994,878market deposits(non-brokered)

Savings, NOWand money 683,021 679,832 522,929 3,189 160,092market deposits(brokered)

Time deposits 6,979,349 7,143,221 7,919,265 (163,872) (939,916)(non-brokered)

Time deposits 28,659 113,300 212,429 (84,641) (183,770)(brokered CDs)

Total deposits $64,641,776 $58,742,801 $53,844,300 $5,898,975 $10,797,476

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

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)

30-Jun-21

Puerto Rico

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

days

or more

past due

Current

Loans HIP

loans

loans

Commercial multi-family

$

128

$

-

$

397

$

525

$

151,258

$

151,783

$

397

$

-

Commercial real estate:

Non-owner occupied

32,749

-

72,378

105,127

1,888,302

1,993,429

72,378

-

Owner occupied

3,995

604

79,808

84,407

1,380,022

1,464,429

79,808

-

Commercial and industrial

2,314

682

65,727

68,723

3,952,675

4,021,398

65,120

607

Construction

-

3,080

14,877

17,957

124,990

142,947

14,877

-

Mortgage

164,779

73,492

995,175

1,233,446

5,281,711

6,515,157

370,653

624,522

Leasing

6,054

2,103

2,286

10,443

1,287,485

1,297,928

2,286

-

Consumer:

Credit cards

4,371

2,826

8,021

15,218

864,912

880,130

-

8,021

Home equity lines of credit

-

-

-

-

3,489

3,489

-

-

Personal

9,405

4,444

23,861

37,710

1,227,582

1,265,292

23,861

-

Auto

39,032

7,405

13,286

59,723

3,229,304

3,289,027

13,286

-

Other

214

97

14,288

14,599

108,427

123,026

14,123

165

Total

$

263,041

$

94,733

$

1,290,104

$

1,647,878

$

19,500,157

$

21,148,035

$

656,789

$

633,315

31-Mar-21

Puerto Rico

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

days

or more

past due

Current

Loans HIP

loans

loans

Commercial multi-family

$

196

$

-

$

814

$

1,010

$

137,097

$

138,107

$

814

$

-

Commercial real estate:

Non-owner occupied

939

25,406

76,524

102,869

1,958,129

2,060,998

76,524

-

Owner occupied

6,749

2,114

89,752

98,615

1,413,356

1,511,971

89,752

-

Commercial and industrial

3,870

650

34,333

38,853

4,032,359

4,071,212

33,773

560

Construction

639

-

14,877

15,516

145,081

160,597

14,877

-

Mortgage

175,930

83,770

1,211,935

1,471,635

5,204,344

6,675,979

390,781

821,154

Leasing

7,564

1,408

3,040

12,012

1,232,944

1,244,956

3,040

-

Consumer:

Credit cards

4,824

3,883

10,779

19,486

858,255

877,741

-

10,779

Home equity lines of credit

-

-

46

46

3,498

3,544

-

46

Personal

10,216

6,250

25,731

42,197

1,219,094

1,261,291

25,731

-

Auto

47,396

8,783

15,405

71,584

3,131,553

3,203,137

15,405

-

Other

360

375

15,489

16,224

108,508

124,732

15,281

208

Total

$

258,683

$

132,639

$

1,498,725

$

1,890,047

$

19,444,218

$

21,334,265

$

665,978

$

832,747

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)

30-Jun-21

Puerto Rico

Past due Past due 90 days or more

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

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

Commercial $ 128 $ - $ 397 $ 525 $ 151,258 $ 151,783 $ 397 $ -multi-family

Commercial real estate:

Non-owner 32,749 - 72,378 105,127 1,888,302 1,993,429 72,378 -occupied

Owner 3,995 604 79,808 84,407 1,380,022 1,464,429 79,808 -occupied

Commercialand 2,314 682 65,727 68,723 3,952,675 4,021,398 65,120 607industrial

Construction - 3,080 14,877 17,957 124,990 142,947 14,877 -

Mortgage 164,779 73,492 995,175 1,233,446 5,281,711 6,515,157 370,653 624,522

Leasing 6,054 2,103 2,286 10,443 1,287,485 1,297,928 2,286 -

Consumer:

Credit cards 4,371 2,826 8,021 15,218 864,912 880,130 - 8,021

Home equitylines of - - - - 3,489 3,489 - -credit

Personal 9,405 4,444 23,861 37,710 1,227,582 1,265,292 23,861 -

Auto 39,032 7,405 13,286 59,723 3,229,304 3,289,027 13,286 -

Other 214 97 14,288 14,599 108,427 123,026 14,123 165

Total $ 263,041 $ 94,733 $ 1,290,104 $ 1,647,878 $ 19,500,157 $ 21,148,035 $ 656,789 $ 633,315



31-Mar-21

Puerto Rico

Past due Past due 90 days or more

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

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

Commercial $ 196 $ - $ 814 $ 1,010 $ 137,097 $ 138,107 $ 814 $ -multi-family

Commercial real estate:

Non-owner 939 25,406 76,524 102,869 1,958,129 2,060,998 76,524 -occupied

Owner 6,749 2,114 89,752 98,615 1,413,356 1,511,971 89,752 -occupied

Commercialand 3,870 650 34,333 38,853 4,032,359 4,071,212 33,773 560industrial

Construction 639 - 14,877 15,516 145,081 160,597 14,877 -

Mortgage 175,930 83,770 1,211,935 1,471,635 5,204,344 6,675,979 390,781 821,154

Leasing 7,564 1,408 3,040 12,012 1,232,944 1,244,956 3,040 -

Consumer:

Credit cards 4,824 3,883 10,779 19,486 858,255 877,741 - 10,779

Home equitylines of - - 46 46 3,498 3,544 - 46credit

Personal 10,216 6,250 25,731 42,197 1,219,094 1,261,291 25,731 -

Auto 47,396 8,783 15,405 71,584 3,131,553 3,203,137 15,405 -

Other 360 375 15,489 16,224 108,508 124,732 15,281 208

Total $ 258,683 $ 132,639 $ 1,498,725 $ 1,890,047 $ 19,444,218 $ 21,334,265 $ 665,978 $ 832,747

Variance

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

days

or more

past due

Current

Loans HIP

loans

loans

Commercial multi-family

$

(68)

$

-

$

(417)

$

(485)

$

14,161

$

13,676

$

(417)

$

-

Commercial real estate:

Non-owner occupied

31,810

(25,406)

(4,146)

2,258

(69,827)

(67,569)

(4,146)

-

Owner occupied

(2,754)

(1,510)

(9,944)

(14,208)

(33,334)

(47,542)

(9,944)

-

Commercial and industrial

(1,556)

32

31,394

29,870

(79,684)

(49,814)

31,347

47

Construction

(639)

3,080

-

2,441

(20,091)

(17,650)

-

-

Mortgage

(11,151)

(10,278)

(216,760)

(238,189)

77,367

(160,822)

(20,128)

(196,632)

Leasing

(1,510)

695

(754)

(1,569)

54,541

52,972

(754)

-

Consumer:

Credit cards

(453)

(1,057)

(2,758)

(4,268)

6,657

2,389

-

(2,758)

Home equity lines of credit

-

-

(46)

(46)

(9)

(55)

-

(46)

Personal

(811)

(1,806)

(1,870)

(4,487)

8,488

4,001

(1,870)

-

Auto

(8,364)

(1,378)

(2,119)

(11,861)

97,751

85,890

(2,119)

-

Other

(146)

(278)

(1,201)

(1,625)

(81)

(1,706)

(1,158)

(43)

Total

$

4,358

$

(37,906)

$

(208,621)

$

(242,169)

$

55,939

$

(186,230)

$

(9,189)

$

(199,432)

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 $ (68) $ - $ (417) $ (485) $ 14,161 $ 13,676 $ (417) $ -multi-family

Commercial real estate:

Non-owner 31,810 (25,406) (4,146) 2,258 (69,827) (67,569) (4,146) -occupied

Owner (2,754) (1,510) (9,944) (14,208) (33,334) (47,542) (9,944) -occupied

Commercialand (1,556) 32 31,394 29,870 (79,684) (49,814) 31,347 47industrial

Construction (639) 3,080 - 2,441 (20,091) (17,650) - -

Mortgage (11,151) (10,278) (216,760) (238,189) 77,367 (160,822) (20,128) (196,632)

Leasing (1,510) 695 (754) (1,569) 54,541 52,972 (754) -

Consumer:

Credit cards (453) (1,057) (2,758) (4,268) 6,657 2,389 - (2,758)

Home equitylines of - - (46) (46) (9) (55) - (46)credit

Personal (811) (1,806) (1,870) (4,487) 8,488 4,001 (1,870) -

Auto (8,364) (1,378) (2,119) (11,861) 97,751 85,890 (2,119) -

Other (146) (278) (1,201) (1,625) (81) (1,706) (1,158) (43)

Total $ 4,358 $ (37,906) $ (208,621) $ (242,169) $ 55,939 $ (186,230) $ (9,189) $ (199,432)

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

June 30, 2021

Popular U.S.

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

days

or more

past due

Current

Loans HIP

loans

loans

Commercial multi-family

$

-

$

-

$

5,949

$

5,949

$

1,733,104

$

1,739,053

$

5,949

$

-

Commercial real estate:

Non-owner occupied

-

-

374

374

2,131,860

2,132,234

374

-

Owner occupied

907

639

193

1,739

338,445

340,184

193

-

Commercial and industrial

3,070

509

1,346

4,925

1,590,497

1,595,422

1,346

-

Construction

-

-

-

-

722,166

722,166

-

-

Mortgage

2,498

5,005

13,323

20,826

1,142,495

1,163,321

13,323

-

Consumer:

Credit cards

-

-

-

-

31

31

-

-

Home equity lines of credit

501

210

6,377

7,088

74,850

81,938

6,377

-

Personal

572

579

832

1,983

135,014

136,997

832

-

Other

-

-

-

-

3,236

3,236

-

-

Total

$

7,548

$

6,942

$

28,394

$

42,884

$

7,871,698

$

7,914,582

$

28,394

$

-

March 31, 2021

Popular U.S.

Past due

Past due 90 days or more

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

$

30,185

$

-

$

-

$

30,185

$

1,724,802

$

1,754,987

$

-

$

-

Commercial real estate:

Non-owner occupied

8,280

-

392

8,672

2,034,383

2,043,055

392

-

Owner occupied

5,437

644

323

6,404

323,541

329,945

323

-

Commercial and industrial

7,226

1,321

1,201

9,748

1,522,463

1,532,211

1,192

9

Construction

11,110

-

7,523

18,633

728,506

747,139

7,523

-

Mortgage

13,032

1,762

14,793

29,587

1,103,286

1,132,873

14,793

-

Consumer:

Credit cards

-

-

-

-

22

22

-

-

Home equity lines of credit

121

10

6,855

6,986

82,631

89,617

6,855

-

Personal

1,156

666

1,086

2,908

162,540

165,448

1,086

-

Other

-

-

-

-

2,066

2,066

-

-

Total

$

76,547

$

4,403

$

32,173

$

113,123

$

7,684,240

$

7,797,363

$

32,164

$

9

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

June 30, 2021

Popular U.S.

Past due Past due 90 days or more

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

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

Commercial $ - $ - $ 5,949 $ 5,949 $ 1,733,104 $ 1,739,053 $ 5,949 $ -multi-family

Commercial real estate:

Non-owner - - 374 374 2,131,860 2,132,234 374 -occupied

Owner 907 639 193 1,739 338,445 340,184 193 -occupied

Commercialand 3,070 509 1,346 4,925 1,590,497 1,595,422 1,346 -industrial

Construction - - - - 722,166 722,166 - -

Mortgage 2,498 5,005 13,323 20,826 1,142,495 1,163,321 13,323 -

Consumer:

Credit cards - - - - 31 31 - -

Home equitylines of 501 210 6,377 7,088 74,850 81,938 6,377 -credit

Personal 572 579 832 1,983 135,014 136,997 832 -

Other - - - - 3,236 3,236 - -

Total $ 7,548 $ 6,942 $ 28,394 $ 42,884 $ 7,871,698 $ 7,914,582 $ 28,394 $ -



March 31, 2021

Popular U.S.

Past due Past due 90 days or more

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

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

Commercial $ 30,185 $ - $ - $ 30,185 $ 1,724,802 $ 1,754,987 $ - $ -multi-family

Commercial real estate:

Non-owner 8,280 - 392 8,672 2,034,383 2,043,055 392 -occupied

Owner 5,437 644 323 6,404 323,541 329,945 323 -occupied

Commercialand 7,226 1,321 1,201 9,748 1,522,463 1,532,211 1,192 9industrial

Construction 11,110 - 7,523 18,633 728,506 747,139 7,523 -

Mortgage 13,032 1,762 14,793 29,587 1,103,286 1,132,873 14,793 -

Consumer:

Credit cards - - - - 22 22 - -

Home equitylines of 121 10 6,855 6,986 82,631 89,617 6,855 -credit

Personal 1,156 666 1,086 2,908 162,540 165,448 1,086 -

Other - - - - 2,066 2,066 - -

Total $ 76,547 $ 4,403 $ 32,173 $ 113,123 $ 7,684,240 $ 7,797,363 $ 32,164 $ 9

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

$

(30,185)

$

-

$

5,949

$

(24,236)

$

8,302

$

(15,934)

$

5,949

$

-

Commercial real estate:

Non-owner occupied

(8,280)

-

(18)

(8,298)

97,477

89,179

(18)

-

Owner occupied

(4,530)

(5)

(130)

(4,665)

14,904

10,239

(130)

-

Commercial and industrial

(4,156)

(812)

145

(4,823)

68,034

63,211

154

(9)

Construction

(11,110)

-

(7,523)

(18,633)

(6,340)

(24,973)

(7,523)

-

Mortgage

(10,534)

3,243

(1,470)

(8,761)

39,209

30,448

(1,470)

-

Consumer:

Credit cards

-

-

-

-

9

9

-

-

Home equity lines of credit

380

200

(478)

102

(7,781)

(7,679)

(478)

-

Personal

(584)

(87)

(254)

(925)

(27,526)

(28,451)

(254)

-

Other

-

-

-

-

1,170

1,170

-

-

Total

$

(68,999)

$

2,539

$

(3,779)

$

(70,239)

$

187,458

$

117,219

$

(3,770)

$

(9)

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 $ (30,185) $ - $ 5,949 $ (24,236) $ 8,302 $ (15,934) $ 5,949 $ -multi-family

Commercial real estate:

Non-owner (8,280) - (18) (8,298) 97,477 89,179 (18) -occupied

Owner (4,530) (5) (130) (4,665) 14,904 10,239 (130) -occupied

Commercialand (4,156) (812) 145 (4,823) 68,034 63,211 154 (9)industrial

Construction (11,110) - (7,523) (18,633) (6,340) (24,973) (7,523) -

Mortgage (10,534) 3,243 (1,470) (8,761) 39,209 30,448 (1,470) -

Consumer:

Credit cards - - - - 9 9 - -

Home equitylines of 380 200 (478) 102 (7,781) (7,679) (478) -credit

Personal (584) (87) (254) (925) (27,526) (28,451) (254) -

Other - - - - 1,170 1,170 - -

Total $ (68,999) $ 2,539 $ (3,779) $ (70,239) $ 187,458 $ 117,219 $ (3,770) $ (9)

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)

30-Jun-21

Popular, Inc.

Past due

Past due 90 days or more

30-59

60-89

90 days

Total

Non-accrual

Accruing

(In thousands)

days

days

or more

past due

Current

Loans HIP

loans

loans

Commercial multi-family

$

128

$

-

$

6,346

$

6,474

$

1,884,362

$

1,890,836

$

6,346

$

-

Commercial real estate:

Non-owner occupied

32,749

-

72,752

105,501

4,020,162

4,125,663

72,752

-

Owner occupied

4,902

1,243

80,001

86,146

1,718,467

1,804,613

80,001

-

Commercial and industrial

5,384

1,191

67,073

73,648

5,543,172

5,616,820

66,466

607

Construction

-

3,080

14,877

17,957

847,156

865,113

14,877

-

Mortgage

167,277

78,497

1,008,498

1,254,272

6,424,206

7,678,478

383,976

624,522

Leasing

6,054

2,103

2,286

10,443

1,287,485

1,297,928

2,286

-

Consumer:

Credit cards

4,371

2,826

8,021

15,218

864,943

880,161

-

8,021

Home equity lines of credit

501

210

6,377

7,088

78,339

85,427

6,377

-

Personal

9,977

5,023

24,693

39,693

1,362,596

1,402,289

24,693

-

Auto

39,032

7,405

13,286

59,723

3,229,304

3,289,027

13,286

-

Other

214

97

14,288

14,599

111,663

126,262

14,123

165

Total

$

270,589

$

101,675

$

1,318,498

$

1,690,762

$

27,371,855

$

29,062,617

$

685,183

$

633,315

31-Mar-21

Popular, Inc.

Past due

Past due 90 days or more

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

$

30,381

$

-

$

814

$

31,195

$

1,861,899

$

1,893,094

$

814

$

-

Commercial real estate:

Non-owner occupied

9,219

25,406

76,916

111,541

3,992,512

4,104,053

76,916

-

Owner occupied

12,186

2,758

90,075

105,019

1,736,897

1,841,916

90,075

-

Commercial and industrial

11,096

1,971

35,534

48,601

5,554,822

5,603,423

34,965

569

Construction

11,749

-

22,400

34,149

873,587

907,736

22,400

-

Mortgage

188,962

85,532

1,226,728

1,501,222

6,307,630

7,808,852

405,574

821,154

Leasing

7,564

1,408

3,040

12,012

1,232,944

1,244,956

3,040

-

Consumer:

Credit cards

4,824

3,883

10,779

19,486

858,277

877,763

-

10,779

Home equity lines of credit

121

10

6,901

7,032

86,129

93,161

6,855

46

Personal

11,372

6,916

26,817

45,105

1,381,634

1,426,739

26,817

-

Auto

47,396

8,783

15,405

71,584

3,131,553

3,203,137

15,405

-

Other

360

375

15,489

16,224

110,574

126,798

15,281

208

Total

$

335,230

$

137,042

$

1,530,898

$

2,003,170

$

27,128,458

$

29,131,628

$

698,142

$

832,756

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

$

(30,253)

$

-

$

5,532

$

(24,721)

$

22,463

$

(2,258)

$

5,532

$

-

Commercial real estate:

Non-owner occupied

23,530

(25,406)

(4,164)

(6,040)

27,650

21,610

(4,164)

-

Owner occupied

(7,284)

(1,515)

(10,074)

(18,873)

(18,430)

(37,303)

(10,074)

-

Commercial and industrial

(5,712)

(780)

31,539

25,047

(11,650)

13,397

31,501

38

Construction

(11,749)

3,080

(7,523)

(16,192)

(26,431)

(42,623)

(7,523)

-

Mortgage

(21,685)

(7,035)

(218,230)

(246,950)

116,576

(130,374)

(21,598)

(196,632)

Leasing

(1,510)

695

(754)

(1,569)

54,541

52,972

(754)

-

Consumer:

Credit cards

(453)

(1,057)

(2,758)

(4,268)

6,666

2,398

-

(2,758)

Home equity lines of credit

380

200

(524)

56

(7,790)

(7,734)

(478)

(46)

Personal

(1,395)

(1,893)

(2,124)

(5,412)

(19,038)

(24,450)

(2,124)

-

Auto

(8,364)

(1,378)

(2,119)

(11,861)

97,751

85,890

(2,119)

-

Other

(146)

(278)

(1,201)

(1,625)

1,089

(536)

(1,158)

(43)

Total

$

(64,641)

$

(35,367)

$

(212,400)

$

(312,408)

$

243,397

$

(69,011)

$

(12,959)

$

(199,441)

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)



30-Jun-21

Popular, Inc.

Past due Past due 90 days or more

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

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

Commercial $ 128 $ - $ 6,346 $ 6,474 $ 1,884,362 $ 1,890,836 $ 6,346 $ -multi-family

Commercial real estate:

Non-owner 32,749 - 72,752 105,501 4,020,162 4,125,663 72,752 -occupied

Owner 4,902 1,243 80,001 86,146 1,718,467 1,804,613 80,001 -occupied

Commercialand 5,384 1,191 67,073 73,648 5,543,172 5,616,820 66,466 607industrial

Construction - 3,080 14,877 17,957 847,156 865,113 14,877 -

Mortgage 167,277 78,497 1,008,498 1,254,272 6,424,206 7,678,478 383,976 624,522

Leasing 6,054 2,103 2,286 10,443 1,287,485 1,297,928 2,286 -

Consumer:

Credit cards 4,371 2,826 8,021 15,218 864,943 880,161 - 8,021

Home equitylines of 501 210 6,377 7,088 78,339 85,427 6,377 -credit

Personal 9,977 5,023 24,693 39,693 1,362,596 1,402,289 24,693 -

Auto 39,032 7,405 13,286 59,723 3,229,304 3,289,027 13,286 -

Other 214 97 14,288 14,599 111,663 126,262 14,123 165

Total $ 270,589 $ 101,675 $ 1,318,498 $ 1,690,762 $ 27,371,855 $ 29,062,617 $ 685,183 $ 633,315



31-Mar-21

Popular, Inc.

Past due Past due 90 days or more

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

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

Commercial $ 30,381 $ - $ 814 $ 31,195 $ 1,861,899 $ 1,893,094 $ 814 $ -multi-family

Commercial real estate:

Non-owner 9,219 25,406 76,916 111,541 3,992,512 4,104,053 76,916 -occupied

Owner 12,186 2,758 90,075 105,019 1,736,897 1,841,916 90,075 -occupied

Commercialand 11,096 1,971 35,534 48,601 5,554,822 5,603,423 34,965 569industrial

Construction 11,749 - 22,400 34,149 873,587 907,736 22,400 -

Mortgage 188,962 85,532 1,226,728 1,501,222 6,307,630 7,808,852 405,574 821,154

Leasing 7,564 1,408 3,040 12,012 1,232,944 1,244,956 3,040 -

Consumer:

Credit cards 4,824 3,883 10,779 19,486 858,277 877,763 - 10,779

Home equitylines of 121 10 6,901 7,032 86,129 93,161 6,855 46credit

Personal 11,372 6,916 26,817 45,105 1,381,634 1,426,739 26,817 -

Auto 47,396 8,783 15,405 71,584 3,131,553 3,203,137 15,405 -

Other 360 375 15,489 16,224 110,574 126,798 15,281 208

Total $ 335,230 $ 137,042 $ 1,530,898 $ 2,003,170 $ 27,128,458 $ 29,131,628 $ 698,142 $ 832,756



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 $ (30,253) $ - $ 5,532 $ (24,721) $ 22,463 $ (2,258) $ 5,532 $ -multi-family

Commercial real estate:

Non-owner 23,530 (25,406) (4,164) (6,040) 27,650 21,610 (4,164) -occupied

Owner (7,284) (1,515) (10,074) (18,873) (18,430) (37,303) (10,074) -occupied

Commercialand (5,712) (780) 31,539 25,047 (11,650) 13,397 31,501 38industrial

Construction (11,749) 3,080 (7,523) (16,192) (26,431) (42,623) (7,523) -

Mortgage (21,685) (7,035) (218,230) (246,950) 116,576 (130,374) (21,598) (196,632)

Leasing (1,510) 695 (754) (1,569) 54,541 52,972 (754) -

Consumer:

Credit cards (453) (1,057) (2,758) (4,268) 6,666 2,398 - (2,758)

Home equitylines of 380 200 (524) 56 (7,790) (7,734) (478) (46)credit

Personal (1,395) (1,893) (2,124) (5,412) (19,038) (24,450) (2,124) -

Auto (8,364) (1,378) (2,119) (11,861) 97,751 85,890 (2,119) -

Other (146) (278) (1,201) (1,625) 1,089 (536) (1,158) (43)

Total $ (64,641) $ (35,367) $ (212,400) $ (312,408) $ 243,397 $ (69,011) $ (12,959) $ (199,441)

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table K - Non-Performing Assets

(Unaudited)

Variance

(Dollars in thousands)

30-Jun-21

As a % of loans HIP by category

31-Mar-21

As a % of loans HIP by category

30-Jun-20

As a % of loans HIP by category

Q2 2021 vs. Q1 2021

Q2 2021 vs. Q2 2020

Non-accrual loans:

Commercial

$225,565

1.7

%

$202,770

1.5

%

$263,129

1.9

%

$22,795

$(37,564)

Construction

14,877

1.7

22,400

2.5

-

-

(7,523)

14,877

Lease financing

2,286

0.2

3,040

0.2

4,751

0.4

(754)

(2,465)

Mortgage

383,976

5.0

405,574

5.2

411,406

5.5

(21,598)

(27,430)

Auto

13,286

0.4

15,405

0.5

22,111

0.8

(2,119)

(8,825)

Consumer

45,193

1.8

48,953

1.9

58,807

2.1

(3,760)

(13,614)

Total non-performing loans held-in-portfolio

685,183

2.4

%

698,142

2.4

%

760,204

2.6

%

(12,959)

(75,021)

Non-performing loans held-for-sale [1]

8,700

3,549

6,778

5,151

1,922

Other real estate owned ("OREO")

73,272

72,060

113,940

1,212

(40,668)

Total non-performing assets

$767,155

$773,751

$880,922

$(6,596)

$(113,767)

Accruing loans past due 90 days or more [2]

$633,315

$832,756

$878,776

$(199,441)

$(245,461)

Ratios:

Non-performing assets to total assets

1.06

%

1.16

%

1.40

%

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

2.36

2.40

2.62

Allowance for credit losses to loans held-in-portfolio

2.70

2.75

3.16

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

114.68

114.70

120.81

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

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

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table K - Non-Performing Assets

(Unaudited)

Variance

As a % As a % As a % Q2 2021 Q2 2021(Dollars in 30-Jun-21 of loans 31-Mar-21 of loans 30-Jun-20 of loans vs. vs.thousands) HIP by HIP by HIP by Q1 2021 Q2 2020 category category category

Non-accrual loans:

Commercial $225,565 1.7 % $202,770 1.5 % $263,129 1.9 % $22,795 $(37,564)

Construction 14,877 1.7 22,400 2.5 - - (7,523) 14,877

Lease financing 2,286 0.2 3,040 0.2 4,751 0.4 (754) (2,465)

Mortgage 383,976 5.0 405,574 5.2 411,406 5.5 (21,598) (27,430)

Auto 13,286 0.4 15,405 0.5 22,111 0.8 (2,119) (8,825)

Consumer 45,193 1.8 48,953 1.9 58,807 2.1 (3,760) (13,614)

Totalnon-performing 685,183 2.4 % 698,142 2.4 % 760,204 2.6 % (12,959) (75,021)loansheld-in-portfolio

Non-performingloans 8,700 3,549 6,778 5,151 1,922held-for-sale [1]

Other real estate 73,272 72,060 113,940 1,212 (40,668)owned ("OREO")

Total $non-performing $767,155 $773,751 $880,922 $(6,596) (113,767)assets

Accruing loans $ $past due 90 days $633,315 $832,756 $878,776 (199,441) (245,461)or more [2]

Ratios:

Non-performingassets to total 1.06 % 1.16 % 1.40 % assets

Non-performingloansheld-in-portfolio 2.36 2.40 2.62 to loansheld-in-portfolio

Allowance forcredit losses to 2.70 2.75 3.16 loansheld-in-portfolio

Allowance forcredit losses tonon-performing 114.68 114.70 120.81 loans, excludingloansheld-for-sale

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

[2] 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.The balance of these loans includes $15 million at June 30, 2021, related tothe rebooking of loans previously pooled into GNMA securities, in which theCorporation had a buy-back option as further described below (March 31, 2021 -$29 million; June 30, 2020 - $522 million). Under the GNMA program, issuerssuch as BPPR have the option but not the obligation to repurchase loans thatare 90 days or more past due. For accounting purposes, these loans subject tothe repurchase option are required to be reflected (rebooked) on the financialstatements of BPPR with an offsetting liability. While the borrowers for ourserviced GNMA portfolio benefited from the moratorium, the delinquency statusof these loans continued to be reported to GNMA without considering themoratorium. These balances include $363 million of residential mortgage loansinsured by FHA or guaranteed by the VA that are no longer accruing interest asof June 30, 2021 (March 31, 2021 - $341 million; June 30, 2020 - $234 million).Furthermore, the Corporation has approximately $56 million in reverse mortgageloans which are guaranteed by FHA, but which are currently not accruinginterest. Due to the guaranteed nature of the loans, it is the Corporation'spolicy to exclude these balances from non-performing assets (March 31, 2021 -$58 million; June 30, 2020 - $62 million).

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio:

Quarter ended

Quarter ended

30-Jun-21

31-Mar-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$200,863

$1,907

$202,770

$204,092

$5,988

$210,080

Plus:

New non-performing loans

39,657

7,570

47,227

7,724

1,693

9,417

Advances on existing non-performing loans

-

1

1

-

6

6

Less:

Non-performing loans transferred to OREO

(2,346)

-

(2,346)

(3,850)

-

(3,850)

Non-performing loans charged-off

(1,515)

(624)

(2,139)

(2,391)

(352)

(2,743)

Loans returned to accrual status / loan collections

(18,956)

(992)

(19,948)

(4,712)

(3,655)

(8,367)

Loans transferred to held-for-sale

-

-

-

-

(1,773)

(1,773)

Ending balance NPLs

$217,703

$7,862

$225,565

$200,863

$1,907

$202,770

Construction loans held-in-portfolio:

Quarter ended

Quarter ended

30-Jun-21

31-Mar-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$14,877

$7,523

$22,400

$21,497

$7,560

$29,057

Plus:

New non-performing loans

-

-

-

-

12,141

12,141

Less:

Non-performing loans charged-off

-

(523)

(523)

(6,620)

-

(6,620)

Loans returned to accrual status / loan collections

-

-

-

-

(12,178)

(12,178)

Loans transferred to held-for-sale

-

(7,000)

(7,000)

-

-

-

Ending balance NPLs

$14,877

$-

$14,877

$14,877

$7,523

$22,400

Mortgage loans held-in-portfolio:

Quarter ended

Quarter ended

30-Jun-21

31-Mar-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$390,781

$14,793

$405,574

$414,343

$14,864

$429,207

Plus:

New non-performing loans

43,432

4,774

48,206

58,397

4,323

62,720

Advances on existing non-performing loans

-

11

11

-

5

5

Less:

Non-performing loans transferred to OREO

(8,257)

-

(8,257)

(801)

-

(801)

Non-performing loans charged-off

(4,297)

-

(4,297)

(8,722)

(1)

(8,723)

Loans returned to accrual status / loan collections

(51,006)

(6,255)

(57,261)

(72,436)

(4,398)

(76,834)

Ending balance NPLs

$370,653

$13,323

$383,976

$390,781

$14,793

$405,574

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

Quarter ended

Quarter ended

30-Jun-21

31-Mar-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$606,521

$24,223

$630,744

$639,932

$28,412

$668,344

Plus:

New non-performing loans

83,089

12,344

95,433

66,121

18,157

84,278

Advances on existing non-performing loans

-

12

12

-

11

11

Less:

Non-performing loans transferred to OREO

(10,603)

-

(10,603)

(4,651)

-

(4,651)

Non-performing loans charged-off

(5,812)

(1,147)

(6,959)

(17,733)

(353)

(18,086)

Loans returned to accrual status / loan collections

(69,962)

(7,247)

(77,209)

(77,148)

(20,231)

(97,379)

Loans transferred to held-for-sale

-

(7,000)

(7,000)

-

(1,773)

(1,773)

Ending balance NPLs

$603,233

$21,185

$624,418

$606,521

$24,223

$630,744

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)



Commercial loans held-in-portfolio:

Quarter ended Quarter ended

30-Jun-21 31-Mar-21

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

Beginning balance $200,863 $1,907 $202,770 $204,092 $5,988 $210,080NPLs

Plus:

New non-performing 39,657 7,570 47,227 7,724 1,693 9,417loans

Advances on existing - 1 1 - 6 6non-performing loans

Less:

Non-performing loans (2,346) - (2,346) (3,850) - (3,850)transferred to OREO

Non-performing loans (1,515) (624) (2,139) (2,391) (352) (2,743)charged-off

Loans returned toaccrual status / (18,956) (992) (19,948) (4,712) (3,655) (8,367)loan collections

Loans transferred to - - - - (1,773) (1,773)held-for-sale

Ending balance NPLs $217,703 $7,862 $225,565 $200,863 $1,907 $202,770



Construction loans held-in-portfolio:

Quarter ended Quarter ended

30-Jun-21 31-Mar-21

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

Beginning balance $14,877 $7,523 $22,400 $21,497 $7,560 $29,057NPLs

Plus:

New non-performing - - - - 12,141 12,141loans

Less:

Non-performing loans - (523) (523) (6,620) - (6,620)charged-off

Loans returned toaccrual status / - - - - (12,178) (12,178)loan collections

Loans transferred to - (7,000) (7,000) - - -held-for-sale

Ending balance NPLs $14,877 $- $14,877 $14,877 $7,523 $22,400



Mortgage loans held-in-portfolio:

Quarter ended Quarter ended

30-Jun-21 31-Mar-21

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

Beginning balance $390,781 $14,793 $405,574 $414,343 $14,864 $429,207NPLs

Plus:

New non-performing 43,432 4,774 48,206 58,397 4,323 62,720loans

Advances on existing - 11 11 - 5 5non-performing loans

Less:

Non-performing loans (8,257) - (8,257) (801) - (801)transferred to OREO

Non-performing loans (4,297) - (4,297) (8,722) (1) (8,723)charged-off

Loans returned toaccrual status / (51,006) (6,255) (57,261) (72,436) (4,398) (76,834)loan collections

Ending balance NPLs $370,653 $13,323 $383,976 $390,781 $14,793 $405,574



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

Quarter ended Quarter ended

30-Jun-21 31-Mar-21

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

Beginning balance $606,521 $24,223 $630,744 $639,932 $28,412 $668,344NPLs

Plus:

New non-performing 83,089 12,344 95,433 66,121 18,157 84,278loans

Advances on existing - 12 12 - 11 11non-performing loans

Less:

Non-performing loans (10,603) - (10,603) (4,651) - (4,651)transferred to OREO

Non-performing loans (5,812) (1,147) (6,959) (17,733) (353) (18,086)charged-off

Loans returned toaccrual status / (69,962) (7,247) (77,209) (77,148) (20,231) (97,379)loan collections

Loans transferred to - (7,000) (7,000) - (1,773) (1,773)held-for-sale

Ending balance NPLs $603,233 $21,185 $624,418 $606,521 $24,223 $630,744

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

Quarters ended

(Dollars in thousands)

30-Jun-21

31-Mar-21

30-Jun-20

Balance at beginning of period - loans held-in-portfolio

$800,797

$896,250

$919,716

Provision for credit losses (benefit)

(17,500)

(75,779)

63,104

Initial allowance for credit losses - PCD Loans

1,202

1,356

567

784,499

821,827

983,387

Net loans charged-off (recovered):

BPPR

Commercial

(9,877)

(1,434)

1,097

Construction

(479)

5,917

(195)

Lease financing

393

118

3,390

Mortgage

935

8,303

7,554

Consumer

7,545

6,570

50,297

Total BPPR

(1,483)

19,474

62,143

Popular U.S.

Commercial

(413)

16

(784)

Construction

93

-

-

Mortgage

(423)

(80)

(19)

Consumer

935

1,620

3,613

Total Popular U.S.

192

1,556

2,810

Total loans charged-off (recovered) - Popular, Inc.

(1,291)

21,030

64,953

Balance at end of period - loans held-in-portfolio

$785,790

$800,797

$918,434

Balance at beginning of period - unfunded commitments

$9,569

$15,851

$4,466

Provision for credit losses (benefit)

367

(6,282)

2,251

Balance at end of period - unfunded commitments [1]

$9,936

$9,569

$6,717

POPULAR, INC.

Annualized net charge-offs (recoveries) to average loans held-in-portfolio

(0.02)

%

0.29

%

0.92

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

N.M.

-360.34

%

97.15

%

BPPR

Annualized net charge-offs (recoveries) to average loans held-in-portfolio

(0.03)

%

0.36

%

1.20

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

N.M

-205.28

%

97.23

%

Popular U.S.

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

0.01

%

0.08

%

0.15

%

Provision for credit losses (benefit) - loan portfolios to net charge-offs

N.M.

N.M.

95.41

%

N.M. - Not meaningful.

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

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)



Quarters ended

(Dollars in thousands) 30-Jun-21 31-Mar-21 30-Jun-20

Balance at beginning of period - loans $800,797 $896,250 $919,716 held-in-portfolio

Provision for credit losses (benefit) (17,500) (75,779) 63,104

Initial allowance for credit losses - 1,202 1,356 567 PCD Loans

784,499 821,827 983,387

Net loans charged-off (recovered):

BPPR

Commercial (9,877) (1,434) 1,097

Construction (479) 5,917 (195)

Lease financing 393 118 3,390

Mortgage 935 8,303 7,554

Consumer 7,545 6,570 50,297

Total BPPR (1,483) 19,474 62,143

Popular U.S.

Commercial (413) 16 (784)

Construction 93 - -

Mortgage (423) (80) (19)

Consumer 935 1,620 3,613

Total Popular U.S. 192 1,556 2,810

Total loans charged-off (recovered) - (1,291) 21,030 64,953 Popular, Inc.

Balance at end of period - loans $785,790 $800,797 $918,434 held-in-portfolio



Balance at beginning of period - $9,569 $15,851 $4,466 unfunded commitments

Provision for credit losses (benefit) 367 (6,282) 2,251

Balance at end of period - unfunded $9,936 $9,569 $6,717 commitments [1]



POPULAR, INC.

Annualized net charge-offs (recoveries) (0.02) % 0.29 % 0.92 %to average loans held-in-portfolio

Provision for credit losses (benefit) - N.M. -360.34 % 97.15 %loan portfolios to net charge-offs

BPPR

Annualized net charge-offs (recoveries) (0.03) % 0.36 % 1.20 %to average loans held-in-portfolio

Provision for credit losses (benefit) - N.M -205.28 % 97.23 %loan portfolios to net charge-offs

Popular U.S.

Annualized net charge-offs to average 0.01 % 0.08 % 0.15 %loans held-in-portfolio

Provision for credit losses (benefit) - N.M. N.M. 95.41 %loan portfolios to net charge-offs

N.M. - Not meaningful.

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

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

30-Jun-21

(Dollars in thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Total ACL

$271,144

$11,256

$182,619

$17,551

$303,220

$785,790

Total loans held-in-portfolio

$13,437,932

$865,113

$7,678,478

$1,297,928

$5,783,166

$29,062,617

ACL to loans held-in-portfolio

2.02

%

1.30

%

2.38

%

1.35

%

5.24

%

2.70

%

31-Mar-21

(Dollars in thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Total ACL

$276,219

$9,195

$202,126

$12,687

$300,570

$800,797

Total loans held-in-portfolio

$13,442,486

$907,736

$7,808,852

$1,244,956

$5,727,598

$29,131,628

ACL to loans held-in-portfolio

2.05

%

1.01

%

2.59

%

1.02

%

5.25

%

2.75

%

Variance

(Dollars in thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Total ACL

$(5,075)

$2,061

$(19,507)

$4,864

$2,650

$(15,007)

Total loans held-in-portfolio

$(4,554)

$(42,623)

$(130,374)

$52,972

$55,568

$(69,011)

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)



30-Jun-21

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

Total ACL $271,144 $11,256 $182,619 $17,551 $303,220 $785,790

Total loans $13,437,932 $865,113 $7,678,478 $1,297,928 $5,783,166 $29,062,617 held-in-portfolio

ACL to loans 2.02 % 1.30 % 2.38 % 1.35 % 5.24 % 2.70 %held-in-portfolio





31-Mar-21

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

Total ACL $276,219 $9,195 $202,126 $12,687 $300,570 $800,797

Total loans $13,442,486 $907,736 $7,808,852 $1,244,956 $5,727,598 $29,131,628 held-in-portfolio

ACL to loans 2.05 % 1.01 % 2.59 % 1.02 % 5.25 % 2.75 %held-in-portfolio



Variance

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

Total ACL $(5,075) $2,061 $(19,507) $4,864 $2,650 $(15,007)

Total loans $(4,554) $(42,623) $(130,374) $52,972 $55,568 $(69,011) held-in-portfolio

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

30-Jun-21

Puerto Rico

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

ACL

$186,784

$1,220

$166,808

$17,551

$289,490

$661,853

Loans held-in-portfolio

$7,631,039

$142,947

$6,515,157

$1,297,928

$5,560,964

$21,148,035

ACL to loans held-in-portfolio

2.45

%

0.85

%

2.56

%

1.35

%

5.21

%

3.13

%

31-Mar-21

Puerto Rico

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

ACL

$197,111

$260

$185,805

$12,687

$285,793

$681,656

Loans held-in-portfolio

$7,782,288

$160,597

$6,675,979

$1,244,956

$5,470,445

$21,334,265

ACL to loans held-in-portfolio

2.53

%

0.16

%

2.78

%

1.02

%

5.22

%

3.20

%

Variance

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

ACL

$(10,327)

$960

$(18,997)

$4,864

$3,697

$(19,803)

Loans held-in-portfolio

$(151,249)

$(17,650)

$(160,822)

$52,972

$90,519

$(186,230)

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)



30-Jun-21

Puerto Rico

(In thousands) Commercial Construction Mortgage Lease Consumer Total financing

ACL $186,784 $1,220 $166,808 $17,551 $289,490 $661,853

Loans $7,631,039 $142,947 $6,515,157 $1,297,928 $5,560,964 $21,148,035 held-in-portfolio

ACL to loans 2.45 % 0.85 % 2.56 % 1.35 % 5.21 % 3.13 %held-in-portfolio





31-Mar-21

Puerto Rico

(In thousands) Commercial Construction Mortgage Lease Consumer Total financing

ACL $197,111 $260 $185,805 $12,687 $285,793 $681,656

Loans $7,782,288 $160,597 $6,675,979 $1,244,956 $5,470,445 $21,334,265 held-in-portfolio

ACL to loans 2.53 % 0.16 % 2.78 % 1.02 % 5.22 % 3.20 %held-in-portfolio





Variance

(In thousands) Commercial Construction Mortgage Lease Consumer Total financing

ACL $(10,327) $960 $(18,997) $4,864 $3,697 $(19,803)

Loans $(151,249) $(17,650) $(160,822) $52,972 $90,519 $(186,230) held-in-portfolio

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)

30-Jun-21

Popular U.S.

(In thousands)

Commercial

Construction

Mortgage

Consumer

Total

ACL

$84,360

$10,036

$15,811

$13,730

$123,937

Loans held-in-portfolio

$5,806,893

$722,166

$1,163,321

$222,202

$7,914,582

ACL to loans held-in-portfolio

1.45

%

1.39

%

1.36

%

6.18

%

1.57

%

31-Mar-21

Popular U.S.

(In thousands)

Commercial

Construction

Mortgage

Consumer

Total

ACL

$79,108

$8,935

$16,321

$14,777

$119,141

Loans held-in-portfolio

$5,660,198

$747,139

$1,132,873

$257,153

$7,797,363

ACL to loans held-in-portfolio

1.40

%

1.20

%

1.44

%

5.75

%

1.53

%

Variance

(In thousands)

Commercial

Construction

Mortgage

Consumer

Total

ACL

$5,252

$1,101

$(510)

$(1,047)

$4,796

Loans held-in-portfolio

$146,695

$(24,973)

$30,448

$(34,951)

$117,219

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

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

(Unaudited)



30-Jun-21

Popular U.S.

(In thousands) Commercial Construction Mortgage Consumer Total

ACL $84,360 $10,036 $15,811 $13,730 $123,937

Loans $5,806,893 $722,166 $1,163,321 $222,202 $7,914,582 held-in-portfolio

ACL to loans 1.45 % 1.39 % 1.36 % 6.18 % 1.57 %held-in-portfolio





31-Mar-21

Popular U.S.

(In thousands) Commercial Construction Mortgage Consumer Total

ACL $79,108 $8,935 $16,321 $14,777 $119,141

Loans $5,660,198 $747,139 $1,132,873 $257,153 $7,797,363 held-in-portfolio

ACL to loans 1.40 % 1.20 % 1.44 % 5.75 % 1.53 %held-in-portfolio





Variance

(In thousands) Commercial Construction Mortgage Consumer Total

ACL $5,252 $1,101 $(510) $(1,047) $4,796

Loans $146,695 $(24,973) $30,448 $ $117,219 held-in-portfolio (34,951)

Popular, Inc.

Financial Supplement to Second Quarter 2021 Earnings Release

Table Q - Reconciliation to GAAP Financial Measures

(Unaudited)

(In thousands, except share or per share information)

30-Jun-21

31-Mar-21

30-Jun-20

Total stockholders' equity

$5,814,614

$5,897,559

$5,780,165

Less: Preferred stock

(22,143)

(22,143)

(22,143)

Less: Goodwill

(671,122)

(671,122)

(671,122)

Less: Other intangibles

(20,440)

(21,415)

(24,511)

Total tangible common equity

$5,100,909

$5,182,879

$5,062,389

Total assets

$72,657,293

$66,870,268

$62,845,352

Less: Goodwill

(671,122)

(671,122)

(671,122)

Less: Other intangibles

(20,440)

(21,415)

(24,511)

Total tangible assets

$71,965,731

$66,177,731

$62,149,719

Tangible common equity to tangible assets

7.09

%

7.83

%

8.15

%

Common shares outstanding at end of period

80,656,480

84,379,180

84,184,927

Tangible book value per common share

$63.24

$61.42

$60.13

Quarterly average

Total stockholders' equity [1]

$5,683,325

$5,693,672

$5,274,071

Less: Preferred Stock

(22,143)

(22,143)

(22,143)

Less: Goodwill

(671,121)

(671,121)

(671,121)

Less: Other intangibles

(21,350)

(22,104)

(25,497)

Total tangible equity

$4,968,711

$4,978,304

$4,555,310

Return on average tangible common equity

17.58

%

21.37

%

11.23

%

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20210722005308/en/

CONTACT: Popular, Inc.

CONTACT: Investor Relations: Paul J. Cardillo, 212-417-6721 Investor Relations Officer pcardillo@popular.com

CONTACT: or

CONTACT: Media Relations: MC Gonzlez Noguera, 917-804-5253 Executive Vice President and Chief Communications & Public Affairs Officer mc.gonzalez@popular.com