Business Wire | Jan 27, 2022 07:03AM EST

Popular, Inc. Announces Fourth Quarter 2021 Financial Results

Jan. 27, 2022

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Jan. 27, 2022--Popular, Inc. (the "Corporation," "Popular," "we," "us," "our") (NASDAQ:BPOP) reported net income of $206.1 million for the quarter ended December 31, 2021, compared to net income of $248.1 million for the quarter ended September 30, 2021.

Ignacio Alvarez, President and Chief Executive Officer, said: "Our fourth quarter results reflect a strong finish to a record year. During the quarter we continued adding new clients, increasing our deposit base and growing most of our loan portfolios. We also launched a new digital platform where small business customers in Puerto Rico can apply for loans in a more convenient way. And we were especially pleased by the performance of our U.S. mainland operations that achieved commercial loan growth of $726 million, including the $105 million from the K-2 acquisition. Our financial performance in 2021 was driven by solid credit quality trends that led to a benefit in the provision of $194 million. Our net charge-off ratio of 0.07% was the lowest since at least 2004.

Our results reflect the strength of our diverse sources of revenues. Solid financial performance and a strong capital position led to a dividend increase of 22% on our common stock effective Q2 2022 and a common stock repurchase program of $500 million for 2022.

Further demonstrating our commitment to the communities we serve, this fall we gained the certification to a host of our low-cost deposit products that meet the Bank On certification requirements. We are also proud to be included in this year's Bloomberg Gender-Equality Index (GEI) as we continue to make strides in gender parity at Popular and across the financial industry.

While cognizant of the challenges related to the pandemic, we enter this year ready to build on the momentum of 2021, with an improving economic and fiscal environment in Puerto Rico and the rising interest rate environment.

I want to thank our colleagues whose dedication, resilience and talent helped us achieve our record results. They continue to be our most valuable asset."

Significant Events

Fourth Quarter Financial Highlights

For the fourth quarter of 2021, the Corporation recorded net income of $206.1 million, compared to net income of $248.1 million for the previous quarter. The fourth quarter's results include a release in the allowance for credit losses of $33.1 million driven by the releases in the Puerto Rico commercial and mortgage portfolios, resulting from improving credit quality, partially offset by reserve increases related to an increase in weight to downside economic scenarios and higher loan volumes. Net interest income was $501.3 million, an increase of $11.9 million compared to the previous quarter, mainly due to higher income from loans issued under the U.S. Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"), loan growth, coupled with activity from lease financing business acquired in October 2021 by Popular Equipment Finance LLC ("PEF") and higher income from the repayment of purchased credit deteriorated ("PCD") loans. Net interest margin increased 1 basis point to 2.78%. Total assets grew by $0.9 billion from the previous quarter, reflecting loan growth in Popular Bank ("PB") and an increase in deposits across all sectors in Puerto Rico.

Acquisition of K2 Capital Group LLC

On October 15, 2021, PEF, a newly-formed wholly-owned subsidiary of PB, completed the acquisition of certain assets and the assumption of certain liabilities of Minnesota-based K2 Capital Group LLC's ("K2") equipment leasing and financing business (the "Acquired Business"). PEF made a payment to K2 of approximately $157 million in cash, representing a premium of approximately $42 million over the book value of K2's net assets, which has been preliminarily recorded as goodwill. An additional approximate $29 million in earnout payments could be payable to K2 over the next three years, contingent upon the achievement of certain agreed-upon financial targets during such period.

Specializing in the healthcare industry, the Acquired Business provides a variety of lease products, including operating and finance leases, and also offers private label vendor finance programs to equipment manufacturers and healthcare organizations. The acquisition provides PB with a national equipment leasing platform that complements its existing healthcare lending business.

As part of the transaction, PEF acquired approximately $115 million in net assets that consisted mainly of commercial finance leases.

The transaction was accounted for as a business combination. The Corporation is in the process of finalizing the assessment of the fair value of the net assets acquired as part of the transaction and expects to complete its assessment before the filing of its annual report on Form 10-K for the year ended December 31, 2021. Any fair value adjustments would impact the value of the recorded assets and liabilities with a corresponding offset to goodwill.

Capital Actions

Redemption of Trust Preferred Securities

On November 1, 2021, the Corporation redeemed all outstanding 6.70% Cumulative Monthly Income Trust Preferred Securities (the "Trust Preferred Securities") issued by the Popular Capital Trust I (the "Trust") (liquidation amount of $25 per security and amounting to $186,663,800 (or $181,063,250 after excluding the Corporation's participation in the Trust of $5,600,550) in the aggregate). The redemption price for the Trust Preferred Securities was equal to $25 per security plus accrued and unpaid distributions up to and excluding the redemption date in the amount of $0.139583 per security, for a total payment per security in the amount of $25.139583. Upon redemption, Popular delisted the Trust Preferred Securities (NASDAQ: BPOPN) from the Nasdaq Global Select Market.

Announcement of 2022 Capital Actions

On January 12, 2022 the Corporation announced the following capital actions:

* an increase in the Corporation's quarterly common stock dividend from $0.45 per share to $0.55 per share, commencing with the dividend payable in the second quarter of 2022, subject to the approval by the Corporation's Board of Directors; and * common stock repurchases of up to $500 million during 2022.

The Corporation's planned common stock repurchases may be executed in the open market or in privately negotiated transactions. The timing and exact amount of such repurchases will be subject to various factors, including market conditions and the Corporation's capital position and financial performance.

Earnings Highlights



(Unaudited) Quarters ended Years ended

(Dollars inthousands, except per 31-Dec-21 30-Sep-21 31-Dec-20 31-Dec-21 31-Dec-20share information)

Net interest income $501,283 $489,393 $471,616 $1,957,590 $1,856,613

Provision for credit (33,050 ) (61,173 ) 21,218 (193,464 ) 292,536losses (benefit)

Net interest incomeafter provision for 534,333 550,566 450,398 2,151,054 1,564,077credit losses(benefit)

Other non-interest 164,677 169,258 144,847 642,128 512,312income

Operating expenses 417,394 388,168 375,924 1,549,275 1,457,829

Income before income 281,616 331,656 219,321 1,243,907 618,560tax

Income tax expense 75,552 83,542 43,045 309,018 111,938

Net income $206,064 $248,114 $176,276 $934,889 $506,622

Net income applicable $205,711 $247,761 $175,923 $933,477 $504,864to common stock

Net income per common $2.59 $3.09 $2.10 $11.49 $5.88share-basic

Net income per common $2.58 $3.09 $2.10 $11.46 $5.87share-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 year ended December 31, 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 December 31, 2021 was $501.3 million compared to $489.4 million in the previous quarter, an increase of $11.9 million. Net interest income, on a taxable equivalent basis, for the fourth quarter of 2021 was $543.9 million, an increase of $7.6 million when compared to $536.3 million in the third quarter of 2021. The increase in net interest income on a taxable equivalent is mainly related to the repayment of PCD loans, higher PPP fees during the quarter and the activity recognized in the quarter from PEF's recently acquired lease financing business.

Net interest margin for the fourth quarter was 2.78% compared to 2.77% in the previous quarter. The increase in net interest margin is due to the repayment of PCD loans and higher PPP loan fees related to loans, partially offset by a lower yield on money markets and investment securities due to lower volume of mortgage-backed securities. On a taxable equivalent basis, net interest margin for the fourth quarter of 2021 was 3.02% compared to 3.04% in the third quarter of 2021, a decrease of 2 basis points. The main variances in net interest income on a taxable equivalent basis were:

* Higher interest income from loans by $8.2 million mainly due to the following: Higher income from commercial loans including $3.7 million from the repayment of PCD loans, interest income and fees from PPP loans by $1.2 million and $2.4 million from loans acquired by PEF from K2. Interest income for the commercial portfolio also reflected loan growth at PB which, excluding PPP loans and including the finance lease portfolio acquired by PEF, increased by $726 million or 13% and $284 million in average balances from the previous quarter; Auto and lease financing continued its positive trend increasing by $102 million in average balances and reflecting an increase in interest income of $0.7 million Partially offset by: Lower interest income from mortgage loans due lower average volume resulting from continued amortization of the Banco Popular de Puerto Rico ("BPPR") portfolio Lower interest expense on borrowings resulting from the redemption during the quarter of the Trust Preferred Securities, totaling $186.7 million.

These positive variances were partially offset by:

* Lower interest income from money market investments, trading and investment securities by $3.4 million due lower volume and yield of mortgage-backed securities, partially offset by a higher volume of lower yielding U.S. Treasury notes.

The Corporation recognized income of $23.2 million related to loans issued under the SBA PPP program, compared to $22.0 million in the previous quarter. These loans carried a yield of approximately 17.86% in this quarter, including the amortization of fees received under the program, compared to 10.10% last quarter. This portfolio of loans issued under the SBA PPP declined by $265.2 million in BPPR to a balance of $255.3 million and declined by $51.4 million in PB to a balance of $97.9 million. On December 31, 2021, the portfolio [at BPPR and PB] had a remaining [aggregate] balance of unamortized fees of $18.1 million.

Net interest income for the BPPR segment amounted to $425.9 million for the fourth quarter of 2021, compared to $419.2 million for the third quarter. Net interest margin for the fourth quarter of 2021 was 2.73%, a decrease of 2 basis points when compared to 2.75% for the previous quarter. As discussed above, net interest margin was positively impacted by the repayment of PCD loans, higher PPP fees and a higher volume of auto and lease financing loans, but the earning assets mix continues to impact the net interest margin. The cost of interest-bearing deposits was 0.16% compared to 0.17% in the previous quarter. Total cost of deposits for the quarter was 0.12%, compared to 0.13% reported for the third quarter of 2021.

Net interest income for PB was $83.2 million for the quarter ended December 31, 2021, compared to $80.0 million during the previous quarter. Net interest margin for the quarter was 3.47% or 11 basis point higher than the previous quarter. The increase in net interest income is driven by a higher volume of commercial loans, as discussed above, from both origination activity and the acquisition of the equipment finance leases business from K2. The lower cost on deposits also benefited the net interest margin at PB. The cost of interest-bearing deposits was 0.52% or 4 basis points lower than the 0.56% reported in the third quarter, decreasing for the ninth consecutive quarter. Total cost of deposits for the quarter, including demand deposits, was 0.40%, compared to 0.43% in the previous quarter.

Non-interest income

Non-interest income decreased by $4.6 million to $164.7 million for the quarter ended December 31, 2021, compared to $169.3 million for the quarter ended September 30, 2021. The variance in non-interest income was primarily driven by:

* lower other operating income by $14.8 million mainly due to lower net earnings from the combined portfolio of investments under the equity method by $5.4 million and the impact of a gain of $7.0 million recognized in the third quarter of 2021 by BPPR as a result of the sale and partial leaseback of two corporate office buildings; partially offset by: * higher other service fees by $3.3 million mainly due to higher insurance fees by $3.5 million principally resulting from contingent insurance commissions that are typically recognized during the fourth quarter and higher credit card fees by $2.2 million mainly in interchange income; and * higher income from mortgage banking activities by $8.7 million mostly due to a favorable variance in fair value adjustments on mortgage servicing rights ("MSRs") of $7.5 million mainly due to a decrease in estimated prepayments and an increase in float earnings and higher realized gains on closed derivative positions by $1.7 million.

Refer to Table B for further details.

Operating expenses

Operating expenses for the fourth quarter of 2021 totaled $417.4 million, an increase of $29.2 million when compared to the third quarter of 2021. The variance in operating expenses was driven primarily by:

* higher personnel cost by $2.8 million mainly due to salary increases and higher incentives and commissions; * higher equipment expense by $2.6 million due to higher purchases of equipment by $0.6 million, higher amortization of software maintenance and higher depreciation of equipment held for operating leases by $0.5 million, the latter, related to the activity at PEF; * higher business promotion expenses by $7.7 million mainly as a result of seasonal activities, higher donations by $1.8 million and higher credit cards rewards expense related to transactional volumes by $2.0 million; * higher other operating expenses by $14.6 million due to impairment losses on undeveloped properties by $5.0 million, based on the estimated fair value as these were reclassified to held for sale or held for investments based on management's intended use, and higher sundry losses by $9.7 million, including $3.7 million related to the termination of a white label credit card contract and higher legal reserves; and * higher amortization of intangibles by $5.3 million due to a write-down on impairment of a trademark.

Partially offset by:

* lower credit and debit card processing and other expenses by $4.2 million mainly due to volume incentives.

Full-time equivalent employees were 8,351 as of December 31, 2021, compared to 8,342 as of September 30, 2021.

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

Income taxes

For the quarter ended December 31, 2021, the Corporation recorded an income tax expense of $75.6 million, compared to $83.5 million for the previous quarter. The decrease in income tax expense was mainly attributable to lower income before tax during the fourth quarter of 2021. The effective tax rate ("ETR") for the fourth quarter of 2021 was 27%, or 2% higher when compared with the previous quarter. The ETR for the year was 25%. The ETR of the Corporation is impacted by the composition and source of its taxable income.

Credit Quality

During the fourth quarter of 2021, the Corporation continued to exhibit strong credit quality trends and low credit costs with net recoveries in NCOs and decreasing NPLs. We continue to closely monitor COVID-19 pandemic related risks on borrower performance and changes in the pace of economic recovery as new variants continue to emerge. 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 fourth quarter of 2021:

* At December 31, 2021, total non-performing loans held-in-portfolio decreased by $85.0 million from September 30, 2021. BPPR's NPLs decreased by $94.6 million, driven by lower commercial, mortgage and construction NPLs by $63.3 million, $20.7 million and $14.4 million, respectively. The commercial and construction NPLs decrease reflects payoffs related to troubled loan resolutions, and loans that were returned to accrual status during the quarter. The mortgage NPLs decrease was mainly due to the combined effects of collection efforts, increased foreclosure activity and the on-going low levels of early delinquency compared with pre-pandemic trends. PB's NPLs increased by $9.6 million, mostly due to higher mortgage and commercial NPLs by $7.5 million and $2.7 million, respectively. The mortgage NPLs increase was mostly driven by loans that did not resume payment at the end of the deferral period. At December 31, 2021, the ratio of NPLs to total loans held-in-portfolio was 1.9%, compared to 2.2% in the third quarter of 2021.

* Inflows of NPLs held-in-portfolio, excluding consumer loans, increased by $2.6 million quarter-over-quarter. In BPPR, total inflows decreased by $7.1 million, mostly driven by lower commercial and mortgage inflows of $5.2 million and $2.4 million, respectively. Mortgage inflows continued trending lower than pre-pandemic levels. NPL inflows at PB increased by $9.6 million during the quarter, mostly due to higher mortgage NPL inflows by $7.4 million, as explained above.

* NCOs decreased by $16.7 million from the third quarter to net recoveries of $7.9 million. BPPR's NCOs decreased by $17.0 million, primarily driven by lower commercial NCOs by $15.7 million mostly related to recoveries from the resolution of the abovementioned commercial non-performing loans. During the fourthquarter of 2021, the Corporation's ratio of annualized net charge-offs to average loans held-in-portfolio was (0.11%), compared to 0.12% in the third quarter of 2021. Refer to Table M for further information on net charge-offs and related ratios.

* At December 31, 2021, the ACL decreased by $23.2 million, or 3.2%, from the third quarter of 2021 to $695.4 million. The ACL incorporated updated macroeconomic scenarios for Puerto Rico and the United States. Given that any one economic outlook is inherently uncertain, the Corporation leverages multiple scenarios to estimate its ACL. The baseline scenario continues to be assigned the highest probability, followed by the pessimistic scenario. In response to recent events that impact both epidemiological and fiscal assumptions, the weight assigned to the pessimistic scenario was increased this quarter.

* In BPPR, the ACL decreased by $22.6 million mainly driven by reductions in the commercial and mortgage loans ACL. Improved appraisals, releases of qualitative reserves as well as continued borrower performance contributed to the lower ACL for these segments. The ACL for the PB segment remained flat quarter-over-quarter, as the effect of releases in qualitative reserves was partially offset by higher loan volumes and the increase in weight applied to the pessimistic scenario. The ratio of the allowance for credit losses to loans held-in-portfolio was 2.38% in the fourth quarter of 2021, compared to 2.49% in the previous quarter. The ratio of the allowance for credit losses to NPLs held-in-portfolio stood at 126.9%, compared to 113.6% in the previous quarter.

* The current baseline forecast continues to show a favorable economic scenario. GDP growth is expected for Puerto Rico and United States in 2022 and 2023. In addition, the unemployment rate is expected to continue to improve in both regions through 2022 and remain stable in 2023.

* The provision for credit losses for the loan portfolios for the fourth quarter of 2021 reflected a benefit of $31.4 million, compared to a benefit of $58.6 million in the previous quarter, reflecting the previously mentioned changes in the allowance for credit losses and NCOs recoveries. The provision for the BPPR segment was a benefit of $30.6 million, compared to a benefit of $36.0 million in the previous quarter, while the provision for the PB segment was a benefit of $0.9 million, compared to a benefit of $22.7 million in the previous quarter.

* The provision for unfunded commitments for the fourth quarter of 2021 reflected a benefit of $0.5 million, compared to a benefit of $1.5 million in the previous quarter. The provision for credit losses in our investment portfolio was a benefit of $1.1 million, compared to a benefit of $1.0 million in the third 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) 31-Dec-21 30-Sep-21 31-Dec-20

Non-performing loans $547,877 $632,835 $737,774 held-in-portfolio

Non-performing loans - - 2,738 held-for-sale

Other real estate owned ("OREO") 85,077 76,828 83,146

Total non-performing assets $632,954 $709,663 $823,658

Net (recoveries) charge-offs for $(7,881 ) $8,823 $42,078 the quarter





Ratios:

Loans held-in-portfolio $29,243,889 $28,855,372 $29,385,196

Non-performing loansheld-in-portfolio to loans 1.87 % 2.19 % 2.51 %held-in-portfolio

Allowance for credit losses to 2.38 2.49 3.05 loans held-in-portfolio

Allowance for credit losses tonon-performing loans, excluding 126.92 113.55 121.48 loans held-for-sale

Refer to Table K for additional information.

Provision for Credit Losses (Benefit) - Loan Portfolios

(Unaudited)

Quarters ended

Years ended

(In thousands)

31-Dec-21

30-Sep-21

31-Dec-20

31-Dec-21

31-Dec-20

Provision for credit losses (benefit) - loan portfolios:

BPPR

$(30,562

)

$(35,992

)

$24,756

$(129,018

)

$205,865

Popular U.S.

(859

)

(22,653

)

(13,971

)

(54,327

)

76,471

Total provision for credit losses (benefit) - loan portfolios

$(31,421

)

$(58,645

)

$10,785

$(183,345

)

$282,336

Provision for CreditLosses (Benefit) - Loan Portfolios



(Unaudited) Quarters ended Years ended

(In thousands) 31-Dec-21 30-Sep-21 31-Dec-20 31-Dec-21 31-Dec-20

Provision for creditlosses (benefit) - loan portfolios:

BPPR $ ) $ ) $24,756 $ ) $205,865 (30,562 (35,992 (129,018

Popular U.S. (859 ) (22,653 ) (13,971 ) (54,327 ) 76,471

Total provision forcredit losses $ ) $ ) $10,785 $ ) $282,336(benefit) - loan (31,421 (58,645 (183,345portfolios

Credit Quality by Segment

(Unaudited)

(In thousands)

Quarters ended

BPPR

31-Dec-21

30-Sep-21

31-Dec-20

Provision for credit losses (benefit) - loan portfolios

$(30,562

)

$(35,992

)

$24,756

Net charge-offs (recoveries)

(7,615

)

9,336

41,217

Total non-performing loans held-in-portfolio

514,289

608,871

700,377

Allowance / loans held-in-portfolio

2.85

%

2.92

%

3.43

%

Allowance / non-performing loans held-in-portfolio

115.53

%

101.30

%

105.62

%

Quarters ended

Popular U.S.

31-Dec-21

30-Sep-21

31-Dec-20

Provision for credit losses (benefit) - loan portfolios

$(859

)

$(22,653

)

$(13,971

)

Net charge-offs (recoveries)

(266

)

(513

)

861

Total non-performing loans held-in-portfolio

33,588

23,964

37,397

Allowance / loans held-in-portfolio

1.21

%

1.32

%

2.00

%

Allowance / non-performing loans held-in-portfolio

301.31

%

424.79

%

418.48

%

Credit Quality by Segment

(Unaudited)

(In thousands) Quarters ended

BPPR 31-Dec-21 30-Sep-21 31-Dec-20

Provision for credit losses (benefit) - $ ) $ ) $24,756 loan portfolios (30,562 (35,992

Net charge-offs (recoveries) (7,615 ) 9,336 41,217

Total non-performing loans 514,289 608,871 700,377 held-in-portfolio

Allowance / loans held-in-portfolio 2.85 % 2.92 % 3.43 %

Allowance / non-performing loans 115.53 % 101.30 % 105.62 %held-in-portfolio



Quarters ended

Popular U.S. 31-Dec-21 30-Sep-21 31-Dec-20

Provision for credit losses (benefit) - $(859 ) $ ) $ )loan portfolios (22,653 (13,971

Net charge-offs (recoveries) (266 ) (513 ) 861

Total non-performing loans 33,588 23,964 37,397 held-in-portfolio

Allowance / loans held-in-portfolio 1.21 % 1.32 % 2.00 %

Allowance / non-performing loans 301.31 % 424.79 % 418.48 %held-in-portfolio

Financial Condition Highlights

(Unaudited)

(In thousands)

31-Dec-21

30-Sep-21

31-Dec-20

Cash and money market investments

$17,965,152

$18,065,211

$12,131,945

Investment securities

25,267,418

24,697,876

21,864,184

Loans

29,243,889

28,855,372

29,385,196

Total assets

75,088,659

74,189,163

65,926,000

Deposits

67,005,088

66,013,561

56,866,340

Borrowings

1,155,166

1,263,413

1,346,284

Total liabilities

69,119,262

68,206,192

59,897,313

Stockholders' equity

5,969,397

5,982,971

6,028,687

Total assets increased by $0.9 billion from the third quarter of 2021, driven by:

* an increase of $0.6 billion in debt securities available-for-sale, mainly due to purchases of U.S. treasury securities, partially offset by paydowns of agency mortgage-backed securities; and

* an increase in loans held-in-portfolio by $0.4 billion mainly due to an increase of $0.7 billion in commercial loans at PB principally in the health care industry from which $0.1 billion was related to the acquisition by PEF of K2's lease financing business during the quarter, partially offset by a decrease of $0.2 billion in commercial loans at BPPR mainly due to the collection of PPP loans during the quarter.

Total liabilities increased by $0.9 billion from the third quarter of 2021, driven by:

* an increase of $1.0 billion in deposits, mainly due to higher retail and commercial demand deposits by $0.7 billion and higher Puerto Rico public sector deposits by $0.3 billion at BPPR; partially offset by

* a net reduction in borrowings of $0.1 billion, from which $0.2 billion was related to the redemption of the Trust Preferred Securities.

Common equity tier-1 ratio ("CET1"), common equity per share and tangible book value per share were 17.45%, $74.48 and $65.39, respectively, at December 31, 2021, compared to 17.36%, $74.66 and $66.01 at September 30, 2021. Refer to Table A for capital ratios.

Refer to Table C for the Statements of Financial Condition.

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 quarters ended March 31, 2021, June 30, 2021, September 30, 2021 and in our Form 10-K for the year ended December 31, 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, January 27, 2022 at 10:00 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 1-844-200-6205 (Toll Free) or 1-646-904-5544 (Local). The dial-in access code is 476774.

A replay of the webcast will be archived in Popular's website. A telephone replay will be available one hour after the end of the conference call through Thursday, February 24, 2022. The replay dial-in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 565254.

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

Financial Condition Highlights



(Unaudited)

(In thousands) 31-Dec-21 30-Sep-21 31-Dec-20

Cash and money market investments $17,965,152 $18,065,211 $12,131,945

Investment securities 25,267,418 24,697,876 21,864,184

Loans 29,243,889 28,855,372 29,385,196

Total assets 75,088,659 74,189,163 65,926,000

Deposits 67,005,088 66,013,561 56,866,340

Borrowings 1,155,166 1,263,413 1,346,284

Total liabilities 69,119,262 68,206,192 59,897,313

Stockholders' equity 5,969,397 5,982,971 6,028,687

Total assets increased by $0.9 billion from the third quarter of 2021, driven by:

* an increase of $0.6 billion in debt securities available-for-sale, mainly due to purchases of U.S. treasury securities, partially offset by paydowns of agency mortgage-backed securities; and

* an increase in loans held-in-portfolio by $0.4 billion mainly due to an increase of $0.7 billion in commercial loans at PB principally in the health care industry from which $0.1 billion was related to the acquisition by PEF of K2's lease financing business during the quarter, partially offset by a decrease of $0.2 billion in commercial loans at BPPR mainly due to the collection of PPP loans during the quarter.

Total liabilities increased by $0.9 billion from the third quarter of 2021, driven by:

* an increase of $1.0 billion in deposits, mainly due to higher retail and commercial demand deposits by $0.7 billion and higher Puerto Rico public sector deposits by $0.3 billion at BPPR; partially offset by

* a net reduction in borrowings of $0.1 billion, from which $0.2 billion was related to the redemption of the Trust Preferred Securities.

Common equity tier-1 ratio ("CET1"), common equity per share and tangible book value per share were 17.45%, $74.48 and $65.39, respectively, at December 31, 2021, compared to 17.36%, $74.66 and $66.01 at September 30, 2021. Refer to Table A for capital ratios.

Refer to Table C for the Statements of Financial Condition.

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 quarters ended March 31, 2021, June 30, 2021, September 30, 2021 and in our Form 10-K for the year ended December 31, 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, January 27, 2022 at 10:00 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 1-844-200-6205 (Toll Free) or 1-646-904-5544 (Local). The dial-in access code is 476774.

A replay of the webcast will be archived in Popular's website. A telephone replay will be available one hour after the end of the conference call through Thursday, February 24, 2022. The replay dial-in is: 1-866-813-9403 or 1-929-458-6194. The replay passcode is 565254.

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

Popular, Inc.

Financial Supplement to Fourth 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 Fourth Quarter 2021 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

Quarters ended

Years ended

31-Dec-21

30-Sep-21

31-Dec-20

31-Dec-21

31-Dec-20

Basic EPS

$2.59

$3.09

$2.10

$11.49

$5.88

Diluted EPS

$2.58

$3.09

$2.10

$11.46

$5.87

Average common shares outstanding

79,477,823

80,126,166

83,841,343

81,263,027

85,882,371

Average common shares outstanding - assuming dilution

79,652,836

80,274,942

83,940,412

81,420,154

85,975,259

Common shares outstanding at end of period

79,851,169

79,841,564

84,244,235

79,851,169

84,244,235

Market value per common share

$82.04

$77.67

$56.32

$82.04

$56.32

Market capitalization - (In millions)

$6,551

$6,201

$4,745

$6,551

$4,745

Return on average assets

1.09%

1.34%

1.08%

1.31%

0.85%

Return on average common equity

13.74%

17.10%

12.68%

16.22%

9.36%

Net interest margin (non-taxable equivalent basis)

2.78%

2.77%

3.04%

2.88%

3.29%

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

3.02%

3.04%

3.35%

3.19%

3.62%

Common equity per share

$74.48

$74.66

$71.30

$74.48

$71.30

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

$65.39

$66.01

$63.07

$65.39

$63.07

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

7.02%

7.17%

8.14%

7.02%

8.14%

Return on average tangible common equity [1]

15.66%

19.44%

14.50%

18.47%

10.75%

Tier 1 capital

17.52%

17.43%

16.33%

17.52%

16.33%

Total capital

19.38%

19.90%

18.81%

19.38%

18.81%

Tier 1 leverage

7.42%

7.38%

7.80%

7.42%

7.80%

Common Equity Tier 1 capital

17.45%

17.36%

16.26%

17.45%

16.26%

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

POPULAR, INC.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)



Quarters ended Years ended

31-Dec-21 30-Sep-21 31-Dec-20 31-Dec-21 31-Dec-20

Basic EPS $2.59 $3.09 $2.10 $11.49 $5.88

Diluted EPS $2.58 $3.09 $2.10 $11.46 $5.87

Average common shares 79,477,823 80,126,166 83,841,343 81,263,027 85,882,371outstanding

Average common sharesoutstanding - assuming 79,652,836 80,274,942 83,940,412 81,420,154 85,975,259dilution

Common sharesoutstanding at end of 79,851,169 79,841,564 84,244,235 79,851,169 84,244,235period

Market value per common $82.04 $77.67 $56.32 $82.04 $56.32share

Market capitalization - $6,551 $6,201 $4,745 $6,551 $4,745(In millions)

Return on average assets 1.09% 1.34% 1.08% 1.31% 0.85%

Return on average common 13.74% 17.10% 12.68% 16.22% 9.36%equity

Net interest margin(non-taxable equivalent 2.78% 2.77% 3.04% 2.88% 3.29%basis)

Net interest margin(taxable equivalent 3.02% 3.04% 3.35% 3.19% 3.62%basis) -non-GAAP

Common equity per share $74.48 $74.66 $71.30 $74.48 $71.30

Tangible common bookvalue per common share $65.39 $66.01 $63.07 $65.39 $63.07(non-GAAP) [1]

Tangible common equityto tangible assets 7.02% 7.17% 8.14% 7.02% 8.14%(non-GAAP) [1]

Return on averagetangible common equity 15.66% 19.44% 14.50% 18.47% 10.75%[1]

Tier 1 capital 17.52% 17.43% 16.33% 17.52% 16.33%

Total capital 19.38% 19.90% 18.81% 19.38% 18.81%

Tier 1 leverage 7.42% 7.38% 7.80% 7.42% 7.80%

Common Equity Tier 1 17.45% 17.36% 16.26% 17.45% 16.26%capital

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

POPULAR, INC.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

Quarters ended

Variance

Quarter ended

Variance

Years ended

Q4 2021

Q4 2021

(In thousands, except per share information)

31-Dec-21

30-Sep-21

vs. Q3 2021

31-Dec-20

vs. Q4 2020

31-Dec-21

31-Dec-20

Interest income:

Loans

$444,101

$435,296

$8,805

$430,988

$13,113

$1,747,827

$1,742,390

Money market investments

6,847

6,914

(67

)

2,933

3,914

21,147

19,721

Investment securities

88,315

87,952

363

85,502

2,813

353,663

329,440

Total interest income

539,263

530,162

9,101

519,423

19,840

2,122,637

2,091,551

Interest expense:

Deposits

26,331

27,029

(698

)

33,420

(7,089

)

111,621

175,855

Short-term borrowings

60

54

6

348

(288

)

319

2,457

Long-term debt

11,589

13,686

(2,097

)

14,039

(2,450

)

53,107

56,626

Total interest expense

37,980

40,769

(2,789

)

47,807

(9,827

)

165,047

234,938

Net interest income

501,283

489,393

11,890

471,616

29,667

1,957,590

1,856,613

Provision for credit losses (benefit)

(33,050

)

(61,173

)

28,123

21,218

(54,268

)

(193,464

)

292,536

Net interest income after provision for credit losses (benefit)

534,333

550,566

(16,233

)

450,398

83,935

2,151,054

1,564,077

Service charges on deposit accounts

41,613

41,312

301

39,152

2,461

162,698

147,823

Other service fees

83,793

80,445

3,348

71,156

12,637

311,248

257,892

Mortgage banking activities

17,035

8,307

8,728

9,730

7,305

50,133

10,401

Net gain on sale of debt securities

-

23

(23

)

-

-

23

41

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

(1,454

)

(401

)

(1,053

)

1,410

(2,864

)

131

6,279

Net (loss) profit on trading account debt securities

(355

)

58

(413

)

440

(795

)

(389

)

1,033

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

-

-

-

253

(253

)

(73

)

1,234

Adjustments to indemnity reserves on loans sold

1,398

2,038

(640

)

2,160

(762

)

4,406

390

Other operating income

22,647

37,476

(14,829

)

20,546

2,101

113,951

87,219

Total non-interest income

164,677

169,258

(4,581

)

144,847

19,830

642,128

512,312

Operating expenses:

Personnel costs

Salaries

96,830

95,185

1,645

92,063

4,767

371,644

370,179

Commissions, incentives and other bonuses

27,611

25,892

1,719

19,399

8,212

113,095

78,582

Pension, postretirement and medical insurance

13,971

13,893

78

12,454

1,517

52,077

44,123

Other personnel costs, including payroll taxes

22,060

22,677

(617

)

18,351

3,709

94,986

71,321

Total personnel costs

160,472

157,647

2,825

142,267

18,205

631,802

564,205

Net occupancy expenses

26,755

24,896

1,859

42,793

(16,038

)

102,226

119,345

Equipment expenses

25,180

22,537

2,643

22,395

2,785

92,097

88,932

Other taxes

15,160

14,459

701

13,532

1,628

56,783

54,454

Professional fees

Collections, appraisals and other credit related fees

3,227

3,166

61

2,948

279

13,199

12,588

Programming, processing and other technology services

69,647

69,221

426

66,483

3,164

272,386

253,565

Legal fees, excluding collections

3,445

2,535

910

2,734

711

10,712

10,611

Other professional fees

28,736

29,787

(1,051

)

31,865

(3,129

)

114,568

117,358

Total professional fees

105,055

104,709

346

104,030

1,025

410,865

394,122

Communications

6,263

6,133

130

6,274

(11

)

25,234

23,496

Business promotion

25,833

18,116

7,717

16,466

9,367

72,981

57,608

FDIC deposit insurance

6,688

7,181

(493

)

6,880

(192

)

25,579

23,868

Other real estate owned (OREO) income

(3,860

)

(1,722

)

(2,138

)

(4,000

)

140

(14,414

)

(3,480

)

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

8,757

12,960

(4,203

)

13,209

(4,452

)

45,088

45,108

Other operating expenses

Operational losses

16,820

7,147

9,673

4,992

11,828

38,391

26,331

All other

18,226

13,322

4,904

6,034

12,192

53,509

57,443

Total other operating expenses

35,046

20,469

14,577

11,026

24,020

91,900

83,774

Amortization of intangibles

6,045

783

5,262

1,052

4,993

9,134

6,397

Total operating expenses

417,394

388,168

29,226

375,924

41,470

1,549,275

1,457,829

Income before income tax

281,616

331,656

(50,040

)

219,321

62,295

1,243,907

618,560

Income tax expense

75,552

83,542

(7,990

)

43,045

32,507

309,018

111,938

Net income

$206,064

$248,114

$(42,050

)

$176,276

$29,788

$934,889

$506,622

Net income applicable to common stock

$205,711

$247,761

$(42,050

)

$175,923

$29,788

$933,477

$504,864

Net income per common share - basic

$2.59

$3.09

$(0.50

)

$2.10

$0.49

$11.49

$5.88

Net income per common share - diluted

$2.58

$3.09

$(0.51

)

$2.10

$0.48

$11.46

$5.87

Dividends Declared per Common Share

$0.45

$0.45

$-

$0.40

$0.05

$1.75

$1.60

POPULAR, INC.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

Quarters ended Variance Quarter Variance Years ended ended

Q4 2021 Q4 2021

(In thousands, vs. Q3 vs. Q4except per share 31-Dec-21 30-Sep-21 2021 31-Dec-20 2020 31-Dec-21 31-Dec-20information)

Interest income:

Loans $444,101 $435,296 $8,805 $430,988 $13,113 $1,747,827 $1,742,390

Money market 6,847 6,914 (67 ) 2,933 3,914 21,147 19,721 investments

Investment 88,315 87,952 363 85,502 2,813 353,663 329,440 securities

Total interest 539,263 530,162 9,101 519,423 19,840 2,122,637 2,091,551 income

Interest expense:

Deposits 26,331 27,029 (698 ) 33,420 (7,089 ) 111,621 175,855

Short-term 60 54 6 348 (288 ) 319 2,457 borrowings

Long-term debt 11,589 13,686 (2,097 ) 14,039 (2,450 ) 53,107 56,626

Total interest 37,980 40,769 (2,789 ) 47,807 (9,827 ) 165,047 234,938 expense

Net interest 501,283 489,393 11,890 471,616 29,667 1,957,590 1,856,613 income

Provision forcredit losses (33,050 ) (61,173 ) 28,123 21,218 (54,268 ) (193,464 ) 292,536 (benefit)

Net interestincome afterprovision for 534,333 550,566 (16,233 ) 450,398 83,935 2,151,054 1,564,077 credit losses(benefit)

Service chargeson deposit 41,613 41,312 301 39,152 2,461 162,698 147,823 accounts

Other service 83,793 80,445 3,348 71,156 12,637 311,248 257,892 fees

Mortgage banking 17,035 8,307 8,728 9,730 7,305 50,133 10,401 activities

Net gain on saleof debt - 23 (23 ) - - 23 41 securities

Net (loss) gain,includingimpairment, on (1,454 ) (401 ) (1,053 ) 1,410 (2,864 ) 131 6,279 equitysecurities

Net (loss)profit on (355 ) 58 (413 ) 440 (795 ) (389 ) 1,033 trading accountdebt securities

Net gain (loss)on sale ofloans, includingvaluation - - - 253 (253 ) (73 ) 1,234 adjustments onloansheld-for-sale

Adjustments toindemnity 1,398 2,038 (640 ) 2,160 (762 ) 4,406 390 reserves onloans sold

Other operating 22,647 37,476 (14,829 ) 20,546 2,101 113,951 87,219 income

Total non-interest 164,677 169,258 (4,581 ) 144,847 19,830 642,128 512,312 income

Operating expenses:

Personnel costs

Salaries 96,830 95,185 1,645 92,063 4,767 371,644 370,179

Commissions, incentives and 27,611 25,892 1,719 19,399 8,212 113,095 78,582 other bonuses

Pension, postretirement 13,971 13,893 78 12,454 1,517 52,077 44,123 and medical insurance

Other personnel costs, 22,060 22,677 (617 ) 18,351 3,709 94,986 71,321 including payroll taxes

Total personnel 160,472 157,647 2,825 142,267 18,205 631,802 564,205 costs

Net occupancy 26,755 24,896 1,859 42,793 (16,038 ) 102,226 119,345 expenses

Equipment 25,180 22,537 2,643 22,395 2,785 92,097 88,932 expenses

Other taxes 15,160 14,459 701 13,532 1,628 56,783 54,454

Professional fees

Collections, appraisals and 3,227 3,166 61 2,948 279 13,199 12,588 other credit related fees

Programming, processing and other 69,647 69,221 426 66,483 3,164 272,386 253,565 technology services

Legal fees, excluding 3,445 2,535 910 2,734 711 10,712 10,611 collections

Other professional 28,736 29,787 (1,051 ) 31,865 (3,129 ) 114,568 117,358 fees

Total professional 105,055 104,709 346 104,030 1,025 410,865 394,122 fees

Communications 6,263 6,133 130 6,274 (11 ) 25,234 23,496

Business 25,833 18,116 7,717 16,466 9,367 72,981 57,608 promotion

FDIC deposit 6,688 7,181 (493 ) 6,880 (192 ) 25,579 23,868 insurance

Other realestate owned (3,860 ) (1,722 ) (2,138 ) (4,000 ) 140 (14,414 ) (3,480 )(OREO) income

Credit and debitcard processing,volume, 8,757 12,960 (4,203 ) 13,209 (4,452 ) 45,088 45,108 interchange andother expenses

Other operating expenses

Operational 16,820 7,147 9,673 4,992 11,828 38,391 26,331 losses

All other 18,226 13,322 4,904 6,034 12,192 53,509 57,443

Total other operating 35,046 20,469 14,577 11,026 24,020 91,900 83,774 expenses

Amortization of 6,045 783 5,262 1,052 4,993 9,134 6,397 intangibles

Total operating 417,394 388,168 29,226 375,924 41,470 1,549,275 1,457,829 expenses

Income before 281,616 331,656 (50,040 ) 219,321 62,295 1,243,907 618,560 income tax

Income tax 75,552 83,542 (7,990 ) 43,045 32,507 309,018 111,938 expense

Net income $206,064 $248,114 $ ) $176,276 $29,788 $934,889 $506,622 (42,050

Net income $applicable to $205,711 $247,761 (42,050 ) $175,923 $29,788 $933,477 $504,864 common stock

Net income percommon share - $2.59 $3.09 $(0.50 ) $2.10 $0.49 $11.49 $5.88 basic

Net income percommon share - $2.58 $3.09 $(0.51 ) $2.10 $0.48 $11.46 $5.87 diluted

DividendsDeclared per $0.45 $0.45 $- $0.40 $0.05 $1.75 $1.60 Common Share

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

Variance

Q4 2021 vs.

(In thousands)

31-Dec-21

30-Sep-21

31-Dec-20

Q3 2021

Assets:

Cash and due from banks

$428,433

$538,973

$491,065

$(110,540

)

Money market investments

17,536,719

17,526,238

11,640,880

10,481

Trading account debt securities, at fair value

29,711

36,064

36,674

(6,353

)

Debt securities available-for-sale, at fair value

24,968,269

24,391,226

21,561,152

577,043

Debt securities held-to-maturity, at amortized cost

79,461

85,655

92,621

(6,194

)

Less: Allowance for credit losses

8,096

9,222

10,261

(1,126

)

Total debt securities held-to-maturity, net

71,365

76,433

82,360

(5,068

)

Equity securities

189,977

184,931

173,737

5,046

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

59,168

91,313

99,455

(32,145

)

Loans held-in-portfolio

29,491,330

29,089,241

29,588,430

402,089

Less: Unearned income

247,441

233,869

203,234

13,572

Allowance for credit losses

695,366

718,575

896,250

(23,209

)

Total loans held-in-portfolio, net

28,548,523

28,136,797

28,488,946

411,726

Premises and equipment, net

492,231

487,526

510,241

4,705

Other real estate

85,077

76,828

83,146

8,249

Accrued income receivable

203,096

200,649

209,320

2,447

Mortgage servicing rights, at fair value

121,570

116,567

118,395

5,003

Other assets

1,628,572

1,634,839

1,737,041

(6,267

)

Goodwill

712,616

671,122

671,122

41,494

Other intangible assets

13,332

19,657

22,466

(6,325

)

Total assets

$75,088,659

$74,189,163

$65,926,000

$899,496

Liabilities and Stockholders' Equity:

Liabilities:

Deposits:

Non-interest bearing

$15,684,482

$15,147,567

$13,128,699

$536,915

Interest bearing

51,320,606

50,865,994

43,737,641

454,612

Total deposits

67,005,088

66,013,561

56,866,340

991,527

Assets sold under agreements to repurchase

91,603

86,470

121,303

5,133

Other short-term borrowings

75,000

-

-

75,000

Notes payable

988,563

1,176,943

1,224,981

(188,380

)

Other liabilities

959,008

929,218

1,684,689

29,790

Total liabilities

69,119,262

68,206,192

59,897,313

913,070

Stockholders' equity:

Preferred stock

22,143

22,143

22,143

-

Common stock

1,046

1,046

1,045

-

Surplus

4,650,182

4,569,641

4,571,534

80,541

Retained earnings

2,973,745

2,882,340

2,260,928

91,405

Treasury stock

(1,352,650

)

(1,352,104

)

(1,016,954

)

(546

)

Accumulated other comprehensive (loss) income, net of tax

(325,069

)

(140,095

)

189,991

(184,974

)

Total stockholders' equity

5,969,397

5,982,971

6,028,687

(13,574

)

Total liabilities and stockholders' equity

$75,088,659

$74,189,163

$65,926,000

$899,496

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

Variance

Q4 2021 vs.

(In thousands) 31-Dec-21 30-Sep-21 31-Dec-20 Q3 2021

Assets:

Cash and due from banks $428,433 $538,973 $491,065 $ ) (110,540

Money market investments 17,536,719 17,526,238 11,640,880 10,481

Trading account debt 29,711 36,064 36,674 (6,353 )securities, at fair value

Debt securitiesavailable-for-sale, at 24,968,269 24,391,226 21,561,152 577,043 fair value

Debt securitiesheld-to-maturity, at 79,461 85,655 92,621 (6,194 )amortized cost

Less: Allowance for 8,096 9,222 10,261 (1,126 ) credit losses

Total debt securities 71,365 76,433 82,360 (5,068 ) held-to-maturity, net

Equity securities 189,977 184,931 173,737 5,046

Loans held-for-sale, atlower of cost or fair 59,168 91,313 99,455 (32,145 )value

Loans held-in-portfolio 29,491,330 29,089,241 29,588,430 402,089

Less: Unearned income 247,441 233,869 203,234 13,572

Allowance for credit 695,366 718,575 896,250 (23,209 ) losses

Total loans 28,548,523 28,136,797 28,488,946 411,726 held-in-portfolio, net

Premises and equipment, 492,231 487,526 510,241 4,705 net

Other real estate 85,077 76,828 83,146 8,249

Accrued income receivable 203,096 200,649 209,320 2,447

Mortgage servicing rights, 121,570 116,567 118,395 5,003 at fair value

Other assets 1,628,572 1,634,839 1,737,041 (6,267 )

Goodwill 712,616 671,122 671,122 41,494

Other intangible assets 13,332 19,657 22,466 (6,325 )

Total assets $75,088,659 $74,189,163 $65,926,000 $899,496

Liabilities and Stockholders' Equity:

Liabilities:

Deposits:

Non-interest bearing $15,684,482 $15,147,567 $13,128,699 $536,915

Interest bearing 51,320,606 50,865,994 43,737,641 454,612

Total deposits 67,005,088 66,013,561 56,866,340 991,527

Assets sold under 91,603 86,470 121,303 5,133 agreements to repurchase

Other short-term 75,000 - - 75,000 borrowings

Notes payable 988,563 1,176,943 1,224,981 (188,380 )

Other liabilities 959,008 929,218 1,684,689 29,790

Total liabilities 69,119,262 68,206,192 59,897,313 913,070

Stockholders' equity:

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

Common stock 1,046 1,046 1,045 -

Surplus 4,650,182 4,569,641 4,571,534 80,541

Retained earnings 2,973,745 2,882,340 2,260,928 91,405

Treasury stock (1,352,650 ) (1,352,104 ) (1,016,954 ) (546 )

Accumulated othercomprehensive (loss) (325,069 ) (140,095 ) 189,991 (184,974 )income, net of tax

Total stockholders' 5,969,397 5,982,971 6,028,687 (13,574 ) equity

Total liabilities and $75,088,659 $74,189,163 $65,926,000 $899,496 stockholders' equity

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)

Quarters ended

Variance

31-Dec-21

30-Sep-21

31-Dec-20

Q4 2021 vs. Q3 2021

Q4 2021 vs. Q4 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

$42,764

$126.4

1.18

%

$41,279

$129.8

1.25

%

$32,554

$127.2

1.56

%

$1,485

($3.4

)

(0.07

)

%

$10,210

$(0.8

)

(0.38

)

%

Loans:

Commercial

13,395

188.6

5.59

13,265

179.2

5.36

13,610

170.2

4.98

130

9.4

0.23

(215

)

18.4

0.61

Construction

777

10.7

5.46

854

11.6

5.40

928

12.8

5.48

(77

)

(0.9

)

0.06

(151

)

(2.1

)

(0.02

)

Mortgage

7,504

96.4

5.14

7,652

97.8

5.11

7,856

98.6

5.02

(148

)

(1.4

)

0.03

(352

)

(2.2

)

0.12

Consumer

2,471

68.1

10.93

2,435

67.7

11.03

2,606

73.1

11.16

36

0.4

(0.10

)

(135

)

(5.0

)

(0.23

)

Auto

3,432

71.3

8.24

3,372

71.2

8.37

3,130

68.8

8.74

60

0.1

(0.13

)

302

2.5

(0.50

)

Lease financing

1,359

20.3

5.97

1,317

19.7

5.99

1,170

17.8

6.07

42

0.6

(0.02

)

189

2.5

(0.10

)

Total loans

28,938

455.4

6.26

28,895

447.2

6.15

29,300

441.3

6.00

43

8.2

0.11

(362

)

14.1

0.26

Total interest earning assets

$71,702

$581.8

3.23

%

$70,174

$577.0

3.27

%

$61,854

$568.5

3.66

%

$1,528

$4.8

(0.04

)

%

$9,848

$13.3

(0.43

)

%

Allowance for credit losses - loan portfolio

(719

)

(778

)

(930

)

59

211

Allowance for credit losses - investment securities

(9

)

(10

)

(12

)

1

3

Other non-interest earning assets

3,844

3,901

4,054

(57

)

(210

)

Total average assets

$74,818

$73,287

$64,966

$1,531

$9,852

Liabilities and Stockholders' Equity:

Interest bearing deposits:

NOW and money market

$28,205

$7.7

0.11

%

$27,773

$7.9

0.11

%

$21,829

$8.7

0.16

%

$432

$(0.2

)

-

%

$6,376

$(1.0

)

(0.05

)

%

Savings

16,324

6.8

0.17

15,621

6.4

0.16

13,890

7.5

0.22

703

0.4

0.01

2,434

(0.7

)

(0.05

)

Time deposits

6,793

11.8

0.69

6,957

12.7

0.73

7,656

17.2

0.89

(164

)

(0.9

)

(0.04

)

(863

)

(5.4

)

(0.20

)

Total interest-bearing deposits

51,322

26.3

0.20

50,351

27.0

0.21

43,375

33.4

0.31

971

(0.7

)

(0.01

)

7,947

(7.1

)

(0.11

)

Borrowings

1,163

11.6

4.01

1,284

13.7

4.28

1,354

14.4

4.26

(121

)

(2.1

)

(0.27

)

(191

)

(2.8

)

(0.25

)

Total interest-bearing liabilities

52,485

37.9

0.29

51,635

40.7

0.31

44,729

47.8

0.43

850

(2.8

)

(0.02

)

7,756

(9.9

)

(0.14

)

Net interest spread

2.94

%

2.96

%

3.23

%

(0.02

)

%

(0.29

)

%

Non-interest bearing deposits

15,455

14,955

13,303

500

2,152

Other liabilities

917

927

1,393

(10

)

(476

)

Stockholders' equity

5,961

5,770

5,541

191

420

Total average liabilities and stockholders' equity

$74,818

$73,287

$64,966

$1,531

$9,852

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

$543.9

3.02

%

$536.3

3.04

%

$520.7

3.35

%

$7.6

(0.02

)

%

$23.2

(0.33

)

%

Taxable equivalent adjustment

42.6

46.9

49.1

(4.3

)

(6.5

)

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

$501.3

2.78

%

$489.4

2.77

%

$471.6

3.04

%

$11.9

0.01

%

$29.7

(0.26

)

%

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)



Quarters ended Variance

31-Dec-21 30-Sep-21 31-Dec-20 Q4 2021 vs. Q3 2021 Q4 2021 vs. Q4 2020

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

Assets:

Interest earning assets:

Money market,trading and $42,764 $126.4 1.18 % $41,279 $129.8 1.25 % $32,554 $127.2 1.56 % $1,485 ($3.4 ) (0.07 ) % $10,210 $(0.8 ) (0.38 ) %investmentsecurities

Loans:

Commercial 13,395 188.6 5.59 13,265 179.2 5.36 13,610 170.2 4.98 130 9.4 0.23 (215 ) 18.4 0.61

Construction 777 10.7 5.46 854 11.6 5.40 928 12.8 5.48 (77 ) (0.9 ) 0.06 (151 ) (2.1 ) (0.02 )

Mortgage 7,504 96.4 5.14 7,652 97.8 5.11 7,856 98.6 5.02 (148 ) (1.4 ) 0.03 (352 ) (2.2 ) 0.12

Consumer 2,471 68.1 10.93 2,435 67.7 11.03 2,606 73.1 11.16 36 0.4 (0.10 ) (135 ) (5.0 ) (0.23 )

Auto 3,432 71.3 8.24 3,372 71.2 8.37 3,130 68.8 8.74 60 0.1 (0.13 ) 302 2.5 (0.50 )

Lease financing 1,359 20.3 5.97 1,317 19.7 5.99 1,170 17.8 6.07 42 0.6 (0.02 ) 189 2.5 (0.10 )

Total loans 28,938 455.4 6.26 28,895 447.2 6.15 29,300 441.3 6.00 43 8.2 0.11 (362 ) 14.1 0.26

Total interest $71,702 $581.8 3.23 % $70,174 $577.0 3.27 % $61,854 $568.5 3.66 % $1,528 $4.8 (0.04 ) % $9,848 $13.3 (0.43 ) %earning assets

Allowance forcredit losses - (719 ) (778 ) (930 ) 59 211 loan portfolio

Allowance forcredit losses - (9 ) (10 ) (12 ) 1 3 investmentsecurities

Othernon-interest 3,844 3,901 4,054 (57 ) (210 ) earning assets

Total average $74,818 $73,287 $64,966 $1,531 $9,852 assets

Liabilities and Stockholders' Equity:

Interest bearing deposits:

NOW and money $28,205 $7.7 0.11 % $27,773 $7.9 0.11 % $21,829 $8.7 0.16 % $432 $(0.2 ) - % $6,376 $(1.0 ) (0.05 ) %market

Savings 16,324 6.8 0.17 15,621 6.4 0.16 13,890 7.5 0.22 703 0.4 0.01 2,434 (0.7 ) (0.05 )

Time deposits 6,793 11.8 0.69 6,957 12.7 0.73 7,656 17.2 0.89 (164 ) (0.9 ) (0.04 ) (863 ) (5.4 ) (0.20 )

Totalinterest-bearing 51,322 26.3 0.20 50,351 27.0 0.21 43,375 33.4 0.31 971 (0.7 ) (0.01 ) 7,947 (7.1 ) (0.11 ) deposits

Borrowings 1,163 11.6 4.01 1,284 13.7 4.28 1,354 14.4 4.26 (121 ) (2.1 ) (0.27 ) (191 ) (2.8 ) (0.25 )

Totalinterest-bearing 52,485 37.9 0.29 51,635 40.7 0.31 44,729 47.8 0.43 850 (2.8 ) (0.02 ) 7,756 (9.9 ) (0.14 ) liabilities

Net interest 2.94 % 2.96 % 3.23 % (0.02 ) % (0.29 ) %spread

Non-interest 15,455 14,955 13,303 500 2,152 bearing deposits

Other 917 927 1,393 (10 ) (476 ) liabilities

Stockholders' 5,961 5,770 5,541 191 420 equity

Total averageliabilities and $74,818 $73,287 $64,966 $1,531 $9,852 stockholders'equity

Net interest income /margin on a taxable $543.9 3.02 % $536.3 3.04 % $520.7 3.35 % $7.6 (0.02 ) % $23.2 (0.33 ) %equivalent basis(Non-GAAP)

Taxable equivalent 42.6 46.9 49.1 (4.3 ) (6.5 ) adjustment



Net interest income /margin non-taxable $501.3 2.78 % $489.4 2.77 % $471.6 3.04 % $11.9 0.01 % $29.7 (0.26 ) %equivalent basis (GAAP)

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)

Years ended

31-Dec-21

31-Dec-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

$39,015

$533.6

1.37

%

$28,020

$491.9

1.76

%

$10,995

$41.7

(0.39

)

%

Loans:

Commercial

13,455

723.8

5.39

13,245

692.4

5.23

210

31.4

0.16

Construction

849

45.8

5.41

913

52.4

5.74

(64

)

(6.6

)

(0.33

)

Mortgage

7,696

392.0

5.09

7,255

379.8

5.23

441

12.2

(0.14

)

Consumer

2,463

275.1

11.17

2,839

322.0

11.34

(376

)

(46.9

)

(0.17

)

Auto

3,322

280.7

8.47

3,021

271.2

8.97

301

9.5

(0.50

)

Lease financing

1,289

77.4

6.00

1,112

67.2

6.05

177

10.2

(0.05

)

Total loans

29,074

1,794.8

6.19

28,385

1,785.0

6.29

689

9.8

(0.10

)

Total interest earning assets

$68,089

$2,328.4

3.43

%

$56,405

$2,276.9

4.04

%

$11,684

$51.5

(0.61

)

%

Allowance for credit losses - loan portfolio

(796

)

(897

)

101

Allowance for credit losses - investment securities

(10

)

(13

)

3

Other non-interest earning assets

3,886

4,089

(203

)

Total average assets

$71,169

$59,584

$11,585

Liabilities and Stockholders' Equity:

Interest bearing deposits:

NOW and money market

$25,959

$31.9

0.12

%

$19,678

$54.7

0.28

%

$6,281

($22.8

)

(0.16

)

%

Savings

15,429

27.1

0.18

12,399

37.8

0.30

3,030

(10.7

)

(0.12

)

Time deposits

7,028

52.6

0.75

7,971

83.4

1.05

(943

)

(30.8

)

(0.30

)

Total interest-bearing deposits

48,416

111.6

0.23

40,048

175.9

0.44

8,368

(64.3

)

(0.21

)

Borrowings

1,276

53.4

4.19

1,344

59.1

4.40

(68

)

(5.7

)

(0.21

)

Total interest-bearing liabilities

49,692

165.0

0.33

41,392

235.0

0.57

8,300

(70.0

)

(0.24

)

Net interest spread

3.10

%

3.47

%

(0.37

)

%

Non-interest bearing deposits

14,687

11,538

3,149

Other liabilities

1,012

1,234

(222

)

Stockholders' equity

5,778

5,420

358

Total average liabilities and stockholders' equity

$71,169

$59,584

$11,585

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

$2,163.4

3.19

%

$2,041.9

3.62

%

$121.5

(0.43

)

%

Taxable equivalent adjustment

205.8

185.4

20.4

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

$1,957.6

2.88

%

$1,856.6

3.29

%

$101.0

(0.41

)

%

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)

Years ended

31-Dec-21 31-Dec-20 Variance

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

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

Assets:

Interest earning assets:

Money market,trading and $39,015 $533.6 1.37 % $28,020 $491.9 1.76 % $10,995 $41.7 (0.39 ) %investmentsecurities

Loans:

Commercial 13,455 723.8 5.39 13,245 692.4 5.23 210 31.4 0.16

Construction 849 45.8 5.41 913 52.4 5.74 (64 ) (6.6 ) (0.33 )

Mortgage 7,696 392.0 5.09 7,255 379.8 5.23 441 12.2 (0.14 )

Consumer 2,463 275.1 11.17 2,839 322.0 11.34 (376 ) (46.9 ) (0.17 )

Auto 3,322 280.7 8.47 3,021 271.2 8.97 301 9.5 (0.50 )

Lease financing 1,289 77.4 6.00 1,112 67.2 6.05 177 10.2 (0.05 )

Total loans 29,074 1,794.8 6.19 28,385 1,785.0 6.29 689 9.8 (0.10 )

Total interest $68,089 $2,328.4 3.43 % $56,405 $2,276.9 4.04 % $11,684 $51.5 (0.61 ) %earning assets

Allowance forcredit losses - (796 ) (897 ) 101 loan portfolio

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

Othernon-interest 3,886 4,089 (203 ) earning assets

Total average $71,169 $59,584 $11,585 assets

Liabilities andStockholders' Equity:

Interest bearing deposits:

NOW and money $25,959 $31.9 0.12 % $19,678 $54.7 0.28 % $6,281 ($22.8 ) (0.16 ) %market

Savings 15,429 27.1 0.18 12,399 37.8 0.30 3,030 (10.7 ) (0.12 )

Time deposits 7,028 52.6 0.75 7,971 83.4 1.05 (943 ) (30.8 ) (0.30 )

Totalinterest-bearing 48,416 111.6 0.23 40,048 175.9 0.44 8,368 (64.3 ) (0.21 ) deposits

Borrowings 1,276 53.4 4.19 1,344 59.1 4.40 (68 ) (5.7 ) (0.21 )

Totalinterest-bearing 49,692 165.0 0.33 41,392 235.0 0.57 8,300 (70.0 ) (0.24 ) liabilities

Net interest 3.10 % 3.47 % (0.37 ) %spread

Non-interest 14,687 11,538 3,149 bearing deposits

Other 1,012 1,234 (222 ) liabilities

Stockholders' 5,778 5,420 358 equity

Total averageliabilities and $71,169 $59,584 $11,585 stockholders'equity

Net interest income /margin on a taxable $2,163.4 3.19 % $2,041.9 3.62 % $121.5 (0.43 ) %equivalent basis(Non-GAAP)

Taxable equivalent 205.8 185.4 20.4 adjustment



Net interest income /margin non-taxable $1,957.6 2.88 % $1,856.6 3.29 % $101.0 (0.41 ) %equivalent basis (GAAP)

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)

Mortgage Banking Activities

Quarters ended

Variance

Years ended

Variance

(In thousands)

31-Dec-21

30-Sep-21

31-Dec-20

Q4 2021 vs. Q3 2021

Q4 2021 vs. Q4 2020

31-Dec-21

31-Dec-20

2021 vs. 2020

Mortgage servicing fees, net of fair value adjustments:

Mortgage servicing fees

$9,492

$9,376

$10,242

$116

$(750

)

$38,105

$43,234

$(5,129

)

Mortgage servicing rights fair value adjustments

1,500

(5,979

)

(8,695

)

7,479

10,195

(10,206

)

(42,055

)

31,849

Total mortgage servicing fees, net of fair value adjustments

10,992

3,397

1,547

7,595

9,445

27,899

1,179

26,720

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

5,428

6,084

10,826

(656

)

(5,398

)

21,684

31,215

(9,531

)

Trading account profit (loss):

Unrealized gains on outstanding derivative positions

-

-

4

-

(4

)

-

-

-

Realized gains (losses) on closed derivative positions

691

(1,004

)

(2,195

)

1,695

2,886

1,323

(10,586

)

11,909

Total trading account profit (loss)

691

(1,004

)

(2,191

)

1,695

2,882

1,323

(10,586

)

11,909

Losses on repurchased loans, including interest advances

(76

)

(170

)

(452

)

94

376

(773

)

(11,407

)

10,634

Total mortgage banking activities

$17,035

$8,307

$9,730

$8,728

$7,305

$50,133

$10,401

$39,732

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)



MortgageBanking Activities

Quarters ended Variance Years ended Variance

(In Q4 2021 Q4 2021 2021 vs.thousands) 31-Dec-21 30-Sep-21 31-Dec-20 vs. Q3 vs. Q4 31-Dec-21 31-Dec-20 2020 2021 2020

Mortgageservicingfees, net of fair valueadjustments:

Mortgage servicing $9,492 $9,376 $10,242 $116 $(750 ) $38,105 $43,234 $(5,129 ) fees

Mortgage servicing rights fair 1,500 (5,979 ) (8,695 ) 7,479 10,195 (10,206 ) (42,055 ) 31,849 value adjustments

Totalmortgageservicing 10,992 3,397 1,547 7,595 9,445 27,899 1,179 26,720 fees, net offair valueadjustments

Net gain onsale ofloans,including 5,428 6,084 10,826 (656 ) (5,398 ) 21,684 31,215 (9,531 )valuation onloansheld-for-sale

Tradingaccount profit(loss):

Unrealized gains on outstanding - - 4 - (4 ) - - - derivative positions

Realized gains (losses) on 691 (1,004 ) (2,195 ) 1,695 2,886 1,323 (10,586 ) 11,909 closed derivative positions

Total tradingaccount 691 (1,004 ) (2,191 ) 1,695 2,882 1,323 (10,586 ) 11,909 profit (loss)

Losses onrepurchasedloans, (76 ) (170 ) (452 ) 94 376 (773 ) (11,407 ) 10,634 includinginterestadvances

Totalmortgage $17,035 $8,307 $9,730 $8,728 $7,305 $50,133 $10,401 $39,732 bankingactivities

Other Service Fees

Quarters ended

Variance

Years ended

Variance

(In thousands)

31-Dec-21

30-Sep-21

31-Dec-20

Q4 2021 vs. Q3 2021

Q4 2021 2020

31-Dec-21

31-Dec-20

2021 vs. 2020

Other service fees:

Debit card fees

$12,392

$12,210

$11,210

$182

$1,182

$48,637

$39,652

$8,985

Insurance fees

17,848

14,385

13,803

3,463

4,045

57,834

52,014

5,820

Credit card fees

35,649

33,409

27,986

2,240

7,663

130,475

96,011

34,464

Sale and administration of investment products

5,908

6,216

5,488

(308

)

420

23,634

21,755

1,879

Trust fees

5,858

6,453

5,499

(595

)

359

24,318

21,191

3,127

Other fees

6,138

7,772

7,170

(1,634

)

(1,032

)

26,350

27,269

(919

)

Total other service fees

$83,793

$80,445

$71,156

$3,348

$12,637

$311,248

$257,892

$53,356



Other Service Fees

Quarters ended Variance Years ended Variance

Q4 2021 Q4 2021 2021 vs.(In thousands) 31-Dec-21 30-Sep-21 31-Dec-20 vs. Q3 2020 31-Dec-21 31-Dec-20 2020 2021

Other service fees:

Debit card $12,392 $12,210 $11,210 $182 $1,182 $48,637 $39,652 $8,985 fees

Insurance fees 17,848 14,385 13,803 3,463 4,045 57,834 52,014 5,820

Credit card 35,649 33,409 27,986 2,240 7,663 130,475 96,011 34,464 fees

Sale and administration 5,908 6,216 5,488 (308 ) 420 23,634 21,755 1,879 of investment products

Trust fees 5,858 6,453 5,499 (595 ) 359 24,318 21,191 3,127

Other fees 6,138 7,772 7,170 (1,634 ) (1,032 ) 26,350 27,269 (919 )

Total other $83,793 $80,445 $71,156 $3,348 $12,637 $311,248 $257,892 $53,356 service fees

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table G - Loans and Deposits

(Unaudited)

Loans - Ending Balances

Variance

(In thousands)

31-Dec-21

30-Sep-21

31-Dec-20

Q4 2021 vs. Q3 2021

Q4 2021 vs. Q4 2020

Loans held-in-portfolio:

Commercial

$13,736,033

$13,303,671

$13,614,310

$432,362

$121,723

Construction

716,220

801,040

926,208

(84,820

)

(209,988

)

Leasing

1,381,319

1,348,679

1,197,661

32,640

183,658

Mortgage

7,427,196

7,539,152

7,890,680

(111,956

)

(463,484

)

Auto

3,412,187

3,376,694

3,132,228

35,493

279,959

Consumer

2,570,934

2,486,136

2,624,109

84,798

(53,175

)

Total loans held-in-portfolio

$29,243,889

$28,855,372

$29,385,196

$388,517

$(141,307

)

Loans held-for-sale:

Commercial

$-

$-

$2,738

$-

$(2,738

)

Mortgage

59,168

91,313

96,717

(32,145

)

(37,549

)

Total loans held-for-sale

$59,168

$91,313

$99,455

$(32,145

)

$(40,287

)

Total loans

$29,303,057

$28,946,685

$29,484,651

$356,372

$(181,594

)

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table G - Loans and Deposits

(Unaudited)



Loans - Ending Balances

Variance

Q4 2021 Q4 2021(In thousands) 31-Dec-21 30-Sep-21 31-Dec-20 vs. Q3 vs. Q4 2021 2020

Loans held-in-portfolio:

Commercial $13,736,033 $13,303,671 $13,614,310 $432,362 $121,723

Construction 716,220 801,040 926,208 (84,820 ) (209,988 )

Leasing 1,381,319 1,348,679 1,197,661 32,640 183,658

Mortgage 7,427,196 7,539,152 7,890,680 (111,956 ) (463,484 )

Auto 3,412,187 3,376,694 3,132,228 35,493 279,959

Consumer 2,570,934 2,486,136 2,624,109 84,798 (53,175 )

Total loans $29,243,889 $28,855,372 $29,385,196 $388,517 $ )held-in-portfolio (141,307

Loans held-for-sale:

Commercial $- $- $2,738 $- $(2,738 )

Mortgage 59,168 91,313 96,717 (32,145 ) (37,549 )

Total loans $59,168 $91,313 $99,455 $(32,145 ) $(40,287 )held-for-sale

Total loans $29,303,057 $28,946,685 $29,484,651 $356,372 $ ) (181,594

Deposits - Ending Balances

Variance

(In thousands)

31-Dec-21

30-Sep-21

31-Dec-20

Q4 2021 vs. Q3 2021

Q4 2021 vs. Q4 2020

Demand deposits [1]

$25,889,732

$25,495,481

$22,532,729

$394,251

$3,357,003

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

33,674,134

32,867,805

26,390,565

806,329

7,283,569

Savings, NOW and money market deposits (brokered)

729,073

718,155

635,198

10,918

93,875

Time deposits (non-brokered)

6,685,938

6,906,509

7,130,749

(220,571

)

(444,811

)

Time deposits (brokered CDs)

26,211

25,611

177,099

600

(150,888

)

Total deposits

$67,005,088

$66,013,561

$56,866,340

$991,527

$10,138,748

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

Deposits - Ending Balances

Variance

Q4 2021 Q4 2021(In thousands) 31-Dec-21 30-Sep-21 31-Dec-20 vs. Q3 vs. Q4 2020 2021

Demand deposits $25,889,732 $25,495,481 $22,532,729 $394,251 $3,357,003 [1]

Savings, NOW andmoney market 33,674,134 32,867,805 26,390,565 806,329 7,283,569 deposits(non-brokered)

Savings, NOW andmoney market 729,073 718,155 635,198 10,918 93,875 deposits(brokered)

Time deposits 6,685,938 6,906,509 7,130,749 (220,571 ) (444,811 )(non-brokered)

Time deposits 26,211 25,611 177,099 600 (150,888 )(brokered CDs)

Total deposits $67,005,088 $66,013,561 $56,866,340 $991,527 $10,138,748

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

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)

31-Dec-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

$

314

$

-

$

272

$

586

$

154,183

$

154,769

$

272

$

-

Commercial real estate:

Non-owner occupied

2,399

136

20,716

23,251

2,266,672

2,289,923

20,716

-

Owner occupied

3,329

278

54,335

57,942

1,365,787

1,423,729

54,335

-

Commercial and industrial

3,438

1,727

45,242

50,407

3,478,041

3,528,448

44,724

518

Construction

-

-

485

485

86,626

87,111

485

-

Mortgage

217,830

81,754

805,245

1,104,829

5,147,037

6,251,866

333,887

471,358

Leasing

9,240

2,037

3,102

14,379

1,366,940

1,381,319

3,102

-

Consumer:

Credit cards

5,768

3,520

8,577

17,865

901,986

919,851

-

8,577

Home equity lines of credit

46

-

23

69

3,502

3,571

-

23

Personal

10,027

6,072

21,235

37,334

1,250,726

1,288,060

21,235

-

Auto

59,128

15,019

23,085

97,232

3,314,955

3,412,187

23,085

-

Other

432

714

12,621

13,767

110,781

124,548

12,448

173

Total

$

311,951

$

111,257

$

994,938

$

1,418,146

$

19,447,236

$

20,865,382

$

514,289

$

480,649

30-Sep-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

$

392

$

-

$

396

$

788

$

149,639

$

150,427

$

396

$

-

Commercial real estate:

Non-owner occupied

661

17,383

60,143

78,187

2,268,441

2,346,628

60,143

-

Owner occupied

2,719

614

71,863

75,196

1,394,503

1,469,699

71,863

-

Commercial and industrial

1,641

576

51,456

53,673

3,618,266

3,671,939

50,992

464

Construction

-

-

14,877

14,877

112,602

127,479

14,877

-

Mortgage

197,955

76,345

896,208

1,170,508

5,204,541

6,375,049

354,555

541,653

Leasing

8,193

1,969

2,542

12,704

1,335,975

1,348,679

2,542

-

Consumer:

Credit cards

5,211

3,667

7,558

16,436

870,139

886,575

-

7,558

Home equity lines of credit

46

-

-

46

3,507

3,553

-

-

Personal

9,329

5,954

21,646

36,929

1,238,448

1,275,377

21,646

-

Auto

52,486

11,663

17,345

81,494

3,295,200

3,376,694

17,345

-

Other

393

76

14,621

15,090

108,492

123,582

14,512

109

Total

$

279,026

$

118,247

$

1,158,655

$

1,555,928

$

19,599,753

$

21,155,681

$

608,871

$

549,784

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table H - Loan Delinquency - Puerto Rico Operations

(Unaudited)

31-Dec-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 $ 314 $ - $ 272 $ 586 $ 154,183 $ 154,769 $ 272 $ -multi-family

Commercial real estate:

Non-owner 2,399 136 20,716 23,251 2,266,672 2,289,923 20,716 - occupied

Owner 3,329 278 54,335 57,942 1,365,787 1,423,729 54,335 - occupied

Commercialand 3,438 1,727 45,242 50,407 3,478,041 3,528,448 44,724 518industrial

Construction - - 485 485 86,626 87,111 485 -

Mortgage 217,830 81,754 805,245 1,104,829 5,147,037 6,251,866 333,887 471,358

Leasing 9,240 2,037 3,102 14,379 1,366,940 1,381,319 3,102 -

Consumer:

Credit 5,768 3,520 8,577 17,865 901,986 919,851 - 8,577 cards

Home equity 46 - 23 69 3,502 3,571 - 23 lines of credit

Personal 10,027 6,072 21,235 37,334 1,250,726 1,288,060 21,235 -

Auto 59,128 15,019 23,085 97,232 3,314,955 3,412,187 23,085 -

Other 432 714 12,621 13,767 110,781 124,548 12,448 173

Total $ 311,951 $ 111,257 $ 994,938 $ 1,418,146 $ 19,447,236 $ 20,865,382 $ 514,289 $ 480,649



30-Sep-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 $ 392 $ - $ 396 $ 788 $ 149,639 $ 150,427 $ 396 $ -multi-family

Commercial real estate:

Non-owner 661 17,383 60,143 78,187 2,268,441 2,346,628 60,143 - occupied

Owner 2,719 614 71,863 75,196 1,394,503 1,469,699 71,863 - occupied

Commercialand 1,641 576 51,456 53,673 3,618,266 3,671,939 50,992 464industrial

Construction - - 14,877 14,877 112,602 127,479 14,877 -

Mortgage 197,955 76,345 896,208 1,170,508 5,204,541 6,375,049 354,555 541,653

Leasing 8,193 1,969 2,542 12,704 1,335,975 1,348,679 2,542 -

Consumer:

Credit 5,211 3,667 7,558 16,436 870,139 886,575 - 7,558 cards

Home equity 46 - - 46 3,507 3,553 - - lines of credit

Personal 9,329 5,954 21,646 36,929 1,238,448 1,275,377 21,646 -

Auto 52,486 11,663 17,345 81,494 3,295,200 3,376,694 17,345 -

Other 393 76 14,621 15,090 108,492 123,582 14,512 109

Total $ 279,026 $ 118,247 $ 1,158,655 $ 1,555,928 $ 19,599,753 $ 21,155,681 $ 608,871 $ 549,784

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

$

(78

)

$

-

$

(124

)

$

(202

)

$

4,544

$

4,342

$

(124

)

$

-

Commercial real estate:

Non-owner occupied

1,738

(17,247

)

(39,427

)

(54,936

)

(1,769

)

(56,705

)

(39,427

)

-

Owner occupied

610

(336

)

(17,528

)

(17,254

)

(28,716

)

(45,970

)

(17,528

)

-

Commercial and industrial

1,797

1,151

(6,214

)

(3,266

)

(140,225

)

(143,491

)

(6,268

)

54

Construction

-

-

(14,392

)

(14,392

)

(25,976

)

(40,368

)

(14,392

)

-

Mortgage

19,875

5,409

(90,963

)

(65,679

)

(57,504

)

(123,183

)

(20,668

)

(70,295

)

Leasing

1,047

68

560

1,675

30,965

32,640

560

-

Consumer:

Credit cards

557

(147

)

1,019

1,429

31,847

33,276

-

1,019

Home equity lines of credit

-

-

23

23

(5

)

18

-

23

Personal

698

118

(411

)

405

12,278

12,683

(411

)

-

Auto

6,642

3,356

5,740

15,738

19,755

35,493

5,740

-

Other

39

638

(2,000

)

(1,323

)

2,289

966

(2,064

)

64

Total

$

32,925

$

(6,990

)

$

(163,717

)

$

(137,782

)

$

(152,517

)

$

(290,299

)

$

(94,582

)

$

(69,135

)

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 $ (78 ) $ - $ (124 ) $ (202 ) $ 4,544 $ 4,342 $ (124 ) $ -

Commercial real estate:

Non-owner occupied 1,738 (17,247 ) (39,427 ) (54,936 ) (1,769 ) (56,705 ) (39,427 ) -

Owner occupied 610 (336 ) (17,528 ) (17,254 ) (28,716 ) (45,970 ) (17,528 ) -

Commercial and 1,797 1,151 (6,214 ) (3,266 ) (140,225 ) (143,491 ) (6,268 ) 54 industrial

Construction - - (14,392 ) (14,392 ) (25,976 ) (40,368 ) (14,392 ) -

Mortgage 19,875 5,409 (90,963 ) (65,679 ) (57,504 ) (123,183 ) (20,668 ) (70,295 )

Leasing 1,047 68 560 1,675 30,965 32,640 560 -

Consumer:

Credit cards 557 (147 ) 1,019 1,429 31,847 33,276 - 1,019

Home equity lines of - - 23 23 (5 ) 18 - 23 credit

Personal 698 118 (411 ) 405 12,278 12,683 (411 ) -

Auto 6,642 3,356 5,740 15,738 19,755 35,493 5,740 -

Other 39 638 (2,000 ) (1,323 ) 2,289 966 (2,064 ) 64

Total $ 32,925 $ (6,990 ) $ (163,717 ) $ (137,782 ) $ (152,517 ) $ (290,299 ) $ (94,582 ) $ (69,135 )

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)

December 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

$

3,826

$

-

$

-

$

3,826

$

1,804,035

$

1,807,861

$

-

$

-

Commercial real estate:

Non-owner occupied

5,721

683

622

7,026

2,316,441

2,323,467

622

-

Owner occupied

1,095

-

1,013

2,108

392,265

394,373

1,013

-

Commercial and industrial

9,410

2,680

4,015

16,105

1,797,358

1,813,463

3,897

118

Construction

-

-

-

-

629,109

629,109

-

-

Mortgage

11,711

2,573

21,969

36,253

1,139,077

1,175,330

21,969

-

Consumer:

Credit cards

-

-

-

-

10

10

-

-

Home equity lines of credit

71

34

5,406

5,511

69,780

75,291

5,406

-

Personal

863

574

681

2,118

152,827

154,945

681

-

Other

-

-

-

-

4,658

4,658

-

-

Total

$

32,697

$

6,544

$

33,706

$

72,947

$

8,305,560

$

8,378,507

$

33,588

$

118

September 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

$

-

$

22,171

$

-

$

22,171

$

1,709,508

$

1,731,679

$

-

$

-

Commercial real estate:

Non-owner occupied

2,569

4,632

374

7,575

2,029,514

2,037,089

374

-

Owner occupied

1,158

-

986

2,144

343,430

345,574

986

-

Commercial and industrial

804

1

1,428

2,233

1,548,403

1,550,636

1,427

1

Construction

14,978

-

-

14,978

658,583

673,561

-

-

Mortgage

1,369

2,833

14,488

18,690

1,145,413

1,164,103

14,488

-

Consumer:

Credit cards

-

-

-

-

26

26

-

-

Home equity lines of credit

690

76

5,941

6,707

73,042

79,749

5,941

-

Personal

588

544

748

1,880

111,598

113,478

748

-

Other

16

-

-

16

3,780

3,796

-

-

Total

$

22,172

$

30,257

$

23,965

$

76,394

$

7,623,297

$

7,699,691

$

23,964

$

1

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)

December 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 $ 3,826 $ - $ - $ 3,826 $ 1,804,035 $ 1,807,861 $ - $ -multi-family

Commercial real estate:

Non-owner 5,721 683 622 7,026 2,316,441 2,323,467 622 - occupied

Owner 1,095 - 1,013 2,108 392,265 394,373 1,013 - occupied

Commercialand 9,410 2,680 4,015 16,105 1,797,358 1,813,463 3,897 118industrial

Construction - - - - 629,109 629,109 - -

Mortgage 11,711 2,573 21,969 36,253 1,139,077 1,175,330 21,969 -

Consumer:

Credit - - - - 10 10 - - cards

Home equity 71 34 5,406 5,511 69,780 75,291 5,406 - lines of credit

Personal 863 574 681 2,118 152,827 154,945 681 -

Other - - - - 4,658 4,658 - -

Total $ 32,697 $ 6,544 $ 33,706 $ 72,947 $ 8,305,560 $ 8,378,507 $ 33,588 $ 118



September 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 $ - $ 22,171 $ - $ 22,171 $ 1,709,508 $ 1,731,679 $ - $ -multi-family

Commercial real estate:

Non-owner 2,569 4,632 374 7,575 2,029,514 2,037,089 374 - occupied

Owner 1,158 - 986 2,144 343,430 345,574 986 - occupied

Commercialand 804 1 1,428 2,233 1,548,403 1,550,636 1,427 1industrial

Construction 14,978 - - 14,978 658,583 673,561 - -

Mortgage 1,369 2,833 14,488 18,690 1,145,413 1,164,103 14,488 -

Consumer:

Credit - - - - 26 26 - - cards

Home equity 690 76 5,941 6,707 73,042 79,749 5,941 - lines of credit

Personal 588 544 748 1,880 111,598 113,478 748 -

Other 16 - - 16 3,780 3,796 - -

Total $ 22,172 $ 30,257 $ 23,965 $ 76,394 $ 7,623,297 $ 7,699,691 $ 23,964 $ 1

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

$

3,826

$

(22,171

)

$

-

$

(18,345

)

$

94,527

$

76,182

$

-

$

-

Commercial real estate:

Non-owner occupied

3,152

(3,949

)

248

(549

)

286,927

286,378

248

-

Owner occupied

(63

)

-

27

(36

)

48,835

48,799

27

-

Commercial and industrial

8,606

2,679

2,587

13,872

248,955

262,827

2,470

117

Construction

(14,978

)

-

-

(14,978

)

(29,474

)

(44,452

)

-

-

Mortgage

10,342

(260

)

7,481

17,563

(6,336

)

11,227

7,481

-

Consumer:

Credit cards

-

-

-

-

(16

)

(16

)

-

-

Home equity lines of credit

(619

)

(42

)

(535

)

(1,196

)

(3,262

)

(4,458

)

(535

)

-

Personal

275

30

(67

)

238

41,229

41,467

(67

)

-

Other

(16

)

-

-

(16

)

878

862

-

-

Total

$

10,525

$

(23,713

)

$

9,741

$

(3,447

)

$

682,263

$

678,816

$

9,624

$

117

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 $ 3,826 $ (22,171 ) $ - $ (18,345 ) $ 94,527 $ 76,182 $ - $ -multi-family

Commercial real estate:

Non-owner 3,152 (3,949 ) 248 (549 ) 286,927 286,378 248 - occupied

Owner occupied (63 ) - 27 (36 ) 48,835 48,799 27 -

Commercial and 8,606 2,679 2,587 13,872 248,955 262,827 2,470 117industrial

Construction (14,978 ) - - (14,978 ) (29,474 ) (44,452 ) - -

Mortgage 10,342 (260 ) 7,481 17,563 (6,336 ) 11,227 7,481 -

Consumer:

Credit cards - - - - (16 ) (16 ) - -

Home equity lines of (619 ) (42 ) (535 ) (1,196 ) (3,262 ) (4,458 ) (535 ) - credit

Personal 275 30 (67 ) 238 41,229 41,467 (67 ) -

Other (16 ) - - (16 ) 878 862 - -

Total $ 10,525 $ (23,713 ) $ 9,741 $ (3,447 ) $ 682,263 $ 678,816 $ 9,624 $ 117

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)

31-Dec-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

$

4,140

$

-

$

272

$

4,412

$

1,958,218

$

1,962,630

$

272

$

-

Commercial real estate:

Non-owner occupied

8,120

819

21,338

30,277

4,583,113

4,613,390

21,338

-

Owner occupied

4,424

278

55,348

60,050

1,758,052

1,818,102

55,348

-

Commercial and industrial

12,848

4,407

49,257

66,512

5,275,399

5,341,911

48,621

636

Construction

-

-

485

485

715,735

716,220

485

-

Mortgage

229,541

84,327

827,214

1,141,082

6,286,114

7,427,196

355,856

471,358

Leasing

9,240

2,037

3,102

14,379

1,366,940

1,381,319

3,102

-

Consumer:

Credit cards

5,768

3,520

8,577

17,865

901,996

919,861

-

8,577

Home equity lines of credit

117

34

5,429

5,580

73,282

78,862

5,406

23

Personal

10,890

6,646

21,916

39,452

1,403,553

1,443,005

21,916

-

Auto

59,128

15,019

23,085

97,232

3,314,955

3,412,187

23,085

-

Other

432

714

12,621

13,767

115,439

129,206

12,448

173

Total

$

344,648

$

117,801

$

1,028,644

$

1,491,093

$

27,752,796

$

29,243,889

$

547,877

$

480,767

30-Sep-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

$

392

$

22,171

$

396

$

22,959

$

1,859,147

$

1,882,106

$

396

$

-

Commercial real estate:

Non-owner occupied

3,230

22,015

60,517

85,762

4,297,955

4,383,717

60,517

-

Owner occupied

3,877

614

72,849

77,340

1,737,933

1,815,273

72,849

-

Commercial and industrial

2,445

577

52,884

55,906

5,166,669

5,222,575

52,419

465

Construction

14,978

-

14,877

29,855

771,185

801,040

14,877

-

Mortgage

199,324

79,178

910,696

1,189,198

6,349,954

7,539,152

369,043

541,653

Leasing

8,193

1,969

2,542

12,704

1,335,975

1,348,679

2,542

-

Consumer:

Credit cards

5,211

3,667

7,558

16,436

870,165

886,601

-

7,558

Home equity lines of credit

736

76

5,941

6,753

76,549

83,302

5,941

-

Personal

9,917

6,498

22,394

38,809

1,350,046

1,388,855

22,394

-

Auto

52,486

11,663

17,345

81,494

3,295,200

3,376,694

17,345

-

Other

409

76

14,621

15,106

112,272

127,378

14,512

109

Total

$

301,198

$

148,504

$

1,182,620

$

1,632,322

$

27,223,050

$

28,855,372

$

632,835

$

549,785

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table J - Loan Delinquency - Consolidated

(Unaudited)



31-Dec-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 $ 4,140 $ - $ 272 $ 4,412 $ 1,958,218 $ 1,962,630 $ 272 $ -multi-family

Commercial real estate:

Non-owner 8,120 819 21,338 30,277 4,583,113 4,613,390 21,338 - occupied

Owner 4,424 278 55,348 60,050 1,758,052 1,818,102 55,348 - occupied

Commercialand 12,848 4,407 49,257 66,512 5,275,399 5,341,911 48,621 636industrial

Construction - - 485 485 715,735 716,220 485 -

Mortgage 229,541 84,327 827,214 1,141,082 6,286,114 7,427,196 355,856 471,358

Leasing 9,240 2,037 3,102 14,379 1,366,940 1,381,319 3,102 -

Consumer:

Credit 5,768 3,520 8,577 17,865 901,996 919,861 - 8,577 cards

Home equity 117 34 5,429 5,580 73,282 78,862 5,406 23 lines of credit

Personal 10,890 6,646 21,916 39,452 1,403,553 1,443,005 21,916 -

Auto 59,128 15,019 23,085 97,232 3,314,955 3,412,187 23,085 -

Other 432 714 12,621 13,767 115,439 129,206 12,448 173

Total $ 344,648 $ 117,801 $ 1,028,644 $ 1,491,093 $ 27,752,796 $ 29,243,889 $ 547,877 $ 480,767



30-Sep-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 $ 392 $ 22,171 $ 396 $ 22,959 $ 1,859,147 $ 1,882,106 $ 396 $ -multi-family

Commercial real estate:

Non-owner 3,230 22,015 60,517 85,762 4,297,955 4,383,717 60,517 - occupied

Owner 3,877 614 72,849 77,340 1,737,933 1,815,273 72,849 - occupied

Commercialand 2,445 577 52,884 55,906 5,166,669 5,222,575 52,419 465industrial

Construction 14,978 - 14,877 29,855 771,185 801,040 14,877 -

Mortgage 199,324 79,178 910,696 1,189,198 6,349,954 7,539,152 369,043 541,653

Leasing 8,193 1,969 2,542 12,704 1,335,975 1,348,679 2,542 -

Consumer:

Credit 5,211 3,667 7,558 16,436 870,165 886,601 - 7,558 cards

Home equity 736 76 5,941 6,753 76,549 83,302 5,941 - lines of credit

Personal 9,917 6,498 22,394 38,809 1,350,046 1,388,855 22,394 -

Auto 52,486 11,663 17,345 81,494 3,295,200 3,376,694 17,345 -

Other 409 76 14,621 15,106 112,272 127,378 14,512 109

Total $ 301,198 $ 148,504 $ 1,182,620 $ 1,632,322 $ 27,223,050 $ 28,855,372 $ 632,835 $ 549,785

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

$

3,748

$

(22,171

)

$

(124

)

$

(18,547

)

$

99,071

$

80,524

$

(124

)

$

-

Commercial real estate:

Non-owner occupied

4,890

(21,196

)

(39,179

)

(55,485

)

285,158

229,673

(39,179

)

-

Owner occupied

547

(336

)

(17,501

)

(17,290

)

20,119

2,829

(17,501

)

-

Commercial and industrial

10,403

3,830

(3,627

)

10,606

108,730

119,336

(3,798

)

171

Construction

(14,978

)

-

(14,392

)

(29,370

)

(55,450

)

(84,820

)

(14,392

)

-

Mortgage

30,217

5,149

(83,482

)

(48,116

)

(63,840

)

(111,956

)

(13,187

)

(70,295

)

Leasing

1,047

68

560

1,675

30,965

32,640

560

-

Consumer:

Credit cards

557

(147

)

1,019

1,429

31,831

33,260

-

1,019

Home equity lines of credit

(619

)

(42

)

(512

)

(1,173

)

(3,267

)

(4,440

)

(535

)

23

Personal

973

148

(478

)

643

53,507

54,150

(478

)

-

Auto

6,642

3,356

5,740

15,738

19,755

35,493

5,740

-

Other

23

638

(2,000

)

(1,339

)

3,167

1,828

(2,064

)

64

Total

$

43,450

$

(30,703

)

$

(153,976

)

$

(141,229

)

$

529,746

$

388,517

$

(84,958

)

$

(69,018

)

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 $ 3,748 $ (22,171 ) $ (124 ) $ (18,547 ) $ 99,071 $ 80,524 $ (124 ) $ -

Commercial real estate:

Non-owner occupied 4,890 (21,196 ) (39,179 ) (55,485 ) 285,158 229,673 (39,179 ) -

Owner occupied 547 (336 ) (17,501 ) (17,290 ) 20,119 2,829 (17,501 ) -

Commercial and 10,403 3,830 (3,627 ) 10,606 108,730 119,336 (3,798 ) 171 industrial

Construction (14,978 ) - (14,392 ) (29,370 ) (55,450 ) (84,820 ) (14,392 ) -

Mortgage 30,217 5,149 (83,482 ) (48,116 ) (63,840 ) (111,956 ) (13,187 ) (70,295 )

Leasing 1,047 68 560 1,675 30,965 32,640 560 -

Consumer:

Credit cards 557 (147 ) 1,019 1,429 31,831 33,260 - 1,019

Home equity lines of (619 ) (42 ) (512 ) (1,173 ) (3,267 ) (4,440 ) (535 ) 23 credit

Personal 973 148 (478 ) 643 53,507 54,150 (478 ) -

Auto 6,642 3,356 5,740 15,738 19,755 35,493 5,740 -

Other 23 638 (2,000 ) (1,339 ) 3,167 1,828 (2,064 ) 64

Total $ 43,450 $ (30,703 ) $ (153,976 ) $ (141,229 ) $ 529,746 $ 388,517 $ (84,958 ) $ (69,018 )

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table K - Non-Performing Assets

(Unaudited)

Variance

(Dollars in thousands)

31-Dec-21

As a % of loans HIP by category

30-Sep-21

As a % of loans HIP by category

31-Dec-20

As a % of loans HIP by category

Q4 2021 vs. Q3 2021

Q4 2021 vs. Q4 2020

Non-accrual loans:

Commercial

$125,579

0.9

%

$186,181

1.4

%

$210,080

1.5

%

$(60,602

)

$(84,501

)

Construction

485

0.1

14,877

1.9

29,057

3.1

(14,392

)

(28,572

)

Leasing

3,102

0.2

2,542

0.2

3,441

0.3

560

(339

)

Mortgage

355,856

4.8

369,043

4.9

429,207

5.4

(13,187

)

(73,351

)

Auto

23,085

0.7

17,345

0.5

15,736

0.5

5,740

7,349

Consumer

39,770

1.5

42,847

1.7

50,253

1.9

(3,077

)

(10,483

)

Total non-performing loans held-in-portfolio

547,877

1.9

%

632,835

2.2

%

737,774

2.5

%

(84,958

)

(189,897

)

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

-

-

2,738

-

(2,738

)

Other real estate owned ("OREO")

85,077

76,828

83,146

8,249

1,931

Total non-performing assets

$632,954

$709,663

$823,658

$(76,709

)

$(190,704

)

Accruing loans past due 90 days or more [2]

$480,767

$549,785

$1,028,064

$(69,018

)

$(547,297

)

Ratios:

Non-performing assets to total assets

0.84

%

0.96

%

1.25

%

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

1.87

2.19

2.51

Allowance for credit losses to loans held-in-portfolio

2.38

2.49

3.05

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

126.92

113.55

121.48

[1] There were no non-performing loans held-for-sale as of December 31, 2021 and September 30, 2021 (December 31, 2020 - $3 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 $13 million at December 31, 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 (September 30, 2021 - $12 million; December 31, 2020 - $57 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. These balances include $304 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of December 31, 2021 (September 30, 2021 - $350 million; December 31, 2020 - $329 million). Furthermore, the Corporation has approximately $50 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 (September 30, 2021 - $53 million; December 31, 2020 - $60 million).

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table K - Non-Performing Assets

(Unaudited)

Variance

As a % As a % As a %(Dollars in of of of Q4 2021 Q4 2021thousands) 31-Dec-21 loans 30-Sep-21 loans 31-Dec-20 loans vs. vs. HIP by HIP by HIP by Q3 2021 Q4 2020 category category category

Non-accrual loans:

Commercial $125,579 0.9 % $186,181 1.4 % $210,080 1.5 % $ ) $(84,501 ) (60,602

Construction 485 0.1 14,877 1.9 29,057 3.1 (14,392 ) (28,572 )

Leasing 3,102 0.2 2,542 0.2 3,441 0.3 560 (339 )

Mortgage 355,856 4.8 369,043 4.9 429,207 5.4 (13,187 ) (73,351 )

Auto 23,085 0.7 17,345 0.5 15,736 0.5 5,740 7,349

Consumer 39,770 1.5 42,847 1.7 50,253 1.9 (3,077 ) (10,483 )

Totalnon-performing 547,877 1.9 % 632,835 2.2 % 737,774 2.5 % (84,958 ) (189,897 )loansheld-in-portfolio

Non-performingloans - - 2,738 - (2,738 )held-for-sale [1]

Other real estate 85,077 76,828 83,146 8,249 1,931 owned ("OREO")

Total $ $non-performing $632,954 $709,663 $823,658 (76,709 ) (190,704 )assets

Accruing loans $ $past due 90 days $480,767 $549,785 $1,028,064 (69,018 ) (547,297 )or more [2]

Ratios:

Non-performingassets to total 0.84 % 0.96 % 1.25 % assets

Non-performingloansheld-in-portfolio 1.87 2.19 2.51 to loansheld-in-portfolio

Allowance forcredit losses to 2.38 2.49 3.05 loansheld-in-portfolio

Allowance forcredit losses tonon-performing 126.92 113.55 121.48 loans, excludingloansheld-for-sale

[1] There were no non-performing loans held-for-sale as of December 31, 2021and September 30, 2021 (December 31, 2020 - $3 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 $13 million at December 31, 2021, relatedto the rebooking of loans previously pooled into GNMA securities, in which theCorporation had a buy-back option as further described below (September 30,2021 - $12 million; December 31, 2020 - $57 million). Under the GNMA program,issuers such as BPPR have the option but not the obligation to repurchase loansthat are 90 days or more past due. For accounting purposes, these loans subjectto the repurchase option are required to be reflected (rebooked) on thefinancial statements of BPPR with an offsetting liability. These balancesinclude $304 million of residential mortgage loans insured by FHA or guaranteedby the VA that are no longer accruing interest as of December 31, 2021(September 30, 2021 - $350 million; December 31, 2020 - $329 million).Furthermore, the Corporation has approximately $50 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 (September 30, 2021- $53 million; December 31, 2020 - $60 million).

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio:

Quarter ended

Quarter ended

31-Dec-21

30-Sep-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$183,394

$2,787

$186,181

$217,703

$7,862

$225,565

Plus:

New non-performing loans

2,297

3,208

5,505

7,454

1,039

8,493

Advances on existing non-performing loans

-

35

35

-

10

10

Less:

Non-performing loans transferred to OREO

(996

)

-

(996

)

(2,069

)

-

(2,069

)

Non-performing loans charged-off

(2,412

)

(66

)

(2,478

)

(8,617

)

-

(8,617

)

Loans returned to accrual status / loan collections

(62,236

)

(432

)

(62,668

)

(31,077

)

(6,124

)

(37,201

)

Ending balance NPLs

$120,047

$5,532

$125,579

$183,394

$2,787

$186,181

Construction loans held-in-portfolio:

Quarter ended

Quarter ended

31-Dec-21

30-Sep-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$14,877

$-

$14,877

$14,877

$-

$14,877

Plus:

New non-performing loans

481

-

481

-

-

-

Less:

Loans returned to accrual status / loan collections

(14,873

)

-

(14,873

)

-

-

-

Ending balance NPLs

$485

$-

$485

$14,877

$-

$14,877

Mortgage loans held-in-portfolio:

Quarter ended

Quarter ended

31-Dec-21

30-Sep-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$354,555

$14,488

$369,043

$370,653

$13,323

$383,976

Plus:

New non-performing loans

36,210

12,084

48,294

38,606

4,662

43,268

Advances on existing non-performing loans

-

14

14

-

2

2

Less:

Non-performing loans transferred to OREO

(7,116

)

-

(7,116

)

(8,984

)

-

(8,984

)

Non-performing loans charged-off

(366

)

(26

)

(392

)

(1,023

)

-

(1,023

)

Loans returned to accrual status / loan collections

(49,396

)

(4,591

)

(53,987

)

(44,697

)

(3,499

)

(48,196

)

Ending balance NPLs

$333,887

$21,969

$355,856

$354,555

$14,488

$369,043

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

Quarter ended

Quarter ended

31-Dec-21

30-Sep-21

(In thousands)

BPPR

Popular U.S.

Popular, Inc.

BPPR

Popular U.S.

Popular, Inc.

Beginning balance NPLs

$552,826

$17,275

$570,101

$603,233

$21,185

$624,418

Plus:

New non-performing loans

38,988

15,292

54,280

46,060

5,701

51,761

Advances on existing non-performing loans

-

49

49

-

12

12

Less:

Non-performing loans transferred to OREO

(8,112

)

-

(8,112

)

(11,053

)

-

(11,053

)

Non-performing loans charged-off

(2,778

)

(92

)

(2,870

)

(9,640

)

-

(9,640

)

Loans returned to accrual status / loan collections

(126,505

)

(5,023

)

(131,528

)

(75,774

)

(9,623

)

(85,397

)

Ending balance NPLs

$454,419

$27,501

$481,920

$552,826

$17,275

$570,101

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table L - Activity in Non-Performing Loans

(Unaudited)



Commercial loans held-in-portfolio:

Quarter ended Quarter ended

31-Dec-21 30-Sep-21

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

Beginning $183,394 $2,787 $186,181 $217,703 $7,862 $225,565 balance NPLs

Plus:

New non-performing 2,297 3,208 5,505 7,454 1,039 8,493 loans

Advances on existing - 35 35 - 10 10 non-performing loans

Less:

Non-performing loans (996 ) - (996 ) (2,069 ) - (2,069 ) transferred to OREO

Non-performing loans (2,412 ) (66 ) (2,478 ) (8,617 ) - (8,617 ) charged-off

Loans returned to accrual (62,236 ) (432 ) (62,668 ) (31,077 ) (6,124 ) (37,201 ) status / loan collections

Ending balance $120,047 $5,532 $125,579 $183,394 $2,787 $186,181 NPLs



Construction loans held-in-portfolio:

Quarter ended Quarter ended

31-Dec-21 30-Sep-21

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

Beginning $14,877 $- $14,877 $14,877 $- $14,877 balance NPLs

Plus:

New non-performing 481 - 481 - - - loans

Less:

Loans returned to accrual (14,873 ) - (14,873 ) - - - status / loan collections

Ending balance $485 $- $485 $14,877 $- $14,877 NPLs



Mortgage loans held-in-portfolio:

Quarter ended Quarter ended

31-Dec-21 30-Sep-21

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

Beginning $354,555 $14,488 $369,043 $370,653 $13,323 $383,976 balance NPLs

Plus:

New non-performing 36,210 12,084 48,294 38,606 4,662 43,268 loans

Advances on existing - 14 14 - 2 2 non-performing loans

Less:

Non-performing loans (7,116 ) - (7,116 ) (8,984 ) - (8,984 ) transferred to OREO

Non-performing loans (366 ) (26 ) (392 ) (1,023 ) - (1,023 ) charged-off

Loans returned to accrual (49,396 ) (4,591 ) (53,987 ) (44,697 ) (3,499 ) (48,196 ) status / loan collections

Ending balance $333,887 $21,969 $355,856 $354,555 $14,488 $369,043 NPLs



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

Quarter ended Quarter ended

31-Dec-21 30-Sep-21

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

Beginning $552,826 $17,275 $570,101 $603,233 $21,185 $624,418 balance NPLs

Plus:

New non-performing 38,988 15,292 54,280 46,060 5,701 51,761 loans

Advances on existing - 49 49 - 12 12 non-performing loans

Less:

Non-performing loans (8,112 ) - (8,112 ) (11,053 ) - (11,053 ) transferred to OREO

Non-performing loans (2,778 ) (92 ) (2,870 ) (9,640 ) - (9,640 ) charged-off

Loans returned to accrual (126,505 ) (5,023 ) (131,528 ) (75,774 ) (9,623 ) (85,397 ) status / loan collections

Ending balance $454,419 $27,501 $481,920 $552,826 $17,275 $570,101 NPLs

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)

Quarters ended

(Dollars in thousands)

31-Dec-21

30-Sep-21

31-Dec-20

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

$718,575

$785,790

$925,850

Provision for credit losses (benefit)

(31,421

)

(58,645

)

10,785

Initial allowance for credit losses - PCD Loans

331

253

1,693

687,485

727,398

938,328

Net loans charged-off (recovered):

BPPR

Commercial

(11,346

)

4,357

17,171

Construction

(1,518

)

(2,223

)

(584

)

Lease financing

564

304

996

Mortgage

(4,398

)

(2,111

)

4,579

Consumer

9,083

9,009

19,055

Total BPPR

(7,615

)

9,336

41,217

Popular U.S.

Commercial

(387

)

(463

)

(1,739

)

Construction

(213

)

-

444

Mortgage

569

(48

)

15

Consumer

(235

)

(2

)

2,141

Total Popular U.S.

(266

)

(513

)

861

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

(7,881

)

8,823

42,078

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

$695,366

$718,575

$896,250

Balance at beginning of period - unfunded commitments

$8,400

$9,936

$13,295

Provision for credit losses (benefit)

(503

)

(1,536

)

2,556

Balance at end of period - unfunded commitments [1]

$7,897

$8,400

$15,851

POPULAR, INC.

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

(0.11

)

%

0.12

%

0.58

%

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

N.M.

N.M.

25.63

%

BPPR

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

(0.15

)

%

0.18

%

0.77

%

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

N.M.

N.M.

60.06

%

Popular U.S.

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

(0.01

)

%

(0.03

)

%

0.04

%

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

N.M.

N.M.

N.M.

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.

Year ended

Year ended

(Dollars in thousands)

31-Dec-21

31-Dec-20

Total

Total

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

$896,250

$477,708

Impact of adopting CECL

-

315,107

Provision for credit losses (benefit)

(183,345

)

282,336

Initial allowance for credit losses - PCD Loans

3,142

7,512

716,047

1,082,663

Net loans charged-off (recovered):

BPPR

Commercial

(18,300

)

16,889

Construction

1,697

(954

)

Lease financing

1,379

7,364

Mortgage

2,729

19,635

Consumer

32,207

133,712

Total BPPR

19,712

176,646

Popular U.S.

Commercial

(1,247

)

(2,215

)

Construction

(120

)

289

Mortgage

18

(10

)

Consumer

2,318

11,703

Total Popular U.S.

969

9,767

Total loans charged-off - Popular, Inc.

20,681

186,413

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

$695,366

$896,250

Balance at beginning of period - unfunded commitments

$15,851

$8,717

Impact of adopting CECL

-

(5,460

)

Provision for credit losses (benefit)

(7,954

)

12,594

Balance at end of period - unfunded commitments [1]

$7,897

$15,851

POPULAR, INC.

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

0.07

%

0.66

%

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

N.M.

151.46

%

BPPR

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

0.09

%

0.85

%

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

N.M.

116.54

%

Popular U.S.

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

0.01

%

0.13

%

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

N.M.

782.95

%

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 Fourth Quarter 2021 Earnings Release

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

(Unaudited)





Quarters ended

(Dollars in thousands) 31-Dec-21 30-Sep-21 31-Dec-20

Balance at beginning of period - loans $718,575 $785,790 $925,850 held-in-portfolio

Provision for credit losses (benefit) (31,421 ) (58,645 ) 10,785

Initial allowance for credit losses - 331 253 1,693 PCD Loans

687,485 727,398 938,328

Net loans charged-off (recovered):

BPPR

Commercial (11,346 ) 4,357 17,171

Construction (1,518 ) (2,223 ) (584 )

Lease financing 564 304 996

Mortgage (4,398 ) (2,111 ) 4,579

Consumer 9,083 9,009 19,055

Total BPPR (7,615 ) 9,336 41,217

Popular U.S.

Commercial (387 ) (463 ) (1,739 )

Construction (213 ) - 444

Mortgage 569 (48 ) 15

Consumer (235 ) (2 ) 2,141

Total Popular U.S. (266 ) (513 ) 861

Total loans charged-off (recovered) - (7,881 ) 8,823 42,078 Popular, Inc.

Balance at end of period - loans $695,366 $718,575 $896,250 held-in-portfolio



Balance at beginning of period - $8,400 $9,936 $13,295 unfunded commitments

Provision for credit losses (benefit) (503 ) (1,536 ) 2,556

Balance at end of period - unfunded $7,897 $8,400 $15,851 commitments [1]



POPULAR, INC.

Annualized net charge-offs (recoveries) (0.11 ) % 0.12 % 0.58 %to average loans held-in-portfolio

Provision for credit losses (benefit) - N.M. N.M. 25.63 %loan portfolios to net charge-offs

BPPR

Annualized net charge-offs (recoveries) (0.15 ) % 0.18 % 0.77 %to average loans held-in-portfolio

Provision for credit losses (benefit) - N.M. N.M. 60.06 %loan portfolios to net charge-offs

Popular U.S.

Annualized net charge-offs to average (0.01 ) % (0.03 ) % 0.04 %loans held-in-portfolio

Provision for credit losses (benefit) - N.M. N.M. N.M. 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.













Year ended Year ended

(Dollars in thousands) 31-Dec-21 31-Dec-20

Total Total

Balance at beginning of period - loans $896,250 $477,708 held-in-portfolio

Impact of adopting CECL - 315,107

Provision for credit losses (benefit) (183,345 ) 282,336

Initial allowance for credit losses - 3,142 7,512 PCD Loans

716,047 1,082,663

Net loans charged-off (recovered):

BPPR

Commercial (18,300 ) 16,889

Construction 1,697 (954 )

Lease financing 1,379 7,364

Mortgage 2,729 19,635

Consumer 32,207 133,712

Total BPPR 19,712 176,646



Popular U.S.

Commercial (1,247 ) (2,215 )

Construction (120 ) 289

Mortgage 18 (10 )

Consumer 2,318 11,703

Total Popular U.S. 969 9,767

Total loans charged-off - Popular, Inc. 20,681 186,413

Balance at end of period - loans $695,366 $896,250 held-in-portfolio



Balance at beginning of period - $15,851 $8,717 unfunded commitments

Impact of adopting CECL - (5,460 )

Provision for credit losses (benefit) (7,954 ) 12,594

Balance at end of period - unfunded $7,897 $15,851 commitments [1]



POPULAR, INC.

Annualized net charge-offs to average 0.07 % 0.66 %loans held-in-portfolio

Provision for credit losses (benefit) - N.M. 151.46 %loan portfolios to net charge-offs



BPPR

Annualized net charge-offs to average 0.09 % 0.85 %loans held-in-portfolio

Provision for credit losses (benefit) - N.M. 116.54 %loan portfolios to net charge-offs



Popular U.S.

Annualized net charge-offs to average 0.01 % 0.13 %loans held-in-portfolio

Provision for credit losses (benefit) - N.M. 782.95 %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 Fourth Quarter 2021 Earnings Release

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

(Unaudited)

31-Dec-21

(Dollars in thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Total ACL

$215,805

$6,363

$154,478

$17,578

$301,142

$695,366

Total loans held-in-portfolio

$13,736,033

$716,220

$7,427,196

$1,381,319

$5,983,121

$29,243,889

ACL to loans held-in-portfolio

1.57

%

0.89

%

2.08

%

1.27

%

5.03

%

2.38

%

30-Sep-21

(Dollars in thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Total ACL

$234,814

$9,850

$170,378

$11,634

$291,899

$718,575

Total loans held-in-portfolio

$13,303,671

$801,040

$7,539,152

$1,348,679

$5,862,830

$28,855,372

ACL to loans held-in-portfolio

1.77

%

1.23

%

2.26

%

0.86

%

4.98

%

2.49

%

Variance

(Dollars in thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

Total ACL

$(19,009

)

$(3,487

)

$(15,900

)

$5,944

$9,243

$(23,209

)

Total loans held-in-portfolio

$432,362

$(84,820

)

$(111,956

)

$32,640

$120,291

$388,517

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)





31-Dec-21

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

Total ACL $215,805 $6,363 $154,478 $17,578 $301,142 $695,366

Total loans $13,736,033 $716,220 $7,427,196 $1,381,319 $5,983,121 $29,243,889 held-in-portfolio

ACL to loans 1.57 % 0.89 % 2.08 % 1.27 % 5.03 % 2.38 %held-in-portfolio





30-Sep-21

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

Total ACL $234,814 $9,850 $170,378 $11,634 $291,899 $718,575

Total loans $13,303,671 $801,040 $7,539,152 $1,348,679 $5,862,830 $28,855,372 held-in-portfolio

ACL to loans 1.77 % 1.23 % 2.26 % 0.86 % 4.98 % 2.49 %held-in-portfolio



Variance

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

Total ACL $(19,009 ) $(3,487 ) $(15,900 ) $5,944 $9,243 $(23,209 )

Total loans $432,362 $(84,820 ) $(111,956 ) $32,640 $120,291 $388,517 held-in-portfolio

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)

31-Dec-21

Puerto Rico

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

ACL

$151,928

$1,641

$138,286

$17,578

$284,729

$594,162

Loans held-in-portfolio

$7,396,869

$87,111

$6,251,866

$1,381,319

$5,748,217

$20,865,382

ACL to loans held-in-portfolio

2.05

%

1.88

%

2.21

%

1.27

%

4.95

%

2.85

%

30-Sep-21

Puerto Rico

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

ACL

$168,504

$1,911

$155,062

$11,634

$279,667

$616,778

Loans held-in-portfolio

$7,638,693

$127,479

$6,375,049

$1,348,679

$5,665,781

$21,155,681

ACL to loans held-in-portfolio

2.21

%

1.50

%

2.43

%

0.86

%

4.94

%

2.92

%

Variance

(In thousands)

Commercial

Construction

Mortgage

Lease financing

Consumer

Total

ACL

$(16,576

)

$(270

)

$(16,776

)

$5,944

$5,062

$(22,616

)

Loans held-in-portfolio

$(241,824

)

$(40,368

)

$(123,183

)

$32,640

$82,436

$(290,299

)

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)



31-Dec-21

Puerto Rico

(In thousands) Commercial Construction Mortgage Lease Consumer Total financing

ACL $151,928 $1,641 $138,286 $17,578 $284,729 $594,162

Loans $7,396,869 $87,111 $6,251,866 $1,381,319 $5,748,217 $20,865,382 held-in-portfolio

ACL to loans 2.05 % 1.88 % 2.21 % 1.27 % 4.95 % 2.85 %held-in-portfolio





30-Sep-21

Puerto Rico

(In thousands) Commercial Construction Mortgage Lease Consumer Total financing

ACL $168,504 $1,911 $155,062 $11,634 $279,667 $616,778

Loans $7,638,693 $127,479 $6,375,049 $1,348,679 $5,665,781 $21,155,681 held-in-portfolio

ACL to loans 2.21 % 1.50 % 2.43 % 0.86 % 4.94 % 2.92 %held-in-portfolio





Variance

(In thousands) Commercial Construction Mortgage Lease Consumer Total financing

ACL $(16,576 ) $(270 ) $(16,776 ) $5,944 $5,062 $(22,616 )

Loans $(241,824 ) $(40,368 ) $(123,183 ) $32,640 $82,436 $(290,299 ) held-in-portfolio

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)

31-Dec-21

Popular U.S.

(In thousands)

Commercial

Construction

Mortgage

Consumer

Total

ACL

$63,877

$4,722

$16,192

$16,413

$101,204

Loans held-in-portfolio

$6,339,164

$629,109

$1,175,330

$234,904

$8,378,507

ACL to loans held-in-portfolio

1.01

%

0.75

%

1.38

%

6.99

%

1.21

%

30-Sep-21

Popular U.S.

(In thousands)

Commercial

Construction

Mortgage

Consumer

Total

ACL

$66,310

$7,939

$15,316

$12,232

$101,797

Loans held-in-portfolio

$5,664,978

$673,561

$1,164,103

$197,049

$7,699,691

ACL to loans held-in-portfolio

1.17

%

1.18

%

1.32

%

6.21

%

1.32

%

Variance

(In thousands)

Commercial

Construction

Mortgage

Consumer

Total

ACL

$(2,433

)

$(3,217

)

$876

$4,181

$(593

)

Loans held-in-portfolio

$674,186

$(44,452

)

$11,227

$37,855

$678,816

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

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

(Unaudited)



31-Dec-21

Popular U.S.

(In thousands) Commercial Construction Mortgage Consumer Total

ACL $63,877 $4,722 $16,192 $16,413 $101,204

Loans $6,339,164 $629,109 $1,175,330 $234,904 $8,378,507 held-in-portfolio

ACL to loans 1.01 % 0.75 % 1.38 % 6.99 % 1.21 %held-in-portfolio





30-Sep-21

Popular U.S.

(In thousands) Commercial Construction Mortgage Consumer Total

ACL $66,310 $7,939 $15,316 $12,232 $101,797

Loans $5,664,978 $673,561 $1,164,103 $197,049 $7,699,691 held-in-portfolio

ACL to loans 1.17 % 1.18 % 1.32 % 6.21 % 1.32 %held-in-portfolio





Variance

(In thousands) Commercial Construction Mortgage Consumer Total

ACL $(2,433 ) $(3,217 ) $876 $4,181 $(593 )

Loans $674,186 $(44,452 ) $11,227 $37,855 $678,816 held-in-portfolio

Popular, Inc.

Financial Supplement to Fourth Quarter 2021 Earnings Release

Table Q - Reconciliation to GAAP Financial Measures

(Unaudited)

(In thousands, except share or per share information)

31-Dec-21

30-Sep-21

31-Dec-20

Total stockholders' equity

$5,969,397

$5,982,971

$6,028,687

Less: Preferred stock

(22,143

)

(22,143

)

(22,143

)

Less: Goodwill

(712,616

)

(671,122

)

(671,122

)

Less: Other intangibles

(13,332

)

(19,657

)

(22,466

)

Total tangible common equity

$5,221,306

$5,270,049

$5,312,956

Total assets

$75,088,659

$74,189,163

$65,926,000

Less: Goodwill

(712,616

)

(671,122

)

(671,122

)

Less: Other intangibles

(13,332

)

(19,657

)

(22,466

)

Total tangible assets

$74,362,711

$73,498,384

$65,232,412

Tangible common equity to tangible assets

7.02

%

7.17

%

8.14

%

Common shares outstanding at end of period

79,851,169

79,841,564

84,244,235

Tangible book value per common share

$65.39

$66.01

$63.07

Quarterly average

Total stockholders' equity [1]

$5,961,214

$5,769,545

$5,540,456

Less: Preferred Stock

(22,143

)

(22,143

)

(22,143

)

Less: Goodwill

(706,101

)

(671,121

)

(671,121

)

Less: Other intangibles

(19,858

)

(20,132

)

(23,166

)

Total tangible equity

$5,213,112

$5,056,149

$4,824,026

Return on average tangible common equity

15.66

%

19.44

%

14.50

%

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

Year-to-date average

Total stockholders' equity [1]

$5,777,652

$5,419,938

Less: Preferred Stock

(22,143

)

(26,277

)

Less: Goodwill

(679,938

)

(671,121

)

Less: Other intangibles

(20,853

)

(25,154

)

Total tangible equity

$5,054,718

$4,697,386

Return on average tangible common equity

18.47

%

10.75

%

[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/20220127005026/en/

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